PREFACE - staff.ui.ac.idstaff.ui.ac.id/system/files/users/rachmadi.agus/publication/icmem_2… · of Industrial Management at National Taiwan University of Science and Technology

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | i

PREFACE

It is with pleasure that the School of Business and Management,

Institut Teknologi Bandung (SBM ITB) concurrently organizes the

3rd International Conference on Management in Emerging Markets

(ICMEM) and the 2nd International Business Engineering

Conference (IBEC) in Bali, Indonesia. For the first time, SBM ITB

is trusted to host IBEC, the conference of the International

Association for Business Engineering Professionals (IABEP).

This year, the theme for ICMEM is “Digital Integration and

Business Sustainability in Emerging Markets” while the theme for

IBEC is “Business Engineering and Industry 4.0 in a Global

Economy.” Both highlight the phenomenon of digitalization in

today’s globalized world. For ICMEM specifically, it serves as an

avenue for academics and scholars to participate in providing

solutions and ideas for businesses, governments, and investors on

how to best manage uncertainties in emerging countries. Participants are expected to share their

insights through their paper and poster presentations. Participants can also register for a series of

workshops, which are the core activities of IBEC.

Collectively, with about more than 200 papers accepted for presentation at ICMEM and XXX

people registered in IBEC workshops, it is expected that participants benefit from the experience

of sharing in both conferences. Selected papers have the opportunity to be published in an

academic journal, some SCOPUS-indexed and some DIKTI-accredited.

Overall, I am grateful for the contribution of the committee members, partners, sponsors, authors,

and general participants, as well as others involved in the making of the conferences, including the

finalization of this Book of Abstracts.

Bandung, August 2018

Chairman of ICMEM 2018

Dr. Eng. Nur Budi Mulyono

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ICMEM & IBEC 2018 CONFERENCE PROGRAM

Wednesday, 8th August 2018

Time Event Location

08.00 - 09.00 ICMEM Registration Pre function

09.00 – 09.30 Opening speech : Prof. Sudarso Kaderi Wiryono Ballroom ( Plumeria 1,2,3)

09.20 – 10.00 Keynote Speech

10.00 – 10.30 Coffee Break

10.30 – 12.00 Panel Session: Prof. Kung-Jeng Wang; Dr. Deddy Priatmodjo K.; Dr. Raoul Oberman

Moderator: A. Taschner

Ballroom ( Plumeria 1,2,3)

12.00 – 13.30 Lunch Break

13.30 – 15.00 Poster Presentation Ballroom ( Plumeria 1,2,3)


15.15 – 17.20 Industrial Gathering from BNI and Mandiri

Moderator: Dr. Yunieta Anny Nainggolan

Hibiscus 1 & 2

Thursday, 9th August 2018

Time Event Location

08.00 – 09.00 ICMEM Registration Pre function

09.00 – 10.00 Paralel Session 1-4 Hibiscus, Gustavia, Gardenia,

Michelia, Magnolia, Amhertia

2

09.30 – 10.30 IBEC Registration Pre function


10.30 – 10.45 Welcoming Speech: Elected Governour I Wayan Koster Ballroom ( Plumeria 1,2,3)

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10.45 – 11.00 IBEC Opening Speech: Prof. Sudarso Kaderi Wiryono

11.00 – 11.15 IBEC Opening Speech: A. Taschner

11.15 – 12.15 Keynote IBEC : Hendrik Brumme

12.15 – 13.30 Lunch Break

13.30 – 15.00 IBEC Panel Session: H. Brumme, E. Sweeny, A Budiman,

M.D. Tangkas.

Moderator: Yudo Anggoro Ph.D and A. Taschner

Ballroom ( Plumeria 1,2,3)


15.30 – 17.30 IBEC Workshop 1A

Opportunities of Industry 4.0 for Business Models and

Processes

(Daniel Palm, ESB Business School )

Hibiscus

IBEC Workshop 1B

Blockchain Technology

(Mohd Ridzuan Bin Darun, Universiti Malaysia Pahang)

Amhertia

15.30 – 17.35 Parallel Session 1- 4 Gustavia, Gardenia, Michelia,

Magnolia

Friday, 10th August 2018

Time Event Location

08.00 – 09.00 ICMEM & IBEC Registration & morning coffee Pre function

09.00 – 11.30 Paralel Session 1-8 Hibiscus 1, Hibiscus 2,

Gustavia, Gardenia, Amhertia

1, Amhertia 2, Michelia,

Magnolia

09.30 - 11.30 IBEC Workshop 2A

The Global Maker Movement and the Future of Industry

(Martin Grossman, Bridgewater State University )

Plumeria 1

IBEC Workshop 2B Plumeria 2

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Industry 4.0 and Modern Supply Chain Management

(Edward Sweeney, Aston University )

11.30 – 13.30 Extended Lunch Break

13.30 – 15.30 IBEC Workshop3A

Industry 4.0 in manufacturing and logistics: economic and

technological barriers and drivers for automation and

robotics

(Wolfgang Echelmeyer, ESB Business School)

Plumeria 1

IBEC Workshop 3B

Big Data Analytics

(Nur Budi Mulyono, Institut Technologi Bandung, + Alfred

Budiman, Samsung R&D)

Plumeria 2

13.30 – 15.30 Parallel Session 1- 8 Hibiscus 1, Hibiscus 2,



Magnolia


15.45 – 17.20 IBEC Workshop Closing Session

Business Engineering and Industry 4.0 in a Global

Economy - The Way Forward

Workshop hosts+ facilitators, workshop participants

Moderator: A. Taschner

Plumeria 1& 2

16.00 – 17.45 Paralel Session 1- 8 Hibiscus 1, Hibiscus 2,



Magnolia

18.00 – 20.45 Gala Dinner and awarding night Main pool side / ballroom

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SPEAKERS’ PROFILES

Prof. Dr. Hendrik Brumme

Hendrik Brumme (Doctorate, Erasmus University; Diplom-

Wirtschaftsingenieur, Karlsruhe University) has been President of

Reutlingen University since 2012. Previously, he served as Vice-

President at the same institution for a five-year term. During the 16

years of industrial experience at Hewlett Packard, he held a number

of senior management positions. From 1998 to 2004, he was Director

of Operations and Head of the European Enterprise Systems plant in

Germany with an annual turnover of $US 2.5 bn. This manufacturing

facility won several industrial awards for excellence. His teaching and

research focus is in the fields of supply chain management; logistics

planning as well as factory management and development.

Prof. Kun Jen Wang

Professor Kun Jen Wang is a distinguished professor in Department

of Industrial Management at National Taiwan University of

Science and Technology. His research interest are Medical

Informatics, Supply Chain Management, Service Science and

Innovation, Technology and Operations Management,

Computational Intelligence in Production Economics. He has done

many research project, among them more than 40 projects were

sponsored by NSC, Top university grant project, Taiwan Tech, and

industries. He also has a research project with topic a novel

decision-support model of demand fulfillment and resource

allocation for improving capital and capacity efficiency in TFT-LCD industry, as well as Taoyuan

International airport city and logistics industry planning. He has been awarded NTUST outstanding

research award, NTUST excellence teaching award, and CIIE paper award for his excellence work

in his research area. In addition, he has many publications, such as 60 referred journal papers

including 40+ SCI/SSCI papers (IEEE Transactions on Systems, Man, and Cybernetics, IIE

Transaction, European Journal of Operational Research etc.), 3 US patent, and 3 Taiwan patents.

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Deddy P. Koesrindartoto Ph.D

Deddy Koesrindartoto is an Assistant Professor at the School of

Business and Management, Institut Teknologi Bandung. (SBM ITB).

He is an Economist by training, received a Ph.D. in Economics with

a minor in Statistics, and an MSc. in Industrial Engineering, all from

Iowa State University. He also earned a first degree in Electrical

Engineering from ITB, Bandung. Currently he is the Head of Capital

Market and Investment Laboratory and the Head of Kresna – SBM

ITB Financial Trading Center, School of Business and Management

ITB. Prior to joining SBM ITB in 2005, he was a Research Fellow at

the Center for Computational Finance and Economics Agents

(CCFEA) at the University of Essex, UK. He spent three years working for energy services

industries before pursuing graduate studies. Corporate Finance, Investment Management, Capital

Markets, Statistics for Business, Complex Adaptive Systems, Microeconomics, and

Macroeconomics are among Deddy’s present and past teaching assignments.

Prof. Dr. Edward Sweeney

Professor Ed Sweeney is Professor of Logistics and Systems at

Aston University in Birmingham, UK and Director of the Aston

Logistics & Systems Institute. He is an experienced researcher with

over 150 publications in the form of books, book chapters, journal

papers and articles to his name. He also sits on the editorial boards

of several leading academic journals and currently chairs the

Logistics Research Network (LRN), the UK’s leading network of

scholars in the supply chain field. Ed has worked and lectured in

over 50 countries and collaborated with many of the world’s leading

companies. His current work focusses on the development of

sustainable and resilient global supply chain architectures.

http://cmil.sbm-itb.net/



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Alfred Boediman, Ph.D

Alfred Boediman is an information technology practitioner who has

been in the IT world for decades. He is an experienced senior

management who has implemented changes to answer business and

technology needs across a number of areas in the Software R&D and

Telecommunication sectors. Alfred Boediman, PhD is also an

Adjunct Professor in University of Chicago Graduate School of

Business - Asia Campus, he holds degrees from University of

Indonesia, Vrije Universiteit Brussel, RIT and UC Booth School of

Business. He got his PhD degree in Econometrics & Statistics

from the University of Chicago. His postdoctoral research focuses

on examining the neuro-statisical approach in derivatives financial exchange with combination of

multi layered market sentiment. He currently serves as Vice President of Samsung Research

& Development Indonesia, he also teaches business at the famous American university,

University of Chicago. Besides being successful in his career, he is also an individual who has a

strong passion in education. He is also advisor for Polsky Center of Entrepreneurship in the

University of Chicago, while enjoying organization activities like biking, archery and cooking in

his free times.

Ir. I Made Dana M. T. MSi

Ir. I Made Dana M. Tangkas, MSi also known as Made Tangkas

was born on October 13, 1965 from Pupuan Village, Tabanan

Regency, Bali. A lot of achievements and positions have been

achieved by Made Tangkas. Besides currently serving as Director

of PT. Toyota Indonesia (PT. TMMIN), Made Tangkas had

served as Vice President of Toyota in the Asia Pacific region for

the period of 2009-2012 and he was also a board member of Astra

Bina Ilmu Foundation (YABI) and Astra Dharma Bhakti

Foundation since 2009 until now. Having expertise in automotive

industry, Made Tangkas is often invited as a Guest Lecture at

several well-known universities including ITB, IPB, UI and ITS. He has also worked with Jakarta

Government under the leadership of Ahok in CSR and the improvement of Mampang, intersections

in Jakarta for traffic safety on November 18 th 2013. Other than being busy in the automotive

industry, Made Tangkas likes to write, therefore in 2010 Made Tangkas published a book titled

“Building The Best Indonesia Business Way”; with DR. (Hc) Ary Ganjar agustian.

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | viii

Dr. Raoul Oberman

Raoul Oberman is a leadership coach and an angel investor. Raoul

coaches Family Owned Business owners and their families in South

East Asia. Selectively he invests in early stage Ag-tech and Data-

analytics ventures and helps them accelerate their growth. Raoul

dedicates a portion of his time to non-for-profit organizations, e.g.,

Endeavor Indonesia, Partnership for Sustainable Agriculture

Indonesia, and the Australia Indonesia Center As a board member

and mentor of Endeavor, Raoul supports the creation of a start-up

ecosystems in Indonesia through mentoring. As a board member and

shareholder of Kaiima, he helps an Israeli Agri-tech company

spearhead sustainable breeding technologies globally. In 2014 Kaiima was nominated by MIT as

one of the 50 smartest companies. Raoul is a Director Emeritus, McKinsey since end of 2013.

During 23 years with McKinsey he has worked in Asia, Northern Europe and the Middle East. For

the last 3 years he led McKinsey’s operations in Indonesia. For 5 years Raoul globally led the

leadership training programs for young McKinsey partners. Raoul holds a PhD in Economics,

Frankfurt University. He is US/Dutch born and grew up in Germany. He lives with his wife in

Jakarta, Indonesia. They have four children who live in Europe and Asia.

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SCIENTIFIC COMMITTEES

Prof. Iftekhar Hasan Fordham University, USA (Finance)

Prof. Amine Tarazi University of Limoges, France (Finance)

Prof. Rezaul Kabir University of Twente, Netherlands (Finance)

Prof. Arifin Angriawan Purdue University Calumet, USA (Strategic, Organization

Studies, Finance)

Prof. Charles Rarick Purdue University Calumet, USA (International Business)

Prof. Emmanuelle Nys University of Limoges, France (Finance)

Prof. Sudarso Kaderi Wiryono Institut Teknologi Bandung, Indonesia (Finance, Risk

Management)

Prof. Togar M. Simatupang Institut Teknologi Bandung, Indonesia (Operations and Supply

Chain Management)

Prof. Dr. Ir. Dermawan Wibisono Institut Teknologi Bandung, Indonesia (Performance

Management)

Prof. Jann Hidajat Tjakraatmadja Institut Teknologi Bandung, Indonesia (Knowledge

Management)

Prof. Dr. Utomo Sarjono Putro Institut Teknologi Bandung, Indonesia (Decision Science)

Prof. Dr. Sudrajati Ratnaningtyas Institut Teknologi Bandung, Indonesia (Entrepreneurship and

Technology Management)

Prof. Yoshiyuki Matsuura Yamaguchi University, Japan (Operation, Finance)

Prof. Irwan Ekaputra Universitas Indonesia, Indonesia (Finance)

Dr. Zaafri A. Husodo Universitas Indonesia, Indonesia (Finance)

Dr. Ivan Butar Butar Sampoerna School of Business, Indonesia (Management,

Leadership)

Dr. Ubaidillah Zuhdi Gdansk University of Technology, Poland (Economics)

Irwan Trinugroho, Ph.D Universitas Sebelas Maret, Indonesia (Finance)

Gatot Yudoko, Ph.D Institut Teknologi Bandung, Indonesia (Operation Management)

Deddy P. Koesrindartoto, Ph.D Institut Teknologi Bandung, Indonesia (Economics, Finance)

Dr. Mursyid Hasan Basri Institut Teknologi Bandung, Indonesia (Operation Management)

Dr. Isrochmani Murtaqi, S.E.,

M.Acc. Institut Teknologi Bandung, Indonesia (Accounting)

Dr. Ir. Yuni Ros Bangun, MBA Institut Teknologi Bandung, Indonesia (Management and

organization)

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HOTEL ROOMS MAP

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TABLE OF CONTENTS

PREFACE ........................................................................................................................................ i

ICMEM & IBEC 2018 CONFERENCE PROGRAM ................................................................... ii

SPEAKERS’ PROFILES ................................................................................................................ v

SCIENTIFIC COMMITTEES ....................................................................................................... ix

HOTEL ROOMS MAP................................................................................................................... x

TABLE OF CONTENTS ............................................................................................................... xi

Cost-Based Analysis of Conventional and Autonomous Mobile Services in Indonesia

Meygantara Faozal Holieffa, Prawira Fajarindra Belgiawanb 2

Does Family Ownership Affect The Firm’s Abnormal Audit Fees ?

Rika Lusiana Surya a, Fitrianyb 3

Earnings Management and Operating Performance

Ronald Tehupuringa, Amor Marundab 4

The Effect of Audit Quality and Corporate Governance on Tax Evasion Practices in State-

Owned Enterprises (SOEs) in Indonesia

Muhammad Laras Widyantoa, Sri Kurniawatib, Nuzulul Hidayatic, Eva Heriantid 5

The Influence of Family Firm on Corporate Tax Avoidance: In Indonesian Listed Companies

after Tax Amnesty Program

Reza Radityaa, Zuliani Dalimuntheb 6

Tax Uncertainty, Stock Market Liquidity, Earnings Management on Firm’s Investment:

Evidence From Indonesia

Validita Kurniawana, Amrie Firmansyahb 7

The Effect of International Financial Reporting Standards (IFRS) Adoption on the Earnings

Management of Oil Companies which are Experiencing Oil Price Decline Shock

Bintang Yosua Ronibasaa, Sylvia Veronica Siregarb 8

The Effect of Political Connection and Earnings Management on Management Compensation

Riky Rizki Junaidia, Sylvia Veronica Siregarb 9

The Effect of Audit Quality toward the Relationship between Political Connection and Real

Earnings Management Eva Herianti a, Arna Suryanib, Amor Marundhac 10

The Effect of Temporary Book-Tax Differences on Future Earnings Changes: The Moderating

Role of Earnings Management Filliani Arinta Wahyunia, Sylvia Veronica Siregarb 11

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Interaction Model of Indonesian Agri-business

Liane Okdinawatia, Yos Sunitiyosob, Togar M. Simatupangc, Pri Hermawand, Pathmi Noerhatinie 13

Developing Policies for Domestic Gas Industry Sustainability using Soft System Dynamic

Model Approach

Yos Sunitiyosoa, Andika Mahardikab, Shimaditya Nuraenic 14

The Effect of Local Community Perceptions to the Degree of Participation in Sustainable

Tourism Development Salsabila Firdausiaa, Yuliani Dwi Lestarib 15

Acquisition Analysis of Star Energy Geothermal Holdings by PT. Barito Pacific Tbk. Amri Zeina, Subiakto Sukarnob 16

Acceptance and Use of Information Technology: Understanding of Information System for

Indonesia Humanitarian-relief Operations

Made Irma Dwiputrantia, Adriyani Oktora b, Liane Okdinawatic, Mohamad Nurkamal Fauzand, Dania

Sitadewie 17

Are Women Entrepreneurs Tech-Savvy? Exploring the Adoption and Use of ICT by Women-

Owned SMEs in Bandung, Indonesia

Wawan Dhewantoa, Yuliani Dwi Lestarib, Sri Herlianac, Salsabila Firdausiad 18

Moderation Role of Gender in the Relationship between Service Quality and Students’

Satisfaction

Saad Aziz Al-Otaibia, Sha’ri Mohd Yusofb, Wan KhairuzamanWan Ismailc 19

Strategy to Optimize Business Value of Marginal Gas Field in Onshore Central Java

Indah Anggrainia, Agung Wicaksonob 20

Vendor Selection of Decision Engine Platform at Bank BTPN Using AHP Model Yerrikho Bergasa, Yos Sunitiyosob 21

Forecast Demand & Aggregate Planning for El Farm’s Healthy Juice Product Zed Ridlo Ichsan Asyharia, Desy Anisya Farmaciawatyb 22

Tomato Supplier Sourcing Under Performance Measurement System Using Analytical Hierarchy

Process Approach

Dania Sitadewia, Pathmi Noerhatinib, Dicky R. Munafc, Dermawan Wibisonod, Gatot Yudokoe, Liane

Okdinawatif 23

Business Strategic Plan to Reduce the Non-Performing Loan of a Bank (Case Study at Private

Bank in Bandung, West Java) Everlin Novia Lieaa, Uke Marius Siahaanb 24

Proposed Strategy for New Home Furnishing Business in Indonesia

Festy Lalita Niramayaa, Dona Saphirantib 25

Halal Hotel Indonesia: Concept, Practice, Prospects, and Challenges26

Alya Variana, Fitri Apriliantyb 26

Evoking Nostalgic Feeling of Gen Y through Marketing Communication Tools: Nostalgic

Marketing and Viral Intention

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Cut Putri Pohan, Sri Rahayu Hijrah Hatib 27

Strategic Analysis of Gross Split PSC Regulation in Indonesia’s Oil and Gas Industry Upstream

Sector Alliya Rahmaniaa, Harimukti Wandeborib 28

Escalating Nile Tilapia Aquaculture Business of Fish Farmer Association in Subang-West Java

through Inclusive Business Model Abdul Rasyid Romadhonia, Mustika Sufiati Purwanegarab 29

Implementing Strategic Capacity Planning in Defining Machinery Strategy for Offshore

Manufacturing Expansion Project Lucky Kosasiha, Gatot Yudokob 30

Do different knowledge sourcing activities influence innovation decision and innovation

performance differently? An exploratory study on Indonesian innovative firms

Arif Hartonoa, Ratih Kusumawardhanib 31

Designing Opportunity Model on Service Science Concept and Sharing Economy Perspective for

Bus Transportation Companies

Batara Parada Siahaana,Togar Mangihut Simatupangb, Liane Okdinawatic, Santi Novanid, Pri

Hermawane 32

Strategic Holding Scenario for State-Owned Enterprises in Indonesia Mining Sector Towards

International Market Competition

Tri Putri Lenggogenia, Yudo Anggorob 33

Business Sustainability Analysis of Telkom Indonesia through Alternative Selection for Fixed-

Line Business (Case Study of PT. Telekomunikasi Indonesia Tbk) Rizky Amalia Sinulinggaa, Asep Darmansyahb 34

Sustainable Development of Indonesia Slow Fashion Businesses: Customer Value Approach

Devia Rizkya, Dina Dellyanab 35

The Determinants of Point of Sales System Adoption Perceived by Micro Small Medium

Enterprises in West Java

Tarindra Radityaa, Sylviana Maya Damayantib 36

The Effectivity of Gamified Learning Method on Learning Outcomes

Excelita S. Dwirajania, Shimaditya Nuraenib 37

Designing A Nonprofit Organization in Order to Produce A Better Organizational Effectiveness:

Tiup Lilin

Fairuz Rifqi Abdurahmana, John Wellyb 38

Analysis on the Impact of Corporate Social Responsibility in Product-harm Crisis of Tobacco

Industry in Indonesia; A Study Case of PT. Djarum

Andi Magie Fitrahnurliaa, Prawira Fajarindra Belgiawanb 39

The Impact of Corporate Social Responsibility of PT Kahatex towards The Local Community

Perceptions And Attitudes

Gina Anggiria and Anggara Wisesab 40

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Modelling Optimum Quantity of Various Currency Denominations of Indonesia Government

Bonds

Achlanudin Yusuf, Ahmad Danu Prasetyo 42

Investment as Part the Human Development Model in Achieving Society Welfare in West Java,

Indonesia Using Logistic Regression (IFLS5) Adam Julian Faturrahmana, Faizah Syihabb 43

Research, Education and Development Studies in Indonesian Creative Economy Policy

Dina Dellyanaa, Isti Raafaldinib, Emilia Fitriana Dewic 44

Building and Testing Indicators of Trust in B2B International Market: A Preliminary Study of

Indonesian Exporters

Ervyna Rizki Febriannya, Mustika Sufiati Purwanegarab 45

Financial Performance Analysis of Indonesian Listed Tobacco Company Regarding the Graphic

Health Warning Regulation

Garisya Diane Savitria, Ahmad Danu Prasetyob 46

Two Edges Bilateral Trade of Indonesia: Assessing Export and Import with Gravity Model M. Rifhal Julian 47

Regional Migration and Remittances: Evidence from Indonesia

Achmad Fajar Hendarman 48

Indonesia’s Trade Facilitation amidst Singapore and Hong Kong under Digital Era

Zamroni Salima, Nika Pranatab, Kanetasya Sabillac 49

The impacts of Oil Price Shocks on Economies and Mining Index: Newest Time Series Evidence

for Indonesia as Emerging Market Setiawati, Marlaa, Wiryono, Sudarso Kaderib 50

Implementing Service Science in Circular Economy: The Case of Organic Fertilizer Producer

Ruth Nattasshaa, Togar M. Simatupangb, Yuanita Handayatic 51

Mapping of Coastal Tourism Destination and The Factors Influencing Visitations of Domestic

Tourists: A Case of Pangandaran

Ibrahim Rashida, Santi Novanib, Lidia Mayangsaric 52

Economic Benefit of Good Public Governance the Case of Local Government in Indonesia

Yuh Rohana DPS Melialaa, Ratna Wardhanib 53

Brand Equity Revisited: An Exploration of Branding for SMEs among Student Entrepreneurs

Andrianto Tanuhardjoa, Lidia Mayangsarib 55

Understanding Islamic Urban Women Entrepreneurial Association in Indonesia: A Service

Science Perspective

Iqbal Fauzi Akbar Firdausa, Utomo Sarjono Putrob, Santi Novanic, Pri Hermawand, Lidia Mayangsarie

56

The Exit of entrepreneurial team: Reasons and Consequences

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Zulaicha Parastutya, Dolores Miskovicb 57

Digital competencies on the model of SMEs fashion entrepreneur competencies in the era of

Asean Economic Community (AEC): a conceptual framework

Mira Rochimi Mutiaraa, Ina Primianab, Joeliaty Joeliatyc, Martha Fani Cahyanditod 58

Developing a Creative Enterprise in a Creative City (Case Study: Kampong Dago Pojok,

Bandung) Salfitrie R. Maryunania 59

Entrepreneurial Passion Domains Small and Medium Enterprises (SMEs): A Case Study of

Buriram Province, Thailand

Adisak Suvittawat 60

Should SMEs Diversify? An Exploratory Study

Nia Kurniati Bachtiar 61

SME Growth and Sustainability Conceptualization in Indonesia

Aang Noviyana Umbaraa,c, Takashima Ryutab, Wawan Dhewantoc 62

Factors Affecting Intellectual Assets Management in SMEs

Safrani Nurfatiasaria, Nurshareena Azreenb, Eko Agus Prasetioc, Yoshiyuki Matsuurad 63

The Investigation of SMEs' IP Management at Different Growth Stages: A Preliminary Study in

SMEs

Eko Agus Prasetioa, Dina Dellyanab, Safrani Nurfatiasaric 64

Innovation Radicalness and Digitalization among Different Breeds of Entrepreneurs

Reza Ashari Nasutiona,Elis Qodariahb, Devi Arnitac, Linda Sendy Lediana Rusnandid 65

Customer Perception Influence towards Cash Flow Projection for Event Planner in Bandung

(Case Study: Seperti yang Diimpikan Event Planner) Nisita Nola Adalea Agmaa, Raden Aswin Rahadib 66

The Impact of the Fama-French 3-Factor Model and the Enterprise Value Multiple on Returns 68

Isrochmani Murtaqia, Sylviana Maya Damayantib, Raden Aswin Rahadic 68

Selecting Strategic Investment Financing for Expansion Shipyard Project in Batam

Adiel Andhika Putraa, Uke Marius Siahaanb 69

The Application of Minimum Demand Guarantee Scenario in Investment Analysis of Hospital

Expansion Project - Case Study Of XYZ Eye Hospital Nindya Kumala Dewiª,Taufik Faturohmanᵇ 70

Financing Assessment to Support Business Expansion of PT. Patra Jasa

Lolita Febriyanaa, Subiakto Soekarnob 71

Score Model (Case Study PT. Dirgantara Indonesia Aerospace) Rizella Tiaranitaa, Asep Darmansyahb 72

How do Public and Corporate Governance Associated with Performance? Empirical Evidence of

Indonesian Privatized SOEs

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Hilda Rossieta 73

Determinants Analysis of Net Interest Margin Using Bank-Specific Variables and

Macroeconomic Factors of Commercial Banks in Indonesia

Fachri Dwiansyaha, Achmad Herlanto Anggonob 74

Optimizing BRIlink Branchless Bank Model in Papakmanggu Village

Steven Hansa, Sylviana Maya Damayantib 75

Determinants of Capital Structure of Banking Sector in Indonesia: Case Study on Commercial

Banks in Indonesia from 2008 to 2017

Nanda Bagus Nurhidayata, Achmad Herlanto Anggonob 76

Financial Literacy and Demographic Factors Impact on Investment towards Undergraduate

Students in Bandung

Nathania Kristianaa, Ahmad Danu Prasetyob 77

Identifying the Proper Crowdfunding Design for Entrepreneurs in Indonesia

Jennifer Yusan Changifera, Deddy Priatmodjo Koesrindartotob 78

Bank Capital Structure and Adjustment Speed: Evidence from Indonesian BUBA3 and BUBA4

Banks (Case Study: Period 2008-2017) Randy Perdana Lawrentiusa, Achmad Herlanto Anggonob, Atika Irawanc, Imlati Helmid 79

Gas Field Development Alternatives Evaluation Using Real Options – Case in Production

Sharing Contract in Indonesia80

Dony Ilham Ratmana, Erman Arif Sumiratb 80

Firm-Specific Determinants on Leverages Across Sectors in Indonesian Listed Companies

Satriyo Budi Cahyonoa, Arvinder Singh Chawlab 81

Family Ownership Structure, Leverage, and Capital Expenditure in the Emerging Indonesian

Market Miranda Hapsaria, Junino Jahjab 82

Analyzing Campaign Characteristics Influenced Backers Decision to Fund in a Reward-Based

Crowdfunding to Create Campaign Strategy in Indonesia: A Preliminary Study

Dita Anindya Kartikaa, Deddy Priatmodjo Koesrindartotob 83

Determinants Bank Deposits by Using Bank Specific Variables and Macroeconomic Factors of

Commercial Banks in Indonesia

Fasya Nur Fadilah Putria, Achmad Herlanto Anggonob 84

The impact of political connection on cost of debt with corporate governance as a moderating

variable: evidence from Indonesia

Ratna Emiliaa, Ratna Wardhanib 85

Speed of Adjustment towards Capital Structure Target in Indonesian Property and Real Estate

Companies

Nadia Nurlaila Badrinaa, Subiakto Soekarnob 86

Relationship between Childhood Consumer Experience and Financial Literacy Index of Young

Adult Farissa Anindya Putria, Sylviana Maya Damayantib 87

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Not statistically significant, what’s next? An Implementation of Fuzzy Clustering In Assessing

the Impact of Foreign Investors’ Presence on Stock Performance

Aurelius Aarona, Sudarso Kaderi Wiryonob, Deddy P. Koesrindartotoc 88

The Effect of Chargeback Components and Transaction Cost in Capital Budgeting Development

of Information Technology Projects (Case Study of PT Bank Mandiri, Tbk.) Rully Feranataa, Zalmi Zubirb 89

Which Is The Better Valuation Model and What Factors Drive The Error? Case of Indonesian

Capital Market Pajar Huzaifaha, Yunieta Anny Nainggolanb, Yoshiyuki Matsuurac 90

What Factors that Influence Investor towards Peer-to-Peer Lending? Survey of Graduate

Students in Indonesia

Ramadhanoraa, Yunieta Anny Nainggolanb 91

Stock Valuation PT Astra Agro Lestari, Tbk - Impact of CPO Price Volatility

Denies Chrisstevena, Taufik Faturohmanb 92

Finding Proper Peer-to-Peer Lending Student Loan Scheme for College Students In Indonesia

Anindiya Asri Asyifaa, Deddy Priatmodjo Koesrindartotob 93

Determinants of Capital Structure: Evidence from Indonesia’s Listed Firms

Feby Naomi Margareth Pasaribua, Athanasios Andrikopoulosb 94

Revaluation of Strategic Alliance in Insurance Sector (Case Study at PT Penyedia Jasa

Indonesia) Mega Putria, Taufik Faturohmanb 95

Defining Proper Alternative Crowdfunding Design for Startups in Indonesia: Lesson Learnt from

America and Middle East Countries

Nisa Khaira Lusfiᵅ and Deddy Priatmodjo Koesrindartotoᵇ 96

Exploring the Linkages between Financial Inclusion and Economic Growth in Emerging

Countries

Milan Malinda Mardiyyaha, Sylviana Maya Damayantib 97

The Influence of Bank Spesific and Macroeconomic Variable on Non-Performing Loan (Case

Study: 19 Commercial Banks in Indonesia 2008-2017) Lazuardi Yusril Ihzaa, Achmad Herlanto Anggonob 98

Risk Management of Domestic Remittance Business (Case Study: Karawang Post Office) Aulia Nazala Ramadhania, Erman Sumiratb 99

The Determinant of Return on Asset and Return on Equity Using Bank Specific and

Macroeconomic Factor of 19 Commercial Banks Period 2007-2018

Theresia Rosa Imanuellaa, Achmad Herlantob 100

Influence of Fathers Attribute to the Financial Literacy of their Children

James Christopher Santosoa, Ahmad Danu Prasetyob 101

Maqasid Shariah Index, Banking Risk and Performance Cases in Indonesian Islamic Banks

Sutrisnoa, Agus Widarjonob 102

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xviii

The Determinant of Indonesian Investors Towards Real Estate Investment Trust Ahmeidy Yusyaa, Yunieta Anny Nainggolanb 103

Do Sin Companies Purify Their Prohibited Business Through Corporate Social Responsibility?

Jane Lukmana, Yunieta Anny Nainggolanb 104

Psychometric Credit Scoring in Indonesia Microfinance Industry: A Case Study in PT Amartha

Mikro Fintek

Hartarti Rabeccaa, Novan Dwi Atmajab, Shahnaz Safitric 105

Analysis of Government Regulation and Policies towards Coffee Farmers’ Problems in West

Java: Case in Coffee’s Farmers in the Regency of Garut, West Java

Mustika Sufiati Purwanegaraa, Widhyawan Prawiraatmadjab, Nurrani Kusumawatic, Sarah Hovia

Jannatunnisad 106

How ASEAN Economic Community (AEC) Progress From Equity Market Correlation

Ossi Ferli 107

Dividend Preference: A Survey of Undergraduate Students

Febianti Hersana, Yunieta Anny Nainggolanb 108

The Effects of Foreign Investors towards Liquidity of Stock Listed In Emerging Stock Market:

Evidence from Indonesia LQ45 Indexs

Andre Agasi Danuajia, Ahmad Danu Prasetyob 109

Investigating Effect of Appointing Board of Commissioner Member with Military/Police

Background on Firm Value and Performance (Empirical Investigation on Indonesia Listed Coal

Mining Company Year 2006 – 2016) Gian Rifa Wahyudia, Mandra Lazuardi Kitrib 110

Capital Market Investment Guidelines for Less Literate Investor in Indonesia

Jane Audityaa, Mandra Lazuardi Kitrib 111

The Determinants Analysis of Credit Using Bank Specific Variables and Macroeconomic

Factors of Commercial Banks in Indonesia Period 2008-2017

Dinda Risza Riania, Achmad Herlanto Anggonob 112

Economic Feasibility Study of Clay, Dolomite, and Kaptan Factory of PT XYZ

Nadiah Pristaniaa, Ahmad Danu Prasetyob 113

The Communication Analysis among Stakeholders in Management of Children Education by the

Poor Scholarship as Human Capital to Grow Quality Characteristics of Educational Basics

Abubakar Iskandara,Maria Fitriahb, R.Akhmad Munjinc, Ike Atikah Ratnamulyanid 115

The Importance of Business Ethics to Ensure the Certainty of Law in Doing Business Activities

in Indonesia

Yoyon Mulyana Darusman 116

Self-Disclosure and Knowledge Sharing: a Theoretical Framework

Diaz Satriavi Yudhistiraa, Dedy Sushandoyob 117

Efforts to Manage Creative People in Startup Company in Indonesia

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xix

Hana Shabira Fauziaha, Donald Crestofel Lantub 118

Antecedents of Service Sweethearting

Erna Fitriastutia, Badri Munir Sukocob, Fiona Niska Dinda Nadiac, Yusak Anshorid 119

Exploring Highly Mobile Indonesian Professionals’ Views on Life

Askadhia Khalishah Soemantoroa, Brian Milsomb 120

Designing Compensation System to Increase Employee Performance in Cafe Asix

Dikki Palmina, Nur Arief Rahmatshyah Putrantob 121

Developing Mission Model Canvas for Mission-Driven Organization Case Study Scholarship

Program of Indonesia Endowment Fund for Education (Lembaga Pengelola Dana Pendidikan)

Thanthowy Syamsuddina,Dina Dellyanab 122

Design Performance Management System for Flexible Organization in Telecommunication

Company (TELCO) Richard Alberto 123

The Effect of Internal Rivalry and the Presence of Coactions on Creative Performance

Jovi Sulistiawana, Nuri Herachwatib, Haniffan D. Baihaqqic 124

Perceived Organizational Career Management, Career Adaptation, and Career Satisfaction

Hasda Rahma Bellaa, Ida Bagus Gede Adi Permanab, Dewi Ulan Daric 125

Design Corporate University at Kompas Gramedia

Indra Irawana, Donald Crestofel Lantub 126

Understanding the Role of Employee Engagement on Organizational Culture within Business

School in the UK

Zerrin Astrantiaa, and Haseeb Shabbirb 127

Research Report on Corporate Political Action in Indonesia

Yuni Ros Banguna, Yani Kartika Wulandarib, Yudo Anggoroc 128

Designing the Delegation of Authority Process to Improve Empowerment Using Diane Tracy

Model in BPJS Ketenagakerjaan Regional Office West Java

Anindhita Chandradinia, Aurik Gustomo

b 129

Nurturing Knowledge Sharing: MRT Jakarta Case

Sapto Ashardiantoa, Andy Credo Sibueab 130

Basic Salary Recommendation for Warung Nasi Sunda Pakuhaji Atika Fatka Raihania, Nur Arief Rahmatsyah Putrantob 131

Developing Job Analysis in BUMDES Margabakti Persada to Decrease an Overlapping Job

between Members

Alyanissa Noor Alfadhilaa, Nur Arief Rahmatsyah Putrantob 132

Relationship of Performance Appraisal Quality towards Employee Performance in PT Pertamina

Mor III Jakarta Pusat Annisa Dea Septianaa, Achmad Fajar Hendarmanb 133

How does governmental institution affect the innovative activities of MNE?

Liza Aulia 134

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Learning Theory, Pedagogy, and Gamification: A Further Research

Hendarsyah Aditya Saptaria, Jann Hidajat T. b, Donald Crestofelc 135

Developing Career Resilience of Young Generations

Adi Indrayantoa, Sigit Wibowob, Titi Nurfitri, Ade Irma Anggraenic 136

The Antecedents of Reverse Knowledge Transfer in Franchise Network: the role of Franchisee

Autonomy and External Embeddedness

Yudhi Richarda, Rangga Almahendrab, Reni Rosaric 137

Fostering Competitive Advantages of Creative Industry through Information Technology

Innovation Adoption

Wawan Dhewantoa, Yuliani Dwi Lestarib, Sri Herlianac, Rafiati Kaniad 139

Six Sigma Approach to Fashion Small Medium Enterprise Lead Time Improvement Nur Budi Mulyonoa, Rheyna Sinatryab 140

Risk Analysis of Light Rail Transit Trackwork (A Study of PT. Wijaya Karya Beton)

Inez Saviraa, Yuliani Dwi Lestarib 141

Audit for Effectiveness & Efficiency Principle in Good University Governance Focused on

Alignment between Strategy Business with IT

Djoko C.U. Lieharyania, R.V. Hari Ginardib, Rita Ambarwatic 142

Analysis of Cost of Production Geothermal Development and Impact to the Geothermal Tariff in

Sumatra Island

Anggita Dwi Kristinaa, Yudo Anggorob 143

Assessing the Investment Plan and Financing Strategy for PT. XYZ

Nastassja Arinta Kirana Hardjomidjojoa, Mandra Lazuardi Kitri, S. T., MBAb 144

Online Flow Experience in Making Reservation at AirBnB: The Roles of Web Attractiveness,

Enjoyment, and Trust Sony Kusumasondjaja 145

Developing Seed Stage Start-up Valuation: Digital Business Case Study

Rizkya Laila Nursyahbania, Isti Raafaldini Mirzantib 146

Investigating business value for Internet of Things initiatives

Tony, Cheng-Kui Huanga, Chia-Yu Linb 147

Supplier Selection in Small Medium Enterprise Using a Factor Rating Methods Based on

Standard Quality Approach: Case Study of Viage Indonesia Company

Lirih Hartini Utamia, Desy Anisya Farmaciawatyb 148

The Effect of Virtual Reality on Visit Intention using TAM Framework

Nindy Ekasaputria, Daniel Tumpal Hamonangan Aruanb 149

Co-defining Bandung as City Tourism and Proposed Improvement Plan using Service Science

Perspective

Destiana Lovitarania, Manahan Siallaganb, Lidia Mayangsaric 150

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xxi

Electronic WOM Effectiveness from Online Social Network Perspectives

Nuriyah Syakielaa, Rachmadi Agus Trionob, Helman Arifc 151

On The Rise of Preference toward Made-To-Order Products: A Content Analysis Approach in

Online Forum Discussion

Qonit F. Adzkiaa, Lidia Mayangsarib 152

Business Strategy for Tarkam Application Based Business

Laksmi Rachmadita 153

A Proposed Over-The-Top Initiatives Cycle

Jemy Vestius Confidoa, Dermawan Wibisonoa,b, Yos Sunitiyosoc 154

Analyzing Intangible Benefits of Information Technology Service Desk from the Perspective of

Service Provider in Higher Education

Hanina Nur Ranishiaa, Anisah Herdiyantib, Sholiqc 155

The Antecedents of User Intention towards Digital Collaborative Consumption Platform in

Indonesia

Lukni Burhanuddin Ahmada, Reza Ashari Nasutionb 156

Aligning business engineering education with contemporary industry requirements

Hazel Gruenewald 157

Sentiment Analysis through Preliminary Big Data: a Beneficial Approach of Obtaining Large

Customer’s Insight for Knowledgeable Decision Making

Batara Parada Siahaana, Eko Agus Prasetiob, Togar Mangihut Simatupangc 158

Improvement of Headrace Tunnel Excavation Productivity at Jatigede Hydro Electric Power

Plant Project Ainanto Nindyo 159

The Influence of Event Planner Instagram Content to Customer Purchase Intention Case Study

of “Seperti yang Diimpikan” Event Planner Sofwatun Nidaa, Evy Rachmawati Chaldunb 161

Evaluating Sport Sponsorship Model Among Soccer Fans In Indonesia “Case Study Of Arema

Fc“

Rizky Aditya Maulanaa,Fitri Apriliantyb 162

The Effect of Internet Penetration towards Online Display Advertising Ecosystem in France and

Indonesia

Siti Nurlaila 163

Social Media and Luxury Brand: What Luxury Watch Brands Need to Know When On

Instagram

Armansyah Adhityo Pramonoa, Fitri Apriliantyb 164

The Impact of Using Indonesian Supermodel on Advertising to Consumer Buying Behavior on

Indonesian Fashion Products

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Almira Tri Auliaa, and Yulianto Suhartob 165

The Impact of Instagram Content towards Purchase Intention in Fashion Bag Industry Case

Study: reyn.id

Valencia Indinaa, Evy Rachmawatib 166

Critical Success Factors of New Market Channel Collaboration: Preliminary Evidence from

West Java Cooperatives

Jessica Setiawana, Mustika Sufiati Purwanegarab 167

Developing Value Co-Creation Scale along Customer Journey in Banking Industry

Nuri Wulandaria, Reza Azhari Nasutionb 168

Consumer Behaviour of Indonesian Specialty Coffee Drinkers

Faris Izzi Hibaturrahmanab 169

Factors Affecting Customer Loyalty in Business-to-Business Sector (Case Study: CV. Restu

Jaya Sejati) Lydia Christiea, Atik Aprianingsihb 170

Analytical Hierarchy Process for Consumer Preference of Café Interior Design

Ricky Rahmadyansah Husnia, Dina Dellyanab 171

Efficiency Marketing Chain Analysis Of Sangkuriang Catfish (Case Study : Farmers In Parung

District, Bogor Regency) Abel Gandhya, Venty Fitriany Nurunisab 172

Farmers Knowledge and Brand Equity of Fertilizers

Prima Novandino Sharmaa, Mustika Sufiati Purwanegarab 173

The Study of Push and Pull Motivation Effect towards Willingness to Visit of Students in

Bandung: Case Study Ciletuh UNESCO Global Geopark, Sukabumi, West Java Indonesia

Hanif Abdurrahman Wicaksanaa, Herry Hudrasyahb 174

User Experience and User Interface Evaluation for Chat Bot Kiwari to Improve User Traffic in

BUMN Environment in Indonesia

Bella Dwi Jayantia, Maya Ariyantib 175

SWOT Analysis of Marketing Tourism in Leading Tourism Object of Bandung and Soppeng

