Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330408 
Year of Publication: 
2025
Citation: 
[Journal:] SN Business & Economics [ISSN:] 2662-9399 [Volume:] 5 [Issue:] 10 [Article No.:] 160 [Publisher:] Springer International Publishing [Place:] Cham [Year:] 2025
Publisher: 
Springer International Publishing, Cham
Abstract: 
Indonesia has enjoyed impressive economic growth since the early 2000s and consequently attracted significant business interest from western companies. Yet, the Indonesian business context has also been notoriously impacted by corruption, which presents a serious challenge for international business negotiations. Interestingly, in scholarly research little is known about the indigenous management practices within the Indonesian context. This study therefore investigates indigenous management practices during international business negotiations taking place in the emerging market of Indonesia, that may determine the success or failure of multinational corporations' negotiations. We conduct an inductive analysis of rich and context-specific data generated through 55 in-depth interviews of Indonesian and non-Indonesian managers. We discover: (1) the importance of perantara as a third-party agent, specific to Indonesia, that operates as a backchannel conduit for communication between parties and is essential for progressing to the face-to-face negotiation stage; and (2) the unique relationship-building process essential for business negotiations in Indonesia, which moves from task orientation to relationship-building orientation. To the best of our knowledge, our study is one of the first to tackle such specific indigenous management behaviours during international business negotiation in Indonesia from a context-specific insider's perspective. This study provides useful insights for managers of foreign multinational corporations on how to manage certain indigenous Indonesian management behaviours if they are to achieve successful investment outcomes.
Subjects: 
Indonesia
International business negotiations
Perantara
Relationship building
Indigenous management
Culture
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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