International Journal of Trade and Global Markets (30 papers in press)
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.
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.
Exploring digital competing capability in the intention to adopt e-commerce (toward a conceptual model)
by Muhammad Kholid Arif Rozaq, Muhammad Kholid Arif Rozaq, Asri Laksmi Riani, Asri Laksmi Riani, Mugi Harsono, Mugi Harsono, Ahmad Ikhwan Setiawan, Ahmad Ikhwan Setiawan
Abstract: This paper explores the inconsistencies in the relationship between technology readiness dimension and technology adoption intention along with the existing phenomenon of low e-commerce adoption in Indonesia. The advantage of this research lies in the synthesis to gain and propose a new variable to bridge the inconsistencies. The new variable, digital competing capability, is what distinguishes this research from the previous studies on e-commerce adoption. The propositions for this research were developed from and based on three main theories, namely resource-based view (RBV), competitive advantage, and organisational adaptation. This research is expected to contribute to the development of technology adoption concept, with the appearance of digital competing capability as a new variable. This theoretical contribution helps filling the gaps in previous researches, aiming at strengthening the relationship between technology readiness and e-commerce adoption. Further researches to show empirical model results are highly recommended.
Keywords: e-commerce; digital competing capability; technology readiness; e-commerce adoption; MSME.
Follower Characteristics, Obedience, and Constructive Resistance: The Role of Co-Production Leadership
by Joko Suyono, Hunik Sri Runing Sawitri, Sinto Sunaryo, Ana Shohibul Manshur Al Ahmad, Risgiyanti Risgiyanti
Abstract: Co-production leadership is an emerging leadership model which is not a leader-centred. It involves leaders and followers working together to determine organisational outcomes. The followers personal characteristics will determine the extent to which followers are involved in the leadership process. Followers also have a variety of beliefs about their role, both in the traditional perspective and within the framework of a partnership with leaders. This makes the co-production leadership model influences follower behaviours in the form of compliance and constructive resistance. This study aimed to develop a model of co-production leadership by examining the followers characteristics as a predictor, and its impact on the follower behaviours, such as compliance and constructive resistance. This research was conducted on a political party, which has not been done in previous studies. To test the model developed in this study, partial least square (PLS) analysis was employed.
Keywords: Co-Production leadership; individualism; collectivism; proactive personality; obedience; constructive resistance.
Impact of Electronic Word -of- Mouth on Brand Awareness in the Video Game Sector: A Study on Digital Happiness
by SAMUN JAJA RAHARJA
Abstract: More than 26 years of economic and trade reforms have helped the Indian economy to increase trade volumes. This paper reviews Indias free trade agreements (FTAs) with Association of Southeast Asian Nations (ASEAN) countries and its proposed FTA with European Union (EU). Annual data of Indias exports, imports, and trade volume with EU and ASEAN countries is employed to study the Gravity Model. Variables studied include distance, population, FTA (dummy variable), and gross domestic product of EU and ASEAN countries for a period of 19 years from 1996 to 2014. The panel ordinary least squares regression method is applied to analyse the relationship between different variables. With the available data set, experiments signify the Gravity Model for India with EU and ASEAN countries. Different factors are found with respect to both the blocs, and the results are as per the synthesis in this theory.
Keywords: electronic word of mouth; brand awareness; DreadOut; Digital happiness.
DO FIRM CHARACTERISTICS, POLITICAL CONNECTION AND CORPORATE GOVERNANCE MECHANISM AFFECT FINANCIAL DISTRESS? (EVIDENCE FROM INDONESIA)
by Yeterina Nugrahanti, Sutrisno T, Aulia Fuad Rahman, Endang Mardiati
Abstract: The objectives of this study are to evaluate the impact of firm characteristics (firm size, liquidity, profitability, and leverage), political connection and corporate governance mechanism (independent board of commissioner, institutional ownership, and board of commissioner size) on the level of financial distress. Altman Z-score is used to measure financial distress in this study. Purposive sampling was conducted and 576 firm-years non-financial companies listed in Indonesian Stock Exchange during 2014
Keywords: financial distress; firm size; liquidity; profitability; leverage; political connection; independent board of commissioner; institutional ownership; the board of commissioner size.
