This research
aims to examine the relationship between business location decision and
business success. The case is Internet café business in Indonesia. This
research is addressed to answer these main questions: (1) what factors
underlie location decision for an Internet café business?; and (2) does
location decision determine success of Internet café business? A field
research is conducted to answer these questions.
Based on responses from 93 Internet cafés in three locations (i.e.
Yogyakarta, Surabaya, and Lombok), I find that location of business is
positively related to business success. More specifically, a regression
analysis unveils that availability of utilities, proximity to schools/
universities, and security affect business success in a positive direction,
while proximity to highways, being in commercial centre do in a negative
direction. The independent variables consisting of 17 locational factors
explain 23% of total variance.
The importance of each locational factor varies from a location to location,
but generally, security is the most important location factor in the
Internet café business, followed by proximity to customers, availability of
high quality ISP, availability of utilities, price of high quality ISP,
availability of business venue, proximity to schools/universities, and
availability of adequate parking area. In addition to local characteristics
of locational factors, the importance of locational factors also changes
over time.
I also find that location selection of Internet cafés is driven by
geographic concentration or agglomeration. Concentration of business that
target students (e.g. photocopying, computer rental, stationary shops, book
shops, student-cafes/canteens, computer and peripheral shops, phone kiosks,
and boarding house business) as their market attract Internet café owners to
choose the location.
In addition to geographical location, access speed to the Internet, comfort
of place, quality of services, and rental prices are believed as main
factors that affect business success. On the other hand, unfavourable
location is one of the severest obstacles in this business in addition to
high fixed expenses, unfavourable ISP, high competition (too many Internet
cafés) and inadequate market/customers.
Keywords: business location, business success, agglomeration,
Internet café, Indonesia.
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Determinants of Entrepreneurial Intention: The Case of Norwegian Students
This paper aims to identify determinants of entrepreneurial intentions among young people. The empirical basis is Norwegian students, while an objective is also to create a basis for comparative studies among different economic and cultural contexts. Independent variables in the study include demographic factors and individual background, personality traits, and contextual elements like access to capital and information. The individual perceptions of self-efficacy and instrumental readiness are the variables that affect entrepreneurial intentions most significantly. Age, gender and educational background have no statistically significant impact. Generally, the level of the entrepreneurial intentions among Norwegian students is relatively low, which may be explained by social status and economic remuneration of entrepreneurs compared with employees in the Norwegian context.
Keywords: entrepreneurial intentions, need for achievement, locus of control, self-efficacy, instrumental readiness, and Norwegian students.
Profil dan Motivasi Entrepreneur Wanita di Indonesia
(Profile and Motivation of Woman Entrepreneur in Indonesia)
Penelitian
ini bertujuan melihat profil dan motivasi entrepreneur wanita Indonesia.
Sampel penelitian ini sejumlah 62 entrepreneur dan 96 karyawan wanita yang
tersebar di lima Kabupaten atau Kota di Propinsi Daerah Istimewa Yogyakarta.
Empat kebutuhan psikologis, kebutuhan akan prestasi, kebutuhan akan
afiliasi, kebutuhan akan otonomi, dan kebutuhan akan dominasi diukur dalam
penelitian ini. Pembandingan tingkat kebutuhan antara entrepeneur dan
karyawan wanita menunjukkan bahwa entrepreneur dimotivasi oleh tingkat
kebutuhan akan afiliasi dan dominasi yang lebih tinggi. Tingkat kebutuhan
akan prestasi dan otonomi kedua kelompok ini relatif sama.
Penelitian ini juga menunjukkan bahwa tingkat pendidikan mempengaruhi secara
signifikan tingkat kebutuhan akan prestasi dan afiliasi, sedang umur
mempengaruhi tingkat kebutuhan akan otonomi dan dominasi.
Keywords: entrepreneur wanita, motivasi, kebutuhan akan prestasi,
kebutuhan akan afiliasi, kebutuhan akan otonomi, kebutuhan akan dominasi.
