Gadjah Mada International Journal of Business
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The Implementation of Corporate Social Responsibility (CSR) in Central Java Earthquake: A Preliminary Study on Consumer Belief, Attitude, and Purchase Intention
Get PDFIn Indonesia, Law No. 40/2007 paragraph 74 on Limited Liability Corporation regulates corporate social responsibility (CSR). Although CSR is mandatory for Indonesian resource-based firms, only four months after its enactment, six parties have asked for a judicial review to the Constitution Court as to the mandatory implementation of CSR. They argue that the mandatory implementation of CSR might result in legal uncertainty, render businesses inefficient, decrease competitiveness, and trigger discriminative treatments. Using the cases of CSR after the earthquake in Yogyakarta, this paper aims at answering the question of whether the implementation of CSR will lead to a decrease in competitiveness. Harnessing a mixed method of qualitative and quantitative approaches, this paper examines the models of beliefs, attitudes, and purchase intentions of consumers toward a company implementing CSR. The first phase of this study used a focus group discussion (FGD) to collect data from those who had benefited from CSR, and was analyzed using the content analysis. The results of the first phase then became the basis for the second phase. In the second phase, data were collected by surveying parents of school children whose school buildings were reconstructed by CSR programs, and answers were analyzed using the partial least squares analysis. Results show that the conjecture that the implementation of CSR will result in a decrease in competitiveness is not true. It is evident that CSR program affects the attitudes of consumers toward the firm, and that attitude fully mediates the relation between beliefs and purchase intentions toward the products of the firm implementing CSR
Integration of Stock Markets between Indonesia and Its Major Trading Partners
Get PDFUsing Autoregressive Distributed Lag (ARDL) and Vector Autoregressive (VAR) frameworks, this study examines the integration between the emerging stock market of Indonesia and its major trading partners (i.e., Japan, the U.S., Singapore, and China). During the period of July 1998 to December 2007, the Indonesian stock market is found to be integrated with its major trading partners. Thus, this implies that there is a limited room available for investors to gain risk-reduction benefits through diversifying their portfolio in those markets. Meanwhile, in the short run, the Indonesian market responds more to shocks in the U.S. and Singapore than in Japan and China. In designing policies pertaining to its stock market, the Indonesian government should take into account any development in the stock markets of its major trading partners, particularly the U.S. and Singaporean markets
Managerial Views of Supply Chain Collaboration: An Empirical Study
Get PDF This paper is carried out to empirically examine managerial perceptions on the relationship between supply chain collaboration practice and operational performance. The framework suggests that collaborative practice is characterised by three distinct factors: (1) decision synchronisation, (2) information sharing, and (3) incentive alignment, which enable the chain members to effectively match supply with customer demand. An important question is whether or not collaborative practice leads to better operational performance. A survey research was employed to assess the relationship between collaborative practice and operational performance of New Zealand companies. The survey results show significant positive impacts of key factors of collaborative practice on operational performance. The findings suggest that information sharing, decision synchronisation, and incentive alignment are important determinants of operational performance. This study demonstrates that the chain members need to understand the role of different key factors of collaborative practice that can be redesigned to leverage operational performance
Analyzing Growth Opportunity of Port from the Resource-based Perspective The Case of Port of Tanjung Pelepas Malaysia
Get PDFCapturing growth opportunity has become a major integral activity of any port to sustain growth and competitive advantage. One of the famous strategies in leveraging sustainable growth and competitive advantage is the resource-based theory application into port strategic management, viewing resources of the port (internal and external) and its capabilities as the sources for achieving competitive advantage. In this study, we attempt to identify, exploit, and analyze growth opportunity of a Malaysian port from the perspective of the theory. We analyze the port’s resources in terms of values, uniqueness, inimitability, durability, and substitutability. The result is then compared with its rival ports in the region. This study recognizes that the port has successfully identified and exploited its resources for capturing growth opportunity and competing with other ports in the region. We perceive that the port will sustain its growth and competitive advantage as a major port in the region based on its current performance and rivalry circumstances. This study signifies that the higher the level to which resource-based theory of competitive advantage is applied, the higher and longer the growth and competitive advantage will be achieved by the port
Testing of the Ricardian Equivalence proposition: An Empirical Examination for Malaysia (1962-2006)
