Gadjah Mada International Journal of Business

Influence of Employee Involvement in Total Productive Maintenance Practices on Job Characteristics: The Malaysian Scenario

Aizzat Mohd Nasurdin, Muhamad Jantan, Wong Wai Peng, T Ramayah — Mon, 12 Sep 2005 00:00:00 +0700

The main goal of this study is to examine whether the extent of involvement in Total Productive Maintenance (TPM) practices has a positive effect on job characteristics. Data was gathered from a sample of 184 respondents derived from manufacturing companies in Malaysia. Results from the regression analyses revealed that the extent of employee’s involvement in TPM practices is positively related to the five core job dimensions (skill variety, task identity, task significance, autonomy, and feedback). Theoretical and managerial implications of the findings are discussed.

The Relationships among Customer Value, Satisfaction and Behavioral Intentions: A General Structural Equation Model

Wahyuningsih Wahyuningsih — Mon, 12 Sep 2005 00:00:00 +0700

The objective of this paper is to present a comprehensive framework of relationships among customer value, satisfaction, and behavioral intentions. Before testing the model, literature review on the three constructs is presented. From this review, three hypotheses are proposed and tested in this study: (1) Customer value is antecedent to customer satisfaction, (2) Customer value has a direct link to behavioral intentions, and (3) The relationship between customer value and behavioral intentions is mediated by customer satisfaction. Structural Equation Modeling using AMOS 5 was employed to test the model. The result suggests that the relationship between customer value and behavioral intentions is mediated by customer satisfaction.

PSYCHOLOGICAL CONTRACT VIOLATION AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR

Rozhan Othman, Rasidah Arshad, Noor Azuan Hashim, Rosmah Md Isa — Mon, 12 Sep 2005 00:00:00 +0700

A psychological contract is an implicit understanding between a group of employees and their employer that arose as a result of a particular leadership style. Psychological contract violation (PCV) is said to occur when there is a perceived breach of promise that leads to an emotional and affective response. The literature on PCV posits a number of antecedents and outcomes of PCV. This study seeks to develop a model of PCV by linking it with justice and organizational citizenship behavior (OCB). It is argued that the antecedents of PCV lead to a sense of injustice. These will then create the emotional response that is indicative of PCV. It is also argued that an outcome of this PCV experience is reduced OCB and the emergence of a new outlook towards employment relationship. Data was collected from a Malaysian company that initiated a voluntary separation scheme as part of an effort to downsize its work force. The finding of this study provides partial support for the model.

The Existence of Equilibrium Asset Price Under Diverse Information

R. Agus Sartono — Mon, 12 Sep 2005 00:00:00 +0700

We investigate the effects of diverse information on the price of risky assets in rational expectation model. The expected cash flows innovation is considered as private information where informed trader knows it. It is assumed that the high informed trader has smaller variance error regarding the cash flows innovation than the low informed trader and uninformed traders. We found that the cash flow innovation influences the demand of informed trader. The market depth is a linear function of the demand of uninformed trader and weighted average of total variance error of information. Our finding supports previous research done by Spiegel and Subrahmanyam (1992).
Our model shows that the more diverse the information, the higher the lambda coefficient which means the market becomes less liquid. The models consistent with Miller (1977) who found that the bigger the gap of private information is, the less liquid the market will be. If both informed traders have the same information they will demand the same amount of risky asset and it turns out to be similar as in the Kyle (1985) model.

Knowledge as a Critical Resource in Innovation among Small Furniture Companies in Indonesia: An Exploration

Marina van Geenhuizen, Nurul Indarti — Mon, 12 Sep 2005 00:00:00 +0700

The furniture industry makes a significant contribution to the Indonesian economy but is exposed to an intensifying competitive environment and to emerging shortages of raw material. These circumstances have prompted small furniture manufacturers in the district of Jepara to undertake several types of innovation. It appears that of all first ranked innovations, product innovation is the largest category. In the overall pattern of innovations, market innovation and logistics innovation are also important, a situation that can be explained by the typical character and current circumstances of the furniture industry in this area. The innovation process concerned mainly relies on traditional knowledge sources, namely in-house learning-by-doing and experimentation, and buyers (customers). However, the manufacturers show willingness to use other knowledge sources in the near future, particularly more formal and globally oriented ones, such as exhibitions, research institutions, and the Internet. What tends to hamper such progress is that the manufacturers’ capability to access these knowledge sources is limited by financial obstacles and to a smaller extent by complexity and language obstacles. The paper concludes with a few policy recommendations and potential directions of future research. One of the policy recommendations aims at a combination of the traditional way of knowledge generation through in-house learning-by-doing and experimentation with knowledge from modern and formal sources.

AN ASSESSMENT OF MICROFINANCE INSTITUTION PERFORMANCE: The Importance of Institutional Environment

Lincolin Arsyad — Mon, 12 Sep 2005 00:00:00 +0700

This paper aims to assess the performance of Village Credit Institutions (Lembaga Perkreditan Desa or LPD) in Gianyar district, Bali province, Indonesia and its affecting factors –particularly its institutional environment. The performance indicators assessed include financial indicators (such as portfolio quality, leverage, capital adequacy ratio, productivity, efficiency, profitability, and financial viability) and outreach of the LPDs. Institutions here refer to the rules or procedures that shape how agents (people) interact and the organizations that implement the rules and codes of conduct to achieve desired outcomes. Based on data from financial reports of 174 LPDs of Gianyar district in 1999 and 2001, interviews with some stakeholders (clients, chairmen, and member of commissioner board) of the LPDs, and using descriptive analysis approach, this paper reveals that the LPDs have achieved a good performance indicators and been sustainable, and the good performance and sustainability have been very much influenced by institutional environment which includes both formal and informal institutions.