International Journal of Trade and Global Markets (25 papers in press)
Examining Agricultural Export Returns from Midwestern States
by Anil Giri, Sankalp Sharma, Kyle Lovercamp, Iuliia Protopop, John Tiner
Abstract: Most job losses in the United States (US) prior to and after the great recession were manufacturing related jobs as domestic producers decided to shift production to offshore locations. This also included export-oriented jobs. Almost 6% of total US exports comprise agricultural products. We therefore, investigate if agricultural exports increase median household income and decreased unemployment rate using a sophisticated simultaneous equation model. The results show that for Midwestern states an increase in animal and plant exports increased the median household income albeit minimally for majority of the states. We also empirically verify that an increase in the unemployment rate results in a decrease in median household income.
Keywords: US Ag Exports; Midwest; Median Household Income.
The role of Entrepreneurial Orientation in intervening the relationship between Social Media Usage and Performance Enhancement of exporter SMEs in Indonesia
by YONG DIRGIATMO, Zarifa Abdullah, Raja Haslinda Raja Mohd Ali
Abstract: The purpose of this paper is to investigate whether the entrepreneurial orientation (EO) provides a mediation effect on the relationship between the use of social media and both financial and non financial performance enhancement of exporter SMEs in Indonesia. The EO refers to the three dimensions initiated by Miller (1983), namely Innovation, risk-taking, and pro-activeness. While the use of social media by SMEs related to marketing support, customer relations and information accessibility (Parveen et al., 2016). A quantitative approach is used for 75 exporter SMEs located in Central Java Province, Indonesia. Data is collected through direct interview by 8 surveyors. The findings showed that only innovativeness provides mediation effect on the relationship between social media usage and exporter SMEs performance, both financially and non-financially. The implications of these findings indicate that by creative and innovative design, Indonesian SME products have been accepted and capable to compete in the international market.
Keywords: Exporter SMEs; social media; entrepreneurial orientation; firm performance.
Empirical analysis of export performance and economic growth: the case of Macedonia
by Darko Lazarov
Abstract: The main aim of the paper is to investigate the export structure of Macedonian economy at product level and to analyse the impact of export sophistication on economic growth. The results show that Macedonian export has recorded a significant positive trend in the last two decades, but the export structure is still highly concentrated (the top 10 products have nearly half of the total countrys export) and it is composed from products with relatively low complexity level (garments, basic metals, agricultural products). Additionally, the estimated results based on vector autoregression (VAR) model and Granger causality test demonstrate positive and statistically significant causal relationship between export sophistication and economic growth for the period 1995
Keywords: Economic growth; export sophistication; VAR model; Republic of Macedonia.
One Belt One Road: A New Aspect on Income Convergence
by Mui Yin Chin, Sheue Li Ong, Yee Qin Kon
Abstract: In light of the one belt one road (OBOR) initiation, this study aims to examine the presence of income convergence in selected Association of Southeast Asian Nations (ASEAN) countries and China using spatial econometric methods. The result shows evidence of income convergence among the countries and implies that the ASEAN economy would be ameliorated if the trade relationship with China is further enhanced through implementation of the OBOR initiative. Thereafter, using bilateral trade as a weighting, the estimation affirms that the selected countries and China will enjoy income convergence. Thus, this result forecasts that the OBOR implementation would bring benefits to ASEAN countries and China.
Keywords: income convergence; spatial econometric methods; ASEAN-China bilateral trade; ASEAN-China FDI.
IMPROVING SERVICE EXCELLENCE ON PASSENGER SHIPS IN INDONESIA
by Adenanthera Lesmana Dewa
Abstract: This study aims to 1) analyse ship passengers profiles and their perceptions of service excellence from sea transportation services; 2) analyse the efficiency of passenger ship routes; and 3) measure willingness to accept (WTA) of ship passengers. This research uses sequential mixed methods with ATLAS.ti, data envelopment analysis (DEA) and WTA as the analytical instruments. The results show that the majority of ship passengers were from low economic groups, who chose sea transportation for their convenience and facilities. DEA calculations show that six ship routes were efficient whereas the other 14 routes were inefficient. WTA of multimodal users reached 14.3%. It can be concluded that the improvement of service excellence for ship passengers is highly dependent on passenger profiles, ship service and facilities, ship efficiency and affordable ticket prices.
