PDF able to compete with competitors

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The Role of Cognitive & Affective Drivers in Building Satisfaction and Loyalty: Study on Non Dine in Coffee Shop in Indonesia

1 Eka Prasiyuda Departement of Management

Indonesia Banking School Jakarta, Indonesia [email protected]

2^ndTri Lestari Departement of Management

3^rd Whony Rofianto Departement of Management

Abstract—Non dine coffee shops started to grow as an alternative to dine in coffee shops in high mobility society.

Amplified by the pandemic of COVID-19, it is interesting to research this type of coffee shop that potentially grows in a new normal condition. To perform a model retesting of cognitive and affective drivers in building satisfaction and loyalty, specifically in the context of non dine in coffee shops. The sample size used for this study was 150. The empirical data collected through a cross-sectional online survey to consumers in the JABODETABEK area.

Hypothesis testing is conducted using the Structural Equation Modelling (SEM) approach. The result shows that Brand Awareness, Perceived Quality, Brand Image, Perceived Value, Pleasure, Arousal, Brand Satisfaction, Relationship Commitment, Brand Loyalty positively drives satisfaction and loyalty. The study of non dine in coffee shops are still rarely studied in the midst of research in the context of the Food Industry, especially those related to consumer response patterns under conditions of transformation towards the new normal.

Keywords— Brand Loyalty, Brand Satisfaction, Cognitive Aspects, Affective Aspects, Food Industry.

I. INTRODUCTION

The coffee shop industry has experienced significant growth in the last decade in many countries across the world (Ferreira,2020). The number of coffee shop in Indonesia is significantly growing can be seen from the number of coffee shops that do the franchise or open the coffee shop by using a new brand. Coffee shop business in Indonesia began since the inclusion of a coffee shop company originating from Seattle, United States that is Starbucks. Therefore, many emerging local coffee shops by following the concept of Starbucks to compete and create satisfaction experienced by customers to gain loyalty from them [1]. This research aims to investigate local brands of coffee shops in indonesia.

Covid 19 cases were first detected in Jakarta on 3 March 3, 2020. Since then, the number of positive cases has increased. The DKI Jakarta government then decided to implement the PSBB on April 10, 2020 [2]. Food and beverage (F&B) is one of the industries that is seriously affected by coronavirus. The local culinary business also made adjustments as a result of the local government implementing social restrictions by prohibiting people from gathering and eating in one place. However, take-away food increased slightly or around 7% in the January-February 2020 period [3].

Janji Jiwa is one of the local coffee shops or brands in Indonesia. This coffee shops has been opened since 2018 and which is shaded by Jiwa Group [4] . Janji Jiwa continue to develop its brands and coffee products to be better and able to compete with competitors. One of the supporting concepts in the Janji Jiwa brand is the fresh-to-cup concept of using coffee from local Indonesian farmers. With more than a decade of experience, Janji Jiwa also managed to find ways to produce quality products at affordable prices [4].

Coffee shop brand by considering the role of cognitive drivers, affective drivers, brand satisfaction, and relationship commitment. The study aims to theoretical framework contained a sufficient level of explanatory power for brand loyalty.The main interest of the present research was to identify the possible relationships among multiple cognitive dimensions (i.e., brand awareness, perceived quality, brand image, and perceived value),affective factors (i.e., pleasure and arousal), brand satisfaction, relationship commitment, and brand loyalty by proposing and testing a sturdy theoretical model in a chain coffee shop context [5]

This research interested in examining customer loyalty in the coffee shop industry, especially customers of other coffee shop. The theoretical model should also be validated with different samples of populations. Furthermore, it can also be a good research topic to perform research of measurement development for building satisfaction and loyalty on non dine in coffee shops in Indonesia because it is arelatively new topic and a measurement study focusing on non dine in has not been frequently conducted yet [5]

II. MATERIALS AND METHODS Literature Review

A. Cognitive Drivers

The cognitive process will not develop instantaneously, but only after an individual is able to cognitively process and assess the available evidence. In the context of branding, cognition would involve consumer’s knowledge of the brand (brand awareness), their perceptions (brand image) and judgments of it (perceived quality and perceived value). Thus, brand awareness, brand image, perceivedquality and perceived value are the four key concepts under cognitive drivers in this study [5]. Cognitive messages trigger the rational dimension of the decision making process on purchasing a product or service [6].

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2 B. Affective Driver

Pleasure is generally related to human positive or negative feelings whose continuum is ranged from significant unhappiness at one hand to tremendous ecstasy at the other hand. However, in another research, pleasure was expressed quite disparately in which references such as excitement, relaxation, love, and tranquility at one end and cruelty, humiliation, disinterest and boredom at the other end were adopted [5], An affective response may result that leads to the development of a cooperative and accommodating attitude towards the service provider [7]

affective messages initiate emotional responses, which, in turn, influence the purchase behavior [6].

