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1 Business and Economic ABS-2

ANALYSIS OF PRODUCTION PROCESS OF ELECTRONIC TRANSFORMER BY LEAN SIX SIGMA AND TRIZ
Adritho Zaifar

Institut Teknologi Sepuluh Nopember Surabaya
Jl. Cokroaminoto No.12A, DR. Soetomo, Kec. Tegalsari, Kota SBY, Jawa Timur 60264

INTERDICIPLINARY SCHOOL OF MANAGEMENT TECHNOLOGY


Abstract

PT X is one of Indonesia^s main manufacturers and distributors of electronic transformers. The company has struggled to keep up with the increased quantity and quality demanded by customers. At the same time, the company wants to minimize non-value-added activities in the production process. This research aims to identify the main factors of the transformer production process to improve the efficiency and quality of the electronic transformers produced. This research uses Lean Six Sigma and Cause Analysis to identify waste in the production process that causes long lead times and lower quality standards. The TRIZ methodology will support process improvement efforts if the improvement resulting from the Lean Six Sigma method produces contradictions. The data that will be used is data on the production flow of electronic transformers from start to finish and data on group discussions. The result of the studies found that if PT. X eliminates non-value-added activities through automation, the investment that the company made in these technologies is deemed profitable as the NPV calculation result is a positive Rp. 43,181,818. The result of this automation will also enable PT. X to reduce the number of its labour which resulting a cost saving of around 54% of its labour cost in which if converted into monetary value will be Rp. 68,255,748 in financial savings.

Keywords: Root Cause Analysis, TRIZ, Focus Group Discussion (FGD), Lean Six Sigma, Productivity, and Quality Improvement

Share Link | Plain Format | Corresponding Author (Adritho Zaifar)


2 Business and Economic ABS-3

Effectiveness of performance appraisal system on employee performance for National Health Laboratory Services employees in South Africa
Ntandoyenkosi Thembeka Precious Dlamini, Dr J Mhandu, Prof Muhammad Ehsanul Hoque

Management College of Southern Africa


Abstract

Many organisations conduct performance appraisals in order to assess the performance of an individual and whether they are able to achieve the objectives set for them which if they are contribute positively to the success of the organisation. Performance Appraisal can help with the motivation of employees, providing of feedback to employees and the identification of gaps that may need the management intervention. The purpose of this study was to investigates the effectiveness of the performance appraisal system and its impact on employee performance. The study used a quantitative approach in order to determine whether the performance appraisal is effective or not. A total of 120 employees were randomly selected from a total population of 233. The results revealed that there is a significant positive outcome on the current performance appraisal used by the organisation. Performance appraisal had an impact on employee performance and feedback is given to employees on how to improve unsatisfactory performance. The study also found that there is a terrific value in having a performance appraisal system in the organisation and employees do benefit from this exercise. On the other side, the study findings show a need to have regular performance appraisal exercises instead of only twice a year. There is also a great need of training and support for unsatisfactory performance. Training and support intervention on unsatisfactory performance to be offered to employees. Organisation to incorporate another performance appraisal method with the existing one which gives subordinates an opportunity to evaluate each other.

Keywords: Motivation, Feedback, benefit, training, support

Share Link | Plain Format | Corresponding Author (Muhammad Ehsanul Hoque)


3 Business and Economic ABS-4

Knowledge management practices at a food manufacturing organisation in Limpopo province of South Africa: using the SECI Model
Rahel Odede, Dr SS Mkhomazi, Prof Muhammad Ehsanul Hoque

Management College of Southern Africa


Abstract

Knowledge management (KM) is a key management tool towards obtaining and maintaining competitive advantage in an organisation. This study investigated the KM practices of a Food Manufacturing Organisation in Limpopo. The research approach and design adopted was a quantitative case study. A non-probability sample (n=171) was selected using convenience sampling. The data collection method adopted was the use of structured questionnaire which enabled respondents to indicate their attitude towards the questions asked. The results showed that the organisation had implemented KM practices for all eight factors in differing degrees. However, no single factor was consistently implemented throughout the organisation. It was also found that the organisation implementation of mentorship, knowledge sharing and team reflexivity performed the best, while the use of technology, staff development, communication and organisational memory were a challenge. It was recommended that the organisation implement a formalised KM policy to ensure organisation-wide adoption. In addition, the organisation ought to ensure that the organisational culture and leadership are motivated and aligned with the KM strategy in order for it to be effectively implemented.

Keywords: Competitive advantage, mentorship, knowledge sharing, team reflexivity, use of technology, staff development

Share Link | Plain Format | Corresponding Author (Muhammad Ehsanul Hoque)


4 Business and Economic ABS-7

Policy influence on radiographers^ recruitment and retention in the public healthcare sector of KwaZulu-Natal in South Africa
Nonkululeko Cibane, Prof Lina Puckree, Prof Muhammad Ehsanul Hoque

Management College of Southern Africa


Abstract

A global shortage and unequal distribution of healthcare workers threaten the operational capacity of healthcare systems worldwide. Although the World Health Organization (WHO) estimated that there was a global shortage of healthcare providers, the specific shortage of radiographers has not been quantified. It is likely that the health care worker shortage which is predicted to reach 15 million by 2030 will include a similar exponential deficit in radiographer numbers. Hence, the aim of the study is to explore the influence of policies and strategies on radiographer^s recruitment and retention in the public health sector of KwaZulu-Natal in South Africa. The study employed a qualitative document review method to collect data. Thirty strategies and polices were reviewed and was analysed thematically. The findings showed that policies and procedures for recruitment and retention were in place. However, the radiography profession was poorly perceived within the health care professions and neither represented within decision making bodies nor had an advisory board. The South African Department of Health has the most brilliant strategies but most suggested strategies usually fail at the implementation phase and therefore, it is necessary that effective implementation measures be adapted in order to ensure that healthcare professionals are attracted and retained in the health care facilities.

