Enterprises In Indonesia Research Articles

The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia

PurposeThe purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable.Design/methodology/approachQuantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents.FindingsThere is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher.Originality/valueThe originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.

CORPORATE INCOME TAX OF SMALL MEDIUM ENTERPRISE (SME)

Tax is recently getting the most important income source for the country. In the case of Indonesia, every year the government has increased the annual target of tax income, but it has not been easily and successfully to achieve. In 2013 the government wishes to target the sources of income tax deriving from that small and medium business scale. The research which focuses on the medium scale of corporate tax payer business, would like to see and evaluate implementation of Government Regulation number 46, year 2013 (PP 46/2013), by doing simulation and regression analysis. Those corporate tax payers with the annual sales of around Rp. 7,000,000,000,- seems to be facing a dilemma situation to whether or not to comply with. Particularly since this government regulation does not take into consideration the impact to the tax payers cash flow when financial trouble is being faced and even at the time the companies run in loss situation. It seems it has been the time for the government to review the effectiveness of this regulation, how is being implemented across the country, especially by those corporate tax payers who are preparing book keeping and submitting tax report. The issue of accuracy, accountability and financial engineering follows the implementation of creativity accounting and tax accounting treatment, should have been the concern of the tax office. The idea and advices of mandatory audited financial report is prominent in this research, in order to reach the more targeted collecting tax fund from this class of enterprises in Indonesia.

Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

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.

Analysis of the Determinants of Micro Enterprises Graduation

Micro Enterprises (MEs) account for 55.86 million or 98.9% of total enterprises in Indonesia employing more than 90% of its people, but almost all MEs never graduate to Small Enterprises (SEs). This study aims to analyze the determinants and design the model of MEs graduation using field survey, Structural Equation Modeling (SEM) and Strategic Assumption Surfacing and Testing (SAST) methods. Survey results reveal that MEs and SEs (MSEs) are home/shop operated informal business in manufacturing or trade sectors, which is easy to enter/exit with simple technology; operated by low educated and lack experience people, or by educated entrepreneurs; financed by their own capital; and knowledgeable about their products but having problems to win the market. Unstable macroeconomic conditions and lack of external supports could not stop them to survive. They are in dire need of any kind of assistances, especially managerial, financial, technical, marketing, entrepreneurship, leadership and mindset change. SEM results show that the main determinants of ME graduation are Standard Operating Procedure and Information Technology (MANAGEMENT Know-how), Market (BUSINESS Characteristics), Infrastructure and Macroeconomic Condition (EXTERNAL), and Family Support (SUPPORT). Other important determinants are Visionary, Entrepreneurship and Business Experience (OWNER of Business) and Skilled Human Resources (RESOURCES). Most MSEs do not have the main key factors to success and graduate. Religious Islamic characteristics, do not emerge as the main key success factors of ME graduation. However, they are necessary factors, such as Spiritual uplift, Trustworthy (Amanah), and Truthful (Siddiq). SAST results show that the most important policies needed by MSEs are price stability and infrastructure (EXTERNAL), capital and financing support (SUPPORT), easy & cheap way of doing business and strategic location (BUSINESS Characteristics), easy & cheap access to finance & raw material and availability of appropriate technology (RESOURCES).

The effect of person-organization fit and hardiness on turnover intention among graduate trainee of a private palm oil enterprise in Indonesia

Turnover is a critical issue for companies because of its negative impact on companies, such as recruitment costs, training costs, low productivity, and operational disruption. Turnover intention has been acknowledged as the best predictor of actual turnover, hence, the importance of studying turnover intention. Most of the private palm oil enterprises in Indonesia offer trainee programs as their recruitment strategy for operational employees. Training programs are designed to help recruited fresh graduate to adapt to the company's culture and their job role. Training programs are mostly 3-6 months in length, and adapts semi-military concepts. Most of the trainees are reported to experience difficulty in following the semi-military training and adapting to the company's culture due to misfit and incapability to handle stressful situation. This study aims to measure and analyze the effect of person-organization fit and hardiness on graduate trainee's turnover intention in one of Indonesia’s Private Palm Oil Enterprises. This research uses quantitative approach with multiple linear regression analysis method. The sample size of this study is 103 graduate trainees who were taking part in the orientation training program within the enterprise. The result of study indicates there is a negative influence of person-organization fit and hardiness together on turnover intention with an effective contribution of 62.4%.

