Profit Perspective Research Articles

Menganalisis Ekonomi Dalam Islam Yang Berkaitan Dengan Aspek Hukum Dalam Bisnis

Islamic economics is a scientific discipline that integrates economic principles with Islamic teachings. In the Islamic economic framework, business activities are not only viewed from a profit perspective, but also from an ethical and social responsibility perspective. The Islamic economic approach to business rejects the practices of riba (interest), gharar (uncertainty), and maysir (speculation), and requires the implementation of a system based on profit sharing such as mudharabah and musyarakah. In addition, in carrying out business, it must always be ensured that the goods and services traded are halal and good, in accordance with the principles of halal and thayyib. The principles of economic growth in Islam include tawhid, rubiyyah, caliphate, and tazkiyah. It is hoped that by complying with sharia business ethics, a Muslim entrepreneur can maintain his business because he will always receive the blessings of Allah SWT both in this world and in the hereafter.

Energy-Efficient Base Station Switching-Off With Guaranteed Cooperative Profit Gain of Mobile Network Operators

This paper studies the energy-efficient cooperative base station (BS) switching-off in multi-input single-output (MISO) cellular networks, where the roaming-cost-based cooperation and the cooperative beamforming among multiple mobile network operators (MNOs) are jointly designed. To make the cooperation among MNOs practical, we introduce a new constraint to make sure the cooperative profit gain of MNOs is non-negative and also formulate an optimization problem to maximize the system energy efficiency (EE) by jointly considering multiple factors, including the operation modes of BSs, the connection states between users and BSs, the beamforming vectors of multi-antenna BSs under constraints of users’ quality of service, BSs’s power budget, and the non-negative profit gain of MNOs, etc. To solve the non-convex problem, we propose an energy-efficient beamforming-aware BS switching off method (EBBSOM), in which we first design a roaming-cost-based BS switching-off algorithm (EE-BSOA) to search the feasible inactive BSs and then propose a successive convex approximation (SCA) and Dinkelbach’s method-based EE maximization beamforming algorithm (EE-BFA) to optimize beamforming vectors. In order to keep the cooperative profit gain non-negative for MNOs and also to balance the load and power consumption of BS from the profit perspective, we present a profit-wise BS switching-off priority method. We theoretically prove that the proposed EBBSOM is able to resolve the inconsistency between BS switching-off and EE maximization. Simulations show that the proposed EBBSOM enhances the system EE without degrading the economic profit gain of MNOs. Also, the proposed profit-wise BS switching-off priority enables the EBBSOM to achieve higher EE than traditional load-wise one. Furthermore, it is also observed that there exists a feasible rate price region, which is able to clearly characterize network EE and the average profit gain of MNOs simultaneously.

Role of Environment Dimensions to strive Sustainable Entrepreneurship: A Triple Bottom Line Approach

Purpose: The study aims to examine the role of Sustainable Entrepreneurship through the lens of Triple Bottom Line (TBL) with intervention of environment dimensions in Indian MSMEs context. Theoretical framework: Sustainability has become the most important concern in today’s world due to the changes in the climate and environment deterioration. The TBL approach includes the people, planet and profit perspective; environment dimensions include the green and non-green initiatives that would help entrepreneurs to achieve their sustainable goals. Design/methodology/approach: The quantitative research design is adopted to collect 107 entrepreneurs’ data from Delhi NCR using purposive sampling. The study examines the relationship among Sustainable Entrepreneurs (profit, planet and people) and environmental dimensions (green and non-green initiative) using SPSS and Hayes PROCESS. Findings: The study concludes that there exists a correlation between people and planet; people and non-green initiatives; planet and profit; planet and non-green initiatives; and lastly green initiatives and non-green initiatives. In addition, non-green initiative mediates the relationship between people and planet. However, planet is correlated with only profit. Research, Practical & Social implications: The research discusses various approaches for MSME to endeavour sustainability with the help of environment dimensions. The appropriate practice of adopting such sustainable approaches will eventually drive enterprises towards profit, thus becoming sustainable entrepreneurs. Originality/value: TBL approach is viewed along with the environmental dimensions for the purpose of protecting environment and enabling an enterprise move towards higher profit. The study also discusses strategies for policymakers, education institutes for promoting sustainable entrepreneurship.

