The Role of Local Culture on Post Consolidation of State-Owned Cement Companies in Indonesia

Abstract:

The clash between company consolidation and local culture becomes a primary focus because it is feared that it would affect the process of socialization and internalization of local values into company culture. This research aims to describe the dimensions of the local culture in three merging state-owned cement companies in Indonesia. The total number of respondents was 121. This research explains that the item of local culture with the largest index value is the rights of citizens. This represents that employees have rights that need to be appreciated and respected by the company and other employees. These rights are implemented within the viewpoint, attitude, and behavior in the workplace. Meanwhile, the item of local culture with the smallest index value is creating orders and disciplines by the employees’ own ways. This item has the lowest index value because managers are forced to create a sense of orderliness on their own. They improvise or make changes to the regulations to conform to the existing work conditions.