FOREWORD Welcome to the 1st International Conference - icoen.org

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The First International Conference on Entrepreneurship

FOREWORD Welcome to the 1st International Conference on Entrepreneurship (2014 ICOEN, INDONESIA)

On behalf of The Honorable Keynote Speakers, Conference Co Host, Rector of Ciputra University. Organizational Committee, Steering Committee, and distinguished Presenters and Participants. It is my great pleasure to welcome you to this International Conference on Entrepreneurship (ICOEN) 2014 in Indonesia. The conference is held on September 18th and 19th; moreover. It attracts educators, researchers, and entrepreneurs which related with scientific disciplines of practitioners. On this occasion, let me give special thanks to the Keynote Speakers (1) Prof. Parimal Merchant, Director Center for Family Manager Business SP Jain Institute of Management & Research, India, (2) Prof. Greg Barton, Director of the Center for Islam and the Modern World (CIMOW), Australia, (3) Ir. Harun Hajadi, MBA Managing Director of Ciputra Group, Indonesia, (4) Tanadi Santoso, MBA., Founder of SAM Design, Indonesia, (5) Antonius Tanan, MBA, President of UCEC (University Ciputra Entrepreneurship Center), Indonesia, (6) Prof. Dr. Lucas da Costa, SE., M.Si, Rector of Universidade Da Paz, Timur Leste, (7) Norashidah Hashim, PhD, Deputy Director of Training and Consultation Department. Co – operative and Entrepreneurship Development Institute (CEDI) Universiti Utara Malaysia, Malaysia. Your contribution to this seminar as reviewers and keynote speakers make this event more meaningful and evaluable. We are also thankful to all reviewers, for their commitment, effort and dedication in understanding the task of reviewing all of the full paper. We would like to thank to all authors who have submitted their papers to be reviewed, those whose paper were chosen to be presented in the seminar, and those who have submitted manuscripts to be publishes in proceeding Last but not least, we would like to express our sincere gratitude to everyone who has contributed and made the joint conference a success. Best wishes, 2014 ICOEN Organizing Committee Chair Dr. J.E.Sutanto, MM. Graduate School, Ciputra University Surabaya, Indonesia

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COMMITTEE Steering Committee 1. Dr. David Sukardi Kodrat, MM., CPM. (Asia)

(Ciputra University)

2. Prof. Dr. F. Danardana Murwani, MM.

(Ciputra University)

3. Ir. Hendrasmoro, M.D.M.

(Ciputra University)

Organizing Committee Chair

Dr. J.E. Sutanto, MM

(Ciputra University)

Secretary

Dr. Christina Whidya Utami, MM.

(Ciputra University)

Co-Secretary Natalia Christiani Djahi, S.Pd., M.Pd.

(Ciputra University)

Treasury

(Ciputra University)

Maria Assumpta Evi Marlina, SE, MM.

Co-Treasury Eko Budi Santoso, SE., M.Si.Ak.

(Ciputra University)

HELD BY CIPUTRA UNIVERSITY COLLABORATED WITH 1. UIN Sunan Ampel Surabaya, INDONESIA 2. Universitas Negeri Surabaya, INDONESIA 3. Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, INDONESIA 4. Universitas Katolik Darma Cendika Surabaya, INDONESIA 5. IBMT International University Surabaya, INDONESIA 6. Ikatan Doktor Ekonomi Indonesia (IDEI) Surabaya, INDONESIA 7. Universitas Abdurachman Saleh Situbondo, INDONESIA 8. Universitas W.R. Supratman Surabaya, INDONESIA

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REVIEWER 1. Prof. Dr. Ir. Hening Widi Oetomo, M.M., Ph.D. (Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya) 2. Dr. Tina Melinda, Dra., M.M. (Ciputra University Surabaya) 3. Dr. Christina Whidya Utami, M.M. (Ciputra University Surabaya) 4. Dr. Hermeindito, SE, MM. (Ciputra University Surabaya) 5. Dr. Yusak Anshori, M.M. (Ciputra University Surabaya) 6. Jimmy Ellya Kurniawan, S.Psi., M.Si., Psikolog (Ciputra University Surabaya) 7. Wirawan Endro Dwi Radianto, S.E., M.Sc.Ak. (Ciputra University Surabaya) 8. Dr. Christian Herdinata, S.E., M.M. (Ciputra University Surabaya) 9. Adi Suryaputra Paramita, S.Kom., M.Kom. (Ciputra University Surabaya) 10. Trianggoro Wiradinata, S.T., M.Eng.Sc., Ph.D. (Ciputra University Surabaya) 11. Tommy Christian Efrata, S.E., M.Sc. (Ciputra University Surabaya) 12. Agoes Tinus Lis Indrianto, S.S.,M.Tourism. (Ciputra University Surabaya) 13. Dra. Juliuska Sahertian, M.Sc. (Ciputra University Surabaya)

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KEYNOTE SPEAKERS 1. Prof. Parimal Merchant Director Center for Family Manager Business SP Jain Institute of Management & Research, INDIA 2. Prof. Greg Barton Director of the Center for Islam and the Modern World (CIMOW), AUSTRALIA 3. Ir. Harun Hajadi, MBA Managing Director of Ciputra Group, INDONESIA 4. Tanadi Santoso, MBA Founder of SAM Design, INDONESIA 5. Antonius Tanan, MBA President of UCEC INDONESIA.

(Universitas

Ciputra

Enterpreneurship

Center),

6. Prof. Dr. Lucas da Costa, SE., M.Si Rector of Universidade Da Paz, TIMOR LESTE 7. Norashidah Hashim, PhD Deputy Director of Training and Consultation Department . Co – operative and Entrepreneurship Development Institute (CEDI) Universiti Utara Malaysia, MALAYSIA

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TABLE OF CONTENTS

Erma Yuliaty1

Observation on Return And Risk of Stock Categorized Blue Chip And Non Blue Chip In Indonesia Stock Exchange Observation Period February – July 2011

Hadi Wijono1

The Entrepreneurship Learning In Abdurachman Saleh University

13

Dian Maya Kurnia1

Integrating The Entrepreneurial Skills Into Speaking Class In The Higher Education

19

Karwanto1

The Entrepreneurial Leadership In The Collage (A Critical Review Of University’s Preparation Ahead Implementation Era Free Trade In 2015)

26

Herman Sasono1

The Distribution of Goods And Services In Indonesia Through The Harbour

36

Martaleni1

Business Tourists’ Loyalty To Tourist Destinations

46

Soenarto1

The Influence of Spp, Dpp, Infrastructure Facilities And Culture on Student's Satisfaction of Pts In District of Sidoarjo The Conceptual Model Competitive Advantage Based On The Resources And The Strategic Competence on The Marketing of Business of Services Education

58

1

Andreas Widyanto Influence of Marketing Mix (4p) on Malang 1 Tanalo , Christina Whidya City Board Game Cafe Consumer Buying Utami2 Decision

68

Wina Christina1, David Sukardi Kodrat2, Yusak Anshori3

The Application of Project Based Entrepreneurship Learning Model

77

Marietta Valencia Wirawan1, Tina Melinda2

The Influence of Service Quality And Price Towards Purchasing Decision For Anugerah Sound System Service Employment

84

Jessica Hardjawikarta1, Tina Melinda2

The Influence of Service Quality And Product Quality on Customer Satisfaction at Angie’s Cake Surabaya

95

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Bambang Anggoro Muljadi1

Effect Of Buyer-Supplier Relationship To Customer Cost And Customer Intention; Market And Situational Control As A Control Variable To Increase PT. Indokom Citra Persada Exports Business (A Comprehensive Export Marketing Development Model)

113

Mochamad Mochklas1

Role of Leader In Creating Organizational Culture And Product Innovation To Reach Sustainable Competitive Advantage (Study on Ngingas Metal Village Sme of Sidoarjo, East Java)

134

Eka Prasetia Afandi1, J. E. Sutanto2

Analysing Factors That Affect Ud. S Competitiveness To Suppliers

144

Hary Soegiri1, Slamet Riyadi2

The Implication of Economic Condition To The Employment Sector In East Java

151

Suyanto1, Sri Warjiyati2

The Type of Personality, Character, And To Build An Entrepreneurial Success Mindset

159

Rony Prabowo1

Design For Product Sales Increasing (Repeat Purchase) In Leather Shoes With Marketing Mix Optimization (Case Study : Smes In Tanggulangin – Sidoarjo, East Java Indonesia)

173

Suparjo1

Marketing Strategy Determining Using Swot Analysis In Ud . Barokah Sidoarjo

180

Yohan Andi Tanto1, Christina Whidya Utami2

The Effect of Promotion, Product’s Quality, Pricing And After Sales Service Within Customer Decisions To Purchase Honda Vario Scooter At Rahayu Corporation Gresik

191

Sodik1, Wahju Wulandari2

Economic Analysis of Reaction Conditions Mokro Investor And Investment Decision In Indonesia Stock Exchange (Idx)

204

Ivan Sutanto1 , Christina Whidya Utami 2

Entrepreneurship Education Affecting Entrepreneurial Attitudes And Intentions (Case Study Students of Ibm Ciputra University)

215

Roesminingsih1, Erny2

Developing Entrepreneur Leadership In Elementary Schools

222

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OBSERVATION ON RETURN AND RISK OF STOCK CATEGORIZED BLUE CHIP AND NON BLUE CHIP IN INDONESIA STOCK EXCHANGE OBSERVATION PERIOD FEBRUARY – JULY 2011 Erma Yuliaty1 ABSTRACT With the developing economic of Indonesia than investing activitity in the public is developing too. This is used by foreign investment companies a lot to operate in Indonesia with a promise of high level return. Usually, the public are tempted by high return without considering the risks so many eventually suffer losses. This is because the Indonesian public still has not understand so they have bad judgement on stock investment, they assumed investing on stocks can make their fortune gone in a second. Investment essentially is deployment of a number of funds in recent time with hope to regain profits in the future. The purpose of investment is in order to make their life more prosperous in the future.Based on the thought flow above then the writer is interested in researching on profitability and investment risk in Indonesia Stock Exchange. For that, this research is taking a title of “Observation on return and Risk of Stock Categorized Blue Chip And Non Blue Chip in Indonesia Stock Exchange Period of Observation February – Juli 2011”

Keywords : Return, Risk, Blue Chip, Deviation Standard INTRODUCTION Background Problems With the developing economic of Indonesia than than investing activitity in the public is developing too. Generally, public invests on deposits. This is because investment on deposits are commonly known well because is conducted by bank, secure, even it is easily said contains no risk at all if we conduct deposits on government bank. Investment essentially is deployment of a number of funds in recent time with hope to regain profits in the future (Halim,2005:4). But as the developing economic of Indonesia, many foreign investor come to Indonesia. Their investment business can be associated with precious goods, gold or foreign currency (valas), or other commodities such as coffee, soybeans, etc. Most Indonesians investor are only tempted on high return (level investment return) as promised by the foreign investment companies without considering the risks. Indonesia Stock Exchange is effectively operating since August 10th ,1977 after inaugurated by President Soeharto with activation of Jakarta Stocks Exchange then mergered by Surabaya Stocks Exchange to become Indonesia Stock Exchange. Formally Indonesia Stocks Exchange operates under good management of the government. Since then until now, domestic investor escalation condition is still not satisfying. That is why BAPEPAM-LK continues to attempt performing socialization to

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public. Ironically domestic investor have more trust on foreign investor which has not been clearly justified and it turn out a lot of adverse. Public acknowledgement of stocks in Stock Exchange usually still low. They fear their money would be gone in a second. But actually the case is investment in Indonesia Stock Exchange is very secure because this institution in under direct supervision of the government. Even investment on securities stocks can be very valuable because in Stock Exchange they are categorized such as Blue Chip which means very profitable shares because its products are categorized as market leader so it is highly profitable, usually stable on devident payment. That is why it is high demanding by investor cause its prices are increasing and fluctuating. Based on the thought flow above then the writer is interested in researching on profitability and investment risk in Indonesia Stock Exchange. For that, this research is taking a title of “Observation on return and Risk of Stock Categorized Blue Chip And Non Blue Chip in Indonesia Stock Exchange Period of Observation February – Juli 2011” FORMULATION OF THE PROBLEM Based on the background above, than it is formulated as follows : 1. Do stocks categorized as Blue Chip have positive average return on periode February – July 2011? 2. Do stocks categorized as Non Blue Chip have negative average return on periode February – July 2011? 3. Do stocks categorized as Blue Chip have higher average return than Non Blue Chip on periode February – July 2011? 4. Do variant coefficient of Blue Chip stocks lower than Non Blue Chip stocks ? THEORITICAL REVIEW Investment Definition Investment is a delay of consumption of a person to be included into productive activa for a certain period of time (Jogiyanto, 2012:5) Even the scarifice of one’s consumption can be defined as investment for future consumption, but a larger definition of investment requires productive activa to change one unit of delayed consumption to become more than one unit of consumption in the future. Thus, with the presence of productive activa, present delayed consumption to be invest into the productive activa will increase its total utility. Investment into productive activa can be form as real activa such as house, lands, gold, property, antiques, setting up a real business, and many other real investments or investment on business services. Beside that investor can also invest on financial activa in form of securities which is traded between investor through stock exchange. As we know investor make investment by increases its utilities in form of financial welfares (Jogiyanto, 2012:7).

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Financial Investment Types Investments into financial activa can be form of direct investment and indirect investment (Jogiyanto, 2012:7)

 Direct investment is done by direct buying of financial activa from a company through a intermediary or by other way.  Indirect investment is done by buying stock from investment company which have portfolios of financial activas from other companies. Direct Investment Direct Investment can be done by buying financial activa which is tradeable from money market, capital market, or derivative market. Tradeable activa in money market are in form of activa which have low risk of failed, short due date with high level of liquidity. One sample of this activa is government bank deposits which is done many times in financial research as risk-free rate of return. The other example is negotiable certificates of deposits. Negotiable means resaleable. While stock exchange its nature is for long term investment. The items that are tradeable in stock exchange are financial activas in form of fixed income securities and equity securities. Indirect Investment Indirect Investment is done by buying securities from investment company. Investment company is a company who provide financial services by selling their stocks to the public and use the funds they gain to be invested into their portfolios. Stock Exchange Generally stock exchange is a place or facility to merge demands and offer of long term financial instrument, usually more than one year (Samsul, 2006 : 43). Purpose and benefit of stock exchange can be seen from three points of view, which are : 1. Point of view of a state 2. Point of view of issuers 3. Point of view of public (Samsul, 2006 :43) Point of View of a State Stock exchange is build to drive the economy of a country through private power and reduce the burden of the state Point of View of Issuer Stock exchange is a mean to gain additional capital of the concerned company to obtain funds in a lower cost and it can be achieved in stock market. Point of View of Public Public have a new means to invest their funds. Before, investment have been done by form of deposits, gold, lands or houses. Now it can be done by form of stock and obligation.

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Stock Exchange Investment Instrument Instrument form in stock exchange is called effect in form of (1) stocks, (2) obligations, (3) right proof, (4) warrant proof, (5) derivative product or usually named derivative (Samsul, 2006 : 45) Stock is a proof marks of having a company which the owners are also called stockholder or shareholder. There are two kinds of stock, which are : (Samsul, 2006 : 45) 1. Preferred Stock Kind of stock which have the right to first receive profit and have cumulative profit rights. 2.

Common Stock Kind of stock which will recieve profit after preferred stock is paid. If a company gone bankrupt, then common stockholder can suffer first. Only a common stockholder can have voting rights in General Meeting of Stockholder Votes (RUPS).

Obligantion (Bonds) is proof marks of having a company which have long term of debts to public which are three years up. Obligation holder will receive coupon as income from obligation which is paid once every three months or six months. When it is time for the company to pay off their bonds, bonds holder will receive coupon and main obligation. Right Proof is a right to buy stock on a certain price in a certain period of time. Right to buy is belonged to the owner of old stocks. Warrant is right to buy stock on a certain price in a certain period of time. Stock Index and Obligation Index are index numbers which are tradeable for the purpose of speculation and hedging. Types of Stock Exchange Types of stock exchange can be categorized into four markets, which are : (Samsul, 2006 : 46) 1. First Market 2. Second Market 3. Third Market 4. Fourth Market First Market First market is a place or facility for the company to offer their stock or obligation in the first time to the public. Here said a place because physically public buyer can meet the emition underwriter or sales agent to make order at the same time pay the order. Second Market Second market is a place or facility of effect trading transaction between investor and the price is set by investor through effect mediatory. Third Market Third market is effect trading transaction facility between market maker and investor and prices is set by market maker. Fourth Market

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Fourth Market is trading transaction facility between selling investor and buying investor without effect demiatory. LQ – 45 Stock exchange in Indonesia is still classified as stock exchange with low transactions (thin market), which its stock exchange are mostly are less active trade of the securities. IHSG which is including all noted stocks (which mostly are less active tradeable) is considered not properly used as indicator of stock exchange activities. Therefor on February 24th , 1997 it is introduced other alternative index which is Liquid Index – 45 (ILQ-45)(Jogiyanto, 2012 : 106). This index is formed just by 45 of most active stocks tradeable. Considerations which are underlying the chosen stocks included in ILQ-45 are liquidity and capitalization with criterias as follows : 1. For the last 12 months, transactions of stock rates are included in 60 biggest in regular market. 2. For the last 12 months, market capitalization rate values are included in 60 biggest in regular market. 3. Have been recorded in BEI for at least 3 months. ILQ-45 is renewed in each 6 months which are on early February and August. Blue Chip Stocks Blue Chip Stocks are seed stocks in the exchange. A stocks can be categorize as Blue Chip Stocks if they qualified criterias as follows : 1. Capitalization. Stocks from Blue Chip company must have quiet large market capitalization (trillions). Therefor it would be difficult for the market to manipulate its prices. 2. Liquidify (excessive procentage of public ownerships). Although has quite large of stock capitalization, it still have to be seen how big the procentage of stock which are owned by the public (circulating in stock exchange). If public ownerships are too low then stock price will also be easily manipulated. Its stocks becomes unvalid in exchange therefor investor will be difficult to go in and out because typical trading is tend to be short term. 3. Long Period of Circulation in the Stock Market.. Long period of circulation in the stock market is also important to know the stock’s activities (track record). Time period of circulation in stock market is minimum of five years. 4. Company Performance and Stability of its Performance. And the most important is how the company performed for a certain period of time. Do the company gain profit each years? Does the profit increase years by years? Does the profit have enough significant than capital of the company? Basic rules that will be used for a good performance is company’s growth in five years.

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Performance Stability also needed to be considered. Only companies with constant profit gaining (if it loss in a year, the next year it must be get profit back and switch up the year before loss). And it confirms that the company each year is able to pay devident to their sharesholder (www.sahamok.com/blue-chip-stock). Definition of Return and Risk Return (Rate of Return) Investor purpose in investment is maximalise return, without forgetting investment risk factor it have to deal with. Return is one of the factors that motivated investor to invest and also reward of the bravery of the investor to bear the risk of the investment they take. Sources of investment return are composed from two main component, which are Yield and Capital Gain (Loss) (Tandelilin, 2001 : 48) Capital Gain or Capital Loss is difference of relative recent investment price with former period price. Capital gain or capital loss = (Jogiyanto, 2012 :206) Pt = Recent Investment Price Pt-1 = Former Period Investment Price. Yield is periodically cash income procentage upon investment price of certain period of an investment (Jogiyanto, 2012 : 206). For stocks, yield is procentage of divident upon last period stock price (Jogiyanto, 2012 : 206-207). Therefor return total can be acclaimed as follows, Return = Capital Gain (Loss) + Yield Return =

+ Yield (Jogiyanto, 2012 : 206-207).

Risk Return and Risk are two inseparable things, because considerations of an investment is a trade-off both of these factors. Return and Risk have a positive relation, the bigger risk must be beared, the bigger compesated return is. Risk is often connected with divergence and other deviation of outcome that is accepted from what is expected (Jogiyanto,2012 : 323). According to Brigham and Houston, risk is defined as opportunity of an unwanted situation (Brigham,Houston, 2010 : 323) Risk of an asset can be analyzed by two ways : (1) in an independent basic which assets are reviewed separately, and (2) in a portfolio basic which owned asset is a part of a number of other assets in a portfolio (Brigham,Houston 2010 : 323). So, independent risk (stand alone risk) is an assets which become a risk that has to be dealing by an investor if they only have one certain kind of asset (Brigham, Houston 2010 : 323) To be more useful, risk measurement implemented should have a certain value, it is necessary to conduct quantification of density of the probability distribution. One of the measurement tool is standard deviation (Brigham, Houston, 2010 : 329). The lower

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standard deviation than the probability distributions will be more dense and the lower its stock risk. Formula of standard deviation is , Standard Deviation = σ = (Brigham, Houston, 2010 :331) ri

= stock return number-i = stock return rates Pi = probability of gaining return N = period of measurements If the only available data are return data samples of the several past period then standard deviation on return is also able to be estimated by using the following formula : Estimation σ = s =

(Brigham, Houston, 2010 :331)

Rt = real level rate of past stock return Coefficient Variant In measuring securities risk we also need to count the securities relatives risk. This relative risk is showing risk on each expected return unit (Tandelilin, 2001 : 561). It is necessary because risk information which only in form of variants and standard deviations can sometimes be misleading, especially when there are spreading highly expected return. Relative measurement that can be used is variant coefficient (Tandelilin, 2011 : 56) Formula to count variant coefficient is : Variant Coefficient = =

(Tandelilin, 2001 : 56)

Hypothesis Hypothesis is temporary allegation about a phenomena. Which this phenomena has to be tested of its truth. The hypothesis that will be tested are as follows : 1. H0 : expecting return rate of Blue Chip stock equals to zero H1 : expecting return rate of Blue Chip stock bigger than zero 2.

H0 H1

: expecting return rate of Non Blue Chip stock equals to zero : expecting return rate of Non Blue Chip stock smaller than zero

3.

H0 H1

: expecting return rate of Blue Chip stock equals to Non Blue Chip : expecting return rate of Blue Chip stock higher than Non Blue Chip

4.

H0

: standard deviation of Blue Chip stock = standard deviation of Non Blue Chip stock

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H1

:

Standard deviation of Blue Chip stock < standard deviation of Non Blue Chip Stock

RESEARCH METHODS DEFINITION OF VARIABLE AND DEFINITION OF OPERATIONAL Definition of Variable This research variable is return and risk of stock which can be profitable or loss. 1. Profitable Return is capital gain while loss return is capital loss. Thus return variable in this research is capital gain and capital loss. 2. Risk is deviation of the expected result. Definition of Operational Operationalization of return variable in this research is using formula as follows : Capital Gain or Capital Loss = (Jogiyanto, 2012 : 206) Pt = recent stock price Pt-1 = a day before recent stock price While risk in this risk is counted with the formula as follows : Estimation σ = s =

(Brigham, Houston, 2010 :331)

Types of Research Types of this research is descriptive analysis Sampling Technique Population of Research Data Population of this research data are all stocks listed in Indonesia Stock Exchange periode February – July 2011. Sampling techniques used in this research is purposive sampling because sample taken is adjusted with the needs of research. Research Samples Research sample is LQ-45 samples added with one stock of HM.Sampoerna because this stock in February-July 2011 period is not included in LQ-45 stocks. From LQ-45 stocks, they will be categorized in Blue Chip stock or Non Blue Chip stock categories.

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Type of Data Data of this research is quantitative data because in form of numbers which are stock prices. Data Source Data source of this research are secondary datas because they are obtained indirectly from the concerned company but from other media. Hypothesis Testing Methods and Data Analysis Hypothesis is temporary allegation which will be tested of its truth. Thus this research is liked to compared the meaning of two group of variables then hypothesis testing is using Two Rates Differential Test with the help of statistic program of SPPS version 2.0. The tested hypothesis are as follows : 1. Ho : Blue Chip = 0 H1 : Blue Chip > 0 2. Ho : Non Blue Chip = 0 H1 : Non Blue Chip < 0 3. Ho : Blue Chip = Non Blue Chip H1 : Blue Chip> Non Blue Chip 4. Ho :

ð Blue Chip stock = ð Blue Chip Non Blue Chip stock H1 : ð Blue Chip stock < ð Blue Chip Non Blue Chip stock

To test differential meanings of two objects group research which are comparable then Test T is tested by means of Two Rates Differential Test formulated as follows : t=

(Supranto, 2001 : 223 )

Dimana :

and 1

C

2

2 2

and n1 and n2

= samples rates = total quadrat samples = number of members

RESEARCH RESULT AND INTREPRETING This research is using samples of 45 LQ-45 stocks and HM. Sampoerna stock in Februaty – July 2011 period. From the observation of price stock fluctuation of LQ-45 it is described as follows :

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Num. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Table 1 Average Return of Blue Chip Stock and Non Blue Chip Stock Stock Average Return Num. Stock Average Return TLKM -0,000039 1 ADRO 0,000973 PGAS 0,000272 2 ASRI 0,005441 ANTM -0,000975 3 BBKP 0,002983 TINS -0,001023 4 BBTN 0,001867 BBRI 0,003125 5 BJBR 0,000843 BMRI 0,002236 6 BNBR 0,000702 BBNI 0,002771 7 BRAU 0,000449 INTP 0,000833 8 BSDE 0,002922 INDF 0,002674 9 BTEL 0,005447 ISAT 0,000948 10 CPIN 0,006161 BBCA 0,003499 11 DOID 0,001589 BDMN -0,000508 12 ELSA -0,000040 ASII 0,003210 13 ELTY 0,002668 BUMI 0,000682 14 ENGR 0,007432 INCO -0,000971 15 GJTL 0,005321 GGRM 0,003014 16 INDY -0,000100 HMSP 0,002063 17 ITMG 0,000959 SMGR 0,001479 18 JSMR 0,002253 UNVR 0,000353 19 KLBF 0,002411 UNTR 0,002089 20 LPKR 0,002987 MEDC -0,001965 21 LSIP -0,006416 AALI 0,000462 22 PTBA 0,000461 23 SMCB 0,000569 24 UNSP 0,003738 RETURN 0,001085 RETURN RATE 0,002114 RATE

From table above, it can be seen that by choosing Blue Chip stocks probability of facing loss by investor is bigger than investment on Non Blue Chip. It is notable from 22 Blue Chip stock observed 6 stocks generated negative return rate while on Non Blue Chip there are only 3 stocks from 24 observed stock which generated negative return rate. It is showing that Blue Chip stock is likely have decreasing price more often than Non Blue Chip.And actually return rate of overall Blue Chip stocks are lower than return rate of Non Blue Chip stock which on Blue Chip stock is 0,001101 or 0,1101% and on Non Blue Chip is 0,002114 or 0,2114%. And after the return rate was meaning tested, it is obtained that both return from Blue Chip stock and Non Blue Chip stocks are not different significantly because significance level of data management result is 14,3% while siginificance level of this research is 5%.But by investing on Blue Chip stocks or Non Blue Chip stocks investor will gain return above zero nominally but not big enough to be categorized as profitable because it is proven statistically that return level on Blue Chip stock and Non Blue Chip stock are generating return not different than zero.

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Table 3 Standard Deviation Blue Chip stock and Non Blue Chip Num Stock Standard Num. Stock Standard Deviation Deviation 1 TLKM 0,019164 1 ADRO 0,018067 2 PGAS 0,032908 2 ASRI 0,042188 3 ANTM 0,012643 3 BBKP 0,032101 4 TINS 0,017064 4 BBTN 0,017820 5 BBRI 0,025408 5 BJBR 0,017730 6 BMRI 0,018444 6 BNBR 0,026121 7 BBNI 0,016259 7 BRAU 0,017202 8 INTP 0,016889 8 BSDE 0,024383 9 INDF 0,015353 9 BTEL 0,046310 10 ISAT 0,015410 10 CPIN 0,068282 11 BBCA 0,025995 11 DOID 0,099805 12 BDMN 0,016946 12 ELSA 0,027305 13 ASII 0,017730 13 ELTY 0,022935 14 BUMI 0,020123 14 ENGR 0,030244 15 INCO 0,011745 15 GJTL 0,067023 16 GGRM 0,026549 16 INDY 0,016341 17 HMSP 0,017979 17 ITMG 0,028917 18 SMGR 0,015142 18 JSMR 0,012691 19 UNVR 0,013194 19 KLBF 0,042076 20 UNTR 0,017370 20 LPKR 0,023180 21 MEDC 0,019316 21 LSIP 0,075641 22 AALI 0,013348732 22 PTBA 0,011591 23 SMCB 0,019319 24 UNSP 0,064765 RISK RATE 0,018408 RISK RATE 0,035502 From table above, it is seen that risk of Blue Chip stocks is lower than Non Blue Chip stocks which is 1,8408% for Blue Chip stocks and 3,5502% for Non Blue Chip stocks. It is confirmed by statistical test result which shows risk of Blue Chip stocks is indeed lower than Non Blue Chip stocks with significance level 0%. CONCLUSION AND SUGGESTION Conclusion 1. From gained return, it can be concluded that Blue Chip stocks is not able to give higher return than Non Blue Chip stocks 2. In investment on Blue Chip stocks or Non Blue Chip stock the return obtained is not big enough although it is a positive value or indeed profitable. 3. Risk of Blue Chip stocks is indeed lower than Non Blue Chip stocks.

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SUGGESTION 1. In investment in Indonesia Stock Exchange there is no need to fear of loss because from six months of observation, it is showed a positive result both on Blue Chip stock or Non Blue Chip stocks 2. In investment in Indonesia Stock Exchange there is no need to be a fanatic on choosing Blue Chip because from the observation shows Non Blue Chip stocks are capable to gain higher return than Blue Chip stocks. 3. If the investor do not like high risk or risk averse then the investor should choose Blue Chip because it is proven that its risk stock is lower than Non Blue Chip stock. REFERENCES Brigham, Eugene, Houston, Joel, 2010. Dasar-dasar Manajemen Keuangan, Edisi sebelas. Jakarta : Salemba Empat. Halim, Abdul, 2005. Analisis Investasi, Edisi Kedua, Cetakan Pertama, Salemba Empat. Husnan, Suad, 2001.Dasar-dasar Teori Portofolio dan Analisis Sekuritas, Edisi Ketiga, Cetakan Ketiga, Yogyakarta : UPP AMP YKPN. Jogiyanto, 2012. Teori Portofolio dan Analisis Investasi, Edisi Ketujuh, Cetakan Kedua, Yogyakarta : BPFE. Samsul, Mohammad, 2006. Pasar Modal dan Manajemen Portofolio, Jakarta : Erlangga. Supranto, 2001. Statistik Teori dan Aplikasi, Edisi Keenam, Cetakan Pertama, Jakarta : Airlangga. Tandelilin, Eduardus, 2001. Analisis Investasi dan Manajemen Portofolio, Edisi Pertama, Cetakan Pertama, Yogyakarta : BPFE.

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THE ENTREPRENEURSHIP LEARNING IN ABDURACHMAN SALEH UNIVERSITY Hadi Wijono1 Abdurachman Saleh University INDONESIA E-mail: [email protected]

ABSTRACT The role of entrepreneurship that has given the impact to the economic development of a country also improves the development of entrepreneurship education in the university level. Abdurachman Saleh University developed the entrepreneurship program into four ways, namely through the development of entrepreneurship curriculum, established the business unit incubator and centre of entrepreneurship as the student activities and infusing the entrepreneurial skill to all subject.

Keywords : Entrepreneurship Education, Entrepreneurship Curriculum, Implementation INTRODUCTION Over the last decades, more than one initiative or reform movement in Higher Education provision has addressed skills requirements and actual or perceived educational deficiencies. There was the key skills agenda, C& IT skills, transferable skills recently followed by employability and entrepreneurship skills. On the other hand, universities are recognising their responsibility to provide a useful and relevant educational experience. Responding to external pressures, universities around the world have started to change the way they operate (Clark 2004: 1). Entrepreneurialism is not (anymore) a concept foreign to academia. There is an increasing interest in co-operating with businesses and industry often leading to the input of private funding to public universities. Like corporations, universities diversify. Many universities have broadened their mission (beyond education and research) to include outreach activities such as community service and knowledge transfer in the form of spin-offs, incubators or enterprises. Although the stimulation of intellectual activity in students through transmission of theoretical knowledge and the advancement of knowledge through research are still important, other aspects are gaining importance such as provision for practical skills and applied knowledge and the direct and indirect contribution of universities to knowledge economies. Providing employability and entrepreneurship skills is a logical progression from this development.

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Abdurachman Saleh University focused in developing the entrepreneurship curriculum in higher education. Starting by the cooperating between some universities and Public Department in East Java Province, UNARS developed the Entrepreneurship curriculum. DESIGN THE ENTREPRENEURSHIP CURRICULUM The entrepreneurship education definition is, as well as the entrepreneurship phenomenon itself, rather complex and vague. The lack of consensus in defining entrepreneurship contributes to the confusion about entrepreneurship education program definition. For the purpose of this study, entrepreneurship education program is defined as the process of providing individuals with the ability to recognize commercial opportunities and the knowledge, skills and attitudes to act on them (Jones and English, 2004. p.416.). Therefore, entrepreneurship education programme is a complex process with wide array of objectives such as: 1. To give individuals more and better knowledge for entrepreneurial ventures creation, management and growth, 2. To provide more awareness about entrepreneurship, 3. to enhance individuals capability to act entrepreneurially in all walks of life (by providing them with the set of attitudes and values for embracing changes and selfreliance. Garavan and O’Cinneide (1994. a & b) suggested the set of the assessment criteria for entrepreneurial programs evaluation such as philosophy of the program; targeted population; objectives and content of the programs; learning strategies and method, program facilitation; outcomes and impact of the programs. The comparison of 6 entrepreneurship education programs indicated that there are converging and diverging elements in designing a program. The programs delivery was of different lengths (from few months to year), at different institutions (from incubators to universities) and for different targets (from students, to professors and operating entrepreneurs). On the other side, a high convergence was found in the program content, learning methods and local adaptability of the teaching strategies. However, this study highlights inappropriate learning methodologies, lack of focus and lack of outcomes assessment of the entrepreneurship education. Abdurachman Saleh University designed the curriculum for 6 ( six) semester in law faculty, economic faculty, agriculture faculty, faculty of teacher training education, social politic faculty and faculty of letter. The curriculum designed based on the need analysis of the students,

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THE CURRICULA OF ENTREPRENEURSHIP SUBJECT OF ABDURACHMAN SALEH UNIVERSITY OF SITUBONDO There are the entrepreneurship curriculum which is implemented in Addurachman Saleh University : 1. Semester 1 Competence: Personal Selling

1. 2. 3. 4. 5. 6. 7. 8. 9. 2.

The Description Of Subject : Self conceptual (1) Mind Management (2) The Sharing of Entrepreneur successfulness – the interview to the success entrepreneur – presentation- discussion(3-6) Design Thinking (7) Write personal blue print (8-9) Prototype (10-11) Prototype Test( 12) Product (13) Exhibition (the best stand and product ) ( certificate and Trophy) (14) Semester 2 Competence: Catching the Entrepreneurship opportunities

3.

The Description Of Subject : 1. Observation business – PEST Analysis (1) 2. Analysis of business opportunities by analyzing business environment 3. Analysis of industry structure - conduct - five part analysis (3) 4. Business plan (the counseling process, the evaluation of improvement) (4-7)-Middle Test 5. 5. Execution (making exhibition in the mall (in the mall selling or distribution or via the web) (8-14) – Final Test Semester 3 Competence: Attract the Investor (Business Development media) The Description Of Subject : 1. Inviting the speaker – banking (credit analysis) for teaching the terms that are considered in the credit agreement) (1) 2. Inviting the speakers (Business Owner) (2) 3. Business proposals (for banking and Business Owner) (3) 4. Presentation proposals (CSR working for banks) (4) 5. Invites Investors (from the banks) there show room rental hall - investor day (6-12) – Middle Test 6. Preparation BOD Meeting (internal - faculty and students) (13) 7. BOD Meeting (accountability reports to shareholders) (1)

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4.

5.

Semester 4 Competence: Start Up Business 1 Benchmarking, Structure and system) The Description Of Subject : 1. Inviting Community / associations (respectively - each introduced themselves, each business unit in the association (1-2) 2. Looking for information about prospects, opportunities, challenges, KSF (the key of success), presentation of the results of information (3-4) 3. Finding information company formation process. • Department of Licensing • Department of Industry • Tax office • Department of Health 4. Registration form (residence permits, Business License, Tax ID, TDP, HO, MD, SP) (5-6) 5. Business Model Canvas (7) Middle Test 6. Making Business Start UP (bias seek venture Capitals) (8)-Middle Test 7. To set up organizational structure, SOP, form - the form of reporting and monitoring, (9-14) – Final Test Semester 5 Competence: Start Up Business 2 (Operational and monitoring)

6.

