Manufacturing Industry In Indonesia Research Articles

The Influence of Green Leadership and Entrepreneurship on the Sustainability of Manufacturing Companies: Mediation of Green Innovation and Knowledge Management

<em>The industrial sector is one of the main contributors to Indonesia's economic development and GDP. However, the growth of the manufacturing industry cannot be separated from negative effects such as waste or emissions produced. The industrial sector is under pressure to immediately reduce the impact of its production emissions and waste on the environment. It needs to transform in a greener direction to improve the company's sustainability performance which consists of 3 aspects, namely economic, environmental, and social. This research will examine the influence of green transformational leadership, knowledge-oriented leadership, and green entrepreneurial orientation on corporate sustainability performance through the mediating role of green innovation and knowledge management processes. The research will be carried out using qualitative methods on 133 manufacturing industries in Indonesia with Structural Equation Modeling (SEM) analysis with the Partial Least Square (PLS) method to test the hypothesis. The results of this research show that the role of mediation has a positive influence on the company's sustainability performance, especially the knowledge management process which can act as a mediator between green transformational leadership, knowledge-oriented leadership, and green entrepreneurial orientation and the company's sustainability performance.</em>

How Tax Compliance, Audit Quality, and Financial Reporting Quality on Corporate Financial Performance in Manufacturing Companies

Within the framework of Indonesian manufacturing enterprises, this study explores the intricate links between tax compliance, audit quality, financial reporting quality, and firm financial performance. Using Structural Equation Modeling with Partial Least Squares (SEM-PLS), a sample of 175 firms was examined. The effect of these variables on financial performance was evaluated using correlation analysis, hypothesis testing, and descriptive statistics. The findings show a strong positive correlation between business financial performance, financial reporting quality, audit quality, and tax compliance. This study adds to the body of knowledge by providing complex insights specific to the Indonesian manufacturing industry. These insights can be used by investors, policy makers, regulators, and firm management to enhance decision-making procedures and promote sustainable financial practices in the sector.

Analysis of the Impact of HR Development Policies, Work Culture, and Organizational Performance on Competitive Advantage in the Manufacturing Industry in Indonesia

This study investigates the impact of HR development policies, work culture, and organizational performance on competitive advantage within the manufacturing industry in Indonesia. A quantitative research approach was employed, utilizing a sample of 125 manufacturing firms. Data were collected through structured questionnaires administered to HR managers and employees. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) regression was used for data analysis. The findings reveal significant positive relationships between HR development policies, work culture, organizational performance, and competitive advantage. Mediation analysis indicates that organizational performance partially mediates the effects of HR development policies and work culture on competitive advantage. The measurement model demonstrates satisfactory reliability and validity, and the estimated model fits the data well. Hypothesis testing confirms the significant positive effects of HR development policies, organizational performance, and work culture on competitive advantage. Overall, the study underscores the critical role of HR management practices, organizational culture, and performance enhancement strategies in driving competitive advantage in the Indonesian manufacturing industry.

The Implementation of Green Human Resource Management: A Survey on the Manufacturing Industry in Indonesia

This study investigates the implementation of Green Human Resource Management (GHRM) in the manufacturing industry in Indonesia, with a focus on achieving sustainable organizational performance. It addresses a research gap and develops conceptual models to advance sustainable development goals (SDGs), particularly in Indonesia, encompassing social, economic, educational, health, and environmental aspects. A survey method was employed, utilizing an associative quantitative approach with multivariate statistical techniques, specifically structural equation modeling partial least squares (SEM-PLS). The study involved 75 manufacturing enterprises in Indonesia's Karawang industrial district, with Managers or Supervisors serving as respondents. Data was collected using a questionnaire as the primary measurement instrument. The research falls under TKT 2 in terms of technology readiness, involving the formulation of a research model concept. Key findings suggest that the implementation of GHRM practices in the manufacturing industry positively impacts Green Intellectual Capital and contributes to sustainable organizational performance. Furthermore, the study underscores the importance of GHRM in enhancing environmental sustainability and organizational competitiveness within the Indonesian manufacturing sector.

