Journal Title INKUBIS: Jurnal Ekonomi dan Bisnis DOI Prefix 10.59261 by Crossref Frequency 4 Issues per year (March, June, September, December) ISSN Online 2775-1848 | Print 2775-3913 Editor in Chief Abdurokhim Publisher Politeknik Siber Cerdika Internasional Indexing SINTA | Scilit | Crossref | Garuda Citation Analysis Google Scholar | Dimensions INKUBIS: Jurnal Ekonomi dan Bisnis is a scholarly journal serving as a medium of communication for researchers, academics, and practitioners worldwide. The journal publishes research in economics and business, including investment, finance, accounting, insurance, marketing, taxation, banking, management, and MSMEs. The journal publishes original research articles and critical reviews by experts that contribute significant scientific value and enhance understanding of contemporary economic and business challenges. INKUBIS: Jurnal Ekonomi dan Bisnis is issued regularly twice a year. The journal accepts submissions throughout the year. All manuscripts are reviewed upon receipt and must be written in standard English.
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Modeling Conversion Strategies for Regional Banks to Islamic Banks Using the Analytic Network Process (ANP) Approach
Background: Islamic banking in Indonesia has grown for over two decades; however, its market share remains below 8%, and the spin-off scheme of Islamic Business Units has demonstrated limited effectiveness. Converting Regional Development Banks (BPD) into Islamic Commercial Banks offers a strategic alternative, yet an integrated conversion model combining technical, organizational, and sharia dimensions is still lacking, using Regional Development Banks (BPD) in Indonesia as the research object. Objective: This study formulates a holistic conversion model by identifying priority problems, solutions, and strategies for converting BPD into Islamic Commercial Banks. Methods: This study employed the Analytic Network Process (ANP) combined with the Tawhidy String Relation (TSR)framework. Internal factors were mapped using the McKinsey 7S framework, while external factors covered legality, regulation, and customer aspects. Data were collected through in-depth interviews and pairwise-comparison questionnaires distributed to seven purposively selected experts, comprising regulators, sharia banking practitioners, and academics with direct conversion experience. ANP analysis was performed using SuperDecisions v.3.2 software, with a consistency ratio (CR) ≤ 0.10. Results: Strategy emerged as the most dominant internal problem (geomean = 0.40), driven by the absence of an integrated sharia transformation strategy. The priority solution is strengthening strategy through business and market-potential studies. The top recommended strategy is forming a dedicated sharia licensing team, supported by legal consultants and benchmarking with previously converted banks. Conclusion:Successful conversion of BPD into Islamic Commercial Banks is largely determined by strategic readiness as the foundation for sustainable, sharia-aligned transformation, supported by a roadmap integrating maqashid sharia into corporate governance.
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The Relationship Between Internal Auditors’ Personal Characteristics, Digital Forensic Technology, and the Ability to Identify Fraud Red Flags in Financial Statements
Background: Financial statement fraud has become more complex in the information age, exposing internal auditors to various challenges in identifying fraud red flags. Objective: This research analyzes the effects of personal characteristics and digital forensic technology on internal auditors’ ability to detect fraud red flags and examines how these two variables interact with each other. Methods: This study used a quantitative approach with a cross-sectional survey design. Primary data were collected through structured questionnaires administered to 25 purposively selected internal auditors from public companies listed on the Indonesia Stock Exchange. The data were analyzed using multiple regression and moderation analysis with SPSS version 26. Results: The multiple regression analysis revealed that internal auditors’ personal characteristics significantly predicted fraud detection ability (β = 0.487, p = 0.005), as did digital forensic technology (β = 0.298, p = 0.030). The moderation analysis indicated a significant interaction effect (β = 0.018, p = 0.036, ΔR² = 6.5%), suggesting that the two variables synergistically enhance fraud detection. The combined model explained 62.4% of the variance in red flag identification (R² = 0.624, F = 18.267, p < 0.001). Conclusion: The study concludes that combining strong auditors’ personal characteristics with appropriate digital forensic technology produces a synergistic effect that significantly enhances fraud red flag detection (ΔR² = 6.5%). Organizations are recommended to invest concurrently in auditor competency development and digital forensic infrastructure, as the interaction effect demonstrates that dual investment yields outcomes exceeding the sum of individual contributions.
Evaluating the Management Effectiveness of the Biomass Based Independent Energy Village (DME) Program in Supporting Indonesia’s Zero Carbon NDC
Background: Indonesia's updated Nationally Determined Contribution (NDC) targets net zero emissions by 2060, making the transition to renewable energy particularly locally based sources—essential for climate mitigation. Biomass, as a key renewable resource, is utilized through the Energy Independent Village (Desa Mandiri Energi, DME) program, including in Kaliombo Village, Jepara, which uses buffalo dung as a sustainable energy source. Objective: This study evaluates the management effectiveness of a biomass-based Energy Independent Village (DME) program in Kaliombo Village, Jepara Regency, Indonesia, and its contribution to the national zero carbon NDC target by 2060. Methods: Using a qualitative case study approach, data were collected through in-depth interviews with village officials, program managers, and community members, supplemented by observation and documentation. Data were analyzed using thematic analysis with triangulation to ensure trustworthiness. Result: Findings reveal that while the program demonstrates measurable contributions to local energy security and green energy production, long-term sustainability depends on strengthened managerial capacity, community participation, and policy alignment. Conclusion: This study provides managerial insights for improving renewable energy governance at the village level and offers a replicable framework for developing biomass-based rural energy in support of national decarbonization goals. This study contributes a replicable governance framework for biomass-based rural energy programs, advancing the discourse on decentralized renewable energy management in developing countries.
Role of Internal Control Systems and Organizational Culture in Preventing Village Fund Fraud: Evidence from Pineleng District, Minahasa Regency
Background: Village fund fraud has become a critical governance challenge in Indonesia, with cases reported across districts, including Minahasa Regency. Effective prevention requires examining both institutional mechanisms and cultural factors within village administrations. Objective: This study aims to analyze the influence of internal control systems and organizational culture on fraud prevention in village fund management in Pineleng District, Minahasa Regency. Methods: This study employs a quantitative approach with data collection conducted through questionnaires distributed to village officials. A total of 88 respondents, including village heads, village secretaries, village treasurers, Village Consultative Body (BPD) members, and section heads in Pineleng District, were selected using purposive sampling. Data were analyzed using multiple linear regression with SPSS Version 25. Results: The results indicate that the internal control system does not have a significant effect on village fund fraud prevention (t=0.428, sig.=0.670 > 0.05), whereas organizational culture has a positive and significant effect on fraud prevention (t=9.074, sig.=0.000 < 0.05). Simultaneously, both variables jointly influence fraud prevention (F=70.707, sig.=0.000), explaining 62.5% of the variance in fraud prevention (R²=0.625). Conclusion: The internal control system does not significantly prevent village fund fraud, while organizational cultureplays a positive and significant preventive role. Village governments are recommended to strengthen an organizational culture rooted in integrity and accountability and to revitalize internal control systems to move beyond mere administrative compliance toward substantive fraud prevention.
