The Proceedings of the ASEAN School of Business Network International Conference
Volume 1, Tahun 2024 The Proceedings of the ASEAN School of Business Network International Conference (ASBNIC) is an annual event that unites academics, researchers, and professionals. The featuring key themes in this Proceedings such as: Accounting & Financial Management Human Capital Management Marketing Management Strategic, Operation Management, and Management of Technology Economics Entrepreneurship and Social Sciences Join us for insightful keynote speeches, research presentations, and interactive sessions aimed at fostering collaboration and knowledge exchange. All accepted papers will be published with open access, ensuring global availability. For more details and registration, visit our website or contact us at info@aseansbn.org.
From Abroad Learning to Sustainability Impacts: A TCCM-Based Research Agenda for Sustainability Knowledge Acquisition
Study-abroad experiences provide students with valuable opportunities to broaden their perspectives and cultivate sustainable behavior. Exposure to cultural, environmental, and social contexts fosters a deeper understanding of sustainability and encourages behavioral changes aligned with long-term sustainability goals. In response to the growing number of programs integrating sustainability into study-abroad initiatives, attempts to systematically review the literature development would uncover various experiences gained through the program, identify gaps, and propose future research direction. This study aims to explore existing literature related to knowledge gained from study abroad, particularly for sustainability behavior and management. A set of current literature addressing sustainability management and study abroad knowledge sharing was compiled and evaluated using a TCCM approach. Current topics discussed were proposed as research themes, and underexplored areas will be investigated to propose future research trajectories.
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Utilization of System Application and Product in Data Processing (SAP) to Support Employee Data Management Effectiveness
In the era of digital transformation, effective employee data management has become a crucial necessity for large companies such as PT Telkom Indonesia Regional 2. The operational complexity and need for accurate and real-time data have driven the adoption of System Application and Product in Data Processing (SAP) systems, particularly the Human Capital Management (HCM) module. This research aims to examine the utilization of SAP in supporting employee data management effectiveness, identify influencing factors, and explore implementation constraints and solutions. Using a phenomenological qualitative approach, data were collected through in-depth interviews, observations, and documentation involving five employees directly engaged in SAP HCM usage. The research findings indicate that SAP HCM provides tangible benefits in improving data efficiency and accuracy; however, its effectiveness remains hindered by limitations in user training, restricted network access, and suboptimal system integration. In conclusion, SAP HCM has strategic potential in supporting human resource management if supported by continuous training and system infrastructure strengthening. The limitations of this study lie in its narrow regional scope and purely qualitative approach; further research is recommended to encompass other regions and employ quantitative methods to strengthen the generalizability of findings.
Generation Z's Expectations for Well-being in the Workplace: The Role of Work Meaningfulness and Gender Factors
This study investigates how Gen-Z envisions well-being in the workplace, particularly within the framework of sustainable work environments. Using the PERMA model, which encompasses Positive Emotion, Engagement, Relationships, Meaning, and Accomplishment, as the guiding theory, the research examines whether these five dimensions effectively capture Gen Z’s expectations for future workplace well-being. Besides that, the research also examines the relationship between work meaningfulness and well-being, moderated by the gender factor. Data were gathered from 454 university students in Indonesia. through a structured questionnaire and analyzed using Exploratory Factor Analysis (EFA) and SEM PLS. Interestingly, rather than emerging as five distinct dimensions, the PERMA items loaded onto two dimensions named Hedonic and Eudaimonic Well-being. This suggests that Gen-Z views workplace well-being from both a short and long-term perspective. Research also found that work meaningfulness positively impacts well-being, but gender does not moderate that relationship. The findings may also reflect a broader cultural inclination toward relational connectedness and shared meaning when assessing well-being. Besides that, the research also found that work meaningfulness positively impacts well-being on students, but gender does not moderate that relationship. By offering these insights, the study contributes to higher education institutions, career guidance service providers, and curriculum designers in developing self-development and career readiness programs that not only emphasize improving short-term happiness aspects (hedonic), but also prioritize strengthening meaning, engagement, and sustainable achievement (eudaimonic).
Ground Floor, Mirror, and Puzzle Piece: Salary Sensemaking Among Indonesian Gen Z
This study explores how Indonesian Generation Z (Gen Z) perceives salary as they prepare to enter the workforce. While prior research has often treated salary as either a priority or secondary factor in job selection, this study focuses on how salary is conceptually constructed by young individuals with limited but formative work experience. Using a qualitative exploratory approach, data were collected through semi-structured interviews with 32 Gen Z respondents who had completed internships or part-time jobs but had not entered full-time employment. Thematic analysis revealed three overarching perceptions: (1) salary as the ground floor—a basic threshold to meet living needs; (2) salary as a mirror—reflecting job demands, one's skills and contributions; and (3) salary as one piece—part of a larger set of factors including work-life balance, career development, and organizational culture. These findings offer a more nuanced, context-sensitive view of salary as both a material necessity and symbolic construct.
