8ISC Proceedings: Business

Perception toward Website Quality and Service Quality among Online Shoppers during the COVID-19 Pandemic

2022-02-10T09:11:59+00:00

The objectives of this research were 1) to study the level of website quality and service quality of online shoppers during the COVID-19 pandemic, and 2) to compare differences in perception of website quality and service quality by gender, age, and income of online shoppers during the COVID-19 pandemic. The sample group used in this study was 281 online shoppers during the COVID-19 pandemic. Simple random sampling was used, and data were collected using questionnaires. The statistics used included the frequency, percentage, standard deviation, t-test, and One Way ANOVA. The results showed that the majority of respondents were 188 (66.9%) females, aged 21 to 29 (38.1%), and 109 (38.8%) students. The level of perceptions of website quality among online shoppers during the COVID-19 pandemic was found at the highest level (x ̅ = 4.35), and the level of perceptions about the service quality of online shoppers during the COVID-19 pandemic was found at a high level (x ̅ = 4.15). The comparison results showed that respondents with different gender perceived no difference in the level of website quality and service quality. Respondents with different income levels perceived no difference in the level of website quality. Respondents of different ages had different perceptions of website quality and service quality. And the respondents with different income levels had a different perception of service quality.

Keywords: online shopping, website quality, service quality, Covid-19

Preserving Auditor’s Independence, Competence, and Coping Time Budget Pressure: Keys to CPA firm’s Survival in the Era of Disruption (A Study on Local CPA Firm)

2022-03-14T03:46:31+00:00

Certified Public Accountant (CPA) firms are disrupted and striving to survive through rendering assurance services to audit clients. This study aims to describe the auditor’s independence, auditor’s competence, and time budget pressure, and auditor’s performance in CPA firms. It examines the effect of auditor’s independence, auditor’s competence, and time budget pressure on auditor’s performance in this era of disruption. Explanatory research was used in this study using questionnaires in gathering data. Respondents were from two local CPA firms based in Jakarta. There were only 34 auditors who were available to participate. A multivariate analysis was used in the processing and analysis of the result of the study. The results of the study proved that auditor’s independence has a significant and positive effect on auditor’s performance, while auditor’s competence and time budget pressure have no significant effect on auditor’s performance if partially tested. But if simultaneously tested auditor’s independence, auditor’s competence and time budget pressure have a significant effect on auditor’s performance. The result implies that local CPA firms still manage to survive in the era of disruption by preserving auditor’s qualities and coping with time budget pressure.

Keywords: Certified Public Accountant (CPA), respondents, competence, budget pressure

Blockchain Technology: Its Applicability, Challenges, and How these Challenges can be Handled in the Normal Accounting Cycle

2022-03-14T03:53:22+00:00

The tremendous advances in digital technology continue to affect how people live nowadays. In the fields of education, business, medicine, and science, among others, the fast-paced modernization of different processes is tremendously evident by adopting the latest digital resources to add value in the provision of services. In the world of finance and accounting, the presence of cryptocurrencies, the prevalent use of electronic wallets, and blockchain technology (BCT) are indicative of the revolutionary impacts of digitization. BCT is a distributed ledger, which contains different potential benefits on the one hand and different potential challenges on the other. Potential benefits are in terms of security, digital identity, and cost savings. Meanwhile, potential challenges include its technicality, complicated features, and scalability. The potential benefits and challenges are worth noting to find out its applicability in the normal accounting cycle. Despite the available literature about the use of BCT, no study has been conducted yet on how it would be possibly applicable in the normal accounting cycle. The purpose of this paper is to give a general overview, based on a literature review, of the potential applicability of BCT in the normal accounting cycle. This study used the theory synthesis, a method that included an examination of 17 recent or current literature published from 2017 to 2021 about the BCT and its potential applicability in the accounting cycle, including its challenges and how these challenges can be handled. The potential benefits of BCT in terms of security, digital identity, and cost savings might be considered on its applicability in the normal accounting cycle. However, the potential challenges shall also be considered to have a holistic perspective on dealing with the subject matter.

