Jurnal Ekonomi dan Bisnis Airlangga

Front Matter Volume 34, No. 2, June-November 2024

Sulistya Rusgianto — 2024-11-30

THE INFLUENCE OF SERVANT LEADERSHIP ON FOLLOWERS’ CREATIVITY WITH CLIMATE FOR CREATIVITY AS MEDIATION

Tsamarah Dzubyanni Atmoko — 2024-11-30

Introduction: As a developing nation, Indonesia persists in its endeavors to boost national growth, including initiatives to support the creative industry through startup companies. This research aims to examine the impact of servant leadership on followers’ creativity, with climate for creativity as the mediating factor.

Methods: This research is a quantitative study using primary data obtained through a questionnaire survey from 178 employees working in 73 Indonesian startup companies. The sampling method was purposive sampling. The collected data were then processed and analysed using SEM-PLS.

Results: The results revealed the significance of climate for creativity as a full mediator in the relationship between servant leadership and followers’ creativity, meaning that servant leadership has an indirect influence on followers’ creativity through climate for creativity. These findings suggest that leaders who adopt servant leadership styles can enhance followers’ creativity through climate for creativity.

Conclusion and suggestion: This study found that servant leadership's impact on startup employees' creativity is fully mediated by the perceived climate for creativity. This implies that by fostering a climate supportive of creativity—through flexible work environments, recognition of creativity, and resource provision—servant leaders indirectly enhance employee creativity. Thus, when servant leaders cultivate a climate for creativity, it boosts the creativity of startup employees in their work.

DIGITAL BANKING ADOPTION, BANK SIZE, AND BANK PERFORMANCE IN INDONESIA

Rahmat Setiawan — 2024-11-30

Introduction: The adoption of technology has become prevalent in the banking sector. This research investigates the potential correlation between the implementation of digital banking adoption and the bank performance (Return on Assets and Operational Efficiency Rasio), while considering the factor of bank size.

Methods: This research utilizes panel data regression to assess the effect of digital banking adoption on the performance of banking firms. Additionally, it explores whether the bank size influences the strength of the relationship between the independent and dependent variables.

Results: Digital banking adoption (DBA) has a significant negative impacts Return on Assets (ROA) and has a significant positive effect on the Operational Efficiency Ratio (BOPO). The bank size weakens the negative impact of DBA on ROA; the bank size also weakens the positive impact of DBA on BOPO.

Conclusion and suggestion: This study demonstrates the occurrence of the profitability paradox and economies of scale in Indonesian banking companies. For decision-makers in banking companies, these findings can be considered when determining the optimal company size to enhance digital banking adoption and improve banking performance.

DETERMINANTS OF INCLUSIVE GROWTH IN G20 COUNTRIES WITH GENDER INEQUALITY INDEX AS A MODERATING VARIABLE

Aji Binawan Putra — 2024-11-30

Introduction: Inclusive growth involves substantial discussions aimed at fostering inclusivity in global society. This research is important because it seeks to explain inclusive growth driven by investment, government spending, and trade openness, with the gender inequality index as a moderating variable in G20 countries over the period from 2007 to 2021.

Methods: This research is a quantitative study using Ordinary Least Squares (OLS) regression and Moderated Regression Analysis methods (MRA).

Results: The findings from the three variables included in this study indicate that two variables can influence inclusive growth, namely government spending and trade openness, while the investment variable does not affect inclusive growth.

Conclusion and suggestion: This is due to the fact that G20 countries have not been able to realize the impact of investment rates on inclusive growth. In addition, the gender inequality index is capable of moderating the influence of government spending on inclusive growth. Thus, in creating inclusive growth, the government must be able to allocate its funds wisely and equitably to all elements of society, both men and women.

INTENTION TO USE M-WALLET APPLICATION: AN ADJUSTED MEASUREMENT OF FACILITATING CONDITIONS

Hendrick Hernando — 2024-11-30

Introduction: M-wallets have become the most prominent financial technology in Indonesia. Thus, discerning the behavioral intention of using m-wallet apps and the related determinants is essential. This study proposes an extended indicator for facilitating conditions to fill the identified gap in previous studies. The influence of facilitating conditions on usage intention is also examined.

Methods: This study employed PLS-SEM to validate our proposed indicator and research hypothesis. 122 m-wallet users in Madiun participated as the research respondents. Data from the respondents was analyzed through reflective and structural assessments.