Entrepreneurial Orientation and Entrepreneurial Intention in Generation Z: The Mediating Role of Entrepreneurial Education and Parenting Style
Background: Youth unemployment in Indonesia remains a pressing challenge, demanding a paradigm shift from job seeking to job creation through entrepreneurship development. Objective: This study examines the mediating roles of Entrepreneurial Education (EE) and Parenting Style (PS) in the relationship between the dimensions of Entrepreneurial Orientation (EO) and Entrepreneurial Intention (EI) among Generation Z in Indonesia. Methods: A quantitative approach using SEM-PLS with SmartPLS 3.2.9 was applied to data collected from 327 university students. Results: The findings indicate that EE is a significant mediator and exerts a strong direct effect on EI. However, the mediating effect of EE is selective, operating only through the Proactiveness and Competitive Aggressiveness dimensions of EO. PS neither mediates the EO–EI relationship nor significantly predicts EI. Conclusion: The formal educational environment plays a more dominant role than the family environment in shaping EI among Generation Z. Institutions should design EE curricula that explicitly target Proactiveness and Competitive Aggressiveness. The model explains 44% of the variance in EI; future research should incorporate variables such as entrepreneurial self-efficacy and social support.
Analysis of Digital Transformation in MSMEs to Support Local Economic Growth
Background: MSMEs are crucial for employment and economic growth, but must adopt and effectively use digital technology to stay competitive. Objective: This study aims to analyze the effectiveness of digital technology adoption among MSMEs in accelerating local economic growth. Methods: Following the PRISMA 2020 guidelines, a systematic literature search was conducted using Google Scholar, the Directory of Open Access Journals (DOAJ), and SINTA-indexed journals. Boolean search strings, such as “digital transformation” AND “MSME” AND “local economic growth,” were applied. Open-access articles published in Indonesian or English between 2021 and 2026 were included. From an initial pool of 47 records, 18 articles met the inclusion criteria and were examined through qualitative thematic synthesis. Results: The thematic synthesis of the 18 articles identified three dominant mechanisms through which digital transformation strengthens MSME performance: (1) market expansion through e-commerce and digital marketing, (2) improved operational efficiency through cloud-based management systems, and (3) increased economic participation facilitated by financial technology (fintech) adoption. The quantitative studies reported productivity gains of up to 30% and sales increases of up to 60% among digitally transformed MSMEs. However, the effects varied across regions and business sizes and were influenced by the availability of digital infrastructure and the organizational readiness of MSMEs. Conclusion: Digital technology helps MSMEs expand market reach and improve efficiency, profitability, and resilience, contributing to local economic growth through increased activity and employment. However, its adoption is still hindered by limited digital skills, unequal infrastructure, restricted capital access, and weak organizational strategies.
Digital Marketing Activities, Digital Personal Branding, and Purchase Intention for Luxury Makeup: A Mediation Analysis
Background: The rapid development of digital marketing, especially through social media, has changed consumer behavior in seeking information and making purchase decisions. Activities such as influencer marketing engagement, user-generated content (UGC), and viral beauty trends are the main strategies in promoting products, especially in the luxury makeup industry. However, the effectiveness of these activities does not always directly affect purchase intention. Objective: This study examines how influencer marketing engagement, UGC, and viral beauty trends influence purchase intention for luxury makeup products, with digital personal branding as a mediating variable. Methods: This study takes a quantitative approach with a causal associative design. This study's data collection methods include a literature review and questionnaires. This study's analysis utilized a Structural Equation Modeling approach based on Partial Least Squares (SEM-PLS). Results: This study shows that influencer marketing engagement, user-generated content, and viral beauty trends have a positive effect on shaping consumers' digital personal branding on social media. The higher the engagement with influencers, the more content from users, and the stronger the trend develops, the stronger the digital identity of consumers is formed. Digital personal branding has also proven to be the most dominant factor in increasing purchase intention for luxury makeup products. In addition, these three variables affect purchase intention both directly and indirectly, with a stronger indirect effect through digital personal branding. Conclusion: Thus, digital personal branding plays a key role as a mediator that strengthens the relationship between digital marketing activities and consumer purchase intention.
The Influence of Message Source Credibility, Content-Based Trust, and Engagement-Based Trust on Member Contribution Performance through Social Media Engagement with the Moderation of Community Manager in the FRC Ecosystem of PT. MSBU Konsultan Indonesia
Background: Professional digital communities face a persistent paradox wherein high member engagement does not reliably translate into substantive contribution performance. Objective: This study developed and tested a moderated mediation model examining the roles of Message Source Credibility, Content-Based Trust, and Engagement-Based Trust as antecedents of Social Media Engagement, which subsequently predicts Member Contribution Performance, moderated by Community Manager Support. Methods: Grounded in Source Credibility Theory, Trust Theory, and Engagement Theory, the study employed a quantitative explanatory design with purposive sampling of 140 active members of the FRC Ecosystem, PT. MSBU Konsultan Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. Results: All nine hypotheses were supported. Engagement-Based Trust emerged as the strongest antecedent of Social Media Engagement, establishing the primacy of relational-affective over informational-cognitive mechanisms in professional community engagement formation. Social Media Engagement demonstrated a dominant effect on Member Contribution Performance, repositioning engagement as a conversion mechanism rather than a terminal outcome. Community Manager Support both directly influenced contribution performance and positively moderated the engagement–contribution relationship, functioning as a governance amplifier. Full mediation across all indirect pathways resolved contradictory findings in prior literature regarding the trust–contribution relationship. Conclusion: These findings advance engagement and community governance theory while providing evidence-based implications for professional digital community governance design. Community practitioners are advised to prioritize relational trust cultivation, implement structured recognition systems, and calibrate managerial support intensity proportionate to observed engagement levels.
The Influence of Emotional Intelligence, Work-Life Balance and Leadership Style on Generation Z Employee Loyalty on PT View Indonesia
Background: This research is motivated by the low level of loyalty among Generation Z employees, characterized by a high rate of job turnover and decreased organizational commitment. This condition is also observed in PT View Indonesia, which is dominated by Generation Z employees. Objective: This study aims to empirically examine the influence of emotional intelligence, work-life balance, and leadership style on the loyalty of Generation Z employees at PT View Indonesia, as well as to identify the individual contribution of each variable to employee loyalty outcomes. Method: The research employed a quantitative approach with data collected through questionnaires administered to 113 respondents using the saturated sampling method. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through two stages: measurement model testing and structural model evaluation. Results: The findings indicate that emotional intelligence, work-life balance, and leadership style each have a positive and significant influence on the loyalty of Generation Z employees. Conclusion: The study concludes that these three variables are critical factors in enhancing the loyalty of Generation Z employees within the company.