Mutia Tri Satyaa, Gatot Iwan Kurniawanb, Muhammad Asdarc, Abdul Razak Munird 176

Influencing Factors of Consumers’ Intention to Reuse an Online Travel Agent’s Mobile

Application

Anggia Aryanditaa, Ira Fachirab 177

Millennials Online Buying Behavior on Sportswear Product Fatimah Azzahraha, Lidia Mayangsarib 178

Analysis of Factors’ Relationships with Brand Loyalty at Rumah Djuanda Yoga Studio

Ardhelia Triaratanaa, Atik Aprianingsihb 179

The Influence of Product Experience on Customer Loyalty of Frozen Food Product Made Fiona Dwi Utamia, Evy Rachmawati Chaldunb 180

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xxiii

An Analysis of the Influence of Service Quality Dimensions on Customer Satisfaction and

Customer Loyalty in Skin Care Clinic Industry

Syanita Febriantia, Annisa Rahmani Qastharinb, Prawira Fajarindra Belgiawanc 181

The Influences of Bundling Strategy towards Purchase Decision for Food and Beverages SMEs

in Bandung

Mega Erlinaa, Rendra Chaerudinb 182

Analyzing Factors That Influence Customer Loyalty of Ride-Hailing Application in Indonesia

Rafi Firmansyah Mustofaa, Ira Fachirab 183

Identification of eWOM Content Towards Consumer Purchase Decision In Bandung Start Up

Coffee Shops

Ayesha Aulia Fachiraa, Shimaditya Nuraenib 184

Consumer preference on user interface in mobile applications: case study of online transportation

applications Go-Jek and Grab in Bandung

Dania Rahmah Aisyaha, Budi Permadi Iskandarb 185

Creating Purchase Decision through Co-Branding in Creative Industry

Rosa Reginaa, Rendra Chaerudinb 186

Implementation of Customer Integrated Marketing Communication (CIMC) for Improving

Marketing Function (Case Study: “Manikan”) Sang Ayu Made Diah Afsaria, Reza Ashari Nasutionb 187

A Preliminary Study on the Motivation of Funders in Crowdfunding

Teresia Debbya, Mustika Sufiati Purwanegarab, Atik Aprianingsihc 188

Analysis of the Effect of Perceived Graphicness of Indonesian Graphic Warning Label on

Smokers’ Intention to Quit Smoking

Rifeldo Meizaa, Ira Fachirab 189

Estimating Factors Influencing Apartment Price in Bandung - Application of Hedonic Pricing

Model Shannon Dwiputri Chandraa, Ahmad Danu Prasteyob 190

Endorsement toward Celebrities’ Instagram that Affect Millennial Behaviour: Attractiveness of

Beauty Product Endorsement Kenira Diva Maharani 191

The Perception Difference between Promotional Mix of Teh Pucuk Harum and Frestea

Herren Calidaa, Atik Aprianingsihb 192

Understanding the Factors Affecting the Customer Intention in Using Mobile Instant Messaging

(MIM): A Case Study of LINE Corporation

Felicia Puspitasaria, Prawira Fajarindra Belgiawanb 193

The Impact of Green Hotel Practices towards Customer Attitude, Satisfaction, and Willingness

to Pay Premium: The Case of Green Hotel in Java, Indonesia

Anisa Fathir Ruswandia, Atik Aprianingsihb 194

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xxiv

Impacts of Social Media Marketing Efforts towards Value Equity, Relationship Equity, Brand

Equity and Purchase Intention of Accessible Luxury Fashion Products

Salsabilla Kintana, Mustika Sufiati Purwanegarab 195

Comparison of Efficiency of Instagram Ads and Facebook Ads Before and After Ramadhan: The

Case of KABOBS - Premium Kebab in Bandung

Lana Tiara Avianaa, Budi Permadi Iskandarb 196

Customer Relationship Management to Customer Value & Customer Loyalty of Fixed

Broadband

Erikson Sianipara 197

The Impact of Event Marketing to Attract Brand Awareness Fashion Customers

Annissa Karni Rachmadhiana, Rendra Chaerudinb 198

The Influence of Consumer Ethnocentrism and Brand Equity toward Brand Preference of Online

Ride-Hailing Service among Millennials in Bandung City

Reza Ashari Nasutiona, Richard Harris Wahyudib 199

What Factors that Influence Coffee Flavor: A Case of Coffee Industry in Indonesia

Kartika Sarirahayua, Mustika Sufiati Purwanegarab, and Fitri Apriliantyc 200

The New Brand Positioning and Marketing Communication of Brawijaya Clinic Buah Batu

Bandung as Part Of The Improvement Of Its Brand Relevance

Aninditya Christa Maharania, Reza Ashari Nasutionb 201

Analysis of Factor Affecting Intention to Visit: In The Case of Orchid Forest Lembang

Alifia Fardian Azzahraa, Atik Aprianingsihb 202

Investigating the Effect of Celebrity Endorser’s Credibility on Purchase Intention of Local

Fashion Brand in Instagram (The Mediating role of attitude toward advertisement) Dewa Gede Dawan Adi Bagaskaraa, Prawira Fajarindra Belgiawanb 203

Affecting Factors of Customer Value Proposition toward Purchase Intention on Bag and Scarf

Product: Hijaber Perspective

Puspita Serunia, Leo Aldiantob 204

A Study of Electronic Money Card in Transportation System in Indonesia

Muhammad Irfan Raisa, Fitri Apriliantyb 205

Assessing Service Quality Using Combination of Servperf and Importance-Performance

Analysis: A Research Study at Skin Care Unit Klinik Satelit 3 Bontang

Yustinus Heri Hermawana, Herry Hudrasyahb 206

The Affect of Marketing Mix and National Culture on Consumer Buying Intention of Music

Product: A Case Study of Indonesia and India Consumers

Teddy Oswaria, Reni Diah Kusumawatib, Tristyanti Yusnitasaric, Vijay Kumar Shuklad 207

Switching Behavior Y Generation from Conventional Television to YouTube

Zhaniar Rossalia Mawardhania, Badri Munir Sukocob, Zuyyinna Choirunnisac 208

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xxv

The Adoption of Halal Logistic among Industries in Indonesia: The Intention Driver towards

Service Innovation

Sherly Artaditaa, Yuliani Dwi Lestarib 210

The Conceptual Framework of Horizontal Collaborative Transportation Management in

Indonesia Trucking Industry

Dania Sitadewia, Liane Okdinawatib, Desy Anisya Farmaciawatyc 211

Material Requirements Planning Method in Improving Production Planning in Fashion Company

Cindy Harpina, Desy Anisya Farmaciawatyb 212

Game Theoretic approach in Fleet Performance-Based Maintenance Contracts

H. Husniaha, Andrianab, A. Sholahuddinc, A. K. Supriatnad, and B. P. Iskandare 213

Designing Strategic Logistic Vendor Development to Increase Sales Satisfaction Index (SSI) at

PT. Toyota-Astra Motor Yopi Hirmawana, Milind Gadreb 214

Implementation of World Class Maintenace in PT Krakatau Daya Listrik in Order to Increase

Electrical Power Reliability Supply to Consumers

Ermawantoa, Adirizal Nizarb 215

Operations Strategy for Decreasing Stock Takinng Discrepancy in PT.Akashi Wahana Indonesia

Aditya Rahmansyah Gunawana,Mursyid Hasan Basrrb 216

Cicendo Eye Hospital location analysis

Nanda Akmaliaa, Mursyid Hasan Basrib, Aldiana Halimc 217

Inventory Management Analysis at Zainab Mother and Child Hospital Muhammad Daniala Syuhadaa, Mursyid Hasan Basrib 218

Supply Chain Risk-Based Analysis on Vendor Managed Inventory (VMI) in Indonesian Aircraft

Manufacturing Company

Evyta Septriani Rosalinaa, and Nur Budi Mulyonob 219

Halal Packaged of Foreign Product that Influence the Purchase Intention

Berliana Rizki Arlisaa, Ratih Hendayania,b, Yuvaraj Ganesanb 220

Queuing Performance Analysis of E-Toll Implementation in Indonesia: A Case Study in PT. Jasa

Marga Branch Purbaleunyi Claudia Natasya Tambunana, Yuanita Handayatib 221

Reducing Company’s Logistic Cost by Optimizing Transportation Cost In Bandung City – A

Case Study Of 8 Lima Logistik

Edwin Prajna Adistanaa, Desy Anisya Farmaciawatyb 222

Implementation of Single Order Inventory Model in KLP Concept Store

Kenny Lisanputeraa, Gatot Yudokob 223

Product Lifecycle Management Perspective in Creating Company Value, a Study of Strategic

Operation Management in Engine MRO Indonesia

Iwan Krisnanto 224

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | xxvi

Gap Analysis between Supply and Demand in Tertiary Eye Care Facility, National Eye Centre,

Cicendo Eye Hospital Bandung

Analysis of Queuing System at Teller Bank Rakyat Indonesia Cengkareng Timur Unit Office 226

Khitah Wirapradanaa, Akbar Adhiutamab 226

Quality Improvement on PT X Dyeing Department by Implementing Six Sigma (A Case Study

of Indonesian Textile Company) Christianto Adityaa, Yuanita Handayatib 227

Application of Multiple Product Lot Sizing Models and Cycle Counting Policy in Improving the

Inventory Management of CV. Putra Prima

Ivan Christiana, Desy Anisya Farmaciawatyb 228

Operations Strategy on Sustainable Horticulture and Postharvest Process: Empower Tomato

Farmers in Bandung Area

Pathmi Noerhatinia, Ammana Al Hakimb, Gatot Yudokoc, Togar Simatupangd, Nur Budi Mulyonoe,

Melia Famiolaf, Dicky R. Munafg 229

© 2018 The 3rd International Conference on Management in Emerging Markets (ICMEM 2018) Page | 1

ACCOUNTING


The 3rd International Conference on Management in Emerging Markets

Cost-Based Analysis of Conventional and Autonomous Mobile

Services in Indonesia

Meygantara Faozal Holieffa*, Prawira Fajarindra Belgiawanb

a,bSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha No 10, Bandung 40132, Indonesia

Abstract

Since 2012, Autonomous Vehicle (AV) has become a spotlight issue in several countries. In the theme of “Ready for Automated

Driving”, some automobile manufacturer and technology representative join its first AV seminar and gives their view. Many

benefits are stated in this seminar held in Washington, USA. On the other hand, Swiss also develop this technology. They develop

and conduct the research especially in term of cost structure. They found the substantial changes in cost structure after

hypothetically applying this technology. It is also interesting to apply AV technology in Indonesia case where online transportation

has now become popular. In the uncertainty condition after ride-sharing mode dominates the transportation market, an innovation

such as an autonomous vehicle is needed to compete for each other. This research is conducted to analyze the benefit contribution

if it is implemented in the conventional transportation mode. The benefit can be caught if there is any substantial changing in cost

structure. Autonomous technology is assumed to replace the human driver which impact to reducing variable cost. This technology

also might change the fixed cost for a long-term. Using coding providing by ETH Zurich, this research focuses on cost structure

changing while this technology is hypothetically implemented in Indonesia.

Keywords: Autonomous Vehicle; Fixed Cost; Variable Cost; Intention to Use

* Corresponding Author: Tel.: +62-813-2192-9353.

E-mail address: [email protected]

mailto:[email protected]



Does Family Ownership Affect The Firm’s Abnormal Audit Fees ?

Rika Lusiana Surya a*, Fitrianyb

a,bPostgraduate of Accounting Sciences University of Indonesia, Beji West Java, Depok City 16424, Indonesia

Abstract

This study aims to examine empirically the influence of family share ownership against negatives abnormal audit fee and positive

abnormal audit fee. This study uses panel data of 733 observations of companies in Indonesia Stock Exchange (IDX) during the

year 2012-2016, where 386 observations are companies that pay abnormal audit fee positive and 347 observations companies that

pay abnormal audit fee negative. Regression results indicate that the family ownership level in the firm has no effect on companies

that pay negative abnormal audit fees but negatively affects the ownership of families who pay positive abnormal audit fee.

Keywords: Family Ownership, Audit Fee, Abnormal Audit Fee.

* Corresponding author. Tel.: +8-136-911-1030.




Earnings Management and Operating Performance

Ronald Tehupuringa*, Amor Marundab

a,bGadjah Mada University

Abstract

The purpose of this study is examine the effect of earnings management on the operating performance. This study uses a sample

of mining companies listed on the Indonesia Stock Exchange period 2012-2016. However, the year of analysis uses the period

2014-2016. While the year 2012-2013 is used in calculating real earnings management that requires two years earlier. The results

showed that the accrual earnings management had a positive and significant effect on the operational performance. Meanwhile,

real earnings management has no effect on the operational performance. In the third test result of earnings management proxy

found that only ACFO have positive and significant effect on the operational performance. Meanwhile, APROD and ADISX have

no significant effect on the operational performance. The results of this study provide practical implications that the average mining

company in Indonesia Stock Exchange uses the accrual profit management to improve the operational performance of the company

compared to real earnings management.

Keywords: Accrual Earnings Management; Real Earnings management; Operating Performance

* Corresponding author



The Effect of Audit Quality and Corporate Governance on Tax

Evasion Practices in State-Owned Enterprises (SOEs) in Indonesia

Muhammad Laras Widyantoa, Sri Kurniawatib, Nuzulul Hidayatic, Eva Heriantid*

aMercu Buana University, Jl. Meruya Selatan No.1, Jakarta 11650, Indonesia b,cUniversity of Persada Indonesia YAI, Jl Diponegoro No.74, Jakarta 10340, Indonesia dMuhammadiyah University, Jl KH Ahmad Dahlan, Ciputat, Jakarta 15419, Indonesia

Abstract

This study aims to examine the effect of audit quality and corporate governance on tax evasion practices. The sample used are

State-Owned Enterprises (SOEs) listed in Indonesia Stock Exchange (IDX) period 2013-2016. Sampling method use purposive

sampling with 80 sample observations. The analysis tool used is SMARTPLS 3.0. The result shows that audit quality has no

significant effect on tax evasion practices in SOEs in Indonesia, while corporate governance has a significant effect on tax evasion

practices in SOEs in Indonesia.

Keywords: Audit Quality; Corporate Governance; Tax Evasion Practices

* Corresponding author. Tel.: +62 8129917861




The Influence of Family Firm on Corporate Tax Avoidance: In

Indonesian Listed Companies after Tax Amnesty Program

Reza Radityaa*, Zuliani Dalimuntheb

a, bMagister Manajemen, Universitas Indonesia, Jl. Salemba Raya no. 4, Jakarta 10430, Indonesia

Abstract

This paper analyzes the effect of family ownership and tax amnesty program on tax avoidance practice. This study also tries to

analyze the changes of tax avoidance practice after tax amnesty program implemented. The five-year test results (2013 to 2017) of

forty-nine non-financial private firms those participating in the tax amnesty program, show that the tax amnesty program has no

significant effect on tax avoidance practice. While family ownership has a positive effect on tax avoidance practice. Based on the

mean difference test, it is known that tax avoidance practice does not change significantly before and after the implementation of

tax amnesty program. Similar test also shows that family firms tend to be more aggressive in practicing tax avoidance than non-

family firms.

Keywords: Family Firm; Tax Avoidance; Tax Amnesty

* Corresponding author. Tel.: +62-813-207-13389





Tax Uncertainty, Stock Market Liquidity, Earnings Management on

Firm’s Investment: Evidence From Indonesia

Validita Kurniawana, Amrie Firmansyahb*

a,bDepartment of Accounting, Polytechnic of State Finance STAN, Bintaro Main Street 5th Sector, Bintaro Jaya, South Tangerang 15222, Banten, Indonesia

Abstract

The successful economy of the country is closely related to the role of investment, especially private sector investment. This study

is aimed to examine the effect of tax uncertainty, stock market liquidity, and earnings management on firm's investment. Through

an associative quantitative approach, this study analyzed nonfinancial firms listed on the Indonesia Stock Exchange in 2010 to

2016 which is tested using fixed effect model of panel data. The results of this study suggest that tax uncertainty has a negative

effect on firm's investment. In line with this, high stock market liquidity also affects the decline on firm's investment level, while

earnings management has no effect on firm's investment.

Keyword: Earnings Management, Firm’s Investment, Stock Market Liquidity, Tax Uncertainty

* Corresponding author.

Email address: [email protected]



The Effect of International Financial Reporting Standards (IFRS)

Adoption on the Earnings Management of Oil Companies which are

Experiencing Oil Price Decline Shock

Bintang Yosua Ronibasaa*, Sylvia Veronica Siregarb

a,bAccounting Department, Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia

Abstract

This study analyzes impact of IFRS adoption on oil companies’ accrual and real earnings management considering moderation

effect of world crude oil price decline shock. We study 96 oil firms or 445 fims-years on 13 countries from 2012 until 2016. We

find the shock has intensified income-decreasing accrual earnings management practice because of increase on investor tolerance

toward loss. However, we find firms efficiency on discretionary expenses and overproduction strategy of OPEC countries after

2014 increase real earnings management level of samples (showing decrease in income-decreasing real earnings management). We

also find IFRS adoption has no impact on accrual and real earnings management of oil companies alleged because of political cost

pressure. Finally, we find the shock has no moderation effect on IFRS adoption and earnings management relation.

Keywords: Earnings Management; Oil Industry; Aggressive; Oil Price Decline Shock; International Financial Reporting Standards.




The Effect of Political Connection and Earnings Management on

Management Compensation

Riky Rizki Junaidia*, Sylvia Veronica Siregarb

a,bUniversity of Indonesia, Jawa Barat, Depok and 16424, Indonesia

Abstract

This research aims to examine the direct effect of political connection and earnings management on management compensation as

well indirect effect of political connection on management compensation through earnings management. There were three measures

of earnings management used in this research, namely accrual, real, and aggregate earnings management. Samples of this research

are non-financial companies listed in Indonesia Stock Exchange in the period of, 2014-2016 with 337 observations. We find that

real earnings management has a significant positive effect to management compensation. However, there is no evidence that

political connection has an influence on earnings management and political connection on management compensation. Moreover,

there is no evidence on the indirect effect of political connection on management compensation through earnings management.

Keywords: Political Connection; Earnings Management; Management Compensation.





The Effect of Audit Quality toward the Relationship between

Political Connection and Real Earnings Management

Eva Herianti a*, Arna Suryanib, Amor Marundhac

aFaculty of Economics and Business, Department of Accounting, Muhammadiyah University Jakarta bFaculty of Economi and Business, Department of accounting, Batanghari University Jambi

cFaculty of Economi and Business, Departement of Accounting, Persada Indonesia YAI University Jakarta

Abstract

High-quality audit is an audit that is performed by the auditor as a barrier for the effectiveness earnings management conducted by

the management company for management earnings which tends to obscure the proven performance of the company if there are

errors in financial reporting. One of the indication of the improvement on the company's performance is reflected through its profit

figure is the earnings management strategies undertaken by the management company to achieve earnings targets. Politically

connected companies that have a tendency to manage earnings in achieving its profit target to achieve certain goals are supposed

to win the tender. This study aimed to examine the effect of audit quality on the relationship between political connections and real

earnings management. The study sample consisted of 59 manufacturing companies which in a row to publish their financial

statements from 2008-2015 on the Indonesia Stock Exchange. The used year used for the analysis is 2010-2015. Keywords: Political Connections; Quality Audit; Real Earnings Management





The Effect of Temporary Book-Tax Differences on Future Earnings

Changes: The Moderating Role of Earnings Management

Filliani Arinta Wahyunia*, Sylvia Veronica Siregarb

a,bUniversity of Indonesia, Jawa Barat, Depok and 16424, Indonesia

Abstract

This study aims to investigate the effect of temporary book-tax differences on future earnings (which consists of future changes in

pre-tax earnings and future changes in tax expense) with earnings management as moderating variable. The samples of this study

are 686 firm-years for sub samples future changes t+1 and 430 firm-years for future changes t+3. Based on the regression results,

this study finds that there is negative effect of temporary book-tax differences only on future earnings changes in t+1 (short-term),

however earnings management does not have any moderating role. These results suggest that temporary book-tax differences serves

as a signal of short-term future changes in reported firm performance.

Keywords: Earnings Management; Future Earnings Changes; Temporary Book-Tax Differences




BUSINESS STRATEGY



Interaction Model of Indonesian Agri-business

Liane Okdinawatia*, Yos Sunitiyosob, Togar M. Simatupangc, Pri Hermawand, Pathmi

Noerhatinie

a,b,c,d,eSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha no. 10 Bandung 40132, Indonesia

Abstract

Agriculture remains a vital role in the national economic development of Indonesia. The importance of Indonesian agriculture

supply chain lies in the vision of the Indonesia government for food security and farmers welfare to produce various healthy food

and high value-added products-based on local resources. However, local agricultural products facing some inefficient business

practices, due to multi-layer parties involved in the distribution network to final consumers. The agricultural supply chain comprises

all activities involved in the flow and transformation of goods, from supply to final consumers, including information flow. Previous

studies related to agriculture research do not provide an overall description of the agriculture supply chain. It is necessary to provide

an overview of how agribusiness activities take place and how each party interacts to fulfil the consumer's desire for high-value

agricultural products. Therefore, this paper tries to give a comprehensive description of all parties involved in agri-business by

reproducing the supply chain network of agricultural products under the actual conditions in Indonesia. Therefore, the Value System

method is used in this paper to highlights the dynamics and interrelations several parties with each other. This paper used two types

of agri-business: common and organic tomato agri-business. Two type of agri-business is used to see the possible differences in

the supply chain process and the different interactions. Based on the results of identification all parties involved in three supply

chain phases: Upstream, Middlestream, and Downstream, model interaction for Indonesian agri-business were developed. The

model interaction captures the rules for trade among parties, the flow of product, and the effect of each interaction. The government

can use the interaction model developed in this paper as the basis of policymaking to support the production of tomatoes that

consistent with consumers need. All parties in the tomato supply chain can use the interaction model to understand how they can

interact with each other to meet consumer needs, and how supply chains can work.

Keywords: Interaction Model; Value System; Agri-Business; Supply Chain




Developing Policies for Domestic Gas Industry Sustainability using

Soft System Dynamic Model Approach

Yos Sunitiyosoa*, Andika Mahardikab, Shimaditya Nuraenic

a,b,cSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No.10, Bandung 40132, Indonesia

Abstract

During economic downturn by low oil price, most of fossil-based industry having negative growth including domestic gas industry

at Indonesia. This experience making industry player set the new foundation and changing all gas industry structure. Government

also using different approach for policy making on gas industry. The next questions are how develop strategy for new business

landscape of gas industry, where the future of gas industry and how demand and supply play the role in future gas industry at

Indonesia. This research aim to develop strategy to increase domestic gas industry growth using system dynamic modeling. The

methodology of research combines between soft system model (“SSM”) and system dynamic approach (“SD”). SSM approach

being utilized on problem identification, stake holder analysis using rich picture and define the variables within inside the system.

SD utilized for causal loop diagram continues to stock/flow diagram. SD also being used for further qualitative analysis to predict

gas industry’s response to strategy that being developed on model.

Keywords: Modelling, Policies, Behavior System, Soft System Methodology, System Dynamics





The Effect of Local Community Perceptions to the Degree of

Participation in Sustainable Tourism Development

Salsabila Firdausiaa*, Yuliani Dwi Lestarib

a,bBandung Institute of Technology, Ganesha no 10, Bandung 40132, Indonesia

Abstract

The sustainable of tourism development depends on the support and how much local people take part in tourism activities. However,

in the developing countries, the problem like power imbalance between the local community and power-holders is still come out.

It usually does not reflect the community concern. Due to these reasons, this paper aims to shed light on the effect of local

community perceptions of tourism development in their area and the impact on their level of participation. This study employs

quantitative approach by performing the results used Partial Least Square Structural Equation Modeling (PLS-SEM). The self-

administered questionnaire was distributed to the residents in Lembang, West Java, Indonesia. The outcomes of this research

examined the highest effect of community perception on community participation in tourism development. Therefore, this research

provided some future research suggestion.

Keywords: Community Perception, Community Participation, Sustainable Tourism Development

* Corresponding author. Tel.: +62 85974209221.




Acquisition Analysis of Star Energy Geothermal Holdings by

PT. Barito Pacific Tbk.

Amri Zeina*, Subiakto Sukarnob

a,bSchool of Business and Management, Institut Teknologi Bandung, Indonesia

Abstract

On December 2016, PT. Barito Pacific Tbk. (BRPT) entered a Memorandum of Understanding (MOU) with entities owned by

BRPT’s controlling shareholder, Mr. Prajogo Pangestu, to acquire the majority shares of 66.67% in Star Energy Group Holdings

(SEGH), Indonesia’s biggest geothermal power producer. The aim of this acquisition is to provide BRPT with a second core

business, diversifying BRPT’s earnings from the cyclical petrochemical sector into more stable power generation sector, which has

good long-term growth prospects with the added benefit of being a green energy provider. On March 2017, BRPT announced that

it had secured a USD 250 million loan to support its plan to acquire SEGH. BRPT expects to finish the audit process of SEGH and

targets to complete the acquisition in 2Q18. The acquisition analysis is started from internal and external analysis of BRPT

combined with SEGH performance analysis, risk analysis, stock valuation analysis using DCF model with free cash flow to the

firm and relative valuation model. The research reveals that BRPT’s corporate strategy to face cyclical petrochemical business and

to strengthen the business profit by acquiring majority share of SEGH is a very good diversification strategy. The calculated

intrinsic value per share based on the DCF valuation after SEGH’s acquisition without right share issuance is Rp. 2.607, the

potential upside value is 15.37% (compared with BRPT share price IDR 2.260 on end of 2017).

Keywords: Acquisition Analysis, BRPT, Corporate Strategy, Discount Cash Flow, Star Energy





Acceptance and Use of Information Technology: Understanding of

Information System for Indonesia Humanitarian-relief Operations

Made Irma Dwiputrantia, Adriyani Oktora b, Liane Okdinawatic*, Mohamad Nurkamal

Fauzand, Dania Sitadewie

a,bLogistics Business, Polytechnic Pos Indonesia, Jl. Sariasih no. 54, Bandung 40151, Indonesia c,eSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha no. 10 Bandung 40132, Indonesia

dInformatics Engineering, Polytechnic Pos Indonesia, Jl. Sariasih no. 54, Bandung 40151, Indonesia

Abstract

Disaster management includes the process of distributing logistic assistance for disaster victims wherein the implementation of this

distribution must be at the right time, appropriate location, on target and appropriate with the needs of disaster victims. One of the

challenges in disaster management is how disaster management that includes disaster relief distribution can be done quickly,

effectively and efficiently, and also channelled to disaster victims. The information system is designed to improve the performance

of disaster relief operations by managing the information, monitoring, and evaluating humanitarian-relief operations. Consequently,

understanding the primary determinants of user acceptance behaviour has become a vital aspect in the successful implementation

of the information system for humanitarian-relief operations. Unified Theory of Acceptance and Use of Technology (UTAUT)

model is as a tool to investigate and give a better understanding of the factors affecting the potential user acceptance to use the

information system. 131 different informants from the different potential user with four aspects of measurement, i.e. Performance

Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), and Facilitating Conditions (FC) are used. The results have shown

that strong relationships among four aspects of measurements in the aceeptance all parties involved in humanitarian relief operation.

Keywords: Disaster Management; Humanitarian-Relief Operations; Information Technology; Unified Theory of Acceptance and Use of

Technology (UTAUT).




Are Women Entrepreneurs Tech-Savvy? Exploring the Adoption

and Use of ICT by Women-Owned SMEs in Bandung, Indonesia

Wawan Dhewantoa, Yuliani Dwi Lestarib, Sri Herlianac, Salsabila Firdausiad*

a,b,c,dBandung Institute of Technology, Ganesha no 10, Bandung 40132, Indonesia

Abstract

The ownership of Small-Medium sized Enterprises (SMEs) among Indonesian Women has proliferated year by year. Women

entrepreneurs play a significant role to offer new job opportunity and increase community’s quality of life. Today, not only business

skills are essential for women entrepreneurs, but also their ability to innovate are needed. Information and Communication

Technology (ICT) adoption is a way to foster innovation in SMEs. Women are less engaged with technology. Somewhile, women

need assistance while using new technology and they have less digital skill. This study aims to investigate the usage of ICT and to

explore the influencing and impeding factors of ICT adoption among Women-owned SMEs. A qualitative study was employed by

conducting the semi-structured interview with four Women SMEs owners in the creative sector in West Java, Indonesia. This study

reveals the drivers and barriers for Women adopting ICT to operate their business also provide the better understanding of how

ICT works in Women-owned business. The findings can be used as the recommendation for related stakeholder particularly

government official to make empowerment program for women in business.

Keywords: Women Entrepreneurs; ICT Adoption; ICT Use; SMEs; Creative Sector


E-mail address:[email protected]



Moderation Role of Gender in the Relationship between Service

Quality and Students’ Satisfaction

Saad Aziz Al-Otaibia*, Sha’ri Mohd Yusofb, Wan KhairuzamanWan Ismailc

aInternational Business School, University Technology Malaysia, Jalan Sultan Yahya Petra (Jalan Semarak), 54100 Kuala Lumpur, Malaysia. bUTM Razak School of Engineering and Advanced Technology (UTM Razak School), University Technology Malaysia, Jalan Sultan Yahya Petra

(Jalan Semarak), 54100 Kuala Lumpur, Malaysia cInternational Business School, University Technology Malaysia, Jalan Sultan Yahya Petra (Jalan Semarak), 54100 Kuala Lumpur, Malaysia.

Abstract

The segregated life that exists in Saudi Arabia between males and females folks does not spare the academic lives of its citizen.

This segregation is presumed to affect the student’s perception of service quality and the satisfaction of the facilities provided in

their universities. There is growing trend in the investigation of the difference between females and males Saudi students concerning

their service quality satisfaction. In this regard, the present study intends to investigate and understand the importance of the

students’ perception of service quality in the education sector in order to attract and retain students. This is due to the belief that

the unsatisfied student might choose to abandon their study. Therefore, the present study aims to investigate the relationship

between perceived quality and overall satisfaction, as well as identifying the moderating effects of students ’gender between

perceived service quality and satisfaction with university services. The statistical tool used to test the hypothesized model is the

structural equation modelling with AMOS version 22, of which the results supported all the hypotheses. In terms of the hypothesis

one, it reveals a significant positive correlation between perceived quality and satisfaction. The hypothesis two, on the other hand

shows that there is significant moderating effects of gender, which means that male and female Saudi students in terms of their

perceived university service quality are not the same which does affect their satisfaction. Meaning that, satisfaction was discovered

to be different among male and female students in relation to service quality. The finding show a strong indication that university

administration should focus on the quality of services provided for students as well as their satisfaction in order to enhance their

academic outcomes.

Keywords: Saudi Arabia; Higher Education; Service Quality; Satisfaction; Structural Equation Modelling






Strategy to Optimize Business Value of Marginal Gas Field in

Onshore Central Java

Indah Anggrainia*, Agung Wicaksonob

aDaniel Residence Kebon Kacang XII No.21 Jakarta Pusat, 10390, Indonesia bGraha Irama Building 12Floor, Jl. H.R. Rasuna Said Kav. 1-2 Jakarta Selatan, 12950, Indonesia

Abstract

PHE Randugunting is one of the subsidiaries of Pertamina Hulu Energi (PHE) who managed Randugunting Block which located

at Rembang, Central java. Currently, company’s position is in the transition phase from exploration to development and production

phase. After succeed to discover gas and condensate in R-2 Well, company faces several challenges to develop gas field such as

marginal gas reservoirs, lack of gas infrastructure, limited time to the approval of plan development, total sunk cost, and limited

coverage area after 3rd relinquishment. Strategy to optimize business value of marginal gas field need to be created in order to

accelerate gas monetization, and maintain the blocks & potential resources in the future.

Strategy Establishment started by understanding the business situation comprehensively. External and internal analysis has been

conducted to obtain better understanding of PHE Randugunting situation. The external analysis that being used is PESTEL and

Porter’s Five Forces, while the internal analysis using the resource-based view, The Value Chain Analysis, and 7P marketing Mix

as it tools of analysis. By analyzing these factors, the strength, weakness, opportunities, and threat that revolving around PHE

Randugunting has been known and being represented in the form of SWOT analysis.

Corporate strategy alignment through performance management system succeed to bring the company formulate key performance

indicator and strategy but still in line with holding company strategy. To obtain proper development concept, investment business

value analysis is conducted through several parameters such as internal rate of return, profitability index ratio, payback of time and

net present value that also supported by focus group discussion, internal study and benchmarking process. As a results, Investment

Cost on production facility with Compressed Natural Gas (CNG) as feed gas is shown optimum value to develop marginal gas field

in On-shore Central Java. Regarding commercialization and marketing strategy, the analysis of Segmentation, targeting, positioning

and differentiation has been conducted and support by gas buyer selection using Small Multi Attributes Rating System to helps

Top Management decide and rating the potential gas buyer that ready and qualified with related attributes or criteria At the end,

new business model canvas is generated to describe new business model post transformation into production phase.

Keywords: Marginal Gas; SMART Method; Gas Industry; Strategic Management; Business Value




Vendor Selection of Decision Engine Platform at Bank BTPN Using

AHP Model

Yerrikho Bergasa*, Yos Sunitiyosob

a ,bSchool of Business and Management, Institut Teknologi Bandung, Indonesia

Abstract

The growths of p2p lending business model of fintech increasingly burdensome the bank to compete. BTPN seeks alternative to

form a new business model which will automate lending process. Therefore, the Bank created a large project called core lending

system and the main part of the core lending system is the decision engine platform.

Vendor selection is very complicated process. If the vendor selection is not appropriate then it will be implied to the project

implementation plan and will affect the business performance in the long term because the product or platform that should be able

to function properly turned out not in accordance with the expected. AHP chosen as framework for helping vendor selection and

develop a decision making support model because the framework decompose complex problem into simpler forms to then

synthesize the various factors involved in the decision making problem.

The primary data collected from interview and discussion with decision makers who acted as project team, and also questionnaire.

Secondary data collected from company research documents and another data coming from response documents from alternatives

vendors.

From the results of data processing found that the criteria and sub criteria with the most important weighting in this project is

functional capability for criteria and decision engine for origination process (functional), integration capability (technical),

reputation, people expertise, and team capability (proof of concept) for sub criteria.The ranking results for four alternatives are EN,

FO, PR, and CF. The research shows that AHP model can also be used for decision support system specifically related with vendor

selection that has complex criteria and large number of respondents from various units and background.

Keywords: Analytic Hierarchy Process, Group Making Decision, Vendor Selection, Decision Engine Platform, Banking Industry

* Corresponding author. Tel.: +62 8180 8583 410.





Forecast Demand & Aggregate Planning for El Farm’s Healthy

Juice Product

Zed Ridlo Ichsan Asyharia*, Desy Anisya Farmaciawatyb

a,bSchool of Business and Management Institut Teknologi Bandung

Abstract

El Farm is a start up company which sells healthy juice product. Currently El Farm is facing problem in determining their production

level as well as reducing wastes in work in progress inventory and finish product, since they do not have proper forecast demand

and production planning. Therefore, this research was aimed to generate a fit forecast potential demand and the suitable production

planning with the current capacities in El Farm. El farm targeted market is people with age range from 20-49 years old that live in

Bandung area, with total population 1,254,039. To forecast the demand, we distribute surveys to 252 respondents. The collected

data then will be analyzed using statistical analysis to estimate the market demand. The estimated demand then will become data

input for determining production level of healthy juice products in El Farm. Next, we will apply several aggregate planning methods

to plan the production of healthy juice. We will compare the methods to find the most efficient cost then apply the method as the

production planning strategy in El Farm. The result from this research are, we found that the market are very potential for healthy

juice product, El farm design capacity is 42 bottles per day, and based on forecast potential demand and design capacity El Farm

create two plan for aggregate planning. The result from this study will be used as reference to create production system that can

minimize it cost and waste. This study also aimed to become reference for other research for healthy juice industry.

Keywords: Forecast Demand; Aggregate Planning; Inventory Management; Healthy Juice





Tomato Supplier Sourcing Under Performance Measurement

System Using Analytical Hierarchy Process Approach

Dania Sitadewia*, Pathmi Noerhatinib, Dicky R. Munafc, Dermawan Wibisonod, Gatot

Yudokoe, Liane Okdinawatif

a,d,e,fSchool of Business & Management, Institute Technology Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia b,cFaculty of Art & Design, Institute Technology Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia .

Abstract

As a popular horticulture commodity that is widely cultivated in Indonesia, tomato producers face intense competition in the market

due to oversupply. Differentiation strategy can be adopted through the adherence to GAP (Good Agricultural Practice) which

resulted in safely consumable graded-tomato. However sustainable tomato suppliers are needed to continuously and consistently

supply the market demand for graded tomato produce into local high-end supermarkets in Bandung. Using the study case of Lyco

Farm, this study aims to identify the best tomato supplier among the farmers' group in Sumedang and Bandung regency based on

its existing performance. The performance criteria of suppliers are based on literature review represented by quality, cost, and

availability, compliance with contract farming, innovativeness and environmental performance. Based on the conceptual point of

view, this paper helps to identify the performance measurement system (PMS) of tomato suppliers. While from the practical point

of view, this paper demonstrates the utilisation of Analytical Hierarchy Process (AHP) for choosing the best tomato supplier from

amongst the five farmers' groups in the study case based on its performance. The originality of this study came from the Indonesian

context of performance measurement system (PMS) based on the real needs in the agricultural field.

Keywords: Performance Measurement System (PMS); Analytic Hierarchy Process (AHP); Sourcing




Business Strategic Plan to Reduce the Non-Performing Loan of a

Bank (Case Study at Private Bank in Bandung, West Java)

Everlin Novia Lieaa*, Uke Marius Siahaanb

a,b Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

Bank ABC is a national bank which facing the problem of high number of Non-Performing Loan from year to year. Since the year

of 2014 until 2017, the number of Non-Performing Loan keeps increasing to almost reach the maximum limit which has been set

up by the regulation of Otoritas Jasa Keuangan. The maximum limit for NPL rate is as of 5% net. The high number of NPL can

affecting the bank’s credibility and reputation. In relation to that issue, it is crucial for Bank ABC to find solution in decreasing

and overcoming NPL’s problem.

This thesis intends to help Bank ABC to overcome NPL’s problem, by taking samples of 30 NPL’s debtors from each group of

Commercial Loans and SME Loans. Author then calculates all of data samples from each group using calculation of Altman Z-

Score Theory and Time Interest Earned. Author also conducted calculation using US Index as a supplement method of analysis.

The financial reports gathered for data process of each debtor are on the year of 2014, 2015, and 2016. In its theory, The Altman

Z-Score is a tool used in credit analysis that includes few financial ratios at a time (profitability, leverage, liquidity, solvency and

activity ratio) to predict whether a company has a high degree of probability of being insolvent. The theory of Time Interest Earned

uses the calculation of Earnings before Interest and Taxes, divided by interest charges. The calculation is used to determine to what

extend debtor is able to fulfill its obligation to bank, using its business income. Meanwhile, US Index is can be used as a tool to

determine debtor’s capacity to be given loan at bank.

It is also recommended that Bank ABC should asses the debtors and charge interest rates accordingly, as ineffective interest rate

policy can increase the level of interest rates and consequently NPL. The central bank should apply stringent regulations on interest

rates charged by banks as to regulate their interest rate spread. Bank should apply efficient and effective credit risk management

that will ensure that loans are matched with ability to repay, no or minimal insider lending, loan defaults are projected accordingly

and relevant measures taken to minimize the same.

Keywords: Altman Z-Score; Bank; Credit Analysis; Non-Performing Loan; US Index




Proposed Strategy for New Home Furnishing Business in Indonesia

Festy Lalita Niramayaa*, Dona Saphirantib

a,bMaster of Business Administration, School of Business and Management, Jl. Gelap Nyawang no.1 Bandung, Indonesia

Abstract

Nowadays people become aware on how to furnish their home. With many information on interior design home products, online

and offline, consumers have a lot of choice. The growing numbers of population in Indonesia and the increasing number of

productive age has made a great contribution on the growth of home furnishing business. Productive age people specifically in the

age range of 25 – 45 years old are people who have the buying power. The people in this age range are considered the appropriate

target market for home furnishing business.

The positive growing of new businesses especially in home furnishing business, whether it is a small scale or a big chain has created

competition to build and introduce a new home furnishing business to the market. The idea of this research is to propose a strategy

to enter and define a position and brand value in the market.

To achieve the insights from target consumers, a survey in the form of questionnaire has conducted. The result is discussed and the

outcome is analyzed to get the appropriate insights on the home furnishing brand and products. Conclusion on the survey result

become the proposed strategy for new home furnishing business in Indonesia.

Keywords: Home furnishing; Brand value; New business; Strategy

* Corresponding author. Tel.: +62-811-823330




Halal Hotel Indonesia: Concept, Practice, Prospects, and Challenges

Alya Variana*, Fitri Apriliantyb

a,bSchool of Business Management, Bandung Institute of Technology, Jl. Ganesha No. 10 Bandung 401342, Indonesia

Abstract

The growth of Muslim population in world made a significant change in halal demand of products and services. Beside of that,

halal lifestyle predicted have a huge potential market because in Indonesia itself Muslim population reach 88% from the total

population. Sharia and halal label become more interesting nowadays. There are no exceptions for tourism sector. In these few

years Indonesia shows its sharia tourism potential, evidenced by the awards achieved and its 3rd position in Global Muslim Travel

Index (GMTI) 2017.

One thing that becomes Muslim consumer consideration to travel around is hotel, then established halal hotel. Halal hotel is

developing because the market is exist and increasing too. There are 50-100 halal hotels, but only few of them that have halal

certifications. The main challenge is different interpretation of halal hotel as an accommodation because of that there must be a gap

between the concept and practice. Halal hotel is one of important accommodation in tourism sector that use sharia principles in

their practice that give easiness for Muslim tourists to gain spiritual benefit and suitable for halal lifestyle. This research is an

attempt to assemble a comprehensive a set of guidelines and recommendation for hoteliers in Indonesia to implement.

Using quantitative approach, the data for this research was obtained from some sources. The questionnaire having the main role

were done to hotelier, halal center institutions, and customers in order to have different point of views that complement and validate

each other producing a more complete perspective.

Keywords: Halal Hotel; Halal Tourism; Muslim; and Indonesia

* Corresponding author. Tel: 081224505877

E-mail addres: [email protected]



Evoking Nostalgic Feeling of Gen Y through Marketing

Communication Tools: Nostalgic Marketing and Viral Intention.

Cut Putri Pohana*, Sri Rahayu Hijrah Hatib

a,bUniversity of Indonesia, 16424, Depok, Indonesia

Abstract

Everyday, consumers are exposed to hundreds of advertisements from various brands. It certainly makes the messages delivered

by marketers are not easy to remember by the consumers. Therefore, the marketers must continue to develop creative ideas so that

their advertising can be outstanding in the eyes of consumers. Nostalgic marketing in advertising is one way of marketing

communication approach that recently attracted the attention of consumers in Indonesia. Nostalgic marketing has been proven

empirically can evoke consumers’ positive feelings and interest towards the advertisement. In addition, other research mentioned

that people’s interest in an advertisement would encourage them to spread the advertisement. In this digital era, sharing can be

done easily using social media and can be viral. However, studies examined the relationship of nostalgic marketing with viral

intention have not been conducted. In fact, viral advertising can help consumers in terms of communicating the products and

resulting in purchasing. This study aims to test whether nostalgic marketing can lead to viral intention mediated by the attitude

towards the advertisement and brand. If nostalgic ads are proven to cause viral intention, then this study can be a new insight into

the world of marketing.

