Purpose With an attempt to give a deeper explanation regarding the manifestation of socially and environmentally responsible cultures among Indonesian natural resources industry, this paper aims to highlight the empirical confirmation on the correlation of corporate social responsibility (CSR), corporate financial performance (CFP) and risk. Likewise, corporate risk’s role as a mediating variable in the indirect effect of CSR on CFP is also examined. Design/methodology/approach Kinder, Lydenberg and Domini’s (KLD) measurement approach is used as a basis to assess social responsibility activities as it gives more social rating transparency. CFP captures both accounting- and market-based measurements, whereas volatility of stock return is adopted as a proxy of firm risk. Partial least squares analysis is conducted on 40 Indonesian listed firms in natural resources sector, with observation years from 2008 to 2016. Findings It is revealed that CSR positively affects CFP, although the correlation is stronger in the long run. Significant negative influence to risk is also discovered. However, risk has a significant adverse correlation with CFP when two years’ lagged value is used. Hence, CSR affects CFP through risk in the long-term, both directly and indirectly. Practical implications The empirical result suggests that CSR serves as a tool in managing the risk of enterprises and performance, especially in the long-term. Accordingly, firms should incorporate CSR as a strategic investment and manage a strong relationship with stakeholders. Originality/value This report expands further prior works and contributes to CSR and financial management literature by discovering the true nature of CSR effects as an investment in the future. This is the first study which tests and proves that CSR in Indonesian natural resources industry plays a significant role as a strategic risk management instrument that leads to a sustainable and long-lasting financial performance.

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Penelitian ini bertujuan untuk mengetahui pengaruh Leadership Style  terhadap Learning Organization dengan Management Control System  dan Organization Commitment sebagai variabel intervening. Penelitian ini dilakukan dengan mensurvei para pejabat struktural dalam sebuah Perguruan Tinggi. Data dianalisis  menggunakan software WarpPLS. Hasil penelitian ini menunjukkan bahwa Leadership Style, Management Control System, dan Organization Commitment bersama-sama mempengaruhi Learning Organization. Hasil penelitian ini juga mengungkapkan bahwa Sistem Pengendalian Manajemen merupakan faktor penting yang menjadi alat pimpinan Perguruan Tinggi menciptakan Learning Organization.  Tetapi, bagaimanapun juga, Leadership Style dalam sebuah Perguruan Tinggi tetap merupakan faktor utama yang mempengaruhi  penciptaan Learning Organization. Hasil penelitian ini menunjukkan bahwa penentuan siapa pimpinan Perguruan Tinggi sangat menentukan sejauh mana Perguruan Tinggi akan menjadi Learning Organization karena pada intinya Perguruan Tinggi sedang belajar kepada masyarakat.

Employee engagement is essential to the Service-Profit-Chain concept as the factor to produce high quality service that would meet or exceed customer expectations. However, despite its suggested advantages, limited knowledge is known about what causes employee engagement. This study attempts to understand the Service-Profit-Chain concept more comprehensively, by encompassing transformational leadership as the preceding factor to employee engagement. It aimed to examine the role of transformational leadership in shaping employee engagement and service quality which lead to financial performance. The sample groups taken were among the star-rated hotels located in Surabaya, Indonesia. Each hotel was represented by three groups namely: hotel managers, staff, and hotel customers. The Partial Least Square-SEM method was applied to evaluate the hypothesized model. The results revealed that the effect of transformational leadership on financial performance is mediated by employee engagement. However, service quality cannot mediate the effect of transformational leadership on financial performance. It is interesting to note that Service-Profit-Chain has some limitations in practice, depending on the organization’s strategy. This study is among a few attempts to contribute to a better understanding of the Service-Profit-Chain concept application, with transformational leadership as the factor preceding employee engagement specifically in the hotel industry. It founds that the application of Service-Profit-Chain concept in the hotels have some constraints related to the business strategy that hotels select to penetrate the market.

This paper aims to explore the relationship between information technology (IT) capabilities and competitive advantage, with organizational agility as a mediator, in the case of micro, small, and medium enterprises engaged in the fashion industry in Indonesia. Data were collected by distributing questionnaires to 180 small to medium-sized enterprises in Indonesia’s fashion industry that have used e-commerce platforms to conduct their business activities. The data were analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.0 software. The study suggests that IT capabilities significantly influence organizational agility and competitive advantage. Therefore, the study can serve as a basis for the Indonesian government to promote digitalization and the use of e-commerce among micro, small, and medium enterprise owners in order to face changes in the market and remain competitive. It can also be beneficial for business owners and managers that aim to increase awareness of the importance of technology in their business operations. The work of this paper deepens the understanding of the relationship between IT capabilities, organizational agility, and competitive advantage, which are becoming increasingly important in the current digitalized and ever-changing business environment. It enriches the literature about micro, small and medium enterprise that is related to their IT capabilities level, how they use it to handle changes and factors that contributes in obtaining competitive advantage.