Globalisation and its discontents: an Indonesian perspective

It is indeed a great honour for me to give the 2011 Heinz Arndt Memorial Lecture. The first time I met the great Professor Heinz Arndt was as a nine‐year‐old back in 1966 when our family first came to Canberra and Heinz was my father's (Panglaykim) new boss. I recall that he picked us up at the airport and within the first week we had visited his house in Deakin, where he gave me and my two brothers games such as Chinese checkers and books that his own kids had outgrown. So my first thought was: what a kind and thoughtful man. Little did I know that I would end up being what he often termed his ‘academic grandchild’. I never took a class from Heinz or was fortunate enough to be supervised by him. However, I had many interactions with him when I was a student at the Australian National University (ANU) and, upon graduation, as an aspiring young academic. He had an important influence on the course of my life. First, he encouraged me to do my PhD in the USA. After I completed my masters at the ANU under Peter Drysdale, I toyed with the idea of continuing with a PhD at the Research School of Pacific Studies. However, Heinz convinced me to go to the USA because he thought it would widen my horizons. He was right. Second, there was the importance of being disciplined and thorough in undertaking country or regional research. One of the most important initiation exercises for an academic working on Indonesia was to do a ‘Survey of Recent Developments’ for the Bulletin of Indonesian Economic Studies. I recall being given a yellowed document that had been formulated by Heinz with precise guidelines on topics, structure, and people to see and interview. We found similar guidelines on regional surveys when we did economic surveys of all the provinces a few years later. I found that doing the research and interviews for the survey was the easy part. The hard part was the two weeks spent in Canberra writing up the survey and being subjected to peer review. The draft was presented to the ‘editorial team’ and others, including, of course, the venerable Professor Arndt. I am glad to say that I passed in terms of substance; but of course there were lots of edits to do following Heniz's traditional typed‐up comments, both general and specific! Third, despite being a formidable figure and someone with a reputation for strong opinions, Heinz was the same kind and thoughtful man I remembered as a nine‐year‐old. He always had the time of day for the young academics, especially those from Indonesia. I had many cups of tea with him as a student and later as an aspiring academic. I still recall his room in University House filled with his books and the filing cabinet near the bathroom, where he would inevitably pull out the right references and reading materials that one needed. I learned a lot about the importance of mentoring and encouraging the young—many of whom have succeeded and are in the room today. This lecture is to honour Professor Heinz Arndt. I believe Professor Arndt was a true internationalist and therefore he would tackle with gusto the rumblings of discontent on globalisation. He would be thorough in trying to understand the manifestations of globalisation and its sources of discontent. He would also be of the firm belief that the benefits of globalisation outweigh its costs and come up with strategic ideas on how to best manage globalisation to counter ‘globaphobia’. I hope I do justice to this topic in the Heinz Arndt tradition.     

Why Do Managers Leave Their Organization? Investigating the Role of Ethical Organizational Culture in Managerial Turnover

This study contributes to the corporate social responsibility, stakeholder theory, and executive succession literature by examining the effect of corporate social irresponsibility (CSiR) on strategic leadership turnover. We theorize that firms’ CSiR increases the likelihood of executive turnover. We also investigate the nature of succession (non-voluntary or voluntary succession) and successor origin (internal candidate or external candidate) following CSiR. We further examine how the CSiR–CEO succession relationship is moderated by firm visibility to stakeholders and industry dynamism. Our results, based on a dataset of 248 U.S. public firms between 2001 and 2008, provide evidence that firms’ CSiR affects what is conventionally seen as primarily a market-driven decision on executive turnover, especially when firms operate in a more dynamic industry. Research contributions and implications are discussed.     

Managers as Moral Leaders: Moral Identity Processes in the Context of Work

Journal of Business Ethics - This qualitative study explores how business leaders narrate their personal ways of recognizing, reasoning, and resolving moral conflicts and what these stories reveal...     

