Elly Susanti

Type of the article: Research Article

Abstract
Rising global uncertainty and rapid digital transformation have significantly altered volatility dynamics and cross-market linkages in Southeast Asian equity markets, raising critical questions regarding market efficiency and regional financial integration. This study investigates weak-form market efficiency and examines short-term and long-term integration dynamics across the capital markets of Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam during the digital disruption period. Monthly stock index data spanning January 2020 to July 2025 are analyzed using quantitative time-series techniques to assess return behavior, information transmission, and long-run market relationships.
The empirical results indicate that all sampled markets broadly exhibit weak-form efficiency, as evidenced by random return behavior and stationary price series. Nevertheless, statistically significant short-term dependence persists, suggesting partial and time-varying inefficiencies. The findings further reveal strong long-term integration among ASEAN capital markets, while short-term interactions remain asymmetric. In particular, the Indonesian market functions as a unidirectional information transmitter to the Thai market. Additional analysis shows that shocks originating from the Philippine market account for approximately 25–28 percent of fluctuations in the Indonesian market, whereas the contribution of the Singapore market is limited to around 5–6 percent, reflecting a higher degree of market independence. Overall, the results suggest that ASEAN capital markets are structurally integrated in the long run, although uneven short-term information transmission continues to limit regional diversification opportunities.

Type of the article: Research Article

Abstract
Digital transformation and sustainability integration increasingly influence strategic decision-making in manufacturing firms, particularly in emerging economies. Despite growing investments in digital infrastructure and sustainability initiatives, empirical evidence regarding their financial implications remains inconsistent. This study examines whether the implementation of enterprise resource planning systems and sustainability practices influences financial performance directly or indirectly through the development of organizational capability in Indonesian manufacturing firms. The empirical analysis uses panel data from 185 firm-year observations of publicly listed manufacturing companies during the period 2020–2024. The proposed framework is tested using partial least squares structural equation modeling. The results indicate that enterprise resource planning implementation significantly strengthens organizational capability (t = 3.253; p = 0.001), whereas sustainability practices do not demonstrate a statistically significant relationship with capability development (t = 0.175; p = 0.861). Organizational capability shows a strong positive effect on financial performance (t = 19.563; p < 0.001) and fully mediates the relationship between enterprise resource planning implementation and financial outcomes (t = 3.163; p = 0.002). In contrast, neither enterprise resource planning systems nor sustainability practices exhibit significant direct effects on financial performance. These findings suggest that digital infrastructure alone does not automatically generate financial benefits. Financial value emerges when technological resources are effectively embedded in coordinated organizational processes that enhance firm capability. Within the observed emerging-market context, sustainability initiatives appear primarily compliance-oriented and therefore have not yet resulted in measurable improvements in financial performance.