Do Local Values Affect Performances? The Study of Tri Hita Karana Culture on Hotel Performance in Bali

Abstract

It is argued that culture is one of the important sources of competitive advantage for a firm, which serves as a driver for business performance. By "the collective programming of the mind" of its members, organizational culture can generate similar behavior among members, and create harmony among people of different levels or different backgrounds in an organization. For Bali and its people, the philosophy and/or values that guide people to live harmoniously with others as well their surrounding is called Tri Hita Karana. This work is directed to study the influence of these values as the organizational culture of hotels in Bali on their performances by the mediation of dynamic capabilities. Applying structural equation modeling, the Tri Hita Karana culture and hotel performances are positioned as exogenous and endogenous latents, respectively. This study reveals that the Tri Hita Karana culture does not show a direct significant effect on performances; on the contrary, dynamic capabilities act as a mediating variable. However, by the mediation of hotels' capabilities to face the industry competition, Tri Hita Karana is proven to significantly affect hotel performances in Bali.

Pang Pada Payu: Implementing Tri Hita Karana Principles on Pawongan Aspect as a Balinese Business Concept

“…A study by Rahmawati et al (2019) emphasizes the importance of applying this principle in various aspects of Balinese community life, including in business. Specifically, in the "pawongan" aspect (human-to-human relations), this concept underscores the importance of harmony and balance in interpersonal relationships (Ishwari et al, 2019). In business practices, there's always a need for good interpersonal relationships among the parties involved, so that business objectives can be achieved proportionally.…”

“…The application of the pawongan principle in the business world emphasizes the importance of collaboration and mutual benefits among business players. Studies (Ishwari et al, 2019;Purnamawati et al, 2022) show that businesses that integrate the pawongan principle into their operations tend to have better relationships with suppliers, customers, and other business partners. Integrity, trust, and commitment are key elements in these relationships.…”

Pengembangan Model Evaluasi Stake Berbasis ANEKA-Tri Hita Karana dengan Pengkalkulasian SAW dalam Penentuan Aspek-aspek Prioritas Perbaikan Mutu Belajar dan Karakter Siswa

“…Konsep Tri Hita Karana pada dasarnya mempunyai arti sebagai tiga penyebab kebahagiaan bagi manusia yang disebabkan karena manusia mampu menjaga hubungan yang harmonis dengan Tuhan (Parahyangan), mampu menjaga hubungan yang harmonis dengan sesamanya (Pawongan), dan mampu menjaga hubungan yang harmonis dengan alam yang ada disekitarnya (Palemahan) [22], [23]…”