Dezie Leonarda Warganegara

Indonesian stock market is dominated by young and relatively inexperienced traders who often depend on the recommendations of influencers or bloggers in social media. This will then make them dependent and conduct frequent trading, which also means higher transaction costs that diminish their profits and increase their risks, thus decreasing investor satisfaction. Therefore, this study aimed to examine the impact of perceived investor sophistication and social media influence on investment satisfaction mediated with perceived investment return as a mediating element. The analysis focused on young investors aged 18 to 30 who have invested in shares on the Indonesian Stock Exchange for at least one year. A quantitative method was adopted using questionnaires to collect data from 344 respondents. Furthermore, data were analyzed using Structural Equation Modeling – Partial Least Square (SEM-PLS) with SMART PLS 4.0 software. The results showed that both perceived investor sophistication and investment return significantly affected investment satisfaction with beta coefficients of 0.416 and 0.358, respectively. Perceived investor sophistication also significantly influenced perceived investment return with a beta coefficient of 0.557. Additionally, social media influence significantly affected perceived investment return with a beta coefficient of 0.103. This social media influence did not directly impact investment satisfaction but through the perceived investment return, which was further found to fully mediate the impact of social media influence on investment satisfaction. Perceived investment return also partially mediated the effect of investor sophistication on Investment Satisfaction.

Rapid advances in technology and shifting customer expectations have intensified competition in the financial industry, forcing Indonesia’s banking sector to adopt adaptive and innovative strategies to remain competitive in an increasingly complex and uncertain environment. This study investigates the role of business transformation strategy in organizational performance. Employing a quantitative approach using Structural Equation Modeling (SEM), the study analyzes data collected from 255 Branch Managers across 27 Regional Development Banks in Indonesia. The coefficient of determination for the business transformation strategy was 0.69, indicating that 69% of its variance could be explained by environmental dynamism, transformational leadership, talent development, and digital adoption. Similarly, the R2 value for organizational performance was 0.51, indicating that digital adoption and business transformation strategy accounted for 51% of its variance. The findings reveal that environmental dynamism (t-value 1.85) and talent development (t-value 1.58) do not positively affect business transformation strategy. Instead, transformational leadership (t-value 2.38) and digital adoption (t-value 4.28) positively affect business transformational strategy. Furthermore, business transformation strategy (t-value 3.10) positively affects organizational performance. Meanwhile, business transformation strategy does not mediate the influences of environmental dynamism, talent development, and transformational leadership on organizational performance but strongly mediates digital adoption. This study emphasizes that business transformation strategy is the cornerstone for aligning digital adoption and leadership approaches to drive organizational performance. This study contributes to understanding business transformation strategy in the banking industry by providing technology-driven strategic insights from Indonesian Regional Development Banks.