Evaluation of Bank Innovation Efficiency with Data Envelopment Analysis: From the Perspective of Uncovering the Black Box between Input and Output

The evaluation of corporation operation efficiency (especially innovation efficiency) has been always a hot topic. The currently popular evaluation methods are data envelopment analysis (DEA) and its improved methods. However, these methods have the following problems: the production process is regarded as a black box, and the actual production relationship between input and output is not analyzed. To solve these problems: (1) the black box theory and production function theory are introduced to uncover the black box of input and output; (2) regression models are used to alleviate the multicollinearity problem of inputs, and the most appropriate model of production relationship is selected; and (3) the results of the production function are compared with the results of the efficiency evaluation from multiple perspectives. Taking rural commercial banks in China as examples to evaluate their innovation efficiency, this article shows the following: (1) with the black box theory and production function theory, the staff, equipment, and intermediate business cost are suitable as innovation input variables, and intermediate business income is suitable as an innovation output variable; (2) the main challenges faced by rural commercial banks are reducing the reliance on human capital investment, strengthening technological innovation, and improving the efficiency of intermediate business cost management, which is hard to reveal with traditional DEA. The method proposed in this article provides an applicable reference for improving DEA method analysis.

Evaluating Starting a Business Indicators Innovation in the World

Since 2003, the World Bank has produced an annual report ranking economies based on ease of doing business score. However, little is known whether the improvements made by evaluated economies on starting business indicators are statistically significant as claimed by the World Bank. This study aims to evaluate the extent to which starting business indicators were improved in 145 economies evaluated. Indicators assessed are score-starting a business (SBS), starting a business - procedures -men (SBPM), Starting a business –time-men (SBTM), Starting a Business - Cost - Men (SBCM), starting a business - procedures - women (SBPW), starting a business - Time - Women (SBTW), Starting a Business - Cost - Women (SBCW), and Starting a Business - Paid-in Minimum capital (SBPMC). This study used secondary quantitative data retrieved from the database of the World Bank for the 2004 and 2020 periods. The sample size was made by 145 economies. Wilcoxon-sign-rank-test-paired-sample was computed using R programming environment. The results of the Wilcoxon-sign-rank-test-paired-sample indicated that the mean differences are statistically different from zero for all indicators except evaluated. This means economies evaluated improved those indicators for 2020 compared to 2004. The study’s findings provide clear insight to policymakers regarding innovations made on the efforts of ease of doing business improvement. Better use of the findings of this study would lead to reducing corruption and increasing formal business, increasing the number of newly registered businesses, generating an increase in business opportunities of starting a new business, and increasing the productivity of companies. This study evaluated whether business regulatory implemented regarding starting a business was statically significant. Future research should be conducted to test empirically the significance of implemented procedures related to other indicators evaluated in doing business reports. This research is novel by testing empirically innovations made in 145 world economies on starting business requirements.

Migration Issues in Cloud Computing

Cloud computing rules in the new digital transformation world and gets wide acceptance in the field of business. The cloud can solve many problems like scalability of the business, flexibility of the business, cost and performance that may come across while running an enterprise. In fact, by digital transformation, fixed costs may get reduced, a more flexible allocation of resources is possible, faster development of the enterprise is resulted, worldwide reach is through the cloud highly appreciable, a safer change control process, and faster time-to-market with objectively better products. Even though it promises many benefits, it is not an easy task to migrate to cloud platform from a current conventional business platform. Cloud migration introduces its own issues. While looking for migrating business from on-premises to cloud, many challenges should be kept in mind for successful migration. Keywords: Cloud migration, digital transformation

DIRECT FERTILIZER SUBSIDIES ON PRODUCTION AND HOUSEHOLD INCOME IN INDONESIA

This research aims to analyze the effect of fertilizer subsidies on the production and household income of rice farming in Indonesia using the 2017 crops business cost structure survey data. Utilizing the Ordinary Least Square (OLS) method, this research shows that rice farming households that received fertilizer subsidies have higher production and income than households that did not receive subsidies. Simultaneously, in the Two-Stage Least Square (TSLS) method, the usage of the ownership status of a household residential building as an instrument for the fertilizer subsidy variable is considered inaccurate so that it cannot answer the research objectives.

