Profit: Jurnal Adminsitrasi Bisnis <h4><img style="width: 250px; float: left; margin: 0 10px 10px 0;" src="" /></h4> <p><span data-preserver-spaces="true"><strong>Profit, Jurnal Administrasi Bisnis</strong> is a double-blind, peer-reviewed, and open-access academic journal for researchers, lecturers, graduate and undergraduate students, business scholars, and professionals worldwide, which is published by the Faculty of Administrative Science, Universitas Brawijaya Indonesia.</span></p> <p><span data-preserver-spaces="true">This journal is a semi-annual journal (published in January and June) with the primary objective of disseminating scientific articles on the business administration topic, which cover entrepreneurship, corporate governance, and management. Previously, this journal was written in dual languages, Bahasa Indonesia and English. However, since January 2023 (Vol 17), all articles will be published in English. </span></p> <p><span data-preserver-spaces="true">The article is published as empirical research, conceptual or theoretical framework, and literature review concerning all business issues, but empirical research is preferable. </span></p> <p><span data-preserver-spaces="true">All submitted articles shall never be published elsewhere, original, and not under consideration for other publication. Before submitting, please ensure that the manuscript follows Profit: Jurnal Administrasi Bisnis aim and scope and follows our author guidelines &amp; manuscript template.</span></p> <p> </p> <p> </p> <p> </p> <p> </p> FIA UB en-US Profit: Jurnal Adminsitrasi Bisnis 1978-743X <p>The copyright of the received article shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles.</p> <p><a href="" rel="license"><img src="" alt="Creative Commons License" /></a><br />This work is licensed under a <br /><a href="" rel="license">Creative Commons Attribution-NonCommercial 4.0 International License</a></p> Examination of Methods for Limiting Interest: Systematic Literature Review <p><em>The study employs a literature review. We acquired and deliberated over findings through online scholarly publications, news articles, and official guidelines. Most countries have implemented the Thin Capitalization Rule (TCR) to restrict interest deductions that exceed a certain debt threshold. Multiple nations employ the safe harbor rule, while others utilize earnings-stripping measures or employ both methods together. The Debt-to-Equity Ratio (DER) is the prevailing rule for thin capitalization worldwide. The OECD advocates for the enhancement of DER. The OECD does not support using DER as a TCR in the final report of BEPS Action 4. Instead, they recommend implementing restricted costs or income-stripping rules. The OECD recommends that countries establish a consistent baseline ratio of 10% to 30%. Many developed countries have implemented a 25-30% limitation on EBITDA, TAX EBITDA, or Adjusted Income. Malaysia and other developing nations limit interest deductions to a maximum of 20%. Indonesia has committed to transition from thin capitalization to earnings stripping restrictions, which aligns with BEPS Action Plan 4, which involves applying the net interest/EBITDA ratio. This commitment was made after the enactment of Tax Law Number 7 Year 2021, which aims to harmonize tax regulations. Meanwhile, Indonesia is actively addressing the issue.</em></p> Nurlita Sukma Alfandia Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-04 2024-06-04 18 2 136 151 10.21776/ub.profit.2024.018.02.1 From Transactions to Relationships: Leveraging E-Service Quality to Secure E-Customer Trust and Loyalty <p><em>This research explores the interconnected relationship between e-service quality, customer trust, and loyalty in the context of Indonesian e-commerce, focusing specifically on the Shopee platform. Analyzing data from 279 Shopee users, the study examines the influence of website design, customer service, security, and fulfillment on e-service quality and their subsequent impact on trust and loyalty. Employing a purposive sampling approach and SEM-PLS inferential analysis, the findings reveal the significant impact of website design on shaping e-service quality. At the same time, customer service and security do not show significant effects. Interestingly, efficient fulfillment emerges as a critical determinant in boosting e-service quality. The study further emphasizes the significant role of e-service quality in fostering customer loyalty, both directly and indirectly, through the mediation of e-customer trust. These insights provide actionable takeaways for e-commerce players, paving the way for strategic maneuvers and sustained success in Indonesia's competitive e-commerce market.</em><em> </em></p> Siti Yolanda Rahman Utami Edy Yulianto Agung Nugroho Luthfi Imam Fahrudi Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-04 2024-06-04 18 2 152 167 10.21776/ub.profit.2024.018.02.2 Competitive Advantage as a Mediation of the Influence of Green Banking and Corporate Governance on Company Value <p><em>This research aims to explore the influence of Green Banking and Corporate Governance on Company Value through the mediation of Competitive Advantage in Conventional Commercial Banks listed on the Indonesia Stock Exchange (IDX) from 2017-2022. The study employs a quantitative method with a positivistic approach, involving a sample of 41 Conventional Commercial Banks listed on the IDX. This research uses a purposive sampling technique with inclusion criteria involving banks registered on the IDX, publishing financial reports, and providing the necessary data. Secondary data is in the form of banking financial reports for 2017-2022. Hypothesis testing uses quantitative statistical analysis with Structural Equation Modeling (SEM). The research results show that Green Banking and Corporate Governance significantly affect Competitive Advantage and Company Value. Competitive advantage and company value have a significant favourable influence. The findings of this research can contribute to a deeper understanding of the relationship between Green Banking, Corporate Governance, Competitive Advantage and Company Value in the context of the conventional banking industry in Indonesia.