Journal of Indonesian Economy and Business
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CONSUMER PREFERENCES FOR INDONESIAN FOOD
No full textIntroduction/Main Objectives: Food industries have been growing fast in Indonesia for recent decade, so it is necessary for food companies to understand Indonesian consumer attitudes and examine how Indonesian consumption behavior may change in consuming food. Background Problems: The development of society, with the concept of modernization at this time, encourages the interest people have for consuming food from other countries, so that Indonesian food is increasingly being displaced in its own country. Novelty: The results of this study provide a method for evaluating the combination of different attributes for food combinations, which can be used as a reference for selling food. Research Methods: This research used a conjoint analysis to explore consumers’ preferences for different cuisines, especially Indonesian cuisine. Findings/Results: Compared with previous studies, the origin of food is an important food attribute, whilst “western food” is the preferred type of food. Conclusion: Western food being the most preferred type of food, followed by Indonesian food, a crispy and salty taste, fresh food is preferred, as is food at a cheap price. Price was the most important attribute
DO MICRO SMALL MEDIUM ENTERPRISES (MSMES) NEED MODERN MANAGEMENT ACCOUNTING TECHNIQUES? AN INDONESIAN PERSPECTIVE
No full textIntroduction/Main Objectives: Management accounting practices (MAPs) have long been recognized as a subject of interest with regards to business performance, including for Micro Small Medium Enterprises (MSMEs). Despite the significant role of this sector in emerging countries, there is a dearth of research into the practical implementation of MAPs. Background Problems: The purpose of this paper is to gain a general understanding of whether modern and traditional MAPs, in the MSMEs’ context, are on an equal footing in terms of usage and perceived importance. We adopt the IFAC’s management accounting (MA) evolution model to structure this research. Novelty: This study contributes by tracing the adoption of MAPs as an indicator of the MSMEs’ need for MA information. Within an academic and regulatory framework, this study is believed to provide an important contribution for academicians, practitioners and the government. Research Methods: We conducted an attended survey of 34 MSMEs around Yogyakarta and used the simple yet meaningful statistical technique of descriptive analytics. Findings/Results: The findings indicate that traditional MAPs (the ones in IFAC stages 1 and 2) were found to be marginally better implemented than the modern MAPs (IFAC stages 3 and 4). We compute the difference of two proxies: extent of implementation (EI) and perceived importance (PI) as an indicator of the gap in their operationalization. We found that as the IFAC stage moves along to the modern MAPs spectrum, the average difference between EI-PI also moves up accordingly. Conclusion: Hence, despite the better implementation of traditional MAPs among the MSMEs, it does not eliminate the opportunity for the increasing usage of modern MAPs in the future
Indonesian Demand for Online Shopping: Revisited
No full textIntroduction/Main Objectives: This study aims to analyze the factors that influence online shopping. Data are aggregated at the national, island, and regional levels. The regions are categorized based on their level of demand for online shopping. Background Problems: The rapid development of information and communications technology contributes to the transformation of the digital economy. By using 281,185 internet users from the National Households Survey (Survei Sosial Ekonomi-Susenas) 2017 data, we found that the percentage of online shopping in Indonesia is 7.59%. Online shopping is concentrated on the island of Java, especially in the Greater Jakarta area (Jakarta, Bogor, Depok, Tangerang, and Bekasi). Novelty: This study analyzes online shopping from the point of view of economic development studies, especially related to the development of information technology and the digital economy. Research Methods: We used a binary logistic regression analysis to assess the effect of demographic, socio-economic, and spatial factors on an individual’s decision to shop online. Finding/Results: The results indicate that individuals who have a greater tendency to shop online are those who have a high income, are women, can access the internet using mobile phones, they are the spouses of the heads of households, are 25 to30 years old, live in urban areas, have graduated from college (especially with a diploma), and work in the tertiary sector. The higher that the share of online shopping is in an area, the more intense the influence of individual characteristics will be on the tendency to shop online, according to the demographic and socio-economic factors, while the spatial factors will fade away. Conclusion: Income, gender, internet access, and the shopper’s position in the household are factors that significantly influence individuals to shop online
Does Institutional Ownership and Bank Monitoring Affect Agency Conflicts? Evidence from an Emerging Market
No full textIntroduction/Main Objectives: This study examines the effect of institutional ownership, proxied by government and private ownership, and bank monitoring on agency conflicts. Background Problems: The previous literature focused on agency conflicts, particularly those between managers and shareholders in developed markets, with much less evidence being presented from emerging ones. Novelty: We consider the role of creditors (the banks) in mitigating agency conflicts, and the managers’ irresponsible behavior, which in previous studies has been largely under-elaborated. Research Methods: Using 1,525 observations of 305 non-financial companies that were listed in the 2011-2015 period, we employ the generalized least squares method to deal with potential econometric concern such as autocorrelation and heteroscedasticity. Finding/Results: We find that institutional ownership and bank monitoring, proxied by the number of banks and the share of their loans, are negatively related to agency conflicts. Conclusion: Banks and institutional ownership lead to lower agency conflicts. However, one should mitigate free-rider problems emanated from these relationships
A Charismatic Relationship: How a Kyai’s Charismatic Leadership and Society’s Compliance are Constructed?
