Article Sidebar

Download
PDF
Statistic
Read Counter : 199 Download : 159

Main Article Content

Abstract

The food and beverage industry is a vital contributor to Indonesia's economy, yet faces challenges in optimizing performance. This study investigates the impact of operating capacity, agency costs, and intellectual capital on firm performance within this sector. Analyzing financial data from 12 out of 26 listed companies spanning 2018 to 2022, with convenience sampling, panel data regression in EViews 12 reveals significant findings. Higher operating capacity positively influences revenue generation, marketing efficacy, and customer satisfaction. Agency costs serve as incentives for managerial alignment with shareholders' interests, enhancing governance and transparency practices. Intellectual capital fosters innovation, operational efficiency, and brand reputation, driving firm performance. The study underscores the strategic importance of these factors in managing firms within the food and beverage industry. For practitioners, insights gleaned from this research offer guidance in formulating effective strategies to enhance operational capacity, manage agency costs, and bolster intellectual capital. Moreover, investors gain valuable insights into assessing investment opportunities in this sector. Policymakers can utilize these findings to formulate policies conducive to fostering growth and sustainability within the food and beverage industry. By addressing these key determinants, firms can bolster their competitive edge and achieve sustained success in the dynamic landscape of the food and beverage sector in Indonesia.

Keywords

Agency Cost Firm Performance Operating Capacity Intellectual Capital

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Michael, & Widjaja, W. (2024). Boosting Firm Performance: Insights from the Food & Beverage Sector’s Key Drivers. Ilomata International Journal of Tax and Accounting, 5(2), 338-352. https://doi.org/10.61194/ijtc.v5i2.1105

