Power Distance as A National Culture Observed in Organizational Scope

Abstract

Objective - Cultural factors have significant roles in creating behavior in an organization. This research claims that national culture like power distance that is usually measured in a national scope actually can have a better result when it is measured in the organizational scope. The goal of this research is to find out the level of power distance among private lecturers in Banjarmasin, Indonesia, and compare it to Hofstede's power distance for the whole country. Methodology/Technique - This research uses explanatory research that tries to understand the degree of power distance among private university lecturers in Banjarmasin. The populations used were all lecturers in private colleges in Banjarmasin City. The samples used were 86 lecturers who have become a lecturer for at least 2 years. The analysis is done through a descriptive quantitative method measuring the level of power distance among lecturers in Banjarmasin and with confirmatory factor analysis (CFA) to understand which indicators that have the strongest influence in creating power distance culture among lecturers in Banjarmasin. Findings – The results of the research show that power distance culture is low among the lecturers in Banjarmasin City, with indicator "The level of authority used by the leader" as the lowest factor. The result also finds that the indicator "subordinates Exclusion in decision-making" as the strongest indicator to form power distance culture. Novelty - This research conducted in the context of Indonesia using primary data. Type of Paper - Empirical Keywords: National culture; Organizational culture; Power distance; Hofstede; Banjarmasin City. JEL Classification: M50, M54.

Impacts of National Cultures on Managerial Decisions of Engaging in Core Earnings Management

“…These results demonstrate the complex interaction between national culture's individualistic aspects and classification changes in different settings. Classification shifting is strongly influenced by the national culture's power distance dimension (Hickey, 2007;Zagladi, 2017). The degree to which people expect and accept hierarchical power distribution is known as power distance (Luptáková et al, 2005).…”