TIJAB (The International Journal of Applied Business)

Back Matter Vol. 8 No. 1, 2024

2024-03-25T09:46:46+00:00

Back Matter Vol. 7 No. 2, 2023

Front Matter Vol. 8 No. 1, 2024

2024-03-25T10:51:31+00:00

Front Matter Vol. 8 No. 1, 2024

Activity-Based Costing Implementation for Capturing the Complexity of Manufacturing Process: The Case of CV XYZ

2023-07-17T11:04:11+00:00

Background: In manufacturing companies, determining the cost of goods manufactured is more complex than in service and trading companies, considering that the production cost structure consists of direct raw material costs, direct labor costs, and factory overhead. In identifying the imposition of three components of production costs, the most difficult component to trace is factory overhead because, in determining factory overhead, various approaches and assumptions must be chosen as cost drivers, so it needs the right approach and assumptions for CV XYZ to achieve company performance.

Objective: This study seeks to analyze the intricacies of factory overhead calculations under activity-based costing in comparison to the traditional plantwide rate approach used by CV XYZ, which utilizes production units as cost drivers.

Method: The method used in this research is a case study on CV XYZ with interviews and documentation as data collection techniques. Interviews were conducted with accounting staff and heads of accounting departments through unstructured interviews. Documentation is carried out based on 2020 financial information.

Results: The results of the analysis explain that the calculation of factory overhead applied, production costs, cost of goods manufactured (COGM), and cost of goods sold (COGS) calculated using the plantwide rate approach (production units as cost drivers) shows undercosts when compared to the activity-based costing system, so that the recognized profit is greater than it should be. The implications of undercosts cause information on the income statement to be unreliable, considering that the company has a variety of products and activities related to the production process

Conclusion: The activity-based costing system uses more than one cost driver; thus, the activity-based costing system is a more accurate method to be applied by CV XYZ, which has product diversification.

Keywords: Factory overhead applied, plantwide rate, activity-based costing system, profit and loss.

The Mediating Role of Brand Trust on the Effect of Brand Ambassador to Purchase Decision

2023-09-23T09:30:45+00:00

Background: Beauty products from South Korea, such as skincare and makeup, are often considered as having higher quality and providing better results than local beauty products. With technological advances that continue to develop, obtaining skincare product is currently easier and more accessible to young people.

Objective: This research aims to examine the factors that influence purchasing decisions in regards to brand trust as a mediator in Korean skincare products.

Method: The sampling employed a purposive sampling method to a population in Batam City who aged over 17 years old and used skincare products made in South Korea. This research used Partial Least Square Structural Equation Modeling (PLS-SEM) for hypothesis testing.

Results: The research results indicate that brand trust plays an important role in mediating the relationship between brand ambassadors, brand awareness, and price on purchasing decisions. Brand image, brand awareness, and price directly and indirectly influence purchasing decisions. Meanwhile, brand ambassadors only indirectly influence purchasing decisions through brand trust.

Keywords: Purchase Decision; Brand Trust; Brand Ambassador; Brand Awareness; Korean Skincare

Factors Affecting Employee Performance in Manufacturing Companies: Empirical Studies in Batam City

2023-06-05T17:29:58+00:00

Background: The progress of a company is greatly influenced on the performance of its employees working in the company. In this case, the performance of each employee is influenced by several factors. Self-efficacy, organizational support, and good management skill are the aspects which define employee performance's quality.

Objective: The current field study conducted by staffing researchers in Batam City, shows that employee performance is a very important aspect for increasing productivity and business progress. Employees who can demonstrate knowledge, technical skills, creativity, and organizational experience are very important since they are seen as productive assets which can improve company's performance as well as company's reputation.

Method: This study was conducted on 270 employees in manufacturing companies in Panbil Area, Batam, Indonesia. This study used Smart PLS 3.0 with multiple linear regression to examine the factors that affect employee performance.

Results: This study found that the results of motivation; transformational leadership; organizational culture; work discipline; job performance; and employee performance have a significant influence on employee performance. The five independent variables have a significant effect on employee performance simultaneously.

