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INDONESIA
Indonesian Journal of Business and Entrepreneurship (IJBE)
Published by Institut Pertanian Bogor
ISSN : 24075434     EISSN : 24077321     DOI : -
Core Subject : Economy, Science,
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance
Indonesian Journal of Business and Entrepreneurship (IJBE) publishes information of empirical research and reviews in business and entrepreneurship. IJBE is published by School of Business, Bogor Agricultural University (SB-IPB) associated with Indonesian Alliance of Magister Management Program (APMMI). IJBE was first published at the beginning of 2015 with three issue per year in January, May, and September. Editor receives articles of empirical research and reviews in business and entrepreneurship.
Arjuna Subject : -
Articles 393 Documents
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The Impact of Institutional, Strategic, and Structural Constraints, Along With Management Competencies on Black-Owned SMMEs Performance: a Structural Equation Modelling Approach Tlhagale, Felicity Kgomotso; Ndou, Adam
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 2 (2025): IJBE, Vol. 11 No. 2, May 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.2.395

Abstract

Background: The worldwide discussion focused on investigating the impact of institutional constraints, management capabilities, and both structural and strategic constraints on performance outcomes of small, medium, and micro enterprises (SMMEs).Objective: This study aims to enhance and widen the analysis by investigating how institutional, strategic, and structural constraints, along with management capabilities, affect the performance measures of Black-owned SMMEs, intending to provide a more thorough and expansive analysisDesign/methodology/approach: A quantitative analysis approach was employed, using a structural equation model to examine the interconnections among various factors, including financial, informational, and human capabilities in relation to management capabilities, as well as financial and organisational development in relation to performance. A total of 544 small businesses owned by Black individuals in South Africa participated in the study.Results: The results demonstrate a negative correlation between institutional constraints and business performance (H1), along with a similar negative relationship between strategic and structural constraints and performance (H2). In contrast, the anticipated positive link between management competencies and performance (H3) was not confirmed. These findings highlight the necessity for proactive measures to transform regulatory settings and improve organisational structures.Conclusion: This study tackles a crucial void in the existing literature by exploring the connections among organisational limitations, operational and strategic challenges, management skills, and entrepreneurial success. There is an urgent need for collaborative initiatives among policymakers, business development agencies, and stakeholders to promote entrepreneurship, improve management skills, and bolster organisational frameworks. Through these interventions, Black-owned SMMEs will thrive, generate employment, inspire innovation, and aid in overall economic and social progress.Originality/value: The present research is the initial exploration into the detrimental impact of institutional, strategic, and structural limitations, along with management capacities, on the entrepreneurial performance of SMMEs within South African contexts. Keywords: black-owned smmes, business performance, institutional constraints, management competencies, structural barriers
The Impact of Network Capability on Knowledge Creation and Business Performance: a Mediator Moderator Analysis Pujianto, Wahyu Eko; Razli , Izyanti Awang; Putri, Bella May Ranti; Irawan, Nico
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 2 (2025): IJBE, Vol. 11 No. 2, May 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.2.276

Abstract

Background: Businesses face dynamic market challenges that ultimately affect businesses, especially SMEs. SMEs' success can be realized through network capability, facilitating access to markets, resources, information, and collaboration opportunities to support business competitiveness and growth.Purpose: Objective: This study examines and analyzes the effect of network capability in creating new knowledge on business performance, with knowledge creation as a mediator and agile capability as a moderator.Design/methodology/approach: This research was conducted in the food, beverage, furniture, fashion, electronics, textile, and beauty industries, involving 215 SMEs in East Java, including managers, SPVs, and decision-makers. A non-probability sampling technique was used for sample selection. Non-probability sampling methods are used to select respondents, while purpose sampling techniques focus on specific subgroups that have certain characteristics. Data analysis used quantitative methods, specifically Mplus 8 software, to test the research hypothesis.Findings/Result: The results showed that network capability significantly positively affects knowledge creation. Furthermore, network capability has a significant positive impact on business performance, mediated by knowledge creation. This study also found that the variable of knowledge creation on business performance moderated by agile capability does not strengthen. Agile capability did not moderate the relationship significantly, indicating that too much change or rapid adaptation can disrupt the consistency of long-term strategies, ultimately detrimental to overall business performance.Conclusion: This study shows that network capability positively affects knowledge creation and business performance while agile capability does not significantly moderate the relationship between the two, so further research can explore other variables, such as digital transformation capability. SME success can be realized through networking capability that facilitates access to markets, resources, information, and collaboration opportunities, supporting business competitiveness and growth in an evolving marketplace.Originality/value (State of the art): These findings contribute to the business by enhancing skill capabilitiy and fulfilling business advantages for business products. Keywords: network capability, knowledge creation, agile capability, business performance, and market dynamics
Sensory-Driven Consumer Satisfaction in China’s Cigarette Market: A Structural Equation Model of Packaging, Taste, and Experience Yang, Lei; Feng, Hong Tao; Hu, Hao Ruo; Li, Chao; Zhan, Jian Bo; Fan, Duo Qing; Tao, Ying; Wang, Jin; Jiang, Meng Fei; Zhang, Tao
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 2 (2025): IJBE, Vol. 11 No. 2, May 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.2.466