The Description Of Subject : 1. Finding locations for businesses (1-2) 2. Set Up Men-room (3-4) (build your own, rent, System for the results. 3. Business Operations (5-12) – Middle Test 4. Preparation Performance Business Contest (13) 5. Performance Business Contest (prize-highest turnover, sustainable business, Customer the highest, SMS Poll to business) (14) – Final Test Semester 6 Competence: Business Growth The Description Of Subject : 1. Evaluating Start Up Business 2 (1) 2. Competitor Benchmarking to doing Customer Insight (2) 3. Make improvement plan (3) 4. Doing improvises (4-5) 5. Business Operations (6-12) – Middle Test 6. Preparation of assessment (13)

THE IMPLEMENTATION OF ENTREPRENEURSHIP EDUCATION Abdurachman Saleh University to implement the model of entrepreneurship education through four ways. First, the UNARS enter into entrepreneurship courses education curriculum. However, entrepreneurship courses exist only in a few Faculties, namely the Faculty of Economic, Faculty of Social and Political Sciences (Program Studies

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Administrative Sciences), Faculty of Agriculture, and Faculty of Teacher Training and Education. Abdurachman Saleh University is committed to switch to paradigm of learningoriented learners (student-centered learning) rather than teacher-centered learning (teacher-centered learning). In the new paradigm, responsibility for learning is on learners while teachers act more as a facilitator, coach, and models. To ensure the success of the teaching staff in performing their duties, then every Entrepreneurship Course faculty are required to make the design teaching in the form of a clear, able to like, and refers to the purpose and learning objectives, and consider the characteristics of learners. in develop guidelines outline lectures and academic units lectures, each faculty given the freedom to develop in accordance with the vision, mission and the goal of each faculty or department that houses the course. In the Social UI, for example, the Administrative Sciences Department, there are compulsory subjects in which students are required to create a business plan.Secondly, the UNARS set up a business incubator unit. UNARS business incubator established at 2013. The institute under the auspices of Cooperation Directorate and Business Incubator (DKIB). As a new institution in the UNARS, then Business Incubator develop extensive cooperation with all institutions similar in UNARS, resulting in optimal synergy in achieving purpose of business incubation in the UNARS. Even more than that, a Business Incubator will not be able to work without the support and cooperation of all stake-holders in the UNARS. The purpose of the establishment of a Business Incubator UNARS are: (1) birth tough businessman based science and technology, (2) encourage research results into useful products, and (3) the source of funding to help the search effort. Business Incubator UNARS is not intends to master the birth businesses, because once a business later . This born and grow, then this business will be released as a professional business based on the various provisions in the UNARS. In addition, the Business Incubator implement UNARS Student Entrepreneurial Program at where the student will be expected (1) has a strong mental and skill in trying to (be Entrepreneur) and was able to develop her potential to contribute to the environment, (2) have the skills to make business plan (business plan), product marketing and other skills, (3) grow and develop new entrepreneurs who are highly educated, and (4) build business networks between business people and entrepreneurs newbie. While benefits that can be generated is (1) provide an opportunity to engage directly in real activity in the small and medium enterprise to hone the soul self-employment, and (2) foster business (sense of business) that have courage to start a business backed by the given capital and assistance in an integrated manner. Third, establish a student activity units reserved for students who have an interest in entrepreneurship called the Center Of Entrepreneurship (COE). Student activity unit that stands 01 April 2013 This, aims to equip students with entrepreneurial science. while its mission is to foster Indonesian businessman who has a soul entrepreneurship, social commitment and self-reliance in the business environment conducive and business ethics. COE themselves engaged in the Research and Development of

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Entrepreneurship in the student environment within the scope of Abdurachman Saleh University . Fourth, at the faculty level, entrepreneurial skills and characteristics built not only on subjects directly related to entrepreneurship but also non business discipline subject. CONCLUSION In the conclusion, Abdurachman Saleh University focused in implementing the entrepreneurship program. The Implementation was done in four ways, namely through: (1) education curriculum; (2) units business incubators; (3) Center of Entrepreneurship as a unit student activities ; ( 4) building entrepreneurial skills and characteristic by integrating the eye tuition or extracurricular activity. REFFERENCES Clark, Burton R. 2004. Sustaining Change in Universities: Continuities in case studies and concepts. Berkshire, England: Open University Press and McGraw-Hill Education. Garavan, Thomas N; O’Cinneide, Barra (1994b) Entrepreneurship education and training programmes: A review and evaluation, Part 2. Journal of European Industrial Training, Vol. 18; No.11; pp.13-21. Jones, Colin and English, Jack (2004) A contemporary approach to entrepreneurship education, Education and Training, Vo.46; No.8/9. pp.416-423 Small Business Service. 2005. Social Enterprise Unit. Online. URL: http://www.dti.gov.uk/socialenterprise/index.htm.

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INTEGRATING THE ENTREPRENEURIAL SKILLS INTO SPEAKING CLASS IN THE HIGHER EDUCATION Dian Maya Kurnia1 Abdurachman Saleh University, Indonesia E-mail: [email protected] ABSTRACT This paper discusses the benefits of entrepreneurship education in actualizing the goal of self reliance as stipulated in the National Policy On Education. According to this paper, the higher education level should be implemented the entrepreneurial skills into the curriculum. Suggestions regarding ways in which entrepreneurship skills can be integrated into the speaking class in higher education. The samples of speaking activities on entrepreneurship skills were also provided. The paper recommends the training of speaking teachers (that will take on this new role in the classroom) as the way forward towards the development of entrepreneurial mindsets and skills in Indonesia students.

Keywords : Entrepreneurial Skill, Speaking Class, Higher Education

INTRODUCTION Entrepreneurship has the importance role to the human being, it is related to all dimension of life. The Entrepreneurship intention is for stimulating the innovativeness and development to make better community, a better nation and a better world. To achieve this objective, government strategies ought to concentrate on the educational aspect and human potential for business which is existed in every general public. Indonesia as one of the developing country faces the problem of economy and employment. The solution to overcome these problems is creating the “entrepreneur” to young generation in Indonesia. In fact, Angga Ranggana ( 2014) indicated that “ the interest in graduate education institutions for entrepreneurship is very low, which is for high school graduates (22.63 %) and higher education (6.14 %). While those who had elementary and junior high schools have the autonomy to try it yourself (32.46 %). There is a tendency for young high school education (61.87 %) and graduate (83.20 %) choose to become workers or employees than to be entrepreneurs”. It means the higher a person’s education level, the lower the self-reliance and motivation to become entrepreneurs. This is the challenge for teacher of basic education to higher education in Indonesia for blending the entrepreneurship skill to the curriculum for infusing the entrepreneurship mindsets.

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THE BENEFIT OF ENTREPRENEURSHIP Entrepreneurship is an employment strategy that can lead to economic Self-sufficiency for people. Self employment provides people and their families with the potential to create and manage business in which they function as the employer or boss, rather than merely being an employee. Nearly 80 % students would be civil servant or works in big enterprises. An interview recently conducted by the researcher to students found that 75 % of 50 students, want to be civil servant, 10 % want to be entrepreneur and 15 % want to work at private company as shown as the table below. No 1 2 3

Item I want to be an entrepreneur I want to be employed by Government I want to work for a private company

Student’s response % 75 10 15

Most Indonesian people prefer to work as employees to entrepreneurs. In Indonesian society, there is still general mindset that a successful person is the one who work as a civil servant (PNS) or an employee in a big company. As long as the government or an institution guarantees their life, they are willing to do any casual jobs that they never have dreamed before. The entrepreneurship culture is weak in Indonesia. However, this is primarily due to lack of entrepreneurial spirit. It caused of the lack information about entrepreneurship as the career option in Indonesia. Entrepreneurship education offers a solution. It seeks to prepare students to be responsible, enterprising individuals who become entrepreneurial thinkers by immersing them in real life learning experiences where they can take risks, manage the results, and learn from the outcomes. (Oduwaiye 2005, Kirby 2004, Kyro, 2003). Through entrepreneurship education, students, learn organizational skills, including time management, leadership development and interpersonal skills, all of which are highly transferable skills sought by employers. Other positive outcome according to (Ifedili and Ofeogbu 2011, Hessel and Auke 2008, Akanwa, 2006) include:  improved academic performances, school attendance; and educational attainment  increased problem-solving and decision-making abilities  improved interpersonal relationships, teamwork, money management, and public speaking skills  job readiness  enhanced social psychological development (self-esteem, ego development, selfefficacy), and  perceived improved health status

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THE IMPORTANCE OF ENTREPRENEURSHIP BLENDED LEARNING TO HIGHER EDUCATION CURRICULUM In developing countries, the high unemployment rate of university graduates has become a major issue. United Nations Educational, Scientific and Cultural Organization (2012) pointed out that more than 20 percent of university graduates in Indonesia were unemployed or categorized as the non-labor force in 2009, excluding for those furthering study. If these graduates obtain the necessary skills to start up their own businesses, the unemployment rate will decline and more work-places will be created within the local community, leading to a stimulated local economy and narrowing of social gaps ( Kaneko, 2012 ) Alarmed by the worsening unemployment trend in the country, the Ministry of Education in Indonesia developed a broad based school curriculum for secondary level students to university student. Subjects like trade and entrepreneurship skills have been inputted in the new curriculum in a renewed bid by the government to promote entrepreneurship education among student. Every University has freedom to develop the entrepreneurship program on their curriculum. It has 2 credit points in each semester, but regarding adds the credit point of entrepreneurship program in each semester, the important thing is created the entrepreneurship atmospheres around the student. The reseacher believed that entrepreneurs are not born, they are made and can be made through teaching. Watson,Hogarth-Scott and Wilson’s (1998) and Morrison’s (1999) studies that entrepreneurial spirit needs appropriate social and cultural background to initiate motives for venture creation and aspiration for excellence in various academic areas in order to create successful venture ( Lee et all 2005). Blended learning is one of the options to gain this challenge, entrepreneurship spirit must be created in the students learning activities. The Entrepreneur program blended into all subject of lesson. Therefore, the entrepreneurial skills can be infused in the University curriculum in order to give this generation and other future generations the opportunity to become more successful entrepreneurs. INTEGRATING ENTREPRENEURSHIP SKILLS INTO SPEAKING CLASS Entrepreneurship skills can be integrated into the speaking class by providing speaking tasks and activities that will encourage, stimulate and get students interested in business. Teachers need to identify what can work for students within a particular class level by considering the semester of the students, their interests and abilities, the time they have to devote to entrepreneurial activities, the available fiscal and human resources (i.e, community support, business support). It means, the process of reviewing potential textbook, material and resources, might be designed by the teacher. Brown ( 2007,p.157) citing Cunningsworth (1995) suggests the following criteria as set guidelines : 1. They should correspond to learners’needs 2. They should reflect the uses ( present or future)that learners will make of the language

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3. They should take account of students’ needas learners and should facilitate their learning processess, without dogmatically imposing a rigid methode 4. They should have a clear role as support for learning PROPOSED SPEAKING ACTIVITIES The table below indicates some entrepreneurial skills that should be taught and inculcated in students’ speaking class to make them succeed as entrepreneurs. The following content should be developed by teachers as speaking activities. Care should be taken in simplifying the language of each task to suit the level of pupils or students.

Teacher Instruction Teachers create a speaking activities on self awareness with this content. An entrepreneur must be able to recognize their own strengths and weakness and hire their missing skills within their team. Teachers create a speaking activity on creative thinking. An entrepreneur has to be able to think through the innovative idea and deal with the many variables facing the business – global market, technological change and diverse work force etc. Teacher creates a speaking activity on how students can recognize opportunities and take action on them. Teachers create speaking activity on how students can market their products or services to attract customers to their future business.

Students’ activity Students do the discussion with their friend how to gain the weaknsess and strenghtness in business

Effective Communication

Teachers create a speaking activity that will teach student how to communicate effectively to the consumer.

Students practice communicating to the consumers using some expressions, i.e gratitude, offering something

Art of giving back to the society

Teachers create a speaking activities to demonstrate the art of giving back to others, putting smiles on other peoplee faces. Teach them that successful business provides benefits to more than just its owners.

Students discus the advantages of giving back to the society and how to implement it to the real life.

Entrepreneurial skills Display Self-awareness

Creative Thinking

Recognizing opportunity

Marketing skills i.e selling products and services to customers.

Students create n innovative product and present the strenghtness of the product and persuade their frind to buy this product.

Students brainstorm on possible solutions to identifiable problems/challenges. Students design and write captions for their handbills, posters and bill boards. They also produce and demonstrate jingles for radio.

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THE SAMPLE OF SPEAKING ACTIVITIES To create classroom speaking activities that will develop communicative competence, the teacher need to incorporate a purpose and an information gap and allow for multiple forms of expression. De Porter (2000) stated that organizing the information is really important for achieving the objective of the study. In addition, the teacher need to combine structured output activities, which allow for error correction and increased accuracy, with communicative output activities that give students opportunities to practice language use more freely. Through well-prepared communicative output activities, the teacher can encourage students to experiment and innovate with the language, and create a supportive entrepreneurship atmosphere. This will contribute to their self-confidence as speakers and to their motivation to learn more. There are some samples of speaking activities : 1. Visualize Your Future - Activity All students should have an opportunity to dream about their future while they are still preparing for it. This activity can be used with youth of any age, but will need some modification regarding the number of years from now they are to think about for their future. Procedures: 1. Students will sit with their eyes closed and visualize themselves as a grown person in response to questions asked by the teacher. 2. After visualizing the future students should take 5 - 10 minutes to write down the answers to the "Questions About My Dream". Encourage them to think seriously about their ideas. 3. Now divide the students into groups of about 5 and ask them to compare their ideas about the future. Each group should identify one person to report to the whole class in a summary of what the group as a whole learned in the process of visualizing their futures. 2. Business Start-up Simulation This simulation is designed to involve all participants in the activities of setting up a business. There are tasks for the entire class that will integrate the decisions of the whole business team. This activity is designed to give students a real experience in starting a business while they are learning about the skills and planning their own business. Each business will be expected to make a 20-minute presentation to the "potential investors" in a group session on the last day. This should be seen as a role-playing demonstration of the group presenting their business plan to a real banker or investor. Actually the teachers or community advisors will serve in this role. They should be prepared to ask the business teams some questions about their plans. RECOMMENDATION The key learning lesson is for student to enjoying compete and develop in business and work at getting people interested in their product, and to understand that rewards are in

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the learning experiences and success should be measured in more ways than the money earned. There are some recommendations for the teacher in gaining blended entrepreneurial learning into speaking class : 1. Teachers need to be equipped with the right skills, knowledge and attitudes to relevant pedagogies and learning environments that will help them to acquire entrepreneurial competences. The development of the entrepreneurship competence is not simply a question of knowledge acquisition. Since entrepreneurship education is about developing the ability to act in an entrepreneurial manner, attitude and behaviors are perhaps more important than knowledge about how to run a business. In short, entrepreneurship education means developing a culture for and about entrepreneurship. Such competencies are best acquired through peopleled enquiry and discovery that enable students to turn ideas into action. They are difficult to teach through traditional teaching and learning practices in which the learner tends to be more or less a passive recipient. They require active, learnercentered pedagogies and learning activities that use practical learning opportunities from the real world. Entrepreneurship skills should be taught in all teacher training institutions to prepare teachers to competently teach entrepreneurship skills in higher education. Specialist reading teachers should be trained in teacher training institutions to cope with this new demand. 2. Entrepreneurship skills should be taught as a theme in speaking class at all stages and levels of education. Specific training should be organized for teachers in order to make entrepreneurship education generally available and effective. This will enable teachers to take on a new role in the classroom as “facilitators” of learning. They should use innovative and entrepreneurial methods of teaching to help young people to develop entrepreneurial mindsets and skills. 3. Speaking teachers should show their students the excitement and fun of turning their ideas into successes. 4. Teacher must be varied the speaking activities in the classroom. 5. Curriculum planners should ensure that entrepreneurial skills are included in higher education curriculum. Conclusion Every learner needs to acquire the knowledge and skills of entrepreneurship. Entrepreneurship should be taught in the higher education. Entrepreneurship forces student to think „outside the box‟, create unique solutions and lead others. This will make student has self confidence and self reliance. Teachers should be adequately trained to cope with this new classroom challenge. Therefore, the training of speaking teachers at the higher education is indeed a sine qua non to the effectiveness of entrepreneurship education in Indonesia. Enterprise and entrepreneurship are keys to sustainable growth and development 2014 of the nation’s economy. Hence the entrepreneurial skills needed should be taught across the speaking curriculum for higher Education.

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REFERRENCES Brown, Douglas H. 2007. Teaching By Principles : An Interactive Approach to Language Pedagogy. United States : San Fransisco State University De Porter, Bobbi, Reardon,Mark and Nourie, Sarah Singer. 2000. Quantum Teaching: Orchrestating Student Success. Boston : Allyn and Bacon Hessel, O., Mirjam, C.V., & Auke, I. 2008. The impact of entrepreneurship education on entrepreneurship competencies and intentions. Tinbergan institute discussion paper. Retrieved from http://www.tinbergan.nl. Kaneko, Seiko. 2012. Entrepreneurship Education F or Resolving Inequalities: A Case Study Of Indonesia. Adrressing the Inaqualities Global Thematic Consultation. Retrieved from www. Worldwewant2015.0rg Oduwaiye, R. O. 2005. Entrepreneurship education in Nigerian universities: Implementation and way forward. Retrieved from http://www.google.com/ search. Pardiyono. 2009. Pasti Bisa Teaching Genre Base Speaking.Yogyakarta: Penerbit Andi Ranggana, Angga 2014. Indonesia entrepreneurship http://anggaranggana.wordpress.com

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THE ENTREPRENEURIAL LEADERSHIP IN THE COLLAGE (A CRITICAL REVIEW OF UNIVERSITY’S PREPARATION AHEAD IMPLEMENTATION ERA FREE TRADE IN 2015) Karwanto1 University of Surabaya INDONESIA E-mail: [email protected] ABSTRACT The success of leadership is determined by how a leader can influence and move to empower all available resources to achieve the goal. A leader should integrate his interpersonal skills, knowledge, intuition, inspiration and vision in performing their duties and responsibilities as a leader. A famous writer from New York, Sarah Lacy (2011), in her book Brilliant, Crazy, Cocky, told that we needed a brilliant group of people, a little crazy people, and a bit odd people to increase the development of developing countries. They are humans who think and act out of comfort zone even they think and act out of the box. The educational system in Indonesia has failed to produce independent people who have a good ability aspect and mentality aspect (Mass Media). One of indicators is the majority of graduates from some educational institutions still have oriented to a job seeker, not a job creator. Moreover, the education system has not become a major trigger for the development of human qualities, but it becomes a major contributor to the growing number of unemployed. Consequently, leaders of educational institutions are required to have entrepreneurial leadership and entrepreneurial characteristics, namely using Teknik Jitu (Skilled, work ethic, courage, negotiations, business intuition, and Out-Honestly, Innovators, Diligent, Tenacious) to achieve the goal.

Keywords: entrepreneur leadership, college preparation, the era of free trade in 2015. INTRODUCTION The success of leadership is determined by how a leader can influence and move to empower all available resources to achieve the goal. A leader in a collage is more unique than a leader in other educational institutions is. This uniqueness requires processes and procedures of selection and appointment that fit the characteristics of colleges and a leader characteristic in that collage (Gaffar, 2014). Drucker (Santoso, 2014) explained a leader had to be willing to face the worst situation. When a crisis occurs, the leader must be willing to deal with all the existing reality. He has to do a right way, share that problem to his member, and take action in that situation. The leader should be responsible for what happens to the institution which he leads, because he has the authority and duty to do.

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Human resources are one of progress keys of a nation. The most effective effort to improve human resources is education. PBB determined that education is one of the eight goals that must be achieved in the Millennium Development Goals (MDGs). To answer the purposes are among government, business, academia and other stakeholders need to work together (Swa, 2014). The Enforcement of the ASEAN Economic Community (AEC) has to be prepared well in 2015. Do not let the strategic positions in Indonesia filled by foreigners. We have to be actors and not a spectator in AEC. There are 12 business sectors which is liberalized in the ASEAN Economic Community (AEC). Five of which are related to the products services, which allows the free movement of workers from various countries in ASEAN. Other Seven sectors are related to the import-export trading, including trading agriculture-based products, electronics, fisheries, rubber, textiles, automotive and wood. Five sectors of service products are sectors of air transportation, healthy, tourism, eASEAN, and logistics services (Gatra, 2014). A Main question is how the competitiveness of Indonesian workers is. The second question is what about the readiness of the Indonesian labor is. Based on the results of some research and literature can be explained as follows. First, the demographic bonus (the abundance of populations in the productive age) contributes about 30% to the economic growth of Asian countries, including Indonesia. At the time of the AEC is applied, the number of Indonesian population is estimated at around 255 million people or 43% of the total population of ASEAN. With the demographic dividend being enjoyed now, the population of productive age in Indonesia also dominate ASEAN workforce. Thus, Indonesia is expected to supply potential labors to ASEAN countries, especially to countries which has limited workforces, like Singapore, Malaysia, Brunei Darussalam and Thailand (Gatra, 2014). Noteworthy is that if the quality of the demographic bonus is not good, this abundant productive age will not be absorbed by the market or are not able to compete with the productive age from other countries. Second, Sarah Lacy (2011) told that we needed a brilliant group of people, a little crazy people, and a bit odd people to increase the development of developing countries. These humans are humans who think and act out of the comfort zone satisfied (comfort zone), and think and act out of the box (Tilaar, 2012). Third, according to entrepreneurship expert David Mc-Clelland, a country can be called as a prosperous country if it has entrepreneurs at least 2 percent of the total population. Indonesia only has 0, 24 percent of the total population now. If the total population in Indonesian is about 240 million, the country needs at least 4.2 million entrepreneurs to reach the minimum amount of entrepreneurs from the total population in Indonesia (Noah, 2013). The educational system in Indonesia has failed to produce independent people who have a good ability aspect and mentality aspect (Mass Media). One of indicators is the majority of graduates from some educational institutions still have oriented to a job seeker, not a job creator. (Kompas, 2014).Besides, the education system has not become a major trigger for the development of human qualities, but it becomes a major contributor to the growing number of unemployed. In reality, first, nationwide, as of January 2014, collages which have gotten the accredited institution are only 130 collages among 3,700 from total universities in Indonesia (Jawa Pos, February 17, 2014). There are 415 educational institutions and educational personnel (LPTK), which consist of 12 former Teachers' Training College,

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24 FKIP PTN, and 379 FKIP PTS Of the 3,700 universities (Kompas, March 5, 2014). Second, the number of students from elementary school to university under Kemendikbud data in 2013 can be explained as follows. The number of elementary school students is currently registered 27,583,919; students in the junior high school are 9,425,336; students in the senior high school/ the vocational high school are 8,215,624; and students in the university 5.616.67. It can be seen in the following figure.

Figure 1: Flow of students from The Elementary School Students to The Collage in 2011/2012 Reference: Santoso (2014) A number of junior high school students are currently about 13 million people, and a number of senior high school students are 9 million people (BKKBN). They are scattered around 61,000 and 30,000 junior high schools (Gatra, 2014). It can be understood that the challenge to Indonesia's future is how to access from the junior high school to the senior high school / vocational high school and the senior high school / vocational high school to the collage. Third, based on BPS data, in August 2013, the unemployment rate reached 850 589 intellectuals of the total 7.39 million unemployed (Swa, 2014). The most effective effort to improve human resources is education, because people will get an edit value personal if they get education. Second, the collage needs a leader who has entrepreneurship. An educational thinker in Indonesia, as Ki Hajar Dewantara, has realized that education is the responsibility between family and institutions, societies and institutions, and schools in later times. The process of social change and the forming of public civility may occur optimally only if the three pillars of education to function in a balanced and proportionate with the capacity (Mangunwijaya Forum VII, 2013).

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This paper discussed the key points as follows (a) basic concepts of entrepreneurial leadership; (b) educational leadership; (c) entrepreneurial leadership in collages, include: (1) building the leader who has entrepreneur mindset in collages through learning by using a case study approach and learning by using a real problem solving approach; (2) the collage preparation towards the free trade era AFTA 2015; (3) the role of LPTK. DISCUSSION A. The Basic Concepts of Entrepreneurial LeadershipEntrepreneurial leadership consists of the word “entrepreneurial” and “leadership”. More emphasis on aspects of leadership influence and mobilize others to achieve goals. While entrepreneurship according to Hisrich (Nuh, 2013), is defined as the process of creating something new, something valuable, by utilizing the time and effort, having regard to the risk of social, physical and financial, and receive remuneration in the form of money and personal satisfaction and independence. The characteristics of the entrepreneur can be described as: he has the vision and mission of the business, he is an internal locus control, he is a risk taker, he is not afraid of facing failure , he has high confidence, adaptability, hardworking, persuasive, discipline, energetic, emotional intelligence, social intelligence (Wirawan, 2013). A person who has entrepreneurship mentality is a human who act “JITU” and have “JITU” mentality. “J” is honest. Humans who have hones characteristic are people who brave to act true to themselves, to other, and to god. “I” is an innovator. An entrepreneur must be an innovator because he found something hidden in the vicinity. T is persistence. An entrepreneur is someone who work hard and focus on something that he faces. “U” is resilient. An entrepreneur is someone who is approved, durable, and not easily discouraged. He is very committed to achieve its goals (Tilaar, 2012b). The meaning of an entrepreneurial leadership will explain in this page. First, an entrepreneurial leadership is the process of influencing others by using the characteristics of the entrepreneur to act according to the expected leader (Usman, 2012). The advantage of this leadership is to influence his follower to act like a leader expect. The research found that the characteristics of this leadership that stands abbreviated TEKNIK: Skilled, work ethic, courage, negotiations, business intuitions, and family. Second, an entrepreneurial leadership is the process of influencing others to use the power of creativity and innovation seeks to create and develop goods and services as much and as required by our society (Wirawan, 2013). An entrepreneurial leader can apply various leadership techniques in managing institutions. For example, an entrepreneurial can apply transactional leadership, transformational, situational, and bureaucratic leadership to lead his employee (teachers and educators). An entrepreneurial leader can apply servant leadership to serve his customers also. From the explanation above, we can conclude that an entrepreneurial leadership is the process of influencing, mobilizing and empowering others by using the characteristics of the entrepreneur including “TEKNIK JITU” (skilled, work ethic, courage, negotiations, business intuition, and Out-Honestly, Innovators, Diligent, Tenacious) to achieve the goal.

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The Educational Leadership The leadership concept which is taught by Ki Hajar Dewantara who was born in Yogyakarta, May 2nd 1889 has become the basic of leadership in the “Taman Siswa” School. First, it is Ing Ngarso Sung Tulodho. It means that a leader has to give a good role model to the society, his followers, and his members. The teachers and parents should provide their students and their children with a role model, so students can emulate it both at school and at home. Therefore, their behavior and attitude should be imitated by children and young people generally. Second, it is Ing Madyo Mangun Karso. It means that teachers together with parents do whatever they considered to be good and useful for many people in the midst of building the spirit and initiative, so students and young people can follow and carry out activities and lesson which teachers and parent gave. Third, it is Tut Wuri Handayani. It means that teachers and parents have to give motivation to their students and youth generation to study and work hard (Sujanto, 2012). Based on the philosophy of Pancasila leadership, leadership values are formulated in three phrases, namely: (a) Rumangsa Handarbeni (sense of belonging). The word “Rumangsa” means to feel and to realize. The word "Handarbeni" means to own. In the textual meaning, “Rumangsa Handarbeni” means to feel as his own. In contextual meaning, it means that a leader must be aware of his duties and his responsibilities which must be perceived and recognized as him. Moreover, it is expected that a leader can carry out their duties responsibly and totally (b) Melu Hangrungkebi (sense of participation). The word "Melu" means to come, while "Hangrungkebi" means to protect, to sacrifice, and to defend. It showed that a leader must always be ready to sacrifice and carry out the tasks of leadership with all its challenges and risks. “Go ahead, never turn the left”. (c) Mulat Sarira Hangrasa Wani.“Mulat” means self correction. While "Sarira" means the body or bodies. It means that a leader must look into himself openly about his mistakes which he did (Muladi & Sujatno, 2008). From the explanation above, we can conclude that an educational leadership is a leader’s ability to influence his member, to move and empower all available resources to achieve the goal. A leader should integrate interpersonal skills, knowledge, intuition, inspiration and vision in performing his duties and responsibilities as a leader. The entrepreneurial leadership in the collage 1. Building a leader who has an entrepreneur mindset in the collage. a. Learning by using a case study approach Learning by using a case study approach is very effectively used to increase student’s abilities to solve the problem, to increase their ability to analyze the problem and apply knowledge in their life. Learning by using a case study approach begins from real cases which the perpetrator. Thus, a collage graduate is expected to be a leader who not only have the knowledge, attitudes and skills as a qualified professional, but also have integrity, global perspective, able to answer the challenges of the times and have a social responsibility. b. Learning by using real problem solving approach

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It is essential for leader to interact with the society. Universities are expected to encourage their students to solve the problem in educational institutions, companies or do a real business as part of his studies, so future leaders can do a direct role in their field (Tempo, 2014). An illustration about learning by using problem solving approach on real cases is revealed by SDM (20 years old), as a university student in the official administration department and a secretary in the University of Indonesia, Depok.

The method which applied in my collage needs creativities to solve the problem on the job. I am on the job training at this moment. When I had got a problem in my office, I was not worried to solve it. If I remembered about learning in my collage, I should take some problem solutions to solve that problem. When one of problem solutions has not been succeeded in solving one problem, so that I faced the problem can be resolved by either (Indonesia Mass Media, 20 April 2014). According to MCB (21 years old), a university student in the visual communication design department, STSI Bandung, he explain about learning by using a problem solving approach. In the lecture of design, we are formed as a problem solver. So, we have many viewpoints. We apply creative strategies which we have learned in our collage. The visual result is sharper and more interesting than the visual result before applying creative strategies is. The lectures method in my major can make us sensitive to something and make us critical in giving solutions. This is because they are used to be strengthened sensitivity and imagination which is suitable for the lecture method. As a result, I became more creative in solving the problem than before because of the sensitivity and imagination honed (Indonesian Mass Media, 20 April 2014). 2. The preparation of collage towards the free trade era AFTA 2015 Before implementing the free trade era 2015, Collages need to prepare their graduates not only be a subject who survives to defend from the free competition, but also be able to compete with foreign competitor to be an international player. Indonesian nation needs leaders who have a global perspective because our country will have challenges to face global issues such as climate change, food and energy (Tempo, 2014). According to Santoso (2014), with achievements and capabilities as well as the challenges that exist today, The fundamental question is: we are ready to face the competition in Asia ?. The answer is not yet ready. Unless universities in Indonesia to do the following things: (1) establishing a culture of continuous quality by implementing a system of internal and external quality assurance in higher education; (2) creating an academic atmosphere in the campus; (3) implement the National Qualifications Framework Indonesia (KKNI).

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With achievements and capabilities as well as the challenges that exist today, the fundamental question is what we are ready to face the competition in Asia. The answer is we have not been ready to face the competition in Asia unless universities in Indonesia to do the following things: (1) establishing a culture of continuous quality by implementing a system of internal and external quality assurance in collages; (2) creating an academic atmosphere in collages; (3) implementing the National Qualifications Framework in Indonesia (KKNI). The preparations which universities in Indonesia have to do are (a) Indonesia should prepare quality workforce; (b) Indonesia should increase investment in education or employment aspects (Gatra, 2014); (c) Universities in Indonesia should open double degree program which cooperate with foreign universities, online learning, entrepreneurship, and others which are expected to bring universities in Indonesia to get the regional and international accreditation (Swa, 2013); (d) Universities in Indonesia need to teach their students in their universities eight basic skills including communication skills, skills to think clearly and critically, the moral dimension, becoming an effective citizen, understanding and being tolerant of differences, the ability to live in a globalized society, widespread interest over the life, and readiness to work (Boediono, 2013); (e) Universities in Indonesia should increase the relevance of the curriculum based on society’s needs and existing standards such as the National Qualifications Framework in Indonesia (KKNI) and increase competence and soft skills of graduates; strengthen international atmosphere through student exchange programs, international conferences, apprenticeship or internship, field studies, service learning (community work) internationally; and increase the development of entrepreneurship (Swa, 2014). 3. The role of LPTK There are some aspects which become the success benchmark for universities in Indonesia according to Djoko Santoso, Director General of Higher Education (Swa, 2014). First, what colleges can create competitive graduates; How its accreditation is about; what graduates is compatible with their academic contributions in various aspects such as teaching, publications, research, and so on as well as community service. Thus, what graduates can create jobs that provide employment and so on. If we refer to international rating institution such as QS World, Times Higher Magazine, and others, universities in Indonesia still tend to lose even we compare Indonesia with universities in Malaysia. This can give an opinion that studying abroad is better that studying in Indonesia is, because it is more prestigious. Second, graduates from Indonesia’s universities need to eliminate or erode the character of inferiority. According to Mubarok’s opinion (Nuh, 2013) based on the results of the study of classical Muslim historian, Ibn Khaldun, the 100-year journey of a nation will be born four models of young generation. First, it is groundbreaking generation. They dare to make fundamental

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changes. Second, it is generation of builders. They work systematically and have a plan and measurable goals. Third, it is generation of connoisseurs. They are no longer sensitive to the interests of the nation and the state because they are benefited economically and politically in the power system. They just think how better to enjoy than to work for building. Fourth, it is the apathetic generation. This generation tends to be apathetic. They no longer have an emotional relationship with the state. They can do whatever they like regardless of the fate of the country. About four next generations in Indonesia as described above it can be explained. Although Indonesia has not been 100 years old, the third and fourth generation has emerged. We can see many corruption cases, social unrest, hedonistic generation and others. If a nation has reached the third and fourth generation, the nation will be nearly destroyed. A civilization may collapse because of many materialism life styles, which public authorities and society implement lazy lifestyle that accompanied with attitude extravagance. This attitude not only gives bad effect but also encourages corruption and moral decadence. Furthermore, a nation needs to develop groundbreaking generation and generation of builder to avoid the collapse of the nation. Besides, a nation has to decrease the hedonic generation. One of ways socially to create the expected generation is by education sector (Nuh, 2013).

Leadership is very important to make an organization become successful. In leadership, we need to know about condition and culture which develop in Indonesia. Indonesian society is still feudalistic society which the role of individual leaders is crucial. Indonesia needs many educational leaders in today’s era of decentralization. The leaders must be professional leaders who can achieve national education goals. So, Indonesia needs to give education programs for educational managers. The education managers need to be trained not only by education experts but also by business experts who have experiences in practicing management well and successfully (Tilaar, 2009). To create entrepreneurial leaders, it can be achieved by reforming the Tri Dharma in universities as in the concept of entrepreneurial triangle. The Teaching and Learning by Active and Contextual Method (the lecture and students as entrepreneurs)

Give services to society with using the open opportunities

Research on the resources in the natural environment and culture

Figure 1 Tri Dharma in universities and Entrepreneurial Triangle Reference: Tilaar (2012b)

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CLOSING To build leaders with entrepreneurial mindset, it can be done with some ways, including (a) applying a case study approach and a problem solving approach in learning on a real case; (b) having independence and skills (technical capabilities); (c) the entrepreneurship traditions and the entrepreneurship culture; (d) giving the entrepreneurship values in the educational process (honest, innovators, diligent, tenacious); (e) making a good planning systematically to produce measurable products and to produce a large of valuable products. It is expected that these ways can create entrepreneurial generation who can create jobs and not job seeker generation, because he created jobs including charity. REFERENCES Abbas, Hafid. 2014. Disorientasi Pengelolaan Guru. Kompas. 5 Maret Boediono. 2013. Pendidikan Kunci Pembangunan. Dalam Forum Mangunwijaya VII. 2013. Menyambut Kurikulum 2013. Jakarta: PT Kompas Media Nusantara. Forum Mangunwijaya VII. 2013. Menyambut Kurikulum 2013. Jakarta: PT Kompas Media Nusantara. Gaffar, Mohammad Fakry. 2014. Higher Education Administration: Challenges of Leadership, Policies and Management. Makalah Deklarasi dan Seminar Nasional APMAPI di UPI Bandung. 23-24 Maret Gatra. 2014. Modal Menuju Pasar Bebas ASEAN. 24-30 April. Gatra. 2014. Bonus Demografi Peluang atau Terbuang. 24-30 April. Jawa Pos, 17 Februari 2014. Akreditasi: Deadline Sulit Terpenuhi. Kompas. 2014. Manusia Mandiri Gagal Dihasilkan: Pemimpin Mendatang Diminta Fokus Bangun SDM. 6 Mei. Media Indonesia. 2014. Mengasah Jiwa Technopreneur Lewat BYTe. 20 April. Muladi & Sujatno, Adi. 2008. Traktat Etis: Kepemimpinan Nasional. Jakarta: RMBooks. Nuh, Mohammad. 2013. Menyemai Kreator Peradaban: Reungan tentang Pendidikan, Agama dan Budaya. Jakarta: Zaman. Santoso, Tanadi. 2014. Wisdom dari Pemikir Manajemen Terbesar. Swa. Vol. XXX. 10-23 April. Santoso, Djoko. 2014. Paradigma Baru Pendidikan Tinggi Menyongsong Era Asia. Makalah Deklarasi dan Seminar Nasional APMAPI di UPI Bandung. 23-24 Maret Sujanto, Bedjo. 2012. Membangun Karakter Bangsa Melalui Penerapan Manajemen Berbasis Sekolah. Makalah Konaspi VII. Yogyakarta: UNY. 31 Oktober-3 November.