</em></p> Rulita Indra Puspitasari Muhammad Saifi Nila Firdausi Nuzula Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-04 2024-06-04 18 2 168 184 10.21776/ub.profit.2024.018.02.3 Enterprise Risk Management and Corporate Governance Effect Towards Sustainability and Performance Moderated by Market Crash <p><em>The COVID-19 crisis has significantly impacted the global economy, instantly triggering an effect on stock market stability forcing companies to adapt to the uncertainty of economic conditions to survive. Implementing enterprise risk management (ERM), corporate governance (CG), and sustainability can help companies improve or maintain their performance. </em>Companies faced the prospect of a stock market crash amid the crisis' chaos. <em>This study aims to analyze the effect of ERM, CG, and sustainability on performance moderated by market crashes in companies listed on the LQ45 Index Indonesia Stock Exchange (IDX) during the 2020 period when the composite stock price index (IHSG) crashed. </em>Thirty-three companies served as the study's samples, while secondary data from partial least squares (PLS) and descriptive analysis were employed. <em>The findings suggest that ERM and CG have a significant impact on sustainability and also have an insignificant impact on performance. Furthermore, sustainability has a significant effect on performance, and market crashes have a moderating effect that improves the impact of ERM on performance.</em></p> Dwityas Adi Kusumo Wardoyo Muhammad Saifi Nur Imamah Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-19 2024-06-19 18 2 185 201 10.21776/ub.profit.2024.018.02.4 Enhancing Lecturer Performance: The Power of Leadership, Culture, and Governance <p><em>Since the higher education quality gap between Western Indonesia and Eastern Indonesia is entirely high, especially in Papua and West Papua (known as the LLDIKTI 14 region), </em><em>evaluating lecturer performance in that region is necessary. This study aims to explain and analyze the impact of transformational leadership, organizational culture, and good university governance on lecturer motivation and performance at Victory Sorong University and Nani Bili Nusantara University. This research is a quantitative explanatory study, with the population of all lecturers at both universities, utilizing a probability sampling technique with a saturated sample of 115 lecturers. The results indicate that organizational </em><em>culture and good university governance positively and significantly affect work motivation, while transformational leadership has a positive but insignificant effect. Organizational culture and work motivation also positively and significantly affect lecturer performance, while transformational leadership and good university governance have a positive but insignificant effect.</em></p> Meldi Manuhutu Kusdi Rahardjo Gunawan Eko Nurtjahjono Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-24 2024-06-24 18 2 202 216 10.21776/ub.profit.2024.018.02.5 How Purchase Decision Mediates Electronic Word of Mouth's Impact on Customer Satisfaction: A Case in Shopee Application <p><em>Examination of the relationships between Electronic Word of Mouth (eWOM), Purchase Decision (PDC), and Customer Satisfaction (CSF) within the context of Shopee, an Indonesian top-commerce platform. The study aims to analyze the influence of eWOM on PDC, the impact of PDC on CSF, and the mediating role of PDC in the relationship between eWOM and CSF. The research employs nonprobability-purposive sampling to collect data from 182 Shopee users in Indonesia exposed to eWOM and actively making PDC. The five Likert-scale questionnaires were distributed online for measurement. Partial Least Squares (PLS) analysis confirms significant positive relationships between eWOM toward PDC, PDC toward CSF, and eWOM toward CSF. Notably, PDC emerges as a crucial mediator, bridging the relationship between eWOM and CSF. The results highlight the significance of eWOM in influencing PDC and perceptions of e-commerce customers. The recommendation is that marketers and online sellers can foster positive eWOM through clear, detailed, and favourable reviews. They are enhancing PDC by streamlining the purchasing process and ensuring satisfactory experiences. For future research, exploring the moderating effects of demographic variables and investigating the impact of website design and social influence on eWOM, PDC, and CSF could enrich understanding in this domain.