Trust in Procurement Decisions of New Zealand SMEs

The purpose of this chapter is to explore the role of trust or confidence through the managerial lens. The chapter aims to acquire empirical evidence regarding the importance of factors that play a role in fostering trust during procurement decision making exemplified through a New Zealand-owned company, ContainerCo. This exploratory study scrutinises trust as perceived by SME managers in the supply chain of logistics and procurement in New Zealand. It uses the repertory grid analysis and is based on two interviews conducted through the repertory grid technique, a semi-structured method. Although different in every company and country, trust plays a major role during the selection of suppliers. Factors such as reliability and value are regarded as the most important ones for choosing the right supplier in the case of ContainerCo.

Kajian Dugaan Praktik Kartel PT Garuda Indonesia, Tbk Mempengaruhi Pergerakan Harga Saham di BEI

ABSTRACT The purpose of this study was to determine the effect of the alleged cartel practices carried out by the airline PT Garuda Indonesia, Tbk, namely by the increasingly high price of airline tickets and how their impact on the stock price movement itself. This practice is not permitted in Indonesia and almost all countries in the world, but this becomes very dilemmatic in the current aviation business if the ticket price is not raised the company will bear substantial losses but on the other hand consumers are very disadvantaged and can sacrifice the country's economy if countries that depend heavily on air transportation such as Indonesia. Considering that PT Garuda Indonesia, Tbk is a state-owned company of the Republic of Indonesia which has been listed on the Indonesia Stock Exchange under the GIAA stock code, whether news of alleged cartel practices by GIAA could affect the public investors in the capital market in making a decision to make a selling or buying transaction on GIAA shares.Keywords: cartel practices, garuda indonesia, capital markets

THE ROLE OF INTERNAL FINANCING IN MEDIATING THE EFFECT OF MANAGERIAL OVERCONFIDENCE AND CORPORATE GOVERNANCE TOWARDS INVESTMENT EFFICIENCY

This study aims to examine empirically the factors that influence investment efficiency in State-Owned Enterprises on the Indonesia Stock Exchange. This study was tested with two independent variables are managerial overconfidence and corporate governance, intervening variable is internal financing. The object of this research is the state-owned company for the period 2011-2018. 10 companies as the sample using purposive sampling technique. The analysis used in this research is panel data regression analysis. The results of this study found that investment efficiency in state-owned enterprises in Indonesia is largely determined by managerial overconfidence bias. Managers who have an overconfidence seek more aggressive and risky ventures so that they invest excessively beyond optimal levels. Managerial overconfidence in a manager can also strengthen the choice of internal financing, especially in state-owned companies. However, investment efficiency in this study is not influenced by corporate governance and internal financing. Corporate governance has also proven to have no role in corporate funding decisions. The role of internal financing as mediation was not found in this study.

Assessment of health and social security agency participants proportion using hierarchical bayesian small area estimation

Data on the number of health insurance participants at the subdistrict level is crucial since it is strongly correlated with the availability of health service centers in the areas. This study’s primary purpose is to predict the proportion of health and social security participants of a state-owned company named Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS) in eleven subdistricts in Padang, Indonesia. The direct, ordinary least square, and hierarchical Bayesian for small area estimation (HB-SAE) methods were employed in obtaining the best estimator for the BPJS participants in these small areas. This study found that the HB-SAE method resulted in better estimation than two other methods since it has the smallest standard deviation value. The auxiliary variable age (percentage of individuals more than 50 years old) and the percentage of health complaints have a significant effect on the proportion of the number of BPJS participants based on the HB-SAE method.