Hypotheses Development

Brand awareness was included as a control variable because preexisting knowledge and attitudes toward a brand can affect brand related decision-making [8].In this study, it is postulated that the cognition dimensions: brand awareness, brand image, perceived quality, and perceived value, have a positive impact on two key affective drivers:

pleasure. We believe that all of these outlets create unique brand images by offering symbolic value because customers consume coffee shop brands in addition to beverages and desserts, develop consumption meanings in the reflexive environment, and express their personality and identity through social interactions [8].

Quality has been defined in different ways, describes quality as conformance to requirements. Quality is perceived by consumers [9]. The definition of customer perceived value has changed over time. However, the definition of ‘value’ adopted in this study is: ‘all factors, qualitative and quantitative, subjective and objective, that make up the complete consumption experience. This definition identifies the subjective and multidimensional nature of customer perceived value.It also includes such affective dimensions as selfgratification, aesthetic pleasure, prestige, transaction, and hedonism [10]. The pleasure a person expects from the product can influence the engagement with a brand [11]. Coffee shop managers should continuously develop new and varied sustainable sensory stimuli so that customers can always feel pleasure when visiting coffee shops [12].

H1: Brand awareness positively influences pleasure.

H2: Perceived quality positively influences pleasure.

H3: Brand image positively influences pleasure.

H4: Perceived value positively influences pleasure.

H5: Pleasure positively influences brand satisfaction.

H6: Brand satisfaction positively influences relationship commitment

Brand loyalty itself is the biased (non-random) behavioral response (purchase) expressed over time by some decision-making unit with respect to one or more particular brands out of a set of brands and is a function of psychological processes. Therefore, we conclude that customer satisfaction fully mediates the

effects of these brand equity dimensions on brand loyalty [13].

H7: Brand satisfaction positively influences brand loyalty

H8 : Relationship commitment positively influences brand loyalty

Therefore, shown in Figure 1 to illustrate the study’s research model that was developed in prior paragraph.

There are 7 hypotheses proposed in this study.

Methodology

This research applied a quantitative paradigm. The measurement instrument for this study comprises multi- item scales validated in previous studies. Each item was measured on a 7-point Likert-type scale anchored by 1 = strongly disagree and 7 = strongly agree. The items measuring the relationship between Brand Awerness, Perceived Quality, Brand Image, Perceived Value, Pleasure, Brand Satisfaction, Relationship Commitment, Brand Loyality, (see Tabel 1 for the measurement item).

Data were collected using convenience sampling, with an online survey, A qualifier question was used, whereby the respondents can take the survey only if they have buying Janji Jiwa. The respondents were asked to provide demographic details like gender, age, occupation and education. A total of 180 responses, which reduced to 160 after data cleaning were analyzed (see Tabel 2 for the Demography respondes) .

TABLE 1. MEASURMENTITEMS

Code Operational Variabel Resource

BA

When I think of a store, the symbol or the logo comes to mind

(Graciola 2020) I am very acquainted or accustomed

with the brand of this store

This retail brand is different from other competing brands

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3 TABLE 2. DEMOGRAPHYRESPONDENS

III. RESULTS

Validity and Reliability of Measurements

The indicators used in this study were subjected to reliability and validity analyses. Confirmatory factor analysis (CFA) was conducted to verify the reliability and validity. After analyzing a total of 32 items, CFI (comparative fit index) = 0,756, RMSEA (root mean square error of approximation) = 0,161, CMIN/DF (the minimum sample discrepancy function devided with degrre of freedom) = 5,124. All results that were unconsistent with standards except for CFI (comparative fit index) [14].

The composite reliability of all construct items was 0.7 or above except variable brand awareness. Convergent validity was verified, as the average variance extracted (AVE) was also 0.5 or above [14]. (See Table 3).

TABLE 3. VALIDITYANDRELIABILITYTESTING

Hypotheses Testing

This study used a structural equation model analysis (SEM) using AMOS software was used to verify its hypotheses. The standardized path coefficients were used for interpreting the causal relationships. All the hypotheses were supported in the research model. Tabel 4 showed the SEM analysis of the research model.

Code Operational Variabel Resource

PQ

Brand X must be of very good quality

(Aaker, 1991) Brand X offers products of consistent quality

Brand X is of high quality

The likelihood that brand X is reliable is very high

BI

I feel connected to this brand.

(Sääksjärvi &

Samiee, 2011) I can rely on this brand

This web brand is credible

This web brand lacks character (reverse coded)

PV

What I get from the product is worth the cost

(Han and Kwon, 2009) All things considered (price, time and effort)

this product is a good buy

Compared to others, this brand/product is good value for money.

The old saying: “you get what you pay for” is true for this store.

P

What I get from the product is worth the cost

(Ryu and Park 2019) All things considered (price, time and effort)

this product is a good buy.

Compared to others, this brand/product is good value for money

The old saying: “you get what you pay for” is true for this store.

BS

I am satisfied with my decision to get or not to get a flu shot

(Oliver, 1980) If I had it to do all over again, I would feel

differently about the flu shot program My choice to get or not to get a flu shot was a wise one.

