• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.193-200
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• 2021

This study investigates the impact of managerial ability and managerial incentives on firm performance. In particular, it studies how managerial ability factor can exert significant influence on the profitability and the risk of firms. By doing this, the study can provide several policy implications about how managerial ability can influence firm decisions and its corresponding business policies. Data of the study was collected from the Annual Enterprises Survey (AES), which is conducted by the General Statistics Office of Vietnam (GSO) during the 2009-2013 period. After removing firms with insufficient financial information, our final dataset includes over 50,000 firms in Vietnam. The main result of the study shows that there is a significant and positive relationship between managerial ability and firm leverage. This finding indicates that managerial ability significantly plays an important role in making financial decisions. In addition, our study provides empirical evidence about the causal relationship between managerial compensation and firm risk-taking behavior. Specifically, we find that firm risks are significantly associated with compensation schemes including lower delta and higher vega. In other words, our study implies that the sensitivity of CEO wealth to stock volatility can positively affect both delta and vega or managerial incentives schemes.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.1013-1020
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• 2021

This study examines the role of dynamic socio-emotional capabilities to increase proactive stakeholder engagement in family businesses. The research sample includes all furniture enterprises scattered in Jepara Regency sub-districts as many as 3,945 companies. The sampling in this research is purposive; as many as 210 respondents, 181 could be used. The sampling unit is the owners and managers, considering that most company owners are also company managers. This study examines how learning and supply chain management in the family business can be integrated to enable a set of resources and capabilities provided by the family to be developed to build closer relationships with stakeholders. The findings showed the importance of a family business's supply chain management perspective in the relationship between dynamic socio-emotional capabilities to mediate organizational learning to proactive stakeholder engagement significantly. Based on this study's results, companies can build dynamic socio-emotional capabilities through organizational learning to increase proactive stakeholder engagement. Dynamic socio-emotional capabilities proved to play a role as a mediator for organizational learning by family companies for proactive stakeholder engagement.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.145-150
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• 2021

The trend of globalization leads an increased need for international freight transportation and accelerates the development of the international logistics industry. The objective of this paper is to identify the critical factors that affect the choice of logistics service provider (LSP). The data sample was collected through a questionnaire, responded by 218 companies that outsource logistics services. The analysis uses descriptive statistics; exploratory factor analysis (EFA) and regression analysis were conducted with SPSS. The role of capabilities, customer service, and company reputation were evaluated and tested. Our findings show that capabilities and customer service have a considerable impact on the choice of LSP. The findings also indicate that company reputation do not have significant impact on the choice of LSP. They also showed that the capabilities is the variable that has the most significant effect on the choice of LSP. An implication of this study is that the competition should not only focus on pricing, but should be extended to improving enterprises capabilities, i.e., upgrading human resources, modernizing the modes of transportation, expanding business geographically and developing new technologies. Our study provides LSP managers with insights into how to meet customer expectations in the competitive logistics service sector.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.673-685
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• 2021

This study aims to determine theoretically the best workers layoff/training strategy that entrepreneurs should apply to manage the COVID-19 crisis successfully. It also examines the impacts of the Saudi government's emergency measures on firm performance. The paper develops a theoretical framework in which the optimal control technics is applied to model the entrepreneur's hiring, layoff, and training behaviors. The results show that, during the current COVID-19 pandemic, the entrepreneur should first lay off the less productive workers to reduce labor costs. As more and more inefficient workers quit and profit increases, the entrepreneur starts expanding his activity and training workers. In the long run, only the training activity allows the firm efficiency to grow at a constant rate. This finding suggests that the key to long-run economic recovery in Saudi Arabia will rely on training, innovation, and adaptability to the new digital environment. The paper also shows that the Saudi government initiative of covering 60% of salaries for the small- and medium-sized entrepreneurs during the COVID-19 pandemic will enhance training activities in small- and medium-sized enterprises and improve their efficiency in both the short and long run. This policy will also prevent Saudi entrepreneurs from laying off half of their staff.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.505-515
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• 2021

The essential purpose of this study is to propose strategies for developing micro-, small-, and medium-sized enterprises (MSMEs) to realize sustainable competitive advantage by applying the SWOT analysis method. Thus, the main problems investigated in this study are: a) around 60-70% of MSMEs in Kulonprogo regency do not yet have access or financing from banks; b) lack of knowledge of production technology; c) in general, MSMEs business actors are still incorporated legal entities; d) MSMEs do not have a good financial administration and management system; e) coordination between MSMEs stakeholders has not been integrated; f) limited facilities and infrastructure of MSMEs, primarily related to technological tools; and g) limited access to raw materials so that MSMEs often get low-quality raw materials. This study employed a survey method with questionnaires and interviews. By using the Slovin tools sampling technique, the number of samples was 39 MSMEs in Kulonprogo Regency, Yogyakarta, Indonesia. The results of this study confirmed that the Kulonprogo MSMEs should pay attention to seven aspects of business management to achieve sustainable competitive advantage. The seven aspects are: 1) business strategy; 2) human resources; 3) information technology; 4) products; 5) promotion; 6) cooperation; and 7) corporate social responsibility (CSR).

