The quest of peer-to-peer lending applications marketing to small and medium enterprises: Assessing intention to recommend
-
Author(s)Dewi WuisanLink to ORCID Index: https://orcid.org/0000-0001-8550-3659
,
Asep Hermawan
,
Ferdi AntonioLink to ORCID Index: https://orcid.org/0000-0002-1319-3732
,
Rudy PramonoLink to ORCID Index: https://orcid.org/0000-0002-3430-2942
-
DOIhttp://dx.doi.org/10.21511/im.19(4).2023.13
-
Article InfoVolume 19 2023, Issue #4, pp. 158-172
- Cited by
- 335 Views
-
85 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to determine the effect of peer-to-peer lending (P2PL) on small and medium enterprises (SMEs) underpinned by the theory of planned behavior and asses its impact on the borrower’s intention to recommend such a platform. This paper used a quantitative survey method with partial least squares structural equation modeling to analyze the data collected through a questionnaire. The data were obtained from 395 respondents who are entrepreneurs or business leaders in SMEs in Indonesia and had experience in borrowing business loan funds from the P2PL apps. The structural questionnaire was distributed from January to May 2022. The results of this study indicate that the three core components of the theory of planned behavior (attitudes, subjective norms, and perceived behavioral control) can significantly influence the intention to continue usage and the intention to recommend with an R-squared value of 0.626, which indicates a meaningful explanatory power. The results proved that perceived benefits and risk and electronic word-of-mouth are the antecedents with significant influence. Moreover, this study provides new insights into how self-efficacy and mental accounting can influence perceived behavioral control. These findings could suggest that P2PL management should be more innovative in developing effective marketing strategies based on the traits and borrower’s points of view. Particularly, they could emphasize customer segmentation based on mental accounting.
- Keywords
-
JEL Classification (Paper profile tab)D11, M21, M31
-
References66
-
Tables4
-
Figures2
-
- Figure 1. Conceptual framework
- Figure 2. Empirical model
-
- Table 1. Respondent profile
- Table 2. Construct reliability and validity
- Table 3. Discriminant validity
- Table 4. Hypotheses testing
-
- Abbasi, K., Alam, A., Brohi, N. A., Brohi, I. A., & Nasim, S. (2021). P2P lending fintech and SMEs’ access to finance. Economics Letters, 204, 109890.
- Achtziger, A., Hubert, M., Kenning, P., Raab, G., & Reisch, L. (2015). Debt out of control: The links between self-control, compulsive buying, and real debts. Journal of Economic Psychology, 49, 141-149.
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Ajzen, I. (2020). The theory of planned behavior: Frequently asked questions. Human Behavior and Emerging Technologies, 2(4), 314-324.
- Ajzen, I., & Fishbein, M. (1977). Attitude-behavior relations: A theoretical analysis and review of empirical research. Psychological Bulletin, 84(5), 888-918.
- Aldammagh, Z., Abdeljawad, R., & Obaid, T. (2021). Predicting mobile banking adoption: An integration of TAM and TPB with trust and perceived risk. Financial Internet Quarterly, 17(3), 35-46.
- Ali, M., Raza, S. A., Khamis, B., Puah, C. H., & Amin, H. (2021). How perceived risk, benefit, and trust determine user fintech adoption: A new dimension for Islamic finance. Foresight, 23(4), 403-420.
- Aljaafreh, A., Qatawneh, N., Awad, R., Alamro, H., & Ma’aitah, S. (2023). Fintech adoption in Jordan: Extending UTAUT2 with EWOM and Covid-19 perceived risk. In A. Hamdan, H. M. Shoaib, B. Alareeni, & R. Hamdan (Eds.), Studies in Systems, Decision, and Control (pp. 91-97). Springer.
- Asebedo, S., & Payne, P. (2019). Market volatility and financial satisfaction: The role of financial self-efficacy. Journal of Behavioral Finance, 20(1), 42-52.
- Aziz, S., Afaq, Z., & Muhammad, L. (2020). The role of media, word of mouth, and subjective norms in determining attitudes and intentions to purchase family takaful – Schemes. Journal of Islamic Business and Management (JIBM), 10(01).
- Bandura, A., & Adams, N. E. (1977). Analysis of the self-efficacy theory of behavioral change. Cognitive Therapy and Research, 1(4), 287-310.
- Boonroungrut, C., & Huang, F. (2021). Reforming theory of planned behavior to measure money management intention: A validation study among student debtors. RAUSP Management Journal, 56(1), 24-37.
- Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1992). Extrinsic and intrinsic motivation to use computers in the workplace. Journal of applied social psychology, 22(14), 1111-1132.
- Davis, K., Maddock, R., & Foo, M. (2017). Catching up with Indonesia’s fintech industry. Law and Financial Markets Review, 11(1), 33-40.