Student's Readiness for the Industry: An Analytical of Digital Literacy Aspect
The advancement of information technology and increasingly sophisticated internet access has positively impacted society. Unsurprisingly, the world of work now demands human resources capable of optimally utilizing technology and the internet. Today's young generation, known as digital natives, is considered to have high technological skills. However, several studies show that this generation has not fully demonstrated a high curiosity about their surroundings, and has not been fully able to utilize technology effectively. The young generation's interest in digital technology professions must be supported by strengthening critical thinking and information processing skills through increasing digital literacy. Digital literacy is vital to being productively involved in the ever-growing digital economy. This study analyzed digital literacy, which was measured using three main elements—complementary, familiarity, and security—and developed it into six indicators: communication and collaboration, critical thinking, ICT familiarity, data literacy, device security, and personal security. The research was quantitative with a purposive sampling approach, and the respondents were last-year university students. This research is expected to contribute to developing a higher education curriculum by strengthening digital literacy and students' curiosity to be better prepared to face the demands of the digital industry. Educational institutions can utilize the results to design relevant learning programs and by sector in formulating recruitment and HR development strategies. The improvement of these two aspects encourages the active participation of the younger generation in the digital economy. It supports the transformation of industry 5.0, which emphasizes the integration of humans and technology in an intelligent, adaptive, and ethical manner.
Digital Leadership for Building Digital Entrepreneurship of MSMEs
This research aims to analyze the role of digital leadership and digital entrepreneurship indicators from various literatures that best suit creative MSMEs. This research analyzes the model and process of digital leadership in increasing digital entrepreneurship. This study is a qualitative research with the object of research on creative MSMEs in Daerah Istimewa Yogyakarta (DIY), Indonesia. Descriptive analysis was conducted using primary data obtained through interviews with informants. Informants consisted of: creative MSME owners, experts in business and management of creative MSMEs, and the government as a regulator. The results explain that digital leadership is able to improve digital entrepreneurship as an effort to achieve SDGs in creative MSMEs in Daerah Istimewa Yogyakarta (DIY), Indonesia. This research recommends digital leadership models and processes in improving digital entrepreneurship on creative MSMEs in Daerah Istimewa Yogyakarta (DIY), Indonesia.
Exploring Entrepreneurial Mindsets and Aspirations Among Management Undergraduates
This study explores the motivational antecedents, trait perceptions, and career aspirations of undergraduate management students in Yogyakarta using a sequential explanatory mixed-methods design. Quantitative findings from structural path modeling (n = 222) revealed that self-driven motivation (SEL) significantly predicted both start-up and family business intentions, while perceived study effectiveness (EFF) predicted both entrepreneurial and professional career aspirations. Family influence (FAM) had a strong direct effect on family business intention but not on other career paths. Entrepreneurial traits such as leadership and planning did not significantly mediate these relationships. The qualitative phase, drawing on thematic analysis of open-ended student narratives, enriched these findings by identifying key themes such as intrinsic ambition, family expectations, perceived program versatility, and critical entrepreneurial traits: risk-taking, creativity, persistence, and honesty. Notably, honesty and phased career strategies emerged as underexplored but significant themes. Together, the findings suggest that while internal motivation and perceived curriculum relevance drive entrepreneurial intent, emerging traits and ethical values like honesty deserve further attention in future research and pedagogy. This integrated approach offers vital implications for entrepreneurship education, especially in culturally contextualized and early-career populations.
Connecting the Dots: How Business Model Innovation Bridges Innovation Capability and MSMEs' Performance?