PERAN PERKEMBANGAN TEKNOLOGI DIGITAL PADA STRATEGI PEMASARAN DAN JALUR DISTRIBUSI UMKM DI INDONESIA

The aim of this study is to describe the interchanging role of digital marketing and traditional marketing as the key marketing strategi and marketing mix of the Small Medium Enterprise in Indonesia. The study using qualitative descriptive methods with case study ‘Kepiting Nyinyir’, one of Small Medium Enterprise in Jakarta. The result of this study found significant role of digital technology supported the distribution channel of Small Medium Enterprise to expand the business. Digital marketing as the new concept and perspective is interchanging the role of traditional marketing by balancing online and offline activities. The interchanging role of digital marketing and traditional marketing showed shifting in marketing strategy, from segmentation and targeting to customer community confirmation, brand positioning & differentiation to brand clarification of character and codification, tactical marketing mix (product, place, price & promotion) to connected marketing mix (co-creation, communal activation, currency & conversation).

Sludge removal enterprises in Indonesia: factors affecting entrepreneurial success

Abstract Faecal sludge removal is critical for the long-term functionality of on-site sanitation facilities and sustained sanitation outcomes. Private enterprises are important players in providing sludge removal services in Indonesia and other countries where government does not do so. However, the extent to which sludge removal entrepreneurs can fulfil this role depends on the viability, or success, of their enterprises. This paper investigates factors linked to the success of sludge removal enterprises in Indonesia, including traits of the entrepreneurs, characteristics of the enterprises and contextual challenges. These factors and levels of success were examined from data collected from structured interviews with 24 sludge removal enterprises across six cities in Indonesia. This research found that higher levels of success were significantly associated with entrepreneurs that had previous work experience of any kind, made higher upfront investments and did not involve their family members in the management of the enterprise. Participants most frequently identified high costs of capital, high levels of competition and insufficient time to spend on the enterprise as challenges to success. These findings provide important evidence for how civil society organisations and governments in Indonesia and elsewhere may best provide a conducive enabling environment for enterprise roles in sludge removal.

The Role of BDS-P in Gap Reducing SMEs and Large Enterprises in Indonesia

Micro-, small-, and middle-scale Enterprises (SMEs) in Indonesia contribute substantially to national economy, however the existence of SMEs itself encounters problems inhibiting its performance and business capability; on the other hand, government gives limited help in dealing with many problems the SMEs encounter. The existence of Business Development Service-Provider (BDS-P) is an alternative solution to help SMEs develop their business and reduce the gap between large enterprises and SMEs in the term of productivity, ability in accessing market, accessing information, using technology, and in accessing funding sources, so that SME can contribute to economic growth, job opportunity fulfillment, and poverty alleviation in Indonesia.

Design for Supplier Performance Assessment Model of Information Technology Service Provider in Small Medium Enterprises in Indonesia

This study aims to design a supplier performance assessment model for information technology services provider in small medium enterprises (SME) in Indonesia. Supplier performance assessment is important to improve supplier performance and maintain long-term relationships between SME (buyer) and their suppliers. This supplier Assessment models are developed based on the review literature and interviews with procurement staff in SMEs. Performance assessment criteria are identified and tested for validity by providing a questionnaire to procurement section in SMEs. In order to obtain importance weight of each criteria toward performance score, a questionnaire to weighed the criteria are distributed to procurement staff and analyzed the answers using the Analytical Hierarchy Process (AHP) method. The final performance score is calculated based on the standardized value of each criteria multiplied by its weight. Based on the implementation of this model in SMEs, it is known that the proposed model is suitable to assess the supplier’s performance and greatly help the SMEs in managing the performance of their suppliers.

Empowering the role of village owned enterprises (BUMDes) for rural development: case of Indonesia

Poor economic condition, unemployement, quality education and lack of other basic infrastructures are the common problems of rurals in Indonesia and in many other countries. The rural potentials have not been optimally explored, hence a place to birth it becomes instead of to live.  The government has actually tried several programs for rural economic development, for example by providing more facilities and infrastructure, even creating project PNPM (Program Nasional Pemberdayaan Masyarakat/National Program for Community Empowerment).  However, the implementation and effect of these programs have been put into question.  In Indonesia, this economic institution is BUMDes (Badan Usaha Milik Desa/ Village Owned Enterprise), the pillars of rural economic activity, serves as a social and commercial institution. This paper aims to explain how to strengthen the role of village owned enterprise for its role in rural development. Using qualitative approach, this study indicates that village owned enterprise is projected to be new economic strength in rural development in Indonesia and that the rural government can improve the role of village owned enterprise not only as a government’s fund mediator but also as a facilitator to promote the rural economic activity properly through value addition. The paper aims to generate new insight of the role of village owned enterprise in Indonesia and its consequence to rural development.