Innovative Learning Strategies and Entrepreneurial intention Among Generation Z: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Role of Campus Ecosystem Support
Background: Innovative learning strategies are increasingly important in entrepreneurship education for Generation Z students. However, the combined roles of experiential and technology-assisted learning, entrepreneurial self-efficacy, and institutional support remain insufficiently understood. Objective: This study examines the effects of challenge-based learning on entrepreneurial self-efficacy, gammification engagement, and opportunity recognition along with the influence of digital technology and AI-assisted ideation on gamification engagement and opportunity recognition. Additionally it explores the mediating function 0f entrepreneurial self-efficacy and the moderating influence of campus ecosystem support in the connection between innovtive learning strategies and entrepreneurial intention. Methods: Data from 250 students at five private universities in Central Java, Indonesia, were collected through purposive sampling and analyzed using PLS-SEM with 5,000 bootstrap subsamples. Results: Challenge-focused learning showed a positive correlation with entrepreneurial self-efficacy (β = 0.38, p < 0.001) as well as gamification engagement and opportunity identification (β = 0.41, p < 0.001). Digital technology and AI-enhanced brainstorming demonstrated the most significant direct correlation with gamification involvement and opportunity identification (β = 0.45, p < 0.001). Self-efficacy in entrepreneurship mediated the link between innovative learning approaches and entrepreneurial intention (β = 0.30, p < 0.001), whereas support from the campus ecosystem positively moderated this connection (β = 0.21, p < 0.001). The model accounted for 56% of the variation in entrepreneurial intention. Conclusion: Entrepreneurial self-efficacy acts as a crucial psychological factor connecting innovative learning techniques to entrepreneurial intention, with campus ecosystem support enhancing this relationship. Universities ought to combine experiential and AI-supported digital learning with mentoring, incubation initiatives, and partnerships with industry to enhance students' entrepreneurial confidence and encourage entrepreneurial intention.
Determinants of profit response coefficients: proof of raw materials and chemical companies listed on the Indonesia Stock Exchange (2021–2023)
Background: This study examines the determinants of the earnings response coefficient (ERC) in Indonesian commodity, chemical, and construction sectors. Objective: To identify factors affecting the earnings response coefficient (ERC) in Indonesian listed companies during 2021–2023. Methods: Purposive sampling was used to obtain 22 firms and a total of 66 observations that met the criteria. The following inclusion and exclusion criteria were applied: (1) companies continuously listed on the IDX in the subsectors of basic chemicals, agrochemicals, specialty chemicals, and building materials during 2021–2023; (2) companies issuing annual reports and financial statements that have been fully audited; (3) companies with stock price data available throughout the event window; (4) companies reporting net profit data for at least two consecutive years; (5) companies not suspended from trading during the observation period; and (6) companies with non-extreme or non-outlier data. Based on these criteria, 22 companies were selected, resulting in 66 observations across the financial years. The Common Effect Model (CEM) was selected based on the Chow, Hausman, and Lagrange Multiplier (LM) tests. Results: Regression analysis showed that earnings persistence had a significant negative effect, while growth opportunities had a significant positive effect. Meanwhile, default risk, systematic risk, and accounting conservatism did not affect the earnings response coefficient. Conclusion: Growth opportunities significantly increase the earnings response coefficient, while default risk, profit persistence, and accounting conservatism have no significant effect. These findings indicate that investors place greater emphasis on growth prospects than on risk-related indicators when responding to earnings information.
Determinants of Regional Fiscal Independence of Local Governments in Ciayumajakuning: A Panel Data Analysis of Local Tax, GRDP, Transparency, and Intergovernmental Transfers
Background: Regional fiscal independence in the Ciayumajakuning region remained critically low, as local governments continued to rely heavily on intergovernmental transfers rather than locally generated revenue, severely constraining their capacity for autonomous regional development. Objective: This study aimed to determine the effects of local tax revenue, Gross Regional Domestic Product (GRDP), transparency and accountability, and intergovernmental transfers on regional fiscal independence. Methods: This study employed a quantitative approach using panel data regression based on secondary data obtained from regional financial statements and government statistics. Results: Local tax revenue and GRDP had positive and significant effects on fiscal independence, while intergovernmental transfers had a negative and significant effect. Transparency and accountability had no statistically significant effect on fiscal independence. Conclusion: Strengthening regional fiscal autonomy requires a more balanced composition of local revenue sources and reduced dependence on transfer funds, supported by the substantive implementation of governance practices to improve local government performance.
Freelance Auditors on Responsibility, Independence, Risk and Objectivity: A Literature Review on the Practice of Public Accounting Firms in Indonesia
Background: The growing demand for audit services in Indonesia has led many Public Accounting Firms (Kantor Akuntan Publik [KAP]) to utilize freelance auditors as a flexible solution to address auditor shortages, particularly during peak audit seasons. With only 1,646 registered public accountants serving a population of 284.4 million (a ratio of 1:172,880), this practice has become widespread despite significant unresolved questions regarding legal responsibility, independence, and audit quality. While PMK 186/PMK.01/2021 and Law No. 5/2011 require all audit services to be conducted through KAPs, these regulations do not explicitly prohibit the use of freelance auditors, thereby creating a regulatory gray area with serious professional and ethical implications. Objective: This study examines the implications of using freelance auditors on legal responsibility, independence, professional risk, objectivity, and audit quality in Indonesian KAP practice. Methods: A qualitative Systematic Literature Review (SLR) was conducted, synthesizing academic articles from Scopus-indexed Q1/Q2 journals, Sinta 1/2 national journals, and professional auditing standards (ISA 220 Revised, ISQM 1, ISA 620, and the IESBA Code of Ethics 2024), selected from the 2014–2025 period. Results: Self-interest and familiarity threats were found to be the most prevalent among freelance auditors, driven by economic dependence on short-term assignments and the absence of structural independence controls. The complexity of the nine-dimensional agency relationship significantly increases moral hazard risk and weakens professional skepticism when adequate safeguards are absent. Conclusion: KAPs must strengthen quality management, supervision, documentation, and independence-testing systems to ensure that freelance labor does not degrade audit quality or increase litigation risk.
Financial Risk Mitigation Through Sustainability: Evidence from Construction Sector in Southeast Asia
Background: The construction sector is highly exposed to financial risk due to cost overruns, delayed payments, and market volatility. However, limited studies have examined how multidimensional financial risks affect firm value in Southeast Asia, particularly when ESG is positioned as a risk-mitigation mechanism. Objective: This study examines the effects of bankruptcy risk, fundamental risk, and liquidity risk on firm value while testing the moderating role of ESG in construction firms across Southeast Asia from 2015 to 2024. Methods: This study employed an explanatory quantitative design using unbalanced panel data, consisting of 1,831 observations for the direct risk model and 240 observations for the ESG moderation model. The data were analyzed using static panel estimation with Driscoll–Kraay standard errors and dynamic System GMM estimation. Results: Bankruptcy risk, fundamental risk, and liquidity risk significantly affected firm value across different model specifications. ESG significantly moderated the relationship between bankruptcy risk and firm value, indicating that sustainability practices strengthen the market signal of financial stability. However, ESG did not significantly moderate the effects of fundamental risk or liquidity risk on firm value. Conclusion: ESG practices selectively enhance firm resilience against bankruptcy risk, whereas operational and liquidity risks are assessed more independently by the market. This study contributes cross-country evidence on financial risk, firm value, and sustainability in Southeast Asia’s construction sector.