Micro, small, and medium enterprises (MSMEs) significantly underpin Indonesia’s economy, yet sustaining their business performance remains a critical challenge. While extensive literature emphasizes the strategic role of innovation capability in enhancing SMEs’ performance, many studies have concentrated on narrow, industry-specific contexts, limiting their generalizability. Moreover, the mechanisms through which innovation capability translates into tangible performance gains remain insufficiently explored, particularly the mediating role of business model innovation. Addressing this gap, this study explores the relationships among innovation capability, business model innovation, and MSMEs’ performance. Structured questionnaires were disseminated among MSME owners and managers engaged in business model innovation. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that innovation capability significantly improves MSMEs’ performance, with business model innovation acting as a crucial pathway in this relationship. Theoretically, the current study enriches the dynamic capabilities framework by clarifying how business model innovation serves as a mediating mechanism in the innovation–performance relationship. Practically, the insights offer MSME owners and managers actionable strategies to leverage innovation capability and business model innovation to sustain growth in dynamic markets. In light of prior studies, this study is among the first empirical studies exploring the mediating role of business model innovation in the link between innovation capability and performance within MSMEs context. This contribution also resonates with Sustainable Development Goals (SDGs), which emphasizes fostering inclusive and sustainable SME growth in emerging economies.
Does Digital Entrepreneurship Education Affect Students’ Interest in Digital Entrepreneurship?
The rapid development of technology has become a major force in transforming traditional business models into digital ones. As businesses adapt to the demands of the digital era, the education sector is also undergoing significant changes, particularly through the introduction of digital entrepreneurial education. The design of digital entrepreneurship education integrates business knowledge with digital skills. This form of education aims to equip students with digital entrepreneurial knowledge that prepares them to face both the challenges and opportunities in the digital business. However, an important question arises: Does digital entrepreneurial knowledge encourage digital entrepreneurial intention among students? This study is conducted to analyze the relationship between digital entrepreneurial knowledge and digital entrepreneurial intention. Digital entrepreneurial knowledge can enhance students’ intention to start a digital business. The knowledge also strengthens their interest in digital business through digital self-efficacy. Digital self-efficacy refers to students’ belief in their ability to successfully apply digital skills and knowledge. It plays a crucial role in shaping students’ motivation and readiness to engage in digital entrepreneurship. By analyzing these relationships, this study contributes to a deeper understanding of how digital entrepreneurship education can stimulate entrepreneurial intention in the digital economy.
Student Loan Repayment: A Global Review of Behavioural, Financial, and Policy Dimensions (2020–2025)
This study provides a general review explores global trends in of behavioural, economic, and psychosocial aspects of student loan repayment systems. It synthesizes empirical literature published between 2020 and 2025 from databases including Scopus, Web of Science, and Google Scholar. The review identifies six key themes: (1) rising interest in behavioural and psychosocial aspects of repayment; (2) financial self-efficacy and financial literacy have a strong influence on repayment outcomes, while minority groups suffer from disproportionate debt burdens; (3) income-driven repayment models effectively in reducing delinquency but are challenged by administrative complexity and unequal access; (4) psychological stress, financial strain, and low self-efficacy exacerbate repayment struggling, with structural barriers and pandemic shocks widen inequities; (5) targeted subsidies and need-based grants are more equitable than broad loan forgiveness, with a service-linked forgiveness enhancing workforce outcomes; and (6) policy innovations such as behavioural nudges, risk-sharing mechanisms, and streamlined administration can enhance sustainability and equity of repayment. This study offers a multifaceted synthesis that incorporates behavioural, financial, and policy perspectives worldwide with a focus on underrepresented regions and psychological aspects. As policy implication, the study highlights the importance of integrated behavioural interventions, simplified repayment structures, and culturally sensitive policies to promote the sustainability of repayments and wellbeing of borrowers.
Hierarchy of Knowledge and Values in Management: A Qualitative Study Based on Literature Review
This article deeply examines the hierarchical structure of science and values that underlie management practices within the framework of modern capitalism, using a qualitative approach based on a comprehensive literature study. This research aims to understand how management science is organized in a scientific hierarchy that is not only technical-instrumental, but also loaded with ideological and normative content. The main focus is directed at revealing the main principles and rules underlying managerial practices in the capitalist system, as well as how certain values, such as efficiency, profitability, and economic growth are used as the main basis for decision making. Data were collected from various secondary sources such as academic journals, management theory textbooks, and relevant documents related to political-economic thought and philosophy of science. The analysis was conducted by identifying patterns of thought and dominant narratives that shape the construction of management science in the context of capitalism. By adopting a theoretical framework that covers the dimensions of ontology (the nature of organizational and market reality), epistemology (the way managerial knowledge is acquired), and axiology (the values underlying managerial actions), this research reveals the social and ideological constructions that shape management practices under the global capitalism system. The main findings suggest a fundamental tension between the orientation towards economic efficiency and the demands of social ethics and environmental sustainability. Therefore, this article emphasizes the importance of developing management theory and practice that is more adaptive to contemporary social, ecological and economic dynamics. This research is expected to contribute to the strengthening of the theoretical foundation of management science and offer an alternative approach that is more ethical, inclusive, and sustainable in answering management challenges in the modern era.
