The Buginese entrepreneurs; the influence of local values, motivation and entrepreneurial traits on business performance

Abstract

Purpose This study aims to investigate the role of Buginese cultural value system (BCVS), motivational values type (MVT) and entrepreneurial traits (ET) on business performance (BP). The study investigated the role of each variable in predicting BP among Buginese entrepreneurs. Design/methodology/approach The study was conducted in South Sulawesi, in small and medium scale enterprises with a focus on Buginese entrepreneurs. Random sampling technique was used along with some inclusion criteria. Based on those criteria, the questionnaires were administered to 300 participants with 70 per cent valid responses (180 males, 30 females). The study used well-constructed measures (i.e. BCVS, MVT, ET and BP) by following a guideline of adapting and developing instruments. The data were analyzed using structural equation model technique to examine the proposed theoretical model. Findings The results showed that the hypothesized model fitted the empirical data. The MVT and ET-mediated the effect of BCVS on BP or BCVS indirectly influenced BP. In brief, this research successfully showed that local cultural value system (BCVS) had a significant effect on the performance of Buginese entrepreneurs through the mediating role of MTV and ET, which means that local cultural value functions as a predictor of the performance of Buginese entrepreneurs. Originality/value A number of previous studies have investigated the significant role of local culture in predicting business and entrepreneurship performance. This study focused on local values and considering some advanced theories in both entrepreneurship and psychology. As a result, this study provided a new perspective in understanding local culture as an antecedent to entrepreneurship performance.

The effect of authentic leadership and psychological capital on work engagement: the mediating role of job satisfaction

“…Eastern Indonesia is predominantly influenced by the Bugis culture, which is distinct from Java or Jawa, the major ethnicity and culture in Indonesia. The Bugis people are implicitly influenced by their values and principles in performing business (Tamar et al, 2017(Tamar et al, , 2019. Considering the philosophical and cultural approach to authenticity (Algera and Lips-wiersma, 2012;Nyberg and Sveningsson, 2014;Shaw, 2010;Stewart et al, 2017), the employees in this study could have unique perspectives towards authenticity that could hinder the effect of leader's authenticity on work engagement.…”

“…Furthermore, some studies also have documented that authentic leadership and PsyCap together predict positive and negative employee outcomes (Clapp-Smith et al, 2009;Laschinger and Fida, 2014;Rego et al, 2016;Woolley et al, 2011;Woolley et al, 2011). Considering the unique national values of Eastern Indonesia (Tamar et al, 2019) and how the national values support leadership (Oh et al, 2017), this study argues that authentic leadership and PsyCap will accrue work engagement by providing resources for employees; this country adapts local values in organisational practices.…”

“…For instance, a number of studies revealed that Eastern Indonesians are nurtured with some degree of Bugis or Buginese values (Jufri and Wirawan, 2018;Tamar et al, 2017). These values are also a part of organisational practices and leverage business performance (Tamar et al, 2019). Examining the indirect effect of authentic leadership and PsyCap on engagement in this culture may benefit scholars and practitioners.…”

Detonating factors of collaborative innovation from the human capital management

“…It has also been shown that when the values of employees or communities are aligned with the corporate culture, the process of establishing non-monetary incentive strategies as an effect of innovation-related actions is facilitated. It has been shown that in small businesses, non-financial factors can provide indicators for business success, such as personal values, satisfaction and achievements (Tamar et al , 2019). Taking into account that values and satisfaction are part of business success, they can be considered when proposing incentives for employees.…”

Technology and Culture in Subsistence Small Businesses

“…Culture has an effect in entrepreneurship motivations [40]; it is relevant for location-based businesses [41] and also for business performance [42]. Culture has been seen as increasingly important because it affects the organization of the enterprise, including the working climate, the capacity for innovation, and decision-making processes [16].…”