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Suwignyo, Agus. 2013. Arah Pembangunan, Kunci Reformasi Pendidikan. Dalam Forum Mangunwijaya VII. 2013. Menyambut Kurikulum 2013. Jakarta: PT Kompas Media Nusantara. Swa. 2014. Jurus Perguruan Tinggi dalam Melahirkan Sumber Daya Manusia yang Unggul. 10-23 April. Tempo. 2014. Komitmen Menumbuhkan Pemimpin Berwawasan Global. 31 Maret-6 April. Tilaar, H.A.R. 2009. Kekuasaan dan Pendidikan: Manajemen Pendidikan Nasional dalam Pusaran Kekuasaan. Jakarta: PT Rineka Cipta Tilaar, H.A.R. 2012. Pengembangan Kreativitas dan Entrepreneurship dalam Pendidikan Nasional. Jakarta: PT Kompas Media Nusantara. Tilaar, H.A.R. 2012b. Kaleidoskop Pendidikan Nasional. Jakarta: PT Kompas Media Nusantara. Usman, Husaini. 2012. Kepemimpinan Pendidikan Kejuruan. Yogyakarta: UNY Press. Wirawan. 2013. Kepemimpinan: Teori, Psikologi, Perilaku Organisasi, Aplikasi dan Penelitian (Contoh Aplikasi untuk Kepemimpinan Wanita, Organisasi Bisnis, Pendidikan dan Militer). Jakarta: PT Raja Grafindo Persada

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THE DISTRIBUTION OF GOODS AND SERVICES IN INDONESIA THROUGH THE HARBOUR Herman Sasono1 Universitas Widya Kartika Surabaya INDONESIA ABSTRACT Port is the place which consist of land and waters with it boundary as government place and economic activity which used for the ship to lean, anchor, as a transportation or loading and unloading of goods which completed with its shipping safety facility and supporting port facility. Port also as the county’s way to come and go to other place and it also the way to export and import; passengers’ flow of foreign and domestic or inter-island passenger. In other side, port also becomes the terminal of the out flows of the trucks both inter local and also inter land. All of the flows of course cannot be handled by only one stakeholder, but for the flows will be handled by government or private organization. In detail, the flows of goods’ export and import both physics and the documents must be corrected in its administrative, legality, and its truth, furthermore it will be counted the cost of the tax paid by the entrepreneur of export and import business to the perception bank of the country.

Keywords: Industries In Harbour Area, Various Services, Types of Harbour, The Flow of Export Import

INTRODUCTION The flows of the ships including inter local ships is handled by Master of Harbour. When the ships containing export and import goods from other countries which will enter the harbour, so in the outer area of the harbour, the ships must land or halt orderly through the pool harbour to wait their turns to go overseas. Before the permission is distributed by the office of Master of Harbour, the owner of the ships must show the documents or certificate to protect those ships in passing the other harbours. Remembering that Nusantara stands from about 13.000 lands, it can be understood that the function of the transportation is as the link to connect one land to others. This transportation is used for getting the baggage and passengers inter insular. Then, this transportation will contain the accommodation goods which are many in quantity but cheap in cost. Therefore, the delay of the schedule of the container ships arriving from Surabaya to other land, such as containing rice, cement, flour, sugar, and so on will cause the extinct effect of the commodity goods. As the result, the prices will increase fast and inflation becomes higher. For the broad trade, especially export and import, the flows of the goods and service to other countries, both bilateral and multilateral, the professional stakeholders depends on

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the baggage industries. The speed, accuracy, professionalism, and also heavy equipment, such as forklift, top loader, suction, land and seas crane, and also the potency is very necessary to make the increasing of the system and equipment of the international seas transportation in balance. The activity or volume of baggage business, is hoped to be increased to hold the life of industries, decided by the frequency of the ships come and go, both the foreigner and also domestic ships as well as citizens’ ships. In other words, that thing depends on the volume of the baggage to be exported and imported in general. For Indonesia, the export of goods and services can be the source of devise to fulfil the Country Devise, as well as the devise of international certificate, infestations, and so on. This only works if the entrepreneurs have great nationalism to bring back to Indonesia the devise of the transaction and do not save it in the other countries’ banks. The function of export is so dominant for the riel or industrial sector in the country. The de facto states the existence of the factories in Indonesia depends on the flows of the goods export import. This one has been proved factually when the monetary crisis happened in 1997 for some years. This happens since foreign banks did not trust the Letter Of Credit of Indonesia. As the result, MOU or sales contract which is legal by both sides, which are exporter from other countries and importer of Indonesia, cannot be realized. The flows then become decreased makes the goods extinct and expensive. Moreover, the factories are closed because of bankrupt. According to the report of the year of Indonesia Bank, the inflation in 1998 was rising, in the end of 1997 for about 11, 05%, March 1998 became 25, 13%, June became 48, 55%, September 1998 became 75, 47%, and December became 77, 63%. Specifically, the international trade or export import becomes the most important aspect in the country economy. Nowadays, there is none of countries do not do the international transaction to other countries. The economy of each country practically opened and connected with the international countries. Understanding the export and import professionalism is not only aimed to control the increase of the country trade, but also necessary to the manner of form and characteristics of international trades. The trade using the overseas transportation media is one of important sectors in the economy of each country as well as the development of the technology nowadays, such as internet. This facility offers the professional efforts of export and import which is aimed to distribute the products to the world. Not only needed this, consumer will also available to catch the information of the products easily. In other sides, the development of the transportation makes the mobility of the goods and capital grows fast, so the flows of the trade are rising. The international trade, especially export and import, is defined as the trade of goods and services through the area of the countries. This is so because the source is quite limited. This is why the country needs to have a connection to other countries to fulfil this limited source needed. Import becomes the alternative way to provide the goods which cannot be produced or can be produced in the country, but it is inefficient and ineffective, so the cost is high but the quality is low. The import commodity is such as aluminium, industrial goods, onions, plastic, machines, cars/trucks, and so on. The connection between the flows of export import with the various business and aspects in the country cannot be separated from the existence of Baggage Industries which takes the responsibility to do the export import business on the ships in the seas

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harbour generally as well as the other domestic harbours. In doing the job, the professionalism of export import is not decided by the qualification/quantification of the industries their selves. Now, let us jump to the deeper explanation about this topic. INDUSTRIES IN HARBOUR AREA Every harbour which serves both the foreign and local ships must have industrial segments, such as: 1. Main facilities, including harbour pool functioned for the ships to halt and wait for their turn to go overseas, the addition facility to make the ships rest so their crane can be moved to left and right easily reach up to the quay, and also the quay facility which makes the ships to be in and out of the baggage quickly. 2. The ships’ service, including the guide, it means to guide or pull the ships on every movement in the watery harbour, starts from when the ships are at the outer of the harbour and being pushed on its way to avoid the risks, and also to pull the ships from the pool to the harbour. As well s this guide, they also serve to drive the ships to turn left or right in super quick way. The last is the service to adjust the tamper of the ships to the quay’s stall in order to avoid the ships from moving out of control so the workers do not get disturbed in treating the baggage. 3. The baggage service can be done in the store room or baggage field. The baggage which needs to be out of water are placed to the store room, such as corn, textile, machines, spare parts, flour, rice, and so on. Meanwhile, for the baggage which is okay to befriend with water, such as wood, oil, oil in the drum, coconut tree, and so on are placed in the field of baggage. 4. Legal field rent, where on the field, the renter can build office, factory, or even huge LPG tube of PT. PERTAMINA. Even, it is also familiar for the industrialists to do the expansion and enlarge the factory’s area till far away near the seas, but still in the legal status. It means that for every period, the renter must pay for the stakeholder of the harbour. The harbour also rents the buildings to be the office, sell healthy water and electricity for the ships logistic and also the civil near the harbour. 5. Other industrial segment, such as harbour sell for the workers in the area of harbour including EMKL employers, ticket at the harbour posts, rent of heavy equipment, and other else. VARIOUS SERVICES PROVIDED IN THE HARBOUR The harbour’s profitable business is also including providing the services needed by factories and industries in the harbour area, such as: 1. The existence of irrigation and pool of harbour in order to help the traffic way of ships in order, where in periodic way in irrigation and pool, there is always dragging activity to avoid the irrigation drying, to clean it, and so on. 2. The service of guiding and delaying to keep the safety of the ships in doing the movement in the harbour area. 3. Providing the store rooms for the ships to place the baggage to make exportimport and inter insular can place their baggage while waiting for the ships come to export or waiting for the fiat document out from taxation of the baggage.

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4. Providing the quay as the ships halt as well as treating the baggage to be in and out by preparing the workers in the team of TKBMI, and also electric equipment such as forklift, top loader, land crane, ships sling, lorry, and so on, including providing the facilities for the passengers to get in or out of the ships. 5. Providing the clean healthy mineral water, especially for the ships’ logistic as well as the public in the harbour civilization, providing the electricity for the baggage in the quay and Lini Store Room 1 can be stand in 24 hours, providing the fire fighting cars to avoid the fire both on the field and in the ships. 6. Providing fields and buildings to help the seas transportations and hinterland industrial needs in the harbour. 7. Harbour information system. 8. And also other segment of industries to reach the business goal. In short discussion, the harbour can be defined as the place where the ships take a rest or wait for going overseas, to fulfil the transportation needs in passengers, and also baggage to be well in order. TYPES OF HARBOUR These are the various types of the harbour:  Public harbour: the harbour provided for serving the public business and needs. Example: Surabaya Tanjung Perak Harbour  Profitable harbour: the harbour provided for serving the personal business and needs. Example: Gresik Petrokimia Harbour, Semen harbour, etc.  Seas harbour: the harbour where the ships can halt, regulated by government. Example: Surabaya Tanjung Perak harbour, Jakarta Tanjung Priok, etc.  Beach harbour: the harbour where the ships can halt, which not included in the category of seas harbour. Example: Malang Sindang Biru Harbour, West Java Ratu Harbour.  Undercontrol harbour: the harbour where the government controls this based on the regulation made for the increase of industries. Example: Surabaya Tanjung Perak harbour, Jakarta Tanjung Priok, etc.  Uncontrolled harbour: the harbour which are also controlled by the government but do not reach the industrial goal. Example: Nusa Barung Harbour, Sindang Biru Harbour, Sepekan Harbour.  Classy harbour (class I, II, and so on): the harbour is differentiated based on the needs and its frequency of the get in and out of the baggage activity in the harbour. Example: Jakarta Tanjung Priok Class I Harbour, Surabaya Tanjung Perak Class I Harbour, Semarang Emas Class I Harbour, etc. FORBIDDEN THINGS TO DO IN HARBOUR 1. It is forbidden to make the harbour dirty by throwing the trashes to avoid the pollution of water, air, and so on. 2. It is forbidden to do the reconstruction on the ship illegally without the permission of Harbour Master.

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3. It is forbidden to do the repairing on the ship illegally without the permission of Harbour Master. 4. It is forbidden to get the dangerous baggage in or out illegally without the permission of Harbour Master. 5. It is forbidden to disobey the transportation’s way of shipping. 6. It is forbidden to get closer to other ships which are moving. 7. It is forbidden to land 200 meters from Pilot Station Vessel or even in the distance of 100 meters from traffic or buoy. THINGS MUST BE DONE IN THE HARBOUR: 1. The ships must always be kept; it means that there is the legislation system on the ships. 2. The ships must be well in lighting. 3. If the ships are doing place shifting, it is a must to ask the permission legally from Harbour Master. 4. If there is something great happens, it is a must to report it to the Harbour Master, for example when the ship is on fire. 5. If the ships are on fire, it is a must for the ships to get out of the harbour as soon as possible to avoid the worse fire area. Meanwhile, the responsibility for the owner of the ships on their over boarded ships in the harbour are such as: 1. On the surface of the water right where the ships are over boarded, there must be enough lightening. 2. The parts of the over boarded ships must be taken out of the water to avoid the activities in the harbour get disturbed. SEVERAL KINDS OF FLOWS PASSING THE HARBOUR: A harbour of the seas is also the alternative to get in or out by some flows. The several kinds of flows passing the harbour such as baggage flows or export import local commodities; abroad or overseas or even domestic flows; made by zinc or even wood; service flows for domestic and other country, documents flows, both export import or even ships’ documents, documents of passengers and workers; devise flows, it means that it is the tool of barter to foreign countries, such as Us Dollar, Poundsterlling, Yen, Dutch Mark, and also including gold, silver, platinum; land transportation flows such as container trucks, trucks of liquid, ankle trucks, double trucks, LPG trucks, and so on; and also animals flows, plants flow, virus or bacteria flows. These whole things will be explained in the next discussion. THE FLOW OF SHIP (DEAD WEIGHT SHIP’S CALL) Ship’s flow or dead weight ship’s call in this context is ships which stop in a port, whether foreign-flagged ship that comes and goes from and to various countries in all over the world, or national-flagged vessels whether liner which wades the overseas route, and domestic’s ship that serves domestic route whether inter-island or intercity, and also citizen’s cruise ships that is ship that have length around 20-30 meter and width 8-14 meter, made from wind-powered woods when the sail blooms on high seas and helped by motor machine which used when the sail rolled when the ship

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approaches the port for tethered or when the ship departed from the tether to go to the high seas. The ocean port typically provides its own tether – departed from tether/dock which reserved for ocean ships or domestic ship that made from iron – for citizen’s cruise ships. These wooden ships are fragile if collided or crashed with iron ship. Yet in various archipelago countries/ maritime countries, these wooden ships still strongly needed. In Indonesia, this wooden ship is very vital to transport daily needs goods and various consumer goods, especially for reach isolated islands which only have pioneering port or emergency port from woods or pile of stones and soil or breasting dolphin that protrudes into the sea, which is provided just for wooden ships in order to can load and unload the goods and passengers. In this pioneering port, vessels are not allowed to load and unload the goods and passengers, even though load and unload the goods technically can be done by lightering (load and unload by barge in the middle of the sea), since apparatus of custom, Master of Harbour, and other agencies are not available. This kind of condition is potentially prone to smuggling (illegal activities). Vessels which directly comes from foreign country have to lean and load and unload in ocean ports that already provided by the country. THE FLOW OF EXPORT, IMPORT, INTER-ISLAND, AND SERVICES’S GOODS The flow of export, import, inter-island, and services includes export-import goods and inter-island goods, included goods for logistic need of ship. The export goods includes all of export commodity which comes from towns and villages around the port in broader scale, products which comes from all province that sold and ordered in international market and delivered through the port and in the end passed the border of port state. The import goods is goods that comes from various countries passed the border of state’s customs area, then enter to port’s area and enter to domestic market after passed goods’ customs process. Whereas what is meant by inter-island goods or inter insular is goods which delivered from one city to another city or from one island to another island, but still in a same customs area so that this flow of inter-island goods considered as same as the flow of inter cities goods that located in a same island. Therefore, it is not necessary for the flow of inter-island goods to make customs report in the port of departure or port of destination. Yet, the flows of animals and plants have to pass rigorous examination by animal quarantine officers and plant quarantine when departs from port of departure and arrives at port of destination. This absolutely needs to be implemented in order to prevent/ anticipate the spread of animal and plant viruses/ bacteria from one city to another city or one island to another island in a country. Sea port also be the exit and entry gate of service’s flow which includes tourism, that is tourists, both foreign and domestic, that can bring in US Dollar and another foreign currency. By the flow of ship’s service, foreign vessel and national, vessel freight/ ship’s mine costs can bring in US Dollar (if the condition CIF) and also can spend US Dollar (if the price condition FOB). Insurance cargo ships (Marine Cargo Insurances) also can bring in US Dollar if insured to national insurance agency and can spend US Dollar if insured to foreign insurance agency in overseas, and the other service’s flow.

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THE FLOW OF FOREIGN EXCHANGE/ FOREIGN PAYMENT TOOLS Foreign exchange as international payment tools that used for export-import realization much needed in various transactions or activity in port, among others payment of money flow, anchoring fee, guide fee, delay fee, berthing fee, and other purposes. Foreign-flagged ships have to pay in form of foreign currencies hard currencies (hard currency), which are US Dollar and Poundsterling. The passengers of luxurious ships who step down to the land and go shopping to the town also spend and pay various transactions in foreign currency, such as US Dollar, Poundsterling, and the others. In many sea ports there are also many foreign banks at the port’s land area. Those foreign banks have function to serve the payment of various purposes of export-import. And of course foreign bank will receive the payment of export transaction from foreign importers in foreign currency, and vice versa. Thus, the port can be said as the doorway of the foreign exchange’s flow. THE FLOW OF PASSENGER AND SHIP’S CREW Every sea port definitely already sort any ports which is used to load and unload General Cargo’s goods; which port to load and unload container; which port that used for society’s cruise ships; which port which load and unload goods that potentially make the port dirty, like bulk coal, bulk molasses, bulk cement, and the others; which port which is used for load and unload gas canister (LPG), bulk crude oil; and which is also important is which port that determined for the go up and down of the ship’s passenger, both passengers that directly comes from overseas or domestic passengers. The flow of passenger also significant enough and have to get special service since this passenger’s flow is human who can do a protest, claim, or become angry and emotional if get inappropriate treatment or less satisfactory. This is very different from goods charge and animal which quiet and comply to entire service and the port party’s treatment. The flow of passenger also potentially be the modes of virus/ bacteria carrier and potentially do various illegal activities. Therefore, they have to anticipate with the activity of health service from port health center (PHC)’s party and the activity of immigration party and customs duty’s party, and also the other apparatus agency. THE FLOW OF DOCUMENT, GOODS, SHIP, PASSENGER, AND SAILOR’S DOCUMENT Every export and import commodity, even every ship and passenger/ tourist, have to be protected by document. In the flow of import commodity, the goods that will be enter and loaded and unloaded in port have to be protected by customs’ documents in order to be served and accepted by customs duty party. That documents such as: original bill of lading, original perform invoice, original invoice, certificate of weight, certificate of quality, certificate of origin, packing list, phytosanitary certificate, insurance policy, and the others. The document which ordered by importers is already included in Letter of Credit. The importers also have to make PIB report to customs duty. For the flow of export commodity, exporters’ party has to protect their goods with various documents, such as: make PEB to be reported to customs duty and published various documents, like preformed invoice, packing list, and bank note. Whereas the certificate of origin’s document ordered and published by RI’s Industry Department in

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province level; phytosanitary certificate is ordered and published by quarantine hall of plants/ animal, original bill of lading is ordered and published by shipping company representative agent, and certificate of quality published by PT. Sucofindo. Ships that passing at the port have to protect their ship with various document in order to make the ship allowed to enter the port’s pool and permitted to load and unload goods or passenger in sea ports and those documents such as: certificate of registry, international tonnage certificate, international ro ro, international load line exemption certificate, minimum safe manning document, certificate, cargo ship safety equipment certificate, document of compliance, dangerous good manifest, international pollution prevention certificate the naxirus liquid substance in bulk, certificate of fitness for the carriage of dangerous chemical in bulk, international certificate of fitness for the carriage of liquefied gases in bulk, certificate of fitness for the carriage of liquefied gases in bulk, international certificate of fitness for the carriage of liquefied gases in bulk, ISPS certificate (International Ship and Port Security), ISM certificate (International Safety Management). Ship’s captain also has to protect the export commodity at the ship’s hatch, which that ship consists of various kinds of goods and owned by many owners. Then with the document called cargo manifest that published by shipping company or representative agent, and custom manifest document which published by customs duty’s party in port, in every port that visited, the quantity of ship’s cargo will be definitely changed. This is caused by goods which unloaded/ derived and goods that raised/ loaded so that the customs duty’s party in the visited port will definitely published custom manifest. The passengers who go up and down the ship in a port also have to protect their selves with passport, visa, letter of health, and others. Whereas for the ship’s crew or sailor who go up and down the ship towards the town have to complement their selves with various documents, like having marine employment agreement (Perjanjian Kerja Laut/ PKL) with shipping company, sailor’s book, nautical experts certificate for basic level (sertifikat Ahli Nautika Tingkat Dasar/ ANTD) or technique experts for basic level (Ahli Teknika Tingkat Dasar/ ATTD). THE FLOW OF INTERCITY SHORE TRANSPORTATION / PROVINCE The Flow of Intercity Shore Transportation / Province is export commodity which comes from towns or villages outside port with varied distance, that have to be carried by the truck fleet in order to make the commodity can be backfilled in Lines Warehouse I (Gudang Lini I) in port which pointed where the freighter (Ships Carrier) will lean for load and unload the export-import commodity. Then one day before the D-day or ETA day (Expected To Arrive) all of export commodity’s cargo must already buried in Lines Warehouse I. Of course, the role of truck fleet is very important in order to make the commodity can arrive at Lines Warehouse I on time. Likewise for import commodity, after dismantled above the ship and buried in the Lines Warehouses I or in the yard of Lines Warehouse I, after the maintenance process of the document finished with marked by agreement to release the commodity from the head of local customs duty, then, as soon as possible, those import commodities carried out by using truck fleet from customs area to the warehouses of the commodity’s owner. There are around 6,000 – 10,000 units of trucks that operated in sea port from various kinds, whether it is ankle truck, double truck, truck-trailer, Singaporean truck, truck that

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especially designed for container, and the others, which coordinated by local Organda (for example: in Surabaya called Organda Perak, whereas in Jakarta called Organda Priuk, and so on). THE FLOW OF ANIMAL AND ANIMAL PRODUCTS Harbor is not only the exit and the entrance way for things and human, but also for animal, such as cows, buffalos, horses, goats, chickens, pigs, and so forth. Besides that, there are the way of animal products such as beef, chicken, pork, mutton, and other animal products such as shuttlecocks, leather bags, leather belts, leather shoes, leather wallets, and so forth. There are many kinds of food products from animal in package from plastic, cans, chests, like exporting dried geckos to Korea and Taiwan for the main ingredient of itching medicine, exporting porcupine jerky, and snakes for pharmacy factories in Korea, Japan, and Taiwan. THE FLOW OF PLANTS AND PLANTS PRODUCTS Many kinds of plants, in seeds / trees form, also through harbor such as coffee seeds, grape seeds, and many kinds of plants from abroad and for exporting to many countries. There are many kinds of plants products such as seeds, like wheat seeds that is imported by flour factories in Indonesia as the main ingredient for wheat flour. Of course the ship that comes with thousand tons of wheat seeds with possibility contains insects, fleas, and active insect eggs in large numbers. If Department of Plants Quarantine does not inspect carefully, the fleas can fly and multiply in the jungles and threaten rice in the country. So does in importing other seeds, like soy, corns, and so forth must be treated in same way. The flow of export grade plant and flow of local plant products that go through harbor must be checked thoroughly by Department of Plants Quarantine. THE FLOW OF VIRUS, BACTERIA, FLEAS, INSECTS, AND SO FORTH The traffic of animal, human, and plant have potential carrying many times of virus. For instance, in past decade human traffic or passengers from ships and planes from Hongkong brought fearful “souvenirs”, such as flu Hongkong virus / bacteria. The flow from many countries also have potential bringing dangerous “souvenirs” and spread easily to the livestock in the country and also have potential for human. Pet importing such as cats, dogs, and monkeys from abroad, which are liked by rich men, also have potential bringing virus / bacteria. Besides that, importing chickens and birds from abroad also have potential. Department of Plants Quarantine has responsibility to anticipate the virus / bacteria that come from plants and plants products. Department of Plants Quarantine has to anticipate the virus / bacteria come from animal and animal products. Then, virus / bacteria in human is anticipated by Porth Health Center or hospitals in harbor. As mentioned above, the flow of plants through harbor can bring disaster for farmers. For instance, importing seeds such as wheat, corns, and soy. When they arrive, ships often bring many alive fleas or insects or active insects eggs. It can be happened. When the seeds are in the seeds, the ships have been fumigated and the insects has been died. However, the eggs is still alive. When the ships go from America to Indonesia around thirty one days, the eggs crack and eat the seeds and become adult.

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Imagine if the members of the department are careless and having weak mentality. The seeds will be taken apart by suction units, then they will be flown through lopen deban to the warehouse. The result is the insects are free flying, spreading, and multiplying around the country. This causes the new fleas that have potential to break the harvest day in the country. CONCLUSION Remembering that Indonesia is the country of maritime, or the country with thousand lands, then the transportation which can connect one land to others and to distribute the goods and services, is by the overseas transportation which is absolutely through the seas harbor.

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BUSINESS TOURISTS’ LOYALTY TO TOURIST DESTINATIONS Martaleni1 Gajayana University of Malang INDONESIA E-mails: [email protected]

ABSTRACT This study aims at examining and analysing the correlation between the strength of destination image as well as business tourists’ satisfaction and loyalty. The correlations constitute direct correlation between the former and the latter; and indirect one between the image and loyalty, requiring the presence of satisfaction. To solve research problems addressed in this study, quantitative approach was implemented. The research sample was business tourists conducting meetings, incentives, conventions, and exhibitions (MICE) in greater Malang, Indonesia. Seventy three business organisations were selected as the data sources. The data were collected for three months and were then analysed using descriptive and inferential statistics. The findings show that high destination image can directly increase business tourists’ loyalty. Similarly, indirect correlation between destination image and business tourists’ loyalty requiring the presence of satisfaction shows a positive effect.

Keywords: Tourists’ Loyalty, Destination Image, Tourists’ Satisfaction, Business Tourists

INTRODUCTION Because of flight regulations, technology sophistication, e-commerce existence, and demographic changes, travelling and tourism that increase a nation’s foreign exchange grow rapidly and help provide new employment (Mak, 2004). Tourism is one of the strategic industries gaining a lot of national and international attention. In Indonesia, tourism development gets a strong support from the government. This is proved by the issuance of law on tourism numbered ten in 2009. Tourism does not only generate foreign exchange but also functions as an agent of development and a means of unity. In line with the target of tourism growth in Indonesia which keeps increasing every year, regional governments of individual province have set many integrated tourism resorts. The next tourism pattern is that tourists will travel in a new way. Participants of MICE will bring their family (spouse and children) because their business trip is combined with family holiday. Because of this, most of them will extend their stay at the MICE site (Yoeti, 2006). Greater Malang which includes Malang county, Malang regency, and Batu county, is part of Indonesia. Therefore, local governments of the counties and regency have to improve roles of local tourism, so that they can contribute to the development of greater

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Malang as well as Indonesia. In addition, greater Malang is known as an education city offering cool climate and less costly tourism (Martaleni, 2011). Actually, natural resources of greater Malang can very much support tourism growth. However, a maximum attempt to accelerate economy growth via tourism there has not yet been done. Such attempts could include the improvement of tourists’ satisfaction and loyalty as well as the creation of positive destination image. Destination image constitutes tourists’ belief in and impression towards a tourist destination. This can bring positive effects on satisfaction (Chi and Qu, 2008; Hankinson, 2005). Tourists’ satisfaction and high destination image can bring positive effects on loyalty (Brunner et al, 2006; Chen and Chen, 2010; Faulant et al, 2008; Hankinson, 2005; Ibrahim and Gill, 2005; Kandampully and Hu, 2007; Martaleni, 2011). From the above-mentioned studies, it is obvious that research on the correlation between destination image as well as tourists’ satisfaction and tourists’ loyalty has widely been conducted. However, little has been done to examine the roles of image and consumers’ satisfaction towards business tourists’ loyalty. Based on the background of the study and the existing problems, the purpose of this study is to: 1. examine the correlation between the strength of destination image and tourists’ satisfaction, 2. examine the correlation between the strength of destination image and tourists’ loyalty, 3. examine the correlation between the strength of tourists’ satisfaction and tourists’ loyalty, 4. examine the indirect correlation between the strength of destination image and tourists’ loyalty which requires the presence of satisfaction. Based on the review of theories and empirical studies, a conceptual framework showing structural connections among variables can be seen in Chart 1 below.

Figure 1: Conceptual framework of the study RESEARCH HYPOTHESES Hypotheses tested in the present study formulated based on the review of theories and empirical studies are: 1. H1: The higher the destination image, the higher the tourists’ satisfaction.

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2. H2: The higher the destination image, the higher the tourists’ loyalty. 3. H3: The higher the tourists’ satisfaction, the higher the tourists’ loyalty. 4. H4: The higher the destination image – requiring the presence of tourists’ satisfaction – the higher the tourists’ loyalty. RESEARCH METHODOLOGY To solve research problems addressed in this study, quantitative approach was implemented. It helped the study reach the research purpose, i.e. to prove the effects of destination image and tourists’ satisfaction on tourists’ loyalty, and to provide a basis for decisions made by relevant parties (Creswell, 2009; Malhotra, 2005). This empirical study was carried out at tourist destination of greater Malang which includes Malang county, Malang regency, and Batu county. The choice of this research site was made in order to obtain more comprehensive information on tourists’ perceptions towards greater Malang, remembering that it was also the research site of previous studies. In addition, greater Malang is one of the main tourist destinations in East Java which has attractive profiles for its beautiful natural views and cool climate (Martaleni, 2011). Research sample of this study was domestic business tourists coming from outside greater Malang who conduct MICE there. To ensure the coverage of experience and perception, data were collected through purposive sampling. Thus, our decision was used as the basis for ensuring that the sample included managers or event leaders of the organisations: large corporations, professional bodies, business event agents, or other business organisations. All in all, 73 business organisations were selected as the data sources. Data were collected for three months (February-April 2012). There were two types of data source: primary and secondary. The data were collected through questionnaires which contained close-ended questions. To answer the questions, respondents were required to choose one option best suiting their opinion. The answers were quantified and measured using a five-point Likert-scale, spaning from ‘totally disagree’ to ‘absolutely agree’. Respondents were also interviewed. The interviews were carried out to clarify certain matters and the outcomes would facilitate the discussion of the quantitative results. Each interview took about 45 minutes. Two data analytical techniques were implemented: descriptive and inferential statistics. Descriptive statistics was used to describe each respondent’s characteristics, whereas the inferential one – the Partial Least Square (PLS) – was used to examine the effects of destination image as well as tourists’ satisfaction on tourists’ loyalty. FINDINGS Tests for Research Instruments Validity and reliability of the research instruments were tested. Pearson test was run to ensure the validity, i.e. between the individual and whole items. Test results for validity of destination image (X1), tourists’ satisfaction (X2), and tourists’ loyalty (Y) show that all correlation values of all dimensions and items are above 0.3. Therefore, all the dimensions and question items for all the variables are valid. The results of reliability test show that the alpha coefficient is above 0.60 indicating that all the variables are reliable. Thus the instruments used to collect data for all variables are valid and reliable.

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Goodness of Fit Test to Measurement Model (Outer Model) Goodness of fit test to outer model for each variable which uses reflective indicator is basically the measurement of convergent validity, discriminant validity, and composite reliability. The test results meet the requirements of convergent validity, and all the constructs meet the criteria of discriminant validity and composite reliability. Goodness of Fit Test to Structural Model (Inner Model) Goodness of fit test uses predictive-relevance (Q²) value. The test results show that the predictive-relevance value is 0.7704 or 77.04% indicating that the model has predictive value which is relevant. The value of predictive-relevant which is 77.04% indicates that the heterogeneity of data that can be explained by the model is 77.04%. In other words, 77.04% of information inside the research data can be explained using the model. The remaining amount, 22.96%, is explained by other variables which are not included in the model and by errors. Based on this value, 77.04%, the resulted PLS model is good enough because it can explain 77.04% of the information. DESCRIPTION OF RESEARCH VARIABLES The description of each variable in this study is presented in the form of frequency and percentage of participants’ responses as well as interpretation criteria for score average. This average is classified into five: (1) very low (the average of 1.00-1.80), (2) low (1.81-2.60), (3) medium (2.61-3.40), (4) high (3.41-4.20), and (5) very high (4.21-5.00). The Variable of Destination Image (X1) This variable has three dimensions: attractiveness (X1.1), emotional benefit (X1.2), and functional benefit (X1.3). The score average for the overall dimension of attractiveness is very high, 4.21, and of emotional and functional benefits is high, 4.12 and 3.93 respectively. This means that tourists valued the dimension of functional benefits high. The score average for the overall variable of destination image is 4.09 which lies on the criteria of ‘high’. This means that participants valued the variable of destination image high. The Variable of Tourists’ Satisfaction (X2) This variable contains three indicators: overall satisfaction for attractiveness (X2.1), overall satisfaction for emotional benefits (X2.2), and overall satisfaction for functional benefits (X2.3). The score average for tourists’ overall satisfaction is 3.93 for destination attractiveness, 3.75 for emotional benefits, and 3.68 for functional benefits. The score average for the overall consumers’ satisfaction variable, 3.79, lies on the criteria of ‘high’. This means that the participants were highly satisfied for the tourist destination. The Variable of Tourists’ Loyalty (Y) This variable has three indicators: intension to revisit (Y1), recommendation to visit (Y2), and bringing others to visit (Y3). The score average for the ‘intention to revisit’ is 4.15; the ‘recommendation to visit’, 4.25; and the ‘bringing others to visit’, 4.21. Thus, the score average for the overall tourists’ loyalty variable is 4.20, and this lies on the criteria of ‘high’. This means that participants had high loyalty to the destination.

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RESULTS OF HYPOTHESES TESTING Testing inner model (structural model) is basically testing research hypotheses. The hypotheses testing in this study was done using t-test for each partial direct influence. The results are presented in Table 1 below. Table 1 The results of hypotheses testing within Inner Model: Direct Influence Independent Variable Destination image (X1) Destination image (X1) Tourists’ satisfaction (X2)

Dependent Variable Tourists’ satisfaction (X2) Tourists’ loyalty (Y1) Tourists’ loyalty (Y1)

Coefficient 0.701 0.450 0.351

T-statistics 11.119 4.746 4.394

p-value 0.000* 0.000* 0.000*

Source: Data were analysed in 2012 Note: * indicates significance at 5% The results of hypotheses testing can also be seen in Chart 2 overleaf. Based on the results of hypotheses testing, some explanation can be offered as follows: 1. As regards direct correlation between destination image and tourists’ satisfaction, the inner weight coefficient is 0.701; T-statistics, 11.199; and pvalue, 0.000. The value of T-statistics which is more than 1.96 and the p-value which is less than 0.05 indicate that there is a significant direct correlation between destination image and consumers’ satisfaction. The positive value of inner weight coefficient indicates that the correlation between them is positive. This means that the higher the image, the higher the satisfaction. 2. Concerning direct correlation between destination image and tourists’ loyalty, the inner weight coefficient is 0.450; T-statistics, 4.746; and p-value, 0.000. The value of T-statistics which is more than 1.96 and the p-value which is less than 0.05 indicate that there is a significant direct correlation between destination image and tourists’ loyalty. The positive value of inner weight coefficient indicates that the correlation between them is positive. This means that the higher the image, the higher the loyalty.

