Economics, Business, Accounting & Society Review

Beyond Subsidized Credit: Sharia-Compliant Microfinance as a Catalyst for Inclusive MSME Growth

2026-02-05T13:34:01+00:00

This study investigates whether Sharia-compliant KUR (Credit program) distributed by Bank Syariah Indonesia (BSI) functions merely as subsidized financing or as a strategic instrument for inclusive and sustainable MSME growth. Despite the recognized importance of KUR in supporting small enterprises, limited research has examined its impact within a Sharia-compliant framework that integrates ethical finance principles with microenterprise growth. Addressing this gap, the study employs an explanatory sequential mixed-methods design combining quantitative analysis and qualitative interviews with MSME actors in Medan City. Quantitative findings reveal a significant positive effect of Sharia-compliant microfinance on MSME growth, particularly in terms of revenue growth, employment expansion, and business stability. MSMEs receiving Sharia-compliant microfinance demonstrate stronger performance and higher resilience compared to non-recipients. Qualitative insights further indicate that beyond financial capital, the program enhances entrepreneurial confidence, strategic planning capacity, and optimism in navigating post-pandemic economic challenges. The murabaha-based financing mechanism and ethical, interest-free structure contribute to increased trust and perceived fairness among beneficiaries. The study contributes to the microfinance dual mission debate by demonstrating that Sharia-compliant microfinance reconciles financial sustainability with social outreach. It extends microfinance theory beyond liquidity provision by integrating ethical finance principles with MSME growth dynamics. The findings suggest that Sharia-compliant microfinance can serve as a transformative development instrument, fostering inclusive growth, employment generation, and sustainable regional economic development.

Capital Expenditure, Audit Opinion and Fiscal Autonomy under Fiscal Decentralization: Evidence from Indonesian Provinces

2026-01-07T16:19:07+00:00

Despite the expansion of fiscal decentralization in Indonesia, provincial governments remain structurally dependent on central government transfers, raising concerns about the substantive achievement of fiscal autonomy. However, prior research largely conflates compliance-based accountability indicators with development-oriented fiscal mechanisms, leaving underexplored how capital expenditure and audit opinion differentially shape fiscal independence. This study aims to examine the distinct roles of capital expenditure and audit opinion in explaining provincial fiscal autonomy under an agency theory framework. Using secondary data from 34 Indonesian provinces over the period 2021–2023 (102 observations) and employing multiple linear regression analysis, this paper tests the effects of development-oriented fiscal allocation and compliance-based monitoring on the fiscal independence ratio. The findings indicate that capital expenditure has a positive and significant effect on fiscal autonomy, suggesting that discretionary investment in infrastructure and public assets enhances long-term revenue capacity. In contrast, audit opinion exhibits a significant but negative association, indicating that compliance with reporting standards does not necessarily translate into stronger fiscal independence. These results highlight the conceptual distinction between monitoring mechanisms and fiscal discretion in decentralized systems. This study contributes to public sector accounting and fiscal decentralization literature by clarifying that accountability compliance and development-oriented fiscal decisions operate through different mechanisms in shaping regional financial performance. Practically, the findings inform policymakers to integrate audit-based evaluations with strategic capital allocation in advancing sustainable fiscal autonomy.

Frugal Innovation as a Mediating Mechanism between Strategic Flexibility, Sustainability Orientation, and Operational Performance

2026-01-05T17:09:13+00:00

Recent studies recognize innovation as a critical pathway for strengthening SME competitiveness and resilience. This study investigates how food and beverage SMEs improve operational performance by transforming strategic flexibility and sustainability orientation into practical, cost-efficient innovation practices. In highly competitive and resource-constrained environments, SMEs must balance efficiency, adaptability, and increasing sustainability expectations. The research focuses on frugal innovation as a pragmatic approach that emphasizes simplicity, affordability, and optimal resource utilization in daily operations. A quantitative research design was employed using survey data collected from owners and operational managers of food and beverage SMEs in the Jabodetabek region. The constructs were measured using established Likert-scale instruments adapted from prior studies. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), which enables simultaneous assessment of measurement reliability and structural relationships among variables. This approach allows for examining both direct and indirect effects within a mediation framework. The findings indicate that strategic flexibility and sustainability orientation contribute to the development of frugal innovation practices. In turn, frugal innovation significantly enhances operational performance by improving efficiency, reducing operational waste, and strengthening process effectiveness. The results confirm that performance improvements emerge when strategic intentions are translated into concrete, resource-aware innovations. This study contributes by providing empirical evidence that frugal innovation serves as a practical mechanism linking strategic orientation to superior operational outcomes in resource-constrained SMEs.

