A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains

PurposeThis paper aims to investigate the adoption barriers of Industry 4.0 in the Indonesian manufacturing supply chains.Design/methodology/approachThe mixed method was deployed to validate the findings. First, the qualitative study was conducted based on the interviews. Then, the companies were approached using filter questions on the involvement in adopting industry 4.0 and its impact on the supply chain.FindingsBased on the qualitative study, nine main barriers were found in the thematic analysis. Thus, to get a consensus on the barriers in the industry, the barrier indicators were tested using a structural equation model retrieved from 173 small and medium Indonesian manufacturing firms. Results indicate that five main barriers (e.g. unclear Industry 4.0 policy, higher-risk investment, insecure data sharing, lack of expertise and lack of incentive) are confirmed as the adoption barriers.Practical implicationsThe successful adoption of supply chain integration with Industry 4.0 technology can strengthen the manufacturing sector and competitiveness. Therefore, this study can be a complimentary assessment to evaluate the Indonesia Industry 4.0 Readiness Index (INDI 4.0) and the effectiveness of the government support program.Originality/valueThe results can be used as the framework to foresee the successful implementation of smart manufacturing supply chain management and its integration. Therefore, the authors proposed the framework to foresee the successful implementation of smart manufacturing, supply chain management and integration.

Analysis of Countercyclical Policy Factors in The Era of the COVID-19 Pandemic in Financial Statement Fraud Detection of Banking Companies in Indonesia

This research is motivated by the application of countercyclical policy, such as credit restructuring, by banking companies during the COVID-19 pandemic. The credit restructuring that the banks carried out had the potential to affect their financial performance and increase the tendency of financial statement manipulations. The purpose of this study is to review the significance of the changes in banks' financial performance before and after the implementation of the credit restructuring, as well as its relationship to the potential for fraudulent financial statements. The population in this study was the financial sector companies listed on the Indonesia Stock Exchange in 2020, a total of 105 companies. The 96 samples consisted of 32 banking companies in the commercial banking category that have implemented countercyclical policies in the form of credit restructuring during the COVID-19 pandemic. The research method was a quantitative method using secondary data obtained from the official website of the Indonesia Stock Exchange and the official websites of the related companies. The results showed no significant change in the banks' financial performance. Although the credit restructuring had an impact, such as a decrease in their profits, it did not encourage them to manipulate their financial statements.