How Cultural Hotels Create Cultural Meaning: With the Role of Interior Design, Art Experience, Hotel Brand Image, and Staying Experience
Background: Cultural hotels have emerged as a distinctive segment of the hospitality industry, integrating local cultural values, traditional aesthetics, and symbolic experiences into the guest stay. In Jakarta, where cultural diversity and urban tourism intersect, cultural hotels serve as important sites for the transmission of local identity and meaning. Despite growing interest in culture-based hospitality, empirical studies examining how interior design, art experience, brand image, and marketing strategies collectively shape cultural meaning among hotel guests remain limited, particularly in the Indonesian context. Objective: This study aims to analyze the influence of interior design, perceived art experience, cultural marketing, hotel brand image, and pleasant staying experience on the formation of cultural meaning among guests of cultural hotels in Jakarta. Methods: This study uses a quantitative explanatory research approach. Data were collected through an online survey distributed to 270 respondents who had stayed at a cultural hotel in Jakarta, using a purposive sampling technique. Data analysis was conducted through validity tests, reliability tests, classical assumption tests, and multiple linear regression analysis using SPSS. Results: The results indicate that all independent variables have a positive and significant effect on cultural meaning. These findings suggest that culture-based experiences, reflected through interior design, perceived art experience, cultural marketing, hotel brand image, and pleasant staying experience, play a crucial role in shaping the cultural meaning perceived by guests. Conclusion: This study concludes that all five independent variables—interior design, perceived art experience, cultural marketing, hotel brand image, and pleasant staying experience—significantly and positively influence cultural meaning among guests of cultural hotels in Jakarta. Perceived art experience and pleasant staying experience demonstrated the strongest contributions. These findings imply that cultural hotels must holistically integrate aesthetic, symbolic, and experiential elements to enhance cultural meaning. This study contributes to the literature on cultural tourism and service marketing by empirically validating a meaning-transfer framework in the Indonesian hospitality context.
Financial Performance and Beer Distribution Game with Competition: Comparison of Supply Chains Without Strategy, Simple Moving Average and Single Exponential Smoothing
Background: Supply chain management is challenged by demand uncertainty, inventory inefficiency, and rising operational costs. Existing Beer Distribution Game (BDG) studies generally overlook competitive dynamics and consumer trust considerations. Objective: This study compares the financial performance of BDG scenarios using no forecasting, SMA, and EMA strategies under competitive conditions and evaluates their impact on consumer shifts. Methods: A quantitative simulation-based experimental approach was employed using a modified Beer Distribution Game model developed in AnyLogic. The model incorporated consumer trust dynamics and competition mechanisms. Three forecasting scenarios were tested through 5,000 simulation replications. Financial performance was measured using total operational costs across retailer, wholesaler, distributor, and factory units. Data were analyzed using one-way ANOVA, followed by Bonferroni and Games-Howell post-hoc tests at a significance level of 0.05. Results: The results revealed significant differences among the three forecasting scenarios. The Single ES (EMA) strategy achieved the lowest average total operational cost (USD 1,163.07), significantly outperforming SMA (USD 1,771.21) and the no-strategy scenario (USD 1,810.81). EMA consistently reduced costs across all supply chain units, including retailer, wholesaler, distributor, and factory levels. However, EMA also generated the highest average consumer shift rate (32.90%), indicating a trade-off between cost efficiency and customer retention. The findings further suggest that adaptive forecasting improves supply chain stability and partially mitigates the bullwhip effect under competitive conditions. Conclusion: EMA offers superior cost efficiency, but should be complemented by customer retention strategies to ensure sustainable performance.
Ibn Khaldun's Production Ethics and Islamic MSME Market Supply: A Civilizational Perspective
Background: The low halal certification rate among Indonesian MSMEs, with fewer than 10% of 64 million business units certified halal, and the sharia economic literacy rate of only 9.14%, indicate a weak internalization of Islamic production ethics in market offerings. Meanwhile, Ibn Khaldun’s thought, which contains strong values of Islamic production ethics, has not been sufficiently explored as a conceptual basis for strengthening Indonesian Islamic MSMEs. Objective: This study aims to analyze Ibn Khaldun’s concept of Islamic production ethics, examine its relevance to Islamic market offerings, and describe its implications for strengthening Indonesian sharia-compliant MSMEs. Method: This study employs qualitative library research with a historical-analytical approach. It systematically examines Ibn Khaldun’s ethical production thought through Muqaddimah as the primary source and relevant classical and contemporary Islamic economic literature as secondary sources, then contextualizes the findings within Indonesian sharia MSMEs. Results: The findings show that Ibn Khaldun’s production ethics is centered on ‘umran, which integrates labor value, ‘asabiyyah or social solidarity, justice, ethical efficiency, and civilizational sustainability. This study constructs a five-principle operational framework for Islamic production ethics applicable to Indonesian halal MSME market supply. Conclusion: Integrating ‘umran and ‘asabiyyah into MSME production orientation may address the dualism between Islamic identity and profit-driven conventional business practices.
The Effect of Dividend Policy and Corporate Governance on Company Value: The Role of Tax Avoidance Moderation in Manufacturing Companies
Background: Corporate value reflects market assessments of managerial decisions and governance quality. While prior studies have examined determinants of firm value, the combined effects of dividend policy, leverage, gender diversity, and CEO compensation remain underexplored in Indonesia's non-cyclical consumer sector, particularly the moderating role of tax avoidance. Objective: This study investigates the effects of dividend policy, leverage, gender diversity, and CEO compensation on firm value (Tobin's Q) in non-cyclical consumer companies listed on the Indonesia Stock Exchange (IDX), and examines whether tax avoidance, proxied by the Cash Effective Tax Rate (CETR), moderates these relationships. Methods: A quantitative causal-comparative design was applied using panel data from 36 IDX-listed non-cyclical consumer companies over 2020–2024, yielding 180 firm-year observations. Purposive sampling was employed, and data were analyzed through panel data regression with the Fixed Effect Model (FEM), followed by Moderated Regression Analysis (MRA). Results: Gender diversity exerts a significant negative effect on firm value, suggesting that greater board diversity is associated with lower Tobin's Q. Tax avoidance significantly and positively moderates the relationship between gender diversity and firm value. Conversely, dividend policy, leverage, and CEO compensation show no statistically significant effects, either directly or in the moderated models. Conclusion: Governance dynamics and tax management outweigh traditional financial indicators in shaping firm value. Gender diversity negatively affects Tobin's Q, reflecting market skepticism toward uninstitutionalized board changes, yet tax avoidance positively moderates this relationship. The findings emphasize strategic tax management and sound governance as key drivers of corporate value.
