Aang Curatman, Agus Suroso and Suliyanto Suliyanto
The purpose of this study is to determine the direct effect of a loyalty program on program loyalty and store loyalty and to determine the role of communication effectiveness as a…
Abstract
Purpose
The purpose of this study is to determine the direct effect of a loyalty program on program loyalty and store loyalty and to determine the role of communication effectiveness as a mediating variable in moving customers from program loyalty to store loyalty in the context of micro, small and medium enterprises (MSMEs).
Design/methodology/approach
Respondents of this study were 100 customers of the MSMEs that sell Batik products in Cirebon, Indonesia who were selected by the purposive sampling method. This study focuses on primary data collected through a structured questionnaire. Data were analyzed using SmartPLS 3.0 to determine the causality relationship between variables and to test the communication effectiveness as a mediating variable.
Findings
The results of this study indicate that the loyalty program has a significant effect on program loyalty; program loyalty has a significant effect on store loyalty and communication effectiveness, and communication effectiveness has a significant effect on store loyalty. Other results indicate that communication effectiveness partially mediates the relationship between program loyalty and store loyalty.
Research limitations/implications
Despite the significant implications, this study has four limitations. First, the research results cannot conclude the store in general because the sampling of this study is limited to MSMEs only. Future research is needed to explore more deeply to compare store loyalty to MSMEs and non-MSMEs. Second, this research is only aimed at MSMEs that have loyalty programs. Future research can be carried out by comparing MSMEs that have loyalty programs and MSMEs without loyalty programs. Third, this study only uses two independent variables and one mediating variable. As is well known, there are many other variables that are antecedents of store loyalty. Future research needs to be done to explore the effect of other variables (mediating and moderating) on store loyalty, such as service quality, company image and customer satisfaction. Fourth, the research sample is only 100 respondents. Future research should use a larger sample as this research is customer-based.
Practical implications
This study has a significant impact on MSMEs management by providing strategies that can increase and retain customers who have high store loyalty. MSMEs need to design loyalty programs to influence customer perceptions of status, buying habits and relationships with companies. If a customer associates a high value with loyalty program membership, the customer is more likely to find the communication relevant and credible, leading to effective communication that can increase store loyalty.
Social implications
This study provides real strategies and opportunities for MSMEs to develop so that they can survive or compete with similar companies. It is hoped that MSMEs will be able to absorb more labor so that it can increase the contribution of MSMEs to the national economy.
Originality/value
This study addresses the inconsistency of various results from previous studies regarding the relationship between program loyalty, loyalty programs, communication effectiveness and store loyalty, both directly and indirectly. In addition, several studies have been carried out in large corporate contexts. However, according to the authors’ knowledge, this research is for the first time being conducted in the context of MSMEs.
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Jing-Wen Huang and Yong-Hui Li
Learning orientation is critical in new product development. However, research has disregarded how learning orientation operates via the potential mediator to influence new…
Abstract
Purpose
Learning orientation is critical in new product development. However, research has disregarded how learning orientation operates via the potential mediator to influence new product performance. The purpose of this study is to examine the mediating role of ambidextrous capability in the relationship between learning orientation and new product performance.
Design/methodology/approach
The empirical study uses a questionnaire approach designed to collect data for testing research hypotheses. This study tests the hypotheses using structural equation model in a sample of 336 firms in Taiwan.
Findings
The findings indicate that learning orientation relates positively to ambidextrous capability and new product performance. Ambidextrous capability, in turn, relates positively to new product performance. The results also support the argument that ambidextrous capability plays a mediating role in learning orientation and new product performance.
Originality/value
The value of this study is to identify ambidextrous capability as the potential mediator in the relationship between learning orientation and new product performance. The results enrich the understanding of learning orientation in new product project teams and suggest important implications for new product development and future research.
