Journal of Indonesian Economy and Business
Not a member yet
679 research outputs found
Sort by
Impact of Information Quality on Customer Perceived Value, Experience Quality, and Customer Satisfaction from Using GoFood Aplication
No full textIntroduction/Main Objectives: The existence of technological advances in online transportation provides benefits to the community, and especially for the culinary industry; consumers no longer have to go to restaurants to buy food; it can be ordered through the Gojek application. The Gojek application makes it easy for people to buy food online. Various items of information about the restaurant are provided by Gojek’s online transportation service application. Background Problems: The government's appeal regarding COVID-19 requires people to stay at home, to support social distancing. Many activities must now be carried out at home, including eating. Along with the technological developments, people do not need to worry about staying at home because everything can be done from the home, with the GoFood application's support. Novelty: This study aims to determine and prove the effect of information quality on experience quality and customer perceived value, as well as satisfaction, from using the GoFood application in Malang City. This research is an update of the information gathered previously during the pandemic, which can be used as a reference for determining marketing strategies. Research Methods: This type of research is explanatory research through a quantitative approach, by conducting a direct survey of the application’s users, by using an online questionnaire. The research sample consists of 380 respondents. The sampling technique of this study was purposive sampling with the criteria that the Gojek application’s users had made purchases the application at least one times, and were aged 18 years and over, so the perceptions given would be quite clear and independent. Finding/Results: The results show that information quality has a positive and significant effect on experience quality, customer perceived value and customer satisfaction; experience quality has a positive and significant effect on customer perceived value; and customer perceived value has a positive and significant effect on customer satisfaction. Conclusion: This study reveals that the quality of the experience has a positive but insignificant effect on customer satisfaction. The result is a new finding from this study because there are differences in the previous studies' relationships between the variables. This study contributes that the stay-at-home appeal could increase the use of online applications to carry out activities
The Kano Model: How the Pandemic Influences Customer Satisfaction with Digital Wallet Services in Indonesia
No full textIntroduction/Main Objectives: This study aims to evaluate the effectiveness of digital wallets service qualities using Kano Model. Understanding customer needs and satisfaction is crucial in developing products. Background Problems: In the “new normal” era, payment method is predicted to shift to digital wallets. For quality improvement, digital wallet companies should understand customer needs and satisfaction. This study used the Kano model to analyze customer needs and satisfaction in OVO and ShopeePay, two digital wallets widely used for online shopping transactions during COVID19. Novelty: Although studies into the Kano model implementation towards e-commerce exist, there are no specific studies on the model implementation concerning digital wallet payments amid COVID-19. The Kano model is significant in understanding which software products generate high customer satisfaction, which will give a greater influence, as well as necessary attributes for the customers. Research Methods: This study employed the Kano model as one of the most relevant method to measure customer satisfaction by measured of each attribute’s quality. Finding/Results: Most features of OVO and ShopeePay are categorized into the “must be” and “one dimensional” category. The satisfaction map results indicate that most items placed in the “indifferent” quadrant denote the unfulfilled customer expectations. Conclusion: OVO and ShopeePay should improve the items placed in the “indifferent” quadrant first. This study contributes empirically and theoretically by emphasizing the Kano model’s utility for digital wallet services and providing new insights for digital wallet companies and the government on Indonesians’ usage of digital wallets in the “new normal”.
Digital Receipts of Online Transactions in the Reconciliation Process and the Preparation of Financial Reports
No full textIntroduction/Main Objectives: This research seeks to analyze the use of digital receipts and multi-platform e-commerces’ data integration and the influence they have on the process of reconciliation and the preparation of financial reports by micro, small, and medium-sized enterprises (MSMEs). Background Problems: The use of multi-platform online transactions requires the validation and conversion of the data, which can be an issue during the reconciliation process and the preparation of financial reports. The issue of the data’s integration is due to differences in the interfaces used for the multi-platform transactions and the MSMEs internal abilities. Novelty: The integration and treatment of online transactions via multi-platforms should an internal records or database for the MSMEs, the reconciliation process and preparing financial reports. Research Methods: This research uses a quantitative method with partial least squares structural equation modeling (PLS-SEM) analysis and descriptive analysis to reveal the reconciliation process and the conditions under which financial reports are prepared. Finding/Results: The problems of integrating data from various platforms into internal reports causes duplication of the internal reporting and a long reporting process and the chance of errors. The digital receipt is treated as proof of a manual transaction. Records’ duplication is a technical issue that causes delays in the processing time and reconciliation. None of the MSMEs have a machine-to-machine based (automized) reconciliation process. Conclusion: Transaction receipts from all the platforms affect the transactions’ recording, the reconciliation process, and the preparation of financial reports. Digital receipts provide high levels of confidence because of their completeness, accuracy, easiness, efficiency, simplicity, and suitability for use by MSMEs. The adoption of online sales and payments by MSMEs is highly effective, yet this has not been followed-up with the data’s integration into the reconciliation and accounting process for preparing financial reports