Keywords: Advisory board, healthcare system, shortage of radiographer

Share Link | Plain Format | Corresponding Author (Muhammad Ehsanul Hoque)


5 Business and Economic ABS-8

Please Just Try to Submit ThisMinimum Essential Force (MEF) Strategy: A Systematic Literature Review in the Context of Globalization Sample Abstract
Muhammad Dhany Afrihan

Binus Business School, Binus University
muhammad.afrihan[at]binus.ac.id


Abstract

The primary objective of this study is to perform a systematic analysis of research references associated with the Minimum Essential Force in the defense and security or military sector over the past decade, or from 2013 to 2023. The current study will specifically examine the development trend of Minimum Essential Force research in the defense and security sectors, or military research based on Google Scholar data. The current investigation employs qualitative research combined with the literature review process. This study generates the recourse to publication data containing the keywords Minimum Essential Force from 2013 to 2023 that was gathered using the web crawling technique and obtained from the Google Scholar database. This study concludes that based on Google Scholar data, the growth of the Minimum Essential Force topic area from 2013 to 2023 can be described as consistently increasing. However, whats interesting is that each article was published by a distinct journal. This phenomenon indicates that there is no established journal on this topic. In addition, development maps based on keyword co-occurrence are clustered into two categories. The research is limited by the content of the articles used, which were extracted from the Google Scholar database. In the future, in addition to research with broader literature sources, the recommendations provided in this study can be used as hypotheses and in-depth, comprehensive subsequent studies. The findings of this study will likely be useful as a resource for scholars who wish to examine the Minimum Essential Force policy. The literature and bibliometric study on the issue of Minimum Essential Force is possibly the first systematic literature review carried out in Indonesia.

Keywords: Globalization, Minimum Essential Force, Systematic Review, National Army, Military

Share Link | Plain Format | Corresponding Author (Muhammad Dhany Afrihan)


6 Business and Economic ABS-9

ANALYSIS OF THE IMPACT OF DIGITALISATION IMPLEMENTATION ON CUSTOMER SATISFACTION FOR COMPANY SUSTAINABILITY (CASE STUDY OF THE TELECOMMUNICATIONS INDUSTRY)
Gunadi Dwi hantoro , Rano Kartono Rahim , Mohammad Hamsal , Asnan Furinto

Binus University


Abstract

The telecommunications industry (telco) is experiencing a significant transformation towards convergence and digitization. This transformation is being driven by a combination of technological changes, shifting customer preferences and lifestyles, regulatory updates, vendor pressure, and disruptive factors from both similar and non-similar industry. The impacts of these transformation are compounded by rising competition, creating a challenging environment for telco operators. Some of these challenges include difficulty in monetizing telco networks, decline in operator revenue growth, capital expenditure not always resulting in appropriate payback periods, and increasing number of operators altering the industry landscape.
Telco networks now require broadband channels (high-speed internet), which have become a necessity from both the operator and customer perspectives. Therefore, to ensure growth and sustainability, operators must be vigilant in meeting customer needs to sustain and grow their businesses and ensure customer satisfaction. A detailed analysis of the factors influencing customer satisfaction must be continuously conducted by telco networks to remain up to date with changes in external and internal factors.
This study was conducted to assess the impact of Product Quality, Price, and Digitalization on customer satisfaction with fixed broadband in Indonesia. Data were collected from a sample of 150 respondents from major cities in Indonesia.

Keywords: Product Quality, Price, Digitalization, Telecommunication

Share Link | Plain Format | Corresponding Author (Gunadi Dwi Hantoro)


7 Business and Economic ABS-11

Linking Resource Efficiency - The Conceptual Framework of Circular Economy Business Model Creation
Maydawati Fidellia Gunawan, Moses L. Singgih

Institut Teknologi Sepuluh Nopember


Abstract

Resource efficiency and the circular economy have an important role in environmental and also economic policies. The main point of the circular economy is to preserve resources in the economy when the product is no longer working so that materials can be reused and therefore generate more value. The efficient use of resources benefits society and the economy in the long run by protecting the world we live in and reducing dependence on the natural resources on which economies depend. This paper presents a proposed conceptual framework for designing and defining a circular economy business model. The proposed conceptual framework combines the concept of resource efficiency with a resource value mapping approach and the circular economy concept with back-casting and eco-design approaches. With this integration, it is expected to provide an alternative circular economy business model that can be implemented properly because it takes into account aspects of current technical measurements and tactical formulations for the future. In this framework consists of four sequential stages which include the stages of planning, analysis, optimization, and rethink & redesign. Stages are developed in several steps. Finally, this paper discusses the limitations of the research and proposes some of the opportunities and challenges in developing the proposed framework for future research.

Keywords: resource efficiency, circular economy, business model creation

Share Link | Plain Format | Corresponding Author (Maydawati Fidellia Gunawan)


8 Business and Economic ABS-15

How Is Green Purchase Influenced by Message Framing Through AI Versus Humans?
Chyi Jaw, I Putu Gede Iwan Trisna Jaya

Department of Business Administration,
National Yunlin University of Science and Technology, Taiwan, R.O.C.


Abstract

The development of AI has revolutionized personalized recommendations by continuously improving suggestions through learning from user interactions. However, humans bring an intuitive understanding to the process, providing personalized recommendations based on expertise, empathy, and nuanced insights not easily replicated by AI. This study explores consumers^ responses to different (AI vs. human) recommendation agents and environmental (positive vs. negative) appeals for green products, and considers the moderating effect of gender. The main purpose of this present research is to demonstrate how consumer purchase intention towards green products is influenced by negative and positive environmental appeals in an AI- or a human-recommended agent. We conducted a 2 (recommendation agents: AI vs. human) X 2 (environmental appeals: positive vs. negative) between experimental design. The results show that consumer purchase intention is different when green product messages with positive/negative environmental appeals are dealt with by an AI agent or a human agent. Additionally, the results of ANOVA reveal the moderating effect of gender on the relationship among recommendation agents, environmental appeals, and consumers^ green purchase intention. The research provides valuable insights for researchers and managers in understanding the communication effects of AI and human agents along with different message framing on green product recommendation- and the mediating influences of gender on the performance of green product recommendation agents. The authors discuss several important implications of these findings for businesses, environment protection organizations, and public policy officials.

