Venture Capitalism versus Indigenous Human Resource Management

In 2019, an American couple were travelling the world when they settled in Bali and were employed by Spice Island Cruises (SIC). At the time, SIC was controlled by a venture capitalist who ignored local indigenous business traditions and measured success with short-term key performance indicators. A collision between the Western and Indonesian organizational cultures resulted, and following a crisis meeting of SIC partners, the venture capitalist sold his share in the company. The American husband was appointed general manager and had only two weeks to prepare an action plan for SIC before taking over. What strategy should he follow to restore the company's reputation and employees’ trust and to develop a successful future?

This case is ideal for use in an undergraduate or graduate course in international management, international business (focused on southeast Asia), or international human resource management. It could also be used as a major written assignment in the second half of a unit, as a group discussion workshop conducted in a 90-minute class, or as a homework exercise where students come to class to discuss the findings and/or to discuss and compare their strategies. After working through the case and assignment questions, students will be able to<ul><li>identify, analyze, and understand how culture and context influence the transaction of business in Asia;</li><li>identify and understand how culture influences communication in this region;</li><li>propose strategies to achieve success for a company that is recovering from a significantly negative clash between Western and Indonesian business cultures; and</li><li>identify and understand the different methods and respect required to successfully manage an indigenous workforce in Asia.</li></ul>

• Culture, HRM, Capitalism, Strategy