B.M. Purwanto

Market Reactions of Mandatory Implementation of Corporate Social Responsibility: Indonesia Context

The previous research reports an inconsistent result on the relationship between corporate social responsibility (CSR) and firms financial performance. Corporations in Indonesia are now adopting and implementing CSR practices as required by the Government through Law 40/2007 paragraph 74. This paper investigates this issue by employing two studies (phases), qualitative and quantitative research. The first phase used secondary data from mass media reporting interconnected themes on CSR from January 2005 to December 2007, the result of which was analyzed using the content analysis method. The results of the first phase were then used to construct the hypothesis at the second phase. The second phase used secondary data from Indonesia capital market. The data was analyzed using the event study method. The results show that Indonesian firms undertaking voluntary CSR activities gain positive abnormal return when the announcement of mandatory CSR is released.

Business relationship framework in Indonesia: relationship marketing vs transaction cost

Purpose – This paper aims to explore business relationship framework between two companies. In this research, relationship marketing and transaction cost were used as frameworks to analyze business relationship of two different kinds of companies in Indonesia, oil company and hypermarket. Gronroos (1994) defines relationship marketing is establishing, maintaining and enhancing relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. This definition is a key to analyze the relationship of retailer and their supplier. In contrast, Williamson (1980) argued that relationship in business organization is based on their economic interest, and this approach is known as transaction cost approach. In this kind of relationship, business organizations consider cost and benefit of business relationship. Design/methodology/approach – The design of this study is triangulation. Two approaches we...

ATTITUDE AND PURCHASE INTENTION TOWARDS TEMPE PRODUCERS JOINING THE PROTESTS A Study in Central Java

The theory of attribution has been widely used in marketing studies. However, this theory contains some limitations as well. Using the context of protests of tempe producers, this study aims at minimizing the limitations by integrating the attribution theory with collective action theories, prosocial theories, and expectancy-value theories in explaining and predicting the behavior of product consumers and individuals/groups that joined the protests. To answer the research objectives, this study proposed a model integrating the attribution of perceived motives of tempe producers joining the, empathy towards tempe producers, attitude towards tempe producers, and subsequent purchasing intention. The results indicate that the proposed model is supported by the data. This implies that the integration of the attribution theory with collective action theories, prosocial theories, and expectancy-value theories can minimize the limitations with regard to the criticism in neglecting motivation in attribution processes and confounding between attribution processes and attributional