Keywords: Artificial Intelligence- Environmental Appeal- Gender Difference- Green Purchase Intention- Recommendation Agent

Share Link | Plain Format | Corresponding Author (Chyi Jaw)


9 Business and Economic ABS-16

The Impact of Smart Farming Technology on Agricultural Productivity: Evidence from a Large-Scale Database in Thailand
Bang-Ning Hwang , Siriprapha Jitanugoon , Pittinun Puntha

National Yunlin University of Science and Technology


Abstract

Thailand 4.0 is a national strategy focused on integrating digital technologies and innovation to drive economic development in Thailand. The agricultural sector, a vital part of the economy, plays a crucial role in this strategy. One key initiative is the smart farming project, which aims to enhance agricultural productivity. This study aims to examine the impact of Thailand^s smart farming project on agricultural productivity within the context of this policy. In pursuit of this objective, the study adopts a quantitative research methodology, employing a comprehensive analysis of secondary data. The data utilized in the study is obtained from reliable sources, namely the Office of the National Economic and Social Development Council and the FAOSTAT database. This dataset spans the period from 2006 to 2020 and undergoes meticulous analysis through the application of a specified equation. The study findings demonstrate that higher growth rates of total output relative to total inputs result in noticeable improvements in agricultural total factor productivity. This positive outcome can be attributed to the significant influence exerted by Thailand 4.0 and smart farming policies. Consequently, the adoption of smart farming practices in Thailand leads to significant advancements in agricultural productivity. Based on these results, the study provides valuable insights into the implications of Thailand 4.0 for agricultural development and offers recommendations for policymakers and stakeholders. These recommendations involve strategies to leverage digital technologies in agriculture, promote innovation, enhance digital literacy and skills among farmers, and address challenges that hinder the effective implementation of digital transformation initiatives.

Keywords: Thailand 4.0 Policy, Smart Framing, Agricultural Total Factor Productivity, Innovation, Sustainable Development.

Share Link | Plain Format | Corresponding Author (Siriprapha Jitanugoon)


10 Business and Economic ABS-17

Exploring the Impact of AI Innovation Practices in Design Management on Innovation and Business Performance: A Quantitative Study
Haoyang Zhang

Universiti Sains Malaysia


Abstract

The rapid advancement of Artificial Intelligence (AI) has had a profound impact on various domains, including creative design, business, and society. This study aims to explore the influence of AI innovation practices in design management on innovation and business performance. Drawing on a quantitative research approach, we conducted a survey to collect data from a sample of companies operating in the design industry. The survey measured the extent of AI application in design management and the AI skills level of design teams. Additionally, innovation performance and business performance were assessed as dependent variables.

The findings revealed a significant positive relationship between the extent of AI application in design management and both innovation performance and business performance. Furthermore, the AI skills level of design teams was found to moderate this relationship, indicating that higher AI skills levels enhance the impact of AI innovation practices on performance outcomes. These results highlight the crucial role of AI in driving innovation and improving business performance within the design management context.

This study contributes to the existing literature by providing empirical evidence of the impact of AI innovation practices in design management. The findings offer insights for practitioners and decision-makers in the design industry, emphasizing the significance of embracing AI technologies and developing AI skills within design teams. Furthermore, the study underscores the need for organizations to adopt AI-driven strategies and processes to foster innovation and enhance business performance.

Keywords: Artificial Intelligence, AI innovation practices, design management, innovation performance, business performance

Share Link | Plain Format | Corresponding Author (Haoyang Zhang)


11 Business and Economic ABS-18

STRATEGIC ALLIANCES: STRATEGY IN REALIZING THE COMPETITIVE ADVANTAGE OF RURAL BANKS IN INDONESIA THROUGH DIGITAL INNOVATION AND BUSINESS DIGITALIZATION
Gaguk Dwi Prasetyo Atmoko (1), Harjanto Prabowo (2), Mohammad Hamsal (3), Firdaus Alamsjah (4)

Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, Indonesia 11480


Abstract

Rural Bank is an intermediary agency with an important role in supporting economic activities through collecting and distributing third-party funds to real sector funding. The performance of third-party funds collection from 2016 to 2022 shows an increase from 75.7 trillion to 123 trillion. Credit channeling also increased from 81.7 trillion to 126 trillion in the same span. However, the market share of Rural Banks is less than 2%, which is considered low and shows that Rural Banks^ competitiveness is still lower compared to the other financial service industry. The advancement of digital financial technology or Fintech may disrupt financial services and interfere with the performance of Rural Banks, which can be seen through the decreasing number of Rural Banks from 1633 in 2016 to 1426 in March 2023. Financial limitation becomes a challenge for Rural Banks in implementing Digital Innovation and Business Digitalization, including synergizing with other parties to improve customer services, which enhances Rural Banks^ competitive advantage. Therefore, this study aims to explain that Strategic Alliances are a strategy to enhance the competitive advantage of Rural Banks through Digital Innovation and Business Digitalization. Data collection was conducted by surveying directors or other top management who understand the business of Rural Banks in the conventional type, using the probability-stratified random sampling method, which was then analyzed using Partial Least Square (PLS)-Structural Equation Modeling (SEM). Out of 151 respondents, it is found that realizing Digital Innovation and Business Digitalization through Strategic Alliances is the key to promoting the competitive advantage of Rural Banks, where Digital Innovation and Business Digitalization positively impact promoting Strategic Alliance, which contributes to achieving Competitive Advantage

Keywords: Digital Innovation, Business Digitalization, Strategic Alliance, Competitive Advantage, Rural Banks

Share Link | Plain Format | Corresponding Author (Gaguk Dwi Prasetyo Atmoko)