Keywords: blockchain, blockchain technology, normal accounting cycle

Marketing Mix and Business Success: A Perception from Entrepreneurs of Community Flea Market in Saraburi Province

2022-02-10T09:12:20+00:00

Due to the importance of community flea market to the economy of Thailand, the purposes of this research are (1) to investigate the perception of community flea market entrepreneurs in Saraburi Province toward the marketing mix factors that promote the community flea market economy; and (2) to examine the relationship between the marketing mix factors that promote the community flea market economy and the community flea market’s success perceived by community flea market entrepreneurs in Saraburi Province. The studied sample groups were 304 community flea market entrepreneurs in Saraburi Province. Data were collected by questionnaires. The statistics analysis was of frequency, percentage, mean, standard deviation, correlation coefficient analysis, and regression analysis. The result shows that product and place/distribution channels are the highest importance marketing mix factors that promote the community flea market economy. In addition, product and place/distribution channels are the only two predictors that have positive effects on the successful performance of the community flea market economy. Suggestions are provided for future research studies and those who are interested in studying these variables.

Keywords: Marketing Mix, Community Flea Market, Market’s Success

Organizational Factors Contributing to Workplace Stress Among Office Professionals in Selected Hospitals in Laguna: Basis for Stress Management Program

2022-03-14T06:54:08+00:00

This study determined the organizational factors contributing to workplace stress among office professionals in selected hospitals in Laguna that served as a basis for a stress management program. This quantitative research employed a descriptive correlational design using descriptive statistics in analyzing the data. Data were collected among 80 office professionals from four selected hospitals in Laguna, Philippines. Convenience sampling was utilized in choosing the respondents of the study. The study revealed that the respondents experienced or observed the following organizational factors: high in terms of leadership support, good for working conditions, fair for peer relationship, moderate for role ambiguity, while the workload is moderately heavy. It was also found out that the respondent’s physical and psychological stress is low. Moreover, correlation analysis revealed that role ambiguity, working condition, and leadership support is not significantly related to physical, psychological test, and the overall workplace stress and that there was no significant difference in the employees’ demographic profile considering the age, gender, highest educational attainment, year of service and civil status. Regression analysis also revealed that workload and peer relationship significantly predict workplace stress, with a variance accounted for 24.1%. Workload contributed a total of 19.3% of the variance in workplace stress and 4.8% for peer relationships and working conditions. This means the heavier the workload, the higher the workplace stress and the better peer relationship and working conditions, the higher the workplace stress. Based on the results, it is recommended that the proposed stress management program be utilized by the selected hospital respondents.

Keywords: organizational factors, workplace stress, physical and psychological stress, peer relationship, working condition.

Value Investing Analysis: A Look at Anthony Salim Portfolio

2022-03-18T01:50:37+00:00

Investors in Indonesia are in search of the market for stocks, including ways and methods suitable for investors’ way of thinking. Value Investing looks for undervalued stocks by carefully analyzing a company’s financial ratios. Past research found evidence that investment in value stocks benefitted the likes of Warren Buffet, Seth Klarman, etc. However, we found a lack of studies that investigates value investing in the Indonesian market and investment by prominent figures in Indonesia. This resulted in the following research question: Would Indonesia’s prominent figures Anthony Salim portfolio listed at Composite Index in Indonesia consist of value stocks? In order to answer the research question, a quantitative method with a deductive approach has been applied, and historical stock prices and financial ratios over the time period 2019-2020 of Anthony Salim portfolio of eight stocks have been collected from Indonesia Stock Exchange. Intrinsic value and margin of safety by Phil Town (2014) were then calculated, and the research will look into its relationship with the value of the company based on its P/E ratios. The study suggests investors buy IMJS and IMAS stock of Anthony Salim based on the Phil Town method. However, the findings on Phil Town MOS were not statistically significant. The study did contribute with new knowledge, however, by increasing the data available for value investing in Indonesia and highlighting a need for more studies into smaller stock markets and for a period of financial distress, such as the financial crisis.

