Estimating the mediating role of value chain in good corporate governance and asset growth

Abstract: The primary objective of this research is to examine the relationship between Good Corporate Governance (GCG), value chain, and bank asset growth in Indonesian State-Owned banks. Additionally, this study aims to determine whether value chain mediates the relationship between GCG and bank asset growth. This research employs a quantitative method. Data is collected using a questionnaire with a Likert scale ranging from 1 to 7. The respondents in this study are employees and managers working in state-owned banks in Indonesia. The total sample size used in this research is 239 samples. Data analysis is conducted using SmartPLS 4 software. The results of this study demonstrate that GCG has a significant positive relationship with the value chain of the bank. However, the direct relationship between GCG and bank asset growth is not statistically significant. The results of the mediation analysis show that value chain mediates the relationship between GCG and bank asset growth, emphasizing the critical role of value chain in optimizing the impact of GCG on bank asset growth.

How to cite this paper

 Amyar, F., Djanegara, M., Pamungkas, B., Akbar, B & Suwarno, S. (2024). Estimating the mediating role of value chain in good corporate governance and asset growth.Uncertain Supply Chain Management, 12(1), 29-36.

Refrences

Adinugraha, H. H. (2023). The State-Owned Islamic Banks Merger: Empirical Evidence from Indonesia. Journal of Islamic Management Studies, 6(1), 17-41.
Almagtome, A., Khaghaany, M., & Önce, S. (2020). Corporate governance quality, stakeholders' pressure, and sustainable development: An integrated approach. International Journal of Mathematical Engineering and Management Sciences, 5(6).
Aslam, E., & Haron, R. (2020). Does corporate governance affect the performance of Islamic banks? New insight into Islamic countries. Corporate Governance: The International Journal of Business in Society, 20(6), 1073-1090.
Audria, U., & Susan, M. (2019). The influence of corporate governance and intellectual capital on profitability in companies that participated in the 2012-2016 Corporate Governance Perception Index (CGPI). International Journal of Business, Economics and Law, 19(3), 12-27.
Bobillo, A. M., Rodríguez‐Sanz, J. A., & Tejerina‐Gaite, F. (2018). Corporate governance drivers of firm innovation capacity. Review of International Economics, 26(3), 721-741.
Chouaibi, J., Belhouchet, S., Almallah, R., & Chouaibi, Y. (2022). Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis. EuroMed Journal of Business, 17(4), 593-618.
Davis, G. F. (2021). Corporate purpose needs democracy. Journal of Management Studies, 58(3), 902-913.
Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2021). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, 17(8), 1251-1278.
Kalangi, D., & Tewu, M. L. (2022). Problem Loans in Banks and Implementation of Good Corporate Governance (GCG). Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5(3), 24430-24443.
Li, R., Cui, Y., & Zheng, Y. (2021). The impact of corporate strategy on enterprise innovation based on the mediating effect of corporate risk-taking. Sustainability, 13(3), 1023.
Lubis, J. M. (2023). Indonesian economic growth through tax and non-tax revenue mediated by good corporate governance. International Journal of Commerce and Management Research, 9(4), 74-79.
Mahboob, F. (2022). Business ethics-hindrance or necessity for corporate profitability: an empirical corporate governance study of US listed firms. International Journal of Business and Economic Affairs, 7(3), 11-28.
Malini, H. (2021). Transparancy and Accountability Contribution Toward Sustainability of Banking Sector in Indonesia. Business Innovation and Entrepreneurship Journal, 3(4), 275-282.
Mangasih, E. T., Pinasti, M., & Bawono, I. R. (2020). The effect of quality of internal audit and effectiveness of internal control systems on good corporate governance in finance companies. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 5(1), 56-82.
Martínez‐Ferrero, J., & García‐Meca, E. (2020). Internal corporate governance strength as a mechanism for achieving sustainable development goals. Sustainable Development, 28(5), 1189-1198.
Masud, M. A. K., Nurunnabi, M., & Bae, S. M. (2018). The effects of corporate governance on environmental sustainability reporting: Empirical evidence from South Asian countries. Asian Journal of Sustainability and Social Responsibility, 3, 1-26.
Mukherjee, T., & Sen, S. S. (2019). Intellectual capital and corporate sustainable growth: The Indian evidence. Asian Journal of Business Environment, 9(2), 5-15.
Novitasari, D., & Bernawati, Y. (2020). The impact of good corporate governance on the disclosure of corporate social responsibility. International Journal of Innovation, Creativity and Change, 10(12), 265-276.
Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal, 16(7), 983-999.
Ramli, R., & Setiany, E. (2021). Comparative analysis of good corporate governance implementation based on ASEAN corporate governance scorecard from the indonesian banking industry. Jurnal Keuangan dan Perbankan, 25(1), 117-131.
Rissy, Y. Y. W. (2019). Corporate governance in people’s credit banks in Indonesia: A challenge for a better future. International dimensions of sustainable management: Latest perspectives from corporate governance, responsible finance and CSR, 163-198.
Riswandari, E., Zarkasyi, W., Suharman, H., & Dahlan, M. (2023). The effects of innovation strategy and good corporate governance on sustainable company performance: The mediating role of value chain. Uncertain Supply Chain Management, 11(4), 1477-1484.
Rizkia, N. D., & Fardiansyah, H. (2023). Application of Good Corporate Governance (GCG) Principles Between State-owned Banking and Private Banking. Indonesian Journal of Contemporary Multidisciplinary Research, 2(4), 795-808.
Rose, E. S., Arbainah, S., Raharjo, S., & Widiarto, A. (2021). The The Influence of Corporate Governance Perception Index, Profitability Ratio and Firm Size to Company Value (CGPI And Listed Companies On The IDX). Ilomata International Journal of Tax and Accounting, 2(3), 175-183.
Ruwanti, G., Chandrarin, G., & Assih, P. (2019). Corporate social responsibility and earnings management: The role of corporate governance. Humanities & Social Sciences Reviews, 7(5), 1338-1347.
Scherer, A. G., & Voegtlin, C. (2020). Corporate governance for responsible innovation: Approaches to corporate governance and their implications for sustainable development. Academy of Management Perspectives, 34(2), 182-208.
Setyahadi, R. R., & Narsa, I. M. (2020). Corporate governance and sustainability in Indonesia. Journal of Asian Finance, Economics and Business, 7(12), 885-894.
Sharma, J. P., Jhunjhunwala, S., & Sharda, S. (2018). Corporate governance and innovation. Flexible strategies in VUCA Markets, 63-75.
Tang, H. (2022). The effect of ESG performance on corporate innovation in China: The mediating role of financial constraints and agency cost. Sustainability, 14(7), 3769.
Utami, W., Oktris, L., Rini, R., & Yulianti, N. W. (2021). Corporate Governance Practices and Disclosure of Risk Management Sharia Bank in ASEAN. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 13(1), 121-136.
Zhou, S., Rashid, M. H. U., Mohd. Zobair, S. A., Sobhani, F. A., & Siddik, A. B. (2023). Does ESG impact firms’ sustainability performance? The mediating effect of innovation performance. Sustainability, 15(6), 5586.