I think that I did the right thing when I decided to get or not to get the flu shot.

I am not happy that I did what I did about the flu shot

RC

I feel involved with my supplier’s company

(Caceres 2007) I defend my supplier in front of other

colleagues and external partners I am very proud to have this company as a supplier

BL

Brand X would be my ﬁrst choice

(Pappuetal, 2006) I consider myself loyal to Brand

If brand X was not available at the store, it would make little difference to me to choose another brand

If brand X was not available at the store, I will not buy other brands.

I recommend this brand to someone who seeks my advice

Items Categories %

Gender Male 32%

Female 68%

Age

<20 7%

21-30 88%

31-40 5%

<40 -

Occupation

Student 23%

Government employees 18%

Private employees 49%

Entrepreneur 7%

Housewife 3%

Education

Equivalent 19%

Diploma 41%

S1 38%

S2 2%

S3 -

Variable Indicator Loading

Factor CR AVE

BA

BA1 0,819

0,640 0,842

BA2 0,791

BA3 0,789

PQ

PQ1 0,935

0,805 0,943

PQ2 0,852

PQ3 0,925

PQ4 0,874

BI

BI1 0,909

0,728 0,914

BI2 0,925

BI3 0,814

BI4 0,754

PV

PV1 0,844

0,771 0,931

PV2 0,854

PV3 0,888

PV4 0,924

P

P1 0,867

0,852 0,958

P2 0,908

P3 0,956

P4 0,959

BS

BS1 0,925

0,872 0,971

BS2 0,900

BS3 0,967

BS4 0,949

BS5 0,927

RC

RC1 0,938

0,855 0,946

RC2 0,927

RC3 0,908

BL

BL1 0,862

0,834 0,962

BL2 0,942

BL3 0,872

BL4 0,949

BL5 0,937

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4 TABLE 4. HYPOTHESESTESTING

IV. RESULTS

Profile of respondents can be submitted as follows. The majority of respondents are either respondent whose data are taken from female aged 21 – 30 years, more than half of the respondents in coffe non dine in from private employees. This funding indicate relate with previous research [15].

Hypothesis 1 states that there is insignificant relationship between brand awerness and pleasure, this funding is contradictory with the previous research [10], that’s state the previous consumer behavior and marketing studies that identified the significant relationship between cognition and affect in diverse contexts. Also that given these important results, practitioners of coffe non dine should consider making diverse endeavors to improve patrons’ brand awareness and perceived value in order to increase the level of customers’ affective/emotional experiences at a coffee shop and brand loyalty.

Futuremore, brand image, brand satisfaction and relationship commitment show the higher significant in this model, this in line with previous research [10] Satisfaction is often regarded to be one of the most vital factors in generating individuals’ purchasing decision/intention and behavior in consumer behavior and marketing.

Despite the contributions of this study to coffee non dine in and services marketing literatures, it is not without limitations. First, limitation of the research relates with Janji Jiwa applied as the research object. Therefore, this study can not be used as representative for coffee shops other than objects of this research.

Based on the limitations of the study and the results of this study, it can be offered some suggestions for further research. The first suggestion is based on the research object. In other words, future research may apply different brand names of coffee shops. It aims to produce new knowledge in science

REFERENCES

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mediating effects of positive and negative emotions. J Hosp Mark Manag [Internet]. 2019;28(3):285–305. Available from:

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[10] El-Adly MI. Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty. J Retail Consum Serv [Internet]. 2019;50(xxxx):322–32. Available from:

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[11] Parihar P, Dawra J, Sahay V. The role of customer engagement in the involvement-loyalty link. Mark Intell Plan. 2019;37(1):66–79.

[12] Jang HW, Lee SB. Applying effective sensory marketing to sustainable coffee shop business management. Sustain. 2019;11(22).

[13] Susanty A, Kenny E. 4481-8316-5-Pb. 2015;(1):14–27.

[14] Hair, J.F.; Black, W.C.; Babin, B.J.; Anderson, R.E. Multivariate Data Analysis; Pearson Education Limited: London, UK, 2014.

[15] Susetyo prihadi. Siapa penikmat kopi di Indonesia. 2019; Availabel from: https://uzone.id/survei-siapa-penikmat-kopi-di-indonesia-

.

