Gadjah Mada International Journal of Business
Gadjah Mada International Journal of Business (GamaIJB) is a peer-reviewed journal published three times a year (January-April, May-August, and September-December) by Master of Management Program, Faculty of Economics and Business, Universitas Gadjah Mada. GamaIJB is intended to be the journal for publishing articles reporting the results of research on business, especially in the context of emerging economies.
The GamaIJB invites manuscripts in the various topics include, but not limited to, functional areas of management, accounting, international business, entrepreneurship, business economics, risk management, knowledge management, information systems, ethics, and sustainability.
Articles
612 Documents
Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia
Syaiful Ali;
Billy Simboh;
Ulfa Rahmawati
Gadjah Mada International Journal of Business Vol 25, No 1 (2023): January-April
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.68805
P2P lending offers loans to the public with easy processes and terms. However, the level of P2P lending disbursements is still lower than that of the banks. In addition, a comparison of the number of users of P2P lenders and the productive age population of Indonesia shows that there are still many people who do not use P2P lending. This paper examines the factors that make Indonesians avoid P2P lending. This study used an online survey approach for its data collection and structural equation modeling (SEM) to analyze the data from 499 responses. The study found that the perceived threat from P2P lending is influenced by its perceived severity, perceived susceptibility, and risk tolerance. This perceived threat and social influences cause people’s avoidance motivation. This study contributes to the fintech literature by providing empirical evidence on the avoidance of P2P lending from the borrowers’ perspectives using the TTAT model. Other implications are an input for regulators/governments to enforce the rules for user protection and input for the P2P lending service providers to provide educational programs regarding the use of P2P lending.
The Effect of Entrepreneurial Attitudes and Individual Attributes on Entrepreneurial Activity in the context of ASEAN Member States: Evidence from Thailand and Vietnam
Eristian Wibisono;
Hoang Thi Phuong Thao
Gadjah Mada International Journal of Business Vol 25, No 1 (2023): January-April
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.73025
This study analyzes the influence of entrepreneurial attitudes and individual attributes on entrepreneurial activity in two ASEAN member countries: Vietnam and Thailand. By applying the multinomial logistics regression (MLR) analysis method, the results show that those with an entrepreneurial network, who can read business opportunities, and have skills and knowledge, have a positive and significant influence when deciding to start and invest in others’ new businesses. On the other hand, females and those with a secondary education were more likely to engage in entrepreneurial activities. The study also shows that Vietnam’s entrepreneurial attitudes and individual characteristics seem to be better, differentiating it from Thailand. The Global Entrepreneurship Monitor (GEM) data from 2017 were the most recent data available at the time of this study. However, the availability of more up-to-date data is considered necessary to enrich and expand the impact of future research.
Is Service with a Smile Enough to Satisfy Customers? Sincere and Insincere Smiles via Video and Vignette
Resekiani Mas Bakar;
Fitriani Ayu;
Lukman Nadjamuddin
Gadjah Mada International Journal of Business Vol 25, No 2 (2023): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.46227
The current service trend does not merely involve face-to-face interactions, including smiling (high-contact-service) by service employees, but also using methods such as texting (low-contact service). Sincere and insincere smile studies have used a method involving dynamic (videos) and static stimuli (photographs). However, research into the different types of smiles is still limited to methods using a vignette. This study aims to examine the effect of the type of smile on customer satisfaction using a vignette and video. A total of 139 people participated in 2 (smile: sincere versus insincere) x 2 (media: vignette versus video) groups. The study found that there is an influence from the type of smile on customer satisfaction. A sincere smile using video produces greater customer satisfaction than using a vignette does, because the emotional contagion process through video is more real than it is through a vignette. The interesting finding from this study is that there is a gap in the insincere smile condition between using video and a vignette. The dissatisfaction of customers is greater when served with an insincere smile by text (vignette), compared with a face-to-face interaction by video. Video could only capture the muscle movement on a person’s cheeks (zygomaticus major), but it could not see the muscle wrinkles formed around the eyes (orbicularis oculi), compared to a vignette. This study implies that although the standard operational procedure (SOP) for service demands friendliness, a customer can feel whether a server’s smile is genuine or fake. The customer’s dissatisfaction toward an insincere smile will be higher with a low-contact service using text than a high-contact service with video.