Keywords: service excellence; sea transportation; WTA; DEA; ATLAS.ti.
Social Capital and the Cyclicality of Government Expenditure
by Roman D. Bausch
Abstract: Fiscal policy in developing countries follows predominantly the business cycle. By aggravating economic contractions, procyclicality has adverse effects on the prospects for countries and their international trading partners. Recent work identified as a leading cause for procyclicality institutional shortcomings. This paper sets out to examine whether fiscal cyclicality is determined by social capital, which in many ways shapes and constrains the institutional environment. The study confirms a causal and robust negative relationship between social capital and procyclicality, whereby the results indicate that this relationship partially runs through the adoption of fiscal rules and the extent of corruption.
Keywords: fiscal cyclicality; social capital; fiscal rules; corruption.
SYSTEM ADVANTAGE STRATEGY FRAMEWORK; A Literature Review
by Ade Muhammad, Utomo Sarjono Putro, Manahan Siallagan
Abstract: In the ever-changing, complex, real world, strategy has its own limitation, namely strategy as a wicked problem. Therefore the aim of this manuscript is to provide a literature review as a basis of generic systemic strategy to obtain the highest advantage and then apply it in various fields. The methodology would be investigating the properties of all strategy schools from the point of view of system principles. We found out how strategy have failed by looking at their gaps. Furthermore, findings show the significant gaps between all strategy school of thoughts with properties of system school of thoughts. This would constitute the explanation why available strategy could not cope with the recent complexity and non-linearity. Then there is novelty in the creation of framework fusion between strategy characteristics with problem mapping, as a diagnostic tool, as well a suitable strategy to deal with. This then is called strategy advantage framework.
Keywords: Strategy; System; Advantage; Fusion; Hybrid; Management.
The Impact of Bonus Schemes and Machiavellianism in Earnings Management Intentions
by Anna Purwaningsih, Sang Ayu Putu Piastini, M.G. Fitria Harjanti
Abstract: This study investigates the association of bonus schemes and Machiavellianism upon managers intentions for earnings management. The research is crucially important because earnings management practices can mislead the users of financial statements in their decision-making processes. The research is an experimental research, with a 2
Keywords: earnings management; bonus scheme; machiavellianism; experimental research.
Re-engineering the Business Process of Sales in View of Life Cycle Stage and the Company Organizational Structure
by Viktor Kuznetsov, Dmitry Lapaev, Dmitry Kornilov, Ekaterina Garina, Artem Bardakov
Abstract: Purpose: The work focuses on the development of methodological aspects of conformity assessment and the appropriateness of implementing the two-tier scheme of sales division, depending on the type of enterprise management structure at the various stages of divisions life cycle. Design/methodology/approach: Methods of multi-criteria comparison of factors and horizontal analysis of financial indicators have been applied. Findings: As the main indicator for evaluating the effectiveness of re-engineering of business processes of the companys sales activity, it is suggested to apply the
Keywords: Business process; re-engineering; type of management organizational structure; life cycle of the firm.
Policy Recommendation on Outstanding Loan Administration of the Peoples Bank Program of Public Financial Institution in Thailand
by Panitee Karnsomdee
Abstract: The objectives of research aimed to investigate credit customer behaviours influencing on outstanding loan of the peoples bank program of government savings bank and to apply results of the effects for policy recommendation on outstanding loan administration of public financial institution in Thailand. The samples of 283 overdue customers were collected through questionnaires and analysed by descriptive and inferential statistics including multiple regression analysis. The research results found that credit customer behaviour on the dimension of family economic management has statistically significant positive influenced on outstanding loan with standardised coefficients (?) of 0.582 at 0.05 significant levels. The policy recommendation on outstanding loan administration of public financial institution in Thailand has established based on credit customer behaviours and credit policy.
Keywords: Policy Recommendation; Outstanding Loan Administration; Credit Customer Behavior.
