Gadjah Mada International Journal of Business
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Does Knowledge Stickiness Affect a Firm’s Innovation Capability? Empirical Evidence From Indonesian Furniture SMEs
Get PDFThis study aims to examine the relationship between knowledge stickiness and a firm’s innovation capability in the context of developing countries, i.e., Indonesia. The main research question addressed by this study is: does knowledge stickiness affect a firm’s innovation capability? Using data from 100 small- and medium-sized furniture enterprises (SMEs), the study finds that product innovations are predominant over process and organizational ones. However, incremental innovations are often more preferred than radical ones. This study also finds that the firms absorb knowledge from various sources to undertake innovations. Buyers, Internet, and suppliers are the significant sources, for sensory, coded, and theoretical knowledge. Buyers are also the main source of a great extent of various knowledge domains related to product, process, and organizational innovations. In general, the furniture firms do not pay considerable attention to planning stages when introducing innovations, as indicated by the fact that not all innovations are preceded by initiatives, except for really new processes and organizational innovations whose impact on the firms’ revenue is less visible. Out of four dimensions of knowledge stickiness used in this study, three of them (i.e., knowledge interconnectedness, sensory knowledge, and coded knowledge) are proven to have significant impact on a firm’s innovation capability. We find, knowledge interconnectedness and coded knowledge have a positive impact, while sensory knowledge influences a firm’s innovation capability in a negative direction. All in all, this study provides empirical evidence that knowledge stickiness has a significant impact on a firm’s innovation capability (explains 36% of total variance)
Enhancing Cross-Cultural Training Efficacy on Expatriate Adjustment through Emotional Intelligence and Social Capital
Get PDFCross cultural training is widely believed to make a positive contribution to expatriate adjustment. In practice, however, it is very costly and sometimes ineffective for expatriates. Therefore, there is a growing importance placed on increasing the cost effectiveness or enhancing the efficacy of crosscultural training by functioning individual expatriate’s social capital and emotional intelligence as moderating variables towards expatriate’s adjustment and performance. To do so we blend ideas drawn from social capital theory and emotional intelligence to develop the structure that underlies the logic of this paper. Thus, this paper uses social capital and emotional intelligence theories to enrich extant literature on expatriate adjustmen
The Impact of Public Capital Investments on the Revenue Growth of Medium Enterprise in Indonesia
Get PDFPublic capital investment represents the role of state and local governments in supporting greater capacity of private enterprises to gain success in a market economy measured by revenue growth. Medium enterprises are considered as the catalysts for economic growth and competitiveness particularly in developing countries due to efficiency and flexibility in an adverse economic environment. Using aggregate data of 30 states (provinces) in Indonesia from 1997-2002, the impact of public capital investment on the revenue growth of medium enterprise is examined. The paper finds that only medium enterprises in the industrial and trading sector benefited from public capital investments and the most optimum capital investment is in transport infrastructure.
Does Auditor Tenure Reduce Audit Quality?
Get PDFReduced auditor independence and the rise of corporate accounting manipulations have caused trust of the users in audited financial statements to begin to decline, so users of financial statements are questioning whether public accountants are independent parties. This research issue is related to the Decree of the Minister of Finance No. 17 in 2008 about public accountant services. Giving attestation services, in the form of financial statements about an entity, are conducted by the audit firm for no longer than 6 consecutive fiscal years and by a public accountant for 3 consecutive fiscal years at the longest. The purpose of this research is to examine empirically the influence of auditor tenure on audit quality. Auditor tenure is measured as the length of the auditor-client relationship. Audit quality is measured by the propensity of auditors to issue a going-concern opinion. This study uses a sample of firms listed on the Indonesia Stock Exchange during the 2003-2008 period. Research analysis uses logit model to measure the effect of auditor tenure on the auditors’ propensity to publish a going-concern opinion. The hypothesis which states that the length of auditor tenure influences negatively the propensity of auditors to issue a going-concern opinion is statistically supported. This research is expected to provide empirical evidence about the importance of limiting of the auditor-client relationship.
