Maman Setiawan, Nury Effendi, Ratni Heliati and Alfi Syahrin Ario Waskito
The purpose of this paper is to investigate the technical efficiency (TE) of micro and small enterprises (MSEs) and its determinants in the Indonesian manufacturing sector…
Abstract
Purpose
The purpose of this paper is to investigate the technical efficiency (TE) of micro and small enterprises (MSEs) and its determinants in the Indonesian manufacturing sector covering comprehensive subsectors.
Design/methodology/approach
This research uses the data from the micro and small industry survey sourced from the Indonesian Bureau of Central Statistics for the period 2010–2015. The TE is estimated using data envelopment analysis (DEA) with bootstrapping approach. The TE is also estimated at the firm-level survey data, classified at the five-digit level of the International Standard Industrial Classification system. In addition, a truncated regression model is applied to estimate the effects of the determinants on the TE.
Findings
This research finds that there is a low average TE of the MSEs for the subsectors investigated. It is also found that the TE is associated with firm size, location, export orientations on domestic and world markets, firm age, level of technology, and owner education.
Originality/value
The literature investigating the TE of the MSEs and its determinants is still rare in Indonesia. Most of the previous research limited the studies for specific subsectors and/or specific small regions. Therefore, this research has a contribution in measuring the TE of the MSEs for comprehensive subsectors as well as its relation with the determinants in the Indonesian manufacturing sector. Also, the DEA with bootstrapping approach is applied to estimate the TE of the firms based on each relevant subsector, which is rare in the previous research of the Indonesian MSEs.
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Maman Setiawan and Alfons G.J.M. Oude Lansink
The purpose of this paper is to investigate the relation between industrial concentration and technical inefficiency in the Indonesian food and beverages industry using a dynamic…
Abstract
Purpose
The purpose of this paper is to investigate the relation between industrial concentration and technical inefficiency in the Indonesian food and beverages industry using a dynamic performance measure (dynamic technical inefficiency) that accounts for the presence of adjustment costs.
Design/methodology/approach
This research uses panel data of 44 subsectors in the Indonesian food and beverages industry for the period 1980-2014. The dynamic input directional distance function is applied to estimate the dynamic technical inefficiency. Further, the Granger causality between industrial concentration and dynamic technical inefficiency is tested using a dynamic panel data model. A bootstrap truncated regression model is finally applied to estimate the relation between industrial concentration and dynamic technical inefficiency based on the results from the Granger causality test.
Findings
The results show that the Indonesian food and beverages industry has a high dynamic technical inefficiency. Investigation of the causality of the relation shows that industrial concentration has a positive effect on dynamic technical inefficiency at the subsector level, with no reversed causality. The results suggest that the quiet life hypothesis applies to the Indonesian food and beverages industry.
Originality/value
The literature investigating the relation between industrial concentration and performance relies on static measures of performance, such as technical efficiency. Static measures provide an incorrect metric of the firms’ performance in the presence of adjustment costs associated with investment. Therefore, this research has a contribution in measuring dynamic technical inefficiency that accounts for the presence of the adjustment cost as well as its relation with industrial concentration in the Indonesian food and beverages industry.
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Armida Salsiah Alisjahbana, Maman Setiawan, Nury Effendi, Teguh Santoso and Baruna Hadibrata
This study investigates the effect of digital technology adoption on labor demand in the Indonesian banking sector.
Abstract
Purpose
This study investigates the effect of digital technology adoption on labor demand in the Indonesian banking sector.
Design/methodology/approach
This research uses bank-level survey data obtained from the Indonesia Financial Service Authority (OJK) for the period 2010–2017 using semiannual data. This research applies a panel data method using a fixed effect model.
Findings
This study results show that technology adoption affects labor demand significantly in all Commercial Bank Based on Business Activities (BUKU) levels of banks. Technology adoption tends to be a substitute for labor in BUKU I, BUKU II and BUKU III banks in the support and business units. In addition, technology adoption complements labor only in the business unit in BUKU IV banks.
