Vol 27 (S1), 2021

September 5, 2021

Regular Articles

Cover Page Vol 27 (S1)
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The Effects of Generational Involvement as Moderator Between Clan Culture and Entrepreneurship Orientation in Universitas Ciputra Family Business
Felicia Bella Kurniawan, Teddy Saputra, Vincent Kargono, Universitas Ciputra Surabaya
Page 1-24   |      Download PDF   |   ABSTRACT PREVIEW


This research aims to observe the influence of generational involvement in clan culture and entrepreneurial relationships in family businesses. This research employed the quantitative approach by gathering the primary data using a questionnaire. The respondents of this research are the members of the Universitas Ciputra Family Business class 9 consisting of 115 family businesses, and non-probability sampling was used. The gathered data were then analysed using hierarchical regression analysis to observe the influence of generational involvement moderation in clan culture and entrepreneurial orientation relationship, in addition to implementing F-test and t-test to discover the significance of the dependent and independent variables. The results showed that clan culture had a positive significance over entrepreneurial orientation when only 1 generation was involved in the company, while the greater number of generations involved in the company could weaken the clan culture and entrepreneurial orientation relationship. The implementation of a clan culture in a company has a positive impact when only one generation is participating in the company. Therefore, family companies must consider the number of generations that participate in the company before determining the type of corporate organizational culture to improve the entrepreneurial orientation of the company. 

Clan culture, Entrepreneurial orientation, Family business, Generational involvement, Organizational culture

Profitability and Efficiency Analysis on Automotive and Component Industry in Indonesia
Riandy Yeremia Pakpahan, Purwanto, President University
Page 25-53   |      Download PDF   |   ABSTRACT PREVIEW


This study aims to analyse the determining factors of profitability and efficiency in automotive and component companies in Indonesia from 2010 to 2019. The research data were taken from the financial statements of seven selected sample companies on the Indonesian Stock Exchange. The method employed was a quantitative approach, including multiple regression analysis and Data Envelopment Analysis, using tools like EViews and MaxDEA. The results showed that the current ratio, accounts receivable turnover, inventory turnover, and working capital had a positive effect on return on assets. On the other hand, the debt-to-equity ratio and firm size had a negative effect. The coefficient of determination showed that the independent variable had a significant effect on profitability by 53.00%. The ratio of debt to equity accounts receivable turnover, inventory turnover, and firm size had a significant effect on profitability. On the other hand, the current ratio and working capital turnover had no significant effect. The debt-to-equity ratio is the most influential variable on return on assets compared to other independent variables. Based on the results of technical efficiency, only one company was able to achieve full efficiency in ten years. The average overall score of technical efficiency in all samples over the ten years was 75.3%, and there is still an increase in efficiency of 24.7%. The implications of these results can be used by investors and automotive companies to evaluate company performance. 

Determinant factors, Efficiency, Firm size, Return on assets

The Effect of Emotional Exhaustion Towards Job Performance
Suresh Kumar, Selena Shazania, President University
Page 54-72   |      Download PDF   |   ABSTRACT PREVIEW


There are various things which could be a stressor to employees nowadays. It is crucial to identify these stressors as work stress will continue to influence organisational performance significantly. This study applied a quantitative approach. This study examines the influence of work-family conflict (WFC) and family-work conflict (FWC) on employees’ emotional exhaustion and the interaction between employees’ emotional exhaustion and work performance. To accomplish this purpose, data (N = 320) were obtained manually from employees working at PT.AK, located in Purwokerto, Indonesia. Empirical results indicated that WFC and FWC significantly affected employees’ emotional exhaustion. The findings showed that there was a significant correlation between emotional exhaustion and employee performance. The authors used SPSS 24 to assess the data’s validity and reliability and validate the significant hypothesis by using AMOS 24. However, marital status, cultural origin, gender, working time and job category are several interesting variables to be explored for further study. There was a significant relationship between WFC and FWC with emotional exhaustion, consequently influencing employees’ job performance. The results of this study are a warning to the company’s employers to tackle these issues to improve the performance of their organisation. They should engage more in family-friendly policies such as working hours, family support or other family-friendly policies which could benefit both parties. 

