Journal of Economics, Entrepreneurship, Management Business and Accounting

Innovation Capability As a Strategic Asset: Examining the Human Resource Dynamics and Technology Integration in Business Performance

Muh. Rasbi, Erwin, Andika Isma, Hajar Dewantara, Muhammad Nur Alam Muhajir — Tue, 31 Mar 2026 00:00:00 +0000

Purpose – This study aims to analyze business performance models using innovation capabilities, which are rarely used to improve business performance.

Design/methodology/approach – The research method used is quantitative, collecting data from entrepreneurs using questionnaires and analyzing them using Partial Least Squares-Structural Equation Modeling

Finding/Results – The findings of this study indicate that there is no significant relationship between innovation capabilities and business performance, and there is no moderating effect of technology access on the relationship between innovation capabilities and business performance.

Originality/Value – This study contributes to the literature by uncovering a 'performance paradox', where innovation capability—contrary to conventional theories—shows no significant impact on business performance. It shifts the academic focus from internal innovation processes to the critical necessity of direct technology access as a primary driver for business resilience in the digital era.

Emotional Dynamics in Toxic Creative Workplaces in Southeast Asia

Nurjaya, Raeni Dwi Santy, Ardhi Goeliling, Fatmawati A Rahman — Tue, 31 Mar 2026 00:00:00 +0000

Purpose – This study aims to explore the emotional dynamics of employees working in toxic work environments in the creative industries, and to understand how these conditions affect their identity, well-being, and creative processes.

Design/methodology/approach – This study used a narrative inquiry approach to capture the lived experiences of participants. Data were collected through in-depth, semi-structured interviews with 18 creative professionals from the advertising, digital media, and film production sectors. Thematic narrative analysis was used to identify key patterns in their experiences.

Finding/Results – The research revealed four main themes: (1) emotional dissonance and identity stress, where employees suppress authentic feelings to conform to organizational expectations; (2) burnout and emotional exhaustion resulting from chronic workloads that diminish creativity; (3) silencing and erosion of trust that undermine psychological safety and collaboration; and (4) narrative coping and resilience strategies, where employees use stories, coworker solidarity, and reframing to maintain meaning and identity.

Originality/Value – This research contributes to organizational studies by situating the issues of emotional labor, burnout, and psychological safety within the context of the creative industries, where the interconnectedness of professional identity and creative output increases vulnerability to toxic environments. Methodologically, this study demonstrates the value of narrative inquiry in uncovering the complexities of work emotions and hidden resilience strategies. Practically, these findings emphasize the importance of systemic interventions and leadership practices that build trust, recognition, and psychological safety to maintain employee well-being and sustain creativity and innovation.

Development Model of People’s Business Credit Impact on MSME Productivity and Sustainability

Wuri Septi Handayani, Rinny Meidiyustiani — Tue, 31 Mar 2026 00:00:00 +0000

Purpose – This study aims to analyze the impact of People’s Business Credit (KUR) distribution on MSME productivity and business sustainability among women-owned MSMEs in Tangerang City.

Design/methodology/approach – This study uses quantitative and qualitative approaches. Data were collected through questionnaires and interviews with 90 women MSME actors. The data were analyzed using descriptive statistics and structural modeling with SmartPLS.

Finding/Results – The results show that KUR distribution has a positive and significant influence on MSME productivity and business sustainability. Productivity also significantly influences business sustainability.

Originality/Value – The study provides a model explaining how access to credit improves productivity and supports the long-term sustainability of MSMEs.

The Effect of Service Quality and Corporate Image on Customer Loyalty: The Mediating Role of Customer Satisfaction

Tue, 31 Mar 2026 00:00:00 +0000

Purpose: This study examines the effects of service quality and corporate image on customer loyalty, with customer satisfaction as a mediating variable, in the banking sector in North Sumatra, Indonesia. The study is grounded in SERVQUAL theory, Expectation-Confirmation Theory (ECT), and Relationship Marketing Theory to explain the mechanisms of loyalty formation.

Design/methodology/approach: A quantitative explanatory design was employed using a cross-sectional survey of 210 active bank customers selected through purposive sampling. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to test both direct and indirect relationships among the constructs.

Findings: The results indicate that service quality has a significant positive effect on customer loyalty (β = 0.393) and customer satisfaction (β = 0.795). Corporate image significantly influences customer satisfaction (β = 0.343) but does not directly affect customer loyalty (β = −0.043). Customer satisfaction significantly affects customer loyalty (β = 0.182). Mediation analysis shows that customer satisfaction does not mediate the relationship between service quality and customer loyalty, but significantly mediates the relationship between corporate image and customer loyalty.

