Manufacturing Industry Sector Research Articles

THE ROLE OF THE PROCESSING INDUSTRY SECTOR IN REGIONAL ECONOMIC GROWTH (IN DUMAI CITY)

The purpose of this study is to determine the role of the processing industry sector in regional economic growth (in Dumai City). It can be concluded from the calculation results that the processing industry sector has a very large positive impact on the Gross Regional Domestic Product (GRDP) Prod uk in Dumai City, with an average of 54.82%. The manufacturing industry sector has increased every year from the 2010-2018 period. Thus, the role of the processing industry sector in the economic growthin Dumai City has a very positive impact and can increase the Gross Regional Domestic Product (GRDP) of the processing industry sector.

PENERAPAN ERROR CORRECTION MECHANISM DALAM PEMODELAN PERTUMBUHAN EKONOMI PROVINSI JAWA TIMUR TAHUN 2005-2021

The economy of East Java Province, as indicated by the Gross Domestic Regional Product (GDRP), experienced a contraction due to the Covid-19 pandemic by 2.33 percent. The shock will disrupt the stability of the East Java economy if it is not handled quickly and accurately. This study aims to establish an appropriate model for analyzing economic growth through GDRP in East Java by using the independent variables Human Development Index (IPM), Gross Fixed Capital Formation (PMTB), GDRP of Manufacturing Industry Sector (IP), and Regional Minimum Wages (UMR) using the Error Correction Mechanism (ECM) model to obtain long-term and short-term relationships of these variables. The results showed that the IPM, PMTB, and UMR had a positive and significant relationship with GDRP in the long term, while the IP variable had a positive but not significant relationship with GDRP in the long term. In the short term, IPM, PMTB, IP, and UMR have a positive and significant relationship with GDRP. In addition, there is an Error Correction Term (ECT) coefficient of -0.8917 which means that the influence of the IPM, PMTB, IP and UMR variables will be corrected by 89.17 percent toward long-term balance in each period

Why leaders are important for cross-functional teams: Moderating role of supportive leadership on knowledge hiding

Knowledge exchange has been a critical factor for cross-functional teams to master different tasks and problems and promote innovation. Cross-functional teams rely on the direct cooperation of senior employees from different departments, often with converging aims, leadership, culture, and communication. However, with the ever-increasing complexity in business decisions, decision-makers invested in the manufacturing industry sector need the support of a diverse team as an advisory tool to put well-thought measures into effect. The aim of this study is to analyze how cross-functional teams in commerce and industry rely on different key performance indicators to limit knowledge hiding. This paper conducted a quantitative study of 130 individual participants working in cross-functional teams in Germany. It also adapted multiple linear regression and used a conceptual model impacting the relationship between team performance, trust, and organizational citizenship behavior, including the moderating role of leadership. The disruptive effect of knowledge hiding was contextualized. The results indicate that team performance is directly affected by the selected variables. Furthermore, it is limited to knowledge hiding, while trust and the use of adequate leadership help to retain knowledge retention. Lastly, organizational citizenship behavior was found as the paramount factor, supported by individually tailored leadership methods, to foster information exchange and thereby promote organization-wide learning.

Analisis Penentuan Pusat Pertumbuhan Ekonomi dalam Pengembangan Wilayah di Kabupaten Labuhanbatu Utara, Provinsi Sumatera Utara

Growth Pole Determination Analysis for Regional Development of North Labuhanbatu Regency, North Sumatra Province. The gap between sectors and the unstable economic growth rate indicate that North Labuhanbatu Regency needs a regional development program. The research objective is to identify the classification of the economic sector in North Labuhanbatu Regency, determine the districts that are the growth poles, and interaction between areas known as growth poles with the surrounding areas. This study uses primary data with interview methods and secondary data with documentation methods. The indicators used are the Gross Regional Product (GRP) of North Labuhanbatu Regency and North Sumatra Province in 2015-2019, the population of each social and economic facility, the population of each sub-district, and the distance between sub-districts. The analysis was conducted using the typology classification method, the schalogram analysis and the centrality index, as well as the gravity analysis. The results show that the advanced and fast growing sector in North Labuhanbatu Regency is only the manufacturing industry sector. Districts that have the opportunity to become centers of economic growth in North Labuhanbatu Regency are Kualuh Hulu District and Kualuh Selatan District. Kualuh Hulu District has the closest interaction with other sub-district that is also a center of economic growth, namely Kualuh Selatan District.