Keywords: Nostalgic Marketing; Advertising; Attitude; Viral; Purchase Intention

* Corresponding author. Tel.: +62 812 4980 7103




Strategic Analysis of Gross Split PSC Regulation in Indonesia’s Oil

and Gas Industry Upstream Sector

Alliya Rahmaniaa*, Harimukti Wandeborib

a,bSBM ITB, Jalan Ganesha No.10, Bandung, 40132, Indonesia

Abstract

Oil and gas industry is one of the Indonesia’s backbone because its contribution to the non-tax state revenue. Currently, Indonesia

has to do exploration in mature basins (deep water and frontier) and government should seek more favorable terms to attract

investors. Cost Recovery PSC is regulated by PP no. 79 Tahun 2010 which summarized as all the costs that incurred in the

exploration and production activities are cost recoverable by the states. On the other hand, Gross Split PSC is regulated by Permen

no. 8 Tahun 2017 and revised by Permen no. 52 Tahun 2017 and Gross Split PSC summarized as all the operational cost will be

bear by the contractor hence, government will gain the share without recovers any costs. The purpose of this research is to formulate

a proper strategy so that Indonesia can increase its Gross Split PSC performance and get the right track to accomplish its vision.

To formulate the proper strategy, in this research the author performed 1. External environment analysis using PEST Analysis; 2.

Industry environment analysis using Resource-based View; 3. Problem solving strategy using IE Matrix and TOWS Matrix. To

reach the Government’s objectives of Gross Split PSC, further strategy needs to be formulated in order to get the best win-win

solution for both Government and Contractors. The best strategy chosen is cutting down the stages of upstream oil and gas business

process time by create the business process timeline. The reason of this strategy has been chosen is because it aligns with gross

split objective which is maximize the efficiency and effectivity as well as it will be one of the way to enhance the transparency of

the oil and gas business processes as well as it could be a guideline for both government and contractor to cope with the predefined

time targets. By applying this strategy, it also could improve the time value of money and improved economics.

Keywords: Oil and Gas Regulation, Strategic Analysis, Production Sharing Contract, Indonesia’s Oil and Gas Industry.




Escalating Nile Tilapia Aquaculture Business of Fish Farmer

Association in Subang-West Java through Inclusive Business Model

Abdul Rasyid Romadhonia*, Mustika Sufiati Purwanegarab


Abstract

Aquaculture is one of the potential subsector in fishery. Nile tilapia is one of economically-important commodities which cultivated

in inland aquaculture. Subang, is one of the regency in West Java which known as main nile tilapia producers in Indonesia.

However most of fish farmers in Subang cannot utilize it maximally. Pokdakan Jaya Makmur have important role to help fish

farmers increasing the potential of aquaculture business in Subang. Pokdakan Jaya Makmur faced a problem to fullfil the market

demand. In analyzing the business situation of Pokdakan Jaya Makmur, PESTEL, Porter’s Five Forces, stakeholder and value chain

analysis The result showed that nile tilapia current supply could not fulfill market demand because of unclear/informal contract

with farmer’s, aquaculture sector is not mandatory for regional development, difficulty in obtaining capital assistance from

financial institutions, informal agreements with customers, small utilization of technology and no documentation of production

and processing. “Pokdakan Jaya Makmur” should improve in several factors in the inclusive business model, so the welfare of their

member become better and can utilize the potential maximally. There are 5 strategies to overcome the problems which are

developing collaboration amongst existing parties, enhancing vertical integration, and provide training and Implementing CBIB.





Implementing Strategic Capacity Planning in Defining Machinery

Strategy for Offshore Manufacturing Expansion Project

Lucky Kosasiha*, Gatot Yudokob


Abstract

Resourcing the production to another affiliate in a different country (Production Offshoring) is one of the common strategies for a

big multinational company to reduce the production cost and lead to a better competitive advantage. For the receiving affiliate, this

project is adding complexity for the affiliate who received the resourced volume especially when production activities are in place

for their existing products. When the existing production capacity couldn’t fulfill the required volume, it will lead to manufacturing

expansion project to increase the production capacity. The question is how to develop a solid project plan to expand the

manufacturing capacity and to ensure this project will not disrupt the existing production. To address the issue, the author introduces

a conceptual framework to implement strategic capacity planning in defining the machinery strategy for the capacity expansion

project. Elements of Strategic Capacity Planning: Sales forecast, resources availability, and inventory policy are combined with

product’s requirement to develop the machines/kits requirement. The requirement is then aligned with an expected commercial

date to identify possible machinery strategy. The strategy must be validated by projected capacity profiles to give evidence that the

strategy can fulfill the capacity profile requirement thus meet the expansion’s project objective.

Keywords: Strategic Capacity planning; Machinery Strategy; Manufacturing Expansion project; Capacity Profile; Production Offshoring




Do different knowledge sourcing activities influence innovation

decision and innovation performance differently? An exploratory

study on Indonesian innovative firms

Arif Hartonoa*, Ratih Kusumawardhanib

aManagement Department, Faculty of Economics, Universitas Islam Indonesia, Yogyakarta 55283, Indonesia bManagement Department, Faculty of Economics, Universitas Sarjanawiyata Tamansiswa, Yogyakarta 55165, Indonesia

Abstract

This study aims to explore the pattern of knowledge sourcing activities (KSA) performed by Indonesian innovative firms using

data derived from Indonesia innovation survey (IIS) 2014. In the context of Indonesian firms, previous studies have investigated

different sources of knowledge use for innovation, however such studies tend to focus on case studies in specific industries.

Furthermore, to date, insight on the nature of KSA and its linkage to innovation decision and innovation performance drawn from

IIS does not exist. Hence, this study intended to close such research gap. Undertaking principal component analysis (PCA), KSA

can be gruped into science-, market-, and R&D and cooperation-based KSA. Performing logistic and tobit regressions, this study

found that different KSS influence innovation decision and innovation performance differently. R&D and cooperation-based KSA

positively effect product and process innovation, while market-based KSA positively leads to marketing innovation. In regards to

the link between KSA and innovation performance, this study found that only market-based KSA that has positive impact on sales’

proportion of product innovation to the market. Lastly, the study implication on theoretical and practical are discussed.

Keywords: Knowledge Sourcing Activities; Innovation Decision; Innovation Performance; Indonesian Innovative Firms




Designing Opportunity Model on Service Science Concept and

Sharing Economy Perspective for Bus Transportation Companies

Batara Parada Siahaana*,Togar Mangihut Simatupangb, Liane Okdinawatic, Santi

Novanid, Pri Hermawane

a Institut Teknologi Bandung

bProfessor at SBM Institut Teknologi Bandung c,d,eLecturer at SBM Institut Teknologi Bandung

Abstract

Transportation is very strategic issue because sustainability aspect is much related to the transportation maturity. Minimizing and

mitigating turbulences of logistic problems, especially in lowering cost in transportation for mobilization will help small and

medium business to thrive well. This study is focus on discussing the bus transportation as one of the most popular public

transportation. Bus company owner are often facing unprofitable operationalization due to unbalanced seat offering to the demand

for the services they provide. Emerging theme developed in this study are service science and sharing economy concept. By

adopting the perspective of service science this study is emphasizing in service environment for bus transportation where the

customer preferences is carefully thought, the service blueprint is designed based on the psychological customer wants and need,

and nature of collaboration opportunity is proposed using the theory of service science. In this study, the approach of participatory

observation to several bus companies was applied to understand the current state of service system in bus companies both from the

eyes of the customer and the company. To measure the characteristic of the ideal service blueprint, the statistical approach of

conjoint analysis was also adopted in this study.

Keywords: Service Science; Sharing Economy, Transportation Companies Collaboration; Service System; Service Blueprint; Conjoint Analysis.


Email address: [email protected],



Strategic Holding Scenario for State-Owned Enterprises in

Indonesia Mining Sector Towards International Market Competition

Tri Putri Lenggogenia*, Yudo Anggorob

a,bMajoring General Management, School of Business Management, Bandung Institute of Technology Graha Irama, Gedung Graha irama Lt. 12, Jl. H. R. said Kav. 1 – 2, Kuningan Timur, Kota Jakarta Selatan, DKI Jakarta 12950, Indonesia

Abstract

In order to maximize the role of State-Owned Enterprises, Government creates a strategy to form a super holding company. The

implementation of the super holding itself started with the establishment of State-Owned Cement Industry Holding in 1995.

Furthermore, early 2014 marks the year of government's ambition to form another holding company, started with established State-

Owned Forestry Industry Holding and Mining’s area in November 2017. This research will discuss more details about State-Owned

Mining Industry Holding. The scheme is PT Indonesia Asahan Aluminum (INALUM) appointed as Parent Company of State-

Owned Mining Industry Holding, and PT Aneka Tambang (ANTAM) Tbk, BUKIT ASAM Tbk, and TIMAH Tbk become

subsidiaries. This form of structure is known as Operating Holding, which has been experienced first by State-Owned Cement and

Fertilizer Industry Holding. The author uses Scenario Planning framework by Goodwin and Wright (2003). The author created four

possibilities scenarios and conducts benchmarking of two previous State-Owned Enterprises Holdings, in order to provide a valid

comparison. The authors also conducted an interview by using Delphi Methods which continued with the analysis using Kepner-

Tregoe Approach Analysis. The result, the authors suggest State-Owned Mining Industry Holding should immediately restructure

and implement a scenario called Absolute Strategic

Keywords: Absolute Strategic Holding; Mining; Scenarios; State Owned Enterprises; and Super Holding





Business Sustainability Analysis of Telkom Indonesia through

Alternative Selection for Fixed-Line Business (Case Study of PT.

Telekomunikasi Indonesia Tbk)

Rizky Amalia Sinulinggaa*, Asep Darmansyahb

a,bMBA-ITB, Gelap Nyawang 1st, Bandung 40132, Indonesia

Abstract

Telkom Indonesia faced problem of decreasing demand on fixed voice market. Badan Pusat Statistik showed the downtrend on

number of households which using fixed-line telephone showed from 2011 to 2015. The downtrend happened because of shifting

from fixed-line phone to mobile phone, now smartphone, whereas smartphone is easier and more practical in daily activity. The

shifting and declining in households with fixed-line telephone lead to future concerns that fixed-line business are no longer viable.

This research aims to analyze financial strategy for fixed-line business sustainability. External and internal analysis was used to

see threat and opportunity that company had. Fixed-line business sustainability was analyzed by financial performance and cost

and revenue differential. Analysis result showed fixed-line business might be continue operated by terms bundling with other

services. Digital transformation had promising solution to increase fixed-line revenue. The company should make an IT investment

model which can make improvement in IT systems and processes and also support the digital transformation. IT investment model

is started by evaluating the capabilities of companies capital and resource of the fund, followed by making a recommendation for

IT investment and some implementation roadmaps. Expanding infrastructure and service improvement are the main focus on IT

investment.

Keywords: Financial Performance; Cost and Revenue Differential; Digital Transformation; IT Investment




Sustainable Development of Indonesia Slow Fashion Businesses:

Customer Value Approach

Devia Rizkya*, Dina Dellyanab

a,bSchool of Business and Management, Bandung Institute of Technology, Jalan Ganesha No.10, Bandung 40132, Indonesia

Abstract

The fashion industry today is one of constant and unceasing change. It is a segment of materialism, characterised by fast-paced and

outsourced production, cost pressed profit structures, and never ending designs and trends. This framework that unremittingly

stimulate new consumer wants have created a landscape of overconsumption. As an alternative to the prevalent fast fashion model,

slow fashion has emerged as a way of enhancing sustainability in the fashion industry. This study empirically attempted to find

what attributes in slow fashion can lead customers to perceive superior value and subsequently contribute to an increase in purchase

intention. Based on a customer value creation framework, this study empirically tested a structural model that specified the slow

fashion attributes that contribute to creating perceived customer value in Indonesia, which subsequently increases a consumer’s

intention to buy for slow fashion products. Further analysis also revealed that different slow fashion attributes distinctively affect

customer value. This provides potential strategies on which slow fashion businesses can focus to secure a sustainable business

model, thereby continuously improving environmental and social sustainability with the slow fashion.

Keywords: Slow Fashion; Fast Fashion, Sustainability; Customer Value




The Determinants of Point of Sales System Adoption Perceived by

Micro Small Medium Enterprises in West Java

Tarindra Radityaa*, Sylviana Maya Damayantib

School of Business and Management, Bandung Institute of Technology, Indonesia

Abstract

Innovative technology adoption within a business acknowledged as noteworthy subject and became supporting tool to solve

business problems. Presently, technology innovation has encompassed in many sectors including financial sector, which is known

as financial technology (Fintech). One form of fintech which commonly used by enterprises to deliver financial issues is point of

sales (POS) .

On the other hand, the number of micro small medium enterprises (MSME) in Indonesia is 59,2 millions which contributes to 57%

to the total Gross Domestic Product and represents 90% of business entities. However, despite this substantial number, the number

of failing MSMEs are also increasing either in which financial management constraint presumed as one of the cause.

This research examined the role of POS in addressing certain constraint by determining factors of POS system adoption among

MSMEs in West Java and also its organization level. It used a modified Technology Acceptance Model 2 (TAM) to hypothesize

affecting factors and Binary Logistic Regression as methodology. The result showed that Image and Perceived Usefulness have

influence toward the adoption while Subjective Norms and Perceived Ease of Use do not. Small sized enterprise with venture less

than 5 years are the majority POS adopters.

Keywords: Point of Sales System, Financial Technology, Micro Small Medium Enterprises, Financial Management, Technology Acceptance

Model





The Effectivity of Gamified Learning Method on Learning

Outcomes

Excelita S. Dwirajania*, Shimaditya Nuraenib

a,bInstitut Teknologi Bandung, School of Business and Management, Bandung 40132, Indonesia

Abstract

Gamification is an application of game elements in non-playful context. The study investigated the implementation of gamification

in academic environment, focusing on tertiary education. An experiment is conducted to see the effect of a gamified learning

method on a learning outcome which indicated by the change in task performance using a business statistics themed game

specifically designed to be used in a real related course. The experiment data analysis demonstrated the hypothesised significancy

between pre-test and post-test change, and gamification involvement in that change. Additionally, study-related flow inventory is

measured to ensure the validity of the method as a gamified method.

Keywords: Academic; Learning; Gamifiation; Flow; Tertiary Education.




Designing A Nonprofit Organization in Order to Produce A Better

Organizational Effectiveness: Tiup Lilin

Fairuz Rifqi Abdurahmana*, John Wellyb

aSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha No. 10, Bandung 40132, Indonesia bMaster of Business Administration Bandung Institute of Technology, Jl. Gelap Nyawang No. 1, Bandung 40132, Indonesia

Abstract

In the last twenty years, the number of nonprofit organizations has increased enormously. Tiup Lilin (TL) is one of many nonprofit

organizations in Bandung that already established since 1st of June 2014. The primary goal of TL is to make Indonesian children

with life-threatening sickness believe that their dreams can be realized and show that the faith in humanity is still can be relied

upon. However, after they expanded into two cities, which were Depok and Surabaya, they faced a problem regarding the

effectiveness of the organization. It resulted in the stagnation of the organization, and it leads to the closing of the Depok and

Surabaya branches, while TL in its main city, Bandung, still operated until early 2017, where the decision to took a hiatus was

made by TL and currently, they are still on a hiatus while they are preparing for their comeback. This paper aims to find out the

level of effectiveness of TL organization and how to lead and manage organization design for TL. This paper used the 4-D Model

of Appreciative Inquiry, starting from discovery until design phase to find the answer for both of the questions.

Keywords: Organizational design; Organizational effectiveness; Organization development




Analysis on the Impact of Corporate Social Responsibility in

Product-harm Crisis of Tobacco Industry in Indonesia; A Study

Case of PT. Djarum

Andi Magie Fitrahnurliaa*, Prawira Fajarindra Belgiawanb

a,b School of Business and Management ITB

Abstract

Product-harm crises have become a serious issue in the sustainability of business growth since the companies who are in the

product-harm crises stage need to impose strategies to overcome the problem mainly in the attempt to maintain corporate moral

reputation. In Indonesia, through PP No 109 Tahun 2012 and Peraturan Menteri Kesehatan No 28 Tahun 2013, the government of

Indonesia has obliged all the cigarette companies to place the graphic warning label in all their product packaging along with anti-

smoking movement which massively campaigned by the society and exposes the negative impact of smoking itself. This particular

condition has put Indonesian cigarette companies into a crisis, where the consumption rate of cigarette might keep declining. PT.

Djarum, one of the most significant players in Indonesian tobacco industry is affected by the government regulation, and their

consumers are now exposed to the negative health consequences of consuming its products. PT Djarum has been fighting with the

product-harm crisis with allocating resources to their Corporate Social Responsibility (CSR). Realizing that product-harm crises

can seriously affect the sustainability of business, the company need to understand the effectiveness of its CSR programs in

affecting smokers’ intention to purchase PT Djarum’s products. This research is categorized as an applied research which gathers

information from the consumers’ point of view about the impact of corporate social responsibility of PT. Djarum during its product-

harm crisis in Indonesia due to government’s policy and anti-smoking campaign, towards brand trust and consumers’ purchase

intention using the quantitative approach to 400 respondents.

Keywords: Brand Trust; Corporate Social Responsibility; Product-harm Crisis; PT. Djarum; Purchase Intention




The Impact of Corporate Social Responsibility of PT Kahatex

towards The Local Community Perceptions And Attitudes

Gina Anggiria* and Anggara Wisesab

a,bSchool of Business and Management, Institut Teknologi Bandung, Bandung, Indonesia.

Abstract

Corporate Social Responsibility comes as a guideline for thinking and behaving for the company to perform operational activities

by not only paying attention to financial sustainability (profit), but also the sustainability of the society (people) and the

environmental (planet) that goes with the synergistic. The existence of CSR helps companies to get a good image in public through

the establishment of good relations with the community and not disrupt the company's operational activities. Differences in

perceptions and attitudes of the local community/the community in the first ring zone implementation CSR which has implications

for not forming a good relationship between local community and company indicating the lack of achievement of corporate social

responsibility program. Therefore, it is necessary to evaluate why there are differences in attitude and perception among the

community towards PT Kahatex. Using ethnographic methods and analyzing data using Spradley's Analysis, by interviewing 32

respondents and observation in the first ring. This study found that types and CSR implementation of PT Kahatex do not meet what

is expected and needed by the community in the first ring. This situation should be fixed by the company for achieving the desired

goals.

Keywords: Corporate Social Responsibility, Local Community, Perception, Attitude




ECONOMICS



Modelling Optimum Quantity of Various Currency Denominations

of Indonesia Government Bonds

Achlanudin Yusuf*, Ahmad Danu Prasetyo

Institut Teknologi Bandung, Ganesha 10, Bandung, 40132, Indonesia

Abstract

The government of Indonesia requires a lot of funds to provide public services like infrastructure development. The gap between

government revenue that derived from tax and government expenditure will leads to budget deficit. Deficit in government budget

encourages the government to issue bonds. Outstanding amount of Indonesia Government Bonds (IGB) is increased every year.

Increasing in debts can be a major problem in government fiscal policy as it disrupts sustainability of the debts. In order to achieve

the overall debts sustainability, it is necessary to manage the optimum quantity of various currency denominations of IGB. This

research provides theoretical framework of optimum quantity of various currency denominations of IGB as a tool for minimizing

interest costs that have to be paid by the government of Indonesia and minimizing exchange rate risk as some of the bonds are

denominated in foreign currency.

Keywords: Government Debt Management; Government Bonds; Currency Denomination Of Bonds; Optimization; Indonesia.





Investment as Part the Human Development Model in Achieving

Society Welfare in West Java, Indonesia Using Logistic Regression

(IFLS5)

Adam Julian Faturrahmana*, Faizah Syihabb

a,bUniversity of Trilogi, Jl. TMP. Kalibata Jakarta Selatan 12760, Indonesia

Abstract

The study empirically examines the welfare aspect for West Java society, in Indonesia using the logistic regression for the period

of 2014-2015. Using cross-section and secondary data, the study indicate that the household consumption on education, household

investment are significantly and consistently affect the West Java society well-being, whereas the household consumption on health

isn’t significantly affect the West Java society well-being and show consistency with the previous studies. The study also reveals

that the relationships between the variables and society welfare for West Java society in Indonesia can be explained by the theories

of United Nations Development Program (UNDP). By taking West Java area as research object, this research revealed the

determinants of well-being variable, gave a better assessment on the importance of investment variable and found out what can be

done to achieve the community’s prosperity. To conclude, from the findings and analysis, the study offers some significant

contributions particularly to the government how to make improvement in achieving the society welfare, whereby effective

decisions resulting in household investment is very important for the society to achieve that goals, thus increasing the chance in

eliminating the poor society.

Keywords: Welfare; Household Consumption; West Java; Logistic Regression.

* Corresponding author. Tel.: +62 6285716871678; fax: +6221 7981352.





Research, Education and Development Studies in Indonesian

Creative Economy Policy

Dina Dellyanaa*, Isti Raafaldinib, Emilia Fitriana Dewic

a,b,c School of Business and Management, Jl. Ganesha No. 10 Bandung, 40132

Abstract

Indonesia needs a document of creative economic policy studies that can support the sustainable development of creative economy.

To achieve the objectives of the Creative Economy Policy Study activities, the scope of the activity of this study comprises:

Identifying and analyzing various topics related to research, education and development on the Creative Economy in Indonesia,

mapping and analyzing policy gaps at the central and regional levels, or inhibit the development of creative economy and identify

policy needs and formulate policies in the field of creative economy created because it is really needed and useful in regulating the

life of society, nation and state. The result of this study is the recommendation of research, education and development policy for

advancement of Indonesian creative economy.

Keywords: Creative Economy, Policy Mapping, Policy Analysis




Building and Testing Indicators of Trust in B2B International

Market: A Preliminary Study of Indonesian Exporters

Ervyna Rizki Febriannya*, Mustika Sufiati Purwanegarab

a,bSchool of Business and Management, Institute Technology Bandung, Jalan Ganesha No.10, Lebak Siliwangi, Coblong

(022) 2531923

Abstract

Trust is one of the important factors in Business-to-Business in International market. Interpersonal relationships between members

of the buying and selling firms build mutual trust by reducing risk perception. To ensure the implementation of transactions between

exporters and importers, we need trust. Two parties are far apart and they do not know each other will pose a risk when it is involved

with the exchange of goods with money. This paper aims to conduct a literature review concerning indicators of trust in B2B

International market but it is supported by empirical data. A preliminary survey was conducted by giving 30 Indonesian exporters

questionnaires based on those indicators to validate our proposed model of trust. The findings indicate that there are 7 indicators

of trust that were chosen by most of respondents. The result is only the validity test of indicators of trust. Then it will be tested for

further investigation to Indonesia Trade Promotion Center (ITPC) which is located around the world. It is also to enrich Indonesian

exporters’ awareness regarding trust and its indicators. It is also beneficial to help them to face potential obstacles that might arise

in export process.

Keywords: Emerging Country; Export; Indonesia; Trust




Financial Performance Analysis of Indonesian Listed Tobacco

Company Regarding the Graphic Health Warning Regulation

Garisya Diane Savitria*, Ahmad Danu Prasetyob

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, 40132, Indonesia

Abstract

Indonesia is currently among the top four cigarette consuming countries globally. The number of smoking rate is being a concern

due to the negative impact towards the general health of the society. In 2012 the government are issuing the Tobacco Control

Regulation PP No. 109 year 2012 which imply a Graphic Health Warning in Article 14, 15, and 17. The government gives for the

company 18 months to comply with this regulation after the regulation was signed, or by June 24th, 2014.

This research aims to obtain empirical evidence about the differential in the financial performance of Listed Tobacco Companies

in Indonesia before and after the Graphic Health Warning regulation. The limitation for this research is it will be focusing on the

short term effect of the regulation to analyze the immediate impact it gives towards the financial performance of the company. This

research will be using difference-in-difference method and Wilcoxon Signed-Rank test with Altman Z-Score approach using 2

period of event window which was 1 year and 3 years before and after the regulation. Both test indicates the same result that the

short term effect of the Graphic Health Warning regulation applied by the government did not give a significant impact towards

the financial performance of Indonesian Listed Tobacco Companies.

Keywords: Financial Performance; Difference-In-Difference; Tobacco Industry





Two Edges Bilateral Trade of Indonesia: Assessing Export and

Import with Gravity Model

M. Rifhal Julian

School of Business and Management, Institut Teknologi Bandung, Jalan Ganesha 10 Bandung, 40132, Indonesia

Abstract

Gravity Model is no doubt one of most prominent approach in assessing bilateral trade. As developing country, Indonesia has been

doing massive development in the way of optimizing the role of export and import to the nation. Therefore, this study examines

export and import Indonesia with samples of top 15 export destinations and import origin countries during 2002-2016 by gravity

model approach. Panel regression with fixed effect model is conducted with aimed to test the effect of GDP Indonesia, GDP Trade

Partner and distance. The result is GDP Indonesia and GDP Trade Partner have significant effect to export and import. On the other

hand, distance have no significant effect to both export and import in Indonesia.

Keywords: Distance, Export, GDP, Gravity Model, Import, Indonesia



Regional Migration and Remittances: Evidence from Indonesia

Achmad Fajar Hendarman*

School of Business and Management, Institut Teknologi Bandung, Jalan Ganesha 10, Bandung 40132, Indonesia

Abstract

This paper explains some empirical studies and provides several findings and results based on the objective to examine the

determinants of remittances in the context of region choice in regional migration. This research makes new contributions to the

migration and remittances literature. The contributions are the new explanatory variables that connect to migrants’ employment

status such as employment status, education level, and age group. This research implements two steps procedure which applies the

region choices model to produce the predicted value of the likelihood of a region being chosen as a migration destination region.

Furthermore, the results of this model are used as an additional explanatory variable in the determinant model of remittances. There

are some findings to be taken into consideration based on the migrants’ region choices model, namely that self-employment status

and a younger age have positive and significant relationships with remittances. This study provides basis for studies, which try to

establish causal-effects relationship between self-employed migrants and the young group of migrants and remittances which then

can be used for practical and policy recommendations. Self-employed migrants can help the economic condition through

remittances not only for themselves and for their family but also for their origin region.

Keywords: Regional Migration; Region Choices; Remittances

* Corresponding author. Tel.: +62 22 2531923; fax: +62 22 2504249.




Indonesia’s Trade Facilitation amidst Singapore and Hong Kong

under Digital Era

Zamroni Salima*, Nika Pranatab, Kanetasya Sabillac

a,b,cEconomic Research Center – Indonesian Institute of Sciences (P2E – LIPI), Gedung Widya Graha LIPI Lantai 4-5, Jl. Gatot Subroto No. 10, Jakarta 12710, Indonesia

Abstract

Trade is not a stand-alone economic sector and its performance is not solely influenced by trade policy. Trade facilitation is one of

the cross-cutting policy to increase the flows of Indonesia’s trade with the trade partners. The objectives of this study are to:

investigate the existing condition of trade facilitation in Indonesia, benchmark trade facilitation from the Singapore’s and Hong

Kong’s cases; and fill the gaps to achieve a better trade facilitation to increase trade growth in Indonesia. The benchmarking method

is used by positioning the level of Indonesia’s trade facilitation in comparison with the benchmarking countries: Singapore and

Hong Kong. The study found that Indonesia’s trade facilitation is classified as an ‘artificial landlocked’ country amidst the

presences of Singapore and Hong Kong. Within a short-term period of time, Indonesia must improve the overall indicators of trade

facilitation compared to Singapore and Hong Kong, specifically on formalities - automation, involvement of trade community,

appeal procedure, and formalities – documents. By using the more advanced information and technology and simplification on

procedure and documents, trade facilitation in Indonesia must be improved regionally and bilaterally. Having bilateral trade

facilitation policies would be more effective and efficient way compared to multilateral schemes.

Keywords: Trade Facilitation; Information and Technology; Benchmarking; Automation

* Corresponding author. Tel.: +6281311571921




The impacts of Oil Price Shocks on Economies and Mining Index:

Newest Time Series Evidence for Indonesia as Emerging Market

Setiawati, Marlaa*, Wiryono, Sudarso Kaderib

a,bInstitut Teknologi Bandung, Ganesha 10, Bandung, 40132, Indonesia

Abstract

Indonesia is a net oil importer country since 2004 and oil price has decreased dramatically over the past decade. The research aims

to assess the impacts of oil prices shock on economies and mining index. It is startling that little research has been conducted on

the nexus between oil price shock and mining index directly especially in Indonesia. In order to fill this gap, the newest evidence

comes over the period 2000:01 to 2017:10. This research is using Vector Auto Regressive Model and look in-depth with Impulse

Reaction Function and Granger Causality. First, we find change oil price gives significant impact to mining index in Indonesia and

the causality is bi-directional both that variables. Second, change oil price gives significant impact to inflation but not to Indonesia’s

GDP. Shock of oil price will decrease the value of inflation and exchange rate whereas increase the value of mining index and

GDP. The reaction of that shock only happens in the short run which is quarter two until quarter four. The practical implication of

this research is very useful not only for investor in mining index but also regulator to see the impact of the role Indonesia as a net

oil importer.

Keywords: Oil Prices Shocks, Mining Index; Vector Auto Regressive Model; Impulse Reaction Function; Granger Causality

* Corresponding author:




Implementing Service Science in Circular Economy: The Case of

Organic Fertilizer Producer

Ruth Nattasshaa*, Togar M. Simatupangb, Yuanita Handayatic

a,b,cSchool of Business and Management - Institut Teknologi Bandung, Jl. Ganesha 10, Bandung 40132, Indonesia

Abstract

The circular economy system has been the answer to the problem of decreasing greenhouse gas emission while increasing

productivity. In agriculture sector, this is conducted through the decreased usage of synthetic fertilizers and usage of organic

fertilizer instead. Other than the value of environmentally-friendly, the organic fertilizer is also considerably cheaper than synthetic

fertilizer, which provides the value of being more economically-friendly. However, organic fertilizer producer PT Biokonversi

finds obstacles in establishing market for their product. This research seeks to define the problems within the interaction of PT

Biokonversi and their customers (farmers) and identify possible solutions to handle said problems. The problems are defined using

Soft System Methodology, and the possible solutions are provided utilizing the service science concepts. Future researches

following this research will be related to the implementation of the suggestions and evaluation of the implementation.

Keywords: Circular Economy; Service Science; Organic Fertilizer




Mapping of Coastal Tourism Destination and The Factors

Influencing Visitations of Domestic Tourists: A Case of

Pangandaran

Ibrahim Rashida*, Santi Novanib, Lidia Mayangsaric

a,,b,cSchool of Business and Management, Bandung Institute of Technology, Ganesha Rd. No. 10, Bandung 40132, Indonesia

Abstract

Indonesia is one of the countries where tourism is one of the major contributors to the GDP. There are province and districts in

Indonesia that especially focused on the tourism business, Pangandaran is one of them. As a new district, Pangandaran is still trying

to develop their brand as a tourist destination. This study aims to provide perceptual maps of Pangandaran as a brand compared to

other coastal tourism destination. The study used Multidimensional Scaling (MDS), to inquire about the brand image of various

coastal destination in Indonesia among domestic tourist. Five dimensions consisted of performance, value, image, trust, and

attachment are used to measure destination brand. Further questions are also asked to inquire about factors that may influence

visitation. The result indicates that Pangandaran as a brand is not highly valued by the domestic tourists.

Keywords: Tourism; Pangandaran; Destination branding; MDS




Economic Benefit of Good Public Governance the Case of Local

Government in Indonesia

Yuh Rohana DPS Melialaa, Ratna Wardhanib*

Accounting Departement, Faculty of Economics and Business Universitas Indonesia

Abstract

This study aims to investigate the economic benefits of good public governance in local government in Indonesia during 2011-

2015. Economic benefits are reflected in three economy’s indicators such as human development index, economic growth, and

income inequality. Economic growth is measured by the level of gross regional domestic product and the level of income inequality

is measured by gini ratio. Good public governance is measured by 43 GPG measurements from EKPPD’s reporting result based

on LPPD, which developed from five principles of GPG according to KNKG (2010). This research uses quantitative method and

hypothesis method by using regression of panel data. The results of the study show that first, good public governance has a positive

impact on human development index. Second, good public governance has a positive impact on gross regional domestic product

which can lead the economic growth. Third, good public governance has no impact on the income inequality level.

Keywords: District/City; Economic Growth; Good Public Governance; Human Development Index; Income Inequality



ENTREPRENEURSHIP

AND INNOVATION



Brand Equity Revisited: An Exploration of Branding for SMEs

among Student Entrepreneurs

Andrianto Tanuhardjoa*, Lidia Mayangsarib

1,2School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia

Abstract

This research gathers student entrepreneurs in Bandung and explores their opinion on the general concept of brand. The aims are

to explore the understanding, brand strategy, brand identity, and company dimension from their experience running their own

businesses. Our result reveals that the differences between SMEs and big companies are the story behind the brand in the eye of

customer. SMEs are more approachable and relevant to the customer because of the unique story embedded. This research found

out that in the theory of branding, SME does differ from corporate. Adjustment and revision are needed to make the study of brand

in the term of entrepreneurship more alive, in term of brand assessment in particular

Keywords: Brand Equity, SMEs, Student Entrepreneur, Qualitative Approach

* Corresponding author. Tel.:+62-822-771-9485




Understanding Islamic Urban Women Entrepreneurial Association

in Indonesia: A Service Science Perspective

Iqbal Fauzi Akbar Firdausa*, Utomo Sarjono Putrob, Santi Novanic, Pri Hermawand, Lidia

Mayangsarie

a b c d e Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

The role of entrepreneurial association is important in assisting the growth of women entrepreneurs. Solidarity and togetherness

among individuals inside the circle could help women entrepreneurs in coping with the challenges and realizing opportunities in

their business life. Making use of service science perspective, this study aims to explore the service system within Islamic urban

women business association by combining the viewpoint of association's members using exploratory factor analysis and the

administrator's through in-depth interview. The uncovered service system is the proper beginning to understand how business

association could be the better accelerator for the growth of women entrepreneurship.

Keywords: Women Entrepreneurship, Entrepreneurial Association, Service Science




The Exit of entrepreneurial team: Reasons and Consequences

Zulaicha Parastutya*, Dolores Miskovicb

a,bDepartment of Innovation Managemenzt and Entrepreneurship, Alpen-Adria University of Klagenfurt, University street 65-67, Klagenfurt 9020, Austria

Abstract

Startups in knowledge intensive industries play a significant role for economic growth. They are based on and affected by the

dynamic of exploration and exploitation of new knowledge and technology. More than three out of four startups are founded by

teams. The founding team has imprinting effects upon the firm throughout its life. However, over time, there is dynamism within

the entrepreneurial team, i.e. changes in team members. The exit of a founder might disrupt the configuration of the knowledge

and resources of the firm. We aim to investigate the founder exit from the entrepreneurial team and its implications on the further

development of the remaining team and the firm. To do so, we untangle the conditions of exit regarding the reasons to and

consequences of exit by interviewing members of the founding teams. A multiple case study approach is chosen, because the

qualitative data provides the opportunity to unveil the behavioral process. Overall, the study contributes to the understanding on

entrepreneurial team member exit by providing new evidence on consequences after the exit of their critical “resource”. The

importance of this study also rests in the implications for entrepreneurs, entrepreneurial teams and policy makers who support

entrepreneurship.

Keywords: Entrepreneurial Exit; Entrepreneurial Team, Qualitative Study, Reasons, Consequences

* Corresponding author. Tel.: +43 463 2700 4059




Digital competencies on the model of SMEs fashion entrepreneur

competencies in the era of Asean Economic Community (AEC): a

conceptual framework

Mira Rochimi Mutiaraa*, Ina Primianab, Joeliaty Joeliatyc, Martha Fani Cahyanditod

a,b,c,dUniversitas Padjadjaran, Dipatiukur St. number 35, Bandung, 40132

Abstract

Competence nowadays is closely engaged with the trend of Information and Computer Technology (ICT). New devices,

applications, and technology genres often involve changed or sometimes added competencies. This article attempts to comprehend

the conceptual framework to analyze the relationship between variables of competence-forming factors and Digital Competencies

on the Model of SMEs Fashion Entrepreneur Competencies in the era of AEC. This article is written as the part of a study

concerning the Model of SMEs Fashion Entrepreneur Competencies in West Java, Indonesia. Digital Competencies in this study

is described on several indicators which are competencies that must be owned by SMEs Fashion Entrepreneurs in the era of AEC.

The conceptual framework of this article will be used in the early stages of research on SMEs Fashion Entrepreneurs Competencies

in the era of AEC, which is expected to give contribution to the entrepreneurial development in West Java in particular, and

Indonesia in general.

Keywords: Small and Medium Enterprises (SMEs);Fashion;AEC;Competence;Digital




Developing a Creative Enterprise in a Creative City (Case Study:

Kampong Dago Pojok, Bandung)

Salfitrie R. Maryunania*

School of Business and Management – Institute of Technology Bandung, Jalan Ganesha 10 Bandung, 40132, Indonesia

Abstract

The city of Bandung, Indonesia, was selected to be a pilot project of a creative city by the British Council was due to the fact that

the advanced development of its creative industries. The combination between the topography, demography, cultural and social

patterns of the place and the people have made it an ideal condition for the industries to grow. The paper is trying to depict an

example of an entrepreneurial entity within the creative industries which not only strived to empower the people in what used to

be one of the impoverished kampongs in Bandung, but also ensured their business sustainability by creating a cooperative. A

qualitative research method of interview was applied. The respondent was a team of entrepreneurs who formed a company about

twenty years ago. I had the opportunity to have an interview with the CEO, Nancy Margried, and at the time she explained about

her company, Batik Fractal.

Keywords: Entrepreneurship; Creative Industries; Cooperative; Bandung; Indonesia





Entrepreneurial Passion Domains Small and Medium Enterprises

(SMEs): A Case Study of Buriram Province, Thailand

Adisak Suvittawat

School of Management Technology, Suranaree University of Technology, 111 University Avenue, Nakhon Ratchasima 30000, Thailand

Abstract

The objective of this research is finding the entrepreneurial passion and enthusiasm variables which effect on enthusiasm for

entrepreneurship and persistence of business of small and medium enterprises (SMEs) in Buriram Province, Thailand by using

descriptive statistics. The enthusiasm for entrepreneurship parameters have been identified in 5 parameters, commitment to the

product or service, enthusiasm for competition, passion for entrepreneurship, enthusiasm for opportunity and enthusiasm for

development parameters. This research finds that the enthusiasm for entrepreneurship consists of commitment to the product or

service which mean is 3.50 and S.D.=0.81, enthusiasm for competition which mean is 3.50 and S.D=0.74, passion for

entrepreneurship which mean is 3.77 and S.D=0.79, enthusiasm for opportunity which mean is 3.58 and S.D=0.83 and enthusiasm

for development which mean is 3.78 and S.D=0.84.

Keywords: Entrepreneurial Passion; Commitment to Product or Service; Enthusiasm for Competition; Passion for Entrepreneurship



Should SMEs Diversify? An Exploratory Study

Nia Kurniati Bachtiar

Univeritas Muhammadiyah Magelang, JL. Tidar no. 21 Magelang, 59214, Indonesia

Abstract

Diversification is considered as one effective tool in expanding the business. However, different finding discovered in Small and

Medium Enterprises (SMEs). This qualitative study revealed that SMEs have to encounter essential issues before deciding to

diversify. Hence, this article argues that SMEs should not diversify especially in the stage 1 (one) and 2 (two) of their growth.

Instead of diversification, building their competitive advantage is majorly discovered by this research as the most powerful strategy

to develop the SMEs’ business. In explaining the diversification decision within SMEs, Threat, Opportunity, Weakness and

Strength (TOWS) analysis is utilised to gain better understanding about it. Finally, this article provides proposed growth stage

model to illustrate the most critical stage a business has to deal.

Keywords: SMEs; Entreprenurship; Strategy; Diversification; Growth Stage Model



SME Growth and Sustainability Conceptualization in Indonesia

Aang Noviyana Umbaraa,c*, Takashima Ryutab, Wawan Dhewantoc

a,bDepartement of Industrial Administration, Faculty of Science and Technology, Tokyo University of Science, 2641 Yamazaki, Noda, Chiba, Japan

bSchool of Business and Management, Institute Technology of Bandung, Jalan Ganesha 10, Bandung 40132, Indonesia

Abstract

The increasing effort to push the growth of Small and Medium Enterprise (SMEs) argued to play a critical role to uplift the economy

in a country. The growth should be achieved to create long-term goals sustainability that brings forth the need of SMEs to contribute

and share benefits to the society, environment, and economy. Nevertheless, the researches related to the current SMEs growth and

sustainability in Indonesia are scarce as well as the lack of a comprehensive conceptual framework that hampers the theoretical

understanding in the ongoing scholarly discussion. This study attempts to provide a conceptual framework to aid the holistic

research that can shed more light on our understanding of the interactions between the factors affected growth, the SMEs growth,

and sustainability. Finally, the paper also provides proposition and further research agenda that appropriate to help the sustainable

growth of SMEs in Indonesia.

Keywords: Small and Medium Enterprises; Growth Factors; Sustainability; Indonesia.





Factors Affecting Intellectual Assets Management in SMEs

Safrani Nurfatiasaria*, Nurshareena Azreenb, Eko Agus Prasetioc, Yoshiyuki Matsuurad

a,b,cMaster of Science in Management, School of Business and Management, Institute of Technogy Bandung, Indonesia dGraduate School of Innovation and Technology Management, Yamaguchi University, Japan

Abstract

SMEs give positive contribution to the economy growth and play an important role in the development of both industrialized and

developing countries. Considering the trend of globalization in the 21st century will continue relentlessly, it is vital to recognize

that open innovation can accelerate the internationalization of innovation for SMEs. However, while collaborating with other firms

have often benefited SMEs, they may oblige SMEs to share their intellectual asset with other firms. Therefore, open innovation

commonly give rise to issues related to intellectual assets in general and intellectual property (IP) in particular. Intellectual assets

management is believed to be very important especially in technology-oriented SMEs. However, SMEs are unlikely to invest in

creating a strong IP position unless they are aware of the value of managing their intellectual assets and of the appropriate tools

that can be deployed to this end. This paper aims (i) to understand the current practice of intellectual assets management in SMEs

particularly in developing country, (ii) to investigate the awareness of SMEs particularly in developing countries to the importance

of intellectual assets management to their company; and also (iii) to examine the way SMEs secure their intellectual assets when

collaborating or engaging in open innovation.

Keywords: SMEs; Developing Countries; Open Innovation; Intellectual Assets Management; Trade Secret




The Investigation of SMEs' IP Management at Different Growth

Stages: A Preliminary Study in SMEs

Eko Agus Prasetioa, Dina Dellyanab, Safrani Nurfatiasaric*

a,b,cSchool of Business and Management, Institute of Technology Bandung, Indonesia

Abstract

To remain competitive in the globalization era, SMEs should expand their distinct resources to better satisfy customer needs and

limit imitative competition. The undertake action that can be done to manage its distinct resource is through filing intellectual

property as formal protection, yet, only a small number of SMEs in Indonesia has registered to formal IP protection. The internal

environment of SMEs which different in each stage of growth due to the distinction of availability of resources can be a factor,

accordingly, this preliminary study attempted to investigate SMEs’ consideration toward intellectual assets management on each

growth stage. As the number of respondent is considered insufficient to conduct the regression analysis, we try to get insight through

descriptive data analysis. The result shows that different consideration seems to occur in each stage of growth, particularly in

deciding IP protection management between SMEs in the inception stage and the growth stage. The SMEs in the inception stage

most likely prefer to register IP in formal way, while SMEs in the growth stage most likely to do continuous innovation in terms

of successive product development without considering for protection.

Keywords: Small Medium Enterprise, Intellectual Property Management, Stage of Growth




Innovation Radicalness and Digitalization among Different Breeds

of Entrepreneurs

Reza Ashari Nasutiona*,Elis Qodariahb, Devi Arnitac, Linda Sendy Lediana Rusnandid

School of Business and Management, Institut Teknologi Bandung, Indonesia

Abstract

This study is aimed at assessing the innovation radicalness and digitalization among different types of entrepreneurs in Bandung

and how innovation capacity and digital readiness of the entrepreneurs affect those variables. It applied both qualitative and

quantitative approaches. Qualitative approach using content analysis was used to gauge product innovation and digitalization level.

