Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control
-
Received September 18, 2023;Accepted October 30, 2023;Published November 7, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0002-5366-4914Link to ORCID Index: https://orcid.org/0000-0001-7262-9682Link to ORCID Index: https://orcid.org/0000-0001-9470-9480Link to ORCID Index: https://orcid.org/0000-0001-6479-0011
-
DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.15
-
Article InfoVolume 20 2023, Issue #4, pp. 171-181
- TO CITE АНОТАЦІЯ
- 870 Views
-
236 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances.
Acknowledgment
This study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.
- Keywords
-
JEL Classification (Paper profile tab)G40, G53
-
References52
-
Tables7
-
Figures1
-
- Figure 1. Conceptual model
-
- Table 1. Cronbach’s alpha and composite reliability
- Table 2. Average variance extracted
- Table 3. Cross-loading
- Table 4. Fornell-Larcker criterion
- Table 5. Average communalities index
- Table 6. R-square
- Table 7. Direct effects and moderating effects
-
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Ajzen, I. (2005). Attitudes, Personality, and Behavior (2nd ed.). Open University Press.
- Albeerdy, M. I., & Gharleghi, B. (2015). Determinants of the Financial Literacy among College Students in Malaysia. International Journal of Business Administration, 6(3), 15-24.
- Amanah, E., Iradianty, A., & Rahardian, D. (2016). The Influence of Financial Knowledge, Financial Attitude and External Locus of Control on Personal Financial Management Behavior Case Study of Bachelor Degree Student in Telkom University. E-Proceeding of Management, 3(2), 1228-1235.
- Ameliawati, M., & Setiyani, R. (2018). The Influence of Financial Attitude, Financial Socialization, and Financial Experience to Financial Management Behavior with Financial Literacy as the Mediation Variable. KnE Social Sciences, 3(10), 811-832.
- Asandimitra, N., & Kautsar, A. (2019). The influence of financial information, financial self efficacy, and emotional intelligence to financial management behavior of female lecturer. Humanities and Social Sciences Reviews, 7(6), 1112-1124.
- Chen, F., Yu, D., & Sun, Z. (2023). Investigating the associations of consumer financial knowledge and financial behaviors of credit card use. Heliyon, 9(1).
- Danes, S. M. (1994). Parental perceptions of children’s financial socialization. Journal of Financial Counseling and Planning, 5, 127-149.
- Darmawan, A., Suyoto, W. H., Utami, N. H., Razak, A. A. Z. A., & Ab Wahid, H. (2018). The Effect of Financial Literacy, Financial Experience, and Locus of Control Towards Financial Management Attitude and Family Investment Planning Behavior. Proceedings International Conference of Business, Accounting and Economic (ICBAE UMP 2018), 206-215.
- Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173(2021), 1-11.
- Ghasarma, R., Putri, L., & Adam, M. (2017). Financial Literacy; Strategies and Concepts in Understanding the Financial Planning With Self-Efficacy Theory and Goal Setting Theory of Motivation Approach. International Journal of Economics and Financial Issues, 7(4), 182-188.
- Ghozali, I., & Latan, H. (2015). Konsep, Teknik, Aplikasi Menggunakan Smart PLS 3.0 Untuk Penelitian Empiris. BP Undip.
- Ginting Suka, L. T. R. B., Fachrudin, K. A., & Silalahi, A. S. (2022). The Influence of Financial Attitude and Financial Socialization Agent on Financial Behavior with Financial Self Efficacy as Moderating Variables (Study on Students Who are Boarding in the City of Medan). International Journal of Research and Review, 9(1), 588-595.
- Griffin, S. A., & Sibilang, N. P. (2022). The Influence of Financial Attitude and Financial Knowledge on Financial Management Behavior Moderated by Locus of Control in Generation Z. Jurnal Multidisiplin Madani, 2(12), 4141-4150.
- Hair, Joe F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications.
- Hair, Joseph F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least (PLS-SEM) Using R Equation Modeling Squares Structural : A Workbook. Springer.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Hira, T. K., Sabri, M. F., & Loibl, C. (2013). Financial socialization’s impact on investment orientation and household net worth. International Journal of Consumer Studies, 37(1), 29-35.
- Jazuli, A., & Setiyani, R. (2021). Anteseden Financial Management Behavior: Financial Literacy Sebagai Intervening Aroh. Economic Education Analysis Journal, 10(1), 163-176.
- Jennifer, J., & Widoatmodjo, S. (2023). The Influence of Financial Knowledge, Financial Literacy, and Financial Technology on Financial Management Behavior Among Young Adults. International Journal of Application on Economics and Business (IJAEB), 1(1), 344-353.
- Johan, I., Rowlingson, K., & Appleyard, L. (2021). The Effect of Personal Finance Education on The Financial Knowledge, Attitudes and Behaviour of University Students in Indonesia. Journal of Family and Economic Issues, 42(2), 351-367.
- Khawar, S., & Sarwar, A. (2021). Financial literacy and financial behavior with the mediating effect of family financial socialization in the financial institutions of Lahore, Pakistan. Future Business Journal, 7(1), 1-11.
- Kholilah, N. Al, & Iramani, R. (2013). Studi Financial Management Behavior pada Masyarakat Surabaya. Journal of Business and Banking, 3(1), 69-80.
- Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1), 1-8.
- Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44.
- Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young: Evidence and implications for consumer policy. Pension Research Council WP, 9.
- Marsh, C. (2010). Becoming a teacher, Knowledge, Skills and Issues. Devisi of Pearson.
- Mason, C. L. J., & Wilson, R. M. S. (2000). Conceptualising Financial Literacy. Business School Research Series, 7(1), 1-41.
