Manufacturing Companies In Indonesia Research Articles

The Influence of Uncertainty, Communication and Employee Passion on Readiness to Change at PT XYZ

Organizational change often brings uncertainty among employees, which can affect their readiness to adapt to the change. In this context, effective communication and employee passion are key factors in reducing uncertainty and increasing readiness to change. PT XYZ, a large manufacturing company in Indonesia, is undergoing a digital transformation through the implementation of a new ERP system aimed at improving work efficiency and effectiveness. This study aims to explore the influence of uncertainty, communication, and passion on employee readiness to change at PT XYZ. The objective of this study is to examine the influence of uncertainty, communication, and employee passion on readiness to change at PT XYZ. This study also aims to identify the most significant factors affecting employee readiness to adapt to the ongoing changes. Thus, it is expected that this research will provide valuable insights for PT XYZ's management in managing change and minimizing employee resistance. Using a quantitative approach, data were collected from 266 employees across various departments and analyzed with the Partial Least Squares (PLS) method. The findings reveal that uncertainty negatively affects readiness to change, while effective communication and employee passion significantly enhance it. Notably, communication effectiveness and employees’ enthusiasm for change emerged as key drivers of organizational adaptability. The study highlights the need for PT XYZ’s management to minimize uncertainty through transparent communication strategies and foster a positive work culture to enhance employee readiness. These insights provide valuable guidance for organizations undergoing similar transformations, emphasizing the critical role of communication and employee engagement in change management success.

Ex-Military Commissioners and Firm Performance: The Case of Indonesia Manufacturing Companies

This investigation relates to the new corporate governance (CG) suggestions that using ex-military commissioners can lead to better firm performance. Quantitative analysis was used to analyze the sample of manufacturing sector public companies. The data comprised 906 firm-years (from 2016 to 2021). This study shows that companies whose CG practices involve employing ex-military officers exhibit high firm performance levels. This study emphasizes the value of using a configurational analytical approach to explore firm jointly- and country-specific CG practices that engage firms to achieve the necessary level of performance. The current study calls policymakers’ attention to evalu- ating the current state of regulatory and competitive development in their countries and establishing policies in line with that assessment. The methodology provides connec- tions between firm performance and CG with retired military commissioners. This study broadens the focus of CG studies to provide effective solutions for practitioners, especially Indonesian manufacturing firms. It also highlights the importance of ex-military commis- sioners in a particular company sector and CG procedures specific to a particular nation. It encourages enterprises to reach the desired level of performance. The research impli- cation relates to good governance in board diversity using ex-military as independent commissioners for supervisory roles.

Proximity Index Value for Supplier Selection Using Compromise Weighting of Stepwise Weight Assessment Ratio Analysis (SWARA) Analytical Hierarchy Process (AHP) and MEREC: A Case Study in Indonesian Leather Industry

Procurement of new raw materials is needed when product demand increases, and raw material suppliers must be determined to meet the company's needs. This research examines what criteria a company needs when selecting criteria using Delphi. The weighting of criteria cannot be separated from the element of the decision maker's subjectivity; therefore, it is necessary to compromise between subjective and objective criteria. Therefore, the study used The Method of Removal Effects of Criteria (objective weighting of criteria) and Stepwise Weight Assessment Ratio Analysis (subjective weighting of criteria) in weighting criteria. Then, considering the weight of the criteria, the Proximity Index Value (PIV) is used to evaluate and rate the suppliers. The offered methodology is applied to a real case study from a leather manufacturing company in Indonesia to verify its applicability with a sensitivity analysis performed on different scenarios. The findings indicated that the proposed model is dependable and that the rankings are resilient to fluctuations in the criterion weights.

Assessing Financial Distress Drivers: Financial Metrics and Corporate Practices in Indonesian Manufacturing Companies

Assessing Financial Distress Drivers: Financial Metrics and Corporate Practices in Indonesian Manufacturing Companies

Scaling Up Tax Strategies: Investigating the Moderating Effect of Leverage on Firm Size, Asset Intensity, and Tax Management

This study examines the relationships between firm size, asset intensity, leverage, and tax management in Indonesian manufacturing companies. Utilizing a panel data approach from 2020 to 2022, the research finds that firm size and asset intensity significantly influence tax management practices, highlighting larger firms' advantages in implementing effective tax strategies. Conversely, leverage does not significantly mediate the relationship between firm size or asset intensity and tax management. These findings suggest that while asset intensity provides firms with opportunities to optimize tax deductions, the impact of leverage on tax management strategies is limited. The research underscores the importance of understanding these dynamics for business leaders aiming to enhance tax efficiency and compliance. Additionally, the study provides practical recommendations for firms and policymakers to improve tax management practices in the manufacturing sector. Overall, the research contributes valuable insights into the factors affecting corporate tax strategies in Indonesia.