Innovation Driven Enterprise, Sustainable Business and Firm Financial Performance

Innovation should be followed by profitable commercialization to have a sustainable business. Teece (1986) identified that it is often not the innovator who introduces a new process, product or service who profits the most from an innovation, but instead suppliers, cooperators, customers and competitors. In emerging markets, especially in Indonesia, it is challenging to do innovation due to the lack of infrastructure. This study explores innovation-driven enterprise relationships with firm financial performance measures by firm profitability. To identify the innovation-driven enterprise financing capabilities and innovation, the study used company age, RaD expense, sales, sales growth, debt ratio and retained earnings as independent variables. Firm profitability performance was measured by return on assets (ROA). RaD expenses of innovation-driven enterprises had a positive correlation with firm financial performance. Sales and retained earnings had a positive correlation with RaD expense. However, company age, debt ratio and sales growth had a weak negative correlation with corporate innovation activities. Retained earnings had a positive correlation and was the biggest determinant of firm profitability. It was shown that innovation-driven enterprises in Indonesia are financing their innovation with retained earnings (internal financing) and not debt (external financing).

How the Implementation of the Industrial Revolution 4.0 Management Information System Influenced Innovation: The Case of Small and Medium Enterprises in Indonesia

Management Information System is a planning system in an organization that involves management of internal controls such as the use of resources, documents, technology, and management accounting as one of the strategies in business. Management information systems in the business or corporate world aim to collect, process, store and analyze information and then disseminate it for specific purposes. Management information systems function as a reference for decision making in an organization or company and management functions are applied in business. The difference in information requirements will lead to different data that must be entered and the management information system format used. Reality states that many management information systems in various government and private institutions have various problems including integration issues, ease of use, ease of access, ease of adaptation to changing conditions and the ability to produce management information as needed. The purpose of this study was to determine how much the application of the industrial revolution 4.0 management information system influenced innovation. This method is a descriptive and verification method, the analytical tool is structural equation modeling (SEM, Lisrel). The results showed that innovation affected the implementation of the industrial revolution 4.0 management information system.

Oil Palm Plantation Enterprises in Indonesia: Observed from Data on Amendment of Their Corporate Charters until the End of the 20th Century

Oil Palm Plantation Enterprises in Indonesia: Observed from Data on Amendment of Their Corporate Charters until the End of the 20th Century

The impact of financial liquidity and leverage on financial performance: Evidence from property and real estate enterprises in Indonesia

The impact of financial liquidity and leverage on financial performance: Evidence from property and real estate enterprises in Indonesia

Desire and climate on employee performance – a study on plantation state-owned enterprise in Indonesia

Motivation and work environment play a major role in optimizing the employee performance. Investigating the influence of achievement motivation and organizational climate on employees’ performance is the main goal of this study. Furthermore, the survey method is used by this study. Meanwhile, the data were analyzed by using Partial Least Square. The study sample consisted of 226 employees who work in Plantation State-Owned Enterprise. The samples were taken with simple random sampling technique. The result shows that motivation and organizational climate have an influence on work performance. In summary, the organizational efforts are fundamental in increasing employee achievement motivation and creating conducive organizational climate. As a result, the employee performance can reach the optimum level.

Linking human capital and enterprise sustainability in Indonesian medium-sized food manufacturing enterprises: the role of informal knowledge sharing practice

Medium-sized food manufacturing enterprises in Indonesia are significant in a number of contexts, in terms of their part to the national production (GDP) and their establishment to the employment. In term of their role to national production, manufacturing sector contributes the highest GDP by 85%. In this sector, food manufacturing subsector contributes the highest GDP. Nevertheless, they faced the same common problems: quality of human capital and sustainability issues. Previous government supplementary programs have been established to expand the human capital capability amongst medium enterprises. Adequate amount of fund has been apportioned to develop human capital, though, the medium enterprises sustainability is still in question. This study proposes and examines the human capital role from informal knowledge sharing perspective. By conducting qualitative approach through interviews to four informants in Indonesian medium-sized food manufacturing enterprises, a set of hypotheses is derived from this study for future quantitative study. This study indicates that human capital traits (diverse education background, employee skills, and employee experience) could leverage the practice of informal knowledge sharing. Constructs such as mutual trust and reciprocal intention could play as mediating variables, and cultural interpretation perspective could act as moderating factor to informal knowledge sharing effectiveness. In final, informal knowledge sharing is indicated to play as moderating variable for human capital policy and practice to support enterprise sustainability.

