Industrial Subsectors Research Articles

Financial Ratios and Financial Distress: Evidence from Indonesian Industrial Subsectors

Financial Ratios and Financial Distress: Evidence from Indonesian Industrial Subsectors

Changes in shopping habits during COVID-19.

By the start of 2020, the daily and business world had to undergo a radical change with the widespread pandemic known as COVID-19. Many people had to replace their everyday purchase medium to meet the enforced restrictions, and local businesses had to adjust their operations to accommodate the negative impacts brought upon by the disease's rapid spread. Groceries and FMCG sub-sectors of the retail industry were forced to adapt to consumers' stockpiling and panic-buying behaviors. We studied the impact of similar purchase attitudes for various product groups during the COVID-19 and probed the differences between sales of online and physical markets. Initially, a cluster analysis identifies which product groups were affected by similar shopping behaviors during the pandemic. Subsequently, the impact of the number of COVID cases on sales levels was measured using stepwise, lasso, and the best subset models. All the models were applied to both physical and online market datasets. The results showed a significant shift from the physical to the online markets during the pandemic. These findings can provide an essential guideline to retail managers in adapting to the new world.

Total-factor energy efficiency of ten major global energy-consuming countries

Improving energy efficiency is regarded as a key path to tackling global warming and achieving the Sustainable Development Goals (SDGs). In 2020, the energy consumption of the world's ten major energy-consuming countries accounted for 66.8% of the global total. This paper applied data envelopment analysis (DEA) to calculate these ten major energy-consuming countries' total-factor energy efficiency (TFEE) at national and sectoral levels from 2001-2020, and explored the influencing factors of total-factor energy efficiency with the Tobit regression model. The results showed significant difference in the ten countries' energy efficiency. The United States and Germany topped the list for total-factor energy efficiency, while China and India were at the bottom. Meanwhile, the energy efficiency of the industrial subsector has increased significantly over the past two decades, while that of the other subsectors has been relatively flat. The industrial structure upgrading, per capita GDP, energy consumption structure, and foreign direct investment had significant impacts on energy efficiency with national heterogeneity. Energy consumption structure and GDP per capita were determinative factors of energy efficiency.

THE EFFECT OF CELEBRITY ENDORSER AND PRICES ON THE JGLOW PRODUCT PURCHASE DECISION PROCESS

This research was conducted based on data on the increasing contribution of the creative industry sub-sector of Bandung City to PDRB in 2018 to 2020. The research method used is descriptive and verification method with a total sample of 100 respondents. The data analysis method used is multiple linear regression analysis, multiple correlation and coefficient of determination. The results showed that there was a positive and significant influence between celebrity endorser and price on the purchasing decision process. The magnitude of the influence of celebrity endorser and price on the purchasing decision process simultaneously is 53.4% and the remaining 46.6% is influenced by other variables not examined. Partially the magnitude of the influence of celebrity endorsers on the purchasing decision process is 9.4% and the influence of price on the purchasing decision process is 44%, so it can be concluded that the price has the greatest influence on the purchasing decision process.

An Emerging Era of Artificial Intelligence Research in Agriculture

According to the Food and Agriculture Organization (FAO) of the United Nations, it is projected that the global population will increase by an additional 2 billion individuals by the year 2050. However, the FAO also predicts that only a mere 4% of the Earth's total surface area will be utilized for agricultural purposes. Advancements in technology and innovative solutions to existing limitations in the agricultural sector have facilitated a notable enhancement in agricultural efficiency. The extensive utilization of machine learning and Artificial Intelligence (AI) within the agricultural industry may potentially signify a significant turning point in its historical trajectory. The utilization of AI in farming presents a range of benefits for farmers, including enhanced productivity, reduced expenses, improved crop quality, and expedited go-to-market strategies. This study aims to explore the potential applications of AI in various subsectors of the agriculture industry. This study delves into the exploration of future concepts propelled by AI, while also addressing the anticipated challenges that may arise in their applications.