12 Business and Economic ABS-19

Analysis Important Factors of Sales Scorecard Using AI Data
Wardatul Jannah (a), Bambang Syairudin (b)

a) Department Of Industrial And Systems Engineering,
Sepuluh Nopember Institute of Technology
Kampus ITS Sukolilo, Surabaya 60111
Wrdatljnh2607[at]gmail.com
b) Department Of Industrial And Systems Engineering,
Sepuluh Nopember Institute of Technology
Kampus ITS Sukolilo, Surabaya 60111
bambangsyairudin[at]gmail.com


Abstract

This study examines how the influence of the four perspectives of the balanced scorecard affects sales performance. Where companies need to know the important factors of more comprehensive sales performance. AI helps to find important current factors more quickly and flexibly which can be known at any given time period. This system is called Artificial Intelligence-based Sales Scorecard (AI-based Sales Scorecard). This research was conducted by obtaining important factors which are also important indicators of sales management from Artificial Intelligence (AI) information. Then grouping these indicators into four Balanced Scorecard perspectives. To test the relationship with each perspective, the PLS-SEM method is used. According to AI, there are several important factors in measuring current sales management, namely revenue, number of products sold, average sales value, sales growth rate, customer data analysis, percentage of returning customers, competition in the market, and employee competition. Then a grouping is carried out where Revenue, Number of Products Sold, Average value of sales, are grouped into a financial perspective. Analysis of customer data and the percentage of returning customers are grouped into a customer perspective. Competition in the market is included in the internal and business perspectives. Employee competition is included in Learning and Growth. Data was collected by survey using a Likert scale of 1-5 to 250 respondents in a manufacturing company and 250 respondents in service companies. The result is valid with the output of this study showed that 8 factors met the AVE criteria above 0.5 and Factor Loading above 0.7.

Keywords: Sales Performance, AI Data, PLS-SEM

Share Link | Plain Format | Corresponding Author (Wardatul Jannah)


13 Business and Economic ABS-20

The Impact of Leadership and Digitalization Towards Business Resilience with Networking Capability as a Mediator
Gunadi Dwi Hantoro, Harjanto Prabowo, Mohammad Hamsal, Firdaus Alamsjah

BINUS UNIVERSITY


Abstract

Purpose - This study aims to examine the effect of Leadership and Digitalization with mediating networking capability to increase business resilience especially for telecommunication industry with fixed broadband services. Research data was collected from the executive management of telecommunication technology fixed broadband providers in Indonesia via a questionnaire survey to obtain 100 valid questionnaires for analysis. The position of participants are the manager in their company. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling.
Findings - The results reveal that digitalization has a positive and significant effect on Business Risiliency. The result also indicate that Networking Capability also make the impact to Business Risiliency and the leadership is only small effect to the Business Risiliency. The finding provide practical foundation for the organisations networking capability to be framed by leadership and digitalization to enhance the business resiliency.
Originality/value - The results of empirical testing in the field of managers in the Telco company indicate that the Networking capavility mediates the leadership and Digitalization with Business Resilience. This study also reconceptualize the leadership as a factor of business resiliency and digitalization as a new factor.

Keywords: Networking capability, Leadership, Digitalization, Business Resilience, Telecommunication

Share Link | Plain Format | Corresponding Author (Gunadi Dwi Hantoro)


14 Business and Economic ABS-22

Modification and Confirmation of PAF Model Based On Quality Costs Theory
Indra Indra, Gatot Yudoko, Nur Budi Mulyono

School of Business and Management
Institut Teknologi Bandung


Abstract

To achieve a sustainable competitive advantage, one of company must do is to implement an appropriate quality cost management strategy. Given the increasing business and management complexity, the quality cost model applied in companies needs to be ascertained whether it can still be in accordance with the current quality cost condition. The company, where one of the authors works, could not achieve its quality costs target. The authors then used the PAF (Prevention-Appraisal-Failure Costs) model to explain this phenomenon, but it turned out that there was a nonconformity between the PAF model and empirical data. The model said that increasing in costs of appraisal plus prevention will decrease total quality costs. Empirical data showed that the increase cannot always reduce the total quality costs. The research aims to solve company problems evaluate the suitability and even modify this PAF model. This paper is part of the research which only discussed this problem until the conceptual model. The full research which will use pragmatism philosophy, abductive approach, and action research strategy. From the literature review, the authors found a journal that prevention costs could reduce appraisal costs. The authors have a hypothesis that appraisal costs are a dependent variable. In the proposed PAF model, the authors split ^costs of appraisal plus prevention^ into prevention costs (independent variable) and appraisal costs (dependent variable). With the concept of this proposed PAF model, to reduce total quality costs we must only focus on prevention activities, appraisal activities are only temporary actions.

Keywords: Quality costs, PAF model, prevention costs, appraisal costs, failure costs

Share Link | Plain Format | Corresponding Author (Indra Indra)


15 Business and Economic ABS-24

Detection of Geothermal Operational Asset Anomalies Using the Locality-Sensitive Hashing (LSH) Algorithm
Muhammad Vito Hamza (a*), Fransisco T.P. Simamora (a), Efrata Pratenta Meliala (a), R. Fuad Satrio Ajie (a), Hanifah Nur Azizah (a), Fajar Khamim Mustofa (a), Adi Suparyanto (a)

a) PT Geo Dipa Energi (Persero),
Jl. Buncit Raya No.75, RW.7, Pejaten Bar., Kec. Pancoran, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12510


Abstract

Geothermal power plants are crucial for sustainable energy generation, necessitating the reliable maintenance of their operating assets. This research proposes an approach for asset maintenance through anomaly detection using the Locality-Sensitive Hashing (LSH) algorithm.
The accuracy and coverage of traditional anomaly detection approaches in geothermal power plants may be constrained by sensor monitoring systems. The LSH algorithm is used to improve detection skills and get a full understanding of the state of important assets.
The proposed method utilizes historical sensor data collected during geothermal power plant operations. This data is transformed into hash codes using LSH, effectively capturing similarities between various operational states and asset conditions.
By comparing the hash codes of the current operational state with a library of precomputed hash codes representing typical operating conditions, the LSH algorithm can identify deviations indicating potential irregularities. This facilitates early detection of anomalies, even in large-scale databases, enabling prompt maintenance interventions.
The application of anomaly detection using the LSH algorithm provides benefits such as improved asset maintenance planning, reduced downtime, and increased operational safety. By leveraging data-driven analysis and the effectiveness of LSH, geothermal operators can detect faults early, enabling prompt interventions and optimizing reliability and efficiency.
In conclusion, this paper presents an approach for detecting anomalies in geothermal power plant operating assets using the LSH algorithm. By leveraging historical sensor data and the efficient similarity approximation capabilities of LSH, the proposed approach enables early diagnosis of problems, improving maintenance planning and optimizing geothermal operations.

