Journal of Indonesian Economy and Business

Internal Whistleblowing and Perceptions of Organizational Politics, Pressure, and Professional Commitment

Ilyona Risty — 2025-01-15

Introduction/Main Objectives: This study examines the influence of organizational political perceptions of internal whistleblowing intention, specifically investigating the role of professional commitment on the pressure felt by employees within the framework of the conservation of resources theory. Background Problems: Previous research has focused on what factors can increase internal whistleblowing intention, while there are contextual factors that cannot be ignored, specifically the state of the working environment that may hinder such intention. Novelty: This research investigates a different phenomenon from the point of view of an environment that creates a negative perception while also linking it to the professional commitment to the impact of internal whistleblowing intentions. Research Methods: This study employs a questionnaire-based survey method targeting employees of banks affiliated with the Association of Stated-Owned Banks in Indonesia. The sample consists of 115 participants and the data were analyzed using structural equation modeling (SEM). Findings/Results: The findings of this research suggest that employees' views on organizational politics and the corresponding pressure hinder their willingness to report violations. Nevertheless, a strong level of professional dedication does not lessen the impact of organizational politics on perceived pressure. This underscores the necessity for organizations to cultivate a cooperative atmosphere that can diminish the adverse perceptions of organizational politics. Conclusion: This research carries particular importance, notably within the financial industry, illustrating how the interactions among organizational politics, pressure, and professional commitment influence employees' tendency toward internal reporting of misconduct. Further, this research enriches the discourse on internal whistleblowing, providing a richer conceptualization of its determinants from both environmental and situational perspectives.

Exploring the Dynamics of Work Satisfaction and Innovation Among Young Lecturers in Post-Pandemic Indonesia

Despinur Dara — 2025-01-15

Introduction/Main Objectives: This study purposes to investigate the complex relationship among work autonomy, work crafting, work satisfaction, and innovative work behaviour. Background Problems: How autonomy, crafting, and work satisfaction relate and, more collectively, affect young lecturers' innovative work behaviours within the shifting educational circumstances in Indonesia is a major concern. Novelty: This research has groundbreaking importance because it applies the self-determination theory to this particular academic context of Indonesia. It emphasises the impact of cultural variations on the motivation and behaviour of young lecturers. It offers an innovative perspective on how young lecturers may be innovative and adaptable in the face of pedagogical and technical changes that are occurring at a fast rate. Research Methods: The study uses a mixed method approach in which 382 young lecturers from state universities in Indonesia participate in surveys, in-depth interviews, and participatory observations. By using structural equation modelling (SEM) by Lisrel and systematically coded by NVIVO, it becomes possible to analyse the complex interrelationships between the variables. Finding/Result: Work crafting on work satisfaction and work satisfaction on innovative behaviour has a significant positive impact. In contrast, work autonomy has no significant influence on lecturer work satisfaction. Excessive autonomy and interference without assistance will lower lecturer work satisfaction. In a dynamic educational environment, encouraging young lecturers to use creative teaching techniques and having institutional support can boost their creativity. Conclusion: What is brought into sharp focus through this study is the balance of autonomy with adequate support for young lecturers in a world that is rapidly developing in terms of digital education. Thus, pressure exists in universities to ensure young lecturers enjoy convenience in their work and support them to ensure they obtain the institutional support and work tools required in the digital era.

Does the Use of Solid Cooking Fuels Increase Household Out-Of-Pocket Medical Expenses? Evidence from Indonesia

Theo Ojahan Pardamean Siagian — 2025-01-15

Introduction/Main Objectives: The objective of this study is to assess how the utilization of solid cooking fuels influences out-of-pocket medical expenses incurred by households in Indonesia. Background Problems: Solid cooking fuel use remains prevalent in Indonesia, negatively impacting the health of household members, and consequently affecting associated medical expenses as well. Novelty: To the best of the authors’ understanding, this study is the first to explore how the use of solid cooking fuels affects the out-of-pocket medical expenses of households in Indonesia. Research Methods: This study employs instrumental variables to address existing endogeneity issues. Finding/ Results: On average, households using solid cooking fuels show a 0.0041 increased proportion of out-of-pocket medical expenses to total household expenditure compared to households using non-solid cooking fuels. Conclusion: The Indonesian government can reduce household medical expenses by improving the use of cleaner cooking fuels. Implementable policies include providing assistance with clean energy cooking equipment and ensuring the availability of clean energy in areas in need.

What Drives Youth to Shop for Local Fashion Online? Extending the Planned Behavior Theory and Ethnocentrism

Dwi Kartikasari — 2025-01-15

Introduction: Local businesses and lawmakers in emerging economies are under tremendous pressure to compete with foreign entities and comprehend consumer behavior in the setting of increasing internationalization and the growing significance of e-commerce. Main Objectives: By adding to the theory of planned behavior and consumer ethnocentrism, this study aims to find the factors that affect people's intentions to buy local products in the context of e-commerce, fashion, youth, and Indonesia. Methods: Nonprobability snowball online sampling on social media was conducted to collect 651 valid responses. Findings/Results: We used a variance-based partial least squares structural equation model to show that attitudes, perceived behavioral control, subjective norms, and consumer ethnocentrism, directly and indirectly, affect people's intentions to buy local goods online. Conclusions: In our structural model, we stress how vital consumer ethnocentrism and subjective norms are as internal and external factors for consumers. Implications: We encourage managers of local businesses and future researchers to include these concepts in their marketing plans and research. Novelty: This research shows that consumers react differently to the opposite sign of consumer ethnocentrism when they deal with subjective norms as an outside factor because of competitive mediation. Limitations: The generalizability of our findings to different countries, situations, and product categories is limited, so we suggest future research expand beyond our scope.