Komparasi Pegadaian Syariah Dengan Pegadaian Konvensional Berdasarkan Hukum Indonesia

PT. Pegadaian (Persero) as a state-owned company engaged in pawning, has given birth to various breakthroughs in order to answer and meet the needs of the community. To answer these needs, PT. Pegadaian gave birth to a new subsidiary called Pegadaian Syariah as an alternative for Muslims who want to free themselves from the practice of usury and interest in conventional pawnshops. The difference between sharia and conventional pawning is in terms of the legal basis where sharia pawning is based on the Qur'an, Hadith, ijma, and the MUI Fatwa, while conventional pawning according to the Civil Code, conventional pawn contracts are only 1 while in rahn 2 contracts, the determination of days on conventional pawns is determined per 15 days, while in rahn (sharia) the period of 10 days is determined for conventional pawns up to 3 months, while on rahn based on existing calculations, in the case of taking the money from the pawn auction, if within one year it is not taken the rest of the money then becomes the property of the pawnshop, while in rahn if the remaining money from the auction proceeds is not taken it will be handed over to the Amil Zakat Agency. Keywords: Sharia pawnshop, conventional pawnshop, law, Indonesia Abstrak. PT. Pegadaian (Persero) sebagai perusahaan miliki negara yang bergerak dibidang gadai, telah melahirkan berbagai terobosan dalam rangka menjawab dan memenuhi kebutuhan masyarakat. Untuk menjawab kebutuhan tersebut, PT. Pegadaian (Persero) melahirkan anak perusahan baru yang bernama pegadaian syariah sebagai alternatif bagi umat Islam yang ingin membebaskan diridari praktik riba dan bunga yang ada pada pegadaian konvensional. Perbedaan gadai gadai syariah dan konvensional, yaitu ditinjau dari dasar hukumnya dimana gadai syariah berdasarkan Al-Qur'an, Hadist, ijma, dan Fatwa MUI, sedangkan gadai konvensioal menurut KUHPerdata, akad gadai konvensional hanya 1 sedangkan pada rahn 2 akad, penetapan hari pada gadai konvensional ditentukan per 15 hari sedangkan pada rahn (syariah) ditentukan jangka waktu per 10 hari pada gadai konvensional hingga 3 bulan sedangkan pada rahn berdasarkan perhitungan yang ada, dalam hal pengambilan uang hasil lelang gadai, jika dalam waktu satu tahun tidak diambil sisa uangnya maka menjadi milik pegadaian, sedangkan dalam rahn jika sisa uang dari pegadaian hasil lelang tidak diambil maka akan diserahkan kepada Badan Amil Zakat. Kata Kunci: Pegadaian syariah, Pegadaian konvensional, Hukum, Indonesia

Employee External Communication Behavior during the COVID-19 Pandemic Crisis: Case-study of a State-Owned Company

A crisis can trigger employees to engage in external communication behavior. However, the inconsistency of the findings of studies on megaphoning behavior suggests the relationship depends on the type of crisis. With the COVID-19 pandemic crisis, this study aims to examine the influence of employee-organization relations and symmetrical internal communication on employee external communication behavior. Data were collected from 400 employees of a state-owned company in Indonesia and analyzed using PLS-SEM. The result shows that good relations between employees and organization can encourage employees to stand up for the company, reduce employee’s intention to share negative communications, encourage employees to recognize crisis as a serious problem, can make employees feel more involved and less constrained in resolving the problems. Employees who feel that they could recognize the crisis tend to spread positive information and restraint from sharing negative information. Meanwhile, those who feel that they were involved in the crisis and less constrained in solving the problem do not influence their interest in spreading positive or negative information. The study finds that symmetrical communication between employees and their companies may encourage employees to spread positive information, but it did not affect their interest in disseminating negative information. Keywords: Employee-

Exploring leadership as catalyst for unlocking social capital in the survival of a state-owned company