Research implications/limitations: This study contributes to theory by demonstrating that customer satisfaction acts as a selective mediator, distinguishing between functional and perceptual antecedents of loyalty. However, the cross-sectional design, regional sample, and reliance on self-reported data limit generalizability and causal inference.

The Mediating Role of Work Engagement in the Relationship Between Organizational Culture and Employee Performance in Indonesian MSMEs

Supiah Ningsih, Danil Syahputra, Rudy Irwansyah — Mon, 30 Mar 2026 00:00:00 +0000

Purpose - This study aims to examine the mediating role of work engagement in the relationship between organizational culture and employee performance in Indonesian Micro, Small, and Medium Enterprises (MSMEs).

Design/Methodology/Approach – A quantitative cross-sectional survey design was employed. Data were collected from 210 MSME employees across trade, service, and manufacturing sectors in North Sumatra, Indonesia. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess direct and indirect relationships among organizational culture, work engagement, and employee performance.

Findings – The results indicate that organizational culture has a positive and significant effect on employee performance (β = 0.381, p < 0.001) and work engagement (β = 0.721, p < 0.001). Work engagement also significantly affects employee performance (β = 0.409, p < 0.001) and partially mediates the relationship between organizational culture and employee performance (β = 0.295, p < 0.001). The model demonstrates substantial explanatory power, with R² values of 0.520 for work engagement and 0.612 for employee performance.

Research Limitations/Implications – This study is limited by its cross-sectional design, which restricts causal inference, and its focus on MSMEs in North Sumatra, which may limit generalizability. Future research is encouraged to adopt longitudinal designs and broader regional samples.

Practical Implications – The findings highlight the importance of fostering a supportive organizational culture to enhance employee engagement and improve performance outcomes in MSMEs.

Originality/Value – This study contributes to the literature by providing empirical evidence on the mediating role of work engagement in MSMEs, a context that remains underexplored in prior research.

AI-Driven HRM and Employee Performance: The Mediating Role of HR Agility in Industrial Companies

Ade Mubarok, Nursaimatussaddiya — Mon, 30 Mar 2026 00:00:00 +0000

Purpose - This study examines the effect of AI-driven human resource management on employee performance and investigates the mediating role of HR agility in industrial companies in West Java, Indonesia.

Design/methodology/approach – A quantitative explanatory design was employed using a cross-sectional survey of 214 employees from industrial firms. Data were collected through structured questionnaires and analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS) via SmartPLS to test both direct and indirect relationships among the constructs.

Findings – The results indicate that AI-driven human resource management has a positive and significant effect on HR agility and employee performance. HR agility also significantly improves employee performance. Furthermore, HR agility partially mediates the relationship between AI-driven human resource management and employee performance, indicating that the effectiveness of AI-based HR practices depends on the organization’s ability to develop adaptive and responsive HR systems.

Limitations – This study is limited by its cross-sectional design, reliance on self-reported data, and focus on industrial companies in a single regional context, which may restrict generalizability.

Originality/value – This study contributes to digital HRM and dynamic capability literature by positioning HR agility as a key mechanism through which AI-driven HR practices enhance employee performance in an emerging economy context.

Integration of Islamic Social Finance and Digitalization for MSME Strengthening and Poverty Alleviation: Evidence from SEM-PLS

Danil Syahputra, Supiah Ningsih, Muhammad Radian Syah — Mon, 30 Mar 2026 00:00:00 +0000

Purpose - This study examines the integrated role of Islamic social finance and economic digitalization in strengthening MSMEs and alleviating poverty in North Sumatra, Indonesia. While prior studies have largely analyzed these domains separately, this research is motivated by the need for a unified framework that explains how their interaction contributes to inclusive economic development. The study specifically investigates the mediating role of MSME strengthening in linking finance digitalization integration to poverty reduction.

Design/Methodology/Approach – A quantitative explanatory approach was employed using survey data from 210 MSMEs across trade, service, and food processing sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (SEM-PLS) with bootstrapping (5,000 resamples) to test direct and indirect relationships among Islamic social finance integration, economic digitalization, MSME strengthening, and poverty alleviation.

