Manufacturing Companies In Indonesia Research Articles

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 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.

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.

Implementation of eco-control system by Indonesian manufacturing firms: Understanding the mediating role of organizational culture

Implementing eco-control is a strategic way for companies to prevent environmental damage. This paper aims to analyze the effect of perceived environmental uncertainty and stakeholder pressure on system implementation through environmentally oriented organizational culture as a mediating variable. This study utilizes the PLS-SEM model using a sample of 104 manufacturing companies in Indonesia; 197 respondents from those companies completed the survey. All variables used in the research model are significant for a formative measurement model, and an internal model applied met all criteria. This study confirms a negative relationship between perceptions of environmental uncertainty and environmentally oriented organizational culture (β = 0.174, p < 0.01). The opposite effect is shown by the relationship between stakeholder pressure and organizational culture (β = 0.379, p < 0.01), and the positive effect of organizational culture on the implementation of eco-control in companies is significant (β = 0.650, p < 0.01). In addition, organizational culture partially mediates the relationship between perceptions of environmental uncertainty and the implementation of the eco-control system (β = 0.317, p < 0.05) and between stakeholder pressure and the implementation of this system (β = 0.401, p < 0.05). When companies through managers face uncertainty from the ecological environment and stakeholder pressure, they should utilize an eco-control system, which can succeed in profit goals and environmental responsibility.

Analisis Pengaruh Forecasting Demand Terhadap Efisiensi Manajemen Persediaan

This study analyzes the impact of demand forecasting on inventory management efficiency, focusing on the implementation of the ARIMA method in the context of a manufacturing company in Indonesia. Using a quantitative case study approach, the research explores the relationship between forecasting accuracy and key inventory performance metrics. Results indicate that improved forecasting accuracy significantly enhances inventory efficiency, with the ARIMA method outperforming traditional methods. The implementation of ARIMA resulted in a 36.8% increase in Inventory Turnover Ratio and a 53.3% decrease in stockout rate. Time series analysis revealed a long-term improvement trend in inventory efficiency with significant seasonal components. This research provides valuable insights for practitioners and academics on the critical role of demand forecasting in optimizing inventory management and the potential of the ARIMA method in improving companies' operational efficiency.

The Influence of ERP-SAP Implementation and Inventory Management on Production Efficiency through Inventory Control Performance Using Partial Least Square (PLS) Method

PT XYZ is the largest manufacturing company in Indonesia that produces biscuits with the support of the SAP system, which has integrated data from each division, especially the inventory control division. Due to the accessibility of real-time data, it was observed that there were two late arrivals of raw materials, causing the company to only achieve 75% of the weekly production target. Therefore, this study aims to determine the effect of ERP-SAP implementation and inventory management on smooth production and provide recommendations for improvement through inventory control performance at PT XYZ. The method used is Partial Least Square (PLS) which uses SmartPLS. Based on the research conducted, it was found that the implementation of ERP-SAP does not have a positive impact on production flexibility, but has a positive impact on inventory management performance, and then inventory management directly positively affects production efficiency and inventory control performance

Transforming Inventory Management for Global Manufacturing Efficiency

This qualitative study explores the application of raw material inventory accounting information systems and internal control measures at PT. Perdana Sukses Makmur, a manufacturing company in Indonesia. Through interviews, observation, and documentation analysis, the research identifies that while the company's inventory system is well-implemented, certain internal control measures, such as the combination of functions and responsibilities, require improvement. These findings contribute to understanding inventory management practices in manufacturing firms, suggesting areas for enhancing internal control to improve production efficiency and organizational performance. Highlight: Efficient Inventory System: PT. Perdana Sukses Makmur demonstrates effective inventory management practices. Internal Control Challenges: Addressing function combination enhances organizational oversight. Production Efficiency Implications: Refining internal controls enhances manufacturing performance. Keywoard: Inventory Management, Internal Control, Manufacturing Company, Qualitative Study, Indonesia

Pengaruh Intellectual Capital Dan Good Corporate Covernance Terhadap Nilai Perusahaan

The process of value creation in companies has changed a lot along with the development of innovation and science in the industrial world. This research aims to analyze the influence of Intellectual Capital through VAIC TM and GCG through the variables Managerial Ownership, Audit Committee and Independent Commissioners on Company Value through Tobin's Q. Research This is quantitative research using secondary data from the annual financial reports of manufacturing companies listed on the IDX for 2017-2021. The sample taken was 60 manufacturing companies in Indonesia using purposive sampling techniques. The data obtained was then analyzed using descriptive analysis, Multiple Linear Regression Test, T test, coefficient of determination test using SPSS. The results of the research show that Intellectual Capital has a positive effect on Company Value, while GCG through managerial ownership and Independent Commissioners has no effect on Company Value. while the Audit Committee has a negative effect on Company Value. It can be concluded that Intellectual Capital has a positive effect on Company Value. This shows that Intellectual Capital can be a factor that influences company value so that companies must pay more attention to intellectual implementation in order to improve company performance. The research results also show that the Audit Committee has a negative influence on Company Value, while Managerial Ownership and Independent Commissioners have no effect on Company Value. This shows that the more audit committees there are, the lower the company value will be.

Implementation of Operational Management at the Manufacturing Company (Pt Nippon Indosari Corpindo, Tbk) Sari Roti

Operational management is very important for all types of industries, one of which is manufacturing. Manufacturing companies are concerned with production processes on a large scale that use equipment and machinery to manage raw materials into finished goods. PT Nippon Indosari Corpindo Tbk “SARI ROTI "is one of the leading bread manufacturing companies in Indonesia. This Journal discusses how SARI ROTI applies operations management concepts to achieve competitive advantage and meet growing market demand. Based on these objectives, researchers use qualitative research with qualitative analysis methods in which research is conducted by analyzing data using theoretical foundations as the basis of analysis. The data analyzed is secondary data, which is data that comes from existing sources and is not self-processed data The results showed that this company is a company that successfully runs the overall operations management concept, so that the company is able to produce quality products and ensure the cleanliness of all its products, as well as efficient in terms of the production process and distribution of products produced with a wide marketing area coverage.