Trading volume, earnings per share and stock returns and their impact on bid-ask spreads on manufacturing industry sector stocks listed on the Indonesia stock exchange 2015-2018

This research was to provide empirical evidence regarding The Effect of Trading Volume, Earning Per Share on Stock Returns, and their impact on Bid-Ask Spread in manufacturing companies listed on the Indonesian Stock Exchange. The method of the research used data from 114 companies manufacturing industry sector that was listed on the Indonesia Stock Exchange in 2015-2018. Technique analysis data used path analysis with IBM SPSS Statistics software and hypothesis test used F test, t-test, and Sobel test. Based on the results of the t-test (partial) showed that Trading Volume had a significant positive effect on Stock Returns, Earning Per Share had no significant effect on Stock Returns, Trading Volume had a significant negative effect on Bid-Ask Spread, Earning Per Share had a significant negative effect on Bid-Ask Spread, Stock Returns had a significant negative effect on Bid-Ask Spread. Based on the results of the F test, is shown that Trading Volume and Earning Per Share together have a significant effect on Stock Returns. Trading Volume, Earning Per Share and Stock Returns has a significant effect on Bid-Ask Spread.

Relevansi Informasi Laba, Nilai Buku Ekuitas, Arus Kas Operasi, dan Dividen Terhadap Harga Saham

In investment activities, investors need accounting information as a basis for making decisions. To be useful for decision making, the information must meet the relevant qualities seen from the reaction of the capital market through stock price movements. Since earnings is not the only indicator used to measure a company's financial performance, many studies have been conducted and developed to investigate new alternatives for measuring value relevance. Therefore, this study is interested in adding other information variables, namely operating cash flows and dividends. The manufacturing industry sector is an interesting sector to study because the manufacturing industry sector continues to grow and continues to increase from time to time. This study aims to determine the value relevance of accounting information on manufacturing companies listed on the IDX for the period 2011-2020. The object of this research is the annual financial statements of manufacturing companies listed on the Indonesia Stock Exchange for the period 2011-2020. Based on the purposive sampling method, a sample of 380 observations was obtained consisting of 38 companies per year. The data analysis techniques used in this research are pooling test, classical assumption test, descriptive statistical test, F test, t test and coefficient of determination test. The results of the tests carried out show that the data can be pooled. From the results of the t-test, each of the four accounting variables tested has a sig value below 0.05 with a positive sign coefficient. The Adjusted R2 value of earnings and book value of equity is 73% and the Adjusted R2 value of earnings, book value of equity, operating cash flow and dividends is 76.4%.
 The conclusion of this research indicates that there is insufficient evidence that earnings, book value of equity, operating cash flow and dividends have a positive effect on stock prices.
 
 Key words: Earnings, Book Value of Equity, Operating Cash Flow, Dividends and Stock Prices

The Financial Ratios Impact on Earnings Growth of The Consumer Goods Companies Listed on IDX in 2015-2020

Abstracts. This study examines the effect of financial ratios on the earnings growth of manufacturing companies in the consumer goods industry sector. The analysis was carried out using multiple linear regression using the SPSS 23 program. The company sample data was 102 out of 17 companies in the consumer goods industrial manufacturing sector listed on the Indonesia Stock Exchange (IDX) during the 2015-2020 period. The results of the research that the Current Ratio has a negative and insignificant effect on earnings growth, Net Profit Margin has a positive and significant effect on earnings growth, Total Assets Turnover has a negative and insignificant effect on earnings growth. This study uses earnings growth as the dependent variable, with Current Ratio, Net Profit Margin, Total Assets Turnover as independent variables. It is hoped that future research will test by adding other variables that affect earnings growth

