bluuebunny/crossref_metadata_2025 huggingface dataset:
The Effect of IFRS Convergence on Earnings Quality: Empirical Evidence from Indonesia
Authors: Sutrisno Paulina , Djashan Indra Arifin
Published: June 2021

Objective - The purpose of this research is to examine the impact of the International Financial Reporting Standard (IFRS) convergence in Indonesia on earnings quality.

Methodology/Technique - Earnings quality is measured on both accrual earnings management and real earnings management. Indonesia began convergence IFRS in 2012. IFRS is considered capable of improving comparability, transparency, and earnings information, which is expected to ultimately improve earnings quality. The sample in this research uses manufacturing firms listed on the Indonesian Stock Exchange that were suspected to avoid loss during the observation period. The data consist of 45 companies examined between 2008 and 2015.

Results - This study uses statistical methods and multiple regression linear to analyse the data. The research results show that IFRS convergence in Indonesia has had a negative impact on accrual earnings management and no impact on real earnings management.

Novelty - The evidence shows that IFRS convergence in Indonesia has the ability to improve earnings quality related to a decrease in accrual earnings management but not real earnings management.

Type of Paper: Empirical

Keywords: IFRS; Discretionary Accrual; Abnormal Cash Flow Operation; Abnormal Production; Abnormal Discretionary Expenditure.

JEL Classification: M40, M41, M49
E-Government as an Anti-Corruption Tool: Experience from Indonesia
Authors: Setyaningrum Dyah
Published: June 2021

Objective - Transparency is promoted as one of the most important measures against corruption. E-government provides greater access to information that can subsequently increase transparency, accountability, and be used as an effective anti-corruption tool. The purpose of this study is to examine the relationship between e-government and corruption.

Methodology/Technique - To gain more insight, we also investigate the effect of e-procurement as one of the e-government initiatives for tackling corruption. We use observations from local government (districts and cities) in Indonesia during the period 2012–2015.

Findings - The results show that e-government implementation is associated with lower corruption. E-government reduces corruption by removing discretion, thereby curbing the opportunities for arbitrary action that often result in corruption.

Novelty - Moreover, the results also show that adopting e-procurement increases transparency and accountability through increased competition among bidders and enables real-time access to information, which ultimately reduces corruption in public procurement.

Type of Paper: Empirical

Keywords: accountability, corruption, e-government, e-procurement, transparency

JEL Classification: M10, M48.
The Influence of Good University Governance on Human Capital
Authors: Hartati Noorina , Hadiwidjaja Rini Dwiyani , Muktiyanto Ali
Published: June 2021

Objective - This paper examines the influence of Good University Governance ('GUG') on Human Capital ('HC') and Quality, as well as the influence of CUG on HC through the use of Quality .

Methodology/Technique - This research uses an explanatory survey design. The data was collected by visiting state and private universities in Indonesia that offer an S1 Accounting Study Program. Twenty cities were covered and responses to 70 questionnaires were processed. The influence of GUG on HC was analysed using a Structural Equation Model (SEM).

Findings - The study found that GUG has a significant positive effect on Quality and GUG has a significant positive effect on HC. However, the influence of Quality on HC and the indirect influence of GUG on HC through Quality were negatively significant. Overall, the total influence of GUG on HC was positively significant.

Novelty - This study suggests that GUG improves HC and the Quality of services in Indonesian universities. However, improved quality of HC seems to lead to a deterioration in the quality of university services. Further, quality of services fails to mediate the influence of GUG on HC.

Type of Paper: Empirical

Keywords: Good University Governance; Human Capital; Quality; S1 Accounting Study Program; Universities; Indonesia.

JEL Classification: O15, I23, J24.
Internal and External Determinants of Audit Delay: Evidence from Indonesian Manufacturing Companies
Authors: Maggy Maggy , Diana Patricia
Published: June 2021

Objective - This study aims to examine and explain the relationship between a company's internal factors such as profitability, solvency and audit committee, and external factors including complexity and size of public accounting firms, with audit delay. Methodology/Technique - The importance of financial information is, in part, due to its utility for assessment of company performance. Hence, financial information should be produced and reported as quickly as possible each year. Findings - This study finds that manufacturing companies with high debt levels and low profitability experience longer audit delay. Moreover, the results in this study show that debt level is the most influential and significant factor with a positive relationship to audit delay. Novelty - This study shows that profitability, the number of members on an audit committees and public accounting firm (KAP) size all have an insignificant negative relationship with audit delay. Further, complexity has an insignificant positive relationship with audit delay. Type of Paper: Empirical Keywords: Profitability; Debt; Complexity; Audit Committees; Audit Delays. JEL Classification: M42, M41.
Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia
Authors: Eforis Chermian
Published: June 2021

Objective - The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia's SOEs and the influence of state ownership on company performance.

Methodology/Technique - This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015.

Findings - The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets.

Novelty - One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia.