The Dynamic Nexus between GDP, Consumption and Exports of BRICS Countries: An ARDL Cointegration Analysis
by Zeenat Fatima, Mohd Shamim
Abstract: The study empirically examines the consumption and export-led growth strategy of BRICS countries. The country-specific time series data have been used to examine the short and long-run impact between the gross domestic product (GDP), export and consumption from 1989 to 2016. The autoregressive distributed lag (ARDL) and error correction method are applied for the equilibrium-adjustment analysis. The ARDL bound test confirms the long-run cointegration between the variables of Brazil, Russia, India and China (BRIC) and fails to indicate any cointegration in South Africa series. Hence, the empirical evidence shows that both the strategies play a significant role in disequilibrium correction of BRIC countries whereas system analysis has been done in Brazil and Russia series. It implies that Brazil and Russian economic systems have bi-directional long-run causality. However, India and China series have uni-directional long-run causality from export and consumption to GDP whereas South Africa series has only short-run causality.
Keywords: BRICS countries; trade; Cointegration Analysis.
THE ROLE OF MANAGEMENT CONTROL SYSTEMS IN THE PERFORMANCE OF HIGHER EDUCATION THROUGH GOOD UNIVERSITY GOVERNANCE
by Ali Muktiyanto, Rini Hadiwidjaja, Ancella Hermawan
Abstract: Management control systems (MCSs) encourage university management to focus on achieving the expected performance. Unfortunately research on MCS in the public sector, has been very limited especially in the universities. It has been argued that MCS affects the Performance of Higher Education albeit in a weak manner. However, there are certain other variables that influence the role of MCS on higher education performance. Good university governance (GUG) is one of them. Kim (2008) states that GUG factors determine the success of management, quality control and organisational performance. This study seeks to examine the role of GUG under the influence of MCS on Performance. A study of 70 undergraduate accounting study programs in Indonesia using structural equation model has shown that MCS does affect performance. The effect is more pronounced with GUG being a mediator between MCS and performance. This suggests that the role of GUG should be optimised to enhance the role of MCS.
Keywords: Management Control System; Higher Education; Performance.
Fiscal Decentralization and Capital Expenditure Composition of Regional Government in Indonesia
by Khoirunurrofik Khoirunurrofik, Imam Ghozali
Abstract: This study analyses the impact of fiscal decentralisation on the composition of regional government spending using unbalanced panel data of districts and cities in Indonesia during 2011
Keywords: fiscal decentralization; regional spending; Infrastructure; human capital.
Misallocation and Manufacturing TFP in Thailand after the 1997 Asian Financial Crisis
by Siwapong Dheera-aumpon
Abstract: This paper evaluates the degree of resource misallocation and its effect on aggregate productivity in the Thai manufacturing sector after the 1997 crisis. This paper uses plant-level data from Thailand's Industrial Surveys. The results indicate that misallocation slightly decreases during 1999
Keywords: crisis; manufacturing; misallocation; productivity; TFP; total factor productivity; Thailand.
Determinants of E-Money Adoption: An Empirical Study
by Hamfri Djajadikerta, Marcellia Susan
Abstract: Electronic-money (e-money) does work not only as a substitute for physical cash but also as a system that made payments on goods and services possible that facilitate transactions in both domestic and global markets. This research is conducted to analyse certain factors that determine the behavioural intention and adoption of e-money. Data concerning adoption readiness (perceived ease of use, perceived usefulness and social influence), perceived credibility, behavioural intention and adoption of e-money were processed using structural equation modelling to ensure the relationships between research variables. The results indicate that perceived credibility positively affects behavioural intention and behavioural intention positively affects e-money adoption.
Keywords: Adoption Readiness; Behavioral Intention; E-money Adoption.
