Degree Name

Doctor of Philosophy (PhD)


School of Accounting and Finance - Faculty of Commerce


There is a limited published research on corporate governance practise in Asian countries, during and after the Asian economic crisis of 1997, especially the practise within the Indonesian context. Most of Indonesian companies suffered a loss during the crisis, and only a limited number of companies survived and booked a profit. This study is concerned with the corporate governance practice in a baby milk formula producer and a public listed company, PT Sari Husada Tbk. The company was acquired by Royal Numico N.V. Holland in 1997 and was one of those Indonesian companies which survived and outperformed the market average during the crisis. This research examined the elements of corporate governance system at Sari Husada and the role of each level of the firm, so that it could perform in the best interest of the company, using an ethnographic qualitative approach. Twenty one respondents from inside and outside the company have been interviewed, in order to find out evidences about what happened, how it happened and why it happened. Three cornerstones, corporate governance, corporate culture and strategic management, were used in analysing the data. The study found that the corporate governance practise in Sari Husada was partly adopted from the literature with some adjustments which included local culture and national interests. The company survived the crisis of 1997 because of the adoption of a multinational company's working system, the cultural change toward the attitude of productivity and efficiency, the products with an affordable price and quality nutrient, and the long and enduring effort of its managers and staff. Above all, Sari Husada has been able to transform into a new modern company which produces various related food products for babies.

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