Search results

This study aims to examine the effects of fraud triangle (pressure, opportunity and rationalization) on individual fraudulent behavior in Indonesian public procurement. Empirical research in this area is relatively sparse.

Data were collected using laboratory experiments.

The results revealed that fraudulent behavior is higher when an individual has high pressure and high opportunity. These factors play an important role in determining individual rationalization. Most of participants used “displacing responsibility” to rationalize their actions. This study also demonstrated that negative affect mediates the relationship between fraudulent behavior and rationalization.

First, fraudulent behavior research cannot be separated from social desirability bias. Second, the experiments only involved individual decision-making, not in groups. Finally, this study did not examine the effectiveness of rationalization in reducing negative affect.

Over the years, the government has only focused on the identification of pressure and reduction of opportunities, but ignored individual psychological reasons. Considering that procurement fraud is always increasing, the government must more focus on individual reasons to design an effective prevention and detection system.

There are various conflicts of interest in public procurement budgeting. These conflicts can distort resource allocation and causes budget leakage. As a result, the government is incapacitated to achieve social and economic goals of the community.

There is limited research about fraud in public procurement budgeting, especially in developing countries. In addition, the fraud triangle research, which focuses on rationalization is still limited.

This paper aims to assess the sense-of-community role in affecting young Muslim loyalty towards Muslim-majority tourism destinations. Specifically, this research assesses the sense of community dimension in the halal tourism context and evaluates its effects on destination satisfaction, image and loyalty.

This research used a quantitative approach by using data from 376 young Indonesian Muslim tourists with past travel experiences to destinations where Muslims are the majority. The dimension of the sense of community was evaluated using exploratory factor analysis. The association between variables was tested using partial least square-structural equation modelling.

The finding exhibits three notable sense of community dimensions: membership, influence and need fulfilment and emotional connection. Emotional connection shapes, directly and indirectly, destination loyalty, while influence and need fulfilment affect destination loyalty by satisfaction and destination image mediating role. Lastly, membership has no impact on developing destination loyalty.

This study offers tourism destinations in Muslim-majority countries an opportunity to draw and create loyalty among young Muslim tourists. Besides offering superior halal services and products, Muslim-majority tourism destinations need to develop young Muslim tourists' emotional connection to the destinations.

To the best of the authors’ knowledge, this is the first empirical examination of the sense of community's role in influencing tourist loyalty, specifically in halal tourism.

Proposing an improved model for evaluating criticality of non-value added (waste) in operation is necessary for realizing sustainable manufacturing practices. The purpose of this paper is concerning on improvement of the decision support model for evaluating risk criticality lean waste occurrence by considering the weight of modified FMEA indices and the influence of waste-worsening factors causing the escalation of waste risk magnitude.

Integration of entropy and Taguchi loss function into decision support model of modified FMEA is presented to rectify the limitation of previous risk reprioritization models in modified FMEA studies. The weight of the probability components and loss components are quantified using entropy. A case study from industry is used to test the applicability of the integration model in practical situation.

The proposed model enables to overcome the limitations of using subjective determination on the weight of modified FMEA indices. The inclusion of the waste-worsening factors and Taguchi loss functions enables the FMEA team to articulate the severity level of waste consequences appropriately over the use of ordinal scale in ranking the risk of lean waste in modified FMEA references.

When appraising the risk of lean waste criticality, ignorance on weighting of FMEA indices may be inappropriate for an accurate risk-based decision-making. This paper provides insights to scholars and practitioners and others concerned with the lean operation to understand the significance of considering the impact of FMEA indices and waste-worsening factors in evaluating criticality of lean waste risks.

The method adopted is for quantifying the criticality of lean waste and inclusion of weighting of FMEA indices in modified FMEA provides insight and exemplar on tackling the risk of lean waste and determining the most critical waste affecting performability of company operations.

Integration of the entropy and Taguchi loss function for appraising the criticality of lean waste in modified FMEA is the first in the lean management discipline. These findings will be highly useful for professionals wishing to implement the lean waste reduction strategy.

This study aims to prove the complexity of the relationship between CSR and financial performance (FP) and to decompose the complexity of the relationship using neo-institutional theory.

This research employs a meta-analysis that integrates 55 various contexts studied between 1998 and 2017 using correlation coefficient as the effect size.

This study proves that the nature of the relationship between CSR and FP is complex and suggests that the analysis of the relationship between the two variables includes institutional factors to produce generalizable conclusions. Country characteristics, forms and dimensions of CSR, CSR measurements and FP measurements explain the complexity of the relationship between CSR and FP.

Future research is expected to include industry characteristics and the corporate governance model in the analysis of the relationship between CSR and FP. Differences in industry characteristics affect the selection of CSR forms and dimensions, bringing it the potential to influence the relationship between CSR and FP. The corporate governance model adopted by developing countries and developed countries also has the potential to be an institutional factor to influence the relationship between CSR and FP.

This research proves that the complexity of the relationship between CSR and FP is nature given. This research explores the factors causing the complexity of the relationship using neo-institutional theory, which, to the author's knowledge, has not been done by other researchers.

In the context of a two-tier governance system, this study aims to investigate whether CEO overconfidence affects firm risk. In addition, this study examines the moderating role of the founder CEO on CEO overconfidence and firm risk.

This study uses a composite score index of CEO overconfidence with a sample of nonfinancial firms listed on the Indonesia Stock Exchange from 2012 to 2019. It tests the research hypothesis with multiple linear regression analysis.

The findings indicate that CEO overconfidence reduces firm risk. In contrast, the founder CEO does not affect the relationship between CEO overconfidence and firm risk.

