The Impacts of Traditional Culture on Small Industries Longevity and Sustainability: A Case on Sundanese in Indonesia

Abstract

This study investigates traditional culture as one of the factors of the longevity and cross-generation sustainability of Sundanese small industries in Indonesia. The failure rate of small industries in Indonesia is high, and thus, this study is critical. We mapped the relationship between Hofstede’s cultural dimensions, longevity, and business sustainability in ten selected Sundanese small industries surviving up to three generations. Data were obtained from semi-structured interviews and company data. The results revealed that the strength of Sundanese cultural traditions, including high long-term orientation, high collectivism, low power distance, and high indulgences, positively contribute to the longevity of small industries in Indonesia. In addition, the social performance of Sundanese entrepreneurs is mainly based on their religious values and a highly collectivist culture; educational experience also affects their environmental performance. This study highlights the need to understand the traditional culture, which can play an essential role in achieving business longevity but also can present some limitations, especially in terms of economic performance. Therefore, to create a sustainable small industry, efforts are needed to change the mindset of Sundanese entrepreneurs to be more open to an innovative global culture while maintaining local values that positively contribute to business.