The authors observed the respondents’ website and collected any information about the products being offered and the underlying

business process. The content is validated against the criteria of innovation complexity and digital capability of this study.

Quantitative method is performed to measure innovation capacity and digital readiness level among entrepreneurs through self-

assessment questionnaires. The study reported different levels of innovation radicalness and digitalization among entrepreneurs in

Bandung. Innovation capacity and digital readiness level are similar but not the implication toward innovation radicalness and

digitalization of the business process. Market situation and competition may affect the degree of innovation and digitalization

among entrepreneurs in Bandung. Therefore, the authors suggest further research to confirm the influence of those factors.

Nevertheless, this study can be considered as a pioneering endeavor as it looks at entrepreneurs from a different perspective. It

offers a classification of entrepreneurs that will promote a more extensive research in the future. The delineation between non-

technological (ordinary) entrepreneurs and technopreneurs was not fully comprehended. Accordingly, any research that attempt to

understand the characteristics of each type of entrepreneur may be hampered by this situation. Finally, the result of this study will

broaden our knowledge on the establishment of different kinds of entrepreneurs that play different roles in a nation’s economy.

Keywords: Entrepreneurship, Technopreneurs, Innovation Capacity, Digital Readiness, Innovation Radicalness, Digitalization And Digital

Capability





Customer Perception Influence towards Cash Flow Projection for

Event Planner in Bandung (Case Study: Seperti yang Diimpikan

Event Planner)

Nisita Nola Adalea Agmaa*, Raden Aswin Rahadib

aSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganeca no. 10, Bandung 40116, Indonesia

Abstract

This research discusses about expanding event planner company by creating new product to reach new market based on consumer

perception and cash flow projection. This research conducted in Bandung area with 18-30 age range. According to conceptual

framework in this research, online questionnaire conducted to get consumer perception information. Factors from conceptual

framework and company data used to design the questionnaire. Current event planner packages used to get the price based on

consumer perception and tendency to choose the package. Consumer perception information is being used for cash flow projection

and finding factors affecting the tendency to choose event planner package. The findings from this research is the most important

factor to consider in creating new package for event planner in Bandung is price. Price for some current packages already suitable

for the market. Differentiation between package and detail explanation is important for the customer to make the decision.

Keywords: Customer Perception; Cash Flow Projection; Event Planner; Event Planner Package; Bandung.



FINANCE AND INVESTMENT



The Impact of the Fama-French 3-Factor Model and the Enterprise

Value Multiple on Returns

Isrochmani Murtaqia*, Sylviana Maya Damayantib, Raden Aswin Rahadic

Abstract

This study analyzes the impact of enterprise value multiple (EV Multiple), and the Fama-French 3-Factor Model comprising book-

to-market, beta, and market capitalization, on security returns on 30 big market capitalization stocks listed in the Jakarta Stock

Exchange (IDX) for the period of 2014 to 2016. The independent variables serve as a proxy for the following; EV Multiple for

investing risk on the part of investors, book to market for value risk, beta for non-diversifiable risk, and market capitalization for

size risk.

The empirical evidence in this study shows that beta has a significant and positive impact on security returns; this is consistent with

Sharpe, Lintner, and Black who created the Capital Asset Pricing Model (CAPM) in which non-diversifiable risk as measured by

beta was touted the only significant risk of an asset, and that beta as a measure of non-diversifiable risk, when taken in isolation, is

positively related to security returns. However, this is inconsistent with the finding made by Fama and French (1992) in which

beta does not have a significant impact on security returns when beta is included in the Fama-French 3-factor model.

The empirical evidence in this study shows that book to market has a significant and positive impact on security returns; this is

consistent with the findings made in the Fama French 3-factor model. The book-to-market signals distress; in other words, the

higher the book-to-market ratio, the higher is the firm’s distress; therefore the higher are the security returns expected by investors

of said firm.

The empirical evidence in this study shows that the Enterprise Value Multiple has a significant and negative impact on security

returns. This is in line with the finding made by Laughran and Wellman (2010), and by Iglejas et al (2017).

The empirical evidence in this study shows that market capitalization has a significant and negative impact on security returns. This

is consistent with the findings made in the Fama French 3-factor model. They found that the security returns on the small

capitalization stocks at NASDAQ, Amex, and NYSE were on average higher compared to that of the big capitalization stocks; in

Fama’s words “smaller stocks have higher average security returns”

Keywords: Fama-French 3-Factor Model, EV Multiple, security returns





Selecting Strategic Investment Financing for Expansion Shipyard

Project in Batam

Adiel Andhika Putraa*, Uke Marius Siahaanb

a,bSchool of Business and Management, Institut Teknologi Bandung

Abstract

The role of the shipbuilding industry is increase since the issuance of The Presidential Instruction no. 5 of 2005 on the empowerment

of the national shipping industry. Government policy to enforce Cabotage principle aims to empower the role of the national

shipping industry, so be able to operate in their own country. The Government concern about shipping industry automatically leads

to an increase demand for the national fleet.

PT. XYZ Shipyard (Persero) is a state-owned company that established in 1990, which was the result of merger from four integrated

shipbuilding companies. In the last five years, financial condition of PT. XYZ Shipyard (Persero) was not good, proven with loss

in their income statement 2013-2017. As a state-owned company that loss in previous years, PT. XYZ (Persero) received Rp 95.500

Million from Government Capital Investment Fund (Penyertaan Modal Negara) sourced from APBN of Fiscal Year 2015 to

increase their business capacity. The company conducted a study in 2016 with result to build Slipway with capacity up to 17.500

DWT and whole project investment required Rp 362.372 million cost.

Currently, PT. XYZ already have 106.248 meters’ land that valued Rp 1.100.000 per meters, which the total value is Rp 116.872

Million; and also Rp 95.500 million Government Capital Investment Fund (PMN). So, another Rp 150.000 million investment is

still needed to fulfill the project cost. This research will focus on the financial feasibility of the project, and also purposed external

funding strategy. There are four alternatives purposed; Joint Operations, Venture Capital, Bank Loan, and Two Steps Financing.

The Joint Operations is considered as the best funding alternative since it had the lowest cost and the best in financial feasibility.

Keywords: Shipyard; Shipbuilding; Business Strategy; Strategic Financing; Venture Capital; Bank Loans.






The Application of Minimum Demand Guarantee Scenario in

Investment Analysis of Hospital Expansion Project - Case Study Of

XYZ Eye Hospital

Nindya Kumala Dewiª*,Taufik Faturohmanᵇ

a,bInstitut Teknologi Bandung, Jalan Ganesha No. 10, Bandung 40132

Abstract

Blindness and visual impairment is one of the main diseases that Indonesia currently faces. XYZ eye hospital as the national eye

center wants strengthen its role as a national eye center which is responsible for the eye health of the people of Indonesia. The main

problem that is faced by XYZ Eye Hospital is that currently it experiencing excess patient compare to the medical staff available

which can be seen by how crowded number of visitors come every day. With its plan to expand, this research objective is to answer

how much capital funding is needed for the expansion project, and whether it is feasible to run financially and how minimum

demand guarantee can improve the viability of this project. Discounted Cash Flow (DCF) and Monte Carlo Simulation method

were used in this study. Minimum Demand Guarantee (MDG) scenario was proposed as a risk mitigation caused by the uncertainty

of demand forecasting. The result shows that the expansion project is worth to pursue and MDG scenario can be an alternative

solution that could lessen the potential loss caused by demand risk

Keywords: Hospital; Investment Feasibility; Minimum Demand Guarantee.




Financing Assessment to Support Business Expansion of PT. Patra

Jasa

Lolita Febriyanaa*, Subiakto Soekarnob

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha 10, Bandung 40132, Indonesia

Abstract

Currently, Indonesia Government intense to promote Indonesia tourism industry to domestic and international tourists. The

government also build several facilities and infrastructures to support the tourism industry. These efforts give the positive impact

for Indonesia economy and tourism industry, including the hospitality industry. Therefore, PT. Patra Jasa as one of the companies

who is engaged in hospitality industry plans to expand its business. This research aimed to make an analysis for PT. Patra Jasa to

obtain an additional capital for expanding its hospitality business, especially the analysis of conducting IPO. The valuation analysis

using free cash flow to firm (FCFF) model and P/E ratio model. This research found that the best alternative for PT. Patra Jasa to

obtain the additional source of funds is using the combination of debt and conducting IPO. PT. Patra Jasa is eligible to conduct IPO

and its equity value increase from IDR 10,041,538,000,000 to IDR 12,891,522,000,000 after IPO. The dilution effects of IPO to

existing shareholders are reducing ownership percentage, reducing the voting control, reducing its earnings per share and increasing

the company’s value without reinvesting additional fund for the company.

Keywords: Dilution Effect; Free Cash Flow to Firm; Hospitality Industry; Initial Public Offering; Valuation




Financial Assessment Of Project Sustainability Using Altman Z-

Score Model (Case Study PT. Dirgantara Indonesia Aerospace)

Rizella Tiaranitaa*, Asep Darmansyahb

a,bMBA-ITB, Gelap Nyawang 1st, Bandung 40132, Indonesia

Abstract

The demand for aircraft product is increasing and lead to production for making new aircraft should increase too. PT. DI as one

aircraft manufacturing company go through the fact that the sales from aircraft and profit of the company were declining and make

concern to company sustainability in the future. The financial assessment will analyze using financial ratio, growth rate, Altman

Z-sore model, and sensitivity analysis. The result from the financial ratio calculation showed that the company did not perform a

good financial performance. Based on calculation growth rate showed that company needed the external fund for sustainable

growth. The z-score value used to predict the probability of a company will go into bankruptcy or not. The z-score value of PT. DI

in 2016 is 1.92 (grey zone) that mean that company has financial difficulties, but are saved and possibly bankrupt depends on the

decision of the company’s management policy as a decision maker. Sensitivity analysis used to increasing value each variable into

the safe zone and resulted that company should increase 32% for each variable in Altman formula within simultaneously. This

increasing expected to lead PT. DI in the safe zone, and affected for the future sustainability company.

Keywords: Financial Assessment, Altman Z-score, Sustainability, Aircraft Industry, Financial Ratio

* Corresponding author. Tel : 081217078316

E-mail address : [email protected]



How do Public and Corporate Governance Associated with

Performance? Empirical Evidence of Indonesian Privatized SOEs

Hilda Rossieta*

Faculty of Economic and Business, Universitas Indonesia, Gedung Pasca Sarjana, Kampus UI. Depok 16424, Indonesia

Abstract

This research argues that only addressing corporate governance effect on performance is inadequate considering the State as

dominating shareholders. The State has social obligations which often contradictory to SOEs commercial objectives to pursue

profit. Accordingly, not only the State could influence SOEs commercial performance through decision making process of the

SOEs management, but the State could also interfere in the formulation of public policy related to particular social obligations

which potentially hurt SOEs commercial performance. To close the gap, this research uses empirical model to investigate the effect

of public governance as well as corporate governance on commercial performance. Corporate Governance variables are represented

by State Ownership and Organisational Restructuring, while Public Governance variables proxies are Market Competition and CG

rule. As independent variables, commercial performance covers two variables, these are: (i) Price to Book Value (PBV) to capture

the interest of public ownership as minority interest; (ii) Return on Assets (ROA) which represents long term return as the interest

of State as controlling interest. Empirical test result from both market (i.e., PBV) as well as management performance indicators

(ROA) suggest that factors which persistently having positive effect on commercial performance are: (i) organizational

restructuring for corporate governance aspect; and (ii) market competition for public governance aspect. In addition, Government

Ownership as Corporate Governance aspect is negatively associated with financial performance only, while CG Rule is public

governance aspects that is positively associated with market performance only.

Keywords: Privatization; SOEs’ Commercial Performance; Corporate Governance; Public Governance; Controlling Interest; Minority Interest;

Organizational Restructuring; Market Competition; CG Regulation

* Corresponding author. Tel.: +62-21-788 0746/47/ 727 0164; fax: +62-21-788 0745.

E-mail address: [email protected]; [email protected]




Determinants Analysis of Net Interest Margin Using Bank-Specific

Variables and Macroeconomic Factors of Commercial Banks in

Indonesia

Fachri Dwiansyaha, Achmad Herlanto Anggonob*

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No.10, Bandung and 40132 , Indonesia

Abstract

Banks have a major role that affects the economic growth in a country. Banking serves as the main source of financing in order to

drive the economic growth. Banks also have a vital role in the allocation of public deposits funds. Given the important role of bank

in a country economy, the performance of commercial banks gets a great deal of attention in the economic literature. In order to

evaluate bank performance, this research will use profitability perspective.

This study aims to identify the relationship between bank-specific variables: Bank Size (LNSIZE), Capital Adequacy Ratio (CAR),

Credit to Total Asset Ratio (CRDTA), Operating Expense to Operating Income Ratio (BOPO), Non-Performing Loans (NPL) and

macroeconomic factor, Inflation Rate (INFL) and Gross Domestic Products Growth (GDP) towards Net Interest Margin (NIM) in

19 commercial banks in Indonesia, which included in BUKU 3 and 4 in the period of 2008-2017. The data is analyzed using panel

data regression with random effect method.

The findings of this research indicated that the independent variables that Capital Adequacy Ratio, Credit to Total Assets Ratio,

Non-Performing Loan, and Inflation Rate appeared to have positive significant relationship to Net Interest Margin, while Bank

Size and Operating Expense to Operating Income Ratio indicated to have a negative significant effect toward Net Interest Margin

in the significance level of 0.05.

Keyword : Indonesia; Net Interest Margin; Bank Specific Variables; Gross Domestic Products; Inflation Rate

* Corresponding author. Tel.: +62-813-1237-3900.




Optimizing BRIlink Branchless Bank Model in Papakmanggu

Village

Steven Hansa*, Sylviana Maya Damayantib

a,bBandung, Institute of Technology, Jl. Ganesha no 10, Bandung, 40132, Indonesia

Abstract

There is branchless banking program in Papakmanggu village called BRIlink. This program aims to enhance the villager’s

economic condition. However, this program has not been optimized. The villager lacks of financial literacy and it is shown by there

are many of villager still borrowed money from loan sharks even though they already have saving account in bank. Therefore, the

researcher conducts a research to find a financial literacy module that suitable for farmer in Papakmanggu. The researcher got the

data by qualitative approach with interview method. This data will be analyzed by descriptive statistic. The analysis is used to

conducted the financial literacy module. Then the module was evaluated by using pretest and posttest. The result of pretest and

posttest was analyzed by paired sample T-Test and gain score to know the increasing of financial literacy level of farmer in

Papakmanggu. There were 72 farmers that joined this research. The result show that the mean of pretest is 4,6389 and the mean of

posttest is 7,0139. The posttest is increasing 2,375 points from the pretest. Moreover, the financial literacy module increases the

level of farmer’s financial literacy with the gain score of 0,443 and it is categorized as medium improvement

Keywords: BRILink; Financial Conclusion; Financial Literacy; Papakmanggu

* Corresponding author. Tel.:+62-857-949-392-00





Determinants of Capital Structure of Banking Sector in Indonesia:

Case Study on Commercial Banks in Indonesia from 2008 to 2017

Nanda Bagus Nurhidayata*, Achmad Herlanto Anggonob

a, bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung 40132, Indonesia

Abstract

This study examines the determinants of capital structure of banking sector in Indonesia using a sample of commercial banks

categorized as BUBA (Bank Unit Business Activities) 3 and BUBA 4 during the period of 2008 to 2017. As much as 19 commercial

banks are selected from the result of purposive sampling. Debt to Assets Ratio (DAR) used as the proxy of capital structure. While

determinants being observed in the research are profitability which measured by Net Interest Margin (NIM), risk is determined by

Non Performing Loan (NPL), Loan to Deposit Ratio (LDR) is used as the indicator of liquidity, capital adequacy is calculated by

Capital Adequacy Ratio (CAR), size that measured from natural logarithm of total assets, growth is calculated by percentage change

in total assets, tangibility is determined by fixed assets to total assets ratio, and efficiency that measured by Beban Operasional

terhadap Pendapatan Operasional (BOPO) ratio. Panel data regression used to analyze the data using statistical tools of EViews

9.0. The result shows that capital adequacy, size, tangibility, and efficiency are having a negatively significant relationship to the

capital structure, while liquidity and growth found to be positively significant to the capital structure. Overall pecking order theory

become the most suitable prediction in explaining the capital structure decision made by the bank in Indonesia.

Keywords: Debt to Asset Ratio (DAR); Net Interest Margin (NIM); Non Performing Loan (NPL); Loan to Deposit Ratio (LDR); Capital

Adequacy Ratio (CAR); Size; Growth; Tangibility; Beban Operasional terhadap Pendapatan Operasional (BOPO); Panel Data Regression.





Financial Literacy and Demographic Factors Impact on Investment

towards Undergraduate Students in Bandung

Nathania Kristianaa*, Ahmad Danu Prasetyob

a,bSchool of Business and Management ITB, Bandung, Indonesia

Abstract

For providing income in the future, assets that is now owned can be invest and sold at a higher price compared with the buying

price. This effort for obtaining greater amount of assets in the future called investment. Unfortunately, the number of investors in

Indonesia is still considered low, means the knowledge of managing their financial resources effectively through investment still

poor. For this reason, financial literacy is expected to impact investment. Different previous studies found that financial literacy or

demographic factors impact investment. This study combined previous findings and observes how financial literacy and

demographic factors could impact undergraduate student to have investment. This research uses quantitative method to collect data

using online questionnaire towards undergraduate student from 3 selected colleges in Bandung. Methodology that being used are

multiple linear regression to know the impact of financial literacy and demographic factors towards investment. The findings show

that financial literacy, monthly income, and working income are significantly impact undergraduate student’s investment value.

Keywords: Investment; Financial Literacy; Demographic; Undergraduate Student




Identifying the Proper Crowdfunding Design for Entrepreneurs in

Indonesia

Jennifer Yusan Changifera*, Deddy Priatmodjo Koesrindartotob

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

A start-up business used to borrow money from bank, venture capitalists, grants, angel investors, financial institutions or any

traditional funding to develop their business. This conventional method spent a lot of time and not easy as they are still new on the

market. Crowdfunding can be an alternative especially for start-up in term of funding. The rapid advancement technology in

supporting crowdfunding to be more happening. Through a website, start-ups can spread a campaign without time and space barrier

targeting their prospectus investors to give them funding. The concept of crowdfunding has existed from a long time ago but it

appearance in a form of crowdfunding globally has begun since 2003. Followed by the first crowdfunding platform happened in

Indonesia 8 years later. This beginning actually not left behind compared by others Asian countries but the development seems

being hung up. The early movers could not survive due to poor respond from the market. Whereas, Asian shown a positive headway

from time to time.

This study is identified the situation in Indonesia regarding to crowdfunding environment. Then, finding the gap by looking at the

crowdfunding practices in European Union and Asian countries and also the role of regulation in crowdfunding. Target of the study

is entrepreneur that is why authors focusing the finding on equity and reward-based crowdfunding. So, at the end, the best practice

that have found from the implementation in EU and Asian country will lead to a conclusion that mostly a homogeneity among

platforms according to the characteristics that being analyzed. At the end, The practices which is successfully implemented by the

prior platform can also giving a view for Indonesian crowdfunding start-up and knowledge for all.

Keywords: Start-up; Reward-Based Crowdfunding; Equity-Based Crowdfunding; European Crowdfunding Platforms; Asian Crowdfunding

Platform; Crowdfunding In Indonesia

* Corresponding author. Tel.:+62-8788-3969-296




Bank Capital Structure and Adjustment Speed: Evidence from

Indonesian BUBA3 and BUBA4 Banks

(Case Study: Period 2008-2017)

Randy Perdana Lawrentiusa*, Achmad Herlanto Anggonob, Atika Irawanc, Imlati Helmid

a,b,c,dSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung 40132, Indonesia

Abstract

Modigliani and Miller (1958) theorem proposed that value of the firm is independent from its decision on capital structure.

However, in reality, there exist a set of non-ideal conditions. There are frictions in capital market, such as cost and benefit in capital

structure preference. Indonesian Banking sector is no different. Whilst there is supervisory intervention in the minimum capital

ratio required of 8% to hold, Indonesian Banks show consistent capital ratio measured by capital adequacy ratio 17.43% in average,

above 8% from the first quarter 2008 until fourth quarter 2017 for BUBA3 and BUBA4 public listed banks. The tendency of

Indonesian Banks held capital ratio above minimum implies such requirement from regulatory might not be binding and its capital

structure decision may influenced by other factors aside regulatory supervision. Previous literatures suggest that banks may have

their target capital structure. Like any other non-financial firms, profit-maximizing banks may exploit capital structure in friction

world and gain benefit in tax shield and asymmetric information. Moreover, aside from gaining benefits in standard friction,

banking sector has unique trait from the relative cheaper in holding more debt compared to other non-financial sectors. In harmony,

benefits are responded by costs. Such circumstances motivate banks to adjust their capital ratio to the optimal over time based on

several fundamental factors observed.

This study examines the determinants of banks capital structure and the adjustment speed of capital adequacy ratio measured as

excess of 8% (CARBUFF). The sample used is 17 public listed Indonesian banks categorized as BUBA3 and BUBA4 from period

2008Q1 to 2017Q4. Two distinct stages panel data regression analysis is conducted in this study using partial adjustment model to

capture banks adjustment speed. Result from this study show that trade-off theory is supported by risk proxy (LLP, LDR and

ASSRISK) that significantly affect CARBUFF with positive relationship. However, one of the risk proxy (RWA) show negative

relationship imply the existence of moral hazard behavior. Decreases in efficiency, (COIN) lead to decreases in CARBUFF.

Profitability (PROF) has the highest coefficient affect CARBUFF with positive relationship promote pecking order theory

relevance. Earning proxy (ROE) has negative relationship with CARBUFF, with implication of signaling theory and serves as

alternative cost of capital. Growth opportunity (MTB) has positive relationship promoting market timing theory. On the other hand,

Size (LNSIZE) positive relationship with CARBUFF suggest as banks grow in size, pecking order theory become more relevant

due to probability of higher profits may be generated and result in availability of internal source of funding. This study proves that

there is evidence that Indonesian BUBA3 and BUBA4 banks have optimal capital structure based on observed fundamental

conditions and make adjustment toward their target capital ratio with speed of 25% per quarter. This is relative faster than other

non-financial firms, implying that Indonesian BUBA3 and BUBA4 banks were faced with lower adjustment cost and have

advantage in their assets liquidity.

Keywords: Capital Structure; Bank; Capital Adequacy; Trade-off Theory; Adjustment Speed; Partial Adjustment Model





Gas Field Development Alternatives Evaluation Using Real Options

– Case in Production Sharing Contract in Indonesia

Dony Ilham Ratmana*, Erman Arif Sumiratb

abSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha 10, Bandung, Indonesia

Abstract

Increased volatility of oil price and the shift of oil and gas field to frontier location such in offshore deep water has made it more

important for investment decision shall reflect understanding of all risks to economic value. Capital budgeting valuation method

using Discounted Cash Flow (DCF) which performed under rigid assumptions underestimate the extent of uncertainty and

flexibility in project alternatives. Real Options method which acknowledge the value of uncertainty and flexibility has been

introduced to complement DCF to sufficiently provide references for investment decision making. This study utilizes DCF and

Real Options approach for valuation of offshore deep water gas field development in Indonesia under production sharing contract

fiscal term to extent the degree of project development alternatives evaluation. Analysis conducted using quantitative modelling

and simulation utilize Monte Carlo and Real Options binomial method. Initially, under static DCF approach, analysis suggested

that no other alternatives more compelling than initial alternative of built new FPU (Floating Production Unit). However, by

incorporating managerial flexibility and uncertainties using Real Options, the results advise different alternative to be pursued

under different considered scenarios and also indicate that approval of production period extension is crucial factor to overall

profitability of the project.

Keywords: Binomial, Capital Budgeting, Production Sharing Contract (PSC), Real options, Oil and Gas Exploration and Production

*Corresponding author.



Firm-Specific Determinants on Leverages Across Sectors in

Indonesian Listed Companies

Satriyo Budi Cahyonoa*, Arvinder Singh Chawlab

aResearch Scholar, Punjabi University, Patiala, India bProfessor, Punjabi University.Patiala, India

Abstract

The study “Firm-Specific Determinants on Leverage across sectors in Indonesian Listed Companies” analyzes the influence of

firms-level determinants of capital structure on the leverages of the companies listed on the Indonesian Stock Exchange (IDX). By

making use of unbalance panel dataset sample, we found that firm-level of determinants aptly explains the three types of leverage

measurements viz. total leverage, short-term leverage, and long-term leverage. Using full sample data, it was found that firm-level

determinants explain those leverages to be approximately 71.24%, 62.78%, and 65.50% respectively. This study also further

analyses the influence of these determinants on leverages across sectors. This study shows that sign of relationships and magnitude

of impacts of those variables on leverages are varied across sectors, which implies that sectoral behavior indirectly influence

borrowing policy which should be considered by firm’s managers.

Keywords: Capital Structure; Sector; Determinants; Indonesia


E-mail address : [email protected]




Family Ownership Structure, Leverage, and Capital Expenditure in

the Emerging Indonesian Market

Miranda Hapsaria*, Junino Jahjab

a,bMaster of Management Faculty of Economics and Business, Universitas Indonesia, Jl. Salemba Raya No.4 Jakarta, 10430, Indonesia

Abstract

The alignment effect in a concentrated family ownership structure reduces agency costs between managers and shareholders. This

view is related to the control rights of the family majority shareholder to choose the board of directors and to determine the

company's decisions on leverage (financing decisions) and capital expenditure (investment decisions). This study aims to

investigate the effect of family ownership structure on leverage and corporate capital expenditure, within family firms in the

emerging Indonesian market. The determinants variables include family ownership dummy variable, growth opportunity, firm size,

cash ratio, profitability, and asset tangibility are examined the effect on firm leverage and capital expenditure as the dependent

variables. The research used Fixed Effect Least-Squares Dummy Variable (LSDV) regression and EViews statistical application

to analyze a panel data sample of 165 publicly companies listed on Indonesia Stock Exchange during the observation of 2012-

2016. The results find empirical evidence of a significant negative relationship between family ownership structure and firm

leverage and a negative relationship between family ownership structure and capital expenditure investment decisions in family

firms in Indonesia.

Keywords: Family Ownership; Leverage; Capital Expenditure; Alignment Effect; Agency Costs




Analyzing Campaign Characteristics Influenced Backers Decision

to Fund in a Reward-Based Crowdfunding to Create Campaign

Strategy in Indonesia: A Preliminary Study

Dita Anindya Kartikaa*, Deddy Priatmodjo Koesrindartotob

a,bSchool of Business and Management, Institut Teknologi Bandung, 40132, Bandung, West Java, Indonesia.

Abstract

Crowdfunding platform has become an alternative way of financing to funding in a social aspect, creative project or business idea.

This platform has been helping to fund a specific amount of money to help the creator realizing the idea. In Indonesia, a few number

of crowdfunding platform start to grow and being a well-known platform to fund money. But the number of the crowdfunding

platform in Indonesia is still low compared with other country scattered around Indonesia. Because of that fact, is still unclear for

the creator in Indonesia to determine which one is the best campaign strategy that can be suitable to use in Indonesia to attract a

large number of backer to contribute in the project. Thus, this study is conducted to determine what are the factors in the campaign

affect the successfulness of the project. Therefore, from this research will come out the suitable campaign framework to be

implemented in crowdfunding campaign in Indonesia so it can attract a lot of backers. The analyze will be conducted based on

source credibility model such as attractiveness and trustworthiness.

Keywords: Crowdfunfding; Crowdfunding Platform; Campaign; Campaign Strategy




Determinants Bank Deposits by Using Bank Specific Variables and

Macroeconomic Factors of Commercial Banks in Indonesia

Fasya Nur Fadilah Putria*, Achmad Herlanto Anggonob

a,b Jl. Ganesha No.10, Bandung and 40132 , Indonesia

Abstract

The purposed of this study is to relationship the relationship between bank specific variables; Net Interest Margin (NIM), Loan to

Deposits Ratio (LDR),Net performing loan (NPL) and macroeconomic factors; Inflation rate (INFL) and Growth Domestic Product

(LnGDP) toward Bank Deposits in Indonesia. This research is done by using panel data regression analysis with Random Effect

Method (REM) and the sample used 19 commercial banks in Indonesia which are included in the BACB 3 and 4 category in the

period 2008-2017 and use quarterly data

The result shows that NIM, LDR have negative significant relationship with Bank Deposits and Inflation rate and Growth Domestic

Product have positive significant relationship toward Bank Deposits. Meanwhile for Net performing loan (NPL) has insignificant

relationship to Bank deposits.

Keywords: Bank Deposits; Indonesia; Bank Specific Variables; Macroeconomic Factors




The impact of political connection on cost of debt with corporate

governance as a moderating variable: evidence from Indonesia

Ratna Emiliaa*, Ratna Wardhanib

a,bAccounting Departement, Faculty of Economics and Business Universitas Indonesia

Abstract

This research aims to examine the impact of political connection on cost of debt with corporate governance as moderating variable.

Sample of this thesis are non-financial industries companies which listed in Indonesian Stock Exchange on 2012-2015 with total

176 companies. The measurement of political connection in this study using Faccio (2006) model and the cost of debt measurement

using Bliss and Gul (2012) model. The first result of this thesis indicates that political connection has positive influence on cost of

debt. Second, corporate governance has negative impact on cost of debt. Third, corporate governance as a moderating variable

strengthen the positive relation between political connection and cost of debt. The implication of this thesis is by the presence of

the influence of political connection in the company, can reduce the cost of debt are getting higher due the creditor assume that the

company which has political connection riskier than a company that did not have any political connection. Good corporate

governance can reduce the impact of political connection.

Keywords: Political Connection; Cost of Debt; Corporate Governance


E-mail address: [email protected]; [email protected]



Speed of Adjustment towards Capital Structure Target in Indonesian

Property and Real Estate Companies

Nadia Nurlaila Badrinaa*, Subiakto Soekarnob

a,bSchool of Business and Management Institut Teknologi Bandung, Jln Ganesa no. 10, Bandung. 40132, West Java, Indonesia

Abstract

This study aims to explain the empirical evidence of the determinants of capital structure in both static and dynamic model of

property and real estate industry in Indonesia during the period of 2008-2017. This study used multiple regression method to test

the determinants of capital structure; growth opportunity, size of firm, dividend payout, profitability, tangibility, and liquidity. The

dynamic method used the lagged version of the static variable plus lagged leverage. This paper proved that property and real estate

industry has a target capital structure and the speed of adjustment towards said leverage is 47.65% each year.

Keywords: Leverage; Capital Structure; Dynamic Capital Structure; Speed of Adjustment; Property and Real Estate




Relationship between Childhood Consumer Experience and

Financial Literacy Index of Young Adult

Farissa Anindya Putria*, Sylviana Maya Damayantib

a,bSchool of Business and Management Intitut Teknologi Bandung, Bandung, 40132, Indonesia

Abstract

As the complexity of financial world increase, the term financial literacy become globally recognized. Inadequate financial literacy

on young adults resulted on the inability and tendency to choose wrong financial decisions in the adulthood. It is found that in

Indonesia by 2016, out of 100, 67 people use financial product and service while only 29 understand how it actually works. This

study try to examine the childhood consumer experience and parents’ education which expected to influence the level of financial

literacy. Linear regression is used to assess the correlation between financial literacy and each variable. To measure the financial

literacy index, the author use factor analysis weight and categorize the level of financial literecy into three groups. The

questionnaires dispersed in DKI Jakarta and West Java as the best two province which citizen are financially literate, yet both are

the most targeted province to do investment scams. This study indicates that childhood consumer experience is significantly

influence the level of financial literacy. Meanwhile, parents’ education not significantly influence the level of financial literacy. It

is important for the parents to teach their child more about financial practices so that they will have better financial literacy.

Keywords: Childhood Consumer Experience; Family Background; Financial Literacy; Financial Socialization; Parents’ Education

* Corresponding author. Tel.: +62-852-184-790-06.




Not statistically significant, what’s next?

An Implementation of Fuzzy Clustering In Assessing the Impact of

Foreign Investors’ Presence on Stock Performance

Aurelius Aarona*, Sudarso Kaderi Wiryonob, Deddy P. Koesrindartotoc

a,b,cSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung, 40132, Indonesia

Abstract

Extracting all 525,501,374-individual transactions in Indonesia Stock Exchange (IDX) during 2011–2016, this study attempts to

investigate whether trading activities performed by foreign investors bring more harm or benefit to the local stock performance. To

do so, we first employ traditional cluster analysis to group all stocks listed on IDX based on their history of trade before further

using the clustering result to perform regression analysis. Unfortunately, as we fail to document the significant relationship between

foreign investors’ presence and stock performance using the K-means algorithm, we adopt an artificial intelligence technique called

the fuzzy C-means algorithm. The main difference between those two algorithms is that the outcome of the latter technique is not

simply binary dummy variable like the former technique, but the probability of a stock to fall within each cluster. Consequently,

by using this sophisticated technique, we are able to document a better result and find that albeit the presence of foreign investors

on a local stock is significantly lowering its performance, its volatility becomes more stable. Our findings are robust to several

robustness tests. Finally, to the best of our knowledge, this study is the first to utilize the fuzzy C-means algorithm in the market

microstructure field.

Keywords: Stock Market; Market Microstructure; Foreign Investors; Artificial Intelligence; Fuzzy Clustering; Big Data Analytics

* Corresponding author. Tel.: +62-8-787-095-9727




The Effect of Chargeback Components and Transaction Cost in

Capital Budgeting Development of Information Technology

Projects (Case Study of PT Bank Mandiri, Tbk.)

Rully Feranataa*, Zalmi Zubirb

aMaster of Management Faculty of Economics and Business Universitas Indonesia, Jl Salemba Raya No.4 Jakarta 10430, Indonesia

Abstract

World economic conditions over the past few years have been marked by uneven growth in some countries, including ASEAN

member countries. The recovery of the world economy is still categorized as weak followed by the slow economic growth of

developed countries. Interesting facts need to be mitigate by market, especially banking. Banking in Indonesia is still considered

less efficient, this can be seen from the ratio of net interest margin (Net Interest Margin) and operating expenses to operating income

ratio (BOPO). The purpose of this study is to analyze the impact chargeback variables and transaction costs that may affect the

realization of banking IT projects in Indonesia. This study will take a case in one of the Indonesian state-owned companies, namely

PT Bank Mandiri. In the simulation test will apply two variables: chargeback and transaction cost variable in planning of investment

budget of IT project. The results of this study prove significant influence in the use of chargeback and transaction cost variables in

the preparation of capital budgeting, however Monte Carlo and sensitivity analysis is used to provide more in-depth analysis of the

parameters and probabilities affecting investment projects, so that it can be used in assist decision-making by management.

Keywords: Capital Budgeting; Chargeback; Transaction Cost; Activity Based Costing; Discounted Cash Flow; Banking Industry

* Corresponding author. Tel.: +62-21 31935080; fax: +62-21 3925339.




Which Is The Better Valuation Model and What Factors Drive The

Error? Case of Indonesian Capital Market

Pajar Huzaifaha*, Yunieta Anny Nainggolanb, Yoshiyuki Matsuurac

a,bSchool of Business Management, Institut Teknologi Bandung cYamaguchi University Management of Technology

Abstract

Valuation holds a crucial role in the field of academic and financial practice. There are various valuation models to determine the

estimated value of an asset (in this study: stock), commonly using relative valuation or intrinsic valuation. The difference between

the estimated value and the actual market price is called valuation error and it is impossible to retrieve a valuation with 100%

accuracy compared to market price. This study aims to see which valuation models that perform better in generating low valuation

errors and what factors that drive the valuation error. Calculation of the valuation error is performed on some of the relative

valuation models and intrinsic value models. The results are: for relative valuation, using P/E multiples is better followed by P/B

then EV/EBITDA; and for intrinsic valuation, use of RIVM is better followed by FCFE, FCFF then DDM. Panel data regression

is performed in determining which factors affect the valuation error on P/E, EV/EBITDA, and P/B multiples. On P/E multiples

valuation, market-to-book ratio, volatility, and share turnover variables significantly influence the valuation error. For

EV/EBITDA, firm size and transaction value have significant effect and for P/B, market-to-book ratio and transaction value

significantly influence the valuation error.

Keywords: Valuation; Valuation Error; Intrinsic Valuation; Relative Valuation; Panel Data Regression; Capital Market





What Factors that Influence Investor towards Peer-to-Peer Lending?

Survey of Graduate Students in Indonesia

Ramadhanoraa*, Yunieta Anny Nainggolanb


Abstract

The problem of the development financing gap and the uneven distribution of financing services are still faced in Indonesia. There

are a lot of Small and Medium Enterprises (SMEs) in Indonesia that have not been reached by the Bank. The presence of Peer-to-

Peer Lending in Indonesia, as an online lending borrowing service, is expected to support the government's program to make SME

financing services and other financing needs in Indonesia more equitable. Related to the development of this industry in the future,

funding is required from the lenders, therefore effort to attract new investors to invest on P2P Lending platform is needed. The

effort is to know what factors are important determinants of an investor/prospective investors decision to be willing to invest on

this platform. The method used in this study is a quantitative method (questionnaire) addressed to MBA ITB students. Data

processing using regression analysis with binary dependent variable (logistic regression). Based on survey results and data analysis

showed that from 14 variables tested, there are 7 significant variables that affect the willingness of the lender to lend. These 7

variables are safety protection, loan amount, verified document, accumulated transactions & repayment history, supplementary

information, perceived risk, and transaction fee.

Keywords: Peer-to-Peer Lending, Logistic Regression, Safety Protection, Loan Amount, Verified Document, Accumulated Transactions &

Repayment History, Supplementary Information, Perceived Risk, and Transaction Fee.





Stock Valuation PT Astra Agro Lestari, Tbk - Impact of CPO Price

Volatility

Denies Chrisstevena*, Taufik Faturohmanb

a,bSchool of Business and Management ITB

Abstract

PT Astra Agro Lestari, Tbk (AALI) is one of Indonesian palm oil company and is listed company in IDX. Performance of AALI’s

stock price is very influenced by CPO price. It is proved by last research of Setyo, T.W. in 2005. Based on AALI’s historical data

from 2014 to 2017, average growth of AALI’s stock price declined -12% but their average growth of revenue still increased with

10%. If AALI’s sales is compared by average CPO price of AALI’s, average CPO price of AALI has average growth with 4%

from 2014 to 2017. Average sales CPO price of AALI in 2017 (Rp 8,271,-/kg) is almost close in 2014( Rp 8,282,-/kg). Root cause

analysis is done to know others factor that impact AALI’s stock valuation. In absolute valuation model will show fair value of

AALI stock price at the end of 2017. Valuation model is calculated by DCF method. And then, sensitivity analysis is done on

AALI’s intrinsic value. AALI’s stock price was Rp Rp 15.166,- per share and undervalued in the end of 2017. Based on CFA

threshold, AALI’s stock price had potential upside with 15.33% so investor should buy AALI’ stock price in the end of 2017.

Keywords: AALI; CPO price; DCF Method; Sensitivity Analysis; Valuation





Finding Proper Peer-to-Peer Lending Student Loan Scheme for

College Students In Indonesia

Anindiya Asri Asyifaa, Deddy Priatmodjo Koesrindartotob*

a,bInstitut Teknologi Bandung, Jl. Ganesha no. 10 Lebak Siliwangi, Bandung 40132, Indonesia

Abstract

The education cost is keep increasing in each year. However, the scholarship is limited so not every students can get it. Therefore,

there is a need for new alternative method for financing the education cost. Lately, on March 2018, Joko Widodo has challenged

the bank to provide student loan as an alternative method of financing for the students. As the development of financial technology,

peer-to-peer lending method seems to be one of the scheme that can be used to offer student loan itself. Referring to that condition,

this research try to find proper peer-to-peer lending student loan scheme for college student in Indonesia. Secondary data from

relevent journal and observation in peer-to-peer lending student loan website was done to give the reference about student loan

scheme that has been available. Survey was conducted to get the preference of college students in Indonesia towards student loan

scheme. The finding is many of students have an intention to use student loan. However, they do not knowing yet about peer-to-

peer lending method. The students are preferred to use student loan that has an ease administration and document requirement, low

interest rate and charge, and it was provided by a good-reputation parties. At the end, one student scheme has been proposed based

on the preference of the students. However, there is a need to consider the lender’s preference for future research.

Keywords: Student Loan; Peer-To-Peer Lending; Scheme; Financial Technology

* Corresponding author. Tel.:+62813-8068-8854.




Determinants of Capital Structure: Evidence from Indonesia’s

Listed Firms

Feby Naomi Margareth Pasaribua*, Athanasios Andrikopoulosb

a School of Business and Management, Institut Teknologi Bandung, Jalan Ganesha no.10, Coblong, Kota Bandung 40132, Indonesia bUniversity of Hull, Cottingham Road, Hull HU6 7RX, United Kingdom

Abstract

Defining ideal composition of capital structure is critical to companies in order to maximize firm’s value. This study aims to analyze

the determinants of capital structure of Indonesia’s publicly listed firms registered in LQ-45 index. During the period of 2013-

2017, the influence of determinants towards capital structure is being investigated using multiple regression model. The sample

used in this study is selected through purposive sampling and thus obtained 32 companies. According to literature, this study

analyzed nine dependent variables which are profitability, firm size, effective tax rate, asset tangibility, risk, growth opportunities,

liquidity, non-debt tax shield, and short-term debt to total asset in relation with independent variable of capital structure measured

by Debt to Equity Ratio (DER). This study suggests that profitability, asset tangibility, liquidity, and short term debt to total asset

have significant influence to capital structure. Profitability and liquidity indicate negative significant influence towards capital

structure which support pecking order theory. Asset tangibility has negative significant influence towards capital structure in

accordance with literature. On the other hand, positive significant relationship between short term debt to total asset and leverage

is aligned with tradeoff theory. While, firm size, effective tax rate, risk, growth opportunities, and non-debt tax shield do not have

statistically significant influence towards capital structure.

Keywords: Determinants; Capital Structure; Public Listed; Indonesia

* Corresponding author. Tel.: +44 7950 639106.





Revaluation of Strategic Alliance in Insurance Sector

(Case Study at PT Penyedia Jasa Indonesia)

Mega Putria*, Taufik Faturohmanb


Abstract

Alliancing with PT Okta Insurance* that provides life insurance and micro insurance products, since May 2017, PT Penyedia Jasa

Indonesia* has been a referral partner that provides space and market crowd to help promote insurance products. However, the

strategic business unit (SBU) formed, hasn’t generated profit in 2017 because the SBU was only operated for 10%. The total

number of active providing assurance consultant (PAC) was 520 personnel. In order to find out whether the SBU with an initial

investment of IDR 425.000.000 will be acceptable or not to continue, a re-evaluation was needed. The results of the financial

projection analysis were acceptable, where the net present value (NPV) was IDR 2.564.481.280; the payback period (PBP) was

3,60 years; the internal rate of return (IRR) was 30,71%, more than the weighted-average cost of capital or WACC (13,60%); and

the profitability index (PI) was 6,03. The assumption that affected the NPV and IRR results the most was the PAC growth of life

insurance that applied for the growth of the total number of active PAC for the regular insurance product. Considering the

fluctuations of the assumptions, it would be better for PT Penyedia Jasa Indonesia to extend the 2-year-contract.

Keywords: Re-Evaluation; Life Insurance; Micro Insurance; Sensitivity Analysis; Monte Carlo Simulation





Defining Proper Alternative Crowdfunding Design for Startups in

Indonesia: Lesson Learnt from America and Middle East Countries

Nisa Khaira Lusfiᵅ and Deddy Priatmodjo Koesrindartotoᵇ*

a,bSchool of Business and Management, Institute Technology Bandung, Bandung City, West Java, Indonesia

Abstract

In this new age, startup is quite promising business in most of every country, where recently the amount of young businessmen is

starting to take a part out in this area. Indonesia is in the top five of the countries with the most startups outstanding in worldwide.

