Asian Management and Business Review

Financial system stability in Indonesia and its relationship with economic growth before and during the Covid-19 pandemic

2023-10-26T04:00:34+00:00

The purpose of this study is to assess the condition of financial system stability in Indonesia both before and during the Covid-19 pandemic and to look at its relationship with economic growth. This study develops six sub-sector groups described in 19 indicators in order to assess the condition of the financial system. Quarterly data for 6.5 years from Quarter I 2016 to Quarter II 2022 was evaluated. To assess the condition of the financial system, this study uses a composite index approach with the normalized max-min method. The correlation analysis method is used to assess the relationship between the index of financial system conditions and economic growth. The results showed that during the pandemic, there was a more significant increase in pressure on financial conditions than before the pandemic. The financial system instability index during the pandemic in the second quarter of 2020 was 3 times higher than the average and more than 5 times higher than the same quarter in 2019. In addition, the relationship between the financial condition index and economic growth is at 0.77 (strong category). The implication is this research can provide insight to the government, financial institutions, and the public regarding the condition of financial system stability before and during the Covid-19 pandemic. This research suggests that the government should control credit restructuring policies during the pandemic and strengthen financial institutions. This research has limitations in terms of objects that only include conventional financial institutions. Further studies can use other objects such as Islamic financial institutions.

Conceptual review of global outsourcing-offshoring in the last 20 years: Notes on systematic literature review

2024-01-17T03:02:39+00:00

This paper aims to contribute to a better understanding of the relatively comprehensive breadth of information on outsourcing-offshoring from existing and open-source research articles. A systematic literature review was carried out on 700 articles related to global outsourcing to obtain results of scientific studies. The PRISMA method is used to get relevant articles that meet the quality control aspects of the article data used. Research on global outsourcing and offshoring showed significant progress from the start until its peak in 2008. In 2000 global outsourcing was in the implementation stage, requiring a lot of basic and conceptual research to develop global outsourcing activities. After 2008 the topic of global outsourcing research studies decreased. This was because research on global outsourcing became more specific. The 32 topic items grouped into 4 clusters are state-of-the-art research on global outsourcing-offshoring topics in the last 20 years.

Shockwaves in consumer minds: The thunderous role of media in sculpting brand popularity

2024-01-31T10:47:03+00:00

This study explores the complex relationship between brand popularity, media exposure, curiosity, fear of missing out, and consumers’ information-seeking behaviour on digital platforms. Negative and controversial news sometimes actually makes a brand increase in popularity. This phenomenon is known as the Streisand Effect. With a sample of 358 smartphone users in Indonesia, and utilizing a theory of planned behaviour (TPB) approach, we analyze how digital news content influences consumers’ perceptions and behaviour towards brands, primarily through increased information-seeking behaviour. Partial-Least-Squares Structural Equation Modelling and Importance-Performance Analysis (IMPA) were used to analyze the data. Our findings show a significant correlation between information-seeking behaviour and brand popularity, underscoring the impact of digital news content in shaping individual preferences and behaviours. Positive news, negative news, and controversial news, respectively, have different influences on each relationship. This research contributes to a deeper understanding of the role of media in brand management and offers insights for marketers looking to utilize digital platforms for brand enhancement. Future research could expand our study with additional variables.

Muslim fashion dynamics: The mediating role of positive emotion in elucidating impulsive buying behavior

2023-12-17T05:26:20+00:00

Growing Muslim fashion trends drive diverse demands. Business must cater to varied preferences, offering a range of styles to suit consumer wishes in the expanding Muslim fashion industry. This study conducted in Semarang City, Central Java, Indonesia involved 150 respondents and employed SmartPLS to test the interplay of fashion involvement, positive emotion, and impulsive buying. Contrary to expectations, a direct link between fashion involvement and impulsive buying was not significant. However, positive emotions emerged as a crucial mediator, indicating that emotional experiences play a pivotal role in shaping impulsive buying behaviors, especially within Muslim fashion. This research contributes novel insights by uncovering the nuanced relationship between fashion involvement and impulsive buying, highlighting the significant mediating role of positive emotions. It enriches the broader understanding of consumer behavior in the context of the Muslim fashion industry, offering valuable psychological perspectives for consumer management. The absence of a significant direct effect prompts exploration into moderating variables, such as cultural and religious factors within the Muslim community. Concerns about self-reported data and response bias suggest avenues for further refinement in future studies. The study enriches existing theories by emphasizing the intricate interplay between fashion involvement, positive emotions, and impulsive buying.

Unraveling the complexity of the organic food market: Indonesian consumer perspective on price and product knowledge

2024-02-10T17:35:01+00:00

In the past decade, the organic food industry has witnessed a tremendous surge in popularity as consumers increasingly perceive it as a healthier, more natural, and more environmentally friendly alternative to conventional foods. This trend has prompted extensive research into consumer behavior towards organic food, mainly focusing on the factors that drive its acceptance. Despite its growing interest, the adoption of organic food faces considerable challenges, mainly due to its higher price. This study examines Indonesian consumers’ willingness to pay more for organic food (WTPM) by examining the role of product knowledge (PK), consumer attitude (CA), and price consciousness (PC). Data was collected from 250 respondents representing consumers in Indonesia through an online survey. Descriptive Statistical Analysis and Structural Equation Modeling (SEM) are used to test hypotheses and understand relationships between variables. The results show that PK significantly affects CA towards organic food but does not directly affect WTPM. In addition, CA emerged as a significant mediator between PK and WTPM, indicating that consumers with positive CA towards organic food tend to pay more, as they see the cost as an investment for environmental sustainability and health. However, this relationship is moderated by PC, which indicates that price sensitivity may reduce the effect of positive CA on WTPM. The findings of this study underscore the need for a multifaceted approach to promoting organic food. To increase consumer acceptance and uptake, strategies should include education initiatives, awareness raising, and addressing issues related to price and perceived value.