Analysis of Leading Sectors and Characteristics of Provincial Economic Growth in Indonesia

Gross Domestic Product or GDP is one indicator of a country's economy moving the economic sector. The Covid-19 pandemic caused the economy of Indonesia in the second quarter of 2020 compared to the second quarter of 2019 (YoY) to experience a 5.32 percent contraction. In increasing the economic growth rate, adjusting it to each region's potential is necessary, which is the leading sector. This study aims to analyze the basic or leading sectors and the economic growth conditions of the provinces in Indonesia and group the provinces based on their proximity characteristics. The method used is the Ward and Location Quotient using secondary data from Statistics Indonesia. The results show that 25 provinces in Indonesia have an agricultural base sector. The mining sector is primarily concentrated in eastern Indonesia and tends not to affect the Covid-19 because it can grow fast. Provinces with a manufacturing industrial base sector are focused on Java. The clustering results formed 5 clusters, each province having similar characteristics. The growing cluster is a province with a mining base sector. The sector with intense contraction is a province that provides accommodation, food, and drink. Local governments can restore the economy starting from the base sector.

ECONOMIC IMPACT ASSESSMENT OF VILLAGE FUND IN INDONESIA USING INTER-REGIONAL INPUT OUTPUT ANALYSIS

The economic development of a region/country is marked by development in various sectors and regions through private or public spending. In 2017, village fund (as one of government expenditure) has induced and supported sectors such as public administration, human health and social works, education, manufacturing industries and other service activities in any region. This study aims to analyze the impact of the 2017 village fund program realization on the Indonesian economy, such as the impact on final demand, household income, and employment coverage. The method used in this research is Inter-Regional Input Output (IRIO) analysis using the IRIO Indonesia Table in 2016 domestic transactions on producer prices classification 102 x 102 sectors (6 regions and 17 sectors). The results of this study show Indonesia's total domestic output in 2017 for the realization of the village fund budget of IDR 98 trillion. Meanwhile, Village Fund 2017 program stimulated a total salary increase of IDR 26.980 trillion or 648,132 additional workers or contributed to employment increase during 2017 as 13.12%. The results of the analysis of the output multiplier and the income multiplier show that, if we viewed in sectoral details, the electricity and gas sector and the manufacturing industry sector have more roles in increasing output compared to other sectors.

The Effect of Monetary Policy on the Performance of the Manufacturing Industry Sector in Indonesia

The manufacturing sector has the ability to generate higher output, which performance can be affected by monetary policy. The main sector in Indonesia national development due to its considerable contribution to national income and strong linkages to other sectors, hence the importance to monitor policies that can significantly affect its productivity. This study aims to analyze the effect of the exchange rate, lending facility interest rate, foreign exchange reserves and the money supply on the output of the manufacturing industry sector in Indonesia 2016Q1-2021Q3. The data in this study are secondary time series data from 2016Q1-2021Q3. The analytical tool used in this research is OLS (Ordinary Least Square). Based on the results of the analysis, it is found that the variables that have a significant effect on the output of the manufacturing industry sector are the exchange rate, lending facility interest rate, and foreign exchange reserves. While money supply has no effect on the output of the manufacturing sector.

An Analysis of Intra-Industry Trade with Some Selected European Union Countries in the Turkish Manufacturing Industry

This study aims to analyse intra-industry trade in the manufacturing industry sector with the EU countries, where Turkey has the most trade. The period of the study is 2000-2020. The countries examined are Germany, France, Netherlands, Italy, Spain, Poland, Belgium-Luxembourg, Sweden, Romania, Bulgaria, Greece, the Czech Republic, Portugal, Austria, Ireland, Denmark, and the UK. In the analysis, the Grubel Lloyd index was used, which is one of the widely applied static measurement methods in the literature. The study discusses intra-industry trade of manufacturing industry products according to the 3rd revision of the Standard International Trade Classification. According to the analysis results, when Turkey’s foreign trade is evaluated on a sectoral basis, it has been observed that high intra-industry trade is realized in product groups with low added value. Another result obtained is that intra-industry trade with the UK, Germany, France, Poland, Bulgaria and Romania reached high values. Keywords: Intra-industry Trade, Manufacturing Industry, Grubel Lloyd Index JEL: B17, F0, F5, F11, F14