Family-work conflict, Work-family conflict, Emotional exhaustion, Job performance

Family Entrepreneurship in Ornamental Plants During Covid-19 Outbreak
Eddy Soeryanto Soegoto, Senny Luckyardi, Dina Oktafiani, Universitas Komputer Indonesia
Page 73-94   |      Download PDF   |   ABSTRACT PREVIEW


This study aims to analyse business conditions in the ornamental plants managed by family entrepreneurs during the Covid-19 outbreak. A case study was conducted in Cihideung Village, West Java Province, the centre of ornamental plants business. This research used a descriptive qualitative on SWOT analysis. Observation and interviews were used as the primary data collection techniques while literature review was used as the secondary data collection. SWOT analysis was used to identify the problem by systematically identifying various factors to formulate a business strategy (SO, ST, WO and WT strategies). The sampling method was done by purposive sampling as one of the non-randomized methods. The respondents were ten families who are running the ornamental plants business. The primary data were obtained by interviewing the respondents and observing them directly at the research site. The results of this study indicated that family entrepreneurship in ornamental plants could survive during the Covid-19 outbreak. Even some of them experienced an increase in income. It is closely related to the people’s green lifestyle during the pandemic since the current condition creates the awareness to maintain the balance of nature. In conclusion, family entrepreneurs can survive if they implement right strategies by expanding distribution network, maintaining quality, creating better management and technology utilisation. 

Family entrepreneurship, Ornamental plants, Covid-19 outbreak

Heuristic Decision Making: Answers or Bonkers (Analysis in Construction Project)
Jean Richard Jokhu, President University
Rofikoh Rokhim, Universitas Indonesia

Page 95-112   |      Download PDF   |   ABSTRACT PREVIEW


This study mainly focused on introducing a heuristic decision-making process as a central process in project-based firms in a developing country. This research shed light on a project-based firm from an underdeveloped region with a different decision processing method. In the construction industry, competition is decided since they choose the project. Therefore, this study used small and medium-sized enterprises (SMEs) in the construction industry as a unit analysis to investigate how firm and government institutions can affect project performance chosen by the heuristic decision-making process. The data was collected from 129 project-based SMEs in Indonesia and the structured equation modelling from LISREL was used to analyse the data. The results showed a significant relationship between a firm with a heuristic decision-making process and a firm toward project performance. 

Heuristic, Firm resource, Government regulation, Project quality

Supplier Selection Using The Analytical Hierarchy Process Method
Adi Saptari, Supratman, Neva Permatasari Sutedjo, President University
Effendi Mohamad, Universiti Teknikal Malaysia

Page 113-130 |      Download PDF   |   ABSTRACT PREVIEW


This research was conducted at one of the companies that produces special purpose machinery. The company had problems in the procurement department which supplies raw materials and electrical parts. From the data on the delivery of purchased electrical parts in 2018, there a delay in delivery occurred between a week to 10 working days or eight per cent of the total 125 purchased orders issued, resulting in the disruption of the assembly process and delays in delivery to customers. The company has three suppliers of electrical parts, namely PT.NE, PT.SA and PT.MSI. Due to the importance of the problem, the company needs to evaluate and determine which supplier has the highest performance in terms of quality, price, delivery, flexibility and services; so that the company can prioritize the supplier in fulfilling the required purchase order for electrical parts. This study aimed to select the best supplier using the Analytical Hierarchy Process (AHP) method. This method is required to determine the criteria, sub-criteria and the weight of each criterion. The results showed that there were five criteria and ten subcriteria considered in determining the suppliers. From the analysis using this method, the value obtained for the supplier of PT.NE was 0.451, PT.SA was 0.192 and PT.MSI was 0.357. It was concluded that the best performance supplier is PT.NE. This study has presented the importance of consensus in the teamwork that determines the result of the study. 