THE ROLE OF GENDER IN THE RELATIONSHIP BETWEEN ABUSIVE SUPERVISION AND EMPLOYEES ORGANIZATIONAL CITIZENSHIP BEHAVIOUR IN INDONESIA
by E.D.I. CAHYONO, Tulus Haryono, Mugi Harsono, Budhi Haryanto
Abstract: The purpose of this paper is twofold; first, to examine the relationship between employees perception of abusive supervision and their organisational citizenship behaviour (OCB) and, second, to investigate the moderating role of gender differences on this relationship. Data were collected from 104 employees working in an Indonesian hotel through self-report questionnaires. The finding of the study confirms that abusive supervision is negatively related to subordinates OCB. The study also reveals that women employees OCB lower often than their men counterpart, when they perceive their supervisors to be abusive. The studys implications for theory and practice are discussed, its limitations are identified, and directions for future research are suggested.
Keywords: Abusive Supervision; Gender; Organizational Citizenship Behaviour.
Business Model and Business Model Innovation: Scholarly Incongruence and Implications to Entrepreneurial Firms
by Wanniwat Pansuwong
Abstract: Recent entrepreneurship research emphasise the importance of the emerging knowledge in business model and business model innovation as they can be considered critical for businesses to disrupt and compete effectively in the dynamic international business markets. To date, there still is incongruence in conceptualisation of these terminologies and inconsistent empirical findings, conclusions and implications. This study reviews definitions/concepts that influence and present significant implications to scholars in the field and implications to entrepreneurial firms following the narrative literature review approach. The study presents a more congruent trend of understanding of the concepts while justifying their implications to contemporary entrepreneurial firms.
Keywords: Business Model; Business Model Innovation; Entrepreneurial Firms; Incongruence.
Are Emotions Exacerbating the Recency Bias?: An Experimental Study
by Felizia Arni Rudiawarni, I. Made Narsa, Bambang Tjahjadi
Abstract: This research aims to examine whether emotions can affect the recency bias in judgement and decision making (JDM). This study finds that the effect of recency bias is so strong that emotion does not affect the recency bias experienced by participants when making decisions. Further analysis shows that humans tend to weigh negative information more heavily than positive information. This research contributes to behavioural finance research in which this research incorporates an element of emotion in the recency bias, where this is so far known, is still not widely researched, especially in emerging market.
Keywords: recency bias; emotion; judgement and decision making; experimental study.
MEASURING TRADE SPECIALIZATION OF SLOVAKIA ON EXTRA EU MARKET
by Renata Pitonakova
Abstract: The paper copes with trade specialisation of Slovakia on extra EU market. Revealed comparative advantages (RCA) were identified for good categories in 2009, 2013 and 2017. The results indicate stability of trade pattern and increase in the level of specialisation between 2013
Keywords: Export; Comparative advantage; SITC; Specialization.
Buying motives as demand factors for life insurances in emerging and developed markets: the case of Romania and Austria
by Vito Bobek, Katharina Radler, Romana Korez Vide, Tatjana Horvat
Abstract: This paper aims to explore buying motives as demand factors for life insurances and private pensions in emerging and developed markets, based on the comparative analysis of findings of surveys and interviews conducted in Romania and Austria.1 The comparative analysis between the quantitative research has shown that in Romania several more factors were influencing the steps between having no intention, the intention and the decision to buy a life insurance and private pension product than in Austria. However, trust in insurance companies and the central role of the sales agents have shown to be decisive for wanting to buy or having already acquired a life insurance in both countries. In Austria it is a personal choice, if the customer wants to invest in life insurance, in Romania, however, it is a challenge related to the regulatory and economic perspective of the country.
Keywords: Life insurances; demand factors; buying motives; emerging markets; Romania; Austria.
A New Approach on Effective Control regarding E-commerce Risks in Stock Exchange Market Focusing on Cloud Computing (A Caste Study: Tehran Stock Market)
by Seyedeh Hashemiyeh Mirrezaei
Abstract: Effective risk control is as significant as maximising the return of investment for investors; therefore, it is essential to examine patterns and tools of the effective risk control for investors. By using local and global optimisation algorithms, the approach minimises risk-based control patterns, draws and compares its performance boundaries. For this purpose, after testing the normal distribution of returns of selected companies, parametric nonlinear planning patterns are introduced for all three effective risk control models. Using optimisation algorithms and Matlab software, the optimisation function is based on fuzzy hierarchical analysis method, fuzzy DEA and an intelligent optimisation model in the cloud environment to do the comparison. For economic users of the stock exchange, the cloud environment was an unsafe media, and the cloud itself is considered a risk. The study findings show the fuzzy optimised model can better understand the cloud environment and the risks more effectively than other models.
