The effect of patronage buying motives on small business profitability: evidence from Indonesia
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Received January 29, 2021;Accepted March 17, 2021;Published March 24, 2021
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-1988-3109Link to ORCID Index: https://orcid.org/0000-0002-6135-0667Link to ORCID Index: https://orcid.org/0000-0003-0493-0101Link to ORCID Index: https://orcid.org/0000-0001-6209-0193Link to ORCID Index: https://orcid.org/0000-0002-0643-3865
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DOIhttp://dx.doi.org/10.21511/im.17(1).2021.09
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Article InfoVolume 17 2021, Issue #1, pp. 109-119
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Cited by2 articlesJournal title: Journal of Education for BusinessArticle title: Is Google Classroom, Zoom, and WhatsApp effective for accounting students during the COVID-19 pandemic?DOI: 10.1080/08832323.2021.2023853Volume: 97 / Issue: 8 / First page: 555 / Year: 2022Contributors: Chalarce TotananJournal title: Banks and Bank SystemsArticle title: Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutionsDOI: 10.21511/bbs.16(3).2021.10Volume: 16 / Issue: 3 / First page: 104 / Year: 2021Contributors: Sri Wahyuni, Pujiharto, Siti Nur Azizah, Zulfikar Zulfikar
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This study aims to find and analyze the profitability level of Fried Onion Small Business in Palu City, influenced by Patronage Buying Motives (PBM), which consist of company reputation, location of sales, selling price and guarantee to profitability. The population of this study was 52. Population was chosen based on small business that still survives in fried onion business as a local business. The sample taken by purposive sampling was 35. Data collection was carried out by distributing questionnaires to the managers of fried onion small businesses. The analytical tool used is multiple linear analysis. The results shows that F test of PBM had a significant influence on profitability at 0,822 or 82.2%. This means a very strong influence of the value of PBM. T-test shows that corporate reputation is of significant value of 0,286, location of sales – 0,426, and selling price has a significant value of the 0.235 influence on profitability, except guarantees that do not affect profitability because the value of 0.151 is less than the t table value of 2.0395. The impact of this study implies that small food businesses do not really need a guarantee like electronic products, because reputation and quality have become their guarantee.
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JEL Classification (Paper profile tab)M31, M40, M20
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References46
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Tables2
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Figures0
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- Table 1. Variable indicators
- Table 2. Multiple linear regression calculation results
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Conceptualization
Chalarce Totanan
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Formal Analysis
Chalarce Totanan, Rahayu Indriasari
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Resources
Chalarce Totanan, Nina Yusnita Yamin
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Supervision
Chalarce Totanan
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Writing – review & editing
Chalarce Totanan, Nina Yusnita Yamin
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Data curation
Arung Gihna Mayapada, Nina Yusnita Yamin, Ni Made Suwitri Parwati
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Investigation
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Project administration
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Software
Arung Gihna Mayapada
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Writing – original draft
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Funding acquisition
Nina Yusnita Yamin
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Methodology
Nina Yusnita Yamin, Rahayu Indriasari
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Validation
Ni Made Suwitri Parwati, Rahayu Indriasari
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Visualization
Rahayu Indriasari
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Conceptualization
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The moderating role of firm size and interest rate in capital structure of the firms: selected sample from sugar sector of Pakistan
Sarfraz Hussain , Abdul Quddus , Pham Phat Tien , Muhammad Rafiq , Drahomíra Pavelková doi: http://dx.doi.org/10.21511/imfi.17(4).2020.29Investment Management and Financial Innovations Volume 17, 2020 Issue #4 pp. 341-355 Views: 3551 Downloads: 382 TO CITE АНОТАЦІЯThe selection of financing is a top priority for businesses, particularly in short- and long-term investment decisions. Mixing debt and equity leads to decisions on the financial structure for businesses. This research analyzes the moderate position of company size and the interest rate in the capital structure over six years (2013–2018) for 29 listed Pakistani enterprises operating in the sugar market. This research employed static panel analysis and dynamic panel analysis on linear and nonlinear regression methods. The capital structure included debt to capital ratio, non-current liabilities, plus current liabilities to capital as a dependent variable. Independent variables were profitability, firm size, tangibility, Non-Debt Tax Shield, liquidity, and macroeconomic variables were exchange rates and interest rates. The investigation reported that profitability, firm size, and Non-Debt Tax Shield were significant and negative, while tangibility and interest rates significantly and positively affected debt to capital ratio. This means the sugar sector has greater financial leverage to manage the funding obligations for the better performance of firms. Therefore, the outcomes revealed that the moderators have an important influence on capital structure.
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Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 3524 Downloads: 583 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
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The effect of working capital management on profitability: a case of listed manufacturing firms in South Africa
Jason Kasozi doi: http://dx.doi.org/10.21511/imfi.14(2-2).2017.05Investment Management and Financial Innovations Volume 14, 2017 Issue #2 (cont. 2) pp. 336-346 Views: 3255 Downloads: 2669 TO CITE АНОТАЦІЯWorking capital management plays a pivotal role in enhancing the operational efficiency of firms and their ultimate profitability. Therefore, the purpose of this study was to examine the trends in working capital management and its impact on the financial performance of listed manufacturing firms on the Johannesburg Securities Exchange (JSE). A panel data methodology was used with different regression estimators to analyze this relationship based on an unbalanced panel of 69 manufacturing firms listed during the period 2007–2016.
The findings revealed that the average collection period and the average payment period are negative and statistically significant for profitability, implying that firms which efficiently manage their accounts receivable and those that pay their creditors on time perform better than those that do not. Additionally, a positive statistically significant relationship between the number of days in inventory and profitability was supported suggesting that firms which stock-up and maintain their inventory levels suffer less from stock-outs and avoid challenges of securing financing when needed. This increases their operational efficiency and ensures profitability in the long run. It could not be ascertained whether a shorter or longer cash conversion cycle enhances firm profitability, since findings to support this premise were weak. However, it was observed that manufacturing firms are on average, carrying lot of debt in their capital structures.
The present study contributes to existing literature by presenting one of the very recent findings on this topic while simultaneously testing the validity of recent local and international methodologies, in order to inform policy change.