Cylinder segment mount modification to reduce cylinder segment downtime problems on curing machines

In tire manufacturing companies in Indonesia, there is a tire production process consisting of material, building, curing, and final inspection. The curing process is the process of changing green tires into tires which takes place in a mold segment at temperature and pressure according to predetermined specifications. On the BOM 63.5 curing press machine there is a segmented cylinder that functions to press the mold segment. The problem that often occurs in curing machines is that the segment cylinder breaks. This causes quite high machine downtime. The number of cylinder segment bolt holes influences the strength of the bolt connection. Therefore, it is necessary to modify the cylinder segment bolt-hole holder so that the bolt can support the cylinder load. The results of this modification can reduce curing machine downtime problems and can increase company productivity. Based on the results of this research, it can be concluded that 6 bolts are safer than 4 bolts. The downtime problem of the cylinder segment after modification decreased by 94%. The previous one was 15181.18 minutes to 1038.11 minutes

Work life balance and pro environmenal behavior on sustainability

This study investigates the impact of work-life balance (WLB) and pro-environmental behavior (PEB) on sustainability outcomes in Indonesia's manufacturing sector. As sustainability becomes increasingly important within industrial settings, understanding the role of human-centric factors like WLB and PEB can offer unique insights into achieving sustainable practices. Data were collected from 278 employees across the top four manufacturing companies in Indonesia. Using Structural Equation Modeling (SEM) via LISREL, the study demonstrates that both WLB and PEB significantly contribute to perceived sustainability outcomes. The results indicate that employees who experience a healthy work-life balance are more likely to engage in behaviors that support environmental initiatives, ultimately enhancing organizational sustainability. These findings suggest that promoting a supportive work environment and encouraging eco-friendly behaviors can facilitate sustainable business practices. The study’s implications highlight the importance of integrating employee well-being into sustainability strategies within manufacturing industries, providing actionable recommendations for managers and policymakers aiming to foster sustainable development.

What is the Impact of Economic Welfare on Social Responsibility Disclosure in Indonesian Manufacturing Companies?

This research was conducted to prove that the economic welfare of the community is related to and has an influence on the existence of corporate social responsibility activities. The findings in this study assume the existence of the Covid-19 as a period that has an impact on the global crisis. The effects of the global crisis caused companies to experience a decline in net sales, and policies on corporate social activities changed. This study tries to link the variables of public ownership and net sales of companies to disclosure of social responsibility and the economic welfare of the community. The sampling design in this study uses a list of manufacture companies included in the Kompas 100 index list for two consecutive years, namely 2020 and 2021, which is the period when the health crisis in Indonesia began. The results of this study are that the variables of public ownership structure and net sales index have a significant relationship with social responsibility disclosure. However, the disclosure of social responsibility is not significant to economic welfare. Public ownership brings the company more attention from the surrounding community. Meanwhile, sales growth is used as a company measure to satisfy company owners and benefit the community. With company policies that benefit the community, supporting the government improves economic welfare. Keywords: CSR disclosure, public ownership, net sales, economic well-being

Determinants Of Dividend Policy: Evaluating The Role Of Profitability And Leverage In Indonesian Manufacturing Companies

This study aims to analyze the effect of profitability and leverage on dividend policy in manufacturing companies listed on the Indonesia Stock Exchange. The analysis method used is path analysis using the SmartPLS application. The data used comes from the financial reports of Manufacturing Companies listed on the Indonesia Stock Exchange for the 2019-2022 period. The results show that profitability has a positive and significant effect on dividend policy, while leverage has a negative and significant effect on dividend policy. Thus, Manufacturing Companies listed on the Indonesia Stock Exchange need to consider profitability and leverage in determining dividend policy.

Determinants of Income Smoothing Practice in Indonesian Manufacturing Companies

Determinants of Income Smoothing Practice in Indonesian Manufacturing Companies

Value Creation and Stock Prices: A Case Study of Indonesian Manufacturing Companies

The study aimed to investigate the financial performance with the proxy of economic value added and market value added in influencing the stock price of manufacturing companies from 2014 to 2023. The study used a quantitative approach method. The sampling technique used is a non-probability sampling technique with a sample of 41 companies. The study uses secondary data from company financial reports and other supporting data. The study tested regression data using panel data by conducting the estimation model testing stage for the common, fixed, and random effect models through the Chow and Hausman tests. The model used in this study is a random effect, which is included in the Generalized Least Square (GLS) method in the Eviews12 application. The research findings show that the economic and market value-added variables partially and simultaneously affected stock prices in manufacturing companies from 2014 to 2023.

