Volume 09 Issue 11

OIDA International Journal of Sustainable Development
Open access peer-reviewed journal 

Innovations in green chemistry towards sustainable development
Sumathi Ganasen a, V.Sharmilah Velaichamy b
a,b School of Pre-University Studies, Vinayaka Missions International University College (VMIUC),
Pulau Pinang, Malaysia.

Volume 09, Issue 11, Pg. 11-14, 2016.

Abstract: In our current globalized world, green chemistry is becoming the strength leading towards sustainable development. It is evident that that many academic institutions and industries recognize the importance of innovations in green chemistry. It is imperative to teach the value of green chemistry to future generations. Chemistry and its application plays vital role in many industries such as medicine. Green chemistry is tool for innovation which includes business, education and economy to build a sustainable future. Hence, we should now concentrate on innovation in green chemistry to reduce the environmental damage and eliminate the use and generation of hazardous substances. There are various innovations in green chemistry such as renewable feed stocks, use of catalysts in experiments, proper disposal of waste, design of safer chemicals and auxiliaries, design for degradation and reactions with more efficient syntheses and high efficiency formulation. This conceptual paper addressing innovations in green chemistry and steps need to be taken by various industries to incorporate green chemistry for a sustainable development. 

Keywords:  Green chemistry, Innovations, Design of safer chemicals, High efficiency formulations, sustainable development

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 Factors influencing return intentions of Malaysia’s professional diaspora
Quah Chun Hoo a, Siti Rohaida M. Zainal b, Guok Eng Chai c
a Vinayaka Missions International University College, Penang, Malaysia.
b School of Management, Universiti Sains Malaysia, Penang, Malaysia.
c GEC Management Consultant, Malaysia.

Volume 09, Issue 11, Pg. 15-39, 2016.

Abstract: The purpose of this research paper is to examine: (i) the pattern of the independent and dependent variables as specified in  the theoretical model of return intentions of Malaysia’s  professional diaspora; (ii) whether are there any significant differences in return intentions in terms of ethnicity (bumiputra vs.non- bumiputra) and different generations of Malaysia’s diaspora (generation Y vs.non-generation Y); and (iii) whether are  there any significant correlations of return intentions of Malaysia’s professional diaspora.  Data was collected via online questionnaire using “survey monkey” over a period of two months.  A total of 168 skilled professionals participated in the online survey based on “snowball sampling”.  The survey findings indicate that Malaysia’s generation Y skilled professional diaspora are more willing to return home to work as compared to their non-generation Y counterparts. In addition, the correlation results suggest that the critical factors that can motivate Malaysia’s skilled professionals to return home to work include better employment conditions, enhanced quality of life, employment or job opportunities, safety and security as well as political stability.  Based on the survey results, some of the implications and recommendations for ensuring the success of the brain gain programme in Malaysia are discussed.

Keywords: brain drain, brain gain, diaspora networks, push & pull factors, Talent Corporation and Returning Experts Programme (REP)

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Performance measurement of sustainable supply chain management (SSCM) in newly established cocoa-processing company in Southeast Sulawesi, Indonesia
Silma Luthfika Harnanda a
a School of Mechanical Engineering, University of Birmingham, Birmingham, United Kingdom

Volume 09, Issue 11, Pg. 40-48, 2016.

Abstract: This research aimed to determine the sustainability of supply chain management in Cocoa-Processing company in Southeast Sulawesi, Indonesia. Southeast Sulawesi is one of the biggest produces in Indonesia, and this newly established company planned to utilise this valuable resources, cocoa plantation. The company produces intermediate products of cocoa: liquor, butter, cake, and powder. Even the company is in the early stages of business, it is trying to apply sustainability to the supply chain. The company see this necessary as a competitive advantage in the industry. To evaluate the applied sustainable supply chain, a performance measurement is being done to see how well sustainable supply chain run is. A Sustainability Balanced Scorecard (SBSC) is used to measure. Key Performance Indicators (KPI) are designed from brainstorming with the company and elaboration from company’s vision and mission. The structure of SBSC for SSCM was the modification of initial balanced scorecard by adding Suppliers perspective and Non-market perspective. All KPIs is then pair-compared to get the prioritised weighted score using Analytical Hierarchy Process (AHP). KPI scores are calculated by using “Target/ Actual” scoring system. The results showed that the company’s SSCM is not well performed. Over half of the KPIs are under performance. Continues improvement is needed to increase company’s SSCM performance and keep the sustainability of cocoa production.

