• Title/Summary/Keyword: Business Sustainability

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Corporate Social Responsibility, Profitability and Firm Value: Evidence from Indonesia

  • MACHMUDDAH, Zaky;SARI, Dian Wulan;UTOMO, St. Dwiarso
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.9
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    • pp.631-638
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    • 2020
  • The intention of this research is to identify the effect of corporate social responsibility (CSR) disclosure on firm value with profitability as a moderating variable. Data collection is carried out with data documentation that is based on financial reports and sustainability reports. All companies listed on the Indonesia Stock Exchange (IDX) during the 2013-2017 period are considered as the population of this study. Samples were selected using the purposive sampling method. The following are criteria that would be used in this study: 1) publish a sustainability report using the GRI G4 standard as a reference in preparing reports for 2013-2016, 2) publish a complete financial report for the 2014-2017 observation period, 3) not experience a loss during the 2014-2017 period. The total sample of the study was 109 companies. The study uses path analysis assisted with WarpPLS software version 6.0. The results show that the disclosure of corporate social responsibility has a positive and significant effect on firm value, and profitability moderates the effect of corporate social responsibility disclosure on firm value. The implication of the research is that implementing corporate social responsibility is very important to increase firm's value and firm's sustainability in the future.

Political Connections and CSR Disclosures in Indonesia

  • SARASWATI, Erwin;SAGITAPUTRI, Ananda;RAHADIAN, Yan
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.1097-1104
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    • 2020
  • This research seeks to provide evidence about how political connections, proxied by government ownership and the existence of politically connected board members, affect the extent of corporate social responsibility (CSR) disclosures in Indonesian listed companies. This research uses the legitimacy theory as a basis for explaining management's motivation for disclosing its CSR. The sample consists of 131 firm-year observations from 38 non-financial public companies that published sustainability reports from 2013 to 2017. We measured the CSR disclosures using a disclosure checklist on the sustainability reports. We subsequently processed the data using a random effect (RE) linear regression. The result shows that CSR disclosures were greater in government-owned companies but lower in companies that have politically connected board members. The results support the legitimacy theory that the government intends to demonstrate legitimate national economic and political conditions by showing that government-owned companies are sustainable. However, CSR disclosures seem to have a substitutive relationship with the existence of politically connected board members, since those political connections may protect the company from public pressure and/or the risk of litigation, reducing the need for CSR disclosures. This research provides evidence that different types of political connections may have different impacts on corporate disclosures.

A Green Logistics Network Design to Increase Responsiveness to Eco-Friendly Consumers

  • Eungoo KANG
    • The Journal of Industrial Distribution & Business
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    • v.14 no.11
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    • pp.1-9
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    • 2023
  • Purpose: The industrial sector, especially in developed countries, is seen as the primary threat to sustainability. As a result, contemporary organizations prioritize establishing sustainable business practices. This sustainability can be achieved by organizations being concerned with their external environments, which is referred to as going green. This study aims to provide a green logistics network design to explain how to attract green consumers. Research design, data and methodology: This study conducted a comprehensive process to obtain textual dataset in the current literature and finally the author could collect total 26 relevant prior studies to achieve the purpose of the study. All dataset was thoroughly screened and selected for the high-degree of validity. Results: Based on the intensive literature review, the author insists that the four findings presented in this study will be useful as they provide evidence of the importance of technology in achieving global sustainability.in the situation we face that technology has become an important part of human life. Conclusions: This study provides meaningful insights into the environmental strategies that organizations across the world can implement to achieve a green supply chain based on the solutions in this study. The strategies presented in this study are evidence-based and have been tested through different studies.

