American Research Journal of Business and Management

FABINU, Idris. Babatude1, MAKINDE, Kazeem. Olajide2*, Folorunso Akeem Olalekan1

Economic development is an important issue in the 21st Century. The attention has therefore being focused on microfinance institutions and their contributions towards economic development. The main objective of this paper is to sample the opinion of professional accountants on the contribution of Microfinance Institutions credit towards economic development in Nigeria. The study proposes some credit strategies to be adopted by MFIs for them to be able to contribute meaning to the development of the economy. The population of the study comprises of accountants in Ogun State Nigeria, upon which they were stratified in to three (3) strata (sector), viz, Accountants in the Public, Private and Industry sector. One hundred and eighty-four (184) of the population constituted the sample size selected through convenient sampling across each stratum. A combination of descriptive statistics and multiple regression analysis were used to analyze the data collected. The study revealed that credit subsidy by relevant arms of government (0.604) was found to be significant at 1% with a coefficient value of (3.455). This implies that credit subsidy as an adopted credit strategy influence the level of output of economically active individuals and SMEs. Thus, the more MFIs adopt the use of credit subsidy as a credit strategy the likelihood the effect of economy is being suppressed. Other significant parameters are Sourcing for external funds (0.127) significant at 1%, training on proper utilization of credit facility (.035) significant at 10%. The implication of these is that as beneficiaries are trained on the utilization of credit, the less likelihood would the effect of GDP growth be observed. In all, credit subsidies, sourcing for external funds by MFI and training on proper utilization of credit beneficiaries was all found to influence the output of MFI activities as a credit strategy for economic development. The study therefore, recommends that, accountants and Managing Directors of various MFIs should adopt the credit strategies propounded in the study for them to be able to contribute meaningfully towards government efforts and economic development at large.

Siti Maemunah, Asep Hermawan, Hotniar Siringoringo

Small and Medium Enterprise (SME) plays a key role in actualizing the Indonesian economic growth. Job opportunities, tax contribution, export business, and import revenue facilitate the distribution of commodities and help develop the human resources. This research aims to unveil the effects of strategic orientation, technology innovation, and business strategy in improving business performance of SME of fashion industry in Jakarta. The data was collected from questionnaires distributed to 250 respondents. The data was analyzed with structural equation modeling (SEM) and processed with LISREL 8.8. The result of this research proves that strategic orientation plays a positive in business strategy. Based on such finding, it is concluded that ways to sustain and increase the effectivity of strategic orientation are to collect information regarding customers’ needs and desires, to agree upon a commitment from all decision makers and employees to satisfy customers, and to improve business performance. By technology innovation, old-design products can have new designs which meet the market’s expectation and are qualified. Also, the process innovation is effective to make business performance even better. Business strategy has to assure the ability of fast-handling in order to improve business performance, especially in tough situation such as internal and external threats. For every sold unit, business performance will improve.

M. Ahsin Sidqi, Asep Hemawan, Zainal

This study examines the influence of innovation strategies and the role of learning organization to the performance of PLN business units. The dimensions of innovation strategy are (1) entrepreneurial leadership, (2) process innovation (3) service innovation and (4) learning organization as mediation to improve business unit performance. Business units of PT. The questionnaire consisted of 42 questions of choice with five Likert scales and one open question for analysing the 5 latent variables of the study. Data processing using SPSS 19 and SEM with software application LISREL Version 8.8. The findings of this research is the role of learning organization and entrepreneurial leadership to innovation is a source of knowledge and new capabilities and can produce more quality and sustainable innovation that will ultimately improve business unit performance. This study also proves the positive effect of sustainable innovation strategies will improve performance. Proven business unit performance is influenced by itself or together by innovation factor of entrepreneurial leadership, process innovation, service innovation and mediated with learning organization. Variable learning organization has the most dominant influence on performance. This study shows that positively improving the effectiveness of innovation strategies and learning organization will result in improved performance.

