Journal of Indonesian Economy and Business

Buying Intention through Virtual Reality Shopping Platforms: Examination of Technology Acceptance, Satisfaction and Immersive Engagement Determinants

Chee-Hua Chin — 2026-01-28

Introduction/Main Objectives: This study delves into how technology acceptance (i.e., perceived ease of use and perceived usefulness) and immersive engagement determinants (i.e., perceived enjoyment, interactivity, and telepresence) influence the satisfaction and purchasing intentions of today's youth, specifically focusing on the moderating role of trust within the context of virtual reality (VR) platforms. Background Problems: The current literature has a limited understanding of users' adoption patterns of VR apps, the impact of VR on consumer behaviour, and the lack of knowledge among young consumers regarding the VR platform. Novelty: Previous studies did not consider trust as a moderator in the relationship between satisfaction and behavioural intention when using VR platforms. Moreover, the current research has extended multiple variables to explain user satisfaction and intention based on TAM. Research Methods: The research used a quantitative methodology based on survey data collected from young consumers in Sarawak, one of the Borneo region's states, who use VR platforms. A two-stage Partial Least Squares Structural Equation Modelling (PLS-SEM) analysis was conducted using WarpPLS 8.0 software. Finding/Results: The finding indicated that satisfaction was positively correlated with perceived usefulness, perceived enjoyment, and telepresence. Besides, satisfaction was positively related to the intention to purchase. Conclusion: This study can guide practitioners in decision-making and serve as a reference for scholars conducting related research in the Borneo region.

Analysis of Financial Accounting Standard-Setting Institutions: Government Versus Private

Ade Ilham Ilahi — 2026-01-28

Introduction/Main Objectives: This study analyzes the legitimacy of Indonesia’s financial accounting standard-setting institutions. Background Problems: The enactment of the Law on Development and Strengthening of the Financial Sector has resulted in changes to the financial regulations, including an institutional arrangement for financial accounting standard setting. The law regulates that the standard setting should be conducted by a standard-setting committee established by a presidential decree. This is different from the current system, where the standard-setting process is conducted by a board under the Institute of Indonesia Chartered Accountants, a private organization of professional accountants in Indonesia. The new scheme may increase the government's role in the standard-setting process, which may hinder independence. Novelty: This study adds to the literature on the legitimacy of standard-setting institutions by focusing on the stakeholders’ perspectives. Research Methods: A qualitative approach, through semi-structured interviews with stakeholders from various professional backgrounds that relate to financial reporting, was conducted to compare the legitimacy of private versus government institutions that set financial accounting standards. Finding/Results: Each of the institutions—both the government’s and the private one under the IAI—has various positive and negative effects on the legitimacy of the standard-setting process. Collaboration between the government and the private sector, such as involving the IAI in determining the financial accounting standard-setter, has stronger legitimacy than a sole government standard-setting institution. Conclusion: The results of this study contribute to the development of the legitimacy theory and provide inputs for the further implementation of the new law.

Flexible Work Arrangements and the Workplace Commitment of Employees in General Hospitals in Nigeria and Indonesia

Ugo C. Okolie — 2026-01-28

Introduction/Main Objectives: This study examines how eight flexible work arrangements, including flexi-time, teleworking, compressed work weeks, and job sharing, influence employee commitment in general hospitals across Nigeria and Indonesia. Background Problems: Research on flexible work has focused primarily on developed nations. This study addresses the research gap in developing countries, where such arrangements are vital for healthcare worker commitment. Novelty: By examining the impact of flexibility on commitment in general hospitals within less-developed contexts, this study offers unique insights for HR professionals in Nigeria and Indonesia. Research Methods: Using a cross-sectional design, 649 healthcare employees in Delta State (Nigeria) and Aceh City (Indonesia) were surveyed via simple random sampling. Data from structured questionnaires were analyzed using SPSS 23.0 via independent t-tests and multiple regression. Findings/Results: Results demonstrate that flexible work dimensions (including part-time, subcontracting, and moonlighting) significantly and statistically impact workplace commitment. Overall, flexibility is a primary driver of employee dedication. Conclusion: Flexible work arrangements are strong predictors of commitment due to shifting economic conditions, family dynamics, and technological advancements. Management should implement these arrangements to reduce workplace stress and enhance commitment in less-developed nations.

Analyzing the Link between Population Diversity, Population Growth, and Income: A Panel Data Study

Irfan Aziz Al Firdaus — 2026-01-28

Introductions: Amidst shifting demographics across many countries, certain stylized facts related to fertility, population, and income have become less universally applicable as previously established empirical models of fertility were based on long-standing regularities—namely, the negative relationships between income and fertility as well as between women’s labor force participation and fertility—many of which are now being reconsidered in light of evolving demographic trends. Novelty: This research addresses a significant gap in the literature by providing a comprehensive analysis of the relationship between population diversity, population growth, and income growth, incorporating both time-varying and cross-country components. While existing studies have examined these factors individually, our study integrates them to offer a more complete understanding of their interactions. Methodology: We employ the system generalized method of moments (GMM), a dynamic panel estimation technique that helps address endogeneity and unobserved heterogeneity in panel data settings. Findings: Our findings reveal a positive correlation between population diversity and population growth, suggesting that diversity and migration contribute to population expansion through strategic interactions among ethnic groups competing for influence in society, fostering pro-birth policies. However, we also find a negative association between population diversity and income growth, indicating potential ethnic conflict and rent-seeking behavior. In highly diverse societies, rent-seeking can lead to underinvestment in public goods, while frequent ethnic conflict is linked to lower economic growth. Conclusion: This paper highlights the complex relationship between diversity, demographic trends, and economic outcomes, underscoring the need for further research on mitigating the adverse effects of diversity on income growth.

