By Marleen Dieleman
The Rhythm of method offers a richly documented research of the Salim staff, one of many greatest relations conglomerates in Southeast Asia. organize by way of Liem Sioe Liong, a chinese language emigrant, the Salim team developed from a small buying and selling enterprise in colonial Java into one of many biggest different companies at the Asian continent. whereas the Salim workforce is usually reluctant to supply info on its technique to most of the people, this quantity proposes that the conglomerate’s process oscillates among a enterprise version equipped on connections and a pro version tailored to markets. brushing aside the view that the gang is a customary chinese language ethnic firm—in which the cultural values of the founding family members affects company behavior—The Rhythm of approach argues that the group’s procedure made feel within the evolving institutional context of Indonesia, that is characterised via excessive transaction expenses, corruption, political hazard, and considerable company possibilities to cater to a wide and swiftly starting to be purchaser base.
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Additional info for The Rhythm of Strategy: A Corporate Biography of the Salim Group of Indonesia (ICAS Publications)
Most empirical cases using the co-evolution framework have confirmed that firms may exercise strategic choice, but that this is at the same time limited because of internal and external factors. The amount of empirical co-evolution studies is still relatively modest. The reason for this may be the considerable effort required to engage in longitudinal, context-specific studies. 87 Only a few of these studies are specific to Asian family business groups. 89 As far as I know, this is the first study of company in an emerging market that was large and powerful enough to directly influence its institutional context as well as being influenced by it.
The data-gathering phase resulted in an enormous amount of data, usually consisting of fragmented pieces of information. The first step 34 THE RHYTHM OF STRATEGY in the analysis was to restructure and internalise the material in order to pinpoint emerging themes. 96 Three themes were formed over time while reflecting on theories and data. The first theme identified was business networks. It was clear from the beginning that the Salim Group worked with a large number of partners. From the outset this made the concept ‘Salim Group’ problematic.
He did not want to, but wanted to sell the business for a very high price. In terms of return on investment etc you would say it was too high. But Liem said no, I will buy it. It was very expensive, 50 million dollars or so at the time. And what did he do with it? Suzuki became number two in the market in Indonesia. Intuition is important for him (person close to the group). Gut feeling, Liem was very good at that. For example selecting Sudwikatmono as a partner was a brilliant choice; he is a pribumi, a cousin of Suharto and really a man who knows his limits (person familiar with the Salim Group).