Purpose: Social capital (SC) has been studied in economics, politics and organisations. Understanding SC can help the leadership of state-owned companies (SOC) foster quality relationships with multiple stakeholders. By 2019 the cost of corrupt relationships had reached R1 trillion in South Africa. The study develops and validates a model for SC underpinned by cooperative behaviours required by leadership from the perspective of multiple stakeholders. No literature exists when evaluating SC from a multiple stakeholder perspective in an SOC. The leadership of SOCs desperately needs to turn around current ineffective performance through mutually cooperative behaviours. SC found in quality relationships can contribute to SOC effectiveness.Design/methodology/approach: A sequential exploratory qualitative approach. Phase 1 collected data through focus groups and interviews for a deeper understanding and to develop a model. In phase 2 a Delphi survey determined the level of consensus by experts and reach validation. Responses were solicited by using purposive sampling from five stakeholder perspectives. Adapted grounded theory and qualitative content analysis provided the foundation for the strategy of enquiry.Findings/results: Multiple stakeholders want qualities such as trust to be present in their relationships with the SOC for SC to have value impact.Practical implications: The validated model of behaviours to adopt will significantly help the SOC leadership, who are the main catalyst for the success of the SOC.Originality/value: This study addresses a gap in literature and contributes to the scientific body of knowledge applicable to an SOC.

Shareholder use of CSR reports: an accountability perspective

Purpose This paper aims to investigate the extent of shareholder engagement and satisfaction with corporate social responsibility (CSR) reports of a Chinese-owned company compared to an Australian-owned company in the Australian mining industry. The study is motivated by the speed, extent and nature of Chinese foreign direct investment in Australia, the resulting negative social attitudes and the impact on the perceptions of a report’s credibility. Design/methodology/approach The authors conducted a survey of 202 minority shareholders of two Australian mining companies, one has a Chinese majority shareholder and the other an Australian majority shareholder. The responses highlight users’ comparative perceptions of corporate motivations for reporting, the level of perceived shareholder power over reporting decisions and the resulting propensity to read CSR reports. Findings The authors found that, contrary to decision-usefulness theory, which posits that users will read CSR reports only if they are deemed to be reliable, that perceptions of poor credibility and poor CSR performance actually result in a higher propensity to read the reports. This suggests that the minority shareholders of the Chinese acquired firm are using reports to monitor the level of corporate accountability. Originality/value The findings have implications for firms operating in politically or socially sensitive industries that are likely to use CSR reporting as a legitimising strategy. The paper also provides guidance to regulators in the provision of information, which is meaningful to minority shareholders.

Media Monitoring Model in Public Relations of BUMN (State-owned enterprises) Companies

Media monitoring is a form of Public Relations activity used in many companies, including the companies in Indonesia, to monitor mass media coverage and to find out current issues among the public. One of the companies that implement media monitoring activities in PT Perkebunan Nusantara (PTPN) X. PTPN X is a state-owned company engaged in the sugar and tobacco business in Indonesia. The purpose of this study is to describe the monitoring media model in the Public Relations of BUMN companies, namely PT Perkebunan Nusantara X Surabaya. In this study, the researcher used a qualitative descriptive approach through data collection by observation, interviews, and documentation. The theory used was the theory of Evaluation of Public Relations. One form of Evaluation of Public Relations is media monitoring. The results of this study found that the media monitoring model applied by PTPN X was a media monitoring model in normal conditions and the model during a crisis. This research is indispensable in the development of media monitoring practices and studies in Indonesia, especially for the Public Relations/Public Relations department.

Leader Humility and Employees’ Accountability During The Pandemic

One way of achieving work effectivity is by making sure employees show accountability. Accountability is becoming even more important during the pandemic, where organizations are forced make their employees work from home. This study aims to identify the process of how leaders and organizations can shape accountability. This research argues that leader humility may enhance employee’s perceived organizational support which eventually shaped employee’s accountability. This study was conducted toward 145 employees from a state-owned company in Jabodebek area via an online survey. This study finds (1) leader humility positively affect employee’s accountability; (2) leader humility positively affects perceived organizational support; (3) perceived organizational support positively affect employee’s accountability; (4) perceived organizational support significantly mediated the relationship between leader humility and accountability. The mediation model predicts 27% of accountability’s variance and is able to provide contribution to accountability’s studies that leader and organizational aspects are essentials in affecting accountability.