Exploring the Existence of Innovative Work Behavior among Government Employee: Have Been There?

Introduction/Main Objectives: This study aims to determine the existence of innovative work behavior ecosystems for Indonesia’s government employees Background problems: The quality of individual employees partially determines the quality of the organization. The abilities of the different employees who work in the same system will undoubtedly deliver the government employee and possibly produce results which are less than were expected. Novelty: The previous studies have examined innovative work behavior, focusing on the external factors and ignoring the internal factors of individual traits. This study focused on investigating the interrelationship among the factors that will be affected by innovative behavior, especially in government employees in Indonesia. Methods: This study examines the relationship among these variables using structural equation modeling (SEM) with LISREL 8.8 as the statistical tool. Finding/Result: This study found that transforma­tional leadership and work engagement positively influence innovative work behavior. Unexpectedly, this research indicates an insignificant relationship between organizational justice and innovative work behavior among government employees. Besides, this study also found that transformational leadership and organizational justice have an impact on work engagement. Conclusion: These findings provide managerial implications about the need to strengthen employees’ innovative work behavior to ensure the organization’s continuity. Additionally, the results prove that innovative work behavior by government employees is supported by government’s role such as the style of leadership and work engagement.

Does Institutional Quality Matter in the Relationship Between Competition and Bank Stability? Evidence from Asia

Introduction/Main Objectives: This study aims to investigate whether competition impacts bank stability. Furthermore, the study also analyzes the role of institutional quality in a country, such as voice and accountability, political stability, government effectiveness, regulatory quality, the rule of law, and control of corruption, forming the effect of competition on bank stability. Background Problem: Analysis of the relationship between competition and bank stability has been at the center of academic and policy debate. However, the theoretical and empirical research has not concluded whether bank competition leads to more or fewer stable banks. Novelty: We consider institutional quality's role in mitigating the negative impact of competition on bank stability, which has mainly been under-elaborated in prior studies, particularly in using measures from The World Bank’s Worldwide Governance Indicators, which measure how the institutions of each country influence bankers’ and the people's behavior, as part of the cultural system. Research Methods: Using a sample of 427 Asian commercial banks from 2011 to 2019, we employ the generalized method of moments (GMM) estimator and consider loan growth and the cost to income ratio as instrumental variables. Findings/Results: We find robust evidence that competition erodes bank stability. Besides, better institutional quality, especially government effectiveness, regulatory quality, the rule of law, and corruption control in each country are important aspects that promote bank stability and mitigate the negative impact of competition on bank stability. Conclusion: Competition has a negative impact on bank stability. Meanwhile, the quality of institutions can both promote bank stability and mitigate this negative relationship.

The Study of Mangrove Ecosystems’ Services Valuation in Semarang City

Introduction/Main Objectives: This study estimates how much economic value will be lost from contact activities within the coastal areas in the research location. Background Problems: The area of Semarang City has flood and tidal problems, the damage to the mangrove forests in Semarang City began with the boom in shrimp farming between 1980 and 1990. Hopefully, this valuation can provide an overview of the current health of the ecosystem and become the basis for a mangrove management strategy in the future. Novelty: The novelty of this study is that it uses a sharper satellite (Image Pleades Resolution 0.5 m) to calculate the mangrove area in the research location. Research Methods: This research uses a total economic valuation, an estimation of the mangrove’s carbon stock and heavy metals, the replacement cost to prevent tidal flooding, and the willingness to pay. Findings/Results: We find that the existing economic value in the study area is very large and should be preserved for conservation. Conclusion: The environment cannot produce something instantly, but it needs to be preserved as a balance to nature.

The Role of University-Based Incubators in Social Entrepreneurship’s Development: The Capability Approach as an Evaluative Framework