This study supports the upper echelon theory that argues that firms’ top management affects firms’ outcomes and behaviors.

The top management team heavily affects firms’ outcomes and behaviors in a two-tier governance system. Furthermore, firms’ selection policy of overconfident CEOs will be improved because these CEOs can diversify firm risks more effectively.

To the best of the authors’ knowledge, this study is the first to examine the role of the founder in the relationship between CEO overconfidence and firm risk.

This study aims to examine the impact of founder or descendant chief executive officers (CEOs) on the relationship between tax avoidance and firms' future risk. This issue is important because of an ongoing debate about founder and descendant CEOs' impacts, contributions and implications for firms.

This study uses a sample of publicly listed nonfinancial Indonesian firms in 2012–2019, most of which are family firms and adhere to a two-tier governance system that was understudied in previous studies. The authors use panel-random effect data regression for the statistical analysis.

The results demonstrate that founder or descendant CEOs do not affect the positive relationship between tax avoidance and firms' future risks.

This research supports the upper-echelon theory, arguing that top management teams affect firms' strategic policies and outcomes.

CEOs play weaker roles in countries with a two-tier governance system than in a one-tier one. Additionally, in relation to Hofstede's cultural dimensions, Indonesia has collective and feminist characteristics that emphasize elements of togetherness and group so that firms reflect the firms' top management teams and not only CEOs.

This research fills a research gap on the role of founder and descendant CEOs in the relationship between tax avoidance and firms' future risks by analyzing firms in Indonesia, a country with a two-tier governance system and collective and feminine cultural characteristics.

The regular occurrence of natural disasters elevates the need for an effective method to measure organizational preparedness in responding to the adverse impact of disasters. In this context, this paper presents a new decision support model to assess organizational disaster preparedness using both subjective and objective disaster preparedness criteria in a multi-criteria decision-making context.

The statistical variance method is integrated with the proximity value index (PVI) technique to determine priority scores in order to rank organizational disaster readiness.

The results of applying the integrated model developed herein enable decision-makers to make informed decisions for assigning priority ranking of organizational disaster preparedness in a simpler and more efficient way.

Human resource is the most impacting criterion affecting hospital preparedness in undertaking action to cure disaster victims.

This paper offers an exemplar of a simple and efficient decision-making process considering the subjectivity associated with decision-making as well as the objectivity of data used for determining the priority ranking of organizational disaster preparedness.

Integrating statistical variance method with the PVI technique is novel and it has not been presented in previous studies. In fact, this study is the first to integrate both methods for selecting the priority ranking of organizational disaster preparedness.

The purpose of this paper is to introduce the integrated model of the Preference Selection Index (PSI) and the prospect theory as new means to appraise the impact of supply chain sustainability risks based on five pillars of sustainability. Research has shown that sustainability risk assessment has a strong positive impact on improving the performance of enterprises.

This study adopts a new decision support model for assessing supply chain sustainability risk based on additional failure mode and effect analysis parameters and its integration with PSI methodology and prospect theory. A case example of the supply chain small and medium enterprise (SME) producing fashion have been used in this study.

The result of this study reveals some critical supply chain sustainability risks affecting the sustainability of enterprises under study.

The use of a limited sample is often associated as a limitation in the research studies and this study is based on findings from SMEs in the fashion retail supply chain. This preliminary study provides academics and practitioners an exemplar of supply chain sustainability risk assessment using integration of the PSI method and prospect theory.

The result of this study is beneficial for practitioners, particularly owner–managers of SMEs who can use this study as guidance on how to consider risk behavior to identify and select the critical sustainability risks and plan mitigating strategies accordingly.

Scientific studies on using the PSI and its integration with prospect theory as means to assess the criticality of supply chain sustainability risks is very rare. To the best of the authors’ knowledge, this is the first paper that presents the integrated model of the PSI and prospect theory to rank supply chain sustainability risks based on five pillars of sustainability.

This study proposes a new model for assessing supply chain sustainability risk integrating subjectivity and objectivity of decision-maker. Research has shown the vacancy of study in dealing with the above issue. To fill this research gap, a new decision support model considering the subjectivity and objectivity of decision-makers in assigning the weight of the supply chain risk reprioritization criteria is presented and demonstrated using a case example.

This study adopts a new decision support model for assessing supply chain sustainability risk based on additional failure mode and effect analysis (FMEA) parameters and its integration with preference selection index (PSI) methodology and the Shannon entropy. A case example of the supply chain small and medium enterprise (SME) producing handy crafts has been used in this study.

The result of the study reveals critical sustainability risk dimensions and their risk elements demanding management attention to support realization to a more sustainable business operation.

The use of a single case study is often associated as a limitation in the research studies, and this study is based on findings from SMEs in the handy craft sector in a developing country. Nonetheless, future studies may focus on replicating this study using more samples. This preliminary study provides academics and practitioners with an exemplar of supply chain sustainability risk assessment from the SME in a developing country.

The result of this study is beneficial for practitioners, particularly owner-managers of SMEs who can use this study as guidance on how to identify and select the critical sustainability risks and plan mitigating strategies accordingly.

Scientific effort on appraising criticality of supply chain sustainability risks considering subjectivity and objectivity of decision-maker simultaneously is missing in earlier studies. To the best of the author’s knowledge, this is the first paper applying the PSI and Shannon entropy method and using it for evaluating the impact of supply chain risk based on five sustainability pillars. The findings and suggestions for future research initiatives will provide new insights for scholars and practitioners in managing SME supply chain sustainability risks.