Keywords: Effective Risk Control; Optimization of Risk Detection Methods; Fuzzy Analysis; Cloud Computing; stock exchange; computer networks; XenPump; economic users; business; employees; Skeptical.
Implications of KORUS on U.S. beef in South Korea
by ANDREW MUHAMMAD, Jada Thompson, Karen Delong
Abstract: We examined the competitiveness of US beef in South Korea and assessed how the US-Korea free trade agreement (KORUS) impacted preferences for imported beef products by exporting source (USA, Australia, and the rest of world). Since KORUS entered into force in 2012, US beef exports to Korea have increased 87% and the US is now the leading beef exporter to Korea. Overall, results indicated limited competition across exporting countries as evidenced by the insignificant cross-price estimates. However, we did find evidence of habit formation for US beef which indicates the success of KORUS for the US beef industry and underscores the critical desire to maintain this agreement. When examining how habit formation changed after the implementation of KORUS, we find clear evidence of an increase in preferences for US chilled beef in the South Korean market.
Keywords: Key words: beef; demand; KORUS; imports; Rotterdam model; South Korea; United States.
Foreign Direct Investment, Globalization Challenges and Economic Development: An African Sub-Regional Analysis.
by Folasade Adegboye, Romanus Osabohien, Felicia Olokoyo, Oluwatoyin Matthew
Abstract: Foreign direct investment (FDI) inflow is a global phenomenon for Africa and developing economies alike. It is expected that globalisation would foster inflow of foreign capital, technology transfer and consequently economic development. This study aimed at examining the effect of FDI on economic development for developing economies in the SSA sub-region. The study used pooled data for 39 SSA countries for the period within years 2000 and 2018. The analysis method used for the examination was the fixed effect least square dummy variable regression model. The study found that FDI is tangibly significant in relation to economic development for SSA sub-region that depended less on it. The study recommends that, the government of SSA subregion should consider the extent to which they would exploit existing opportunities that globalisation affords vis-
Keywords: FDI; Foreign Direct Investment; Globalization; Economic Development; African Sub-regions; Econometric Analysis; SSA; Sub-Sahara Africa.
The Key Metrics of Traditional Market Revitalization from Tenants Perspective
by Dini Turipanam Alamanda, Ikeu Kania, Fajar S. A. Prabowo, Abdullah Ramdhani, R.R. Karina Fitria
Abstract: The revitalisation of traditional markets in the city of Bandung have long drawn the attention of the municipal government. Since the party defines the existence of traditional markets, the satisfaction of traditional market tenants should be a key performance metric that is used to guide the efforts and measure the success of revitalisation. Surprisingly, studies that investigate factors of tenant satisfaction are scarce; therefore, this study aims to contribute to closing that gap. An exploratory design is used as the method of this study. The factors that contribute to tenant satisfaction are found to be traditional market governance, service and facilities quality and environmental management. Interestingly, market governance is found to contribute the most to tenant satisfaction. These findings show that evaluating current market governance practices must be the first step in improving the competitiveness of traditional markets in Bandung.
Keywords: Tenant Satisfaction; Traditional Market; Traditional Market Revitalization; Exploratory Factor Analysis.
BOARD CHARACTERISTICS AND ENVIRONMENTAL PERFORMANCE IN INDONESIAN FAMILY BUSINESS
by Tri Damayanti, Haninun Haninun, Aminah Aminah, Lindrianasari Amsir, Nurdiawansyah Nurdiawansyah
Abstract: This study investigates the impact of board characteristics on environmental performance in listed Indonesian family companies. We analysed 130 listed family firms using unbalanced panel method. Results reveal that board characteristics do not affect environmental performance, i.e., agency problem II. Environmental performance is a strategic non-financial issue, and it has several consequences, including external stakeholders and costs. Environmental performance is also not influenced by family ownership. This finding is important in the international market because many Indonesian family businesses deal with several foreign investors and international business.
Keywords: environmental strategy; management family decision and incentives; family coalition.