PENGEMBANGAN SUMBER DAYA MANUSIA PERTANIAN PADA ERA DISRUPSI: UPAYA MENDUKUNG AGRIBISNIS INKLUSIF

<p>Inclusive and sustainable agribusiness development in the disruption era requires fundamental adaptation. Major changes in community’s activities take place from the real world to virtual activities. One of the urgent needs in inclusive and sustainable agribusiness development is agricultural human resources able to anticipate changes and successfully adapt to those changes. This paper aims to explore changes in the agribusiness order, challenges in the extension system and agricultural human resource development going forward. Scientific review analysis shows that there are physical business cost savings, open and direct new markets, development of internet-based online shop services with smarter, easier, faster, more efficient, and more accurate transaction processes. The agribusiness system requires a new management system with more competitive human resources capacity. Three instruments for developing agricultural human resources are: (1) prioritizing skill improvement and providing infrastructure for information and communication technology (ICT), (2) capability of extension workers and researchers in creating, socializing and implementing inclusive technology with digital literacy, (3) training the farmers with ICT-based production skills, building partnerships, and accessing big data and information in accordance with their current. Accelerating instrument operations needs champions or youth driving agent.</p>

THE IMPACT OF THE MILITARY EXPENDITURE AND SECURITY EXPENDITURE STRUCTURE ON THE SECURITY STABILITY

<p>The structure of defense spending in Indonesia State Budget consists of three types of spending, which are routine expenditure, goods expenditure, and capital expenditure. It shows the changes in consumption expenditure contribution, direct investment expenditure, and indirect investment from the government. According to The Global Competitiveness Report 2016-2017, Indonesia presents a low level of security stability among 138 countries. Due to the terrorism threat, Indonesia is ranked 115 (Global Competitive Index or GCI=4,2) for business cost, at the 102nd ranking (GCI=3,9) for the business cost caused by crime and violence, and 108th ranking (GCI=4,1) for organized crime. This study aims to examine the impact of military expenditure on security stability in Indonesia. The analytical method used in this study is explanatory, it aims to explain the causal relationship between variables and hypothesis testing. This study employs the time series data with per semester data series through 2000-2018. The research model is formulated as a recursive linear model in the form of a Cobb-Douglas production function and analyzed using multiple linear regression analysis with the Ordinary Least Square method. The result reveals that both military expenditure and security expenditure have impacted simultaneously on security stability. The integration of all components of military expenditure synergistically can increase Security Stability. The components of spending that have a partially significant positive effect on Security Stability are expenditures on goods and capital expenditures.</p>

Design of a Near Field Communication-Enabled Points Collection Application System

Nowadays, users collect points by stickers after they purchase products. However, to issue stickers and to exchange points are inconvenient to store staffs and users. In addition, the traditional way for points collection increases the business cost because of additional cards and stickers. In this paper, we propose a novel, practical and integrated application system to resolve above issues namely NFC-enabled Point Collection Application System (NPCAS). NPCAS mainly consists of three subsystems including user-side APP, store-side APP and backend management system. The user-side APP let users to quickly complete points management, for instance, they can accumulate points by communicating with the store-side APP through Near Field Communication (NFC) technique. The store-side APP calculates the points of each transaction and updates them to the backend management system. Then, the users can inquire their current points, exchange details, exchangeable commodities and so on. Android operating system is the mainstream on smart phones so that the Android-based APPs attract a lot of attention. Accordingly, we develop both APPs based on Java, XML, Android Software Development Kit (SDK) and Android Studio. The backend management system is built by Apache server, PHP module, PHP files and MySQL database. The format that we used on information exchange between backend management system and both APPs is JavaScript Object Notation (JSON). In a word, NPCAS greatly simplifies the procedures of points collection and management.

ANALISIS USAHA IKAN HIAS AIR TAWAR DI KOTA JAMBI

Ornamental fish is a fish that has a distinctive shape, color and character so as to create an aquarium atmosphere that supports spatial layout and is able to provide a peaceful atmosphere. The purpose of this study was to determine the description of ornamental fish business and analyze the feasibility of ornamental fish business in Jambi City. The qualitative method is used to describe descriptively the general description of the location of the study and the characteristics of ornamental fish farmers, while the quantitative method uses the Analysis of Income and Revenue of ornamental fish business, cost analysis, income analysis and cost balance (R/C Ratio), Net Benefits - Cost Ratios (Net B/C), and institutionally descriptive for the betta fish, guppy and botia ornamental fish business. Overall, the general description of ornamental fish farming business in Jambi City is conducted conventionally. The average R/C ratio of the Betta ornamental fish business is 2.60, guppy is 2.02 and botia is 1.22. The highest average NPV in the betta ornamental fish in the mid-scale farming business is Rp. 60,745,160.71, guppy on a large scale is Rp. 31,385,065.48, and botia on a large scale with a value of Rp. 78,034,144.35. Overall, this ornamental fish business has an NPV value of> 0. The ornamental fish business in Jambi City is feasible to run and develop, betta ornamental fish business on a small scale with an average B/C Ratio of 1.15 and medium with an average value of average 1.60, guppy on a small scale with an average value of 1.02, and botia on a medium scale with an average value of 1.00 and large with a value of an average of 1.22. Keywords: Ornamental Fish, Jambi City.