Core values measurement

Case study of state-owned enterprises in Indonesia




Indonesia state-owned enterprise, values-based management, AKHLAK, business performance


Indonesia's state-owned enterprises are now on the verge of adopting a new management system called values-based management (VBM) or management by values (MBV) initiated by the Ministry of State-Owned Enterprises (SoE) by introducing a set of core values, namely AKHLAK (abbreviation from Bahasa Indonesia's words: Amanah / Trustworthy, Kompeten / Competent, Harmonis / Harmonious, Loyal, Adaptif / Adaptive, and Kolaboratif / Collaborative). This study uses an inductive/qualitative approach to understand how these core values are measured. The implication of this study will help SoEs to decide whether to use indirect or direct measurement methods in their effort to translate core values into values-based management. The initial finding shows the sample SoEs do not have a solid understanding of the differences between direct and indirect values assessments yet utilize the method of choice quite exclusively and extensively.    


Ab Hamid, M. R., Mustafa, Z., Idris, F., Abdullah, M., & Suradi, N. M. (2011). Measuring value-based productivity: A Confirmatory Factor Analytic (CFA) approach. International Journal of Business and Social Science, 2(6), 85-93.

Abdullah, M., Hamid, M. R. A., Mustafa, Z., Husain, N., Idris, F., Suradi, N. R. M., & Ismail, W. R. (2012). Value-based total performance excellence model: A conceptual framework for organisations. Total Quality Management & Business Excellence, 23(5-6), 557-572.

Barrett, R. (2013). The values-driven organization: Unleashing human potential for performance and profit. Routledge.

Beer, H. A., & Micheli, P. (2018). Advancing performance measurement theory by focusing on subjects: Lessons from the measurement of social value. International journal of management reviews, 20(3), 755-771.

Bititci, U. S. (2016). Managing business performance: The science and the art. John Wiley & Sons.

Buchko, A. A., & Buchko, K. J. (2012). Values-Based Management or The Performance-Values Matrix: Was Jack Welch Right?. Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012), 8(1), 69-83.

Chakraborty, S. K. (2001). Management and Ethics Omnibus: Management by Values, Ethics in Management, Values and Ethics for Organizations. OUP Catalogue.

Cheung, S. O., Wong, P. S., & Lam, A. L. (2012). An investigation of the relationship between organizational culture and the performance of construction organizations. Journal of Business Economics and Management, 13(4), 688-704.

Collins, J. C. (2009). Good to great: Why some companies make the leap, and others don't. New York, NY: HarperBusiness

Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage publications.

Deckert, T. J. (2007). Foundations of followership: A study identifying the values and behaviors deemed most desirable by small business leaders in north Florida (Doctoral dissertation, Capella University).

Dolan, S. L., & Garcia, S. (2002). Managing by values: Cultural redesign for strategic organizational change at the dawn of the twenty?first century. Journal of management development.

Dolan, S. L., & Richley, B. A. (2006). Management by values (MBV): a new philosophy for a new economic order. Handbook of business strategy.

Ebrahim, A. (2003). Accountability in practice: Mechanisms for NGOs. World Development, 31(5), 813-829.

Ebrahim, A., & Rangan, V. K. (2014). What impact? A framework for measuring the scale and scope of social performance. California management review, 56(3), 118-141.

Hoag, B., & Cooper, C. L. (2006). Managing value-based organizations: it's not what you think. Edward Elgar Publishing.

Russell, R. F. (2001). The role of values in servant leadership. Leadership & Organization Development Journal.

Schwartz, S.H., 2012. An overview of the Schwartz theory of basic values. Online readings in Psychology and Culture, 2(1), 2307-0 Schwartz, S. H. (2012). An overview of the Schwartz theory of basic values. Online readings in Psychology and Culture, 2(1), 2307-0919

Zhen, L. I. U. (2012). Management by values: a case study. International Business and Management, 4(2), 75-91.




How to Cite

Pratomo, T., Yulianto, E., & Zein, Z. (2021). Core values measurement: Case study of state-owned enterprises in Indonesia. International Journal of Research in Business and Social Science (2147- 4478), 10(3), 456–461.



Interdisciplinary Studies in Humanities & Social Sciences