Keywords: Value, Investment, Intrinsic, Maring of Safety

A Productivity Management Application of the Solow Development Model by the Asian Largest Economies

2022-03-18T01:52:11+00:00

In application of the Solow development model, other Asian or non-Asian smaller economies may learn from the productivity management model design emulated by the economic development patterns of the largest Asian economies; China, India, Japan, Indonesia, and South Korea. The objective of the study was fundamentally formulated to explore the application of the economic design thinking of the Solow development model on the five Asian largest economies. Using the data envelopment analysis or DEA, the study sought to evaluate the two Solow development models, y/L = f (K/L, L/pop, s/y) or y/Lt = K/Lt (R&Dt)1-depr without using technology, and y/L = f (K/L, L/pop, s/y, R&D/y) or y/Lt = K/Lt (R&Dt Lt)1-depr with technology. The DEA observation specifically applied the Malmquist Productivity Index and Linear Programming model to evaluate the y/L objective function in order to answer the study’s four research questions. It was concluded that the Solow development design thinking models, the ones with and without R&D for innovation, didn’t show any difference in utilities of both. Any economies for the productivity management models seemed to be relevantly indifferent.

Keywords: Data Envelopment Analysis or DEA, Malmquist Productivity Index or MPI, change in total factor productivity or Δ TFP index, decision-making unit or DMU, linear programming or LP, human development index or HDI.

Business Intent of Organizations Growth vs. Consumers Growth as Goal(s)

2022-03-18T01:53:53+00:00

The objective of this research is to identify out whether organizations evaluate consumers’ growth as the ideal for an organization’s growth. The problem statement is to acknowledge the growth of an organization is a permanent objective inherently connected to all its goals. The expected satisfaction of customers is considered by companies. Yet, customer growth, the foundational principle, is poorly covered in the goal of an organization. The gap in the company marketing perception of producing and marketing its products/services and consumers’ growth with its products/services is the identified research aims. This research is mostly qualitative, and part involves quantitative analysis. Secondary data is used in this research. Two different measuring tools were designed as research instruments for evaluating organizations’ mission strategies for consumers’ growth and products/service usage of consumers’ growth. The qualitative method used in this research is the ethnographic research method. Descriptive/statistics-based analyses were also used for the quantitative analysis. The study results show organizations do not estimate consumers growth resulting from the usage of products/services. But most organizations’ strategies are designed on the prevailing market situations of consumers’ needs for organizational growth effectiveness. The results of this study confirm that organizations do not deliberately initiate in understanding and measuring consumers’ growth through their products and services but identify consumers’ needs and wants over the situation to produce products and services. The null hypothesis is accepted, “Organizations growth goals include consumers growth goals partially.” General market-based thinking inherently includes the partial consumer’s growth goals based on their needs and wants. Therefore, organizations’ interest in consumers’ growth goals is limited to the interests of organizations’ growth goals. Thus, sustainability strategy is superficial than deep level.

Keywords: Business intent, organization, consumers’, growth

The Effectiveness of Promotion Expenses of Universitas Advent Indonesia on Gathering Market Size and Market Share from SDA Feeders’ Schools (Senior High Schools) in West Indonesia

2022-03-18T01:55:08+00:00

Every business must increase its sales by making regular promotions every year. To enable them to survive, they will measure their ability to gather market size and market share on their business lines. The main purpose of this research is to measure the effectiveness of promotion expenses on gathering market size and market share of Universitas Advent Indonesia from all feeders (Senior High Schools) of Seventh-day Adventist Schools in West Indonesia. This study uses an 8 (eight) years sample, starting from school years 2011/2012 – 2018/2019. Using component analysis method. The component is analyzed based on yearly promotion expenses and the result of market size and market share. The result shows that every year the effectiveness of promotion expenses on gathering market size is very effective i.e for school year 2011/2012 = 383.17%; 2012/2013 = 798.31%; 2013/2014 = 651.75%; 2014/2015 = 656.48%; 2015/2016 = 685.92%; 2016/2017 = 444.55; 2017/2018 = 655.95%; 2018/2019 = 543.54%. The average for eight years = 579.14% (very effective). While the effectiveness of promotion expenses on gathering market share is also very effective i.e for school year 2011/2012 = 102.82%; 2012/2013 = 198.65%; 2013/2014 = 168.83%; 2014/2015 = 149.62%; 2015/2016 = 176.42%; 2016/2017 = 122.53%; 2017/2018 = 173.97%; 2018/2019 = 138.35%. The average for eight years = 149.21% (very effective).

Keywords: Effectiveness, Promotion Expenses; Market Size; Market Share; Feeders’ School.

