New Productivity Concept Based on Local Wisdom: Lessons from Indonesia

Abstract

Objective - This research aims to reveal the productivity culture existing in Rumah Makan Padang (RMP), located in Jakarta, with a view to generating a concept of productivity that is in line with RMP-based local wisdom. Methodology/Technique - An ethnographic method was employed to investigate the local perspective in the attempt to develop a new concept of productivity. Findings - The findings show that the concept of productivity existing in RMP differs from the contemporary concept of today's culture. Novelty - Whilst the conventional concept of productivity stresses on the material aspects which can be physically and financially measured with a productivity ratio of output toward input, the concept existing in RMP stresses not only on material aspects, but also spiritual aspects, to have lived in and been reflected from its uniqueness of work measurement, that is income per mato (IpM). The spiritual aspect in RMP includes a mutual belonging of the value of IDR 1, risk taking and profit sharing, proportional togetherness, spiritual leadership, hard work, bravery and willingness to sacrifice. Type of Paper: Empirical Keywords: New Product development, Management, local wisdom, Indonesia. JEL Classification: M11. M19.