Do generic strategy and productivity help detect corporate retail bankruptcy risk?

Subanidja, S eph; S i Wahyuni; Les a i, Melda; Elu, Wil idus B. A icle Do gene ic s a egy and p oduc i i y help de ec co po a e e ail bank up cy isk? Ve slas: Teo ija i p ak ika / Business: Theo y and P ac ice P o ided in Coope a ion wi h: Vilnius Gediminas Technical Uni e si y (VILNIUS TECH) Sugges ed Ci a ion: Subanidja, S eph; S i Wahyuni; Les a i, Melda; Elu, Wil idus B. (2020) : Do gene ic s a egy and p oduc i i y help de ec co po a e e ail bank up cy isk?, Ve slas: Teo ija i p ak ika / Business: Theo y and P ac ice, ISSN 1822-4202, Vilnius Gediminas Technical Uni e si y, Vilnius, Vol. 21, Iss. 1, pp. 302-313, h ps://doi.o g/10.3846/b p.2020.10380 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/248030 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ Copy igh © 2020 The Au ho (s). Published by VGTU P ess This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which pe mi s un e- s ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal au ho and sou ce a e c edi ed. *Co esponding au ho . E-mail: [email protected] Ve slas: Teo ija i p ak ika / Business: Theo y and P ac ice ISSN 1648-0627 / eISSN 1822-4202 2020 Volume 21 Issue 1: 302–313 h ps://doi.o g/10.3846/b p.2020.10380 only 6 (six) companies ha ha e a posi i e end. I means ha mos o he companies (64.7%) ha e a dec easing end o inancial pe o mance. Mo eo e , i seems ha he companies a e acing a bank up cy isk. Howe e , he isk is mos equen ly seen om a mic o pe spec i e ha is inancial pe o mance. The only iew o s udies in es iga es he isk om an eceden s o inancial pe o mance such as gene ic s a egic, co po a e social e- sponsibili y, good co po a e go e nance, in ellec ual capi- al, and cus ome sa is ac ion. F om he mac o pe spec- i e, Takahashi, Taques, and Basso (2018) men ioned ha in gene al bank up cies may be a consequence a iable o ce ain economic and/o inancial c ises. F om he mic o pe spec i e, B yan, Fe nando, and T i- pa hy (2013) men ioned ha pu suing a success ul gene ic s a egy has a posi i e e ec on i m inancial pe o mance and he pe o mance was media ed by p oduc i i y a i- able. Mo eo e , Bha a ai (2018) placed cos leade ship and di e en ia ion s a egy as an independen a iable on inancial pe o mance, whe eas Cencia elli e al. (2018) used in ellec ual capi al as an an eceden o inancial pe - o mance. Besides, Da a e al. (2016) in es iga ed good DO GENERIC STRATEGY AND PRODUCTIVITY HELP DETECT CORPORATE RETAIL BANKRUPTCY RISK? S eph SUBANIDJA *, S i WAHYUNI , Melda LESTARI, Wil idus B. ELU School o Pos g adua e, Pe banas Ins i u e, Jaka a, Indonesia Recei ed 24 May 2019, accep ed 15 No embe 2019 Abs ac . Recen ly, he e ha e been se e al e ail companies expe iencing bank up cy. Many s udies on bank up cy isk a e mo e seen om he inancial pe o mance pe spec i e. S udies on he isk o inancial pe o mance a e good bu i seems oo la e o de ec he isk. So a , no esea ch in es iga es some an eceden s on he isk di ec ly. I is commonly ended in inancial pe o mance. This s udy de ec s ea lie he isk om an eceden s o inancial pe o mance as an indica o o he isk. The s udy aims o in es iga e he e ec o gene ic s a egy, as well as p oduc i i y, on bank up cy. The s udy is causali y esea ch. The popula ion is 25 e ail companies. Wi h ce ain c i e ia, he e a e 17 companies as a sample. By using SEM and sma -PLS, i can be concluded ha cos leade ship a ec s bo h on p oduc i i y and he isk. Then, he di e en ia ion s a egy does no a ec p oduc i i y, bu i a ec s he isk. Fu he mo e, p oduc i i y is eligible as an in e ening a iable on he isk. Mo eo e , he s a egy and p oduc i i y a e good bu no enough o de ec he isk. The e o e, o de ec ing he isk possibili y, i is needed a u he esea ch imp o emen o de ec ing he isk om a mac o and mic o pe spec i e comp ehensi ely. Keywo ds: di e en ia ion, cos leade ship s a egy, p oduc i i y, bank up cy isk, e ail companies. JEL Classi ica ion: G33, M11, M21, M41, L81. In oduc ion Recen ly, a lo o news epo ed ha some e ail compa- nies a e a bank up cy isk. Indica o s o he bank up cy isk, in gene al, a e iewed om he inancial pe o mance pe spec i e. Ne e heless, wha caused he inancial pe - o mance o se e al e ail companies end o decline? The decline o he pe o mance, om ime o ime, indica es a isk. Mo eo e , he pe o mance is commonly used as an ea ly wa ning o de ec ing co po a e bank up cy isk. O’Ha a e al. (2000) men ioned ha he e is a co ela- ion be ween inancial pe o mance and i s