Ho Effects β

Estimate CR. P Remaks

H1 BA P -0,41 -1,076 0,282 Not Supported H2 PQ P 0,292 7,379 *** Supported H3 BI P 0,958 14,083 *** Supported H4 PV P -0,18 -4,53 0,650 Not Supported H5 P BS 1,021 21,111 *** Supported H6 BS RC 0,892 15,024 *** Supported H7 BS BL 0,236 1,740 0,082 Not Rejected H8 RC BL 0,915 6,318 *** Supported

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Author Names Page

Hery Suliantoro, Baby Monica I Simanjuntak, Kirana Rukmayuninda 1

Budi Ismoyo, Muhammad Idrus Alhamid , Nasruddin, Muswar Muslim, Arnas Lubis 2

Siti Jahroh, Janita S Meilala 3

Ahmad Shaharudin Abdul Latiff 4

Rozaina Ali, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab 5

Muhammad Faizurrohman, Lukman M Baga, Siti Jahroh 6

Danjuma Tali Nimfa, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab, Patrick Ethe Raj 7

Murodjon Urmonov, Ahmad Shaharudin Abdul Latiff 8

Nusrat Hafiz, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab 9

Kamna Anum, Sazali Abdul Wahab, Ahmad Shaharudin Abdul Latiff 10

Md Ahsanuzzaman Nishu, Ahmad Shaharudin Abdul Latiff, Huam Hon Tat 11

Luthpiyah Juliandara, Siti Jahroh, Budi Purwanto 12

Khairunnisa Mohd Azmi, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab 13 Mohamad Jatiardi, Dodik Siswantoro, Miranti Kartika Dewi, Evony Silvino Violita 14 Muhammad Isradi Zainal, Wahyu Ismail Kurnia, Kuswandi Arifin, Seherdi Siman 15

Wahyu Ismail Kurnia, Muhammad Isradi Zainal, Alex Kisanjani 16

Ferry Ardiansyah, Hermanto Siregar, Dedi Hakim, Mulya Siregar 17

Rifqi Jalu Pramudita, Niniet Indah Arvitrida 18

Dhaha Praviandi Kuantan, Hermanto Siregar, Anny Ratnawati, Solikin Juhro 19

Suhaila Abdul Hanan, Emy Ezura A. Jalil, Nizamuddin Zainuddin 20

Alfa Chasanah, Nindita Ayu Mutia Lestari, Siti Jahroh 21

Eka Sudarmaji, Noer Azam Achsani, Yandra Arkeman, Idqan Fahmi 22

Morgan Parlindungan, Muslim Efendi Harahap 23

Siti Jahroh, Intan Adhitya Rosmasari, Achmad Fadillah 24

Agus Masrianto, Hartoyo, Aida Vitayala S Hubeis, Nur Hasanah 25

Muhammad M. Maulana, Arif Imam Suroso, Yani Nurhadryani, Kudang Boro Seminar 26

Besty Hasyati, Taufik Djatna, Erliza Noor 27

Johannes Widjaja Wahono, Ujang Sumarwan, Bustanul Arifin, Herry Purnomo 28 Meuthia Rachmaniah, Arif Imam Suroso, Muhammad Syukur, Irman Hermadi 29 Afeez Kayode Ibikunle, Mohamad Farizal Rajemi, Fadhilah Mohd Zahari 30

Raden Isma Anggraini, Rifa Herdian 31

Ahmad Giffari, M Syamsul Maarif, Setiadi Djohar, Arif Imam Suroso 32

Heri Susanto, Noni Noerkaisar, Raden Isma Anggraini 33

Esaputra Mangarul Rajagukguk, Muslim Efendi Harahap 34

Asaduddin Abdullah, Dikky Indrawan 35

Nyayu Lathifah Tirdasari, Andina Oktariani, Dikky Indrawan, Nur Hasanah 36

Achmad Fadillah, Muhammad Asyam Dzaki Hasibuan, Anny Ratnawati 37

Achmad Fadillah, Andre Eka Hizkia Barus, Noer Azam Achsani, Lien Herlina, Febriantina Dewi, Fithriyyah Shalihati

38

Joko Rurianto, Ujang Sumarwan, Budi Suharjo, Nur Hasanah 39

Heny Herawati, Agus Soemantri, Elmi Kamsiati, Muchamad Bachtiar 40

Aini Ayu Zahara Tsulusi, Anton Mulyono Azis 41

Khairun Nisha Khirul Anuar, Nurul Amirah Faiqah Sallehuddin, Suhaila Abdul Hanan 42

Audy Joinaldy, Luki Abdullah, Yandra Arkeman, Siti Jahroh 43

Rakhmat Dicky Mohammad, Sisdjiatmo Kusumosuwidho Widhaningrat 44

Nur Khairiah Muhammad, Nor Hasni Osman, Nurul Azita Salleh 45

Heny Herawati, Agus Soemantri, Elmi Kamsiati, Muchamad Bachtiar 46

Masanori Fukui, Jo Hagikura, Yuji Sasaki, Jun Moriyama, Yusuke Hayashi, Tsukasa Hirashima 47

Belal Zidan Rimawi, Wan Fadzilah Wan Yusoff, Abu Sofian Yaacob 48

The Effect of Purchase Skills on The Purchasing Strategics and Financial Performances

Hery Suliantoro, Baby Monica I Simanjuntak, Kirana Rukmayuninda Diponegoro University

ABSTRACT

Restaurant business is one of the fastest growing businesses and is increasing in number at the moment. Also noted that in 2018 food and beverage industry‟s development rate reached 8.67%. Where the number exceeds the value of Indonesia national economic development. With the increasing population of people in Indonesia, the effect of demand for food and beverages has also increased. Therefore restaurant is an important type of business at this time. However, many problems occured in restaurants which related to the amount of procurement costs that occur in the budget plan. There is no research that explains the steps to improve financial performance through procurement. Therefore, this study was conducted to look at the relationship between the ability of employees in procurement to strategic purchasing and its impact on the financial performance of restaurants. After the research finished, it will give advice and recommendations to the restaurant to improve its performance. This research uses Structural Equation Modeling- Partial Least Square method with a sample of 60 restaurants in Semarang. After the research, it was found that the ability that would improve the implementation of strategic purchasing and improve the financial performance of the restaurant was technical knowledge. And also by implementing strategic purchasing the financial performance will also improve.

