Gadjah Mada International Journal of Business
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    286 research outputs found

    Psychological Empowerment Link Using Employee Performance and Organizational Commitment on the Generation Gap: PLS-MGA Analysis

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    The generation gap is critical, especially when employees do not agree about some terms that affect their completion of tasks. This issue is debated in organizations, causing incompatibilities between human resource management and development structures. Hence, these constraints led this study to measure the differences shown by generations X and Y, and how they impact the relationship between psychological empowerment, employee performance, and organizational commitment. This research used questionnaires and in-depth interviews as the main procedures for collecting and obtaining data—196 items of data were received from the Malaysian Islamic Finance Agency. SmartPLS software was used to test the research hypotheses and the differences between the two groups are Gen X and Y (PLS-MGA). The results of the PLS-MGA test confirmed that, in the relationship of psychological empowerment and job performance alone, it was found there was a generational difference between X and Y (p-value < 0.05). However, while running the hypothesis test (using the bootstrapping test), it was found that both hypotheses are acceptable, which shows the relationship between psychological empowerment and job performance based on two different groups, namely Gen Y = t-statistic (10.961) and Gen X = t-statistic (11.993). Thus, H1 is supported. Meanwhile, the relationship between psychological empowerment and organizational commitment is based on two different groups, namely Gen Y = t-statistic (8.675) and Gen X = t-statistic (8.349), which means H2 is also supported. Consequently, it is hoped that the findings of this study will serve as essential guidance for employers in both the public and private sectors. Human resource management teams can use the findings to understand the natural complexity of psychological empowerment constructs in realizing the challenges and difficulties in predicting organizational goals, in terms of job performance and organizational commitment

    Factors Affecting Early Retirement Intentions With the Mediating Mechanism of Job Engagement

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    The main objective of this study is to empirically examine the associations between work goals (intrinsic and extrinsic) and early retirement intentions, with the mediating mechanism of work passion and the moderating role of flexible HR practices, spouse’s health, and position level (employees’ position level in organizations, e.g., junior manager at lower level, deputy manager at middle level, or senior manager at upper level etc.). Data for the study was collected through survey-based questionnaires distributed to a sample of 350 female employees from different public and private sector organizations in Pakistan. Testing of the hypotheses was conducted using structural equation modeling (SEM) with WarpPLS software. The findings indicate that employees’ work goals are  positively related to the level of passion they feel about their work. However, this has a negative impact on their early retirement intentions. Besides, the results show that this work passion mediates the relationship between work goals and early retirement intentions. Furthermore, flexible HR practices, position level, and spouse’s health moderate the relationship between work passion and early retirement intentions. The study’s theoretical and managerial contributions and limitations are also discussed at the end of the article

    Linking Relationship Marketing to Customer Loyalty in The E-Banking Context: The Central Role of Customer Satisfaction

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    This research examines the interrelationships between relationship marketing, customer satisfaction and customer loyalty in e-banking’s context. The study was conducted in two phases: In-depth interviews and a quantitative survey with a sample of 690 Vietnamese individual and corporate e-banking customers. The research results show that customer satisfaction mediates the impact of relationship marketing on customer loyalty among individual customers. Meanwhile, instead of customer satisfaction, relationship marketing significantly and directly contributes to the loyalty of the corporate customer group. The significance and magnitude of the effects that the five dimensions of relationship marketing’s effectiveness have on customer satisfaction and loyalty, which include the banks’ commitment, customer experience, process-driven approach, service reliability and application of technology, are also different between the two customer segments. This study theoretically contributes to the research stream regarding the mechanism underlying the relationship between relationship marketing’s effectiveness and customer loyalty in the e-banking context, and proposes practical implications for commercial banks to effectively apply relationship marketing in the virtual business environment

    Service System Innovation and Competitiveness In an Emerging Market: The Moderating Role of Managerial Competencies

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    This study empirically examines the correlation between service system innovation and competitiveness in Nigeria, an emerging market, by focusing on the country’s mobile telecommunications sector. The moderating effect of managerial competencies was also tested. Due to the contribution of the telecommunications sector to the economic well-being of Nigeria and the world’s economy at large, the sector witnesses a high level of competition among its players, resulting in unsustainable price wars, negatively impacting the telecommunication firms and their ability to invest in service improvements. Thus, there is a need for a study into the factors affecting competitiveness in the telecommunications sector. A cross sectional survey was used because the study explored the relationships between service system innovation, managerial competencies and competitiveness. The study used a survey instrument, which was sent to 450 respondents using Google Forms, out of which 230 responded. The 230 returned copies represented a 51.1 percent return rate, which satisfied the minimum required return rate for a cross sectional study. The study’s hypotheses were tested using the partial least squares structural equation model (PLS-SEM). The finding revealed that service system innovation (idea development, service development and commercialization) enhances the competitiveness of mobile telecommunication firms. Thus, an increase in idea development, service development and commercialization is essential for a competitive advantage. Also, managerial competencies were found to significantly moderate the relationship between service system innovation and competitiveness. The study provides a new insight into how service system innovation affects the competitiveness of telecommunications companies, particularly in emerging markets, with Nigeria as the focal point. It also shows the role managerial competencies play in the telecommunications sector. This study offers proof of the traits of service system innovation, managerial competencies, and competitiveness in the telecommunications sector. It also developed and tested a scale for measuring these variables, which future studies could adopt

    The Impact of Information Sharing and Inventory Management Practices on Firms’ Performance in Supply Chain Practices