The Effect of Inflation, Exchange Rate, Labor and Money Supply on The Manufacturing Industry Sector in Indonesia 2011 – 2020

The manufacturing industry is the main supporting sector for the economy, considering its enormous contribution to Indonesia’s national GDP compared to other sectors. However, the economic problems lately have resulted in a decline in Indonesia’s economic conditions, which is marked by a reduction in national GDP and a decrease in the output of the Indonesian manufacturing industry sector. Thus, this study aims to analyze the effect of the complex variables in the current economy, namely inflation, exchange rates, labor, and the money supply, on the manufacturing industry sector in Indonesia in the long and short term. This study uses the ECM (error correction model) method in empirical testing. The data used is secondary time series data (quarterly) starting from 2011:Q1 – 2020:Q4; the data obtained comes from the Central Statistics Agency, Bank Indonesia, and the Ministry of Trade of the Republic of Indonesia. This study uses the Eviews10 application as an analytical tool. The analysis results conducted in this study show that the exchange rate and labor have a positive and significant influence on the manufacturing industry sector in the long and short term. The money supply has a positive and significant effect on the manufacturing industry sector in the long term only. Meanwhile, inflation has a negative but not significant effect both in the long term and short term. Of these critical variables, labor has the most crucial influence on the manufacturing industry sector. Therefore, the government needs to pay attention to policies related to labor as the main factor in increasing the output of the manufacturing industry.

The Relationship between Dividend Policy and Earnings Quality: The Role of Accounting Information in Indonesia’s Capital Market

This study provides empirical proof that the positive impact of high accrual quality is the ability to accurately predict the future return with a positive sign. In the capital market, better prospects are commonly indicated by regularly and routinely implementing a high-yield dividend policy. This study uses dividend policy as a moderated multiple regression, which plays a critical role in achieving a high obedience to accounting standards. The causal research involved 154 of the companies listed on the Indonesia Capital Market and 384 observations in the industrial manufacturing sector for 2015–2020. By mulling over the effect of the COVID-19 pandemic in 2020, and predicting the future market using zero growth with no assumed growth in the future, this empirical study shows that dividend policy is critical when minimizing opportunity behavior. This research provides a mapping of the decision tree model as an implication of game theory because of the interactive feedback between the earning quality and future market value. A sign such as “good” news significantly stimulates the perception of optimistic investors, with no negative manipulation and accruals. It paves the way for investors to strictly control and monitor strategic decisions to obtain significant improvement in prospects.

Differentiation Analysis Of Abnormal Stock Return Amid Political Contestation And Pandemic In Indonesia

Political events frequently affect the condition of the stock market and industrial sectors anywhere in the world, Indonesia is no exception. Regarding the political year, the manufacturing industry is expected to perform the best. The two manufacturing industry sectors are expected to gain the highest performance growth, namely the food and beverage industry and textile product industry. Due to the increasing demand for election campaign activities in local Indonesia, both are likely to achieve positive growth. The condition of pandemic of Covid-19 strike combined political events are an event that could have implications for capital market turbulence, this hypothesis is developed on the assumption that major events can affect the macroeconomics so that corporate actions in the form of dividend announcements can affect stock returns, this will certainly be avoided by investors. However, in this research using event study data set for 2018-2020 based on the corporate actions of dividend announcements, it was revealed that this was not an influential factor. Using the event study research method and the paired sample t-test, the results show that there is no difference in stock returns before and after the announcement of dividends, even though the corporate action was carried out during the Covid-19 pandemic which was happened consecutively after political events. From the results of the research conducted by the writers, which results in the premise that cash dividend announcements do not provide a good signal for investors in Indonesia, there is an assumption that investors do not notice dividend announcements as a distortion of interest in investing