Strategic Implementation of Environmentally Friendly Innovation of Small and Medium-Sized Enterprises in Indonesia

This study aims to empirically test the influence of market orientation strategies, and value co-creation on green product innovation, and also to test the value co-creation and green product innovation on marketing performance in the context of Micro Small and Medium Enterprises (SMEs) in Yogyakarta, Indonesia. The study distributed questionnaires to 464 SMEs’ entrepreneurs. By using Structural Equation Modeling (SEM) as analytical tool, the results show that market orientation, value co-creation positively affect green product innovation in the context of small and medium-sized enterprises. In addition, the results of this study also show that value co-creation, and green product innovation have a positive effect on marketing performance.

Government subsidy, strategic profitability and its impact on financial performance: empirical evidence from Indonesia

This paper examines the moderating impact of capital structure on the relationship between government subsidy, strategic profitability and financial strength of state-owned enterprises in Indonesia. A purposive sampling is used and data were collected from seven state-owned enterprises over the period of 2005 to 2016. The empirical evidence provided by this paper indicates that government subsidy has a significant negative impact on the financial strength, which means that the state-owned enterprises are difficult to manage the company independently if the government continues to provide subsidies or additional capital. This study also found that strategic profitability has a significant positive impact on the financial strength, which means there are opportunities for management to perform profitability practice of earnings management as strategic to enhance the level of financial strength of the company. However, capital structure is strengthening the relations of ‘government subsidy’ and ‘real earnings management’ with the financial strength. So far, it is still little known how ‘capital structure’ affects the relationship between government subsidy and financial strength, specifically in the case of state-owned enterprises.

“SIWANPEKERJA” : THE INFORMATION SYSTEM OF ENTREPRENEURSHIP, THE TRADITIONAL REGIONAL FOOD SPECIALTIES (KERUPUK, RENDANG AND SANJAI) IN PAYAKUMBUH.

A bstract The paper is based on research results on Small and Medium Enterprises in Indonesia where its scope in Payakumbuh city of West Sumatra Province. A survey conducted in 2014 until early 2015 in some units of small and medium enterprises in the city Pakumbuh include traditional food business; crackers, Sanjai and rendang. The business is still run by the traditional and still do not have an integrated information system that is adequate and do not have a database that is useless for mapping potential areas of culinary tourism, business development to the continued efforts of government assistance. The system will be built to collect all data about them in the Enterprise Information System Crackers, Sanjai and Rendang (Siwanpekerja). Data were analyzed with a system of SDLC (System Development Life cicle) that encapsulates the actors involved in this project. The Actors are ; U ser system from a cottage industry entrepreneurs, S ellers, B uyers and G overnments are summarized in an integrated information system that Payakumbuh has the most complete database in the development of culinary tourism in Indonesia . The results obtained in this study is in the form of an information system "Siwanpekerja" to accommodate the actors to belong in a database so Payakumbuh government and the Small and Medium businesses benefit greatl . Conclusion of "Siwankapus" has certain advantages, namely; facilitate the provision of assistance from the government, facilitate marketing, and entrepreneurial development for the future Keywords : Information System, T raditional F ood , C ulinary T ouris m,

FAKTOR KUALITAS KEHIDUPAN KERJA DAN KETERLIBATAN KARYAWAN

Efforts to realize the performance of SOEs is a very urgent requirement. This is related to the state ministry in Indonesia stakeholder‟s strategic plan 2012-2014. One important element in achieving this is improving the Quality Planning, Human Resources and Financial Management that can act as a surveillance tool as well as performance drivers. Therefore, through this study has explored: (1) the quality of work life, such as career plane, (2) organizational citizenship behavior, such as work ethic issues, and (3) employee engagement, such as remuneration policy issues. The research was conducted by applying a survey of 429 people Associate Manager at 141 state-owned enterprises in Indonesia. Data was collected by indirect communication techniques through instruments such as questionnaires and interview techniques through limited direct communication and documentation study. The study was conducted from January 2011, which ended December 31, 2012. The data processing techniques with descriptive analysis, the weighted mean score and inferential analysis of the Structural Equation Modeling (SEM). The results showed that: (1) Quality of work life, organizational citizenship behavior, employee engagement in SOEs in Indonesia showed a good condition, but not optimal, (2) quality of working life and organizational citizenship behaviors have a positive and significant effect on state employee engagement in Indonesia. The implications of this research, requiring hard work of the managers at levels 1 and 2 under the above directors and executive managers, to accommodate the interests of the manager as agent, and as the principal stakeholder‟s interests. Requires wisdom and policy decisions to implement the system of participation button up and participation from the top down. Keywords: quality of work life, employee engagement