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Figure 2 Flowchart of Inner Model hypotheses testing 3. With regard to direct correlation between tourists’ satisfaction and tourists’ loyalty, the inner weight coefficient is 0.351; T-statistics, 4.394; and p-value, 0.000. The value of T-statistics which is more than 1.96 and the p-value which is less than 0.05 indicate that there is a significant direct correlation between tourist satisfaction and tourists’ loyalty. The positive value of inner weight coefficient indicates that the correlation between them is positive. This means that the higher the satisfaction, the higher the loyalty. Based on the explanation earlier, there are three significant direct correlations among the tested hypotheses. Besides, within PLS, there is an indirect correlation. Such correlation is presented in Table 2 below. Table 2 The results of hypotheses testing within Inner Model: Indirect Influence Indirect Influence X1→X2→ Y

Coefficient of Direct Influence X1→X2 = 0.701

X2→ Y = 0.351

Coefficient of Notes indirect Influence 0.246 Significant

Source: Data were analysed in 2012 As seen in Table 2, there is an indirect correlation between destination image and tourists’ loyalty which requires the presence of satisfaction. The coefficient of the indirect correlation is 0.246. Because direct correlations between destination image and tourists’ satisfaction and between tourists’ satisfaction and tourists’ loyalty are both

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significant, it can be inferred that there is a significant indirect correlation between destination image and tourists’ loyalty requiring the presence of the tourists’ satisfaction. DISCUSSION Effects of Destination Image on Tourists’ Satisfaction Inner model coefficient value proves the existence of positive effects of destination image on tourists’ satisfaction. This means that the higher the image of greater Malang as an education city having a safe, attractive, and cool environment, the higher satisfaction tourists have. This image brings emotional benefits of a pleasant destination; an area suitable for many types of event; and an area with high reputation, friendly people, nationally-scaled ranking. This all also increases tourists’ satisfaction. Greater Malang as a tourist destination provides functional benefits in the forms of easily-accessible transports, sufficient infrastructures, multi-service-standard hotels, many venues, and good shopping centres. This all increases tourists’ satisfaction as well. This finding parallels the finding of a study conducted by Razari et al (2012) in Iran stating that image, satisfaction, and loyalty influence one another positively in a company. Similarly, a research study carried out in the US by Chi and Qu (2008) which examined correlations between destination image as well as tourists’ satisfaction and tourists’ loyalty analysed using Structural Equation Modelling found that there was a significant correlation between image and satisfaction, and both had certain effects on loyalty. Hankinson (2005) in a study about destination image states that the strength of relationship between image and received quality are very much influenced by perceptions towards functional attributes. Findings in previous studies indicate the importance of high image creation in order to increase tourists’ satisfaction. This applies to greater Malang as a tourist destination. Stakeholders are hoped to create and strengthen greater Malang image. Findings in this present study can be used as a basis to do such image improvement. The first one is increasing destination attractiveness through the improvement of image as an education city offering a safe, beautiful, and cool environment. The second is increasing emotional benefits of the destination as a pleasant city suitable to conduct many types of event which has high reputation, friendly people, and nationally-scaled ranking. The third is increasing functional benefits by providing easily-accessed transports, sufficient infrastructures like roads to tourist destinations, multi-service-standard hotels, a large number of venues, and interesting shopping centres. The existence of a positive correlation between destination image and tourists’ satisfaction in this study is supported by evidence collected through in-depth interviews with participants and observation in the field. It is found that business tourists are attracted to conduct MICE in greater Malang and are satisfied in doing so there because of their positive image towards the resort due to its atmosphere, i.e. cool climate. This is also supported by the results of descriptive analysis disclosing that from three indicators composing destination image, destination attractiveness has a ‘high’ score (4.21). Effects of Destination Image on Tourists’ Loyalty Inner model coefficient value empirically proves that destination image has positive effects on tourists’ loyalty. This means that the higher the image greater Malang has as a

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tourist destination (an education city offering a safe, beautiful, and cool environment), the higher the intention of tourists to revisit, recommend to others, and bring others to conduct MICE there. Greater Malang image gives emotional benefits: a pleasant destination suitable to conduct many types of event and which has high reputation, friendly people, and nationally-scaled ranking. Greater Malang also gives functional benefits through the provision of easily-accessible transports, sufficient infrastructures, multi-servicestandard hotels, a large number of venues, and good shopping centres. This all also increases tourists’ loyalty. Findings in the present study strengthen the theory of the correlation between destination image and consumers’ loyalty. According to Kotler and Keller (2006), someone who has high image and faith on a certain product may become loyal to it. Findings in the study parallel findings in studies conducted in Iran (Ali and Aram, 2011; Razari et al, 2012), in Austria on hotels (Coban, 2012; Faullant et al, 2008; Lertputtarak, 2012; Mohamed, 2008; Mohamad et al, 2012), in Mauritius on hotels (Kandampully and Hu, 2007), in Taiwan on tourism (Chen and Tsai, 2007), and in Switzerland on tourism (Brunner et al, 2008). However, findings in the present study contradict findings in studies conducted in Portugal (Correia and Valle, 2007) and in Indonesia (Martaleni, 2011) disclosing that high image did not increase consumers’ loyalty. Contradiction of findings in the present study and those in the study carried out by Martaleni (2011) can be caused by different characteristics of research participants, sample size, and time when the research was carried out. In Martaleni’s previous study (2011), the participants were individual tourists whose number was large, whereas in the present study, the participants are business tourists whose number is small (less than 100). Findings in the initial study showed that destination image did not positively influence business tourists in choosing venue for future events; in recommending the venue to others; and in bringing others to the venue, i.e. greater Malang. This may be caused by the fact that many factors influence business tourists in deciding where their event should be held, like reasonable cost and emotional bond between the tourists and tourist destination management. Emotional bond between business tourists and tourist destination businessmen is normally stronger than that of individual tourists and destination businessmen. This makes a good sense due to business tourists’ higher quantity and quality of visit to the tourist destination. As regards the contradiction between findings in the present study and those in a study carried out in Portugal by Correia and Valle (2007) on why people travel to exotic places, different research site may lead to different findings. Effects of Consumers’ Satisfaction on Consumers’ Loyalty Based on the inner model coefficient value, it can be concluded that tourists’ satisfaction has positive effects on tourists’ loyalty. In this study, this means that the higher the tourists’ satisfaction for attractiveness, emotional benefits, and functional benefits of greater Malang, the higher the tourists’ intension to revisit, recommend it to others, and brings others to conduct events there. Above-mentioned finding in the present study strengthens a theory proposed by Zeithaml and Bitner (2004) stating that there is an important relationship between satisfaction and loyalty. Such relationship gets stronger when the consumers are very

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satisfied. Therefore, companies whose goals are to satisfy their consumers should not only deal with loyalty but also contentment. Consumers are contented finding what they experience is much better than what they wish. This empirical finding supports findings in tourism studies carried out in Turkey (Coban, 2012), Spain (Gallarza and Saura, 2006), Taiwan (Chen and Tsai, 2007), Switzerland (Brunner et al, 2008), and the US (Hutcinson et al, 2009). It also supports findings in a study conducted by Wang Xia et al (2009). All these studies disclose the same finding showing that the more satisfied the consumers are, the more loyal they are. However, the degree of increase in both variables varies from study to study. Mittal and Lassar (1998), on the other hand, state that satisfaction does not always have positive effects on loyalty. Meanwhile, Espiritu-de Mesa and Del Rosario (2013) argue that membership status of event venue influences potential of revisit, i.e. elite members influence sale increase more than non-elite ones. These differences in research findings can then be explained by the presence of different components composing the variable of satisfaction and types of membership valid to event venue. Consumers’ satisfaction in previous studies can be supported by ‘technical quality’ compared to ‘functional quality’. This is the pattern of effects of services given to tourist destination which is lower than that given to motor industries. Improving destination image generally will increase business tourists’ intension to revisit the destination, to recommend it to others, and to bring others to conduct business events there. This can also increase the number of tourists that visit and extend their stay in the tourist destination. The correlation between tourists’ satisfaction and loyalty to greater Malang is only 0.351. This low degree of correlation can be resulted from the score average for satisfaction which is not very high (3.79). Consequently, tourists are not very loyal. This means that tourists are not very much encouraged to revisit greater Malang, to recommend it to others, and to bring others to conduct events there. In practice, however, someone who is not satisfied for a certain product may still be loyal to it expecting no other producers produce better. Effects of Destination Image on Tourists’ Loyalty Requiring the Presence of Satisfaction Inner model coefficient value shows that destination image has effects on tourists’ loyalty provided that satisfaction is present. This means that the higher the image greater Malang has as a tourist destination (an education city offering a safe, beautiful, and cool environment); the image gives emotional benefits of a pleasant destination suitable to conduct many types of event and which has high reputation, friendly people, and nationally-scaled ranking; and greater Malang also gives functional benefits through the provision of easily-accessible transports, sufficient infrastructures, multi-servicestandard hotels, a large number of venues, and good shopping centres, the higher loyalty tourists have as long as they are highly satisfied. Findings in this study show that satisfaction is an essential condition for loyalty. In other words, without a satisfaction, loyalty would never occur. This indicates that loyalty to greater Malang will take place if tourists have already been satisfied. Thus, what makes tourists satisfied has to be met if they want the tourists to be loyal (Ahmad and Hashim, 2010; Ali and Aram, 2011; Jamaludin, 2012). Greater Malang attractiveness as a safe, cool education city is scored high (4.21) by tourists. Therefore it

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should be maintained, or even better be increased. This finding also parallels findings in a study examining consumers’ satisfaction, image, and loyalty carried out by Faulant et al (2008) stating that high satisfaction and image have effects on loyalty. Brunner et al (2006) state that satisfaction and image are important factors in service business for their effects on loyalty. CONCLUSION AND SUGGESTION Based on the research findings, it can be concluded that high greater Malang image as an education city offering a safe, beautiful, and cool environment contributes to the improvement of tourists’ satisfaction. Greater Malang image which brings emotional benefits of pleasant destination suitable to conduct many types of event and which has high reputation, friendly people, and nationally-scaled ranking also improves tourists’ satisfaction. Greater Malang which gives functional benefits through the provision of easily-accessible transports, sufficient infrastructures, multi-service-standard hotels, a large number of venues, and good shopping centres increases tourists’ satisfaction too. The higher satisfaction tourists have for destination attractiveness, emotional benefits, and functional benefits, the higher intention they have to revisit greater Malang, to recommend it to others, and to bring others there. Then, if tourists are satisfied with the destination, high destination image will improve loyalty to the destination. This empirical study offers implications for few parties as follows: 1. Future researchers can expand the coverage of variables because business tourists’ way of viewing destination image and satisfaction covers more dimensions than simply evaluating image after enjoying a vacation. 2. Tourist destination management – relevant government department – and individual tourism place management have to work hard in order to improve and strengthen destination image so that they can successfully compete in the tourism marketing. This is essential because destination image plays an important role in the post-service and word of mouth process. 3. It is compulsory to create a long-lasting, good relationship with business tourists. This can be done through intensive, continuing communication even when they are away holding no business event there. Such communication indirectly strengthens emotional bond between tourist destination management and business tourists. Limitation A couple of unavoidable limitations can be noted in the present study. The first one is that findings in this study do not provide a holistic description of destination image because this study only focuses attention to business tourists. It is suggested that future researchers broaden the perspective by combining the involvement of not only individual and business but also domestic and international tourists. The second limitation is that a few participants did not share sufficient information concerning their visit to greater Malang due to their hectic schedule. To minimise the recurrence of this in future research, it is suggested that researchers implement a more professional approach in negotiating time with business tourists so that they are happy to share all invaluable information they have.

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REFERENCES Ahmad, Z. and Hashim, R. 2010. Customer’s brand equity and customer loyalty: A study on hotel’s conference market. World Applied Sciences Journal, 10, (Special issue of tourism & hospitality), 115-120. Ali, K. and Aram, F. 2011. How quality, value, image, and satisfaction create loyalty at an Iran Telcom. International Journal of Business and Management, 6(8), 271-279. Brunner, T., Stocklin, M., Opwis, K. (2008). Satisfaction, image, and loyalty: New versus experienced customers. European Journal of Marketing. 42(9), 1095-1105. Chi, C. G. and Qu, H. 2008. Examining the structural relationships of destination image, tourist satisfaction and loyalty: An integrated approach. Tourism Management, 29, 624-636. Chen, C. and Chen, F. 2010. Experience quality, perceived value, satisfaction and behavioral intentions for heritage tourists. Tourism Management, 31(1), 29-35. Correia, A. and Valle, P. O. D. (2007). Why people travel to exotic places. International Journal of Culture, 1(1), 45-61. Chen, C. and Tsai, D. C. (2007). How destination image and evaluation factors behavioral intentions. Tourism Management, 28(4), 1115-1122.

affect

Creswell, J. W. 2009. Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.). California: SAGE publications, Inc. Coban, S. 2012. The effects of the image of destination on tourist satisfaction and loyalty: The case of Cappadocia. European Journal of Social Sciences, 29(20), 222-232. Espiritu-de Mesa, F. and Del Rosario, R. V. (2013). A cut from above: The impact of loyalty program status on member’s behaviour. DLSU Business & Economics Review, 23(1), 19. Faullant, R., Matzler, K., and Fuller, J. (2008).The impact of satisfaction and image on loyalty: The case of alpine ski resorts. Managing Service Quality, 18(2), 163-178. Gallarza, M. G. and Saura, I. G. (2006). Value dimensions, perceived value, satisfaction and loyalty: An investigations of university student travel behaviour. Tourism Management, 437-452. Hankinson, G. 2005. Destination brand image: A business tourism perspective. Journal Of Service Marketing, 19(1), 24-32. Hutchinson, J., Lay, F., and Wang, Y. (2009). Understanding the relationships of quality value, equity, satisfaction, and behavioral intentions among golf travellers. Tourist Management, 30(2), 298-308. Ibrahim, E. E. and Gill, J. 2005. A positioning strategy for a tourism destination based on analysis of customers perception and satisfactions. Marketing Intelligence & Planning, 23(2), 172-178.

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Jamaludin, M., Johari, S., Aziz, A., and Kayat, K. (2012). Examining structural relationship between destination image, tourist satisfaction and destination loyalty. International Journal of Independent Research and Studies-IJIRS, 1(3), 89-96. Kandampully, J. and Hu, H. 2007. Do hoteliers need to manage image to retain loyal customer? International Journal Of Contemporary Hospitality Management, 19(6), 435-443. Kotler, P. and Keller, K. L., 2006. Marketing Management. New Jersey: Pearson Education Inc. Lertputtarak, S. 2012. The relationship between destination image, food image, and revisiting Pattaya, Thailand. International Journal, Business and Management, 7(5), 111-122. Mohamad, M., Abdullah, A. R., Mokhlis, S. 2012. Tourists evaluations of destination image and future behavioral intention: The case of Malaysia. Journal of Management and Sustainability, 2(10), 181-189. Mak, J. 2004. Tourism and The Economy-Understanding The Economics of Tourism. Honolulu: University of Hawaii Press. Martaleni, 2011. Positioning daerah tujuan wisata berdasarkan kepuasan, Image, dan loyalitas konsumen [Positioning of tourist destinations based on consumers’ satisfaction, image, and loyalty]. Jurnal Aplikasi Manajement (JAM), 9(1), 291-300. Martaleni, 2011. Image daerah tujuan wisata: Suatu tinjauan dari perspektif wisatawan nusantara [Tourist destination image: A study based on domestic tourists’ perspectives]. EKUITAS. Jurnal Ekonomi dan Keuangan, 15(4), 501-522. Maholtra, N. K. 2005. Riset Pemasaran: Pendekatan Terapan [Marketing Research: Applied approach). Jakarta: PT Indeks Kelompok Gramedia. Mittal, B. And Lassar, W. M. 1998 "Why do customers switch? The dynamics of satisfaction versus loyalty". Journal of Services Marketing, 12(3), 177-194. Razari, S. M., Safari, H., Shafie, H., and Vandchali 2012. How customer satisfaction, corporate image and customer loyalty are related? European Journal of Scientific Research, 78(4), 588-596. Undang-Undang Republik Indonesia No 10 Tahun 2009 tentang Kepariwisataan [Indonesian Law on Tourism Numbered 10, 2009]. Wang, X., Zhang, J., Gu, C., and Feng, Z. 2009. Examining antecedent and consequences of tourist satisfaction: A structural modelling approach. Tsinghua Science and Technology, 14(3), 397-406. Yoeti, H. O. A. 2006. Tours and Travel Marketing. Jakarta: PT. Pradnya Paramita. Zeithaml, V. A. and Bitner, M. J. (2004). Service Marketing. New York: Mc Graw-Hill Education.

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THE INFLUENCE OF SPP, DPP, INFRASTRUCTURE FACILITIES AND CULTURE ON STUDENT'S SATISFACTION OF PTS IN DISTRICT OF SIDOARJO THE CONCEPTUAL MODEL COMPETITIVE ADVANTAGE BASED ON THE RESOURCES AND THE STRATEGIC COMPETENCE ON THE MARKETING OF BUSINESS OF SERVICES EDUCATION Soenarto1 STIESIA Surabaya INDONESIA

ABSTRACT The purpose of this paper is to prove and analyze the effect of the Cost of Implementation Education Contribution (SPP), Cost of Development Education (DPP), and Infrastructure and Culture on Student’s Satisfaction. The population of this study is students from high school, vocational, and are equal in district of Sidoarjo who have passed the National Exam school year 2013-2014, lecture at the PTS Sidoarjo. Based on the calculation of sample of questionnaire who answered by 100 students, where hypotheses using SEM method. SPP (variables X1), effect on student satisfaction with the correlation of 0.182. Reinforced variable X1.1 tuition fees affordable by student with a correlation 0.999, variabe X.1.2 tuition fee can be paid in installments with a correlation of 0.142. Education development fund (DPP) effect on student satisfaction with correlation 0.049 Reinforced variables X2.1 DPP affordable payment with correlation 0.031, reinforced X2.2 variables DPP can be repaid with correlation 0.986. Infrastructure (varabel X3) effect on student satisfaction with correlation 0.167. Reinforced variables X3.1 with correlation 0.267 and affected by variables X3.2 with correlation 0.982. Culture had no effect on student satisfaction with correlation -0176, also is not influenced by variable X4.1 the Islamic Nuance with correlation -0216 and not influenced by the Kinship variables X4.1 with correlation -0963.

Keywords : Private Colleges Quality With Adequate Infrastructure, Affordable Cost, A Significant Effect On Student Satisfaction

INTRODUCTION A fenomena always we natural, that every new school year beginning, certainly the education world are faced with the new students, students who graduated from senior high school, vocational school, or equivalent.

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They will determine the choice of private college entrance where? After failing following the entrance test of State College (PTN). Because there are several private universities of choice This condition is an opportunity that should be captured by the business of private higher education, and also at the same time is a threat to world of business of education. Because of increasingly sharp competition to get the number of new students who many with all keuggulan and weaknesses that they have. Act No. 20 of 2003 on the National Education System states involving the community in the education sector development efforts. In chapter 4 verse 1 states that education in Indonesia held in a democratic and fair, followed by chapter 9, that the public is entitled to play a role in the implementation, monitoring, and evaluating educational programs One of the policy strategies of regional development in district of Sidoarjo in business of education, with the indicator number of students who graduated from high school, vocational school or the equivalent each year who go to private colleges is increasing. In 2011 the number of new students entering at one of the private colleges, courses Engineering, Economics, and Law all of 320 students, in 2012 increased to 455 students and in 2013 increased to 524 people. The research oriented on consumer interests can not be separated from the use of the Theory Buyer Behaviorb Howard and Sheth model. This model provides guidance on how marketers who have individual differences and cultural factors influencing purchasing decisions, from the introduction to a purchase transaction of goods needed, and satisfaction are used as a marketing strategy. However, in this case the Howard and Sheth model does not explain in detail. Therefore, the marketing strategy of education services is a part and continuation buyer behavior theory. To develop a marketing strategy can be carried out also with the introduction and development of resources and strategic competencies by educational business. The performance of an organization as a whole, particularly marketing correlated with the ability of institutions able to develop strategic resources (Barney, 1986: 1231.1995: 49). In strategic attributes including specific resources is deversikasi products, advantages of technology used, the instrument of sales promotion effectiveness, sales force effectiveness profesonal is an instrument that needs to be developed. Development to complement of a competitive advantage especially in business of education successfully, thanks to a continuous effort (sustainability), depending on the ability to manage various competent resources in the organization. Model of Bharadwj still needs to be done the empirical research further, in relation to the education services business excellence. Cost of Implementation Education Contribution (SPP) effect on student satisfaction in terms of competitive advantages of financing of study, is one of the components of the costs that must be paid by students each month. Affordable Amount can be paid by the student. SPP is a competency that is very important to fund operations effectively and efficiently, because it helps determine the order that the student can follow the learning process goes well. Thus providing a good image of the PTS in relation to the competitive advantage (Sharma 1995: 11). the Image of good business education can make cost savings opersaional, of the effectiveness of the strategy pemesaran will

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increase the number of students who entered in the PTS, then the amount of tuition covered by financial capability and can be paid in installments. Cost of Donation Education Development (DPP) effect on student satisfaction in terms of competitive advantage of financing the study, is one of the cost components that the must be paid by student, to be paid only once, With the amount affordable by students. DPP installment payments on a monthly basis. Determination of the DPP affordable by students and can be repaid pembayaranya by students, is a form of competitive advantage between PTS (Sharma 1995: 11). Infrastructure which includes land, buildings and equipment, physically shape as a tool, effect on student satisfaction, to support the learning process for students PTS. Complete facilities and infrastructure must be prepared pembiayaanya by the foundation completely. Government grants are relatively small in value, only in the form of equipment. The availability of infrastructure that complate. Infrastructures are both capable of supporting education. Is a tool that is part of the service, the service quality effect on satisfaction mahasiswa. Hugh Charles Wilkins (2005: 78), in a study on the effect of satisfaction on kuwalitas service in Australia. Culture is the belief held students without coercion from any parties, adhered as a handle on life, there are holy book nuanced Islamic , effect on student satisfaction. Confidence can the form of family, effect on student satisfaction. Because it contains high aesthetics in the association, mutual respect among members of the academic society. Culture is abstract that is a reflection of the ability of the lecturer, professor, mentor students. Zimmer (2006: 10). Student Satisfaction at the PTS is a sense of satisfaction that is felt during the lecture and follow all of the activities of non kurukuler competency based. Satisfaction is influenced by the financial ability (financial) students, to be able to finance these activities. Influenced by the spirit of learning high tirelessly. Influenced by the limits of normal study time, in 8 semesters of students graduating S1 with honors degree in a timely. Woodruff in Usmara (2003: 124) states Satisfaction is a comparison between the performance comparison ekseptasi accepted standard, ideal, competitors, marketers promise and norms. THEORETICAL OVERVIEW Strategic Management Strategic Management is an integrative management application puts all the elements together, namely; planning (planning), implementation (implementing) and control (controlling), to predict the needs of the market and the opportunity to gain a competitive advantage, Yowono and Iksan (2004), Sagala (2009: 128). Ansof (1990) in Sagala (2009: 129) states, strategic management is a systematic approach to management responsibilities in a condition that ensures the organization in a position to assure the achievement of goals of sustainable success.

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Application of strategic management on sector a high education Sagala, 2009: 135 Strategic Management applied to higher education in general has a characteristic; 1) decisions are strategic, 2) effective use of resources, 3) quality oriented sustainable future, 4) response, concerned with the external environment, 5) multidimensionally Sagala, 2009: 141, application of strategic management specifically applied to: the management of higher education include: 1) the institution prepare a work plan and budget revenues and annual education expenses, for the achievement of objectives, 2) improve the quality of education through management by responding to the strategic issues management school-based, competency-based curriculum, teaching kotekstual 3) for strategic implementation, emphasizing objectivity, scientific and systematic. The Theory of Buyer of Behavior The theory of consumer decision Howard and Sheth, explaining consumer behavior that have individual differences, and environment factor, will affect the purchasing decision since the introduction of the requirement to purchase, satisfaction for the development of marketing strategies Model Howard and Sheth Accompanied by Robert Ferber who an economist developed an consumer behavior, applying the principles of economics and psychology, along with Hugh G Wales wrote a book "Motivation and Market Behavior" (1958).

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Marketers Company, Nonprofit, Government Agencies, Other Consumer

Marketing strategy Marketing Mix, Segmentation, Defrensiation

Individual differences 1. Needs and Motivation 2. Personality 3. Information Processing and Perception 4. Learning Process 5. Knowledge 6. Behavior

Decision Process introduction to decision search Information Evaluation of Alternatif Purchase and Satisfaction

Environmental Factors 1. Culture 2. Socioeconomic Characteristics 3. Familiy and Household 4. Reference Group 5. situation of the Customer

Implication Marketing strategy Public Policy Consumer Education

RESEARCH METHODS The research design is the plan and structure of the research are made as needed, to obtain answers to questions with regard to limited resources, demonstrate an important choice. The design is made into a framework for detailing the relationship between the studied variables used as blueprints give outline of each flow process, from hypothesis to data analysis (Cooper and Emory, 1995: 122-123) Population and Sample The population in this study is the students of PTS in Sidoarjo students who graduated from high school, vocational and equal in the district of Sidoarjo Sample The sampling technique used in this study conducted by the purpose strtified sampling method, which is allocated proportionally (Sugiyono, 1999: 101) given the size of the sample based on their needs, a population of 100 students Sources of Data In research Premer data and secondary data obtained by spreading the questionnaires to the respondents STT student, College of Economics, STIH YPM from of high school students, vocational and equal in the district of Sidoarjo.

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Data Collection To obtain the data and inforamsi of respondents, distributed a questionnaire containing a number of questions answered by the respondents, in addition to the interview. Research Variables Identification of the study variables in this study there are two groups of variables : the independent variable (X) is the variable that is not predicted by the other variables in the model. The dependent variable (Y) is the variable that predicted by independent variables in this study; 1. Independent Variable (X) consisting of : a. Cost Of Implementation Education Contribution (SPP) (X1) : X1.1 Cost of Implementation Education Contribution (SPP) affordable by students X1.2 Payment of SPP can be paid in installments b. Cost of Development Education Fund (DPP) (X2) : X2.1 Cost of Development Education Fund (DPP) affordable by students X2.2 Payment of DPP can be paid in installments c.

Infrastructure (X3) : X3.1 The infrastructure of the PTS available in full X3.2 Infrastructure capable of supporting the implementation of the educational process

d.

Culture (X4) : X4.1 Islamic nuance X4.2 sense of family

2. Dependent Variable (Y) is student’s satisfaction, consisting of : Y1. Student Financial Capability Y2. Learning Spirit Y3. Graduation Discussion of Research Variable and Indicators The variables used in this study consisted of the dependent variable (Y) and independent (X). The dependent variable in this study is the Level of Student Satisfaction (Y), while the independent variable (X) in this study consisted of: SPP (X1), DPP (X2), Facilities & Infrastructure (X3) and Culture (X4). SPP indicators of endogenous variables (X1): Affordable tuition fee (X11), Fee Payment can be repaid (X12). DPP indicator of exogenous variables (X2): Affordable Cost DPP (X21), DPP Payment can be repaid (X22). Indicators of exogenous variables Facilities and Infrastructure (X3): Facilities and Infrastructure Complete (x31), Facilities and Infrastructure Capable of Supporting

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Education (X32). Cultural indicators of exogenous variables (X4): Nuance Islami (X41), Kinship (X42) .. Indicators of Student Satisfaction Level of endogenous variables (Y): Cost of Education Students Under Financial Capability (Y1), Encouraging the spirit of Learning (Y2), Graduation (Y3). Instruments of Research The instrument used in this study is a questionnaire or a questionnaire. In the questionnaire there are a number of questions that must be answered by the respondent in accordance with the things that are known, thus obtained the required data and information. Test Validity Validity has meaning the extent to which the precision and accuracy of a measuring instrument in performing measuring function. In this research used SPSS Ver 15, Validity Test with a Pearson Product Moment Correlation method, wherein said questionnaire data Valid and Reliable results when r> r table. R Table: df = N-2 = 100-2 = 98. the value df = 98 and level α = 5% obtained table r = 0.1654 Test Reliability Test Reliability aims to determine the consistency of the data obtained, which in this study used Cronbach Alpha technique with values> from the table with an alpha value of 5%. Data Analysis with SEM Methods (SmartPLS) SmartPLS an alternative approach that shifts into a covariance-based SEM approach based variant (Ghozali, 2006). SEM, Covariance-based generally test the theory of causality while PLS is more predictive models. In this research a conceptual framework (modeling) as follows:

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Test Validity of Model Validity consists of Convergent Validity and discriminant validity Convergent Validity is determined based on the value of the Loading Factor from the indicator variable, if the value of Loading Factor > 0.5, then the constructs model is said to be valid supports latent constructs (see value of the Loading Factor in picture Model above). Discriminant Validity is determined from the value of AVE for each variable, is said to Valid if value AVE> 0.5. Average variance extracted (AVE) Average variance extracted (AVE) SPP (X1)

0.510

DPP (X2)

0.531

SARANA (X3)

0.517

BUDAYA (X4)

0.487

KEPUASAN (Y)

0.358

Test Reliability of Construct Model Constructs Model called Reliable when the Composite Reliability value> 0.5 Composite Reliability Composite Reliability SPP (X1)

0.571

DPP (X2)

0.333

SARANA (X3)

0.618

BUDAYA (X4)

0.575

KEPUASAN (Y)

0.018

Hypothesis Hypothesis testing is used to test the effect of exogenous variables (X) on endogenous variables (Y) by looking at the value of the t-values for each path. T-test values obtained from bootstrapping with Smart-PLS software. Testing with bootstrap also aims to minimize the problems of research data abnormalities (Ghozali, 2006). Value of the inner weight coefficient of the structural model called significant when t-test value> 0.5. Based on the results of hypothesis testing, the effect of the DPP against the SPP obtained the inner weight 0.121 with t-test value 0.460, so it can be concluded that there is a positive and significant effect of the DPP to SPP. Hypothesis test results between the SPP with Student Satisfaction obtained the inner weight 0.182 with t-test value 0.740, so it can be concluded that there is a positive and significant effect between SPP with the Student Satisfaction.

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Hypothesis test results between the DPP with Student Satisfaction obtained the inner weight 0.049 with t-test value 0.207, so it can be concluded that there is a positive and significant effect between DPP with the Student Satisfaction. Hypothesis test results between the Infrastructure with Student Satisfaction obtained the inner weight 0.167 with t-test value 0.666, so it can be concluded that there is a positive and significant effect between Infrastructure with the Student Satisfaction. Hypothesis test results between the Culture with the Student Satisfaction obtained the inner weight -0.176 with t-test value 0.618, so it can be concluded that although the value of t count> 0.5 but its influence is negative, so it can be said that culture is not significant positive effect on satisfaction students. results for inner weights original sample estimate

mean of subsamples

Standard deviation

TStatistic

DPP (X2) -> SPP (X1)

0.121

0.055

0.263

0.460

SPP (X1) -> KEPUASAAN (Y)

0.182

0.023

0.246

0.740

DPP (X2) -> KEPUASAAN (Y)

0.049

0.078

0.234

0.207

SARANA (X3) -> KEPUASAAN (Y)

0.167

0.120

0.250

0.666

BUDAYA (X4) -> KEPUASAAN (Y)

-0.176

-0.022

0.286

0.618

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CONCLUSION Based on the analysis and discussion above, can concluded a few things : 1. Cost Of Implementation Education Contribution (SPP) as X1 Variable, effect on Student Satisfaction with the correlation of 0.182. Reinforced variable X1.1 tuition fees affordable by student with correlation of 0.999 , variabe X.1.2 tuition fee can be paid in installments with a correlation of 0.142. 2. Cost of Education Development (DPP) as X2 Variable, effect on student satisfaction with correlation 0.049 Reinforced variables X2.1 DPP affordable payment with correlation 0.031, reinforced X2.2 variables DPP can be repaid with correlation 0.986 3. Infrastructure (variabel X3) effect on student satisfaction with correlation 0.167. Reinforced variables X3.1 with correlation 0.267 and affected by variables X3.2 with correlation 0.982 4. Culture had no effect on student satisfaction with correlation -0176, also is not influenced by variable X4.1 the Islamic Nuance with correlation -0216 and not influenced by the Kinship variables X4.1 with correlation -0963. REFERENCES Barney, Jay, 1986, Strategic Factor Markets : Expectations, Luck, and Bussines Strategy, Management Science, Vol. 32 No 10, October, pp 1231-1241 Hugh Charles Wilkins, 2005, A Structural Model of Satisfaction and Brand Attitude in Hotels, Submitted in Fullfilment of Requirement of Doctor Philosophy. Departement of Marketing Griffith Bussiness School, Griffith University. Ghozali ,I. 2006. Structural Equation Modeling, Metode Alternatif dengan Partial Least Square Edisi 1. Badan Penerbit Universitas Diponegoro. Semarang _______ . 2011. Structural Equation Modeling, Metode Alternatif dengan Partial Least Square Edisi 3. Badan Penerbit Universitas Diponegoro. Semarang Jogiyanto, H.M dan Willy, A. 2009. Konsep dan Aplikasi PLS (Partial Least Square) Untuk Penelitian Empiris. BPFE Fakultas Ekonomika dan Bisnis UGM. Yogyakarta Sagala, Syaiful, 2009, Manajemen Strategik dalam Peningkatan Mutu Pendidikan, Alfabeta Bandung Sugiyono, 1999, Penelitian Bisnis, Cetakan Pertama, CV. Alfabeta, Bandung Usmara, 2003, Strategi Baru Manajemen Pemasaran, PT. Amara Books, Yogyakarta Zimmer Gembeck, 2006, Relationships at School and Environtmental Fit as Resources for Adulescent and Achievement, Symposium Presented at the Biennial Meeting of The International Society for Behavioral Development, Melbourne, Victoria, Australia, pp 1-16

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INFLUENCE OF MARKETING MIX (4P) ON MALANG CITY BOARD GAME CAFE CONSUMER BUYING DECISION Andreas Widyanto Tanalo1, Christina Whidya Utami2 Universitas Ciputra INDONESIA E-mails: [email protected]

ABSTRACT Purpose – The study seeks to examine which Marketing Mix (4P) variables influence on consumer buying decision to board game cafe. This paper aims to explore four variables of Marketing Mix (4P): product, price, place, and promotion. Design/methodology/approach – The research was founded on a quantitative field study, quota sampling method, whose sample was comprised of 97 consumers from two Board Game Cafe in Malang. Findings – The findings among the entire sample imply that consumer buying decision is positively influenced by all of the variables that were examined. The variable price, place and promotion significantly influencing consumer buying decision to board game cafe. Originality/Value – These findings indicates that Marketing Mix (4P) can play important role on consumer buying decision. In term of managerial implications, a board game cafe should, preferably, not only focus on the tangible aspects of a product but also the intangible or unobservable product attributes.

Keywords: Marketing Mix (4P), Consumer Buying Decision, Board Game Cafe, Malang City

INTRODUCTION Malang is the second biggest city in East Java, Indonesia. The city is considered a cool, clean, peaceful place for tourism and education. Interest in choosing Malang as the city for higher study levels is also supported by the development of schools, universities, and developed living areas. As the number of Malang population grows, mostly by the student newcomers aged 19-25 years old, the business sectors of Malang are also growing rapidly during 2012-2014 especially in hospitality, food and beverages, and leisure. The number of corporate taxpayer in this business field is growing from 567 in 2011, 671 in 2012, and 703 in 2013 (Malang Media Center, 2014). Restaurants and cafes are opened in many areas of Malang city offering various concepts and products for the consumers. In 2013, the new concept of Board Game Cafe was built as the new offering of cafe business. Kotler and Armstrong (2010) said that it is impossible to attract all groups of consumers in the market or all buyers in similar way. Because the

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concept is new and the cafe must compete with other cafes, Board Game Cafe must prepare the appropriate and controlled Marketing Mix concepts, in order to reach the certain sales level of the target market (Kotler in Akrani, 2010). By using the right Marketing Mix (4P), product-price-place-promotion strategies, the Board Game Cafe business can decide the proper way to face the other cafe competitors in providing hospitality and leisure. Conceptual Background In accordance with the research question, the conceptual framework (see Figure 1) was developed to guide this study. Product Price Place

Consumer Buying Decision to Board Game Cafe

Promotion Figure 1. Conceptual Framework CONTEXT AND REVIEW OF LITERATURE Cafe The first time use of the term ‘cafe’ was in 1802, with the definition of a small and informal place that provides a variety of beverages (such as coffee); a restaurant where you can get simple food and beverages (Merriam-Webster Dictionary, 2014). Board Game Definition of Board Game The first time use of the term “board game” was in 1889, with the definition of a strategy game (like checkers, chess, or backgammon) which is played by moving pawn(s) on a special board (Merriam-Webster Dictionary, 2014). Board game is a game that uses any type of board or mat to play, and is usually played by more than one person at the same table (Wisana, 2011). Benefits of Playing Board Game According to Wisana (2011), gathering a group of people at the table to play together is a phenomenon that can only be created by a board game. A board game is unique and has a strong influence on the mental development of the players. Board game has several advantages and benefits, which are: Rules Board Game is a game full of rules. Board Games will only be played well when all players abide by the rules. This means that this game is indirectly train players to consciously abide by the rules and being honest.

