ETIKONOMI
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How Internal Customer Relationship Management and Word of Mouth, Affect Customer Loyalty
No full textOriginality: The competition in the banking industry has necessitated a concerted effort to ensure a sustainable internal and external customer relationship. Studies that focus on the internal customer relationship and internal customers’ word of mouth on external customer loyalty is rareObjective: This study investigates how Employees\u27 Positive Word of mouth (PWoM) mediates the relationship between internal customer relationship management (IntCRM) and external Customer Loyalty (CL) using social exchange and image theoryMethodology: A cross-sectional research design was used, and a sample of 384 customers was drawn from an unknown pool of customers to respond to the CL questionnaire, while 315 bank employees responded to the IntCRM and PWoM Questionnaires. A partial least approach to structural equation modelling technique, via SMART-PLS version 4. was deployed to analyze the hypothesized relationships.Results: Findings on the direct relationship between IntCRM and CL were not supported due to insufficient evidence. While indirect relationships were established through the mechanism role of PWoM, supporting our argument that social exchange between employer and employee stimulates a positive attitude that attracts external customersImplications: The findings suggest the importance of relating discretely with the internal customer, since their perceptions and behaviours can influence the external customers’ attitudes towards the organization. The study also integrates the boundary of Human Resource Management (HRM) practice with Marketing strategy in ensuring customer loyalty in the banking industry. JEL Classification: M5, M31How to Cite:Vem, L. J., Mshembula, J. P., Ochigbo, A. D., Agwom-Panle, R., (2024). How Internal Customer Relationship Management and Word of Mouth Affect Customer Loyalty. Etikonomi, 23(1), 81 – 92. https://doi.org/10.15408/etk.v23i1.26921.
Gender Inequality and Foreign Direct Investment: Empirical Evidence from Asian Countries
No full textIn Asian countries, the relationship between gender inequality and foreign direct investment (FDI) is a sensitive topic. Due to labor market limits and the advantageous effect of women\u27s empowerment, gender inequality is thought to have a detrimental impact on economic development and FDI. This study aims to look into the influence of gender disparity on FDI inflows to Asian countries. Our data includes 43 Asian nations and spans the years 1990 to 2018. We discover that reduced tertiary-level education and health gaps play a decisive role in FDI inflow into Asian countries using the Generalized Method of Moments (GMM). The findings are crucial to devising policies to minimize the gap in gender equality and promote FDI.JEL Classification: J01, J10How to Cite:Paul, S. C., Rupa, I. J., Saha, M., Hossain, M. A., & Sulltana, N. (2023). Gender Equality and Foreign Direct Investment: Empirical Evidence from Asian Countries. Etikonomi, 22(2), 321 – 332. https://doi.org/10.15408/etk.v22i2.27099
Is the COVID-19 Matters for Islamic Banking Performance? A Cross-Countries Analysis
No full textResearch Originality: Considering the originality of the study to have a deeper investigation on the impact of the pandemic on bank’s risk and return.Research Objectives: This study aims to identify the impact of Covid-19 on bank performance and risk levels.Research Methods: This study focuses on Islamic banks in 12 countries with the most developed financial sector during the 4th quarter of 2016 to the 1st quarter of 2022. The data analysis method in this study adopts panel data analysis with a fixed effect model.Empirical Results: The finding of the study shows that the Covid-19 pandemic resulted in a decline in the performance of Islamic banks, as seen from the ratio of return on average asset, return on equity, net profit margin, return on average asset, and return on average equity. However, an interesting finding from this research is that there is no concern about worsening bank risk levels as reflected in the nonperforming financing, Z-Score, and leverage ratio. Meanwhile, the control variables, bank size and inflation rate, also affect the performance and risk of Islamic banks.Implications: The study implies that banking practitioners and financial authority for the banking sector are required to issue some financial strategies in order to achieve and maintain a certain level of financial performance, especially during financial turmoil. JEL Classification: G20, G21, G28 How to Cite:Nugrohowati, R. N. I., & Fakhrunnas, F. (2024). The COVID-19 Matters for Islamic Banking Performance? A Cross-Countries Analysis. Etikonomi, 23(1), 201 – 218. https://doi.org/10.15408/etk.v23i1.31243
Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia
No full textResearch Originality: The second-largest organisation after the UN, with a population of 24.4% worldwide, makes OIC countries a potential market. This paper contributes to the existing literature on trade within them by focusing on crucial aspects of the trade agreement\u27s impact on the halal food industry.Research Objectives: This study examines the influence of a free trade agreement (FTA) on Indonesian halal food exports.Research Methods: Using panel data from 23 countries spanning the period from 2003 to 2019, the paper employs the gravity model to assess the impact of the FTA and other variables on Indonesian halal food exports to OIC countries.Empirical Results: The findings indicate that Indonesian food exports to OIC countries with FTAs experience a notable 68% increase compared to those without such agreements. The study reveals GDP, population size, trade openness, and exchange rate positively affect food exports to OIC countries. However, trading partners\u27 distance and entry time exhibit a negative correlation.Implications: This research holds significance for the Indonesian government as it provides valuable insights for considering the acceleration of trade agreement ratification with OIC countries. JEL Classification: F13, F47, C68How to Cite:Muchtar, M., Hafid, A., Rodoni, A., Amalia, E., & Hosen, M. N. (2024). Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia. Etikonomi, 23(1), 147 – 166. https://doi.org/10.15408/etk.v23i1.32951
Does the Merger of the Indonesian Islamic Bank Matter for Its Social Mission of Economic Empowerment?