The Mediating Role of Social Media Engagement in the Relationship Between Social Media Advertising and Brand Awareness: Evidence from Luxury Resorts in Bali
Background: Social media has become a dominant channel for brand building in the hospitality sector, especially for luxury hotels, where visual storytelling and symbolic value are crucial. However, limited research has explored how paid social media advertising (SMA) influences brand awareness (BA) through consumer engagement. Objective: This study examines the direct and indirect effects of SMA on BA by applying the Stimulus–Organism–Response (SOR) framework, with social media engagement (ENG) serving as a mediator. Methods: A survey was conducted involving 250 domestic and international tourists who had engaged with paid campaigns on Instagram, Facebook, TikTok, and YouTube from five five-star resorts in Bali. The EPIC model—Empathy, Persuasion, Impact, and Communication—was used to assess advertising effectiveness, while regression analysis was employed to test the hypothesized relationships. Results: The results indicate that SMA directly enhances BA (β = 0.52, p < .001) and has an indirect effect through ENG as a significant mediator (β = 0.47 → β = 0.38, p < .001). ENG independently strengthens BA (β = 0.38, p < .001), and the model collectively explains 61% of the variance in brand awareness. This study contributes theoretically by integrating the EPIC model into the SOR framework and demonstrating that social media engagement functions as a key mediating mechanism between advertising stimuli and brand awareness outcomes. Conclusion: Practically, luxury hotel managers should invest in clear, persuasive, and emotionally resonant social media campaigns that stimulate consumer engagement, thereby reinforcing brand recognition and salience in competitive digital markets.
Value Relevance of Accounting Information: A Systematic Bibliographic Review of Global Trends and Emerging Research
Background: The value relevance of accounting information remains a central concern in accounting research. The globalization of reporting standards (International Financial Reporting Standards [IFRS]) and the rise of non-financial disclosures (environmental, social, and governance [ESG] factors and corporate governance) have introduced both opportunities and complexities in how financial information influences investors’ economic decisions, particularly in emerging markets. Objective: This study examines the evolution, thematic trends, key variables, and research directions in the value relevance literature based on international publications indexed in Scopus from 2014 to 2024. Methods: A PRISMA-compliant systematic bibliographic review was conducted. Data were sourced from Scopus using the keywords “value relevance” and “earnings relevance,” restricted to English-language, open-access publications in the subject areas of Business, Management, Accounting, Economics, and Finance published between 2014 and 2024. Results: Publication volume grew substantially between 2014 and 2024, with a brief decline in 2020 attributable to pandemic-related disruptions, followed by recovery from 2021 onward. Developed countries—particularly the United Kingdom, Australia, Italy, and the United States—dominate the literature. The dominant variables remain earnings, book value, and IFRS adoption, although a discernible shift toward non-financial factors (ESG, corporate social responsibility [CSR], and corporate governance) is evident. Institutional context, earnings quality, governance mechanisms, and reporting standard consistency emerged as key determinants of value relevance strength. Conclusion: The value relevance of accounting information is a growing and evolving field of research. While foundational variables retain their centrality, the integration of non-financial disclosures and institutional context represents the frontier of the field. This study contributes a structured synthesis of a decade of global evidence, identifying underexplored themes that warrant future investigation.
Determinants of Tax Compliance Behavior of Future Taxpayers: Proof of Students in the Cirebon Region Using PLS-SEM
Background: Tax compliance among university students is essential for strengthening future tax revenue, yet evidence on its determinants remains limited in Indonesia. Objective: This study aims to examine the effects of tax awareness, tax knowledge, tax system modernization, tax education, tax socialization, and tax ethics on tax compliance behavior among university students in the Cirebon region, Indonesia. Method: This study employed a quantitative research approach involving 260 students from the Faculty of Economics and Business in Cirebon City, Cirebon Regency, and Indramayu. Respondents were selected using purposive sampling based on prior experience with taxation courses. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS to evaluate the relationships among seven research constructs. Results: The findings indicate that tax awareness (β = 0.593, p = 0.001), tax knowledge (β = 0.649, p < 0.001), and tax socialization (β = 0.428, p < 0.001) have significant positive effects on tax compliance behavior. Conversely, tax system modernization (β = −0.280, p < 0.001) and tax education (β = −0.543, p = 0.011) exhibit significant negative effects, suggesting implementation challenges in the student context. Tax ethics does not significantly influence tax compliance behavior (β = 0.067, p = 0.562). The structural model demonstrates excellent explanatory power (R² = 0.981) and high predictive relevance (Q² = 0.895). Conclusion: Tax compliance among university students is mainly influenced by tax awareness, tax knowledge, and tax socialization. The findings provide practical guidance for improving tax education and compliance strategies for future taxpayers.
Performance-Based Structural Compensation Model for Structural Officials in Private Universities (A Case Study of Universitas Kristen Indonesia Toraja)
Background: Remuneration systems in private universities often lack transparency and performance-based incentives, leading to perceived inequity among structural officials—those in formal academic and managerial leadership positions. At Universitas Kristen Indonesia Toraja (UKI Toraja), the existing compensation system is primarily determined by position classification and length of service, without systematically evaluating the actual complexity and responsibilities of each role. This administrative approach fails to reflect genuine contributions, thereby undermining motivation, internal equity, and institutional competitiveness. Objective: This study aims to develop a performance-based remuneration model for structural officials in private universities through a case study at Universitas Kristen Indonesia Toraja. Methods: A qualitative case study was conducted at Universitas Kristen Indonesia Toraja through document analysis, semi-structured interviews, and a limited confirmatory questionnaire. Data were analyzed using thematic analysis following Corbin and Strauss, with triangulation across interview, documentary, and questionnaire data sources to enhance validity. Results: The findings indicate that the application of the Factor Evaluation System (FES) is relevant for objectively assessing positions based on responsibilities and work complexity rather than personal attributes. The adaptation of the nine FES dimensions results in a more holistic assessment of academic and managerial roles in private universities. The nine-level scoring system (1–9) improves fairness, transparency, and accuracy in job grading and strengthens the linkage between performance and compensation. Conclusion: The adaptive FES model constitutes a strategic instrument for merit-based human resource governance in private universities. It offers a replicable framework for institutions seeking to align structural compensation with performance, responsibility, and institutional values.
