American Journal of Economic and Management Business (AJEMB)

The Effect of Work Culture, Organizational Structure, and Human Resource Competence on Bank Indonesia's Public Service Operationalization Strategy: the Mediating Role of the Fraud Auditing System

Lukas Harwiadi, Rosalendro Eddy Nugroho — Mon, 28 Sep 2026 00:00:00 +0000

Bank Indonesia’s currency management function has faced a widening gap between operational workload and the resources allocated to cash services: between 2024 and 2025, the value of unfit banknotes destroyed rose by 47.32% to IDR 94.79 trillion, whereas expenditure on cash distribution and services declined by 8.42%. This study examined the effects of work culture, organizational structure, and human resource (HR) competence on Bank Indonesia’s public service operationalization strategy, with the fraud auditing system as a mediating variable. A quantitative explanatory survey was conducted among 145 employees of the Currency Management Department, drawn purposively from a population of 225 on the basis of the Slovin formula at a 5% margin of error. Data were collected using a five-point Likert questionnaire comprising 63 indicators and analyzed with partial least squares structural equation modeling (PLS-SEM) in SmartPLS 4.0, using two-tailed bootstrapping with 5,000 subsamples. Nine of the ten hypotheses were supported. Work culture (B = 0.282) and HR competence (B = 0.229) significantly affected the operationalization strategy, whereas organizational structure had no significant direct effect (B = ?0.101; p = 0.125). All three internal factors significantly strengthened the fraud auditing system, which emerged as the strongest determinant of the operationalization strategy (B = 0.495). All indirect paths were significant, with HR competence showing the largest indirect effect (B = 0.176); work culture and HR competence were therefore partially mediated, whereas organizational structure was fully mediated. The model explained 52.9% of the variance in the fraud auditing system and 61.9% of the variance in the operationalization strategy (GoF = 0.626; SRMR = 0.050). The full mediation of organizational structure constitutes the principal contribution of this study: structural arrangements improve public service operationalization only when they are translated into stronger control mechanisms. Internal organizational reform should therefore be pursued together with, rather than separately from, the strengthening of the fraud auditing system.

Human Capital as A Determinant of Nurse Performance

Supriyanto Supriyanto, Lilik Kustiani, Sunardi Sunardi — Mon, 21 Sep 2026 00:00:00 +0000

Background: The quality of healthcare services is highly dependent on nurse performance as one of the key components in delivering safe, effective, and patient-centered care. However, challenges related to competency gaps, fluctuating work motivation, and the increasing demand for digital skills remain significant issues affecting nurses’ performance. In the era of digital transformation in healthcare, nurses are required to possess adequate competence and digital literacy to adapt to technological advancements and improve service quality. Therefore, understanding the factors influencing nurse performance is essential for developing effective strategies to strengthen healthcare human resources. Objective: This study aimed to analyze the effects of competence, motivation, and digital literacy on nurse performance.Method: This study employed a quantitative research design involving a population of 901 nurses from Type C and Type D general hospitals. The sample size was determined using the Slovin formula, resulting in 212 respondents selected through proportional random sampling. Data were analyzed using multiple linear regression with the SmartPLS application, including outer model and inner model evaluations.Results: The findings indicated that competence, motivation, and digital literacy had direct, positive, and significant effects on nurse performance.Conclusion: This study concluded that competence, motivation, and digital literacy were important factors in improving nurse performance.

Sustainable Business Model Development Strategy for Arae Fashion Using the Triple Layered Business Model Canvas (TLBMC)

Syauqiya Aina Salsabila, Ririn Wulandari — Mon, 21 Sep 2026 00:00:00 +0000

Conventional fast fashion contributes significantly to environmental degradation and social challenges, encouraging a transition toward sustainable business models. Arae Fashion, an eco-print-based social enterprise in Bogor, Indonesia, has implemented various sustainability practices but lacks a structured business model framework that can effectively respond to market development. This study aimed to analyze Arae Fashion’s existing business model, identify internal and external factors influencing its sustainability, and formulate a sustainable business model development strategy using the Triple Layered Business Model Canvas (TLBMC) approach. A descriptive qualitative method was employed, with data collected through in-depth interviews, observations, and questionnaires involving management, artisans, and consumers. The TLBMC approach was used to map 27 business model elements across economic, environmental, and social layers. VRIO analysis was applied to evaluate internal resources, industry foresight was used to identify future trends, and SWOT analysis was conducted to formulate strategic recommendations. The VRIO analysis showed that 58.82% of Arae Fashion’s resources represented sustainable competitive advantages, particularly in intellectual property ownership, human resources, reputation, and organizational capabilities. The SWOT analysis generated several priority strategies, including developing derivative products, strengthening styling capabilities for export markets, and formalizing sustainability certification. This study produced an improved TLBMC framework that integrates these strategies across the 27 business model blocks, providing practical recommendations for Arae Fashion to simultaneously strengthen its economic, environmental, and social sustainability.