No full textResearch Originality: Economic empowerment through financing Micro Small Medium Enterprises (MSMEs) is one dimension of the social mission of sharia banking in Indonesia. The merger action of Bank of Sharia Indonesia (BSI) raises the question of whetherthe performance of economic empowerment has changed.Research Objectives: This research aims to analyse the differences in the BSI’s performance of economic empowerment during preand post-merger periods and analyse the issues and strategies for improving BSI\u27s post-merger economic empowerment performance.Research Methods: It is a research using mixed method combining a quantitative explorative analysis approach using Wilcoxon Test, and a qualitative one using Analytic Network Process.Empirical Results: This research finds that BSI\u27s economic empowerment performance has increased in terms of the quantity but decreased in terms of proportion in the post-merger period. ANP research demonstrates that risk management is a priority issue for the BSI post-merger period. The social mission of economic empowerment indicates several priority issues, namely, the relatively higher rate of profit margin than interest, the inadequate supervision model, the low rate of risk management literacy, and the relatively higher risk of profit loss sharing (PLS)-based financing. The strategy analysis indicates that policy intervention for BSI’s MSMEs financing is a top priority in improving the performance of its economic empowerment.Implications: This research recommends some recommendations for sharia banks’ MSMEs financing equivalent to the one of conventional banks. Economic digitalization as technological means to widen accessibility of economic empowerment and distribution segmentation focusing more on the halal sector.JEL Classification: A13, G21, G34How to Cite:Isman, A. F., & Hidayah, N. (2024). Does the Merger of the Indonesian Islamic Bank Matter for Its Social Mission of Economic Empowerment? Etikonomi, 23(2), 333 – 352. https://doi.org/10.15408/etk.v23i2.39810
Effect of Individual Attributes toward Financial Management Behavior through Locus of Control
No full textOnly a few studies have examined the use of comprehensive variables in determining financial management behavior, though the model involves many other variables. Therefore, this study aimed to examine the locus of control as a mediator variable in the effect of financial attitude and knowledge, income, and spiritual intelligence on financial management behavior. It used a quantitative descriptive method and involved 391 respondents determined through convenience sampling. The results showed that financial attitude and spiritual intelligence significantly impact financial management behavior through locus of control. Whereas in the other two variables, namely financial knowledge, and income, the role of the mediator does not function effectively, so it does not have an indirect effect. These findings have implications for individuals to practice financial readiness in daily financial life. The information obtained also strengthens the role of self-control in financial management.JEL Classification: G40, G41How to Cite:Amri, A., Widyastuti, T., Bahri, S., & Ramdani, Z. (2023). Effect of Inidvidual Attributes toward Financial Management Behavior through Locus of Control. Etikonomi, 22(2), 443 – 456. https://doi.org/10.15408/etk.v22i2.26563
Adaptation of Islamic Finance to the Performance of MSMEs in the Halal Food Industry
No full textResearch Originality: The findings of this research will contribute to the Islamic finance literature by answering the research gap between the relationship between MSME adaptation of Islamic finance implementation and MSME performance and providing practitionerinsight for policymakers and MSMEs in the halal food industry.Research Objectives: This study aims to determine the adaptation of Islamic finance to the performance of MSMEs in the halal food industry. Research Methods: The method used a quantitative and explanatory approach. The number of samples in this study was 212 MSME units taken by simple random sampling (SRS). The number of samples in this study is based on the needs of the analytical tools used. The analysis technique used is the structural equation model (SEM) approach with the help of the LISREL program.Empirical Results: The main findings show that halal industry MSMEs that adapt to Sharia finance tend to have a higher level of innovation than those that do not. Data shows that financing by Sharia principles enables MSMEs to allocate their resources more effectively, strengthening their ability to innovate in products and services. Innovations carried out by halal industry MSMEs that adopt a Sharia financial approach are more consistent with Sharia values, which leads to increased acceptance by Muslim consumers.Implications: MSME halal industry managers may consider adopting Islamic finance strategies as part of their business plans. This adoption includes using Sharia financing, investing according to Sharia principles, and managing their finances according to Sharia values. Managers also need to actively develop networks and collaborate with other stakeholders, including Sharia financial institutions, educational institutions, and other companies in the halal industry ecosystem.JEL Classification: D14, G21, L25How to Cite:Gunarto, M., & Yanti, P. (2024). Adaptation of Islamic Finance to the Performance of MSMEs in the Halal Food Industry. Etikonomi, 23(2), 369 – xx. https://doi.org/10.15408/etk.v23i2.34271
Do Digital Competitiveness and Government Efficiency Affect Macroeconomic? An Evidence From Asia-Pacific Countries