However, generally the early-stage firms struggle with the financial development overcoming, even where the late-stage firms are

using trade credit as a substitute formal financing. So that, this paper aims to find the proper and suitable alternative financing

crowdfunding platform for startup in Indonesia. This research paper used online survey that addressed to 101 startup’s owners to

find the preferences in order to find their business through crowdfunding. Furthermore, the comparative analysis approach is used

to find the proper alternative financing crowdfunding design for startup in Indonesia by comparing the leading crowdfunding

schemes in America and Middle East’s existing platforms and also the current situation of alternative financing activities in

Indonesia including the Venture Capital and Crowdfunding situations. This research suggests that Reward-based crowdfunding is

currently proper for startup in Indonesia with several adjustments needed and should be considered for the developer of local

crowdfunding platforms.

Keywords: Crowdfunding; Indonesia; Startup

* Corresponding author. Tel.:(022) 2531953.




Exploring the Linkages between Financial Inclusion and Economic

Growth in Emerging Countries

Milan Malinda Mardiyyaha*, Sylviana Maya Damayantib

a,b,Institut Teknologi Bandung, Ganesha 10, Bandung, 40132, Indonesia

Abstract

The post-crisis in 2008 leaving a major concern on financial inclusion matter, especially on the nations outside developed country

that classified in the bottom of pyramid, which is consists of people with low income, families that living in rural and isolated

places, people with disability, workers without valid identity document, and negligible communities, most of them are unbanked

and the rate is very high. This study is exploring the relationship between financial inclusion and economic growth that defined by

GDP in 11 countries in emerging market from 2007-2016. By figuring out the connection between financial inclusion and economic

growth, it is expected to raise efficiency in economics, decreasing the inequality and low-income pitfall, so that the wellbeing of

nations would improve. Based on panel VECM result, the long-run relationship is exists between financial inclusion and economic

growth. The IFRs result that obtained from panel VECM proposes that financial inclusion predominantly positively affecting the

economic growth of emerging countries.

Keywords: Financial Inclusion; Economic Growth; Dynamic Panel Estimation; Panel VECM




The Influence of Bank Spesific and Macroeconomic Variable on

Non-Performing Loan (Case Study: 19 Commercial Banks in

Indonesia 2008-2017)

Lazuardi Yusril Ihzaa*, Achmad Herlanto Anggonob

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung 40132, Indonesia

Abstract

Financial sector stability is considered as one of the factors that form the economic condition in a country and the commercial bank

is considered as a very dominant industry in financial institution. The banking industry comes with various risks, one of the risks

that banks need to bear is credit risk. credit risk is considered as the major risk for the banks and one of main indicator of credit

risk is NPL. A slow handling of NPL may cause an economic slowdown and bank’s failures, This study examine the determinants

of non-performing loan of 19 commercial banking categorized as BUBA 3 and BUBA 4 from period 2008Q1 to 2017Q4. Panel

Data Regression analysis is conducted in this study. This stuidy uses Fixed Effect Model as regression method. The findings result

show that LLPTL, OEOI, NIM, and GDP are significantly affect non-performing loan ratio with positive relationship. While size

lead to decrease in non performing loan ratio. LDR shows unsignificant to non-performing loan ratio.

Keywords: Credit Risk; Bank; Non-Performing Loan; Commercial Banking; Panel Data Analysis





Risk Management of Domestic Remittance Business

(Case Study: Karawang Post Office)

Aulia Nazala Ramadhania*, Erman Sumiratb

a,bInstitut Teknologi Bandung, Jalan Ganesha No. 10, Bandung 40132, Indonesia

Abstract

PT. Post Indonesia provide money transfer service business. This business is referred as remittance. Some problem and uncertainty

from internal and external can occur in this business. So that, the research was done to know, analyze, and mitigate the possible

risks of domestic remittance business. Karawang post office is used as a sample to assess the risk. To identify the risk was used

some methods such as: SWOT analysis, reference from other research, observation, interview, and brainstorming. The analysis

used to measure the risk is Analytical Hierarchy Process (AHP) with expert choice software. The result of analysis shows that there

are 6 type of risk that probably happened and operational risk is the highest risk with the eigenvalue of 0.299.

Keyword: Analytical Hierarchy Process (AHP); Domestic Remittance; Risk Management




The Determinant of Return on Asset and Return on Equity Using

Bank Specific and Macroeconomic Factor of 19 Commercial Banks

Period 2007-2018

Theresia Rosa Imanuellaa*, Achmad Herlantob

a,bSchool of Business and Management

Abstract

Main pillar of financial system especially in Indonesia is bank institutions. For the past 10 years banks maintain good portfolio as

it has increasing trend line of total asset and liquidity. However, better quality and increasing growth of banks asset and liquidity

do not follow by increase in profit which instead show decreasing trend line. Thus, the research regarding important factor of bank

performance is important to help finding suitable strategy for Indonesian banking. The research determine factor affecting

Indonesian bank performance proxy by bank profit (ROA) and return on net worth (ROE). Data gathered for the study is statistical

data of 19 banks listed in BACB3 and BACB4 for period 2008 to 2017 quarterly. The analysis employs regression method with

random effect method.

The result shows that NIM, and CAR have positive significant relation with ROA Model, while LNGDP and NPL have negative

significant relation. Second model is proxy by ROE which result show that NIM, EQM, and CAR have positive significant relation

with ROE Model, while LNGDP and NPL has negative significant relation. The findings of the study are profitability is strongly

affected by net interest margin which show that spread based income is mainly contributing to increase in profit. Nonperforming

loans is the second strongest factor affecting profitability as good asset quality show good loans portfolio to rise asset generating

income thus increase profitability.

Keywords: Profitability; Return on Asset; Return on Equity; Bank Specific; Macroeconomic





Influence of Fathers Attribute to the Financial Literacy of their

Children

James Christopher Santosoa*, Ahmad Danu Prasetyob

a,bSchool of Business and Management ITB, Jl. Ganesha no. 10, Bandung 40132, Indonesia

Abstract

There are some father’s attributes that might influence his child’s Financial Literacy, among others Father-Child Age Gap, Father’s

Income Level, Father’s Education Level, Father’s Job Type. Financial Education Course also becomes the independent variable as

another factor that might influence the Financial Literacy. This research helps proving which factor is more significantly influencing

the children’s Financial Literacy, between the father’s attributes and financial education course. As to collect data, a questionnaire

survey is conducted to 204 respondents of university students in four universities in northern Bandung area. The questionnaire

contains demographic questions of the respondent’s father and the question asking financial education course that has been taken

by the respondent, as well as a set of questions for measuring the respondent’s financial literacy level. After the data has been

collected, a multiple linear regression is conducted to analyze the data. The result shows that Father’s Income Level and the child’s

Financial Education Course are significantly influencing the child’s Financial Literacy, with Financial Education Course that has

the strongest significance. Thus, the most determinant factors to the Financial Literacy are Financial Education Course and Father’s

Income Level.

Keywords: Financial Literacy; Age Gap; Income Level; Education Level; Job Type; Financial Education; Multiple Linear Regression




Maqasid Shariah Index, Banking Risk and Performance Cases in

Indonesian Islamic Banks

Sutrisnoa*, Agus Widarjonob a,bUniversitas Islam Indonesia

Abstract

In the operation, Islamic banking is assessed not only based on the banking risk management but also based on the maqasid sharia.

The purpose of this study is to examine the influence of maqasid sharia and banking risk on the performance of Islamic banks. The

performance of Islamic banks is measured by return on assets (ROA), maqasid sharia proxied by maqasid sharia index (MI),

musharaka financing (MUS) and mudharaba financing (MUD), while banking risk is measured by capital adequacy ratio (CAR),

financing to deposit ratio (FDR), non performing financing (NPF), and operating expense to operating income ratio (OEI). The

population in this study are all Islamic commercial banks operating in Indonesia as many as 13 banks. Because the population is a

little realistic, all populations are taken as samples. The results showed that the MI did not significantly affect the performance of

Islamic banks, while MUS has a significant and positive impact on ROA and MUD have a significant but negative impact on ROA.

NPF and OEI have a significant and negative effect on the performance. But CAR and FDR have no significant effect on the

performance of islamic banks.

Keywords: Maqasid Sharia Index; Musharaka; Mudharaba; Non Performing Financing; Financing To Deposit Ratio





The Determinant of Indonesian Investors Towards Real Estate

Investment Trust

Ahmeidy Yusyaa*, Yunieta Anny Nainggolanb

a,bSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha No.10, Bandung 40132, Indonesia

Abstract

REIT is a product which was created for the investors to have some real estate assets and from the profit of the asset, the investor

would get revenue. REITs introduced to public in 1960 when public law 86-779 which called the Cigar Excise Tax Extension is

signed by President Dwight D. Eisenhower in United States which give opportunity to invest in real estate which produce income

for the investors. In Indonesia PT. Ciptadana Asset Management become the pioneer to launch REITs in 2012. After 6 years, REITs

product remain unchanged, PT. Ciptadana is the only one who have REITs in their product line up.While being a popular investment

product in U.S, REITs are not well known among Indonesian investors. Knowing Indonesian investor preferences in investment

and product, also their investment literacy, the expected finding of this research is understanding the variables that may affect the

buying decision of REITs in Indoensia.

Keywords: REITs; Investment Literacy; Investment Behaviour; Investment Preferences




Do Sin Companies Purify Their Prohibited Business Through

Corporate Social Responsibility?

Jane Lukmana, Yunieta Anny Nainggolanb*

a,bSchool of Business and Management (SBM) ITB, Jalan Ganesha 10, Bandung 40132, Indonesia

Abstract

As investors nowadays are concerned against social issues, Corporate Social Responsibility (CSR) has been implemented as one

of corporate business activities. Nevertheless, previous studies have shown divergent result regarding its benefits. By the fact that

Indonesia is the first nation in the world that makes CSR mandatory and regulated in law, this debate is getting more interesting to

be investigated. This study measures CSR by analysing social media utilization, specifically Facebook. In total, 9,283 Facebook

posts from 25 ethical stocks listed in SRI-KEHATI Index and 6 sin stocks categorized as “Triumvirate of Sin” (alcohol, tobacco,

and gaming industries) are analysed. Event study is utilized to examine abnormal stock return and multiple regression is conducted

to check the connection between CSR, corporate image, and financial performance. From event study, the outcome shows that CSR

publication on Facebook has positive impacts towards firm’s financial performance, particularly among sin industries. While from

the multiple regression, CSR has positive impacts on corporate image for both industries. However, CSR has insignificant impact

towards ethical industries’ financial performance, and negatively affecting sin industries’. Lastly, corporate image has positive

impacts on ethical industries’ financial performance, but there is no statistically significant effect taking place against sin industries.

* Corresponding author. Tel.: (022) 2531923; fax: (022) 2504249.




Psychometric Credit Scoring in Indonesia Microfinance Industry: A

Case Study in PT Amartha Mikro Fintek

Hartarti Rabeccaa, Novan Dwi Atmajab, Shahnaz Safitric*

a,b,cData Science PT Amartha Mikro Fintek, Jl. Kemang Selatan VIII No. 18, South Jakarta 12730, Indonesia

Abstract

Small and medium enterprises (SMEs) play a substantial role in Indonesia economic growth. To support their business, financial

technology company serves an easier access for SMEs to get financial support. Using peer-to-peer concept of lending, a credit

scoring model is necessary to assess the risk of lending to SMEs with no assured documents. Previous research found that the

ability to repay the loan could be hint through the personality of entrepreneur, but it is debatable on how to portray this trait.

Therefore, this paper aims to investigate the use of psychometric testing as additional component is credit scoring system, in

contrast to the standard model of demographic. In addition, we also highlight the background influence on administration time in

applying the testing. From the case study in Indonesia leading financial technology company, PT. Amartha Mikro Fintek, we found

that a better predictive ability of credit risk is gained by combining psychometric test and demographic variables in credit scoring

model. We also found that the implementation of psychometric testing is able in less than five minutes under a standard procedure

of psychological testing. There are several background factors found to influence the psychometric testing service time coming

from borrowers and company officers.

Keywords: Credit Scoring Model; Psychometric Credit Scoring; Demographic Credit Scoring; Psychometric Testing Service Time





Analysis of Government Regulation and Policies towards Coffee

Farmers’ Problems in West Java: Case in Coffee’s Farmers in the

Regency of Garut, West Java

Mustika Sufiati Purwanegaraa, Widhyawan Prawiraatmadjab, Nurrani Kusumawatic*,

Sarah Hovia Jannatunnisad

a,b,c,dBandung Institute of Technology – School of Business and Management, jl. Ganesa 10, Bandung, 40132, Indonesia

Abstract

The Indonesia national consumption of coffee has been growing but still faces many problems. The government regulations and

policies surely have positive goal to help the growth of agriculture industry generally and coffee industry. This research analyses

the synchronization of government regulations and policies from the national, provincial and local with the synergic level of

regulation and policies decided by the related Indonesian Ministers in overcoming the constraints faced by coffee’s farmers analyse

the regulation impact using database of Indonesian regulation of Ministry of Plantation and the related ministries. This research

also uses the Regulation Impact Analysis, is a tool that uses in evaluating policy, program and regulation. The findings say that the

regulation, especially local regulation, mostly made without considering the farmer’s and coffee business stakeholder’s problem.

The recommendation for program/regulation is to adjust the regulatory and budgeting matrix framework into the same framework.

National regulations need to define the transparency possibilities in the bureaucracy of the regulation and its derivation in the

province and local level. In Province level need to add new program to solve several problems that not solve by specific existed

regulation. In Local Level, generally need to add new regulation to answer specific problem, and some regulation also needs to be

evaluated.

Keywords: Regulation and policy, Agribusiness, Coffee Industry, Coffee’s Farmer

* Corresponding author. Tel.: +62 8112211664;




How ASEAN Economic Community (AEC) Progress From Equity

Market Correlation

Ossi Ferli*

Indonesia Banking School, Jakarta, 12730, Indonesia

Abstract

This research aims to analyze the dynamic correlation by using stock prices daily data of 6 ASEAN equity markets during the

period of 2007 until 2017 and then try to analysis the interdependence between markets. Empirical research using a Dynamic

Conditional Correlation shows that there is a strong correlation in the countries of Indonesia, Malaysia, and Singapore; While

correlation is still weak for Viet Nam. The study results also shows from AR (1) and GARCH (1,1) model that the country of

Indonesia, Malaysia, the Philippines and Viet Nam have return period t equations is influenced significantly by return lag period

before. It can be seen that all the countries of ASEAN 6 have variance period t equations is influenced significantly by the variance

to previous period lag and lag error previous period lag. This is consistent with the time-varrying volatility which indicates the

persistence of very high volatility of stock return. The study result also shows that the interdependence between ASEAN 6 stock

market seems still in high volatility, and progress of correlation between stock market did not have any significant leap as expected

from the ASEAN Economic Community.

Keywords: Dynamic Correlation; Stock Market; AEC





Dividend Preference: A Survey of Undergraduate Students

Febianti Hersana*, Yunieta Anny Nainggolanb

a,b Institut Teknologi Bandung, Jl. Ganesha No.10, 40132, Bandung

Abstract

Dividend preference actually presents in capital market. Although there are many dividend theories try to describe the dividend

preference but, there are still some personal factors which not explained by these theories. Furthermore, this research will analyze

the personal factors affecting dividend preference. This research conduct a survey of undergraduate students in SBM ITB. The

students as representative of young investors in Indonesia, since some of the students have started investing or expected to have

investment in future. With 105 respondents, the data gathered is processed using multiple linear regression and logistic regression.

Dividend preferences will be as dependent variable and there are three main independent variables examined, demographic profile,

investment behavior, and financial education. As the result, demographic profiles such as investment experience and income are

significantly affect dividend preference. Next, investment risk is not a significant factor affecting dividend preference. Furthermore,

financial education, especially financial literacy also significantly affects dividend preference. At the end, this research hopefully

can contribute to solve the dividend controversy and help firms to determine dividend policy.

Keywords: Behavioral Finance; Dividend Preference; Demographic Factor; Investment Risk Behavior; Financial Education




The Effects of Foreign Investors towards Liquidity of Stock Listed

In Emerging Stock Market: Evidence from Indonesia LQ45 Indexs

Andre Agasi Danuajia*, Ahmad Danu Prasetyob

a,bJalan Ganeca 10 Bandung, Indonesia

Abstract

The long story of stock market in Indonesia started from 1977 by the operationalization of Jakarta Stock Market until now become

Indonesia Stock Market (IDX). As one of the emerging market, the existence of the capital market in Indonesia, especially stock

market, is not only important to finance the growth of companies but also to provide economic stability in Indonesia (Rosul, 2002).

Nowadays, emerging markets are seems becoming more integrated into the global capital market (Bekaert & Harvey , 1997) with

several characteristics which differ from a developed market. Emerging stock market known to be more volatile and less liquid

(Peranginangin et al., 2016) and has limited availability of high quality and large capitalization stocks (Kohers et al, 2013).

Hale (2012) told that emerging market gave many the importance in the world’s economy, and it has grown dramatically in the last

25 years. In other hands, attractive prospects in these markets have renewed the interest of global investors (Bekaert & Harvey,

1997). The existence of the foreign investors believed give effects to the emerging stock market but still debatable among many

researchers.

Therefore, the objective of this study is to understand the effects of foreign ownership on the liquidity of Indonesian companies

stock listed in IDX. This study used stocks indexed by LQ45 among the period from March 2015 until February 2018. This study

used secondary data from Indonesian Stock Exchange (IDX) and Indonesian Central Securities Depository (KSEI). While to

analysis those effect, author employed the panel regression model which determined by the Hausman test to determine either using

fixed effect or random effect model.

The result show that there is no evidence that show foreign ownership affect to liquidity of stocks indexed in LQ45.

Keywords: Foreign ownership, Foreign Investor; Stock liquidity; LQ45; Panel regression; Emerging stock market




Investigating Effect of Appointing Board of Commissioner Member

with Military/Police Background on Firm Value and Performance

(Empirical Investigation on Indonesia Listed Coal Mining Company

Year 2006 – 2016)

Gian Rifa Wahyudia*, Mandra Lazuardi Kitrib


Abstract

Minister of BUMN, Rini Soemarno, stated that people with military/police background are prioritized to be commissioner in

business sectors that has high conflict potential, such as coal mining sector. Their existence could be a solution for social issue such

as land acquisition and thuggery. Reasons behind the strategy are related to cost efficiency, which furtherly affects firm performance

and firm value; since firm value is the main objective of board of commissioner. Since there are researches state that return on

equity (ROE) has positive and significant effect on firm value, and ROE could explain overall key performances of the firm based

on DuPont Identity, this research aims to investigate the effect of appointing commissioner with military/police background on

firm value and performance, how several key performances affect firm value before and after the appointment, and what happens

after selected coal mining companies appoint the commissioner with military/police background strategy.

Firm value is measured by Tobin’s Q and firm performances are measured with net profit margin (NPM), total assets turnover

(TATO), and equity multiplier (EM); as those 3 ratios able to explain firm performances based on DuPont Identity. This research

uses purposive sampling on Indonesia public listed coal mining companies in IDX categorized in Jakarta Stock Industrial

Classification (JASICA) with several criteria resulting 4 companies that meet the criteria. Financial data gathered from Indonesia

Stock Exchange (IDX) and Indonesia Capital Market Directory (ICMD) within 2006 – 2016 period. Three years before and after

the appointment financial data are analyzed by using difference test and panel regression as the main analysis method.

The result of the research: 1) There is no significant difference of Tobin’s Q after the appointment; 2) There are changes of effect

of performances on firm value: before the appointment, no independent variable partial has significant effect on firm value; after

the appointment, NPM has positive significant effect on firm value. NPM, TATO, and EM simultaneously have positive significant

effect in both before and after the appointment regression model. 4) There is no significant difference on Tobin’s Q after the

appointment is caused by no significant difference found on NPM after the appointment, as the variable is the only independent

variable that has significant effect on Tobin’s Q after the commissioner appointment. Even though there is significant difference

on EM, this variable has no significant effect on firm value after the appointment.

Keywords: Military; Police; Board of Commissioner; Firm Value; Firm Performance; Dupont Identity





Capital Market Investment Guidelines for Less Literate Investor in

Indonesia

Jane Audityaa*, Mandra Lazuardi Kitrib

a,bInstitut Teknologi Bandung, Indonesia

Abstract

Financial literacy is important to accompany todays Indonesia’s development that gives investment opportunities. However, many

Indonesians are still less literate and instead choose the wrong investment. Therefore, less literate investor become the concern

here. Indonesia Financial Services Authority suggest people to invest in non-bank institutions especially in capital market but, there

are no guidelines about what kind of investment is the most convenient for less literate investor.

This study uses AHP method, because there are several capital market investments available in Indonesia, and the decision to select

the “right investment” involves numbers of investment criteria. It determines the most suitable investment, given the importance

of each criteria which data are gathered from experts in the related field.

The result shows that “Easiness to get the initial information” is the most important criteria and the ranking according to its

appropriateness which is Money Market Funds followed by Fixed Income Funds, Stocks, Balanced Funds, Equity Funds, Bonds,

Sukuk, REIT, and ABS. It is expected for those investment professionals to focus on the urgency of less literate investors and do

some development on their products and programs according to the result. Substantially, this study facilitates better investment for

less literate investor.

Keywords: Analytic Hierarchy Process; Investment Guidelines; Capital Market; Financial Literacy; Less Literate Investor




The Determinants Analysis of Credit Using Bank Specific Variables

and Macroeconomic Factors of Commercial Banks in Indonesia

Period 2008-2017

Dinda Risza Riania*, Achmad Herlanto Anggonob

a,bInstitut Teknologi Bandung, Jl. Ganeca No. 10, Bandung 40132, Indonesia

Abstract

Banking sector plays important role in a country’s economic growth as it is considered a money creation. Once banking sector

performs poorly, it will lead to a crisis. As the main bank business is lending money, the profit of a bank is highly depending on

the amount of credit their successfully distributed. On the other hand, Bank Indonesia stated that banks in Indonesia growth of

credit has been decreasing for the past few quarters and it is indeed a big problem faced by banking sector as well as Indonesia.

The purpose of this research is to find between bank specific variables: Non-Performing Loans (NPL), Capital Adequacy Ratio

(CAR) and macroeconomic factors: Foreign Exchange Rate (FXRT), Gross Domestic Product (LNGDP), and Inflation Rate (INFL)

towards Bank Credit (LNCRD) in 19 commercial banks in Indonesia which are classified into BACB 3 & 4 during period of 2008-

2017. The data used are secondary data from IFSA using panel data regression analysis. The results found that NPL and CAR have

negative significant relationship towards LNCRD, meanwhile FXRT, LNGDP, and INFL have positive significant relationship

towards LNCRD.

Keywords: Bank Specific Variables; Credit; Indonesia; Macroeconomic Factors





Economic Feasibility Study of Clay, Dolomite, and Kaptan Factory

of PT XYZ

Nadiah Pristaniaa*, Ahmad Danu Prasetyob

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, 40132, Indonesia,

Abstract

Reflecting to the rapid growth of fertilizer consumption rate in Indonesia, PT XYZ, one of the fertilizer, agrochemical and seeds

distributors private company, intended to boost their income source with the plan to develop a new factory, which will be functioned

to produce several fertilizer commodities that PT XYZ currently distribute from their main producer, which are Clay, Dolomite,

and Kaptan. However, the company need to assess the business’s economic feasibility of this project to get to know whether the

project is worth doing or not for future investment, given that the project potentially incur huge investment and the increased future

lease rate and consignment rate. Throughout the paper, the author would like to analyze the economic feasibility using assessment

tools as Net Present Value, Internal Rate of Return, Payback Period, and Profitability Index. Moreover, the author also conduct the

risk assessment using the Sensitivity Analysis and Monte Carlo Method. The result from this research is the project is economically

feasible and it is suggested to be embarked by PT XYZ with several concerns on its cash management and pricing policy.

Keywords: Economic Feasibility; Fertlizer; Net Present Value; Internal Rate of Return; Payback Period; Profitability Index




HUMAN CAPITAL

AND

ORGANIZATION



The Communication Analysis among Stakeholders in Management

of Children Education by the Poor Scholarship as Human Capital to

Grow Quality Characteristics of Educational Basics

Abubakar Iskandara*,Maria Fitriahb, R.Akhmad Munjinc, Ike Atikah Ratnamulyanid

a,cState Administration Study Program Djuanda University Bogor West Java Indonesia, Tol Road Ciawi No 1 Post Box 35, PIN 16720 b,dCommunication Science Study Program Djuanda University Bogor West Java Indonesia, Tol Road Ciawi No 1 Post Box 35, PIN 16720

Abstract

The economic crisis in 1997-1998 increased poverty to 49.5 million, but in 2005 decreased to 35.10 million, then in 2006 increased

39.05 million. The worst communities were workers, dependent families, small farmers and fishermen, informal sector workers,

low-level civil servants, and who affected by natural disasters. The research design was cross sectional, the research was in Pangkal

Pinang City in January 2016. The data were summarized by interview, observation, documentation and Focus Group Discussion.

Data analyses were Flow Model, Product Moment and Likert Scale. The result of the research shows the correlation between how

to obtain the poor scholarship and the criteria of obtaining the poor scholarship that is very tight which is 0.453. The relation

between the criteria of obtaining the poor scholarship and the determination of the poor scholarship is quite close which is 0.218.

The relationship between the determination of the scholarship for poor students and obtaining the poor scholarship is 0.395. The

correlation between how to get the poor scholarship and the poor scholarship receiver is quite close that is 0.190. The relationship

between the determination of the poor scholarship and the impact of the poor scholarship is quite close that is 0.171. The relationship

between using of the poor scholarship and the poor scholarship receiver is very close that is 0.297. The relation between the poor

receiver and the impact of poor the scholarship is 0.270.

Keywords: Management; Education; Students; Poor; Human; Capital; Characteristics; Quality

* Corresponding author. Tel.: 085237153266296




The Importance of Business Ethics to Ensure the Certainty of Law

in Doing Business Activities in Indonesia

Yoyon Mulyana Darusman

Pamulang University, South Tangerang City, Banten, Indonesia

Abstract

Business activities are the right of the people to do their living and life, in conducting business activities is not as easy as imagined,

in practice there has been a very harsh business competition, where the parties who try their best to have their own strategies to

achieve business success. Each individual human being has its own characteristics, which in its implementation characteristic will

affect human behavior in conducting their business activities. In this case ethics and morals as a general custom and general law

principles which as a universal principle can be used as restrictions in conducting ethical and fair business activities. In this research

using qualitative model with juridical approach and sociological approach. The data used are primary data in the form of interviews

with experts and practitioners as well as secondary data in the form of legislation, references from the doctrine of experts and

additional references from the website. The conclusion of this research, that the effort is the right of society which need to be

limited by ethics and morale in doing its business, the government in order to provide legal certainty has put ethics and morals as

a restriction in the business of society. such as the enactment of Law no. 5 of 1999 concerning Prohibition of Monopolistic Practices

and Unfair Business Competition, Law no. 8 of 1999 on Consumer Protection and other regulations.

Keywords: Business Ethic; Morality; Certainty of Law and Social Justice



Self-Disclosure and Knowledge Sharing: a Theoretical Framework

Diaz Satriavi Yudhistiraa*, Dedy Sushandoyob

a,bMagister of Sains Management – School of Business and Management, Bandung Institute of Technology (ITB) Jalan Ganesha No. 10, Bandung 40132, Indonesia

Abstract

Knowledge sharing is one of important activities for organization as it promote knowledge creation that arguably can lead to

continuous innovation, by which organization can be competitive. Knowledge sharing also important for organizational learning

process. Knowledge sharing can be hampered by any conflicts, which as a result can damage relationship among the members of

organization. Previous studies (e.g. Swift, et al (2013), Whisnant, B., & Khasawneh, O. (2014), Killingsworth, et al (2016)) have

underline the importance of trustful relationship for knowledge sharing. The 2014 Presidential Election and 2017 Jakarta Governor

Election have been hypothesize leading the Indonesia society to becoming polarized. As consequences, in past three years,

Indonesian social network has been crowded by unhealthy political news and debates. Personal political view is broadcasted in the

social media to become public. It is indicated that different personal political view has affected interactions among co-worker in

organization. Because trustful relationship is a critical factor for knowledge sharing activities, the current situation in Indonesia

brings us to have the following research question of this paper: to what extent political self-disclosure in the social media related

to knowledge sharing among co-worker in an organization? This paper seek to propose a theoretical framework can be used as a

foundation for study linking between personal political self-disclosure in social media and its relationship on knowledge sharing

within co-worker in an organization to extend previous research on knowledge sharing study.

Keywords: Knowledge sharing; Knowledge management; Self-disclosure; Social media; Social interactions.




Efforts to Manage Creative People in Startup Company in Indonesia

Hana Shabira Fauziaha*, Donald Crestofel Lantub

a,b School of Business and Management - Institut Teknologi Bandung, Bandung 40132, Indonesia

Abstract

Startup industry is now growing in Indonesia, but only a few aware that many of startup players experienced the failure while

building their business. One of the reason is because of the human capital management issues includes managing creative people

issues. Creative people is the main capital of startup to keep growth. When startup companies could not manage the creative people

effectively, the companies will sooner or later end up filing for bankruptcy. In order to respond this problem, this research is

conducted to explore efforts to manage creative people in startup in Indonesia based on the best practices in startup industry. This

research begin with preliminary study to select the successful startup company. Then, using qualitative data analysis and semi-

structured interview, this research explore the management of organizational context and personal context of their creative people

which developed from Solomon’s research result on relationship between some aspect in each context to the performance of

creative people. Startup companies in Indonesia who are searching for knowledge on how to manage creative people can use these

efforts to manage creative people because it is an insight from 5 successful startup that categorized as the best practices in startup

industry in Indonesia.

Keywords: Creative People; Human Capital; Managing People; Startup; Creativity




Antecedents of Service Sweethearting

Erna Fitriastutia, Badri Munir Sukocob, Fiona Niska Dinda Nadiac*, Yusak Anshorid

a,b,c,dDepartment of Management, Faculty of Economics and Business, Airlangga University, Airlangga Rd. 4 – 6, Surabaya (60286), Indonesia

Abstract

Background: Prospects of service industry sector in Indonesia constantly grow each year. Service employees are important for an

organization’s competitiveness for a number of reasons. Employee behavior is one of the success key for service industry. Service

sweethearting is a new concept of deviance behavior that resulted in considerable loss, but rarely discussed in the prior research.

Purpose: Research question aimed to be answered is what are the factors influence service sweethearting which contribute to control

service sweethearting behavior, so that organizations able to minimize loss. Method: Conclusion is being resulted through responses

gathered from 147 employees of Prime Plaza Hotels&Resorts group. Data analysis in this research using Partial Least Square

(PLS). Result: Finding shows that opportunities to earn additional revenues and deviance of work groups’ norms influence service

sweethearting. Moreover, policies are being formulated in order to minimize service sweethearting behavior, through managing

positive organizational climate, providing training on the rules of irregularities within organization, discussing personal integrity,

and providing proper asessment, rewards, punishment and monitoring.

Keywords: Service Sweethearting; Deviance Behavior; Managing Service Employee.




Exploring Highly Mobile Indonesian Professionals’ Views on Life

Askadhia Khalishah Soemantoroa*, Brian Milsomb

aSchool of Business and Management, Institut Teknologi Bandung, Jalan Ganesha no.10, Coblong, Kota Bandung 40132, Indonesia bUniversity of Hull, Cottingham Road, Hull HU6 7RX, United Kingdom

Abstract

This paper aims to obtain insights about highly mobile Indonesian professionals’ life. These insights take the form of factors and

characters that these professionals represent in their work life. These in turn act as supplements for the overall end result framework.

It is the era of globalization and countries around the world are becoming more and more connected. Past findings have shown how

globalization facilitates companies’ inclination towards pursuing international expansions and linkages. As a result, it enables their

employees to engage and interact with companies in other parts of the world frequently. Through a combination of both past

literature and current information from interviews, data is analysed qualitatively using a template analysis, recognized as thematic

analysis. A coding process is undertaken to obtain themes that will then be compared with existing frameworks to produce

manager’s characteristics and factors. Due to the many past findings related to this research, the result is compared with previous

frameworks. Practical implications include most data obtained is secondary data while primary data is viewed as supplementary

information to relate the theories in practice. This study combines theory on expatriate management, Hofstede cultural dimension,

cross-cultural adjustment frameworks, diversity management and culture-general competencies.

Keywords: Manager; Indonesia; High Mobility; Cross-Cultural; Globalisation; Professionals

* Corresponding author. Tel.: +44 7456 871634





Designing Compensation System to Increase Employee

Performance in Cafe Asix

Dikki Palmina*, Nur Arief Rahmatshyah Putrantob


Abstract

Background: One of the sector in Indonesia’s business industry that has a very high potential is restaurant industry. This growing

industry is the second largest industry to contribute to Indonesia’s GDP. One city in particular, Bandung, which is driven by the

young demographic actively to contribute in innovation and entrepreneurship such as workshops, conferences, fashion, festivals,

and the most it’s culinary. However, the rapid growth in the restaurant industry gives a beneficial for the businesses itself but Cafe

Asix was facing a serious issue which is declining in profit. After conducted a preliminary study to find the cause, it comes up with

the unsatisfying in their compensation system.

Purpose: The purpose of this study is to determine a new design of compensation system that can be appropriately implemented

in Cafe Asix to help overcome the issues and to increase the profit of the business.

Methodology: This study is using causal research to determine the cause of symptom that happened in Cafe Asix. Therefore, this

research utilizes job analysis which consists job description and job specification that have been improved based on related theories

for this case. Competencies that are included in job analysis will be used to calculate salary by using job-based structure and point

method as the calculation process. After that an interview with the owner of Cafe Asix was conducted to validate and ensure that

the aspects are compatible with the company.

Findings: The study resulted in a new design of compensation system that is most suitable for the company. Based on this

recommendation, it is found that there are positions that is overpaid and underpaid. The selected recommendation is the most

suitable with the company’s budget capability, so that the new design of compensation system is expected to increase the profit of

Cafe Asix.

Keywords: Human Resource Management; Compensation; Basic Salary





Developing Mission Model Canvas for Mission-Driven

Organization Case Study Scholarship Program of Indonesia

Endowment Fund for Education (Lembaga Pengelola Dana

Pendidikan)

Thanthowy Syamsuddina*,Dina Dellyanab

a.bInstitut Teknologi Bandung, Jl. Gelap Nyawang No.1, Bandung, 40132, Indonesia

Abstract

Indonesia Endowment Fund for Education commonly known as Lembaga Pengelola Dana Pendidikan (LPDP) is a Public Service

Organization under Indonesia Ministry of Finance designed to provide scholarship and research funding for Indonesia citizens.

LPDP does not have mission model canvas while at the same time LPDP is an organization with more opportunities and challenges

as sovereign wealth fund in education and talent agency in the country. Thus, it is crucial for LPDP to develop proper mission

model canvas to assess their value creation process. The aims of this research are to understand the current mission model and

challenges for LPDP scholarship program then develop the new mission model canvas for the scholarship program towards its

vision and future challenges. The study uses mission model canvas framework with qualitative methodology. The author defines

business issue through an observation in the first place then followed by literature review related to the problem. Then data analysis

of semi-structured interview and benchmarking with other scholarship providers conducted to address the problem. This research

found that the pre-development of mission model canvas of LPDP is underdeveloped thus the new mission model canvas is

proposed to answer the future opportunities and challenges.

Keywords: Business Model; Mission Model; Mission-Driven Organization; Scholarship Provider




Design Performance Management System for Flexible Organization

in Telecommunication Company (TELCO)

Richard Alberto

SBM ITB, Jakarta 12950, Indonesia

Abstract

In era of disruption which new company like startup can defeat big telecommunication company (TELCO). One of reason for this

thing can happen because new company develop and innovate new digital products and services. If we see, organization structure

for new company like start-up, it more collaborative and flexible. TELCOs in order to survive and compete in this era, they need

to change the organizational structure that is still based on the structure-based organization. The flexible organizational structure

will provide acceleration to create new and innovative digital products and services, and can no longer rely on legacy products.

Changes in flexible organizational structure of technology has become a very important thing to be done to win the competition in

the digital era. One of the main aspects of flexible organization is designing performance management system (PMS) that can

motivate employees to be able to provide innovations in digital products and services.

Keywords: Flexible; Organization; Design; Performance; Digital



The Effect of Internal Rivalry and the Presence of Coactions on

Creative Performance

Jovi Sulistiawana*, Nuri Herachwatib, Haniffan D. Baihaqqic

a,b,cDepartment of Management, Universitas Airlangga, Jalan Airlangga 4-6, Surabaya 60286, Indonesia

Abstract

Creativity is an important component for the organization to gain competitive advantage, therefore organization tries to increase

the creative performance of each its members. There are several factors affect the creativity performance, namely social and

contextual factors. In this study discusses how internal rivalry and the presence of coaction may affect creative performance.

This study used laboratory experiment with factorial 2x3 design. The study was conducted on 140 participants which divided into

six stimuli groups. Participants were assigned the same assignment with different stimuli in each group. The stimulus was used in

three conditions of competition level (internal rivalry) which were low, medium and high internal rivalry. Besides, there were two

conditions of the presence of coaction level which were working together (with the presence of coactions) and working

independently (without the presence of coactions). We assess individual creative performance by using the brick test method that

measures the level of originality, fluency, elaboration, and flexibility. The entire creative performance data will be processed using

a two-way ANOVA test to determine the creative performance differences generated from the stimuli that have been given.

The results of this study revealed that there were significant creative performance differences between each rivalry level. Besides,

there were significant creative performance differences between each level of the presence of coactions, and significant creative

performance differences between each combination of stimuli group at internal rivalry level with the presence of coactions. The

findings in this study explain how social and contextual factors influence the creative performance of individuals through the

existence of internal rivalry and the presence of coaction.

Keywords: Internal rivalry; Presence of Coactions; Creative Performance; Experimental Study





Perceived Organizational Career Management, Career Adaptation,

and Career Satisfaction

Hasda Rahma Bellaa, Ida Bagus Gede Adi Permanab, Dewi Ulan Daric*

a,b,cFaculty of Economics and Business, Universitas Airlangga, Jl. Airlangga No. 4 – 6, Surabaya (60286), Indonesia

Abstract

Background: Career satisfaction is the desire of employees in the company, when the company is able to provide a positive career

satisfaction, then employees will feel appreciated. Relating to the development of the company's resource management careers,

career satisfaction makes one of the employees' goals in the company. Purpose: This study aims to determine the effect of perceived

organizational career management on career satisfaction, career adaptation as a moderator variable. In addition, this study also aims

to analyze the role of moderation of career adaptation. Method: The sample used in this research is 106 employees of PT Bank

Pembangunan Daerah Jawa Timur Surabaya. Data analysis in this research using Partial Least Square (PLS) with SmartPLS

program. Result: Based on the analysis result, it can be concluded that there is significant influence on both hypothesis that

perceived organizational career management have positive and significant effect to career satisfaction and career adaptation

moderate the perceived organizational career management relationship to career satisfaction.

Keywords: Perceived Organizational Career Management; Career Adaptation; Career Satisfaction.




Design Corporate University at Kompas Gramedia

Indra Irawana*, Donald Crestofel Lantub

a,bInstitut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

Kompas Gramedia Group is well known as one of media company in national media industry. Kompas Gramedia Group has a

vision of being the largest, best, integrated and scattered company in Southeast Asia through a knowledge-based effort that creates

an educated, enlightened, respectful society of diversity and fair prosperity. Unfortunately Kompas Gramedia Group faces a

declining revenue, especially in its core business line. The striking fact is Kompas Gramedia Group used to produce 900.000

newspapers a day and now in 2017 they only produce 300.000 newspapers a day, and it caused by digitalization era. Despite the

declining revenue, Kompas Gramedia still has an enormous number of employees, more than 20.000. Kompas Gramedia does not

lay-off the employee, and decided to upgrade the employee. Upgrading employee can be done by giving training from training

center. But Kompas Gramedia could not reach all of the employees by using old traditional training center. The limited resource

that Kompas Gramedia has to manage the capability of the employee also becomes another issue. The objective of this research is

to provide a solution for the business issue in Corporate Human Resource Kompas Gramedia related to its project of corporate

university named Kompas Gramedia University. According to Mark Allen (2002), corporate university is an educational entity

that is a strategic tool designed to assist organization in achieving its mission by conducting activities that cultivate individual and

organizational learning, knowledge and wisdom. The framework used to design the corporate university is using corporate

university wheel from Prince and Stewart consists of four processes, knowledge systems and processes, network and partnerships,

people processes, and learning processes. The implementation plan of this research used ten building blocks from Jeann C. Meister

which resulted in the establishment of the vision, governance, funding strategy, products, stakeholders, technology used,

measurement system, and communicate strategy for Kompas Gramedia University.

Keywords: Human Resource Management; Corporate University; Learning Development




Understanding the Role of Employee Engagement on

Organizational Culture within Business School in the UK

Zerrin Astrantiaa*, and Haseeb Shabbirb

aSchool of Business and Management, Institut Teknologi Bandung, l. Ganesha No.10, Bandung, 40132, Indonesia a,bHull University Business School, University of Hull, Cottingham Rd, Hull HU6 7RX, UK

Abstract

Employee engagement defines as emotional commitment to an organization where employees are investing themselves in their role

to organization’s goals. Emphasizing on engaged workforce is crucial since engaged employees are suggested to be a great predictor

for organizational performance. This paper analyzed the key factors affecting employee engagement and how it shapes

organizational culture within business schools in the UK. Through phenomenological approach, the study attempted an interview

and the data analyzed qualitatively with thematic analysis method. A coding method was conducted to obtain themes which then

required to mapping the relationship between conceptual elements based on the data. The results indicated that factors affecting

employee engagement varies from personal aspect, work duties, interpersonal relationship with colleagues, and organization’s

management. Employee engagement has a direct relationship with the organizational culture, which acts as the backbone of a good

working cultures. The findings can be learned by practitioners to increase engagement and reduce negative impact of disengaged

employees. However, further study that focuses on organizational performance will provides more reliable information towards the

effectiveness of employee engagement role in overall organization performance. This study is unique in respect to the

comprehensive results which was transformed the lived experiences of employees.

Keywords: Employee Engagement; Organizational Culture; Human Resource Development; Employee Commitment




Research Report on Corporate Political Action in Indonesia

Yuni Ros Banguna*, Yani Kartika Wulandarib, Yudo Anggoroc

a,b,cSchool of Business and Management, Institut Teknologi Bandung, Bandung, 40132, Indonesia.

Abstract

This report is based on previous research that seeks to find the initiatives and objectives of firms in Indonesia, in order to engage

to Corporate Political Action. This research was conducted using qualitative method by interviewing informants who have profound

knowledge and experiences in this specific topic. We found several Corporate Political Action initiatives that are chosen by firms

in Indonesia. They are proud of their enterprise of local government, commonweal contribution, lobbying and collective lobbying,

money giving or quasi-money giving, financial incentive strategy, information strategy, maintaining good relationship with national

and local leaders, maintaining good relationship with government, direct involvement in politic, and financial contribution. We

also found that the main objectives of the firms while engaging in Corporate Political Action are corporate sustainability and

performance. Furthermore, we also found that some CPAs done by Indonesian firms have positive and negative perception from

the community. Further research should be focused in certain industry in Indonesia so that we know how each industry engage with

the government.

Keywords: Corporate Political Action; CPA; Business-government relationship; Indonesia




Designing the Delegation of Authority Process to Improve

Empowerment Using Diane Tracy Model in BPJS Ketenagakerjaan

Regional Office West Java

Anindhita Chandradinia*, Aurik Gustomob

a,bInstitut Teknologi Bandung, Jalan Ganesha No. 10, Bandung 40132, Indonesia

Abstract

BPJS Ketenagakerjaan Regional Office West Java has high category in employee engagement assessment. Employee engagement

brings up employees’ productivity and contributes significantly to organizational performance (Mercer, 2007). Nevertheless, with

highly engaged employee assessment, the company still cannot achieve their target in membership and financial and perform a

great performance. This research is to find which driver that hinder the process of employee engagement and propose a design that

can improve the process in the company. This research used employee engagement survey, structured interview and focus group

discussion to obtain data. Based on survey, empowerment is the lowest dimension of employee engagement in the company.