Keywords: Anomaly- Locality-Sensitive Hashing- Early-Detection

Share Link | Plain Format | Corresponding Author (Muhammad Hamza)


16 Business and Economic ABS-25

The Effect of GRDP and Regional Fiscal independence on Community Welfare
Venti Eka Satya

Center for Research Expert Body, Dewan Perwakilan Rakyat Republik Indonesia


Abstract

The fundamental purpose of government is to maintain basic security and public order so that individuals can find happiness. The main factor determining the happiness of society is the level of welfare. Fiscal independence shows the ability of regions to generate revenue to finance their expenses and Gross Regional Domestic Product (GRDP) shows the economic performance and development of a region. This study aims to determine the effectiveness of income and economic activities of local governments for the society welfare. This study examines the effect of fiscal independence and the economic performance of the provincial government on the level of public welfare in 2017-2021. The independent variable in this study is the index of fiscal independence (IKF) and GRDP, while the dependent variable is the level of public welfare that is proxied by the Human Development Index (HDI). The data of this study was obtained from the report on the results of the review of regional fiscal independence by the BPK and the BPS website. Data analysis used quantitative data by regression analysis. The results showed that IKF and GRDP had no significant effect on HDI. Thus, it can be concluded that the income and economic growth of the province have not been on target and have not been directed to improve the welfare of the community.

Keywords: Gross Domestic Regional Product, Fiscal Independence, Community Welfare, Human Development Index

Share Link | Plain Format | Corresponding Author (Venti Eka Satya)


17 Business and Economic ABS-26

SOCIAL MEDIA CUSTOMER ENGAGEMENT: A BIBLIOMETRIC AND NETWORK ANALYSIS
Tiladela Luhita(a,b*), Cheng-Hsui Chen (b)

a) Universitas Jenderal Soedirman
b) National Yunlin University of Science and Technology


Abstract

In recent years, there has been a rise in interest among both academics and practitioners in the field of consumer engagement research. As a result of the evolution of digital platforms over the past two decades, consumer engagement has also grown into social media. Since 2006, the Marketing Science Institute has called for more study on engagement, and it has remained a top research topic for years. Using consumer engagement, scholars also attempt to resolve a number of social media-related issues and make them more beneficial for the company. Despite substantial progress, the body of social media customer engagement research still has an unstable knowledge structure. Therefore, this study aims to investigate the theoretical foundations of studies focusing on customer engagement on social media. Using bibliometric analysis, this work fills an essential void by mapping the intellectual structure of consumer engagement research in the context of social media and suggesting future research possibilities for scholars in this subject. The bibliometric analysis of 1383 articles in the relevant field was performed using VOSviewer software. Some of the most important discoveries are the leading nations, journals, papers, and authors, the evolving research streams, and the potential future research orientations in the field. With the current network analysis results, a plan for future customer engagement on social media studies is provided.

Keywords: Customer Engagement- Social Media- Bibliometric Analysis

Share Link | Plain Format | Corresponding Author (Tiladela Luhita)


18 Business and Economic ABS-28

Halal Ihrom Fabric New Direction EduSyiarPreneur Indonesian Halal Fashion Industry
Indriya (a*), Muhammad Hisyam Rabbani (b), Akbar Nur Muhammad (b)

a) Faculty of Islamic Religion, Islamic Religious Education Study Program
Jalan Sholeh Iskandar Kec. Tanah Sereal, Kota Bogor, Jawa Barat 16162
*indriya[at]uika-bogor.ac.id
b)Faculty of Islamic Religion, Sharia Economics Study Program


Abstract

Indonesia is one of the member countries of the Organization of the Islamic Conference (OIC) which exports the largest Muslim clothing, and is ranked fifth in the world for Muslim clothing consumers. In 2030 it is projected that the Muslim population in Indonesia will reach 233,380,000 people or 88 percent of the total population of Indonesia. This shows that the potential for the market and producers of the halal industry including textiles and clothing in Indonesia is very large. One potential that needs to be developed is ihrom cloth. Around 70 percent of demand for ihrom is currently met through imports. Therefore, developing halal ihrom is very crucial. To find out the potential for integrated halal ihrom, the use of media as a means of promotion, brand development strategies, as well as exhibitions related to the halal industry must be carried out. This research was conducted using a qualitative approach, and creator theory as an effort to describe the value of Islamic Education and Entrepreneurship through Ihrom cloth. Data collection was carried out through observation, literature study, interviews, and documentation, and was analyzed descriptively. This the authors found, among others, (1) Halal Ihrom is an opportunity and a new direction for business in the halal fashion industry in Indonesia, as an applicable transformation of Islamic Education (education)- (2) Community communication through ihrom cloth and industrial halal (syiar)- (3) The existence of ihrom cloth with the halal logo is expected to increase turnover as well as increase the trust of the Indonesian Muslim community

Keywords: Ihrom, Industri halal, EduSyiarPreneur

Share Link | Plain Format | Corresponding Author (Indriya Rusmana)


19 Business and Economic ABS-37

How Is Green Purchase Influenced by Message Framing Through AI Versus Humans?
Chyi Jaw, I Putu Gede Iwan Trisna Jaya

Department of Business Administration,
National Yunlin University of Science and Technology, Taiwan, R.O.C.


