The Internationalisation of PTT Telecom: A Cultural Perspective - Free

2269 SUCCESSFUL CROSS-CULTURAL COOPERATION ININDONESIA: A GOOD BALANCE IN POWERIn the previous chapter it was seenCase 1: Unisourcehow the acquisition andcooperation of KPN in theNetherlands Antilles was muchinfluenced by cultural andhistorical relations between theIndividual LevelNetherlands and the etherlandsInteractional LevelAntilles. Did the former colonialOrganisational LevelSociety Levelrelationship of the Netherlands withWorld LevelIndonesia also negatively influenceCase 3: IndonesiaCase 2: The Netherlands Antillesthe introduction of KPN into theIndonesian telecom market? This chapter addresses the cross-culturalexperiences of KPN in Indonesia in the period of 1992-1997. The cross-culturaldifferences that affected the cooperation between Dutch employees andIndonesian employees such as differences in language, perceptions of time, theinfluence of religion and ethnicity in daily business life, the importance ofpersonal connections in business and the different management styles arediscussed. These cases and practical examples of daily situations not onlyillustrate the cultural differences but also the way KPN and its employees dealwith this diversity. The personal strategies of KPN employees in reaction to thenew cultural context they are working in can be distinguished in three ways.Each of these are discussed and related to the corporate strategies of KPN.Finally, conclusions with regard to the success of KPN in Indonesia arediscussed.9.1 KPN Captures the Indonesian Telecom MarketSince 1990 KPN had been interested in commercial activities in Indonesia andits policy in Indonesia was based upon two objectives. The first objective was tobecome a first, second, or third local operator in Indonesia and the secondobjective was to find an Indonesian partner in telecommunications. Thequestion then raised is: Which strategies did KPN used to reach theseobjectives?9.1.1 Useful Personal Networks of the NCFIn 1990, the NCF General Manager in Jakarta initiated the commercial interestsof KPN in the promising telecom market of Indonesia. The NCF had itselfalready been active in Indonesia since April 1975 under the name of PTTConsultancy Team when KPN and PT Telkom signed a Memorandum ofUnderstanding on providing technical assistance and training programs forIndonesia’s telecom engineers and staff. During their stay in the Netherlands theIndonesian employees learned about KPN’s activities and organisation. Thesetrained employees later became the management of PT Telkom and governmenttelecom institutions. Apart from the participants of the training programs,Indonesian professionals, such as Dahoko, came into contact with the NCF.