한⋅일 은행산업의 메타효율성 비교: 이윤을 바탕으로

Purpose: This study aims to improve the competitiveness of the domestic banking industry by diagnosing the efficiency of the Japanese and Korean banking industries, which have similar financial environments such as long-term low growth and low interest rates.
 Research design, data, and methodology: The research method uses probabilistic frontier analysis (SFA) and the form of a profit function based on five years (2015- 2019) data for 35 banks in Korea and Japan. This study estimates the individual frontiers of Korean and Japanese banking groups, and estimates the meta-frontiers that encompass the individual frontiers of Korean and Japanese banks operating with different technologies. In addition, the international technology gap between two countries is measured and meta-profit efficiency is calculated using the profit efficiency of each country and the international technology gap. Through this verification process, the management characteristics of countries leading the meta-frontier and the banking industry in that country are confirmed.
 Furthermore, we regressively analyze the determinants of inefficiency for the profit and technology gap of the two national banking groups and draw implications. This study differs from previous studies in that it uses a probabilistic frontier analysis and a profit function for the international banking industry from a profit perspective.
 Results: As a result of empirical analysis, first, in terms of profit efficiency by country, the Bank of Korea group is more efficient. However, in the international technology gap, the Japanese banking group is considerably ahead of Korea. Accordingly, in terms of meta profit efficiency, the Japanese banking group is ahead of Korea, which is due to the international technology gap. Second, the meta profit efficiency of Japan’s three major urban banks is the highest with an average of 0.91 for five years, and among them, Mitsubishi UFJ Bank was found to be the leading bank among all the research target banks. Third, it was analyzed that the profit efficiency improvement effect occurs only when the market concentration (HHI index) of both countries’ banking groups is increased and the net loan ratio is lowered.
 Implications: Therefore, it was suggested that the banking industry of the two countries should increase their market dominance by increasing the beneficiary assets other than loans, because the increase in bad debts due to credit risk increases as the amount of loans increases and negatively affects the efficiency of banks.

Optimal choice of power battery joint recycling strategy for electric vehicle manufacturers under a deposit-refund system

In recent years, worldwide electric vehicle (EV) sales have experienced rapid growth, and recycling an enormous quantity of spent power batteries has become a challenge. This study aims to explore the optimal joint recycling strategy from the EV manufacturer’s perspective by using game theory-based models. The model investigates four kinds of joint recycling strategies: 1) nonalliance (NA) mode, 2) alliance with the power battery manufacturer (APBM) mode, 3) alliance with the third-party recycler (ATPR) mode, and 4) integrated alliance (IA) mode. The results show that: 1) A deposit-refund system can effectively increase the recycling rate. However, an excessive upfront disposal fee will reduce overall profits. 2) For the closed-loop supply chain, the optimal alliance mode depends on the intensity of recycling competition. When recycling competition is fierce, the IA mode is the best alliance mode. When recycling competition is weak, the NA mode is the optimal choice from the recycling rate perspective, and the APBM mode is the optimal choice from the total profit perspective. 3) For the EV manufacturer, the alliance in which its proportion of the extra joint profit is highest tends to be the optimal choice.

Getting more third-party participants on board: Optimal pricing and investment decisions in competitive platform ecosystems

In two-sided markets, hardware/software platforms meet the unified and personalized demands of consumers through hardware and software products respectively, forming their own ecosystems. For platform enterprises, how to drive third-party value creation through interface extensibility investment (typically on application programming interfaces, or APIs) under different pricing schemes, has become a critical issue under intensified competition. In this paper, we build game theoretic models in four platform competition scenarios (NR, NRT, IR, IRT) considering both investment decisions—no investment (N), investment (I), and pricing decisions—registration fee only (R), registration fee and transaction fee (RT), and analyze the competitive equilibrium in each scenario. Our results show that: (1) Although “reducing price” and “enhancing investment” are partial substitutes, platforms are still incentivized to implement both strategies. Contrary to the traditional wisdom, when platforms with investment charge both registration and transaction fees, the strengthening of cross-side network effect may lead to an increase in registration fee on both sides. (2) The improvement of interface extension effectiveness (cost reduction for developers per unit of investment from platforms) shifts more developers from single-homing to multi-homing, leading to fiercer market competition and thus lower platform profit in equilibrium. (3) Although implementing investment may not be optimal from the profit perspective, it does help platforms in securing a larger market share on the developer side. (4) The existence of same-side network effect enhances both side users’ incentive to enter the market; however, for the platforms, they should carefully mind the irrational price competition to avoid falling into profit-hurting traps.