Abstract

The development of AI has revolutionized personalized recommendations by continuously improving suggestions through learning from user interactions. However, humans bring an intuitive understanding to the process, providing personalized recommendations based on expertise, empathy, and nuanced insights not easily replicated by AI. This study explores consumers^ responses to different (AI vs. human) recommendation agents and environmental (positive vs. negative) appeals for green products, and considers the moderating effect of gender. The main purpose of this present research is to demonstrate how consumer purchase intention towards green products is influenced by negative and positive environmental appeals in an AI- or a human-recommended agent. We conducted a 2 (recommendation agents: AI vs. human) &#61620- 2 (environmental appeals: positive vs. negative) between experimental design. The results show that consumer purchase intention is different when green product messages with positive/negative environmental appeals are dealt with by an AI agent or a human agent. Additionally, the results of ANOVA reveal the moderating effect of gender on the relationship among recommendation agents, environmental appeals, and consumers^ green purchase intention. The research provides valuable insights for researchers and managers in understanding the communication effects of AI and human agents along with different message framing on green product recommendation- and the mediating influences of gender on the performance of green product recommendation agents. The authors discuss several important implications of these findings for businesses, environment protection organizations, and public policy officials.

Keywords: Artificial Intelligence, Environmental Appeal, Gender Difference, Green Purchase Intention, Recommendation Agent

Share Link | Plain Format | Corresponding Author (I Putu Gede Iwan Trisna Jaya)


20 Business and Economic ABS-40

Public Acceptance and Use of JakLingko: Public Transport Integration Application
Hana Aqila*, Yos Sunitiyoso

School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
*hana_aqila[at]sbm-itb.ac.id


Abstract

Jakarta has recently made strides to change its car-centric city planning paradigm and offer seamless mobility through the Jaklingko concept, which provides a passenger with an integrated transportation journey. As a part of this journey, Mobility-as-a-Service (MaaS) is implemented by establishing JakLingko application in March 2022. With one year of implementation of the JakLingko application, this study aims to measure public acceptance as well as identify the factors contributing to the success of JakLingko application in Jakarta Metropolitan Area (Jabodetabek). This study also evaluates the benefit of JakLingko application adoption from economic, social, and environmental perspectives. A questionnaire was used in this study to collect data from a total of 650 randomly distributed JakLingko users across Jabodetabek. We propose the integration of the Technology Acceptance Models (TAM) and DeLone-McLean Information System Success (D&M ISS) model to validate the data. This research finds that the respondents still show a positive attitude toward the willingness to use the JakLingko application after one year of launch. The proposed factors of service quality, perceived usefulness, and information quality positively impacted the acceptance and use of JakLingko application. The result also reveals that users perceived a positive economic, social, and environmental impact of JakLingko application.

Keywords: Mobility-as-a-Service (MaaS), Public Acceptance, Mobile Application

Share Link | Plain Format | Corresponding Author (Hana Aqila)


21 Business and Economic ABS-41

Achieving SDGs through the Role of Artificial Intelligence in Human Resources from a Gen Z Perspective
Btari Mariska Purwaamijaya- Yogi Prasetyo- Alifia Fatimatun Nazya- Muhammad Rijal Fathurrahman

Universitas Pendidikan Indonesia


Abstract

The existence of digitalization affects the function of Human Resource Management within the organization. This revolution can actually be an added value for human resource management, especially in this case, with the use of artificial intelligence. Organizations need to ensure that the collaboration between artificial intelligence and human resource management can complement each other^s roles to achieve organizational goals. The purpose of this exploratory research is to find out how Digital Business undergraduate students perceive artificial intelligence and human resource management in the digital era. The contribution of this research is to explore the perceptions of Digital Business Practitioners and Technopreneurs as generation Z which is the future generation regarding the new role of human resource management by utilizing artificial intelligence in a digitally changing workforce that will become part of them to support the achievement of SDGs. in this regard: Quality education, decent work and economic growth, infrastructure, industry and innovation, sustainable cities and communities, and partnerships to achieve goals. A qualitative research methodology was adopted consisting of two two-hour focus groups with 20 participants in each group. Participants are students who have worked or carried out internships in various industries that apply artificial intelligence in their companies. This study will have a number of implications and recommendations for higher education organizations and providers.

Keywords: Human Resource Management- HR analytics- Competence- Higher education, Artificial Intellegence, SDGs.

Share Link | Plain Format | Corresponding Author (Btari Mariska Purwaamijaya)


22 Business and Economic ABS-46

What Drives Profitability of Islamic Banks?: Fresh Insights from Indonesia using Vector Error Correction Model (VECM) Approach
Sri Yayu Ninglasari, Nugroho Priyo Negoro, M. Fikri Himmawan, Santy Dwi Cempaka

Department of Business Management, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember, Indonesia
Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Indonesia


Abstract

This study aims to investigate the impact of various Islamic financing components, namely mudharabah, murabahah, musharakah, liquidity, and financing risk, on the profitability of Islamic banking institutions in Indonesia over the period spanning from 2011 to 2020. The research adopts a quantitative approach to comprehensively understand the short-term and long-term effects of these variables on the dependent variable, which is the profitability of Islamic banks. The dataset employed in this research consists of panel data pertaining to Islamic banking in Indonesia during the specified time frame. The data analysis employs the vector error correction model method to process and examine the information. The outcomes of the estimation tests reveal that each of the variables, both in the short term and long term, significantly impacts the return on assets of Islamic banking institutions in Indonesia throughout the period from 2011 to 2020. These findings highlight that changes in mudharabah, musharakah, murabahah, non-performing financing, and financing-to-deposit ratio in Indonesian Islamic banks have led to responses and alterations in the return on asset of these institutions over the specified timeframe. In summary, this study provides valuable insights into the relationship between Islamic financing components and the profitability of Islamic banks in Indonesia, contributing to a deeper understanding of the financial dynamics within this sector over the last decade.