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Social Interaction Most Board Games titles can be played by more than 3 players. With these variations, board games could invite fellow players to work together and defeat the game itself, negotiating, role playing, bluffing or other action that requires the player to interact with other players. Behind the goal to win the game, each player also unconsciously have intense communication with other players during the game progressed, both with the purpose of deceit, joke, negotiate, and discuss the existing rules. Education An exciting board game commonly packed into a specific theme that is also interesting, for example Monopoly is packed into an investment or land purchasing theme or Agricola which had a theme of managing the farm. Other board game gives new knowledge to the players, and not a few players become interested to know more about the themes raised by a board game. Apart from the theme, almost the entire board game requires the player to sharpen the brain as set strategy, predict, prepare tactics, and decision-making. The experience gained is different when the players come face to face with other players and see the consequences of any decision-making that happen for him and those around him. Risk and Simulation Every human action must have influence and consequence, either directly or indirectly. With board games, every decision will be simulated quickly. Players will be able to see the result of which he caused in a social group (fellow players) as a form of decision that he took during the game. Every betrayal, broken promises, solidarity, good luck, and cooperation in the game, will result in a direct reciprocal relationship between the players. In other words, the board game is a game that trains social life situation by providing simulated training to players. Levels of Generation Not everyone can enjoy digital games, especially the elderly. Since most of the digital game to rely on its agility in technology, such as moving the mouse or joypad. Some parents consider digital games are too complicated and is no longer time for them to play. Instead, board game is a conventional type of game that has been known since long. Not required special understanding to be able to play it, so that everyone can directly play board games. Players can easily invite parents to play board games together. Consumer Buying Decision In this era, modern consumers are facing more complicated decision-making process, because there are too many options that can be taken. Ironically, consumers face a big problem not because of too little choice, but because of too much. This condition is called consumer hyperchoice, where conditions provide a large number of options to be taken that may seize the psychological energy to make a smart choice. This phenomenon makes consumer decision making process (See Figure 2) become more complicated. Solomon (2013) says that a purchasing decision process is a response to a resolution of problem. A purchase can be decided quickly, but at different times can be a job that takes time to plan. For example, someone may take several days or weeks to plan to buy an iPhone or an Android.

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Figure 2. Stages in Consumer Decision Making Source: Solomon (2013) During the process of decision making, Marketing Mix can be the guidelines for user(s) in three stages: (2) information search, when user(s) gather information from Marketing Mix to solve problems, (3) evaluation of alternatives, when user(s) evaluate and find appropriate products or services offered, and (4) product choice, when user(s) decide which products or services have to be taken or used for the problems. Marketing Mix (4P) Kotler and Armstrong (2010) defined Marketing Mix as a combination of controlled marketing variables, which is used by companies to achieve acertain level of sales in the target market. Marketing Mix consists of four elements, namely Product, Price, Place, and Promotion. All four elements of the 4P are the main elements that must be properly addressed in order to achieve marketing objectives. Product Kotler and Keller (2009) defined product as anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, people, places, equipment, organization, information, and ideas. Board game cafe is a products and services provider, with certain social approach. In the customer-value hierarchy, the level of the product served is the expected product, which needs group of attributes and conditions buyers normally expect when they purchase this product. Buyers want the convenient cafe, with good food, exciting games, memorable experiences with friends or families, and great satisfaction. H1: Consumer buying decision is positively influenced by product, i.e. the higher the amount of product, the higher the consumer buying decision. Price According to Kotler and Armstrong (2010), determining the right price is one thing that is hard to do by a marketer. But in the end, the consumer who decides whether the price of a product is right or not. Consumers are more concerned with the perception of value that he obtained from the seller than the costs incurred. When consumers buy a product, they exchange something of value (price) to get something of value (the benefits of

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having or using the product). Effectively, the consumer-oriented pricing requires an understanding of how much consumers value measured for the benefits of the product. H2: Consumer buying decision is positively influenced by price, i.e. the higher the satisfaction rates of price, the higher the consumer buying decision. Place According to Levy and Weitz (2009), the design of the stores' operations of a business is also a thing that needs to be well prepared. For a board game café venture, the atmosphere (atmosphere) is considered a very important aspect, because the consumer will spend time and enjoy the products and services offered on the site until he left the place. Atmosphere (atmosphere) according to Levy and Weitz (2009) refers to design a store environment through visual communications, lighting, color, music and aroma that stimulate consumer perceptions and emotional responses and influence buying behavior. Research has shown that it is very important that this atmosphere elements work together - for example, the right music with the right scent. H3: Consumer buying decision is positively influenced by place, i.e. the higher the satisfaction of the place, the higher the consumer buying decision. Promotion Marketing communications are used by companies to inform, persuade, and remind consumers, directly or indirectly, about the products and brands sold. In essence, marketing communications represent the "voice" of the company and the brand as well as a means by which companies can create a dialogue and build relationships with consumers. The forms of promotion are often encountered in the community according to Kotler and Keller (2009) referred to the marketing communication mix or marketing communication mix, which is comprised of eight main communication models, namely: (1) advertising, (2) sales promotion, (3) events and experiences, (4) public relations and publicity, (5) direct marketing, (6) interactive marketing, (7) word of mouth marketing, (8) personal selling. H4: Consumer buying decision is positively influenced by product, i.e. the higher the number of promotion, the higher the consumer buying decision. Influence of Marketing Mix (4P) in Consumer Buying Decision Disa (2013) found that good facilities and service quality can influence consumer buying decision. Ryu et al. (2012) in their research found that product quality and good service can influence customer satisfaction, which can affect the consumer buying decision. Prices significantly influence purchasing decisions as consumers consider the price that competes with the competitors before purchase (Kristianto, 2013; Nganduh, 2013; Satit et al., 2012). Pricing is very important to note because the price reflects the value perceptions of consumers for products or services and all marketing decisions are highly correlated with the price (Jenster et al., 2005 in Satit et al., 2012). The atmosphere can be a reference for someone to make a purchase or make a choice. Levy and Weitz (2009) stated that the creation of the design of a store environment through visual communications, lighting, color, music and aromas can stimulate consumer perception and emotional response, which strongly influence buying

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behavior. Tongku (2013) found that a good atmosphere can bring a positive influence in influencing buying decisions. Ryu et al. (2012) in his research found that a good physical environment can affect customer satisfaction, which will also affect buying behavior. Effective and attractive promotion can help a person in making choices or buying decision. Tongku (2013) found that effective promotion campaign on various instruments have positive influence on purchase decisions. Te'eni-Harari and Jornik (2010) in his research found that the influence of others can be a very powerful direct promotion for a person in making purchasing decisions. Kotler and Keller (2009) stated that the total marketing mix or marketing communication mix, which is used by companies to communicate persuasively, can create consumer value and building customer relationships. H5: Consumer buying decision is positively influenced by Marketing Mix, i.e. the higher the use of effective Marketing Mix, the higher the consumer buying decision. METHODOLOGY Research Design The study was founded on a comprehensive, quantitative field study, using causal connections between independent variables of Marketing Mix (4P) product-price-placepromotion towards the dependent variables consumer buying decision. The consumers asked to be the respondents are also asked to write their opinions and preferences about their likes and dislikes of the Board Game Cafe in the critics and suggestions section in the questionaire. Samples The study was carried out in two Board Game Cafes in Malang City, which claim themselves a Board Game Cafe, and both of them are chosen to be the place for the research. There are 3.000 people found as the population, 1.200 from Lego House Board Game Cafe and 1.800 from UNO Board Game Cafe. Using the Slovin formula to count the minimum sample should be taken in the research, with 10% error bound, the number of respondents taken is 97 respondents, 39 respondents from Lego House Board Game Cafe and 58 respondents from UNO Board Game Cafe. The method used is nonprobability sampling, quota sampling type. Measures The questionaire was designed in likert scale, with Marketing Mix (4P) product-priceplace-promotion as four independent variables and consumer buying decision as the dependent variable. Each of the question has 4-point likert scale as the measurement of product, price,place,and promotion over consumer buying decision. The Cronbach Alpha coefficient for product, price, place, and promotion over consumer buying decision were 0.793, 0.642, 0.718, 0.688, and 0.702.

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FINDINGS Results among the entire research sample Linear regression analysis was used to access the direct effect of product, price, place, and promotion on consumer buying decision to board game cafe. The linear regression results showed (See Table 1) that Marketing Mix (4P) as the independent variables accounted for 41.3 percent of the variation in consumer buying decision (R2=0.413; Adjusted R2=0.387, F=16.170, Sig.=0.000). Table 1. Linear regression results

Constant Product (X1) Price (X2) Place (X3) Promotion (X4) R R2 Adjusted R2

B .911 .043 .198 .222 .242 .643 .413 .387

Coefficients Beta t 3.274 .045 .413 .252 2.735 .296 2.869 .259 2.705 F Sig.

Sig. .001 .680 .007 .005 .008 16.170 .000

Source: Processed data Consumer buying decision was positively and insignificantly influenced by product (B=0.043, Beta=0.045, Sig.=0.680). Consumer buying decision was positively and significantly influenced by: price (B=0.198, Beta=0.252, Sig.=0.007), place (B=0.222, Beta=0.296, Sig.=0.005) and promotion (B=0.242, Beta=0.259, Sig.=0.008). As can be seen, consumer buying decision was positively influenced by all of the independent variables, significantly influenced by price, place, and promotion. Based on these findings, it can be determined that H1 (product), H2 (price), H3 (place), H4 (promotion) and H5 (marketing mix 4P) were confirmed. DISCUSSION AND IMPLICATION Based on multiple regression analysis, the findings revealed that among the 4Ps tested, that is, product, price, place, and promotion, only product that is not significantly affect in marketing mix to affect customers’ buying decision-making to board game cafe. The other three: price place and promotion emerged as the strong predictors. This finding thus corroborated with other studies of reference: about price (Kristianto, 2013; Nganduh, 2013; Satit et al., 2012), place (Levy and Weitz, 2009; Tongku, 2013; Ryu et al., 2012), promotion (Kotler and Keller, 2009; Te'eni-Harari and Jornik, 2010; Tongku, 2013). In terms of product, the perception of high product and servive quality will directly lead to high levels of purchase intention and repeat buying. Jauw (2014) found that products may does not matter for consumers as long as the other aspects are supportive to the buying decision. For example, when customers see that the board game cafe have a great convenient place to stay or attracting event and discount, instead of great package of products and services, they will still be interested in coming and staying to play. To make the product elements more affective, product attributes such as

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product quality, complete and accurate information, capability to give suggestions and assistance, superior service, and so on have to be upgraded. Then, it may influence customer decision-making over coming back to board game cafe. In terms of managerial implications, board game cafe should, preferably, not just focus on the tangible aspects of a product. Rather, they should seriously focus on the intangible or unobservable product attributes, such as game packaging, game play instructions, supporting decorations and interior decorations, safety place for food and beverage under the table surface and so on. For price strategies, board game cafe should provide special package and discount especially for students, i.e ladies day every Wednesday, 25% discount from 1 PM up to 5 PM for food and beverage, or 30% direct discount for student card bearer. Atmosphere situation should also be attended, by providing proper lighting, dividing the smoking and no smoking area, maintaining toilet and wash basin hygiene, supporting interior decorations and music. For promotion aspects, board game cafe can provide innovative events such as gaming competitions, new game training, special package promo (i.e lunch package) and buy more get bonus (buy 3 get 1 more!). CONCLUSION Marketing Mix (4P) affect and play an important role on board game cafe consumer buying decision. The variable price, place and promotion positively and significantly influencing consumer buying decision. A board game cafe should not only focus on the tangible aspects of a product but also the intangible or unobservable product attributes. The board game cafe business is a creative and innovative business. It needs entrepreneurial creativity and periodic control in its performance and service in order to fulfill the consumers’ desires, especially the intention to playing games together and having fun on site, as well as serving proper food and beverages. REFERENCES Akrani, G. 2010 Marketing Mix and 4Ps of Marketing - Management Article. Available at: http://kalyan-city.blogspot.com/2010/05/marketing-marketing-mix-4-ps-of.html (Accessed: 28 April 2014). Disa, O.E. 2013 Analysis of the Influence of Service Quality, Facility, and Location on Decision to Stay in Citihub Hotel Surabaya, Thesis. Tourism and Hotel Management Department, Faculty of Economics, Universitas Ciputra, Surabaya. Jauw, A.Y. 2014 Influence of Marketing Mix on Prospective Consumer Buying Decision to BonBon Company, Thesis. International Business Management Department, Faculty of Economics, Universitas Ciputra, Surabaya. Ryu K., Hye-Rin Lee, Woo Gon Kim, 2012 The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions, International Journal of Contemporary Hospitality Management, Vol. 24 Iss: 2, pp.200 – 223. Kotler, P., G. Armstrong. 2010 Principles of Marketing, 13th edn, Pearson International Education. New Jersey, USA: Pearson Prentice Hall.

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Kotler, P, K.L. Keller. 2009 Marketing Management, 13th edn. Pearson International Education. New Jersey, USA: Pearson Prentice Hall. Kristianto, R. 2013 Influence of Price and Service Quality on Consumer Buying Decision in Emeralcoo, Thesis. International Business Management Department, Faculty of Economics, Universitas Ciputra, Surabaya. Levy, M. dan B.A. Weitz, 2009 Retailing Management, 7th edn. New York, USA: McGrawHill/Irwin Malang Media Center. 2014 Online Tax Program, Malang Regional Taxation Management Innovation. Available at: http://mediacenter. malangkota.go.id/wp-content/uploads /2013/11/E-TAX.pdf (Accessed: 25 August 2014) Merriam-Webster Dictionary. 2014 Definition of Board Game. Available at: http://www.merriam-webster.com/dictionary/boardgame(Accessed: 18 March 2014). Merriam-Webster Dictionary. 2014 Definition of Café. Available at: http://www.merriamwebster.com/dictionary/café (Accessed: 18 March 2014). Nganduh, A.V. 2013 Analysis of the Influence of Product Quality and Price on Consumer Buying Decision Nggolek Indie Accessories, Thesis. International Business Management Department, Faculty of Economics, Universitas Ciputra Surabaya. Satit, R.P et al. 2012 The Relationship Between Marketing Mix and Customer Decision-Making Over Travel Agents: An Empirical Study. International Journal of Academic in Business and Social Sciences Vol. 2, No. 6. ISSN: 2222-6990 pp. 522-530. Solomon, M.R. 2013 Consumer Behavior: Buying, Having, and Being. Pearson Education Ltd. USA: Courier/Kendalville Te’eni-Harari,T., J. Hornik 2010 Factors influencing product involvement among young consumers. Journal of Consumer Marketing, Vol. 27 Iss:6, pp.499-506. Tongku, C.M. 2013 Analysis of the Influence of Atmosphere and Promotion Media on Buying Decision in Matchbox Too Coffee & Friends Surabaya, Thesis. Tourism and Hotel Management Department, Faculty of Economics, Universitas Ciputra, Surabaya. Wikipedia, The Free Encyclopedia. 2014 Board Game. Available at: http://en.wikipedia.org /wiki/Board_game (Accessed: 18 March 2014). Wisana, N.G. 2011 Why Board Game? Board Game Benefits in Digital Era. Available at: http://arulingame.blogspot.com/p/mengapa-board-game.html (Accessed: 10 March 2014).

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THE APPLICATION OF PROJECT BASED ENTREPRENEURSHIP LEARNING MODEL Wina Christina1, David Sukardi Kodrat2, Yusak Anshori3 Universitas Ciputra INDONESIA E-mails: [email protected],[email protected], [email protected]

ABSTRACT This research aims to create an Entrepreneur by Design by: (1) finding the right model of entrepreneurship education to create entrepreneur rightly, not only as studied by traditional methods, (2) able to apply the model to create entrepreneurs. The research method used was action research with design research cycle model to improve and enhance the project-based model of entrepreneurship education through limited testing (pre-experiment). In this experimental study, the difference will be monitored before and after receiving treatment, participants will be interviewed about the readiness of becoming entrepreneur.

Keywords: Entrepreneurship by Design, Project Based Learning Models, Pre-experiment

INTRODUCTION Development sociologist David McClelland found that a country would prosper if the entrepreneur has at least 2% of the total population. The Global Entrepreneurship Monitor (GEM) 2005 report entrepreneur Singapore has 7.2% of the total population, whereas in 2001 only 2.1%. In 1983, the U.S. with a population of 280 million have 6 million entrepreneurs, or about 2:14% of the entire population. According Ciputra in Nugroho (2009), Indonesia only has about 400,000 entrepreneurs or about 12:18% of the total population. The Government of Indonesia noted that the number of businesses is reaching 50 million, but the real entrepreneur was approximately 0.8% of the entire population of business, the rest is a businessman subsistence. This is in contrast to Keynes's theory, that the focus of economists is full employment. The government is creating jobs. According to Nugroho (2009) theory is efficacious in the year 1970 to 1990, at 1% saar economic growth, employment for 400,000 people reached. Growth of 5% has been creating 2 million new jobs. But now, when the real sector dominates investment capital and technology intensive, then every 1% growth in the economy only created 200,000 jobs. Not surprisingly, growing unemployment, including unemployment intellectual or scholar.

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The economic crisis in Indonesia realize that the nation's economy and SMEs become the foundation of an important choice for scholars to live a more prosperous, independent, helping people to cope with unemployment (Kasali, 2010). Therefore, in Bappenas Government continues to rethink the development paradigm. In schools, the curriculum is transformed from a curriculum that prepares students to be "job ready workers" into "man job creators". Prof. Lester C. Thurow (1999) in his book "Building Wealth" clearly states, "There is no substitute for the institution of individual entrepreneurial agents. The game-winning entrepreneurs become wealthy and powerful, but without the entrepreneurs, the economy being poor and weak. " According to Prof. Dr. Irwan Abdullah, UGM Graduate Director, the role of higher education in instilling entrepreneurial virus is very strategic, considering the number of universities and hundreds of thousands of graduates who immediately falls in the community each year. The graduates it should not add new problems in society, otherwise competent in solving real problems as the agent of change. In a historic speech, which was recorded under the title "The Importance of Entrepreneurship" (2007), Ciputra offers five important reasons why it is necessary to promote entrepreneurship in developing countries such as Indonesia: (1) The fact that most of the young generation of Indonesia did not grow up in a culture of entrepreneurs, but rather a culture of "employee" or "worker" or "public servants". Entrepreneurship education does not exist in the family. This resulted in the younger generation to have the mindset of "looking for work. (2) If entrepreneurship does not exist in the family and formal education, inspiration and entrepreneurship training will be less reflected. (3) It should be delivered since elementary school that currently too many job seekers and too few job creators. With this fact, it is expected the young generation can think of the choice to become an entrepreneur and knows how to prepare to become an entrepreneur. (4) Transforming educational institutions into institutions that introduces entrepreneurship from an early age, and involve all actors, including entrepreneurs and experienced as an entrepreneur (5) The growing number of entrepreneurs not only help the younger generation, but rather to encourage the creation of public welfare. 1.2 Specific Objectives The specific objectives of this study: Development and testing of the entrepreneurship model by using the pre-experiment LITERATURE REVIEW Citing Caroline Jenner in The Next Generation Survey, "We cannot give them jobs, but we can ensure that they have the core skills and competences to create them". Education is a process of planting the value of responsibility to be human. Ciputra (2009) defines the entrepreneur as a modifier of dirt into gold. When dirt and junk can be turned into gold, gold is worth something otherwise end up being junk

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when there is no entrepreneurial skills. Sentence dirt and junk into gold is just a figurative meaning. Key words of the definition is to change and creativity. Three reasons why the school or education as an instrument according to Nugroho (2009): 1. Education's happening around the world in general to build a human worker. Almost all give vision and learning to be a worker. 2. School as an educational institution that is trusted by the people, already had a reputation as a passport to the future. 3. Through the school is also the family of the students will be moved. Magnus Klofsten & Mary Spaeth (2004) concluded that there is a 12 step program for successful entrepreneurship training: 1. The training program must be holistic (as opposed to knowledge entrepreneurship) 2. Prepare the best coach for each of the competencies required 3. Understand the needs of each participant with a clear 4. Associate entrepreneurship training program with a network of business (the business community) 5. Strengthen confidence of participants 6. Measurable progress and document each process 7. Use strategies and practical tips that proved very successful training 8. Mentoring program Plan carefully 9. Ensure entrepreneurship training program is a very practical program but have the basic theory. 10. Center training programs to the needs of the group that has been targeted. 11. Credibility training Create and maintain a work ethic and ethics during the program. 12. Balance formal and informal learning. The successful entrepreneur each has its own formation process, the time and effort that is not small. The integration of entrepreneurship education in the national curriculum is the most important way to increase the number of entrepreneurs in Indonesia, because it is through a national education program, we can reach out to as many people in a systematic way. Economic newspaper Bisnis Indonesia (2008) contains guidelines for testing someone who wants to be a successful entrepreneur, based on practical experience of Ir. Ciputra: 1. Whether you are very passionate (passionate) to become entrepreneurs? 2. Did you see a great opportunity to creatively serve the market? 3. Did you have created an innovative product that when you offer the prospect of not being able to say no? 4. Did you have the capacity to effectively win the competition? 5. Did you know how to produce a product or service that you want to be marketed with the most efficient way? 6. Did you know how to fund your new venture with the overall lowest cost and lowest risk while still you get the best results? 7. Are you ready to face the demands of hard work, the risk of failure, and loss?

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METHODOLOGY RESEARCH In this experimental study, we will monitor the differences of readiness to become entrepreneurs, before and after the workshop. Number of samples are 30 respondents of high school students. Data will be analyzed using paired-t-test statistics (one group, pretest & post-test). Topics that are covered in the workshop are: (1) Vision - stages to achieve and the means necessary (2) Design Thinking (3) My Inspiration (4) Market Insight (5) Business Opportunity (6) Entrepreneur Inspiration (7) Entrepreneur Character DATA ANALYSIS Paired Samples Test

Pair 1 Pair 2 Pair 3 Pair 4 Pair 5 Pair 6 Pair 7

X1.Mean X1.MeanS X2.Mean X2.MeanS X3.Mean X3.MeanS X4.Mean X4.MeanS X5.Mean X5.MeanS X6.Mean X6.MeanS X7.Mean X7.MeanS

Paired Differences 95% Confidence Interval of the Difference Std. Std. Error Mean Deviation Mean Lower Upper .80658 .14726 -1.06785 -.46548 .76667 .98644 .18010 -1.32401 -.58732 .95567 .66415 .12126 -.58133 -.08534 .33333 .69202 .12635 -.37841 .13841 .12000 1.02824 .18773 -1.20595 -.43805 .82200 .93258 .17027 -.82623 -.12977 .47800 -.65667 .16496 -.99405 -.31928

t

df - 29 5.206 - 29 5.306 - 29 2.749 -.950 29

Sig. (2tailed) .000 .000 .010 .350

- 29 4.379 - 29 2.807 - 29 3.981

.000 .009 .000

Reliability Statistics Cronbach's Alpha

N of Items .917

4

Reliability Statistics Cronbach's Alpha

N of Items .882

3

Reliability Statistics Cronbach's Alpha

N of Items .700

4

Reliability Statistics Cronbach's Alpha

N of Items

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Reliability Statistics Cronbach's Alpha

N of Items .818 Reliability Statistics

Cronbach's Alpha

5 N of Items

.596

3

Reliability Statistics Cronbach's Alpha

N of Items .734

3

Reliability Statistics Cronbach's Alpha

N of Items .826

3

Based on the data above, all the data have passed the reliability test, except “Business Opportunity”. Variable business opportunity was close to 0.6 so it was actually considered as mediocore so still fine to be embedded in this research. Business opportunity was unreliable maybe because the opportunity to launch the product to market is varies widely. Not all the respondents have the same background of selling. Variables vision, design thinking, my inspiration, business opportunity, entrepreneur inspiration, and entrepreneur character showed that there are differences of readiness to become entrepreneur, before and after the workshop. That means the workshop or the entrepreneurship learning model was applied correctly and brought significant result for students; enrich students with skills and knowledge, using observation/analysis before making decision, boosting characters and passions, and calculating risk. All the variables showed differences of readiness before and after the workshop but “Market Insight” variable. The significance value of Market Insight is 0.350 > 0.05 which means that there are no differences on the readiness of being entrepreneur from the respondents. What sell well in the market and what does not sell well is a true mystery. That is why maybe after the workshop the respondent still not sure about the favor of the market. CONCLUSION AND SUGGESTION Conclusions: 1. Variables: vision, design thinking, my inspiration, business opportunity, entrepreneur inspiration, and entrepreneur character showed that there are differences of readiness to become entrepreneur, before and after the workshop. 2. Variable market insight showed no differences on the readiness of being entrepreneur from the respondent, before and after the workshop. Suggestions: 1.

Do not embed external factors (like market insight and business opportunity) in the experimental research like this. Involve or measure only individual experience (personality, characters, and so forth).

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2.

Further research should combine classroom workshop with field study like sales contest, business plan presentation, etc.

REFERENCES Ciputra. 2008. Ciputra Quantum Leap. Jakarta: PT. Gramedia Drucker, Peter E. 2005. Managing for the Future. New York: Harper and Row Friedman, Thomas. 2005. The World Is Flat. New York: Farrar, Strauss & Giroux Gartner, W.B. 1990. What Are We Talking About When We Talk About Entrepreneurship? Journal of Business Venturing 5: 15 – 28. Hornaday, J.A dan Aboud, J. 1971. Characteristics of Successful Entrepreneurs, Personal Psychology, 24: 141 – 153 Jeffry A. dan Stephen Spinelli. 2004. New Venture Creation:Entrepreneurship for the 21st Century. 6th edition. New York: The McGraw Hill Companies, Inc. Kasali, dkk. Modul Kewirausahaan. Jakarta: PT. Hikmah. Kao, JJ. 1989. Entrepreneurship, Creativity and Organization. Englewood Cliffs, N.J: PrenticeHall.Kirzner, I.M. 1982. Uncertainty, discovery and human action: a study of the entrepreneurial profile in the Misean system in I.M. Kirzner (Ed) Method, Process and Astrian Economics: Essays in Honour of Ludwig von Mises, Lexington, MA: DC Heath. Kodrat, David Sukardi, 2011. Strategi Menambah Jumlah Usaha Mikro, Kecil, dan Menengah (UMKM) Melalui Pendidikan Entrepreneurship untuk Menyongsong Tahun 2020 (Best Paper) Proceeding SNKIB I, Jakarta: Universitas Tarumanagara. Kolb, DA. 1984. Experiential Learning. New York: Prentice Hall. Kuncoro, Mudrajad . 2009. Metode Riset untuk Bisnis. Jakarta : Penerbit Erlangga Landes, David 1999. The Wealth and Poverty of Nations: Why Some Are So Rich And Some SoPoor. New York: W.W. Norton. Miller, D. 1983, The Correlates of Entrepreneurship in Three Types of Firms, Management Science, 29 (July): 770 – 791. Mischel, M. 1968. Personality and Assessment. New York: Wiley. Morris, Michael, H. 1998, Entrepreneurial Intensity: Sustainable Advantages for Individuals, Organisations, and Societies. Londoh: Quorum Books Morris, M.H dan Sexton, D.L. 1996. The Concept of Entrepreneurial Intensity: Implications for Company Performance, Journal of Business Research, 36 (1): 5 – 14. Nugroho. 2009. Memahami Latar Belakang Pemikiran Entrepreneurship Ciputra. Jakarta: PT. Elex Media Komputindo

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Schumpeter, Joseph A. 1942. Capitalism, Socialism and Democracy. New York: Harper Shane, S. 2003. A General Theory of Entrepreneurship. The Individual opportunity nexus. Cheltenham, UK: Edward Elgar. Sucipto, Tri dan Tukiran, 1995. Proyeksi Penduduk Indonesia Tahun 1990 – 2050. Yogyakarta: Pusat Pendidikan Kependudukan Universitas Gadjah Mada. Tropman, J.E., dan Morningstar, G. 1989. Entrepreneurship Systems for the 1990's. New York: Quorum Books

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THE INFLUENCE OF SERVICE QUALITY AND PRICE TOWARDS PURCHASING DECISION FOR ANUGERAH SOUND SYSTEM SERVICE EMPLOYMENT Marietta Valencia Wirawan1, Tina Melinda2 INDONESIA E-mails: [email protected], [email protected] ABSTRACT The core of this study is ultimately aimed to determine the factual influence of Service Quality and Price towards the concocted Purchasing Decision outcome, which analytically settles the service employment decision for Anugerah Sound System, both simultaneously and partially. The study utilizes a causal-comparative quantitative approach and Multiple Linear Regression Analysis in determining the influence of Service Quality ( ) and Price( ) against the very notion of Purchasing Decision(Y). Specifically, a total number of 40 customers coming from Anugerah Sound System are hereby designated to contribute as study population within the context, whereas the 32 respondents are chosen through the usage of Slovin formula. Presently, questionnaire may be deemed as the most appropriate data retrieval technique to be endorsed for the research. Results of this study indicate that Service Quality ( ) and Price( ) simultaneously influence Purchasing Decision(Y). It can be seen from the f test value of 13.22 and its significance level of 0.000. Partially, the independent variables also give a significant effect on the dependent variable, as depicted from the result of the t test.

Keywords: Service Quality, Price, Purchasing Decision INTRODUCTION In this eon, the significance of globalization has taken its turn to grow in a progressive manner, particularly within the business world. Such notion then invigorates companies and enterprises around the world, hence striving to be superior against each of their competitors. Consequently, radical improvements are then implemented in order to boast the organizations’ supremacy and dominance within the very eyes of the customers. In the midst of this intensely occurring competition, Anugerah Sound System also aims to improve and materialize factual better mends toward total achievement of maximum and outstanding business outcomes. Anugerah Sound System was established in the year of 2001, and is located in Surabaya, Indonesia. The company itself operates as an equipment rental for events, thus providing gears such as sound system, lighting, stage, multimedia, etc. In relation with the study, Anugerah Sound System is known as a business engaged within the sector of service; as the notions of service quality and price to be note worthy in the attempt to achieve better future accomplishments.

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Table 1. The Income of Anugerah Sound System in period 2009 - 2014 Years 2009 2010 2011 2012 2013 Jan – May 2014

Income (Rp) 1.441.071.000,1.870.977.500,2.421.800.000,2.671.550.000,3.349.200.000,1.198.400.000,-

Growth (%) 29,8 29,4 10,3 25.4

Source: Data were processed in 2014 Table 1 presents the data of turn over obtained by Anugerah Sound System within the period of 2009 – 2014. From the presentation, it may be seen that the turnover of Anugerah Sound System has increased from year to year. But if traced further, the growth demonstrated significantly less likely to change, even decreased.

Figure 1. Data of Consumer Complaints and Feedback of Anugerah Sound System in 2013 Source: Data were processed in 2014 According to the data shown in Figure 1 above, the main complaints and feedback expressed by consumers Anugerah Sound System is the service quality and price. Although consumers are satisfied of the quality of service and price, but consumers remain to suggest that there needs to be improvement apart from the specification, which is the most important thing is price and service quality. In this study there are three objectives, the first is to investigate the influence of service quality and price simultaneously to the purchasing decision to use the services Anugerah Sound System. The second goal from this study is to determine the influence of the service quality to the purchasing decision to use the services of Anugerah Sound System. And the third goal is to investigate the influence of price to the purchasing decision to use the services of Anugerah Sound System. CONTEXT AND REVIEW OF LITERATURE Understanding the Purchase Decision According to Winardi (2010) purchase decisions made by consumers is a process of evaluation of various options. Meanwhile, according to Peter and Olson (2009)

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purchase decisions can also be interpreted as a process of integration which is a group of the evaluation process of two or more of the alternatives on offer and choose one of them. Sutisna in Soebianto (2014) stated that the benchmark for measuring the purchase decisions is divided into two dimensions, namely the association benefits and the frequency of purchase. Which belong to the association benefit criteria is when consumers discover the benefits of the product to be purchased and relate it to the characteristics of the product identity. Which belong to the dimensional frequency of purchase is when consumer that buy a particular product and is satisfied, then make repeated purchases. Purchase decision is an important decision for the success of a product or service, because with the purchasing decisions made by consumers to use the product or service, it will be superior in the eyes of consumers when compared with its competitors. This is reinforced by the statement made by Schiffman and Kanuk inWidagdo (2011), stated that the purchase decision is a decision made by a person in which the person has determines his choice after selecting various alternatives. A similar statement also conveyed to Kotler (2011), purchase decisions is a decision taken by the buyer which is actually a collection of a number of decisions.

Recognition Problem

Information Research

Evaluation of Alternative

Purchasing Decisions

PostPurchase Behaviour

Figure 2. Five Stages of Purchase Decision Source: Engel, et al. (2012) In making purchasing decisions in Figure 2 there are 5 stages of the process that occurs (Engel, et al., 2012). The first process is to analyze the needs and desires, which aims to determine the needs and desires unfulfilled. The next stage is the search for information, where such information can be passive, active internal, and external, such as quality of service, price, product benefits, specifications, side effects, advantages, and disadvantages. Following the source and clear information, then go to the evaluation and selection of the various alternatives that exist, which are based on the purpose of purchase which can varies from one individual to another. Furthermore, after going through various stages before, then consumers make purchasing decisions, which continues to the end of the stage where the behavior after the purchase if the consumer is satisfied then the dominant will make repeat purchases. Understanding the Service Quality Service quality affects the success of a company, both in the field of products or services. This is because the service quality determines the level of customer satisfaction and customer, where they distinguish between what is promised by the fact obtained. This statement is supported by the views expressed by Lupiyoadi (2013), service quality is a company which is expected to satisfy the customer is considered as one of the factors determining the success and quality of a company. A similar

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statement was also delivered by Tjiptono in Salim, et al. (2011). Tjiptono suggests that quality of service is identified as a means of measuring how well the level of services provided in satisfying customers. According to Parasuraman, et al., In Sancoko (2010), service quality is a measure in determining customer satisfaction, because the gap will occur when the service is not obtained in accordance with perceptions and desired by consumers. It can be concluded that service quality is an important benchmark in determining a good purchase decision for a product or service, because it is through the service quality provided to consumers, consumers can assess performance and determine the level of satisfaction or disappointment even for services rendered. In the end, satisfaction and disappointment is what will influence consumer behavior to consider the next purchase (Aryani and Rosinta, 2010). The service quality, there are many approaches and indicators. One approach to the quality of service that made reference is a theory proposed by Parasuraman SERVQUAL and Tjiptono in Rahayu (2011), where the service quality consists of five dimensions. The first dimension is reliability, which is the ability of a company or agency to provide services in accordance with what is promised as soon as possible, as accurately as possible, and satisfying, so as to fit and meet consumer expectations. The second dimension is responsiveness, which has the notion that responsiveness is the desire that arises from the staff to help customers and provide the best possible service and responsive to the desires of consumers and to provide information as accurately as possible to the consumer. This will have an impact on customer satisfaction, where if you make customers wait too long, not served quickly, even ignoring the demand of consumers, then consumers will feel disappointed and give a poor assessment of the quality of services provided by a company or agency. The third dimension is the assurance, that the subject matter include things that relate to the knowledge, ability, courtesy, and trustworthy character that it shall be owned by every staff, so customers can be free from a sense of danger or doubt. Furthermore, the fourth dimension is empathy. In this dimension includes giving attention to the consumer where attention is given to every sincere and individual consumers, with an attempt to understand what is wanted and needed by consumers. In this section, the company is required to have an understanding and knowledge of specific consumers, both in terms of serving the needs of consumers and customers as well and as accurately as possible. And in the end, the last dimension is the tangibles, the ability of a company to expose the existence of the company to external parties, especially to consumers, good facilities and infrastructure companies in the form of physical and ambient conditions. It can be a real proof of service that can boost the confidence of consumers, which includes buildings, equipment, warehouse, equipment, and appearance of company employees. Understanding the Price Price has a lot of definitions which are the result of research and understanding of the experts. One is the definition put forward by Engel, Miniard in Tan (2011), who concluded that the price is a risky variable where the variable is used as a basis in developing marketing programs for a company or agency, where if it can run with well, it can be an attraction and success. Other narrative is also conveyed by Swastha (2010)

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which states that the price is one part of the marketing mix, which is the only part that generates sales revenue. Price may also be an important factor in determining customer satisfaction and loyalty (Regina, 2009). This is reinforced by the narrative Utari in Nova (2010). Utari reveals that prices have an important role because of the price paid by the customer to have a significant impact on customer loyalty, where when prices are set by a company higher, the customers tend to be less loyal. In addition, the price can also be a good differentiation factor when compared to the price offered by a competitor, because the price is a psychological factor in the buying process (Limsanny, 2009). Price is considered one of the psychological factors in the buying process as it is based on irrational behavior in humans when purchasing processes running. Because the price is one of the factors that are considered important in influencing purchasing decisions, it is necessary to establish the best possible price in order to be accepted by consumers. According to Kotler (2011), there are 3 factors that affect the pricing process. The first factor is the cost to be the lower limit. While the second factor is the price of a competitor and the price of goods or services of a replacement be an important subject to consider. Last factor is the customer's assessment of the added value and uniqueness offered by a company, in which this issue can be used as the upper limit of the price. Hypothesis The hypotheses proposed in this study are as follows: H1 : Service quality and price has to simultaneously influence purchase decision to use the services Anugerah Sound System. H2 : Service quality has a significant influence on the decision purchase to use the services Anugerah Sound System. H3 : Price has a significant influence on purchase decision to use the services Anugerah Sound System. RESEARCH METHODS The research approach used in this study is quantitative causal comparative approach. Causal comparative quantitative research is research that indicates the direction of the relationship between independent variables with the dependent variable, along with the size of the power contained in the relationship (Sangadji and Sopiah, 2010). In this kind of research, aiming to identify the facts or an event as influenced variable (dependent variable) and the variables that influence (independent variables). Total population in this study is determined from the number of customers of Anugerah Sound System in the year 2013 is 40 people. In this study, for the collection of samples, the technique used in this study is purposive sampling. Purposive sampling is sampling technique that is done on the basis of considerations that researchers think about the desired characteristics and has existed in a sample (Lohr, 2009). In this study, the characteristics used in selecting the appropriate sample for this study is customer who has used the services Anugerah Sound System with a minimum of 2 times the minimum transaction of Rp 2,000,000.00. To determine the number of samples is appropriate and feasible for this research, it is used Slovin formula, and found which is the number of samples are 32 respondents.