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Yudha Dwi Nugraha, Suliyanto, Rezi Muhamad Taufik Permana, Azib and Deno Hadiarti
The purpose of this study is to investigate the impulsive purchase of Generation Z of Muslim women on TikTok Shop. The primary attention in this stimulation investigation drives…
Abstract
Purpose
The purpose of this study is to investigate the impulsive purchase of Generation Z of Muslim women on TikTok Shop. The primary attention in this stimulation investigation drives the impulsive buying between the Generation Z of Muslim women customers in Indonesia. This study provides valuable concept to help a company or cosmetic brand grow the marketing strategy for stimulating impulsive behaviour of Generation Z customers on TikTok Shop.
Design/methodology/approach
An online survey of 256 Muslim women consumers of the Generation Z was used to collect the data. Covariance-based structural equation modelling was applied to assess the five hypotheses.
Findings
The results of this study indicate that micro-celebrities post authenticity has a positive and significant relationship with utilitarian browsing. However, micro-celebrities post authenticity did not have a positive and significant relationship with hedonic browsing. This study also concludes that utilitarian browsing was found to have a positive and significant relationship with hedonic browsing. Finally, hedonic browsing was found to have a positive and significant effect on reminiscence impulse purchase intention and designed impulse purchase intention.
Research limitations/implications
The primary limitation is the research sample that only consists of Indonesian TikTok Shop customers. Next, the researchers could examine the research model in several countries to expand its generalisation. The second one, this research does not consider the origin country of a cosmetic product. The future study must investigate the local and foreign cosmetics to see the preference and the differences in the impulsive purchase, especially for Z women generation customer. Third, this study quantifies the intention to buy impulsively so that the following research must investigate the ownership of the cosmetics product that has been bought before. Finally, the research only involves a quantitative research method. The future study must investigate with another approach, such as a qualitative method or mixed-method, in the impulsive purchase intention context.
Practical implications
A cosmetic company or marketer could maximise the authenticity, relevancy and attractive information that is posted by micro media social celebrities or media social influencers. Cosmetic companies or marketers must provide comprehensive information to satisfy customers’ browsing actions. Finally, besides the information related to the limited cosmetics product stock, discount and promotion as the effective strategy to stimulate the impulsive buying, the cosmetics marketing can use gamification, increasing the picture quality and equipping product descriptions, and making educational content.
Social implications
The existence of TikTok Shop is increasing the number of cosmetics products and competitors because of product’s excessive availability in the market. In the social benefit context, the Generation Z Muslim women can purchase and use various cosmetics product available on TikTok Shop, but customers must be on guard by knowing the cosmetics material to prevent the healthiness. In addition, the existence of TikTok Shop and the impulsive purchases by the Generation Z Muslim women are also increasing the retailer or local cosmetics producer income.
Originality/value
This study is a contribution to consumer behaviour literature by raising the Stimulus–Organism–Response framework used in determining the factors influencing browsing and impulsive consumption of cosmetic products on TikTok Shop.
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Sik Sumaedi, Gede Mahatma Yuda Bakti and Nur Metasari
This paper aims to identify: university students' perceived service quality dimensions; the dimensions contributing most towards overall students' perceived service quality; and…
Abstract
Purpose
This paper aims to identify: university students' perceived service quality dimensions; the dimensions contributing most towards overall students' perceived service quality; and whether there is a difference in perceived quality level of each dimension based on students' year of study and gender in the context of undergraduate students of state universities in Indonesia.
Design/methodology/approach
The study uses a quantitative approach through a survey method. The respondents of this study are 155 state university students from two state universities in Indonesia. Both multiple regression analysis and t‐test analysis are used to analyze the data.
Findings
Research results show that there are seven perceived service quality dimensions considered important to university students, i.e. curriculum, facilities, contact personnel, social activities, education counselors, assessment, and instruction medium. The perceived service quality dimensions contributing most towards overall perceived service quality of a state university is facilities. Furthermore, the research also shows that university students with a different study period have a different perceived quality level on the social activities dimension, while university students with different gender have a different perceived quality level on two dimensions, i.e. social activities and facilities.