The Gambler’s Fallacy, the Halo Effect, and the Familiarity Effect Based on Risk Profile: Bullish and Bearish Market in Indonesia Stock Exchange
Putu Anom Mahadwartha;
Fitri Ismiyanti;
Zunairoh Zunairoh
Gadjah Mada International Journal of Business Vol 25, No 2 (2023): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.64801
This study tests three behavioral biases: the gambler’s fallacy, the halo effect, and the familiarity effect. The novelty is the behavioral bias in bullish and bearish markets, based on different investors’ risk profiles. The questionnaire used a Likert scale. This study argues that bullish and bearish markets, and different risk profiles, affect investors’ behavioral bias. The gambler’s fallacy occurs when markets are bullish and partially when markets are bearish. The halo effect without risk profile does not occur in either market, and the familiarity effect occurs in both markets. Investors with a very conservative risk profile will experience behavioral bias, especially the gambler’s fallacy and the familiarity effect, with bullish and bearish markets. Investors with a conservative risk profile will partially experience the halo effect in bullish markets.
Improving Entrepreneurial Satisfaction Through Creativity and Intellectual Agility-Resonance: Evidence from Indonesia
Roymon Panjaitan;
Echan Adam;
Muhammad Hasan
Gadjah Mada International Journal of Business Vol 25, No 2 (2023): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.69387
Entrepreneurship is a personality attribute that enables a person to discover resources passionately through a combination of new strategies to generate significant market value. Therefore, this research aims to examine the importance of the intellectual agility-resonance of businesses in all industrial sectors in Indonesia. Quantitative data were collected from 303 small and medium-sized micro-enterprises and analyzed using SEM-PLS line analysis. The result showed that the intellectual agility-resonance of entrepreneurial creativity increases satisfaction. Furthermore, empirical research on aspects like psychological well-being, financial optimism, job risks, and outcomes show what can be achieved through intellectual agility-resonance. Theoretically, entrepreneurial creativity is an intellectuality that comes from the dimension of the source of competitive excellence.
The Impact of Information Sharing and Inventory Management Practices on Firms’ Performance in Supply Chain Practices
Diriba Ayele Gebisa
Gadjah Mada International Journal of Business Vol 25, No 2 (2023): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.69616
This study’s aim is to conduct an empirical investigation of the impact of supply chain practices on firm performance. The prime objective of the paper is to study the impact of information-sharing practices and inventory management on firm performance. To realize the specified objective of the study, data were gathered from 170 individuals who are familiar with the supply chain practices of the companies and analyzed using structural equation modeling (SEM). The result shows a significant direct and indirect effect of information sharing and inventory management practices on firm performance. Generally, the results show that higher information-sharing practices and better inventory management practices lead to greater firm performance; and higher information-sharing leads to improved inventory management, which in turn leads to greater firm performance. Theoretically, the result provides evidence of the effects of information sharing and inventory management on the supply chain practices’ performance in a firm. The managerial implications of the results are enhancing information sharing and inventory management practices by adopting, internalizing, and building information technology into all the business operations to enhance information sharing and inventory management practices to enhance firm performance.
CEO Type and Earnings Management to Avoid Loss or Earnings Decreases: Evidence from South Korea
Kyunga Na;
Yun-jeong Lee;
Hagyeong Yu
Gadjah Mada International Journal of Business Vol 25, No 2 (2023): May-August
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.72880
This study examines the relations between the CEO type (owner CEO vs. professional CEO) and earnings management over 9,266 firm-years from 2011 to 2020 in Korea. Two earnings management measures, accrual management and real activity management (abnormal cash flow from operations, abnormal production cost, and abnormal discretionary expense), are considered as means to avoid reporting losses or earnings decreases. We partition the sample into two groups based on the type of CEO (owner CEO vs. professional CEO) and investigate whether earnings management is used for achieving earnings targets (small profit or small earnings increases) for each group. We find all earnings management measures are significant at the 5% level or better in the direction of aggressive earnings management in the owner CEO sample, while all but one measure (abnormal production cost) are insignificant in the professional CEO sample. Our findings suggest that an owner CEO is more likely to manage earnings to achieve small profit or small earnings increases compared to a professional CEO.