MODELLING IMPACT OF ECONOMIC AND DEMOGRAPHIC FACTORS ON PERSONAL SAVING RATE IN THE EURO AREA
by Renata Pitonakova
Abstract: The decision of economic subjects whether to consume or save is determined by different economic, monetary, and demographic factors. The paper focuses upon personal saving rate of the whole euro area taking into account economic and demographic aspects. The modelling uses quarterly data within 2005 Q1
Keywords: Finance; Personal saving rate; Dependency ratio; Inflation; Government expenditures; Euro area.
UTILISATION ANALYSIS AND INCREASING STRATEGY: E-COMMERCE USE OF SMEs IN BANDUNG, INDONESIA
by SAMUN JAJA RAHARJA
Abstract: Electronic commerce or e-commerce is an important factor in developing domestic and international scale businesses. It also increases the efficiency of trade and integrates developing countries into the global economy. Although generally receptive, small and medium-sized enterprises (SMEs) in Bandung have low usage of technology for their operations. By applying descriptive methodology, this study aims to describe e-commerce utilisation and strategies for increasing e-commerce use of SMEs in Bandung. Data were collected from 2300 SMEs via survey. Results indicate that, although not all SMEs use the internet, the firms understood the benefits of using e-commerce and were willing to adopt it in their business activities. SMEs who use the internet mostly do not use websites and marketplaces for their business activities. Moreover, most SMEs are still hesitant about the security of doing business via the internet and still encounter difficulties in using online business applications.
Keywords: utilisation; e-commerce; marketplace; security; strategy.
Profit shifting behavior between sisters companies: the case of Czech Republic
by Marian Dobranschi, Danue Nerudová, Veronika Solilova, Marek Litzman
Abstract: The aim of this paper is to research the profit shifting behaviour within the same multinational group of companies. We investigate the sensitivity of pre-tax profit to tax differences between Czech subsidiaries and their sister companies placed in other European Union countries. The profit shifting behaviour is indirectly estimated by adopting Hines-Rice method. The objective of this research is to determine whether the reported pre-tax income is sensitive to the corporate income tax (CIT) differences. We expect an inversely related reaction of profit before taxation to tax differential. The degree of sensitivity should depend on the particular tax advantageous position of the Czech Republic relative to the other EU countries high corporate tax rates.
Keywords: profit shifting; tax differential; semi-elasticity; statutory CIT rate; instrumental variables; corporate tax policy; foreign owned subsidiaries; sister companies; Multinational Enterprises.
Employee Behaviours Affecting Job Satisfaction
by Jhon Veri, Muhammad Ridwan, Feri Lasman
Abstract: This research aims to prove the direct influence of employee behaviour on job satisfaction. An empirical descriptive study was performed, with the sample consisting of 78 employees working in companies processing rubber raw materials in Indonesia. The data were analysed using partial least square method of structural equation modelling. Results reveal that self-efficacy exerts the most influence on job satisfaction. The indicators of this particular employee behaviour are morale and perseverance. Companies should establish good relationships with employees to improve job satisfaction. Enabling it to compete to face globalisation.
Keywords: Self-efficacy; Locus of Control; Goal Commitment; Job Satisfaction.
EFFECT OF PERCEIVED VALUE ON REPURCHASE INTENTION IN E-COMMERCE: A STUDY ON THE FEMALE DAILY MOBILE APPLICATION
by Pratami Wulan Tresna, Suryanto SE., M.Si, Hisly Haidysirly
Abstract: This study aims to determine the effect of perceived value on the repurchase intention of Female Daily application users and to evaluate the magnitude of such effect. The number of samples, that is, 100 respondents, was determined using the Slovin formula. This study adopted descriptive verification analysis with a quantitative approach and simple linear regression. Results indicated that perceived value affects the repurchase intention of Female Daily application users. The correlation coefficient of 0.605 indicates a strong relationship between perceived value and repurchase intention. While the coefficient of determination is 36.6%, which means that the repurchase intention is influenced by perceived value, while the remaining 63.4% is influenced by other factors not examined and the regression equation obtained is ? = 9777 + 0,586X.
Keywords: perceived value; repurchase intention; e-commerce; mobile application .