Therefore, Diane Tracy Model was used to determine which variable that needs to be improved. It is found that authority is the

possible solution that has a great impact with lowest effort. The delegation of authority process is composed of understanding type

of authority and delegated task, select best person, define clear performance goals, provide training when needed, perform periodic

review, feedback and recognition.

Keywords: Employee Engagement; Empowerment; Authority; Diane Tracy Model.




Nurturing Knowledge Sharing: MRT Jakarta Case

Sapto Ashardiantoa*, Andy Credo Sibueab

a,bPT MRT Jakarta, Wisma Nusantara Jl. MH Thamrin no.59, Jakarta, 10350, Indonesia

Abstract

Knowledge sharing as a subset of knowledge management is expected to be the initial step to create ‘domino effect’ in

implementing the comprehensive aspects of knowledge management framework. In order to start knowledge management

effectively, MRT Jakarta realized that promoting knowledge management initiatives through knowledge sharing culture inside the

organization is fundamental. With the unique characteristic of MRT Jakarta as the first of Metro Railway operator in Indonesia,

knowledge sharing helps in building organization’s competitive advantage through employees acquiring, organizing, reusing, and

transfering experience-based information of new technology, operational knowledge, and best practices in the industry. This paper

explores the journey of knowledge management implementation in MRT Jakarta, starting from knowledge sharing session. The

paper concludes with the benefits of having knowledge sharing first before implementing other knowledge management initiatives.

Keywords: Knowledge Management; Knowledge Sharing; Domino Effect




Basic Salary Recommendation for Warung Nasi Sunda Pakuhaji

Atika Fatka Raihania*, Nur Arief Rahmatsyah Putrantob

a,bSchool of Business and Managemen, Institut Teknologi Bandung, Jl Ganeca no. 10, Bandung 40116, Indonesia

Abstract

Warung Nasi Sunda Pakuhaji is one of the restaurant located in Cimahi, Bandung. Established since 2008, the company has to face

the constant number of profit from 2016. The reason behind this is because the high level of turnover happens in the company. The

level of turnover appear because the employee felt unsatisfied with the the salary system. Therefore, there was a need to improve

the compensation system. The research used competence based approached to define the new salary for the employees. Point

method and salary benchmarking method will be used to meet the requirement of internal equity and external competitiveness. This

research required ten position in calculating the new basic salary. The result of the research is the new salary plan which will

expected to help the company reducing the employee level of turnover.

Keyword: Employee Turnover; Compensation; Point method




Developing Job Analysis in BUMDES Margabakti Persada to

Decrease an Overlapping Job between Members

Alyanissa Noor Alfadhilaa*, Nur Arief Rahmatsyah Putrantob

a,bSchool of Business Management, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

The aim of this research is to reduce the unbalance work that happened in BUMDES Margabakti Persada by creating a job analysis.

Job analysis needed because there is no job description and job specification in all positions in BUMDES Margabakti Persada. The

job analysis will be used as the guideline for members in doing their work. In determining the job description, the researcher used

the primary data from the interview result towards the chairman and used the secondary data such as organization structure and

business process. Meanwhile, to develop the job specification, the researcher used the HRM approach that consists of knowledge

and skills. The new job analysis provides detail information needed by members as a clear explanation about their duties and

responsbilities. Additionally, by conducting the new job analysis, each position will also have its own target in order to finish the

job.

Keywords: Human Resource Management; Job Analysis




Relationship of Performance Appraisal Quality towards Employee

Performance in PT Pertamina Mor III Jakarta Pusat

Annisa Dea Septianaa*, Achmad Fajar Hendarmanb

a,bSchool of Business and Management Institut Teknologi Bandung

Abstract

Performance Appraisal system has been a topic that explored by many researchers. Most of companies in Indonesia are already

apply the appraisal system in its human resource management to control its employee performance in order to bring the result of

performance will arise the company goals. In this research, the author focuses on the real case that happened in PT Pertamina MOR

III. PT Pertamina has implemented performance appraisals to enhance employee performance and PT Pertamina is one of company

in Indonesia that has a high quality of performance. The author tried to explore whether the performance appraisal quality have a

significant relationship with employee performance, in this case is what quality of performance appraisal that have the positive

relationship with employee performance in PT Pertamina MOR III. The results of this research show that the performance appraisal

quality has a significant relation on employee performance, and the quality of appraisal that have positive relationship with

employee performance are Strategic Congruence and Reliability. The results also show that Reliability of Performance Appraisal

system is a quality that has a highest positive relationship with employee performance.

Keywords: : Employee;Performance;Quality;Performance Appraisal





How does governmental institution affect the innovative activities of

MNE?

Liza Aulia

Institute Technology Bandung/ University of Groningen (Double Degree Program)

Abstract

Despite the vast majority of research paper on the succession of the innovative performance in the multinational enterprises, only

a few have mention the effect of government institution on the innovative rate of the business activities. The role of the government

in controlling and stimulating the innovative process of business has been very controversial depending on different countries. By

contrast, many MNE from different industry , have pointed out the undesirable effect of regulation and control on the business

innovation process. This paper will evaluate how government institution effect the innovative activity of MNEs. This is done

through secondary research from many articles and scholars which is used to describe the meaning behind the capability of

government to spark innovation. Moreover, a quantitative approach is also used to combine all findings, which aims to increase the

reliability and the connection between different thoughts on government institution effects on innovation from various countries,

and market economies. The result shows that governmental institutions has an effect on the innovative activity of a business,

depending on two different types of market economies, LME’s and CME’s. Those two types can be the primary way in which firms

coordinate with other actors what moves the focus of firm towards long or short term investments.

Keywords: Institution; MNE; Government; Innovation; Market economies



Learning Theory, Pedagogy, and Gamification: A Further Research

Hendarsyah Aditya Saptaria*, Jann Hidajat T. b, Donald Crestofelc

a,b,cDoctoral of Science Management Program, SBM-ITB, Jalan Ganesha No. 10, Bandung-40132, Indonesia

Abstract

Education at its core is an effort to develop the potential within a human to reach its maximum potential. Looking at the human

quality in Indonesia based on United Nation Development Programme Report (2018), shows that currently Indonesia reach 0.689

Human Development Index (HDI). From this index, education sector shows 12.9 expected years of schooling which mean that in

average Indonesia’s citizen in majority go through education for 12.9 years in their life. Higher HDI index meant higher quality of

human capital in a country, it has been known that human capital had a strong relationship with Gross Domestic Product (GDP) of

a country. To measure relationship of human capital and GDP, ones could measure how much a country invest to the people

education in its country. The purpose of this article is to give an insight for future study that will be done by the researcher about

learning, pedagogy, and gamification. This article found that there are a lot of area in gamification that still needed to be researched,

especially in the area where researcher going to study in the future as the continuation of this article.

Keywords: Learning, Pedagogy, Gamification




Developing Career Resilience of Young Generations

Adi Indrayantoa*, Sigit Wibowob, Titi Nurfitri, Ade Irma Anggraenic

a,b,cFaculty of Economics and Business, Jenderal Soedirman University, HR Boenyamin, Purwokerto, 53122, Indonesia

Abstract

Developing career resilience of employees is essential for all organizations today, especially in building the long-term excellence

of the organization. This caused the occurrence of significant changes in the expectations of generation Y employees particularly

in review from the perspective of self-concept theory of career development, career resilience is formed of two main components,

namely environmental aspects and aspects personal. Environmental aspects related to organizational support while the personal

aspects relating to the person-organizational fit. This research aims to test the impact of organizational support and person-

organization fit toward career resilience on Generation Y employees. The results of this research gives empirical evidence of the

influence of this aspect of the work environment and personal aspects in building career resilience.

Keywords: Career Resilience; Organizational Support; Person-Organizational Fit; Young Generations

* Corresponding author. Tel.: +62 281 637970; fax: 62 281 640268.

E-mail address:[email protected] ; [email protected]



The Antecedents of Reverse Knowledge Transfer in Franchise

Network: the role of Franchisee Autonomy and External

Embeddedness

Yudhi Richarda, Rangga Almahendrab*, Reni Rosaric

a,b,cGadjah Mada University, Special Region of Yogyakarta 55281, Indonesia

Abstract

This study develops a research framework to understand reverse knowledge transfer in franchisee network. This study aims to

examine the effect of franchisee autonomy related to reverse knowledge transfer and to examine the effect of external

embeddedness as the moderator of franchisee autonomy and reverse knowledge transfer. The research data was collected through

direct survey using a prepared questionnaire. We conducted regression analysis from 107 franchisee network in Indonesia. The

result showed that the franchisee autonomy have positive and significantly affect reverse knowledge transfer in franchise. However

we also found that when franchisee is being overly embedded in their external environment, the franchisee autonomy shows

negative relationship with reverse knowledge transfer.

Keywords: Franchisee Autonomy; External Embeddedness; Franchise; Reverse Knowledge Transfer



INDUSTRY AND

TECHNOLOGY



Fostering Competitive Advantages of Creative Industry through

Information Technology Innovation Adoption

Wawan Dhewantoa, Yuliani Dwi Lestarib, Sri Herlianac, Rafiati Kaniad*

a,b,c,dSchool of Business and Management, Ganesha no. 10, Bandung, Indonesia

Abstract

Creative SMEs considerably growing in mostly geographically concentrated within cluster. As implication, growing rate of creative

SMEs increase competition. With the challenge of few resource and less capability to innovate, creative SMEs will be difficult to

sustain competitive advantages. Information technology is currently powerful to facilitate business activities. Combination between

innovation and information technology usage will increase competitive advantages of cluster industry. This study presents

conceptual consideration which depict how firm can do innovation in IT by three influencing relationship (1) behavioral intention

influenced by TOE framework, (2) productivity increased by the intention to use IT (3) collaboration network moderating factor.

In general, this study aim to integrate TAM and TOE framework to achieve IT innovation adoption in firm-level perspective. This

study also contribute two aspects (1) foster external factor of TAM (Technology Acceptence Model) which still less concerned to

influence firm to adopt innovation and (2) foster innovation capability by collaboration network activity and behavioural intention

to used IT.

Keywords: IT Innovation Adoption; Competitive Advantage; TOE; SMEs; Creative Industry




Six Sigma Approach to Fashion Small Medium Enterprise Lead

Time Improvement

Nur Budi Mulyonoa, Rheyna Sinatryab*

a,bSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha no. 10, Bandung 40132, Indonesia

Abstract

Six Sigma was initially from 1990s in manufacturing company for manufacturing and transactional processes. Six Sigma has proven

successful in decreasing lead time, bring up customer satisfaction, and make profit significantly increasing. Commonly, Six Sigma

method was only run by manufacturing in technology companies but now Six Sigma method can be used in manufacturing clothing

company in fashion industry. In Indonesia, fashion small enterprise is currently growing very rapidly. Fashion small medium

enterprise in Indonesia has a strong competitive level. Basically, problem fashion small medium enterprise related to efficiency, on

time of production and delivery, and speed. In order to adjust the competitiveness level, company should elevate their

competitiveness level by avoiding problem that relate to fashion SME. Fashion SME has 2 methods to produce its product with

different quantities, both methods are make-to-stock and make-to-order. One of problem in fashion SME that used make-to-order

method is varied production time. This paper discusses the implementation of lead time improvement in one of fashion SME that

used make-to-order method. To improve lead time, researcher used Six Sigma method by using define, measure, analyze, improve,

and control (DMAIC) to the critical process, bottleneck in business process can be identified and improved.

Keywords: Six Sigma, DMAIC, Fashion Small Medium Enterprise, Make-To-Order, Lead Time Improvement




Risk Analysis of Light Rail Transit Trackwork (A Study of PT.

Wijaya Karya Beton)

Inez Saviraa*, Yuliani Dwi Lestarib

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, 40132, Indonesia

Abstract

PT. Wijaya Karya Beton is an Indonesia-based construction company with precast concrete as the main product. In recent years,

PT. WIKA Beton have been producing other construction products such as PC Poles, PC Piles, Railway Sleepers, Bridge Concrete,

Retaining Wall, Hydro Structure, Buildings and Houses, Marine Structure, and PC Cylinder piles. As one of the contractor for the

project of Light Rail Transit (LRT) track work construction in DKI Jakarta, PT. WIKA Beton have the obligation to ensure failure

or defect in the process will not take place.

This study aims to identify and detect the potential failure or defect in the process of Light Rail Transit track work and give the

most appropriate solution in ensuring the project is running smoothly by analyzing using the Failure Modes and Effect Analysis

(FMEA).

Quantitative and qualitative data from PT. WIKA Beton are showing the possibility of failure in the track work. From the analysis

of the data it yields that several main causes contributes to failures. This study focuses on possible high-risk causes such as

scheduled delay, tax payment differences, possible burning in the process, and fluctuation of material prices. Relevant with the

issues, a solution is using proposed using project management method by using AON model to provide appropriate recommendation

overcoming the issues.

Keywords: Construction Project; Track Work; Light Rail Transit; Failure; Defect; Failure Mode; Effect Analysis





Audit for Effectiveness & Efficiency Principle in Good University

Governance Focused on Alignment between Strategy Business with

IT

Djoko C.U. Lieharyania*, R.V. Hari Ginardib, Rita Ambarwatic

a,bInstitut Teknologi Sepuluh Nopember, Jl. Cokroaminoto No. 12 A, Surabaya and 60264, Indonesia c Universitas Muhammadiyah Sidoarjo, Jl. Mojopahit, Sidoarjo and 61271, Indonesia

Abstract

Business Strategy and governance are key to run the business efficiently and efficiently. Governance in higher education can’t

equated with companies that issue on profit. The purpose of this research is to get the IT Process on the effectiveness & efficiency

principle in GUG also recommendation for improvement from audit result which focus on alignment between business strategy

and IT. This study was conducted based on theoretical exploration in literature review with help from expert who had experience

with COBIT 5. The implication of this research is universities can use the assessment which is conducted to know the level of

effectiveness & efficiency principle based on GUG and the appropriate recommendations to improve the level of effectiveness &

efficiency principle in aligning business strategy with IT. The originality of this research is the combination of COBIT 5 with GUG

which focuses for align of business strategy with IT on effectiveness & efficiency principle, to know the level of the principle at

the university and the recommendation that needs if there is a gap.

Keywords: GUG; COBIT 5; Governance; Business Strategy; IT Governance; IT Audit






Analysis of Cost of Production Geothermal Development and

Impact to the Geothermal Tariff in Sumatra Island

Anggita Dwi Kristinaa*, Yudo Anggorob

aBII Street Pasar Minggu, Jakarta 12520, Indonesia bKomplek Sapta Pesona BB7 Jatiasih Bekasi , Indonesia

Abstract

Indonesia has affluent geothermal resources that can help meeting the country's rising electricity demand and at the same time

increasing the electrification rates. Indonesia's estimated geothermal resource base is considered to be the largest in the world.

According to the data from Renewable Energy and Energy Conservation estimate (2018) that Indonesia has 11,073 MW of

geothermal resources and 17,435 MW reserves. Furthermore, based on the Ministry of Energy and Mineral Resources (EBTKE)

data in 2018, Indonesia Geothermal installed capacity per 2018 is 1,948.5 MW. The utilization of Geothermal is only 11.7% from

the total of Indonesia's geothermal reserves estimate. Ministry Energy and Mineral Resources has raised its targets of Geothermal

electrification to be achieved by 2025 to 7,242.5 MW. This means that in the 8 next years from now the utilization of Geothermal

energy must be strongly encourage to reach 450 percent of current utilization. The geothermal obstacles and challenges can only

be overcome with cooperation from stakeholders, especially from the government official. The government has intensified its

efforts to scale-up and speed-up geothermal power development through several regulations and incetives, however, many

developers perceive these regulations to have been causing Geothermal projects to become commercially unenthusiastic. This

research focuses on what causes the geothermal price to be relatively higher than the government’s national production cost. The

questions that may arise from the implementation are: (1) What are the component of costs of geothermal power development and

production and what are the factors influencing each costs component of geothermal power development? (2) What is the role of

government to minimize the cost of geothermal development? (3) How much is the annual average national electricity generation

costs (BPP) to be economically attractive for Developer to develop geothermal in Sumatra for greenfield area? If the average

national electricity generation costs (BPP) is lower than BPP local regional, there is an option for Business to Business negotiation

mechanism. The modelling approach is to build up the capital and operating costs on a time base and then to compare these with

the expected revenue, which in turn is based on an assumed tariff for the electricity being sold. The tariff can then be adjusted to

generate the required return on developer’s funds to develop geothermal. This paper presemt severals recommendation based on

conducted study for further accelerate Geothermal development in Indonesia.

Keywords: BPP; Regulation; Government; Geothermal Cost; Geothermal Tariff; Sumatra Island




Assessing the Investment Plan and Financing Strategy for PT. XYZ

Nastassja Arinta Kirana Hardjomidjojoa, Mandra Lazuardi Kitri, S. T., MBAb*

a,bSchool of Business and Management, Ganesha 10, Lebak Siliwangi, Coblong, Kota Bandung 40132, Indonesia

Abstract

In 2014, the government arranged One Million Houses program to boost the development of affordable housing. PT. XYZ has

recently got its patent of the design of modular wood to build prefabricated housing as its product. PT. XYZ has to be prepared to

produce their own product massively. Therefore, it is really urgent for the company to have their own plant. The research aims to

help PT. XYZ to determine the feasibility of the investment plan, and define the financing strategy using equity, with the constraints

of 51% of ownership and IDR 1,000,000,000 as the current share-holder investment. According to the result, the investment plan

of PT. XYZ is considered feasible since the feasibility study shows positive result for NPV, IRR, and payback period. Regarding

to financing strategy, the research suggests that the company has 2 options. The first option is to maintain the current share-holder

investment at IDR 1,000,000,000 with the ownership to 40.10% and price per share at IDR 49,156.10. The second option is to

maintain the ownership at 51% level, by increasing the current share-holder investment from IDR 1,000,000,000 to be IDR

2,334,761,615.02 with price per share for IDR 26,777.07.

Keywords: Feasibility; Investment Plan; Financing Strategy; Price per Share; Ownership

* Corresponding author. Tel.: 022-2531923;




Online Flow Experience in Making Reservation at AirBnB: The

Roles of Web Attractiveness, Enjoyment, and Trust

Sony Kusumasondjaja

Airlangga University, Jl. Airlangga 4-6, Surabaya 60286, Indonesia

Abstract

In the last few years, AirBnB has become an alternative platform for consumers who need accommodation services. Whether the

appearance of the AirBnB website can stimulate a state of flow and lead to intention to make reservation are the fundamental

questions to be confirmed in this study. In online environment, extensive studies have found in tourism context that flow is

positively related to consumer exploratory behavior. Based on flow theory, this study examines the antecedents and consequences

of consumer online flow experience in hotel service context. A self-administered survey involving 354 students who have an

experience in traveling on budget was conducted. Results show that online flow experience is affected by web attractiveness and

enjoyment and influences initial trust to the accommodation provider and intention to make reservation on the AirBnB website.

Based on the study’s findings, the article concludes with managerial and research implications.

Keywords: Online Flow; Web Attractiveness; Enjoyment; Trust; Reservation; Airbnb



Developing Seed Stage Start-up Valuation: Digital Business Case

Study

Rizkya Laila Nursyahbania*, Isti Raafaldini Mirzantib

a,bInstitut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

Start-up is a young company under the age of 3 years based on digital that aims to develop viable business models and create

innovative product, service, platform, or process that have very limited histories, small or even have no revenues, dependent on

private equity, and dominated by intangible assets instead of tangible assets. In terms of finding or attracting investors, business

angels, or venture capital, valuating the start-up is needed. However, assessing digital start-ups will slightly different than the

conventional business considering the characteristics of start-up itself. Thus, the valuation on start-ups that have not reached the

profitability level is based on a number of empirical assumptions under considerable uncertainty conditions. There are some

valuation methods for digital start-up emerged such as Berkus Method, Risk Factor Summation Method, Scorecard Method,

Comparable Transactions Method, Book Value Method, Liquidation Value Method, Discounted Cash Flow Method, First Chicago

Method, and Venture Capital Method. Most of the literature described what the methodology is, the provisions on calculating the

valuation but limited only to what factors that being assessed and how much value that the start-up could get. Therefore, the author

made a modification on Berkus and Risk Factor Summation methods in order to generate a better understanding regarding the

methods as well as to simplify the valuation process.

Keywords: Start-Up Valuation; Digital Start-Up; Berkus Method; Risk Factor Summation Method




Investigating business value for Internet of Things initiatives

Tony, Cheng-Kui Huanga*, Chia-Yu Linb

a,bDepartment of Business Administration, National Chung Cheng University, 168, University Rd., Min-Hsiung, Chia-Yi, 62102, Taiwan, ROC

Abstract

Internet of Things (IoT) connect devices or sensors to the Internet for data collection and exchange. These pieces of data provide

rich information not only about production and inventory but also about sales and marketing effects. Nevertheless, studies have

focused more on technical issues or solutions and left the business value of IoT under explored. In order to provide insights

regarding IoT, this study investigates the business value of IoT initiatives. Our findings demonstrate that (1) IoT initiative

announcements can increase business value, (2) the increase is higher when the announcement has information about specific IoT

technologies or when the firm has ongoing IoT projects, and (3) such effect is more pronounced for non-IT firms. Implications are

discussed.

Keywords: Internet Of Things; Market Value; Event Study; Textual Analysis




Supplier Selection in Small Medium Enterprise Using a Factor

Rating Methods Based on Standard Quality Approach: Case Study

of Viage Indonesia Company

Lirih Hartini Utamia*, Desy Anisya Farmaciawatyb

a,bSchool of Business and Management, Bandung Institute of Technology

Abstract

Today many SMEs facing the challenge to keep update continuously, maintain the quality, flexible and reactive to market trends

while being characterized by lack of resources and managerial expertise. Nowadays supplier selection is gradually seen as a

strategic issue in SMEs. Viage Indonesia is one of SMEs running in fashion industry that has problems to selecting the qualified

supplier. The objective of this research is to analyze and determine the selected supplier to increase the quality of Viage Indonesia

Company. The researcher uses the preliminary study to get the criteria for supplier selection. The data collection uses the primary

data which is conducted by spreading the questionnaire using purposive sampling to 81 respondents and do the depth-interview to

a fashion company in order to establish the criteria for selecting the supplier. This research presents the study of Analytic Hierarchy

Process (AHP) methods to measure the weighted of each criterion. Afterward, researcher uses factor rating methods to calculate

the score from interviewing two selected supplier based on performance, experience, and service. The result of this research is the

qualified supplier for Viage Indonesia are SEMSTA supplier with total score 89.82 five points higher than its rival supplier.

Keywords: Supplier Selection; Small Medium Entreprise; Analytic Hierarchy Process (AHP) Method; Factor Rating Method





The Effect of Virtual Reality on Visit Intention using TAM

Framework

Nindy Ekasaputria*, Daniel Tumpal Hamonangan Aruanb

a,bUniversitas Indonesia, Jakarta, Indonesia

Abstract

Virtual Reality is now widely used by companies as a tool for advertising and to communicate with customers. This technology is

also believed that may affect consumer behavior in their purchasing decisions. However, the effectiveness of the VR technology

yet to be explored because the production for VR ads is quite costly. Therefore, this study aims to test the effectiveness of the use

of VR as a marketing medium in tourism. From the consumer side, VR is a new technology that requires adaptation to use it. How

consumers can accept new technologies in the form of VR as a medium that can connect them with a company can be explained

using the Technology Acceptance Model, that how consumers may use the technology based on perceived usefulness, perceived

ease of use, perceived enjoyment, and perceived immersion. In order to estimate the potential of VR, the TAM framework has been

conducted in this study. With the experimental design, this study used 360 video as a stimulus to test the effectiveness of VR use

in tourism marketing. Result indicate how VR technology can influence consumer decisions in determining the destinations through

perceived usefulness, perceived ease of use, perceived enjoyment, and perceived immersion.

Keywords: Virtual Reality, 360 Video, TAM Framework, Tourism Marketing.




Co-defining Bandung as City Tourism and Proposed Improvement

Plan using Service Science Perspective

Destiana Lovitarania*, Manahan Siallaganb, Lidia Mayangsaric

a,b,cSchool of Business and Management, Institute Technology Bandung, Indonesia

Abstract

Due to the tourism becomes main priority of the Indonesia government, the big picture of this segment becomes interesting to be

analysed in order to reveal potential aspect within the city. This study was conducted with main purpose to draw the big picture of

Bandung as a tourist destination in Indonesia and provide the idea of real condition in the field based on the statistical data and

interview. By combining two methodologies, this study tried to describe the positioning of the city amongst other tourist destination

as well as to fill the gap between those under service science perspective by associating it with the concept of city branding.

Statistical data showed that Bandung was being seen as popular city by tourists and citizens and categorised as a city with high

amount of tourist attraction as well. However, according to the result of the interview with local tourism department, city promotion

still became an issue in the development of the city. Therefore, by using service science perspective, the proposed study was

intended to increase city promotion by taking real-time opinion and feedback into consideration. The proposed study revolved

around the actual perception of people about Bandung and its comparison to the vision of the city by providing service platform

that can be used to bridge the relation between opinion and feedback from citizen and visitor, with the process of policy making.

This platform will act as a media to gather information about the perception of people about Bandung in term of its tourism industry,

utilise the data to get a better understanding about the image of Bandung in the eyes of others, and giving suggestion according to

the result in hope that it can become one of considerations for the government to promote city better.

Keywords: Bandung City Tourism; Travel & Tourism; Service Science; Service Platform; Service Innovation; City Branding.





Electronic WOM Effectiveness from Online Social Network

Perspectives

Nuriyah Syakielaa, Rachmadi Agus Trionob*, Helman Arifc

a,b,cDepartment of Management Faculty of Economic and Business Universitas Indonesia,Depok 16424

Abstract

This study analyses the effectiveness of electronic word of mouth (eWOM) information to influence consumer purchase decisions.

We test three online social network constructs, namely tie strength, homophily, and source credibility. The constructs are measured

using questionnaire statements and a multiple regression analysis on a sample size of 516 respondents. We found that tie strength

and homophily influence source credibility, which in turn influences consumer perceptions of eWOM information, thereby adding

to eWOM's effectiveness. Tie strength, homophily, and source credibility also influence consumer perceptions on a website,

influencing the consumers’ adoption of eWOM in their purchase decisions.

Keywords: eWOM; Social Network Framework; Foodtech Review; User-Generated Content Review




On The Rise of Preference toward Made-To-Order Products: A

Content Analysis Approach in Online Forum Discussion

Qonit F. Adzkiaa, Lidia Mayangsarib*

a, bSchool of Business and Management, Institut Teknologi Bandung, Jalan Ganeca 10, Bandung, Indonesia

Abstract

This research aims to analyze the young consumer behavior toward Made-To-Order (MTO) fashion products using qualitative

content analysis. The data are user-generated and scrapped from one of the oldest online forum in Indonesia called Kaskus.com.

There are four steps in text analytics: (a) text mining from data derived from forum; (b) data cleaning from the unnecessary scrap

data; (c) coding process to find the meaning; (d) generate categories and interpret the data. Findings are referred to six major

concepts related to consumer behavior and service quality in the light of Generation Y characteristics.

Keywords: Consumer Behavior; Made-To-Order (MTO); Service Quality; Text Mining; Qualitative Content Analysis.




Business Strategy for Tarkam Application Based Business

Laksmi Rachmadita

School of Business and Management, Institut Teknologi Bandung

Abstract

Tarkam is a brand for start-up company who runs the business in social commerce industry. This company has been running this

business for more than two years. At the beginning of establishment, the company was run by three people who shares their same

interest and has the same aim to create something to sustain their hobby in futsal. Tarkam is a business that specialize for futsal

player using mobile application with aim to become platform which able to facilitate futsal player meet their perfect team. By

having own funding, this company has been succeed to acquire six people that placed as a representative in several departments

and has been released the application in Google Play Store. Tarkam that provide free application, found out if they are facing a

problem that related to user quantity that presented through the incline of uninstall rate and lack of sales that gained from selling

advertising spot. Because of that, conceptual framework of this case has been structured by proposing research objective using data

gathering through primary and secondary data. Since this business is running in application based business, therefore the objective

of this research is to find out about factors that will attract users to download the application and to see which is the dominant

factors and to apply suitable strategy for the business. This data will assess into internal and external analysis approach to deeper

SWOT analysis. Through SWOT analysis then come up Generic Strategy for Tarkam that will be analyzed further using Five

Diamond Analysis. The result of this research has appear by conclusion if there are several dominant variables which attract user

to download an application which are: variable needs, feature, and cost. To be able to fulfill user needs based on those variable,

then the strategy has been generate that covering: collaboration, differentiation strategy, and proposing a new business model that

hopefully could bring positive impact for the company’s financial performance.

Keywords: Business Strategy; Social Commerce; Sport



A Proposed Over-The-Top Initiatives Cycle

Jemy Vestius Confidoa*, Dermawan Wibisonoa,b, Yos Sunitiyosoc

a,cBandung Institute of Technology - School of Business and Management, HR Rasuna Said Kav 1-2, Jakarta 12950, Indonesia bPertamina University, Teuku Nyak Arief Simprug, Jakarta 12220, Indonesia

Abstract

Communication Service Providers (CSPs) are facing disruption from Over-The-Top (OTT) players that have been providing

indirect charging or free-like services in addition to the network infrastructure provided by the CSPs. To anticipate these challenges,

CSPs must provide their own OTT services under various limitations of existing development processes. In current practice, the

development of an OTT business usually begins with a project initiation and follows a project management approach. However,

OTT initiatives have more specific characteristics, e.g., interdependency, externality and different investment or cost structures,

than most projects. This research aims to propose a different approach for OTT initiative development that includes four major

steps: portfolio construction, development strategy, business model design, and business parameter definition. The research deploys

group model-building and action research to develop an OTT initiative cycle and test it in a real-world situation. Empirical study

in one of the largest CSPs in Southeast Asia, which was also included in the top ten CSPs in Asia Pacific, indicates that the OTT

initiative cycle is both very useful and easy to use for CSP business managers in making decisions related to OTT initiatives.

Keywords: Over-The-Top (OTT) services; Communication Service Providers (CSPs); Portfolio, Business Models; Business Parameters




Analyzing Intangible Benefits of Information Technology Service

Desk from the Perspective of Service Provider in Higher Education

Hanina Nur Ranishiaa, Anisah Herdiyantib*, Sholiqc

a,b,cInformation Systems Department, Sepuluh Nopember Institute of Technology, ITS Campus, Surabaya 60111, Indonesia

Abstract

Information Technology (IT) Services have been implemented widely in Higher Education, e.g. academic online services, e-

learning, service desk services. One of important IT services to ensure that IT is somewhat being leveraged according to its purpose

is a service desk system. The system facilitates the process of reporting complaints including requests and the following actions to

resolve the issues. However, there is still lack of understanding on how the systems can provide benefits to non-profit organization,

i.e. Higher Education. This research focuses on understanding the intangible benefits of an IT service in Higher Education by

implementing an approach introduced by Silk in 1990. The Silk approach presents 6 (six) steps to analyze intangible benefits and

convert the benefits into financial measures. At the end of the research, a simple business case is developed. The result from this

research provides an insight on the benefits of implementing a Service Desk system in Higher Education.

Keywords: Information Technology Services; Intangible Benefits; Silk Approach; Service Desk




The Antecedents of User Intention towards Digital Collaborative

Consumption Platform in Indonesia

Lukni Burhanuddin Ahmada*, Reza Ashari Nasutionb

a,bInstitut Teknolog Bandung, Jl. Ganesha No.10, Bandung 40132, Indonesia

Abstract

The rise of digital business has been happening in several countries globally since the Sillicon Valley’s Brand has been

monopolizing the world technology lifestyle especially in digital domain. Its multiplier effects affects the startup ecosystem

globally especially in developing countries. Since the phenomenal technological company from search engine company like google

and yahoo up to transportation sharing company, uber dominate the global market, many startups in various domain and field have

been developed, most of them are slowly growing and only a few who remains and getting bigger as the global unicorn like Grab,

Gojek, Instagram, Whatsapp and other smaller potential startups. The monetizing of digital platform is mostly based on sharing

economy, a collaborative consumptipn, how they maximizing the utilization of a product by sharing its usage, charge fee for its

use and the price will be determined depending on the particular product that is offered, and through online the peer-to-peer

communication is developed. In many developing countries, goverment’s initiatives programme was formed to help startup players

can scale their business, but whether its strategy certainly brought some startups into their successful? In the technology based

product, market becomes important at the initial stage since the business is considered by bank as a high risk investment. This

research is made in order to understand how is the market as user responding to the online collaborative consumption.

Keywords: Collaborative Consumption; Digital Business; Startup; User Intention; Online Market




Aligning business engineering education with contemporary

industry requirements

Hazel Gruenewald

ESB Business School, Reutlingen University, Alteburgstrasse 150, 72762 Reutlingen, Germany

Abstract

Business Engineering emerged as an academic discipline almost a century ago in response to economic demand for experts with

both business and engineering expertise. The discipline has evolved over time to meet the needs of the fast changing global

marketplace. Moreover, globalization has impacted the architecture, governance and running of organizations. Education has

responded to these changes by also adapting its architecture and governance to fit international needs. This can be see most clearly

in the integration of international components into curricula. Study abroad and foreign internship semesters are the norm in many

business engineering curricula around the world, enabling students to gain insights into different methods, processes and tools

before they graduate. Some institutions have gone one step further to create joint or double-degree programs.

This study looks at the case of ESB Business School, Reutlingen University. The school’s internationalization strategy in business

engineering pursues two main initiatives. Firstly, in collaboration with international academic partners, ESB Business School has

established international double degree programs. Secondly, together with a wider range of academic and industry partners, the

school has founded the International Association of Business Engineering Professionals (IABEP), which seeks to create and

promote industry awareness of business engineering internationally. Both ventures highlight the need to define the focus and scope

of business engineering in practical terms. Schools need to find a common denominator to be able to establish and market double

degree programs. Moreover, it is vital that they ensure that their key product, business engineering graduates, possess the

competency profile desired and required by potential employers.

For this reason, an exploratory industry-driven study has been undertaken to examine some of these areas. The research was

performed in two steps. Initially 13 qualitative interviews were carried out with company representatives of international

companies. Secondly, a global industry survey was conducted with 41 responses. Questions were selected following a literature

review. The study indicates which study programs are most commonly sought after by industry in the different regions. It confirms

that business engineering is a relevant field for global companies, seeking professionals with both technical and business expertise.

It sheds light upon the hard and soft skills required by employers and what work experience they consider most relevant. Moreover,

it provides insights into new avenues to explore in terms of cooperations between academic and business partners.

Keywords: Business Engineering; Competence; Employability, Domain Expertise



Sentiment Analysis through Preliminary Big Data: a Beneficial

Approach of Obtaining Large Customer’s Insight for

Knowledgeable Decision Making

Batara Parada Siahaana*, Eko Agus Prasetiob, Togar Mangihut Simatupangc

a Institut Teknologi Bandung,[email protected] bLecturer at SBM Institut Teknologi Bandung, [email protected]

cProfessor at SBM Institut Teknologi Bandung, [email protected]

Abstract

Getting insight from online social media which were generated by individual users with potential millions of insight each day is

becoming a very important thing for companies to understand their current brand position in a relatively short time for accurate

decision making benefit. The fact that bad remarks and negative comments on social media can affect a brand very quickly to

potentially severe impact to the company’s image makes checking company’s online performance is becoming much crucial.

Although conventional approach such as hiring consultant services and targeted online and offline survey about product and brand

image can be done, the insight provided by such approach is way shallower compared to the insight being available on social media

which is easy to access and publicly shared. People also tend to communicate and express their individual and unique feeling about

the product freely and informally where the honesty could be obtained without any preliminary cost at the company side. This

study is trying to propose a way of thinking for data mining approach and data analytics approach which will be beneficial for

companies to get large insight about their brand and product to be an actionable insight in a relatively short time and effectively

affordable. This study adopting conjoint analysis approach to build the analytics foundation based on positive and negative wording

to build the framework for positive and negative sentiment analysis. Based on those analytics, the preferences of wording and

sentences which appeared on social media were to be measured based on percentage of positive and negative remarks. Series of

data cleaning and data formation algorithm were also conducted to provide a more accurate data insight, following steps includes

the analysis of the data insight is provided in this study.

Keywords: Big Data; Social Media; Data Analytics; Sentiment Analysis; Statistics Conjoint Analysis.




Improvement of Headrace Tunnel Excavation Productivity at

Jatigede Hydro Electric Power Plant Project

Ainanto Nindyo

School of Business and Management, Institut Teknologi Bandung

Abstract

In most part of Indonesia, demand for electrical energy has rapidly been growing since the last two decades. To catch up this

increasing demand, Government of Indonesia plans to build a number of electric power plants. The program was divided into two

phases or Fast Track Program (FTP), 10,000 MW Project Batch I and 10,000 MW Project Batch II. Under the circumstances, PT.

PLN (Persero) is developing a new hydroelectric power plant at Sumedang District, West Java Province. At this area PLN intends

to build Jatigede hydroelectric power plant project with an installed capacity of 110 MW (2 x 55 MW). The Contractor who works

on the construction of Jatigede Hydro Electric Powerplant Project is Sinohydro-PP Consortium. The Design & Construction

supervision is handled by PLN Enjiniring and subconsulted by Fichtner.

One of critical path in the construction is the excavation of the headrace tunnel. Seen from the geological condition exposed by

excavation, the excavation progress of the headrace tunnel is mainly limited by tunnel working space, unforeseenable bad

geological conditions and the great change of the surrounding rock type in the tunnel, which results in slow excavation progress.

In order to greatly reduce the pressure of construction period impacted by delayed headrace tunnel on the whole project, it is needed

to find alternatives solution to catch up the schedule. The productivity target from the contract was 2.53 m/day. At the first there

was no problems to the productivity and can achieved to 6 m/day. The problems arise when the bad geological conditions faced in

the underground impacted the productivity of excavation became 1 m/day.The method analysis of the research is using root cause

analysis.

The problem solving alternatives generated from the causes of the analysis. The alternative solutions then being prioritized using

priority matrix. Working method changed is decided to answer the productivity problems and it will automatically give a set of

solutions (additional human resources, additional equipment resources, additional material resources). The solution also consider

the factors of construction safety, economy and construction schedule.Combined the site survey with layout of headrace tunnel,

ground and terrain condition along headrace tunnel, scope of land acquisition by dam and supplementary geological investigation

data, the method change is adding working faces to the headrace tunnel excavation from the new portal Adit Tunnel No.3. The

design was submitted and reviewed by all parties. The implementation is being monitored and the work is distributed to every

Person In Charge. Today the Adit Tunnel No.3 is not yet reach the upper headrace tunnel location, the tentative improvement of

productivity from the excavation Adit Tunnel it self is 2.1 m/day. Saving from the working method changes is 254.5 billion rupiah,

and the cost is 27.3 billion rupiah (assumpted the cost already deal between contractor and PLN). From the analysis we can set the

benefit cost ratio is 254.5 billion rupiah / 27.3 billion rupiah or B/C ratio = 9.32

Keywords: Improvement of Tunnel Excavation Productivity; Tunneling Working Method Change


MARKETING



The Influence of Event Planner Instagram Content to Customer

Purchase Intention

Case Study of “Seperti yang Diimpikan” Event Planner

Sofwatun Nidaa*, Evy Rachmawati Chaldunb

a,bSchool of Business and Management Institut Teknologi Bandung, Bandung, 40132, Indonesia

Abstract

Social media become popular nowadays especially for a company to do marketing strategy. Big to small business doesn’t need

huge investment and can generate market awareness. Instagram is one of popular social media, that allows users to shared photos

or videos among users. What’s make instagram interesting is content itself. The content consist of message that want to be shared

by the users. In this research we develop 4 hypothesis that can influence customer purchase intention which are product centric,

user-generated content, celebrities endorsement, and event-highlight video. In this paper, we present quantitative data we got from

questionnaire that spread to 225 respondents online. The research using non-probability sampling with respondent’s criteria are age

17-30 years old, live in Bandung and Jabodetabek, and active Instagram user. Based on that, we identify Seperti yang Diimpikan

event planner’s Instagram content and analyze the data which influence customer purchase intention. Our result reveals the

hypothesis is acceptable.

Keywords: Social Media Marketing; Instagram Content; Customer Purchase Intention; Multiple Linear Regression

* Sofwatun Nida. Tel.: +62-812-838-34143




Evaluating Sport Sponsorship Model Among Soccer Fans In

Indonesia “Case Study Of Arema Fc“

Rizky Aditya Maulanaa*,Fitri Apriliantyb

a,bSchool of Business and Management, Bandung Institute of Technology, Jl Ganesha No.10, Bandung 40132, Indonesia

Abstract

In order to promote their goods, a company has variety of ways, one of them by sponsorship. In sponsorship each company can

choose whether through an event or through sports. Nowadays, companies have globally increased their investment in sport

sponsorship. Companies are willing to spend a big enough money to be able to advertise in sports activity or sports teams to raise

awareness of its product/services in the public. Among sports, soccer is the most heavily sponsored sport. Seeing the large number

of sponsors attached in many of Indonesian soccer club jersey shows that soccer club became one of emerging sponsorship media

to advertise products/services. This research examines the effectiveness of sponsorship in soccer club among its fans by test the

relationship between key variables of sponsorship influence that include team attachment, corporate image future purchase

intentions, and brand loyalty. This research objective are to find out how’s the effectiveness of the company to using soccer team

as their marketing tools by mapping the sport sponsorship mechanism in Indonesia and test the relationship between variables of

sport sponsorship (team attachment, brand awareness, brand loyalty, and purchase intention) in Indonesia. By using both of

qualitative and quantitative approach, such as conducted in-depth interviews and a survey to obtain the data assess whether the

soccer spectators were aware of the sponsorship of AREMA FC. The result shows that team attachment have positive relathionship

with brand awareness, brand loyalty and corporate image, while did not have positive relationship with purchase intention. In

addition, brand awareness and corporate image did not have positive relationship with purchase intention, while brand loyalty did.

Keywords: Sport, Sponsorship,Soccer Club, AREMA FC

* Corresponding author. Tel.: +6281335241307;

E-mail address:rizky. [email protected]



The Effect of Internet Penetration towards Online Display

Advertising Ecosystem in France and Indonesia

Siti Nurlaila*

Institut Teknologi Badung, Jalan Ganesha no 10, Bandung 40132, Indonesia

Abstract

Purpose - Nowadays internet has become one of the most important media that can help us to deal with all the problems that we

face in our everyday life. In business we can use the internet to promote services / products by using advertisements on the website

called online display advertising. It come in various kinds of forms such as banners or video advertisements. There are actors

involves and the process of creating online display advertising is called online display advertising ecosystem. The main purpose of

this project is to describe and compare online display advertising ecosystem and what aspects of internet penetration effect the

development of online display advertising in France and Indonesia. Design Methodology / Approach – A qualitative research approach will be conducted for the data in France by doing an interview

to gain a more deeper insight on how the ecosystem works. They will be the ones who works in an advertising agency around

Rennes and Paris. A secondary data research approach will be done to gain information for the data in Indonesia

Findings – Results indicated that both countries have different online display advertising ecosystem and the way it works. Other

results also indicated that the impact of internet penetration towards both countries will be different depending on the numbers of

internet users and how they utilize it both in Indonesia and France.

Research Limitation / Implication – This study is limited to 3 selected people who has experienced one year or more in an

advertisement companies around France.