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Determinant of Entrepreneurial Intentions Among Norwegian Students
This study is aimed to identify determinants of the entrepreneurial intentions among Norwegian students. Four independent variables are included in the model to predict the entrepreneurial intentions. They are need for achievement, locus of control, self-efficacy, and instrumental readiness. Among these variables, self-efficacy and instrumental readiness affect the entrepreneurial intentions significantly. Additionally, need for achievement has no significant effect to the entrepreneurial intentions although it affects the entrepreneurial intentions in the expected direction. Surprisingly, locus of control insignificantly affects the entrepreneurial intentions in a negative direction. These four independent variables can explain only 22.5% of total variance of the entrepreneurial intentions.
Furthermore, demographic variables (age, gender, educational background, and previous employment experience) statistically have no significant effect to the entrepreneurial intentions. Adding these demographic variables increase the percentage of explained variance to 25.1% (an improvement of roughly 2.6%). Generally, the degree of the entrepreneurial intentions among Norwegian students is not so high with mean of 3.041 (out of 7) and standard deviation of 1.141. This can be interpreted that Norwegian students tend to prefer to work in a company rather than to be an entrepreneur.
Keywords: entrepreneurial intentions, need for achievement, locus of control, self-efficacy, instrumental readiness, and Norwegian students.
Exploring College Student's Entrepreneurial Drives in Yogyakarta, Indonesia, Toward Total Quality of Entrepreneurship Management
The purpose of this study was to determine college students’ entrepreneurial drives toward Total Quality of Entrepreneurship Management (TQEM). This research was conducted to provide smart information to the management of the Faculty of Economics for developing more challenging programs, establishing a global network, and designing long-term relationships.
The sample consisted of 441 college students enrolled in the Faculty of
Economics at thirteen higher education institutions (two public universities
and eleven private universities) in Yogyakarta, Indonesia during the first
semester 2000/2001. Student participants completed the Carland
Entrepreneurship Index (CEI)and Keirsey Temperament Sorter (KTS)
instruments. The CEI was designed to identify the strength of an
individual’s entrepreneurial drive rather than to attempt to identify an
entrepreneur. The KTS assessed student participant attitudes toward
exploring the entrepreneurial drive on four major cognitive temperaments
which can be described in MBTI terms as: SP or Sensation-Perceptive; SJ or
Sensation-Judging; NF or Intuitive-Feeling; and NT or Intuitive-Thinking.
This paper compared the cognitive temperament and entrepreneurial drives of
441 Indonesian (studying in Yogyakarta, 2000/2001) to 70 Indonesian
(studying in the US 1993) to 83 Asian and to 151 American students. The
Americans and Asians have a dramatically higher drive
which suggests that Indonesia needs to expand the role of
entrepreneurship education to achieve a better economic atmosphere than
today’s national multi-crisis and success
associated with Total Quality of Entrepreneurship Management (TQEM) as an
integral part of its Total Reformation Program.
Keywords: Total Quality of Entrepreneurship Management, Carland
Entrepreneurship Index, Keirsey Temperament Sorter, entrepreneurial drives.
Artificial Neural Network Model for Pricing Initial Public Offerings
Artificial
Neural Networks (ANNs), in recent time, have received considerable attention
and been applied in various fields. Using ANN for prediction and function
approximation are some examples. Research literature has shown considerable
interest in the developing of ANNs for improving the quality of decisions in
financial application. In this research, ANN is
developed for pricing of Initial Public Offerings (IPOs). Previous empirical
studies provide consistent evidence of inefficiency in the pricing of new
issues. This research hypothesizes that inefficiency in the pricing of new
issues also takes place at Jakarta Stock Exchange (JSX). The pricing performance and
the economic benefits of neural network models are evaluated.
Empirical results using data during 1991-1996 show that the
inefficiency in the pricing of new issues (underpricing) is also a case at JSX,
with average underpricing of 7,98 percent. This research
also finds that neural network model developed
for this financial application has not improved
the accuracy of pricing of IPOs.
Keywords: artificial neural network, initial public offering,
financial prediction, Jakarta Stock Exchange, underpricing.
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