Interest-to-EBITDA Rules as an Anti-Thin Capitalization Measure in Indonesia: Policy Trade-offs, Drivers, and Implementation Risks

Erik Dwi Putra, Ning Rahayu — Sat, 05 Sep 2026 00:00:00 +0000

Indonesia introduced an interest-to-EBITDA ratio as a potential interest limitation rule through the Income Tax Law, as amended by the Law on Harmonization of Tax Regulations, and Government Regulation No. 55 of 2022. At the time the underlying research was conducted, however, the technical implementing regulation had not yet been issued. This study compared the interest-to-EBITDA ratio and the debt-to-equity ratio (DER) as anti-thin capitalization measures based on the principles of sufficiency and productivity, identified the factors underlying Indonesia’s adoption of the interest-to-EBITDA approach, and examined potential implementation challenges for the tax authority. This qualitative descriptive study drew on documentary research and nine in-depth interviews involving ten policymakers, tax administrators, academics, and practitioners conducted from May to June 2023. The findings showed that neither approach was uniformly superior. In terms of sufficiency, the interest-to-EBITDA ratio was better able to limit opportunities for tax avoidance but could restrict genuine business activities when earnings were low for reasons beyond taxpayers’ control. The DER approach was more predictable and better able to accommodate ordinary business financing; however, its balance-sheet variables could be manipulated, and Indonesia’s 4:1 threshold was considered overly permissive. In terms of productivity, the interest-to-EBITDA approach provided greater financing neutrality, whereas the DER approach was more familiar and easier for taxpayers to comply with. Indonesia’s adoption of the interest-to-EBITDA approach was driven by OECD BEPS Action 4, the global shift toward earnings-stripping rules, and perceived weaknesses in the DER framework. Key implementation risks included higher compliance and administrative costs, interest-rate volatility, disputes involving the substance-over-form principle, and differences between commercial and tax EBITDA. The study recommended calibrated limitation ratios, relief mechanisms based on average EBITDA, clear fiscal adjustments, and a sector-sensitive hybrid approach.

The Effect of Financial Ratios on Financial Distress With Institutional Ownership is a Moderating Variable

Thu, 17 Sep 2026 00:00:00 +0000

Post-pandemic economic pressures, including market uncertainty, supply chain disruptions, and rising operating costs, have heightened the risk of financial distress, particularly among consumer non-cyclical companies operating in essential sectors. This study aimed to examine the effects of financial ratios, including profitability, liquidity, solvency, and activity ratios, on financial distress, with institutional ownership as a moderating variable. The research population consisted of consumer non-cyclical companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The sample was selected using purposive sampling, resulting in 84 observations from a population of 132 companies. This study employed a quantitative approach using secondary data. Data were analyzed using EViews 12 through multiple regression analysis and Moderated Regression Analysis (MRA). The results showed that profitability, liquidity, and activity ratios had significant negative effects on financial distress, whereas solvency had no significant effect. Institutional ownership weakened the effects of liquidity and solvency on financial distress but did not moderate the relationships between profitability and financial distress or between activity ratios and financial distress. These findings highlight the importance of strengthening financial structures and enhancing corporate governance mechanisms to reduce the risk of financial distress among companies in essential sectors during the post-pandemic period.

