Business Review and Case Studies

How Visitor Satisfaction and Intention to Revisit Are Created by Event Quality and Perceived Value? A Lesson from the Local Food Festival in Brebes

Andi Yulianto, Roby Setiadi, Herniah Herniah — Fri, 22 Dec 2023 15:28:28 +0700

The emergence of many festivals and events shows that Arranging festivals centered around specific themes has the potential to boost economic development on both local and national scales. To investigate how events can improve visitors' perception of event quality, perceived value, trust, visitor satisfaction, and behavioral intentions, the annual food festival during the 344th anniversary celebration of Brebes was selected to explore these relationships. A total of 350 questionnaires were distributed to visitors and the data analysis was performed on 335 valid questionnaires using structural equation modeling. The results show that event quality has a positive and significant effect on perceived value (β = 0.205; p-value 0.037 <0.05). In addition, perceived value has a positive and significant effect on trust (β = 0.0585; p-value 0.000 <0.05). Finally, trust has a positive impact on event satisfaction (p-value 0.000 <0.05), which in turn affects the intention to revisit (p-value 0.004 <0.05). Drawing from these observed outcomes, this research provides practical and theoretical insights for event management entities and festival organizers to continue hosting annual theme-centered festivals during specific occasions and destinations to improve visitors' attachment to the values and authenticity offered.

Keywords: event quality, event satisfaction, intention to revisit, perceived value, food festival

The Influence of Marketing Mix on Customers Satisfaction and Loyalty at Tirtania Waterpark Bogor

Muhammad Akmal Ikramudin, Imam Teguh Saptono, Siti Jahroh — Fri, 22 Dec 2023 15:31:46 +0700

Covid-19 has caused several tourist objects to experience a decrease in visits, sales, and temporary closure due to the lockdown policy. Tirtania Waterpark is a water tourism object providing services for water recreation rides and family entertainment venues experiencing a decline in visits. Therefore, this research aims to analyze the effect of the marketing mix which consists of 4C, namely co-creation, currency, communal activation, and conversation variables on visitor satisfaction and loyalty at Tirtania Waterpark. This research is a case study with a sample of 126 people who are visitors of Tirtania Waterpark. The sampling method in this study was purposive sampling using questionnaires distributed to Tirtania Waterpark visitors. This study used the Structural Equation Model (SEM) method to perform data analysis. The results of the study show that all the marketing mix 4C variables used affect the satisfaction of visitors to Tirtania Waterpark, satisfaction variable has a significant effect on consumer loyalty which is reflected by the willingness of consumers to make repeat visits. Several recommendations to increase Tirtania Waterpark customer loyalty are conducting regular surveys of visitors, dynamic pricing, adding options in purchasing tickets, conducting promotions through other parties, and implementing good relationship management.

Keywords: customer loyalty, customer satisfaction, marketing mix 4C, structural equation model, tourist attraction

The Effects of Financial Performance and Macroeconomics on Financial Distress in The Energy Sector Before and During Covid-19 Pandemic

Alya Dinda Nurrahmi, Hermanto Siregar, Bayu Bandono — Fri, 22 Dec 2023 15:50:50 +0700

The condition of financial distress is where the company's finances are in a bad condition which then becomes an early indicator of bankruptcy for companies to anticipate or restructure so that companies do not experience bankruptcy and liquidation. This study aims to analyze the influence of financial ratios and macroeconomic performance (interest rates, economic growth, and covid-19) on financial distress before and during the Covid-19 pandemic in energy companies listed on the Indonesia Stock Exchange for the period 2017– 2021. The data analysis technique is panel data regression analysis using EViews 12. The population in this study is companies in the energy sector listed on the IDX. The results showed that the condition of financial distress during the pandemic was generally higher than before the Covid-19 pandemic. The results of the analysis conducted in 2017-2021 show that as many as 12 out of 53 companies in the mining sector are experiencing financial distress. A total sample of 12.83% indicated financial distress. Financial ratios and macroeconomic performance (interest rates, economic growth, and covid-19) simultaneously influence financial distress. Partially profitability, liquidity, leverage, and sales growth affect financial distress, while activity, cash flow from the operation, interest rates, economic growth, and covid-19 do not affect financial distress.