Keywords: Cocoa, KPI, SBSC, SSCM

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Analysis of land and building tax’s inc entive to building cultural preservation In yogyakarta city, Indonesia
Aniek Juliarini a,  Jamila Lestyowati b
a Finance Education and Training Agency, Ministry of Finance, Government of Indonesia

Volume 09, Issue 11, Pg. 49-60, 2016.

Abstract : Indonesia is a country well-known for its tourist paradise. One notable destination is the city of Yogyakarta, the second tourist destination in Indonesia after Bali. Yogyakarta is known as a special region in Indonesia referred to as a special region of Yogyakarta. Yogyakarta as one of the world heritage city, has hundreds of historic buildings in the area ofcultural heritage. UNESCO appraise Yogyakarta as a city that has agood effort towards the preservation of cultural heritage objects. On the other hand, the local Government of Yogyakarta gives its great attention on improving the development of the city. There is an understanding  that the development of the Yogyakarta will have big impact on its position as a city of culture. One of the support provided by the Yogyakarta City Government to encourage owners of cultural heritage preserve is to provide incentives of Land and Building Tax toward Heritage Buildings/ Cultural Heritage Building.  Land and Building tax is one of local revenue area in the local budget. Land and Building Tax’s incentive aims to support the owner / manager of Heritage Buildings/ Cultural Heritage Building  in his tax payments. The amount of incentive funds can be budgeted up to 1% of the revenue target of Land and Building Tax in the current fiscal year. This study analyzes the tax incentive in Yogyakarta City. The analytical method used is descriptive qualitative analysis. The analysis conducted on the amountof the incentives and evaluate the magnitude of such incentives. Data obtained from the archives of the Department of Regional Tax and Financial Management of Yogyakarta City,  Financial Statements and official website of the City Government of Yogyakarta,as well as other related websites. The amount of the incentive will compare with the tax target in the regional budget of the year, then analyzed its effectiveness. In the period 2011-2015, the tax incentives averaged 75.78% of the target or Rp316.494.000, – per year. According to the source, unsuccessful 100% realization of the target incentive tax is due to rounding in the calculation process. In nominal terms, on some objects, the value of the incentive is quite small. Actually there is a chance to increase the realization of the tax’s incentive which is equal to the existing gap, i.e an average of 24.22% per annum of  the target incentive that is Rp100.522.554,00. It required a new formula or new policies, for example to revise the regulationso the tax incentives could bemore than 1% against to the Land and Building Tax target.

Keywords: Herritage building, culture herritage building, Land and Building Tax, tax incentive,  preservation of cultural heritage objects

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Analysis of Food and Beverage Industry in Indonesia using Structure, Conduct and Performance (SCP) Paradigm
Yudhistira Permana a, Dini Hariyanti b
a,b Economic Development Program, Trisakti University, Indonesia

Volume 09, Issue 11, Pg. 61-72, 2016.

Abstract: One of the “Nawacita Programs” Indonesian government is to realize economic independence by moving the strategic sectors of the domestic economy and sustainability resilience of the food and beverage industry. This paper attempt to illuminate of Indonesia’s food and beverage industry using structure, conduct and peforrmance  (SCP) paradigm. 

We employed  Concentration Ratios  (CR4),  Minimum Efficiency of Scale (MES), Efficiency – X (XEF) and  Output Growth to Price Cost Margin (PCM) with analysis data panel. We used value added and wages data on ten food and beverage industry where listed in Indonesia’s Stock Effect on year 2010 until 2015.