- Emekter, R., Tu, Y., Jirasakuldech, B., & Lu, M. (2015). Evaluating credit risk and loan performance in online peer-to-peer (P2P) lending. Applied Economics, 47(1), 54-70.
- Esmaeili, A., Haghgoo, I., Davidavičienė, V., & Meidutė-Kavaliauskienė, I. (2021). Customer loyalty in mobile banking: Evaluation of perceived risk, relative advantages, and usability factors. Engineering Economics, 32(1), 70-81.
- Fuster, A., Plosser, M., Schnabl, P., & Vickery, J. (2019). The role of technology in mortgage lending. The Review of Financial Studies, 32(5), 1854-1899.
- Gerlach, J. M., & Lutz, J. K. T. (2021). Digital financial advice solutions – Evidence on factors affecting the future usage intention and the moderating effect of experience. Journal of Economics and Business, 117, 106009.
- Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220-265.
- Gomber, P., Koch, J.-A., & Siering, M. (2017). Digital finance and Fintech: Current research and future research directions. Journal of Business Economics, 87(5), 537-580.
- Hair, J. F., M., H. G. T., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM). Sage.
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
- Han, H., & Kim, Y. (2010). An investigation of green hotel customers’ decision formation: Developing an extended model of the theory of planned behavior. International Journal of Hospitality Management, 29(4), 659-668.
- He, F., Qin, S., & Zhang, X. (2021). Investor attention and platform interest rate in Chinese peer-to-peer lending market. Finance Research Letters, 39, 101559.
- Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the internet? Journal of Interactive Marketing, 18(1), 38-52.
- Hong, I. B. (2019). Understanding and predicting behavioral intention to adopt mobile banking. Journal of Global Information Management, 27(3), 182-202.
- Hossain, M. T. (2018). How cognitive style influences the mental accounting system: Role of analytic versus holistic thinking. Journal of Consumer Research, 45(3), 615-632.
- Ismagilova, E., Dwivedi, Y. K., Slade, E., & Williams, M. D. (2017). Managing eWOM. In Electronic Word of Mouth (EWOM) in the Marketing Context (pp. 97-108). Springer.
- Jagtiani, J., & Lemieux, C. (2018). Do fintech lenders penetrate areas that are underserved by traditional banks? Journal of Economics and Business, 100, 43-54.
- Kholidah, H., Hijriah, H. Y., Mawardi, I., Huda, N., Herianingrum, S., & Alkausar, B. (2022). Bibliometric mapping of peer-to-peer lending research based on economic and business perspectives. Heliyon, 8(11), e11512.
- Khuong, N. V., Phuong, N. T., Liem, N. T., Thuy, C. T., & Son, T. H. (2022). Factors affecting the intention to use financial technology among Vietnamese youth: Research in the time of Covid-19 and beyond. Economies, 10(3), 57.
- Knewtson, H. S., & Rosenbaum, Z. A. (2020). Toward understanding FinTech and its industry. Managerial Finance, 46(8), 1043-1060.
- Lades, L. K., Egan, M., Delaney, L., & Daly, M. (2017). Childhood self-control and adult pension participation. Economics Letters, 161, 102-104.
- Mahapatra, M. S., Mishra, R., & Seetharam, Y. (rev.ed.). (2020). Behavioral influence and financial decision of individuals: A study on mental accounting process among Indian households. Cogent Economics & Finance, 8(1), 1827762.
- Mahapatra, M. S., Raveendran, J., & Mishra, R. K. (2022). Role of mental accounting in personal financial planning: A study among Indian households. Psychological Studies, 67(4), 568-582.
- Mäntymäki, M., Merikivi, J., Verhagen, T., Feldberg, F., & Rajala, R. (2014). Does a contextualized theory of planned behavior explain why teenagers stay in virtual worlds? International Journal of Information Management, 34(5), 567-576.
- Meiryani, M., Soepriyanto, G., & Audrelia, J. (2023). Effectiveness of regulatory technology implementation in Indonesian banking sector to prevent money laundering and terrorist financing. Journal of Money Laundering Control, 26(4), 892-908.
- Muehlbacher, S., & Kirchler, E. (2019). Individual differences in mental accounting. Frontiers in Psychology, 10.
- Nowak, A., Ross, A., & Yencha, C. (2018). Small business borrowing and peer-to-peer lending: Evidence from the lending club. Contemporary Economic Policy, 36(2), 318-336.
- Nugroho, A., & Wang, W. T. (2023). Consumer switching behavior to an augmented reality (AR) beauty product application: Push-pull mooring theory framework. Computers in Human Behavior, 142, 107646.