Keywords: financial distress, financial ratios, macroeconomic performance, probit model

Implementation of Accountability and Responsibility in Governance Structure on Village Owned Enterprises

Desak Made Mya Yudia Sari, Ida Ayu Nirma Prameswari — Fri, 22 Dec 2023 15:56:15 +0700

The study intends to show data that can be explained comprehensively to improve the performance of village owned enterprises Wija Sari in Samsam Village, protect stakeholders, and improve compliance with regulations and generally accepted ethical values in implementing the banking industry guided by good governance, especially the governance structure. Collecting qualitative data in this study used documentation, observations, and interviews with an interpretive approach. The results of the research state that accountability disclosure is an obligation of liability that must be achieved by applying the principles of transparency, accountable, and sustainability, while disclosure of responsibility whose obligation to be responsible to stakeholders applies cooperative, participatory, and emancipatory principles.

Keywords: banking industry, accountability disclosure, governance structure, village owned enterprises

Technical and Financial Feasibility of Aromatherapy Pillow (Talophy) Production: A Sheep Wool Waste Utilization Venture

Muhammad Surya Fadhlurrohman, Andriyono Kilat Adhi, Nunung Kusnadi — Fri, 22 Dec 2023 15:59:31 +0700

TALOPHY or aromatherapy pillow made from sheep's wool is an innovative product as a result of PKM 2020 activities. THALOPY is a new innovative product on the market, but the problem that occurs is the availability of raw sheep's wool which can only be obtained within a period of four months. Therefore, this study aims to analyze the technical and financial feasibility of the TALOPHY business plan. The methods used in this study are qualitative analysis on technical aspects and quantitative analysis on financial analysis. Technical aspects include business location, production scale, machine selection, production process, and the type of technology used. The financial aspect uses investment criteria including NPV, IRR, PP, and switching value analysis. The results of the study show the feasibility of the technical aspects, including the geographical location of the business, namely in Jatisari Village, Madiun Regency, East Java province; the availability of sheep wool is limited, namely only 800 kg every 4 months; the production scale is 200 pillows for one production (every 2 months); the production process of the TALOPHY business uses an intermittent or gradual method; the business layout facilitates production activities; and the technology is used as needed. Based on the results of the eligibility criteria, the TALOPHY business investment is not feasible to run. This is based on the NPV obtained for IDR 27,384,206, a net B/C of 1.3, an IRR of 4%, and a PP of 11 years and 8 months. The results of the switching value analysis show that the most sensitive factor or determinant of TALOPHY's business feasibility is a decrease in sales and a decrease in product prices, with a value of 1.63%.

Keywords: financial analysis, switching value analysis, technical analysis, sheep wool, insomnia

Measuring The Resilience of Rural Banks Against Covid-19 Pandemic: Evidence From West Java, Indonesia

Wanda Kharisa Ristyanti, Noer Azam Achsani, Tony Irawan — Fri, 22 Dec 2023 16:02:53 +0700

The quality of credit and financing provided by rural banks plays a crucial role in determining the continuity of income and interest, ultimately impacting profitability. This study aims to analyse the financial performance dynamics and the factors influencing the profitability of rural banks in West Java, Indonesia during the COVID-19 pandemic by examining the financial reports for the period March 2019 to December 2020 from 26 sampled rural banks. The research employed a multiple linear regression method with REM estimation. Despite the challenging circumstances of the pandemic, the ROA, CAR, and equity values of the rural banks analysed still met the minimum standards set by Bank Indonesia at 1.5%, 8%, and IDR 6 billion, respectively, while the NPL values exceeded the maximum standard of 5%, whereas the NPL values exceeded the maximum standards. The combined factors of CAR, NPL, equity, net income, and the COVID-19 pandemic collectively influence profitability. Specifically, NPL and the COVID-19 pandemic have a significantly negative effect, while net income has a significantly positive effect on profitability. The policy implication that can be implemented to support the resilience of rural banks during crisis are strengthening capital buffer, tightening credit policies, implementing good governance practices, and improving operational cost efficiency.

Keywords: rural banks, financial performances, COVID-19 pandemic, profitability

Competing With Ride-Hailing Startups: Business Transformation Strategies for Conventional Taxi Companies in Indonesia

Asaduddin Abdullah, Raden Isma Anggraini, Dikky Indrawan — Fri, 22 Dec 2023 16:05:38 +0700

The emergence of ride-hailing startups has dramatically changed the transportation landscape, threatening the existence of conventional taxi services. These new players have disrupted the traditional taxi industry, challenged their market share, and forced conventional taxi companies to adapt to changing consumer demands. As a result, conventional taxi companies like PT XYZ in Indonesia need to implement effective business transformation strategies to stay competitive and maintain their position in the market. This research implements a quantitative and qualitative descriptive approach and uses data analysis techniques, namely the IFE, EFE, IE matrix, QSPM, and Business Transformation Domain. The IFE analysis showed that a strong and strategic taxi distribution network in major cities was PT XYZ's main strength, while the company's financial position was a weakness. The EFE analysis identifies the high level of mobility and transportation needs as opportunity factors, while the standardization of fares, the number of fleets, and the lack of identity of online ride-hailing are threat factors. PT XYZ could implement the five domains of the digital transformation framework by increasing its business value by offering innovative taxi services, expanding service networks, improving customer interaction, developing business innovation through technology, utilizing data and analytics, and focusing on the company's strengths to compete with online taxi companies.