Marketing Strategy of Inpari 40 and Kusuma 06 Rice Farming (Oryza sativa L.) in Mangulewa Village, Ngada Regency
Background: The rice sector is strategic for food security and rural welfare in Indonesia. In Ngada Regency, dry unhusked rice (GKG) production declined from 57,618.67 tons in 2023 to 46,144.71 tons in 2024, while farm-gate prices remained volatile. Studies on the marketing of specific superior varieties such as Inpari 40 and Kusuma 06 at the village level remain scarce. Objective: This study analyzes the marketing strategy of Inpari 40 and Kusuma 06 rice farming (Oryza sativa L.) in Mangulewa Village, Ngada Regency, focusing on marketing channels, marketing margins, and farmers' share. Methods: A convergent mixed-methods design was applied between February and May 2025. Thirty respondents (25 purposively selected farmers and 5 traders) were interviewed, and data were triangulated with observation and documentation. Qualitative data were analyzed using the Miles-Huberman model, while quantitative data employed marketing-margin and farmers'-share formulas. Results: Findings indicate a direct (zero-level) channel for Inpari 40 organic rice and Kusuma 06 seed, with a farmers' share of 100% for direct sales and an average marketing margin of IDR 3,500/kg when traders are involved. Inpari 40 is sold as organic rice at IDR 15,000/kg, and Kusuma 06 as unlabeled seed at IDR 20,000/kg. Digital promotion via WhatsApp and Facebook contributed approximately 30% of orders. Conclusion: An integrated strategy combining product differentiation, direct channels, and digital promotion enhances farmers' share and supports farming sustainability. Future research should test these findings on a larger sample and include cost-benefit analyses.
Hawkish-Dovish Signal Analysis in Bank Indonesia's Board of Governors Meeting Press Releases Using Large Language Model
Background: In signaling policy direction, central bank communication is crucial for aligning the expectations of financial market participants and the public with forthcoming monetary policy. This helps reduce economic uncertainty and enhance policy predictability. Objective: This study examines the strategic role of Bank Indonesia’s communication in shaping market expectations and influencing public perception through policy direction signals in Bank Indonesia Board of Governors Meeting press releases. Methods: Observations of these signals were conducted semi-automatically using a large language model (LLM) to analyze sentence-level interpretations by classifying each sentence according to hawkish, neutral, and dovish criteria. Using an ordered probit model, the relationship between policy direction signals in the sentences and changes in policy rates in the subsequent period was investigated. Results: The results show that policy direction signals in press release texts are significantly positive in predicting future policy interest rates. Conclusion: The findings confirm that hawkish and dovish signals embedded in Bank Indonesia’s monthly Board of Governors Meeting press releases significantly predict future policy interest rates, with 80% prediction accuracy. Central bank communication thus serves as a reliable monetary policy instrument that supports market expectation management, reduces financial market volatility, and enhances monetary policy credibility and effectiveness.
The Effect of Spiritual Leadership on Work Resilience Proactive Personality and Psychological The Mediating Role of Ownership
Background: Employees in Small and Medium Enterprises (SMEs) face dynamic workplace challenges that require high levels of resilience; however, the mechanisms through which leadership influences this capacity remain underexplored, particularly in traditional market settings. Objective: This study examines the mediating roles of proactive personality and psychological ownership in the relationship between spiritual leadership and work resilience, grounded in Self-Determination Theory (SDT). Methods: Using a survey design, data were collected from 189 employees working in SMEs at Banyuasri Traditional Market, Bali, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3. Results: Spiritual leadership had no direct effect on work resilience (H1 rejected, β = 0.093, p > 0.05); however, it significantly influenced psychological ownership (β = 0.493, p < 0.01) and proactive personality (β = 0.584, p < 0.01). Both mediators positively predicted work resilience. Full mediation was confirmed, with psychological ownership emerging as the dominant mediator (β = 0.264, p < 0.01) compared with proactive personality (β = 0.171, p < 0.05). Conclusion: SME leaders should prioritize cultivating psychological ownership and proactive employee behavior, as these internal psychological mechanisms are the primary pathways through which spiritual leadership strengthens work resilience.
E-Budgeting and the Effectiveness of Pro-Poor Public Spending: An Institutional Governance Perspective from Local Government in Indonesia
Background: Despite continuous increases in local fiscal capacity and budget allocations, governance constraints—such as weak transparency, accountability, and coordination—often undermine the effectiveness of pro-poor public spending. From an institutional governance perspective, these constraints challenge not only policy performance but also the sustainability of poverty alleviation efforts. Objective: This study examines the relationships among local government budget management quality, e-budgeting implementation, and the effectiveness of pro-poor public spending at the subnational level in Indonesia. Methods: Drawing on survey data collected from officials in local government agencies in West Tanjung Jabung Regency, the study employs Partial Least Squares–Structural Equation Modeling (PLS-SEM) to analyze direct and indirect relationships among multidimensional governance constructs. Results: The results indicate that the Regional Revenue and Expenditure Budget (APBD) does not have a significant direct effect on poverty reduction (β = −0.036, p = 0.776). However, APBD has a positive and significant effect on E-Budgeting implementation (β = 0.667, p < 0.001), while E-Budgeting significantly contributes to poverty reduction (β = 0.673, p < 0.001). These findings suggest that effective E-Budgeting implementation plays a crucial role in enhancing transparency, accountability, and budget efficiency, thereby supporting poverty reduction efforts in Tanjung Jabung Barat Regency. Conclusion: By strengthening transparency, accountability, budget traceability, and interagency coordination, e-budgeting enhances consistency between budget planning and implementation processes and supports the sustainable effectiveness of pro-poor public spending in decentralized government systems. Theoretically, this study contributes to the public financial management and digital governance literature by positioning e-budgeting as an institutional mediating mechanism linking budget quality to sustainable policy implementation.
Improving Work-Life Balance via Tactical Approaches: Insights from the Automotive Industry
Background: Work-life balance (WLB) is increasingly recognized as a critical factor in employee well-being and organizational performance, particularly in high-demand industries such as the automotive sector, where operational pressures often conflict with employees’ personal needs. Objective: This study aims to evaluate how employees in the automotive industry perceive work-life balance (WLB) and to determine the critical aspects requiring improvement to ensure that organizational policies more effectively meet workforce needs. Methods: This study used a quantitative survey of 128 employees in the automotive sector to assess the perceived importance and actual performance of various WLB factors. The data were analyzed using Importance–Performance Analysis (IPA) to identify priority areas and correlations among WLB components. Results: The findings revealed that organizational performance (M = 3.74) exceeded the importance attributed to WLBdimensions (M = 3.63), indicating that overall organizational delivery met employee expectations. IPA revealed two critical gaps in Quadrant I (high importance/low performance) requiring immediate intervention, while six attributes in Quadrant II represented key organizational strengths. Correlation analysis identified eleven statistically significant tactical strategies linking organizational strengths to priority improvement areas. Conclusion: This study offers a novel integration of IPA and correlational analysis to generate eleven evidence-based tactical decisions for WLB enhancement in the automotive sector, thereby advancing both theoretical understanding and practical human resource management.
How Industry 4.0 and Knowledge Management Shape Sustainable Performance Unequally?