Dihin Septyanto, Yuswar Z. Basri, Tatik Mariyanti

This study aims to analyze the influence of attitude factor, subjective norm, behavior control, religiosity, religious events and influence of profit maximization factor to behavior through intention of Muslim investor to invest sharia product in capital market. The benefits of this research will be a basic model for issuers in developing syariah financial instruments as well as for regulators as a basis for developing or improving sharia products in the capital market significantly. This research includes both explanatory and qualitative. The population in this study is Muslim investors who invest in sharia products in the stock market in Indonesia Stock Exchange (BEI). The sample in this research is as many as 253respondents of Muslim investors who invest in sharia products in the capital market. This research uses data analysis method using SmartPLS software version 2.0.m. PLS (Partial Least Square) is a variance-based structural equation analysis (SEM) that can simultaneously perform testing of measurement models as well as testing structural models. The results of this study indicate that the factors of influence investor behavior are attitudes / morals, subjective norms / intention, behavior control, religiosity, religious events, and profit maximization. The result of coefficient of determination (R-Square) shows that the ability of Attitude / Abandonment variable, Subjective Norm / Intention, Behavioral Control, Religiosity, Religious Event, and profit maximization in explaining Intention of Investor to invest in syariah capital market is 0.8390 or 83.90%, which means that the other variable opportunity in explaining variable Intensi investor investing in sharia capital market is 16.10%. Variable intention in explaining the behavior of investors investing in sharia capital market has a coefficient of determination of 0.7106 or equal to 71.06%. This means that other variable opportunities in explaining investor behavior invest in sharia capital market is equal to 28,94%. The results of this study can be taken into consideration for the parties concerned for the relevant parties such as the Indonesia Stock Exchange, Bapepam, MUI and other related institutions to further socialize investments in Islamic capital markets in accordance with Islamic teachings. This socialization can be through lecture materials of ustadz/ experts conducted in certain communities, such as campus, offices, and recitation.

Darnus Djaya, Farida Jasfar, Hamdy Hady

The aim of this study was to examine the direct and indirect effects of health care service quality, hospital image, economic experience, word of mouth (WOM) communication through seeing patients. In addition, the role of patients as mediators and their relational consequences will also be tested.The model proposed in this study was tested using Structural Equation Model (SEM). Data were collected from a sample of 302 patients Badan Penyelenggara Jaminan Sosial (BPJS members), questionnaires about experience, which were experienced directly by the research target.This research found that the image of the hospital, economic experience, and the perception of the patients had a direct impact on WOM communication. While the quality of health services must be mediated by the perception of patients to influence WOM communication or must be arranged simultaneously with the hospital image, economic experience, and patient perceptions. Therefore hospital management must carry out the quality of hospital services along with managing the hospital image and applying the concept of economic experience so as to build patient perceptions and ultimately create WOM communication in patients.

Zainal Berlian

The most important thing in an organization is how an organization is managed well, including the readiness of human resources to deal with changes that occur so quickly. Competence will be very influential on job satisfaction and organizational commitment both in the short and long term, therefore to achieve the vision and mission that the organization has established, the organization must be able to create job satisfaction and organizational commitment. This research was conducted on lecturers who taught at private universities in Palembang as many as 254 respondents from undergraduate and postgraduate education who had five years of experience as lecturers. There is a positive influence between competency on job satisfaction and organizational commitment, meaning that to create job satisfaction and organizational commitment in an organization, competencies are needed in accordance with the field of work. Therefore the suggestion in this study is to improve the competence of lecturers who teach, either through additional education or further education which can create job satisfaction and organizational commitment both in the short and long term. the managerial implication is that the university must be able to provide a budget to improve job satisfaction and organizational commitment through efforts to improve the competence of teaching lecturers.

Heni Mularsih1, dan Lerbin Aritonang2

The research conducted in this paper is a previous follow-up study. This study was conducted on 1000 female students at 10 universities in the Kopertis III Region. The purpose of this study was to examine the nomological validity of service quality, namely by using engagement. These two variables are measured by a Likert scale and their validity and reliability are tested. Nomologic validity alone is tested by correlation and regression analysis. From the results of the analysis and testing, it was found that the nomologic validity was tested empirically.