Do Corporate Governance Mechanisms Truly Act as the Drivers of Shareholder Value in the Banking Sector in Bangladesh? Evidence from the Economic Profit Perspective

This study examines whether corporate governance mechanisms (CGMs) truly act as the drivers of shareholder value (SV) in the banking sector in Bangladesh from the economic profit perspective. The study employs a random-effects model to test hypotheses in a sample of 29 banks listed on the Dhaka Stock Exchange for the period 2014–2018. Relying on the test results of CGMs on SV measured from the economic profit perspective, this study finds that only the independent audit committee acts as a driver of truly creating shareholder value. Contrary to expectations, other CGMs in the analysis (e.g. board size, independent non-executive directors, audit committee size, audit committee meetings, and institutional shareholding) are not found to create true shareholder value. The outcomes of the study are a matter of concern for the regulatory bodies of the Bangladeshi banking sector and institutions involved in constructing the code of corporate governance, as the existing CGMs are suboptimal in the sense that they do not truly act as value-driving mechanisms for shareholder value.

The role of father’s influence in the development of a young child. Developmental profit perspective

The considerations undertaken in this article, taking into account the broadly understood issues of fatherhood, serve to show the importance of father's influence in the development of a small child. They are accompanied by the assumption that engaged fatherhood (and this is the new fatherhood) is for many reasons beneficial, above all for a child, at any age, especially in early childhood (due to the intensity and scope of the ongoing developmental changes).

Optimizing Profit by Mitigating Recurrent Churn Labeling Issues: Analysis from the Game Domain

Churn can be interpreted as customer defection and can be considered one of the most critical challenges in the Game Analytics domain because of its impact on the game industry's profit. When predicting churn, the first step is defining what is considered churn, which can change depending on the players' behaviors and approaches. This work studied related works and revealed two recurrent issues in the labeling process: limitations on the adopted labeling approaches (1) and the static definition of churn (2). To mitigate the first issue, an individualized labeling approach was deployed. To address the second one, a novel evaluation method, based on the impact of a change in the churn definition, was proposed. This method allowed the proposition of two new labeling approaches, which were included in the analysis. By comparing the labeling approaches in two games using a profit perspective, it was identified that the new ones present statistically significant benefits compared to the traditional ones. Regarding the evaluation method, its usage can justify when the redefinition of churn and the classifier's retraining should happen to improve profit. The results are valuable for the game context, potentially extended to other contexts by delivering more reliable labels and more validated classification performance.

IMPLEMENTASI IMPLEMENTASI METODE ANALYTICAL HIERARCHY PROCESS (AHP) DALAM PERANCANGAN MATRIKS PENILAIAN KINERJA

- PT. Perkebunan Nusantara VI Timber Business Unit Aro Kerinci is a company engaged in processing. Customer satisfaction is a major key in the service development process. Therefore, increasing the performance of a company is to increase the quality of a company. Performance is a description of the level of implementation of an activity, program, realizing the goals, objectives, mission and vision of the organization which are contained in the formulation of an organization's strategic scheme (strategic planning). Retrieval of performance results at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit has four perspectives and ten indicators, namely financial indicators with increasing profit perspective, customer indicators, consumer loyalty and increasing number of consumers, internal business indicators, number perspective, work accident rate and employee attendance and learning perspective and satisfaction indicators growth. employees, increase employee competition and rewards or rewards. To determine the level of service at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit is carried out using the Analytical Hierarchy Process (AHP) method with hierarchical stages, pair comparisons and consistency checks in carrying out this consistency check carried out by several stages of Weight Sum Factor (WSF), Consistency Factor (CF), index consistency (CI), index ratio (RI) and Consistency Ratio (CR).