Management Information System and Performance of Cement Firms in Southeast Nigeria

Purpose: The study examined how management information system influences the performance of cement-producing firms in Southeast Nigeria. Specifically, the influence of the transaction processing system, decision support system and executive support system on firm performance was assessed. Research methodology: The research design deployed in the study was a descriptive survey while the population of the study compromised 143 staff in the accounting and management information system departments of the selected four (4) cement companies in Southeast Nigeria. Yamane formula for sample size was applied in determining the sample size of 141 out of the population size of 143. The researchers collected primary data using a structured questionnaire administered to the respondents. Pearson Product Moment Correlational analysis was applied to establish the relationship between the variables of the study at a 5% level of significance. Results: Transaction processing system, decision support system and executive support system have a significant and positive effect on the firm performance of cement-producing companies in Southeast Nigeria. Limitations: The results are more fittingly applicable to only cement manufacturing companies. Therefore, they cannot be generalized to other sub-sectors of the Nigerian manufacturing industry. Also, the findings are valid to the extent that the responses to the questionnaire are free from bias. Contribution: The study contributes to knowledge by filling the gap created by the lack of empirical research that uncovers the influence of management information systems on the performance of cement manufacturing firms in the context of Southeast Nigeria.

Analysis Determinants of Firm Value Going Public

<em><span>The aim of this research is to analyze GGC, company size, profitability affect firm value with CSR as moderation. The population is Food and Beverage Industry Sub-Sector Companies Registered in the 2016 – 2022 using purposive sampling, 27 companies were obtained as research samples. The data were processed by multiple regression analysis with the help of the IBM SPSS Statistics 26. The results showed: 1) GGC, size, profitability had a positive and significant effect on firm value. 2) CSR is able to moderate the influence of GGC, size, profitability on firm value.</span></em>

The China effect on the productivity in Nordic countries

Using a linear panel data model with a fixed-effect estimator, this article investigates the causal effect of the growing use of Chinese intermediates on the labour productivity growth in Nordic manufacturing production processes. The main result – based on changes within more than 70 global value chains during the period 2000–2014 – is that the effect is positive and economically relevant. This productivity effect exists before and after the financial crisis, in all Nordic countries, and is well-spread among the sub-sectors of the manufacturing industry. The effect is mainly caused by reduced employment, not increased value added. This employment effect appears both in the manufacturing sub-sectors themselves and along their domestic supply chains. Finally, China does not seem to be special: the productivity effect of the growing use of Eastern European intermediates is equally pronounced.

Forecasting the energy intensity of industrial sector in China based on FCM-RS-SVM model.

Analysis of industrial energy intensity is greatly significant in China specifically from the perspective of sector heterogeneity due to considerably different levels of energy utilization in various industrial sub-sectors. This study proposes a new methodology to forecast energy intensity in industrial sub-sectors, considering the complexity of the socioeconomic system. This research collects the data of 36 industrial sub-sectors in China and combines fuzzy C-means clustering (FCM), rough set (RS) and support vector machine (SVM) to predict the energy intensity of industrial sub-sectors in 2030. First, this method classifies all the industrial sub-sectors according to energy intensity level and identifies the main factors that affect the energy consumption of the industrial sub-sectors. Second, the resulting classification paves the way for specifying models to forecast energy consumption. Finally, scenario analysis predicts the energy intensity of each industrial sub-sector in 2030. This exploration has the following results. (1) Energy intensity has significantly different trends in various industrial sub-sectors. For example, industrial sub-sectors with low energy intensity mainly belong to the manufacturing industry (S06-S33). In contrast, the medium- and high-energy intensity categories mainly belong to the mining industry (S01-S05) and energy extraction and supply industry (S34-S36). (2) The critical factors affecting industrial energy consumption are fixed assets, R&D investment, and labor investment. (3) By 2030, the energy intensity has a downward trend in various industrial sub-sectors in China. The scenario analysis implies that China's energy intensity would reach the current world average level under the low-speed development scenario. Also, China's energy intensity would reach the current world advanced level under the medium-speed or high-speed development scenario.