Abstract

Background: In recent years, the Chinese cigarette market has undergone significant changes, with tobacco companies emphasizing consumer research in their product development and marketing strategies. A noticeable shift toward analyzing and optimizing the entire consumer experience makes a consumer-centric perspective the top priority in product development. Purpose: The study aims to create a consumer-centered evaluation system focusing on sensory and emotional aspects. Exploring the connections between packaging design, the smoking experience, quality perception, internal taste, innovative design, and product naming offers insights into leveraging these elements to differentiate products and improve brand competitiveness in a declining market. Design/methodology/approach: The study was conducted in 12 cities and involved quantitative research with a sample size of 2,521 participants. Participants were selected using stratified sampling to ensure representation from China's different geographical and economic regions. The analysis included the development of a structural equation model based on the relationships among seven latent variables and 62 observed variables. Findings/Result: This study shows that the smoking experience is the most critical factor in determining satisfaction, with internal taste playing a key role. Another result is that the packaging's tactile and auditory features, such as the smoothness of the box and the sound of tearing, significantly enhance the consumer experience. Sensory attributes, including aroma and visual appeal, greatly influence quality perception and overall satisfactionConclusion: This study provides new insights and empirical evidence for cigarette companies to better serve consumers, highlighting the role of sensory and emotional factors in product development and innovation.Originality/value (State of the art): By improving these influential indicators, cigarette products can effectively enhance their performance in the consumer journey experience. This paper provides a new perspective and empirical reference for cigarette enterprises to serve consumers better. Keywords: cigarette consumption experience, consumer satisfaction, sensory elements, influencing factors, structural equation model
Does Microfinance Outreach Indonesian Micro and Small Enterprises? Martokoesoemo, Dewi Ratna Sjari; Sihombing, Ariel Bhaskara Haposan
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.759

Abstract

Background: Micro and Small Enterprises (MSEs) played role in Indonesia’s economy. However, Indonesian MSEs still faced various challenges in obtaining external financing. Microfinance had emerged as a prominent tool for reducing the credit constraints experienced by MSEs. However, the literature on the effectiveness of microfinance in improving MSE performance still had empirical gaps in terms of mixed results.Purpose: This study examines the impact of microfinance on the asset growth of micro and small enterprises (MSEs) in Indonesia using data from the fifth wave of the Indonesia Family Life Survey (IFLS).Design/methodology/approach: The analysis encompassed a cross-sectional dataset of 6,363 MSEs across 16 business categories and employs Ordinary Least Squares regression to measure the effects of exogenous variations in microfinance access on total assets.Finding/Result: Regression analyses reveal that microfinance significantly increases MSEs’ total assets by 19%-25%, with smaller firms showing stronger effects. Alternative measures of microfinance, such as awareness of institutions and loan values, also demonstrate a positive impact on firm outcomes, whereas financing from informal institutions is associated with negative effects. Additional findings highlight the positive influence of microfinance on non-equipment assets, revenue, and expenses, although its effect on equipment assets is weaker. Robustness checks across subsamples confirm the results, indicating diminishing returns for larger firms than smaller firms.Conclusions: These findings underscore the critical role of microfinance in enhancing the growth and sustainability of MSEs, particularly smaller, vulnerable enterprises. This study emphasizes the need for tailored microfinance interventions and suggests further exploration of long-term impacts and integrated support mechanisms. This study provides valuable insights for policymakers to optimize microfinance programs, contributing to poverty alleviation and economic empowerment in Indonesia.Originality/value: The existing literature has not sufficiently examined how microfinance can alleviate these financial pressures and enhance MSE resilience and performance. This study aims to address this gap by evaluating the impact of microfinance on the performance of MSEs in Indonesia, providing a comprehensive understanding of how improved access to microfinance can support MSEs in overcoming financial barriers and sustaining growth despite experiencing adverse shocks. Keywords: microfinance, micro and small enterprise, asset growth, Indonesian family life survey
The Amplification of Generative Artificial Intelligence (AI) in Content Marketing For Women Micro-Entrepreneurs: Qualitative Case Study Approach Ghonisyah, Ghaling Achmad Abdul; Asyiah, Ai Kusmiati
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.724