Background: Pharmaceutical manufacturers face growing pressure to achieve sustainable performance while meeting strict regulations and adapting to digital transformation. However, the impact of Industry 4.0 technologies and knowledge management on sustainable performance remains inconsistent, especially in highly regulated environments. Objective: This study investigates the differing effects of Industry 4.0 and knowledge management on sustainable performance and explores the moderating role of transformational leadership in pharmaceutical manufacturing. Methods: Survey data were collected from 425 managers working at Good Manufacturing Practice (GMP)-certified pharmaceutical firms in the Jabodetabek region of Indonesia and analyzed using partial least squares structural equation modeling (PLS-SEM). Results: The results demonstrate that Industry 4.0 has a positive and significant direct effect on sustainable performance, confirming its role as an operational enabler in regulated environments. In contrast, knowledge management has no significant direct effect on sustainable performance, indicating that its contribution remains limited when it is primarily associated with compliance and documentation practices. Transformational leadership negatively moderates the relationship between Industry 4.0 and sustainable performance, suggesting a misalignment between this leadership style and the need for process stability during the early stages of digital implementation. Conversely, transformational leadership positively moderates the relationship between knowledge management and sustainable performance, indicating that leadership conditions influence the extent to which knowledge management contributes to performance outcomes. Conclusion: These findings suggest that organizational capability effectiveness depends on alignment with leadership style. Managers should stabilize digital processes and promote knowledge management through learning-oriented leadership to improve sustainable performance.
Measuring Tourism Economic Impact Approach with Keynesian Multiplier: Case on Prambanan Temple
Background: One way to assess the economic benefits of tourism is by determining the multiplier value, and one of the most widely applied valuation approaches is the Keynesian multiplier model. Although several studies have examined the multiplier effect of tourism in general, limited empirical research has specifically examined Prambanan Temple as a heritage tourism destination with the highest visitor volume in Yogyakarta, indicating a notable gap in the literature. Objective: The Keynesian multiplier uses inputs involving the direct impact of expenditure, or Tourist Expenditure (E), and local business income in the tourism sector (D); the indirect impact based on the income or wages of local labor in the tourism sector (N); and the induced impact based on tourist spending on local products (U). Method: The Keynesian multiplier is formulated as (D + N + U)/E. A sample of 100 tourists and 10 informants representing tourism businesses and tourism workers was selected as the parties to be interviewed. Result: The analysis yielded a Keynesian income multiplier of 6.75, indicating that every IDR 965,630 spent by an average tourist generated an estimated total economic impact of IDR 6.52 million within the local tourism economy. A multiplier value exceeding 1 indicates that Prambanan Temple, as a tourism destination, demonstrates a significant economic impact in improving the economic welfare of the surrounding community. Conclusion: In measuring job creation, a ratio of 1:4 was obtained, meaning that the arrival of every one tourist can create four job opportunities.
Controller as User of Technology and Developer of Workforce Strategy are the Internal Control Succeed Pillars
Background: Internal control systems are essential for ensuring organizational accountability, risk mitigation, and operational efficiency in higher education institutions. The increasing adoption of digital technologies and the evolving role of internal auditors require controllers as users of technology and developers of workforce strategy to possess not only technological competencies but also strategic workforce management capabilities. Objective: This study aims to analyze the influence of controllers as workforce strategy developers, trusted advisors, value-added providers, and technology users on the success of internal control at State Universities in Indonesia. Method: This study employed a sequential explanatory mixed-methods design. Quantitative data were collected from 56 internal auditors at Indonesian State Universities and analyzed using PLS-SEM, followed by qualitative interviews with senior auditors to support the interpretation of findings. Results: The bootstrapping results of the PLS-SEM analysis indicate that controllers as workforce strategy developers and technology users have a significant positive influence on internal control success. In contrast, the roles of controllers as trusted advisors and value-added providers were not found to have significant effects. The coefficient of determination (Adjusted R² = 72.20%) demonstrates that the independent variables strongly explain variations in internal control success. Qualitative findings further reveal that workforce development, technology infrastructure, audit data analytics, and information governance are critical factors supporting effective internal control implementation. Conclusion: The study concludes that workforce strategy development and technology utilization significantly support the success of internal control in Indonesian State Universities, while the roles of trusted advisors and value-added providers do not show significant influence.
Lifestyle, Financial Literacy, and Financial Management of Young Civil Servants (ASN) at The Badung Provincial Regional Office
Background: Young civil servants (ASN) at the Badung Regional Office face challenges in personal financial management due to low financial literacy and consumptive lifestyles. Most spend over half of their income on consumption, leaving little for savings and investment. Objective: This study aims to analyze the impact of lifestyle and financial literacy on the financial management of young civil servants (ASN) in the Badung Provincial Regional Office, clarifying the relative magnitude of the impact of each variable and the contribution of novelty in research on public sector financial behavior. Methods: Using a quantitative descriptive design, 70 respondents (Slovin method, e=10%) were randomly selected from 230 ASN staff by simple random sampling. Data were collected using a validated questionnaire (Cronbach alpha = 0.977) and analyzed using multiple linear regression, t-test, F-test, and the coefficient of determination. Classical assumption tests (normality, multicollinearity, heteroscedasticity) verified the validity of the model. Results: Lifestyle habits had a significant impact on financial management (β = 0.609, t = 9.876, p < 0.001). Financial literacy also showed significant positive effects (β = 0.173, t = 3.060, p = 0.003). Simultaneously, both variables significantly influenced financial management (F = 1265.800, p < 0.001), accounting for 97.4% of the variance (R² = 0.974). Conclusion: Both lifestyle and financial literacy have a significant and positive impact on the financial management of young civil servants at the Badung Provincial Regional Office. Improving financial literacy programs and promoting a responsible lifestyle are recommended to foster the economic well-being of young workers.
Institutional Management Failures and Maladministration in One-Stop Integrated Public Services (PTSP): A Qualitative Case Study at Jambi City's Public Service Mall (MPP)
Background: This research investigates the forms of maladministration that occur in the management of One-Stop Integrated Service Center (PTSP) City Jambi. Objective: To determine the key managerial factors contributing to maladministration and their impact on the quality of services provided by public enterprises. Methods: A qualitative approach with a case study design was applied, with data collected through in-depth interviews involving PTSP officials, clients, and members of the Indonesian Auditors’ Board (BPK), accompanied by an analysis of relevant policies and institutional documents. Informants were purposively sampled to ensure rich data and validation until theoretical saturation was achieved. Results: The findings indicate that maladministration remains a serious issue in the PTSP of Jambi City, manifesting in various forms, such as the absence of an integrated complaint system, subjective application of procedural transparency, and persistent delays in service delivery. These problems are corroborated by the audit report from the BPK Jambi Provincial Office, highlighting fundamental weaknesses in institutional planning within the governance and management of the Public Service Mall (MPP) in Jambi City. Conclusion: These insights suggest that strategic initiatives are essential to improve governance at the PTSP, enhancing citizen satisfaction and trust in local government.