The Influence of Asset Intensity, Employee Intensity, and Intellectual Capital on the Competitiveness of Manufacturing Industries: Cost Stickiness as a Mediating Variable

The low competitiveness of the Indonesian manufacturing industry is a current phenomenon causing a decline in Indonesia's manufacturing industry competitiveness ranking below that of Singapore, Malaysia, and Thailand. This indicates that Indonesia needs to enhance four factors: national economic performance, policy efficiency, business efficiency, and infrastructure. The purpose of this research is to examine the influence of factors affecting competitiveness. The data analysis technique used in this research is multiple linear regression analysis. The population in this study is companies listed on the Indonesian stock exchange. Data collection used purposive sampling method, with a total sample size of 212, with a sampling quota of 109 companies that have both sales increases and decreases annually. In this study, there are independent variables such as Asset Intensity, Employee Intensity, and Intellectual Capital, dependent variable Competitiveness, and mediating variable Cost Stickiness. The results of the research show that the variables of employee intensity and intellectual capital have an influence in this study, whereas asset intensity does not have an influence in this study. Additionally, Cost Stickiness has not been able to mediate the influence on Asset Intensity, Employee Intensity, and Intellectual Capital.

PENGENDALIAN KUALITAS PRODUK HPL MENGGUNAKAN METODE SIX SIGMA DAN FAILURE MODE AND EFFECT ANALYSIS UNTUK MENGURANGI CACAT DI PT TACO ANUGRAH CORPORINDO

The competition in the manufacturing industry in Indonesia is getting tighter, thus encouraging the industry to compete to improve the quality of its products. PT Taco Anugrah Corporindo is one of the manufacturing industries that produces HPL (High Pressure Laminate). In the production process, HPL produces several types of defects, the average for each type of defect still exceeds the KPI (Key Performance Indicator) set by the company. PT Taco Anugrah Corporindo wants the level of defects to be within the KPI range that has been set by identifying problems and repairing them. The purpose of this study is to reduce the number of defects. Six Sigma with the DMAIC method as a quality improvement to achieve the target of 3.4 failures per one million opportunities (DPMO). Using FMEA to Analysis the causes of the problem and recommendations for improvements. The results of this study found six types of potential CTQ, that is 71% PM, 11% PMLP, 7% BH, 5% DP, 4% Overlay and 3% TMB. The average calculation of the DPMO and Sigma Level values is 4,465 which is still far from 6 sigma. The causes of defects in products are caused by several factors such as humans, machines, methods, materials, and the environment. As for recommendations for improvement that can be given are the preparation of SOP and IK, training for operators, adjusting the machine by installing grounding and anti-static, monitoring work methods and maintaining the workplace.

Analysis of the Influence of Investment and Labor on Poverty Levels Through the Growth of the Indonesian Manufacturing Industry

This study aims to eradicate poverty by utilizing the manufacturing industrial sector, which cannot be separated from the influence of investment value and labor absorption. The analysis methods used are multiple linear regression and Vector Autoregression (VAR). The study employs quarterly secondary data from 1999 to 2022. The results of the analysis show that labor and investment partially have a significant and positive effect on the growth of the manufacturing industry. Moreover, by using a bivariate causality test, this study proves the existence of a two-way causal relationship between the economic growth of the manufacturing industry and poverty. Additionally, the study also analyzed the response of the independent variable to the dependent variable using Impulse Response (IRF) and Variance Decomposition (VD). It can be concluded that the economic growth of the manufacturing industry responds negatively to poverty, and poverty responds negatively to the economic growth of the manufacturing industry until both reach a balance. The contribution made by each variable in forming the value of that variable is different from one another. The implementation of good governance is highly expected in efforts to eradicate poverty in Indonesia, one of which is through increasing the economic growth of the manufacturing industry and then creating useful programs to increase investment and employment.

Analysis of the Impact of Organizational Culture, Employee Training, and Internal Communication on Employee Retention: A Case Study in the Manufacturing Industry in Indonesia


 This research investigates the impact of organizational culture, employee training, and internal communication on employee retention within the Indonesian manufacturing industry. Using a mixed-method approach, data were collected from 179 employees across various manufacturing firms in Indonesia. The results reveal significant positive relationships between organizational culture, employee training, internal communication, and employee retention. A strong organizational culture, effective training programs, and transparent communication channels were found to enhance employee satisfaction, engagement, and commitment, ultimately reducing turnover rates. Practical implications suggest that manufacturing firms in Indonesia should focus on fostering a positive culture, investing in training and development, and improving communication to retain talent effectively. These findings contribute to understanding the dynamics of employee retention in the Indonesian manufacturing context and provide actionable strategies for organizations aiming to enhance retention efforts and sustain long-term success.