The Influence of Information Asymmetry, Profitability and Company Size on Earnings Management in Companies in the Goods and Consumption Industry Sector Listed on the Indonesian Stock Exchange for the 2016-2020 Period

This study aims to determine the effect of information asymmetry, profitability and company size on earnings management in companies listed on the Indonesia Stock Exchange for 2016-2020 period. Several previous studies on earnings management have shown different results. Therefore, other studies need to be conducted to re-test the theory of earnings management. The population of this study were 53 companies in the consumer goods industry sub-sector. The sampling method used is the purposive one, so that 22 sample companies are obtained for the five years of monitoring with 86 results (observations). Research data were obtained from sample companies downloaded from the Indonesia Stock Exchange website. The data analysis techniques used are descriptive statistical analysis and multiple regression analysis. The data analysis processes carried out first are descriptive statistics, classical assumption test, multiple regression analysis and then hypotheses testing. The results of this study partially show that only profitability has a significant effect on earnings management, while information asymmetry and company size have no effect on it. The results of this study simultaneously show that information asymmetry, profitability and company size have a significant effect on earnings management.

The Effect of Managerial Ownership, Debt Angreements and Litigation Risk on Accounting Conservatism

The purpose of this study was to examine the effect of managerial ownership, debt covenants, financial distress and litigation risk on accounting conservatism. The population in this study consists of manufacturing companies, and consumer goods industry sub-sectors listed on the Indonesia Stock Exchange in 2015-2018. A sample of 12 companies used in this study was determined by the purposive sampling method. The data used is secondary data. Data analysis was carried out with descriptive statistics using panel data regression analysis techniques.
 The empirical results of this study indicate that independent debt covenants do not have a statistically significant effect on accounting conservatism, while managerial ownership and litigation risk have a negative significant effect on accounting conservatism. The results show that managerial ownership has a significant positive effect on accounting conservatism and litigation risk. significant positive effect on Accounting Conservatism, debt covenants do not have a significant effect on Accounting Conservatism, and managerial ownership, and litigation risk, together have an effect on Accounting Conservatism.

Assessing the effects of the influencing factors on industrial green competitiveness fusing fuzzy C-means, rough set and fuzzy artificial neural network methods

Improving the industrial green competitiveness is of great significance to handle the issues of resource shortage and environmental degradation in the process of ecological civilization construction. The existing literatures on the influencing factors of the industrial green competitiveness mostly examine the linear relationship using econometric models but rarely investigate the nonlinear effect between them. To address this research gap, this study firstly adopts the direction distance function and the global Malmquist-Luenberger productivity index to evaluate the green competitiveness of 33 industrial sub-sectors in China from 2002 to 2017, and employs the fuzzy C-means algorithm to classify these sectors into three categories with high-, medium- and low-levels of green competitiveness, respectively. Furthermore, this study identifies the critical factors influencing the industrial green competitiveness using the rough set theory, and more specifically explores how these critical factors differently impact the green competitiveness of three categories of industrial sub-sectors using the fuzzy artificial neural network. The results indicate that, the green competitiveness of the overall industrial sector in China shows an upward trend during 2002 to 2017, but there exist significant disparities among industrial sub-sectors. Research and development intensity, environmental regulation and enterprise scale are three critical factors influencing industrial green competitiveness. In the sub-industries with high-, medium- and low-levels of green competitiveness, the most significant factor is enterprise scale, research and development intensity, and environmental regulation, respectively.

Review on Thermal Energy Audit of Pyro-Processing Unit of a Cement Plant

Energy consumption in cement factories is an important issue for the government as well as private organizations. The cement manufacturing industrial sector has become the worldwide energy consumer accounting for over 40% of overall energy consumption by the industrial sub-sector. Most of the thermal energy consumption by a cement manufacturing plant occurs in the Pyro-processing unit. Thus, the energy audit of the cement plant is an essential exercise to promote energy retrofitting measures. The aim of the energy audit is to reduce energy consumption in the plant, reduce energy costs and identify possible Energy Conservation and Management Opportunities (ECMOs). The aim of this study was to review the techniques of energy auditing which include Mass (Material) balance and Energy balance by considering energy conservation in the form of thermal energy that helps to fill the gap in energy efficiency improvement, policy development, and environmental analysis. Using the operational data of Kiln system of Messobo Cement obtained from the literature, the heat losses were quantified for major energy consuming components of the system using both the mass and thermal energy balance approach. The production line's capacity for clinker was 145.4 tons per hour, and both burners received a combined 25 tons of coal per hour. Energy balance tests were conducted in all areas of the pyro processing systems, and the findings revealed significant energy losses from the surface of the kiln systems, kiln exhaust, and cooler exhaust.