Keywords: Strategic Purchasing, Purchasing Skill, Restaurant Procurement, Semarang Restaurant, Structural Equation Modeling-Partial Least Square

Email Correspondence:

[email protected]

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Working Fluid Selection for A Simple System of Low-Temperature Organic Rankine Cycle Plant

Budi Ismoyo, Muhammad Idrus Alhamid , Nasruddin, Muswar Muslim, Arnas Lubis University of Indonesia

ABSTRACT

Heat sources such as geothermal brine, biomass, and other waste heat sources have the potential to be recovered. Organic Rankine Cycle (ORC) plants can use to convert low- temperature heat sources into electrical energy. Working fluid selection for a simple system of the Organic Rankine Cycle plant is essential because the system works in limited conditions. This research will analyze the performance of several fluids that can use as working fluids. Simulation using EES, the selected fluid must have excellent cycle efficiency, a high volumetric vapor flow rate, and a high expansion pressure difference.

Working fluids compared at a constant pump flow rate of 4.5 lpm with a heat source temperature range of 70-180 oC to obtain thermal efficiency, volumetric vapor flow rate, and expansion pressure difference of the expander. The simulation results obtained 11 types of work fluids that meet these criteria. Considering environmental aspects, three types of working fluids are ideal for testing. N-Pentane as a working fluid with the highest volumetric vapor flow rate. R-123 as a working fluid with the highest cycle efficiency. R- 1233zd as a working fluid with the highest expansion pressure difference.

Keywords: Organic Rankine Cycle, Working Fluid, Scroll Expander

Email Correspondence:

[email protected]

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Impacts of Business Aggregator on Farmers’ Income

Siti Jahroh, Janita S Meilala IPB University

ABSTRACT

Agricultural produces pass a long journey from the farms up to the end consumers. With the advancement of information technology, aggregator businesses have emerged in order to shorten the long distribution chain. Therefore, farmers as producers can access information both on prices received by consumers and the characteristics of products demanded by consumers. This study aims to (1) explain the distribution chain mechanism through the aggregator business, and (2) analyze the impact on farmers who join the aggregator business distribution chain. There were 12 aggregator businesses and 36 farmers were interviewed as respondents in February to April 2019. The results showed that the distribution chain through the aggregator business was shorter compared to conventional whereas farmers had specific contracts or agreements with the aggregator business. The impact on farmers who join the aggregator business distribution chain is receiving higher prices, leading to increase farmers' income, transparency in prices where farmers know the selling prices at the consumer level, and farmers know consumer preferences for the products. It is expected that farmers will be able to produce better agricultural produces according to consumer preferences as well as to increase farmers' income.

Keywords: Price, Consumer Preferences, Distribution Chain, Transparency

Email Correspondence:

[email protected]

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Ontology Requirements Specifications for Islamic Banking Products

Ahmad Shaharudin Abdul Latiff Universiti Putra Malaysia

ABSTRACT

An ontology defines the basic terms and relations comprising the vocabulary of certain topic area or domain as the rules for combining terms and relations to define extensions to the vocabulary. It is used by people, databases and applications that need to share domain information. They are surrogates for representing knowledge which involve ontological commitments, as fragmentary theory of intelligent reasoning, act as mediums for computation and also human reasoning. Domain ontologies describe the vocabularies related to a specified domain; they describe and represent the domain knowledge. They are needed to improve the dissemination of knowledge within any discipline; such as the Islamic banking industry. They could also be used to facilitate financial engineering;

particularly for the design of new banking products, which in turn may provide more product options to the customers. This paper provides the ontology requirements specification for Islamic banking products.

Keywords: Financial Engineering, Knowledge Modelling, Ontology Development Specifications, Software Engineering

Email Correspondence:

[email protected]

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Factors Influencing Decision-Making (DM) Process In Relation To Public Service Delivery (PSD) In Malaysia

Rozaina Ali, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab Universiti Putra Malaysia

ABSTRACT

Efficient public service delivery is a main objective for every government. An important aspect of public service delivery is ensuring services provided fulfil the changing needs of the citizens and benefiting the general public. However, the challenge on how best the government can serve the public continues to be the major issues in improving public service delivery. Information gap and no integrated system are affecting government‟s responsiveness. Despite the efficiency of service delivery system is a priority of the government, deficiency of viable, persistent and timely information for decision-makers happen due to data silos, lack of data gathering with poor data governance and integration instead of operative unified data. The objectives of this paper are to examine and gain a better understanding of the complexities that are associated with decision-making process in relation to public service delivery from the perspective of government of Malaysia. In terms of academic contribution, this paper provides a better understanding of the critical factors for effective decision-making from the perspective of the government. With regards to practical implications, this article provides the Malaysian government and public organisations with relevant factors of consideration on how the public service delivery can be improved.