Results: The findings identified that the QR code policy was valid and reliable as an indicator for facilitating conditions. Through the structural model assessment, the impact of facilitating conditions on usage intention was found to be significant.

Conclusion and suggestion: As a novel contribution, this study has provided the QR code policy as an extended indicator. In this situation, the government plays a consequential role in increasing m-wallet penetration. Moreover, m-wallet providers are suggested to take into consideration facilitating conditions, including user guidance and smartphone compatibility.

RELIGIOUSITY, LOCATION, AND ISLAMIC WORK PERFORMANCE: THE CONNECTION BETWEEN INDONESIAN AND MALAYSIAN EMPLOYEES

A'rasy Fahrullah — 2024-11-30

Introduction: In today's dynamic era, tight competition urges a comprehensive analysis of company success factors with an emphasis on high-quality human resources, employee performance, religiosity, and workplace location's impact on performance.

Methods: This explanatory research uses a quantitative approach, surveying 259 urban Muslim employees in Indonesia and Malaysia online from May to August 2023 via random sampling and SEM analysis.

Results: Using WarpPLS, this study found that work location significantly affects both religiosity and Islamic work performance, confirming H1 with a coefficient of 0.502 (p-value <0.001) and H2 with a coefficient of 0.573 (p-value <0.001). However, H3 is rejected, as religiosity does not significantly affect Islamic work performance (coefficient 0.082, p-value 0.245).

Conclusion and suggestion: Work location significantly affects employee religiosity and Islamic work performance, with urban and closer locations enhancing these aspects. However, religiosity does not directly impact performance, indicating a complex relationship. Managers should consider location in recruitment, support religious practices, and investigate these dynamics while integrating religious values in training programs.

DETERMINATION OF DISCLOSURE OF ISLAMIC SOCIAL REPORTS AT SHARIA BANK IN INDONESIA

Ayatur Muhammad Faiz — 2024-11-30

Introduction: This study aims to determine the effect of profitability, bank size, bank age, debt to asset ratio, and syirkah funds to partially and simultaneously reveal Islamic Social Reporting on Islamic banks in Indonesia.

Methods: This study uses a quantitative method with panel data regression analysis with EViews 12. The population used in this study is Islamic banks in Indonesia.

Results: This study partially shows that profitability, Islamic bank size, and debt to asset ratio are not significant in Islamic Social Reporting disclosure. Meanwhile, the age of Islamic banks and temporary syirkah funds has a positive and significant effect on the disclosure of Islamic Social Reporting. Simultaneously, profitability, bank size, bank age, debt-to-asset ratio, and temporary syirkah funds have a significant positive effect on the disclosure of Islamic Social Reporting in Islamic banks in Indonesia in 2016-2021.

Conclusion and suggestion: This study reveals that Islamic Social Reporting (ISR) disclosure in Indonesian Islamic banks is significantly influenced by bank age and temporary shariah funds, rather than profitability, size, or debt ratio. The findings highlight the importance of long-term commitment and stakeholder engagement in enhancing ISR practices, offering valuable insights for policymakers and stakeholders.

THE INFLUENCE OF GREEN ACCOUNTING, CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY ON FIRM VALUE

Ake Dahlia — 2024-11-30

Introduction: This study aims to determine the effect of green accounting, corporate social responsibility and profitability on firm value.

Methods: This research uses a quantitative method with a descriptive approach, with a research sample of 18 energy sector companies listed on the Indonesia Stock Exchange between 2021-2023. The data used is secondary data. This research uses Eviews 8 software to test panel data regression.

Results: The results showed that green accounting and CSR have no effect on firm value. However, profitability has a significant effect on firm value, which shows that higher profitability will increase shareholder wealth and company valuation.

Conclusion and suggestion: This study concludes that although profitability plays an important role in determining firm value, currently green accounting and CSR disclosure have no significant effect on firm value due to data limitations and investor priorities. Future research should be expanded to include additional factors, such as environmental performance and investment decisions, and increase the sample size for broader generalization. Companies are advised to increase transparency and standardization in environmental reporting to build stakeholder trust and strengthen their market position.