Enhancing the Measurement of Financial Literacy: Integrating Digital Dimensions for Inclusive Financial Well-Being
Despite global initiatives to strengthen financial capability, existing measurement frameworks often fall short in capturing the behavioural and digital dimensions essential for promoting inclusive financial well-being in a rapidly digitising economy. This study aims to enhance the conceptual and general literature of financial literacy measurement by systematically reviewing recent scholarly. A qualitative content and thematic analysis was conducted on 35 Scopus-indexed articles published between 2024 and 2025, focusing on the integration of behavioural finance theories and digital inclusion practices. The findings reveal critical intersections among financial literacy, behavioural intentions, and digital competencies, supported by frameworks such as the Theory of Planned Behaviour and Theory of Reasoned Action. Emerging trends highlight the transformative potential of AI-driven tools, workshops, gamified learning, and mobile financial services in reshaping financial education and behaviour. The study also underscores the role of digital empowerment in mitigating financial exclusion and recommends the adoption of culturally sensitive, multi-dimensional measurement instruments. This review advances a more inclusive and responsive agenda for financial well-being in diverse socio-economic contexts by reframing financial literacy as a dynamic behavioural construct moderated by digital access and psychological factors.
Digital Cross-Border Trade Between Malaysia and ASEAN: A Comparative Digital Economy Framework Agreement (DEFA) Analysis
The rapid growth of the digital economy in Southeast Asia presents new opportunities for cross-border trade, particularly under the emerging ASEAN Digital Economy Framework Agreement (DEFA). This paper explores Malaysia’s readiness to engage in digital cross-border trade with ASEAN partners, focusing on policy alignment, infrastructure and institutional preparedness among others. Using a comparative policy matrix across six DEFA pillars namely data governance, digital payments, electronic transactions, cybersecurity, e-commerce facilitation, and digital inclusion; the study benchmarks Malaysia’s existing performance and readiness against ASEAN peers including Singapore, Indonesia, Thailand, and Vietnam.
Digital Economy Framework Agreement (DEFA)
Association of Southeast Asian Nations (ASEAN)
Revisiting the EKC Hypothesis in Indonesia: The Role of Economic Growth, Coal Production, and Renewable Energy in Carbon Emissions
The Environmental Kuznets Curve (EKC) hypothesis suggests an inverted U-shaped relationship between economic growth and carbon emission. This study revisits the EKC hypothesis in Indonesia by examining the dynamic interplay among economic growth, coal production, and renewable energy consumption. Using time-series data from the World Development Bank and Our World in Data from 1991-2021, the study applies a quadratic linear regression model based on the Ordinary Least Squares (OLS) method to assess whether Indonesia exhibits the characteristic EKC pattern. Furthermore, the role of renewable energy in mitigating environmental degradation is explored. The findings confirm the existence of an EKC pattern in Indonesia, with carbon emissions initially rising alongside GDP growth but declining as income reaches higher levels. The estimated turning point occurs at an average GDP per capita of approximately USD 7,256. However, renewable energy consumption does not yet show a statistically significant effect on emissions reduction, which may be attributed to its relatively small share in the national energy mix. This study highlights the unique context of Indonesia, a major emerging economy with high fossil fuel dependency and underdeveloped renewable energy infrastructure. It offers novel insights by integrating coal production and renewable energy as core factors affecting emissions trajectories.
AI-Driven Disruption in Banking: OCBC’s Bold Move Toward Digital Service Optimization
Technology has become an integral part of almost all business activities, from operations to customer interactions. In this context, companies are required to transform in order to remain relevant and competitive. Digital transformation, through the use of artificial intelligence (AI), has become a strategic approach to improving efficiency, innovation, and service quality, particularly in the financial sector. This research is important because AI not only changes how financial institutions operate but also reshapes customer expectations and experiences. This study aims to explore how OCBC Bank implements its digital transformation strategy with an emphasis on the use of AI to optimise financial services. It uses qualitative methods with literature studies from several sources, such as scientific articles, theoretical books, OCBC Bank's annual reports, official publications from OCBC, and previous studies relevant to AI and digital transformation in the financial sector. The researcher found that OCBC Bank has been actively involved in the use of AI and is one of the first banks globally to implement Generative AI for all employees. OCBC also focuses on leveraging AI in three key functions: personalisation and customer service, operational efficiency, and risk mitigation. The implementation of AI has proven to drive operational efficiency, accelerate service processes, and significantly enhance the quality of interactions with customers.