No full textResearch Originality: This research divided the dimensions of digital competitiveness into knowledge, digital policy, and IT integration. The digital competitiveness variable was estimated simultaneously with government efficiency in influencing macroeconomic performance in Asia Pacific countries. This research proved the important role of responsive digital policies and government efficiency in driving the macroeconomy.Research Objectives: This research aimed to determine the effect of digital competitiveness and government efficiency on macroeconomic performance.Research Methods: Data was sourced from the International Institute for Management Development (IMD) publication from 2019 to 2022 for 13 Asia Pacific countries. The digital competitiveness considered in this research is knowledge, digital policy, and IT integration variables. Data was analyzed and processed using panel data regression.Empirical Results: The result showed that digital policy variables reduced macroeconomic performance, while government efficiency positively affected macroeconomic performance. Furthermore, the digital knowledge and IT integration variables did not significantly affect macroeconomic performance.Implications: This research has significant implications for the development of responsive digital policies that promote macroeconomic performance. It also underscores the importance of governance by the government in controlling the high-cost economy to encourage productivity and macroeconomic performance. These implications provide valuable insights for policymakers and professionals in the field of economics and digital policy.JEL Classification: E60, H11, O39How to Cite:Ernawati, E., Natsir, M., & Asri, M. (2024). Do Digital Competitiveness and Government Efficiency Affect Macroeconomy? An Evidence from Asia Pacific Countries. Etikonomi, 23(2), 481-496. htttps://doi.org/10.15408/etk.v23i2.34339
Should Islamic Window be converted into a Full-Fledge Islamic Bank? A case study in Indonesia
No full textResearch Originality: This research provides fresh perspectives on the future landscape of Islamic banking, particularly concerning the Islamic window. The paper stands out for its originality as it undertakes an empirical study utilizing a mixed method. This study is also expected to answer the research gap between literature studies, empirical studies, and implemented policies. Additionally, it is driven by the objective of contributing to the existing literature on Islamic finance.Research Objectives: This study dives into whether converting Islamic Business Units (UUS) into full-fledged Islamic Banks (BUS) leads to performance enhancement.Research Methods: There are two types of data analysis methods, namely qualitative and quantitative. The qualitative analysis method comes from a collection of literature reviews and institutional opinions from Islamic banking experts in the world. This study employs a multi-pronged quantitative approach to investigate the performance and consumer perception of Islamic banking services with an emphasis on UUS and BUS.Empirical Result: The results indicate that UUS and BUS structures adhere to Sharia principles and achieve commendable performance. However, analysis of financial reports across many countries, including Indonesia, shows that UUS\u27s financial performance is generally better than BUS. The research further emphasizes that internal factors like capital adequacy, asset quality, and management capabilities, rather than the institutional structure itself, hold greater sway in driving performance improvement. Forced conversion of UUS could even hinder overall progress. Implications: Beyond financial considerations, the study explores consumer behavior through surveys with educated individuals. The results indicate that their choice between BUS and UUS products is guided by practical factors such as financial returns, costs, and service reliability offered by each structure. JEL Classification: G21, G28 How to Cite:Abimanyu, A., & At Tamimi, R. A. (2024). Should Islamic Window be Converted into a Full-Fledge Islamic Bank? A Case Study in Indonesia. Etikonomi, 23(1), 183 – 200. https://doi.org/10.15408/etk.v23i1.35082
Profitability of Manufacturing Firms in Indonesia Amidst the Pandemic
No full textResearch Originality: In the realm of manufacturing firms, the pursuit of profitability remains a foremost concern. This paper distinguishes itself through its innovative approach, integrating key factors such as liquidity, leverage, activity, and the influence of the COVID-19 pandemic. Utilizing panel regression analysis, the study scrutinizes Indonesia\u27s total manufacturing firms to shed light on this critical issue.Research Objectives: This study primarily aims to evaluate the profitability of manufacturing firms in Indonesia. It specifically delves into the impact of liquidity, leverage, and activity measures on profitability, while also examining how the COVID-19 pandemic factors into this equation.Research Methods: Employing a quantitative approach, this study utilizes panel data gathered from 134 manufacturing firms in Indonesia spanning from 2018 to 2023. The analysis relies on a panel regression model to draw insights.Empirical Results: The analysis yields significant findings. Notably, leverage demonstrates a negative and statistically significant influence on manufacturing firms\u27 profitability, whereas firm activity shows a positive and statistically significant effect. Conversely, liquidity and the COVID-19 pandemic appear to have negligible impacts on profitability.Implications: These findings hold critical implications for policymakers and practitioners within Indonesia\u27s manufacturing sector. To bolster the profitability of manufacturing firms, policymakers should prioritize reducing leverage and fostering increased company activity, possibly through amplified sales efforts.JEL Classification: G32, G33, G01, L60How to Cite:Khalifaturofi’ah, S. O., & Setiawan, R. (2024). Profitability of Manufacturing Firms in Indonesia Amidst the Pandemic. Etikonomi, 23(2), 497-510. htttps://doi.org/10.15408/etk.v23i2.35169