The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry

Background: The telecommunication industry was one of the Indonesian government's priorities in the national development plan 2015-2035. “Primary Industry” was the term for the priority industries with the central role as the prime mover in the future national economy. Various natural, human, technological, innovative, and creative resources were imperative in supporting the underlining national industry development plan. Strategic innovation management refers to the entire sequence of innovation practices, including competition mechanism analysis, such as creating an innovative vision, business strategy alignment, disseminating strategy at an entire organizational level, market tendency, technology, and competitor’s action. Firm innovation performance refers to the measurement of innovation efficiency (the number of new products, product novelty, new product development speed, and new product success rate) and innovation profitability (new product revenue proportion, quality enhancement, cost reduction, and value improvement) conducted by the firm. This study investigates the effect of Innovation Strategy, Organizational Structure, Innovation Culture, Technological Capability, and Customer-Supplier Relationship (these were the practice of Strategic Innovation Management mentioned in various literature) on Firm Innovation Performance. Methods: A quantitative method, from a practical perspective, was employed to investigate the causal relationship between strategic innovation management and firm innovation performance. Data was gathered through a validated and reliable questionnaire disseminated to 90 respondents. It included a representative from the four sub-sectors of the telecommunication industry, namely fixed networks, wireless networks, telecommunication services, and special telecommunication. Results: The survey found that firms within the telecommunication industry already employed Strategic Innovation Management practices. Moreover, this study also found that Innovation Culture, Technological Capability, and Customer-Suppler Relationship significantly influence Firm Innovation Performance. Conclusion: The implementation of Strategic Innovation Management in the mid-size companies within Indonesia's telecommunication industry appears to be relatively high. It indicates that firms within the industry were able to strategically compete by implementing Strategic Innovation Management.

Unleashing the dynamic impact of tourism industry on energy consumption, economic output, and environmental quality in China: A way forward towards environmental sustainability

Tourism industry significantly enhances consumption, creates employment, and becomes a new engine of economic growth worldwide. However, tourism-led growth is attained at the cost of environmental damages, as tourism-related activities require higher energy consumption. We also included globalization, energy consumption, and economic growth to normalize the tourism industry sub-sectors environmental impacts. The ARDL bound testing and Gradual shift causality methods are used to analyze the environmental impacts of the tourism industry for the data spanning from 2001Q1 to 2019Q4. The outcomes indicate that tourism-related food and beverage services contribute to higher greenhouse gas emissions, especially N2O and CH4. However, compared with other sub-sectors, CO2 is primarily contributed by the tourism-traveling sector in the long run. Similarly, the food and beverages services also contribute highly to all air pollutants except PM2.5, while shopping and entertainment is the most significant sector contributing to N2O, CH4, and all other air pollutants in the long run. Moreover, all tourism industry sub-sectors have a significant and favorable impact on energy consumption and economic growth, whereas tourism-linked traveling consumes higher energy. Likewise, shopping and entertainment contribute more to economic growth than other sub-sectors. Interestingly, greenhouse gas emissions and air pollutants are adversely affected by globalization in the long run. Causality results reveal that all the tourism industry sub-sectors Granger cause most of the greenhouse gasses and air pollutants. The key initiatives are also provided for policy implications.

Creative Industry Development Policy Innovation In The City Of Bandung

This study describes the governance of the creative industry development, and the potential of the creative industry in the growth of the economic sector in the city of Bandung. Associations of fellow creative business actors can create new innovations in developing their business products, because in it there is an exchange of ideas and honing creativity. There are 17 sub-sectors of creative industry in Bandung. This study tries to understand how creative industry development policy innovations through the Bandung Creative Hub which is a forum for creative business actors to gather who can take advantage of the facilities and infrastructure provided to develop innovations in creating products that have superior value. The researcher uses the policy innovation theory of Jean-Eric Aubert which consists of seven dimensions. This study uses a qualitative approach. The results of the research on the development of creative industries in the city of Bandung can be said to be not optimal in their management and there are only 7 sub-sectors that are facilitated. There are still business actors who do not know that the Bandung City Culture and Tourism Office facilitates Intellectual Property Rights (HAKI) and difficulties in transferring knowledge to creative industry business actors.