Originality / Value - So far, there has been no research that concerns on how internet penetration effected online display advertising

ecosystem in a country by comparing it with other country’s online display advertising ecosystem. Additionally, this research will

help practical studies in digital advertising and other similar research in the future specifically in Indonesia. Paper Type: Exploratory

Keywords: Internet Penetration, Display Advertising, Digital Media, Digital Advertising, Mobile Advertising, Online Display Advertising

Ecosystem

* Corresponding author. Tel.: 0811-977-2710.




Social Media and Luxury Brand: What Luxury Watch Brands Need

to Know When On Instagram

Armansyah Adhityo Pramonoa*, Fitri Apriliantyb

a,bSchool of Business and Management, Bandung Institute of Technology, Jl Ganesha No. 10, Bandung 40132, Indonesia

Abstract

The relationship between social media and luxury brands was started with hesitations due to different characteristics. Nevertheless,

the huge opportunities brought by social media are something to be considered. It enables luxury brands to interact wider without

time and distance barrier while the best platform for engagement is Instagram. Consequently, many luxury brands are trying to

have their own Instagram accounts. However, there are no sufficient literatures that have discussed how things work specifically

among the luxury watch brands. This research intends to find out how luxury watch brands should use Instagram and its effect on

customer relationship and purchase intention. Researcher explores luxury watch brands’ social media attributes (entertainment,

customization, interaction, word of mouth, and trend) and values (functional, hedonic, symbolic, financial, and relational) adopted

from related journals. Then, this research will use PLS-SEM analysis to evaluate the relationship. Content analysis towards

Instagram’s practice of five luxury watch brands will also be conducted to gain insights for suggesting recommendation. Result

indicates that there is a positive relationship between social media marketing, customer relationship, and purchase intention. Also,

symbolic and hedonic value appear as the most engaging contents while relational shows potential though it has not been

implemented frequently.

Keywords: Social media; Instagram; Luxury watch brand; Customer relationship; Purchase intention; Content analysis; PLS-SEM





The Impact of Using Indonesian Supermodel on Advertising to

Consumer Buying Behavior on Indonesian Fashion Products

Almira Tri Auliaa*, and Yulianto Suhartob

a,bSchool Of Business and Management, Intitut Teknologi Bandung Jl. Ganesha No.10, Lb. Siliwangi, Coblong, Kota Bandung, Jawa Barat 40132,Indonesia

Abstract

As the fashion industry in Indonesia is competing, the need of fashion models in Indonesia is increasing rapidly. Using a supermodel

in their advertisement becomes one of their strategies to lift customer’s awareness to the brand. Moreover, Indonesia’s number of

regular models exceeds the number of supermodels, resulting in a significant rate gap between supermodel and regular models.

This will be the focus of the study to investigate if the presence of a supermodel will helped in influence purchase intention and

favourable attitudes toward the advertisement of the consumers. This research identified the impact of using supermodel in

advertisement to consumer buying behavior in terms of attitude and purchase intention. The advertisements used are advertisement

in scope of Indonesian fashion brand campaign. In this research, 100 women and have the average shopping expenses of minimum

Rp.300.000 and above per month were filled the questionnaire. The questionnaire distributed online and then analyzed using multi

regression analysis, F-Test, and T-Test. Based on the research, findings show that supermodels have bigger and significant impact

than regular models, both on attitude towards the advertisement and to purchase intention. Therefore, using supermodel in fashion

product advertisement really should be considered due to the good impact

Keywords: Advertisement; Attitude; Purchase Intention; Supermodel; Regular Model




The Impact of Instagram Content towards Purchase Intention in

Fashion Bag Industry Case Study: reyn.id

Valencia Indinaa*, Evy Rachmawatib

a,bSchool of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia

Abstract

The increasing popularity of social media has opened new opportunity for business to connect with customers. Instagram has been

beneficial for business especially fashion brand. One of the local brand, REYN, as the case study in this research, using Instagram

as their main marketing channel. However there is a big gap between the engagements of the Instagram content of REYN and the

purchase intention.So this research intended to get a closer look what kind of Instagram contents of REYN that have a significant

effect toward purchase intention. This research method is explanatory with quantitative approach through online questionnaire.

After literature review, the independent variable are product presentation content, user-generated content, aspirational group

content, and utilitarian message content with purchase intention as the dependent variable.The data that collected with non-

probability sampling and will be analyze by using multiple linear regression on SPSS. Based on this result, the Product Presentation

Content, User-Generated Content, and Utilitarian Message content have positive impact toward purchase intention while

Aspirational Group Content show no significant impact. The biggest factor that influence REYN customer’s purchase intention is

the Utilitarian Message Content.

Keywords: Instagram Content; Purchase Intention; Fashion Bag

* Corresponding author. Tel.:081-222-16-1113.




Critical Success Factors of New Market Channel Collaboration:

Preliminary Evidence from West Java Cooperatives

Jessica Setiawana*, Mustika Sufiati Purwanegarab


Abstract

This paper aims to explore and rank the factors influence the collaboration in the buyer-seller relationship that represents the

relationship among constructs in the case of West Java, and hopefully this research can be applied to others regions in Indonesia.

One sample T-test is used to analyze this study. Pearson Correlation is used to measure the validity of the data. Cronbach’s Alpha

is employed to measure the reliability of the data. The results show the items questions are valid and the respondent’s answers are

reliable. The factors were reduced from 9 factors to 7 factors according to expert judgement. Competence-based trust is the most

important factor to collaborate with new market channel. Followed by reward influence, dysfunctional conflict, functional conflict,

coercive influence, cooperation, and goodwill-based trust. Further research is needed to enrich the result by enlarge the sample size

and the target respondents. Hence, the result can be applied in other regions in Indonesia. More qualitative research such as in-

depth interview is needed to enrich the phenomena. Conduct more literature review to get better understanding about this research

topic.

Keywords: Buyer-seller relationship; Collaboration; Market channel

* Corresponding author. Tel.:+62-822-1854-5818.




Developing Value Co-Creation Scale along Customer Journey in

Banking Industry

Nuri Wulandaria*, Reza Azhari Nasutionb

aIndonesia Banking School, Kemang Raya 35, Jakarta 12730, Indonesia bSchool of Business and Management – Institut Teknologi Bandung, Ganesha 10, Bandung 40132, Indonesia

Abstract

Co-creation is a seminal concept in marketing explained as the engagement between service provider and customer in creating

value. This concept has built into a rich and wide array of studies which become priority area in the discipline. Nevertheless, the

understanding of the concept is still evolving and the development of scale to measure value of co-creation process in service

industry is still limited. The current research starts with investigating points of customer journey, identify and relate factors

correspondence with value spheres framework. It then tested the scale to 208 respondents in banking industry and found that the

indicators are reliable and valid. In addition, the study also investigates the relationship between co-creation, affective commitment

and attitudinal loyalty. The value of the study lies in the consideration of all elements contribute to customer journey of co-creation

including direct and indirect interaction which contributes to future study on value co-creation.

Keywords: Co-creation; Marketing ; Value Creation Sphere; Customer Journey ; Service Dominant Logic; Banking.




Consumer Behaviour of Indonesian Specialty Coffee Drinkers

Faris Izzi Hibaturrahmanab

aSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No.10, Lb. Siliwangi, Coblong, Kota Bandung, Jawa Barat 40132, Indonesia

bUniversity of Hull Business School, Cottingham Rd, Hull HU6 7RX, United Kingdom

Abstract

The trend of consuming specialty coffee has been increasing due the changing behaviour of coffee drinker in Indonesia. And, that

can be indicated from significant growth between 1990 and 2018 for coffee consumption in Indonesia with percentage of 73%.

Also, the coffee preference has change from consuming instant coffee to consume specialty coffee, especially due the massive

growth of specialty coffee shop or café in metropolitan city such as Jakarta and Bandung. Indeed, there are several aspects that

shaping behaviour of Indonesian coffee drinkers in this modern era.

Keywords: Emerging Market; Specialty Coffee; Agriculture; Consumer Behaviour; Coffee Market



Factors Affecting Customer Loyalty in Business-to-Business Sector

(Case Study: CV. Restu Jaya Sejati)

Lydia Christiea*, Atik Aprianingsihb


Abstract

In a tight competition in the distribution industry these days, it is getting harder to retain existing customers. Loyalty has a

significant influence on the existence of a company, including for a Business-to-Business (B2B) company such as Restu Jaya Sejati.

Restu Jaya Sejati is a distribution company which supply various of daily necessities to society in Tangerang area. The purpose of

this study is to investigate factors that affect the loyalty of Restu Jaya Sejati’s customers. Respondents for this study are business

consumers of Restu Jaya Sejati and selected using convenience sampling. The number of respondent in this research is 264

respondents. The method that the researcher use is the quantitative method. The questionnaire was a self-administered questionnaire

and distributed to the business consumers of Restu Jaya Sejati. Further, the data were analyzed using multiple linear regression.

The result shows that INDSERV has a significant relationship with loyalty toward CV. Restu Jaya Sejati.

Keywords: Business-to-Business; Loyalty; INDSERV.




Analytical Hierarchy Process for Consumer Preference of Café

Interior Design

Ricky Rahmadyansah Husnia*, Dina Dellyanab

aMagister of Business Administration, Institut Teknologi Bandung (ITB), Jl. Ganesha No.10, Lb. Siliwangi, Coblong, Kota Bandung, Jawa Barat 40132

bSchool of Business Management, Institut Teknologi Bandung

Abstract

Indonesia’s economy has been experiencing rapid growth recently, following with the emerging population of middle class and

affluent consumer. The current vibe among Indonesian society, opening up restaurants or cafes is profitable business venture for

local or foreign investors. According to global data, the global business opportunities of interior design reached Rp 8.1 trillion.

Interestingly, every year the interior design business even uphill about 24%. Not without reason, Interior design has become one

of the important things in the property. Commonly, most business owners waste more money without results because the design is

unable to reach the market tastes. The growth of the café and restaurant business affects most of the economy and development in

Indonesia, especially in Jakarta and Bandung. It needs an awareness of the people who invest or have a café to design with a proper

design that can contribute to the beauty of the city. Interior designer is becoming more needed than before therefore we need to

understand the current customer preferences on store interior design. This study demonstrates the interior design type selection for

café, the applicability of Analytic Hierarchy Process (AHP) in solving such a problem. AHP is a multicriteria decision making

(MCDM) approach, which is based on the pairwise comparison of elements of a given set with respect to multiple criteria. Even

though there are applications of the AHP to interior design type selection, using the Expert Choice software. We report our findings

and our insights, together with the results of a sensitivity analysis. In order to conduct an AHP approach, this study need to

determine what criteria and alternatives that will be included. From the previous research, consumer perception of store image and

servicecape personality and design used to find the 6 criteria that affect interior design which are layout, lighting, furniture, color,

ornamentation and texture. 5 holistic type design used to determine the alternatives. Keywords: Analytic Hierarchy Process (AHP); Multicriteria Decision Making (MCDM); Consumer Preference; Servicecape; Café Interior

Design; Expert Choice






Efficiency Marketing Chain Analysis Of Sangkuriang Catfish (Case

Study : Farmers In Parung District, Bogor Regency)

Abel Gandhya*, Venty Fitriany Nurunisab

a,bSurya University, Unity Tower Building, Tangerang , 15810. Indonesia

Abstract

Aquaculture is an alternative of sustainable solution to meet the high demand of fish. One type of fish that is most easily cultivated

and preferred by consumers is catfish. Catfish production is the third largest after seaweed and tilapia. Sangkuriang catfish (Clarias

sp) is a species of catfish that has advantages over other types of catfish. West Java Province is the largest producer of catfish,

which produced about 596,064 tons, and Bogor is the central area of catfish production in West Java. Parung subdistrict, is one of

Minapolitan Area in Bogor which focuses on catfish grow-out. The objectives of this study are to analyze: 1) the pattern of

Sangkuriang catfish trading channel, 2) the function of trading, and 3) the efficiency of the tataniaganya. Price as the deciding

factor for the efficiency level of a marketing channel. Selection of respondents using purposive sampling, by setting 50 of catfish

cultivators as respondents. There are 4 marketing channels in Kecamatan Parung. Institutions involved in the marketing of catfish

are cultivators, collecting traders, agents, market traders, pecel catfish and end consumers. The second channel is the most efficient

channel.

Keywords: Marketing channel; Margin: Farmer’s Share; Catfish; Efficiency




Farmers Knowledge and Brand Equity of Fertilizers

Prima Novandino Sharmaa*, Mustika Sufiati Purwanegarab


Abstract

Farmers who have been cultivating rice crops have their own cultures in the use of fertilizers as the important needs for their crops.

The farmers’ knowledge about the fertilizers is acquired from childhood, whereas they learned from their parents (generation to

generation) who also work as farmers for many years. We conduct a short ethnography study from January to July 2018 gradually

in Subang regency in West Java to analyze the knowledge of the farmers about fertilizers and the brand equity of fertilizers. The

research use purposeful sampling strategy with twenty participants that consist of farmers, chairman of the farmers’ group and the

association of farmers, kiosks’ owners, extensionist and researchers. The validation used triangulation by collect the data from

participants above and also involving the farmers from Bandung regency. The result shows that the farmers understand about the

fertilizers but actually they do not really care about the brand, because the importance of the farmers is the efficacy of the fertilizers.

To increase the brand equity of fertilizers, it needs influencers and evidences that can be shown to the farmers. It also can be done

by the promotion like demonstration plot (demplot) and socialization in the farmers’ land.

Keywords: Brand Equity; Culture; Ethnography; Farmers; Fertilizers; Knowledge; Promotio



mailto:[email protected]@sbm-itb.ac.id



The Study of Push and Pull Motivation Effect towards Willingness

to Visit of Students in Bandung: Case Study Ciletuh UNESCO

Global Geopark, Sukabumi, West Java Indonesia

Hanif Abdurrahman Wicaksanaa*, Herry Hudrasyahb

a,b School of Business and Management Institut Teknologi Bandung, Jl. Ganesha 10, Bandung 40132, Indonesia

Abstract

Geopark is one of the new tourism concept in Indonesia. Ciletuh UNESCO Global Geopark is one of the famous geopark destination

in Sukabumi, West Java, Indonesia. Ciletuh UNESCO Global Geopark offered environmental resource consists of geological,

biological, and cultural aspects with a main activity consists of education, conservation, and sustainability development for local

communities. The research that conducted in developing Ciletuh UNESCO Global Geopark was rarely touched consumer

behavioural aspects especially in motivation field. This study will investigate the effect of push and pull motivation consists of

education, relaxation, excitement, amenity, attraction, closeness to local people, and various tourism activity towards willingness

to visit amongst students in Bandung, West Java, Indonesia. The investigation involved 168 students respondent in bandung using

online questionairre. The dataset which gathered from respondents was analyzed by simple regression method. The research

resulted in a significant effect of attraction, closeness to local people, and various tourism activity towards willingness to visit.

Keywords: Push Motivation; Pull Motivation; Willingness to Visit; Geopark; Ciletuh; UNESCO Global Geopark




User Experience and User Interface Evaluation for Chat Bot Kiwari

to Improve User Traffic in BUMN Environment in Indonesia

Bella Dwi Jayantia*, Maya Ariyantib

a,bTelkom University, Bandung 15412, Indonesia

Abstract

The development of chat bot is growing rapidly around the world, including Indonesia. There is Kiwari, application of chat bot for

state-owned employees to fulfill their work needs with more natural and smarter conversations. However, despite the breakthrough

of messaging app by using chat bot, many state-owned employees in Indonesia still find it difficult to use Kiwari as their messaging

app This paper build on existing theoretical and empirical studies about usability in order to examine how user experience and user

interface that suitable for Kiwari chat bot to attract users, especially state-owned employees in Indonesia. Researcher using

qualitative method in order to obtain deep data and information. Researcher conducted in-depth interview by interviewing four

different sector, which are business, consumer, government and user experience expert. Besides, Researcher also conducted

usability test by observing and watching user using Kiwari apps in order to get which aspects are problematic and which work well.

The location of research taken in Jakarta and Bandung where many head office of state-employees located.

Keywords: Chatbot; User Experience; User Interface; Usability.





SWOT Analysis of Marketing Tourism in Leading Tourism Object

of Bandung and Soppeng

Mutia Tri Satyaa*, Gatot Iwan Kurniawanb, Muhammad Asdarc, Abdul Razak Munird

a,bSTIE Ekuitas c,dUniversitas Hasanuddin

Abstract

Bandung and Soppeng are sister city. Many similarities between the two of them are natural contours are considered similar to the

city of Bandung, has a contour of hilly, rice fields, mountains and forests. Watansoppeng is known as Bandoeng van Celebes

(Bandung in South Sulawesi). Have the same slogan that is BERHIBER (Clean Green Flowering), but Soppeng plus Beautiful.

Regional foods are many similarities to the types of food on earth priangan. Both in terms of taste and type of food. Both of these

areas are actively promoting tourism programs. Bandung is the capital of West Java with the slogan Bandung Juara ("Bandung

Champion"), his government a lot of fixing up of facilities and infrastructure to develop tourism. So also with Soppeng, one of the

areas in South Sulawesi with the program Visit Soppeng ("Ayo to Soppeng") aims to attract both local and foreign tourists to visit

this area. The purpose of this study is to make SWOT analysis of marketing tourism on leading tourist attractions and then create

a model marketing tourism that will be applied in Bandung and Soppeng. It is expected that this model can develop tourism in both

areas.

Keywords : Marketing tourism; Analisis SWOT; Sister city





Influencing Factors of Consumers’ Intention to Reuse an Online

Travel Agent’s Mobile Application

Anggia Aryanditaa*, Ira Fachirab

a,bSchool of Business and Management

Abstract

Nowadays, the Internet has become a necessity. Almost any kind of products can be bought online, and travel essentials or tourism

business are no exception. There are different types of e-commerce and the one that runs travel business online known as OTA

(Online Travel Agents). OTA's (Online Travel Agent) trend in Indonesia is increasing because of the high demand. An Online

travel agent is now becoming a favorite for the consumers to plan their travel itinerary, started from the tickets, hotel bookings even

until car-renting. The usage of Online Travel Agents can be accessed from two different ways, which are through website and

through mobile application. In the past years, the usage of mobile application has been increasing significantly. This can be seen

from the total downloads of Online Travel Agents’ mobile application and the transaction done in the mobile application. Looking

at the potential, it is essential to identify the influencing factors of consumers' intention to reuse an online travel agent’s mobile

application and this is the purpose of this research. Analysis data for this research was performed by using SmartPLS. The data

was collected from 435 people in Bandung by using the convenience sampling.

Keywords: Tourism Business; Online Travel Agent; Consumers’ Intention; Mobile Application





Millennials Online Buying Behavior on Sportswear Product

Fatimah Azzahraha*, Lidia Mayangsarib

a,bSchool of Business and Management, Institut Teknologi Bandung. Jl. Ganesha No,10, Bandung 40116, Indonesia

Abstract

As Indonesian has started to embrace sport as a part of lifestyle, it will be a huge opportunity for sportswear company optimized

the market. The Millennials generation is the one that is most anticipated for the lifestyle. However, the behavior of each generations

are different affecting by several factors such as internet. By analyzing the online buying behavior of Millennials towards

sportswear, the appropriate marketing strategy could be used by sportswear brand. This research used quantitative method using

questionnaire to collect the data.

Keywords: Sportswear; Millennial Generation; Generation Gap; Online Consumption Behavior; Behavioral Decision Making




Analysis of Factors’ Relationships with Brand Loyalty at Rumah

Djuanda Yoga Studio

Ardhelia Triaratanaa*, Atik Aprianingsihb


Abstract

People are constantly looking for a way to ease their mind and body, and yoga is one of the easiest choices to access. Rumah

Djuanda is a boutique yoga studio located in Setrasari area. It has existed for more than two years, and lately it is facing a decline

in its active members. Therefore, the research is conducted to know if there is loyalty problem, and also what factors that have

significant relationship with members’ loyalty. From previous researches, these three factors are chosen: brand trust, perceived

quality, and brand satisfaction. After collecting data from 118 registered members in the form of questionnaire, perceived quality

has significant positive relationships with brand trust and brand satisfaction, and brand trust and brand satisfaction both have

significant positive relationships with brand loyalty. The brand loyalty level is high, also the score of each variable is satisfactory,

which means there is enough trust, perceived quality, and satisfaction perceived by the members to keep practicing at Rumah

Djuanda.. However, some physical equipment, service and other factors may cause members to stop coming. The result of this

research can be discussed with Rumah Djuanda’s management team, and for suggestions on next research and yoga industry.

Keywords: Brand Trust; Perceived Quality; Brand Satisfaction; Brand Loyalty; Yoga Industry




The Influence of Product Experience on Customer Loyalty of

Frozen Food Product

Made Fiona Dwi Utamia*, Evy Rachmawati Chaldunb


Abstract

Indonesia’s frozen food industry is experiencing a rapid development. Many small to big company targeting almost the same target

market that leads to a tight competition. Therefore, many businesses concern on gaining customer while enhancing their customer

loyalty. Dealing with loyal customer is less costly and give many benefits for the business. Product experience is one factor that

could help eliciting a positive experience to eventually enhance the customer loyalty. This research aims to investigate the influence

of product experience on customer loyalty of frozen food product. Three hypothesis were developed which aesthetic, meaning, and

emotional experience have significant influence towards customer loyalty. Purposive sampling was used and 277 qualified

quantitative data were collected through online questionnaire. The data was analysed using multiple linear regression. The result

shows that there is significance influence of product experience’s elements on customer loyalty of frozen food products. Which

means both hypothesis is accepted. The predictors able to explain 51.2% variations of customer loyalty, and experience of meaning

as the highest predictors of the variation. Keywords: Frozen Food; Product Experience; Aesthetic Experience; Experience of Meaning; Emotional Experience; Customer Loyalty; Small

and Medium Enterprises, Multiple Linear Regression

* Made Fiona Dwi Utami. Tel.: +62-857-211-79916




An Analysis of the Influence of Service Quality Dimensions on

Customer Satisfaction and Customer Loyalty in Skin Care Clinic

Industry

Syanita Febriantia*, Annisa Rahmani Qastharinb, Prawira Fajarindra Belgiawanc

a,b,cSchool of Business and Management, Institut Teknologi Bandung, Jalan Ganesha No. 10, Kota Bandung, 40132, Indonesia

Abstract

The purpose of this research is to analyze the influence of service quality dimensions toward customer satisfaction and customer

loyalty in skin care clinic industry. Five service quality (SERVQUAL) dimensions which consist of reliability, responsiveness,

assurance, empathy, and tangibles are used in this research. To collect the data, the quantitative method by conducting survey

through questionnaire is applied. PLS-SEM is performed to analyze the empirical data and validate the model. The findings of this

study reveal that: (1) reliability, assurance, and tangibles positively and significantly influence customer satisfaction; (2) empathy

positively and significantly influence customer loyalty in direct link; (3) customer satisfaction positively and significantly influence

customer loyalty; and (4) customer satisfaction fully mediates the influence of reliability, assurance, and tangibles on customer

loyalty. The findings of this research may help skin care clinic industry to understand the role of various service quality dimensions

for enhancing both customer satisfaction and loyalty.

Keywords: Service Quality Dimensions; Customer Satisfaction; Customer Loyalty; Skin Care Clinic Industry





The Influences of Bundling Strategy towards Purchase Decision for

Food and Beverages SMEs in Bandung

Mega Erlinaa*, Rendra Chaerudinb


Abstract

One of the main problem that many SMEs face is the marketing, many SMEs do not have the fund to do the marketing intensively.

Finding a marketing strategy which is cost efficient is an important activity for SMEs. Bundling strategy is one of the strategy that

is suitable for SMEs since bundling strategy can increase the revenue without spending more resources. The purpose of this research

is to see the influences of bundling strategy on purchase decision, and to find the factors affecting bundling strategy from customer

perspective. The expected result from this research is that bundling strategy give impact to purchase decision. The findings indicate

there is a correlation between bundling strategy and purchase decision. While the most dominant factor affecting bundling strategy,

is price. This research uses quantitative method, simple linear regression and descriptive analysis are made to analyze the data.

Keywords: Marketing; Bundling; Bundling Strategy; SMEs; Purchase Decision


E-mail addres: [email protected]




Analyzing Factors That Influence Customer Loyalty of Ride-Hailing

Application in Indonesia

Rafi Firmansyah Mustofaa*, Ira Fachirab


Abstract

The development of technology and information, especially internet, encourages the emergence of ride-hailing application

companies to Indonesia such as GO-Jek and Grab. The feature and promotion especially pricing strategy success to attract some

people to switch using ride-hailing application for daily activities rather than using other public transportation. Many ride-hailing

application companies went bankrupt and then it possible customer will back to conventional public transport. Ride-hailing

application companies need to find out factors that influence customer loyalty in using ride-hailing application thus it will be useful

to face the challenge from other public transportation especially if they do not have competitive advantage in pricing anymore.

This research has objectives to find out factors that influence customer loyalty of ride-hailing application in Indonesia and also to

find out the strongest factor that influence it. The researcher has conducted survey with online questionnaire as a tool to collect

data with the result total sample of 444 people, The researcher found that perceived value, satisfaction, emotional value, price value

for money, and performance value are positively influence loyalty while social value is not significant influence loyalty. Beside

that perceived value is the strongest variable that influence loyalty and emotional value is the strongest perceived value antecedent

that influence loyalty. The researcher also create some recommendation for ride-hailing application company thus these findings

and recommendation will be useful for ride-hailing application company.

Keywords: Ride-Hailing Application; Mobile Application; Customer Loyalty; Public Transportation in Indonesia





Identification of eWOM Content Towards Consumer Purchase

Decision In Bandung Start Up Coffee Shops

Ayesha Aulia Fachiraa*, Shimaditya Nuraenib


Abstract

The numbers of start up coffee shops in Bandung are growing. The coffee shops serve different taste of coffee. With various taste

and style offered by Bandung start up coffee shops, customers are likely accessing the information by evaluating the alternative

through eWOM (electronic word of mouth). There are social media, blogs and web forum as eWOM media. In order to take

purchase decision, customers conduct evaluation by considering the eWOM content. The objective of this research is to analyse

eWOM content that affect consumer purchase decision of Bandung start up coffee shop. This research also analysed the effect of

purchase intention as moderating variable between eWOM content and purchase decision. There are 376 questionnaire respondents

answer collected. The data gathered was analysed by using path analysis. The analysis reveals that eWOM content influence

Bandung start up coffee shop consumer purchase decision of through purchase intention. Beside that, this research has figure out

Instagram as most media used to access and receive information about Bandung start up coffee shop.

Keywords: Bandung Start Up Coffee Shop; eWOM Content; Purchase Decision; Purchase Intention





Consumer preference on user interface in mobile applications: case

study of online transportation applications Go-Jek and Grab in

Bandung

Dania Rahmah Aisyaha*, Budi Permadi Iskandarb

a,bSchool of Business and Management, Institut Teknologi Bandung, Jalan Ganesha 10, Bandung 40132, Indonesia

Abstract

Online transportation is one of a variety of service business sectors that utilize internet-based information systems to perform

operations on a daily basis. Mobile applications provide user experience which is considered a crucial feature in mobile application

development. It is necessary for companies using mobile applications as a platform to create a fluid user experience (UX) using a

user-centered approach development through their user interface (UI). Previous research has examined critical success factors

influencing the quality and effectiveness of designing a mobile application user interface and found that usability is the main factor

to be examined, however, it is not expected that usability alone is enough to properly explain consumer preferences. Many research

tends to strongly focus on aspects of usability thereby neglecting further research on design which is frequently examined in recent

years. Thus, this research will be examining both usability and design that will be elaborated into criteria and dimension based on

existing studies. Usability criteria examined are Navigation, Learnability, and Content. While as for Design, dimensions examined

are Color, Typography, Graphics, and Layout. To examine usability and design, this research will identify users’ opinions amongst

two most used online transportation service applications in Indonesia, Go-Jek and Grab using qualitative approach. Results of

coding show the appearance of additional criteria of usability including Performance, Personalization, Privacy and Security, and

Memorability. However, it is concluded that ‘Navigation’ and ‘Content’ as usability criteria and ‘Layout’ and ‘Color’ as design

dimensions has the most influence towards consumer preference. Navigation suggest that flows of ordering service to be structural

with direct gestures. Content suggest that it is important for applications to provide users with current and timely information

through the right model of notification system. Layout suggests applications to organize contents neatly to effectively provide users

with information needed. While Color are expected to be able to intrigued users appeal through choosing visually attractive colors

of user interface. Results also show the tendency of users preferring Go-Jek application to Grab application based on their

excellence in both usability criteria and design dimensions.

Keywords: User Interface (UI); User Experience; Consumer Preferences; Usability; Design





Creating Purchase Decision through Co-Branding in Creative

Industry

Rosa Reginaa*, Rendra Chaerudinb


Abstract

One of the biggest problems in MSMEs in Indonesia is able to read what the market needs and wants. There are many strategies to

scale up and increase sales of MSMEs in Indonesia. Collaboration strategy is one of way to increase companies’ value. One of the

strategies from collaboration is co-branding. The co-branding strategy could pursue customers’ purchase decision in order to

increase the company’s profit. The purpose of this research is to analyse the influences of co-branding on purchase decision, and

to find the factors affecting co-branding. Data analyzing were done using quantitative method, simple linear regression and

descriptive analysis. The result showed that co-branding has positive influence to the customer’s purchase decision with coefficient

of determination score 28,7%. There are 6 factor in co-branding that influence customer’s purchase decision, they are; adequate

brand awareness, positive customer’s judgement, unique association, favorable, duration and target market. According to the

ranking and desctriptive analysis, the factor of co-branding that gives biggest influence to customer’s purchase decision is favorable

with the score of 89% and 424.

Keywords: Co-Branding; Collaboration; Brand; Purchase Decision.





Implementation of Customer Integrated Marketing Communication

(CIMC) for Improving Marketing Function (Case Study:

“Manikan”)

Sang Ayu Made Diah Afsaria*, Reza Ashari Nasutionb

a,bSchool of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia

Abstract

The integrated marketing communication (IMC) approaches from a managerial perspective (inside-outside) cannot adapt with the

changed conditions on media and communication market and the changed on customer behaviour. IMC has to become customer-

centric in that could integrate its customers into its communication. There was a new IMC model with customer-centric approach

or known as Customer Integrated Marketing Communication (CIMC). CIMC approach based on customers’ real use of

communication messages in their own ecosystem for various information-gathering and decision-making reasons (communication-

in-use) The CIMC concept is expected to deliver company value proposition and after that could help company to reach sales

targets. The current research problem focuses on how to implement the CIMC concept for improving marketing function of brand

“Manikan”. This study will begin with consumer analysis to see the journey of customers purchase stage, the customers touch

points, the promotion channel effectiveness, and the information needed. The result shows the guideline for company to make a

new integrated marketing communication strategy that expected can engaged targeted customers by their communication channels

and content preferences.

Keywords: Integrated Marketing Communication (IMC); Customer Integrated Marketing Communication (CIMC); Customer Ecosystem;

Communication-in-use





A Preliminary Study on the Motivation of Funders in Crowdfunding

Teresia Debbya*, Mustika Sufiati Purwanegarab, Atik Aprianingsihc

a,b,cInstitut Teknologi Bandung, Bandung (40132), Indonesia

Abstract

Crowdfunding is a new and novel way to gather fund through the internet for small and medium size business from many investors.

It is different from the conventional method which capital is gained from the loans from some of the conventional financial

institutions like banks, angel investors, venture capitalists. Even though it is very popular, there are few numbers of researches have

been done on this topic, especially to identify the motivation behind someone when investing using this method. Some studies have

been done to explore motivations. In this study, an exploratory factor analysis used to analyze the sample of 68, collected from the

online questionnaire. Based on the results, there are five groups of motivations for investing in crowdfunding, they are enjoyment,

recognition, curiosity, perceived risk and altruism. The results of this study provided theoretical implications for future research

and practical implications for the success of crowdfunding platforms.

Keywords: Crowdfunding; Motivation; Funding






Analysis of the Effect of Perceived Graphicness of Indonesian

Graphic Warning Label on Smokers’ Intention to Quit Smoking

Rifeldo Meizaa*, Ira Fachirab

a,b School of Business and Management ITB

Abstract

According to World Health Organization (2013), the consumption rate of tobacco products in developed countries has declined, in

the other hand, in developing countries such as Indonesia, where smoking is considered as common thing, the production rate, as

well as the consumption rate of tobacco products were exponentially increasing during the past years, mainly due to the growing

of population. The data of World Health Organization (2008) stated that every six seconds, one person is killed due to cigarette

smoking, which means, by 2030, if the government does not take a significant action to counter this high smoking rate, the death

toll of cigarette smoking may increase to more than eight million souls.

As a form of moral responsibility to decrease consumption of cigarette products, the government of Indonesia, through Government

Regulation of Peraturan Pemerintah (PP) Nomor 109 Tahun 2012, and Regulation of Ministry of Health (Peraturan Menteri

Kesehatan) Nomor 28 Tahun 2013 has obliged tobacco products that are distributed in Indonesia to place the graphic warning label

in order to expose the consumers of tobacco products, especially cigarette products to negative health consequences that will occur

as a result to smoking behaviour, hoping that this mean will effectively reduce smoking rate in Indonesia. Therefore, understanding

how perceived graphicness of Indonesian graphic warning label affects Indonesian smokers intention to quit smoking is crucial in

order to asses the effectiveness of current government’s strategy to reduce smoking rate in Indonesia.

A quantitative approach is used in this applied research in order to gather information from 408 Indonesian smokers about the

impact of graphic warning labels in Indonesia to their intention to quit smoking.

Keywords: Attitude Towards Smoking; Graphic Warning Label; Intention to Quit Smoking; Smoking Status





Estimating Factors Influencing Apartment Price in Bandung -

Application of Hedonic Pricing Model

Shannon Dwiputri Chandraa*, Ahmad Danu Prasteyob

a,bSchool of Business and Management ITB, Jl. Ganesha no 10, Bandung, 40132, Indonesia

Abstract

Purpose – This paper aims to identify factors which have significant contributions towards apartments prices in Bandung and

furthermore explain how each factor affects the apartments prices.

Design/methodology/approach - Bandung, the capital city of West Java was selected as the object for this study. This study

includes 234 unit apartments in Bandung. Hedonic Pricing Model is used to define the variables used considering it is a very well-

known model to analyze property value and specifically used only for properties. MLR was performed to show how each factor

contributes to apartments price.

Findings - The results of this research provide an analysis of attributes which have significant contributions towards price. In the

result, it is explained that there are 5 attributes contribute significantly towards price. The findings also reveal how each attribute

affects the price specifically and comparison to earlier studies.

Research limitations/implications - This study provides useful insights and hints for both apartment sellers and potential buyers

in valuing the rationality of apartment price in Bandung.

Originality/value - This study can be said as one of a few studies to analyze apartment prices in Bandung using the hedonic pricing

model.

Keywords: Hedonic Pricing Model; Price; Affect; Attribute




Endorsement toward Celebrities’ Instagram that Affect Millennial

Behaviour: Attractiveness of Beauty Product Endorsement

Kenira Diva Maharani

Institut Teknologi Bandung, Jl. Ganesha No.10, Lb. Siliwangi, Coblong, Kota Bandung, Jawa Barat 40132 University of Hull, Cottingham Rd, Hull, United Kingdom HU6 7RX

Abstract

Endorsement in Instagram is currently becoming a new trend. There were many owners of well-known start-up businesses who

decided to collaborate with celebrities to promote the product on their instagram’s account. However, within the popularity of

celebrities and influencers’ endorsement, there are many endorsers who promote various product endorsements at the same time

on their Instagram. However, this paper aims to identify the changes of consumers’ behavior towards endorsement on instagram

from the business’s point of view. Additionally, this paper will also determine the attractiveness of endorsement in present time.

Within key models from prior researches, this paper will use those findings as a base to analyze and compare the current research’s

findings. The data contains a primary data, where the interview with several owners of beauty product businesses who are using

endorsement on Instagram is selected. Therefore, the result of analysis showed that Millennial were attracted to the endorsed

product when their celebrity gave a good review on it, which means that trustworthiness is the main key. Quality of product, quality

of picture, and quality of endorsers were also become necessary to be considered.

Keywords: Celebrity Endorsement; Millennial; Beauty Product; Trustworthiness; Attractiveness



The Perception Difference between Promotional Mix of Teh Pucuk

Harum and Frestea

Herren Calidaa*, Atik Aprianingsihb


Abstract

Teh Pucuk Harum and Frestea are Indonesian ready to drink tea brands that spent roughly around IDR 300 billion for advertising

in 2016. Based on the Top Brand Index (TBI), the two brands resulting in a different outcome since the TBI can be used to measure

the performance of a brand based on the purchase intention including the awareness toward the brand and its market share. Teh

Pucuk Harum able to perform exceptionally while Frestea came out with unremarkable result. Therefore, this research was intended

to resolve the difference between the promotional mix (advertising, sales promotion, public relation) of Teh Pucuk Harum and

Frestea. The data for this research was collected using quantitative approach through online questionnaire to 213 Indonesian

respondents. This study used paired comparison analysis to find the point difference between the two brands. The eventuality of

the study shows that the difference between the two brands’ promotional mix was in the sales promotion of their product where

Teh Pucuk Harum solely offer the sales promotion under their own brand name while Frestea offer them under the Coca-Cola

family brand.

Keywords: Promotional Mix; Paired Comparison; Advertising; Sales Promotion; Public Relation





Understanding the Factors Affecting the Customer Intention in

Using Mobile Instant Messaging (MIM): A Case Study of LINE

Corporation

Felicia Puspitasaria*, Prawira Fajarindra Belgiawanb


Abstract

LINE, a MIM application, becomes the third most widely used MIM application in Indonesia. Adapting the extended TAM theory,

the user intention to use mobile service has been proved to be significantly influenced by perceived usefulness, perceived ease of

use, self-expressiveness, perceived enjoyment and user attitude. Moreover, user attitude in using mobile service is significantly

determined by perceived usefulness, perceived ease of use, self-expressiveness, self-enjoyment and normative pressure. This

research is conducted to understand the predictor of user intention and user attitude toward LINE usage in order to determine the

method to make LINE the most widely used MIM application in Indonesia. The data is collected using online questionnaire to 222

adults in Bandung. After gathering the data, the reliability and validity are tested, which led by extraction by confirmatory factor

analysis using Bartlett score to construct the latent variable (factor). The data is analyzed using multiple linear regression and

ordinal logistic regression. The result shows significant relationship between perceived usefulness, perceived ease of use, self-

expressiveness and user attitude to use LINE toward the user intention in using LINE. Significant relationship also found between

perceived usefulness, perceived ease of use and self-enjoyment toward user attitude in using LINE.

Keywords: Mobile Instant Messaging; LINE; Customer Intention; Customer Attitude; Extended TAM Model





The Impact of Green Hotel Practices towards Customer Attitude,

Satisfaction, and Willingness to Pay Premium: The Case of Green

Hotel in Java, Indonesia

Anisa Fathir Ruswandia*, Atik Aprianingsihb

a,bInstitut Teknologi Bandung, Jl. Ganeca no. 10, Bandung 40123, Indonesia

Abstract

Tourism sector in Indonesia has been experiencing a constant growth in the past decade making it one of the country’s major

sources of income. This development however often corresponds with over-consumption of energy and resources which caused an

inconsiderable amount of hazardous waste. Since the hotel industry is the main sector of tourism industry, government has pushed

hotels to adopt sustainable practices in which created the concept of Green Hotel. Although hoteliers have tried to implement

different green strategies in their operational activities, these activities are often done despite the lack of research and understanding

on customer’s green attitude and behavior. This research is done to investigate customer’s attitude towards the eco-friendly

practices adopted by hotels and how it affect customer’s satisfaction. Furthermore, this research is also done to explore customer’s

willingness to pay premium for these practices. The results shows that Indonesian customers have a positive attitude towards hotel’s

eco-friendly practices, moreover they are satisfied and are willing to pay a little more for these hotels.

Keywords: Green Hotel; Customer Attitude; Customer Satisfaction; Willingness to Pay Premium

* Corresponding Author. Tel.: +628112390060




Impacts of Social Media Marketing Efforts towards Value Equity,

Relationship Equity, Brand Equity and Purchase Intention of

Accessible Luxury Fashion Products

Salsabilla Kintana*, Mustika Sufiati Purwanegarab


Abstract

In the light of a rising potential of luxury fashion products and the increasing number of social media users in the world including

Indonesia, a proliferation of social media has created a whole new era for luxury fashion brands. Social media has become a new

battlefield for accessible luxury fashion products to build and maintain relationships with customers. This study aims to investigate

and analyze the relationship of Social Media Marketing Efforts (SMME) by using entertainment, interaction, trendiness,

customization, and informativeness as dimensions of SMME. In order to measure impacts of social media marketing effects, value

equity, relationship equity, brand equity and purchase intention are used as predicting variables. In evaluating its impact on these

variables, informativeness and trendiness are found to affect more variables compared to another social media marketing efforts

dimensions. Informativeness has significant positive effects with four predicted variables while trendiness shows significant

positive effects with brand equity and purchase intention. Findings on this research will enable marketer of accessible luxury

fashion brands to create a more suitable strategy on social media to build and maintain a strong customer relationship. Keywords: Social media marketing efforts; fashion; accessible luxury fashion brands, value equity, relationship equity, brand equity, purchase

intention

* Corresponding Author.



Comparison of Efficiency of Instagram Ads and Facebook Ads

Before and After Ramadhan: The Case of KABOBS - Premium

Kebab in Bandung

Lana Tiara Avianaa*, Budi Permadi Iskandarb

a,bSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha no. 10, Bandung 40132, Indonesia

Abstract

Social media is an online platform that was seen by marketers as an opportunity to market their brands, to engage the existing

customers, and to reach more potential customers. Instagram and Facebook are the two of most popular for marketers to use to

market their brand, both social media also has their own tool for marketers to paid advertise in the app, called Instagram Ads and

Facebook Ads. To acknowledge which of the method is more efficient will help businesses lessen their wasted marketing cost in

doing effective strategy, hence the objective of the study. Literature review was done to analyze the theoretical background of this

research, and an experiment done in a food company called KABOBS – Premium Kebab to collect the data needed. The data will

then be analyzed to gain conclusion(s) and answer(s) to the research questions.

Keywords: Social Media Marketing; Efficiency; Instagram

* Corresponding Author.



Customer Relationship Management to Customer Value &

Customer Loyalty of Fixed Broadband

(Study Case on Fixed Broadband Company in Indonesia)

Erikson Sianipara*, Sucherlyb, Umi Kaltumc, Yevis Marty Oesmand

aDoctoral Program of Marketing Management at Padjajaran University, Bandung 40132, Indonesia b,c,dLecturer at Padjajaran University, Bandung 40132, Indonesia

Abstract

The increase of fixed broadband penetration can increase a country's economic growth. Indonesia fixed broadband usage density

still lags far behind other countries. This condition becomes a great opportunity for operators in marketing fixed broadband

products. The different offers and services of each fixed broadband operator in Indonesia will have an impact on the ease of

acquiring and maintaining customer loyalty levels. The unstable number of subscribers (unsubscribing / switch to other operator)

is increasing year by year.

This condition can be caused by customer value perceived by the customer is inferior because the management of customer

relationship management is less good. The method used is descriptive and explanatory. The unit of analysis is the last customer of

four broadband operators in Indonesia. Time horizon is cross-sectional, where the research is conducted simultaneously. The survey

data is collected from questionnaires to fixed broadband subscribers and through focus group discussions and interviews with

managers related to the object study. Data is analyzed descriptively and quantitatively, this research uses quantitative research

design using Structural Equation Modeling (SEM). The findings show that the effect of customer relationship management on

customer loyalty through customer value is significant.