s ock p ice, whe eas he s ock p ice is in luenced by mac o-economy indica o s (Ali e al., 2010). Meanwhile, co po a e bank- up cy isk can be p edic ed by i s inancial pe o mance (Caland o, 2007). The e o e s ock p ice can be used as a signal o inancial pe o mance. So, he e is a link be ween mac o-economy, s ock p ice, inancial pe o mance, and bank up cy isk, and in gene al, he isk is de e mined by mic o and mac o condi ions. O e he pas i e yea s, Indonesia is acing he phe- nomenon ha e ail company s ock p ices ha e ended o decline. F om 17 (se en een) o he e ail companies, i is Business: Theo y and P ac ice, 2020, 21(1): 302–313 303 co po a e go e nance as an independen a iable on pe - o mance. Mo eo e , Hasan, Kobeissi, and Wang (2018) in o med ha co po a e social esponsibili y a ec s inan- cial pe o mance wi h media ing by p oduc i i y. F om bo h mac o and mic o pe spec i es, some a iables a e a ec ing he inancial pe o mance and he pe o mance in o ms a p edic ion o bank up cy isk. Howe e , he phenomena show ha bank up cy isk s ill happens. I seems because he p e ious esea ches, ana- lyzed he isk pa ially, whe he om a mac o o mic o pe spec i e. F om a mic o pe spec i e, so a , no esea ch analyzed some a iables ha a ec he bank up cy isk di ec ly. I is jus ended a inancial pe o mance. Then he bank up cy isk is analyzed sepa a ely by using he pe o mance. Re e ing o he phenomenon o e ail bank up cy in Indonesia, dec easing o s ock p ice and he esul s o esea ch by B yan, Fe nando, and T ipa hy (2013), and Bha ai (2018), his s udy in es iga es whe he cos lead- e ship and di e en ia ion s a egy help de ec bank up cy isk, wi h p oduc i i y as an in e ening a iable? 1. Re iew o li e a u e In gene al, isk p edic ion s udies o co po a e bank up cy a e mos ly iewed om a inancial pe o mance pe spec- i e (Akba e al., 2019; Adnan & Da , 2006; Al man e al., 1977; Al man, 1968; Beawe , 1968; Bea e , 1966). Mean- while, some s udies in es iga ed co po a e bank up cy isk om pe spec i es o me hodology (Ga cia, e al., 2019; Nyi ai, 2019; Kim, Mun, & Bae, 2018). The e a e a leas se en models o p edic ing bank- up cy isk. The models a e Al man Z sco e (1968), Ohl- son (1980), Ze a (Kasilingam & Ramasunda am, 2012), Sp inga e (Aghajani & Jouzba kand, 2012; Fulme (Kasil- ingam & Ramasunda am, 2012), indexes IN01 and IN05 (Ga u o a, e al., 2017). In e ms o using Al man Z-sco e, Sulud (2014) and Hayes, Hodge, and Hughes (2010) a - gued ha he Al man Z-sco e model is he i s model o p edic ing bank up cy isk and be e han o he s, al- hough ha i s ill canno be gene alized. As an in e ening a iable, p oduc i i y can be ex- plained as a a io o o al ou pu and o al inpu (B yan, Fe nando, & T ipa hy, 2013). Fu he mo e, i is said ha highe p oduc i i y allows companies o p oduce ou pu wi h ewe inpu s so ha he e is a educ ion in p oduc- ion cos s. Besides, Mo ahed and Shamszadeh (2015) con- cluded ha p oduc i i y has a p edic i e e ec on inan- cial pe o mance. On he o he hand, an inc ease in global compe i ion and apid echnological de elopmen caused managemen has o hink and be esponsi e o changes in esou ce p oduc i i y (Bloche , S ou , & Cokins, 2010). Fu he mo e, B yan, Fe nando, and T ipa hy (2013) men ioned ha companies can compe e wi h hei com- pe i o s h ough a leas wo elemen s o gene ic s a e- gy. The elemen s a e di e en ia ion and cos leade ship. Mo eo e , cos leade ship can be achie ed h ough cos e iciency and asse sa ings. Wi h inpu p ices lowe han compe i o s, companies can sell goods and se ices a lowe p ices as well. I consume s choose p ices as he main conside a ion in pu chasing o using se ices, he company will ake bene i om implemen ing cos lead- e ship s a egies. I was also a gued ha he cos leade - ship s a egy is s ongly connec ed wi h he de elopmen o p oduc i i y. This is because p oduc i i y is he abili y o combine di e en inpu s o p oduce ce ain ou pu s. A basic p inciple o he s a egy is o educe cos s o all ac- ions. Thus, a gap be ween p ices in he ma ke and cos s will be g ea e , and he company will gain a compe i i e ad an age (Ku & Zehi , 2016). (Bloche , S ou , & Cokins, 2010) s a ed ha di e en- ia ion s a egy is a compe i i e s a egy. Fu he mo e, i is said ha companies end o be success ul by de elop- ing and main aining he uniqueness o a p oduc . The uniqueness is mos likely seen om he cus ome ’s pe - cep ion. Companies ha adop a di e en ia ion s a egy gain a compe i i e ad an age. Companies ha ake a di - e en ia ion s a egy in es in de eloping unique p oduc