Gadjah Mada International Journal of Business
Not a member yet
391 research outputs found
Sort by
The Relationship Between Household Credit and Banking Stability in Malaysia: Panel Evidence
Get PDFThis study investigates the relationship between household credit and banking stability in Malaysia using a sample of 37 commercial banks spanning the period from 2008 to 2015. In analyzing household credit’s influence on the Malaysian banking sector’s stability, household credit was categorized into two components, namely mortgage and consumer credit. The Banking Stability Index (BSI) for each bank is constructed using 15 bank-specific variables and some macro-economic variables. The determinants of the BSI are estimated using a static panel data technique. The fixed-effects regression results showed a statistically significant negative relationship between both forms of household credit (mortgage credit and consumer credit) upon the banking sector’s stability. The finding signals that understanding the link between household credit and the Bank Stability Index is crucial to the policymakers and the banks’ management in closely monitoring household credit, particularly mortgage and consumer credit
Levers of Control and Managerial Performance: The Importance of Belief Systems
Get PDFBelief systems, which are one of the four levers of control, play a vital role in an organization. This study is primarily aimed at examining the effects of belief systems on managerial performance. Since the four levers of control jointly function in management control systems, we extend our study by investigating whether the contingent-fit between strategic risk, strategic uncertainty, and the other three levers of control (i.e., boundary systems, diagnostic control, and interactive control) strengthens the association between belief systems and managerial performance. A survey questionnaire was distributed to the upper-level management of various companies or strategic business units in Indonesia during the fourth quarter of 2017, resulting in 81 respondents. Hypotheses testing were conducted using the OLS regression model. This research found that belief systems are positively associated with managerial performance, indicating that the implementation of effective belief systems leads to higher managerial performance. This study also found that the contingent-fit between strategic risk, strategic uncertainty, and the other three levers of control does not have any effect on how belief systems are positively associated with managerial performance. This finding indicates that although management does not adopt a fit combination between its level of strategic risk and strategic uncertainty and the boundary systems, diagnostic control, and interactive control, it can still achieve good performance as long as strong belief systems are implemented. These findings confirm the critical role of belief systems in the levers of control. Thus, management needs to ensure the establishment of more effective belief systems if the company or business unit wants to produce optimal performance
Enhancing Brand Image in the Digital Era: Evidence from Small and Medium-sized Enterprises (SMEs) in Indonesia
Get PDFThis study aims to validate the essential antecedents of brand image enhancement in the digital era, based on a schematic theory. This study involved 400 respondents from four capital cities in Java, Indonesia, which comprise Surabaya, Jakarta, Bandung, and Yogyakarta, based on a quota sampling technique. The findings indicate that the quality of websites and social media sites may have no direct effects on brand image; any effects are transmitted through a serial mediation of brand awareness and E-WOM. Explicitly, the effect of a website’s quality on brand image is fully mediated, while social media’s quality effect on brand image is partially mediated through brand awareness and E-WOM. This study extends the current literature related to SMEs’ brand image. Also, this study offers practical recommendations for several stakeholders interested in empowering SMEs, including the government, entrepreneurship-based universities, and the SMEs themselves, who are all seeking strategies to enhance brand image while utilizing digital platforms such as social media and websites
INVESTIGATING THE EFFICIENCY OF INDIVIDUAL-EXPLICIT KNOWLEDGE IN THE TELECOMMUNICATION’S SECTOR OF AN EMERGING ECONOMY
