SHIFTING FROM ASIAN TO WESTERN MODEL OF LEADERSHIP: THE ROLE OF ORGANIZATIONAL CULTURE

Transformational leadership has been acknowledged as innovative means of empowering employees. However, its applicability in developing countries remains unproven due to the different perspective in organizational cultures. This article aims at investigating the practice of paternalistic and transformational leadership and firm performance of the public sector organization in Indonesia mediated through organizational culture. The data were taken from the leaders and members of the public sector organization from South Kalimantan of Indonesia. The smart PLS was used for analysis. As Indonesia is still reflecting a traditional bureaucratic type culture in favour of paternalistic leadership, implementation of transformational leadership is only partially applicable. Empirical insights into transformational leadership attempts most clearly indicate that Indonesian's ability to fit into this framework is problematical, but gradually, the concept is accepted. Thus, Indonesia can adopt the well-developed country administrative models, carefully examine their future and adversative effects, and selectively practice only those parts of such models that are appropriate to its societal contexts and people's need. This research implies that although public sector reform becomes more differentiated in the future and a variety of governance reforms emerge in the forms of law-driven, service-driven, or citizen-driven will be located within the context of a country's overall cultural dimensions.