The Role of Political Will and Organizational Culture toward Iron and Steel Company Competition

• Main Authors: Kuswandi, Asmirin Noor, Siti Mahmudah, Martin Zebua
• Format: Article
• Language: English
• Published: Mykolayiv National Agrarian University 2019-07-01
• Series: Modern Economics
• Subjects: cultural aspect; organizational culture; political will; IISA; steel and iron company
• Online Access: https://modecon.mnau.edu.ua/en/?smd_process_download=1&download_id=11767

Introduction. Culture and political will were the weak points of Indonesian company. This was seen through steel and iron company in Indonesia which could not compete as well as China, Korea, Japan, and India. It proved that government did not possess a strong capability in enhancing manufacturing. Organizational culture also contributed to value change, creativity, manner, perception, innovation and willing to take a risk. Purpose. This study aimed to reveal the inability of price fixing competition and to manage product quantity produced by the company. Results. The qualitative explorative method was used to collect data while the instruments were survey, observation, interview, and documentation of the company registered at IISA (The Indonesian Iron & Steel Association). The findings revealed that the problems were caused by (1) a difference in political wills in central and regional governments; (2) The policy could not afford an easier administration process; (3) Dwelling cost for imports; (4) The manufacture interest was above 12%; (5) Intensive fund which was not rising; (6) lack of investment stimuli; (7) Dwelling time was still more than 5 days. Conclusions. There was no significant change that reduces the operational cost of iron and steel manufacturing, also no significant impact on price fixing and quantity production of the companies.