Keywords: Islamic Banks, Islamic Financing, Profitability, VECM

Share Link | Plain Format | Corresponding Author (Sri Yayu Ninglasari)


23 Business and Economic ABS-50

ELECTRIC VEHICLE ROUTING PROBLEM WITH TIME WINDOWS AND BATTERY SWAPPING STATIONS IN GOODS DISTRIBUTION USING TABU SEARCH
Tito Bisma May Willis (a), Ahmad Rusdiansyah (b)

a) Institut Teknologi Sepuluh Nopember
b) Institut Teknologi Sepuluh Nopember


Abstract

In accordance with the development and regulation of battery-based electric motorized vehicles (Battery Electric Vehicles) in Indonesia as well as support from various parties in the development of electric motorized vehicles which are considered cleaner and environmentally friendly because they can reduce greenhouse gas emissions. The application of electric-based motorized vehicles to goods delivery service companies is an innovation and a step in supporting the acceleration program. There are still a few delivery service companies in Indonesia that have successfully transitioned from conventional vehicles to electric vehicles. In achieving a successful transition to electric vehicles, it is necessary to have efficient route planning by considering the characteristics of the vehicle to the maximum range of the vehicle. The purpose of this research is to make a model of Electric Vehicle Routing Problem with Time Windows and battery swapping stations in distributing goods with Tabu Search. The results from the existing data are 225 nodes with a total weight of 147.02 Kg, the use of electric motors with Tabu Search optimization is more profitable with the smallest total distribution cost of IDR 21,923 and the shortest total distance of 137,296 Km, visits to SPBKLU on electric motorbike routes which have an impact on additional costs and distance.

Keywords: battery electric vehicle, electric vehicle routing problem, tabu search

Share Link | Plain Format | Corresponding Author (Tito Bisma May Willis)


24 Business and Economic ABS-51

Enhancing the Innovation by empowering AI capabilities: The role of Servitization and Absorptive Capacity - A Pilot Study
Febrine Pentadini (a*), Yu-Fen Chen (b)

a) College of Management, Da-Yeh University, Changhua, Taiwan
No.168, University Rd., Dacun, Changhua, Taiwan
*febrinepentadini[at]gmail.com
b) Department of Business and Administration, Da-Yeh University, Changhua, Taiwan


Abstract

The advent of Artificial Intelligence (AI) and its capabilities predicted to catalyst the innovation, meanwhile the impact of servitization on product innovation remains controversial. This research examines the relationships between AI capabilities and product innovation by considering the role of servitization and absorptive capacity. We developed and empirically tested a model using structural equation modeling (SEM) by employing Smart PLS 3.0 with a scanty data as a pilot study from 45 firms in Taiwan and Indonesia. The finding shows the positive impact of AI capabilities with four sub-dimensions on product innovation which mediated by servitization. The absorptive capacity positively moderated the causal relation between AI capabilities and servitization. This pilot study suggests to the literature by determining the effect of AI capabilities on product innovation by considering servitization and absorptive capacity.

Keywords: AI capabilities, Servitization, Absorptive Capacity, Product Innovation

Share Link | Plain Format | Corresponding Author (Febrine Pentadini)


25 Business and Economic ABS-58

ENHANCING ORGANIZATIONAL PERFORMANCE THROUGH INTEGRATED ERP-BASED BALANCED SCORECARD SYSTEM: A CASE STUDY IN THE FURNITURE INDUSTRY
Didik Wahjudi, Henry Novianus Palit, Siok Ping

Postgraduate Program in Industrial Engineering
Petra Christian University
Jl. Siwalankerto 121-131 Surabaya 60236, Indonesia


Abstract

Organizations must continuously thrive to remain successful in the highly competitive business landscape. An integral aspect of achieving this success is implementing an efficient performance management system (PMS) that regularly monitors organizational performance. Large companies often employ Enterprise Resource Planning (ERP) systems to integrate data and information across various departments and business units within the company group, providing easy, comprehensive, and structured data collection. However, despite the advantages of ERP systems, a considerable amount of valuable data goes to waste as it is not integrated with the PMS of the company. To address this issue, this study aims to develop a balanced scorecard-based performance management system that utilizes the existing ERP system in a furniture company. In-depth interviews with the board of directors were conducted to assess the need for the PMS, formulate strategic maps and scorecard, determine scorecard weights, and establish targets for each scorecard category. During the implementation phase, it was observed that the financial indicators consistently fell below the baseline values, signaling an urgent need for management intervention. However, indicators from three other perspectives demonstrated relatively better performance than those from the financial perspective. This discrepancy emphasized the need to revise the strategic map, as strong performance in the other perspectives should translate into positive financial indicators. The management of the company validated the initial implementation results of the performance management system by noting a concerning decline in the liquidity. This study offers a real-world case study of developing a performance management system by effectively leveraging ERP data.

Keywords: Enterprise Resource Planning (ERP)- performance management systems- balanced scorecard- case study

Share Link | Plain Format | Corresponding Author (Didik Wahjudi)


26 Business and Economic ABS-59

The impact of Environmental, Social and Governance (ESG) Characteristics on Deriving Inward Foreign Direct Investment
Muhammad Ubaidillah Al Mustofa(a*), Imron Mawardi(b), Raditya Sukmana(b)

a) Department of Development Studies, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia
b) Islamic Economics Department, Faculty of Economics and Business, Universitas Airlangga


Abstract

This study examines the impact of Environmental, Social, and Governance (ESG) characteristics and selected macroeconomic determinants on foreign direct investment (FDI) inflows. This study applies panel regressions to a sample of fifty Organization of Islamic Cooperation (OIC) member countries from 2002 to 2019. Findings suggest that ESG characteristics play no significant role in deriving the inflow of FDI. However, when broken down into numerous components, only the E factor has an effect, indicating that environmental factors are being considered in deriving inward FDI. Higher inflation attracts more foreign investments and is viewed as an important signal of a nation^s economic condition. The MENA region is of special concern to international investors due to its negative coefficient, due to the political unpredictability in a number of countries. Even though there is a growing emphasis on developing government policies that promote ESG, it is not a major concern for investors when making decisions regarding foreign investment. Investors place a greater emphasis on macroeconomic variables when determining FDI.