Type of Paper: Empirical

Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; Return On Assets; Indonesia.

JEL Classification: G32, H70, G34.
An Analysis of the Implementation of PSAK 69 at PT Perkebunan Nusantara V (Persero)
Authors: Yefni Yefni , Arifulsyah Hamdani , Nurulita Suci
Published: June 2021

Objective - This study aims to identify the impact of the application of the PSAK 69 in plantation companies in Riau, particularly in PT Perkebunan Nusantara V (Persero), and the impact of PSAK 69 to the profit gained by PT Perkebunan Nusantara V (Persero).

Methodology/Technique - This research is a qualitative descriptive research. The approach used in this research is a case study. The object of this research is PT Perkebunan Nusantara V (Persero). PT Perkebunan Nusantara V (Persero) is a company engaged in the field of palm oil plantations. This study uses the data from PT Perkebunan Nusantara V (Persero)'s annual report in 2016 and the data is collected using interviews and documentation techniques.

Findings - The results of this study indicate that PT Perkebunan Nusantara V (Persero) has not implemented the PSAK 69 in its agricultural business. In addition, there are differences in the measurement and recording of the biological assets applied by PT Perkebunan Nusantara V (Persero) under the PSAK 69 (IAS 41). PT Perkebunan Nusantara V (Persero) measures and records its biological assets based on historical cost, so there is no gain or loss in the current period. In addition, the profit gained by PTPN V for the year ending on 31 December 2016 is too low.

Novelty - The results of this study are expected to be used as a reference for other plantation companies in implementing the PSAK 69. In addition, the results of this study are also useful to regulating agencies in developing rules and policies in the field of accounting, including in re-evaluating the PSAK 69.

Type of Paper: Review

Keywords: PSAK 69; Agricultural Products; Biological Assets; Profit.

JEL Classification: G32, M41.
Transformation of Accountability Values in Local Cultures: An Acculturative Ethnography Study on Catholic Churches in Tana Toraja
Authors: Randa Fransiskus
Published: June 2021

Objective - This research aims to transform local values of accountability to religious organizations.

Methodology/Technique - The research uses a deconstruction approach with acculturative critical ethnography. The research was conducted at the Catholic Church in Tana Toraja, South of Sulawesi Indonesia, using a in depth interview, observation, and artefact interpretation to determine accountability values.

Findings - The results show identify three main dimensions of accountability; spiritual, leadership and finance. These dimensions are aligned with accountability in tongkonan values. A transformation is done by considering the Church as Christ's tongkonan and the spiritual accountability dimension binds all family members when participating in Church rituals. With respect to the leadership dimension, the leadership value of Panglaa Tondok encourage all Church members to be loyal to their leader and creates a concept of collegial collective leadership.

Novelty - With respect to the financial dimension, the value of "kombongan" indicates that financial resources must be formulated together in a community of stakeholders. The transformation results of this research can be used to increase the accountability of church organizations and encourage the adoption of local cultural practices in the management of church organizations.

Type of Paper: Empirical

Keywords: Accountability; Acculturate; Reconstruction; Church and Tongkonan; Tana Toraja.

JEL Classification: M4, M41
Gender-Diversity, Financial Performance and Cash Holding in Family Firms
Authors: Alrasidi, ST Salehudin Eka Saputra , Kristanti, S. E. M. Si Farida Titik
Published: June 2021

Objective - This research aims to determine the presence of partial effects on gender-diversity and financial performance variables on the cash holding of family firms on the Indonesian Stock Exchange included in the Kompas100 index.

Methodology/Technique - The approach used in this research was causal associative testing using a panel data regression with a General Least Square (GLS) method using six independent variables: size, growth opportunity, dividend, return on assets, leverage, and gender diversity. Meanwhile, cash holding acts as a dependent variable.

Findings - The results of the research show that the independent variables of leverage have significantly negative relationships on cash holding on the Kompas100 index of Indonesia in the period of 2013-2016. Contrary to this, return on asset has a significantly positive relationship with cash holding.

Novelty - Gender diversity is an important variable of boardroom; this paper reveals the impact of gender diversity and performance on family holding firms. These results can be used to assess the performance and fundamentals of a firm.

Type of Paper Empirical

Keywords: Cash Holding; Dividend; Gender Diversity; Growth Opportunity; Leverage; Return on Assets; Size.

JEL Classification: M40, M41, M49.
Capital Policy on Firm's Profitability: A Case of the Thai Agro and Food Industry
Authors: WICHITSATHIAN Sareeya
Published: June 2021

Objective - The objectives of this research include: (1) to identify working capital investment policy and working capital financing policy, (2) to study the effect of working capital investment policy on profitability, and (3) to study the effect of working capital financing policy on profitability.

Methodology/Technique - 41 firms in the agro-food industry listed on the Stock Exchange of Thailand are examined in this study. Secondary data was collected and analyzed within a 5-year period between 2013-2017.