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The data used in this study is Data interval, which is associated with the price and service quality. Sources of data used in this study are divided into two, namely internal and external. What is meant by the internal data is a data company. While categorized into external data is data about competitors and a wide range of literature review and other sources such as previous studies, reference books, etc. Data collection methods used in this study is through questionnaires and interviews. Variables examined in this study can be divided into two. The first variable is called the independent variable which consists of the service quality ( ) and price ( ). While the second variable is called the dependent variable is the purchase decision (Y). Data Analysis Techniques 1. Multiple Linear Regression Analysis Multiple linear regression is a method used to determine whether there is influence of independent variables on the dependent variable (Ghozali, 2011). Multiple linear regression equation used in this study is as follows: Specification: Y : Dependent Variable (purchase decision) : Numbers constant (indicating the influence of the independent variables sthe dependent variable) : Error / Residual : Regression Coefficient X1 : 1st Independent Variable (service quality) X2 : 2nd Independent Variable (price) 2. Simultaneous Significance Test (F test) F test was conducted in order to determine whether the independent variables have a significant effect simultaneously on the dependent variable (Sutrisno in Istiarini and Sukanti, 2012). The conclusion that can be drawn from the F test is if the value of the F test of significance smaller than 0.05, it indicates that there is a significant relationship between service quality and price simultaneously to the purchasing decision to use the services Anugerah Sound System. 3. Individual Significance Test (t test) T test conducted in order to determine the significance between the dependent variable (Sugiyono in Istiarini and Sukanti, 2012). The conclusion that can be drawn from the t test is if the value of the t test of significance smaller than 0.05, it indicates that there is a significant relationship between service quality and price partially to the purchasing decision to use the services Anugerah Sound System.

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RESULT Characteristics of Respondents Table 2. Characteristics of Respondents by Gender and Age Attributes Gender

Age

Category Male

Number 22

Percentage (%) 68,75

Female

10

31,25

20-24 years old

11

34,38

25-28 years old

19

59,38

> 29 years old

2

6,25

Source: The study results were processed in 2014 From the table above, it can be seen that most of the respondents by gender is male as many as 22 people (68.75%) and the highest age category is age 25-28 years by the number of 19 people (29.38%). Multiple Linear Regression Analysis Based on the research that has been done then obtained the following results: Table 3. Result of Multiple Linear Regressions Regression Variable Coefficients Constants 0,633 Service Quality (X1) 0,385 Price (X2) 0,504 Source: The study results were processed in 2014 According to the table above, generated regression model is: Y = 0,633 + 0,385 X1 + 0,504 X2 Regression equation above can be explained as follows: 1. Regression coefficient of variable service quality ( ) is 0.385, it means that if the variable value is fixed price and service quality will go up one point, then the purchase decision (Y) will increase by 0.385. The coefficient is positive it means there is a positive relationship between service quality with the purchase decision, the higher the service quality, the higher the purchase decision. 2. Price variable regression coefficient ( ) pales 0,504 service quality variable value is fixed and the price will go up one point, then the purchase decision (Y) will increase by 0.504. The coefficient is positive it means there is a positive relationship between price of the purchase decision, the higher the price, the higher the purchase decision.

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F test Table 4. Result of F test Variable Sig. R2 Service Quality (X1) 0,000 0,477 Price (X2) Source: The study results were processed in 2014 Based on the F test in the table above shows that F Calculate the resulting value of 13,228 with a significant level of 0.000, which is smaller than 0.05, which means it is of variable quality service and price simultaneously significantly influence purchasing decisions. t test Table 5. Result of t Test Variable Sig. Service Quality (X1) 0,048 Price (X2) 0,002 Source: The study results were processed in 2014 t value in the variable service quality by 2,066 to 0,048 below the significant level of 0.05, have indicated that service quality variables partially influence on purchasing decisions. Similarly, the price variable, the resulting value of t at 3.392 with a significant level of 0.002 below 0.05, it means the price variable partially influence on purchasing decisions. CONCLUSION Based on research results that have been discussed in the previous chapter, it can be concluded as follows: 1. Service quality and price have simultaneous influence on purchasing decisions to use the services of Anugerah Sound System. Where although the service quality is good, but not supported by competitive prices, then the consumer will not be tend to choose to use the services of Anugerah Sound System. If the price offered is also quite compete with the competitors, but the service quality provided is not good and satisfying the consumer, then the consumer also tend to not use the services of Anugerah Sound System. It can also be seen from test results showing that purchasing decisions are influenced by 47% by the service quality and price, and the rest is influenced by other variables. 2. Service quality has a significant influence on the purchase decision to use the services Anugerah Sound System. Because of Anugerah Sound System engaged in the service, quality of service is one subject that is important to satisfy the consumer. With the satisfaction obtained by the consumer, it will affect the decisions of consumers, where consumers will be more inclined to use the services Anugerah Sound System. 3. Price has a significant influence on the purchase decision to use the services Anugerah Sound System. In addition to the service quality, price is also an issue that should be considered, as it affects consumer purchasing decisions. With the

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competitive prices and in accordance with the fund initiated by the event organizer or the consumer, then the consumer will be more likely to use the services Anugerah Sound System. Managerial Implications Table 6. Comparison Before and After Research in the Matter of Service Quality Before Study Sometimes Anugerah Sound System still not able to provide timely service in accordance with the promised.

Anugerah Sound System always get advice from customers due to dissatisfaction of consumers.

The marketing division of Anugerah Sound System sometimes not communicative to customers. Anugerah Sound System employees lack effective and efficient in the work.

Employee lack of understanding the specifications that offered to consumers. The need for manners in serving customers. Employee sometimes offers product specifications that are not required by the consumers. Employee serve customers with half-hearted even picky, so the results lack of satisfaction.

The limited number of products owned.

Consumers still complain of the appearance of the crew on the field at the time of the event expressed lack neat.

After Study 1. Create a journal per event and the client so that every task that must be done on time. 2. Provide pre-event and post-event questionnaires to the consumer so they will be able to assess the opinion of the services Anugerah Sound System. Improve the service quality by: 1. Be more friendly and on time. 2. Provide the best specification that fits the needs of consumers. 3. Provide pre-event and post-event questionnaires to the consumer so they will be able to assess the opinion of the services Anugerah Sound System. 1. Provide marketing training to the marketing division of Anugerah Sound System. 2. Provide facilities to facilitate the communication with the consumer. 1. Provide a target schedule or timeline so that each job can be completed on time and well. 2. Provide pre-event and post-event questionnaires to the consumer so they will be able to assess the opinion of the services Anugerah Sound System. 1. Provide training through the introduction of specifications are competent in their fields, both for the crew and marketing. 1. Provide a briefing in the morning. 2. Evaluation of work before the end of the day. 1. Collect details about the event. 2. Knowing the concept and the scale of the event, so it can customize any specifications according to the event held by consumers. 1. Provide evaluations to employees before the end of working hours. 2. Provide evaluation at end of the event, so that any problems can be evaluated properly. 1. Collect the existing stock. 2. Held to purchase additional products are preferred by many consumers, so that consumer demand can be fulfilled. 3. Provide substitute similar items, so when the time items desired by consumers is empty, then there are substitute products. 1. Provide uniform that must be worn during the event. 2. Require each employee to use the shoes, especially during the event, making it look neat and orderly.

Source: The study results were processed in 2014

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Table 7. Comparison Before and After Research in the Matter of Price Before Study The offers from Anugerah Sound System still in excess of the budget funds that have been set by the consumer.

Sometimes Anugerah Sound System still defeated due to higher prices that compared to competitors. Prices that set by marketing sometimes is not in accordance with the specifications provided to consumers. Consumer still complaining the crews’ performance even for pre-event and during the event.

After Study 1. Not only determine the price based on the pricelist. 2. Conduct a survey for the event that will be held by consumers, both in terms of concept, location, and scale of the event, so the price given to consumers not excessive. 1. Provide rebates in the form of sponsorship adapted to event being held, so it looks more attractive. 2. Provide additional bonus in the form of services and specifications. 1. The existence of pricelist that adapted to the prevailing prince in the market, as a matter of basic material price quote. 2. Prices still need to be flexible in accordance with the budget and needs of consumers. 1. Determine the classification performance of the crew. 2. Determine crew used during the event in accordance with the existing classification.

Source: The study results were processed in 2014 REFERENCES Aryani, Dwi dan Rosinta.2010’Pengaruh Kualitas Layanan Terhadap Kepuasan Pelanggan Dalam Membentuk Loyalitas Pelanggan’, Jurnal Ilmu Administrasi dan Organisasi,XVII(2),pp.114-126. Engel, et al., 2012 Perilaku Konsumen.Edisi ke-2.Jakarta:Binarupa Aksara. Ghozali, Imam. 2011 Aplikasi Analisis Multivariate Dengan Program SPSS.Edisi ke5.Semarang:BP Universitas DIponegoro. Istiarini, Risma dan Sukanti. 2012 ’Pengaruh Sertifikasi Guru dan Motivasi Kerja Guru Terhadap Kinerja Guru SMA Negeri 1 Sentolo Kabupaten Kulon Progo Tahun 2012’, Jurnal Pendidikan Akuntansi Indonesia,X(1) pp.98-113. Kotler, et al., 2011 Marketing Management.Edisi ke-14 belas.New Jersey:Prentice Hall. Limsanny. 2009 ’Strategi Peningkatan Loyalitas Konsumen Dengan Diferensiasi’. Jurnal Psikologi,XII(1), pp.24-27. Lohr, Sharon. 2009 Sampling: Design and Analysis (Advanced Series).Edisi ke2.Boston:Cengage Learning. Lupiyoadi, Rambat. 2013 Manajemen Pemasaran Jasa: Berbasis Kompetensi.Edisi ke3.Jakarta:Salemba Empat.

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Nova, Retnowati. 2009 ’Pengaruh Kualitas Layanan, Orientasi Layanan, dan Strategi Harga Terhadap Kepuasan dan Loyalitas Pelanggan (Studi Terhadap Pelanggan Jasa Transportasi Kereta Api Eksekutif)’,Jurnal Aplikasi Manajemen,VII(1). Peter, P. dan Olson. 2009 Costumer Behaviour.Edisi ke-5.Jakarta:Erlangga. Rahayu, Sri. 2011’ Internal Customer Satisfaction and Service Quality Toward Trust and Word of Mouth’,ASEAN Marketing Journal,III(2), pp.114-123. Regina, et al., 2009 ’The Relationship Between Price and Loyalty in Services Industry’, Inzinerine Ekonomika-Engineering Economics,III. Salim, et al., 2011 ’Pengukuran Kualitas Layanan Menggunakan SERVQUAL dan Confirmatory Factor Analysis (CFA) (Studi Kasus pada Jurusan Teknik Industri Universitaz XYZ)’,Prosiding Seminar Nasional Manajemen Teknologi,XIII. Sancoko, Bambang. 2010 ’Pengaruh Remunerasi terhadap Kualitas Pelayanan Publik’,Jurnal Ilmu Administrasi dan Organisasi,XVII(1), pp.43-51. Sangadji, Etta dan Sopiah.(2010)Metodologi Penelitian.Yogyakarta:ANDI.

Penelitian:

Pendekatan

Praktis

Dalam

Soebianto, Albert. 2014 ’Analisis Pengaruh Faktor-Faktor Brand Equity Sepeda Motor Merek Honda Terhadap Keputusan Pembelian Pada Konsumen Di Kota Bandung’,Jurnal Ekonomi,I(1). Swastha, Basu. 2010 Manajemen Penjualan.Edisi ke-3.Yogyakarta:BPFE Yogyakarta. Tan, Erwin. 2011 ’Pengaruh Faktor Harga, Promosi dan Pelayanan Terhadap Keputusan Konsumen Untuk Belanja di Alfamart Surabaya’,Jurnal Kewirausahaan,V(2). Widagdo, Herry 2011 ’Analisis Pengaruh Kualitas Layanan dan Promosi Terhadap Keputusan Konsumen Membeli Komputer Pada PT. XYZ Palembang’,Jurnal Ilmiah STIE MDP,I(1). Winardi. 2010 Kepemimpinan dan Manajemen.Jakarta:PT. Rineka Cipta.

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THE INFLUENCE OF SERVICE QUALITY AND PRODUCT QUALITY ON CUSTOMER SATISFACTION AT ANGIE’S CAKE SURABAYA Jessica Hardjawikarta1, Tina Melinda2 Universitas Ciputra INDONESIA E-mails: [email protected], [email protected] ABSTRACT The purpose of this research is to identify the impact of the service quality and product quality towards Angie’s Cake’s customer satisfaction at Surabaya. Furthermore, 180 Angie’s Cake’s customers are used as population in conducting the research. In this study, samples are taken using convenience sampling with 65 respondents involved in the process. Moreover, data are collected using a questionnaire that is measured by the Likert scale. Additionally, this study employs multiple linear regression analysis which is supported by the SPSS program version 20. Results have shown that the variable service quality and product quality variables have influenced Angie’s Cake’s customer satisfaction, either simultaneously or partially.

Keywords: Service Quality, Product Quality, Customer Satisfaction, Cake Industry INTRODUCTION Every moment that happened in life should be something special. The increase of social life in a big city makes people this day competing to shows what they got to capture every single moment that happened. It’s no longer a simple and full of means celebration of birthday, anniversary, wedding day, and much more. Every single part of the party become something special that have to get so much intentions. It happened not only at Jakarta as the capital city, so did happened at Surabaya as one of a big city in Indonesia. The growth of Surabaya’s populations increase in every years. A cake is not only one small part of this special event. For the birthday, wedding, and anniversary cake become one part of the decoration. The variation and innovation of designs, and flavors become something unique and pretty to served. Not only the qualities of the cake, a service of cake store could be one of people considerations to choose a cake vendor. A Cake industry this days has a really great opportunities. Angie’s Cake is one of so many cake store at Surabaya. Angie’s Cake has a middle-high concentration for their market target. Comparing to their competitors Angie’s Cake has few excellences, one of the many that makes Angie’s Cake above their competitors is on their quality of products. Angie’s Cake offers so many variant types of cakes: whole cake, popcake, cupcakes, and so many more. Not only the different type of cakes that they offers but they also got different flavors and designs for every cakes. The design can be customize

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as what the customer wants. Angie’s Cake never sell a ready stock for their product, every cake must be ordered before. The competition in cake industry this far is growing so fast at Surabaya. Every cake store try to gives the best of what they have for their each customers, from the variation of the product that include the designs, types, flavors, a good price, and the quality of service. Each of them must have their value added to their customer that causes customer satisfaction and doing the repeat order and not turned to their competitors. According to Tjiptono and Chandra (2011), service quality is a customer’s perception. Customers will evaluate the quality of a service that they get based on the description of their mind. There’s 5 indicators to measure the service quality based on SERVQUAL methods according to Zeithalm (2009:7): 1. Reliability: the ability to perform the promised service dependably and accurately. 2. Responsiveness: the willingness to help customers and to provide prompt service. 3. Assurance: the knowledge and courtesy of employees and their ability to convey trust and confidence. 4. Empathy: the provision of caring, individualized attention to customers. 5. Tangibles: the appearance of physical facilities, equipment, personnel and communication materials. Product quality is the understanding that the products offered by sellers have more selling points that are not owned by a competitor's product. Therefore, companies are trying to focus on quality products and compare them with the products offered by competitors. However, a product with the best view is not the highest quality products if the zoom is not needed and desired by the market. According to Kotler and Armstrong (2012:283) product quality is the ability to demonstrate a product in its function, it includes the overall durability, reliability, accuracy, ease of operation and repair products are also other product attributes. Product quality are the characteristics of products or services that depend on its ability to demonstrate its function, among others, the overall durability, reliability, accuracy, ease of operation and repair product attributes are also other products to satisfy consumer needs and wants. Kivela et al., in Gagic et al., (2013) recommended the 4 dimensional of product quality in food and beverage: 1. Fresh: the product must have a taste of freshness for example it must created by good quality of raw materials. 2. Presentation: the final presentation of the product have an attractive look. 3. Well cooked: the product must served in good way, hygienic, and saved to be consumed. 4. Variety of food and beverage: different customer has a different taste. Moliner in Malik (2012) shows two different ways to measure the customer satisfaction, first is with cognitive nature that is by comparing the expectation and the result, and the other is by affective nature that is association that followed by feelings. This research is using the cognitive nature. According to Sivesan (2012) there’s 4 indicators to measure customer satisfaction: 1. Service facility: facilities, vehicle, accessories. 2. Convenience and supporting service: delivery service, online order. 3. Customer loyalty: repeat order, good responses. 4. Customer value: value, benefits.

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METHODOLOGY This type of research is a quantitative descriptive type of research that describes the influence of service quality and product quality on customer satisfaction at Angie’s Cake Surabaya. With a population is a collection of individuals who have the qualities and characteristics that have been set. Based on the quality and characteristics, the population can be understood as a group of individuals or objects that have at least one observation of the characteristic equation. The population in this research were customers of Angie’s Cake Surabaya that made an order more than once time during May 2013 until May 2014. In this research is using a sampling procedure according to Cresswell (2013:218), procedure sampling is typically proceeds after a study begins and occurs when the researcher asks participants to recommend other individuals to study. The type of sampling that used in this research is a non probability in convenience sampling method. According to Kuncoro (2013:138) convenience sampling is the procedures to get the sample of research based on researcher’s wants where researcher have the freedom to choose who encountered as a sample, but still restricted to respondents who are consumers of Angie’s Cake Surabaya. In this research, the number of samples that will be used for is as many as 180 respondents. The numbers of sample of this research (n) calculated from Slovin’s formula which is: = n N e

=

: number of samples : number of populations : error tolerance

Therefore, the number of samples that will be used in this research is 65 samples based on Slovin’s formula 64,28 with the error tolerance 10%. Methods of data collection in this research is: 1. Questionnaire: according to Putro (2012: 33-36) questionnaire is a data collection method tools as a written question to respondent. The type of questionnaire that used is a closed questionnaire in Likert scale that already had the answer. 2. Literature study: a method to collect secondary data from books, magazines, journals, and another documents. HYPOTHESIS 1. Quality of service and product quality has a simultaneous effect on customer satisfaction Angie's Cake Surabaya. 2. Quality of service has a partial effect on customer satisfaction Angie's Cake Surabaya. 3. Product quality has a partial effect on customer satisfaction Angie's Cake Surabaya.

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RESULT AND DISCUSSION Angie’s Cake is one of so many cake store at Surabaya. It based and grow at Surabaya since 2002. Angie’s cake has specialization in wedding and birthday cake. Angie’s Cake has a special specification for their segmentation of buyers, middle-high become the target of customers. The store and production house of Angie’s Cake is on 62th Kayun street, Surabaya. For the production Angie’s Cake begin at 8.00-16.00, and for the store it open at 9.00-17.00. These day Angie’s Cake has 30 employees consists of 2 people for marketing, 2 for administration, 3 drivers, and the rest of it in charge at the production house: baking, finishing, accessorize, and many others. Statistic Description Characteristic of Respondents Number of male respondents as many as 27 people (41.5%) and women were 38 persons (58.5%). above data indicate that the majority of customers Angie's Cake is a woman. This is because women are more often pay attention to small things such as birthday, anniversary, and so forth. number of respondents aged 46 years as many as 10 people (15.4%). The above data shows that the majority of customers Angie's Cake aged 18 to 30 years. This is because in this age is the age at which the coproductive of vendors, are in the age group 18-30 years, and in this age category many customers from Angie's Cake is still in school and young mothers group where they have many friends and demands lifestyle. Table 1. Characteristic Respondents Characteristic Respondents Frequency Persentage (%) Sex Pria 28 41,5% Wanita 37 58,5% Age < 18 tahun 3 4,6% 18-30 tahun 33 50,8% 31-45 tahun 19 29,2% > 46 tahun 10 15,4% Source: Analyze Primary Data

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Descriptive Analysis Service Quality Table 2. Descriptive Analysis of Service Quality Dimension

ST S

delivery service

0

appointment’s accuracy

0

employee skills

0

good in responding customer needs

0

attitude

0

take corrections

0

trustworthy

0

friendly

0

online order

0

good in directing needs

0

safe and easy payment

0

comfortable showroom

0

fun showroom

0

showroom’s design

0

employee performance

0

% 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0

T S 0 0 0 1 0 0 0 0 1 1 0 0 0 0 2

Skor Jawaban C % % S 0. 18. 12 0 5 0. 3 4.6 0 0. 5 7.7 0 1. 10. 7 5 8 0. 5 7.7 0 0. 4 6.2 0 0. 2 3.1 0 0. 10. 7 0 8 1. 27. 18 5 7 1. 4 6.2 5 0. 3 4.6 0 0. 3 4.6 0 0. 5 7.7 0 0. 10. 7 0 8 3. 30. 20 1 8

S

%

2 4 2 0 3 7 3 2 4 6 1 8 2 1 4 2 2 6 2 2 3 1 3 2 2 9 2 8 2 5

36. 9 30. 8 56. 9 49. 2 70. 8 27. 7 32. 3 64. 6 40. 0 33. 8 47. 7 49. 2 44. 6 43. 1 38. 5

S S 2 9 4 2 2 3 2 5 1 4 4 3 4 2 1 6 2 0 3 8 3 1 3 0 3 1 3 0 1 8

% 44. 6 64. 6 35. 4 38. 5 21. 5 66. 2 64. 6 24. 6 30. 8 58. 5 47. 7 46. 2 47. 7 46. 2 27. 7

Mea n

Std. Deviatio n

4.26

0.76

4.60

0.58

4.28

0.60

4.25

0.71

4.14

0.53

4.60

0.61

4.62

0.55

4.14

0.58

4.00

0.81

4.49

0.69

4.43

0.59

4.42

0.58

4.40

0.63

4.35

0.67

3.91

0.84

Source: Analyze Primary Data Table 2 shows the mean of the variable service quality (X1) as a whole is 4.33. The greater the standard deviation value indicates that the spread of respondents (heterogeneous), if the standard deviation gets smaller, then show the answer on this question homogeneous. The standard deviation value of the largest found in the statement of employee performance with a value of 0.84 which means that the respondent’s answers to the statement most spread. While the value of the smallest standard deviation contained in the statement of trustworthy with the value of 0.55 which means that the statement has the most homogeneous response.

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Product Quality

Dimension

Table 3. Descriptive Analysis of Product Quality Skor Jawaban ST T C S S % S % S % S % S %

good taste

0

not rancid

0

fixing product

0

replacing product

0

outlook

0

product’s consistency

0

design consistency

0

final product

0

color matching

0

raw materials

0

best before information

0

how to keep product

0

packaging

0

shape and size of the product

0

variance of cake

0

variance of taste

0

accessorize

0

accessorize quality

0

design’s choices

0

0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0

0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0

0. 0 0. 0 0. 0 0. 0 0. 0 1. 5 0. 0 0. 0 0. 0 0. 0 0. 0 1. 5 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0

1

1.5

2

3.1

1

1.5

3

4.6

7 12

10. 8 18. 5

3

4.6

6

9.2

3

4.6

1

1.5

14 14 30 7

21. 5 21. 5 46. 2 10. 8

4

6.2

3

4.6

5

7.7

6

9.2

2

3.1

1 4 1 2 2 2 2 1 2 5 2 9 2 9 2 6 1 8 1 7 3 1 3 0 2 3 2 0 1 6 1 8 3 3 3 8 1 8

21. 5 18. 5 33. 8 32. 3 38. 5 44. 6 44. 6 40. 0 27. 7 26. 2 47. 7 46. 2 35. 4 30. 8 24. 6 27. 7 50. 8 58. 5 27. 7

50 51 42 41 33 23 33 33 44 47 20 20 12 38 45 44 27 21 45

76. 9 78. 5 64. 6 63. 1 50. 8 35. 4 50. 8 50. 8 67. 7 72. 3 30. 8 30. 8 18. 5 58. 5 69. 2 67. 7 41. 5 32. 3 69. 2

Mea n

Std. Deviati on

4.75

0.47

4.75

0.50

4.63

0.52

4.58

0.58

4.40

0.68

4.14

0.77

4.46

0.59

4.42

0.66

4.63

0.57

4.71

0.49

4.09

0.72

4.06

0.77

3.72

0.76

4.48

0.69

4.63

0.60

4.63

0.57

4.34

0.62

4.23

0.61

4.66

0.54

Source: Analyze Primary Data Table 3 shows the mean of the variable quality of the product (X2) as a whole is 4.44. The value of the greatest standard deviation found in product’s consistency and how to keep product with the value of 0.77 which means that the respondent’s answers to the two statements is the most spread. While the value of the smallest standard deviation found in the first statement about the quality of good taste with a value of 0.47 which means that the statement has the most homogeneous response.

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Customer Satisfaction Table 4. Descriptive Analysis of Customer Satisfaction Skor Jawaban Dimension

ST S

Facilities

0

means

0

accessorize

0

delivery service

0

online order

0

repeat order

0

good responses from customers

0

customer’s values

0

customer’s benefits

0

% 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0 0. 0

T S 0 0 0 0 3 0 0 0 1

% 0. 0 0. 0 0. 0 0. 0 4. 6 0. 0 0. 0 0. 0 1. 5

C S

%

S

%

10

15. 4

5

7.7

3 3 3 3 2 0 2 6 2 9 1 7 1 8 1 8 1 5

50. 8 50. 8 30. 8 40. 0 44. 6 26. 2 27. 7 27. 7 23. 1

22 18 14

33. 8 27. 7 21. 5

1

1.5

0

0.0

0

0.0

0

0.0

S S 22 27 23 21 19 47 47 47 49

% 33. 8 41. 5 35. 4 32. 3 29. 2 72. 3 72. 3 72. 3 75. 4

Mea n

Std. Deviatio n

4.18

0.68

4.34

0.62

4.02

0.84

4.05

0.78

3.98

0.84

4.71

0.49

4.72

0.45

4.72

0.45

4.72

0.55

Source: Analyze Primary Data Table 4 shows the mean of the variable Customer Satisfaction (Y) as a whole is 4.38. The value of the greatest standard deviation found in accessorize and online order with the value of 0.84 which means that the respondent’s answers to the two statements is the most spread. While the value of the smallest standard deviation found in the statements about good responses from customers, customer’s values, and customer’s benefits with a value of 0.45 which means that the statements has the most homogeneous response. Validity and Reliability Test Testing construct validity with SPSS is to use correlation. The criteria, the instrument is valid if the value of correlation (Pearson correlation) is positive, and the probability of correlation [sig. (2-tailed)] is less than significant level (a) of 0.05. Validity test is also performed by comparing the values of r calculated with the values of r product moment correlation. Table 5 below will show that the r value of each attribute (item statement) is greater than the value of r table product moment r value.

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Table 5. Validity Test Demensions Service Quality delivery service appointment’s accuracy employee skills good in responding customer needs attitude of polite take corrections Trustworthy Friendly online order good in directing needs safe and easy payment comfortable showroom fun showroom showroom’s design employee performance Product Quality good taste not rancid fixing product replacing product Outlook product’s consistency design consistency final product color matching raw materials best before information how to keep product Packaging shape and size of the product variance of cake variance of taste Accessorize accessorize quality design’s choices

Pearson Colleration

Probability Colleration (Sig.(2tailed))

Summary

.557 .514 .367 .462 .338 .618 .486 .353 .421 .425 .425 .491 .452 .647 .369

.000 .000 .003 .000 .006 .000 .000 .004 .000 .000 .000 .000 .000 .000 .003

valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid

.427 .363 .560 .521 .590 .721 .601 .618 .399 .424 .298 .400 .409 .510 .452 .504 .671 .392 .536

.000 .003 .000 .000 .000 .000 .000 .000 .001 .000 .016 .001 .001 .000 .000 .000 .000 .001 .000

valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid valid

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Customer Satisfaction Facilities .441 Means .589 Accessorize .538 delivery service .616 online order .696 repeat order .514 good responses from customers .608 customer’s values .608 customer’s benefits .598 Source: Analyze Primary Data

.000 .000 .000 .000 .000 .000 .000 .000 .000

valid valid valid valid valid valid valid valid valid

Reliability testing in this study is to use the formula Cronbach 's alpha. Determinants values which were at 0.6 or more indicates that the variable is reliable that can be seen in Table 6 Reliability test results above show that all variables have a coefficient Cronbach 's alpha above 0.6 so that it can be said that every variable in the questionnaire is reliable. Table 6. Reliability Test Variable Cronbach's Alpha N of Items .759 15 Service Quality .893 19 Product Quality .969 9 Customer Satisfaction Source: Output SPSS 20.0 Reliability test results above show that all variables have a coefficient cronbach's alpha above 0.6 so that it can be said that every variable in the questionnaire is reliable. Multiple Linear Regression Analysis Regression equation model which is supposed to have met the requirements of the classical assumptions, among others: normal distribution, there is no multicollinearity and no problems heterocedastisity. Previous analysis has shown that the model equations in this study have met the requirements of the classical assumptions, so that the model equations in this study are correct. Regression analysis is used to measure the effect of more than one independent variable on the dependent variable. Based on the calculation of multiple regressions using SPSS 20.0 obtained results are listed in the table below.

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Table 7. Multiple Linear Regression Model

Unstandardized Coefficients B

Std. Error 5.070

Standardized Coefficients

T

Sig.

Beta

(Constant) 6.554 1.293 .201 Service .188 .089 .256 2.117 .038 1 Quality Product .294 .078 .458 3.787 .000 Quality a. Dependent Variable: Customer Satisfaction Source: Output SPSS 20.0

Collinearity Statistics Tolerance

VIF

.645

1.549

.645

1.549

Regression analysis is used to measure the effect of more than one independent variable on the dependent variable. Regression analysis was performed to determine the effect of independent variables in this research, the quality of service (X1) and product quality (X2) with the dependent variable in this research, namely customer satisfaction (Y). The results of the regression analysis is to determine the effect of quality of service (X1) and product quality (X2) to (Y), either partially or simultaneously. It is known that the value of the constant is 6,554 which shows that if X1 (service quality) and X2 (product quality) fixed (constant) then customer satisfaction would be predicted to rise by 6,554. This means that the technical and functional has a direction (influence) toward positive customer satisfaction. The service quality coefficient has a value of 0,188 indicating that if the service quality increase by 1 unit with the other variables remains the customer satisfaction will also be increased by 0,188 units. The product quality coefficient has a value of 0,294 indicating that if the product quality increase of 1 unit assuming the other variables remains the customer satisfaction will also be increased by 0,294 units. COEFFICIENT OF DETERMINATION (R2), COEFFICIENT OF COLLARATION (R), To determine the coefficient of determination (R2) can be seen in Table 8 that describes how much customer satisfaction explained by the variable quality of the technical and functional quality. Table 8. Model Summaryb R Adjusted R Std. Error of the DurbinModel R Square Square Estimate Watson a 1 .644 .415 .396 2.57045 2.046 a. Predictors: (Constant), Service Quality, Product Quality b. Dependent Variable: Customer Satisfaction Source: Output SPSS 20.0 Table 8 shows that the coefficient of determination (R2) was 0.415. This figure shows that 41.5% dependent variable can be explained by the independent variables in this study, while the remaining 58.5% can be explained by other variables that have not been

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investigated. While the correlation coefficient value (R) has a value of 0.644 which indicates that the variable quality of service (X1) and product quality (X2) has a close relationship to the customer satisfaction variable (Y) because the value of (R) be between -1 to 1. COLLERATION OF PARTIAL (r) Table 9. Coefficientsa Standardize Unstandardize d d Coefficients Coefficients Model t Sig. Std. B Beta Error (Constant 1.29 6.554 5.070 .201 ) 3 Service 2.11 1 .188 .089 .256 .038 Quality 7 Product 3.78 .294 .078 .458 .000 Quality 7 Source: Output SPSS 20.0

Correlations Zeroorder

Partia Part l

.529

.260

.206

.610

.433

.368

Table 9 shows that the value of the partial correlation between the independent variable service quality (X1) with customer satisfaction (Y) is 0,260, while the value of the partial correlation between the independent variables of product quality (X2) with customer satisfaction (Y) is 0,433. Variable product quality (X2) has the highest partial correlation values that have the most dominant effect on customer satisfaction (Y). F TEST F test is used to determine the effect of independent variables in this study is the quality of service and product quality on the dependent variable in this study is that customer satisfaction variables simultaneously or together (Kuncoro, 2009: 239).

Model Regression 1 Residual Total

Table 10. F Test Result ANOVAa Sum of Mean df Squares Square 290.414 2 145.207 409.648 62 6.607 700.062 64 Source: Output SPSS 20.0

F

Sig.

21.977

.000b

Based on the Table 5.13 it can be seen that the calculated F value of 21,977 with the Sig. of 0,000 which has a value of < 0,05 with the meaning of the variable quality of service and quality of the product together (simultaneously) and simultaneously have a significant influence on customer satisfaction from Angie's Cake.

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t TEST customer satisfaction variable (Y) is partial. If significance value of each independent variable is smaller than 0,05; then there is a partial significant influence between independent variables with the dependent variable. t test was used to test the effect of the independent variable in this study is the quality of service (X1) and product quality (X2) on the dependent variable in this study is that

Model (Constant) Service 1 Quality Product Quality

Table 11. T Test Result Coefficientsa Unstandardized Standardized Coefficients Coefficients Std. B Beta Error 6.554 5.070

t

Sig.

1.293 .201

.188

.089

.256

2.117 .038

.294

.078

.458

3.787 .000

Source: Output SPSS 20.0 Table 5.14 describes the statistical testing with partial test (t test) of each of the variables, namely: 1. Coefficients regression testing service quality (X1) from Table 11, it can be seen that the value of Sig. 0,038 service quality. Because the Sig. smaller than 0,05 the conclusion is the variable quality of service (X1) partially significant effect on customer satisfaction variable (Y). 2. Coefficient regression testing product quality (X2) from Table 11, it can be seen that the value of Sig. product quality 0,000. Because the Sig. smaller than 0,05 the conclusion is the variable quality of the product (X2) partially significant effect on customer satisfaction variable (Y). NORMALITY TEST Table 12. Normality Test Result One-Sample Kolmogorov-Smirnov Test Unstandardized Residual N 65 a,b Normal Parameters Mean .0000000 Std. Deviation 2.52996930 Most Extreme Absolute .092 Differences Positive .062 Negative -.092 Kolmogorov-Smirnov Z .738 Asymp. Sig. (2-tailed) .647 a. Test distribution is Normal.

