The sales of the automotive was increased by 3.6% in 2018, sparking the automotive and its spare parts industry for more opportunities. Various strategies have been made to win the competition and increase sales, to expand market share and to reduce production costs. Tire industry as automotive parts industry in Indonesia has faced with tremendous competition and the industry needs an appropriate strategy to reduce production costs by reducing defective products. The building process is workstation of the tire industry with the focus on decline on the defective products. Internal data shows the defective products in the building process of 0.20% in 2017 and 0.17% in July ~ September 2018 which were higher than the company's schedule of 0.12% of total production. The NGT, Shainin system and DMAIC (Six sigma) methods are expected to improve defective products of building process. Based on Pareto diagrams it is clear that there were six defective products causing high defective products. However, with the limited research, BLP defective products with the highest defective product (48%) was used as a pilot project in this study. The preliminary results indicate that the proposed method of this paper could succeed in improving the baseline performance of the building process (sigma level) from 4.48 to 5.02 sigma and could reduce the cost from IDR.1.427.500.00 to IDR. 161.000.000 or 88.69%.

Human resource management is the key component for every organization. The empowerment of human resource is a strategic decision which in return affects the organizational productivity. The purpose of the present study is to examine the impact of HR empowerment through information technology, cultural dimensions and organizational knowledge with their impact on Muhammadiyah higher education productivity in Indonesia. To address this objective, a questionnaire was developed as a core instrument to collect primary data from the employees of Muhammadiyah higher education. A final sample of 138 respondents was collected for applying the structural equation modelling (SEM) approach with the factor analyses. Additionally, validity of the questionnaire was observed through three measures; namely Cronbach’s alpha, average variance extracted and composite reliability. Findings through structural equation modelling approach specify that all three dimensions of HR empowerment have shown their positive and significant influences on Muhammadiyah higher education productivity. However, this study is limited by various perspective. First, data is collected from Indonesia through employees of Muhammadiyah higher education only with limited generalizability of the findings. Second, the study has not discussed the combine effects of human resource empowerment on the overall productivity of Muhammadiyah higher education but with individual dimensions like cultural, information technology and knowledge factors. The findings can be meaningful to boost the performance and productivity of higher education while understanding its structural relationship between human resource development.

The purpose of this research is to analyze the relationship between intellectual capital and financial performance of eleven Islamic banks in Indonesia over the period 2013-2016, using the value-added intellectual capital model, utilizing panel data with seemingly unrelated regression analysis. The results of this research indicate that structural capital efficiency had a significant influence on return on assets, and asset growth. Thus, for Islamic banks in Indonesia, all non-human assets, including the standard operating procedures, storage of all data, structural procedures, governance and policies for decision-making had significant effects on return on assets, and asset growth. Islamic banks in Indonesia can achieve competitive advantages in terms of return on assets, and asset growth, because they have positive value added reflected in intellectual capital value consisting of human capital efficiency, structural capital efficiency and capital employee efficiency.

This paper aims to develop an integrated model designed to predict and explain a customer behavior intention use of s-commerce based on the concepts of customer experience (CE) and expectation confirmation model (ECM). This paper proposes a comprehensive model to synthesize the essence of CE and ECM to describe customer behavior intention use of s-commerce. The participants are from 311 users of s-commerce as the final sample. Structural equation modeling is applied to demonstrate the stability of the proposed model and the results of hypotheses testing. This paper finds that costumer experience significantly influenced perceived usefulness, expectation and satisfaction, while the perceived usefulness and expectation simultaneously influenced customer satisfaction. Expectation also significantly influences motivator of perceived usefulness. Meanwhile perceived usefulness and satisfaction both significantly influence behavior intention use of s-commerce directly. There are some limitations in this study which should be improved in the future. Extended ECM is evaluated in a country setting, which limits generalizations.

This study aims to determine the influence of information technology utilisation and the application of good governance principles on the quality of accounting information. The survey is an explanatory research intending to explain the causal relationships between variables through testing hypothe-ses. The analysis is used to determine the independent variables’ influence on the dependent variable. This research is conducted based on existing theories which were later developed into a research model designed to examine the effect of information technology utilisation and the application of good governance principles on the quality of accounting information. The study aims to re-view the quality of accounting information to answer research questions concerning the effect of in-formation technology utilisation and the application of principles of good governance on the quality of accounting information. The benefit of this research is that it contributes scientifically to financial accounting and public sector science and it attempts to solve the problems stakeholders face when implementing tasks related to the quality of accounting information. The study results state that the use of information technology affects the quality of accounting information, as does the application of good governance principles. This study’s implications will help raise awareness concerning the importance of integrity in the accounting reporting system in regional governments in Indonesia.

