Krakatoa Management Research Journal

The Effect of Capital Intensity and Profitability on Tax Avoidance

Abdurahman Bangkit Tri Utomo — 2026-07-16

Purpose: This study aims to examine the effect of capital intensity and profitability on tax avoidance in transportation companies listed on the Indonesia Stock Exchange (IDX).

Methodology: This study employed a quantitative approach using secondary data from annual reports of 36 transportation companies during 2020–2024, resulting in 180 firm-year observations. Tax avoidance was measured using the Cash Effective Tax Rate (CETR), capital intensity using the fixed asset ratio, and profitability using Return on Assets (ROA). Data were analyzed using multiple linear regression.

Results: The results show that capital intensity has a negative but insignificant effect on tax avoidance (β=-0.653; p=0.170). Profitability also has a negative and insignificant effect on tax avoidance (β=-0.008; p=0.993). These findings indicate that asset investment and profitability do not significantly determine corporate tax avoidance behavior.

Conclusions: Transportation companies primarily utilize fixed assets for operational purposes rather than tax reduction strategies, while higher profitability does not necessarily encourage tax avoidance practices.

Limitations: This study is limited to transportation companies and only examines two financial determinants of tax avoidance.

Contribution: This study contributes to corporate taxation literature by providing empirical evidence on the role of financial characteristics in explaining tax avoidance behavior.

Artificial Intelligence and Financial Performance: A Qualitative Literature Review

Fadhoilus Shofi — 2026-07-16

Purpose: This study examines the relationship between artificial intelligence (AI) integration and organizational financial performance and identifies the conditions that strengthen or weaken this relationship.
Methodology: The study uses a qualitative literature-review design. Twenty peer-reviewed journal articles published between 2019 and 2026 were synthesized through thematic content analysis.
Results: The literature identifies four recurring mechanisms: operational efficiency and cost control, risk and fraud reduction, revenue and investment optimization, and financial reporting and assurance. AI is generally associated with stronger profitability, cost efficiency, risk-adjusted returns, asset allocation, and firm value when supported by reliable data, adequate infrastructure, skilled personnel, explainable models, and effective governance.
Conclusions: AI should be treated as an organizational capability rather than a stand-alone technology because its financial value depends on responsible integration with financial processes and governance systems.
Limitations: The review is limited to twenty articles, uses qualitative synthesis rather than meta-analysis, and includes more evidence from banking, auditing, and investment than from nonfinancial sectors.
Contributions: The study integrates fragmented evidence into a direct conceptual account of the AI-financial performance relationship and provides a basis for future company-level empirical research.

The Influence of the Marketing Mix on Purchase Decisions for Eid Cookies: Evidence from Lafenia Kueker

Fadhoilus Shofi — 2026-07-21

Purpose: This study examines the influence of the marketing mix on consumer purchase decisions for Eid cookies at Lafenia Kueker and describes seasonal purchasing patterns as business context.
Methodology: A quantitative associative design was applied to 105 respondents selected through purposive sampling. Ten questionnaire items used a five-point Likert scale, and the data were analyzed using descriptive statistics, corrected item-total correlation, Cronbach’s alpha, residual normality tests, the Glejser test, and simple linear regression in JASP.
Results: All items were valid and both constructs were reliable. The marketing mix had a positive and significant effect on purchase decisions (B=0.262, t=4.129, p<0.001), and the model explained 14.2% of the variation. In addition, 70.5% of respondents purchased only during the Eid period.
Conclusions: Product quality, product variety, price suitability, access, availability, and promotion support purchase decisions, although other consumer and market factors remain important.
Limitations: The study used purposive sampling in one local enterprise, tested one predictor, and treated self-reported purchase timing only as contextual information.
Contributions: The study connects focused regression evidence with seasonal demand conditions and identifies practical priorities for product variety, access, and year-round digital communication in a local food microenterprise.

The Effect of Marketing Strategy on Purchase Decisions in Layer Poultry Enterprises in Montong District

Fadhoilus Shofi — 2026-07-21

Purpose: This study examines the effect of a composite marketing strategy consisting of product, price, place, and promotion on purchase decisions among customers of layer poultry enterprises in Montong District, Tuban Regency.
Methodology: A quantitative, descriptive-associative, cross-sectional design was applied to 82 customers selected through purposive sampling. Data were collected using an 18-item five-point Likert questionnaire and analyzed through descriptive statistics, validity and reliability testing, residual normality, the Glejser test, simple linear regression, t testing, F testing, and the coefficient of determination.
Results: All questionnaire items were valid, and the marketing strategy and purchase decision scales were reliable (Cronbach’s α=.869 and .740). Marketing strategy had a positive and statistically significant effect on purchase decisions (B=.133, t=2.437, p=.017), and the model was significant (F=5.939, p=.017), explaining 6.9% of the variance.
Conclusions: Marketing strategy contributes positively to purchase decisions, although its explanatory power is modest and other consumer and market factors remain influential.
Limitations: The study uses one composite independent variable and a nonprobability sample from one district, so the findings should not be generalized automatically to all poultry customers or regions.
Contributions: The study provides local empirical evidence on the integrated 4P marketing mix in layer poultry microenterprises and identifies practical priorities involving egg quality, price transparency, payment convenience, distribution, and digital communication.

The Effect of Product Differentiation on Competitive Advantage in Chicken Geprek Businesses in Montong District

Fadhoilus Shofi — 2026-07-21

Purpose: This study examines the effect of product differentiation on competitive advantage among chicken geprek businesses in Montong District.
Methodology: A quantitative associative survey design was applied to 95 owners and employees selected through purposive sampling. Product differentiation and competitive advantage were measured with eight five-point Likert items. Data were analyzed using descriptive statistics, corrected item-total correlation, Cronbach alpha, residual normality tests, the Glejser test, simple linear regression, t testing, F testing, and the coefficient of determination.
Results: All questionnaire items were valid, and both constructs were reliable (Cronbach alpha=.695 and .689). Product differentiation had a positive and significant effect on competitive advantage (B=.271, t=2.852, p=.005); the model was significant (F=8.135, p=.005) and explained 8.0% of the variance.
Conclusions: Product differentiation contributes positively to competitive advantage, although its explanatory power is modest and competitiveness also depends on service, price, promotion, digital capability, market orientation, and operational consistency.
Limitations: The study uses one predictor, purposive sampling, and respondents connected to businesses in and around Montong, so the findings should not be generalized automatically to all culinary enterprises or regions.
Contributions: The study provides local evidence on differentiation in chicken geprek microenterprises and identifies practical priorities involving signature products, consistent quality, menu design, packaging, delivery, and digital communication.