Conclusion: Based on the results of this research study, the researcher found that every company will always develop employee performance to achieve company goals. Human resource management needs to apply effective leadership and in accordance with the circumstances in the company. Not only leadership, work environment conditions and motivation, suitable job description will affect employee performance. Working environment conditions that can motivate employees to work will certainly develop employee performance.

Keywords: motivation; transformational leadership; organizational culture; work discipline; job performance; employee performance

Is an "Ž Affiliate Marketer a Decent Work for Generation Z in Indonesia?"Ž

2024-01-25T08:43:23+00:00

Background: Affiliate marketers have grown significantly as they serve as promoters, connecting e-commerce platforms with social media audiences and providing profitable income opportunities.

Objective: This study assesses the alignment between affiliate marketing practices in Indonesia and the decent work indicator as defined by the International Labor Organization (ILO). Additionally, the study aims to compare respondents' income before and after engaging in affiliate marketing.

Method: This study employed random sampling to select a sample of 25 affiliate marketers from the Jabodetabek region in Indonesia. Participants responded to 23 questions developed based on the 11 Decent Work Indicators established by the ILO, utilizing a 1 to 4 ordinal scale. The research utilized k-nearest neighbors clustering analysis to categorize respondents into groups aligning with the ILO's decent work indicators. To assess changes in respondents' income, paired Wilcoxon tests were employed.

Results: Exploratory data analysis indicates that Indicators 1 (Employment opportunities) and 7 (Equal opportunity and treatment in employment) align well with ILO's indicators. Cluster analysis confirms that Indicators 1 and 7 share a high-performance group. In contrast, Indicators 6 (Stability and security of work) and 9 (Social security) exhibit the lowest alignment. There is no statistically significant income difference before and after becoming affiliate marketers.

Conclusion: Exploratory data analysis indicates that Indicators 1 (Employment opportunities) and 7 (Equal opportunity and treatment in employment) align well with ILO's indicators. Cluster analysis confirms that Indicators 1 and 7 share a high-performance group. In contrast, Indicators 6 (Stability and security of work) and 9 (Social security) exhibit the lowest alignment. There is no statistically significant income difference before and after becoming affiliate marketers.

Keywords: Affiliate marketing, Decent work indicators, International Labor Organization, Social security

The Trend of Corporate Social Responsibility Spending by Public Sector Organisations: Evidence from Water Supply and Sanitation Authority in Tanzania

2024-02-27T20:08:13+00:00

Background: Corporate Social Responsibility (CSR) has gained prominence as organisations increasingly recognise their role in contributing to social and environmental well-being. This study focuses on the CSR spending trends of Public Water Supply and Sanitation Authorities (WSSAs) in Tanzania, shedding light on their commitment to sustainable development through social and environmental initiatives.

Objective: The study aim was to assess the trends of CSR spending by WSSAs in Tanzania over a five-year period (2015-2019). Specifically, the study aims to identify areas of CSR investment and assess the distribution of financial resources among various CSR activities undertaken by WSSAs.

Method: Secondary data from 114 WSSAs were analysed using descriptive methods, specifically the line graphs to show CSR spending trends, and paired t-tests gauged significant changes over the five years.

Results: The study finding reveals a gradual increase in CSR spending by WSSAs in Tanzania from 2015 to 2019. This upward trend indicates a sustained dedication to fulfil social and environmental responsibilities, contributing to the broader goal of sustainable development. The study also indicates a preference for directing CSR resources towards social-oriented activities. Notably, the highest spending was observed in local educational programmes and health services, while the lowest spending was observed on sports and cultural festivals.

Conclusion: The study emphasises fostering policies to encourage ongoing CSR spending by WSSAs, especially in impactful education and health areas. Collaborative frameworks with local communities can address social and environmental challenges, aligning initiatives with community needs for holistic regional development.

