Inclusive Leadership And Cultural Value Internalization In Shaping Employee Performance In A Multicultural Organization; A Grounded Theory Study Of Work Environment Dynamics At Arunika Joglo & Eatery

Abstract

This study explored the dynamics of inclusive leadership and the work environment in shaping employee performance through the internalization of Javanese and Sundanese cultural values at Arunika Joglo & Eatery, a culinary tourism enterprise in Kuningan, West Java. The organization implements the ISO 9001 Quality Management System, which makes the consistency of employee performance across a culturally diverse workforce a strategic concern for its quality objectives. A qualitative approach with a Grounded Theory design was employed. Data were collected from 14 informants, comprising 9 members of management and 5 non-managerial staff of Javanese and Sundanese backgrounds, through in-depth interviews, observation, and documentation. Data were analyzed through open, axial, and selective coding. The findings showed that inclusive leadership was manifested through open communication, employee participation, leadership accessibility, and appreciation of cultural diversity. Javanese and Sundanese cultural values were internalized through social interaction, cultural adaptation, and leadership modeling, forming a harmonious, tolerant, and collaborative work culture. Employee performance emerged from the interaction between inclusive leadership, cultural internalization, and a conducive work environment, which in turn reinforced the consistent implementation of ISO 9001 procedures. The substantive theory generated indicated that, in a multicultural organization, inclusive leadership capable of integrating cultural diversity fosters shared cultural values, creates a conducive work environment, strengthens collaborative work behavior, improves the consistency of employee performance, and supports the sustainability of ISO 9001 implementation.