AHP, Criteria and sub-criteria, Decision making, Supplier

Factors Influencing Consumer Purchasing Behaviour Towards Online Food Delivery Services
Zuroni Md Jusoh, Sustainable Consumption Research Centre of Excellence
Nurnazrenatasah Rahiman, Universiti Putra Malaysia

Page 131-146   |      Download PDF   |   ABSTRACT PREVIEW


This research aims to identify factors influencing consumer purchasing behaviour towards online food delivery services. A total of 384 respondents from different zones in Peninsular Malaysia known as Southern Zone (Johor Bharu), Northern Zone (Pulau Pinang), Central Zone (Shah Alam) and Eastern Zone (Kuala Terengganu) were involved in this research—selected through multistage random sampling, simple random sampling for randomly selecting every state, cluster sampling for only focusing on the urban area, and convenient sampling focusing on the selected community. The data were collected through a questionnaire, and the results showed that consumer behaviour on purchasing online food delivery services was at a positive level. Multiple linear regression analysis found that the Adjusted !2 = 0.624 showed that taken as a set, the predictor factors of income, convenience, trustworthiness, various food choice, attitude, and intention for a 62.4 per cent variance of behaviour. The most significant predictor factors were attitude (Beta = 0.052) followed by intention (Beta = 0.050) and trustworthiness (Beta = 0.050). This research proved that Malaysia has a rapid growth of the online business that has strengthened the food industry. For future research, this study can be expanded to all states in Malaysia, including East Malaysia (Sabah & Sarawak), to form a larger sample size representing the whole of Malaysia, avoiding bias and increasing consumer behaviour research. 

Income, Trustworthiness, Attitude, Intention, Behaviour

The Predictors of Cybersecurity Behavior in E-Hailing Services: The Mediating Role of Perceived Threat
Nik Kamariah Nik Mat, Yaty Sulaiman, Selvan Perumal, Wahida Ghazi, Universiti Utara Malaysia
Page 147- 161   |      Download PDF   |   ABSTRACT PREVIEW


E-hailing services have been on the rise since the advent of smartphones in 2009. It started with Uber services, which led to other e-hailing services in Malaysia, like Grabcar, Mycar and others. Despite the mounting popularity of e-hailing, its services are not without complaints or tragic occurrences. There have been cases reported of harassment, rape and even murder of passengers. Hence, the purpose of this study examines the predictors of e-hailing services with special attention to the mediating role of perceived threat. The study employed the quantitative research approach, where a questionnaire consisting of a total of 46 items was developed. A total of 400 responses were collected from the distribution of 400 questionnaires, representing a response rate of 58.75 per cent. The data was analysed using Structural-Equation Modelling (SEM) through the SmartPLS software. The finding shows that perceived threat is a significant direct predictor of cybersecurity behavior, while perceived vulnerability, perceived benefit and self-efficacy are direct predictors of the perceived threat and indirect significant predictors of cybersecurity, mediated by a perceived threat. Government policy has no significant direct or indirect impact on cybersecurity behavior. The findings imply that while e-hailing services have their benefits, customers need to be alert and vigilant at all times due to the vulnerability and threats that may come with their usage. 

E-hailing, Cybersecurity behavior, Perceived vulnerability, Government policy, Perceived benefit

An Exploratory Study on Money Attitudes and Life Satisfaction among Malaysian Adolescents
Soo-Cheng Chuah, Nurul Ainun Ahmad Atory, Afiza Azura Mohamad Arshad, Zarina Binti Denan, Azitadoly Mohd Ariffin, Universiti Teknologi MARA
Page 162-176   |      Download PDF   |   ABSTRACT PREVIEW


Individual’s attitudes towards money are developed through the socialisation process in the growing process. Money attitudes may reflect an individual’s perception towards life satisfaction (LS). This study explores the association between money attitudes and LS among Malaysian adolescents. This study examines the relationship of the six dimensions of money attitudes and LS. The six dimensions of money attitudes are anxiety, power/prestige, retention, distrust, entitlement, and conscientiousness. By applying a purposive sampling method, a sample of 399 secondary school students aged between 13 and 19 in the Klang Valley was collected. Using the structural equation modeling, PLS-SEM, the study found that the adolescents’ LS was related to money attitudes. The money attitudes dimensions of retention, distrust, and conscientiousness were found to be significantly positively related with LS, while the dimensions of anxiety, entitlement, and power were negatively related with LS. The findings suggest that putting less value on the importance of money may effectively improve LS. 