References

  1. Alfadhl, M. M. A. F., & Alabdullah, T. T. Y. (2013). Agency cost and management behavior: The role of performance as a moderator. International Journal of Science and Research (IJSR) ISSN, 5. https://doi.org/10.21275/NOV153199
  2. Andersson, T. D. (1995). Capacity Planning in the Hospitality Industry. The Journal of Hospitality Financial Management, 4(1), 133–134. https://doi.org/10.1080/10913211.1995.10653682
  3. Arcese, G., Flammini, S., Azevedo, J. M., & Papetti, P. (2015). Open innovation in the food and beverage industry: green supply chain and green innovation. In Int. J. Environment and Health (Vol. 7, Issue 4).
  4. Asikin, M., Daryanto, A., Machfud, & Dwijosumono, S. (2019). Technical efficiency analysis in Indonesian fishery processing industry: A case of fishery canned product firms. MIX: JURNAL ILMIAH MANAJEMEN, 9(1), 53–71. https://doi.org/10.22441/mix.2019.v9i1.004
  5. Bish, E. K., & Suwandechochai, R. (2010). Optimal capacity for substitutable products under operational postponement. European Journal of Operational Research, 207(2), 775–783. https://doi.org/10.1016/j.ejor.2010.06.010
  6. Blanco-Mazagatos, V., De Quevedo-Puente, E., & Castrillo, L. A. (2007). The trade-off between financial resources and agency costs in the family business: An exploratory study. Family Business Review, XX(3), 199–213.
  7. Boateng, R. N., Tawiah, V., & Tackie, G. (2022). Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standard adoption evidence from an emerging capital market. International Journal of Accounting and Information Management, 30(2), 252–276. https://doi.org/10.1108/IJAIM-10-2021-0220
  8. Boland, M. A., Golden, B. B., & Tsoodle, L. J. (2008). Agency theory issues in the food processing industry. Journal of Agricultural and Applied Economics, 40(2), 623–634. https://doi.org/10.1017/s1074070800023890
  9. Cadot, J. (2015). Agency costs of vertical integration-the case of family firms, investor-owned firms and cooperatives in the French wine industry. Agricultural Economics (United Kingdom), 46(2), 187–194. https://doi.org/10.1111/agec.12150
  10. Chen, Y. hua, He, Q., & Paudel, K. P. (2018). Quality competition and reputation of restaurants: The effects of capacity constraints. Economic Research-Ekonomska Istrazivanja , 31(1), 102–118. https://doi.org/10.1080/1331677X.2017.1421996
  11. Chowdhury, M. T., Sarkar, A., Paul, S. K., & Moktadir, M. A. (2020). A case study on strategies to deal with the impacts of COVID-19 pandemic in the food and beverage industry. Operations Management Research. https://doi.org/10.1007/s12063-020-00166-9
  12. Corbetta, G., & Salvato, C. (2004). Self-serving or self-actualizing? Models of man and agency costs in different types of family firms: A commentary on "Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence." Entrepreneurship Theory and Practice, 355–362.
  13. Dalton, D. R., Hitt, M. A., Trevis Certo, S., & Dalton, C. M. (2007). The fundamental agency problem and its mitigation: Independence, equity, and the market for corporate control. The Academy of Management Annals, 1–62.
  14. Dekkers, R., & Kanapathy, K. (2012). Practices for strategic capacity management in Malaysian manufacturing firms. Procedia - Social and Behavioral Sciences, 57, 466–476. https://doi.org/10.1016/j.sbspro.2012.09.1213
  15. Ferris, S. P., & Yan, X. (Sterling). (2009). Agency costs, governance, and organizational forms: Evidence from the mutual fund industry. Journal of Banking and Finance, 33(4), 619–626. https://doi.org/10.1016/j.jbankfin.2008.12.003
  16. Gopalakrishna-Remani, V., Cater III, J. J., & Massey, J. J. (2016). Restaurant operations at the Rose Capital Inn: a case study exercise. The CASE Journal, 12(1), 104–121. https://doi.org/10.1108/tcj-11-2014-0063
  17. Grashuis, J. (2020). The agency cost of ownership and governance adaptations in farm producer organizations. Agricultural Finance Review, 80(2), 200–211. https://doi.org/10.1108/AFR-07-2019-0079
  18. Gujarati, D. N., & Porter, D. C. (2008). Basic Econometrics (N. Fox, Ed.; 5th ed., Vol. 5). McGraw-Hill.
  19. Hamdani, N. A., Djuanta, K., & Putra, P. D. (2020). Pengaruh current ratio dan total asset turnover terhadap perubahan laba pada perusahaan manufaktur yang terdaftar di BEI. Jurnal Wacana Ekonomi, 20(1), 17–25. www.jurnal.uniga.ac.id
  20. Handiwibowo, G. A., Nadlifatin, R., Gita, W. B., & Noer, L. R. (2021). The contribution of absorptive capacities to new innovative product development performance: A conceptual framework. International Journal of Mechanical Engineering Technologies and Applications, 11, 73–77.
  21. Haugen, R. A., & Senbet, L. W. (1981). Resolving the agency problems of external capital through options. The Journal of Finance, 36(3), 629–647. https://doi.org/10.1111/j.1540-6261.1981.tb00649.x
  22. Hsu, I.-C., & Sabherwal, R. (2012). Relationship between intellectual capital and knowledge management: An empirical investigation. Decision Sciences Journal, 43(3), 489–524.
  23. Hwang, J., Gao, L., & Jang, W. (2010). Joint demand and capacity management in a restaurant system. European Journal of Operational Research, 207(1), 465–472. https://doi.org/10.1016/j.ejor.2010.04.001
  24. Igor, A., Iana, S., & Dinara, Y. (2019). Intellectual capital in competitiveness development: Qualitative research of retail companies. Advances in Economics, Business and Management Research, 104, 43–51.
  25. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.
  26. Jonathan, R. LCA., & Militina, T. (2019). Pengaruh aktivitas perusahaan terhadap profitabilitas dan peluang investasi pada perusahaan sektor industri barang konsumsi yang go-public di indonesia. Jurnal Bisnis Dan Manajemen, 13(2), 87–96. https://jurnal.unej.ac.id/index.php/BISMA
  27. Kamaliah. (2020). Disclosure of corporate social responsibility (CSR) and its implications on company value as a result of the impact of corporate governance and profitability. International Journal of Law and Management, 62(4), 339–354. https://doi.org/10.1108/IJLMA-08-2017-0197