Findings - The results show that the most frequently employed working capital investment policy is the aggressive approach (46.30%), and the most frequently employed financial policy is the moderate approach (82.90%). According to the inferential statistics, it is concluded that: (1) profitability is significantly affected by the choice of working capital investment policy and a moderate investment policy results in the greatest profitability, and (2) profitability is not affected by the choice of working capital financing policy.

Novelty - As a result, firms should focus on the selection of a moderate working capital investment policy when seeking to maximize profits. On the other hand, any type of working capital financing policy (aggressive, conservative, or moderate approach) is appropriate.

Type of Paper Empirical

Keywords: Working Capital Policy; Profitability; Agro and Food Industry; Thailand.

JEL Classification: M10, M40, M41.
The Determinants of Islamic Social Reporting Disclosure in Indonesia
Authors: Indayani Tri Nofik , Sukmaningrum Puji Sucia , Hendratmi Achsania , Rusmita Sylva Alif
Published: June 2021

Objective - The purpose of this research is to identify the relationship between corporate performance, Good Corporate Governance (GCG), and corporate characteristics on Islamic Social Reporting disclosure in Indonesia.

Methodology/Technique - A quantitative approach is applied in this research. The sample of this study consists of companies that were consistently listed on the Jakarta Islamic Index (JII) from 2012 to 2017. A purposive sampling method with certain criteria was employed to produce a total of 72 samplings. Partial Least Square (PLS) was also used to analyse the data.

Findings - The results of this research indicate that corporate performance has a positive and significant effect on ISR disclosure, GCG has a positive and significant effect on ISR disclosure, and corporate characteristics have a negative and insignificant effect on ISR disclosure.

Novelty - Islamic Social Reporting is the answer and solution to the needs of the interested parties concerned with the company's financial statements. ISR becomes a very important thing for the reputation and performance of Islamic financial institutions. Islamic financial institutions that succeed in revealing their ISR value will be perceived as a reliable entity by the Muslim community in channelling their fund.

Type of Paper Empirical

Keywords: Islamic Social Reporting; Corporate Performance; Good Corporate Governance; Corporate Characteristics.

JEL Classification: M40, M41, M49.

DOI: 10.35609/afr.2019.4.1(2)
The Substitution Role of Audit Committee Effectiveness and Audit Quality in Explaining Audit Report Lag
Authors: Husaini Husaini , Saiful Saiful , Ilyas Fitrawati
Published: June 2021

Objective - This study aims to examine the relationship between audit committee effectiveness on Audit Report Lag (ARL), and the moderating effect of audit quality on the relationship between audit committee effectiveness and ARL. Methodology/Technique - 109 non-ﬁnancial Indonesian listed companies are examined from 2012 to 2016. The data is analysed using multivariate regression analysis. Findings - The results show that audit committee effectiveness negatively affects ARL. This indicates that an effective audit committee can accelerate the delivery of audit reports. The results on the interaction between audit committee effectiveness and audit quality also negatively affects ARL. These results indicate that audit quality strengthens the influence of audit committees on the timeliness of financial reporting by reducing audit report lag. Novelty - The results show that there is a relationship of substitution between audit committee effectiveness and audit quality (Big-4) on ARL. The results of this study are consistent with agency theory which states that the implementation of corporate governance, such as an effective audit committee and audit quality, can improve the quality of financial reports. Type of Paper Empirical. Keywords: Audit Committee Effectiveness; Audit Quality; Audit Report Lag; Agency Theory. JEL Classification: M42, M41. DOI: https://doi.org/10.35609/afr.2019.4.1(5)
The Impact of Minimum Wage Policy on Small Medium Enterprises' Productivity in the Manufacturing Sector
Authors: Yean Ung Leng , Ling Tee Peck , Yoke Chung Chay , Jayabalan Jayamalathi , Fong Pok Wei , Kandasamy Shamini
Published: June 2021

Objective - This study's aim is to identifies the minimum wage policy implementation and its impact on SMEs in Malaysia. It addresses the question of the level of SME's awareness and their readiness towards the implementation of the policy and improving productivity.

Methodology/Technique - Data were collected through questionnaire distribution and literature study.Analysis was conducted via a descriptive method.

Findings - The solutions identified in addressing the problem include the need to increase labour productivity, lower operational costs and change organizational methods.

Novelty - The discussions of this paper provide an in-depth understanding of the issues related to how the policy affects company's competitive advantage and financial performance.

Type of Paper: Empirical

Keywords: Minimum Wage Policy; Malaysia; SMEs, Manufacturing Sectors; Productivity.
The Placement Model for Indonesian Migrant Workers to Improve their Economic Welfare
Authors: Mafruhah Izza , Istiqomah Nurul , Mulyani Nunung Sri , Rahardjo Mugi
Published: June 2021

Objective - Indonesian Migrant Workers (TKI) have an important role in employment. In 2015, the number of migrants who worked abroad reached more than seven million people. Despite the huge number, Indonesian Migrant workers are prone to problems encompassing: pre-placement, placement, and post-placement phases. This study aims to analyze the priority factors affecting migrant workers at the three phases as a means to determine their work success. This study also aims to develop a placement model for Indonesian migrant workersespecially in the formal sector so as to better improve their welfare.

