Binus Business Review

Creative Industries’ Risk Appetite in East Java and Its Impact on Dynamic Capability and Competitive Advantage

2023-11-07T03:35:49+00:00

Studies related to risk appetite, which plays an important role in risk management in the creative economy sector, still need to be made available, so relating it with dynamic capabilities and competitive advantage is the main novelty of the research. The research aimed to understand the risk appetite of the creative Small and Medium-Sized Enterprises (SMEs) in East Java, Indonesia, and analyze the impact of the risk appetite on their dynamic capabilities and competitive advantages. Primary data was obtained through a quantitative research method with a Likert-sized online questionnaire instrument and distributed to 300 creative industries in East Java, with the unit of analysis being the creative business owner. The data were analyzed using Partial Least Square - Structural Equation Modelling (PLS-SEM) weight analysis with SmartPLS version 4 software. After passing the external test and inner model, hypothesis testing was carried out by reviewing the t-statistics and p-values. The analysis results provide a surprise, showing that not all types of risk appetite significantly impact dynamic capabilities and competitive advantage. Avoiding the discovery of detrimental risks to dynamic capabilities and competitive advantage emphasizes that in this era, every creative SME must face risks. Avoiding risks makes the business unable to face dynamic changes in conditions and will not have a competitive advantage. However, risk and revenue sharing do not significantly impact competitive advantage. It has a strong impact through dynamic capabilities. Creative SMEs can choose to transfer risks or reduce them. Future research can examine different risk appetites for creative economy in each subsector.

The Role of Authentic Leadership and Organizational Commitment to Reduce Turnover Intention in Digital Company

2023-12-04T03:19:27+00:00

The research analyzed the relationship between authentic leadership, organizational commitment, and turnover intention. The problem was that technology companies experienced an increase in turnover intention. The research was unique in analyzing the causality of turnover intention through aspects of leadership and commitment. The research analyzed the direct and indirect effects of reducing turnover. Research was conducted on digital companies operating in the consulting services sector. Purposive sampling was used as a sampling technique. Data collection was carried out using a questionnaire distributed via Google Forms with a total of 111 respondents. The research findings indicate that authentic leadership influences organizational commitment. Furthermore, organizational commitment has a negative influence on turnover intention. In addition, the indirect effect of authentic leadership on turnover intention is mediated by organizational commitment. Hence, it is essential for companies to increase employee commitment throughout the organization. Business organizations must pay attention to the phenomenon of turnover instruction. Meanwhile, employee turnover has a negative effect on the quality of business processes. The turnover instruction problem is a classic problem faced by every company. Aspects of leadership and organizational commitment must be the main factors in reducing turnover. The long-term success of a business is determined by the contribution and productivity of its employees. Turnover intentions can be reduced through implementing authentic leadership and consistently increasing organizational commitment.

Enhancing Mamanda Product Sales Through Business Model Innovation (BMI)

2023-12-04T04:20:08+00:00

The research aimed to assist the micro-enterprise Mamanda in achieving sustainable improvements in product sales, addressing the challenges posed by the post-COVID-19 era. Operating in the children’s toy rental services field, Mamanda faced a significant decline in sales due to the pandemic’s impact on consumer behavior. The researchers collected data through interviews, meetings, and observations using qualitative methods and a business coaching approach. The analysis involved internal and external assessments, Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis, Business Model Canvas (BMC) evaluation, gap analysis, and Pareto analysis. From the results, the Pareto analysis identifies two critical issues: the lack of a customer database and the absence of a customer loyalty program. Business coaching effectively guides Mamanda in developing a new and adaptive business model to enhance sales sustainably in the post-COVID-19 landscape. Importantly, the research contributes to the literature by emphasizing key findings, highlighting the importance of adapting business models, effectively utilizing customer data, and implementing customer-centric strategies to foster growth and sustainability in the context of Micro, Small, and Medium Enterprises (MSMEs). Practical implications include the significance of Business Model Innovation (BMI) and customer-centric approaches for MSMEs in navigating evolving and competitive markets, ensuring resilience and viability in evolving business environments.

