Gadjah Mada International Journal of Business

Optimizing Financial Report Quality in Balinese Credit Institutions

2026-08-29T09:11:36+07:00

Purpose – This study examines the moderating role of the indigenous ethical framework of Tri Hita Karana (THK) in the relationships between leadership ethics, financial report accessibility, internal control systems, and financial report quality in Balinese Credit Institutions (LPDs). Design/methodology/approach – A quantitative survey was conducted involving 146 employees from LPDs across the nine administrative regions of Bali, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings – Leadership ethics, financial report accessibility, and internal control systems positively influence financial report quality. THK also has a positive direct effect on financial report quality. However, its moderating role is selective, significantly strengthening only the relationship between internal control systems and financial report quality, while showing no significant moderating effect on the relationships involving leadership ethics and financial report accessibility. Practical implications – The findings suggest that integrating indigenous ethical values with formal internal control systems can strengthen financial reporting practices in community-based financial institutions. Originality/value – This study extends the business ethics literature by demonstrating that an indigenous ethical framework selectively reinforces governance mechanisms rather than uniformly strengthening all determinants of financial report quality, thereby providing evidence for integrating indigenous ethics into contemporary financial governance

Cancel Culture as a Talent Management Shock: Psychological Safety, Internal Mobility, and Retention

2026-08-31T08:09:40+07:00

Purpose – This study examines how cancel-culture exposure disrupts internal talent flows through psychological safety and whether procedural justice and a diversity, equity, and inclusion (DEI) climate buffer it. Design/methodology/approach – Evidence integrates 12 quarters of HRIS/ATS records from 18 Indonesian foodservice firms, a three-wave time-lagged survey of 486 employees in 60 units, and 18 interviews using event-study, survival, multilevel structural equation, moderated-mediation, and thematic analyses. Findings – Exposure was associated with lower mobility-pipeline activity and internal-move hazards and higher voluntary-exit odds and exit hazards. Psychological safety partially mediated the attitudinal relationships, while procedural justice and DEI climate weakened the exposure–safety pathway. Research limitations/implications – Residual time-varying confounding, complete-case analysis, and a sector-specific setting constrain causal and cross-context inference. Practical implications – HR leaders should combine incident monitoring, transparent procedures, protected voice, and inclusive communication. Social implications – Inclusive crisis responses can reduce fear-driven silence and indiscriminate career withdrawal. Originality/value – The study identifies cancel-culture exposure as an external-to-internal HR shock transmitted partly through psychological safety.

Political Connections, Investment Efficiency, And the Regime Change in Malaysia

2026-08-29T09:33:37+07:00

Purpose – This study examines how Malaysia’s 2018 political regime change affected investment efficiency among politically connected firms (PCFs). Design/methodology/approach – Treating the transition as a quasi-natural experiment, the study applies a difference-in-differences design to listed Malaysian firms from 2015–2020. Findings – Investment efficiency declined significantly among PCFs relative to non-connected firms after the transition, primarily through increased overinvestment. Capital allocation inefficiency and managerial overconfidence emerge as possible channels, and the effect is concentrated among firms affiliated with the former ruling coalition. Research limitations/implications – Evidence from one political transition may not generalise to other institutional settings; future work should test comparable transitions using more granular investment data. Practical implications – Firms should strengthen governance and investment oversight during political transitions. Social implications – Reducing political patronage and improving institutional governance can support more efficient capital allocation and sustainable development. Originality/value – The study provides novel quasi-experimental evidence that changes in political alignment shape corporate investment efficiency.

From Feuds to Future: The Role of Conflict Resolution in Strengthening Family Business Resilience

2026-08-29T10:32:33+07:00

Purpose – This study examines how formal governance and dispute-resolution mechanisms relate to transgenerational resilience in family businesses. Design/methodology/approach – A sequential exploratory design combined nine expert interviews with a survey of 191 dispute cases reported by 537 conference attendees in Singapore and Hong Kong. Firth penalised logistic regression addressed quasi-separation. Findings – Fairness was the strongest predictor of successful resolution (OR = 8.92), followed by enforceability (OR = 4.27) and formal mechanisms (OR = 3.20); informal mechanisms reduced the odds of resolution (OR = 0.31). Scores below 3.0 for fairness or enforceability indicated high failure risk. Research limitations/implications – Cross-sectional data and unavailable respondent identifiers limit causal and clustering inferences. Practical implications – Families should adopt tiered protocols and mandatory ADR clauses. Social implications – Effective conflict resolution helps preserve socioemotional wealth and continuity. Originality/value – The study integrates the Three-Circle Model with Agency Theory and frames the fairness–enforceability nexus and arbitration as proactive governance architecture.

Firm Age as A Strategic Contingency: Strengthening the Effects of Innovation and Branding Capabilities on Competitive Advantage and Performance

2026-08-29T10:37:50+07:00

Purpose – This study examines whether firm age conditions relationships among innovation capability, branding capability, competitive advantage, and business performance. Design/methodology/approach – Survey data from 306 owners and managers of medium-sized batik enterprises in Madura, Indonesia, were analysed using PLS-SEM. Findings – Innovation capability strengthened branding capability, competitive advantage, and performance; branding capability strengthened competitive advantage but not performance directly; competitive advantage improved performance. Firm age positively moderated the four tested capability–outcome relationships. Research limitations/implications – The single-industry, single-region design limits generalisability. Practical implications – Managers should align innovation and branding investments with organisational maturity. Social implications – Capability development may support the sustainability of culturally embedded batik enterprises. Originality/value – The study positions firm age as a strategic contingency explaining when internal capabilities translate into competitive outcomes.