Abstract

Background: The integration of Generative Artificial Intelligence (AI) in content marketing had gained increasing attention as a key driver of digital transformation, particularly for women-led microenterprises. Purpose: This study investigates the role of generative artificial intelligence (AI) in optimizing content marketing strategies to accelerate the digitalization of female-owned microbusinesses in Indonesia. Design/methodology/approach: Using qualitative research methods, including in-depth interviews with 5 (five) participants women micro-entrepreneurs, the study emphasizes the depth of context. This study explores the challenges and benefits of adopting AI-driven content creation tools. The analytical method used is holistic coding.   Findings/results: The results reveal that Generative AI significantly enhances content production in terms of creativity, relevance, and efficiency, while also improving audience engagement and brand visibility. These findings confirm that in content creation, it is no longer necessary to pay third parties to create content, and women entrepreneurs can automatically generate the marketing content they need at no cost. Furthermore, this study highlights how AI acts as a powerful catalyst for social and economic empowerment by providing micro-businesses with the tools necessary to compete in the digital economy.  Conclusion: The research findings emphasize the transformative potential of AI in reshaping traditional marketing approaches, fostering greater inclusivity and growth in the entrepreneurial landscape. Although these entities have implemented generative AI technologies to augment the production of marketing materials, they are currently lack the specialized competency in prompt composition required to optimize the conversion potential of the resulting content for marketing purposes. Through its relevant institutions, the government is strategically promoting digital transformation by establishing dedicated digital and AI learning centers in some regions. According to the informants, however, these initiatives seldom reach female-owned micro-businesses in those same regions. Originality/value: By shedding light on the specific impact of AI on women micro-entrepreneurs, this study contributes to the broader discourse on gender, entrepreneurship, and technological innovation. The implications of this research offer valuable insights for policymakers, business practitioners, and stakeholders aiming to support the digital transformation of women-led micro-enterprises. Keywords: Generative AI, content marketing, digital skill, digital transformation, women micro-entrepreneurs
Driving Social Entrepreneurship Performance Through Entrepreneurial Orientation in Agriculture and Food Sectors in Yogyakarta Suprihanti, Antik; Soriano, Jerome Duque; Kuncoro, Andreas Mahendra; Cahyanto, Ichsan Nur; Nusantari, Jasmine Rahma; Alfreda, Sabrina Marsha
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.619

Abstract

Background: Background: Social enterprises in developing countries often faced internal and external challenges in achieving sustainable impact, especially in agriculture and food sectors. Entrepreneurial Orientation (EO), consisting of innovativeness, proactiveness, risk-taking, autonomy, and competitive aggressiveness, has emerged as a potential driver of Social Entrepreneurship Performance (SEP). However, its nuanced effects in mission-driven contexts remain underexplored.Purpose: This study aims to investigate the influence of Entrepreneurial Orientation (EO) on Social Entrepreneurship Performance (SEP) among small and medium enterprises (SMEs) in the agricultural and food sectors in Yogyakarta, Indonesia, by analyzing the distinct contributions of each EO dimension.Design/Methodology/Approach: A quantitative method was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) on data collected from 32 purposively selected SMEs. EO was modeled as a higher-order construct composed of five lower-order dimensions, and SEP was measured based on social engagement and partnership benefits.Conclusion: The findings confirm that EO significantly and positively influences SEP. Innovation and proactiveness were the strongest contributors to EO, while risk-taking negatively affected autonomy, and competitive aggressiveness showed moderate impacts. The study highlights the need for strategic emphasis on innovation and proactiveness, with cautious risk management and aligned autonomy to enhance social enterprise outcomes.Originality/Value: This research contributes to the limited empirical evidence on EO's role in social enterprise performance within agriculture-based SMEs in developing countries. It offers nuanced insights into how EO dimensions function differently in resource-constrained, socially driven settings. It also provides actionable implications for social enterprise managers seeking to enhance organizational sustainability and social impact. These findings guide social enterprise managers to balance innovation and proactiveness while managing risk conservatively to enhance sustainable impact. Keywords: entrepreneurial orientation, social entrepreneurship performance, agriculture and food industries
Influencer Marketing and Purchase Intention: The Mediating Role of Trust Evrianti, Hesti; Wanti, Sri; Asriadi; Wulandari, Poppy
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.535