Keywords: Public Service Delivery, Decision-making, Data Governance, Shared Information

Email Correspondence:

[email protected]

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THE BUSINESS STRATEGY TRANSFORMATION OF DIGITAL MARKETING OF MICRO, SMALL, AND MEDIUM ENTREPRISES

(A CASE STUDY OF CULTIVE APPAREL)

Muhammad Faizurrohman, Lukman M Baga, Siti Jahroh IPB University

ABSTRACT

The existence of MSMEs (Micro, Small, and Medium Entreprises) has proven to be a pillar of the economic improvement of a country. The industrial era 4.0 has caused intense of business competition that emphasizes in the internet-based interconnection. Therefore, a business formulation is needed that can be adopted by MSMEs in order to be able to maintain their existence and not be crushed by the intense of competition by the capital- intensive businesses. This research aims to formulate a business strategy that can be applied by MSMEs to enter and compete in the online business. The research will be conducted as a case study at MSME Cultive Apparel. The methods used will include Benchmarking, Internal and External Environmental Analysis, and IE Matrix. The alternative business strategy will be useful for the Cultive Apparel to survive and develop in the industrial era 4.0.

Keywords: Business formulation, Environmental analysis, Online business

Email Correspondence:

[email protected]

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Effect of Organisational Culture on Sustainable Growth of Manufacturing SMEs: Mediating Role of Innovation Competitive

Advantage

Danjuma Tali Nimfa, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab, Patrick Ethe Raj

Universiti Putra Malaysia

ABSTRACT

In spite of incessant efforts to encourage sustainable growth of small and medium enterprises (SMEs), challenges in terms of organisational culture innovation have continued to hinder the progress of SMEs. This study investigates the effect of organisational culture on the sustainable growth of manufacturing SMEs and the mediating role of innovation competitive advantage. The electrical small and medium enterprises production is the realm of this study. The study used a sample size of 247 electrical SMEs.

The partial least squares structural equation modelling (PLS-SEM) via SmartPLS was employed to test the hypotheses. The study reveals that there was a significant relationship between organisational culture and sustainable growth of electrical manufacturing SMEs.

Also, there was a positive and significant relationship between innovation competitive advantage and sustainable growth of electrical manufacturing SMEs. Furthermore, the findings confirmed that innovation competitive advantage mediates the relationship between organisational culture and sustainable growth of electrical manufacturing SMEs in Nigeria. This study sets out purposeful measures to encourage owner-managers of the electrical manufacturing SMEs to maintain as well as installing innovative organisational culture that enhances innovation competitive advantage efficiently for sustainable growth of SMEs in Nigeria. This study is distinctive because it tries to fill the small and medium enterprises gaps through encouraging managers of the electrical manufacturing SMEs to always strategies for better sustainable growth in the rapidly changing business environment.

Keywords: Organisational culture, Sustainable growth, SMEs, Innovation competitive advantage, PLS-SEM (SmartPLS)

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(17)

Blockchain technology for enhanced Halal food integrity

Murodjon Urmonov, Ahmad Shaharudin Abdul Latiff Universiti Putra Malaysia

ABSTRACT

Incidents around the Halal food products are diminishing the trust in the effectiveness of Halal Assurance Systems and integrity of halal products. Trust concerns include proper product and process verification techniques, reliable information sharing and record keeping systems. Hence, there is a need for a proof to show the products sold are really in compliance with religious requirements and guidelines. Blockchain Technology with other Industry 4.0 components can allow businesses to store and send information securely and transparently thanks to its unique features: distributed, decentralized, secure, permanent and tamper-proof. Despite of interest among researchers and practical benefits of Blockchain to solve traceability and transparency issues, there is still a need to study on the applications of Blockchain in the Halal Assurance Systems, thus representing a knowledge gap. Consequently, our understanding of inner-workings of Blockchain technology as well as its implications on ensuring halal integrity remains limited. Hence, principal aim of this study is to discover how Blockchain will likely be the solution to issues around Halal Assurance System and transform it to achieve true Halal integrity. The study has vital business implications in the form best practices for performance enhancement, and governments may use study findings to make modifications or create new policies and regulations as well as extending the knowledge about Blockchain and its applications in various areas.