The Effect of Google Search Volume Index on Underpriced IPOs and Divergence of Opinions
No full textIntroduction/Main Objectives: The purpose of this paper is to examine the effect of the Google Search Volume Index (GSVI), as the moderating variable, on underpriced IPOs, as the independent variable, on the divergence of opinions, as the dependent variable. Background Problems: A divergence of opinions may arise when an error occurs while estimating the right price due to the unavailability of information or only having limited information. Before a company conducts an IPO, potential investors will look for information about the company and each one may interpret the data differently, which results in disagreements between the investors. The investors’ attention is a disagreement mechanism. Research Methods: This study employs the regression analysis of moderation variables with an absolute difference method (ADM) on a sample of 79 Indonesian companies that conducted an IPO between 2015 and 2019. Finding/Results: This study discovered a negative relationship between the initial return and market-adjusted turnover without an interaction effect in the model. The investors’ attention reduces disagreements about underpriced IPOs in the aftermarket. Conclusion: The result of this study found that investors’ attention reduces disagreements about underpriced IPOs proxied by the initial return, because investors closely monitor other information available on the Internet
The Effect of Incentives and Leadership Styles on Creative Performance
No full textIntroduction/Main Objectives: This study investigates whether the type of incentives offered and leadership styles interact to affect creative performance. Background Problems: Creativity is highly needed by companies to survive in a volatile business environment. Prior research found that management control systems and the leadership style were able to stimulate creativity. It is still unclear which type of incentives and leadership styles are able to stimulate creativity. Therefore, this research proposes a research question, what kind of management control systems and leadership style can improve creative performance? Novelty: This research focuses on comparing monetary and non-monetary incentives, based on competition, to produce the most creative ideas, but empirical studies into the context of creativity are still limited. Furthermore, this study investigates two different leadership styles and it sheds light on the fact that the leadership styles needed in a creative environment differ from those styles used in a non-creative environment. Research Methods: This study was conducted using a 2x2 between subject experimental design with two incentive treatments (tournament and recognition) and two leadership style treatments (directive and empowering). Finding/Results: Consistent with Lourenco (2016), monetary incentives (including tournaments) and non-monetary incentives (recognition) are substitutive. Furthermore, the empowering leadership style leads to a greater creative performance than the directive style does. The results indicate that, in the condition of a tournament incentive, empowering leadership is able to produce a higher creative performance than directive leadership can. Conclusion: There is no significantly difference between the effect of monetary incentives and non-monetary incentives on creative performance. This study’s result is consistent with the situational leadership theory, certain types of leadership are appropriate for certain environmental conditions. For improved creative performance, employees need to be empowered because they need the authority and freedom to develop ideas. This study provides knowledge about the impact of incentives and leadership styles on creative performance. Furthermore, this study provides practical knowledge for companies on how to improve creativity in the work environment by using certain incentives and leadership styles
THE INFLUENCE OF EARLY MARRIAGE ON MONETARY POVERTY IN INDONESIA
No full textIntroduction/Main Objectives: The aim of this study is to analyze the influence of early marriage on monetary poverty in Indonesia. Background Problems: Recent studies on early marriage show that the prevalence of early marriage in Indonesia reached 13.5 percent (Marshan et al., 2013) and that early marriage exacerbates poverty, which causes an increase in the economic burden on the family (Djamilah, 2014), an increase in family harassment, divorce and individuals not continuing with their schooling (Putranti, 2012), and an increase in the chance of poverty by 31 percent in the United States (Dahl, 2010). However, most studies are qualitative studies. Research Methods: This study uses recent data from the Indonesian Family Life Survey (IFLS), year 2014; with the sample being women who get married for the first time at less than 18 years old as a proxy for early marriage; and monthly per capita income as a measurement of monetary poverty. This study employs a binary method for the binary dependent variable which is whether the women experience monetary poverty. Findings/Results: The result shows that the prevalence of early marriage in Indonesia has reached 16.36 percent. Among those, 46.61 percent of the women who marry in their teens (before 18 years old) do not complete the mandated nine years of basic education, and 52.35 percent of the women who were married at an early age do not have a health insurance card. The results of the binary probit model show that early marriage does not affect the possibility of a woman experiencing monetary poverty. It means that early marriage does not influence the monthly per capita income of the women. Conclusion: The results of this study imply that other measurements of poverty may need to be considered. Therefore, the policies that are aimed at reducing early marriage should consider the impact of other factors on poverty
Do the Characteristics of Internal Audits and Compliance Functions Affect Sharia Compliance?
