The interplays of congruence and social identity theories to explain the entrenched market of Japan made car products in Indonesia

Abstract

Japanese car producers have enjoyed the largest market in Indonesia. Though competitors from other countries also make a serious penetration, its dominance does not budge. Its car business dominance in Indonesia has attracted attention, and the study intends to identify factors that might play role in their business entrenchment. It focuses on resale value as a standard for wide acceptance’s products, and looks into economic match, maintenance convenience, and perceived fitness as factors that determine its resale value. The choice to apply these constructs are guided by congruence theory Being overlooked by car business literature, the study attempts to explore the role of length of contribution factor that might moderate their effects on Japanese car resale value. This application is based on social exchange and social identity theories All of research’ constructs are new, and becomes its’ novelty. The findings could be that economic match, maintenance convenience, and perceived fairness have respectively significant effects on resale value, and that length of contribution significantly moderates the relationships of economic match, maintenance convenience, and perceived fitness to resale value. It reaches important conclusion that closeness to local market condition and demand, and contribution are important factors for a certain business, and resale value of Japanese cars is a good example.