Get PDFThis study investigated efficiency in the utilization of the individual-explicit knowledge of a firm. The sample included 42 customer service centers (CSCs) of the four most active Global System for Mobile Communications (GSM) organisations in Lagos State and FCT, Nigeria. The research adopted the input-oriented data envelopment analysis model to determine the extent to which individual-explicit knowledge, as a vital input resource to telecommunications firms, is efficiently utilized by the CSCs to improve the firms’ values. The study revealed that 10 CSCs, representing 23.8 percen of those studied, were technically efficient using the constant returns to scale model. In contrast, the variable returns to scale model showed that 22 CSCs, or 52 percent of them, were technically inefficient. The results suggest that, with less than 50 percent of the total number of CSCs in Nigeria’s telecommunications industry being inefficient, there is a large volume of operational inefficiency, especially concerning the utilization of individual-explicit knowledge. As such, the telecommunications industry could benefit from managerial intervention, especially in building the capacity of the customer desk officers in the CSCs to attend promptly and accurately to customers’ queries. Also, the study established that a viable strategic direction would be that organizations in the telecommunications industry renew their focus on a balanced mix of supervisor-subordinates in each CSC. This study contributes to operations management and the organizational knowledge management literature by showcasing the data envelopment analysis methodology as a legitimate tool for improving understanding of the investigations into the efficiency of individual-explicit knowledge. This study offers practical implications for firm managers about specific activities and units of their firm that contribute the most to the organization, and other specific units/activities that are less productive. The study also provides directions for future studies
A Technological Innovativeness Measurement Framework: A Case Study of Technology Based Indonesian Companies
Get PDFThe measurement of innovation has been developed by various previous studies with a specific focus and goal. However, the existing measurement framework still cannot be applied all that easily by companies in Indonesia for assessing, evaluating, and improving their innovations. This study aims to propose a measurement framework using a multiple case study approach. Cases were selected from companies in the pharmaceutical and information and communications technology (ICT) industries because they contribute substantially to the manufacturing sector and both are vital to Indonesia. The results of this study indicate that the measurement model of innovation consists of technological innovation and the management of technological innovation. There are three phases in the technological innovation process which include the initiation phase (conceiving ideas and acquiring information, then transforming it into knowledge), the development phase (validating knowledge and checking its appropriateness), and the diffusion phase (getting users' feedback and Go & scaling up). Meanwhile, the management of technological innovation consists of having a strategy, the necessary resources, and operation. The analytical generalization of this study is still considered to be limited, so further studies are needed to analyze cases in other industrial sectors. In addition, a quantitative study is required to construct a measuring instrument for the variables proposed in this study
Decomposition of intended use of IPO proceeds: Evidence from Malaysia
No full textThe main objective of the study is to identify what Malaysian IPO issuers indicate as intended use of IPO proceeds and the use that has the highest amount of allocation. In order to achieve the objective of the study, a manual content analysis of 221 IPO prospectuses issued during the period of 2005-2015 were considered. Based on the manual content analysis, the data were analysed using descriptive statistics and analysis of variance (ANOVA). The results indicate that the three major intended uses of IPO proceeds in Malaysian IPO market are growth opportunities (53.90%), debt repayment (29.12%) and working capital (12.87%). However, growth opportunities and debt repayment have greater amount of allocation than working capital over the sample periods. Additionally results show that Malaysian IPO issuers expend more on capital expenditure and expansion rather than research and development in terms of growth opportunities. Further analysis in terms of the frequencies of number of IPO issuers indicate that number of issuers that have a designated amount for working capital (95%) supersede issuers in the growth opportunities group (90%). These results suggest that issuers can consider intended use of IPO proceeds information as a signal mechanism and potential investors can as well consider the information useful before making their investment decisions
Role of Leaders’ Emotional Labor toward Leader’s Job Satisfaction and Emotional Exhaustion: Moderating Role of Psychological Capital
Get PDFEveryone has to manage the emotions during their interaction with others; similar case is with the leaders in organizations. Leaders’ actively and continually regulate their emotional state. The crucial role of emotions in interactional process as well in decision making triggers leaders to be vigilant about their emotional labor strategies. Thus emotional labor has become an emerging construct in leadership domain. This study has collected data from 250 doctors working in private and public hospitals in Gujranwala. Findings demonstrated leaders’ deep acting as well as displaying natural emotions are positively associated with job satisfaction and negatively associated with leaders’ emotional exhaustion. Moreover, surface acting has significant positive relationship with leaders’ emotional exhaustion and negative relationship with leaders’ job satisfaction. Psychological capital significantly moderated the relationship between leaders’ emotional labor strategies, leaders’ job satisfaction and leaders’ emotional exhaustion