Workplace design in Indonesian manufacturing small and medium-sized enterprises: Review and further research

Abstract Workplace design is an essential process for the manufacturing industry to realize a low manufacturing cost with high productivity and competitive advantage, as well as high employee performance and well-being. Although research on workplace design in the Indonesian manufacturing industry began more than 20 years ago, workplace conditions in the manufacturing industry, especially in small and medium-sized enterprises (SMEs) in Indonesia, have remained subpar, with high material handling costs. This review article aims to evaluate recent research on workplace design in the Indonesian manufacturing SMEs and explore possible directions for further research. The results of this review indicate that the research on workplace design in Indonesian manufacturing SMEs is mostly focused on the department area (micro-level), using systematic layout planning methods to improve material handling activities. Even though environmental conditions are unfavorable with low levels of occupational safety and health, research that consider these two in the process of designing workplace in Indonesian manufacturing SMEs is still limited. This review also shows the possibility of developing an integrated workplace design by involving environmental ergonomics and occupational safety and health in manufacturing SMEs.

The Importance of Digital Technology and Clustering for Innovation in MSEs. Evidence from Secondary Data in Indonesia

This paper explores the relationship between innovation and these two determinants in micro and small enterprises (MSEs) in the manufacturing industry in Indonesia, using secondary data. The key question in this research: is there evidence of the importance of DT and clustering for innovation capability in MSEs in Indonesia? The paper analyzes secondary data from Indonesia’s National Agency of Statistics and reviews key literature on innovation and digitalization in MSEs, and industrial cluster development in Indonesia. It is found that the number of industrial clusters of micro-, small-, and medium-sized enterprises (MSMEs) is concentrated on the island of Java, where more than 50% of the population is located, and is the most advanced region in economic development and industrialization in Indonesia. The majority of MSME clusters are in the food industry and woodworking industries. Only a very few of MSEs in the manufacturing industry use the Internet and do innovation. The type of innovation mostly is product innovation. Both relationships between MSEs doing innovation and MSEs using the internet and the total number of clusters are positive. But, statistically, only the relationship between the number of MSEs doing innovation and use of the internet is significant.

The Effect of Entrepreneurial Orientation on Performance Mediated by Innovation and Network Capability

The development of the woodworking industry in Indonesia can be a highlight in the business world. However, 2020 is a year that gives a different color to the business world. The entry of the COVID-19 outbreaks into Indonesia in the first quarter of 2020 caused all industrial sectors including the manufacturing industry in Indonesia to experience a decline. The aim of this research is to analyze the influence of Entrepreneurial Orientation on Performance mediated by Innovation and Network Capability (Study at UD. Kondang Jaya Furniture and UD. Aryajati Furniture). This research method is quantitative. The population in this study were employees of UD Kondang Jaya Furniture and UD Aryajati Furniture. The number of samples in this research was 100 respondents. The sampling technique uses non-probability sampling with purposive sampling technique. The data source used in this research is primary data. The data analysis technique in this research was carried out using SMARTPLS 3.0 software. This research uses Structural Equation Model (SEM) analysis with Partial Least Square (PLS). Entrepreneurial Orientation has a positive and insignificant effect on Performance. Entrepreneurial orientation has a positive and significant effect on innovation. Entrepreneurial Orientation has a positive and significant effect on Networking Ability. Innovation has a positive and significant effect on performance. This means that the fourth hypothesis is accepted. Network Capability has a positive and significant effect on Performance. Innovation can mediate the influence of Entrepreneurial Orientation on Performance positively and significantly. Network Capability can mediate the influence of Entrepreneurial Orientation on Performance positively and significantly.