s o se ices. So ha companies can become p ice leade s in hei ma ke (Banke , Mash uwala, & T ipa hy, 2014). Fu he mo e, O cullo (2007) men ioned ha he bes way o ge a sus ainable compe i i e ad an age in he a ea o a di e en ia ion s a egy is: a. new p oduc inno a ion, b. echnical excellence, c. p oduc quali y and eliabili y, d. comp ehensi e cus ome se ice, and e. unique com- pe i i e capabili y. Mo eo e , Ba ney and Hes e ly (2019) men ioned ha p oduc di e en ia ion can c ea e cus- ome p e e ences and i allows he company o make an abo e-no mal p o i . I is also ha almos any hing can be a base o di e en ia ion. Mo eo e , he p e e ences a e e i- dence o a p oduc di e en ia ion ha inc eases he ol- ume o pu chase and o a p emium p ice o he p oduc . Resea ches on he in luence o co po a e s a egy on bank up cy isk we e p e iously ca ied ou by B yan, Fe nando, and T ipa hy (2013), Mo ahed and Shamsza- deh (2015) and Bha a ai (2018). Places o esea ch a e conduc ed in di e en companies and coun ies, bu he e a e simila i ies in esea ch esul s, namely, cos leade ship and di e en ia ion s a egy a ec company pe o mance. The u he esul said ha p oduc i i y, as an in e ening a iable, has a signi ican e ec on he isk o company pe - o mance. Mo eo e , p oduc i e companies will be able o gene a e a g ea e income han hei expenses. Wi h s able inancial condi ions, bank up cy isk will be lowe . Besides, Bha a ai (2018) s a ed ha cos leade ship and di e en ia ion s a egy ha e a posi i e impac on he sus ainabili y o inancial pe o mance, bu he e is no mo e in o ma ion abou i s impac on he isk o bank- up cy. Ano he esea ch ound ha in ellec ual capi al is nega i ely associa ed wi h he p obabili y o company de aul s (Cencia elli, G eco, & Alleg ini, 2018). Ano he a iable ha e ec s on bank up cy isk a e good co po- a e go e nance a iable. Da a e al. (2016) men ioned ha co po a e go e nance o complex i ms wi h la ge boa ds o di ec o s educes bank up cy isk. So ha o 304 S. Subanidja e al. Do gene ic s a egy and p oduc i i y help de ec co po a e e ail bank up cy isk? p edic a company bank up cy isk, he isk can be p e- dic ed h ough inancial isk, cos leade ship s a egy, di e en ia ion s a egy, in ellec ual capi al, and good co po a e go e nance. Due o he e is no enough in- o ma ion on company e ail inancial s a emen s, his s udy analyzes 4 ( ou ) a iables, namely cos leade ship s a egy, di e en ia ion s a egy, p oduc i i y, and bank- up cy isk. The kinds o li e a u e e iew in es iga ed he e ec o cos leade ship s a egy, di e en ia ion s a egy, and p o- duc i i y on inancial pe o mance, whe eas he inancial pe o mance is an ins umen o p edic a bank up cy isk. This esea ch in es iga es he e ec o he h ee a i- ables on he bank up cy isk di ec ly. So, based on he e- iew and he no el y o his esea ch, he esea ch model can be seen in Figu e 1. 2. Me hodology This s udy is quan i a i e causali y esea ch. The e a e wo independen a iables, namely cos leade ship and di e - en ia ion s a egy, one in e ening a iable, namely p o- duc i i y, and one dependen a iable, namely bank up cy isk. The objec o he s udy is Indonesian e ail companies lis ed on he IDX o inancial s a emen s da a om Janu- a y 2014 o Decembe 2018. I means ha he analyzed da a is panel da a. Cos leade ship s a egy is measu ed by using h ee p oxies. The p oxy measu emen e e s o he concep o Balsam, Fe nando, and T ipa hy (2011) and Asdemi , Fe nando and T ipa hy (2013). Fi s , he p oxy o he cos leade ship s a egy a e 1) a io o ne sales o capi al ex- pendi u es, 2) a io o ne sales o ne book alue o land and equipmen , and 3) a io o he numbe o employees o o al asse s used o measu e labo e iciency. Howe e , in his s udy, a cos leade ship s a egy is only measu ed by using he i s and second p oxy. The hi d p oxy is no u ilized conside ing ha he numbe o employees in e ail companies is no easible o be jux aposed wi h he com- pany’s o al asse s. Mo eo e , p oxies o a di e en ia ion s a egy a e 1) a io o sales, gene al and adminis a i e expenses o ne sales, 2) a io o esea ch and de elop- men o ne sales and 3) a io o ne sales o cos o goods sold. These p oxies o he di e en ia ion s a egy a e also suppo ed by Ba ney and Hes e ly (2019) ha cus ome p e e ences a e p oduc di e en ia ion which can inc ease he olume o sales. The p oxy o bank up cy isk is measu ed by using Al man Z-Sco e (Caland o, 2007), wi h i e a iables. These a iables a e wo king capi al/ o al asse s, e ained ea nings/ o al asse s, EBIT/ o al asse s, he ma ke alue o equi y/book alue