Methodology/Technique - To build a model of migrant workers for the formal sector, this study uses two approaches: 1) Analytical Hierarchy Process (AHP) and 2) Qualitative Analysis which is based on in-depth interviews and focusedgroup discussions.

Findings - The results showed that the priority factors that determine migrant workers' success include the three phases: the placement phase with a value of 0.523198; the pre-placement phase with a value of 0.289185; and the post-placement phase with a value of 0.187617. In addition, it is found that the formal sector placement policy should be conducted in collaboration with the countries of destination, especially in the recruitment patterns, the substance of contract, and legal protection. It is suggested that countries that have cooperated in the placement of migrant workers with the G-to-G (Government to Government) model is Japan and South Korea while the placement to other countries of destination is done with the B-to-B (Business to Business) model.

Novelty - The main model recommended in this study is the G to Gmodel which should be implemented in order to safeguard migrant workers as well as to ensure that this model is formulated in policies and government regulations.

Type of Paper: Empirical

Keywords: Indonesian migrant workers, AHP, G-to-G, B to B, PPTKIS
Dryland Farmers' Access to Productive Resources (A Case Study of Wonogiri)
Authors: Prasetyani Dwi , Daerobi Akhmad
Published: June 2021

Objective - This research is built on the argument that providing farmers with more access to natural resources can reduce poverty and so increase production in farming, particularly in the case of Wonogiri.

Methodology/Technique - The method of analysis used for this research is the IRAP (Integrated Rural Accessibility Planning) method which was developed by the International Labour Organization (ILO) and the government agencies of Africa and Asia.

Findings - Based on the calculation of access, it is noted that priority problems of access to productive resources can be resolved by focusing on four factors. First is Education - Strategies that can be implemented is the construction of new schools, particularly junior and senior high schools. Second is Health - Strategies that can be implemented is to increase farmers' access to water resources and to increase the number of general practitioners available such as specialists and dentists. Third is Agriculture - Strategies that can be done is to improve existing markets, add new markets, and develop new farmer groups. Fourth is Support - Strategies that can be done is by building layers of foundation and paving stones and casting roads on the remaining land. Of utmost importance is Education.

Novelty - New found strategies that can be implemented include the construction of new schools for poor farmers.

Type of Paper: Empirical

Keywords: Dryland Farmers, Productive Resources, Wonogiri, IRAP, Access, Strategy.
Evaluation of E-recruitment as a Business Model through Internet of Things Approach
Authors: Sceulovs Deniss , Shatrevich Vladimir , Gaile-Sarkane Elina
Published: June 2021

Objective - Modern e-businesses are developing rapidly as new modern enterprises; e-business management is an important topic across contemporary management and modern information technology. The purpose of the paper is to investigate e-recruitment based on Business Model Ontology framework, to provide useful implication of e-recruitment as a business model. The aim is to create a usable model for building company's value added through e-business, helping companies to evaluate contribution of each element added to the model.

Methodology/Technique - The research done by reviewing previous studies in related areas.

Findings - E-recruitment`s effect on initial job-seeker interest is limited, decreasing the potential possibility to attract a job-seeker and receive positive feedback. Information interaction plays a certain role in job seeker's attitude and job acceptance decisions, but the motivation-enhancing possibilities are likely to be less effective than traditional ones

Novelty - The proposed model of study will provide a practical framework for business users.

Type of Paper: Review

Keywords: E-Recruitment; Internet of Things; E-Business; Business Model Ontology; Value Creation; Information and Communication Technology.

JEL Classification: M15,M51, D83.
Settling Inconsistencies Associated with The Genesis of The Financial Services Authority Act
Authors: Christiani Theresia Anita , Hutapea Maria
Published: June 2021

Objective - The FSA Act the establishment of which is mandated by Article 34 of Law No. 23 of 1999 concerning the Bank of Indonesia, was enacted on 22 November 2011. This Act, together with Law No. 3 of 2004, regulates and supervises Indonesia's integrated financial services sector. This article reveals the existence of inconsistencies between the legal terms underlying the establishment of the FSA one the one hand, and the provisions contained in the Financial Service Authority itself, on the other. These inconsistencies also become evident in the light of the 1945 Constitution which facilitated the establishment of the Bank of Indonesia Law. The purpose of this article is to ascertain a method of resolving these inconsistencies associated with the genesis of the Financial Service Authority.

Methodology/Technique - The research method used in this article is doctrinal in nature that uses secondary data and information sources as material to analyse the relevant problems.

Findings - The research has revealed that the most appropriate method of settling these inconsistencies requires a consideration of the express wording of the FSA.