The role of tax risk management in international tax avoidance practices: Evidence from Indonesia and Malaysia
by Indah Masri, Akhamd Syakhrosa, Ratna Wardhani, Samingun Samingun
Abstract: The aims of this research are to analyse the effect of international tax practices on tax avoidance, and the moderating effect of tax risk management. The results of the research show that international tax practices are a form of international tax avoidance in order to lower tax liabilities. The results also show that tax risk management can weaken the positive effect of international tax practices on tax avoidance, especially in the practice of thin capitalisation and multinationality. The research results contribute by proving that tax risk management is one of the controls used by multinational corporations in tax avoidance.
Keywords: Tax risk management; International tax practices; Tax Avoidance; Thin Capitalisation; Multinationality; Tax havens.
Competitiveness and protection policy: the case of Indonesian lobster exports to the Asian markets
by Yoyon Muzayyin, Ir. Masyhuri, Dwidjono Hadi Darwanto, Efri Junaidi
Abstract: As one of the worlds lobster producers, Indonesia exports lobster to different countries in the world including Asian countries. The Indonesian government plays an important role in making policies to protect its lobster commodities. This paper aims to determine the competitiveness of Indonesian lobster exports to several Asian countries before and after the government issued the lobster protection policy. Based on RCA and Market Share analysis, Indonesias competitiveness and lobster market share increase in Hong Kong, Singapore, Malaysia and Thailand after the Indonesian government issued the lobster protection policy.
Keywords: Indonesian lobsters; export competitiveness; protection policy; Asian markets; comparative advantage; market share.
THE IMPLEMENTATION OF QUALITATIVE COMPARATIVE ANALYSIS (QCA) TO DEFINE THE WORKING CAPITAL MANAGEMENT STRATEGY OF HOTELS IN INDONESIA
by Rini Lestari, Taufik Faturohman
Abstract: Indonesian tourism and hotel business has shown positive growth and prepared as the economic leading sector. This research aims to define the working capital management strategy of Hotels in Indonesia to optimise corporate performance in spite of the uncertainty of the external environment and seasonal demand. The data consist of quarterly financial data of 11 companies under subsector hotel, restaurant, and tourism listed in Indonesia Stock Exchange during 2012
Keywords: fsQCA; Fuzzy Set QCA; QCA; Qualitative Comparative Analysis; Short-term Financial Decision; Strategy; Working Capital Management.
Palung Salt in Bali: Strategies for the Local Product to Penetrate Global Market
by Yety Rochwulaningsih, Misri Gozan, Mahfud Effendy, Noor Naelil Masruroh, Waskito Widi Wardojo
Abstract: The purpose of this study is to investigate how the strategy carried out by the palung salt businessmen to penetrate the global markets. The determination analysed using the grounded theory method based on the in-depth interview, focus group discussion (FGD), observation, and laboratory examination. Palung salt as a unique and distinctive Balinese product which has a particular taste, quality, and hygiene characteristics. Such characteristics represent the initial capital to penetrate the global markets, occupying several strategies such as improving business networks, product standardisation, and market networking. Besides, product standardisation has been created using laboratory tests, product variants, packaging, labelling, and application for the Geographical Indication. The market network tends to show patronage patterns thereby potentially establishing a dependence on specific market segmentation as reflected in several market networks. In this economic activity context, salt business is embeddedness in the social life of Balinese society and become a determinant market strategy success.
Keywords: Palung Salt; Local Products; Global Markets.
Classification of Elderly Worker before Super-Aged Society on Cognition of Current Job
by Sung-Eun Cho, Young-Min Lee
Abstract: This study aims to find the implications the current elderly workers have for future labour market and employment to increase how long the elderly workers can stay in the labour force. The result showed most elderly workers want to remain in the labour market, regardless of the quality of or perception about current job. Implications have been suggested to help elderly workers to stay in the labour force in the super-aged society. It is expected this study will be able to offer insights for neighbouring countries bracing for an aged or super-aged society from the example of South Korea.
Keywords: Super-Aged Society; Elderly Worker; Prime Age; Latent Class Analysis.