The Effect of Financial Constraints and Financial Risk on Capital Structure with Profitability and Tangibility as Moderating Variables
Optimal capital structure is an important decision in corporate financial management, but it is often influenced by financing limitations and the level of risk faced. This study investigates the effect of financial constraints and financial risks on corporate capital structure, with profitability and asset tangibility as moderating variables. This study uses a quantitative method with secondary data obtained from the annual financial reports of companies listed on the Indonesia Stock Exchange (IDX). The results of the study indicate that financial constraints and financial risks have a significant effect on capital structure. Profitability and tangibility are proven to moderate the relationship, where profitability weakens the effect of financial constraints on capital structure, while tangibility strengthens the effect of financial risk on capital structure. These findings provide important implications for financial managers in determining adaptive funding policies to the company's internal and external conditions.
External Shock and Industry Resilience: The Contagion Effect of Trump Retaliation Tariff in the Indonesian Stock Exchange
This study examines the sectoral sensitivity of Indonesia's equity market to tariff shocks during the Trump administration's protectionist trade agenda. Utilizing an event study centered on the reciprocal tariff announcement on April 8, 2025, we analyze the cumulative abnormal returns (CAR) of eleven sectoral indices on the Indonesia Stock Exchange (IDX) using daily data and a mean-adjusted model. We assess immediate impact, short-term recovery, and cross-sectoral variation using one-sample t-tests. As a result of increased exposure to global value chains and investor uncertainty, the Technology sector saw the most significant decline on the event date (CAR = -11.79%), followed by Basic Materials and Consumer Cyclicals. Technology stayed in negative territory until day 18 (t+17), while most sectors recovered within two to five trading days. On the other hand, the Basic Materials, Energy, infrastructure, transport, non-cyclical, and cyclical sectors bounced back quickly, reaching positive CAR in two days, probably helped by expectations of commodity resilience and supply chain substitution. These findings suggest that US tariff shocks transmit to emerging markets like Indonesia through trade-expectation channels, disproportionately affecting sectors reliant on imported inputs and external demand.
The Role of Corporate Governance Mechanism and Green Innovation on Firm Performance
This study examines the influence of corporate governance mechanism, specifically ownership concentration and board size on green innovation and its subsequent impact on firm performance. The research aims to understand how corporate governance structures can support Sustainable Development Goals (SDGs) through green innovation adoption, particularly within the Indonesian oil and gas industry. The sample comprises 10 Indonesian oil and gas companies from 2015 to 2024. This research uses archival data collection, especially secondary data from Annual Report, Sustainability Report and Corporate Social Responsibility Report. The analytical tool used in this research is EViews with the Generalized Least Square (GLS) technique. The findings indicate that corporate governance mechanism, as measured by ownership concentration and board size, have no effect on green innovation. This suggests that these governance factors may not be primary drivers of green innovation in this sector. Furthermore, the study reveals that green innovation negatively impacts the firm performance. This implies potential challenges or costs associated with green innovation implementation in the firm.
Strategic Sustainability through the RBV Lens: ESG as a Moderator in the Link Between Environmental Innovation, Sustainable Supply Chains and Financial Performance
In response to increasing global concern over climate change and stricter environmental regulations, companies are adopting green strategies to mitigate environmental impacts and sustain their competitiveness. This study aims to bridge the internally driven Resource-Based View (RBV) and the externally oriented Stakeholder Theory by examining the moderating role of Environmental, Social, and Governance (ESG) practices in the relationship between environmental innovation, sustainable supply chain management (SSCM), and financial performance. The research theoretically contributes by integrating these two major frameworks and empirically providing insights into how sustainability initiatives influence corporate outcomes. A quantitative research design targets medium and large enterprises that disclose ESG performance or engage in certified environmental programs. Purposive sampling is used to identify respondents in managerial roles relevant to sustainability and operations. The data is collected via structured questionnaires, measured using a five-point Likert scale, and analyzed through Structural Equation Modeling (SEM) using SmartPLS. The analysis includes measurement and structural model assessments to evaluate construct validity, reliability, and the hypothesized moderation effects. The findings are expected to offer practical implications for firms in designing integrated sustainability strategies and to support stakeholders in evaluating ESG governance as a catalyst for financial performance.
What Happens After The Announcement Of The Launch Of Danantara On Indices In Indonesıa?