Determinants of Public Accountants' Ability to Detect Fraud

Ngaijan Ngaijan, Grahita Chandrarin, Prihat Assih — Mon, 21 Sep 2026 00:00:00 +0000

Background: Fraud is one of the major challenges in financial reporting and organizational governance, requiring auditors to possess adequate capabilities to identify and prevent fraudulent practices. Auditors’ ability to detect fraud is influenced by several professional factors, including competence, independence, and professional skepticism, which determine the quality of audit judgments and decision-making processes.Purpose: This study aimed to examine the effects of competence, independence, and professional skepticism on auditors’ ability to detect fraud.Method: A quantitative research design was employed, involving a population of all public accountants working at Public Accounting Firms (Kantor Akuntan Publik/KAP) throughout Indonesia, totaling 1,646 individuals. The sample size was determined using the Slovin formula with a 6% margin of error, resulting in 238 respondents selected through random sampling. Data analysis was performed using multiple linear regression with the SmartPLS application.Results: The findings indicated that competence, independence, and professional skepticism had positive and significant effects on auditors’ ability to detect fraud.Conclusion: This study concluded that improving auditor competence, maintaining independence, and strengthening professional skepticism are essential factors in enhancing fraud detection capabilities. These findings highlight the importance of continuous professional development and ethical audit practices in supporting more effective fraud prevention and detection mechanisms.

Digitalization and Financial Performance of Regional Development Banks: Net Interest Margin as A Mediator

Tikta Susilawati, Pardomuan Sihombing — Fri, 25 Sep 2026 00:00:00 +0000

Digital transformation has become essential for Regional Development Banks (BPDs); however, its contribution to profitability depends on effective financial intermediation, interest margin management, and sufficient capital strength. This study examines the effects of digital adoption, the loan-to-deposit ratio (LDR), and net interest margin (NIM) on return on assets (ROA), while also testing the moderating role of the capital adequacy ratio (CAR) and the mediating role of NIM. A quantitative explanatory research design was applied to 27 Indonesian BPDs observed from 2021 to 2025, resulting in 135 observations. Data obtained from annual reports, financial reports, and sustainability reports were analyzed using panel-data regression with the Random Effects Model and the Sobel test. The results show that digital adoption negatively affects NIM and ROA, while LDR does not significantly affect either NIM or ROA. NIM negatively affects ROA. CAR positively moderates the relationships between digital adoption and NIM, digital adoption and ROA, and NIM and ROA; however, it does not moderate the effects of LDR on NIM or ROA. Furthermore, NIM does not mediate the effects of digital adoption or LDR on ROA. The study concludes that sustainable BPD performance requires integrated digital capabilities, strong capitalization, operational efficiency, sound asset quality, risk-based pricing strategies, cybersecurity resilience, and effective risk governance to support long-term financial sustainability.

Analysis of Key Performance Indicator (KPI) Effectiveness through Variance Analysis as A Performance Monitoring Tool in Nickel Mining Company at PT XXX

Muhamad Nasir, Restu Juniah, M. Taufik Toha — Sat, 19 Sep 2026 00:00:00 +0000

The nickel mining industry operates as an integrated system in which downstream performance depends heavily on the effectiveness of upstream activities. PT XXX, a laterite nickel mining company, has implemented Key Performance Indicators (KPIs) across production, exploration, sales, finance, occupational safety and health, and environmental dimensions since 2023. However, KPI evaluations have primarily focused on the numerical achievement of individual targets without systematically assessing overall operational performance. This study aimed to evaluate operational performance based on KPI achievement through variance analysis between targets and actual performance during the 2023–2025 period. A quantitative descriptive method with an evaluative approach was applied to 35 KPIs, consisting of 6 lagging indicators and 29 leading indicators across six operational dimensions. Achievement rates were calculated by accounting for performance direction, namely higher-is-better and lower-is-better indicators, and were capped at 100% to prevent overachievement in one indicator from offsetting underachievement in another. The results were then aggregated into variance scores (SVs) at both dimensional and overall levels. The analysis produced an aggregate SV of 92.85%, with Finance (99.86%) and Occupational Safety and Health (97.53%) achieving the highest scores, followed by Production (94.99%), Sales (94.52%), Exploration (88.39%), and Environment (81.81%). Although overall performance was relatively high, notable gaps remained in overburden removal (83.48%), exploration drilling (80.00%), low-grade ore (LGO) shipping (76.27%), recontouring (74.52%), and topsoil distribution (73.13%). These findings indicated that although final operational outcomes were generally strong, several upstream readiness activities still required tighter control. The study concluded that KPI evaluation should extend beyond aggregate performance scores to include detailed assessment of leading indicators, thereby enabling more precise identification of operational improvement priorities and strengthening the company’s performance-monitoring system.