No full textMain Objectives: This study emphasizes the authority of a Kyai lies in the integration between the charismatic leadership and society’s compliance. The background problem of this study is whether charisma is fundamentally a result of the attributes of a leader, the situational circumstance, or a process of interaction between the leader and society? The novelty of this research is the concept of how a leader becomes charismatic and subordinates other people’s perceptions & compliance. The research method for this study is a quantitative method, with two variables and it is strengthened by a qualitative method with one variable. Qualitatively, the data about the charisma of leaders are collected through interviews, and it was then analyzed by screening, display, and interpretation. Quantitatively, the data about perception & the impact of a leader’s charisma are collected by use of a questionnaire, after the data passed the tests of validity, normality, linearity, percentage formula, average formula and then analyzed as well as hypothesis testing by a simple regression formula to determine the level of influence. The findings of this study are: (1) the seven efforts of a charismatic leader namely glory, blessings, confidence, obedience to the God, efficacy, having influence, and the ability to predict the future, (2) the society’s perception of the charisma of leaders is average and tends to be poor and (3) the impact of the leader’s charisma on society is only 19.9%, which shows it has a poor influence. Conclusion: The data agreed with the meaning of the term charismatic relationship. The implication of the results of this study is that society’s compliance with its leaders’ wishes is very dependent on the perception or relationship between them
MANAGING BRANDS’ POPULARITY ON FACEBOOK: POST TIME, CONTENT, AND BRAND COMMUNICATION STRATEGIES
No full textIntroduction: A brand’s popularity on social media affects its customers’ purchasing intention and purchasing decision. Background Problem: A review of the literature shows that a brand’s popularity on social media has a secure connection with its content and the time information about it is posted; allegedly the brand’s interactions are also influential. Indicators of its popularity include the number of likes, shares, comments, and views for it. Novelty: Previous brand popularity studies were limited to the features of likes, comments, and shares as a function of the content and time, and OLS was commonly used. However, this study adds the views feature and the function of the administrator’s comments to complete the gap. GLS is used as the method of analysis. Research Method: Data are collected through the observation of six top international food and beverage products’ categories on the Facebook fan page. The data were analyzed using the Seemingly Unrelated Regression (SUR), and the Mann-Whitney and Kruskal-Wallis methods. Findings: The study’s findings shows that video and the day to post have a significant influence and increase the number of likes, shares, comments, and views. A caption only shows significance to increase the number of likes and shares. The hour has a significant effect on comments and shares. The time of posting indicates that posting on weekdays and during busy periods is more effective for increasing the popularity of brands. The administrator’s comments significantly influence the increase in the number of comments and views, while two-way communication is more significant for increasing a brand’s popularity. Conclusion: These findings provide a deeper insight to help managers to improve their brand’s popularity on social media by exploring how brands manage their fan pages
TARIFF ELIMINATION UNDER THE TRANS-PACIFIC PARTNERSHIP AND ITS IMPACT ON INDONESIA’S TRADE BALANCE
No full textIntroduction: Indonesia has signed, and is in the process of signing, many bilateral and regional Free Trade Agreements (FTAs). Whether these trade agreements will benefit Indonesia on the economic front or not is still a matter for discussion. Background Problem: Signing TPP, raises many questions as to how this would affect the countries in Asian regions, including Indonesia. Novelty: Considering the criticism of CGE (Computer General Equilibrium) model, this paper uses the SMART simulation model, based on a partial equilibrium approach, to estimate the aggregate and commodity-level gains and losses for Indonesia with its partner countries during the post-tariff elimination period. Research Method: This study uses the World Bank’s World Integrated Trade Solution (WITS) Database. This database contains trade data for all the countries under a different nomenclature viz. at the two-digit, four-digit, and six-digit level. We use the HS-classified nomenclature at the six-digit level in order to estimate the impact of the removal of tariffs on Indonesia’s trade, i.e. both exports and imports. Findings: The finding reveals that if Indonesia does not take part in the Trans-Pacific Partnership Agreement, it will still have a trade surplus of 19 million. Joining the bloc would increase the imports from Japan, followed by the United States and Australia as against an increase in exports to the United States, followed by Malaysia and Vietnam. The post Trans-Pacific Partnership period will have many implications for Indonesia, it may face difficulties exporting to the member countries, even with an existing trade agreement, while in the long run the Trans-Pacific Partnership bloc could limit Indonesia’s trade prospects with these Pacific Rim countries and it may limit Indonesia influencing WTO outcomes. Conclusion: Trade agreements seem to have benefited Indonesia’s economy and its people in many ways over the years, even though it has an important cost for some people
THE FACTORS WHICH INFLUENCE THE RELATIONSHIP BETWEEN A NETWORK’S SYNERGIZING CAPABILITY AND THE INCREASE IN A SALESPERSON’S PERFORMANCE