PERFORMANCE IMPROVEMENT STRATEGIES BASED ON BALANCED SCORECARD FOR RURAL COOPERATIVE: THE CASE OF INDONESIA
by Mohamad Harisudin, R. Kunto Adi, Noor Anita Kusuma Pratama
Abstract: This study is intended to identify the problems affecting the cooperative performance, and ultimately to formulate an applicable strategic plan to improve the cooperative performance. The results show that: (1) The cooperative performance is considered good from financial perspective, poor from customers perspective, good from internal business processes perspective, and decent from learning and growth perspective. (2) The issues affecting the cooperative performance are: lack of employees discipline due to the absence of attendance management system, large number of competitors, low capability of employees, declining number of members, many passive members, lack of members loyalty, and untimely payment from partner companies for dairy sales. (3) The applicable strategies to improve the cooperative performance are: applying appropriate attendance management system, applying innovations in cooperative business, and improving employee productivity in generating income for village unit cooperative.
Keywords: Balanced Scorecard; Performance; Cooperative.
Exchange rate movements and aggregate output: The case of China
by Yu Hsing
Abstract: Applying an extended IS-MP-AS model (Romer, 2000), this paper finds that real GDP in China has a positive relationship with real depreciation during 1990
Keywords: Currency depreciation or appreciation; deficit spending; stock prices; world interest rates; oil prices.
The Nominal Devaluation and Real Devaluation: the case of Algeria
by Bilal Boubellouta, Lian An
Abstract: This paper explores the relationship between nominal and real effective exchange rates (REERs) using time series data over the period 1994
Keywords: Devaluation; ARDL bounds testing; Error Correction Method; Cointegration; Algeria.
Examining Trading Strategies Using Trend Following Indicators for Indonesian Stock Market
by Felizia Arni Rudiawarni, Dedhy Sulistiawan, Yie Ke Feliana
Abstract: This study aims to examine the reliability of the technical analysis (TA) approach in Indonesian stock exchanges, specifically moving-average trading rule to determine buy/sell signals. Using ten-year data from 2008
Keywords: technical analysis; exponential moving average; trend following indicator; trading strategy.
The moderating role of ASEAN-Korea FTA on the relationship between trade and South Korean outward FDI
by Sun-Hwa Park, Hyun-Jung Nam, Jeong-Yeol Park, Suk-Jun Lim
Abstract: This study examines the determinants of outward Korean foreign direct investment (FDI) in ASEAN countries and the moderating role of the ASEAN
Keywords: Foreign Direct Investment; ASEAN-Korea Free Trade Agreement; Generalized Least Squares.
The Effect of Digital Financial Innovation on Structural Transformation and the Labour Market
by Fabio Monteforte, Michele Limosani, Fabrizio Lanzafame
Abstract: This paper focuses on the possible impact of more efficient credit allocation on a countrys processes of structural transformation. We develop a dynamic version of a small-scale general equilibrium model for a dual economy, in which labour reallocation is accompanied by involuntary unemployment in the modern sector, whose degree of financial efficiency varies over time. Counterfactual simulations indicate that structural transformation is faster in economies with greater financial efficiency, because the incentives for intersectoral migration are greater. That is, from the very outset of the transition the expected utility of working in the modern sector is greater. In our simulations, the greater flow of labour does not translate into higher unemployment rates.
Keywords: Structural change; financial efficiency; efficiency wages; digital economy.
East African trade agreement and continental economic integration: prospects and constraints for economic development
by Romanus Osabohien, Oluwatoyin Matthew, Abigail Godwin, Victoria Okafor, Busayo Aderounmu
Abstract: This study employed a panel data analysis from selected East African countries, with the use of fixed and random effects model which was tested using Hausman specification test. The results from the study showed that; trade agreement and foreign direct investment (FDI) have a significant positive effect on East African economy, while trade openness exerts a negative effect as a result of low productivity. Therefore, the study recommended that the government of East African countries should embrace and develop policies in promoting the continental trade agreement and economic integration, in order to raise the level of productivity within the region and the sub-region for sustainable economic development.
Keywords: East African Community; Economic Integration; Trade Agreement.