Jack Ma’s Leadership Style
Syahmilian Putri
Faculty of Law, Universitas Muhammadiyah Yogyakarta, Indonesia
Corresponding Author: aldha.febrila.law21@mail.umy.ac.id
ABSTRACT
The man who was born in 1964 in Hangzhou, Zeijang, China, whose real name is Ma Yun, is the Founder
and Chairman of the E-Commerce giant company.The research method used is a Literature study, which is
a literature activity whose main point of a topic comes from various sources of books, journals, articles, and
papers. So that the following sources are used as guidelines or handles in making scientific papers.Never
giving up, persevering, learning from failures, not afraid to try new things, creative, enterprising and
persistent are some of the traits that must be possessed by a leader, both a leader in a company and an
organization. Jack Ma is a leader of alibaba group who has a very good leadership style because he has the
ability of a leader to never give up in all the failures experienced so that he can achieve success as he is
today.
Keywords
: Jack Ma, Alibaba, Leadership.
1.
Introduction
One of the richest people in China, namely Jack Ma is the largest E-Commerce
Revolutionary in China that we know today is the Alibaba Company. The man who was
born in 1964 in Hangzhou, Zeijang, China, whose real name is Ma Yun, is the Founder
and Chairman of the E-Commerce giant company. He founded Alibaba in 1999, which
over time the E-Commerce company not only grew rapidly and was famous in China but
has go international where all citizens of the world can use or access the Alibaba website
platform. An agreement between countries is the first arrangement in the world that binds
a group of adjacent countries to resolve all disputes that occur between countries. It has
also been considered a global role model for dealing with cross-border issues
1
. The richest
1
Yordan Gunawan and Yovi Cajapa Endyka, 2017, The Protection of Small and Medium Enterprises in
Yogyakarta: The Challenges of ASEAN Economic Community, Pertanika J. Soc. Sci. & Hum. 25 (S): 199 -
206 (2017)
man in China once revealed that he would make Alibaba will last for 102 years. Then the
nickname "Crazy Jack Ma" was attached to the small man
2
.
Of course, Jack Ma's success did not just come just like that, there were so many
obstacles and failures experienced by him that made him the billionaire he is today. One
of the most important major factors in Jack Ma's success was his leadership while running
and developing Alibaba. Jack Ma himself is a Chairman which means he is someone
whose position is the highest in the company where of course Jack Ma leads a lot and
holds responsibility for the company. There are many influential transnational
corporations (Transnational Corporations) such as IBM or Microsoft that are actually
more powerful economically and politically than most countries in the world. Many
experts say that countries in the world do choose to maintain control over various
companies, rather than accept an equal position as subjects of international law. It is the
developing countries primarily that have concerns about the dominance of transnational
corporations in the national economy, and their influence in the domestic politics and
economy of the host country.
3
A Leader must be able to influence and provide encouragement and motivation to
others to realize common goals both in the organization and the company. Not only that,
a Leader must also have high creativity to ensure the reliability of a product, either
thing
or services from the company. It is not easy to become a leader if you don't have
leadership traits, of course everyone can become a leader if we learn and understand what
a leader means correctly. The system is an arrangement or of interrelated parts that are
arranged according to a plan or pattern to achieve the overall goal. Law is a system. In
2
Astrid Savitri. 2017, “45 Cara Kaya Ala Jack Ma”, Genesis Learning (eBook) p.3
3
Yordan Gunawan, 2021, Pertanggungjawaban Indonesia dalam Pencemaran Asap Batas Lintas Negara,
LP3M UMY, p. 57
other words, law is the rule of social life which is an order composed of interrelated parts.
As a system, the interrelated components, parts, interdependent throughout the
organization are organized and integrated.
4
"Surrender is a Failure" is a quote from Jack Ma that describes that Jack Ma is a
businessman who started from the first point. There have been many failures that Jack
Ma has experienced but there is not a single failure that makes him give up because Jack
Ma considers himself to have not failed because he has not given up. Jack Ma is not a
smart person but he is a smart person, even Jack Ma himself admits that he is not an expert
in mathematics. But because of his intelligence in making decisions, he managed to
become a successful businessman.
2.
Methods
The research method used is a Literature study, which is a literature activity whose
main point of a topic comes from various sources of books, journals, articles, and papers.
So that the following sources are used as guidelines or handles in making scientific
papers.
3. Results and Discussions
3.1 Jack Ma’s Biography
Jack Ma was born on September 10, 1964 in Hangzhou, China. He is the founder
and chairman of the giant E-Commerce company Alibaba which was founded in 1999 in
China. Alibaba itself has reached up to Go International which can even be a competitor
to other E-Commerce such as Amazon and eBay. This Chinese man Ma yun was born to
a family that arguably has no official or important background, his parents are opera
4
Yordan Gunawan, 2021, Introduction to Indonesian Legal System, Yogyakarta: UMY Press, p. 10
singers. Even Jack Ma admitted that he had experienced bullying when he was a child
because his friend mocked Jack Ma's small and short body size.