IMPLEMENTASI IMPLEMENTASI METODE ANALYTICAL HIERARCHY PROCESS (AHP) DALAM PERANCANGAN MATRIKS PENILAIAN KINERJA

- PT. Perkebunan Nusantara VI Timber Business Unit Aro Kerinci is a company engaged in processing. Customer satisfaction is a major key in the service development process. Therefore, increasing the performance of a company is to increase the quality of a company. Performance is a description of the level of implementation of an activity, program, realizing the goals, objectives, mission and vision of the organization which are contained in the formulation of an organization's strategic scheme (strategic planning). Retrieval of performance results at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit has four perspectives and ten indicators, namely financial indicators with increasing profit perspective, customer indicators, consumer loyalty and increasing number of consumers, internal business indicators, number perspective, work accident rate and employee attendance and learning perspective and satisfaction indicators growth. employees, increase employee competition and rewards or rewards. To determine the level of service at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit is carried out using the Analytical Hierarchy Process (AHP) method with hierarchical stages, pair comparisons and consistency checks in carrying out this consistency check carried out by several stages of Weight Sum Factor (WSF), Consistency Factor (CF), index consistency (CI), index ratio (RI) and Consistency Ratio (CR).

IMPLEMENTASI IMPLEMENTASI METODE ANALYTICAL HIERARCHY PROCESS (AHP) DALAM PERANCANGAN MATRIKS PENILAIAN KINERJA

- PT. Perkebunan Nusantara VI Timber Business Unit Aro Kerinci is a company engaged in processing. Customer satisfaction is a major key in the service development process. Therefore, increasing the performance of a company is to increase the quality of a company. Performance is a description of the level of implementation of an activity, program, realizing the goals, objectives, mission and vision of the organization which are contained in the formulation of an organization's strategic scheme (strategic planning). Retrieval of performance results at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit has four perspectives and ten indicators, namely financial indicators with increasing profit perspective, customer indicators, consumer loyalty and increasing number of consumers, internal business indicators, number perspective, work accident rate and employee attendance and learning perspective and satisfaction indicators growth. employees, increase employee competition and rewards or rewards. To determine the level of service at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit is carried out using the Analytical Hierarchy Process (AHP) method with hierarchical stages, pair comparisons and consistency checks in carrying out this consistency check carried out by several stages of Weight Sum Factor (WSF), Consistency Factor (CF), index consistency (CI), index ratio (RI) and Consistency Ratio (CR).

Implementasi Metode Analytical Hierarchy Process (AHP) Dalam Perancangan Matriks Penilaian Kinerja (Studi Kasus Pada PT.Perkebunan Nusantara VI Unit Usaha Kayu Aro Kerinci)

PT. Perkebunan Nusantara VI Timber Business Unit Aro Kerinci is a company engaged in processing. Customer satisfaction is a major key in the service development process. Therefore, increasing the performance of a company is to increase the quality of a company. Performance is a description of the level of implementation of an activity, program, realizing the goals, objectives, mission and vision of the organization which are contained in the formulation of an organization's strategic scheme (strategic planning). Retrieval of performance results at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit has four perspectives and ten indicators, namely financial indicators with increasing profit perspective, customer indicators, consumer loyalty and increasing number of consumers, internal business indicators, number perspective, work accident rate and employee attendance and learning perspective and satisfaction indicators growth. employees, increase employee competition and rewards or rewards. To determine the level of service at PT. Perkebunan Nusantara VI Aro Kerinci Timber Business Unit is carried out using the Analytical Hierarchy Process (AHP) method with hierarchical stages, pair comparisons and consistency checks in carrying out this consistency check carried out by several stages of Weight Sum Factor (WSF), Consistency Factor (CF), index consistency (CI), index ratio (RI) and Consistency Ratio (CR).