Sustainable value creation and organizational performance in industrial manufacturing companies

PurposeThis study aims to analyze the influence of sustainable value creation (composed of social, economic and environmental dimensions) on organizational performance in Colombian industrial manufacturing companies.Design/methodology/approachThis study had a sample of 1,572 companies belonging to the Colombian manufacturing industrial sector. These companies were consulted by the survey of technological development and innovation in the manufacturing industry EDIT IX. For this study’s purpose, a model was developed from a variance-based structural equation modeling or partial least squares.FindingsThe results indicated that the associated mechanisms of the social, economic and environmental dimensions contribute in a significant, positive and large way to the creation of sustainable value for the companies studied. The findings show the importance of the social, economic and environmental dimensions in the creation of sustainable value and in turn, their influence on organizational performance.Social implicationsThe findings obtained provide industrial companies and society with resources to understand that economic development can respond to business logic different from those imposed by current neoliberal models.Originality/valueThis study provides an understanding of the value capture mechanisms of small- and medium-sized companies considering the environmental needs of the territory and the community where the business activities take place while generating economic profitability for the other stakeholders.

The mediating role of knowledge generation between training and development of human talent and innovative performance

PurposeThis study aims to examine the relationship between training and development (TD) of human talent and innovative performance (IP) while considering the mediating role of knowledge generation (KG).Design/methodology/approachAn explanatory design with latent variables was used, represented through a system of structural equations made up of observable and latent variables. The study had a sample of 1,572 companies belonging to the Colombian manufacturing industrial sector between 2017 and 2018. The instrument used in this research was the survey on technological development and innovation in the manufacturing industry EDIT IX. The statistical approach for estimating the parameters of the structural equation model (SEM) was the variance-based or PLS-SEM approach.FindingsThe results link the existing theory on the relationship between TD of human talent and IP with the empirical evidence in Colombian manufacturing companies. In addition, the research highlights the role of KG in the relationship presented, which leads to the conclusion that it is an essential factor for any organization today.Originality/valueThe findings obtained are practical use for the various agents involved in the management of manufacturing companies. At present, it is not only important for companies to generate good economic returns. It is necessary to focus on IP, which will favor the economic and non-economic firm performance, which involves the improvement in the quality of the products and services offered.

Empirical Analysis and Suggestions on the Selection of City Leading Industries based on SSM Algorithm

City leading industries are the pillars of urban economic development and are constantly changing as urban economic development enters different stages. The weight setting of many factors in the existing leading industry selection methods and means is mainly set by humans, which is highly subjective and lacks dynamics, integrity, and quantification, and the accuracy of prediction results is not high. Therefore, starting from respecting objective data, the SSM selection method with both dynamic and quantifiable properties is introduced. Based on the SSM mathematical model and principles, 35 manufacturing industries in Guangzhou in 2015 and 2020 are selected as initial variables and stage variables, respectively, taking 35 corresponding industrial sectors in the province as reference variables at the same time point and using the SSM algorithm as an analytical tool to conduct an empirical analysis of the share deviation component, structural deviation component, and competitiveness deviation component of the 35 manufacturing industry sectors in Guangzhou. After drawing the Shift-share analysis chart, it was found that there are 12 industrial sectors most likely to become the city leading industries in Guangzhou, and 4 suggestions for the development planning of city leading industries were put forward; they are, respectively, ➀ accelerate traditional industries technological upgrading, ➁ focus on optimizing automobile manufacturing industry, ➂ promote leading industries independent innovation, and ➃ create leading industry sharing platform.