Research limitations/implications
The research was only conducted at two universities in the same geographic area and at a single point of time. Hence, there is a need for further research in terms of a longitudinal study with different geographic samples in order to generalize the research result.
Practical implications
The students' perceived quality dimensions resulting from this research can be used by universities to measure their performance according to students' perspectives. As a result, feedback will be gained by the university, so that the university can identify its weaknesses.
Originality/value
The research was conducted in a developing country context, while most previous research has been conducted in developed country contexts. This research also provides a new insight into quality management, since the university objects are state universities, not private universities. The paper also takes students' personal characteristics (gender and year of study) variables into account.
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Erny Rachmawati, Suliyanto and Agus Suroso
The purpose of this study is to determine the relationship between product knowledge and product involvement with purchase decision-making. In addition, this study also determines…
Abstract
Purpose
The purpose of this study is to determine the relationship between product knowledge and product involvement with purchase decision-making. In addition, this study also determines the role of halal brand awareness as a moderating variable in influencing the relationship between product knowledge and product involvement with purchase decision-making.
Design/methodology/approach
Five major cities in Indonesia were chosen as study locations because they are student cities, and also cities with more population and more famous in Indonesia, so the sample is more heterogeneous. A total of 500 questionnaires were distributed using a convenience sampling method with an effective rate of 93%. Hypotheses are tested by structural equation modeling procedures using analysis of moment structure 22.0.
Findings
The empirical results suggest that product knowledge and product involvement have a positive and significant effect on consumer purchase decision-making; halal brand awareness is a moderating variable in the relationship between product knowledge and product involvement with purchase decision-making.
Research limitations/implications
This study adopts convenience sampling with the sampling area restricted in five cities, so it may not be suitable to be concluded as a consumer in general. This study only conducts research on halal food products in general. Future research may choose to use one brand of halal food product or compare several other halal food product brands. The results of the study support that the heterogeneity of respondents (age, education, gender and religion) has always been an important component in the study of consumption behavior. So that future research can examine the effect of different characteristics of respondents on the relationship between product knowledge, product involvement, halal brand awareness and purchase decisions.
Practical implications
The findings have significant implications that can help producers to develop strategies suitable for halal brand awareness and heighten the decision to purchase halal products by consumers in both Muslim and non-Muslim countries. So that the branding of halal products can enable businesses to access new markets for non-Muslim consumers in both Muslim and non-Muslim countries, so as to increase producer profitability by selling products at higher prices thereby providing higher profit margins.
Originality/value
In accordance with the author’s knowledge, this study is the first study to examine the moderator role of halal brand awareness variables in the relationship of product knowledge and product involvement with purchase decision-making.
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Erny Rachmawati, Suliyanto and Agus Suroso
This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a…
Abstract
Purpose
This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.
Design/methodology/approach
A total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.
Findings
The results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.
Research limitations/implications
The results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.
Practical implications
This finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.
Social implications
Research findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.
Originality/value
The results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.
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Hanieh Khodaei, Victor Scholten, Emiel Wubben and Onno Omta
Recent studies have questioned the direct relationship between entrepreneurial orientation (EO) and firm performance (e.g., Rauch, Wiklund, Lumpkin, & Frese, 2009; Wales, Gupta, &…
Abstract
Recent studies have questioned the direct relationship between entrepreneurial orientation (EO) and firm performance (e.g., Rauch, Wiklund, Lumpkin, & Frese, 2009; Wales, Gupta, & Mousa, 2013). Following this stream of research, this study examines this relationship by identifying the intermediate steps between these two variables (Alegre & Chiva, 2013; Wales, 2016; Zahra, Sapienza, & Davidsson, 2006). EO is considered essential for new market entry and new business foundation, which is why this study focuses on startups. Startups search for viable business opportunities, and this search is highly dependent on organizational learning (Kreiser, 2011). Previous studies suggest that organizational learning mediates the relationship between EO and performance (e.g., Real, Roldan, & Leal, 2014; Wang, 2008). This study investigates the role of organizational learning in this relationship by analyzing how EO and absorptive capacity (AC) interact. We propose a more direct and fine-grained measure of entrepreneurial success by developing a conceptual model that includes opportunity identification as an early outcome measure for startups. Drawing on a sample of 95 academic spin-offs in the Netherlands, this study examines the mediating role of AC and market readiness in the relationship between EO and market opportunities. The findings indicate that AC and market readiness mediate the direct effect of EO on market opportunity identification. By using opportunity identification as an outcome measure for EO, this study adopts a more direct measure for firm performance, resonating with recent discussions on the main effect of EO for organizations. These findings suggest that academic spin-offs’ AC leads entrepreneurial efforts to achieve a better product-market fit, and in return, helps to identify more market opportunities.