Novelty - This article indicates the need to apply legal principles rather and adjudicatory methods.

Type of Paper: Review

Keywords: Settlement; Banking; Legal; Principle; Law.

JEL Classification: J21, J28, K23.
The Strategy of Street Vendors in Facing Local Government Policy. A Case of Street Vendor in Bandung
Authors: Hermawati Rina
Published: June 2021

Objective - The presence of street vendors in public places has emerged some problems, such as disordered situation, traffic jam and decreasing aesthetics of the city. In order to overcome the problems, Bandung have some policies issued such as relocation, arrangement and business loans. However, these policies never completely solve the street vendors problems. This research will describe the strategy of street vendors in retaining the existence of their selling place.

Methodology/Technique - The research took place in Bandung using the qualitative approach. Bandung is one of the big city in Indonesia and also capital of west java province. The activity of data collection was conducted through participant observation, in-depth interviews, and documentation.

Findings - The result of the research shows that the strategy of street vendors in resisting the city government was conducted through various ways, both disguised and open ones. Both types of resistance were committed individually and collectively.

Novelty - This article describes the tactics and strategies developed by the street vendors to face the government policy.

Type of Paper: Empirical

Keywords: Street Vendors; Public Places; Public Policy; Resistance; Relocation.

JEL Classification: P25, J48.
Innovation Capability and Customer Relationship Management in Building Competent Young Entrepreneurs
Authors: Sakti Intan Widuri , Dalimunthe Gallang Perdana
Published: June 2021

Objective - The study aims to learn effect ofInnovation Capability and Customer Relationship Management on young entrepreneur's competency.

Methodology/Technique - Questionnaire used for the data collection in this study. The sampling method is probability sampling with simple random sampling technique. The population is all the Marketing students' year 2012, and the calculated sampling is 100 respondents

Findings - From the analysis and explanation using SEM, it is found that Innovation Capability and CRM have a big influence towards young entrepreneurs. Those variables also stimulate them to sharpen their business intuition.

Novelty - The study proves importance of Innovation Capability and CRM on development of entrepreneurs.

Type of Paper: Empirical

Keywords: Innovation Capability; CRM;Young Entrepreneurs; Structural Equation Modelling; SEM.

JEL Classification: L26, O32.
Impact of Surplus Labor Existence on Land Lease Market in Rural Central Java
Authors: Antriyandarti Ernoiz , Ani Susi Wuri
Published: June 2021

Objective - The Indonesian rice sector seems to lose global competitiveness, and the government intervenes in the market to achieve food self-sufficiency. Particularly, in the main rice producing areas of Central Java, the rice sector does not have a comparative and competitive advantage due to small farm size. Then, we need to investigate the reasons why the farm sizes of rice producers are still small.

Methodology/Technique - We hypothesize that the existence of surplus labor in rural areas restrains farm size enlargement. Therefore, we need to examine the existence of surplus labor in study area. By using the empirical model of the Cobb Douglas production function, we test the hypothesis of surplus labor. The estimation result shows that there is a surplus of labor in the study area.

Findings - In addition, we examine the impact of surplus labor on land lease market in rural area. This study proves empirically that there is surplus labor in rural areas; therefore, farmers have difficulty finding job opportunities in sectors other than farming. In such a case, they prefer to cultivate rather than lease their land.

Novelty - This result implies that the existence of surplus labor restricts the number of land lease contract. As a result, the land lease supply in the land lease market has become very limited. Thus, the existence of surplus labor in rural areas would be a constraint of farm size enlargement. This is the first study which explores the relationship between surplus labor and land lease market in the main rice producer area in Central Java.

Type of Paper: Empirical

Keywords: Impact; Existence; Surplus Labour; Land Lease Market; Farm Size Enlargement.

JEL Classification: E24, H83.
Human Capital Model as a Strategy for Development of Weaving Home Industry in Sambas District of West Kalimantan
Authors: Jamaliah Jamaliah
Published: June 2021

Objective - Goals of economic development is to increase economic growth, increase employment opportunity, equalize income distribution, and increase standard of living which will reach out community welfare. Therefore, to achieve all those goals, programs which can enhance economic activities with high intensity are needed. It will create more job opportunities and higher income, which mean poverty can be minimalized. One of the efforts to increase economic growth and public income is to develop human capital. The research is aimed to create the development of human capital model which includes training, skill, experience, and other supports particularly creativity and innovation and regarding enhancing welfare of weaving industry's workers. Methodology/Technique - This research used quantitative and qualitative methods with primary and secondary data which were taken by interviews, questionnaires, and observation. The research took place in several villages/districts in Sambas Regency, those were Jagur, Tumuk Manggis, Tanjung Mekar, Sumber Harapan, and Sajad districts. Considering that population data was not available accurately, respondents were selected based on purposive method and was adapted with the research goal. Findings - The research showed that human capital model to develop weaving industry was very likely to be done through comprehensive development by stakeholders in Sambas Regency (government and public figures), higher education institutions, and companies (business group) so that labour income could increase. Novelty - This developed model, then, is one of means that can be used to improve welfare of weaving industrial workers so that it can be new finding for human capital theory development. Type of Paper: Empirical Keywords: Human Capital, Household Weaving Industry Development, Stakeholders. JEL Classification: J01, J08, R11.
Moderating Business Environment Influence on Individual Entrepreneurial Competence and Entrepreneurial Orientation Toward Business Performance
Authors: Giriati Giriati
Published: June 2021