POTENTIAL AREA ANALYSIS IN THE AGROPOLITAN DEVELOPMENT AREA IN BOJONEGORO REGENCY, EAST JAVA PROVINCE, INDONESIA

The purpose of this study is to analyze the potential of the region in developing an agropolitan area in Bojonegoro Regency, East Java Province through the location quotient, shift share. Data collection techniques generally used primary and secondary survey methods. The results show that based on the results of the Location Quotient (LQ) calculation in Bojonegoro sub-district which are included in the base sector, namely the mining sector, government administration sector, information and communication sector and the mining sector. is; agriculture sector, mining and quarrying sector, manufacturing industry sector, electricity and gas procurement sector, wholesale and retail trade sector, transportation and warehousing sector, accommodation and food and beverage provider sector, information and communication sector, financial and insurance services sector, real estate sector, the corporate service sector and the government administration sector.

PENGARUH LEVERAGE, INTENSITAS MODAL, KOMPENSASI RUGI FISKAL, FAMILY CONTROL, FAMILY MANAGEMENT TERHADAP TAX AVOIDANCE (Studi Kasus Pada Perusahaan Manufaktur Sub Sektor Industri Dasar dan Kimia Periode 2017 – 2020)

This study aims to determine the effect of Leverage, Capital Intensity, Fiscal Loss Compensation, Family Control, Family Management on Tax Avoidance. The method used in this study is a quantitative method, while data collection is taken from the Annual Report in this study using purposive sampling. The data analysis technique used is multiple linear analysis. The sample used in this study were 23 basic and chemical manufacturing industry sectors listed on the Indonesia Stock Exchange for the period 2017 – 2020. The data analysis technique used was multiple linear regression analysis. The results of this research analysis that Leverage has no effect on Tax Avoidance, Capital Intensity has a negative effect on Tax Avoidance, Fiscal Loss Compensation has no effect on Tax Avoidance, Family Control cannot be analyzed because it has no data variance, and Family Management has no effect on Tax Avoidance.
 Keywords: Tax Avoidance, Leverage,Fiscal Loss Compensation, Family Control, Family Management on Tax Avoidance.

Heavy Metals Contamination and Water Quality Parameter Conditions in Jatiluhur Reservoir, West Java, Indonesia

Waste pollution into the Citarum River (main water source of Jatiluhur Reservoir) was dominated by the manufacturing industry sector (textile, chemical, metal, pharmaceutical). Industrial was the most common contributor to heavy metal waste. Heavy metal contamination into waters will cause any problems, one of which was the emergence of various diseases both short and long term. Based on the issues, the study of heavy metal contamination and also water quality parameter conditions in the Jatiluhur Reservoir was necessary. The heavy metals (Cu, Zn, Hg, Pb, Cd) contents were determined using the X-Ray Fluorescence (XRF) Spectrometry method (for sediment) and Atomic Absorption Spectrometry (AAS) method (for water). The other water quality parameters were analyzed using the methods from the Indonesian National Standard (SNI). Furthermore, the data were compared to the Canadian Sediment Quality Guidelines (for heavy metal in sediment) and water quality standards from Government Regulation of the Republic of Indonesia Number 82 of 2001 (Class 3) (for water quality parameters). Concerning the discussion, Jatiluhur Reservoir was divided into three zones i.e. the inlet area, main inundation area, and outlet area. Conditions in the sedimentary layer, mercury (Hg) have accumulated throughout the Jatiluhur Reservoir area with conditions exceeding the maximum limit, while Cu metal tends to accumulate in the inlet area with conditions exceeding the minimum limit. For other heavy metals, exceed the minimum limit at some locations, but more results were below that. Although all heavy metals have not been detected in water, this was a warning that the presence of heavy metals in sediments can potentially dissolve into the water, the most extreme thing that can happen was upwelling. If this happens, the heavy metals can be contained excessively in water, harmful to and possibly consumed by aquatic biota and human. Considering these conditions, the biota that was most likely to be exposed was benthic organisms. In general, the water quality parameters in Jatiluhur Reservoir meet the quality standards. Only ammonia that does not meet the quality standards for sensitive fish life, regarding the massively of aquaculture activity in this reservoir.