The Role of Perceived Usefulness and Perceived Ease-of-Use toward Satisfaction and Trust which Influence Computer Consumers’ Loyalty in China
Get PDFThis study was commenced in order to examine the impact that both perceived usefulness and perceived ease-of-use had toward consumers’ loyalty within the computer industry in China, either directly or indirectly through satisfaction and trust. This current study utilized the survey method; questionnaires were selected as the instrument which would be used to collect all of the data from the respondents. All of the questionnaires were electronically distributed through an online survey site to a total of 400 respondents, who originated from, or were living in, five cities in China. After gathering and assessing all of the collected data, a total of 346 items of data were deemed usable, thus enabling these sets of data to be further analyzed by this study. All of these data were further analyzed using the partial least squares-structural equation modeling (PLS-SEM) method using SmartPLS 3.3.2 software. Based on the results obtained through the data’s analyses, the authors would like to conclude that both perceived usefulness and perceived ease-of-use had a positive and significant impact on customer satisfaction, trust and customer loyalty within China’s computer industry. Furthermore, in this study, both customer satisfaction and trust have been found to positively mediate the impact of perceived usefulness and perceived ease-of-use toward customer loyalty; trust serves as a better mediator compared to satisfaction. Meanwhile, this study contributed to the expansion and the enrichment of the literature in the field of marketing by thoroughly examining the implementation of the technology acceptance model (TAM) in predicting customer loyalty within China’s computer industry
The Role of Moral Reasoning on the Effects of Incentive Schemes and Working Relationships on Whistleblowing: An Audit Experimental Study
Get PDFThis study examines the role of moral reasoning in strengthening the working relationship and incentive schemes on the likelihood of reporting accounting fraud. This study predicts that higher moral reasoning or being exposed to incentive schemes are more likely to cause someone to be a whistleblower. However, individuals with a close working relationship with wrongdoers will exhibit a lower propensity to blow the whistle than those with no close working relationship. Finally, moral reasoning is expected to interact with working relationships and incentive schemes to affect the propensity to blow the whistle. Based on a lab-experiment with 147 participants, this study documents that the simple effect of moral reasoning, the working relationship, or an incentive scheme is (marginally) significant. Similarly, the combination of moral reasoning and the working relationship significantly improves the tendency to blow the whistle. However, the combined effects of moral reasoning vs. the working relationship and moral reasoning vs. the working relationship vs. incentive scheme are not significant. This paper confirms previous studies which found that moral reasoning significantly alters the whistleblowing intention but that the impact of moral reasoning is not robust for incentive schemes and working relationships. Some limitations should be considered, namely the textual scenarios of the experimental design, working experiences, and the omission of personal orientation and the personal cost of reporting
Firm Level Strategy and Value Creation in Small Businesses: The Nigerian Experience
Get PDFThe issue of firm specific strategies and how they affect organizational performance has engendered a lot of discussions in the extant literature. This creates a need to investigate the extent to which firm level strategy influences value creation in small businesses. Premised on the elements of corporate, business and functional level strategies, this study examines the influence of firm strategy on value creation in a developing economy ie. Nigeria. Employing a survey research design, 689 small business owners and managers were surveyed utilizing questionnaire research instruments. Using PLS-SEM, the study reveals that firm strategy is a driver of value creation in small businesses. The study also shows that corporate level strategy and business level strategy are the most significant drivers of value creation. The results of this study highlight critical concerns and guide small businesses through the value creation process to achieve competitiveness. Small firms should be active in the formulation and implementation of strategies that are based on value creation. More attention should be given to business level strategy, as this is the most significant driver of value creation