Introduction/Main Objectives: This study evaluates the role of a large university in developing the social entrepreneurship capabilities of its students and fresh graduates through its business incubator; and investigates why tenants choose to be or not to be social entrepreneurs after their incubation process. Background Problems: There are many discussions about university-based incubators for developing entrepreneurship, but the actual mechanism of how these incubators develop social entrepreneurs is still unknown. Novelty: This research explores the development of social entrepreneurship through the university-based incubator program. Hence, it can be used to provide best practices for the program, especially for developing the tenants’ capacity. Research Methods: This study applies a case study approach and adopts Amartya Sen’s capability approach as an evaluative framework. The C-Hub UGM was chosen as a case since it was selected as a good example of a social entrepreneurship incubator by the British Council. This research used three sources of evidence: documents, interviews, and focus group discussions to collect information from 14 of the incubator’s tenants. Finding/Results: The results reveal that the incubator serves as a hub for the resources that enhance the tenants’ personal conversion factors and their performance as agents for change. Subsequently, the incubator improves the tenants’ social entrepreneurship capabilities set; however, it is up to the tenants to choose whether they want to continue as social entrepreneurs or work in other roles as their functioning. Conclusion: This study illuminates the linkages among the concepts of the capability approach, the university-based incubator and social entrepreneurship. It reveals that the university-based incubator serves as a hub for the resources that enhance the tenants’ personal conversion factors; thereby they can be effective social entrepreneurs.

“Getting to Denmark" from Indonesia: Starting from State Institutions or Tax Capacity?

Introduction/Main Objectives: This paper is aimed at answering the following research questions: Where should Indonesia’s journey toward a prosperous society start from? Should state institutions be improved first to increase the tax collection necessary to finance this journey? Or should the tax capacity be improved first to help improve the institutions? Background Problems: Maintaining good quality state institutions requires fiscal support and, vice versa, maintaining fiscal support through tax revenue requires the existence of good quality state institutions. This paper empirically examines which of these two aspects needs to be improved first to achieve a better society for Indonesians. Novelty: To the best of the author’s knowledge this paper may be the first that tries to empirically explore the causal relationships between the quality of Indonesia’s state institutions and its tax capacity. Research Methods: Answers to the research questions were approached by employing a vector error-correction model of governance indicators and tax revenue data for Indonesia, covering the period from 2002 to 2017. Finding / Results: It has been found that, for Indonesia, the quality of the state institutions and the tax capacity did not have a causal relationship in any direction. Conclusion: Indonesia seems to be caught in a dilemma: On one side, choosing the strategy of improving the quality of the institutions first may not be sustainable because it is unlikely to lead to improvements in the tax capacity, thus the prospects for sustaining good-quality institutions may be uncertain due to the possible lack of fiscal support. On the other hand, improving the tax capacity first does not seem to be a reliable strategy either because it may not result in better quality state institutions, hence revenue mobilization efforts might not be effective due to the incomplete support provided by the poor-quality institutions

Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia MSMEs in Yogyakarta

Introduction/Main Objectives: This research examines the antecedents and implications of innovation capability, empirically. The outcomes aim at contributing to the knowledge and understanding about the main driver of innovation capability. Background Problems: Yogyakarta is known for its many and varied charms, its tourist attractions, the availability of facilities and infrastructure to support tourism, such as souvenir sellers. But there is known that number of total foreign and domestic tourists has been a decrease in 2018 (Semester I by 11.51% and II by 3.33%), also in 2019 (Semester I by 11.23%). This is a challenge for MSMEs in the tourism sector and MSMEs in other sectors that support tourism, such a souvenir seller. Bakpia is one of the well-known products of the food and beverage sector in Yogyakarta often bought for souvenirs. The Bakpia MSMEs’ innovations were triggered by competition among the Bakpia producers in Yogyakarta. Therefore, every Bakpia MSME must be competitive to survive in the market. Thus, there is a need to improve their innovation capability, which will impact the innovation performance of the Bakpia MSMEs in Yogyakarta. There is a gap in the research regarding the influence of the factors that are predicted to build innovation capability. Novelty: Previous studies’ results indicate that the influence of knowledge donating and knowledge collecting about innovation performance is not yet conclusive. Therefore, this study aims to fill the gap in the previous research by examining the role of capability as a mediating between knowledge sharing process (knowledge donating and knowledge collecting) to innovation performance. Research Methods: Forty-eight items of data were obtained from Bakpia MSMEs in Yogyakarta through a survey conducted by distributing questionnaires directly to them. The data were analyzed using PLS-SEM via SmartPLS version 3.3.2. Findings/Results: This study shows that the direct and indirect effects of sharing knowledge (which includes donating and collecting knowledge) about innovation performance are found to be positive but not significant. The results also indicate that innovation capability does not significantly mediate knowledge donating and knowledge collecting about innovation performance. Meanwhile, the influence of innovation capability on innovation performance was found to be positive and significant. Conclusion: The antecedents are insignificant for innovation capability, but the antecedent’s constructs still act as a driver to build innovation capability.