No full textIntroduction: This study aims to explore the relationship between the characteristics of an internal audit (IA) and a compliance function (CF) toward sharia compliance. Background Problems: The Sharia Supervisory Board (SSB), which is supposed to guarantee sharia compliance in Islamic banking, does not function properly. Consequently, the SSB delegates this supervision to the banks’ employees, so the compliance function and internal audit become common practices used to address any issues. Novelty: The majority of previous studies have examined the role/characteristics of the SSB in sharia compliance. On the other hand, few studies have examined the role/characteristics of IA and CF in sharia compliance. Therefore, this study was conducted to examine the characteristics of IA and CF toward sharia compliance. Research Method: The study utilized the seven Islamic banks in Indonesia which published their annual reports for the period from 2011 to 2018 as its research sample. The analysis technique used in this study is a multiple regression analysis. Results: The results indicated that IA and CF competencies had a positive effect toward the sharia compliance of Islamic banks in Indonesia. Conclusion: It is necessary to enhance the competencies of IA and CF staff through improving their professional qualifications, such as through education programs, certification and relevant training on the scope of sharia supervision. Such actions need to be done to support IA and CF staff in performing the comprehensive supervision of sharia compliance
THE EFFICIENCY OF VILLAGE GOVERNMENT SPENDING IN INDONESIA: A META-FRONTIER ANALYSIS
No full textIntroduction: This study aims to measure the efficiency of village government spending and examine the effects of village transfers (Dana Desa) and institutional properties on its efficiency. Background Problems: The village law has endowed extra grants to village governments, which questions if the villages are prepared to adequately handle large increases in funding. Novelty: While previous studies address the misappropriation in spending within the municipal dimension, this study explores the spending efficiency of the autonomous sub-municipal governments and explains the impacts of both lump-sum grants and bureaucracy factors on spending efficiency. Research Methods: This study analyzes the Indonesian 2014 Village Governments’ dataset, using the meta-cost frontier in order to measure village spending efficiency, then it probes the causal impacts of endowed fiscal transfers and bureaucratic factors on the obtained efficiency. Findings/Results: The results suggest that granting direct transfers would exacerbate the spending inefficiencies of autonomous villages. Administrative factors such as a large bureaucracy and a lack of bureaucratic capacity within the body of village governments positively affect spending inefficiencies. Conclusion: The result of this research reflects that there is a need to evaluate the village governance policy to increase spending efficiencies, specifically focusing on the adequacy of village institutions to handle village transfers
PURCHASE OF FAST-FASHION BY YOUNGER CONSUMERS IN INDONESIA: DO WE LIKE IT OR DO WE HAVE TO LIKE IT?
No full textIntroduction/Main Objectives: Fast-fashion has been contributing to growth in the fashion industry globally by shortening its life cycle and transforming the behavior of companies as well as younger consumers. Background Problems: Younger consumers are generally motivated to purchase products, especially those considered to be image-enhancing, not only externally (e.g. subjective norms and behavioral control) but also internally (e.g. intention to look good, positive attitude), yet it is unclear which motivation is the more dominant one. Novelty: This study combines two concepts, namely the theory of planned behavior that explains how internal and external motivation shapes younger consumers’ purchasing behavior, and vanity as the internal motivation that drives them to purchase fast-fashion. Research Methods: This study was conducted through an online survey of young consumers, who are active on social media, for data collection, resulting in 336 valid responses; the data were analyzed with structural equation modeling. Findings/Results: It was found that attitude was the most important determinant of the purchase intention, followed by physical vanity, the subjective norm, and perceived behavioral control. Further, perceived behavioral control also has a significant positive relationship with purchasing behavior. Conclusion: Younger consumers are more affected by their intrinsic motivation to consume fast-fashion compared to the extrinsic motivation from society. This information is useful for marketers to improve their communication strategies by emphasizing individual values that may shape positive attitudes, such as quality and comfort
PUBLIC FINANCIAL MANAGEMENT AND CORRUPTION IN INDONESIA: A PANEL COINTEGRATION AND CAUSALITY ANALYSIS
No full textIntroduction/Main Objectives: This paper aims to examine the relationship between the quality of public financial management and corruption in Indonesia. Background Problems: Despite the impressive progress on the quality of public financial management (PFM) after the financial reforms, Indonesia is still struggling to combat corruption. This raises the question of the effectiveness of the public financial reforms that have been carried out in support of the eradication of corruption. Novelty: This study found empirical evidence of a significant long-run and causal relationship between the quality of public financial management and corruption. Research Methods: This study employs panel cointegration and causality analysis with panel data on the Corruption Perception Index (CPI) and audit opinions for the period from 2006 to 2017. Findings/Results: This study found empirical evidence of the existence of a long-run relationship between the quality of public financial management and corruption and can verify the significant causal relationship between them. In the long run, sound public financial management could significantly encourage clean government. Conclusion: The Government of Indonesia (GoI) should continue its commitment to improve the management of public finances. Meanwhile, the Audit Board of Indonesia (ABI) is expected to strengthen its role to prevent and detect corruption, and to continuously enhance its methods and capacity to improve the execution of its duties and authority