Sustainability of Traditional Retail in an Emerging Market: A Conceptual Framework Applied to a Vietnamese Wet Market

  • Tran Thi Tuyet Nhung
    • Asia Marketing Journal
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    • v.24 no.4
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    • pp.143-151
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    • 2023
  • In emerging countries, traditional retail, such as wet markets, still accounts for a large proportion of retail sales. Traditional retail has poor infrastructure compared to modern retail, and is often associated with problems of waste, water, and environmental pollution. Therefore, traditional retail faces extreme difficulties in achieving sustainability. This study aimed to determine what value traditional retail contributes to sustainability. We generated and applied a conceptual framework of sustainability to explore this question. We used a single case study of a small-scale wet market in Vietnam. The results showed that wet markets have significant value for the development of sustainable retail, including economic, environmental, social, and community value. This study extends the literature by providing a comprehensive and accurate view about the value of traditional retail in contributing to sustainability. It suggests strategies for traditional retail in emerging countries to survive sustainably.

The Impact of Entrepreneurship on Sustainability and Innovation Performance in the 6th Industry (6차 산업에서 기업가 정신이 지속가능성과 혁신성과에 미치는 영향)

  • Junmo Kim;Eunil Son
    • Journal of Korean Society for Quality Management
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    • v.52 no.1
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    • pp.173-183
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    • 2024
  • Purpose: This study highlights the importance of emphasizing entrepreneurship and sustainability among managers to address the challenges of Industry 6.0, especially in situations of increasing environmental uncertainty. The research model reveals the important structural relationship between entrepreneurship, sustainability, and innovation performance, and through empirical analysis, we sought to confirm that entrepreneurship in the 6th industry is related to technological innovation. Methods: A survey was conducted targeting 6th industry entrepreneurs, and the relationship was analyzed using SPSS and AMOS. Results: Despite a non-significant direct relationship between entrepreneurship and innovation performance, a notable effect of sustainability on innovation performance was identified. This highlights the fact that entrepreneurship contributes to firm performance through innovation activities, especially in the form of technological innovation. Conclusion: This study highlights the essential characteristics of entrepreneurship and sustainability, highlights their interconnectedness and suggests that their inclusion in the same management activities improves performance.

Research for Relations between Satisfaction of Participants and Intension of Participation in terms of Evaluation Indicators of Public Management System (공공관리제도의 평가지표에 대한 사업참여자의 만족도 및 사업참여의사에 관한 연구)

  • Lee, Jeong-Jae;Kim, Gu-Hoi;Lee, Joo-Hyung
    • The Journal of the Korea Contents Association
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    • v.16 no.5
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    • pp.269-281
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    • 2016
  • This research made a evaluation indicators of public management system for operating efficient urban and housing redevelopment. We analyzed how satisfaction of participants about the evaluation indicators are used to parameters and affects intension of participation structure by using PLS structural equation model. We choose result evaluation tools: Foucs Group Interview and Balanced Score Card for appraising public management system. Specifically, We categorized setting business planning and selecting business tool, operating participation groups, motivating participation, post management and sustainability, and economics of business. As a results of the evaluation, setting business planning and selecting business tool, post management and sustainability, and economics of business influence comprehensive satisfaction. Post management and sustainability, economics of business, and setting business planning and selecting business tool turned out that they are very influential in the arranged order.

The Interactive Relationship between Credit Growth and Operational Self-Sustainability of People's Credit Funds in Mekong Delta Region of Vietnam

  • HA, Duong Van
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.3
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    • pp.55-65
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    • 2019
  • The purpose of this study is to discover the interaction between credit growth and operational self-sustainability and to examine factors that affect credit growth and operational self-sustainability of people's credit funds (PCFs). Credit growth and operational self-sustainability are factors affecting the operations and the goals of people's credit funds (PCFs) in the Mekong Delta region of Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 24 PCFs, it appears that deposit growth and loan-to-deposit ratio have positive relationships with credit growth, while capital adequacy ratio and operational self-sustainability have negative relationships with credit growth of PCFs; capital adequacy ratio, deposit growth and income have positive relationships with operational self-sustainability, while credit growth and non-performing loan ratio have negative relationships with the operational self-sustainability of PCFs. At the same time, credit growth and operational self-sustainability have a relationship to interact with each other in a contrary trend. The results of this research are accurate according to the characteristics and development history of PCFs in the Mekong Delta region of Vietnam from 2013-2018. This study helps researchers and managers to understand the key determinants for better management of PCFs.