Objective - This article aims to analyze the influence of moderating hostile and dynamic business environment variables on Individual Entrepreneurial Competence (IEC) and Entrepreneurial Orientation (EO) on Business Performance.

Methodology/Technique - This study is conducted on Credit Union (microfinance), especially in West Kalimantan, using the Structural Equation Model technique.

Findings - The results of the analysis show that the Individual Entrepreneurial Competence variables and Entrepreneurial Orientation have a positive influence on Business Performance. Meanwhile, Individual Entrepreneurial Competence and Entrepreneurial Orientation have a positive and greater influence on Business Performance in hostile environments. On the other hand, Individual Entrepreneurial Competence has a positive effect on Business Performance, but tend to be weak on dynamic environment. The Entrepreneurial Orientation has a positive and stronger impact on Business Performance in a dynamic environment.

Novelty - The study helps to develop business environment for nurturing entrepreneurship.

Type of Paper: Empirical

Keywords: Individual Entrepreneurial Competence; Entrepreneurial Orientation; Hostile versus Dynamic; Business Performance.

JEL Classification: I21, L25, L26.
Development Strategies to Improve the Ecotourism of Indigenous Villages
Authors: Nihayah Dyah Maya , Pujiati Amin , Khoiruddin Moh. , Kusrini Eni
Published: June 2021

Objective - The aim on which this study conducted is to identify the interaction of indigenous factors and external factors at a Tourism Village Nongkosawit and then to create right strategy to develop the tourist village.

Methodology/Technique - This descriptive quantitative research approach focuses on actual problems or phenomena of Nongkosawit which are described based on under-investigation facts and are then rationally and accurately interpreted. Data based on field surveys and questionnaires were evaluated with SWOT analysis (Strength, Weakness, Opportunity, Threat).

Findings - The obtained SWOT results shows that, total score of 3.26 in IFE matrix and 3.00 in the EFE matrix indicate that the appropriate strategy to development a Nongkosawit tourism village is turnaround strategy which means internal problems in this village must be minimized to seize the market opportunities. Then rehabilitating infrastructural facilities, including hotels, restaurants and local tourist guides, and taking advantage of diversity of the ecosystem.

Novelty - The study suggests that village tourism should make improvements on the internal side by performing management reconstruction and perform sharpening market segments. Stakeholders and communities must work together to support the development of rural tourism to raise the regional economy.

Type of Paper: Empirical

Keywords: Village; Tourism; Sustainable; Development; SWOT.

JEL Classification: L83, Q57.
The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia
Authors: Soetjipto Budi Eko , Maipita Indra , Idris Idris , Rahman Haikal
Published: June 2021

Objective - In this study, the impact of earthquake/tsunami threat on land prices is measured using the Hedonic Price Method (HPM). The location of the research is in Padang, West Sumatra. The subject of study is land owners who purchased their land later than September 30, 2009. Methodology/Technique - The linear model and Double-log model with Ordinary Least Square (OLS) are used to estimate variable. Findings - The findings reveal that the Linear model have five variables with a significant effect. Those variables are: (1) Environmental quality, (2) Distance to the seafront, (3) Distance to educational facilities, (4) Availability of clean water and (5) Position of the land, whereas the double-log model also have 5 variables: (1) Distance to the seafront, (2) Distance to educational facilities, (3) Access to evacuation routes, (4) Availability of clean water and (5) Position of the land. Novelty - The possibility of earthquake and tsunami threat in the future has raised a new parameter associated with the environment in the city of Padang, namely land distance towards the seafront. The findings of the study contribute the understanding in land pricing. Type of Paper: Empirical Keywords: Earthquake/Tsunami; Environmental Quality; Land Prices; Padang. JEL Classification: Q24, Q54.
The Development Model Of Small-Industry In East Java: A Regional Comparative Study
Authors: Wahyudi Setyo Tri
Published: June 2021

Objective - This study aims to compare the developmental model of small industry in both regions.

Methodology/Technique - The economic growth of the northern region is relatively higher compared to their southern counterpart. It is thought that industrial zone policies, which tend to be northern-region oriented, is the trigger for this. Although the development of small industries in the southern region of East Java is quite significant and able to absorb many workforces, it is still unable to boost the economic growth of the region. This research uses a shift share analysis method and a sample of regencies and cities in both regions.