Keywords: Blockchain, Halal supply chain, Food integrity, Halal Assurance System

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(18)

Challenges faced by Urban Women Entrepreneurs on Small Firm Growth of Bangladesh

Nusrat Hafiz, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab Universiti Putra Malaysia

ABSTRACT

Women entrepreneurs are crucial transformation agents of the economic growth in a developing country. In order to enhance their value-added participation in the Small and Medium Enterprises (SME) sector for a developing nation, Bangladesh, it is essential to accentuate the unexploited segment of women entrepreneurs, such as those who operate from urban settings. The present study aims to investigate the challenges and constraints that the urban women entrepreneurs are facing pertaining to their venture growth. The findings of the extensive review of the extant literature reveals that financial illiteracy, inadequate human capital, insufficient social capital and business environmental hiccups are the key challenges for them. While many women from urban cities are better equipped to utilize their human capital for venture growth, most of them are still quite susceptible towards economic and social-denials. If not treated prudently with immediate affects, the constraints may lead to the substandard venture growth and eventually to the closure of firms; and leave adverse effects on the economic status of the country. The paper also offers strategic recommendations in order to halt the probable catastrophe caused by the constraints and to reap maximum benefits from urban women entrepreneurship to prompt the development process of the country.

Keywords: Challenges, Small Firm Growth, Socio-economic development, Urban Women Entrepreneurs, Bangladesh

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(19)

Women-owned MSMEs – Startup to Survival

Kamna Anum, Sazali Abdul Wahab, Ahmad Shaharudin Abdul Latiff Universiti Putra Malaysia

ABSTRACT

Despite the significant contributions of women entrepreneurs in various socio-economic advancements of a country, only a few studies explain how women entrepreneurs manage to sustain their business performance for a longer run. Under the premise of Triple Bottom Line (TBL), this study intends to provide a detailed insight into the multidimensional perspectives of women entrepreneurs‟ sustainable performance. This conceptual paper contributes to the existing women entrepreneurship literature by highlighting the under- researched issues associated with women-owned micro, small and medium enterprises‟

long term survival, particularly in the context of Pakistan. In addition, the study serves as a basis for future research in the field of sustainable entrepreneurship by providing a direction to business academics in order to identify the factors associated with women entrepreneurs‟ sustainable performance.

Keywords: Women Entrepreneurs‟ Sustainable Performance (WESP), Women-owned MSMEs, Sustainable Development

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(20)

Entrepreneurial Marketing (EM): An Innovative Paradigm of Growth for the SMEs of Bangladesh

Md Ahsanuzzaman Nishu, Ahmad Shaharudin Abdul Latiff, Huam Hon Tat Universiti Putra Malaysia

ABSTRACT

The small and medium enterprise (SME) sector is one of the thriving sectors of Bangladesh which has significant contributions in terms of GDP growth, reduction of unemployment and overall progress of the economy. SMEs in Bangladesh create an estimated manufacturing output of 40%, employment of 7.8 million individuals supporting 31.2 million people‟s livelihood and contribution of 25% to the GDP of Bangladesh as of 2017.

However, the sector is suffering from major constraints such as limited access to finance, lack of information and communication technology (ICT) adoption, barriers to internationalization, absence of innovative, entrepreneurial and managerial skills. Out of the several challenges that the SMEs face, the development of marketing and sales channels had been less emphasized due to lack of capital. If we look into the current situation of the SME sector from the marketing perspective, the new paradigms of marketing such as entrepreneurial marketing (EM), which is most suitable for the SMEs due to its capabilities and feasibilities mentioned by previous researchers, can be a turning point for the SMEs. Indeed, EM has emerged as a marketing practice that helps SMEs to operate in a rapidly changing environment. Nevertheless, there are very few studies outlining the impacts of EM on performance outcomes of SMEs in different contexts creating a research gap. Thus, this conceptual paper recognizes how EM can assist to unravel the key constraints impeding the growth of SMEs using contemporary platforms of innovative marketing strategies and digital technologies.

Keywords: SMEs, Constraints, Growth, Entrepreneurial Marketing (EM), Bangladesh

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(21)

ANALYSIS OF MAPPING DISCLOSURES ON SUSTAINABILITY REPORTS IN INDONESIA

Luthpiyah Juliandara, Siti Jahroh, Budi Purwanto IPB University

ABSTRACT

In the modern industrial era, the role of companies that expresses their social responsibility in the form of sustainability reports is important. The Biodiversity Foundation (Sri-Kehati) plays an important role in publishing this report every year. The report contains social, economic and environmental disclosures that have been carried out by the company during one operating period. This study aims to analyze the mapping of Sustainability Report Disclosures conducted by companies in Indonesia. The data used are secondary data that are processed through descriptive and plot analyses. The results showed that the companies in the SRI-Kehati index group and the LQ45 index had similar characteristics to those on the company charts that tended to cluster. They had a fairly large positive correlation when viewed from the shape of the angle formed which is a sharp angle. For companies in the SRI-Kehati Index group, they had an advantage in market performance, especially in Unilever Indonesia companies, while for companies in the LQ45 index group, they had an advantage in market performance and its fundamental performance, especially in the Matahari Departement Store company.