The Relationship between Humanness and Knowledge Sharing in Malaysia Empirical Evidence from Malaysian Managers
Get PDFThis paper explores whether there is a relationship between humanness and the willingness to share knowledge in Malaysia. Furthermore, the differences between the Malay, Chinese and Indian ethnicities are researched for the presence of humanness and the willingness to share knowledge. Two hundred and fourteen respondents from privately owned companies participated in this research showing that there is a strong relationship between humanness and knowledge sharing. However, the differences between the three ethnicities are small, which is a surprising finding. It can be concluded that people-oriented managers (one of the ways to express humanness) are more willing to share knowledge, and differences between ethnicities have no influence in this matter. From these results, it can be recommended to managers and organizations in Malaysia that they pay more attention and be aware of their management style.Stressing the humanness aspects more as they are described could improve the knowledge transfer within companies
Development of Micro, Small and Medium Enterprises and Their Constraints: A Story from Indonesia
Get PDFThe main aim of this paper is to discuss recent development of micro, small and medium enterprises (MSMEs) and their current problems in Indonesia, based on analysis of secondary data on their performance focusing on their contribution to gross domestic product (GDP) and productivity, and their constraints. It shows that their GDP share is larger than that of large enterprises (LEs). But it is mainly because their number is huge, while their productivity is low. Their main constraints are mainly high cost of raw materials, marketing difficulties, and lack of capital
The Impact of Financial, Non-Financial, and Corporate Governance Attributes on The Practice of Global Reporting Initiative (gri) Based Environmental Disclosure
Get PDFBusiness entities are able to exert their influence on particular stakeholders for the benefit of their interest by managing the information they disseminate to the public, particularly if there is no regulation on such issue in place. Accordingly, the extent of accounting information disclosed to the public, specifically voluntary environmental information, is determined by the internal characteristics of the business entities. The objective of this research is to test the financial, non-financial, and corporate governance attributes of Indonesian public companies which contribute to the extent of environmental information disclosure in Indonesia. This research measured the extent of Indonesian public companies’ environmental disclosure using Environmental Disclosure Index (EDI) as a dependent variable. The index is developed from the parameters under environmental protocols of the Global Reporting Initiative (GRI) G3 framework. Samples of 35 Indonesian public companies are purposively chosen for each of the year from 2005-2008 to form a total of 140 observations.The testing results conclude that size of company, economic performance, and industry sensitivity positively affect environmental disclosure. This research is limited by an assumption that Indonesian public companies employ annual report as the primary means to publicize financial and non-financial information to public.
Sustainability of TQM Implementation Model In The Indonesia’s Oil and Gas Industry: An Assessment of Structural Relations Model Fit
Get PDFThis study purposively is to conduct an empirical analysis of the structural relations among critical factors of quality management practices (QMPs), world-class company practice (WCC), operational excellence practice (OE), and company performance (company non-financial performance or CNFP and company financial performance or CFP) in the oil and gas companies operating in Indonesia. The current study additionally examines the relationships between QMPs and CFP through WCC, OE, and CNFP (as partial mediators) simultaneously. The study uses data from a survey of 140 strategic business units (SBUs) within 49 oil and gas contractor companies in Indonesia. The findings suggest that all six QMPs have positive and significant indirect relationships on CFP through WCC and CNFP. Only four of six QMPs have positive and significant indirect relationships on CFP through OE and CNFP. Hence, WCC, OE, and CNFP play as partial mediators between QMPs and CFP. CNFP has a significant influence on CFP. A major implication of this study is that oil and gas managers need to recognize the structural relations model fit by developing all of the research constructs simultaneously associated with a comprehensive TQM practice. Furthermore, the findings will assist oil and gas companies by improving CNFP, which is very critical to TQM, thereby contributing to a better achievement of CFP. The current study uses the Deming’s principles, Hayes and Wheelwright dimensions of world-class company practice, Chevron Texaco’s operational excellence practice, and the dimensions of company financial and non-financial performances. The paper also provides an insight into the sustainability of TQM implementation model and their effect on company financial performance in oil and gas companies in Indonesia.
Investigating the Joint Effects of Strategy, Environment and Control Structure on Performance
Get PDFThe purpose of this study is to investigate the effects of misfit between competitive environment, business strategy and control structure on performance. We argue that the misfit between competitive environment, business strategy and control structure has significant negative implications on shareholder value creation associated with firms’ Joint Venture formation. Based on data of publicly-traded US manufacturing firms that announce a joint venture formation, we found that firms that have perfect fit are valued higher than those with both strategy and structural misfits and also those with structural misfit. Contradictory results were found when comparing firms with perfect fit with those that have strategy misfit. Further analyses indicate that all those strategy misfit firms operate in high entry barriers, where firms can compete effectively using either innovation or cost efficiency strategy due to the fact that they possess resources that are difficult to be imitated by their competitors.
The Effects of Shopping Orientations, Consumer Innovativeness, Purchase Experience, and Gender on Intention to Shop for Fashion Products Online
Get PDFNowadays, many fashion retailers or marketers use the power of internet to promote and sell their products. This research examines the effects of consumers’ shopping orientations (brand/fashion consciousness, shopping enjoyment, price consciousness, convenience/time consciousness, shopping confidence, in-home shopping tendency), consumer innovativeness, online purchase experience for fashion products, and gender on consumers’ intention to shop for fashion products online. Data were collected through online surveys from the population of internet users in Indonesia, aged between 15 and 30 years old (generation Y), who had bought or browsed fashion products through the internet (N=210). This research is a quantitative research which uses purposive sampling and multiple regression analysis. Results show that the effects of several shopping orientations (shopping enjoyment, price consciousness, in-home shopping tendency), consumer innovativeness, online purchase experience for fashion products, and gender, are significant on consumers’ intention to shop for fashion products online. Furthermore, gender is marginally significant related to consumers’ intention to shop for fashion products online. Surprisingly, women tend to have lower intentions to shop for fashion products online compared to men.