Unveiling the Dynamics of Tax Compliance: The Implementation and Challenges of the Directorate General of Tax

2026-01-07T18:19:21+00:00

Contemporary tax compliance research has increasingly shifted from deterrence-based models toward behavioral frameworks that emphasize psychological, social, and institutional determinants of voluntary compliance. Despite advances in digital tax administration, compliance rates in many developing contexts remain volatile, suggesting that technological modernization alone is insufficient to transform taxpayer behavior. Drawing on the Theory of Planned Behavior (TPB), this study examines how attitudes, subjective norms, and perceived behavioral control interact to shape taxpayers’ compliance intentions and behaviors within the policy implementation context of the Directorate General of Taxes (DGT) in Kediri, Indonesia. Employing a qualitative case study design, data were collected through in-depth interviews with tax officials, individual and corporate taxpayers, and MSME association representatives, complemented by observations and document analysis. The findings reveal that positive compliance intentions emerge from perceived fiscal transparency, reputational pressures within business networks, and improved access to administrative support; however, a persistent intention–behavior gap remains when digital literacy constraints and financial stress undermine perceived behavioral control. The study demonstrates that trust-based compliance requires an integrated intervention framework that simultaneously strengthens institutional legitimacy, social norms, and operational capacity. Theoretically, this research extends TPB by contextualizing its constructs within institutional transformation from sanction-based to trust-based governance. Practically, it provides evidence-based policy recommendations for enhancing long-term voluntary compliance in decentralized tax administrations.

Enhancing Managerial Performance Through Accounting Information Systems and Performance Measurement

2025-10-09T09:48:52+00:00

Managerial performance in public sector organizations has become an important indicator for evaluating the effectiveness of government administration and the quality of public services. In recent years, the implementation of accounting information systems and structured performance measurement systems has increasingly been recognized as a strategic mechanism for improving organizational performance and managerial decision-making in government institutions. This study aims to examine the influence of accounting information systems and performance measurement systems on managerial performance in the Regional Work Units (SKPD) of Bukittinggi City. This research adopts a quantitative, causal approach, using primary data collected through questionnaires distributed to officials involved in financial and managerial activities within SKPD. The study employs total sampling, covering 28 SKPD, and analyzes 81 valid responses using multiple linear regression. The results indicate that accounting information systems have a positive, significant effect on managerial performance by providing relevant, timely information that supports decision-making. Furthermore, performance measurement systems also demonstrate a significant positive influence on managerial performance, indicating that systematic performance evaluation mechanisms can strengthen managerial accountability and improve organizational effectiveness. This study provides empirical evidence on the integration of accounting information systems and performance measurement systems to improve managerial performance in the local government context. The findings imply that strengthening information systems and performance evaluation mechanisms can enhance managerial effectiveness and support better governance practices in public sector organizations.

Beyond Financial Literacy: Lifestyle, Impulse Buying, and Financial Management of Millennial Public Employees

2026-02-13T09:43:25+00:00

This study examines the effects of financial literacy, lifestyle, and impulse buying behavior on the financial management of Millennial Generation employees in the Government of Buleleng Regency, both partially and simultaneously. The research is driven by the growing complexity of personal financial management among millennials, influenced by changing consumption patterns, easier access to financial products, and evolving lifestyles. A quantitative approach with a survey method was applied. Data were collected through structured questionnaires distributed to employees and analyzed using multiple linear regression to test the relationships among variables. The findings reveal that financial literacy has a positive and significant effect on financial management, indicating that employees with higher financial knowledge are better at planning, managing income and expenses, and making rational financial decisions. Lifestyle also shows a positive and significant influence, where a rational and well-controlled lifestyle supports financial stability and long-term planning. In contrast, impulse buying behavior has a negative and significant effect, as unplanned purchases increase unnecessary spending and reduce financial control. Simultaneously, all three variables significantly affect financial management, explaining 54.8% of its variance. The study highlights the importance of financial education and employee welfare programs to strengthen financial management capabilities.

An Evaluation of Internal Quality Audit Standards for Learning: Identifying Areas for Improvement in a Higher Education Institution

2026-01-31T19:55:27+00:00

Internal quality assurance has become a critical mechanism for improving learning quality in higher education institutions, yet the effectiveness of internal quality audits often depends on how clearly learning standards are structured and implemented within institutional audit systems. This study aims to investigate the existing internal quality audit (IQA) standards for learning at Manado State Polytechnic and to identify areas for improvement. This research employed a qualitative approach by collecting data through document analysis and semi-structured interviews. A total of 15 informants participated in the study, including the head and administrators from the Learning Development and Quality Assurance Center, study program coordinators, and internal auditors. The findings indicate that the internal quality audit process at Manado State Polytechnic follows a three-stage model. However, the quality standards used in the audit application system are unsystematically organized and inconsistently arranged across study programs. Moreover, several essential learning components are not comprehensively included in the quality standards, such as curriculum design, teaching and learning methods, assessment and evaluation, student support and engagement, and lecturers’ performance. These limitations contribute to inefficiencies in the current internal quality audit implementation. This study suggests the reorganization of the quality standards into a chronological framework of “Before Learning,” “During Learning,” and “After Learning” to simplify evidence submission and audit processes. This study contributes to internal quality assurance practices by providing practical insights for quality assurance managers in developing more systematic and effective internal quality audit standards to support continuous improvement in learning quality.