Findings/Results - The results show that Islamic social finance integration (β = 0.312) and economic digitalization (β = 0.421) significantly enhance MSME strengthening. Both variables also directly influence poverty alleviation (β = 0.198 and β = 0.243), while MSME strengthening has a strong positive effect on poverty alleviation (β = 0.379). Mediation analysis confirms that MSME strengthening partially mediates these relationships, indicating that MSMEs function as a key transmission mechanism. These findings demonstrate that integrating financial inclusion and digital transformation produces both direct and indirect welfare effects.

Originality/Value - This study contributes by proposing an integrated finance digitalization framework that positions MSMEs as a central mediating mechanism in poverty alleviation. The findings highlight that sustainable poverty reduction is more effective when Islamic social finance is combined with digital economic systems and channeled through MSME development, offering practical implications for policymakers in designing inclusive, technology-enabled economic strategies.

Human Resource Ambidexterity and Sustainable Performance: Mediating HR-Based Quality Assurance and Moderating External Environment

MHD Andy Rasyid, Pangeran — Mon, 30 Mar 2026 00:00:00 +0000

Purpose - This study examines how human resource ambidexterity contributes to sustainable performance in private higher education institutions. Despite increasing environmental pressures, limited research has clarified the mechanism through which ambidexterity is transformed into sustainable performance, particularly through HR-based quality assurance systems and the role of the external environment.

Design/methodology/approach – A quantitative explanatory approach was employed using data from 95 private universities under LLDIKTI Region I. Data were collected through structured questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with bootstrapping procedures to test direct, mediating, and moderating relationships.

Findings - The results indicate that human resource ambidexterity significantly influences HR-based quality assurance (β = 0.243; p = 0.013) and sustainable performance (β = 0.258; p = 0.018). HR-based quality assurance has a strong positive effect on sustainable performance (β = 0.370; p < 0.001) and partially mediates the relationship (β = 0.090; p = 0.043). The external environment negatively moderates the relationship (β = −0.215; p = 0.023), suggesting reduced effectiveness of ambidexterity under high environmental uncertainty.

Originality/value - This study extends ambidexterity theory by integrating HR-based quality assurance as a key mediating mechanism and highlighting the contingent role of the external environment. The findings emphasize that sustainable performance in private higher education depends more on internal HR capability alignment than external pressures, providing practical insights for strengthening quality assurance systems.

The Influence of Financial Performance on Public Perception Toward Organizational Transparency, Accountability, and Institutional Trust

Agus Munandar — Mon, 30 Mar 2026 00:00:00 +0000

Purpose – This study examines the relationship between financial performance and public perception of a company. Financial performance reflects a company’s ability to manage resources, generate value, and sustain business growth. Strong financial performance indicates effective management and operational stability, which influence how stakeholders—such as investors, customers, and the public—evaluate the company’s credibility and future prospects.

Design/methodology/approach – This research uses a descriptive analytical approach to analyze the relationship between financial performance and public perception. Financial performance is measured using liquidity and profitability indicators. Liquidity reflects the company’s ability to meet short-term obligations, while profitability shows its ability to generate profit. Public perception is measured through firm value, which represents how the market and stakeholders assess the company’s performance and credibility.

Findings/Results – The results show that financial performance significantly influences public perception. Companies with higher liquidity and profitability tend to have higher firm value and stronger public trust.

Originality/Value – This study emphasizes that maintaining stable financial performance is important for building positive public perception and corporate reputation. Companies should manage financial resources effectively and communicate financial performance transparently to strengthen stakeholder confidence and increase firm value.

Determinants of Fraud Detection Ability Among Auditors

Tertiarto Wahyudi, Umi Kalsum, Rika Henda Safitri — Mon, 30 Mar 2026 00:00:00 +0000

Purpose – This study aims to examine the influence of competence, independence, work experience, time pressure, and professional skepticism on auditors’ ability to detect fraud, particularly in the context of Public Accounting Firms in Southern Sumatra, Indonesia, where prior studies have shown inconsistent results.

Design/methodology/approach – This research employs a quantitative approach using primary data collected through questionnaires distributed to auditors. A total of 64 auditors participated as respondents. The data were analyzed using multiple linear regression with SPSS software to test the proposed relationships between variables.

Finding/Results – The results reveal that competence, independence, work experience, and professional skepticism have a positive and significant effect on auditors’ ability to detect fraud. However, time pressure does not have a significant effect on fraud detection ability.

Originality/Value – This study contributes to the auditing literature by providing empirical evidence from an emerging economy, specifically Southern Sumatra, Indonesia. It emphasizes the critical role of professional competence, independence, and skepticism in enhancing auditors’ effectiveness in fraud detection, offering practical implications for improving audit quality in similar contexts.