Keywords: Customer Relationship Management; Customer Value; Customer Loyalty; Fixed Broadband

* Corresponding author. Tel.: +62 811-633-090




The Impact of Event Marketing to Attract Brand Awareness Fashion

Customers

Annissa Karni Rachmadhiana*, Rendra Chaerudinb


Abstract

The growth of Small Medium and Enterprises Business is one of the main keys to an economy’s vitality. SMEs are known to have

a major role in creating wealth, given their place in the economy. According to (Chugtai, 2014) SMEs business is growing rapidly

and have a big strategies role to develop the economic growth in a city. Fashion business is the one of the potential aspect that

Bandung’s have supported by availability of the raw material of products, social networking through the fashion community, and

also the human resources that develop the fashion industry. As time goes by, many ways are done by the company to promote their

products. The one of innovation that a company do to introduce product and create an awareness among the target market is by

event marketing strategy. Event marketing is an activity that have been planned and organized by a company with the intent to

introduce a brand of the company that have three critical elements that make the event marketing strategy success i.e. entertainment,

excitement and enterprise (Hoyle, 2002). The marketing event is an opportunity for the company to reach a bigger market and

establishing real and direct contact with consumers during events such as festivals, fairs, or sporting events, can produce a

memorable brand experience for everyone (Zarantonello, 2012). SME business can use this marketing strategy to increase their

brand awareness. The purpose of this paper focuses on analyse the effect of event marketing strategy to brand awareness customer

apparel industry in Bandung. This study will conduct in Bandung and the sample will consist of 100 young people limit on age 15-

30 years old that will select by a judgment sampling with respondents completing a five-point Likert scale close-ended

questionnaire. In this research, event marketing defines an independent variable and brand awareness defines as a dependent

variable. The simple linear regression method is used to analyze the impact of event marketing strategy to brand awareness. The

result shows that event marketing has a positive impact on brand awareness. Event marketing should be design well to make

memorable memory for the customer. This paper will be useful for marketers, business owner and especially for another party

involved in fashion SMEs to understand the impact event marketing and understand the importance of the event marketing in order

to attract brand awareness of customer. Hopefully, they can understand how to design the strategy of event marketing to attract

customer awareness, so that they can implement this event marketing strategy in their business.

Keywords: Event Marketing; Brand Awareness; Fashion Industry; Small Medium; Enterprise Business





The Influence of Consumer Ethnocentrism and Brand Equity toward

Brand Preference of Online Ride-Hailing Service among Millennials

in Bandung City

Reza Ashari Nasutiona*, Richard Harris Wahyudib


Abstract

Within the past three years, there was an innovation that leads to a transformation in transportation and technology known as online

ride-hailing. This innovation can integrate transportation and technology simultaneously to fulfill people’s needs in commuting.

Not surprising that in 2017, around 15 (fifteen) million Indonesia’s connected consumers were utilizing this service every week.

As a phenomenon that is consistently escalating, it is important to examine factors that are believed to influence the brand preference

in online ride-hailing services significantly. Seeing the different origin between Go-Jek as a local-based company (Indonesia) and

Grab foreign-based company (Singapore) and brand equity that related with brand appraisal and preference, the two factors that

believed as a significant influencer in this service preference are consumer ethnocentrism and overall brand equity. To examine so,

this study will use CETSCALE from Shimp and Sharma (1987) and Overall Brand Equity (OBE) from Yoo and Donthu (2001).

This study is conducted in generation Y seeing their existence as the primary user of internet and this services as well. The

questionnaire is distributed to 400 respondents and measured using statistic and quantitative approach. The finding of this research

reveals that only OBE has a significant and positive correlation with the local online ride-hailing brand preference. Whereas,

consumer ethnocentrism has a significant negative correlation but OBE has a significant positive correlation with the foreign online

ride-hailing brand preference. The millennials with high consumer ethnocentrism tendency also found prefer local-based rather

than foreign-based online ride-hailing services. Eventually, the implications and recommendations for future study and the online

ride-hailing service provider will be given as well.

Keywords: Brand Preference; Consumer Ethnocentrism; Millennials Generation; Online Ride-hailing; Overall Brand Equity.





What Factors that Influence Coffee Flavor: A Case of Coffee

Industry in Indonesia

Kartika Sarirahayua, Mustika Sufiati Purwanegarab, and Fitri Apriliantyc*

a,b,cSchool of Business and Management, Bandung Institute of Technology, Jl. Ganesha No.10, Bandung 40132, Indonesia

Abstract

To increase the coffee consumption in Indonesia, we need to know the pivotal element in coffee that can motivate them to buy

coffee products. Quality and uniqueness of the taste become one of the choices of coffee drinkers. Then find out factors that can

affect the taste and quality of coffee products become very important for coffee actors. This study using a qualitative approach to

know the factors that influence coffee product. There are six coffee shops that participate in this study. The result of this study

confirms most factors stated in the literature study to be the factors that influence coffee flavor. Additionally, the researchers found

that origin, processing, and level of roasting are the most pivotal element on the taste of coffee products. There are several studies

discussing about coffee, but limited paper discuss about coffee beans product.

Keywords: Coffee; Beans; Origin; Post Harvesting; Roasting

* Corresponding author. Tel.: 085715794122




The New Brand Positioning and Marketing Communication of

Brawijaya Clinic Buah Batu Bandung as Part Of The Improvement

Of Its Brand Relevance

Aninditya Christa Maharania*, Reza Ashari Nasutionb

a,b School of Business and Management, Institut Teknologi Bandung, Bandung 40132, Indonesia

Abstract

There is tight competition in the healthcare industry, the private-owned healthcare is facing the challenge of the existence of private-

owned or government-owned hospitals and clinics. The new strategy is needed to overcome this challenges. This research aimed

to propose the new positioning strategy and effective marketing communication by identifying factors and attributes that useful for

Brawijaya clinic. The brand audit is a tool to discover customer-based brand equity, it is consist of brand inventory and brand

exploratory. Brand audit is very useful to generate a new strategy in improving brand relevance and reaching the sales target. From

this research, Brawijaya was more focusing in promotion of USG 4D in their marketing communication and was not delivering

messages in building expected positioning to be one-stop healthcare specialized women and children. The proposing strategy in

positioning is by laddering the expected points-of-differences (PODs) and reacting by adding reassurance on the points-of-

difference (PODs) and points-of-parity (POPs). The content information should be appropriate to build the brand relevance in the

mind of customers and should be delivered with the suitable channels

Keyword: Brawijaya clinic Brand audit; Customer-based Brand Equity; Positioning; Marketing communication





Analysis of Factor Affecting Intention to Visit: In The Case of

Orchid Forest Lembang

Alifia Fardian Azzahraa*, Atik Aprianingsihb

a,bInstiitut Teknologi Bandung, Jl. Ganeca no. 10, Bandung 40123, Indonesia

Abstract

Orchid Forest is a tourist destination that is situated in Cikole, Bandung, presenting 34 hectares of pine forest owned by Perum

Perhutani. As Orchid Forest is now being used as “agent of recovery” for Perum Perhutani to recover their financial situation, it

becomes important to attract more visitors to visit Orchid Forest and attain the existing regular visitors. Intention to visit becomes

the most important measure for Orchid Forest as it is the main objective of the business; to generate revenue through the number

of people visiting the destination. To achieve this goal, this study helps to analyze factors affecting intention to visit Orchid Forest

in the perspective of pre-visitors. This study will assess to what extent do eWOM, visitor’s attitude, and destination image affects

intention to visit Orchid Forest.

A quantitative study was performed on 259 respondents living in Bandung or Jabodetabek area. The result of the study indicates

that eWOM affects visitor’s attitude and perceived destination image from pre-visitors. Visitor’s attitude and perceived destination

image are both affect intention to visit significantly.

Keywords: Perum Perhutani; Orchid Forest; Ewom; Attitude; Destination Image; Intention To Visit

* Corresponding Author. Tel.: +6281802056633




Investigating the Effect of Celebrity Endorser’s Credibility on

Purchase Intention of Local Fashion Brand in Instagram (The

Mediating role of attitude toward advertisement)

Dewa Gede Dawan Adi Bagaskaraa*, Prawira Fajarindra Belgiawanb


Abstract

Local fashion brand in Indonesia has been growing rapidly due to the enthusiasm of Indonesian young consumer in searching for

a local fashion brand online especially in Instagram. Therefore, it is seen as a promising business since it has a large number of

potential consumers. Plenty number of local fashion brands utilize Instagram as their marketing channel that creates a tight

competition among local fashion brands in Instagram. To survive in this competitive market, celebrity endorsement practice is

deemed as one the solution in advertising strategy on Instagram. Celebrity is perceived more attractive and persuasive. However,

choosing the right celebrity to endorse local fashion brands which may lead to purchase intention is still questionable. This research

investigates the effect of celebrity credibility on purchase intention of local fashion brand in Instagram by examining the mediating

role of attitude toward advertisement between celebrity credibility and purchase intention. The effect of celebrity credibility will

be measured by using source credibility (expertise and trustworthiness) and source attractiveness. The data is collected by spreading

a survey through online questionnaire. There are 300 valid respondents. To analyze the data, this research uses PLS-SEM. Finding

shows that attractiveness significantly affects attitude toward advertisement and purchase intention of local fashion brand.

Meanwhile, purchase intention is not influenced by expertise and trustworthiness. Expertise, trustworthiness, and attractiveness of

celebrity can create a positive attitude toward advertisement of local fashion brand.

Keywords: Local fashion; Celebrity endorsement; Instagram; PLS-SEM; Expertise; Credibility; Attractiveness; Purchase Intention; Attitude

toward advertisement

* Corresponding author. Tel.:+628113890988




Affecting Factors of Customer Value Proposition toward Purchase

Intention on Bag and Scarf Product: Hijaber Perspective

Puspita Serunia*, Leo Aldiantob


Abstract

Hijab has been an enormous phenomenon in Indonesia for several years, which around 10 percent of the population in Indonesia

are hijabers. Muslim market becomes a huge opportunity for some businesses, especially for fashion businesses. However, as hijab

has been a primary needs for hijabers, their attitude towards hijab has distinctively different compared to other fashion items.

Therefore, this research is conducted to acknowledge which factors affect hijaber’s purchase intention towards two different kind

of things. This research examines the impact of Customer Value Proposition factors on hijaber’s Purchase Intention. Data obtained

by purposive sampling method with requirements for women that are using hijab in daily basis, 15 years old and above, and

currently living in Jabodatabek and Bandung area. Multiple Linear Regression Analysis is also used to process the data. As a result,

the overall Customer Value Proposition influences hijaber’s Purchase Intention simultaneously, with economical and emotional

value of product have a significant impact on customer’s purchase intention.

Keywords: Hijaber; Bag; Scarf; Customer Value Proposition; Purchase Intention




A Study of Electronic Money Card in Transportation System in

Indonesia

Muhammad Irfan Raisa*, Fitri Apriliantyb


Abstract

The object of this study is to analyse the intention to use electronic money card in transportation system through four dimensions

which is cashless Characteristics, Individual Differences, Adoption Readiness and Perceived Credibility Risk. The author use the

research model based on TAM (Technology Acceptance Model). The 180 respondent data gathered by the survey methods through

convenience and non-probability sampling. The study suggests that the main reason for the society to use electronic money card in

transportation systems are the facilitating conditions and perceived usefulness. While the perceived usefulness is significantly

affected by the compatibility and convenience. It will bring a big impact toward the increasing use of electronic money card if the

company focused on that variables for markets their products. Furthermore, the facilitating conditions can be increased by adding

more infrastructure and more effective, integrated, and efficient system to also increase the convenience and compatibility of using

the electronic money card. Perceived Usefulness also can be increased by adding more promotion, discount, and partnering

merchants that can be used through electronic money card. This study can assist the business owner what to focus their business

model to efficiently exert appropriate investment and effort in the transportation system.

Keywords: Cashless Payment, Electronic Money Card; Technological Acceptance Model (TAM); Transportation System; adoption




Assessing Service Quality Using Combination of Servperf and

Importance-Performance Analysis: A Research Study at Skin Care

Unit Klinik Satelit 3 Bontang

Yustinus Heri Hermawana*, Herry Hudrasyahb

a,bInstitut Teknologi Bandung, Jalan Ganesha No 10, Bandung 4132, Indonesia

Abstract

Skin Care Unit (SCU) of Klinik Satelit 3 is one of skin care services exist in Bontang. It was established as a new strategic

breakthrough in expanding healthcare business in the late of 2014. At the beginning, it was intended by the founders to create a

general clinic in one location with several health care services provided such as: general dentistry service, vaccine service,

midwifery and birth examination service, Medical Check Up (MCU) service and aesthetic (skin care) service. After three years of

operation, revenue from SCU was experiencing a downward trend and accompanied by the decreasing of patient visit during 2015

- 2017. The focus of the research is to assess service quality of SCU by means of SERVPERF method developed by Cronin &

Taylor (1992) combined with Importance-Performance Analysis (IPA) developed by Martilla & James (1977). It was found that

the average service quality given by SCU is 2.68 out of 4.00, which indicates lack of capability to provide best service for its

customers. The result also shows that total of five item statements are located in Quadrant I: Concentrate Here, which low in

performance but have high importance level, and are considered as top priority for improving service quality by management of

SCU.

Keywords: Importance-Performance Analysis; service quality; SERVPERF; skincare





The Affect of Marketing Mix and National Culture on Consumer

Buying Intention of Music Product: A Case Study of Indonesia and

India Consumers

Teddy Oswaria, Reni Diah Kusumawatib*, Tristyanti Yusnitasaric, Vijay Kumar Shuklad

a,b,cGunadarma University, Jl. Margonda Raya No. 100, Depok 16424, Indonesia dArmy Institute of Management and Technology, Plot No. M-1, Pocket P-5, Greator NOIDA , Gautam Budh Nagar – 201306, UP, India

Abstract

Information technology is growing rapidly encouraging the free market where every businessman can sell their products to a wider

market share, and this provides benefits to consumers because the availability of products with more varied types and prices. The

development of information technology is forcing businessman to be able to establish the right marketing strategy in order to attract

consumers to buy products offered by the company. This applies also to music products, where the music industry must face tougher

competition in convincing consumers to consume the music products offered by each music industry. This study aims to determine

the effect of marketing mix and culture on consumer buying intention on music product with 106 respondents from Indonesia and

106 respondents from India, then conducted a different test to determine there are whether or not differences in consumer behavior

in Indonesia and in India.

Keywords: Buying Intention; Culture; Marketing Mix

* Corresponding author. Tel.: +62-8128228179.




Switching Behavior Y Generation from Conventional Television to

YouTube

Zhaniar Rossalia Mawardhania, Badri Munir Sukocob, Zuyyinna Choirunnisac*

a,b,cDepartment of Management, Airlangga University

Abstract

Conventional media such as television are beginning to be abandoned slowly. Many people have now switched watching television

or listening to radio through conventional devices and streaming services like Netflix, Hulu, mobile devices, and web services such

as YouTube. This study was conducted to understand the reason why Y generation in Surabaya was switching from conventional

television to YouTube. This study used qualitative method that uses in-depth interviews by asking some questions as data

techniques, using coding, and triangulator. This study involves informants as many as 32 people with 2 people as a triangulator.

The results show that Y generation has rarely spent time watching conventional television and would rather spend time watching

YouTube. There are three factors that cause the Y generation to move from television to YouTube, namely the existence of push

factors, pull factors, and mooring factors. Push factors includes the dissatisfaction of television services, distrust, and unpractical

services. Pull factor such as quality, trust, and practical provided by YouTube. And mooring factor are switching cost and variety

seeking. Although generation Y says they've rarely watched television and prefer watching YouTube, but television is not really

abandoned by them. Some television programs such as news and sports broadcasting still make television the main choice of

generation Y to watch the programs.

Keywords: Y generation, TV, YouTube, switching behavior, push factor, pull factor, mooring factor.



OPERATIONS



The Adoption of Halal Logistic among Industries in Indonesia: The

Intention Driver towards Service Innovation

Sherly Artaditaa*, Yuliani Dwi Lestarib

a,b School of Business and Management (SBM), Jl. Ganesha No.10, Lb. Siliwangi, Coblong, Kota Bandung, Jawa Barat, 40132

Abstract

The growing of halal market increased the need of halal logistics service among Indonesian firm to produce halal product from

upstream and downstream. Adopting new system is one form of innovation. The main determinant of innovation is perspective of

organizational culture, which is driven by behaviour. In general, behaviour is affected by intention. Therefore, the aim of this study

is to understand the factors that influence the intention to adopt halal logistics system among Indonesian industry (food, cosmetics,

pharmaceutical, etc.). This research employed a quantitative research design using survey research method. All question will use 5-

point Likerts scale and the data will analyze using partial least square (PLS). The result show that the main factor that influences

the intention among industry in Indonesia to adopt Halal concept in their logistics activity is organization factor, which is covering

financial, Halal awareness, and human resource inside the firm.

Keyword: Halal logistics; Halal; logistics; Indonesia




The Conceptual Framework of Horizontal Collaborative

Transportation Management in Indonesia Trucking Industry

Dania Sitadewia*, Liane Okdinawatib, Desy Anisya Farmaciawatyc

a,b,cSchool of Business & Management, Institute of Technology Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

Collaborative Transportation Management (CTM) aims to reduce inefficiency, avoid logistics bottlenecks and provide a mutual

outcome to all parties through sharing of information and resources such as common transportation mode between two carriers on

the same level. Collaboration between carriers or Horizontal CTM between truck carriers in Indonesia currently hasn't much been

discussed or developed. Thus this paper proposed a conceptual framework for horizontal collaboration among truck freight carriers

based on two case studies. This model will help to improve understanding on the behavioral aspect study of carriers’ decision to

collaborate with other carriers in the same level in the trucking industry. The behavioral aspects are limited to key enablers to

human side of CTM and operational aspects are limited to the hierarchical decision-making levels (strategic, tactical, and

operational). The conceptual framework presented in this paper proposed that key enablers in the human side of CTM will assist

carrier in selecting other carriers as collaboration partner on the horizontal CTM level. The outcome of collaboration will be resulted

into an increase or decrease of trust which is relevant for the continual of the collaboration.

Keywords: Collaborative Transportation Management (CTM); Horizontal Collaboration; Behavioural Approach




Material Requirements Planning Method in Improving Production

Planning in Fashion Company

Cindy Harpina*, Desy Anisya Farmaciawatyb

a,bSchool of Business and Management Institute Technology Bandung

Abstract

As fashion industry growth rapidly, REYN came as one of fashion industry that focused on women fashion bag, located in Bandung,

Indonesia. As one of fashion industry, REYN also faced so many problems in their process. In operation, REYN currently faced

discontinuity of raw material purchasing with the production target which caused by the absence of mature production schedule.

Accordingly, this research was aimed to solve this problem by the Material Requirements Planning (MRP) method which purposed

to generate the mature production planning and scheduling. To forecast the demand, researcher will use qualitative data collection

which is jury of executive method, collected by depth-interview. Before analysis, researcher will also complete the Bill of Material

(BOM), lead time, and Master Production Scheduling (MPS). The data analyses will be the comparison of lot-sizing method such

as Lot-for-Lot, Economic Order Quantity (EOQ), and Periodic Order Quantity (POQ) to find the most efficient one. The result of

this research is the implementation of MRP method for fashion company, which is REYN company by using Lot-for-Lot as the

lot-sizing method. Moreover, this study can be the references for other fashion industry to generate their production planning and

scheduling.

Keywords: Material Requirements Planning; Fashion Industry; Production Schedule; Inventory Management





Game Theoretic approach in Fleet Performance-Based Maintenance

Contracts

H. Husniaha*, Andrianab, A. Sholahuddinc, A. K. Supriatnad, and B. P. Iskandare

aDepartment of Industrial Engineering, Langlangbuana University, Karapitan 116, Bandung, 40261, Indonesia bDepartment of Electronic Engineering, Langlangbuana University, Karapitan 116, Bandung, 40261, Indonesia cDepartment of Computer Engineering, Padjadjaran University, Jatinangor km 21, Sumedang, 45363, Indonesia

dDepartment of Mathematics, Padjadjaran University, Jatinangor km 21, Sumedang, 45363, Indonesia eDepartment of Industrial Engineering, Bandung Institute of Technology, Ganesha 10, Bandung, 40132, Indonesia

Abstract

A fleet performance-based maintenance service contract (PB-MSC) is a maintenance service from the original equipment

manufacturer (OEM) or service provider offers to a company who owns and uses a number of truck or fleet to support its business

processes. The trucks are sold with two-dimensional warranty (e. g. for maximum 3 years or 150,000 km) bundled with preventive

maintenance (PM) as one package in the warranty. After the warranty ceases, the company is fully responsible to perform

maintenance actions for the fleet. To sustain high performance of the fleet, the company usually purchases the maintenance services

from the OEM or service provider. Here we proposed a PB-MSC to motivate the OEM or the service provider to increase the fleet’s

performance beyond the target. We consider two options of PB-MSC offered by the OEM to the owner of the trucks and compared

the results by a not buying option. We obtain the optimal pricing structure also the optimal number of server as the optimal strategy

for the agent and the optimal option for the owner is obtained through a Stackelberg game formulation in which the OEM or agent

acts as a leader and the owner acts as a follower. We give numerical examples to show the optimal number of fleet and server for

the OEM and the optimal strategy for the owner.

Keywords: Fleet Maintenance Contract; Two-Dimensional Warranty; Non-Cooperative Games; Expected Profit Maximization




Designing Strategic Logistic Vendor Development to Increase Sales

Satisfaction Index (SSI) at PT. Toyota-Astra Motor

Yopi Hirmawana*, Milind Gadreb

a,bGraha Irama Building Lt. 12, Jl. H.R. Rasuna Said Kav. 1-2 Jakarta 12950, Indonesia

Abstract

The ASEAN automotive market has been enjoying high performance levels and grew almost constantly in the recent decades

affected by positive growth of the population and increase of middle-class income and affluent customers. In Indonesia, automotive

industry also enjoying the positive trends in the last decade and believed will continue to grow due to car ownership ratio relatively

low, only 4% in 2015, compare to others country in the region. The grow will also supported by the promising macroeconomic

condition in the future. In Indonesia, the biggest automotive brand is Toyota in term of market share. Under PT. Toyota-Astra

Motor (TAM), a sole agent and distributor, this brand become superior player in Indonesia. In 2016, Toyota gained 35% market

share. Despite gained significant market share in 2016, however, J.D Power Sales Satisfaction Index (SSI) achievement is below

target. SSI is level of customer’s satisfaction in the new car purchasing process, including searching process, visiting the showroom,

purchasing the car until obtaining the new car. SSI achievement score will determine the loyalty and advocacy of customer in

purchasing certain brand. Therefore, the impact of SSI achievement on sales performance and market share is obvious. Based on

J.D Power, the biggest factors determining SSI score is Delivery Process & Timing. Function in the company which has big

contribution in this factor is Vehicle Logistic Division (VLD), the function that has responsibility in physical distribution process

of the car. In 2016, delivery achievement of VLD is below target, includes low Actual Time Arrival (ATA) compliance and high

defect ratio. This low performance caused by increase of transportation mode handled by VLD, not complete KPI for all

transportation mode, un-proper reward and punishment system, no sharing knowledge from TAM to vendors to solve operation

problem, lack of driver’s knowledge, lack of supervisor from TAM in improvement activity, and no common goal between TAM

& vendors. This research found that the proper solution for this problem is applying Strategic Logistic Vendor Development. The

development process includes establish new performance measurement system (KPI), apply performance based volume sharing,

performance enhancement trough (Plan-Do-Check-Action) PDCA scheme, conduct regular vendor audit program, logistic contest,

logistic campaign, Kyoryoku Kai activity, and regularly conduct regular annual meeting with vendors.

Keywords: Logistic Vendor; Sales Satisfaction Index (SSI); Strategic Development; Vendor Development

* Corresponding author. Tel.: +6281803698426.




Implementation of World Class Maintenace in PT Krakatau Daya

Listrik in Order to Increase Electrical Power Reliability Supply to

Consumers

Ermawantoa*, Adirizal Nizarb

a,b School of Business and Management, Institut Teknologi Bandung, Indonesia

Abstract

PT Krakatau Daya Listrik (PT KDL) engaged in power generation and transmission and distribution in Krakatau Industrial Estate

Cilegon area since 1978. Since 2015 PT KDL has operated a new 120 MW Combine Cycle Power Plant. The number of problems

faced such as the age of old equipment, the low reliability of electricity supply, the company's revenue decreased, demand

decreased, and the index of customer satisfaction also decreased to be the problems that must be resolved soon. The root cause of

the problem is sought by mind mapping method by interviewing various respondents representing all stakeholders plus the

company's performance data for the last 5 years by comparing with the existing standard values. The solution of the problem is PT

KDL needs to make management changes by applying World Class Maintenance Management standard and Total Productive

Maintenance where the improvement of all problems above must involve all divisions in PT KDL not only in maintenance division.

Keywords: Reliability of power supply; Mind Mapping; World Class Maintenance Management; Total Productive Maintenance





Operations Strategy for Decreasing Stock Takinng Discrepancy in

PT.Akashi Wahana Indonesia

Aditya Rahmansyah Gunawana*,Mursyid Hasan Basrrb


Abstract

PT. Akashi Wahana Indonesia in one of automotive parts manufacturing company in Indonesia, especially for transmission and

steering gear. Stock op-name or stock taking Is the event or activity that counting the amount of inventory in the factory and as the

instrument to make sure that there is no discrepancy between actual stock in the warehouse and actual stock on database.

Management of PT. Akashi Wahana Indonesia targets zero discrepancy between actual stock and database although in reality there

is an average of about 200 million rupiahs discrepancy each month.

There are several aspects that can cause inventory inaccuracies such as untidy of warehouse and storage area, member's lack of

knowledge and skills, unreliable production facility that resulting in high stock level, unclassified inventory, and uncontrolled

project management. So it needs a deeper analysis and improvement on some systems related to inventory management. The

research was conducted to be able to make improvements on several aspects that have relevance to inventory with the aim to

decrease the inventory data discrepancy on stock taking by using the Theory of Constraint (TOC) thinking process approach.

Based on observation result using Current Reality Tree (CRT), there are eight things to do improvement, such as 5S in inventory

storage, inventory level adjustment in some areas, communication system with supplier, improvement related to reliability of

production facility, effective method for change product model, inventory classification, project management system, and also

training system. All of the system improvement above are targeted to reduce 50% of current discrepancy level and expected to be

finish on March 2018.

Keywords: Automotive; Stock Taking; Inventory; Current Reality Tree





Cicendo Eye Hospital location analysis

Nanda Akmaliaa*, Mursyid Hasan Basrib, Aldiana Halimc

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl.Ganesha No.10, Bandung, 40132, Indonesia cPMN RS Mata Cicendo, Jl.Cicendo No.4, Bandung, 40117, Indonesia

Abstract

The eye is one of the important organs that strongly supports human life. It is very important for a country to provide a good eye

health service for its people. In West Java, Indonesia, the high number of blindness prevalence reached 2.8% and become one of

the big problems in the health sector. There is a national eye center located in Bandung city which acts as a tertiary special hospital,

named Cicendo Eye Hospital. As a national hospital, it should be able to handle the eye patients that can be measured by

ophthalmologist availability, facilities availability, and adequate building space. However, the hospital management faced a

problem about the lack of capacity in serving patients and inadequate parking space. Moreover, Indonesia also faced the problem

about the unreachable target of cataract surgery. Those problems made the Cicendo Eye Hospital needs to develop the building

space. However, because the existing location could no longer be expanded, a new location needs to be searched. In this paper, the

location determination was conducted using Greenfield analysis, AHP method, and factor rating method. The result showed that

the Ngamprah sub-district in Bandung Barat Regency is the most recommended location for the new eye hospital.

Keywords: Location Determination; Greenfield Analysis; AHP; Factor Rating; Eye Hospital





Inventory Management Analysis at Zainab Mother and Child

Hospital

Muhammad Daniala Syuhadaa*, Mursyid Hasan Basrib


Abstract

An inventory management policy provides the business an ability to maintain and control the goods that need to be stocked. The

policy objective is to make clear policy in ordering quantity, the timing of the purchase order, and controlling the items that ordered.

In doing business in VUCA era, the company needs to apply safety inventory policy to satisfy the demand of the customer

meanwhile the demand itself is uncertain.

Continuous review policy is most appropriate when the inventory can be reviewed continuously and placed an order quickly. This

policy usually needs computerized inventory system to be implemented appropriately. For Zainab Mother and Child Hospital

business situation the suitable model is the continuous review policy, because Zainab Mother and Child Hospital already use

Hospital Information System to monitoring the medicine inventory and the purchase order also could be done within an hour.

Based on the analysis result, the implementation of continuous review inventory policy in Zainab Mother and Child Hospital could

reduce the total purchasing budget, total last inventory stock, and total average inventory as much as 54%, 45%, and 25%

respectively.

Keywords: Continuous Review Inventory Policy; Hospital; Inventory Management




Supply Chain Risk-Based Analysis on Vendor Managed Inventory

(VMI) in Indonesian Aircraft Manufacturing Company

Evyta Septriani Rosalinaa*, and Nur Budi Mulyonob

a,bMaster of Business and Administration, SBM ITB, Jl. Gelap Nyawang No.1, Bandung, 40132, Indonesia

Abstract

Indonesian Aerospace (IAe) (Indonesian: PT. Dirgantara Indonesia (DI)) is an Indonesian aerospace company involved in aircraft

design and the development and manufacture of civilian and military regional commuter aircraft. Since the aviation industry has

been growing steadily in commercial sector, PT DI is also in run to produce new aircraft that is going to be marketed in commercial

market. N219 is a propeller type of aircraft that is planned to compete in commercial market. Since its going to be marketed in a

different market than PT DI current market, a change in supply chain strategy would take place, including the implementation of

Vendor Managed Inventory (VMI). Risk-based analysis is used in this research to generate a reference that could be used in order

to design and implement VMI effectively. Literature studies and benchmarking were used as a tool to identify the risks. These

identified risks were then scored by expert judgment method then ranked by using Failure Mode Effect Analysis (FMEA) to identify

risks that come from the implementation of existing strategy. Risk mapping was also involved to see whether the risks could be

shifted after implementing the possible treatment. VMI was proven to be able to shift the risks from existing strategy. The result of

this research suggests that there is collaboration of strategy that could be used in order to reduce the risks that come for VMI so PT

DI could design a more effective and less risky VMI such as Collaborative Planning, Forecasting and Replenishment (CPFR), Time

Series and Linear Regression Forecasting Method, 3PL with Supply Hubs, and Supply Contract.

Keywords: Risk Management; Vendor Managed Inventory; FMEA; Benchmarking; CPFR; Time Series Forecasting; Linear Regression

Forecasting; 3PL; Supply Hubs; Supply Contract



https://en.wikipedia.org/wiki/Indonesian_language



Halal Packaged of Foreign Product that Influence the Purchase

Intention

Berliana Rizki Arlisaa*, Ratih Hendayania,b, Yuvaraj Ganesanb

aSchool of Economics and Business, Telkom University Bandung 40257, Indonesia bGraduate School of Business Universiti Sains Malaysia, 11800, Penang, Malaysia

Abstract

Halal has become the main conversation in the business world. now halal has grown rapidly on halal packaged food produced by

the whole country. although many studies have discussed halal food packaging that affects purchase intention, but there is no

research that discusses the effect of between halal awareness, Islamic brand, and product ingredients to muslim purchase intention

in emperically. Therefore, this study discusses the purchasing decisions of Muslim people in Indonesia about halal packaged food

produced by producers of foreign origin that are influenced by several factors. Halal awareness, islamic brand, and product

ingredients become pre-determined factors in purchasing decisions of halal packaged food. questionnaires were distributed

randomly to 107 Muslim respondents in Indonesia. The hypotheses which were tested using Pearson Correlation have revealed that

Halal awareness and islamic brand have significantly influenced Muslim’s intention to buy Halal packaged food that are produced

by foreign manufacturers. And the result of F-test in this research show that halal awareness, islamic brand, and product ingredients

affected the purchase intention simultaneous. It is expected that the findings of this research will help overseas manufacturers

certify halal packaging food with halal labeling and pay more attention to packing of halal packaged foods.

Keywords: Halal Packaged Food; Halal Awareness; Islamic Brand; Product Ingredients




Queuing Performance Analysis of E-Toll Implementation in

Indonesia: A Case Study in PT. Jasa Marga Branch Purbaleunyi

Claudia Natasya Tambunana*, Yuanita Handayatib

a,bInstitut Teknologi Bandung, Jl. Ganesha No 10 Bandung 40132, Indoniesia

Abstract

In this modern era, fast transaction time is one of the factors desired by toll road users when passing through toll gates. To meet

this factor, PT Jasa Marga as Highway Corporation in Indonesia replaced their payment system from manual to electronic payment

to reduce transaction time. An essential factor is by measuring the performance by using queuing theory method. However, PT.

Jasa Marga has not analyzed the effect of electronic payment implementation, especially on queuing performance. Therefore, this

paper present analysis of queue performance from a case study in Pasteur toll Exit gate that operated by PT. Jasa Marga branch

Purbaleunyi to find out how effective the improvement happened after the implementation of electronic payment in the Pasteur

toll. The method used is Multi-Server Queuing Model or (M / M / s) queuing. From the calculation by using (M/M/s) formula, the

queuing performance is getting better after the implementation of E-toll, it is clearly seen from the average service time that

significantly increased from around 5 seconds to 2.5 seconds on average. It also impacts the server utilization that decreases and

probability the system will be empty increase.

Keywords: E-Toll; Multi-Channel Queuing Model; Performance Measure; Jasa Marga






Reducing Company’s Logistic Cost by Optimizing Transportation

Cost In Bandung City – A Case Study Of 8 Lima Logistik

Edwin Prajna Adistanaa*, Desy Anisya Farmaciawatyb

a,bSchool of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No 10, Bandung, 40132, Indonesia

Abstract

One of the most effective way to reduce logistic cost is by optimizing transportation cost as it impacts about 50% of the logistic

cost. As a start-up company that provides distribution logistic services in Bandung Area to 7 tenants, 8 Lima Logistik has many

constraints due to the limited resources, such as: amount of the vehicle, vehicle’s capacity, delivery time per week, Bandung’s

traffic condition, and the random date of order from the existing customers. This research aims to find delivery route with the

lowest cost for 8 Lima Logistik with the company’s constraints in order to optimize its transportation cost. The authors will gather

the primary data by conducting interview to the company and observing the company’s existing delivery route’s policy. Secondary

data was collected from google maps to find the approximate distance between each tenant. The gathered data will be analyzed

using Genetic Algorithm and Nearest Neighbor Procedure method. The Result shows that Genetic Algorithm method gives lower

transportation cost compared with Nearest Neighbor Procedure’s. This result could also be used by the other company that has

similar problem with 8 Lima Logistik.

Keywords: ATSP; Asymetric Traveling Salesman Problem; NNP; Nearest Neighbor Procedure; Genetic Algorithm ; Traveling Salesman

Problem; TSP




Implementation of Single Order Inventory Model in KLP Concept

Store

Kenny Lisanputeraa*, Gatot Yudokob


Abstract

Inventory management is very important to help company to manage stock availability. KLP is a company that sell perishable items

and purchasing made once per period. However, KLP often suffer understock and overstock situation. There’s no objective

calculation from inventory management at current condition since all the purchasing made by owner’s intuition, so the owner may

purchase too few or many quantity orders that cause understock and overstock. Since the demand is unknown, inventory model

that will be used is Single Order Inventory Model. Before using the model, ABC analysis used to choose the products which give

big contribution for KLP. This inventory model generates the optimum quantity order for each item for certain cycle service level

to maximize expected profit with consideration of expected understock and overstock. Single order model is suitable for this

problem because there’s no following order of same item since the company sold perishable item.

Keywords: Single Order Model; Inventory Management; Product Availability; Expected Understock; Expected Overstock; Expected Profit




Product Lifecycle Management Perspective in Creating Company

Value, a Study of Strategic Operation Management in Engine MRO

Indonesia

Iwan Krisnanto

School of Business and Management, Institut Teknologi Bandung, Indonesia

Abstract

Engine MRO (Maintenance Repair and Overhaul) has changed in decades to be part of the OEM’s (Original Equipment

Manufacturer) profit center. Independent engine MRO particularly in Indonesia has apparently faced high competition since OEM

has established facility, resources and supply chain on its MRO. Engine MRO shall strictly comply with civilian regulation under

Indonesian CASR, US Federal FAA or European EASA certification. The regulation requires standard internal resources capability,

while the competition requires MRO to become more efficient, integrate & traceable business process. Actually, traceability,

integrated business process and requirement compliance are in line with PLM – Product Lifecycle Management substance practices.

This research is to analyze implementation of the PLM key substances as one of the engine MRO strategic operation solution. The

methodology adopts qualitative research method where the data is collected by interview from intermediate to high level

management of PT. Nusantara Turbin & Propulsi (PT. NTP), Bandung. The result shows that there is strong needs of PLM

substance implementation since the company has to link and integrate people competency, facilities, repair processes, process of

control and customer satisfaction goal. The implementation and recommendation is to obtain transformation readiness of PT. NTP

towards as a new MRO business model on its opportunity. Keywords: PLM; Lifespan; Full Control Data; Transformation Readiness; Shift the Strategy



Gap Analysis between Supply and Demand in Tertiary Eye Care

Facility, National Eye Centre, Cicendo Eye Hospital Bandung

Farhan Kusniadi Putraa*, Dr. Mursyid Hasan Basrib, Syumartic

a,bSBM-ITB, Jl. Ganesha No.10, Bandung 40132, Indonesia cCicendo Eye Hospital, Jl. Cicendo No.4, Bandung 40117, Indonesia.

Abstract

As the National Eye Centre, Cicendo Eye Hospital has a strategic role to contribute in fulfilling the demand of top level in hierarchy

of healthcare facility which is tertiary eye care in Indonesia. Currently, the hospital is in overcapacity for outpatient and inpatient

eye care. To solve the issue, gap analysis between supply and demand in the hospital is conducted as the part of expansion plan

until year 2030.

Gap analysis are using; the population projection to 2030, proportion of population in West Java, Rapid Assessment of Avoidable

Blindness (RAAB) 2014, and Ringkasan Kesehatan Nasional (Riskesdas) 2013 are used to determine the prevalence of visual

impairment and number of eye diseases. Number of ophthalmologist, capability per day, and number of beds are in supply sides.

The result of this research is the number of ophthalmologist and number of beds needed for year 2030. Using market share 40%, a

gap of 271.446 outpatient visit are covered by additional 45 ophthalmologist. For inpatient eye care, using BOR 60%, there will be

19.951 inpatient are covered by additional 63 beds. These results will be implemented for expansion plan in “Cicendo 2’ that will

close the gap between supply and demand until year 2030.

Keywords: Supply; Demand; Ophthalmologist; Beds; Gap analysis; RAAB




Analysis of Queuing System at Teller Bank Rakyat Indonesia

Cengkareng Timur Unit Office

Khitah Wirapradanaa*, Akbar Adhiutamab

a,bSchool of Business and Management Institut Teknologi Bandung, Jln Ganesa no. 10, Bandung. 40132, West Java, Indonesia

Abstract

This study aims to analyze the effectiveness of queuing systems in Teller Bank Rakyat Indonesia Cengkareng Timur Unit Office.

As for the background in this research is long queuing line that can be seen in the waiting room, where people can almost fill the

entire room. This concerns the convenience of customers and it can lower customer satisfaction. This research was conducted for

10 days during March until May 2018 on weekdays, from 08.00 until 15.00. The sample is 40 first customers each day, and

researcher gathered data about duration of service time and waiting time, numbers of teller that available to handle the customers,

and numbers of customer served in units per time. The data then processed by Microsoft Excel 2007, and also calculated using

Queuing Model B formula, so researcher can give appropriate recommendations to Bank Rakyat Indonesia Cengkareng Timur Unit

Office about how to solve the queuing problem. The observation result shows that current Teller queuing system in Bank Rakyat

Indonesia Cengkareng Timur Unit Office that only has 2 teller counters is severely ineffective and need improvements, especially

in number of teller to serve customers.

Keywords: Teller; Queuing line; Effectiveness

* Corresponding author. Tel.: (+62) 81219168711.




Quality Improvement on PT X Dyeing Department by

Implementing Six Sigma

(A Case Study of Indonesian Textile Company)

Christianto Adityaa*, Yuanita Handayatib

1,2School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract

PT X Textile located in Majalaya is considered as one of Indonesian major textile company that capable to produce almost any

kind of fabric to suit your needs. As any other manufacturing companies, operation process played a fundamental role on company’s

progression. Furthermore, defects in textile industry cannot be underestimated because the quality of finished goods depend almost

altogether upon every process employed. The errors mostly happened in the Dyeing Department, simply because it’s the most

complex, tricky and required significantly more time to operate than other processes. Latest data also shows that the percentage of

defective product still exceeds company’s standard. Hence, the objective of this research is to help PT X overcome their problem

by implementing Six Sigma quality method with DMAIC methodology. It deeply explores (1) company’s operation dynamics, (2)

identify the root cause(s) and (3) disclose them by providing remedial solution(s). The findings of this research are; (1) the Dyeing

Department operated at 3 sigma level and yielded 6% of defects per 2017, (2) root causes are human error, power failure, broken

part, inferior chemical substances, lack of quality control and formula pre-test and (3) propose improvement solutions and control

plan for each identified root cause.

Keywords: Quality; Textile; Dyeing; Six Sigma; DMAIC






Application of Multiple Product Lot Sizing Models and Cycle

Counting Policy in Improving the Inventory Management of CV.

Putra Prima

Ivan Christiana*, Desy Anisya Farmaciawatyb

a,bSchool of Business and Management, Institut Teknologi Bandung, Jalan Ganesha no.10, Bandung 40132, Indonesia

Abstract

CV. Putra Prima currently have no inventory management model to use for calculating, safety stock, reorder point, lot size, and

keeping record accuracy. Like many businesses, they have most of their asset invested in their inventory. A well-managed inventory

should maximize profitability while minimizing cost. Being a wholesaler, the company has a high level of inventory that worth for

a high cash value. Therefore, this research intended to generate a new policy for CV. Putra Prima inventory management. The data

for this research will be obtained directly from the company. After analyzing the available data, this research has come up with an

applicable lot sizing model and cycle counting policy. The most cost-effective way for future procurement, is to aggregate multiple

products with lots ordered and delivered jointly for a subset of products. Using subset model total annual cost can as low as IDR

1,175,773,359.73 for an annual lot size of 1,498,049 unit. Overall their inventory is understocked, costing IDR 1,492,653,700.00

of lost sales. Lastly, cycle counting policy is a feasible means to keep high record accuracy. Using cycle counting policy CV. Putra

Prima only need to perform checks on eight products per day to keep high record accuracy. Keywords: Inventory Model; Continuous Review Policy; Multiple Product Lot Sizing; ABC Classification; Cycle Counting; Average Inventory

Level




Operations Strategy on Sustainable Horticulture and Postharvest

Process: Empower Tomato Farmers in Bandung Area

Pathmi Noerhatinia*, Ammana Al Hakimb, Gatot Yudokoc, Togar Simatupangd, Nur Budi

Mulyonoe, Melia Famiolaf, Dicky R. Munafg

a,b,c,d,e,f,gSchool of Business and Management, Institut Teknologi Bandung, Jl.Ganesha No.10, Bandung, 40132, Indonesia

Abstract

This conceptual framework is an operation strategy on assisting tomato farmers to improve their wellbeing by enhancing their

economic access. This operations strategy was improved and created sustainable impacts in farmer groups through following

activities: (a) Providing training to tomato farmers with a sustainable agricultural approach that produces organic tomatoes.

Farmers will also be educated how to make sustainable cultivation planning using GAPs technology method to guaranty the tomato

supply and quality, (b) Providing entrepreneurship training to improve farmer's entrepreneurial spirit and skill as well as managing

risk of the potential crop failures, and (c) Expanding farmer market access with various approached including processing the

tomatoes as various biotechnology-based products, such as tomato powder and tomato healthy drinks

Keywords: Operations Strategy; Sustainable Horticulture; Tomato Processing; Social Entrepreneurship Approach; Empower Tomato Farmers


Documents

PREFACE - staff.ui.ac.idstaff.ui.ac.id/system/files/users/rachmadi.agus/publication/icmem_2… · of Industrial Management at National Taiwan University of Science and Technology