Dokumen Software Requirement Specification Sistem Informasi Akuntansi Biaya (Studi Kasus PT. ABC)

This research focuses on the design and development of a Software Requirements Specification (SRS) document for the Cost Accounting Information System at PT. ABC, a rubber manufacturing company in Indonesia. In an effort to enhance the company's efficiency and productivity, this SRS document is prepared based on the international standard ISO/IEC/IEEE 29148:2018, which covers essential aspects such as functional requirements, performance, usability, interfaces, and others. The large number of business processes carried out manually, especially in the scope of cost accounting, means that the absence of an integrated cost accounting information system is one of the main factors preventing PT. ABC from achieving optimal efficiency in its business processes. In the context of the manufacturing industry, cost accounting plays a crucial role in controlling production costs, overhead, raw materials, and indirect labor. The results of this research will produce several modules, including factory overhead cost transactions, raw material cost transactions, direct labor cost transactions, manufacturing goods transactions, finished goods transactions, purchase return transactions, sales transactions, component purchase transactions, component mastering, position mastering, user mastering, cost mastering, supplier mastering, employee mastering, raw material cost reports, factory overhead cost reports, direct labor cost reports, cost of goods sold reports, cost variance reports, budget cost reports, and profit and loss reports.

Integrated Management System To Improve Corporate Sustainability Performance The Case Study In The Pharmaceutical Manufacturing Industry

This study aims to investigate the mediating factors of achieving quality, environmental and social performance concerning the sustainability of pharmaceutical manufacturing companies. Effective implementation of an integrated management system is essential in achieving business process performance to improve the company’s sustainability performance. The priority of the pharmaceutical industry is to satisfy the requirements of quality assurance and product safety. Thus, a balance is required toward implementing an integrated management system. This research was conducted in one of the pharmaceutical manufacturing companies in Indonesia. Data were collected using questionnaires and interviews with respondents and analysed using generalised structural component analysis (GSCA). Results of this study show that implementing an integrated management system can improve social performance and corporate sustainability. The implications of this study indicate that the balanced implementation of the integrated management system has not been effectively achieved. Consequently, a strategy is required to evaluate the quality and environmental performance achievements and to improve the implementation of the integrated management system in a balanced manner.

Green Finance and CSR: Effects on Firm Value

This study investigates the impact of sustainability reporting, green financing, corporate social responsibility (CSR), and environmental auditing on firm value and risk management in Indonesian manufacturing companies. Using a quantitative approach, data was collected from 100 manufacturing companies through a structured questionnaire based on a Likert scale. Data were analysed using SEM-PLS 3 to assess the relationship between variables. The findings show that all factors studied - sustainability reporting, green financing, CSR, and environmental auditing - positively and significantly influence firm value and enhance risk management practices. These results underscore the importance of integrating sustainable practices into corporate strategy to enhance firm value and effective risk management. The implications of these findings suggest that firms should prioritise sustainability initiatives as a key component of value creation and risk mitigation strategies in Indonesia's competitive manufacturing sector.

Good corporate governance, firm performance and COVID-19

PurposeThis research is designed to analyze the effectiveness of the audit committee, nomination and remuneration committee, and ownership structure on company performance and how COVID-19 moderates the influence of these governance mechanisms on company performance.Design/methodology/approach437 annual reports of Indonesian manufacturing companies from 2018 to 2021 were used as research samples using multiple regression analysis and moderated regression analysis.FindingsGood corporate governance plays a role in improving company performance. The presence of COVID-19 affects corporate governance, thereby reducing performance, but good corporate governance can limit this impact.Practical implicationsThis research helps companies understand the effectiveness of the supervisory function in improving company performance. This research provides input for companies, regulators, and policymakers to pay attention to good corporate governance, especially when facing a crisis.Originality/valueTo my knowledge, research that examines corporate governance mechanisms and company performance related to COVID-19 and investigates whether COVID-19 moderates the influence of corporate governance mechanisms on company performance has never been conducted.

Women on boards, corporate environment responsibility engagement and corporate financial performance: evidence from Indonesian manufacturing companies