Financial Performance, Good Corporate Governance, and Market Resilience in The Furniture Retail Industry: an ARDL Approach with VRIO and Porter's Five Forces Strategic Analysis a Single Case Study of IKEA (Ingka Group)

Rholea Phiartiany, Tarsicius Sunaryo — Wed, 30 Sep 2026 00:00:00 +0000

The global furniture retail industry faces persistent uncertainty arising from inflation, supply chain disruptions, geopolitical conflicts, and changing consumer purchasing power, increasing the importance of market resilience. This study examines how financial performance and good corporate governance influence IKEA’s market resilience and explains the internal resources and external competitive pressures that support its strategic responses. A sequential explanatory mixed-methods design was employed using a single-case study of Ingka Group. The quantitative stage applied the autoregressive distributed lag (ARDL) bounds testing approach to evaluate short- and long-run relationships among financial performance, governance, and market resilience, while the qualitative stage employed VRIO and Porter’s Five Forces analyses. The findings indicate that IKEA’s post-pandemic revenue recovery and its EUR 2.1 billion investment in price reductions reflect a long-term resilience strategy despite declining revenue and profitability in FY2024. Its foundation ownership structure, financial independence, and reinvestment of 85% of net profit provide valuable, rare, and difficult-to-imitate capabilities. Meanwhile, intense industry rivalry and strong buyer bargaining power explain the strategic emphasis on affordability. However, the proposed econometric relationships require confirmation through complete ARDL estimation. The study concludes that IKEA’s resilience is supported primarily by governance flexibility, long-term reinvestment, adaptive capabilities, and strategically managed financial resources rather than short-term profitability alone.

Digital Adoption and Loan-to-Deposit Ratio in Bank Performance: NIM Mediation and CAR Moderation in Indonesian KBMI 3 and KBMI 4 Banks

Wirasmoyo Wirasmoyo, Pardomuan Sihombing — Mon, 21 Sep 2026 00:00:00 +0000

Digital transformation has become a central component of banking strategies; however, its contribution to profitability depends on how effectively technology adoption, financial intermediation, interest margins, and capital adequacy are managed. This study examined the effects of digital adoption and the Loan-to-Deposit Ratio (LDR) on Return on Assets (ROA), with Net Interest Margin (NIM) as a mediating variable and the Capital Adequacy Ratio (CAR) as a moderating variable. A quantitative panel data approach was applied to 16 Indonesian banks classified as KBMI 3 and KBMI 4 during 2020–2024, resulting in 80 bank-year observations. Model selection indicated the use of a Random Effects Model for the NIM model and a Fixed Effects Model for the ROA model. Mediation analysis was conducted using the Sobel test and a 95% Monte Carlo confidence interval as a robustness check. The results showed that digital adoption had a positive effect on ROA but did not significantly affect NIM. LDR did not have a direct effect on ROA but positively affected NIM, while NIM positively affected ROA. NIM did not mediate the relationship between digital adoption and ROA but significantly mediated the relationship between LDR and ROA. CAR weakened the effects of digital adoption on NIM and ROA, strengthened the relationship between NIM and ROA, and did not moderate the LDR-related relationships. These findings indicated that bank profitability depended on the ability to transform digital capabilities and credit intermediation into economic value while maintaining capital resilience and financial stability.

The Effect of Profitability, Liquidity, Company Size, and Sales Growth on Capital Structure with Board Size as a Moderation Variable in Technology Sector Companies Listed on the Indonesia Stock Exchange for the 2022-2024 Period

Tue, 29 Sep 2026 00:00:00 +0000

This study aimed to analyze the determinants of capital structure in technology sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period by examining the effects of profitability, liquidity, company size, and sales growth. In addition, board size was incorporated as a moderating variable. This study employed a quantitative approach using secondary data obtained from financial statements and official annual reports. The sample was selected using a purposive sampling method, while data analysis was conducted using panel data regression and Moderated Regression Analysis (MRA). The empirical findings indicated that liquidity had a negative and significant effect on capital structure. In contrast, profitability, company size, and sales growth showed negative relationships with capital structure, but their effects were not statistically significant. Furthermore, board size did not significantly moderate the relationships between the independent variables and capital structure. These findings provide strategic considerations for management in making financing decisions and contribute to the empirical literature on capital structure dynamics in the Indonesian technology sector.