Findings - The result of the shift-share analysis model shows that the processing industry and wholesale and retail industry are basic sectors that can enhance the economic growth of both regions. Each industry is significantly shifted to a basic sector. Local governments have established clusters of small and medium businesses, such as earthenware, ceramics, snack, furniture, rattan craft, and stoneware industrial centres. Several other industrial sectors show significant contributions following the implementation of industrial zone policies. This suggests that the establishment of industrial zones is able to boost the region's economy and reduce disparities. However, small industries are low in capital accessibility, skills, and production technology. Therefore, to maintain the sustainability of industrial development, policies implemented by the government should focus on developing small businesses by improving their capital accessibility, skills, and technological proficiencies.

Novelty - East Java's economy has shown a significant growth in recent years. Unfortunately, the growth across the region is still irregular. The disparity at the regional level, particularly between the northern and southern regions of East Java, is still prevalent.

Type of Paper: Review

Keywords: Small Industry; Comparative Study; East Java; Development Model; Economics.

JEL Classification: R11, R58.
Impact of the Free Trade Zone on Cigarette Consumption: An Examination of Indonesian Households
Authors: Rasyid Mohtar
Published: June 2021

Objective - The purpose of this research is to evaluate the impact of the Free Trade Zone ('FTZ') in the Riau Islands Province (Batam, Bintan and Karimun) on specific products, i.e. cigarettes.

Methodology/Technique - To investigate the demand for cigarettes in the FTZ area, this study examines data on cigarette consumption in Batam and surrounding areas before and after the implementation of the FTZ. The data is collected from SUSENAS surveys conducted in 2003, 2005, 2008, 2011 and 2014. To examine the net impact of the FTZ, this study also uses an experimental approach; the implementation of the FTZ can be viewed as a natural influence on a decrease in prices of specific products. The subject group includes households in the Riau Islands Province. Households in the surrounding provinces are therefore used a control groups. Several indicators were used to identify and establish the control groups, including: cigarette consumption, population, sex ratio, life expectancy and education level. Following this criteria, Bengkulu Province was selected as the ideal group of control candidates.

Findings - The results show that there has been a significant increase in cigarette consumption in the Riau Islands Province following the implementation of the FTZ.

Novelty - The introduction of the FTZ means that trade commodities, including cigarettes, are no longer subject to excise duty. As a result, the selling price of tobacco products has become very cheap.

Type of Paper: Empirical.

Keywords: Cigarette Tax; Free Trade Zone; Indonesian Households; Natural Experiment.

JEL Classification: F10, F13, F19.
The Role of Street-Level Bureaucrats In Implementing Renewable Energy Policy in Indonesia
Authors: Asmara Anugerah Yuka , Handoyo Setiowiji
Published: June 2021

Objective - This empirical paper aims to describe what action the Government of Indonesia is taking to provide alternative energy sources, such as solar cells, biomass, wind energy, ocean energy, and other renewable energy (RE) sources.

Methodology/Technique - The method of analysis used in this study consists of an individual factor, a contextual factor, an external factor, an organizational factor, and a political factor.

Findings - The results show that the role of street level bureaucrats in implementing RE policy in Indonesia is influenced by legal regulation and specific values in internal organizations, created by themselves.

Novelty - The study highlights that street-level bureaucrats in Dirjen-EBTKE have a discretion when introducing and implementing new RE programs. The paper involves qualitative research by providing descriptive data through a case study.

Type of Paper: Empirical.

Keywords: Role; Street-Level Bureaucrats; Renewable Energy; Policy; Indonesia.

JEL Classification: P40, P48, P59.
The Effect of Exchange Rates on Trade Balance: An Empirical Study of Morocco
Authors: Sadok Hicham
Published: June 2021

Objective - This paper aims to examine the relationship between exchange rates and trade balance in Morocco, to investigate whether the Marshall-Lerner condition and J-curve exist.

Methodology/Technique - This paper attempts to identify the relationship between the real exchange rate and trade balance in Morocco between 2000 an 2015.

Findings - Historically, exchange rates have had a strong impact on foreign trade in Morocco.

Novelty - This study concludes that the fluctuation of exchange rates has no notable impact on the rate of foreign trade.

Type of Paper: Empirical.

Keywords: Exchange Rates; Trade Balance; Exports; Imports; Morocco.

JEL Classification: D51, D59.
Optimal Fiscal Policy – Factors for the Formation of the Optimal Economic and Social Models
Authors: Abuselidze George
Published: June 2021

Objective - The purpose of this paper is to develop the optimal economic and social model for the modern stage and analyze the Social Progress Index in Georgia. The research is based on the paradigm that "what we analyze, this determines the decisions we make". Consequently, emphasis is placed on issues that significantly affect human well-being.

Methodology/Technique - In this top-down study, the empirical material is collected from official documents and public statements made by centrally placed politicians and administrators in Georgia as well as research conducted by international organizations in Georgia. The research database used is the legislative and normative acts adopted by the government of Georgia in the modern day, in particular: the National Statistics Office of Georgia, the Economic Development and Finance Ministries, the Georgian National Statistics Office, the Parliamentary Finance and Budget Committee and other related departments.