Describing the employer’s satisfaction on college of business education graduates employed in banking institutions

2024-01-17T02:52:27+00:00

This study evaluates the employer’s satisfaction with the banking institutions in Pagadian City. Employers’ satisfaction will be based on how the graduates show their performance towards their jobs or tasks. Employers evaluate the skills of the graduates that need to be improved in their daily tasks. This study uses the quantitative-descriptive study approach to analyze information about describing the employer’s satisfaction with the graduates. The study’s primary purpose is to find out how satisfied employers are with the performances of the graduates as well as what is needed to improve. It focuses on the employers of the banking institutions as research participants. The findings of the study are as follows: (1) foundation skills, (2) enterprise skills, (3) technical skills and knowledge, (4) adaptive skills, (5) team-working skills, and (6) employability skills where these are used in getting the satisfaction of the employers to the graduates where it garnered an overall weighted mean of 3.34 and a standard deviation of 0.01 with an interpretation of ‘very high’. The results showed that the employers of the banking institution where the graduates are employed are very satisfied with the performance that the graduates showed to them. In addition, the employers highlighted some skills that need to be developed and improved more to become efficient and effective employees. The results of this study can be used as a basis for the development of the graduates to enhance their performance in the future.

Does user-generated content trigger university graduates’ online purchase intention? Mediating role of brand image

2024-02-03T08:28:29+00:00

Academic interest in understanding the impact of user-generated content (UGC) on consumer behavior in digital marketing has grown exponentially. However, we know little about the effect of UGC on customers’ online purchase intention from developing country aspects. This underpins the current study to examine the impact of UGC on the purchase intentions of university graduates in Bangladesh. With a convenient sampling approach, a structured questionnaire was provided directly to 400 respondents; 275 usable and complete responses were extracted for data analysis. Data were empirically validated using principal component analysis, reliability test, correlation, and Hayes PROCESS macro for regression and simple mediation analysis. The findings revealed that bloggers’ recommendations, online communities, and social media content positively and significantly influence customers’ online purchase intention. Brand image also directly impacts purchase intention and mediates the relationship between bloggers’ recommendations, online community, social media content, and online purchase intention. The results of this study will facilitate policymakers and online marketers in devising UGC management policies and digital marketing strategies. The study’s results may also help online marketers, sellers, and brand representatives to understand how to enhance brand image and amplify customers’ online purchasing behavior.

Does tourism experience matter in cultural tourism destinations? Predicting future tourist behavior

2024-02-03T17:10:44+00:00

Cultural tourism, as a niche market in the service-intensive tourism industry, has distinctive characteristics, experiences, and different individual consequences. The primary objective of this study is to explore the underlying substantial dimension of cultural tourism experiences in predicting tourists’ behaviors to stimulate electronic word-of-mouth (e-WoM) and shaping the cultural destination image. A quantitative approach was conducted with PLS-SEM to analyze data for tourists visiting the culture tourism village at Gorontalo, in Indonesia. The bootstrapping procedure is used to test the mediation effect, with direct and indirect effects analyzed. The results indicate that among the various components of the cultural tourism experience, relaxation and learning about the local culture are particularly significant in generating tourist e-wom behavior. The study also acknowledges the crucial role of e-WoM in cultural tourism as a mediator among relaxation, learn local culture, and destination image. Ultimately, these findings emphasize the importance of cultural tourism in showcasing experiences that provide relaxation and new knowledge originating from destinations. This research contributes to an enhanced understanding of the diverse impact of the cultural tourism experience dimension and its consequences for tourist behavior.

Will you purchase what I recommend? The role of interaction orientation, parasocial relation, and product involvement

2024-02-06T09:38:23+00:00

In recent years, sales in online platforms have received huge attention from generation Z in Indonesia, along with live streaming business model which has undergone rapid development in recent years. Although the way live streaming with consumers has been known as the key to influence consumer behavior, only a few research has studied the style of streaming communication in affecting purchase intentions. Based on the social influence theory, this study attempts to examine the influence of interaction orientation, parasocial relation, and digital influencer credibility on purchase intention. In addition, the present study also investigates the role of product involvement advertised by streamers as moderator. The quantitative approach with the survey is used through samples of 200 respondents selected by purposive sampling. The data is collected online through disseminating questionnaires using Google Form, which is then analyzed using SEM-PLS technique. The findings indicate that interaction orientation positively influences purchase intention and parasocial relation, while parasocial relation positively influences digital influencer credibility, and digital influencer credibility positively influences purchase intention. In addition, product involvement has a moderating role that can strengthen the influence of interaction orientation and purchase intention. This study provides implications for how an interaction can be delivered online and how the involvement of a credible influencer can affect purchase intention.