Does Government Accounting Information Matter to Gain Votes? Evidence from Local Elections in Indonesia
dyah purwanti
Gadjah Mada International Journal of Business Vol 25, No 3 (2023): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.64668
Voting decisions have become a strategic tool to analyze whether voters consider an incumbent's economic policies make it worthwhile re-electing the incumbent. If a strong correlation between the information on economic policies and the election results could be proved, evidence would thus be found that government accounting captures data on the attributes of government finances, consistent with the information incorporated by constituents in their voting decisions. This study investigates the association between government accounting information and local election outcomes and observes two regional government clusters that held local elections in 2017 and 2018, in which 198 incumbents ran for office again. By employing regression analysis, this study finds that several accounting information items impact the vote acquisition of the incumbents. The specific finding is that budget accounting information has a more decisive influence on votes for the incumbents than financial accounting information does. The result implies budgetary accounting information that represents service performance is beneficial for gaining votes. The limitation that should be considered is the emphasis on the assumption of voter rationality, in which the voters accumulate performance information on the incumbents for their voting decisions. It is highly improbable that voters will allocate time to collecting and reading government financial statements on purpose.
The Effect of Push, Pull, and Mooring Factors on Customers’ Switching Intention to Green Cosmetics
Asri Sekar Mawar Firdausi;
Basu Swastha Dharmmesta
Gadjah Mada International Journal of Business Vol 25, No 3 (2023): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.69863
Nowadays, consumption patterns concern consumers since they have negative impacts on environmental sustainability. Marketers have conducted some efforts to create eco-friendly products. This condition has caused research into green marketing to grow significantly. Various studies have been conducted to examine consumers' behavior intentions toward green products. However, the theory applied to explain the phenomenon still has the potential to be developed. Thus, in this study, the researchers examine the consumers' switching intention from conventional cosmetics to green cosmetics, by applying the migration theory and the push-pull-mooring framework. The push factors are explained by the dissatisfaction variable and the low-quality variable. The alternative attractiveness variable explains the pull factor. Meanwhile, the mooring factors are explained by variety-seeking and the unfavorable subjective norm variables. PLS-SEM is used to analyze 198 consumers of conventional cosmetics. The results indicate that the pull factor is the main factor that supports the consumers' switching intention to green cosmetics, and the second is the push factor. Furthermore, the mooring factors are proven to moderate the effect of the pull factor on consumers' switching intention. On the other hand, the mooring factors are not shown to moderate the influence of the push factors on the consumers' switching intention.
A Test of Positive Feedback Trading among Foreign Portfolio Investors in Nigeria
Rihanat Idowu Abdulkadir
Gadjah Mada International Journal of Business Vol 25, No 3 (2023): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/gamaijb.69984
It has been established in the literature that the trading behavior of international investors may increase market vulnerability, especially for emerging markets. Consequently, this study examines whether positive feedback trading exists in the Nigerian stock market. Both descriptive and inferential analyses are carried out on monthly data covering the period 2013 to 2020. Specifically, the ARDL bounds testing approach is employed. Findings indicate that positive feedback trading exists in the market, as stock returns have positive and significant influence on foreign portfolio inflows. The results further show that this trading pattern becomes more prominent with rising economic growth. The findings again reveal that the exchange rate and the interest rate explain the foreign portfolio inflows in the Nigerian market. The study’s outcomes lend support for the pull theory in explaining the foreign portfolio inflow. However, no evidence is found in support of the push theory, as an explanation for the foreign portfolio inflow as the “OPEC basket crude oil price†is insignificant. It is thereby recommended that regulators should adopt measures that will help foreign investors to be better informed about the Nigerian market, in order to reduce their positive feedback trading behavior. Moreso, there is a need for the government to put in place policies targeted toward enhancing the growth of the stock market and the economy. In this way, the negative impact of such trading behavior will be minimal, as short-term trading by foreign investors will be reduced and the foreign portfolio inflows will be sustainable.