Findings - This study shows that the formation of the optimal economic and social organization model of a country is particularly dependent on the selection and implementation of the most appropriate fiscal policy. The philosophy of social security is one of the greatest achievements of modern civilization. The present work is dedicated to the progress of human development – specifically, welfare issues. This provides the model for creating the optimal social security system of a population, with the following social system parameters: distribution of national income to the population and their families and addressing the issues of financing social security needs. Based on the study of the social experiences of social reform and the social indicators of the European Union, the alternate concept of prosperity and perfection is developed. These topics are the focus of the present work.

Novelty - The empirical material contained within focuses on the period after 2005, when some important changes in political leadership took place. In 2003, Saakashvili became President of Georgia, Ivanishvili was elected as Prime Minister in 2012 and Kvirikashvili took over this position in 2015. During this time, there was also a shift in government social policy at a central level. The collection of empirical data for this study ends in 2017, giving a total study period of 12 years.

Type of Paper: Empirical.

Keywords: Fiscal Policy; Welfare; Social Security; Social Innovation; Household; Employment.

JEL Classification: E24, E62, H31, H55, H61, R2, R51.
Awareness of Tourism Products and Tourist Satisfaction: A Case of Indonesia
Authors: Robustin Tri Palupi , Sularso Raden Andi , Suroso Imam , Yulisetiarini Diah
Published: June 2021

Objective - The Jember District has a very exotic beach tour of Papuma Beach, which shows its white sand and provides historical tours of the Cave of Japan. Papuma Beach is ranked number 1 of the 10 most beautiful beaches in the Jember District. This research aims to understand the influence of tourism product components on the satisfaction of tourists. The components of tourism products in this study include attractiveness, facilities, and accessibility.

Methodology/Technique - This research is a quantitative study with a population of tourists visiting Papuma beaches. The number of samples in this study amounted to 40 samples. The data is analysed using a multiple regression analysis with the SPSS program.

Findings - The results of the study show that the influence of tourist attractions and facilities on the satisfaction of tourists at the Papuma Beach Tour in the Jember District is strong.

Novelty - However, the accessibility variable has no significant effect on satisfaction.

Type of Paper: Empirical.

Keywords: Tourism Products; Satisfaction; Multiple Regression Analysis; Papuma Beach, Indonesia.

JEL Classification: Z30, Z32, Z39.
Economic Analysis of Sea Shellfish as a Basic Material for Making Shellfish Souvenirs
Authors: Hariyana Nanik , Syahputra Hendra , Minullah Minullah
Published: June 2021

Objective - Indonesia consists mainly of waters and is therefore rich in various marine products, either in the form of fish or other resources. One such property is shells. The selection of sea shells as a business material is based on the use of sea shells for daily needs. The price of sea shells is relatively cheap and the use of sea shells as a material for making souvenirs and handmade ornaments is a promising business prospect.

Methodology/Technique - In planning this activity, the location of the marketing of the product is the central region of the city of Semarang. This area is home to a large source of sea shells and there is a lack of souvenir businesses using sea shells to make their products.

Findings - The results of the study show that seashell businesses located in Situbondo Regency are experiencing good growth in recent years.

Novelty - The research is one of few on seashell business in the context of Indonesia. This research opens the ways to bring more investment and growth awareness.

Type of Paper: Empirical

Keywords: Sea Shells; Cost Structure; Benefits; Business Efficiency, Indonesia.

JEL Classification: O10, O12, O13.
The Role of Islamic Crowdfunding Mechanisms in Business and Business Development
Authors: Hendratmi Achsania , Sukmaningrum Puji Sucia , Ryandono Muhamad Nafik Hadi , Ratnasari Tri
Published: June 2021

Objective - This study aims to determine the role of Islamic crowdfunding towards business development of start-up businesses financed in Singapore, Malaysia and Indonesia.

Methodology/Technique - This study uses a qualitative approach with an exploratory case study strategy. The data collection was carried out by conducting in-depth interviews with CEOs and COOs of Kapital Boost and CEO Investee (funded SMEs) informants.

Findings - The results show that there is an increase in assets, sales turnover, and the capacity of Micro, Small and Medium Enterprises (MSMEs) and Startup businesses that received funding through campaigns on the Kapital Boost platform. In addition, pioneering business people can get easier access to financing compared to financing through bank-provided credit.

Novelty - The findings of this paper can be used to develop crowdfunding platform will be implemented in Muslim countries or countries with a majority Muslim population.

Type of Paper: Empirical.

Keywords: Crowdfunding Platforms; Islamic Crowdfunding; Business Development; MSMEs; Start-up Companies.

JEL Classification: E44, M21, M29.

DOI: https://doi.org/10.35609/jber.2019.4.1(2)