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.605-618
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• 2021

The use of human resources determines the success of enterprises. This study applies the questionnaire design method to analyze the relationship between job stress, job satisfaction, and job performance, noting that few studies have comparatively examined these variables between industries, especially between high-tech and traditional industries. The proposed assessment model in this study can facilitate decision-makers' ability to make the optimal business decisions through their personnel systems, thereby improving employee satisfaction and increasing job performance. This study found that in the traditional and high-tech industries, some demographic variables have significant differences in the job stress, job satisfaction and job performance, but the demographic variables that can significantly affect the differences in these job's variables are differences between industries. This study acknowledges that job stress and performance have a significantly negative correlation, and traditional industries will have more stress factors than high-tech industries. In addition, support for traditional industries exist in job satisfaction and performance has a significantly positive correlation, but not in high-tech industries. Job stress for performance has a significantly negative correlation in two industries. This study reconfirmed the relationship between job stress, satisfaction and performance, found some differences in this relationship and the respective industrial characteristics.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.821-832
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• 2021

Economic deprivation of households remains a significant economic issue in the world. Researchers have shown great concern in identifying crucial factors to enhance poor households' socio-economic performance. Therefore, this paper aims to develop a new conceptual framework to investigate the influence of different microfinance services on households' socioeconomic performance using moderated mediation analysis of various crucial factors. Focus-group interviews with managements of the microfinance institution, i.e. Amanah Ikhtiar Malaysia (AIM), and a systematic literature review were conducted for this purpose, and a new framework for the future study has been developed. The result from focus-group interviews and systematic literature review propose microfinance financial services, training programs, and business coaching as independent factors, whereas household socioeconomic performance as a dependent factor in the proposed model. Specifically, this study provides the direction to scholars to empirically test the direct relationship between financial services and household socioeconomic performance and the indirect relationship between training programs, business coaching, and household socioeconomic performance. Further, microfinance institutions' service efficiency is also included as a moderator that can strengthen microfinance services' effectiveness. The study also provides useful implications for policymakers, financial institutions, households, micro-enterprises, and researchers to better understand microfinance interventions and household economic mechanisms.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.591-601
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• 2021

This study examined the effect of branding capability on business performance moderated by learning capability. This study was conducted with small- and medium-sized enterprises (SMEs) of coffee cafes in the ex-Besuki region, East Java, Indonesia, covering four regencies located around coffee-producing areas with geographical indication (GI) certification. 150 managers of coffee cafe were sampled using the census technique. Data were collected by questionnaires distributed to the coffee cafe managers. The data were then analyzed by using simple regression analysis, Moderation Regression Analysis (MRA) and Moderated MultiGroup Analysis (MMA). The results showed that learning capability positively and significantly affect business performance, and learning capability moderated/enhanced the effect of branding capability on business performance. The findings of this study suggest that branding capability and learning capability play a crucial role in the performance of coffee cafe business especially in the dynamic environment. Coffee cafe managers need to take concrete steps to improve their branding capability and learning capability and they also need to improve their ability to interact with their environment and be committed in managing the coffee cafe. Therefore, it is imperative that the role of branding capability and learning capability be optimized in order to improve the business performance of the coffee cafe.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.447-456
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• 2021

State-Owned Enterprises (SOEs) are business entities that are owned mainly by the state. Good financial governance (GFG) is as important for SOEs as for the private sector companies. Prudence and GFG can affect the value of the company. This research aims to test the impact of macroeconomics, investment decisions, and financing decisions on prudence, Corporate Social Responsibility Disclosure (CSRD), dividend policy, and company value of SOEs registered on the IDX from 2014-2019. GFG and financing decisions are moderating variables. The population in this study is 16 SOEs listed on the Indonesia Stock Exchange from 2014-2019. The research method is quantitative and uses Partial Least Squares (PLS), which is an approach to Structural Equation Models (SEM) that allows researchers to analyze the relationships simultaneously. The results showed that macroeconomic factors, investment decisions, financing decisions, and prudence directly affect the company's value. However, CSRD and dividend policy directly do not affect the company's value. Prudence can mediate the influence of financing decisions on company value. GFG moderates the relationship between prudence and company value. Thus, GFG is key to producing compliant regulatory reports and disclosures. GFG aims at facilitating effective monitoring and efficient control of the business. Its essence lies in fairness and transparency in operations and enhanced disclosures for protecting the interest of different stakeholders.

• Korea Trade Review
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• v.44 no.4
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• pp.129-151
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• 2019

The purpose of this study is to determine the Mediating Effects of Job Engagement between Perception in Compensation and Innovation Behavior in Chinese Enterprise Workers. The empirical study was conducted by a questionnaire survey on 700 workers in companies located in the southern area of China. The statistical analysis results revealed the following. First, the perception in compensation of Chinese workers has significant positive effects on the innovation behaviors. And intrinsic compensation has more relative significant effects than extrinsic compensation. Second, the perception in compensation has significant positive effects on the job engagement. In this case, extrinsic compensation has more relative significant effects than intrinsic compensation does. Third, job engagement of workers has significant positive effects on the innovation behaviors. Fourth, job engagement has mediating effects between perception in compensation and innovation behaviors. In conclusion, for the sustainable growth and competitive advantage of Chinese enterprises, it is important to perceive the needs of extrinsic and intrinsic perception in compensation of workers, and to design suitable compensation policies and programs to promote innovation behaviors and job engagement considering the distribution and procedural justice, and also to reflect the needs and job characteristics of workers.