The Corporate Ethical Virtues Scale: Factorial Invariance Across Organizational Samples

This study investigated the factorial validity of the 58-item Corporate Ethical Virtues scale (CEV; Kaptein, J Organ Behav 29(7):923–947, 2008). The major aim was to test the invariance of the factor structure across different organizational samples. The CEV scale was designed to measure eight corporate virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability, and sanctionability. The data (total N = 3,702) consisted of four organizational samples that are operated in the private and public sector. The results of confirmatory factor analyses supported the hypothesized eight-factor structure, as well as its alternative second-order factor structure, where high correlations between the first-order factors (virtues) were explained by a general CEV factor. These factor structures (including factor loadings) remained the same across samples, lending strong support for the group invariance assumption of the scale. Thus, the 58-item CEV scale was found to be a valid tool for measuring the aspect of ethical organizational culture in different organizations, and its use can be recommended for future research.     

FIFTY YEARS OF TRADE POLICY IN INDONESIA: NEW WORLD TRADE,OLD TREATMENTS

Indonesia's trade policy has evolved over the last 50 years. It has been influenced by the country's level of development and the conflict between openness and protectionism; external developments, such as commodity booms and busts and increased competition; and international commitments, whether multilateral or regional. As a result, trade policy has often been ambivalent and ineffective. Given that Indonesia has undergone various transformations and that the world is a different place from what it was in 1965, the country needs to take a more pragmatic and forward-looking stance. Trade policy needs to be part of a comprehensive strategy to improve competitiveness and diversify exports. If Indonesia is to be part of the new paradigm, where the production of goods and services is based on production networks and global value chains, its policy focus will need to shift from protecting and favouring sectors to promoting trade and industrial policies that encourage the flow of goods, services, and people.     

Alternative view on niche development: situated learning on policy communities,power and agency

In this article, we analyse how situated learning influences niche development. Situated learning is tied to social action and context, perceiving knowledge and learning as socially constructed. In addition, a dialectic view of structure and agency is adopted. Policymaking is used as an example of a community. A qualitative case study of Finnish energy policy is presented. The regime in Finland is the electricity industry that supports bioenergy, while wind energy development is supported by active individuals and a few niche actors. The full-members of the policymaking community consist of the government and the regime actors. The niche actors did learn how the community functions and developed alternative strategies accordingly, but without success. A reason could be that the niche actors excluded the regime from their strategies. We conclude that situated learning is likely to enhance niche development, but compromises in niche development may be needed.     

Durable Domestic Dreams: Exploring Homes in Estonian Socialist‐era Summerhouse Settlements

‘Home’ and the connotations of this term are little understood in the context of post‐socialist Central and Eastern Europe. While modern suburban living was rather unusual in this region under socialism, more and more people live in suburbia today. This article concerns itself with the homes of residents in the former socialist‐era summerhouse settlements in Estonia. Its aim is to further an understanding of the origins and (dis)continuities of the notion of home for individuals living in a post‐socialist environment. This study is based on ethnographic fieldwork. In this article, we present socialist and post‐socialist housing in context and describe how it has been shaped by changes in society. Our findings show that the homes of informants appear to strengthen their sense of freedom, autonomy and stability, while simultaneously inspiring their dreams and imaginations of home.     

Stock Market Capitalism vs. Welfare Capitalism

This is the first in what we hope will be a new series of debates on important themes in political economy. Ronald Dore has long been known for his pioneering work on the Japanese economy and his contribution to the debate on different models and varieties of capitalism. He has recently published a major reappraisal and restatement of his approach, Stock Market Capitalism: Welfare Capitalism‐Japan and Germany vs. the Anglo-Saxons. In this book he focuses in particular on the challenges to the Japanese model in the 1990s, and the pressures for it to change. We invited him to summarise the argument of his book, and then asked three commentators, Gregory Jackson, Yutaka Kosai and Franz Waldenberger, to respond.