o o al liabili ies and sales / o al asse s. C i e ia ha a e used o in e p e he Z-Sco e a e a sa e zone o Z-sco e is g ea e han 2.99, dis ess zone o Z sco e is lowe han 1.81 and he g ay zone is be ween 1.81 and 2.99 (Caland o, 2007). Va iable o p oduc i i y is conside ed o be able o me- dia e be ween cos leade ship s a egy and di e en ia ion, and bank up cy isk. The p oduc i i y alue is ob ained by di iding he o al ou pu by he o al inpu . The popula ion o his s udy is all 25 companies lis ed on he IDX. Wi h ce ain conside a ions, i is no all membe s o he popula- ion a e examined. C i e ia o choosing a sample a e 1) companies a e lis ed in he IDX un il 2018, 2) companies a e engaged in he e ail subsec o , and 3) companies ha e comple e da a o analyze. Wi h hese c i e ia, 17 compa- nies a e eligible o analyze. Da a analysis used SEM (S uc u al Equa ion Model) app oach wi h sma -PLS (Pa ial Leas Squa e) so wa e. Gö z, Lieh -Gobbe s, and K a (2010) s a ed he PLS ap- p oach is app op ia e o explo a i e analysis o s uc u al equa ion models. The s ages o da a analyzed a e as ol- lows. Fi s , i is he es o he ou e model. The ou e model es ing is applied o see a co ela ion be ween indi- ca o and sco e o he cons uc . The indica o is consid- e ed eliable i he co ela ion alue is abo e 0.60. Second, i is he inne model es . The inne model es is com- monly known as a s uc u al model es . This es is con- duc ed o see he ela ionship be ween a iables, namely signi icance alues and R-squa e om a esea ch model. Thi d, i is hypo hesis es ing. The hypo hesis is applied o ind ou whe he empo a y allega ions made by he esea che a e accep ed o ejec ed. C i e ia o accep ing o ejec ing he hypo hesis a e based on he p- alue. 3. Resul s The esea ch esul s can be g ouped in o a iables desc ip- ion, es ing o he ou e and inne model, hypo heses es - ing and discussion as ollows. Figu e 1. Resea ch model (adap ed om B yan, Fe nando, and T ipa hy (2013), Mo ahed and Shamszadeh (2015) and Bha a ai (2018)) Cos Leade ship P oduc i i y Di e en ia ion Bank up cy Risk Business: Theo y and P ac ice, 2020, 21(1): 302–313 305 3.1. Va iables desc ip ion The i s p oxy o cos leade ship s a egy is he a io o sales o capi al expendi u e which illus a es a le el o e - iciency o he company is using asse s. The g ea e alue o he a io means he company is conside ed mo e e - icien . Capi al expendi u es made by he company make a posi i e con ibu ion o sales. The inc ease in capi al expendi u e should be di ec ly p opo ional o he in- c ease in sales. F om 17 e ail companies s udied, he e a e 4 companies whose sales a io o capi al expendi u e dec eased om 2014 o 2018. This indica es ha an in- c ease in capi al expendi u e does no con ibu e posi- i ely o sales. Companies ha ha e inc eased e iciency a e 7 companies. This shows ha capi al expendi u e can inc ease sales. The es expe ienced luc ua ions. Compa- nies wi h luc ua ing a ios illus a e ha an inc ease in capi al expendi u e does no always make sales highe (see Appendix 1). The second p oxy o cos leade ship is he a io o sales o book alue o asse s. The highe sales a io o he book alue o ixed asse s indica es highe e iciency in he use o asse s. High a io igu es e lec ha ixed asse s owned by he company a e used op imally and may con ibu e o inc eased sales. Resul s indica e ha six companies ha e a end ha ends o inc ease om yea o yea . I can be said ha he company can use exis ing ixed asse s o in- c ease sales. Six o he companies ha e a end ha ends o all. This indica es ha he company is unable o use ixed asse s o inc ease sales. This dec ease can be caused by wo hings. Fi s , i is he inc ease in ixed asse s wi h- ou inc easing sales. Second, i is he numbe o ixed as- se s o he company ha has no changed, bu sales ha ha e dec eased. O he companies ha a e no men ioned ha e a ola ile end (see Appendix 2). The i s p oxy o a di e en ia ion s a egy is sales and ope a ing cos s. A e ail company ope a ing cos s a e gene ally di ided in o wo componen s. Fi s , he e is he cos o sales. Second, he e a e gene al and adminis a i e cos s. Companies ha ca y ou he di e en ia ion s a egy will in es in a ious ma ke ing ac i i ies o di e en ia e hemsel es om compe i o s. Ma ke ing cos s hemsel es a e sub-sec ions in sales cos s ha a e a iable. Mo e com- panies wan o di e en ia e hemsel es om compe i o s, he g ea e he cos s incu ed. Cos is expec ed o be di- ec ly p opo ional o sales. A smalle a io numbe , he be e he company manages ope a ing cos s o inc ease sales. F om 17 companies