The strategic role of collectivism culture in increasing firm value: Stakeholder theory perspective

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Abstract

This study seeks to identify empirical evidence regarding the influence of collectivist cultural values in reinforcing corporate governance mechanisms and integrated reporting practices, with the ultimate objective of enhancing firm value. This study includes quantitative research, and secondary data sources are obtained from the integrated reporting database example. The data obtained were 420 data points through a predetermined sample selection. The sample observation year starts from 2020 and ends in 2024. WarpPLS is used as a tool to analyze the data. The results of this study indicate that a collectivism culture can strengthen integrated reporting, but can weaken corporate governance. In addition, corporate governance has a positive effect on firm value, but, on the contrary, integrated reporting has a negative effect on firm value. The implication of this study is that a collectivism culture has a role in corporate governance and integrated reporting, which can later impact firm value. Good governance will later demonstrate the company’s transparency and responsibility, and this is expressed in integrated reporting, so that the company’s value will increase. In addition, the practical implication for regulators is the establishment of policies regarding good corporate governance and integrated reporting that are appropriate to conditions in their country. The originality of this study is the use of collectivism culture to increase firm value.

Keywords: Collectivism Culture, Corporate Governance, Integrated Reporting, Firm Value

Authors’ individual contribution: Conceptualization — Z.M.; Methodology — E.S.; Software — E.S.; Validation — A.S; Formal Analysis — Z.M. and A.S.; Investigation — Z.M. and A.S.; Resources — Z.M., A.S., E.S., and T.H.S.; Data Curation — E.S.; Writing — Original Draft — Z.M.; Writing — Review & Editing — T.H.S.; Visualization — Z.M.; Supervision — T.H.S.; Project — Administration — L.F. and Z.Y.H.; Funding Acquisition — T.H.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G14, G34, G40

Received: 12.07.2025
Revised: 07.10.2025; 24.12.2025
Accepted: 20.01.2026
Published online: 22.01.2026

How to cite this paper: Machmuddah, Z., Sumaryati, A., Suhartono, E., Sam, T. H., Feng, L., & Yuan Hong, Z. (2026). The strategic role of collectivism culture in increasing firm value: Stakeholder theory perspective. Corporate and Business Strategy Review, 7(1), 171–178. https://doi.org/10.22495/cbsrv7i1art15