By comparing abnormal stock returns (AR) before and after the announcement date of February 24, 2025, this study examines the market's reaction to the introduction of Danantara, a government-led financial technology initiative in Indonesia. The study looks at AR over a 10-day period before and after the policy announcement using a quantitative approach and an event study methodology with a sample of 944 listed companies. The results show a positive market response after the announcement, with a statistically significant difference in abnormal returns verified by the Wilcoxon Signed-Rank Test (z = 2.369, p < 0.05). Following the launch, the return range narrowed and the return volatility decreased, indicating a stabilizing effect as the market absorbs the information. The semi-strong form of the Efficient Market Hypothesis (EMH), which holds that the market quickly integrates publicly available policy information into asset prices, is empirically supported by the results. The market's optimism about Danantara's ability to promote digital transformation and improve SME access to financing is also reflected in the observed positive AR when viewed through the prism of investor sentiment. The short-term character of these anomalous returns, however, calls for careful interpretation, and additional analysis utilizing firm- and macroeconomic-level indicators is necessary to determine the policy's long-term effects. This study adds to the small body of empirical research on how non-routine, government-led policy innovations in emerging markets affect the capital market.
Accountıng And Financial Management Digital Competence of Malaysian Future Accountants
Digitalization plays a fundamental role in Industry 4.0 by transforming traditional manual processes into automated, intelligent systems. This transformation necessitates a workforce adept in digital competencies. Despite advancements in digital integration, there remains a paucity of research assessing the digital proficiency of future Malaysian accountants. Accordingly, this study aims to evaluate the digital competency levels of these future accountants (i.e., undergraduate accounting students) and identify determinants influencing these competencies. Specifically, it examines the impact of students’ personal characteristics—academic performance, year of study, and gender—and social factors—parent education and parental home location —on digital competencies. Employing a quantitative methodology, data are collected through structured questionnaires administered to a representative sample of accounting undergraduates of several Malaysian public universities. The findings are anticipated to provide insights into the current state of digital readiness among aspiring accountants and inform curriculum development to better align accounting education with the demands of a digitalized professional landscape.
Financing Risk in Islamic Rural Banking in Indonesia: Internal and External Factors Determining
Financing risk is the most vital aspect in banking, so it must be managed so that it does not increase. The purpose of this study is to test the factors that determine financing risk. Financing risk is measured by non-performance financing (NPF), while the factors that are suspected of influencing financing risk consist of internal and external factors. Internal factors consist of profitability as measured by return on assets (ROA), capital as measured by capital adequacy ratio (CAR), liquidity risk as measured by financing to deposit ratio (FDR), and bank efficiency level as measured by operating expense to operating income ratio (EIR). While external factors consist of inflation rate, and Bank Indonesia interest rate. The population in this study were Islamic Rural Banks (IRBs) operating in Indonesia as many as 164 IRBs. Samples were taken as many as 75 IRBs with purposive sampling. The observation period was 4 years with quarterly data so that 1,200 observation data were collected. Hypothesis testing used panel data regression analysis by selecting three panel data regression models. After being tested with chow-test, Hausman-test, and Lagrange Multiplier-test, the common effect model was obtained as the best model. The results of the study with the common effect model are profitability (ROA), capital (CAR), efficiency level (EIR), and BI-rate have a positive and significant effect on financing risk. While liquidity risk (FDR) and inflation do not affect financing risk.
The Rise of Digital Banks in Malaysia: Discussion on Industry Impact and Strategic Insights
The rise of digital banks in Malaysia marks a transformative shift in the nation’s financial services sector, catalysed by technological advancements, evolving customer expectations, and proactive regulatory intervention. Anchored by Bank Negara Malaysia’s digital banking framework, the licensing of new digital-only banks is driving financial innovation, enhancing service accessibility, and fostering competition across the industry. This paper presents a comprehensive examination of digital banking, beginning with global trends and conceptual foundations, and narrowing in on Malaysia’s regulatory and institutional context. It analyses the strategic positioning and operational models of licensed digital banks, particularly their efforts to serve financially underserved segments such as micro, small, and medium enterprises (MSMEs) and the unbanked. The study also assesses the strategic responses of incumbent banks and outlines the evolving cybersecurity and compliance landscape. Drawing on recent policy developments, market data, and case studies, the findings underscore the transformative potential of digital banks in promoting financial inclusion and catalysing a more resilient, technology-enabled banking ecosystem. The paper concludes with policy implications and avenues for future research.