Research limitations/implications
This research uses a sample of only 40 banks at the regulatory levels of BUKU I, BUKU II, BUKU III and BUKU IV. These 40 banks account for more than 80% of the assets in the Indonesian banking sector.
Originality/value
Literature investigating the effect of the adoption of digital technology on labor demand in the banking sector is still rare in the Indonesian economy. Most of the previous research limited its area of study to the manufacturing industry. This research makes a vital contribution in measuring the adoption of digital technology and its effect on labor demand in the banking sector using the BUKU level classifications of banks.
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Nurul Indarti, Andy Susilo Lukito-Budi and Azmi Muhammad Islam
This study aims to explore existing study trends in the halal supply chain (HSC) field as an extension of supply chain studies. Upon examining multiple journal ranks and citation…
Abstract
Purpose
This study aims to explore existing study trends in the halal supply chain (HSC) field as an extension of supply chain studies. Upon examining multiple journal ranks and citation profiles, these trends cover research themes, methodologies, settings (country and data analysis level) and their interactions.
Design/methodology/approach
The study followed a systematic, mixed-method review to pinpoint the HSC research themes. The Publish or Perish software, with specific criteria, was used to retrieve and filter 87 HSC articles from 2009 to 2019 from the Google Scholar database. Then, an input–process–output framework was used to classify and discuss potential future research.
Findings
This study concludes that HSC research is still in early development. Five themes consisting of 24 different topics were found: the engagement process, quality control assurance, critical success factors, the production and distribution process and HSC operations support. Most of the HSC studies followed conceptual and qualitative interview methods, with special reference to Muslim-majority countries and organization-level analysis. Within one decade, the number of HSC publications grew significantly, though their presentation is mainly in unindexed journals and their citation rate is low. This study thus proposes three main future HSC research points: HSC consequences, processes and antecedents.
Practical implications
Possible practical implications can be expected from the authors’ proposed empirical studies as guidelines to formulate and promote HSC implementation.
Originality/value
No comprehensive HSC research review exists in the literature. This study intends to fill this void by charting cumulative knowledge and proposing a roadmap for future research endeavors.
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Harwati , Anna Maria Sri Asih and Bertha Maya Sopha
This study aims to develop a measurement model of the halal supply chain resilience (HSCRES) index, which represents the capability of the supply chain (SC) to handle disruption…
Abstract
Purpose
This study aims to develop a measurement model of the halal supply chain resilience (HSCRES) index, which represents the capability of the supply chain (SC) to handle disruption caused by halal risks. A case study is conducted to apply the HSCRES index in the halal chicken SC in Yogyakarta, Indonesia, to test the proposed methodology.
Design/methodology/approach
A literature synthesis was conducted to establish the main capability and vulnerability factors and their relevant indicators. The indicators were validated using the confirmatory factor analysis approach. Then, applying an analytical hierarchy process involving ten experts – practitioners and academicians – the weight of each indicator was obtained. A survey of 20 employees of slaughterhouses, 35 sellers and 100 consumers was conducted to obtain the value of each indicator. Finally, the HSCRES index was calculated by comparing the total weighted capability value to vulnerability.
Findings
The results revealed that the resilience of halal chicken SC in Yogyakarta is at a good level, with an index of 3.459, and “halal team” is the most significant indicator. The findings also revealed several capabilities that need improvement, including dedicated halal facilities, employees’ halal competence and halal regulation. However, the lack of a halal certification board, lack of management commitment and packaging contamination were found as vulnerability indicators that need to be reduced.
Research limitations/implications
The case of this study is limited to the halal chicken SC in Yogyakarta, Indonesia. As a consequence, the obtained results are limited to a specific context. The application of this method to different areas and objects enables the establishment of different capability and vulnerability indicators.
Practical implications
The halal resilience measurement model offers a comprehensive understanding of the strengths and weaknesses of the HSC. The findings can help stakeholders improve preparedness for halal risks, deal with halal risks better and recover more quickly. Measuring the HSCRES index can be particularly useful for policymakers in developing evidence-based strategies to increase HSCRES.
Originality/value
The current study is the first to define and classify the contributing halal resilience attributes and also to calculate the halal resilience index.