Since elementary school he often scored poorly in Mathematics subjects and was
often rejected when he entered school because of his weakness in mathematics lessons.
Although weak in the field of Mathematics, Jack Ma has advantages in the field of
English. His dream is as a tour guide, in achieving his dream, Jack Ma made a lot of
efforts to achieve his goals, he even willingly became a foreign tourist guide without
being paid just to practice his English. Even during college, Jack Ma could only study at
Hangzhou teacher institute. Jack Ma then taught English at a college with a small income.
When he became a teacher, Jack Ma applied the same learning system when he was
young, which focused more on practicing orally than in theory.
3.1.2 Jack Ma's failure
After graduating from his college, Jack Ma experienced a lot of rejection. More
than 30 companies he has tried to apply for including companies engaged in the Food
sector, namely KFC and the Chinese Police. Jack Ma said that "When KFC entered the
country of China, there were 24 workers who applied and only 23 people were accepted,
1 person was rejected and that was me" then Jack Ma also admitted that he was rejected
in the Chinese police force because his body size was small and short.
"Crazy Jack" is his nickname because he is famous for his authentic crazy idea
while revealing he is going to set up an internet business that will go iinternational, people
just laugh at him and just take it as a joke from a Jack Ma who even his past and life are
very difficult if it is associated with his dreams. "With 1 million US dollars your life
becomes lucky, but when you have 10 million US dollars you will get into trouble" is
Jack Ma's phrase that by working as a teacher he has no burden.
5
A series of Jack Ma's failures that continue to spice up his life are very valuable
for Jack Ma himself because from his experiences that often fail it makes Jack Ma an
unyielding person and continues to try to achieve his success. Because to become
someone who is influential in the world, of course, you have a strong personality and
mentality than ordinary humans.
3.2
Jack Ma Becomes a Leader
When he became a teacher, Jack Ma was dissatisfied with the income he earned,
he felt that he was lacking in the salary of a teacher, which finally made Jack Ma quit his
comfort zone in 1995 Jack Ma stopped working as a teacher. In the same year Jack Ma
got the opportunity of a highway construction project in Seattle, United States. It was in
uncle Sam's land that Jack Ma first became acquainted with the Internet
6
. Jack Ma, who
was full of curiosity, finally learned the internet wisely, he began to try his first search on
search engines.
Jack Ma and his friend started to open a website about his country of birth and
tried to take advantage of advanced technology that at that time electronic devices in
China were very difficult for ordinary people to find. Not only that, Jack Ma continued
to develop the Website platform that he made more and more known and many investors
were interested in the website that Jack Ma made so that not a few wanted to invest in
Jack Ma, but by being forced to dismiss the website platform, until there Jack Ma had not
given up because Jack Ma thought that at that time he and his friends were still young,
5
Gisa Naraya. 2017, “Jack Ma: Manusia Triliun Yuan”, Genesis learning (eBook) p.13
6
Ibid
, p.16
and they won't want to give up, they'll make it again. And at that time Jack Ma was forced
to return from the United States to China.
When he returned to his home country, Jack Ma again made plans to create a new
website platform with 17 friends he founded Alibaba. He said that he still didn't give up
and finally realized his goal appropriately. Alibaba itself is an E-Commerce platform that
provides services in the field of buying and selling goods with an international reach
which means that all people from all over the world can access the platform.
When establishing and developing Alibaba, there are not a few businesses made
by Jack Ma, he as the Founder and owner certainly has a leadership spirit that is the main
factor in managing the Alibaba group company. And when it was founded, it was
impossible for the company to immediately become big, developing the E-commerce
platform, there was leadership that could coordinate and supervise the development of
the company. Jack Ma as Chairman certainly has that responsibility and authority.
In this era of globalization with the rapid development of science and technology,
a leader who is really qualified in handling various problems is needed and is able to
encourage the work of his employees or subordinates
7
. Because the purpose of the
company or organization that is carried out cannot be achieved only with the leader or his
subordinates, but must have a strong collaboration between the leader and his
subordinates. And the organization or company will not stand well if one of the superiors
or subordinates does not perform his roles and responsibilities well.