Keywords: Corporate social responsibility spending, Public sector organisations, Tanzania

Business Model for Small-Scale Artisan Tea Family Business

2024-03-07T09:44:23+00:00

Background: Tea stands as one of Indonesia's primary plantation commodities. The demand for tea in the domestic market is currently experiencing positive growth, reflecting shifts in consumer lifestyles and an increased interest in health products. Among the varieties of processed tea available, artisan tea stands out for its superior quality and distinctive characteristics. CV BMB, a family-owned small-scale enterprise, specializes in the development of various artisan tea products. This startup has received support from the startup incubation program provided by the Start Up-Business Development and Incubation Agency of Universitas Airlangga and the Ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia. Given its niche market and unique business management approach based on familial relationships, this company presents an intriguing case for analyzing its business model.

Objective: This research aims to analyze the business model and competitive strategies of CV BMB, to enable it to compete effectively and sustain growth in a competitive market.

Method: This research was conducted using a phenomenological approach. The analysis of CV BMB's artisan tea business model was carried out using the business model canvas. Subsequently, Porter's Five Forces analysis was conducted to obtain suitable competitive strategies for small-scale family businesses producing artisan tea.

Results: Porter's Five Forces analysis successfully identified competitive elements within the artisan tea market. Additionally, nine elements in the business canvas model have been identified, contributing to the competitive strategy and development of CV BMB as a small-scale family business producing artisan tea. Three alternative strategies for BMB's business development have been outlined: market expansion, product innovation and development, and management enhancement.

Conclusion: The uniqueness of BMB's artisanal tea products, and the market niche that is still open, is an opportunity for future development. As a family business company, the strategy implementation of business model analysis is expected to drive BMB's positive growth.

Keywords: artisan tea; family business; business model canvas.

Navigating the Digital Marketplace: A Comprehensive Review of E-Commerce Trends, Challenges, and Innovations

2024-02-28T10:08:38+00:00

Background: Comprehensive exploration of e-commerce landscape; Insights drawn from diverse scholarly sources across disciplines.

Objective: Examine key themes, including COVID-19 impact, consumer behavior, business models, regulatory challenges, security, privacy, opportunities, and future trends in digital commerce.

Method: The methodology involved a comprehensive literature review spanning various disciplines to explore e-commerce. Scholarly sources were gathered from academic databases and journals, focusing on key themes like the COVID-19 impact, consumer behavior, business models, regulatory challenges, security, privacy, opportunities, and future trends. Data analysis identified patterns and trends, with findings organized into distinct sections. Synthesizing and interpreting the results within the e-commerce context, along with peer feedback, ensured the study's rigor and credibility.

Results: Uncover sustained shift in consumer preferences influenced by the pandemic; Provide insights into strategic approaches adopted by businesses in the digital marketplace.

Conclusion: Anticipate future e-commerce trajectory, discussing emerging trends like metaverse integration, AI, augmented reality shopping, voice commerce, and online-offline convergence; Serve as a guide for businesses navigating challenges, seizing opportunities, and aligning with emerging trends; Offer a comprehensive understanding of the dynamic nature of e-commerce in the digital age.

Keywords: Artificial Intelligence; Business; E-Commerce; Marketing.

Agent Banking, Mobile Money Operation and Financial Inclusion in Nigeria: Supply Side Perspective

2023-08-18T10:32:23+00:00

Background: The inability to achieve optimum financial inclusion in Nigeria has necessitated the review of various policies and instruments meant to reduce the level of financial exclusion.

Objective: Hence this study investigates the impact of agent banking and mobile money operation on financial inclusion in Nigeria, focusing on the supply side.

Method: Descriptive research design was adopted and secondary data ranging from 2013 to 2021 were obtained from the World Bank Global Financial database and e-payment statistics of the Central Bank of Nigeria. Ordinary least squares repression was used to analyse the data.

Results: Findings revealed that at 5% significance level, point-of-sale and mobile money operations have a positive impact on financial inclusion while web/internet banking plays a limited role in achieving financial inclusion.

Conclusion: The study concluded that both agent banking and mobile money operations impact on financial inclusion in Nigeria; the study, therefore, recommends that more off-site automated teller machine and licensed agents should be encouraged to cater for the rural residents and ultimately improve financial inclusion.

Keywords: Agent Banking, Financial inclusion, Mobile Money Operation