The Relationships between ESG Responsibility, Earnings Management, and Tax Aggressiveness: Evidence of the Halo Effect from Indonesia

Erni Ekawati — 2025-01-15

Introduction/Main Objectives: Sustainable firms should develop competitiveness by seeking interconnections between financial and non-financial goals. This research investigates the halo effect to shed light on the motives behind environmental, social, and governance (ESG) responsibility and tax aggressiveness engaged in by the firms dealing with real earnings management (REM). Background Problems: Do higher ESG scores improve corporate value due to corporate credibility and ethical practices, or due to the motive of doing good to cover up irresponsible practices? Novelty: Only a few studies have investigated the motivation of Indonesian companies in carrying out ESG, associated with REM and tax aggressiveness to test for a halo effect. Research Methods: This study is based on a sample of manufacturing companies listed on the Indonesia Stock Exchange between 2015 and 2019. Panel data regression models are used in testing the hypotheses. Finding/ Results: ESG scores have a positive effect on market value. The halo effect is present in manufacturing firms practicing REM. Firms entering into REM have significantly higher ESG scores. REM has a negative effect while ESG scores have a positive effect on tax aggressiveness. Conclusion: ESG scores could increase firms’ value. However, the presence of the halo effect results in higher ESG scores for firms engaging in REM. The REM activity prevents firms from aggressive tax planning, while governance responsibility encourages them to do so. The halo effect opens up the opportunity to engage in REM and tax aggressiveness. Thus, the government requires scrutiny considerations in order to avoid the unfavorable side effects of ESG enforcement.

Revolutionizing Civil Servant’s Work Behavior through Flexible Working Spaces: Digital Transformation &Green Practices at the Ministry of Finance

Puput Yanita Senja — 2025-01-15

Introduction/Main Objectives: The COVID-19 pandemic forced the Ministry of Finance of the Republic of Indonesia to carry out a digital transformation by employing the concept of the Flexible Working Space (FWS) to ensure its civil servants can use the Work From Anywhere (WFA) system, including the Work From Home (WFH) system. These concepts are expected to help civil servants to optimize their performance. Background Problems: FWS has been practiced for two years, but detailed information on how the civil servants’ green work behavior has helped in maintaining their performance has not been investigated. Novelty: The researchers also studied how the digital transformation has changed the working practices among civil servants at the Ministry of Finance, and do they employ more green practices now? Discussion about the civil servants' green work behavior during this digital transformation is still limited. Research Methods: This study applied a qualitative technique to analyze the data obtained from an online qualitative survey, focus group discussions (FGD), observations and documentation. These research data were validated through a triangulation approach before being analyzed using the theory of planned behavior (TPB). Finding/ Results: The positive aspects of the Ministry of Finance’s digital transformation, which occurred during the pandemic, are civil servants can work faster, more efficiently, more flexibly, and they are more focused, but they have less contact with other people. While the identified disadvantage is that the internet network is occasionally unstable, thus disrupting the learning and discussion processes. The civil servants at the Ministry of Finance had used several green practices before the pandemic began, such as saving water, saving electricity, and to some extent they had gone plasticless and paperless. After the pandemic happened and FWS was implemented, these practices became more prominent, producing better results compared to the results before the pandemic. The pandemic also brought other advantages, including carbon emissions reductions and time savings. Conclusion: The FWS concept in the Ministry of Finance changed the work behavior related to the digital transformation, and the green work behavior of the civil servants. This is based on the TPB which includes attitudes, subjective norms, and behavioral control. Digital transformation using the FWS concept has had positive and negative impacts on the civil servants' green work behavior, and in maintaining their performance.

Entrepreneurship Education and Other Exogenous Variables in the Theory of Planned Behavior Model: A Systematic Literature Review

Rustiana — 2025-01-15

Introduction/Main Objectives: The aim of the study is to: 1) identify the role entrepreneurship education (EE) in the theory of planned behavior (TPB) model, and how it enhances students’ entrepreneurship intention (EI), 2) identify various other exogenous variables commonly paired with EE that increase EI, 3) map the various roles of EE and the exogenous variables in improving students’ EI into a single model. Background Problems: What is the role of entrepreneurship education and the exogenous variables in the TPB model, and how do they increase students’ entrepreneurship intention? Novelty: This paper’s novel contributions include 1) filling the knowledge gap in the field of entrepreneurship related to the TPB model, 2) proposing a map to depict the integration of EE and other exogenous variables into the TPB model, to make one comprehensive model. Research Methods: The data sets were drawn from the Scopus database with a systematic literature review approach, with a protocol that used the keywords "entrepreneurship education," "entrepreneurial education," and "TPB." The protocol found 108 articles in the Scopus database, published between 2006 and 2023, which were extracted. Then, the articles underwent further analysis using exclusion and inclusion criteria, resulting in 24 articles that met our requirements. Quantitative and qualitative analysis were then carried out, using statistical descriptive and bibliometric analysis. Finding/Results: This study shows that entrepreneurship education and the exogenous variables that influence entrepreneurship intention in the TPB model have various roles. Conclusion: The results expose critical research gaps and the need to develop new theoretical frameworks that combine and extend the TPB model with other relevant variables in higher education.