Factors Influencing TikTok Video Advertisements on Intentions to Enroll in Higher Education Institutions Among Generation Z’s Middle Eastern Students in Malaysia
This conceptual paper explores the influence of TikTok video advertisements on the enrollment intentions of Middle Eastern Generation Z students in Malaysia. As social media becomes increasingly central to student recruitment, TikTok’s dynamic, short-form content offers new opportunities for higher education institutions to engage tech-savvy, digital-native audiences. Despite its growing popularity, limited research has examined how specific elements within TikTok ads influence international students’ decision-making processes. Grounded in the Theory of Planned Behavior (TPB), this study proposes a framework that incorporates both the core TPB constructs, attitude, subjective norms, and perceived behavioral control, and advertising-specific attributes such as emotional appeal, entertainment value, and informativeness. The aim is to conceptually examine how these factors interact to shape students’ behavioral intentions to enroll in Malaysian higher education institutions. By extending TPB to include advertising elements, this paper addresses a key gap in current literature on digital marketing in higher education. The findings of this conceptual discussion are expected to provide theoretical insight and practical guidance for institutions seeking to optimize their TikTok marketing strategies to attract international students. This study contributes to the broader understanding of social media’s role in shaping consumer behavior in the educational sector, particularly within the context of international student recruitment. The proposed framework lays the foundation for future empirical research and offers marketing professionals a clearer direction for creating impactful, student-centered advertising content on emerging platforms.
Buy Now, Pay Later and the Digital Lifestyle: An STP Analysis of AlloBank’s Strategy for the Gen Z Market
Generation Z has now entered adulthood, where they begin to make independent financial decisions. At this relatively young age, their attachment to a particular brand or financial product is still in the process of forming. Therefore, it is important to understand the characteristics of Gen Z and the factors that attract them to a product, including financial ones. This paper examines the characteristics of Gen Z and the marketing strategy of AlloBank, a digital bank offering a Buy Now Pay Later (BNPL) product called Allo Paylater. Through descriptive statistical analysis and content analysis, the STP strategy used by AlloBank to market its BNPL product is analysed to assess its alignment with the Gen Z target market. The paper highlights how Gen Z behaviour such as impulsive buying, preference for promotion, and openness to new digital platforms influence their financial decisions. Findings indicate that AlloBank has done its effort at targeting Gen Z but still has room for improvement through personalisation, engagement, and responsible usage features. In addition to that, strengthening credit risk management through improved scoring models and user education is critical for the long-term sustainability of Allo Paylater. These insights provide practical recommendations for digital banks aiming to scale BNPL products while maintaining financial stability and building lasting relationships with younger users.
CUSTOMER RETENTION THROUGH BRANDING AND SERVICE EXCELLENCE IN LOCAL COFFEE SHOPS IN YOGYAKARTA
The relationship between customers and local coffee shops in Yogyakarta is a critical determinant of business sustainability in an increasingly competitive market. This study examines how customer retention is shaped by two primary factors: branding efforts and the provision of service excellence. Effective branding enables coffee shops to establish a distinctive and memorable image in the minds of customers, thereby fostering emotional connections and brand loyalty. Simultaneously, delivering high-quality service ensures customer satisfaction and positive experiences, which are essential for encouraging repeat visits. Importantly, this research identifies customer satisfaction as a moderating variable that can either strengthen or weaken the impact of branding and service excellence on customer retention. When satisfaction is high, the positive effects of branding and service excellence on retention are amplified; conversely, low satisfaction can diminish these effects. The proposed conceptual model thus positions branding and service excellence as direct antecedents of customer retention, with customer satisfaction moderating these relationships. The findings of this study are intended to provide practical insights for local coffee shop managers in Yogyakarta, enabling them to design more effective strategies to enhance customer loyalty and ensure the long-term sustainability of their businesses. By understanding these dynamics, coffee shop owners can better meet customer expectations and maintain a loyal customer base in a dynamic marketplace.
A Narrative Review of Influencer Marketing: The Role of Credibility and Emotional Engagement in Shaping Gen Z's Purchase Intentions
Influencer marketing has become an important part of brand communication strategies in the digital age, especially in reaching Gen Z, who grew up with social media and are accustomed to making decisions based on digital content. This study aims to understand how two key aspects, influencer credibility and emotional engagement, independently shape Gen Z consumers' purchase intentions. The research was conducted in the form of a narrative review of 16 scholarly articles published between 2020 and 2025, obtained through literature searches on the Scopus, ScienceDirect, and Google Scholar databases. The findings show that influencer credibility demonstrated through trustworthiness, expertise, and personal appeal has a significant influence in shaping brand perception and increasing purchase intention, especially when there is congruence between the influencer's identity and the audience. Meanwhile, emotional engagement through parasocial relationships and perceived authenticity can strengthen the psychological connection between followers and influencers, which in turn influences purchase decisions. However, most studies still examine these two aspects separately, and not many have examined their interrelationships in depth. Moreover, the lack of research focusing on the Southeast Asian context, particularly Indonesia, suggests the need for a more contextualized approach. This review contributes to summarizing the latest literature developments, as well as providing practical direction for the industry in designing digital communication strategies that are more aligned with the characteristics and preferences of Gen Z.