The structure of food and beverage industry suggested that an oligopoly  with high  concentration has been found, albeit declined slightly over period 2010 – 2015. It is also with the Minimum Efficiency of Scale (MES) showed a decrease barriers to entry. It’s mean the food and beverage industry in Indonesia not competitive. 

Based on analysis market performance; the highest value of Price Cost Margin during the past 15 years for food and beverage industry in Indonesia’s are the PT. Multi Bintang Indonesia Tbk, PT. Prashida Aneka Niaga Tbk and PT. Light Wilmar Indonesia Tbk with the output value is higher than the other companies.

In  S-C-P theory, if CR4, MES and Growth decreased then the Efficiency-X will increase, it’s causing Price Cost Margin increased. Variable Price Cost Margin (PCM) is positively and significantly influenced by Efficiency-X (XEF). While variable CR4 and MES as a proxy of market structure and, Growth as a proxy on performance  the food and beverage industry in Indonesia does not affect to the PCM. This means that food and beverage industry in Indonesia is not influential as a competitive.

Keywords: SCP, PCM, Oligopoly, Industry

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Innovation Strategy in Sustaining Small Businesses: Study of Songket Handycraft Home Industries in Palembang – Indonesia
Sarfilianty Anggiani
Department of Management, Faculty of Economic, Trisakti University, Jakarta, Indonesia.

Volume 09, Issue 11, Pg. 73-82, 2016.

Abstract: Dynamic changing environment is a challenge condition to home industry businesses as small businesses. Some of the crucial challenges facing the industries are changing in the external environment such as competition, demand and technology. Songket Palembang woven by hand with threads of gold and silver and are generally worn on formal occasion. The competitors are from songket handicrafts that is also made in Palembang and also from other area such as Padang and Malaysia, Brunei as well. To sustain the business, one of the strategies that can be used is the innovation strategy. Innovativeness has been recognized as a very important factor in the industrial competition. 

The study objective is to observe and explain how business decision as innovation strategy can promote the performance and the sustainability of songket handicraft home industries as small businesses. The study is developed by the characteristics of the owners as leader or leader itself, and also the innovation strategy that applied to the business. The sampling method in this study was using purposive sampling. The respondents are the songket handicraft home industry owners or leaders that have been doing the business more than ten years and have at least one more additional branch in other city in Indonesia. The questionnaires based survey was conducted to gather data from the respondents. The questionnaires were informed by previous studies on characteristic owners or leaders of small businesses, characteristics of small businesses, owners or leaders orientation of innovation, types of innovation, sources of innovation and level of innovation. The questionnaires were gathered by hand directly to respondents. A Total of 46 usable responses were received and analyzed by descriptive statistic using the SPSS.  

The result of the study that the owners or leaders that have been successful in sustaining the business are characterize as the middle ages (between 40 – 55 years old) and more than 10 years are doing the business, and most of them are continuing their family businesses. The overall effort of innovation strategy is very important factor in sustaining the business. The innovation strategy involved songket handicraft home industries as follows: (1) The owners or leaders orientation to support innovation is a mayor successful factor to sustain the business; (2) Type of innovation that most used in the business is the product innovation; (3) Source of innovation that involved to the business is external sources, especially the competitors; (4) Level of innovation that achieved in the business is incremental innovation that focus on changing in raw material and design.  Furthermore, the innovation strategy should start from the effort of leader orientation of innovation. The strategy must be followed and applied by the employees in order to develop future innovative products to compete with competitors. It is proven that innovation is important strategy in improving the small business performance to sustain in the market. 

Originality/value – Although the songket handicraft home industries take the important role in social and economy in Palembang – Indonesia, iinnovation in handicraft sector has received little previous attention from researchers. This study makes an important contribution by finding the role of owners or leaders orientation and type of innovation as the sustaining strategy. Moreover, it encourages and develops the understanding of the leader from other handicraft industries to improve innovation strategies for their business. 

Keywords: Home industries, Innovation strategy, leaders orientation, sustainability, type of innovation

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