Abstract

Background: Digitalization had transformed consumption patterns, positioning influencer marketing as a dominant strategy in contemporary business. Social media influencers significantly enhanced brand awareness and purchase intention, particularly among students as active technology users. However, their impact was mediated by trust, which strengthened consumer responses to marketing messages. Thus, examining trust as a mediating variable between influencer marketing, brand awareness, and purchase intention was essential to advance marketing knowledge within the student market segment.Purpose: This study aims to examine the influence of influencer marketing on brand awareness and purchase intention, emphasizing the mediating role of trust. While influencer marketing is recognized as a driver of consumer decisions, its impact is often indirect, shaped by consumer trust. Prior studies have overlooked this mediating factor, particularly within the student market segment. Addressing this gap, the research provides new insights into digital marketing by highlighting trust as a critical determinant of effectiveness.Design/Methodology/Approach: This study employed a quantitative research design at Tadulako University, Palu, Indonesia, from February to October 2024. Data were collected through a structured questionnaire distributed to 86 postgraduate students, determined via the Slovin formula from a population of 630. The instrument, validated by expert review and pilot testing, used a five-point Likert scale. Data analysis utilized descriptive statistics and path analysis with SmartPLS 4 to examine causal relationships and ensure validity and reliability.Finding/Result: The results demonstrate that influencer marketing significantly enhances brand awareness, purchase intention, and trust among students. Trust itself positively influences both brand awareness and purchase intention, while also serving as a significant mediator between influencer marketing and these outcomes. Path analysis confirms all hypotheses, underscoring the central role of trust in strengthening consumer perceptions and decisions. These findings highlight that influencer marketing effectiveness depends not only on brand exposure but also on building sustainable trust-based relationships.Conclusion: This study concludes that influencer marketing significantly enhances brand awareness and purchase intention among graduate students, with trust acting as a pivotal mediating factor. Trust reduces perceived risks and reinforces consumer confidence, thereby amplifying marketing effectiveness. The study contributes novel insights by positioning trust as a central mechanism in digital marketing strategies. However, due to the limited sample size, findings should be interpreted cautiously and further validated across broader contexts and product categories.Originality/State of the art: This research contributes to the existing literature by emphasizing the mediating role of trust in influencer marketing's effects on graduate students, providing insights for marketers targeting this demographic in the context of mobile phone purchases. Keywords: influencer marketing, brand awareness, purchase intention, consumer decisions, digital marketing
Perceived Value and Purchase Intention Among Young Adults Perfume Consumers: A Mixed-Method Exploration Rembulan, Cicilia Larasati; Sanjaya, Ersa Lanang
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.556

Abstract

Background: The cosmetics industry including perfume was one of the industries that contributed to the economy in Indonesia (3.83% in the first quarter of 2023). This made the perfume industry a worthy field to discuss. Purpose: The objective of this study is to see the influence of dimensions of perceived value on the intention to purchase perfume X in young adults. Design/methodology/approach:  The research design used was a mixed method. The online survey was conducted with 217 early adulthood (18-25 years). Quantitative data analysis used PLS SEM. Qualitative data was obtained by interviewing 24 respondentsFinding/Result: In study 1, it was found that social and emotional perceived value have an influence on the intention to buy product X. Based on study 2, it was found that the emergence of certain memories or nostalgia and the influence of friends and praise from people closest to them were important. Conclusion: In the context of teenagers and non-luxury perfumes, emotional and social perceived value are important because they will be related to purchase intentions. Originality/value (State of the art):  In this study, it was found that social and emotional perceived value are important things related to purchase intention, while quality and price have no influence. Keywords: perceived value, intention to purchase, perfume industry, early adulthood, mixed method
Halal Detection Kit Production: Economic Feasibility and Risk-Based Investment Planning Sigit, Arief Muhammad; Priyarsono, Dominicus Savio; Jahroh, Siti
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.746