The failures that came to him were barrage from childhood to adulthood after
being rejected by 30 companies, and the competition in the business world that was very
7
Hj. Tati Nurhayati. 2012, “Hubungan Kepemimpinan Transformasional dan Motivasi Kerja”, Jurnal
Edueksos Vol I.
steep, making him almost feel hopeless. In 2014 Jack Ma officially got the title of the
richest man in China with a net worth of Rp 283 trillion and in the same year Alibaba
became the fourth largest company in the world. His success in reaching the point of
success was the result of his high sense of passion and his strong confidence to prove that
a weak little boy in mathematics subjects could become one of the influential businessmen
in the world. "Never give up, Today is hard, tomorrow will be worse, but the day after
tomorrow will be sunshine".
Jack Ma has also revealed that people have only seen 1 mistake compared to the
many good deeds that have been done, it means that Jack Ma is a leader who has a flexible
but firm leadership style, making Jack Ma an example for his subordinates in the
company. Even when he became a teacher, Jack Ma was late when class had started and
then he told his students that he didn't like someone who was undisciplined, because if it
was late it would be tantamount to killing someone else's time who at that time Jack Ma
was talking about himself.
3.3
Jack Ma's Leadership Style
The many of failures that Jack Ma received made him rise up and continue to be
a figure who dared to try something new and was not afraid of failure, because failure
was commonly accepted by him Jack Ma proved that someone who used to often
experience failures can become a successful person in the future. This trait is very
mandatory for a leader, if he is afraid to take risks and does not dare to try then his
company or organization that has been established cannot develop and only stays in the
same way. Jack Ma and his senior team also met at Alibaba's annual strategy review
sessions to discuss and set Alibaba's long-term strategy as well as consider
complementary organizational changes through a bottoms-up process with a third board
step, and they performed mid-term strategic reviews in the spring.
8
In China at that time the internet and computers were something that was not
accessible to everyone, When Jack Ma returned from the United States, he brought home
his knowledge of the Internet and with his fantastic idea he created a platform containing
about the bamboo curtain country. In this way, Jack Ma became a pioneer from China to
be able to access the internet with international reach.
Never giving up, persevering, learning from failures, not afraid to try new things,
creative, enterprising and persistent are some of the traits that must be possessed by a
leader, both a leader in a company and an organization. Some of these traits are certainly
owned by the Father of Alibaba, Jack Ma, who by having these traits he can build the
Alibaba Group. Charismatic leaders transform the nature of work (in this case work meant
to achieve the organization’s vision) by making it appear more heroic, morally correct
and meaningful.
9
3.4
Alibaba Group
The choice of the name Alibaba, which smells of the Middle East , has a meaning.
This name was handpicked by its founder, Jack Ma. Alibaba's name appeared when he
visited a café in San Francisco, United States. The young Jack Ma thought that the name
Alibaba, which was taken from the character Ali Baba in the legend story 1001 Nights,
was a very popular story. Many of the people he met in Uncle Sam's Country knew ali
Baba's story. It is said that Ali Baba is a generous person. Despite living in poverty, he
8
Julie Wulf. (2010). Alibaba Group. Harvard Business School Case, 710, 436.
9
J. A.Conger, & R. N. Kanungo (1998). Charismatic leadership in organizations. Sage Publications. p. 17
shares it with his fellows in need. That philosophy was then brought by Jack Ma when he
initiated an online store for small and medium-sized businesses.
Alibaba has attempted to establish relational legitimacy through systemizing
interactions between sellers and buyers (the primary stakeholders for relational
legitimacy) as well as among purchasers in a more transparent and dependable manner,
hence providing accurate and effective information. Alibaba has combined technology
and corporate social responsibility by establishing supplier networks, particularly for the
low-income class or in rural areas.
10
3.4.1
Alibaba's Footprint
Birth stage (1999 – 2002) Alibaba Ecosystem started its exploration in 1999 as a
B2B e-marketplace, when SMEs were lack of trading opportunities. At this stage, the
ecosystem had a very simple structure, including Alibaba.com as the core, users as the
key participants, and some other essential supportive species
11
. In August 2005, Yahoo
injected USD 1 billion into Alibaba, making the company the largest shareholder with a
40 percent stake. As part of the deal, Alibaba took control of Yahoo's business in China.
In 2007 Alibaba conducted an initial public offering (IPO) in Hong Kong. The public
listing managed to raise 13.1 billion Hong Kong dollars (gross). On its opening day,
Alibaba's stock soared from an offering price of 13.50 Hong Kong dollars to 39.50 Hong
Kong dollars.
In 2011 the emergence of the alipay controversy, Alibaba sold Alipay to a
group controlled by Jack Ma. The reason for this is because of the new rules issued by
10
Jooyoung kwak, Yue Zhang, Jiang Yu. (2019). Legitimacy building and e-commerce platform
development in China: The experience of Alibaba. Technological Forecasting and Social Change, 139,
115-124.