TikTok Users Impulse Buying Behavior: The Role of Empathy, Perceived Usefulness and Perceived Enjoyment

Ngo Thi Khue Thu — 2026-01-28

Introduction/Main Objectives: This research explores the factors influencing impulsive buying behavior of TikTok users. Background Problems While the social commerce landscape of TikTok and consumer behaviors are getting more and more complex, few studies have looked at the effects of multiple factors on Impulsive buying, especially with empathy, perceived enjoyment and perceived usefulness as mediators in social media marketing campaigns. Novelty: This study adopts a comprehensive approach to examining the factors affecting of TikTok users’ impulse buying behavior. Based on the Stimulus-Organism-Response (SOR) theory, this study proposes a comprehensive model to explore the combined effect of empathy, perceived usefulness and perceived enjoyment. Specifically, it combines social media marketing activities (SMMAs), self-reference, and product attributes (variety, visual appeal, price, and information quality) as key stimuli and psychological factors (empathy, perceived usefulness, and perceived enjoyment) as organism mechanisms. This holistic integration provides a comprehensive understanding of how these factors collectively influence impulsive buying behavior, offering a more nuanced and realistic view of the complex decision-making process among TikTok users. Research Methods: A survey among a sample of 500 TikTok users in Vietnam was conducted to test the research hypotheses. Finding/Results: The study suggests the collective influence of SMMAs, Self-Reference and Product Attributes on the Urge to Buy and Impulsive Buying Behavior through Empathy, Perceived Enjoyment and Perceived Usefulness among TikTok users in Vietnam. Noticeably, two elements (i.e., Perceived Usefulness, Perceived Enjoyment) result in stronger Urge to Buy, which subsequently influences Impulsive Buying Behavior. Conclusion: Based on the notable findings, we recommend that businesses should utilize a marketing strategy aimed at for-profit ventures and how to manage businesses on TikTok ethically for governmental oversight.

Guardians or Bystanders? Auditors’ Role in Curbing Earnings Management during Financial Distress in Indonesia

Arika Artiningsih — 2026-01-28

Introduction/Main Objectives: This study aims to investigate the role of auditors in mitigating earnings management when firms experience financial distress, focusing on the effectiveness of Big 4 auditors in maintaining reporting quality in Indonesia. Background Problems: Firms under financial distress often manipulate earnings to preserve legitimacy and maintain investor confidence. In emerging markets such as Indonesia, weak institutional enforcement and client pressures raise questions about whether auditors can effectively constrain such opportunistic behavior. Novelty: By applying prospect theory to explain managerial risk-taking under financial distress and role theory to examine how structural capacity influences auditors’ monitoring effectiveness, the study provides new insights into the conditional effectiveness of Big 4 auditors in an emerging market setting. Research Methods: The study uses 5,008 firm-year observations of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2010 to 2024. Earnings management is measured using the modified Jones model (Kothari et al., 2005), financial distress is proxied by Altman’s Z-score, and auditor quality is captured with a Big 4 dummy. Robustness tests and additional analyses are employed for validation. Findings/Results: Results show financial distress is positively associated with earnings management, consistent with prospect theory. Big 4 auditors are associated with lower levels of earnings management overall, but their moderating effect under distress is not significant. Additional analyses reveal that Big 4 auditors are more effective in reinforcing reporting discipline across broader financial conditions than in severe distress scenarios. Conclusion: Auditor effectiveness in Indonesia is highly contextual. While Big 4 auditors improve reporting quality in general, their ability to curb opportunistic behavior in distressed firms remains limited under a weak institutional environment. This study contributes to the accounting literature by extending prospect and role theory applications in auditing, and offers policy implications for strengthening auditor capacity and institutional enforcement in emerging markets.

The Effect of Revocation of Value Added Tax Exemption on Marine and Fishery Imports: CGE Model Ex-Ante Analysis

Yulifar Amin Gultom — 2026-01-28

Introduction/Main Objectives: Indonesia is one of the world's top three producers of marine and fishery products. Despite this, it still imports marine and fishery products, especially those that are used for production and consumption in hotels and restaurants, for catering, and in modern markets. Background Problems: The government facilitates these imports with value-added tax exemption. This research was conducted to see who would benefit from this incentive being revoked and whether doing so would fulfill the redistribution function of the taxation. Novelty: Unlike other research, which has only used either a macro or micro view, this research used both by employing a CGE model and micro simulation to see the effects of the VAT exemption revocation on marine and fishery products in Indonesia. Research Methods: The analysis focused on the effects of VAT exemption revocation on economic variables, such as the gross domestic product, exports, imports, trade balance, domestic production and demand, equivalent variation, prices, and income redistribution from changes in household consumption. The analysis was carried out with the CGE model, using GTAP Database 10. The simulation starts by adjusting the data baseline and then applying shocks to import tariffs. Finding/Results: The results show that revoking VAT exemption for the import of marine and fishery products would increase the gross domestic product, trade balance, domestic production and demand, and prices. On the other hand, it will decrease exports, imports, equivalent variation, and consumption. Conclusion: This research shows that the revocation of VAT exemption would not have a regressive effect; hence, it would fulfill the income redistribution function of the taxation. The government needs to evaluate the incentive. The limitation of this research is the use of formal documents only without considering non-tariff barriers as other factors