Document Type
Article
Publication Date
12-1-2009
Abstract
Moving beyond the competing theories on public leadership and citizen voice, the study investigates whether local public executives' influence on reform depends on business voice; and whether leadership or voice is mediated by public-private sector dialogue before either can influence reform. Extending Hirschman's Exit-Voice-Loyalty theory, the conditional effects of leadership and voice are tested to assess if quasi-exit (collusion), association membership, or dissatisfaction with government services moderate reform. Multi-group invariance tests are conducted for each moderating condition to assess if key findings are robust across business firms. Based on structural equation analysis of survey data from over 12,000 small, medium-sized, and large firms in Indonesia, the key findings include: (i) business voice has no significant direct effect on reform and its interactive effect with leadership on reform is surprisingly negative; (ii) however, voice contributes indirectly to reform through public-private sector dialogue; (iii) while quasi-exit has negative and dissatisfaction has positive moderating effects on reform, association membership has none. Overall the findings suggest that it may not be entirely useful (or correct) policy to consider only the main effect of leadership or voice as there are multiple pathways in business environment reform.
Keywords
Indonesia -- politics and government, Indonesia, leadership, voice, business environment, quasi-exit, loyalty, mediation, moderation.
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Chua, Jaime, "Government Leadership-Business Voice: An Interaction and Mediation Analysis of Business Environment Reform in Indonesia" (2009). Student Scholarship. 227.
https://commons.case.edu/studentworks/227