No full textIntroduction: This research aims to explore the concept of customer networks in the context of sales. A research model is proposed to explain how a salesperson’s performance is increased by synergizing the network. Background Problems: There are inconsistent research findings on the relationship between adaptive selling and salespeople’s performance. The proposed research question is whether adaptive selling has an effect on a salesperson’s performance through his/her customer networking capability or not? Novelty: the novelty of this research is the analysis of the capabilities of customer networking, based on information sharing, promotion sharing, and knowledge sharing. Research Methods: This research involved 266 salespeople from the soft drinks’ industry. The hypotheses were tested using structural equation modeling. Findings: The results of the study show that adaptive selling is able to increase a salesperson’s performance through their customer networking capability. The customer’s order quality, adaptive selling and communication quality have significant positive effects on the capability of the customer network. Furthermore, the customer’s order quality, retention, and communication quality have significant positive impacts on the salesperson’s performance. The variable which has the most influence on the increase in the salesperson’s performance is communication quality. Conclusion: This study concludes that the ability of the customer networking capability to link between adaptive selling and the salesperson’s performance is real. Additionally, the quality of the customer’s orders, retention and the quality of their communications give significant positive effects to a salesperson’s performance. Therefore, companies should pay special attention to the salespeople who perform best, particularly those who can broaden new networking customers
TEENS AND THE HANG OUT LIFESTYLE: WHAT DRIVES TEENS SATISFACTION AND ATTITUDINAL LOYALTY?
No full textIntroduction: Satisfying teens consumer group is critical to retain a larger market share in the future. Creating teens’ experience and value seems to be fundamental for enhancing both satisfaction and loyalty in cafes industry. Background Problem: This study examines the impact of customers’ experiences and the hedonic quality on teenagers’ satisfaction and attitudinal loyalty. Novelty: This study provides a new and comprehensive model of customer experience by adding hedonic value as a subjective experience to evaluate satisfaction and attitudinal loyalty. Research Method: Questionnaires were used to collect the data. Purposive sampling was chosen to select the respondents. Two hundred Indonesian teens participated in this study. In order to achieve the aim of this study, SPSS 23 and Partial Least Square (PLS) 3 were used. Seven out of ten hypotheses proposed in the study were supported. Findings: Three dimensions of customer experience (staff interaction, customer interaction and physical environment) have a significant effect on customers’ satisfaction, but only one dimension (physical environment) has an effect on customers’ attitudinal loyalty. An additional finding of this research is that all the hedonic quality dimensions (except hedonic emotional) have an effect on customers’ satisfaction. Lastly, customers’ satisfaction has a significant effect toward customers’ attitudinal loyalty. Conclusion: The findings suggested that a cafe’s manager or owner should pay attention to their customers’ experiences and their hedonic quality, in order to create customer satisfaction and enhance their attitudinal loyalty toward the cafe
THE ONLINE SHOPPING HABITS AND E-LOYALTY OF GEN Z AS NATIVES IN THE DIGITAL ERA
No full textIntroduction: Generation Z (Gen Z) refers to the most application-friendly and website-savvy generation engaging with the Internet for most of its daily activities. The number of Gen Z members has been growing and is projected to become the largest market segment by 2020. In the future, Gen Z will affect business strategies; compounded by the presence of a fourth industrial revolution (Industry 4.0), which will encourage companies to change their business models. One of the changes is a new paradigm shift by companies from the traditional business model to an internet-based business model (e-business model/e-commerce), such as online shops. Online shops have escalated at a rapid pace and have changed people’s buying habits, especially for Gen Z. Gen Z seems to be shopping online more than ever. Targeting them is the best strategy to enhance their lifetime loyalty. Background Problem: This study aims to examine the relationship of e-service quality, online customer value, e-satisfaction and e-loyalty. Research Method: Two hundred and forty-one Gen Z respondents were involved in this study. PLS 3, Sobel and SPSS 23 were employed to analyze the data. Five hypotheses were proposed. Findings: The findings indicated that e-service quality became the expected predictor of online customer value and satisfaction. In addition, the results confirm the mediating role of online customer value between e-service quality and e-satisfaction, as well as clarifying the relationship of online customer value and e-satisfaction. Finally, the effect of e-satisfaction on e-loyalty has been proven in this study. Conclusion: Upon figuring out the relevant issue, online shops are able to re-consider their business models to adopt the Industry 4.0 revolution, to strengthen their capacity in tight competition. In order to target Gen Z, who mostly do their purchasing via the Internet, online shops must provide high quality websites and create values which convey economic, social and functional values. These two key factors play significant roles in attaining Gen Z’s e-satisfaction, thus securing Gen Z’s e-loyalty.