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The purpose of this paper is to examine the mediating effect of product innovation on the relation between the knowledge management and competitive advantage. To analyze the…
Abstract
Purpose
The purpose of this paper is to examine the mediating effect of product innovation on the relation between the knowledge management and competitive advantage. To analyze the effect of knowledge management on innovation, the effect of knowledge management on competitive advantage and the effect of innovation on competitive advantage in small and medium enterprises in food products are taken into account.
Design/methodology/approach
The approach used in this study was quantitative approach. The population in this study was all the small and medium entrepreneurs of typical food products of Riau and Central Java Indonesia, which consisted of 238 business units: secondary data of Industry, Trade and Cooperative Service and SME Riau and Central Java Province at 2016. The data analysis method was structural equation modeling, using three measurement models (reflection of three research variables, equivalent to the first-order factor analysis).
Findings
Product innovation mediated the effect of knowledge management on the competitive advantage. It indicated that the higher the knowledge management, the higher the competitive advantage would be, if mediated by higher product innovation. The test results showed that knowledge management had positive and significant effect on product innovation. The positive effect showed that the better the knowledge management by the entrepreneurs of small and medium enterprises of typical food products of Riau, the better is the product innovation and vice versa.
Originality/value
This paper examines the mediating effects (using Sobel test) of product innovation on the relation between knowledge management and competitive advantage (no previous research on this relation), and the study is conducted on SMEs in Indonesia, especially in Riau and Central Java provinces. Previous studies on knowledge management and other factors affecting competitive advantage are also mostly performed on smaller samples, that is in one work unit or department. Although the variables were the same, this study was conducted on different sample units.
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This study collected perceptual data from 162 manufacturing managers to assess whether their perception of organizational learning is related to firm profitability or whether the…
Abstract
This study collected perceptual data from 162 manufacturing managers to assess whether their perception of organizational learning is related to firm profitability or whether the relationship is indirect through firms’ competitive advantage (quality improvement, cost improvement, cycle-time improvement). The results indicate that managers perceive that organizational learning is significantly related to competitive advantage that, in turn, is positively related to profitability. The results also indicate that the relation between organizational learning and profitability is fully mediated by firm competitive advantage.
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Ra’ed Masa’deh, Jawaher Al-Henzab, Ali Tarhini and Bader Yousef Obeidat
The purpose of this paper is to explore the relationship between three variables of strategic orientation (market orientation, technology orientation entrepreneurial orientation…
Abstract
Purpose
The purpose of this paper is to explore the relationship between three variables of strategic orientation (market orientation, technology orientation entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.
Design/methodology/approach
This study employed a quantitative research design where 252 questionnaires were collected form respondents operating in various pharmaceutical companies in Jordan to obtain necessary data to test the hypotheses developed for the study. Multiple regressions were used to analyze the research data.
Findings
The results of the analysis revealed that strategic orientations were positively and significantly related to organizational performance. The findings also showed that market orientation contributed the most to the enhancement of organizational development followed by technology orientation and finally entrepreneurship orientation.
Practical implications
These findings contribute to the understanding of the importance of employing multiple strategic orientations in order to enhance organizational performance, particularly in pharmaceutical companies
Originality/value
This is the first study which adequately covers the relationship between three variables of strategic orientation (market orientation, technology orientation, entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.