</em></p> Bonita Septiani Heda Edy Yulianto Sunarti Sunarti Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-25 2024-06-25 18 2 217 230 10.21776/ub.profit.2024.018.02.6 Board Diversity, Competitive Advantage, Firm Size and Firm Value: A Case on Indonesian Materials Industry <p><em>This study aims to analyze and explain the effect of board diversity, competitive advantage, and firm size on firm value in basic materials sector companies listed on the Indonesian Stock Exchange from 2017 to 2022. The sample of this study used 30 companies from a population of 42 companies that met the sampling criteria, and this study used Partial Least Squares (PLS) method. The results show that board diversity has a negative and significant effect on firm value, competitive advantage has a positive and significant effect on firm value, and firm size has a positive and significant effect on firm value. Board diversity has a significant negative effect on firm value, highlighting the importance of consideration in the formation of an inclusive and diverse board composition. On the other hand, the finding that competitive advantage and firm size have a significant positive effect on firm value suggests that internal factors such as economies of scale, capital requirements, and firm size play an important role in determining firm value. These findings provide valuable insights for business practitioners to enhance firm value in the Indonesian natural resources industry.</em></p> Arjun Saputra Nila Firdausi Nuzula Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-25 2024-06-25 18 2 231 244 10.21776/ub.profit.2024.018.02.7 Exchange Rate, Inflation, Interest Rate and Economic Growth: How They Interact in ASEAN <p><em>This research investigates the interplay between exchange rates, inflation, and interest rates, collectively influencing economic growth in the ASEAN Region. The study constructs a comprehensive analytical framework based on economic theories like purchasing power parity, monetary theories of inflation, and the International Fisher Effect theory of interest. It aims to discern the individual and interactive effects of exchange rate movements, inflation, and interest rate fluctuations on overall economic output. Through empirical analysis covering 2007 to 2022 in Southeast Asia, using a saturated sample, the study employs statistical models and time-series analysis. Classical assumption tests, descriptive statistics, and path analysis unravel the nuanced influence of these macroeconomic factors on GDP variations. Findings indicate that exchange rates have a positive yet statistically insignificant impact on inflation while significantly and positively influencing interest rates. Inflation, in turn, significantly affects interest rates. Exchange rates negatively impact gross domestic product, supporting the idea that a competitive real exchange rate fosters growth in developing regions. Additionally, inflation and interest rates negatively impact economic growth in the ASEAN Region, confirming the research hypotheses. This study provides significant insights into the intricate interactions shaping economic dynamics in Southeast Asia.</em></p> Amanda Dwi suciany Cacik Rut Damayanti Ari Darmawan Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-25 2024-06-25 18 2 245 256 10.21776/ub.profit.2024.018.02.8 How Financial Literacy and Investment Knowledge Influence Gold Investment Decisions <p><em>This research investigates the impact of financial literacy and investment knowledge on gold investment decisions among 30 members of the EOA Gold community in Malang, covering Batu City, Malang City, and Malang Regency. Data collected through surveys and questionnaires were analyzed using multiple linear regression in IBM SPSS version 29. The findings indicate that while financial literacy alone does not significantly influence gold investment decisions, investment knowledge plays a crucial role. Moreover, financial literacy and investment knowledge significantly affect these decisions when considered together. These results underscore the importance of enhancing investment knowledge among investors to make informed decisions about gold investments. The implications suggest that targeted educational programs and strategies focusing on investment knowledge could improve financial decision-making outcomes in gold investments.</em></p> Reika Happy Sugiastuti Vhallensya Friseyla Regita Pramesti Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-28 2024-06-28 18 2 257 272 10.21776/ub.profit.2024.018.02.9 How Knowledge Management, Technology Information, Employee Performance and Employee Satisfaction Work Together <p><em>The study's primary objectives are to determine how knowledge management and information technology affect employee performance, with employee satisfaction as an intervening variable. Information technology and knowledge management are crucial components of employee performance support in Easterntext. Scientists likewise estimated worker fulfillment as a mediating variable on employee performance. In order to ascertain the effects, knowledge management and information technology are used as variables to measure employee performance and employee satisfaction within the company. This study utilized an informative exploration approach with 92 respondents of the probability sampling method. SmartPLS 3 and partial least square structural equation modeling (PLS-SEM) were utilized for data analysis. The outcomes showed that knowledge management and technology information impacted employee performance through employee satisfaction at</em><em> Easterentex. In this way, it is realized that the variable knowledge management, technology information, and employee satisfaction support and contribute to worker performance.</em></p> Nurefa Maulana Refa Hamidah Nayati Utami Tri Wulida Afrianty Copyright (c) 2024 Profit: Jurnal Adminsitrasi Bisnis 2024-06-28 2024-06-28 18 2 273 288 10.21776/ub.profit.2024.018.02.10