- Octavius, G. S., & Antonio, F. (2021). Antecedents of intention to adopt Mobile Health (mHealth) application and its impact on intention to recommend: An evidence from Indonesian customers. International Journal of Telemedicine and Applications, 2021, 6698627.
- Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behavior, 61, 404-414.
- Otoritas Jasa Keuangan (OJK). (2018). Layanan pengaduan konsumen di sektor jasa keuangan [Financial services authority regulation on consumer complaint services in the financial services sector]. (In Indonesian).
- Otoritas Jasa Keuangan (OJK). (2022). Penyelenggara fintech lending berizin di OJK per 22 April 2022 [List of registered and licensed fintech lending at OJK per April 22, 2022]. (In Indonesian).
- Pal, A., De’, R., Herath, T., & Rao, H. R. (2019). A review of contextual factors affecting mobile payment adoption and use. Journal of Banking and Financial Technology, 3, 43-57.
- Petrović, M., Rajin, D., Milenković, D., & Marić, D. (2021). The influence of EWOM on the use of mobile banking. Ekonomika Preduzeca, 69(3-4), 95-104.
- Pohan, N. W., Budi, I., & Suryono, R. R. (2020). Borrower sentiment on P2P lending in Indonesia based on Google Playstore reviews. Proceedings of the Sriwijaya International Conference on Information Technology and Its Applications (SICONIAN 2019).
- Prelec, D., & Loewenstein, G. (1998). The red and the black: Mental accounting of savings and debt. Marketing Science, 17(1), 4-28.
- Ranyard, R., Hinkley, L., Williamson, J., & McHugh, S. (2006). The role of mental accounting in consumer credit decision processes. Journal of Economic Psychology, 27(4), 571-588.
- Ranyard, R., Hinkley, L., Williamson, J., & McHugh, S. (2006). The role of mental accounting in consumer credit decision processes. Journal of Economic Psychology, 27(4), 571-588.
- Ranyard, R., Mchugh, S., & Mcnair, S. (2017). The psychology of borrowing and over-indebtedness. In R. Ranyard (Ed.), Economic Psychology (pp. 222-238).
- Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2P lending adoption by SMEs in Indonesia. Qualitative Research in Financial Markets, 11(2), 260-279.
- Sachdev, N., Singh, K. N., Vohra, K., & Vinayak, V. (2022). Systematic review & implications of fintech instruments in Indian micro small and medium enterprises. Universal Journal of Accounting and Finance, 10(3), 772-783.
- Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology & Marketing, 39(5), 1035-1064.
- Shih, H.-M., Chen, B. H., Chen, M.-H., Wang, C.-H., & Wang, L.-F. (2022). A study of financial behavior based on the theory of planned behavior. International Journal of Marketing Studies, 14(2).
- Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322-2347.
- Siddiqui, T. A., & Siddiqui, K. I. (2020). FinTech in India: An analysis on impact of telecommunication on financial inclusion. Strategic Change, 29(3), 321-330.
- Stefanelli, V., Ferilli, G. B., & Boscia, V. (2022). Exploring the lending business crowdfunding to support SMEs financing decisions. Journal of Innovation & Knowledge, 7(4), 100278.
- Suryono, R. R., Budi, I., & Purwandari, B. (2021). Detection of Fintech P2P lending issues in Indonesia. Heliyon, 7(4), e06782.
- Svotwa, T. D., Jaiyeoba, O., Roberts-Lombard, M., & Makanyeza, C. (2022). Perceived access to finance, entrepreneurial self-efficacy, attitude toward entrepreneurship, entrepreneurial ability, and entrepreneurial intentions: A Botswana youth perspective. Sage Open, 12(2).
- Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199-214.
- Thaler, R. (2004). Mental accounting matters. In C. F. Camerer, G. Loewenstein, & M. Rabin (Eds.), Advances in Behavioral Economics (pp. 75-103). Princeton University Press.
- Venkatesh, V., Thong, J. Y., & Xu, X. (2012). Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS quarterly, 157-178.
- Wang, Q., Xiong, X., & Zheng, Z. (2021). Platform characteristics and online peer-to-peer lending: Evidence from China. Finance Research Letters, 38, 101511.
- Wei, X., Gotoh, J.-ya, & Uryasev, S. (2018). Peer-to-peer lending: Classification in the loan application process. Risks, 6(4), 129.
- Zavolokina, L., Dolata, M., & Schwabe, G. (2016). FinTech – What’s in a name? International Conference on Interaction Sciences.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4454 Downloads: 1707 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot 
,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3496 Downloads: 825 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
-
Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
RR. Iramani , Muazaroh Muazaroh , Abdul Mongid
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.01
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3156 Downloads: 309 TO CITE АНОТАЦІЯThis paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.