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b. Calculated from data. Source: Output SPSS 20.0 Normality test aims to test whether the residuals in the regression model are normally distributed or not. To test whether the data is normally distributed or not, can be determined by using the Kolmogorov-Smirnov test which aims to test whether the regression model, the residuals have a normal distribution of the data or near normal. If the significance value> 0.05 then the decision is normally distributed residuals (Rini, 2012). Table 5:17 shows that the significance of the residual value greater than 0.05 is equal to 0.738. This proves that the residuals are normally distributed. AUTOCORRELATION TEST In both regression models, autocorrelation should not happen. If there is autocorrelation, the resulting assessments have not minimum variance and t-test can not be used, and the results of the study will be biased because it will give a wrong conclusion that the researchers did not find the right research. Autocorrelation test aims to test whether a linear regression model is no correlation between errors (error) now with an error (error) before (Wijaya, 2009: 122). Decision making is the presence or absence of autocorrelation can be seen through the Durbin Watson autocorrelation criterion. Tabel 13. Durbin Watson’s Autocorrelation Criteria H0

If

No positive autocorrelation

0 < d < dL

No positive autocorrelation

dL ≤ d ≤ du

No negative autocorrelation

4 – dL < d < 4

No negative autocorrelation

4 – du ≤ d ≤ 4- dL

No autocorrelation, positive or negative

du < d < 4 – du

Source: Aplikasi Multivariate Dengan Program SPSS (Ghozali, 2011)

Table 14. Autocorrelation Result Test Model Summaryb Model

R

1

.644a

R Square

Adjusted R Square

Std. Error of the Estimate

DurbinWatson

.415 .396 2.57045 2.046 Source: Output SPSS 20.0 Table 14 shows the Durbin-Watson value in this study was 2,046. 2,046 DW value, this value will be compared to the 5% significance table value, the number of samples 65 (n) and the number of independent variables 2 (K = 2) the obtained value of du 1,662. 2,046

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DW value is greater than the upper limit (du) is 1,662 and less than (4-du) 4 to 1.662 = 2.338, it can be concluded that there is no autocorrelation. MULTICOLLINEARITY TEST Multicollinearity test conducted to test whether the regression model found correlates between the independent variables. A good regression model is not the case in which the correlation between the independent variable. A regression model can be said not occur when multicollinearity has the value of VIF < 10 Table 15 below shows the test results of multicollinearity, where there is a VIF value of each variable research. Table 15. Multicollinearity Result Test Coefficientsa Unstandardized Standardized Collinearity Coefficients Coefficients Statistics Model t Sig. Std. B Beta Tolerance VIF Error 1 (Constant) 6.554 5.070 1.293 .201 Service .188 .089 .256 2.117 .038 .645 1.549 Quality Product .294 .078 .458 3.787 .000 .645 1.549 Quality Source: Output SPSS 20.0 Table 15 shows that the VIF value of two independent variables is smaller than 10, that is equal to 1.549. This shows that there is no multicollinearity between the two variables, so the results of the regression fit for use in making decisions. HETEROSCADASTICITY TEST Heteroscedasticity test aimed at testing whether the regression model of the residual variance inequality occurs one other observation to observation. If the variance of the residuals of the observations to other observations remain, it is called and if different homocadasticity called heteroscedasticity. How that is done for heteroscedasticity test is to glejser test. Glejser test done by regressing all independent variables with absolute residual. If the significance value > 0,05 for all variables, the residual variance is said to be homogeneous. This is the following test results of heteroscedasticity:

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Model (Constant) Service 1 Quality Product Quality

Table 16. Heteroscadasticity Result Test Coefficientsa Unstandardized Standardized Coefficients Coefficients B Std. Error Beta -1.669E-15 5.070

t

Sig.

.000 1.000

0.000

.089

0.000 0.000 1.000

0.000

.078

0.000 0.000 1.000

Source: Output SPSS 20.0 Table 16 shows the significance values greater than 0,05; that is equal to 1,000 for each variable quality of service (X1) and the variable quality of the product (X2). This shows that there is no heteroscedasticity and regression results worth taking a decision. CONCLUSSIONS Results of reliability and validity testing showed that all the statements in each of the variables are reliable and valid. In the classical assumption test that includes testing multicolonierity, autocorrelational test, heterocedastisity test, and normality test showed that the regression model proposed not experience the correlation between independent variables, does not occur heterocedastisity, and has a normal distribution. From the discussions that have been described, it can be deduced as follows. Based on the results of research and discussion on the effect of service quality (X1) and product quality (X2) on customer satisfaction (Y) Angie's Cake Surabaya, it can be concluded that: 1. Service quality (X1) and product quality (X2) has simultaneous effect on customer satisfaction (Y) of Angie's Cake Surabaya. This reinforces the research that has been conducted by Saidani (2012). From this study it can be seen from the results obtained through the F-test is performed through input data from SPSS. In the results of the data it can be seen that the significance value of the F test performed on independent and dependent variables in this study showed a value below 0,05 in accordance with the standards prescribed these results indicate that two independent variables tested simultaneously can together affect customer satisfaction. 2. Service quality (X1) partially significantly affect customer satisfaction (Y) Angie's Cake Surabaya. This shows that the higher the quality of services provided, the higher the customer satisfaction of Angie's Cake. This reinforces the research that has been conducted by Ghimire (2012) and Ackaradejruangsri (2013). This conclusion is obtained see sig value of the t test under 0,05 for this variable. 3. Product quality (X2) partially significantly affect customer satisfaction (Y) Angie's Cake Surabaya. This shows that the higher the quality of a given product, the higher the customer satisfaction Angie's Cake. This reinforces the research that has been conducted by Yadav (2011). From the overall mean value,

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product quality has a mean value of 4.44 and greater than the value of quality of service, as well as in the test of partial correlation is performed, the quality of the product has a partial value of 0,433 and is greater than the quality of service that has a value of 0,260. This shows as partial, the variable of product quality has the most dominant influence on customer satisfaction. For the next research or study has to using other variables, such as customer value because the two variables are examined in this study has R2 value of 41,5%, which means that the information provided on the independent variables in this study only 41,5% can provide information for the dependent variable and there are 58,5% of the information that could be explained by other variables that are not addressed in this study. Therefore, further research is recommended to add another variable that has not been used in this research. This is supported by research that has been done previously by Malik (2012) in which customer value is also a determinant of customer satisfaction. REFERENCES Ackaradejruangsri, P. 2013 The effect of product quality attributes on Thai consumers’ buying decisions. Ritsumeikan Journal of Asia Pacific Studies, 33. Bungin, Burhan. 2011 . Metode Penelitian Kuantitatif. Edisi 2. Jakarta: Kencana Prenada Media Group. Choi, Eun Jung & Kim, S. 2013 . The Study of the Impact of Perceived Quality and Value of Social Enterprises on Customer Satisfaction and Re-Purchase Intention. International Journal of Smart Home, VII (1). Creswell, J.W. 2013 . Research Design Pendekatan Kualitatif, Kuantitatif, dan Mixed. Yogyakarta: Pustaka Pelajar. Dantes, Nyoman. 2012 . Metode Penelitian. Yogyakarta: Penerbit Andi. Gagic, S., Tesnovic, D., Jovicic, A. 2013 The Vital Components of Restaurant Quality that Affect Guest Satisfaction, Turizam, XVII (4), p.p. 166-176. Ghasemi, M. Kazemi, A. Esfahani, A.N. 2012 Investigating and Evaluation of Servce Quality Gaps by Revised Servqual Model (Case Study: The M.A Students of Azad University of Najwar Abad), IJCRB, III (9). Ghimire, A.J. 2012 . Service quality and customer satisfaction in restaurant business. Finland: Central Ostrobothnia University of Applied Sciences. Ghozali, Imam. 2011. ‘Aplikasi Multivariate Dengan Program SPSS’, Semarang: Badan Penerbit Universitas Diponegoro. Kuncoro, Mudrajad. 2009. Metode Riset Untuk Bisnis dan Ekonomi. Edisi 3. Jakarta : Erlangga. Kuncoro, Mudrajad. 2013. Metode Riset Untuk Bisnis dan Ekonomi. Edisi 4. Jakarta : Erlangga. Kotler, Philip and Keller, Kevin Lane. 2012. Marketing Management. New Jersey: Pearson Education Limited.

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Kotler, Philip and Amstrong, Garry. 2012. Principles of Marketing. New Jersey: Pearson Education Limited. Loke. S.P, Taiwo, A.A, Salim, H.M, & Downe, A.G. 2011. Service Quality and Customer Satisfaction in a Telecommunication Service Provider. IPEDR, XI, p.p. 24-29. Malik, S.U. 2012 Customer Satisfaction, Perceived Service Quality, and Mediating Role of Perceived Value. International Journey of Marketing Studies, IV (1), pp. 69-71. Putro, Eko. 2012. Teknik Penyusunan Instrumen Penelitian. Yogyakarta: Pustaka Pelajar. Render, B. & Hazer, J. 2011. Operation Management. Edisi 10. New Jersey: Prentice Hall. Rini, T. 2012. Analisis Pengaruh Corporate Governance Terhadap Kinerja Keuangan. Semarang: Universitas Diponegoro. Saedani, B. & Arifin, F. 2012 Pengaruh Kualitas Produk dan Kualitas Layanan Terhadap Kepuasan Konsumen dan Minat Beli pada Ranch Market. Jurnal Riset Manajemen Sains Indonesia, III (1). Sangaji, E.M, & Sopiah. 2013. Perilaku Konsumen Pendekatan Praktis Disertai: Himpunan Jurnal Penelitian. Yogyakarta: C.V Andi Offset. Siregar, Syofian. 2013. Metode Penelitian Kuantitatif: Dilengkapi Perbandingan Perhitungan Manual & SPSS. Edisi 1. Jakarta: Kencana Prenada Media Group. Sivesan, S. 2012. Service Quality and Customer Satisfaction: A Case Study – Banking Sectors in Jaffna District, Sri Lanka. International Journal of Marketing, Financial Service & Management Research (IRJC), I (10). Smith, J. 2012. Pengaruh Kualitas Layanan, Kualitas Produk, dan Harga Terhadap Kepuasan Konsumen Wei Xiao di Surabaya. Sutawidjaja, A.H, Tuti, W, & Suharyanti. 2012. The Influence of Service Quality on Customer Satisfaction (Study in Starbucks Café-Indonesia). Jakarta: Universitas Bakrie. Tanuwidjaja, M. & Anshori, M.Y. 2013 Penaruh Kualitas Layanan dan Kualitas Produk Terhadap Kepuasan Pelanggan Pipop Copy. Jurnal NeO-Bis, VII (1). Tjiptono, F & Chandra, G. 2011. Service, Quality & Satisfaction. Edisi 3. Yogyakarta: C.V Andi Offset. Tjiptono, F & Chandra, G. 2012. Pemasaran Strategik. Edisi 2. Yogyakarta: C.V Andi Offset. Wijaya, Tony. 2011. Analisis Data Penelitian Menggunakan SPSS. Yogyakarta: Universitas Atma Jaya Yogyakarta. Yadav, I. 2011. Influence of Service and Product Quality towards Customer Satisfaction : A Case Study of Carterers, Sangli City. Sangli.

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Yadav, R.K. & Dabhade, N. 2013. Impact of Service Quality on Customer Satisfaction of Mobile Users – A Case Study of Airtel. International Journal of Innovative Research & Studies, II (5), pp.141-143. Zeithmal V.A, dkk. 2009. Services Marketing. Fifth Edition. New York: McGraw-Hill International Edition.

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EFFECT OF BUYER-SUPPLIER RELATIONSHIP TO CUSTOMER COST AND CUSTOMER INTENTION; MARKET AND SITUATIONAL CONTROL AS A CONTROL VARIABLE TO INCREASE PT. INDOKOM CITRA PERSADA EXPORTS BUSINESS (A COMPREHENSIVE EXPORT MARKETING DEVELOPMENT MODEL) Bambang Anggoro Muljadi1 Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) INDONESIA ABSTRACT Purpose: this research aims to identify does the buyer – supplier relationship (suppliers communication, suppliers accommodation, characteristic of the supplier firm and customer offering; customer cost management) affect customer cost? Does the customer cost influence customer intention? Does the market and situational control affect customer cost? Does the market and situational control affect customer intention? By knowing the answers of those questions, it can increase business relationship between buyer (as the importer) and supplier (as the exporter). Design/methodology/approach: In quantitative research, questionnaires are designed to obtain qualitative data in the form of a response to the buyer’s company with scale between 1-7 in semantic category (adjective) then performed three phases and testing of data management, namely: validity dan reliability questionnaire, confirmatory factor analysis, and assessment of the fit model. Processing and testing using structural equation modeling (SEM) method via the facility progamation analysis of moment structure (AMOS) 6.0. Findings: the result has shown significantly that the buyer-supplier relationship (suppliers communication, suppliers accommodation, characteristic of the supplier firm and customer offering and customer cost management) affect customer cost; customer cost influences customer intention; market and situational control affect both customer cost and customer intention. Practical implication: The ability to manage buyer-supplier relationship variable, customer cost, market and situational control, buyer (importer) and supplier (exporter) can increase volume of business without being stuck in a price hyper-competition. Originality/value: Research conducted on the marketing activities of transnational, indicator of geographics market coverage research which measured in mileage, converted into delivery time.

Keywords: Buyer-Supplier Relationship (Suppliers Communication, Suppliers Accommodation, Characteristic of The Supplier Firm And Offering,

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INTRODUCTION Marketing today is characterized by levels of increasing competition, firms face competitors from more countries, which offer lower prices with the same quality products and services, the industry experienced hyper-competition, ‘tackling’ each other on pricing, company dwindling margins (Kotler, 2005:XIV). In addition to the growing number of manufacturers, also accompanied by a level of awareness, education and customer preferences that increase bargaining power, so the products information or services owned by the customer will be more complete (Kartajaya, 1997:18). In response, companies improve the performance, from products management portfolio to customer management portfolio. The focus today is customer relationship management. The company insists on maintaining and growing the customer instead of finding new customers. The company collects data on the basis of each customer so that companies can understand customers better and can rearrange bid and messages that have been individualized. (Kotler, 2005:XIV). Condition of the industry with many manufacturers as mentioned above, is a picture of the conditions faced by PT. Indokom Citra Persada, a group of industrial companies that generate agro-manufacture coffee commodities, products for material drinks (beverages). PT. Indokom Citra Persada products buyer is importers (trading company) in foreign countries, which are independent and have access to a wide variety of suppliers. By looking at the sales data of PT. Indokom Citra Persada from 2008 until 2013, there are several things that must be observed that shows the fluctuations, either in relation to the number of buyers, the frequency of purchases per buyer, the number of volumes per year and the average volume of each buyer purchases (Table 1). In the independent distribution system such as this, required that there should be mutual benefit between supplier to the buyer. In various observations made on several types of consumer products, including coffee, there is a strong impression that intermediarer, generally will market a variety of products from many different suppliers. Decision-making mechanism will be based on economic rationality that leads to the presence or absence of mutual benefit or extra benefits (Ferdinand, 2004:3). Table 1. Sales Data PT. Indokom Citra Persada Year 2008 - 2013 Year

Number of Buyers

Σ Transacti ons

Average Transactions / Buyer

Σ Transaction Volume (.000 Kg)

2008 2009 2010 2011 2012 2013

13 11 17 13 21 24

232 153 235 191 287 279

17.85 13.90 13.82 14.69 13.67 11.62

12375.94 8178.64 11890.74 10440.24 18024.03 14569.27

Average Transaction Volume / Buyer (.000 Kg) 951.99 743.51 699.45 803.09 858.29 607.05

Source: PT. Indokom Citra Persada, the data is processed.

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Canon and Homburg (2001:31) with a model of factors affecting the buying firm's cost and intention to expand the supplier's share of the business, stated that the buyersupplier relationship consists of supplier communication, suppliers accommodation of the customer, the characteristics of the supplier firm and offering, customer cost management, will affect to the customer cost which is will affect to the customer intention. On the other hand, market and situational controls contributed to control of the customer cost and customer intention. In accordance with above description, the research questions related to the replication model of Canon and Homburg extension are: 1. Does the buyer-supplier relationship (suppliers communication, suppliers accommodation, characteristic of the supplier firm and offering, customer cost management) affect customer cost? 2. Does the customer cost affect customer intention? 3. Does the market and situational control affect customer cost? 4. Does the market and situational control affect customer intention? LITERATURE REVIEW Research concerning the relationship between buyer and supplier, has previously been done by Joseph P. Cannon and Christian Homburg in 2001. In this study discussed the effect of communication frequency on the relationship between buyer and supplier and its influence on the costs borne by the company's customers (buyers), Table 2. appendix. The results showed that increasing frequency of communication; ability of suppliers to accommodate buyer’s demand; product quality and location closer distance between supplier’s company and buyer’s company will give effect of the low cost that will be borne by the buyer’s company. The study was conducted on 500 companies in the United States and Germany. Although the study was conducted in two countries, but the shape of the relationship between buyers and suppliers is still limited, is national, not transnational. Cannon and Homburg suggest that further research needs to be done about it, the measure objective costs incurred in the process of relationship between the supplier to the buyer. It is expected that the reduction in cost burden borne by the buyer company obtained through a specific behavior of the supplier company. Furthermore, Cannon and Homburg also advised to identify the possibility of obtaining the additional benefit of the relationship between the buyer to the supplier, such as the easier it is to run the operations of the company, learn a new technology or new market opportunities, faster filling market demand, both on new products, as well as new forms of service. Strategic Business Level. Business-level strategy with regard to the position of an enterprise industry, relative to its competitors. Generic business-level strategy, integrative strategy of cost leadership /differentiation, has evolved through the efforts of companies to find the most effective ways to exploit competitive advantage. In choosing a business-level strategy, the company evaluates two types of competitive advantage: a lower cost than competitors, or the ability to differentiate and set a premium price that exceeds the extra

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costs. Competitive advantage in a particular scope that has multiple dimensions, including product groups and customer segments served and geographic market arrangement in which companies compete. Competitive advantage sought by competing in many customer segments when implementing a cost leadership strategy and differentiation strategy. Instead, through the implementation of focused strategies, companies are looking for cost advantage or differentiation advantage within the scope or narrow segment (Hitt, 2001:160-161). Activity implementation of cost leadership strategy in a value chain, outbound logistics which is one of the primary activities relating to the creation of value associated with a cost leadership strategy, the factors that must be considered is the delivery schedules that reduce costs, as well as the selection of courier transportation at low cost (Hitt, 2001: 165). While the primary activity on implementation of differentiation strategy in a value chain, the factors that must be considered is the processing procedure orders are responsive and accurate, rapid product delivery and on time to customers (Hitt,2001:171). Integrative strategy which is a combination of cost leadership strategy and differentiation strategy on outbound logistics primary activity, would give advantage to companies that export activity, where the constraints faced in the geographic market will be addressed. Logistic Market. Physical distribution begins at the factory. Manager selects multiple warehouses (inventory point) and transportation-company that will deliver the goods to the final destination at the desired time or with the lowest total cost. Supply chain management includes the purchase of the appropriate input (raw materials, components and capital equipment); convert it efficiently into finished products; and deliver it to the final destination. The perspective of the supply chain can help companies to identify suppliers and distributor that is superior and helps both improve productivity, which ultimately lowers cost of the company (Kotler, 2005:233). Looking at the supply chain market as a destination point, broader view to see the companies that are in the center of the value network includes suppliers, suppliers of the suppliers, customers and direct end-customers. Companies need to unify these parts step to enable deliver a higher value to the target market. This step is called demand chain planning. Logistics market include infrastructure planning in order to meet the demand, then implementing and controlling the physical flow and finished goods from point of origin to point of use, to meet the demands of customers for profits (Kotler, 2005: 234). Transportation choices will affect product pricing, on-time delivery performance and condition of the goods on arrival, all of which affect customer satisfaction. In deliver the goods to the warehouse, distributors and customers, the company can choose among five ways transport: trains, airplanes, trucks, ships and pipe-lines. Deliveries into account criteria such as speed, frequency, reliability, capability, availability, ease of tracking and costs. If the goal is a low cost, the choice is sea lanes and marine pipelines (Kotler, 2005: 241).

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Relationship Strategies. Relationship strategic between suppliers, producers, distributors and customers is needed, such as to obtain ease in reaching out to the market, reducing the risk posed by rapid environmental change, share expertise or to obtain scarce resources. Relationship becomes very important because environmental conditions increasingly complex; risk of the global economy, and because of limited expertise and resources of the organization (Cravens,1997:216). Relationship between the manufacturer or supplier, the wholesaler, which is part of the vertical marketing system (VMS), generally in the form of collaborative relationship. This system is usually built by the supplier, for example through a contact, such as the franchise system (Cravens, 1997:225). In addition to having the primary goal of reaching the end-users, other objectives to be obtained by establishing distribution channels, such as to gain the support of the promotion, setting up services for customers, gain information and gain market acceptance or sales of eligible expenses (Cravens,1997:324). The purpose of building distribution channels, what criteria are used to measure it as well as product or form of distribution channels used, looks like in the following Table 2, appendix. Relationship Marketing. Today’s marketing is in "intense competition" and "demanding customers" where relationship marketing get much attention. Relationship marketing showed relationship between buyer and seller in addition to various other parties such as suppliers, competitors, distributors, and internal functions with the aim of "creating and delivering customer value" (Sheth and Parvatiyar,2000:3). Relationship aims to foster long-term relationships with customers, but this time the relationship with the customer is not enough by only relationship between the seller and the buyer. These relationships need to be developed more intensively through good management, support of information technology is indispensable. In accordance with the statement of Peppers and Rogers (1993) cited by Parvatiyar and Sheth (2000:5) is “a more popular approach with the recent application of information technology is to focus on an individual or one-to-one relationships with customers that integrate data - knowledge base with a long-term customer retention and growth strategy”. Long-term relationship between a buyer to a seller, can’t be achieved if only onesided. Buyer and seller should cooperate at all stages of the process are carried out so that both parties benefit. This is consistent with definition of Shani and Chalasani’s (1992) in Sheth and Parvatiyar (2000:5) is “relationship marketing is an integrated effort to identify, maintain, and build up a network for the mutual benefit of both sides, through interactive, individualized and value-added contacts over a long period of time.” In relationship marketing, customer occupies a very important position. However, between the seller and the buyer must have a common understanding on the relationship, so that the communication and sharing of information becomes an

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important part in the relationship. This is explained by Parvatiyar and Sheth (2000:5) quoted from McKenna (1991): “that a more strategic view of relationship marketing by putting the customer (telling and selling) to genuine customer involvement (communicating and sharing the knowledge)“. If between buyer with the seller happens long-term relationship, between the two of them can reduce the variety of activities that are not necessary such as contract negotiations and make agreements, so as to save costs. This is consistent with the definition of Parvatiyar and Sheth’s relationship marketing (2000: 9) “is the ongoing process of engaging in cooperative and collaborative activities and programs with immediate and end-user customers to create or enhance mutual economic value at reduced cost”. The purpose of relationship marketing by Parvatiyar and Sheth (2000: 16) is to increase marketing productivity and increase the value for the groups involved in the relationship. Relationship marketing has the potential to improve marketing productivity and create value by improving marketing effectiveness and/or efficiency of marketing (quoted from Sheth & Parvatiyar,1995; Sheth & Sisodoa,1995). To achieve effectiveness and efficiency of relationship marketing, marketing programs must be determined appropriate for the buyer and seller. Various marketing programs that can be done in relationship marketing can be seen in Table 3. - appendix. Customer Relationship Management (CRM) To realize relationship marketing between buyers with sellers, companies need a strategy, because the company is not enough to simply rely on the product, price and technology. This is consistent with the statement Kearney (2001:5): “you have a superior product, low prices and the best technology, money can buy but your competitors have the edge. What do they have that you do not? Most likely, a strategy that keep customers for life”. In building a CRM strategy must be implemented in an integrated manner, not only from the internal side of the company, but also involves the customer in it. Kearney (2001:7) defines CRM as an integrated strategy that places the customer at the center of a business's consciousness. To that end, CRM should be appropriate to the objectives of the company, which are: "(1) Increased customer acquisition and retention as loyalty, (2) expansion of profitable, long-lasting customer relationships, (3) the delivery of a consistent, relevant, high quality customer experience, (4) continuous learning about customers (both business and customer) and communication of that knowledge across the organization, (5) the delivery of the right products and services tailored to meet customer needs, (6) Increased customer equity, (7) improved cost management".

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Conformity with the objectives of the company CRM programs can have an impact on two things: increase revenue and reduce costs. These relationships can be seen in Figure 2 (Kearney, 2001:6). Figure 3 shows that the adoption of the technology makes the company can perform customer profitability analysis, which allows the company to get a lot of data about customers, particularly preferences and patterns of customer transactions. This information provides an opportunity for the company, not only can determine the targets with better products and prices, but also to understand customer profitability and customer service costs. This is consistent with the statement of Niraj, Gupta, and Narasimhan (2001:14): "understanding customer-specific costs in detail would help a distributor understand how the same may also Affect transactions costs at the customer's end. This creates an opportunity to eliminate transactions that may not add value to a supply chain and to reengineer the process for symbiotic gains among the supply chain partners rather than continue the typical adversarial relationships between a supplier and its customers". Why companies should apply CRM? Based on many studies that have been done, proving the strongly interaction of relationship between company and customer interactions with financial performance. This is consistent with the statement of Reichheld (1996:56): “a climbing defection rate is a sure predictor of a diminishing flow of cash from customers to the company - even if the company replaces the lost customers cost money to acquire customers and growing niche Because older to produce greater cash flow and profits than never ones”. Buyer - Supplier Relationship Relationship between buyers and suppliers in trade of goods and services is actually not a new thing. These relationships are usually developed based on trust and friendship between of the two. However, in conditions of business competition intensifies, trust and friendship became a necessity. Parvatiyar and Sheth (2000: 246-7) states that: "today have become reviews these strategic relationships and the process of relationship development is accelerated as firms strive to create relationships to achieve reviews their goals. In this stressful environment of relationship acceleration, there is less time for of participants to explore carefully the range of long-term relationship development. The expectations of performance have increased, making the development of satisfactory relationships even more difficult." Good relationship between buyers and suppliers makes tendency buyers will avoid many suppliers. The number of suppliers requires a lot of energy that must be issued by the company in building the relationship. This is consistent with the statement of Sheth and Parvatiyar (2000:247):

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"an important phenomenon related to the buyer - seller relationship is that many buyers are developing single - source suppliers is because of the pressures to increase of quality, reduced inventory, develop just-in-time (JIT) systems, and decrease time to market. The intensity of contact needed to accomplish high quality, implement JIT, and reduce time to market can’t be achieved with multiple sources of supply. The ultimate goal in developing Reviews These capabilities is to reduce costs". Cost reductions as a result of the relationship certainly can’t simply be achieved, as stated by Sheth and Parvatiyar (2000:247): "these costs reductions can be obtained through one of two models. In an adversarial models, buyers pit suppliers against each other to achieve lower costs. In a cooperative models, both parties achieve lower costs by working together to lower both the buyer's and seller's operating costs. This reduction is accomplished through better inventory management and elimination of unnecessary tasks and procedures". Parvatiyar and Sheth’s statement is also supported by Cannon and Homburg (2001: 29) who states an approaches for working through suppliers to reduce costs generally fit into one of two categories (quoted from Wilson, 1995). Adversarial approaches involve; bidding procedures in the which multiple compete suppliers against one another in an effort to drive down prices (quoted from Amihud, 1976). Collaborative approaches seek to lower acquisition and operating costs through joint efforts of the buyer and supplier (quoted from Kalwani and Narayandas, 1995; Noordewier, John, and Nevin, 1990). The collaborative movement underlies cooperative trends that have emerged in many industries under such names as efficient consumer response, quick response, supply chain management and just-in-time. Referring to the model of Factors Affecting the Buying Firm's Costs and Intention to Expand the Supplier's Share of Business, developed by Cannon and Homburg (2001:3134), then some of factors that determine the buyer-supplier relationship is as follows: 1). Supplier Communications is a relationship with strategies that facilitate customized information content Parvatiyar and Sheth, (2000: 345) quoted from Mohr and Nevin  2). Supplier accommodation of the customer is the rules and policies in response to the needs of customers in the short term.; 3). Characteristics of the supplier firm and offering is characteristic of the supplier that will affect the buyer in choosing suppliers. Parvatiyar and Sheth (quoted from Gyrna, 1988; Rust, Zahorik, and Keiningham, 1994, and Levy, 1995) states that the input and the physical distance from buyer to supplier may affect costs; 4). Customer costs management are the costs associated with the management of relationships between buyers and suppliers that will have an impact on the costs to be incurred by the customer in the transaction. These costs are measured by: active monitoring of the supply market, namely: the extent to the which the buyer actively monitor the products and prices of alternative sources of supply.

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Customers costs. Relationship management is an activity that impact on an important aspect of the cost. that incurred by customer. Cannon and Homburg (2001:31) states that the customer costs are the costs borne by the customer of a series of activities undertaken in dealing with suppliers. Obviously, with the relationship management, costs will be lower than companies that do not build relationships with suppliers. The cost reduction due to various changes in the relevant (Parvatiyar and Sheth.2000:577, quoted from Kaj Storbacka, 2000): “(1) decreasing the intensity of episodes, (2) changing to cheaper variants episodes, and (3) changing the cost structure of the present episode type in order to make it cheaper to produce”. There are three types of customer costs which are influenced by the supplier relationship (Cannon and Homburg, 2000: 30-1): 1.) Direct product cost (price) is the actual price charged by the supplier for the main products sold to a customer firm; 2). Acquisition costs are costs customers incur in acquiring and storing products from a particular supplier; 3). Operation costs are costs inherent in the customer firm's primary business. In the context of a manufacturing company, the costs included are: R&D, manufacturing and downtime, and internal coordination costs”. Customers Intention Relationship between buyers and suppliers are expected to satisfy the buyer so that they will be loyal to suppliers and expected at future buyers will still desire to make transactions with suppliers. Garbarino and Johnson (1999: 78) states the customer intention is the customer's willingness to engage in future interactions with the organization. The definition according to a statement from Zeithaml, et al. (1996:33-4) that favorable behavioral intentions are behaviors that show signs that the customer will persist in using the products or services of a company. Behavioral intention is shown with a preference for the company compared to other companies, increasing the amount of purchase, or willingness to pay the higher price. Ziethaml, et al. (1996:38) measures the behavior intentions of five dimensions: (1) loyalty, (2) switch, (3) pay more, (4) external response, and (5) internal response. Market and Situational Control. Market and Situational Control is used as a control variable in the relationship between buyers with suppliers. This variable is measured through: 1. Product complexity, 2. Product importance, 3. Availability of alternatives, 4. Product type, 5. Age of relationship. CONCEPTUAL FRAMEWORK In accordance with problem formulation above, this study is a replication of an extension, which allows the researcher to extent the hypotheses that have been developed by other researchers to produce a new model of a more complete or thorough or more focus to some hypothesis that have been defined (Ferdinand, 2006:8). Related

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to model of Factors Affecting the Buying Firm's Costs and Intention to Expand the Supplier's Share of Business from Canon and Homburg, and refer to Table 2. Distribution Channel and Measurement Criteria, Characteristic of the Supplier Firm and Offering original has geographic closeness sub-variable, replaced with coverage of geographic market sub-variables. It aims to eliminate research gap, that the service is how a product or service can enter the market, not only determined by the distance between the location of supplier to buyer, but how quickly the services of suppliers of products or services can be up to buyer. Related this research regarding business-level strategy of company's exporters and importers, needed a value chain that can provide a competitive advantage for both parties. To that end, the conceptual framework of this research is built as shown in Figure 3.- appendix. The relationship between buyer and supplier in relationship management is a fairly complex relationship. Good coordination between the two sides needs to be done so as to save the various activities that have an impact on cost reduction. Cost savings are expected to make the buyer still wishes to engage in a transaction at a time when that will come. The relationship between buyer-supplier relationships on customer costs and customer intention as shown in Figure 3, shows that: Effect of supplier communications to customer costs. a. Communication frequency. Increased frequency of communication between buyers and suppliers to obtain useful information for buyers, including buyers can make inventory management more efficient, able to carry out the management of just-in-time inventory, buyers can inform the operational problems that it faces to the supplier. Thus higher frequency of supplier communication, acquisition cost and operation cost will be lower; b. Information sharing. that meaning is the supplier able to provide information openly about the future that may be useful in building customer relationship. Thus more open information sharing from the supplier, acquisition and operation cost will be even lower. Effect of supplier accommodation to customer costs. a. Flexibility means that suppliers are willing to accommodate changes in demand for customers' needs, whether in relation to the rules or policies that fit the needs of the customer. Thus the higher supplier flexibility, the acquisition cost and operation cost will be lower; b. Relationship-specific adaptation. This means that changes to products, processes or procedures specifically according to customer requirements. With increasingly frequent suppliers make relationship-specific adaptation, then the direct product cost will be higher, acquisition cost and operation cost will be lower. Effect of characteristic of the supplier firm and offering to customer costs. a. Product quality, illustrates the high quality of a product is the durability of the products with better features. Thus higher product quality of the supplier then the direct product cost higher, acquisition and operation cost lower; b. Coverage of geographic market. Supplier which can provide average shorter delivery time, it will provide

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flexibility to buyer to implement lower stock inventory policies, so it will be an option for customers to use products from suppliers such. The shorter average delivery time, acquisition cost will be lower thus the higher degree of coverage of geographic market (frequency of sales calls and the average delivery time), acquisition cost will be lower. Effect of customer costs management to customer costs. What is meant by customer management costs is the extent to which buyers actively observe the products and prices offered by other suppliers. The higher frequency of active monitoring of the supply market, then the direct product costs will be lower, acquisition and operation costs will be higher. Effect of overall buyer-supplier relationship to customer costs. Buyer will pay more attention and cooperate with suppliers who can assist buyers to obtain lower prices. Cooperation between buyers and suppliers can be done through a collaborative approach, so the acquisition cost and operations cost becomes lower. Effect of customer costs to customer intention. Creating value for customers is a core of relationship marketing. Although the values obtained from various sources and activities, there is one thing that must be considered by the supplier is how to implement a low cost for customers. Thus the lower customer costs, then customer intention will be higher. This means that if customer intention is favorable, then the buyer will be willing to make a long-term relationship with suppliers. Effect of market and situational control to customer costs and customer intention. Market and situational control act as a control on customer costs and customer intention, through the elements, 1. Product complexity, the higher suppliers company’s product complexity as indicated by product depth, then the buyer will be easier to choose the products that suit the buyer needs, so that the operation cost will be lower and customer intention will be higher; 2. Product importance, the higher the product importance of the supplier, the operation cost will be lower and the customer intention will be higher; 3. Availability of alternatives, when the supplier‘s product availability of alternatives is higher than competitors, acquisition cost will be lower and customer intention will be higher; 4. Product type, the higher product type of the supplier, buyer possess an opportunity to obtain products that fit their needs, so that operation cost will be lower and customer intention will be higher; 5. Age of relationship, the longer of relationship is established between supplier to buyer, supplier will know the specific needs of buyer, so the direct product cost is low and customer intention will be higher. Hypotheses H1: Supplier communication effect to the customer costs, the higher supplier communication, the lower customer costs.

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H2: Supplier accommodation effect to the customer costs, the higher supplier accommodation, the customer costs will be lower. H3: Characteristic of the supplier firm offering effect effects to customer costs, the higher characteristic of the supplier firm and offering, the customer costs will be lower. H4: Customer costs management effects to the customer costs, the higher customer costs management, then the lower customer cost. H5: Customer costs effect to customer intention, the lower customer costs then the higher customer intention. H6: Market and situational control effect to customer costs, the higher market and situational control, the customer costs will be lower. H7: Market and situational control effect to customer intention, the higher market and situational control, the customer intention will be higher. RESEARCH METHODOLOGY Type of Research. This research is quantitative and shows extension replication, aims to test the hypothesis and declare the existence of causative relationship or the influences between buyersupplier relationship (supplier communication, suppliers accommodation, characteristic of the supplier firm and offering, and customer cost management) to customer costs, effect of customer costs to customer intention, effect of market and situational control to customer costs, and effect of market and situational control to customer intention. The variables used in this study are buyer-supplier relationship (supplier communication, supplier accommodation, characteristic of the supplier firm and offering, and customer costs management), customer costs, market and situational control, and customer intention. The pattern of the relationship between these variables is causal, as follows: (1) The influence of the buyer-supplier relationship, either partially or simultaneously, will result in customer costs and further customer costs influences will result in customer intention. This means that if the degree of buyersupplier relationship is high, then customer costs will be low, which in turn will form the degree of customer intention, is high, and vice versa, (2) the effect of the market and situational control variable will result in customer costs, which also resulted in a customer intention. This means that if the degree of market and situational control is high, customer costs will be low, which will eventually form the high degree of customer intention, and vice versa. Sample and Sampling Technique. Sample is a subset of the population, consisting of some members of the population (Ferdinand, 2006:223). Therefore, the sample in this research is the buyers who do trading-links with PT. Indokom Citra Persada from 2008 to 2013. Thus, the sampling process done by non-probability sampling method in the form of purposive sampling (Ferdinand, 2006:27).

