Successful Factor For Chinese Contractor To Operate Joint-venture Projects In Indonesia

Classifying what factor viewed, as the primary contribution to smoothly operatingprojects, is pivotal. Because of globalization, Chinese contractors are venturing out intodeveloping markets such as Indonesia where there is a chance to gain profits or increasebrand awareness. Often, projects execute in a tied-aid basis where the donor countriesrequire their national contractor to undertake the work with a local contractor.Subsequently, Chinese contractors are as often as possible involved in joint-ventureprojects where they need to work closely with their Indonesian counterpart. Therefore, itis critical to discover which factors are contemplated to be important, depending uponIndonesian partners’ viewpoints, for Chinese contractors to work easily with theiraccomplices in the Indonesian market.Literature reviews incorporating organizational structure, culture and leadership ofIndonesian society were utilized to find out the general idea regarding Indonesia’stheoretical issues. To narrow down the list of the theoretical issues discovered in theliterature reviews, managers of Indonesia construction industry was interviewed. Theitems of factors were picked dependent upon the most frequent items mentioned.Following this, validity testing was done through the member-check to guarantee theinformation was valid. Next, the questionnaire was constructed by using those ‘selected’items. The sample size was30and distributed to Indonesian contractors.The outcome from SPSS analytical tool shows leadership style ranks the highestagainst the two other theoretical issues-organizational structure and cultural element.Under each category of level importance, sub-factors of leadership style take the highestposition with authoritarian style-most important (62.5%), guidance style-second mostimportant (62.5%), and kinship style-third most important (50%). Indonesiancontractors perceive the leadership style as the key factor for projects to operatesuccessfully. They view that Chinese contractors should comprehend the diverse typesof leadership style of Indonesian and it is important to understand what to do with thesestyles if Chinese contractors are working with them.One of the recommendations is to take proactive action by doing exploratoryworks about Indonesia. Chinese contractors can take some training where they aretaught on some imperative viewpoints about Indonesian leadership styles. Through thiseducation, Chinese contractors are equipped with prior knowledge and thus prepared to work effectively with their local partner. Another alternative way is to compromisewhen both parties have the same leadership style. When both parties come fromdifferent countries, it is inevitable that there are occasions when the style used as part ofconducting projects is the same. Problems may happen if neither of the parties wants totake a step back, which can affect the overall completion of the project. Being the partyventuring into the target market, it is suggested for the Chinese contractors tocompromise. The reason is there have been several occasions where most of the thingsare not within Chinese contractors’ powers to order or make changes. Thus, it is betterfor the Chinese contractors to adapt their style with the Indonesian companies and notthe other way round for joint-venture projects to work successfully.Limitations of this research would include the scope of the study as well as thetheoretical issues applied. Firstly, there could be other theoretical issues that could bevital in influencing the operation of the projects and are not incorporated in this study.Next, focused study of this research is on the Indonesian contractors. The study may notindicate the same result if it is dependent upon different groups, such as clients, projectmanagers and the engineers. They might have diverse views and thus effect therecommendations needed to be given to the Chinese contractors. The suggestionsprovided by the base of Indonesian contractors might not be the same due to differentconsiderations on what theoretical issue is prioritized first. Therefore, further research isrecommended to broaden these insights.