Optimal duration, rate and price when online retailers offer installment payment services

Purpose Online retailers have become gradually popular to offer consumers installment payment services in the past few years. This paper aims to study how to determine the duration and rate of installment payment services, as well as the price of products to increase online retailers’ profits. Design/methodology/approach By modeling the utility functions, the behavior of consumers for strategic choosing the payment method and payment timing is analyzed. Thus, the market segments are obtained through the comparison of the consumer’s utilities. Combined with the given assumptions, the installment payment strategies for online retailers is investigated. This paper focuses on the impact of installment payment services on consumers’ purchasing behavior and online retailers’ profits by modeling and comparative analysis. No installment payment service as a benchmark, it is demonstrated whether online retailers can obtain more profits by offering installment payment services or what are the applicable conditions for installment payments. Findings If the installment payment service is offered, online retailers can gain more profits and need to adopt appropriate strategies based on different market conditions. During the depression or the peak shopping season, online retailers should take the strategy of free installment rate, and moderately increasing the product price of no installment service. When market demand is stable or during non-peak season, online retailers need to set a higher installment rate and maintain the product price without installment service. Finally, online retailers should determine the maximum duration of installments they can afford based on own risk control cost and allow consumers to freely choose the length of the installment within the duration limit. Originality/value First, the authors deeply analyze consumers’ payment and purchase behavior when the online retailer offers the installment payment service. Then, it is theoretically proved why many online retailers have offered installment payment services to consumers from a profit perspective. Finally, this paper proposes the optimal duration of installments, installment rate and product price in different market environments for online retailers, to provide theoretical basis and managerial insights for the development of installment payment service in online shopping.

Saving for one another: the informal economy of subsistence among the urban poor in Ghana

Urban space is monetized. Survival in urban areas is therefore largely dependent on the dictates of methodological individualism, capitalist norms and values, which are invariably linked to rent-seeking and instrumentalism in most urban transactions. The urban poor in Ghana, who are mostly informal sector workers, face enormous challenges in transacting with banks and other financial institutions. This challenge, however, does not prevent them from participating in the money market. They devise strategies of savings and acquiring loans largely on interest-free basis. They also invest in informal activities to financially secure themselves and their future. This paper discusses the mechanisms that regulate the institutionalization of informal savings and investments in urban poor communities in Accra and Winneba in Ghana. It is based on a qualitative research conducted between 2014 and 2016 with 133 participants in four Ghanaian communities using purposive sampling technique. The study employs the concept of equality matching to discuss urban financial common strategies. The paper attempts to debunk the hegemony of the capitalist profit perspective in urban transactions, emphasizing that the urban poor in Ghana mobilize their finances through established social relations with largely no profit-making in mind.

Towards sustainable European seaweed value chains: a triple P perspective

Abstract Seaweeds are seen as important future feedstock for Europe, providing biomass for food, feed, and other applications. Seaweeds can contribute to a circular food system a protein transition and bio-based economy. Europe is a minor player in the world market dominated by the Asian producers and processors. According to the FAO, total production of aquatic plants (dominated by seaweed) was 30 million tonnes in 2016, with China (47.9%) and Indonesia (38, 7%) dominating production. This article discusses the challenges to seaweed production and use in Europe and formulates future directions for upscaling the European seaweed sector. From a People, Planet, Profit perspective, there is no need to focus on producing large volumes of seaweed per se. We need to focus on nature-inclusive production systems, producing the right amount of the right seaweeds, based on the carrying capacity of the European seas. The seaweed sector must avoid developing along the “old” economy’s way of cost leadership but develop along the way of the “new” circular economy. Seaweeds should not be seen as a new product “added” to the market but become an integral part of the European food system, being used for human consumption, feed and improving production processes.