Do ESG and Earnings Management Influence Audit Opinions? Evidence from Indonesia Mining Sector

2026-01-18T07:07:32+00:00

This study examines how non-financial and financial signals influence the issuance of modified audit opinions in the Indonesian mining sector. In recent years, auditors have increasingly incorporated sustainability-related considerations into audit risk assessments, particularly in industries characterized by high environmental and regulatory risk. This research aims to investigate whether Environmental, Social, and Governance (ESG) performance and earnings management affect auditors’ decisions to issue modified audit opinions. Using a quantitative causal research design, the study analyzes mining companies listed on the Indonesia Stock Exchange that are included in the Katadata ESG Index during the observation period. Modified audit opinion serves as the dependent variable, while ESG performance and discretionary accrual–based earnings management are the main independent variables, with firm size and leverage included as control variables. Given the relatively low occurrence of modified audit opinions, the empirical analysis employs Firth Logistic Regression to address rare-event bias. The results show that ESG performance has a significant negative association with the likelihood of receiving a modified audit opinion, indicating that stronger sustainability and governance practices are perceived by auditors as signals of lower audit risk. In coxntrast, earnings management does not exhibit a significant effect on audit opinion outcomes. These findings suggest that in high-risk industries such as mining, auditors place greater reliance on credible non-financial signals related to sustainability and governance than on accrual-based financial signals when forming audit opinions.

Memorable Tourism Experiences: Bridging the Experience Economy and Spatial Hotspot Analysis

2026-03-20T18:26:40+00:00

This study develops an integrated framework for sustainable tourism competitiveness by combining Memorable Tourism Experience (MTE), RAPTOURISM, explainable machine learning, and spatial analysis. Using survey data from coastal destinations in Kupang City and Kupang Regency, sustainability performance is evaluated through Multidimensional Scaling (MDS) and tested using Monte Carlo simulation. The goodness-of-fit results indicate strong model reliability, with stress values below 0.20 and R² exceeding 0.90 across most dimensions. Monte Carlo differences remain minimal, confirming the robustness of the sustainability index. Random Forest analysis identifies Meaningfulness, Eudaimonic Well-Being (EWB), and Involvement as the most influential attributes. Partial Dependence Plot (PDP) reveals non-linear threshold effects, showing that improvements in EWB significantly increase sustainability only when accompanied by high tourist involvement. Spatial hotspot–coldspot analysis using Getis–Ord Gi* demonstrates clear geographical clustering, with eastern coastal destinations forming experience hotspots, while several western areas persist as coldspots. These findings emphasize the need for place-based, experience-driven tourism policies to enhance long-term sustainability.

Key Opinion Leadership in Educational Branding: Ary Ginanjar’s Communication Strategy in Building the Image of Ary Ginanjar University

2026-01-27T03:46:40+00:00

In the digital and highly competitive higher education environment, institutional branding increasingly extends beyond conventional marketing toward the strategic use of symbolic figures who embody credibility, values, and legitimacy. While prior studies emphasize social media strategies and organizational accounts, limited attention has been given to founders as Key Opinion Leaders (KOLs) shaping university identity. This study aims to analyze how Key Opinion Leadership operates as a communication strategy in building the image of Ary Ginanjar University (UAG). Employing a qualitative single-case study design, data were collected through in-depth interviews with institutional leaders, communication teams, lecturers, students, alumni, and prospective students, complemented by observations and document analysis. Thematic analysis was used to identify patterns of symbolic leadership, value-based branding, and cross-channel communication alignment. The findings reveal that Ary Ginanjar functions as a brand anchor who transfers personal credibility and value narratives into institutional identity through symbolic leadership, narrative consistency, and integrated digital communication. KOL-based branding not only strengthens public trust and brand awareness but also shapes collective identity within the academic community. The study implies that sustainable university branding requires institutionalizing values beyond individual dependency. Theoretically, this research reframes KOL as a long-term trust architecture in educational branding, offering an actor-centered perspective for higher education reputation management.

The Role of Public Policy and Digital Connectivity in Driving Gdp Growth: A Cross-Country Study of Emerging Economies

2026-01-20T21:41:06+00:00

This study examines how digital connectivity and public policy influence economic growth in developing countries, utilizing data from 21 nations spanning the years 2018 to 2023. The study focuses on internet adoption rates, internet speed, government policies, and GDP growth rates, employing a composite index and Panel-Corrected Standard Errors (PCSE) regression method. The findings indicate that higher internet penetration, faster internet speed, and enhanced internet security are positively associated with per capita GDP growth, highlighting the importance of digital connectivity in fostering economic development. In contrast, reliance on basic cellular connections shows a negative impact on per capita GDP, potentially due to lower productivity associated with basic mobile usage. The study also emphasizes the crucial role of public policy performance, which demonstrates a strong positive correlation with economic growth, suggesting that effective governance and well-implemented policies are essential for maximizing the benefits of digital infrastructure in driving economic progress. The study's integration of both digital connectivity variables and public policy provides new insights into the synergies between technology and governance, offering a comprehensive view of how these factors together influence economic outcomes. This approach adds valuable contributions to development economics, particularly in understanding the roles of modern digital infrastructure and policy frameworks in supporting sustainable growth in developing countries.