The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.

Intellectual Dynamics of Good Governance Studies: A Bibliometric Analysis

Introduction/Main Objectives: This study presents a bibliometric analysis of good governance research publications from the Scopus database from 1984 to 2020. Background Problems: Since ​​good governance has an essential and central role in organizations, the research trends on good governance in the literature need to be revealed. Novelty: To the best of our knowledge, bibliometric analysis for the term good governance is not yet available. This paper aims to fill in the gap by providing a broad overview of the bibliometric analysis of the literature relating to this term. Research Methods: Good governance is used as a keyword in the titles of articles taken from the Scopus database on November 4, 2020. There were 1,954 documents analyzed. Microsoft Excel is used for frequency analysis, the VOSviewer app is used for the data’s visualization, and Harzing's Publish or Perish is used for citation metrics and analysis. Finding/Results: The results showed an increase in the growth rate of good governance literature from 1984 to 2020, particularly since 2011. Conclusion: Research related to corporate governance has involved various authors, and is published in various languages. There are 159 authors from 123 countries and 160 institutions. The United States is the most significant contributor to this study, followed by the United Kingdom and Indonesia. The International Review of Administrative Sciences has published the most papers on good governance. Our findings indicate that studies on good governance are mostly carried out in the field of social sciences.

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Introduction/Main Objectives: The performance of individuals in organizations is generally evaluated based on their success at achieving targets. Furthermore, the role of the budget has a major effect on individual behavior in the preparation of the budget, by allowing unethical actions (budgetary slack). Background Problems: There are a few studies that measure the difference in the influence of social pressure between superiors and peers on individual’s behavior in the organizational budgeting process. On the other hand, there are inconsistencies in the results of the research into the role of religiosity in the creation of budgetary slack. Novelty: To explain why people are not influenced by social pressures to create budgetary slack, we use the Psychological Reactance Theory. We argue that religiosity is one factor that influences people in making decisions about participative budgeting. Religiosity is believed to be able to influence one's personal values, so it impacts on one's judgment and determination of whether a thing is good or bad. Research Methods: This study uses an experimental research method on 65 undergraduate accounting students and a 2x2 factorial design consisting of two factors, social pressure (obedience pressure and peer pressure) and religiosity (high and low). Finding/Results: The results show that religiosity is proven to play an important role in the budget decision-making process, futhermore it minimizes the occurrence of budgetary slack. Conclusion: Individuals who have high religiosity are proven to be better able to avoid creating budgetary slack compared to individuals who have low religiosity, when receiving pressure from superiors and peers. This result has implications for organizational stakeholders dealing with employee recruitment or in the organization's management control system, as religiosity is an important factor that must be prioritized.

Empathetic Leadership, Job Satisfaction and Intention to Leave among Millennials in a Start-up Industry: Needs’ Satisfaction as a Mediating Variable

Introduction/Main Objectives: The purpose of this research is to examine the relationship between empathetic leadership and employees' job satisfaction and the intention to leave with needs’ satisfaction as a mediating variable among millennials in a start-up business. The number of millennials will only continue to grow, and by 2025 it is expected that 75% of the global workforce will be millennials. In particular, empathetic leadership will be required to manage and control this generation if the organizations they choose to work for are to be successful, as this generation’s members have different characteristics compared to those of the older generations. Design/methodology/approach: Following a cross-sectional research design, this research collected data from 137 millennial employees of start-up companies in Indonesia. A structural equation modeling technique was used for the data’s analysis. Findings: The results reveal that empathetic leadership has a direct and positive relationship with employees' job satisfaction and has a direct and negative relationship with the intention to leave. Needs’ satisfaction partially mediates these relationships. Originality: This study makes a novel contribution to the existing literature by first providing empirical evidence that among the three dimensions of needs’ satisfaction only the relatedness dimension passed the measurement test in the structural equation modeling. Second, empathetic leadership is proven to increase job satisfaction and reduce the intention to leave among millennials, considering their unique characteristics. Research limitations/implications: The research was conducted during COVID-19 pandemic. Circumstances related to that pandemic might influence the result of this study. It is, therefore suggested to conduct the study again under normal circumstances. Policy and Practical implications: The findings of this study suggest managers should develop an empathetic leadership style in order to better manage the millennials. Leaders can be nurtured, but disciplined efforts have to be invested in their creation.