Shopping Products Online After the COVID-19 Era

2024-01-15T02:47:22+00:00

The COVID-19 pandemic has changed consumer purchase behavior. The research observed consumer behavior in purchasing online products after the pandemic. It focused on attitudes, perceived behavior control, and financial and product risks. They influenced purchase decisions, resulting in customer satisfaction and repurchase intention in online shopping. The research was quantitative. Data collection used online research. It managed to get 443 respondents. The study was conducted in Indonesia with respondents who had done online shopping. The hypothesis test was done using Structural Equation Modeling (SEM) with Smart-PLS software. The research results show that H1, H1a, H1b, H2, H2a, H2b, H3, H3a, H3b, H5, H6, H6a, H6b, and H7 are accepted. Meanwhile, H4, H4a, and H4b are rejected. The hypothesis test results show an influence between attitudes, perceived behavior control, and financial risk on customer satisfaction and repurchase intention through purchase decisions both directly and indirectly. Meanwhile, product risk does not directly or indirectly influence customer satisfaction and repurchase intention through purchase decisions. In conclusion, financial risk is the most influential factor in purchase decisions. If the financial risk is low, customers’ purchase decisions will be high. The research contributes to consumer behavior, especially regarding online shopping. Consumers purchasing online products pay attention to the processes of clarity, assurance, security, comfort, and trust.

The Role of Leadership and Community Involvement in Sustainable Development

2023-12-12T04:45:23+00:00

Indonesia is an archipelagic nation that has a variety of difficulties when it comes to the delivery of products and services. There are a number of challenges experienced in the field of logistics in Indonesia, including poor transportation infrastructure in a number of different places. Sustainable development is a concept that aims to find a balance between people’s needs now and their ability to meet those needs in the future. The research aimed to identify and analyze the relationship between leadership and community involvement (also known as community participation or engagement) in sustainable development in the shipping industry. The researchers used the Partial Least Squares-Structural Equation Model (PLS-SEM) with a sample of 103 shipping companies to analyze data. The research results show that leadership positively and significantly impacts sustainable development, confirming the importance of the leader’s role in implementing sustainable practices in company operations. Meanwhile, community involvement shows a positive but insignificant impact on sustainable development, indicating that the community needs to be reconsidered in the context of sustainable development in the shipping industry. The results also provide information for companies and leaders to strengthen sustainable development efforts by implementing more integrated policies focused on community involvement. Moreover, the research offers a chance to encourage cooperation between industrial actors and local populations. By harmonizing objectives, expectations, and actions, it is feasible to develop projects that strengthen sustainable practices within the ocean freight transportation business and promote the well-being of the communities it interacts with.

The Effect of Green Attribute on Green Trust: Self-Congruence Theory

2024-01-22T03:13:00+00:00

The concept underpinning the research is that a brand’s or product’s extent in personal identity and reflected values can affect consumers’ acceptance of green products. The research explored self-congruence theories to investigate the greater depth of the attributes of green products that boost green trust. In this investigation, survey methods were combined with a quantitative methodology. Using a purposive sample procedure, 200 respondents who consumed drinking water products under the names of Ades, Aqua, Le Minerale, Nestle, and Vit were selected for participation in the research and provided feedback. The Structural Equation Modeling (SEM) analysis was conducted utilizing SmartPLS 3.0. The research findings show that green packaging and advertising do not affect green trust. Meanwhile, green packaging significantly raises green satisfaction and consequently expands green trust. The research contributes to the body of knowledge on self-congruence with a brand or product by exploring symphony and synergy, which show that both positive feelings connected with self-congruence may foster customer happiness and strong brand loyalty. Representing, enforcing, and strengthening the genuine self-concept is the essential role of the self-element. Furthermore, these findings can also provide insight for future researchers, especially regarding the importance of self-congruity values in strengthening brand loyalty.

How Does Self-Control Moderate Shopping Enjoyment and Impulse Buying Among Generation Z Online Gamers?

2023-12-12T04:26:32+00:00

In today’s technological age, access to the Internet is required in various fields, ranging from the essentials (clothing, food, and shelter) to recreation. As a result, people are willing to part with their money for the thrill of playing video games, which frequently leads to impulsive buying. Given this trend, the research examined why male and female gamers in Indonesia made impulsive purchases. The research employed quantitative sampling with a purposive sample type, specifically probability sampling. It looked at 220 Indonesian online Generation Z gamers who bought virtual goods in-game using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) model. From the results, three distinct phenomena are found. Firstly, evidence exists for the significant impact of shopping enjoyment on impulsive buying. Secondly, self-control has an insignificant role in preventing impulse buying. Lastly, the research offers insight into the insignificant role of self-control in moderating the relationship between shopping enjoyment and impulse buying. Among the three dimensions of self-control, cognitive control is the only dimension that has a significant effect on reducing the tendency of impulse buying among Generation Z online gamers. Additional research should assess the insignificant relationship between self-control and impulse buying, which may corroborate or contradict the research findings. Further investigation of potential intermediate variables (e.g., customer loyalty and brand relation) that connect self-control and impulse buying is also needed.