Keywords: Foreign Direct Investment, Environment Aspect, Social Aspect, Governance Aspect, OIC Countries

Share Link | Plain Format | Corresponding Author (Muhammad Ubaidillah Al Mustofa Al Mustofa)


27 Business and Economic ABS-65

A Study of Fixed and Mobile Convergence Innovation: Preliminary Research on Telecommunication in Indonesia
Gunadi Dwi Hantoro1, Muhtosim Arief2, Firdaus Alamsjah3, Elidjen4

BINUS UNIVERSITY


Abstract

The number of users and customers of fixed and mobile broadband networks in Indonesia is growing quite rapidly. This is driven by several factors, namely the increasing population, changes in customer behaviour, more affordable tariffs, and a wide range of operator choices. Users can select operators offering attractive features both in terms of products and pricing.

The current development of the telco industry worldwide presents a rather discouraging situation for operators. Besides connectivity becoming a commodity, revenue tends to remain stagnant and even decline in some countries. Despite the significant surge in rapidly increasing traffic, the investments made in infrastructure are mainly used to accommodate such traffic.

With numerous operators capable of providing broadband services, each one strives to be chosen by users or customers. Operators are innovating their services to sustain their companies. Some examples of broadband operators in Indonesia are Telkom, Indosat, and XL. One of the innovations chosen by these three operators is the development of Fixed Mobile Convergence (FMC) products, combining Fixed and Mobile Broadband technologies.

The research methodology used is qualitative, where the researcher conducted interviews with experts and management from several Telco players in Indonesia and benchmarked against NTT Japan. From the interview results, it was found that FMC innovation is highly important for both fixed and mobile broadband players. There are several advantages to implementing FMC, including infrastructure deployment efficiency, customer satisfaction, revenue generation, and churn reduction.

Keywords: Please Just Try to Submit This Sample Abstract

Share Link | Plain Format | Corresponding Author (Gunadi Dwi Hantoro)


28 Business and Economic ABS-66

Effects of Entrepreneurial Activities on the Performance of Micro, Small, and Medium Enterprises (MSMEs) in Muntinlupa City, Philippines
Marlon B. Raquel

College of Business Management, Taguig City University, Philippines


Abstract

Abstract
The entrepreneurial activity is seen as a major contributor to the economic growth and development in both developed and developing economies. This paper examined the relationship between entrepreneurial activities and the success of micro, small, and medium enterprises (MSMEs). The data were collected from 215 MSMEs in Muntinlupa City, Philippines. Using SPSS software, regression analyses were utilized to examine the effects of nine (9) indicators of entrepreneurial activity on entrepreneurial success. The results indicate that ease of entry, commercial and professional infrastructure, access to entrepreneurial finance, social and cultural norms, and entrepreneurship education at school have significant positive effects on entrepreneurial success of micro, small, and medium enterprises. Physical infrastructure, government entrepreneurship programs, government policy, and research and development transfers did not exhibit significant influence on MSME success. Based on these findings, it is recommended that government should implement anti-trust legislations and policies that would lower the cost of market entry for MSMEs. Commercial and professional infrastructure should be improved. Microfinance institutions should improve access to finance. Moreover, emphasis on self-sufficiency, autonomy, personal initiative, entrepreneurial risk-taking, creativity and innovativeness would help entrepreneurs achieve optimal business success.

Keywords: Entrepreneurial Activities- Entrepreneurial Success- Micro, Small, and Medium Enterprises- MSME Success- Muntinlupa City

Share Link | Plain Format | Corresponding Author (Marlon Raquel)


29 Business and Economic ABS-68

The Relationship of Transformational Leadership Based on Gender to Project Success
Yuli Khaerati Kanny(a), I Ketut Gunarta(a)

a) Department of Industrial and Systems Engineering, Faculty of System Engineering and Industrial Technology, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia


Abstract

Managing a project is a relatively complex activity and difficult to do because it is required to pay attention to various aspects such as aspects of time, cost, resources, progress in achieving goals, and much more. To achieve project success, a project manager must have the ability to lead a project. Many researchers have proven that the transformational style is an effective leadership style and has a positive relationship with project success. This study aims to determine the relationship between the transformational leadership style of project managers based on gender and project success directly, as well as the relationship between them if moderated by the type of construction project, the type of information technology project, and emotional intelligence. This study used inferential analysis using PLS-SEM software and data obtained through questionnaires distributed to project workers spread across Indonesia. The results of this study suggest that the transformational leadership style of project managers with the female gender type has no association with project success including when this relationship is moderated by the type of construction project and emotional intelligence, but has a significant relationship if moderated by the type of information technology project. Meanwhile, the transformational leadership style of male project managers has a direct relationship with project success, and this relationship is positively influenced by the type of construction project, but negatively affected by emotional intelligence, but the type of information technology project does not affect this relationship.

Keywords: Transformational- Gender- Project Type- Emotional Intelligence- Project Ssuccess

Share Link | Plain Format | Corresponding Author (Yuli Khaerati Kanny)


30 Business and Economic ABS-71

Young men consumers in luxury fashion: An exploratory study from an emerging country.
Novi Amelia

School of Business and Economics, Universitas Prasetiya Mulya,
South Jakarta, Indonesia


Abstract

The luxury fashion market for men has been growing significantly. Despite this, few studies currently exist on male consumers and luxury fashion. This study explores the male perspective of luxury fashion, with focus placed on male youth in an emerging country. Using a qualitative approach, in-depth interviews were conducted with twenty men who regularly use luxury fashion items. The data was analyzed using descriptive coding. The result showed that the participants began consuming luxury fashion items as teenagers, when their parent^s (primarily their mothers) purchased these items for them. As a result of the family^s influence, they continued to buy luxury fashion products at least once a year, due to social pressure. This study propose a depth insight on male consumption of luxury fashion products in an emerging country, a topic that is rarely discussed.

Keywords: Luxury- Young consumer- Emerging country

Share Link | Plain Format | Corresponding Author (Novi Amelia)


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