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    This study’s aim is to conduct an empirical investigation of the impact of supply chain practices on firm performance. The prime objective of the paper is to study the impact of information-sharing practices and inventory management on firm performance. To realize the specified objective of the study, data were gathered from 170 individuals who are familiar with the supply chain practices of the companies and analyzed using structural equation modeling (SEM). The result shows a significant direct and indirect effect of information sharing and inventory management practices on firm performance. Generally, the results show that higher information-sharing practices and better inventory management practices lead to greater firm performance; and higher information-sharing leads to improved inventory management, which in turn leads to greater firm performance. Theoretically, the result provides evidence of the effects of information sharing and inventory management on the supply chain practices’ performance in a firm. The managerial implications of the results are enhancing information sharing and inventory management practices by adopting, internalizing, and building information technology into all the business operations to enhance information sharing and inventory management practices to enhance firm performance

    Improving Entrepreneurial Satisfaction Through Creativity and Intellectual Agility-Resonance: Evidence from Indonesia

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    Entrepreneurship is a personality attribute that enables a person to discover resources passionately through a combination of new strategies to generate significant market value. Therefore, this research aims to examine the importance of the intellectual agility-resonance of businesses in all industrial sectors in Indonesia. Quantitative data were collected from 303 small and medium-sized micro-enterprises and analyzed using SEM-PLS line analysis. The result showed that the intellectual agility-resonance of entrepreneurial creativity increases satisfaction. Furthermore, empirical research on aspects like psychological well-being, financial optimism, job risks, and outcomes show what can be achieved through intellectual agility-resonance. Theoretically, entrepreneurial creativity is an intellectuality that comes from the dimension of the source of competitive excellence

    Does Government Accounting Information Matter to Gain Votes? Evidence from Local Elections in Indonesia

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    Voting decisions have become a strategic tool to analyze whether voters consider an incumbent's economic policies make it worthwhile re-electing the incumbent. If a strong correlation between the information on economic policies and the election results could be proved, evidence would thus be found that government accounting captures data on the attributes of government finances, consistent with the information incorporated by constituents in their voting decisions. This study investigates the association between government accounting information and local election outcomes and observes two regional government clusters that held local elections in 2017 and 2018, in which 198 incumbents ran for office again. By employing regression analysis, this study finds that several accounting information items impact the vote acquisition of the incumbents. The specific finding is that budget accounting information has a more decisive influence on votes for the incumbents than financial accounting information does. The result implies budgetary accounting information that represents service performance is beneficial for gaining votes. The limitation that should be considered is the emphasis on the assumption of voter rationality, in which the voters accumulate performance information on the incumbents for their voting decisions. It is highly improbable that voters will allocate time to collecting and reading government financial statements on purpose

    CEO Type and Earnings Management to Avoid Loss or Earnings Decreases: Evidence from South Korea

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    This study examines the relations between the CEO type (owner CEO vs. professional CEO) and earnings management over 9,266 firm-years from 2011 to 2020 in Korea. Two earnings management measures, accrual management and real activity management (abnormal cash flow from operations, abnormal production cost, and abnormal discretionary expense), are considered as means to avoid reporting losses or earnings decreases. We partition the sample into two groups based on the type of CEO (owner CEO vs. professional CEO) and investigate whether earnings management is used for achieving earnings targets (small profit or small earnings increases) for each group. We find all earnings management measures are significant at the 5% level or better in the direction of aggressive earnings management in the owner CEO sample, while all but one measure (abnormal production cost) are insignificant in the professional CEO sample. Our findings suggest that an owner CEO is more likely to manage earnings to achieve small profit or small earnings increases compared to a professional CEO

    The Effect of Entrepreneurial Attitudes and Individual Attributes on Entrepreneurial Activity in the context of ASEAN Member States: Evidence from Thailand and Vietnam

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    This study analyzes the influence of entrepreneurial attitudes and individual at­tributes on entrepreneurial activity in two ASEAN member countries: Vietnam and Thai­land. By applying the multinomial logistics regression (MLR) analysis method, the results show that those with an entrepreneurial network, who can read business opportunities, and have skills and knowledge, have a positive and significant influence when deciding to start and invest in others’ new businesses. On the other hand, females and those with a secondary education were more likely to engage in entrepreneurial activities. The study also shows that Vietnam’s entrepreneurial attitudes and individual characteristics seem to be better, differentiating it from Thailand. The Global Entrepreneurship Monitor (GEM) data from 2017 were the most recent data available at the time of this study. However, the availability of more up-to-date data is considered necessary to enrich and expand the im­pact of future research

    Financial Distress and Audit Report Lags: An Empirical Study in Korea

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    This study examines the association between a firm’s financial distress and audit report lags. Through this analysis, we intend to reveal whether auditors consider theclients’ financial distress when performing external audits. This study employs 2,786 firmyear observations from 2011 to 2018. The sample of this study consists of companies listedon the Korea Composite Stock Price Index (KOSPI) and the Korea Securities Dealers Automated Quotation (KOSDAQ). We perform OLS regression analysis to test our hypothesis. The OLS regression analysis is conducted through the SAS and STATA programs.We find that there is a significant and positive association between financial distress andaudit report lags. The audit report lags increase as the likelihood of clients’ financial distress increases. The results indicate that audits take different amounts of audit effort whenauditors consider financial distress as a business risk when they conduct audits. In otherwords, we provide evidence that auditors increase the amount of audit effort when thelikelihood of clients’ financial distress is high. In the absence of studies on how externalauditors respond to audited firms' financial distress, this study analyzes whether externalauditors change their audit efforts by assessing the audited firms' financial distress. Second, the empirical result that external auditors actually follow the guidelines related tobusiness risk and financial distress specified in the Korean Auditing Standards supportsthe effectiveness of the business risk-related regulations specified in the Korean AuditingStandard

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