Tax morality and patriotism under public fiscal reform: Evidence from Indonesian MSMES

Industrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.

Over the years, the number of organizations investing in CSR activities has increased considerably. This increase is partially attributable to the intention of the organizations to give back to the society to repair and reduce the loss their intentional or unintentional actions might have caused to the environment. The government’s decision to make it mandatory for businesses to invest a small part of their net profit in social welfare activities has also helped nudge the organizations towards CSR activities. However, the question whether this investment influences customers’ intention to purchase the product in any manner remains an unresolved paradox. Limited researches have been conducted in this area to explore and establish the relationship if any between CSR and consumer purchase intention. This research focuses on the five different factors of CSR comprising of loyalty, morality, awareness, behavior and environment, which are identified from the previous literature. With the help of these factors, the authors researched and established the relationship between them and consumer purchase intention. In this descriptive research, the research questionnaire was distributed to 1500 respondents, using convenient sampling method, out of which 319 responses were finally obtained for the analysis purpose. After testing the reliability and validity of the data, the five hypotheses were tested using SEM (Structural Equation Modeling). It was found that all the five hypotheses were supported and thereby acknowledged the significant influence of CSR related activities performed by companies on the consumer purchase intention. The CSR driven morality is emerging to be the most important dimension that appears to influence the consumer purchase intentions. These finding will help decision-makers to formulate their promotion activities in such a manner that it aligns with the value system of the consumers and increase the overall consumer base.

Micro, small, and medium-sized enterprises (MSMEs) are among the cornerstones of the Indonesian economy that managed to survive the world crisis. The development of MSMEs also demands that owners be ready to compete with other MSMEs. This study aims to analyze whether business sustainability is influenced by financial literacy with financial behavior and financial technology as mediators. The research sample includes owners and managers of MSMEs in Indonesia, totaling 342 respondents. Data collection methods used are non-probability sampling techniques by distributing questionnaires. This study uses SEM analysis with PLS analysis tools. It was found that financial literacy does not directly affect business sustainability but affects financial behavior and financial technology. Financial behavior and financial technology are proven to influence business sustainability. Furthermore, financial behavior and financial technology mediate the effect of financial literacy on business sustainability. The results of this study show that financial behavior and financial technology can fully mediate the relationship between financial literacy and business sustainability. Moreover, financial literacy cannot directly affect business sustainability, which must be fully mediated by financial behavior and financial technology. This study also provides practical value regarding the sustainability of MSMEs. Thus, companies can survive in the long term not only with a robust financial literacy foundation but they must be supported by good financial behavior and also be able to choose the right financial technology in their business activities.