BANK COMPETITION AND FINANCIAL STABILITY IN NIGERIA

Mayowa Ebenezer Ariyibi — 2024-11-30

Introduction: The study examined the impact of bank competition on the financial stability of selected deposit money banks in Nigeria. The study employed panel data (secondary data) that was collected from 2019 to 2023 (both years inclusive).

Methods: The panel regression analysis was employed to determine the relationship between the outcome variables and explanatory variable, taking decisions from the Huasman test.

Results The findings of the study from objective one revealed that the Herfindahl-Hirchman loan Index has a positive significant effect on capital adequacy ratio along with diversification ratio and bank size, which are control variables. It also has a negative significant effect on capital adequacy ratio. Objective two revealed that the Herfindahl-Hirchman Deposit Index diversification ratio and bank size have a positive significant effect on non-performing loans in Nigeria.

Conclusion and suggestion: Based on the findings, it therefore recommended that deposit money banks should diversify their loan portfolio across sectors and customer types to mitigate a concentration risk in the deposit money banks. Reallocating capital from less diversified or larger loans to smaller, more diversified segments of the portfolio would spur the level of competition accuracy of the banks.

DIGITAL WALLET TRANSACTIONS: INSIGHT FROM ISLAMIC ECONOMIC AND LEGAL PERSPECTIVE

Asma Munifatussaidah — 2024-11-30

Introduction: This paper aims to analyze the contemporary problems surrounding digital wallet transactions from the perspective of Islamic economic law and discuss sharia compliance in the issuance and use of digital wallets, the validity of top-up transactions, and the permissibility of benefits such as cashback within the framework of Islamic jurisprudence.

Methods: This paper uses library research methods to collect, explain and analyze data related to digital wallet transactions in the context of Islamic economic law. This has been done using a normative approach and Islamic economic law, supported by descriptive analysis of the previous research, fatwas from the Indonesian Ulema Council (DSN-MUI), and related regulations from Bank Indonesia.

Results: The result of this discussion is that Islamic principles allow financial transactions as long as they do not involve prohibited elements such as usury, uncertainty (gharar), maysir, and israf. Digital wallets can fulfill Islamic principles if they comply with the regulations set by Islamic law.

Conclusion and suggestion: The DSN-MUI fatwa provides guidance on the use of electronic money in accordance with sharia, ensuring that digital wallet transactions are in line with Islamic legal and ethical standards. Digital wallet transactions can use various contracts, such as wadiah and qardh contracts, although there are differences of opinion among scholars regarding their validity. The compliance of digital wallets with sharia must differentiate between conventional electronic wallets and electronic wallets that comply with Sharia.

INVESTMENT IN INTELLECTUAL CAPITAL AND ITS IMPACT ON THE PROFITABILITY OF ISLAMIC BANKS IN INDONESIA

Trisnaning Setya Sutjipto — 2024-11-30

Introduction: Islamic banks in Indonesia show significant potential, although their current asset contribution is only 1,9 percent of total Islamic banking asset globally. This is quite a contrast to Indonesia’s title as the country with largest Muslim population in the world, as well as its ambition to become the center of the global sharia economy. One of the efforts that can be made to achieve this goal is by increasing the assets of Indonesian Islamic banks through enhancing their profitability.

Methods: This research uses secondary data from eight Sharia Commercial Banks (BUS) in the 2014-2022 period. A static panel regression model is used to examine the impact of Intellectual Capital on the profitability of BUS using Stata 17 application. The dependent variable is profitability, while the independent variables are IC and its components (Human Capital, Structural Capital, Customer Equity, and Relational Capital). The control variables consist of the ratio of total equity to total assets (EQA), non-performing financing (NPF), inflation, and the COVID-19 phenomenon.

Results: This study analyzes the impact of intellectual capital (IC) on the profitability of Islamic banks in Indonesia. The results show that IC has a significant positive effect on profitability. The components of human capital (HC) and capital employed (CE) contribute positively, while structural capital (SC) and relational capital (RC) do not have a significant impact.

Conclusion and suggestion: Findings of this research indicate that improving human resource competence and optimizing equity capital can enhance the profitability of Islamic banks, whereas investments in organizational structure, technology, and promotion do not yield significant effects. This study also provides policy implications for regulators and bank management in more effectively allocating IC investments. Additionally, the research suggests that Islamic banks should focus on digitalization and financial innovation to strengthen their performance.