Regional autonomy is designed to increase the welfare of the community with the idea that regional government best understands what must be done in order to increase and improve human resources. The quality of human resources in a community can be a determining factor for the success of development initiatives in a region. Regional governments must be able to properly plan, to implement, and to evaluate regional budget allocations as they have direct impacts on regional gross regional domestic product (GRDP) as well as on measurable community welfare as measured by the Human Development Index (HDI). This study examines the relationship between government spending and human development in regional governments of Papua Province, Indonesia as measured by the HDI. A secondary analysis of government data and Human Development Index (HDI) data was conducted using structural equation modelling. The secondary analysis of regional government budget allocations and HDI data suggests that spending with the goal of improving the lives of community members seems to lead to an improvement of HDI. This study is focused on regional governments in one province of Indonesia. While its findings suggest that governments should make supporting human resources a priority if they hope to see improvement in HDI, similar studies should be conducted in other communities in order to see how different cultural or political settings affect the relationship between spending and HDI. This study adds to our understanding of development with its focus on Papua Province, an under-studied area in development research.

Maldistribution of skilled health workers between urban and rural area, especially pharmacist has become a global phenomenon. Not only the developing countries but also the developed country like the United States has been facing the same issue for a decades. Thus, many researchers have been trying to figure it out the reasons behind this occurrence. In their studies, most of the research-ers agreed that fresh graduates from pharmacy school were willing to work in the rural area. Therefore the primary aim of this study is to identify the important factors that can affect pharmacy stu-dents’ intention to work in rural area. Additionally, this study also tests the mediating effect of inter-est on the intention to work in the rural area of pharmacy students. A conceptual model is developed based on the two popular theories; namely theory of individual behavior and theory of interest. This model consists of three independent and one mediating and dependent variable. A quantitative ap-proach is used to test the hypotheses. With a structured questionnaire, this study is managed to get 675 students from different pharmacy schools. Multiple regression and Sobel tests are applied to test the direct and mediating effect. Results show that two out of three had a significant direct effect on pharmacy students’ intention to work in rural area. Similarly, a mediating effect also reveals the same. Based on the results, it is clear that predisposing variable is the most important for the phar-macy students’ interest to work in the rural area. The finding of this study, indeed, fills the paucity of the empirical evidence regarding pharmacy students’ working intention to the rural area, especial-ly in the Indonesian context. Based on the findings, this study provides several recommendations for the government as well as pharmacy curricula developer.

This study aims to analyze and provide empirical evidences on the effects of proactive market orientation (PMO) and management commitment to internal resource (MCIR) on export performance. The sample of this study includes the owners or leaders of handicraft exporter industry consisting of 72 respondents with a purposive random sampling in West Java, Indonesia. Data collection techniques are arranged by distributing questionnaires, interviewing, and recording documentation from the respondents. The data analysis uses the Structural Equation Model (SEM) based on Partial Least Square (PLS) with the tools of SPSS and SmartPLS statistical programs. The results show that the effect of proactive market orientation (PMO) on export performance (EP) was positive and significant. The effect of management commitment to internal resource (MCIR) on export performance was also positive and significant. MCIR has also a more considerable influence than PMO on ex-port performance. This research has implications for policy makers and creative industries in im-proving the export performance, especially handicraft industries in developing countries. Further-more, it is hoped that handicraft industries will consider the research findings in making business decisions and to improve their business success.

Industry 4.0 brings a new challenge for incumbent firms to anticipate new business model offered by emerging entries. The digital transformation is required by incumbent to develop innovation on product and service business model based on customer experience orientation. To support this transformation, strong digital leader is important to assure the development of this transformation. The study on the role of digital leadership on business model innovation and customer experience has not been explored, significantly, Hence, this research aims at assessing the role of digital leadership, whether it directly or indirectly influences the customer experience orientation in developing business model innovation. This study was conducted through survey to 88 senior leader respondents from Indonesia telecommunication firms, in which Smart-PLS application was used to analyze the data. The result show that digital leadership had direct and indirect impacts on customer experience orientation in developing business model innovation. The practical implications of these findings are recommended for the senior leader of management of telecommunications industries in In-donesia to strengthen digital leadership capability in conjunction with the development of business model innovation and customer experience orientation. Further research can be explored by expand-ing the sample, industry, statistical application and longitudinal study.

This study aimed to investigate the effect of management control system enabling with capabilities that can improve the performance of SMEs. This study was conducted among the managers of SMEs of local food products in Banten Province, Indonesia. The number of respondents in this study was 85 SME managers. This study used structural equation modeling as an analytical tool and PLS Smart software to process the data. The findings of this study show that there was a positive effect of the use of enabling management control system (MCS) on creativity; there was a positive and significant effect of the use of Enabling MCS on cost efficiency; there was a positive and significant effect of the use of Enabling MCS on performance; there was a positive and significant effect of creativity on innovation; there was a positive and significant effect of cost efficiency on performance; and finally there was a positive and significant effect of innovation on performance. The implication of this study is that it can provide a choice of control system for SME management, which up to now still uses conventional control system. The use of Enabling MCS can create a capability for the managers of SMEs of local food products to win the competition. This is due to the uniqueness of Enabling MCS that can increase creativity and also cost efficiency.