Investigating the Perception of the Elderly on the Future of Labour Market
by HAYEON JANG, Youngmin Lee
Abstract: This study aims to explore the future labour market, which faces significant changes, using Q methodology. The Ken-Q Analysis program was used to analyse the result. The results found that elderly workers perceptions about the future labour market can be divided into four categories:
Keywords: elderly; elderly workers; future labour market; Q Methodology.
Expatriate Career Development: Self Efficacy, Multicultural Personality, Collective Efficacy, and Individual Expatriate Performance
by Wiji Utami, Diana Tobing, Hadi Paramu, Slamin Slamin
Abstract: This research aims to identify and analyse the factors that are affecting the performance of expatriates. The population in this study were expatriates who worked in Indonesia. The sampling method was snowball sampling. The number of respondents of this study was 453 expatriates who worked in several companies in Indonesia. Questionnaires were distributed using Google Form, while the analytical tool used was path analysis. The results of the analysis showed that self-efficacy, multicultural personality, and collective efficacy directly affect the performance of individual expatriates. Sobel test was used to see the mediating effect collective efficacy on expatriate performance. The results showed that the collective efficacy mediated the effect of self-efficacy on expatriate individual performance and the collective efficacy mediated the effect of multicultural personality too on expatriate individual performance.
Keywords: Self Efficacy; Collective Efficacy; Multicultural Personality; Expatriate Individual Performance.
Examining brand affect mediation roles: trends and implications for tablet PCs market
by Sri Rahayu, Tulus Haryono, Mugi Harsono, Ahmad Ikhwan Setiawan
Abstract: This study aimed at examining the brand affect mediation role of brand intention and brand reliability influences towards purchase loyalty and attitudinal loyalty for the customers of tablet personal computers (hereafter: tablet PCs) in Indonesia. The country took 82% of the products market share of tablet PC in the South East Asia Region in 2014, and this figure is believed to remain high in recent years. A number of 195 university fresh-students in Yogyakarta, the city of education in Indonesia, were selected in a purposive sampling technique to fill out a tablet PC usage questionnaire. The data were analysed by using structural equation modelling (SEM). The results indicate brand affects mediating role, brand intention and brand reliability positive effect on customers loyalty, trends volatility in purchasing tablet PCs, and brand intention and brand reliabilitys different effect towards attitudinal loyalty. Suggestions for managerial implications and research in the future are presented.
Keywords: brand intention; brand reliability; brand affect; purchase loyalty and attitudinal loyalty.
Validating the Adaptive Market Hypothesis in the Tunisian Stock Market
by Paul-Francois Muzindutsi, Adefemi A. Obalade
Abstract: We investigated how the adaptive market hypothesis (AMH) offers better explanations for stock return behaviour than the popular efficient market hypothesis (EMH) in the Tunisian Stock Market (TSE). Daily stock index returns from April 1999 to February 2018 were employed. We performed linear and non-linear predictability tests to test whether the TSE undergoes time-varying efficiency. Dummy regression models were performed to determine whether market conditions influence return predictability. Our findings show that the TSE witnessed the era of predictability and unpredictability. We found high return predictability during high volatility period but low predictability during the bull and bear conditions. We submit that the AMH is valid in the TSE.
Keywords: return predictability; adaptive market hypothesis; efficient market hypothesis; BDS test.
Network-based dynamic capabilities in internationalisation of SMEs: Case studies in emerging economy
by Anjar Priyono, Siti Nursyamsiah, Baziedy Darmawan
Abstract: This study aims to identify how networks support firms to penetrate foreign markets, and how networks improve their capability to better fulfil the needs of markets abroad. A multiple case study research design was used to explore the use of networks to support dynamic capabilities of small and medium enterprises (SMEs). The study used various sources of data and data collection methods to enable researchers to undertake triangulation. Data analysis demonstrated that with the support of networks, SMEs gain a number of benefits, including obtaining scarce resources, knowledge acquisition and overcoming resource constraints. This study thus suggests that the managers of SMEs should attempt to convert their networking capabilities into routines, so that these capabilities are not embedded in certain people only.
Keywords: SMEs internationalisation; networking; dynamic capabilities; knowledge acquisition; resource orchestration; familiy business; entrepreneurship; product innovation; networked capabilities.