Business Process Management of Vehicle Sales and After-Sales Services: A Case Study in an Indonesian Auto Company
Background: XYZ, Inc., a medium-sized automotive company specializing in vehicle sales and repair services, faces significant operational challenges arising from manual processes, fragmented information systems, and limited interdepartmental coordination. These inefficiencies result in extended processing times, reduced data accuracy, and a negative impact on customer satisfaction (CSAT). Objective: This study aims to analyze and redesign the vehicle sales and repair service processes at XYZ, Inc. using the Case Study framework. BPMN 2.0 was employed to identify bottlenecks, misalignments among sales, repair, and inventory units, and sources of manual data entry inefficiency. Methods: This research adopts a qualitative descriptive case study design following the five-stage BPM Lifecycle (identification, discovery, analysis, redesign, and implementation). Data were collected through structured interviews, direct observation, and document review. BPMN 2.0 was used to model as-is and to-be processes, and performance gaps were measured by comparing actual versus expected processing times across key activities. Results: The redesigned processes led to faster processing times, a reduction of errors, and improved data sharing among departments. Post-project assessments showed that BPM enhances customer experience by facilitating faster service delivery and response. Additionally, performance analytics were implemented to track top-level metrics such as cycle time, data quality, and repair response time. Conclusion: BPM implementation at XYZ, Inc. resulted in significant reductions in processing time for vehicle sales and repair activities, including a reduction in Sales Order Preparation from 18.5 to 9 hours and Parts Ordering from 8 to 2 hours. The redesigned processes improved data accuracy, interdepartmental integration, and overall operational efficiency. These findings demonstrate the practical value of the BPM Lifecycle approach in the automotive retail and service sector.
B-READY Indicators and Foreign Direct Investment: Evidence from Emerging and Advanced Economies
Background: The study examines the effect of the Business Entry, Taxation, and Utility Services indicators from the World Bank’s Business Ready (B-READY) framework on Foreign Direct Investment (FDI) inflows. Objective: The analysis aims to compare how these regulatory indicators influence investment attractiveness in Emerging Market Economies (EMEs) and Advanced Economies (AEs). Methods: The study employs a quantitative approach using cross-sectional data from 32 countries included in the B-READY dataset. The estimation is conducted using the Weighted Least Squares (WLS) method to address heteroscedasticity in cross-country data. Results: The results show that Business Entry and Taxation have a positive and statistically significant effect on FDI inflows in the full sample and in Emerging Market Economies (EMEs). However, the findings indicate no significant effect of these variables in Advanced Economies (AEs). The Utility Services indicator does not show a statistically significant impact on FDI inflows in either group. These findings suggest that regulatory efficiency related to business establishment and taxation plays a more important role in attracting foreign investment in developing economies. Conclusion: Policymakers in emerging economies should prioritize regulatory reforms that simplify business registration procedures and improve the efficiency of tax administration to enhance investment attractiveness.
Human Resource Transformation of Tax Auditors at the Directorate General of Taxes: an Comprehensive Review and Policy Framework Based on International Practices
Background: The quality of tax auditor human resources, encompassing competence and technological adaptation, is crucial for effective taxation; however, it is hindered by limitations in human resource autonomy and capability gaps. Objective: This study aims to synthesize global best practices in tax auditor human resource management into a coherent transformation model for the DGT. It integrates organizational structure, career development, ontology-based knowledge management, and quality-based remuneration and performance systems. Methods: A qualitative approach was employed through a comprehensive literature review. Data from scientific journals, reports, and policy documents were analyzed through theme identification, comparison, synthesis, and interpretation based on relevant theories. Results: The analysis reveals three interconnected patterns in the global literature. First, regarding organizational structure, global tax administrations consistently demonstrate a strategic tension between centralization and decentralization, which enhances local responsiveness and contextual adaptation. Second, the literature converges on the critical importance of structured capability development through academy-model institutions, competency dictionaries, and clear career paths. Third, performance management and remuneration systems exhibit a complex pattern in which motivating compensation is necessary but must be carefully designed to avoid incentive misalignment. Conclusion:Tax auditor human resource transformation requires a holistic approach: balancing centralization and decentralization, developing professional capabilities through academies and knowledge management, and designing quality- and ethics-oriented performance and remuneration systems. This study enriches the theoretical framework and offers strategic guidance for the DGT. Future research is encouraged to empirically validate this model within the DGT context.
FoMO and Gen Z Purchase Decisions: The Role of Brand Image, Influencer Marketing, and Online Customer Reviews on the TikTok Platform
Background: This study is motivated by the growing phenomenon of social commerce on TikTok, which has transformed consumer purchasing behavior, particularly among Generation Z, through digitally driven trends. Objective: This study aims to analyze the influence of brand image, influencer marketing, and online customer reviews on the purchase decisions of Glad2Glow skincare products on TikTok, with Fear of Missing Out (FoMO) serving as a mediating variable among Generation Z consumers in Bali. Method: This research employs a quantitative approach using an explanatory research design. The population consists of Generation Z consumers in Bali who have purchased Glad2Glow products through TikTok Shop. The sampling technique applied is purposive sampling, yielding a sample of 180 respondents. Data were collected through online questionnaires using a Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM–PLS). Results: The findings reveal that brand image (β = 0.410, p < 0.001), influencer marketing (β = 0.270, p < 0.001), and online customer reviews (β = 0.278, p < 0.001) significantly influence purchase decisions (R² = 0.682). Brand image (β = 0.247, p < 0.001) and influencer marketing (β = 0.342, p < 0.001) significantly influence FoMO, while FoMO itself does not significantly influence purchase decisions (β = 0.082, p = 0.167) and does not mediate any of the examined relationships. Conclusion: This study extends the Stimulus–Organism–Response (SOR) framework within digital marketing contexts by demonstrating that FoMO does not significantly mediate purchase decisions in the skincare category. Practical implications are provided for skincare companies seeking to strengthen brand credibility and leverage consumer reviews as quality validation instruments on TikTok.
Market Reaction to Information Signals: Evidence from the Indonesian Stock Market
Background: The capital market is involved in the allocation of funds and the reflection of economic information. However, in emerging markets such as Indonesia, responses to macroeconomic signals are not consistently observed due to information asymmetry, investor heterogeneity, and high economic uncertainty. Objective: This study aims to analyze the impact of interest rates, inflation, and exchange rates on market returns and to describe the response to macroeconomic signals in the Indonesian stock market. Methods: This study uses monthly time-series data from the Indonesia Stock Exchange, Bank Indonesia, and the Central Statistics Agency from 2016 to 2025. Multiple linear regression analysis is used to examine the relationships among the variables. Results: Results show that exchange rates have a negative and significant impact on market returns, while interest rates and inflation have no significant impact on market returns. These findings suggest that external macroeconomic factors, especially currency fluctuations, have a greater impact on stock market reactions than domestic financial variables. Conclusion: This study concludes that among the three macroeconomic information signals analyzed, exchange rates have the most dominant and statistically significant impact on market returns in Indonesia. These findings highlight that market responses in emerging markets are context-dependent and shaped by prevailing macroeconomic conditions and investor risk perceptions.