Title: A comparison of two colonial paths to the western model of corporate governance

Authors: Martin S. Mulyadi

Addresses: Shenandoah University, 1460 University Drive, Winchester, VA 22601, USA

Abstract: Indonesia and Malaysia are close countries, both geographically and culturally. Both countries have historically attracted Europeans' interest. Europeans first arrived in Indonesia and Malaysia only for trading purposes, but later colonialised both Indonesia and Malaysia. Both countries were uniquely affected during their colonialisation periods, such as different colonialist country and approach, different paths to independence, and different political ideology. Conflict between the two countries existed for a brief period following Malaysia's independence, with the relationship improving and stabilising after the new administration in Indonesia in 1965. Both countries achieved constant economic growth until the 1997 Asian Financial Crisis. The crisis led to both countries developing a Code of Corporate Governance which was introduced for the first time in the year 2000 (Alnasser, 2012; Daniel, 2003). This paper provides a historical account of the journeys of two similar, but different countries in adopting the Western model of corporate governance.

Keywords: Indonesia; Malaysia; corporate governance; colonialisation; Asian financial crisis.

DOI: 10.1504/IJBEX.2022.121588

International Journal of Business Excellence, 2022 Vol.26 No.2, pp.137 - 160

Received: 10 Sep 2019
Accepted: 24 Oct 2019
Published online: 21 Mar 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article