The Importance of Menu Variety Experience for Public Health Sustainability at Higher Education Institution

The importance of menu variety from the perspective of public health has lacked of discussion in the literature in comparison to the profit perspective of a foodservice business. This paper reports finding of a research on the importance of menu variety for the sustainability of public health at higher education institution (HEI) from students perspective. Direct observation towards food displayed on the buffet counter of the cafeterias and interview sessions with students were conducted to identify attributes of menu variety as constructs for a survey research. Complete set of 375 questionnaires were collected among students as customer of 20 food outlets at 11 cafeterias of the HEI. Validity value of the questionnaire was 0.98, that analysed by Rasch Development Model. Survey data was analysed using discriptive statistics. Overall mean value for menu variety attributes was 1.97 and standard devition, 0.656, which at the moderate level. This study suggested for the cafeteria food providers, customers and the HEI food autorithy to ensure high level of menu variety is offered to sustain public health of the HEI, customer satisfaction and long tender period of the cafeterias as a food provider.

Cost-sensitive boosted tree for loan evaluation in peer-to-peer lending

Abstract Loan evaluation is an effective tool for credit risk assessment in the peer-to-peer (P2P) lending market. However, most of the traditional loan evaluation models assume a balanced misclassification cost, which is far from business reality and leaves opportunities for investigating the cost-sensitive modelling approaches. Moreover, few existing studies consider the special characteristics of P2P lending. In this paper, we propose a cost-sensitive boosted tree loan evaluation model by incorporating cost-sensitive learning and extreme gradient boosting (XGBoost) to enhance the capability of discriminating potential default borrowers. Therefore, a portfolio allocation model that converts the portfolio optimization problem into an integer linear programming is proposed as a decision support system for unprofessional lenders. Unlike existing studies, which mainly evaluate the model through accuracy-based metrics, this study measures the expected profitability based on the annualized rate of return (ARR) and proposes a new metric (ARR curve) reflecting the ARR over different rejection rates. Two real-world P2P lending datasets are examined, and explanatory data analysis shows that explanatory variables differ in predicting the probability of default and profitability. Experimental results reveal that the area under the ARR curve is not a considerable metric in evaluating models from a profit perspective. Conventional cost-insensitive models may even lead to negative returns, whereas the proposed loan evaluation and portfolio allocation model are the best performing methods over the two datasets in terms of profitability.

On Corporate Social Responsibility, Sensemaking, and the Search for Meaningfulness Through Work

Corporate social responsibility (CSR) focuses on many types of stakeholders and outcomes, including stakeholders outside of the organization and outcomes that go beyond financial results. Thus, CSR expands the notion of work to go beyond a task, job, intraindividual, intraorganizational, and profit perspective and provides an ideal conduit for individuals to seek and find meaningfulness through work. We adopt a person-centric conceptualization of CSR by focusing on sensemaking as an underlying and unifying mechanism through which individuals are proactive and intentional agents who search for and find meaningfulness through work. Our conceptualization allows us to understand variability in CSR effects due to variability in employee sensemaking and the meaningfulness employees experience from CSR; highlight synergies across disconnected theories and streams of research originating in different disciplines and at the intraindividual, intraorganizational, and extraorganizational levels of analysis; and propose new research directions for the future in the form of propositions and research questions. By using sensemaking as a unifying underlying process, the proposed conceptualization explains how individuals find meaningfulness through work and, consequently, when and why employees experience CSR in a particular manner—resulting in more or less positive outcomes for themselves, their organizations, and external stakeholders. Our proposed model could also be used in other individual-level research domains that would benefit from (a) placing people and their search for meaningfulness center stage and (b) focusing on the role that same-level and cross-level interactions among intraindividual, intraorganizational, and extraorganizational sensemaking factors play in the process.

CEO Wealth Sensitivity and Corporate Social Responsibility

We use CEO wealth sensitivity to stock performance (delta) and stock volatility (vega) to provide empirical evidence that supports the conclusion that CEO compensation structure influences firm Corporate Social Responsibility (CSR). We find that CEOs are uncertain about the viability of CSR investments from a profit perspective, but that they are confident that CSR initiatives increase firm risk. We quantify firms' CSR ratings using the Kinder Lydenberg Domini ratings system and compute measures of delta and vega in accordance with previous studies. Using panel data spanning 1995-2010 , we estimate a fixed effects model to determine the relationship between delta, vega and firm CSR rating. We find that delta has no significant effect on CSR rating, while vega has a strong causal relation with CSR.