analyzed, he majo i y ha e o luc ua e o SG & A/Sales a ios. Only one company ends o dec ease om yea o yea . This decline indica es ha he company can manage he inc ease in sales highe han he inc ease in ope a ing cos s. On he o he hand, se en companies ha e a a io wi h an upwa d end. This means ha sales g ow h is no g ea e han he g ow h in com- pany ope a ing cos s (see Appendix 3). The second p oxy used in calcula ing di e en ia ion s a egy is he a io o esea ch and de elopmen cos s o sales. The key o success o companies o be di e en om compe i o s is o p o ide high-quali y and inno a- i e goods and se ices. Thus, consume s will p o ide mo e alue and end o emembe he goods and se ices owned by he company han hose o compe i o s. To be di e en and win he ma ke , he cos s o esea ch and de elopmen will be highe . The smalle he a io shows be e condi ions. Resul s show ha i e companies ha e an up end. This means ha sales g ow h is g ea e han g ow h in esea ch and de elopmen cos s. On he o he hand, h ee companies ha e a di e en end. O he com- panies ha a e no men ioned ha e a luc ua ing end (see Appendix 4). The hi d p oxy o a di e en ia ion s a egy is he sales a io o he cos o goods sold. The success o a company adop ing a di e en ia ion s a egy is measu ed by i s abil- i y o de e mine a highe p ice. The p ices will no be a p oblem o consume s because he company is unique in e ms o goods and se ices p oduced. Resul s show ha only ou companies ha e pe o med. This indica es ha he company can con ol he inc ease in sales abo e he inc ease in he cos o goods. On he o he hand, i e companies expe ience he opposi e. The a io o sales o he cos o goods has dec eased. G ow h in basic p ices is g ea e han sales g ow h (see Appendix 5). In e ms o p oduc i i y, i can be summa ized ha he e is no company in which p oduc i i y has a ising end. Fou companies ha e dec eased hei p oduc i i y. This indica es ha an inc ease in sales is no g ea e han an inc ease in cos s. While 13 o he companies ha e a luc ua ing end (see Appendix 6) In e ms o bank up cy isk, he e a e a ious ap- p oaches o calcula e he bank up cy isk. In his s udy, bank up cy isk is calcula ed using he Al man Z-Sco e app oach. The Sco e o mula consis s o se e al a ios, namely wo king capi al o o al asse s, e ained ea nings o o al asse s, ope a ing income o o al asse s, equi y ma ke alue o o al deb and sales o o al asse s. Each a io is hen mul iplied by a p ede e mined cons an . I can be seen ha no all companies a e in a sa e posi ion in 2018. Th ee companies ha e alue Z < 1.81. Besides, h ee companies a e in a ulne able o g ay a ea posi ion. The Z-sco e o he h ee companies is be ween 1.81 and 2.99. I means ha he e a e six o se en een e ail companies a e no in sa e pe o mance (see Appendix 7). 3.2. Tes ing o ou e and inne model The da a analysis me hod in his s udy is SEM, wi h he so wa e used is sma -PLS. The esul o he ull model can be seen in Figu e 2. The esul o he model in Figu e 2 can be used as ou e and inne model es s as ollows. The e a e h ee c i e ia used o es he ou e o a model. The c i e ia a e con e gen alidi y, disc iminan alidi y, and composi e eliabili y. The limi o he co ela ion alue used is equal o o g ea e han 0.6. Fi s , he ou e es o he cos lead- e ship s a egy model is used by wo p oxies. The co e- la ion alue o he i s p oxy is 0.886 and he second 306 S. Subanidja e al. Do gene ic s a egy and p oduc i i y help de ec co po a e e ail bank up cy isk? one is 0.942. Bo h alues a e abo e he alue o 0.6. I can be concluded ha he p oxies mee he equi emen s o model adequacy. Second, he es o he di e en ia- ion s a egy ou e model, esul ing in ha all p oxies used ha e ul illed he co ela ion alue abo e he alue o 0.60. Thus, he di e en ia ion s a egy a iable has me he con- e gen alidi y o a model and can p oceed o he nex da a p ocessing. Thi d, he es o he ou e model p o- duc i i y a iable in o ms a co ela ion alue abo e he alue o 0.60. Thus he p oduc i i y a iable calcula ed by di iding he numbe o inpu s pe ou pu is easible and can p oceed o he nex da a p ocessing. Finally, he es o bank up cy isk ou e model esul s ha he Z-sco e alue mee s he adequacy o he model wi h a co ela ion alue o mo e han 0.60. The second es is he inne model es . The es is also known as a s uc u al model es . This es is conduc ed o see he ela ionship be ween a iables, signi icance al- ues, and R-squa e esea ch models. Model assessmen be- gins by looking a he R-squa e o he dependen a iable. Changes in he alue o R-squa e can be used o see