Money attitudes, Life satisfaction, Adolescents

Sale By Description in Today’s Online Contracts: Issues and Challenges
Farhanin Abdullah Asuhaimi, Zuhairah Arif Abd Ghadas, Nazli Ismail @ Nawang, Norhasliza Ghapa, University Sultan Zainal Abidin
Page 177-1
90   |      Download PDF   |   ABSTRACT PREVIEW


Nowadays, many consumers opt to buy their necessary goods using online platforms rather than face-to-face method. The trend even becomes higher during the Covid-19 pandemic when the citizen’s movement is restricted with the enforcement of the Movement Control Order. Thus, products in online platforms need to be given a clear and detailed description to help consumers buy the product with confidence. This paper highlights the principles of sale by description in SOGA and the consequences of the breach based on a systematic literature review as well as investigates the application of sale by description in online platforms using the method of content analysis. As the doctrine of caveat emptor is the underlying principle in the law of contract, this paper concludes with some tips in buying online and suggestion for online platforms to ensure that the practice is in line with the current law in Malaysia. 

Consumer, Online contract, Sale by description, Sale of goods

Mediation Effect of Financial Behaviour on Financial Vulnerability among B40 Households
Amirah Shazana Magli, Mohamad Fazli Sabri, Husniyah Abdul Rahim, Mohd Amim Othman, University Putra Malaysia
Nurul Shahnaz Ahmad Mahzan, Nurulhuda Mohd Satar, Roza Hazli Zakaria, Universiti Malaya
Hawati Janor, Universiti Kebangsaan Malaysia

Page 191- 217
  |      Download PDF   |   ABSTRACT PREVIEW


Economic disadvantage tends to affect vulnerable groups among poor individuals, especially those working in the lower-income distribution sectors. Most B40 households will be much affected since they are vulnerable and can easily experience shock due to their low income. This research aims to assess the mediating effects of financial behaviour of 428 respondents from B40 households in Selangor districts on financial vulnerability using a nonprobability sampling (purposive stratified sample). Regression analyses were performed using SPSS Version 26.0 to determine the influential factors and the mediating effect of financial behaviour. The financial vulnerability models’ fitness was indicated in the moderate R squares of 0.290 and 0.327, where the model explains 29.0 per cent and 32.7 per cent of the variances in financial vulnerability. Financial vulnerability was explained by the models’ factors comprising of financial literacy, financial stress, and internal locus of control in the first model as well as financial behaviour in the second model. Both models without (F = 27.6444; p = .000) and with the financial behaviour variable (F = 22.565; p = .000) were valid models based on the ANOVA output. Financial stress has a positive impact on financial vulnerability whereas internal locus of control and financial literacy have a negative influence on financial vulnerability. Financial behaviour was found to have full mediation only towards the influence of internal locus of control on financial vulnerability. Those who are considered internals have to do proper financial activities to become less financially vulnerable. Hence, doing financial activities are important for these internals in managing their financial situation. In order to help households improve their financial management, responsible practices such as good use of consumer loans, restructuring of debt, financial education, and debt consultation services should be strengthened. 

B40 household, Financial behaviour, Financial technology, Financial vulnerability, Locus of control

The Sequential Mediation in Online Repatronage Intention Model for Shariah Hotels among Muslim Customers in Malaysia
Yaty Sulaiman, Maria Abdul Rahman, Nik Kamariah Nik Mat, Universiti Utara Malaysia
Rusnifaezah Musa, AIMST University

Page 218-236   |      Download PDF   |   ABSTRACT PREVIEW


Malaysia has taken an initiative to become an Islamic hub by introducing Islamic hotels. Islamic hotels cater according to Islamic practices for more than a billion Muslims. Only 10 percent out of 5520 hotels comply with Shariah requirements. This shows that knowledge of Shariah compliant hotel is needed. Currently, a comprehensive standardisation does not exist. Hotel operators are operating with their own compliant strategies. This research aims to provide an authentication of a Shariah compliant hotel. A self administered online survey was done to obtain the responses. A total of 395 data was cleaned from missing cases and outliers. The indicator reliability, internal consistency reliability, convergent validity, and discriminant validity were used to analyse the model adapted, and the structural model used the bootstrapping method via SmartPLS version 3.2.9. The findings revealed that the desire to stay and the Shariah compliant attributes (SCA) were significant towards the online repatronage intention among Muslim customers of Shariah compliant hotels. The findings postulated that the significant relationship of the sequential path is only for hotel image to service quality to Shariah compliant attributes, and towards the overall satisfaction. 

Desire to stay, Hotel image, Online repatronage intention, Overall satisfaction, Service quality, Shariah compliant attributes