Analysis of occupational health and safety management system internal audit implementation based on SMK3 PP No. 50, 2012 (Study at Pasuruan Concrete Industry, Indonesia)

Technological updates impact the risk of new hazards that can cause accidents and occupational diseases. The risk of hazards in the workplace is controlled through control efforts and the commitment of industries and workers to implementing the Occupational Health and Safety Management System. Indonesian manufacturing industries in implementing Occupational Health and Safety Management System are guided by SMK3 PP No. 50, 2012. Internal audit includes the fourth principle of occupational health and safety management system, namely monitoring and evaluating Occupational Health and Safety (OHS) performance. This research is descriptive research that aims to describe and analyze the application of occupational health and safety management system based on SMK3 PP No. 50, 2012 at Pasuruan Concrete Industry, Indonesia. Information sources are obtained from in-depth interviews, filling out document study checklist sheets, and field observations. The method to obtain in-depth interview informants through purposive sampling, with research informants is the party who has the authority and knowledge regarding the implementation of Occupational Health and Safety Management System in the Pasuruan Concrete Industry, Indonesia. Of the total 166 elements required by SMK3 PP No. 50, 2012, the company managed to fulfill as many as 160 elements, or 96%, with the category 'Satisfactory'. Overall, the company implements occupational health and safety management system progressively and sustainably, as evidenced by the increase in achieving the conformity of occupational health and safety management system audit internal elements and the guarantee of worker safety and health starting from management support, OHS programs, and the availability of adequate facilities and infrastructure.

The Role of Trust and Engagement in Organizational Citizenship Behavior of Chemical Manufacturing Industry in Indonesia

Although research on the relationship between trust and engagement with organizational citizenship behavior (OCB) has been extensively explored, the connection between these variables in the context of the chemical industry remains underexplored. The aim of this study is to examine the influence of trust on OCB, the impact of engagement on OCB, and the combined effects of trust and engagement on OCB in the Chemical Manufacturing Sector in Indonesia. This research employs a quantitative associative approach. The sample comprises 249 employees from manufacturing companies in the city of Cilegon, Indonesia, selected through proportional stratified random sampling techniques. The data analysis technique employed is multiple linear regression analysis using SPSS version 26. The findings of this study reveal that trust has a significant positive influence on OCB, engagement has a significant positive impact on OCB, and both trust and engagement collectively exert a significant positive influence on OCB in the Chemical Manufacturing Sector in Indonesia. The results of this research contribute to providing insights for chemical manufacturing companies in Indonesia to enhance the quality of their employees in achieving OCB principles.

HUMAN RESOURCE ACCOUNTING DISCLOSURE: AN EVIDENCE FROM INDONESIAN MANUFACTURING INDUSTRY

During Covid-19 pandemic, there is a downward of revenue among several businesses in Indonesia. It happens in manufacturing industry as well. Since revenue and profit often referred as growth indicators, therefore not many company concerns about Human Resource (HR). Meanwhile based on Human Resource Accounting (HRA) concept there is an impact of well-maintained HR against financial accounting statement. This research was held to describe the compliance of the HRA index in Indonesia manufacturing companies. The samples were using financial statement of 60 manufacturing companies for the year ended December 31, 2022. This research discussed the most disclosed indicator of 16 indexes and the least one. Therefore there would be no difficulties to prepare implicative feedbacks for HRA compliance in the industry. The most disclosed indicator is “Human Resource Policy” and the other way around, “Separated HRA Statement” become the least disclosed indicator. It was indicated, to prepare “Separated HRA Statement” is more difficult and complicated since it involves the overall company structures commitment and authorities. On the other hand, “Human Resource Policy” is easy to disclose since if there is no public notification about the basic HR Policy, the HR operation management would be a difficult task to be done.

Analisis Corporate Social Responsibility (CSR) dan Green Human Resources Management pada PT Batam Plastik

The plastic manufacturing industry in Indonesia has become a much needed industry because consumption power continues to rise. One company in Batam that produces plastic is PT Batam Plastik. As a plastic factory, PT Batam Plastik will add plastic waste that cannot be broken down in Batam City. This article was created to analyze the Corporate Social Responsibility (CSR) program and green human resource management at PT Batam Plastik. This type of qualitative research uses data collection techniques using interview and observation techniques. Based on the results of the analysis that has been carried out, PT Plastik Batam has implemented the Corporate Social Responsibility (CSR) program and environmentally friendly human resource management correctly. This is based on data from interviews conducted where PT Plastik Batam recycles plastic waste into recycled products and has trained its employees on how to recycle plastic and reuse plastic.