Keywords: correlation, fundamental performance, market performance

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(22)

ENTREPRENEURSHIP ECOSYSTEMS AND SUSTAINABLE ENTREPRENEURSHIP ECOSYSTEMS

Khairunnisa Mohd Azmi, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab Universiti Putra Malaysia

ABSTRACT

Entrepreneurship ecosystems concept has received growing attention over the past decade as policy makers, universities, private enterprises, and communities have started to recognize the potential of cohesive structures, policies, programs and processes that foster regional entrepreneurship activities and also can support innovation, productivity and employment growth. Scholars too have turned their attention to understanding entrepreneurship more holistically, as part of a larger ecosystem of institutions, firms and individuals that engage in innovative and entrepreneurial activity. However, the entrepreneurial ecosystem approach has to this point been constructed ad hoc by different authors, without any mutual deﬁnition. In addition, following the path of sustainable development, an increasing number of researchers have started paying attention to the connection between sustainable development and entrepreneurship and sustainable entrepreneurship has received substantial recognition from academics and practitioners in the last decade. Cohen (2006) pioneered in introducing the concept of a sustainable entrepreneurial ecosystem; an ecosystem that focuses on sustainable development.

Nonetheless, the lack in Cohen answering several doubts such as how important the community culture is towards sustainability or which components of entrepreneurial ecosystems are more important than others in the emergence of sustainable entrepreneurship ecosystem has led other authors in search for more. Thus, this paper will discuss on the prior literatures on entrepreneurship ecosystem as well as the concept of sustainable entrepreneurship ecosystem.

Keywords: Entrepreneurship, Entrepreneurship ecosystem, Sustainable entrepreneurship ecosystem

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(23)

For The Better Halal Industry Environment: Evaluation and Resolution of Halal Certification Audit in Indonesia

Mohamad Jatiardi, Dodik Siswantoro, Miranti Kartika Dewi, Evony Silvino Violita University of Indonesia

ABSTRACT

Halal industry has become world phenomenon that cannot be ignored, especially in food &

beverages industry. Due to the continuously growing demand of halal industry, the existence of halal certification is very crucial for the assurance of halal products. However, the problem occurred because of many inappropriate practices that can lead to unreliable information about halal products and can turn to consumers disbelief of halal product in the future. Therefore, the existence of halal certification audit is considered necessary. This paper seeks to explain and evaluate the practice of halal certification, especially in terms of halal audit practices in Indonesia, the biggest Muslim country in the world. We did a literature review from academic papers, international standards, and other resources. We also examine news, regulations, and other relevant information that can capture the existing halal audit practices in Indonesia. This paper finds that the implementation of halal certification audits in Indonesia is far from perfect, therefore exposes a lot of room for improvements. This paper emphasizes the importance of several elements such as openness and transparency regarding the audit procedures and outcomes, clear government regulations, and pressure from customers for the better halal audit environment in Indonesia.

Keywords: Halal industry, Audit, Assurance, Indonesia, Literature Review

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(24)

Analysis on the Impact of Total Quality Management (TQM) Practices Towards Business Performance; A Case Study

Muhammad Isradi Zainal, Wahyu Ismail Kurnia, Kuswandi Arifin, Seherdi Siman Universitas Balikpapan

ABSTRACT

The improvement of c

PDF able to compete with competitors

Table of Contents

The Effect of Purchase Skills on The Purchasing Strategics and Financial Performances

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Working Fluid Selection for A Simple System of Low-Temperature Organic Rankine Cycle Plant

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Impacts of Business Aggregator on Farmers’ Income

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Ontology Requirements Specifications for Islamic Banking Products

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Factors Influencing Decision-Making (DM) Process In Relation To Public Service Delivery (PSD) In Malaysia

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THE BUSINESS STRATEGY TRANSFORMATION OF DIGITAL MARKETING OF MICRO, SMALL, AND MEDIUM ENTREPRISES

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Effect of Organisational Culture on Sustainable Growth of Manufacturing SMEs: Mediating Role of Innovation Competitive

Danjuma Tali Nimfa, Ahmad Shaharudin Abdul Latiff, Sazali Abdul Wahab, Patrick Ethe Raj

ABSTRACT

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Blockchain technology for enhanced Halal food integrity

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Challenges faced by Urban Women Entrepreneurs on Small Firm Growth of Bangladesh

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Women-owned MSMEs – Startup to Survival

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Entrepreneurial Marketing (EM): An Innovative Paradigm of Growth for the SMEs of Bangladesh

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ANALYSIS OF MAPPING DISCLOSURES ON SUSTAINABILITY REPORTS IN INDONESIA

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ENTREPRENEURSHIP ECOSYSTEMS AND SUSTAINABLE ENTREPRENEURSHIP ECOSYSTEMS

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For The Better Halal Industry Environment: Evaluation and Resolution of Halal Certification Audit in Indonesia

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Analysis on the Impact of Total Quality Management (TQM) Practices Towards Business Performance; A Case Study