Authors: Sam'un Jaja Raharja
Addresses: Department of Business Administration, Faculty of Social and Political Sciences, Padjadjaran University, Jatinangor-Sumedang 40292, West Java, Indonesia
Abstract: The textile industry occupies a strategic position in the Indonesian economy in the value of exports and employment. But now, many textile industries company have a decline competitiveness and business closure due to high production costs. Four major causes of the problems are: inadequate infrastructure, lack of the banking support, the availability of energy and the problems of bureaucracy and institutional practice. Institutional practice in the form of formal and informal rules that should be complementary, cannot work well. Dysfunction of formal and informal rules in the textile industry give slit opportunistic behaviour for the parties involved which in turn causes high costs assured by the company.
Keywords: competitiveness; costs; formal rules; informal rules; dysfunction; opportunistic behaviour; Indonesia.
International Journal of Economic Policy in Emerging Economies, 2018 Vol.11 No.4, pp.323 - 332
Available online: 28 Aug 2018 *Full-text access for editors Access for subscribers Purchase this article Comment on this article