Management Concept of One

2022-03-18T01:56:48+00:00

The objective of this research is to identify and detect the management concept of one. The identified problem is organizations do not identify the management concept of one it is functional elements. There is a gap between one functional concept and one physical concept of segregated functionalities. Conceptualization of the one functional concept through differential structural phenomenon and analyzing the organization’s structural behavior of the segregated functionalities. Conceptualization research techniques of quantitative and qualitative methods were used in this study. The empirical Observation method was used for data collection. Data collection ranges include life, physical, chemical, social, geo, management, nuclear, behavioral, and mathematical sciences for conceptualizing the differential structural phenomenon and the prevalent organizational structure adopted by organizations. The study results show the concept of one in a complex degree of clarity of everything in the differential structures considered in this research which is part of one and one is part of everything. The concepts of a physical phenomenon are connected with humans’ cognitive and spiritual domains, bringing the differential structural phenomenon of plurality into a singularity of the multiplicity of plurality. There is only one, and no parts are the concept of one in the differential structural concept. The results of this study confirm that the concept of one is not one that makes everything, but everything that makes that One which is the concept of one. There is no part but a whole one. If part, then the whole One is hidden (out of sight). If a whole, then the part is hidden (out of sight). If parts of the whole One, then the parts of the whole are not hidden.

Keywords: Management, the concept of One

Does Announcement on Public Activity Restrictions Affect Stock Prices? Evidence from Indonesia

2022-03-18T01:58:21+00:00

The new variant of Covid - 19, delta variant, has affected many countries. Indonesia has recorded rapid additional cases day by day since the second half of June 2021. The record shows that there are around 4,000 cases daily at the beginning of June 2021, an increase to more than 20,000 at the end of June. In order to avoid further spreading of the virus, the government announced a restriction for public activity, scheduled for July 3rd to July 20th, 2021, which then extended to August 9th, 2021. This important announcement was expecting market reaction just like the first announcement of Covid-19 entrance to Indonesia in March 2020, when many stock prices dropped rapidly. This paper aims to study the effect of the restriction and the announcement of several pieces of information such as daily additional cases, daily additional deaths, and positivity rate to the stock prices in Indonesia Stock Market during public activity restriction from July 3rd to September 13th, 2021 before the re-extension of the restriction. There are 724 unique firms listed in IDX, with 25 trading days observed. Data of the announcement were taken from kawalcovid19.id daily announcement, and stock prices data were taken from stock summary open access data from IDX website and yahoo finance, resulting in 18,824 firm-day observations. Stata was used to process the regression while controlling for the firm and industry. A robustness test was done to see the effect of the announcement on each industry. This paper finds that daily announcement does affect stock prices during public activity restriction in the announcement of additional deaths and positivity rate announcement. Empirically, higher death and higher positivity rates were reported to drop the stock prices in Indonesia.

Keywords: stock prices, public activity restriction

Critical Analysis of Intrinsic Global Business and Human Natures

2022-03-18T02:00:47+00:00

The objective of this study is to identify the intrinsic global business operations and human natures of the products and services produced and consumed. Global business organizations are very popular and fluid in establishing according to the market feasibility of accepted products/services. Either satisfying needs/wants or creating new tastes and preferences added to the existing products/services. These satisfy human craving, passion, and convenience. The gap identified is between needs/wants and the existence of global businesses on a long period in the market. From where do the marketers derive these market realities? How do global marketers bridge this gap for a sustainable business? This study is a combination of quantitative and qualitative research. Secondary data was used in the analysis of the research question(s)/hypothesis. The observation method was administered, and data were analyzed. The data set include: product/service features/characteristics, advertisements, reviews, up and downsides, and influenced intrinsic human nature of physiological-cognitive-social-spiritual propensities towards needs/wants on consumption that generated company revenue. The findings of this research show the characteristics linked with the downside of human physiological, physio-cognitive, and physio-sociological, physio-spiritual needs. Hence, global organizations use an algorithm based on the human nature of weaknesses to manifest addictions to buy products/services and to lose their individuality.