Main hazard control and hazardous material handling in environment testing laboratory

The increase in products from chemicals is currently growing rapidly in the Indonesian manufacturing industry. This correlates with a chemical test laboratory that is experiencing a flurry of activity. The placement of chemicals in testing laboratories still does not have problem-solving that can make it easier to search for other potential dangers. So far, the placement of chemicals is not based on hazard, but only on phase differences, namely solid and liquid phases, as well as materials that are frequently and rarely used can pose a hazard. This study aims to provide knowledge about main hazard control to all employees and propose material hazard handling in environmental laboratory testing following the material MSDS. This research method uses the concept of re-layout chemicals in the laboratory based on the type of danger they cause by collecting data obtained from MSDS, literature review studies, references from books, government regulations, and the Merck China website to see the characteristics of chemicals that will be placed in the material stock storage room. This study found a layout mapping of chemicals in the materials storage room, with 3 storage areas and 2 additional storage areas. The result of this research is that Cabinet A is filled with harmless solid phase materials and a class of toxic substances. The chemicals in cabinet B, consist of solid-phase materials that are corrosive, harmless, irritating, carcinogenic, and highly flammable. Whereas on shelf C letter L it consists of liquid phase materials which are harmless, corrosive, dangerous, flammable, highly flammable, highly flammable, carcinogenic or toxic. Whereas Container D contains chemicals that have oxidizing properties and Cabinet E contains chemicals that are highly flammable in water.

The Effect of Diversity Management on Employee Engagement in the Manufacturing Sector

In Indonesia's manufacturing industry, which employs the third-largest workforce in the country, employee engagement is a critical measure of labor's contribution. Despite the industry's importance, diversity management—a key driver of engagement—lags, with low representation of women and persons with disabilities and persistent ethnic and racial discrimination in a nation known for its multiculturalism. Additionally, ageism is prevalent, manifesting as discrimination across different age groups. This study investigates the influence of four principal dimensions of diversity management—ethnic, gender, disability, and age—on employee engagement within the sector. Conducted as a field study in a manufacturing industry in Cilegon with 218 participants, the research provides insightful findings. Notably, it identifies age diversity management as the sole dimension with a significant impact on employee engagement, while the other three—ethnic, gender, and disability diversity management—do not show a substantial effect.

Cabin Assembly Balancing Line on Welding Using Ranked Positional Weight Method

The Indonesian automotive industry has become an essential pillar in the country's manufacturing sector. As production capacity increases, problems will also increase, including disparities in the level of efficiency and productivity of each sub-sector of the manufacturing industry in Indonesia. This problem occurs due to the need for a good process path, such as the uneven distribution of work tasks machines in the work process so that it is possible to harm the company, so a solution is needed to increase the efficiency of the production line. This research aims to improve production efficiency, particularly concerning the use of electricity costs and operator wages on the cabin type S L assembly line, by applying the Ranked Positional Weight (RPW) method. The research phases include data collection, analysis, processing, and evaluation. Based on the SL-type cabin calculations using the RPW method, the track efficiency improved by 4.69% from the initial conditions, while the track effectiveness increased by 75.02% to 79.71%. Increased the production line efficiency has impacted on the decrease in production costs Rp. 13,827,249/month.

Production Control Using the Kanban System in the Manufacturing Industry in Indonesia: Systematic Literature Review

The existence of the manufacturing industry in Indonesia is heavily influenced by productivity so that it can compete with other countries. Productivity will not be achieved if the production process workflow does not have a manufacturing system. This is what causes requests from customers not to be fulfilled becausethere is a production process flow that still has problems with a shortage of raw materials or the quality is still below standard. This study aims to identify and analyze related to the design of work systems in the manufacturing industry in Indonesia so that customer needs can be met according to their requests. This study uses the Systematic Literature Review (SLR) method starting with journal collection, sorting journals according to topic, processing journals, and analyzing articles according to research topics. This study found several journals related to research topics based on a focus on 2016-2023. This research resulted in the year 2022 being the most published research with 5 articles, while based on the type of industry the most frequently found was the type of automotive industry with 6 articles or 30%. The theoretical implications of this research hope to add references for other researchers in their observations on the Kanban system. While realized in practice, this research serves as a guide in improving the production process flow using the Kanban system, to increase productivity in the manufacturing industry.

What are the Employee Performance Model Determinants in Indonesia Manufacturing Industry?

What are the Employee Performance Model Determinants in Indonesia Manufacturing Industry?