  28. Kanchana, N., & Mohan, R. R. R. (2017). A review of empirical studies in intellectual capital and firm performance. Indian Journal of Commerce & Management Studies, VIII(1), 52–58. https://doi.org/10.18843/ijcms/v8i1/08
  29. Kartikasari, M., & Sukarno, G. (2023). Intellectual capital analysis of employee performance in the culinary industry PT Sinergitas Indonesia Muda (Suweger Indonesia). Jurnal Ekonomi Dan Bisnis Digital, 2(3), 749–762. https://doi.org/10.55927/ministal.v2i3.4807
  30. Khuyen, N. T. V. (2021). Impact of agency costs on business performance of Vietnam listed food and beverage companies. International Conference on Emerging Challenges: Business Transformation and Circular Economy, 89–94.
  31. Kim, A., Dalbor, M. C., & Feinstein, A. H. (2007). An examination of cost management behavior in small restaurant firms. International Journal of Hospitality Management, 26(2), 435–452. https://doi.org/10.1016/j.ijhm.2006.09.002
  32. Kurfi, S. A., Udin, N. M., & Bahamman, S. M. (2017). The impact of intellectual capital on the financial performance of listed Nigerian food products companies. Journal of Accounting and Taxation, 9(11), 147–160. https://doi.org/10.5897/jat2017.0246
  33. Li, S. (2020). A Review of the Relationship between Agency Cost and Corporate Investment Efficiency. American Journal of Industrial and Business Management, 10(04), 734–748. https://doi.org/10.4236/ajibm.2020.104050
  34. Lim, D. (1977). Actual, desired and full levels of capital utilisation in Malaysian manufacturing. The Journal of Development Studies, 14(1), 53–62. https://doi.org/10.1080/00220387708421661
  35. Luo, X. (2010). Agency costs on the company's financial management. International Conference on Future Information Technology and Management Engineering, 280–283.
  36. Ma, J., Webb, T., & Schwartz, Z. (2021). A blended model of restaurant deliveries, dine-in demand and capacity constraints. International Journal of Hospitality Management, 96. https://doi.org/10.1016/j.ijhm.2021.102981
  37. Mohan, B., Buell, R. W., & John, L. K. (2020). Lifting the veil: The benefits of cost transparency. Marketing Science, 39(6), 1105–1121. https://doi.org/10.1287/mksc.2019.1200
  38. Nurbismi, N., & Gunawan, E. (2019). Peran Kepuasan Konsumen Sebagai Pemediasi Praktek Kualitas dan Kinerja Bisnis UMKM di Kota Banda Aceh. J-MAS (Jurnal Manajemen Dan Sains), 4(2), 266. https://doi.org/10.33087/jmas.v4i2.107
  39. Ratmayanti, S. N. G., & Suaryana, I. G. N. A. (2021). Kinerja keuangan dan efisiensi operasional perusahaan proper peringkat lebih dari taat dalam pengelolaan lingkungan hidup. E-Jurnal Akuntansi, 31(1), 47. https://doi.org/10.24843/eja.2021.v31.i01.p04
  40. Reynolds, D., & Biel, D. (2007). Incorporating satisfaction measures into a restaurant productivity index. International Journal of Hospitality Management, 26(2), 352–361. https://doi.org/10.1016/j.ijhm.2006.01.003
  41. Schulze, W. S., Lubatkin, M. H., Dino, R. N., & Buchholtz, A. K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12(2), 99–116. https://doi.org/10.1287/orsc.12.2.99.10114
  42. Sharma, P. (2018). Enterprise value and intellectual capital: Study of BSE 500 firms. Accounting and Finance Research, 7(2), 123–133. https://doi.org/10.5430/afr.v7n2p123
  43. Soni, Y., & Gupta, R. C. (2020). Optimization in logistics for supply chain management of an automobile industry using Fuzzy DEMATEL matrix method. Journal of Sustainable Development of Transport and Logistics, 5(2), 29–36. https://doi.org/10.14254/jsdtl.2020.5-2.3
  44. Tsai, C. H., & Mutuc, E. B. (2020). Evidence in Asian food industry: Intellectual capital, corporate financial performance, and corporate social responsibility. International Journal of Environmental Research and Public Health, 17(2). https://doi.org/10.3390/ijerph17020663
  45. Umam, D. C., & Halimah, I. (2021). The influence of institutional ownership, independent commissioners, dividend policy, debt policy, and firm size on firm value. Priviet Social Sciences Journal, 1(2), 20–28.
  46. Wardani, D. K., Widarno, B., & Kristianto, D. (2019). Pengaruh intellectual capital terhadap profitabilitas, produktivitas, dan nilai perusahaan pada perusahaan manufaktur sektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi Dan Sistem Teknologi Informasi, 15(3), 311–318.
  47. Xiong, Y., Ke, J., & Mo, J. (2015). Relationship analysis between profitability and capital structure of the food industry listed companies. Advance Journal of Food Science and Technology, 9(2), 150–153. https://doi.org/10.19026/ajfst.9.1951
  48. Xu, X. L., Chen, H. H., & Zhang, R. R. (2020). The impact of intellectual capital efficiency on corporate sustainable growth-evidence from smart agriculture in China. Agriculture (Switzerland), 10(6), 1–15. https://doi.org/10.3390/agriculture10060199
  49. Yanti, U., & Munir, A. (2021). The effect of capital structure on profitability food and beverage sub sector manufacturing companies listed on the Indonesia Stock Exchange, 2018-2021. Journal of Management and Technology, 1(2), 28–33.
  50. Yeap, C. A. (2011). Capacity use in multi-unit firms: Evidence for efficiency gains or strategic competition in the US restaurant industry? Applied Economics, 43(22), 2953–2968. https://doi.org/10.1080/00036840903299797
  51. Zhang, X. B., Duc, T. P., Burgos Mutuc, E., & Tsai, F. S. (2021). Intellectual Capital and Financial Performance: Comparison With Financial and Pharmaceutical Industries in Vietnam. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.595615
  52. Zhao, M., & Stank, T. P. (2003). Interactions between operational and relational capabilities in fast food service delivery. Transportation Research, 161–173. www.elsevier.com/locate/tre
  53. Zhou, L. L., Ayegba, J. O., Ayegba, E. O., Ayegba, P. M., & Jie, Z. X. (2021). Impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00169-1