ROLE OF FOOD PROCESSING INDUSTRY IN FOOD AND NUTRITIONAL SECURITY IN INDIA

The conversion of horticultural products into food, or one kind of food in another, is known as food processing. Food processing assists in reducing negative food changes over time, pleasing customers with flavours, taste and colour, catering to cultural beliefs, empowering women, and providing choice, knowledge, and convenience to health-conscious customers. There are various sectors in food processing industry like fruits and vegetables processing, milk processing, sugar processing, cereal processing etc. The nutritional security of processed food can include four basic issues i.e., food availability, food accessibility, food utilization and food stability. The study aims to identify the status of food processing industries in terms of their production, employment and number of units established in India. The study also tries to find out the extent to which food processing units playing a role in achieving nutritional security among people in India. To achieve these objectives, the study collected data from various secondary sources including reliable data available in published and unpublished books, reports, journals, newspapers, and different research sites. Appropriate statistical tools are used to show the increase in number of food processing units, number of persons engaged and total output in various subsectors of food processing industries in India. The requisite regression equations are also calculated in the study which shows that the growth in number of units and employment are positively related with output levels of food processing units in India. Results by applying tests of significance shows that there is a strong association between two attributes viz. imports and exports of processed products in India. Thus, we can conclude that India is self-sufficient in making the processed products from different subsectors of food processing on the one hand and in achieving the nutritional security (food availability, accessibility, utilization, and stability) among people of India on the other.

The Risk Structure of Portuguese Tourism Industry Subsectors: A PLS-SEM Approach

The Risk Structure of Portuguese Tourism Industry Subsectors: A PLS-SEM Approach

Assessing the Impact of the COVID-19 Pandemic on the Colombian Industrial Sector: A Multivariate Time Series Analysis

The Coronavirus Disease 2019 (COVID-19) pandemic has had a severe impact on the global economy, and Latin America and the Caribbean were no exceptions. Colombia faced unprecedented economic and public health crises, leading to a significant reduction in its gross domestic product (GDP) and exportation rate of goods and services. In this study, we explore the pandemic's effect on the Colombian industrial sector using official data and statistics. We analyze the monthly Industrial Production Index (IPI) measurements taken by the Colombian National Administrative Department of Statistics (DANE, for its Spanish acronym) for 22 national industrial subsectors between January 2005 and December 2021. We apply multivariate statistics and time series techniques to compare forecasts with actual responses of the most affected subsectors after the COVID-19 outbreak. Our findings suggest that the Colombian industrial sector was not well-prepared to face the pandemic, leading to a significant financial loss. We also observe that the developing countries' industrial sectors, like Colombia's, are highly exposed and vulnerable. This information can help policymakers in Colombia to better understand the weaknesses of the industrial sector and develop strategies to mitigate the impact of future crises.

The Role of Company Assets and Leadership Style in the Sustainable Business Performance of the Digital Creative Companies in Java

This study aims to determine the effect of company assets and leadership style on the sustainable business performance of digital creative industry companies in Java. The type of research in this study was verification. The unit of analysis in this study was a digital creative industry company on the island of Java, while the unit of observation was the management of a digital creative industry company on the island of Java. Data collection is carried out in a cross-section/one-shoot timeframe, namely in 2022. The population includes all companies that are members of the digital creative industry group on Java Island, which consists of 16 industrial sub-sectors. Data were taken from a sample of 100 respondents. The results of the study reveal that the company’s assets and leadership style have a significant influence on sustainable business performance. Leadership style plays a bigger role than company assets in driving sustainable business performance. The novelty in this research instills the right leadership style to build sustainable business performance, which is supported by the development of the company’s assets, in developing a leadership style, management should prioritize digital orientation, followed by the development of envisioning, governance, engagement, and disruptive innovation. Keywords: company assets, leadership style, sustainable business performance. DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.60.16