TRUST AND CONTROL ASPECTS IN JOINT VENTURE OF GARUDA INDONESIA AND SRIWIJAYA AIR

Dariyah Dariyah; Indra Setiawan; Suharto Abdul Majid

doi:10.53625/ijss.v4i4.1971

Authors

Dariyah Dariyah Institut Transportasi dan Logistik Trisakti, Cipinang Besar Selatan, Jakarta, Indonesia
Salutations Institut Transportasi dan Logistik Trisakti, Cipinang Besar Selatan, Jakarta, Indonesia
Suharto Abdul Majid Institut Transportasi dan Logistik Trisakti, Cipinang Besar Selatan, Jakarta, Indonesia

DOI:

https://doi.org/10.53625/ijss.v4i4.1971

Keywords:

Trust, Control, Joint Ventures, Airline Companies.

Abstract

This research examines the aspects of trust and control in the joint venture cooperation pattern of Garuda Indonesia and Sriwijaya Air in managing organizational uncertainty. This research distinguishes trust from control. However, the two remain closely related as information from the control system can also be used to assess the level of trust. Qualitative research methods were used in this study by interviewing 6 (six) management ranks from Garuda Indonesia and Sriwijaya Air respectively, as well as focus group discussions with practitioners, academics, ministry of transportation, government, and stakeholders, and users. Specifically, this research addresses the role played by information from three types of controls (output, behavioral, and social) in determining two types of trust (competence and goodwill). Competence trust and goodwill trust are tested at the operational and executive levels, respectively, and in terms of information that builds and destroys trust. Findings from a case study of a joint venture between two airlines show that controls generate information that strengthens competence trust at the operational level, but leaves goodwill trust at the executive level relatively vulnerable to betrayal of goodwill trust.

References

Arnaboldi, M., Busco, C., & Cuganesan, S. (2017). Accounting, accountability, social media and big data: revolution or hype? Accounting, Auditing & Accountability Journal, 30(4), 762-776.

Arsel, Z. (2017). Asking questions with reflexive focus: A tutorial on designing and conducting interviews. Journal of Consumer Research, 44(4), 939-948. Asay, H. S., Guggenmos, R. D., Kadous, K., Koonce, L., & Libby, R. (2022). Theory testing and process evidence in accounting experiments. The Accounting Review, 97(6), 23-43.

Bamberger, P. A., Biron, M., & Boon, C. (2014). Human resource strategy: Formulation, implementation, and impact. New York: Routledge.

Cäker, M., & Siverbo, S. (2011). Management control in public sector joint ventures. Management Accounting Research, 22(4), 330-348.

Franco‐Santos, M., & Otley, D. (2018). Reviewing and theorizing the unintended consequences of performance management systems. International Journal of Management Reviews, 20(3), 696-730.

Free, C., & Hecimovic, A. (2021). Global supply chains after COVID-19: the end of the road for neoliberal globalisation? Accounting, Auditing & Accountability Journal, 34(1), 58-84.

Lee, M. Y., & Edmondson, A. C. (2017). Self-managing organizations: Exploring the limits of less-hierarchical organizing. Research in Organizational Behavior, 37, 35-58.

Majid, S. A. (2018). Aviation Company Strategy Management (Airlines Strategy Management). Strategy for Creating Excellence for National Aviation Companies. Bogor: In Media.

Malsch, B., & Salterio, S. E. (2016). “Doing good field research”: Assessing the quality of audit field research. Auditing: A Journal of Practice & Theory, 35(1), 1-22.

Mubarak, M. F., & Petraite, M. (2020). Industry 4.0 technologies, digital trust and technological orientation: What matters in open innovation? Technological Forecasting and Social Change, 161, 120332.

Nippa, M., & Reuer, J. J. (2019). On the future of international joint venture research. Journal of International Business Studies, 50, 555-597. Pratama, A. M., & Sukmana, Y. (2 October 2019). The ups and downs of Garuda Indonesia's relationship with Sriwijaya Air. Retrieved from https://money.kompas.com/read/2019/10/02/093344426/paangkat-saturan-garuda-indonesia-dengan-sriwijaya-air?page=all

Rikhardsson, P., & Yigitbasioglu, O. (2018). Business intelligence & analytics in management accounting research: Status and future focus. International Journal of Accounting Information Systems, 29, 37-58.

Van Der Meer-Kooistra, J., & Kamminga, P. E. (2015). Joint venture dynamics: The effects of decisions made within a parent company and the role of joint venture management control. Management Accounting Research, 26, 23-39.

Van Veen-Dirks, P., & Giliam, A. (2020). Understanding the Interactions between Control, Trust, and Perceived Risk in Public Sector Joint Ventures. In Advances in Management Accounting (Vol. 32, pp. 1-34). Emerald Publishing Limited.

Yin, R. K. (2018). Case study research — Design and methods. Thousand Oaks, CA: Sage.