Get PDFThis paper investigates the effects of debts and budgetary deficit on real variables using structural Vector Error Correction Model (VECM) method with long-run restrictions. We compare our estimates of the impulse responses with those based on levels Vector Auto-Regressive (VAR) with standard recursive order restrictions. The test is conducted on the Malaysian data covering the period of 1962-2006. The empirical results do not support the existence of “Ricardian Equivalence” hypothesis. The effects of budgetary deficit and government spending have a significant influence on private consumption and private investment
Trust in Organizational and Workplace Deviant Behavior The Moderating Effect of Locus of Control
Get PDFThis study seeks to investigate the moderating role of locus of control (LOC) in the relationship between trust in organization (TiO) and workplace deviant behavior (WDB). Three forms of deviant behavior are identified: interpersonal deviance, production deviance, and property deviance. The regression analyses carried out on a sample of 355 employees show mixed results. Trust in organization (TiO) demonstrates a negative relationship with production deviance and property deviance. In contrast, trust in organization (TiO) is positively related to interpersonal deviance. Furthermore, locus of control (LOC) is found to moderate the relationship between trust in organization (TiO) and deviant behaviors. Implications, limitations, and suggestions for future research are discussed
A Study on Customer Satisfaction across Information Search Behavior Typology
Get PDFThis study investigates customer satisfaction based on a typology of consumer search behavior. The findings demonstrate that the type of consumer as defined by whether and how they search for information (passive, rational-active, and relational-dependent) has different level of satisfaction. Rational-active and relational-dependent consumers are found to be the dominant consumer types who actively search for information before purchasing a product and thus perceive a higher level of satisfaction than do passive consumers. The identification of satisfaction within each type of consumer provides a reason for customers to repurchase the same product, or recommend it to other people. As a result, companies will be able to achieve an increase in profitability. Recommendations for companies and future research directions are presented
The Role of Intention to Consume in Creating Autobiographical Memory
Get PDFChildren are a unique and also potential market. They are unique because they usually do not spend their own money but they may have high purchasing power back-up. They are potential because from the number of kids and the amount they spend, they are big and promising. Markets for kids consist of three markets: (1) primary market that targets the children itself, (2) influence market that emphasizes the influence that the children exert on family purchases, and (3) future market that considers the future market for the children. Based on the high potential market for the children, the author identifies the impacts of intention to consume for children on influence power (an effort pursued by kids in order to frequently and successfully influence parents or people surrounding them), impulsive buying (kids’ tendencies to buy spontaneously, immediately, and without any deep consideration), and autobiographical memory (a memory of previous experience that will be stored as a long-term memory). Furthermore, it is necessary to identify the antecedents of autobiographical memory for children. The results show that the intention to consume positively influences the impulsive buying as well as the autobiographical memory. For managerial implications, marketers need to put an emphasis on stimulating the intention to consume in order to create a positive autobiographical memory
Enhancing Foreign Consumer Acceptance The Role of Capabilities of Creating Export-Market Oriented Products in Small and Medium-Sized Enterprises (SMEs)
Get PDFThe main purpose of this paper is to measure the effects of SMEs capabilities on their export performance. This paper offers a model to test the effects of the capabilities of creating export-market oriented products (EMOPs) on increasing SMEs’ export performance. Six hypotheses are developed to analyze causal effects of variables. Using 387 Indonesian SMEs as sample, hypotheses testing highlight the importance of SMEs’ capabilities of building export-market oriented products, which highly follow foreign (export) market standards. Hence, these kinds of products increase foreign consumer acceptance. In general, this paper offers a possible explanation to predict the determinants of how SMEs’ can perform in the export market
Cointegration and Causality Analysis on Developed Asian Markets for Risk Management and Portfolio Selection
Get PDFBoth practitioners and academics demand a linkage model across financial markets, particularly among regional capital markets, for both risk management and portfolio selection purposes. Researchers frequently use cointegration and causality analysis in investigating the dependence or co-movement of three or more stock markets in different countries. However, they mostly conduct causality in mean tests but not causality in variance tests.This study assesses the cointegration and causal relations among seven developed Asian markets, i.e., Tokyo, Hong Kong, Korea, Taiwan, Shanghai, Singapore, and Kuala Lumpur stock exchanges, using more frequent time series data. It employs the recently developed techniques for investigating unit roots, cointegration, time-varying volatility, and causality in variance. For estimating portfolio market risk, this study employs Value-at-Risk with delta normal approach. The results would recommend whether fund managers are able to diversify their portfolio in these developed stock markets either in long run or in short run