11
.Huang Lihua, Hu Ganglan, and Lu Xianghua. "E-business ecosystem and its evolutionary path: The Case
of the Alibaba Group in China." Pacific Asia Journal of the Association for Information Systems 1(4),3.
China's central bank, the People's Bank of China, which imposes regulations for third-
party online payments requiring them to obtain certain licenses.
But Yahoo, Alibaba's largest shareholder at the time, said the sale of Alipay
happened without their knowledge. Yahoo's statement was later refuted by Alibaba.
Yahoo, SoftBank, and Alibaba finally reached an agreement in the same year, that is,
Alibaba will be paid at least 2 billion Hong Kong dollars, but not more than USD 6 billion
on the condition that Alipay must be a listed company. In addition, Alipay is also required
to pay a license fee and continue to serve Taobao. Alibaba bought back half of the 40
percent stake held by Yahoo for USD7.6 billion. Yahoo received about USD6.3 billion
in cash, and USD800 million in preference shares in Alibaba in 2012. This is a huge return
for Yahoo after an initial investment of USD1 billion in 2005. September 2014 Alibaba
decided to become a public company on the New York stock exchange and became the
largest IPO in history. The e-commerce giant raised around USD25 billion from the
action. This move led Alibaba to become one of the largest technology companies in Asia,
and in the same year in October After the controversial Alipay, Ant Financial was created
not only to accommodate the payment system, but other financial services. The creation
of this affiliated company indicates Alibaba to create financial technology or fintech. Sure
enough, Ant Financial is now the largest fintech company in China with assets of about
USD150 billion. Alibaba shares up more than 150 percent from the offering price of
USD68. In August 2015 Alibaba invested 28.3 billion yuan, or about USD4.56 billion
into Suning Group, one of China's largest trading companies targeting rural and sub urban
markets. They have more than 1,600 stores spread across more than 700 cities in China.
This is Alibaba's effort in combining online with offline businesses. The goal is to unify
payments, e-commerce, food delivery, and other parts of its business into one large
ecosystem.
The company founded by Jack Ma is not only Alibaba, including Taobao. Taobao
is a marketplace platform that provides the largest online buying and selling services in
China, Taobao was founded in 2003 to offer goods sold at retail. Tmall.com was
introduced in 2008 to complement Taobao's business of offering a global brand to an
increasingly affluent consumer base in China. Juhuasuan was launched by Taobao in
2010 and became a separate business in 2011, Juansuan offers "Quick Sale Sales". Then
there is eTao which is a shopping comparison site, online shoppers can use this site to
compare prices sold from different sellers.
4. Closing
4.1 Conclusion
Jack Ma is a leader of alibaba group who has a very good leadership style because
he has the ability of a leader to never give up in all the failures experienced so that he can
achieve success as he is today. Not only his ability to lead, learning from many
experiences and not being afraid to try to create something new illustrates that he is a
creative and innovative person, making him a very influential entrepreneur in the world.
When we hear the word Alibaba, of course, we immediately think of Jack Ma. He can
also create his own job opportunities when he feels lacking by his job income at the time
proving that Jack Ma is able to get out of his comfort zone. Not only that, Jack is very
suitable to be a motivator for novice business people who want to start their careers
because his words are very motivating for all of us.
Jack Ma's ingenious and future-oriented way of thinking makes the origin of
Alibaba group different from other E-Commerce platforms. One of Jack Ma's most
famous mottos, "Never Give up", Reflects the attitude with which Jack Ma has faced
rejection throughout his life. Getting rich overnight is a parable that is suitable to be
associated with Jack Ma
12
.
Then with the leadership of Jack Ma who can bring the name of Alibaba group
into Forbes Magazine with various awards and nominations that can be a benchmark for
all of us that a good leader can bring his subordinates to achieve common goals.
Failure is the beginning of success, even when it is successful, there is no doubt
that we will definitely get failure, therefore the first step we take is to never give up and
continue to try, because if you have given up then that is where the real failure is. In the
course of Jack Ma's life, he never gave up and always made failure a valuable experience,
although body size is a barrier when he wants to apply for a job, but with these
shortcomings Jack Ma can prove that people with physical deficiencies can become
influential people in the world.
4.2 Suggestion
Jack Ma's leadership style can be a role model for beginners who want to start
their careers in the business world. Jack Ma's success began with failures that came since
he was a child, because getting a lot of failures is what makes Jack Ma become
accustomed to failure. His unyielding nature and high curiosity honed his creativity and
created the latest innovations in the field of online business. We should be able to learn
from how Jack Ma rose from failure to be able to build a large company, not only that,
Jack Ma's leadership style is exemplary to develop a large company.
12
Suk Lee, Bob Song. 2016, “Never Give Up: Jack Ma In His Own Words” Royal Collins Publishing Group
(eBook) p.16
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