Business: Theory and Practice

In the modern era, digital transformation has become an integral part of the development of economies and society as a whole. Digital technologies, such as automation, artificial intelligence, the Internet of Things (IoT), and analytical platforms, have great potential for optimizing economic processes, increasing productivity, and developing innovations. However, the implementation of digital technologies brings with it a number of challenges, including the need to adapt to the specific needs of different industries and effectively manage these processes. The purpose of this article is to develop an integrated algorithmic model for optimizing digital transformation aimed at maximizing economic growth and innovation in different industries. Special attention is paid to the development of mathematical models, in particular genetic algorithms and multi-criteria optimization methods, to predict the impact of digitalization on productivity, costs, and the innovative potential of enterprises. The article offers a comprehensive approach to assessing the economic effect of implementing digital solutions, in particular, through simulation modeling, which allows taking into account numerous factors affecting digital transformation, such as the development of digital infrastructure, the level of innovation and the adaptation of technologies to the specifics of each industry. Thus, the article not only offers a new methodology for optimizing digital transformation, but also contributes to the formation of tools for assessing and strategically managing digital solutions at the enterprise and state levels. The developed model can be an important step in improving digitalization strategies to increase efficiency and competitiveness in the face of globalization and technological change.

This study investigates the influence of digital media marketing strategy on brand innovation, performance, and overall marketing performance in Indonesia’s SME Creative Industry sector. The study examines how digital media brand innovation and digital media performance act as mediators in enhancing marketing outcomes, considering the impact of competition intensity and digital media strategic capability. Information was gathered via an internet-based survey focused on SMEs in the creative industry sector, including fashion, culinary, and crafts. The data were examined using the Partial Least Squares (PLS-SEM) methodology employing Smart PLS 3.0. The results indicate that the digital media marketing strategy impacts the digital media brand innovation and digital media performance, leading to a beneficial effect on marketing performance. This study highlights the need to implement an efficient digital media marketing strategy to enhance brand innovation and the performance of SMEs. The study underscores the intricate interaction between internal capacities and external market circumstances, underscoring the necessity for SMEs to adapt their strategies to sustain a competitive edge in the era of digitalization. Business practitioners recommended using digital media marketing strategy to enhance digital media brand innovation and maximize marketing performance.

This study investigates the health levels of Core Capital 4 banks during the COVID-19 pandemic by employing methods that focus on credit risk and profitability. Designed as a comparative analysis, the research examines differences in the financial health of these banks prior to and throughout the pandemic. The study population consists of 46 banks listed on the Indonesia Stock Exchange, with a purposive sampling technique applied to select four banks that meet specific criteria relevant to the study’s objectives. The analysis relies on secondary data, specifically annual financial statements published by each of the selected banks. The collected data were processed using descriptive statistical methods to provide an overview of the key financial indicators. Furthermore, the Analysis of Variance (ANOVA) test was employed to examine credit and capital risk indicators, revealing significant differences in the health levels of core capital 4 banks when comparing the pre-pandemic and pandemic periods. Previous studies have examined bank health in the context of mergers, Islamic banking, or comparisons with conventional banks, but few have focused on core capital 4 banks as Indonesia’s largest group. Limited research has highlighted how these large-capital banks were specifically affected by the COVID-19 pandemic. This study addresses that gap by comparing their credit risk and profitability before and during the crisis.

This study examines the individual and joint impact of carbon emission disclosure and family ownership on audit report lag using data from 124 non-financial firms listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. Findings show that greater carbon emission disclosure reduces audit report lag, leading to higher financial reporting quality. Conversely, family-controlled firms tend to have longer audit report lag, as external auditors perceive them as having higher audit risks. The interaction between carbon performance and family ownership also contributes to delays in audit reporting. Additionally, family members in supervisory roles lead to increased audit report timeliness, negatively impacting financial reporting quality. Next, the effects of carbon performance and family firms on audit report lag remain statistically significant for companies in high-profile industries. Furthermore, analysis of endogeneity confirms the credibility of the factors influencing audit report lag. The study highlights the importance of carbon disclosure in environmental and financial reporting, while family-owned businesses may struggle with audit deadlines due to their unique characteristics. Recognizing these obstacles can help auditors and regulators tailor their approaches when auditing family-owned enterprises to ensure timely reporting. This research contributes to the literature by exploring the relationship between carbon disclosure, family ownership, and audit report completion time, emphasizing the need to integrate environmental factors into financial reporting practices.

The gig economy of flexible, platform-mediated, and task-based work has been reshaping the labour markets of countries worldwide, including Indonesia. Gig workers usually operate without formal contracts or social protection and face unique challenges related to income volatility management and long-term financial planning. This study analyses how gig workers in Indonesia perceive income stability and financial security at the individual level on various socio-economic and occupational dimensions. Based on a crosssectional survey of 1,196 respondents from Java Island, the study uses descriptive statistics, Spearman correlations, Mann-Whitney U tests, and Kruskal-Wallis analyses to identify behavioral and structural determinants of financial perceptions. A strong positive correlation is detected between perceived financial security and income stability; however, it varies remarkably in selected income brackets, savings behavior, work tenure, bonus frequency, and debt sources. Urban freelancers, especially those in Jakarta, report higher financial confidence compared to rural service-sector workers. The study will point out the role of financial literacy, platform incentives, and regional infrastructure in shaping economic resilience. Centering the lived experiences of gig workers themselves, this paper contributes to policy discussions on the regulation of digital labour and social protection in Indonesia’s evolving gig economy.