Digital Faith Meets Sustainability: The Role of AI and Religiosity in Shaping Green Purchase Intentions in Bangladesh
As ASEAN economies increasingly embrace digital innovation to drive inclusive and sustainable development, understanding the socio-cultural and technological determinants of pro-environmental behavior has become essential. This study investigates the combined effects of artificial intelligence (AI) and religosity on green consumerism in the emerging market context of Bangladesh. Employing a quantitative research design, data were collected from Bangladeshi consumers and analyzed using PLS-SEM techniques in Smart PLS to evaluate the hypothesized relationships. The empirical findings reveal a statistically significant positive association between AI adoption and green purchase intention, indicating that AI technologies—such as personalized product recommendations, eco-labeling algorithms, and digital awareness campaigns—may serve as effective tools for fostering sustainable consumption. Furthermore, the results demonstrate that religiosity exerts a moderating influence, amplifying the impact of AI on consumers’ pro-environmental decision-making. This suggests that faith-based values not only support ecological responsibility but also reinforce the behavioral effectiveness of AI-led sustainability efforts. This research contributes to the evolving discourse on digital sustainability in ASEAN by presenting a culturally contextualized and technologically relevant framework for understanding green consumer behavior. The study offers practical implications for policymakers, marketers, and environmental advocates by recommending targeted AI-driven interventions and the integration of religious teachings on environmental stewardship within public awareness and educational initiatives. Future studies are encouraged to further investigate how digital tools and cultural norms interact to shape sustainable consumption patterns in faith-oriented societies.
Toward Islamic Wealth Management: Insights from Islamic Family Financial Socialization
This conceptual paper explores the role of Islamic family financial socialization in influencing effective Islamic wealth management, with a focus on the mediating effects of Islamic financial literacy and Islamic financial attitude. Drawing upon Family Financial Socialization Theory and Behavioural Finance Theory, this study proposes a framework in which Islamic family financial socialization influences individuals’ financial behaviour in a Shariah-compliant context. Specifically, the study model posits four key pathways: (1) Islamic family financial socialization enhances Islamic financial literacy, which in turn leads to improved Islamic wealth management practices; (2) Islamic family financial socialization fosters positive Islamic financial attitudes, which subsequently promote sound Islamic wealth management decisions; (3) Islamic financial attitude positively influences Islamic financial literacy, further contributing to effective Islamic wealth management; and (4) both Islamic financial literacy and Islamic financial attitude serve as mediators in the relationship between Islamic family financial socialization and Islamic wealth management, explaining how early familial influences form Shariah-compliant financial decision-making. By integrating these constructs, this paper aims to enhance understanding of how Islamic financial behaviour is developed and sustained. The proposed model offers insights for policymakers, educators, and financial institutions to strengthen Shariah-compliant wealth management through family-based financial socialization, Islamic financial literacy, and positive financial attitudes
From Experience to Endorsement: Determinants of Satisfaction and Intention to Recommend International Student Mobility
Studying abroad brings valuable experiences and benefits, not just for the students themselves, but also for the home and host countries. While these opportunities provide global exposure and help build human capital, many students still face hurdles. Challenges such as high living expenses, a lack of emotional and academic support, and difficulties adjusting to new cultures can impact their level of satisfaction and whether they would recommend the program to others. This study aims to examine the influence of physical (environment, cost, and personal safety) and social factors (emotional support, ethical conduct, and student–lecturer attachment) on Indonesian students’ satisfaction with international mobility programs, and how satisfaction impacts their intention to recommend these programs to others. A quantitative approach was employed, with data collected from 202 Indonesian students who had participated in international mobility programs in the last 4 years through purposive sampling. An online questionnaire, adapted from validated instruments, was distributed via digital platforms. Data were analyzed using Structural Equation Modelling (SEM). The results show that physical environment, emotional support, and student–lecturer attachment significantly contribute to student satisfaction. In contrast, cost, personal safety, and ethical conduct do not have a significant effect. Furthermore, student satisfaction positively influences their intention to recommend the mobility program. These results indicate that stakeholders should view students not only as beneficiaries but also as potential ambassadors. It is important to develop platforms for alumni to share their stories, mentor prospective applicants, or participate in outreach, which can help amplify the program’s impact.