how he independen a iables in luence he dependen a i- able. The R-squa e alue o p oduc i i y is 0.883 and he bank up cy isk is 0.372. The highe he R-squa e alue means he g ea e he abili y o an independen a iable o explain he dependen a iable. This makes s uc u al equa ions be e . The company p oduc i i y a iable has a alue o R- squa e ha is 0.883. This means ha he cos leade ship s a egy and di e en ia ion s a egy can explain 88.3% o he p oduc i i y a iable. The R-squa e alue indica es ha he model is in a s ong ca ego y. This inding means ha be e cos leade ship and di e en ia ion s a egy, he company has a highe le el o p oduc i i y. Fu he mo e, he bank up cy isk a iable has an R-squa e alue o 0.372. The meaning o his alue is ha cos leade ship, di e en ia ion s a egy and p oduc i i y can explain a 37.2% changing in bank up cy isk a iable. The emain- ing o 62.8% o bank up cy isk is explained by o he ac- o s ou side he esea ch model. O he ac o s in ques ion can be in he o m o company alue, company liquidi y, company image o he economic condi ion o a coun y whe e he company conduc s i s business ac i i ies. Based on he R-squa e alue, his model is a mode a e le el. This inding explains ha i he gene ic po e s a egy and company p oduc i i y ge s be e , he Al man Z-sco e will be highe . The highe o Al man Z-sco e indica es ha he company a oids bank up cy isk. 3.3. Hypo heses es ing Based on Figu e 1, he e a e se en hypo hesis es ing. The hypo hesis is based on p- alue and he limi o accep ing o ejec ing a hypo hesis is 5%. The esul summa y o hypo heses es ing is shown in Table 1. Table 1. Resul summa y o hypo heses es ing Va iabl e O iginal Sample Es ima e - S a is ics p-Values X1–Y 0.033 0.282 0.778 X2–Y 0.948 7.867 0.000 X1–Z –0.191 0.607 0.544 X2–Z –1.617 1.288 0.199 Y– Z 1.734 1.683 0.093 Based on Table 1, i can be summa ized he esul s o he hypo hesis as ollows. Hypo hesis 1 s a es ha a cos leade ship s a egy (X1) does no in luence bank up cy isk (Z). I is known ha he p- alue be ween cos lead- e ship s a egy and bank up cy isk is 0.544. This alue is g ea e han he equi ed alue, namely 0.05. Thus he i s hypo hesis is ejec ed. Then, i is concluded ha he cos leade ship s a egy a ec s bank up cy isk in e ail companies in Indonesia. Hypo hesis 2 s a es ha a di e en ia ion s a egy (X2) does no in luence bank up cy isk (Z). The esul shows ha he p- alue be ween cos di e en ia ion s a egy and bank up cy isk is 0.199. This alue is g ea e han he equi ed alue. I means ha he second hypo hesis Figu e 2. A ull model o esea ch esul Business: Theo y and P ac ice, 2020, 21(1): 302–313 307 is ejec ed. So, i is said ha he di e en ia ion s a egy a ec s bank up cy isk in e ail companies in Indonesia. Hypo hesis 3 s a es ha a cos leade ship s a egy (X1) does no in luence company p oduc i i y (Y). The calcula- ion esul shows ha he p- alue be ween cos leade ship s a egy and p oduc i i y is 0.778. This alue is g ea e han he equi ed alue. Thus he hi d hypo hesis is e- jec ed. I is concluded ha cos leade ship s a egy a ec s he p oduc i i y o e ail companies in Indonesia. Hypo hesis 4 s a es ha a di e en ia ion s a egy (X2) does no in luence p oduc i i y (Y). I is known ha he p- alue be ween di e en ia ion s a egy and p oduc i i y is 0,000. This alue is smalle han he equi ed alue. Thus he ou h hypo hesis is accep ed. I can be said ha he di e en ia ion s a egy does no a ec he p oduc i i y o e ail companies in Indonesia. Hypo hesis 5 s a es ha p oduc i i y (Y) does no in- luence bank up cy isk (Z). I is known ha he p- alue be ween p oduc i i y and bank up cy isk is 0.093. This alue is g ea e han he equi ed alue. Thus he i h hypo hesis is ejec ed. I is concluded ha p oduc i i y a ec s bank up cy isk in e ail companies in Indonesia. Table 2. Resul summa y o di ec and indi ec e ec E ec Di ec E ec Indi ec E ec p-Values X1 on Z 0.191 X1 on Y 0.033 Y on Z 1.734 X1 on Y on Z 0.057 0.738 X2 on Z 1.617 X2 on Y 0.948 Y on Z 1.734 X2 on Y on Z 1.644 0.114 In o de o explain a di ec and indi ec e ec (Ta- ble2) o he independen a iables on he bank up cy isk, h ough a a iable o p oduc i i y, i can be summa ized u he hypo hesis. Hypo hesis 6 in o ms he di ec and indi ec e ec o cos leade ship s a egy on bank up cy isk h ough p oduc i i y, whe eas hypo hesis 7 desc ibes bo h di ec and indi ec e ec o di e en ia ion s a egy on he isk h ough a a iable o p oduc i i y as an in e - ening a iable Hypo hesis 6 s a es p oduc i i y (Y) media es a ela- ionship be ween cos leade ship s a egy (X1) and bank- up cy isk (Z). I is known ha he p- alue be ween cos leade ship s a egy and bank up cy isk media ed by p o- duc i i y is 0.738. This alue is g ea e han he equi ed alue. Thus he six h hypo hesis is ejec ed. I is concluded ha p oduc i i y media es he causal ela ionship be ween cos leade ship s a egy and he bank up cy isk o e ail companies in Indonesia. Hypo hesis 7 s a es p oduc i i y (Y) media es he ela ionship be ween di e en ia ion s a egy (X2) and bank up cy isk (Z). I is known ha he p- alue be ween di e en ia ion s a egy and bank up cy isk wi h p o- duc i i y as he in e ening a iable is 0.114. This alue is g ea e han he equi ed alue. Thus he se en h hy- po hesis is ejec ed. I is concluded ha p oduc i i y me- dia es he ela ionship be ween di e en ia ion s a egy and bank up cy isk o e ail companies in Indonesia. 3.4. Discussion The i s hypo hesis esul indica es ha he bank up cy isk expe ienced by companies is a ec ed by he cos leade ship s a egy. Cos leade ship s a egy helps com- panies o be able o manage cos s used du ing p oduc ion o be lowe . Wi h low p oduc ion cos s, he selling p ice o goods o se ices will be cheape . The cheape selling p ices a e expec ed o a ac mo e consume s and e ain exis ing consume s. I he a ge ma ke is consume s wi h p ice-o ien ed, hen he cos leade ship s a egy will be e y sui able. In his s udy, e ail companies, he e is no p oduc- ion p ocess om aw ma e ials o inished goods. All i ems sold a ou le s o s o es a e goods om supplie s o dis ibu o s. This causes e ail companies can se p ices acco ding o wha hey wan . Many ac o s need o be conside ed when se ing a selling p ice. The ac o s in ques ion include he pe cep ion o he p ice o an i em o se ice, he p ice o e ed by a compe i o , he cu en economic condi ion o he communi y and o he ac o s. The esul s o his s udy in line wi h he esea ch o Mo a- hed and Shamszadeh (2015), and B yan, Fe nando, and T ipa hy (2013), which s a ed ha cos leade ship s a egy in luences dec easing he isk o co po a e bank up cy. The second hypo hesis esul s a es ha he di e en ia- ion s a egy a ec s bank up cy isk. I aced, he e a e h ee elemen s in calcula ing di e en ia ion s a egies. They a e a ios o ope a ing cos s o sales, a io o esea ch and de elopmen cos s o sales and a io o sales o he cos o goods sold. F om he h ee a ios, only sales a e used in he Al man Z-Sco e o mula. So, i is na u al ha he high and low isk o a company’s bank up cy is in lu- enced by he di e en ia ion s a egy. Then, he di e en ia- ion s a egy is used by companies o c ea e a uniqueness ha can a ac consume s. Besides, o a ac ing con- sume s, he uniqueness is also expec ed o inc ease b and awa eness. These wo hings a e some hing ha seems o appea in bo h a sho and long e m pe iod. Because o his, he di e en ia ion s a egy does necessa ily a ec on bank up cy isk o e ail companies in Indonesia. The hi d hypo hesis esul s a es ha a cos leade ship s a egy a ec s p oduc i i y. Re ail company p oduc i i y in his s udy is measu ed by calcula ing o al inpu o o al ou pu . The inpu in ques ion is sales, while he ou pu is cos s o gene a e a sale. The company’s s a egy based on he pe iod is di ided in o h ee, namely long- e m, medi- um- e m and sho - e m s a egies. The gene ic s a egy is included in he long- e m s a egy. Inc easing sales and lowe ing cos s a e some hing ha can be done na u ally and s a egically by a company. Re ail companies depend 308 S. Subanidja e al. Do gene ic s a egy and p oduc i i y help de ec co po a e e ail bank up cy isk? on supplie s in de e mining he selling p ice and cos o goods sold. This makes a cos leade ship s a egy does a - ec p oduc i i y. The ou h hypo hesis esul in o ms ha he di e - en ia ion s a egy does no in luence p oduc i i y. The esul con adic s wi h he esea ch o Mo ahed and Shamszadeh (2015) and B yan, Fe nando, and T ipa hy (2013). The be e he company makes a di e en ia ion s a egy, he uniqueness o he goods o se ices o e ed will be inc easingly embedded in he minds o consum- e s. Tha way, consume s will make a company main e - e ence when making a pu chase. This will inc ease sales olume and cus ome loyal y. Inc easing sales will make p oduc i i y be e . Howe e , om a cus ome poin o iew, p oduc di e en ia ion canno happen ins an ly. I is needed some e o and akes ime o make he p oduc becoming “ op o mind” ha he p oduc s seem di e en om o he s. The i h hypo hesis esul shows ha bank up cy isk is a ec ed by company p oduc i i y. The esul is in line wi h he esea ch o Mo ahed and Shamszadeh (2015) and B yan, Fe