Keywords: business competitiveness, business transformation, digital transformation domains, IE Matrix, QSPM

Integration of Triple Bottom Line In Supplier Selection Process (Case Study at Indonesia Bottled Water Company)

Aditya Asmara Nala, Harianto, Popong Nurhayati — Fri, 22 Dec 2023 16:10:37 +0700

PT ABC is an Indonesia bottled water company that continues to strive to adopt sustainability efforts in every aspect of its business process, including on their supplier selection process. This study aims to determine the usage of TBL criteria in current formulation of supplier selection decisions at PT Tirta Investama; to determine what are the TBL integrated selection criteria and its assessment indicators which needed to select suppliers appropriately; and how to use them to select suppliers at PT ABC. Researchers conducted in-depth interviews with 4 procurement managers of PT ABC to find out the usage of TBL criteria in current formulation of supplier selection decisions. Currently, economic perspective still becomes the only one focus in supplier evaluation process in PT ABC. In fact, environmental and social concern still not significantly underlie supplier evaluation process which lead to selection decisions. The determination of TBL integrated selection criteria and its assessment indicators begins through literature review and finalized with focus group discussion (FGD). In this study, researchers established 13 TBL integrated selection criteria and 20 assessment indicators to select suppliers at PT ABC. Those criteria and indicators are then used to select suppliers in 4 main material categories of PT ABC using the analytical hierarchy process (AHP) method. Based on this selection process, a ranking of suppliers of each material category is obtained, resulting in PT A2 as top selected supplier in gallon bottle category, PT B1 as top selected supplier in gallon cap category, PT C1 as top selected supplier in preform category, and PT D1 as top selected supplier in screw cap category.

Keywords: AHP, business sustainability, supplier selection, supplier selection criteria, triple bottom line

The Role of Servant Leadership in Imrpoving Entrepreneurial Mindset, Climate, Knowledge Management, Organization Development and Its Impact on Higher Education Performance

Muhammad Ramaditya, Friska Intan Sundari — Fri, 22 Dec 2023 16:14:24 +0700

For higher education to continue in the education sector, they must perform better. The purpose of this study is to investigate the effects of organizational development, knowledge management, entrepreneurial atmosphere, servant leadership, and entrepreneurial mentality on performance in private higher education in the LLDikti III region. This study employs a quantitative approach, namely a survey method that gathers data through the use of a questionnaire. Lecturers from private universities in the LLDikti III region made up the study's population. The sample in this study was 376 respondents. The analysis tool used is SmartPLS 3 with Structural Equation Modeling based on Partial Least Square. The results of this study state that higher education performance can be improved by having servant leadership, entrepreneurial climate, entrepreneurial mindset, and organization development. Private higher education needs to be more concerned to become entrepreneurial activities in their organization if they want to stay relevant in the industry.

Keywords: entrepreneurial mindset, entrepreneurial climate, higher education performance, servant leadership, organizational development

Transforming Consumer Behavior Through Cloud Kitchen and Digitalization Boosting MSMES Sustainability in The F&B

Thu, 28 Dec 2023 08:17:29 +0700

Cloud kitchen is a system that allow business owner to serve customers without facilitate a dining-in establishments. The idea of cloud kitchen has proof its usefulness due to COVID-19 pandemic, where many food and beverage (F&B) sector owners especially the medium, small, and micro enterprises (MSMES) suffer because they could not provide their service due to government-imposed measures to limit the movement of people and activities in an effort to control the spread of COVID-19. This research aims to explore the concept of cloud kitchen further, as well as examining the relation between the rapid development of technology has allow many F&B sector owner to survive during and post pandemic. This research employed a systematic literature review with a qualitative approach. A total of 329 studies were identified and 12 are selected and included in the review. These 12 journals were selected based on their relevance to the research topic, the quality and impact factor of the journal, the reputation of the authors who publish in the journal, and the rigor of the peer review process. The results indicate that cloud kitchen is a promising business model for F&B sector, it has maintain the sustainibility during pandemic and still keep it relevancy after pandemic. Several start-ups such as Gojek and Grab provide a food delivery service that allow partnership with MSME business owner, contributing in their effectiveness and efficiencies.

Keywords: consumer behavior, MSMES, food and beverages, cloud kitchen