Gadjah Mada International Journal of Business
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Does Auditor Rotation Increase Auditor Independence?
Get PDFThis study aims to empirically test the effects of auditor rotation and auditor tenure on an auditor’s independence in companies listed on the Indonesia Stock Exchange during the years 2002-2010. This study using logistic regression estimation technique. The results show that, statistically, the auditor’s tenure has significant negative effects on the auditor’s independence, measured by the tendency to give a ‘going concern’ opinion. Furthermore, the results also show significant differences between the effects of short and long term tenures on the auditors’ independence. Auditor rotation has significant positive effects on the auditors’ independence
The Behavioral Intention of Micro Enterprises to Use the Integrated Cash Waqf Micro Enterprise Investment (ICWME-I) Model as a Source of Financing
Get PDFThis study is designed to examine the behavioural intention of micro enterprises to use the Integrated Cash Waqf Micro Enterprise Investment (ICWME-I) model as a source of financing in Malaysia. The primary data are collected from the survey administered to micro entrepreneurs in the Klang Valley and the analysis is conducted using Structural Equation Modeling (SEM). Furthermore, the model has validated its acceptance in the field by adopting the Theory of Reasoned Action (TRA). This study has revealed that both the attitude and subjective norms are found to have a positive impact on the intention of micro entrepreneurs to use the ICWME-I Model in the context of Malaysia
Alliance Entrepreneurship and Entrepreneurial Orientation: The Mediating Effect of Knowledge Transfer
No full textToday’s rapidly changing business environment has impelled companies to cooperate with their competitors in order to gain more competitive advantages through a win-win situation. Thereby, building alliances is one of the cooperative strategies that have been adopted by many enterprises, consequently attracting great attention from scholars. However, the literature about alliances seems to lack studies in the domain of entrepreneurship. Accordingly, this paper aims to extend entrepreneurship into the field of alliances by highlighting two phenomenal concepts: alliance entrepreneurship, and entrepreneurial orientation. Hence, the relationship between these two constructs, together with the mediating role of knowledge transfer between alliance partners, is investigated. Employing the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique we analyze a set of data from the automotive industry and its sub-sectors. The results confirm the significant positive effect of alliance entrepreneurship on partners’ entrepreneurial orientation, as well as the mediating effect of knowledge transfer
Using means-end chain analysis to reveal consumers' motivation for buying local foods: An exploratory study
Get PDFThis article utilizes and discusses specific aspects of Means-End Chain (MEC) analysis for understanding of the motives of Indonesian consumers who are involved in purchasing local foods. The MEC theory is used as a measure of attributes, consequences, and values of locally produced products involving specific aspects of this theory namely laddering methods of administration, content analysis procedure, constructing and interpreting Hierarchy Value Map (HVM). The results of the study indicate that MEC approach is a powerful method to reveal consumer motivation of local foods when associated with the various cultural groupings identified by the study particular between Javanese and Non-Javanese consumers. This study offers a practical implication and source of knowledge for other future studies and policies in term of (a) a new approach for understanding the motives behind purchasing local foods for Indonesia consumers, and (b) developing new categories of attributes, consequences and values of local foods
Debunking the Monday Irrationality through the External Affection of Investors
Get PDFThis study aims to reveal the mechanism of the influences of the full moon and high temperatures on investors’ Monday irrationality. In contrast to other studies, this research was built under a retroductive approach by using a time series quasi experimental study. Investors were directly assessed for their irrationality by using an adapted psychometric test on 4 occasions. The results indicate that there were indeed effects of the full moon and high temperatures on investors’ irrationality. Because the full moon and high temperatures frequently occurred on Mondays, it is most probably those two variables that were the drivers of the Monday irrationality. In the end, we concluded that the rational behaviour assumption can no longer be held. Instead of rationality, the investors were quasi rational. The utility function of Von Neumann-Morgenstern in decision making has to be replaced by the hedonic utility
The Determinant Factors of Technology Adoption for Improving Firm’s Performance: An Empirical Research of Indonesia’s Electricity Company
Get PDFThis study investigates the determinant factors of technology adoption by connecting Technology Organizational Environment (TOE) with the dynamic capability factors. Using 518 respondents representing 222 business units of Indonesia’s electricity company, the study found that only the absorptive capability has a positively significant effect on technology adoption. Practically, the study emphasizes that without the absorptive capability for managing the resource, the core competence of a firm will not occur and the adoption of technology will be less effective. Another finding is the absorptive capability’s typology mapping the eight technology adoption statuses in an organization, based on three of the determinant factors: the externalities, entrepreneurial leadership and slack resources
Investigating the Effects of Consumer Innovativeness, Service Quality and Service Switching Costs on Service Loyalty in the Mobile Phone Service Context
Get PDFThe objective of this study is to examine the effects of consumer innovativeness, service quality, service switching costs and service satisfaction on service loyalty among mobile phone service users. A cross sectional survey was employed which yielded 535 responses. Structural equation modelling using the AMOS version 2.0 was utilized to test study the hypotheses. Test results reveal that service satisfaction, service switching costs and service quality are the three antecedents that directly influence service loyalty. However, consumer innovativeness does not have any direct effect on service loyalty. Moreover, service satisfaction is found to be a partial mediator between ‘service quality’ and ‘service loyalty’. Findings from this study will develop insights to enable policy-makers, managers and marketers to better strategize and effectively implement loyalty programs and prevent their customers from switching. This will enhance value creation for both their users and for the industry
Socioemotional Wealth and Firms’ Control: Evidence from Malaysian Chinese Owned Companies
Get PDFThis paper explores how the preservation of socioemotional wealth can be manifested in the control and corporate governance of Malaysian Chinese firms. Using panel data from the Industrial Products index of the Bursa Malaysia (the Malaysian stock exchange) during 2003-2006, we show that the ingrained ‘life-raft values’ among overseas Chinese entrepreneurs can be associated with the preservation of their socioemotional wealth, and thus they prioritize control over their firms. Additionally, we confirm the monitoring role of non-dominant large shareholders in reducing the families’ influence in managing and enhancing their firms’ performance. Specifically, control contestability exercised by the non-dominant large shareholders mediates the relationship between a family’s involvement in management and their firm’s performance
Factors Influencing the Yemeni Customers’ Intention to Adopt Takaful Products
No full textThe purpose of this study is to examine the Yemeni customers’ intention to adopt takaful products, and to explore the potential factors that influence their decision. This study applies SEM and one sample t-test to analyse the collected data. The results indicate that among the factors included in this study, only compatibility positively and significantly affects the adoption intention. This is the first study that addresses the adoption of Takaful products in Yemen and the factors that influence it. Furthermore, this study extends the Innovations Diffusion Theory (IDT) by applying it to a different setting
Financial Disclosure and Budgetary Practices of Religious Organization: A Study of Qaryah Mosques in Kuala Terengganu
Get PDFThis paper aims to examine the financial reporting and budgeting practices of qaryah mosques in Kuala Terengganu, a state in the east of Peninsular Malaysia. Data was collected using a mixed method (quantitative and qualitative) approach. The questionnaire was disseminated to qaryah mosques in Kuala Terengganu and 39 responded. To address the limitations of a questionnaire survey, semi-structured interviews were then conducted with a few of the respondents. The results revealed that qaryah mosques in Kuala Terengganu do have a satisfactory system in place in terms of their financial reporting practices. However, budgetary control practices appear to be lacking. This indicates accounting, as is practiced by qaryah mosques in Kuala Terengganu appears to be limited to financial accounting. Hence, the financial management in qaryah mosques needs to be improved so that the risk of embezzlement can be reduced