Abstract

Background: Background: Indonesia’s halal industry offered strong growth potential, yet investment in halal detection tools remained limited. Strengthening this sector could improve independence and competitiveness in domestic biotechnology.Purpose: The study evaluates the financial feasibility of investing in the development of halal detection kit products and integrates risk management to enhance decision-making in biotechnology investments.Design/methodology/approach:  A quantitative analysis was conducted using primary data (semi-structured interviews with PT XYZ’s management and company financial statements) and secondary data (literature, market reports, and internal documents). Investment feasibility was assessed through Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP). Monte Carlo simulations were applied to model uncertainty and integrate risk analysis into the NPV-at-Risk framework.Findings/Result: The study results show that the investment in developing halal detection kit products is economically feasible, as indicated by a positive NPV, an IRR above the discount rate, and a relatively short PBP. Monte Carlo simulations highlight the sensitivity of investment profitability to fluctuations in raw material prices and currency exchange rates, emphasizing the importance of effective risk management strategies.Conclusion: PT XYZ can reduce cost risk by collaborating with local partners to increase the Domestic Component Level (TKDN) and minimize reliance on imported raw materials affected by currency fluctuations. Implementing risk mitigation strategies based on the NPV-at-Risk method can optimize operations, improve cost efficiency, and expand market reach.Originality/value (State of the art):  This research combined financial feasibility with risk-based analysis using the NPV-at-Risk method in biotechnology. Keywords: biotechnology, risk-based investment, halal detection kit, risk management, Monte Carlo simulation
Reimagining Consumer Analytics: Predictive and Real-Time Insights Through Dynamic Structural Equation Modeling Magasi, Chacha; Nyamwesa, Aloyce M.
Indonesian Journal of Business and Entrepreneurship Vol. 11 No. 3 (2025): IJBE, Vol. 11 No. 3, September 2025
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/ijbe.11.3.734

Abstract

Background: Prior research had predominantly emphasized traditional Structural Equation Modeling (SEM), with limited exploration of dynamic SEM. Yet, dynamic SEM was essential, as it enhanced the precision of real-time consumer behavior prediction. Objectives: This study critically examined recent advances in dynamic SEM, focusing on their effectiveness in improving predictive accuracy, model efficiency, and adaptive decision-making in response to temporal variations in consumer behavior.Design/methodology/approach: A review of peer-reviewed empirical studies published between 2010 and 2025 was conducted. Using predefined inclusion and exclusion criteria, relevant works were retrieved from Scopus and Web of Science. Comparative synthesis highlighted differences between traditional and dynamic SEM applications.Findings/Results: The results demonstrate that dynamic SEM substantially outperforms traditional SEM by incorporating temporal dynamics, capturing interindividual variations, and effectively managing intensive longitudinal data. Its strength lies in analyzing large-scale, high-frequency datasets from digital platforms such as Google Analytics, enabling accurate prediction and monitoring of consumer behavior over time. The study further contributes original constructs - including behaviorally relevant triggers, sentiment indicators, personalization measures, and engagement metrics - thus extending the scope of consumer analytics.Conclusion: Dynamic SEM was shown to exert a transformative impact on consumer behavior research and marketing management by supporting real-time behavioral adjustments and agile decision-making. However, challenges remained regarding its computational capacity with large and complex datasets, underscoring the need for advanced data governance and sophisticated analytical tools.Originality/value: The study evaluated the methodological innovations in a unique and systematic way and gave an advice on how to improve the SEM applications and theory when handling large and complex datasets when dealing with the temporal changes in consumer behavior. Researchers, policy-makers and practitioners were given the actionable recommendations on how to improve and utilize the dynamic SEM as a future-proof marketing analytics approach. Keywords: big data analytics, dynamic structural equation modelling, latent growth modeling, marketing decision-making, temporal dynamics

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