Keywords: Intrinsic, global business nature, human nature

ROS, DR and DSCR

2022-03-18T02:08:54+00:00

Every business wants to grow and succeed. The success of a company’s business will cause the company to have the trust of the creditor to get a loan so that the company’s management will make decisions about the capital structure that will be run by the company. Furthermore, changes in capital structure will affect the company’s ability to pay debts. The purpose of this study was to determine the effect of efficiency (ROS) on capital structure (DR) and its impact on debt coverage (DSCR). The data used is quantitative data with causal associative methods. The study lays out descriptive statistical results, correlation and determination coefficients, significance tests, and regressions. This study used secondary data on the financial statements of Health Sector Companies listed on the Indonesia Stock Exchange for 2017 - 2020. The results showed that efficiency had a positive and very weak relationship with the capital structure. Efficiency has no significant effect on the capital structure. The capital structure has a negative and very weak relationship to debt coverage. The capital structure has no significant effect on debt coverage. Finally, the conclusion is that the higher profit gives the company the opportunity to obtain investment through debt. However, debt leads to narrower debt coverage. Companies with small profits did not choose debts as their source of funding and did not face debt coverage issues.

Keywords: profit, capital structure, debt coverage

Effects of Financial Ratios in Early Warning System and Macro-Economic to Stock Returns (Empirical Study at Insurance Companies at Indonesia Stock Exchange 2014 – 2018)

2022-03-18T02:14:23+00:00

The objective of this research is to determine both partial and simultaneous effects of financial ratios in Early Warning Systems that consist of claims liability ratio, liquidity ratio, and SBI rate toward the stock return of insurance companies for the period 2014 – 2018 in Indonesia Stock Exchange. The research used a descriptive-analytical method. The research was conducted by an explanatory research technique in those insurance companies that were listed and active in Indonesia Stock Exchange by using secondary data, that is, financial statements of insurance companies for a period 2014-2018 and SBI rate, whereas the data analysis method used was a multiple regression by using SPSS. The result of the partial test showed that incurred claims liability ratio has a significant negative effect on the stock return of the insurance companies, the liquidity ratio has a significant positive effect on the stock return of the insurance companies, and the SBI rate has a significant positive effect on the stock return of the insurance companies. Meanwhile, the result of the test simultaneously showed that financial ratios in the early warning system (incurred claim liability ratio, liquidity ratio, and SBI ratio) have a significant effect on the stock return of the insurance companies in the Indonesia Stock Exchange.

Keywords: claim liability ratio, liquidity ratio, SBI ratio, stock return

Relationship of Organizational Culture and Citizenship Behavior on Soft Skills as Mediated by Transformational Leadership: The Case of Philippine State Universities

2022-03-18T02:20:19+00:00

The paper investigated the relationship of organizational culture and organizational citizenship behavior on soft skills as mediated by transformational leadership. Data from 324 faculty members were collected through G-power as the basis for the computation of sample size. This study used descriptive-correlational design and structural equation modeling. A Self-constructed questionnaire was utilized, having formatted on a 4-point scale. The Kruskal Wallis, ANOVA, T-test, correlation coefficient, regression, and SmartPLS were used to test the hypotheses. The result of this study reveals that faculty members have strong organizational culture, organizational citizenship behavior (OCB) was good, transformational leadership was good, and the respondent’s soft skills were also good. Transformational leadership was predicted by OCBI, OCBO, and clan culture. Soft skills are predicted by inspirational motivation and individual influence. As to Organization Culture and OCB, the predictors of soft skills are OCB-O, OCB-I, and negatively predicted by clan culture. Transformational leadership has a partial mediating effect between OCB, organizational culture, and soft skills. However, organizational culture and organizational citizenship behavior have a significant direct effect on soft skills.

Keywords: Organizational Culture, Organizational Citizenship Behavior, Transformational Leadership, Soft Skills, State University

The Effect of Power Distance and Individualism on the Reliability of Audit Evidence

2022-03-18T02:26:24+00:00

Audit evidence is basic information used by an auditor to provide an opinion on the audited financial statements, and this can be achieved supported by the accuracy of the data provided. This study aims to determine the effect of power distance and individualism on the reliability of audit evidence in public and private Universities in North Sulawesi. This research is quantitative research with a descriptive correlation design. The population in this study is finance staff at public and private universities. The results indicated power distance and individualism have a significant relationship with the reliability of audit evidence at public/private universities in North Sulawesi.

Keywords: Reliability of Audit evidence, Individualism, Power distance