nando, and T ipa hy (2013) which s a ed ha p oduc i i y in luences educing he isk o co po- a e bank up cy. Companies ha expe ience an inc ease in p oduc i i y do no always expe ience a bank up cy isk. Howe e , om 17 companies s udied, he e a e 9 companies in which p oduc i i y changes a e in line wi h bank up cy isk. This s udy shows ha p oduc i i y is dominan as he cause o bank up cy isk. The six h and se en h hypo hesis esul s which s a e ha p oduc i i y media es he ela ionship be ween Po - e ’s gene ic s a egy and bank up cy isk a e p o en in his s udy. This is in line wi h Mo ahed and Shamszadeh (2015) and B yan, Fe nando, and T ipa hy (2013) esea ch. In he p e ious discussion, i is men ioned ha cos lead- e ship and di e en ia ion s a egy, a ec bank up cy isk. A e adding o he a iables, namely, p oduc i i y which is conside ed o be able o media e he ela ionship be- ween he s a egy and isk a iables, he bank up cy isk can be de ec ed by he gene ic s a egy which media ed by p oduc i i y. Based on he esul s o he s udy, i is a gued ha p oxy used o calcula e company p oduc i i y is su icien enough o ep esen he independen and dependen a i- ables. P oduc i i y as an in e ening a iable is expec ed o media e he ela ionship be ween he po e ’s gene ic s a egy and he bank up cy isk. Fu he mo e, a e es - ing, changes a e happening wi h he use o p oduc i i y as an in e ening a iable. Acco ding o Ba on and Kenny (1986), he ole o a a iable as a media o will occu i : 1) independen a iables ha e a signi ican e ec on he dependen a iable in he i s equa ion, 2) independen a iables ha e a signi ican e ec on he in e ening a i- able in he second equa ion, 3) in e ening a iables mus ha e an e ec signi ican o he dependen a iable in he hi d equa ion. F om he s a emen abo e, almos all o he condi ions a e ul illed in he s udy. The es esul s show ha only he di e en ia ion s a egy does no in- luence p oduc i i y. Meanwhile, o he a iables ha e an in luence. Fo his eason, p oduc i i y can be placed as an in e ening a iable be ween cos leade ship s a egy and di e en ia ion s a egy on bank up cy isk o e ail companies in Indonesia. Fu he mo e, p oduc i i y is a s ong signal o explain bank up cy isk. Conclusions and manage ial implica ion The s udy concluded ha i s ly, cos leade ship and di - e en ia ion s a egy a ec bank up cy isk in e ail com- panies lis ed on he Indonesia S ock Exchange. Second- ly, cos leade ship s a egy a ec s p oduc i i y in e ail companies, bu a di e en ia ion s a egy does no a ec p oduc i i y. Thi dly, p oduc i i y a ec s bank up cy isk. Fou hly, he indi ec e ec o he gene ic s a egy is g ea e han he di ec e ec on he bank up cy isk, so p oduc i i y can media e he cause-e ec ela ionship be ween cos leade ship s a egy and bank up cy isk in e ail companies. Finally, di e en ia ion and cos leade - ship s a egy, wi h p oduc i i y as an in e ening a iable, able o de ec he bank up cy isk o he e ail companies h ough p oduc i i y. Al hough he cos leade ship and di e en ia ion s a egy a e jus na u al hings and gene - ally well implemen ed by companies, hese s a egies a e s ill good bu no enough o p edic a eluc ance o e- ail companies in Indonesia especially h ough a signal o p oduc i i y. Finally, he s udy ound ha o p edic he bank up cy isk h ough inancial pe o mance is good. To de ec ea lie he isk om p oduc i i y and gene ic s a egy a e also good, bu i is s ill no enough due o ha mos ly he bank up cy isk, is in luenced by ou side o he independen a iables. Based on conclusions, i seems ha p obably, he bes way o de ec he bank up cy isk, i s i is om ex e - nal condi ions hen second i is om in e nal condi ions. I is ecommended ha al hough bank up cy isk can be de ec ed and commonly p edic ed by company mic o pe - spec i es, such as inancial pe o mance, gene ic s a egy, p oduc i i y, good co po a e go e nance, co po a e so- cial esponsibili y, cus ome sa is ac ion, and in ellec ual capi al, he company should also implemen manage ial p ac ical analysis s a ing he isk i s , i is om mac o pe spec i es such as inancial c isis, global compe i i e- ness and especially apid echnological de elopmen , hen second, i is om mic o pe spec i es such as inancial pe - o mance, s a egies which a e used and implemen ed and o he ela ed ma e s. I means ha i is needed comp es- si e esea ch om mac o and mic o pe spec i es simul- aneously. Acknowledgemen s The a icle is ully and inancially suppo ed by Pe banas Ins i u e Jaka a, Indonesia. 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