Journal of Indonesian Economy and Business <p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="/v3/public/site/images/jieb/homepageImage_en_US_(1).jpg" width="331" height="455"></p> <p style="text-align: justify;">Journal of Indonesian Economy and Business (JIEB), with registered number print ISSN&nbsp;<strong><a title="ISSN" href=";search[]=MUST=issnl=0215-2487&amp;currentpage=1&amp;size=10" target="_blank" rel="noopener">2085-8272</a></strong>; online ISSN&nbsp;<a title="Check ISSN" href=";search[]=MUST=issnl=0215-2487&amp;currentpage=1&amp;size=10" target="_blank" rel="noopener"><strong>2338-5847</strong>, </a>is open access, peer-reviewed journal whose objectives is to publish original research papers related to the <strong>Indonesian economy and business issues</strong>. This journal is also dedicated to disseminating the published articles freely for international academicians, researchers, practitioners, regulators, and public societies.</p> <p style="text-align: justify;">The journal welcomes authors from any institutional backgrounds and accepts rigorous empirical research papers with any methods or approach that is relevant to the Indonesian economy and business context or content, as long as the research fits one of three salient disciplines: economics, business, or accounting.&nbsp;</p> <p style="text-align: justify;">The JIEB is Internationally indexed in EBSCOHost (<a href="">Business Source Corporate Plus</a>&nbsp;and&nbsp;<a href=";sid=d9b01640-fc29-4180-b733-0ef52c7990ab%40sessionmgr4006&amp;bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&amp;jid=BL33">Business Source Complete</a>),&nbsp;<a href="">EconLit</a>,&nbsp;<a href="">ProQuest</a>,&nbsp;<a href=";user=9VyQpCoAAAAJ&amp;view">Google Scholar</a>,&nbsp;<a href="">DOAJ</a>,&nbsp;<a href="">Microsoft Academic Search</a>, and ACI (<a title="ACI" href=";id=634">ASEAN Citation Index</a>). &nbsp;Furthermore, this journal has been nationally accredited by the Directorate-General for Research Strengthening and Development, the Ministry of Research and Technology for Higher Education, Republic of Indonesia (Decree No. 148/M/KPT/2020) in <a href="">SINTA 2 (Indonesian Science &amp; Technology Index).</a></p> <p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="/v3/public/site/images/jieb/Akreditasi_JIEB.JPG" width="522" height="346"></p> Faculty of Economics and Business, Universitas Gadjah Mada en-US Journal of Indonesian Economy and Business 2085-8272 <p><strong>Copyright</strong></p> <p>Upon acceptance of an article, authors transfer copyright to the JIEB as part of a journal publishing agreement, but authors still have the right to share their article for personal use, internal institutional use and scholarly sharing purposes, with a DOI link or URL link. Author (s) may not upload the manuscript to the internet without permission from the JIEB.</p> <div> <p><strong>Open Access</strong></p> </div> <p>Articles are freely available to the public without any subscription with permitted reuse. For open access articles, permitted third party (re)use is defined by the following Creative Commons user licenses:&nbsp;<em><strong>Creative Commons Attribution (CC BY-SA)</strong>.</em></p> The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia <p><strong>Introduction/Main Objectives: </strong>This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. <strong>Background Problems: </strong>Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. <strong>Novelty:</strong> This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. <strong>Research Methods: </strong>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. <strong>Finding/Results: </strong>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. <strong>Conclusion: </strong>Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.</p> Pananda Pasaribu Bonnie Mindosa Copyright (c) 2021 Journal of Indonesian Economy and Business 2021-05-11 2021-05-11 36 2 93 123 10.22146/jieb.v36i2.1385 Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack <p><strong>Introduction/Main Objectives: </strong>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)<strong>. Background Problems: </strong>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. <strong>Novelty: </strong>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. <strong>Research Methods: </strong>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). <strong>Finding/Results: </strong>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. <strong>Conclusion: </strong>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.</p> Aryan Danil Mirza. BR Kharisa Rachmi Khoirunisa Copyright (c) 2021 Journal of Indonesian Economy and Business 2021-05-11 2021-05-11 36 2 124 135 10.22146/jieb.v36i2.1771 Empathetic Leadership, Job Satisfaction and Intention to Leave among Millennials in a Start-up Industry: Needs’ Satisfaction as a Mediating Variable <p><strong>Introduction/Main Objectives: </strong>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. <strong>Design/methodology/approach:</strong> 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. <strong>Findings:</strong> 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. <strong>Originality:</strong> 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.<strong> Research limitations/implications:</strong> 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.<strong> Policy and Practical implications:</strong> 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.</p> <p>&nbsp;</p> Muhammad Cesare Wicaksana Negoro Amin Wibowo Copyright (c) 2021 Journal of Indonesian Economy and Business 2021-05-11 2021-05-11 36 2 136 154 10.22146/jieb.v36i2.1398 Intellectual Dynamics of Good Governance Studies: A Bibliometric Analysis <p><strong>Introduction/Main Objectives:</strong> This study presents a bibliometric analysis of good governance research publications from the Scopus database from 1984 to 2020. <strong>Background Problems:</strong> Since ​​good governance has an essential and central role in organizations, the research trends on good governance in the literature need to be revealed. <strong>Novelty:</strong> 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. <strong>Research Methods:</strong> 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. <strong>Finding/Results:</strong> The results showed an increase in the growth rate of good governance literature from 1984 to 2020, particularly since 2011. <strong>Conclusion:</strong> 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.</p> Fauzan Adi Susilo Jahja Copyright (c) 2021 Journal of Indonesian Economy and Business 2021-05-11 2021-05-11 36 2 155 178 10.22146/jieb.v36i2.1411 Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia MSMEs in Yogyakarta <p><strong>Introduction/Main Objectives: </strong>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.&nbsp; <strong>Background Problems: </strong>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<strong>. </strong>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. <strong>Novelty: </strong>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. <strong>Research Methods: </strong>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. <strong>Findings/Results: </strong>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. <strong>Conclusion:</strong> The antecedents are insignificant for innovation capability, but the antecedent’s constructs still act as a driver to build innovation capability.</p> Baroroh Nurhayati Titik Kusmantini Tri Wahyuningsih Copyright (c) 2021 Journal of Indonesian Economy and Business 2021-05-11 2021-05-11 36 2 179 203 10.22146/jieb.v36i2.1399