Comparison of Restaurant Distribution Entrepreneurs' Pressure on Business Failure and Entrepreneurial Intention

  • AN, Soo-Jin;SHIN, Choung-Seob;PARK, Dea-Seob
    • Journal of Distribution Science
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    • v.17 no.5
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    • pp.5-17
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    • 2019
  • Purpose - This study aims to exploratorily analyze relationship among pressure on business failure, social safety net perception, and entrepreneurial intention targeting potential business founders - pre-entrepreneurs and re-entrepreneurs. Research design, data, and methodology - Out of 450 collected surveys, 386 were used for analysis. Among these, 216 were from pre-entrepreneurs and 170 were from re-entrepreneurs. Frequency analysis, reliability and validity analysis, and regression analysis were performed. Results - In analysis of pre-entrepreneur and re-entrepreneur's pressure on business failure and social safety net perception, objective environment perception - a subfactor of social safety net perception - had statistically significant difference between the two potential entrepreneur groups. Conclusions - We categorized potential entrepreneurs into pre-entrepreneurs and re-entrepreneurs. Also, the current study suggests importance of social safety net to vitalize food service business startup by validifying its mediating effect between pressure on business failure and attitude towards restaurant business establishment. This research also established groundwork for future studies on ways to improve entrepreneurial intention or startup business sustainability by deducing social safety net perception difference between pre-entrepreneurs and re-entrepreneurs. This study was able to analyze relationship between those two groups in terms of entrepreneurial intention and startup business sustainability.

Sustainable Considerations for Newsvendor Decisions

  • Kwak, Jin Kyung
    • International Journal of Advanced Culture Technology
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    • v.8 no.4
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    • pp.110-118
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    • 2020
  • It is important to have an appropriate amount of inventory for effective operations. This study seeks to develop a sustainable newsvendor model by incorporating environment-related costs into the existing well-known (single-period) newsvendor model. Since leftovers do more harm to environments than stockouts, the optimal order amount tends to be lower than the traditional quantity. However, this is not the case when a second buy is allowed. A second order opportunity is prevalent in industries where it improves demand forecast despite incurring extra costs. In this study, we conduct an extensive numerical analysis for a newsvendor situation with a permitted second buy. The results show that we can reduce inventory costs by considering sustainability concerns. The research idea of including sustainability considerations into existing inventory models can be extended to a more general case and provides managerial insights for better inventory decisions.

The Effect of Sustainable Dimensions on the Financial Performance of Commercial Banks: A Comparative Study in Emerging Markets

  • TAWFIK, Omar Ikbal;KAMAR, Saifaldin Hashim;BILAL, Zaroug Osman
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.1121-1133
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    • 2021
  • The paper examines the impacts of the various sustainability dimensions on the financial performance of commercial banks in three Arab countries. Three dimensions have been considered as constitutive of the term sustainable development (social, economic, and environmental). The relationship between the sustainability dimensions of companies and accounting indicators was analyzed. The main hypothesis posits that the dimensions of sustainability do not have a significant and positive effect on the financial performance of the commercial banks. The study population consisted of commercial banks operating in three Arab countries (Oman, United Arab Emirates, and Jordan); the period of the study is from 2007 to 2018. The data were collected from the financial reports and sustainability reports of each bank through the Internet. The overall results of the study showed a moderately positive relationship between all sustainability dimensions and the banks' financial performance. The main contribution of the research is to study the dimensions of sustainability reports as contained in the Global Reporting Initiative (GRI-G4) and their impacts on the financial performance of commercial banks. Thus, this research will contribute to increasing the interest of the banks in sustainable development in a context where this research in Arab countries is scarce.