PurposeThis study aims to investigate the role of women in business leadership, specifically the effect of women on boards (WoB) on corporate environmental responsibility engagement (CERE) and corporate financial performance (CFP) in the Indonesian manufacturing companies. Furthermore, it also examines whether CERE mediates the WoB – CFP relationship.Design/methodology/approachThis is quantitative research using secondary data obtained from the Indonesian Stock Exchange and the website of each company. Using agency theory, upper echelon theory and sustainability theory, 645 firm-year data from the period of 2015–2019 are analysed. The partial least squares structural equation modelling is used to test the hypotheses studied.FindingsThe results indicate that WoB is positively associated with CFP and CERE, CERE is positively associated with CFP and CERE mediates the effect of WoB on CFP. The samples are derived from the manufacturing industry; thus, it limits its generalisation. The result implies that investors need to increase the proportion of WoB to enhance CFP. For management, it implies that WoB has an important role in increasing environmental responsibility. For regulators, such as the Indonesian Financial Service Authority, it provides useful information for policymaking in terms of increasing the proportion of WoB and the need for a sustainability report. With increased WoB and CERE, CFP will be better so that society will also gain increased social benefits.Originality/valueTo the best of the authors’ knowledge, the topic is rarely investigated, especially in the two-tier governance system that uses WoB, CERE and CFP. By investigating the impact of women’s presence on the board of commissioners and the board of directors, this research provides crucial empirical evidence for the agency theory, upper echelon theory and sustainability theory. A new data set also has been created for this research.

Sustainable Digital Transformation: Its Impact on Perceived Value and Adoption Intention of Industry 4.0 in Moderating Effects of Uncertainty Avoidance.

Industry 4.0 is a significant technical revolution that combines big data analytics, the Internet of Things (IoT), and cyber-physical systems to improve manufacturing productivity. This study investigates the impact of digital trust and sustainable attitude on perceived value and the intention to adopt Industry 4.0 technologies. It also examines the moderating role of uncertainty avoidance in these relationships. Data were collected from 189 employees of leading manufacturing companies in Indonesia that are recognized for their Industry 4.0 practices. The data were analyzed using Partial Least Squares (PLS) methodology with SmartPLS software to test the proposed hypotheses and explore the moderating effects. The findings reveal that both digital trust and sustainable attitude significantly influence perceived value. However, these factors do not directly affect the intention to adopt Industry 4.0 technologies. Uncertainty avoidance moderates the relationship between digital trust and adoption intention. Specifically, in environments with high uncertainty avoidance, digital trust becomes a critical factor influencing the decision to adopt Industry 4.0 technologies. The study provides valuable insights for organizations aiming to implement Industry 4.0 initiatives. It highlights the importance of fostering digital trust and considering cultural dimensions, such as uncertainty avoidance, in their technology adoption strategies.

Differences in the influence of the board of directors and the board of commissioners on real earnings management: empirical evidence from Indonesia

Purpose – This research investigates the influence of the Board of Directors (BOD) and the Board of Commissioners (BOC) on real earnings management (REM) practices in Indonesian manufacturing companies. Real earnings management involves genuine alterations to operational decisions that affect financial reporting.Design/methodology/approach – The research uses a sample of manufacturing firm listed on Indonesia Stock Exchange (BEI) from 2016 to 2022 and uses panel data regression techniques, including the Pooled Least Square (PLS) and Fixed Effect Model (FEM), to examine the effects of BOD and BOC characteristics on REM. The empirical analysis considers multiple proxies for BOD and BOC attributes, such as board size, independence, meeting frequency, and expertise. Additionally, control variables including leverage, firm size, and growth indicators are incorporated into the analysis.Findings – The findings reveal a significant positive relationship between the presence of BOD and REM activities. In contrast, the presence of BOC demonstrates a non-significant but negatively associated impact on REM. Furthermore, the research identifies the moderating role of BOC in strengthening the relationship between BOD and REM.Research limitations/implications – The research contributes to the existing literature by providing empirical insights into the roles of BOD and BOC in shaping REM practices within the Indonesian manufacturing context. These findings highlight the importance of board characteristics in influencing financial reporting decisions and emphasize the need for effective corporate governance mechanisms to mitigate opportunistic behaviors related to earnings management.Practical implications – Enhancing corporate governance practices, provide an input for more effective board composition, increase the investor confidence and transparency, enhance policy implications and provide advice for company’s long-term performance focus.Originality/value – This research addresses a gap in the literature by focusing on the Indonesian context. Use the BOC to moderate the relationship between BOD and REM may be less common in the context of Indonesia and even in regional focus.

Green Accounting and Earnings Management In Indonesian Manufacturing Companies

Green Accounting and Earnings Management In Indonesian Manufacturing Companies

Kekuasaan dan Konflik Dalam Organisasi

This research aims to understand the dynamics of power and conflict in organizations through a qualitative study. Data was collected through participant observation, in-depth interviews, and document analysis at a manufacturing company in Indonesia. The research results show that power in organizations is complex and multidimensional, with various sources and forms. Conflict arises as a consequence of struggles over resources, differences in interests, and disagreements about norms and values. This research contributes to the understanding of how power and conflict are interrelated in organizations. These findings also provide implications for management practice, highlighting the importance of effective leadership, open communication, and fair conflict resolution mechanisms.