- Mien, N. T. N., & Thao, T. P. (2015). Factors affecting personal financial management behaviors: Evidence from Vietnam. Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference), 10-12.
- Moko, W., Sudiro, A., & Kurniasari, I. (2022). The effect of financial knowledge, financial attitude, and personality on financial management behavior. International Journal of Research in Business and Social Science (2147-4478), 11(9), 184-192.
- Mukmin, M., Gunawan, A., Arif, M., & Jufrizen, J. (2021). Pengujian Konstruk Literasi Keuangan Mahasiswa [Testing Student Financial Literacy Constructs]. Jurnal Ilmiah Manajemen Dan Bisnis, 22(2), 291-303. (In Indonesian).
- Nasution, M. I., Fahmi, M., Jufrizen, J., Muslih, M., & Prayogi, M. A. (2020). The Quality of Small and Medium Enterprises Performance Using the Structural Equation Model-Part Least Square (SEM-PLS). Journal of Physics: Conference Series, 1477(2020), 1-7.
- Nave, J. M., Oliva, L., & Toscano, D. (2023). Financial knowledge and financial behaviour: The moderating role of home ownership. Finance Research Letters, 57, 104208.
- Prawitasari, D., Kadarningsih, A., Sumaryati, A., Desy, C., & Sari, L. (2022). How To Measure Personal Financial Management Behavior During The Covid-19 Pandemic. Economics & Business Solutions Journal, 6(2), 89-104.
- Prihartono, M. R. D., & Asandimitra, N. (2018). Analysis Factors Influencing Financial Management Behaviour. International Journal of Academic Research in Business and Social Sciences, 8(8), 308-326.
- Purwidianti, W., & Tubastuvi, N. (2019). The Effect of Financial Literacy and Financial Experience on SME Financial Behavior in Indonesia. Jurnal Dinamika Manajemen, 10(1), 40-45.
- Purwidianti, W., Tubastuvi, N., Darmawan, A., & Rahmawati, I. Y. (2022). Does A Budget Process Mediate The Relationship Between Financial Literacy, Capacity and Goal Congruence of Businesses? Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021), 201, 235-241.
- Qasim, M., & Siddiqui, D. A. (2021). Impact of Financial Socialization, Financial Literacy, and Attitude Towards Money on Financial Well-Being in Pakistan: The Complementary Role of Financial Self-Efficacy, Locus of Control, and Collectivism. SSRN Electronic Journal.
- Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review, 8(1), 51-60.
- Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior (Pearson (ed.). Pearson Education (US).
- Rotter, J. B. (2009). Generalized Expectancies For Internal Versus External Control of Reinforcement. Psychological Monographs, 1(80), 1-18.
- Safitri, A., & Kartawinata, B. R. (2020). Pengaruh Financial Socialization dan Financial Experience Terhadap Financial Management Behavior (Studi pada Wanita Bekerja di Kota Bandung) [The Influence of Financial Socialization and Financial Experience on Financial Management Behavior (Study of Working Women in Bandung City)]. Jurnal Ilmu Keuangan Dan Perbankan (JIKA), 9(2), 157-169. (In Indonesian).
- Stolper, O. A., & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of Business Economics, 87(5), 581-643.
- Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30-38.
- Subaida, I., & Hakiki, F. N. (2021). Pengaruh Pengetahuan Keuangan dan Pengalaman Keuangan terhadap Perilaku Perencanaan Investasi dengan Kontrol Diri sebagai Variabel Moderasi [The Influence of Financial Knowledge and Financial Experience on Investment Planning Behavior with Self-Control as a Moderating Variable]. Jurnal Ilmu Keluarga Dan Konsumen, 14(2), 152-163. (In Indonesian).
- Sundarasen, S. D. D., Rahman, M. S., Othman, N. S., & Danaraj, J. (2016). Impact of Financial Literacy, Financial Socialization Agents, and Parental Norms on Money Management. Journal of Business Studies Quarterly, 22(12), 4312-4315.
- Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
- Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48(1), 159-205.
- Tyler, N., Heffernan, R., & Fortune, C. A. (2020). Reorienting Locus of Control in Individuals Who Have Offended Through Strengths-Based Interventions: Personal Agency and the Good Lives Model. Frontiers in Psychology, 11(September).
- Ullah, S., & Yusheng, K. (2020). Financial Socialization, Childhood Experiences and Financial Well-Being: The Mediating Role of Locus of Control. Frontiers in Psychology, 11(September), 1-11.
- Wahyuni, S. F., Radiman, R., Shareza, M. H., & Jufrizen, J. (2023). Financial literacy and financial attitude on financial management behavior: An examination of the mediating role of the behavioral intention of students at private universities in Indonesia. Investment Management and Financial Innovations, 20(3), 239-250.
- Ward, S. (1974). Consumer Socialization. Journal of Consumer Research, 1(2), 1-14.
-
-
Conceptualization
Ade Gunawan
-
Data curation
Ade Gunawan, Mukmin, Sri Fitri Wahyuni
-
Investigation
Ade Gunawan, Mukmin, Sri Fitri Wahyuni, Maya Sari
-
Methodology
Ade Gunawan, Maya Sari
-
Project administration
Ade Gunawan, Mukmin
-
Supervision
Ade Gunawan, Mukmin, Maya Sari
-
Visualization
Ade Gunawan, Mukmin, Sri Fitri Wahyuni
-
Writing – original draft
Ade Gunawan, Maya Sari
-
Writing – review & editing
Ade Gunawan, Mukmin, Sri Fitri Wahyuni, Maya Sari
-
Formal Analysis
Sri Fitri Wahyuni, Maya Sari
-
Validation
Sri Fitri Wahyuni
-
Conceptualization
-
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).2021.02Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4453 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).2020.10Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3495 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
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3155 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.