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Limitations of the Study. The target of the research object is the overseas buyers company (importer) who recorded the transaction with PT. Indokom Citra Persada, from 2008 to 2013. Respondents in question are a person who has authority in the decision to conduct transactions with PT. Indokom Citra Persada. Instruments Research and Design Questionnaire. The instrument used in this study is a questionnaire that aimed at obtaining qualitative data in the form of the buyer company’s responses to the research variables: supplier communication, suppliers accommodation, characteristics of the supplier firm and offering, customer cost management, customer costs, market and situational control, and customer intention. Design of this questionnaire, there are operational indicators that will be used as a means of the variables measurement and data collecting. The device in the form of questions is open and closed questions. For each question will be given 7 answeroptions in the form of a semantic scale category (adjective), which each answer-choices will be given an ordinal score numbers from 1 to 7, so that each answer-choices can express the level of priority. Thus, the respondent qualitative response data can be transformed into quantitative data (Ferdinand, 2006:261). The design of the study questionnaire composed as shown in Table 4 – appendix. Location of the research conducted in Sidoarjo, which by through the internet connection, a questionnaire was sent to overseas buyers companies in the form of electronic mail (e-mail), telephone, and facsimili. The study is planned to be implemented over 3 months, from March to May 2014. ANALYSIS AND RESULTS In this research, three stages of data processing and testing, namely: 1. validity and reliability of the questionnaire test; 2. confirmatory factor analysis; and 3. fit model assessment. In accordance with inductive statistical functions, the results of the regression are expected to be used as a model to predict the outcome of policy implementation in the future. Overall processing and testing phase using the above structural equation modeling (SEM) methods through the facilities of Analysis of Moment Structure (AMOS) 6.0. Validity and Reliability Test. From the results of Pearson’s product moment correlation, note that all questions on the questionnaire items were significantly correlated at an error degree of 5% (**< 0.05), so that it can be said all of the items are valid questions and can be further processed (Table 5 - appendix). Reliability test results which are presented in Table 6 (appendix) showed that all variables are reliable, since the entire value of the construct reliability of each research constructs variable is to approach the standardized value (0.7), so that each indicator indicates the research constructs.

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Reliability test results by using Cronbach alpha () test in Table 7 (appendix) shows that all the variables are reliable, because the entire value of the coefficient alpha of each variable is more than the standardized (0.6), so that each question item the measuring instrument can be used. Score of the corrected item total correlation of the whole question items are more than 0.3. Description of Research Variables Supplier Communication. Scores of respondents to communication suppliers variable, which includes face-to-face communication (SC1), telephone communication (SC2), written communication (SC3) and information sharing (SC4) are presented in Table 8 (appendix). From Table 8, it appears that the respondents’ average (mean) score is ≥ 4.1445. It shows that the respondents' answers about the communication frequency (face to face, telephone and written communication) as well as information sharing between PT. Indokom Citra Persada and customers have been conducted in above average frequency. Supplier Accommodation. Scores of respondents to suppliers accommodation variable, which include flexibility (SA1) and relationship-specific adaptation (SA2), are presented in Table 9 (appendix). From the table 9, it appears that the respondents’ average (mean) score is ≥ 3.9017. It shows that the flexibility and the ability of PT. Indokom Citra Persada in addressing issues and changes related to the customer’s interests (relationship-specific adaptation) between PT. Indokom Citra Persada with the customers have done quite well. Characteristic of the Supplier Firm and Offering. Scores of respondents to the characteristic of the supplier firm and offering variable, which includes product quality (CSF1) and coverage of geographic market (CSF2), are presented in Table 10 (appendix). It appears that the respondents’ average (mean) score is ≥ 4.1633. It shows that PT. Indokom Citra Persada’s product quality (CSF1) and geographic market coverage (CSF2) ability is otherwise quite good. Customer Cost Management Scores of respondents to customer cost management variable are presented in Table 11. From the this table, it appears that the respondents average (mean) score is ≥ 3.9617, which shall mean costs management associated with the relationship between buyer and PT. Indokom Citra Persada which affects the costs to be incurred by the buyer in the transaction, otherwise is pretty good. Customer Costs Scores of respondents to customer costs variable, which include direct product costs (CC1), acquisition cost (CC2) and operation costs (CC3), are presented in Table 12 (appendix). From this table, it appears that the respondents’ average (mean) score is ≤ 3.4000. It shows that direct product costs (CC1), acquisition cost (CC2), and operation costs (CC3) of the products from PT. Indokom Citra Persada is stated quite cheap.

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Market and Situational Control Scores of respondents to market and situational control variable, which includes the product type (MSC1), availability of alternatives (MSC2), product importance (MSC3), product complexity (MSC4), and age of the relationship (MSC5), are presented in Table 13 (appendix). From this table, it appears that the respondents’ average (mean) score is ≥ 4.1000. This shows that the respondents' answers on product type, availability of alternatives, product importance, and product complexity of PT. Indokom Citra Persada, is quite good and the age of the relationship between PT. Indokom Citra Persada and the customers, has lasted long enough. Customers Intention Scores of respondents to customer intention variable are presented in Table 14 (appendix). From this table, it appears that the respondents’ average (mean) score is ≥ 4.2789. This shows that the respondents' answers on customer intention of respondents to the PT. Indokom Citra Persada, is quite high. Confirmatory Factor of Research Variables Analysis Based on the properties of numbers, which is getting closer to zero, the value will be smaller, then in this study the value of existing regression between the dimensions and the indicator or indicator variables (loading factor) and construct variables are interpreted as follows:  0.40: weak relationship; 0.41 to 0.55: moderate relationship is; 0.56 to 0.69: strong relationship;  0.70: very strong relationship. Weak means, is small or indicator variable’s contribution (loading factor) to construct variable is small ( 0.40) and so on. Table 15 (appendix) shows the overall results of the confirmatory factor analysis construct validity of the measurement model. Normality Evaluation By using the argument of central limit criteria (central limit theorem), is when the sample size is large, then the statistics of the sample will be close to a normal distribution. Research Structures Model Based on Figure 4 (appendix), due to an error probability value 0.000 0.05. Based on theoretical considerations in this study, the index modification to the model by referring that, the index modifications will not change the results of causality (parameters) significantly. After 12 modification index, the fit model is obtained as shown in Figure 5 (appendix). Goodness of Fit Test. This test is done to see whether the developed model is appropriate (fit) with available data. Items are used for this test shown in table 16 (appendix). The results of data processing by using a sample of 150 indicate the level of significance to test the above hypothesis differences is 92.241 with a probability of 0.924. It is shown that there is no difference between sample covariance matrix and population covariance matrix; so that the null hypothesis is accepted (acceptable if the probability is  0.05). Meanwhile, the

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value of GFI, TLI, CFI, RMSEA and CMIN/DF respectively 0.936, 1.105, 1.000, 0.000 and 0816 are all in the expected range of values, so that the model can be accepted. Testing Parameters. To determine the causal relationship between each variable, it’s done a null hypothesis test that says that the relationship between regression coefficients is equal to zero through the t-test in the regression models. Having regard to the regression results in Table 17 (appendix), note that the value of critical ratio (CR) which is identical to the ttest in the regression analysis shown that all the regression coefficients is significantly ≠ 0. Thus the null hypothesis that the regression coefficient is = 0 can be rejected, or alternative hypothesis can be accepted, so that a causal relationship in the model is acceptable. The magnitude of the regression coefficient between supplier communication (suppcomm) variable against customer costs (custcost) is -0.064, CR 0.374. This means that the effect of supplier communication is inversely proportional to customer costs, which is amounted to 6.40%, but not significant due to the CR value is -0.374 ( 0.05). The magnitude of the regression coefficient between suppliers accommodation (suppacco) variables against customer costs (custcost) is -0.297, CR 0.887. This means that the influence of supplier accommodation is inversely proportional to customer costs by 29.70%, but not significant due to the CR value is 1.887 ( 60 Years old

2

2,1

95

100,0

Total

Based on Table 5.2 it can be seen that the age of the respondents Honda Vario is less than 18 years amounted to 7 people with a percentage of 7.4 % , for respondents aged 18-35 years are 45 people with the percentage of 47.4 % , for respondents aged 36-50 years were 30 people with the percentage 31.6 % , for respondents aged 51-60 years with a total of 11 percentage of 11.6 % , and for lebbih age of 60 years amounted to 2 people with a percentage of 2.1 % . So that the highest value found in the Honda Vario respondents have age 18-35 years with a percentage of 47.4 %, 36-50 years 30% and 11% of 51-60 years. This is in accordance with the purchase of the largest motorcycle market segment is the age range of 18-35 years because at that age most have an income. This is consistent with the opinion of Kotler and Armstrong (2009) , that at the age of 18-60 years vulnerable customers have an income to be able to buy a product . Multiple Linear Regression Analysis Based on the research that has been done then obtained the following results: Tabel 5.20 Multiple Linear Regression Analysis

Unstandardized Coefficients Model

B

Std. Error

Constant

0,053

0,249

Promosi (X1)

0,135

0,049

Kualitas produk (X2)

0,370

0,177

Harga (X3)

0,113

0,053

Layanan Purna Jual (X4)

0,441

0,172

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Based on the above calculation results, obtained by multiple linear regression equations were significant as follows : Y = 0.053 + 0.135 + 0.370 X1 + 0.113 X2 X3 X4 + 0.441 Interpretation of the regression models above are as follows : 1. constant ( a) is generated by 0.053 indicates that the value of Purchase Decision Honda Vario ( Y ) of 0.053 if Promotion ( X1 ) , Product Quality ( X2 ) , price ( X3 ) and Sales Service ( X4 ) is constant . 2 Promotion coefficient ( β1 ) of 0.135 indicates that if the promotion variable ( β1 ) increased one unit , then it will lead to an increase in Purchasing Decisions Honda Vario was 0.135 assuming other variables constant . 3 Product quality coefficient ( β2 ) of 0.370 indicates that if the variable quality of the product ( X2 ) increased one unit , then it will lead to an increase in Purchasing Decisions Honda Vario was 0.370 , assuming other variables constant . 4. price coefficient ( β3 ) of 0.113 indicates that if the price variable ( X3 ) increased one unit , then it will lead to an increase in Purchasing Decisions Honda Vario was 0,113 , assuming other variables constant . 5. -sales service coefficient ( β4 ) of 0.441 indicates that if the after-sales service variable ( X4 ) increased one unit , then it will lead to an increase in purchase of Honda Vario Decision of 0.441 , assuming other variables constant . F test Tabel 5.23 Result of F Test (α) Fsig Result 0,000

0,05

Significant

Concurrent test ( F test ) showed that all the independent variables consisting of Promotion ( X1 ) , Product Quality ( X2 ) , price ( X3 ) and Sales Service ( X4 ) simultaneously influence the dependent variable Purchasing Decisions Honda Vario CW . Rahayu Motor Gresik. Testing steps : hypothesis 1 H0 : promotion , product quality , price , and after sales services simultaneously or together do not significantly influence the purchase decision Honda Vario CW . Rahayu Motor Gresik . H1 : promotion , product quality , price , and after sales services simultaneously or jointly significantly influence the purchase decision Honda Vario CW . Rahayu Motor Gresik . 2 If the significance of the F test value < 0.05 , then H0 is rejected and H1 is accepted . Based on Table 5:23 magnitude or significance value is 0.000 < 0.05 . This shows that H0 is rejected and H1 is accepted . So the independent variables consisting of promotion , product quality , price , and after-sales service simultaneously significant effect on Purchase Decision Honda Vario CW . Rahayu Motor Gresik .

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T Test Result of T Test Model Anova tsig

(α)

Result

Promotion (X1)

0,007

0,05

Significant

Quality Product (X2)

0,039

0,05

Significant

Price (X3)

0,037

0,05

Significant

After sales service (X4)

0,012

0,05

Significant

To test the hypothesis used the t test showed partial effect of each independent variable on the dependent variable ( not free) . At this stage of testing the effect of independent variables included in the models created to determine whether the independent variable ( X ) is in the partial models has a significant influence on the dependent variable ( Y ) . a. Partial Test of Variables Between Promotion ( X1 ) Purchase Decision Variables Against Honda Vario CW . Rahayu Motor Gresik ( Y ) To test the hypothesis used the t test showed partial effect Promotion variable ( X1 ) to variable Purchasing Decisions Honda Vario at Rahayu Motor Gresik (Y). Hypothesis: 1 H0 : β1 = 0 ( That is , the variable Promotion UD . Rahayu Motor Gresik (X1) has no significant influence on the purchase decision variable Honda Vario CW. Rahayu Motor Gresik) H1 : β1 ≠ 0 ( That is , the variable Promotion UD . Rahayu Motor Gresik ( X1 ) has a significant influence on the purchase decision variable Honda Vario at Rahayu Motor Gresik) . 2 If the value of the independent variable significance of customer satisfaction in t-test < 0.05 then H0 is rejected and H1 is accepted. Based on Table 5:23 the value of variable significance in the promotion of free t-test is 0.007 or > 0.05. This shows that H0 is accepted and H1 is rejected. The promotion of independent variables (X1) has partially significant effect on the Buying Decision Honda Vario at Rahayu Motor Gresik. b . Partial Test of Variables Between Quality of product (X2) Purchase Decision Variables Against Honda Vario at UD . Rahayu Motor Gresik (Y) To test the hypothesis used the t test showed partial influence product quality variables ( X2 ) to variable Purchasing Decisions Honda Vario at UD . Rahayu Motor Gresik (Y) . Hypothesis: 1 H0 : β2 = 0 ( That is , the variable quality of the product ( X2 ) has no significant influence on the purchase decision variable Honda Vario at Rahayu Motor Gresik) H1 : β2 ≠ 0 ( That is , the variable quality of the product ( X2 ) has a significant influence on the purchase decision variable Honda Vario at Rahayu Motor Gresik) 2 If the value of the independent variable significance of customer satisfaction in t-test < 0.05 then H0 is rejected and H1 is accepted . Based on Table 5:23 the value of variable significance in the promotion of free t-test is 0.039 or > 0.05. This shows that H0 is accepted and H1 is rejected . So the independent variable Quality Products (X2) significant effect partially on Purchase Decision Honda Vario at UD . Rahayu Motor Gresik

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c . Between the Partial Test Variable Price (X3) Purchase Decision Variables Against Honda Vario at Rahayu Motor Gresik (Y) to test the hypothesis used t test showing the effect of partial variable price (X3) to variable Purchasing Decisions Honda Vario at Rahayu Motor Gresik (Y). Hypothesis: 1 H0 : β3 = 0 ( That is , the variable price ( X3 ) had no significant influence on the purchase decision variable Honda Vario at Rahayu Motor Gresik) H1 : β3 ≠ 0 ( That is , the variable price ( X3 ) has a significant influence on the purchase decision variable Honda Vario at Rahayu Motor Gresik 2 If the value of the independent variable significance of customer satisfaction in t-test < 0.05 then H0 is rejected and H1 is accepted . Based on Table 5:23 the value of variable significance in the promotion of free t-test is 0.037 or < 0.05. This shows that H0 is accepted and H1 is rejected. So the independent variable price (X3) have a significant effect partially on Purchase Decision Honda Vario at Rahayu Motor Gresik. d . Partial Test of Variables Between After-sale ( X3 ) Purchase Decision Variables Against Honda Vario at UD . Rahayu Motor Gresik ( Y ) To test the hypothesis used the t test showed partial effect after sales service variable ( X4 ) to variable Purchasing Decisions Honda Vario at Rahayu Motor Gresik (Y). Hypothesis: 1 H0: β4 = 0 (That is , after-sales service variable ( X4 ) had no significant influence on the purchase decision variable Honda Vario at UD . Rahayu Motor Gresik) H1 : β4 ≠ 0 ( That is , after-sales service variable ( X4 ) has a significant influence on the purchase decision variable Honda Vario at UD . Rahayu Motor Gresik) 2 If the value of the independent variable significance of customer satisfaction in t-test < 0.05 then H0 is rejected and H1 is accepted. Based on Table 5:23 the value of variable significance in the promotion of free t-test is 0.012 or < 0.05 . This shows that H0 is accepted and H1 is rejected. So the independent variable Sales Service (X4) has a significant effect partially on Purchase Decision Honda Vario at Rahayu Motor Gresik. CONCLUSION Based on the research results and the discussion of the previous chapter bada pull some useful conclusions answer the problem formulation. Some of the conclusions are: 1 promotions, product quality, price and after-sales service simultaneously influential on purchasing decisions Motor Honda Vario in Rahayu Motor Gresik. This indicates that the first hypothesis stated acceptable. 2 Promotions partial influential on purchasing decisions in Rahayu Motor Gresik. This suggests that the second hypothesis stated acceptable. 3 Quality products partially influential on purchasing decisions in Rahayu Motor Gresik. This indicates that the third hypothesis stated acceptable. 4 Price influence partially on purchase decisions in Rahayu Motor Gresik. This suggests that the fourth hypothesis stated acceptable. 5. Sales service as a partial influence on purchase decisions in Rahayu Motor Honda Gresik . This indicates that the fifth hypothesis stated acceptable.

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REFERENCES Asosiasi Industri Sepeda Motor Indonesia. 2013.( http://www.aisi.or.id/statistic/, diakses tanggal 04 Oktober 2013) Getrycia, W., E.S. Djatikusuma. 2013. Analisis Faktor-Faktor Yang Mempengaruhi Keputusan Pembelian Konsumen Pada Produk Minuman Berisotonik Pocari Sweat. Jurnal Manajemen, STIE MDP. Ghozali, I. 2009. Aplikasi Analisis Multivariate Dengan Program SPSS, Edisi. Keempat. Semarang: Penerbit Universitas Diponegoro. Ghozali. 2011. Structural Equation Modeling Metode Alternatif Dengan Partial Least Square PLS Edisi 3. Semarang: Badan Penerbit UNDIP Jayadi, D., S. B. Santoso. 2012. Analisis Pengaruh Kualitas Produk,Harga, Promosi Dan Layanan Purna Jual Terhadap Keputusan Pembelian Sepeda Motor Yamaha. Jurnal Manajemen, UNDIP Kotler, P., G. Armstrong. 2012. Principle of Marketing. Upper Saddle River, N.J: Pearson Prentice Hall. Kotler, P., K. L. Keller. 2012. Marketing Management 14th Edition. New Jersey : Pearson Education, Inc Kuncoro, M. 2009. Metode Riset Untuk Bisnis dan Ekonomi. Jakarta : Erlangga Satit, R.P., H. H. Tat., A. Rasli., T. A. Chin., I. Sukati. 2012. The Relationship Between Marketing Mix And Customer Decision-Making Over Travel Agents: An Empirical Study. International Journal of Academic Research in Business and Social Sciences, Vol. 2, No. 6 Stanton, William, J. Dan Lamarto, Y. 2007. Prinsip Pemasaran. Jilid I. Jakarta: Penerbit Erlangga. Sugiyono. 2009. Metode Penelitian Kuantitatif dan Kualitatif. Bandung: CV.Alfabeta Sugiyono. 2010. Statistika untuk Penelitian. Bandung: Alfabeta Sunyoto, D. 2009. Analisis Regresi dan Uji Hipotesis, Edisi Pertama. Yogyakarta: Media Pressindo. Tan, E.R. 2011. Pengaruh Faktor Harga, Promosi Dan Pelayanan Terhadap Keputusan Konsumen Untuk Belanja Di Alfamart Surabaya. Jurnal Kewirausahaan, Vol. 5 No. 2 Tjiptono, F. 2009. Strategi Pemasaran Jasa. Yogyakarta: CV. Andi Utami, C. W. 2012. Manajemen Ritel (Strategi dan Implementasi Ritel Modern). Jakarta: Salemba Empat. Utami, C.W. 2008. Strategi Pemasaran Ritel. Jakarta : Penerbit Indeks.

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ECONOMIC ANALYSIS OF REACTION CONDITIONS MOKRO INVESTOR AND INVESTMENT DECISION IN INDONESIA STOCK EXCHANGE (IDX) Sodik1, Wahju Wulandari2 Widyagama University of Malang INDONESIA E-mail: [email protected] ABSTRACT This study aimed to analyze the phenomenon of investors in making investment decisions in the Indonesia Stock Exchange (IDX). The nature of this research is explanatory research and this study aims to obtain empirical evidence and analyze macroeconomic conditions on the reaction of investors and investor's decision to invest in shares in the stock exchanges of Indonesia. The unit consisted of (estimates of economic growth, inflation estimates, the estimated interest rate, the estimated value of the rupiah exchange rate against the USD, the estimation of security conditions, and estimate the political situation) that prospective investors responded by manufacturing companies that go public (listed) on the Stock Exchange. Data were obtained through direct observation of the macro-economic conditions (ME) and the reaction of investors (RI) around the date of the financial statements are then analyzed to measure the magnitude of the variable investment decision (KI), in IDX. Analytical tool in this study using structural modeling using the package equesion Liserel program, to test the hypothesis of an association of each exogenous variable (ME) on endogenous variables (RI) and (KI). This study conducted a census of the entire population who meet the following criteria: financial reports to the Capital Market Reference Center (PRPM) and are actively traded stocks from the Stock Exchange. This study to obtain empirical evidence that the results of the tendency of investors and prospective investors to consider using a macroeconomic conditions (economic growth estimates, estimates of inflation, interest rate estimates, the estimated value of the rupiah exchange rate against the USD, the estimation of security conditions, and estimate the political situation) are addressed by the candidate investor manufacturing company that went public (listed) as consideration for the long-term investment decision-making in Indonesia Stock Exchange. while the Keywords: Macroeconomic Conditions, The Reaction Of Investors, Investor Decisions,

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INTRODUCTION Sodik (2011, 2012) obtain empirical evidence that investors in the Stock Exchange's behavior is influenced by the state of the economy, government policy in the field of monetary and fiscal, as well as the circumstances of each company which went public. These conditions can affect the predicted reaction of investors and investor decisions in the Indonesian stock exchange. Investor's decision to buy, hold, and sell stocks is influenced by the availability of information that can be used in assessing a stock. One of the required information for stock investors is an enterprise information macroeconomic conditions. This information can influence the decision of investors to bear risk in the investment. Anticipation of the state of the economy, political, social, cultural, security, law enforcement, state Exchanges and changes in the issuer becoming an important factor in assessing the investment in the stock exchange, as well as investors' risk preference. Investors basically tend to use to predict the market situation and make an assessment of the securities. The performance of companies that investors consider to be a factor, because it can reflect the internal management of the company effective or not. Research conducted by Ball and Brown (1968), Foster (1977) and Hyan (1995) were used as the basis for an efficient market assessment (efisient market hypotheses) relating to the publication of financial statements in general, the conclusions can be misleading. This is due to the three research settings are the companies went public in the United States capital markets which have been classified in the developed capital markets and has a background to the social, political, economic, legal and business systems that are very different from the characteristics of the stock exchanges of developing countries (emerging capital markets) such as Indonesia. Differences in the environmental setting and the characteristics, researchers suspect that the market's reaction to information macroeconomic conditions around the publication of financial statements may differ when setting research conducted in IDX are characteristic of emerging capital markets is still relatively capital markets. This allegation refers to the results of research and opinion of Bailey and Chung (1995), Aggarwal et al (1999), Saudagaran (2001), Radebaugh and Gray (1997), Haskins et al (1996), and Scott (2000), Sodik (2011) which states that the difference in the dynamics of economic factors, social, political and markets between countries can lead to differences in the market reaction to an announcement event economic conditions. Assessment of macroeconomic conditions (economic growth estimates, estimates of inflation, interest rate estimates, the estimated value of the rupiah exchange rate against the USD, the estimation of security conditions, and estimate the political situation) that prospective investors responded by publicly traded manufacturing company (issuer) and the decisions of investors who reflected in the act of making a purchase of shares, it is important to research conducted continuously. Based on the above description can be obtained a description of the background of situational and conditional on macroeconomic issues and the reaction of investors and investor's decision to invest in shares in Indonesia Stock Exchange. To obtain empirical evidence on situational picture and the conditional, the researchers are interested in

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doing research with the title of the macroeconomic analysis of the reactions of investors and investment decisions in the Indonesia Stock Exchange. Problem Formulation Based on the background of the above problems can be formulated some problems in this study as follows: 1) How does the analysis of macroeconomic conditions simultaneously affect the reaction of investors and investment decisions in the Indonesia Stock Exchange. 2) How does the analysis of macro-economic conditions partial effect on the reaction of investors and investment decisions in the Indonesia Stock Exchange. 3) Which of the macroeconomic conditions of the dominant influence on the reaction of investors and stock investment decisions in the Indonesia Stock Exchange. CONCEPT VARIABLE MACROECONOMIC CONDITIONS In this study, the variable macroeconomic conditions through indicators such variable is the estimate of economic growth, inflation estimation, estimation of deposit rates, and the estimated value of the rupiah exchange rate against the $ US, security, and political situation. The conceptual framework of each indicator variable can be defined as follows: Estimates of economic growth. Is a change not anticipated (unanticipated) on the condition of general economic growth experienced by the investor issuer. This condition describes the ability to produce more output in a number of unanticipated by the issuer. Roll and Ross (1995: 326) do a calculation that estimates of economic growth is measured by the difference between the estimated economic growth at the beginning of the period compared to the economic growth that occurs at the end of the period. While Burgman (1996) calculate an estimate of economic growth by finding the regression coefficient of the level of corporate earnings is a function of the rate of economic growth in the final period. In this study estimates economic growth is defined as the difference in economic growth estimates with actual economic growth. To estimate the economic perumbuhan used the average regression coefficient with the corporate income rate of economic growth rate of the initial period and the final period. Estimated inflation. Samuelson and Nordhaus, (1992: 306) argues that inflation is one of the macroeconomic factors that indicate the increase in the general price level: Inflation accurs when the general level of prices is rising. The rate of inflationis difined as the rate of change of the price level (as Measured, say, by the consumer price index, Rate of inflation

(year t ) 

Price level (year t ) - Price level (year Price level (year

t -1

t -1

)

)

or CPI) and is a Measured as follows: General price level proxied by Price Index (Price Index), which is a weighted average of prices of some goods and services. Price index the most important is the Consumer Price Index - CPI (Consumer Price Index), Producer Price Index - PPI (Producer Price Index) and the GNP deflator (Samuelson & Nordhaus, 1992: 308-309). In Indonesia, the national inflation rate measurements using a proxy for changes in the Consumer Price Index (CPI). To calculate the period t inflation rate using the formula {[IHKt / IHKt-1] - 1} in units of percent.

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Samuelson and Nordhaus (1992: 311-312) classifies inflation into three categories, namely: (1) moderate inflation (inflation moderate) when the inflation rate / year less than or equal to 10%, (2) the galloping inflation (inflation malignant) when inflation / year more than 10 to 100%, and (3) hyper inflation (hyperinflation) when the rate of infalsi / year more or equal to 100%. Estimates of inflation is defined as a difference between the estimated inflation minus the actual inflation is unanticipated inflation. One of the most common ways to estimate inflation is to use the concept of adaptive expectation (Dernburg, 1985: 322), formulated Xt = Xt sebgai-1 + g (t-Xt-1), where Xt = estimate of inflation in period t , Xt-1 = estimate of inflation in period t-1, t = actual inflation rate period t, and g = coefficient of adjustment. Estimation of Deposit Rate. Dernburg (1985: 143-144), states that the consideration of an investor in making an investment decision on a particular asset depends on whether the expected rate of profit on investment assets is greater or smaller than the interest rate to get the funds. If it is an equity fund, investors will also consider the expected return is obtained compared to the amount of interest earned if the capital itself was loaned to other parties. Based on what was raised by Dernburg (1985) concluded that investors in the investment decision, in addition to the expected returns to be obtained, also consider the interest rate that would be obtained if the funds deposited in the bank. This fact indicates that deposit / savings to the stock are two types of investment are interchangeable. Estimated rate in this study was defined as the difference between the initial deposit rate period estimates with actual deposit rates are not anticipated period end. One way to estimate the interest rate is to use the concept of adaptive expectation (Dernburg, 1985: 322), formulated sebgai it = it-1 + g (t -it-1), where it = estimate of the interest rate in period t, it-1 = estimate of the interest rate in period t-1, t = actual interest rate period t, and g = coefficient of adjustment. Estimated Rupiah / USD. Rupiah exchange rate against the United States Dollar (USD / EUR) is the relative price of IDR against USD in foreign exchange market. IDR / USD is a number that indicates the amount of rupiah to get one USD. Exchange rate rupiah / USD is determined by supply and demand Rupiah against the USD in the foreign exchange market. If the request Rupiah against the USD down, then the Dollar will depreciate against the USD, in other words IDR / USD weakened. Conversely, if demand Rupiah against the USD goes up, there will be appreciation of the Rupiah against the USD, in other words Dollar appreciated against the USD or Rupiah / USD strengthened. Estimated exchange rate of Rupiah / USD in this study is defined as the difference between the exchange rate of Rupiah / USD exchange rate estimates with Rupiah / USD actually were not anticipated. To estimate the rate of Rupiah / USD is to use the concept of adaptive expectation (Dernburg, 1985: 322), formulated sebgai kt = kt-1 + g (t -kt-1), where kt = estimated exchange rate of Rupiah / USD at period t, kt-1 = estimate of the exchange rate rupiah / USD in period t-1, t = level of the exchange rate of Rupiah / USD current period t, and g = coefficient of adjustment. Furthermore Burgman (1996) used for the calculation of the regression coefficients sought Rupiah exchange rate /

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USD end of the month which is a function of the rate of the end of the month and end of month USD index. Security conditions in this study is defined as the difference between the estimated initial security conditions with the period of the end of the actual security conditions are not anticipated. One of the most common ways to estimate the security condition is to use the concept of adaptive expectation (Dernburg, 1985), formulated Xt = Xt sebgai-1 + g (t -Xt-1), where Xt = estimate of the security conditions in period t , Xt-1 = estimate of inflation in period t-1, t = actual security state of period t, and g = coefficient of adjustment. The political situation in this study is defined as the difference between the political situation of the estimated initial period to the end of the actual security conditions are not anticipated. Common method used to estimate the political situation is to use the concept of adaptive expectation (Dernburg, 1985), formulated Xt = Xt sebgai-1 + g (tXt-1), where Xt = estimate of the political situation in period t, Xt -1 = estimate of the political situation in period t-1, t = actual political situation in period t, and g = coefficient of adjustment. The concept of reaction variables Investors and Investment Decisions. According to Francis (1993: 5), the company's stock price is a reflection of the value of wealth (wealth ending) investors. Furthermore, Francis (1993) states that the objectives of investors to invest their money in stocks is to maximize the rate of return of investment. Stock yield rate consists of 2 elements, ie, capital gain / loss and cash dividends. The reaction of investors and investment decisions in this study is defined as a reflection of the decisions taken and the reaction of investors to buy shares of the investment act, observe and wait, and sell stocks. This action is reflected in the price of each share of common stock is traded either before, during, or after the issuance of the financial statements of listed companies on the Stock Exchange. Based on the above, the macro-economic conditions, and the reaction of investors and stock investment decisions have positive relationships interrelated. If the accounting information that reflects the financial performance of a company either partially or simultaneously show good conditions or increased and experienced by almost all companies, it will be able to encourage an increase in positive reactions indicating that investors keperyaan improved or increased. This will affect investor decisions as reflected in the share price on the Stock Exchange. Research Design This study used methods of field research (field research), that is by doing surveys and grounded research. Type of research is explanatory research. Explanatory research as written by Subiyanto (1992: 87), a study conducted to describe the symptoms caused by an object of research. The design of this study used a descriptive-correlational. Descriptive design was intended to obtain information related to the phenomenon that is observed today (Arikunto, 1989: 73). While correlational, because trying to explain the presence or absence of a relationship between the various variables based on the size of the correlation coefficient (Ardhana, 1987: 29). The population in this study is the investors and prospective investors that the manufacturing company went public (listed) in Indonesia Stock Exchange whose shares

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are actively traded, were analyzed as a whole (census). If found manufacturing issuers failing to submit annual financial reports to the Capital Market Reference Center is complete, it will be set aside. Based on the observation and analysis of the population that meet the specified criteria, then the population is eligible for further analysis in this study. Reason retrieval manufacturing companies, because there is relatively more than other types of companies. Methods of Data Collection The data used are primary and secondary data. The primary data obtained from respondents actors IDX investment in both investors and prospective investors. While the secondary data obtained from records or reports macroeconomic conditions in 2013 - 2014 trimuwan 1 To search for the data obtained from investors reaction rates that occurred during the 5 (five) days prior to the publication of the report, the price of which occurred at the time of publication of the report and the price is going 5 (five) days after the publication of the report. The reason is because in one week stock trading on the Stock Exchange just done a five-day transactions. Methods of data collection done personally direct the Indonesia Stock Exchange. MODEL STRUCTURE RESEARCH Based on the framework and the operationalization of the variables are adopted from various results of previous studies, the researchers can develop models of the structure of the relationship between the variables of the study as presented as follows:

 21

X1

 12

X2

 13

X3

 14

X4

 15

X5

 16

X6

Remarks X1 = Estimates of economic growth X2 = Estimated Inflation X3 = Estimated deposit rates X4 = Estimated Dollar / USD

 11

1

Y11

2

Y12

3

Y13

1

RI

3

 12

 11

 13  31

 14  15  16

KM IA E  21 1

Y21

2

Y22

3

Y23

1

3

K KI

PII1

Y11 = stock price prior to publication Y12 = stock price saa publication Y13 = stock price after the publication Y21 = The decision to buy shares Y22 = The decision to wait and observe Y23 = The decision to sell shares

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DATA ANALYSIS In this study, the observed variables are 1 (two) independent variables consisting of 4 (four) indicator and two (2) dependent variables. Variables with one another the possibility of inter-related and should be reviewed in its entirety. Therefore, appropriate methods of analysis is a multivariate statistical analysis methods. Data analysis was performed equesion pursued through structural analysis modeling (Augusty Ferdinand, 2002), this test is performed to determine how the link between a variable to another variable based on the model structure described. Results Variable Macroeconomic Conditions (ME). Measurements for indicators of macroeconomic condition variables can be seen in Table 2 below: Table 2 Results of analysis measurements exogenous parameter estimation (ME) Parameter Error Parameter R2 Estimation variance Estimates of economic 0,35 0,1225 0,8775 growth (X1) Estimates inflation (X2) 0,81 0,6561 0,3439 Estimates deposit rates (X13) 0,87 0,7569 0,2431 Estimates exchange rate 0,74 0,5476 0,4524 USD / EUR (X4) Source: Results of LISREL Analysis Program Based on Table 2 the results of the analysis were conducted simultaneously to pasial and macroeconomic variables (ME). Indicators of macroeconomic variables that have the largest coefficient is surprise deposit rate (X3) which is equal to (0.87) 2 or 76% by value of the error variance (delta) the smallest of 0.24 or 24%. Indicator which has the smallest coefficient is a surprise to economic growth (X1) of (0.35) 2 or 12%. While the indicator has an error variance (delta) is the biggest surprise of economic growth (X1) of 0.88 or 88%. Variable reaction Investor (RI) Measurements for indicators of reaction variables Investor (RI) can be seen in Table 3 below: Table 3 Results of the analysis of the measurement of endogenous variable parameter estimates (RI) Parameter Error Parameter R2 Estimation variance Stock price prior to 0,69 0,48 0,52 publication (Y11) Stock price saa publication 0,74 0,55 0,45 (Y12) Stock price after the 0,99 0,98 0,02 publication (Y13) Source: Results of LISREL Analysis Program

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Based on the results of this analysis indicate that the share price indicator surrounding the publication of the report macroeconomic conditions can be used to describe and measure investor reaction variables. Indicator variable macroeconomic conditions that have the largest coefficient is the stock price after the issuance of the macroeconomic conditions (Y13) which is equal to (0.99) 2 or 98% as well as an indicator that has a value of error variance (eta) smallest 0.02 or 2%. Indicator which has the smallest coefficient is the stock price prior to the publication of reports macroeconomic conditions (Y11) of (0.69) 2 or 48% by value of the error variance (eta), the largest in the amount of 0.52 or 52%. THE DECISION VARIABLES INVESTORS (KI). Measurements for indicators of decision variables Investorn (KI) can be seen in Table 4 below: Table 4 Results of the analysis of the measurement of endogenous variable parameter estimates (KI) Parameter Error Parameter R2 Estimation variance The decision to buy 0,75 0,56 0,44 shares (Y21) The decision to wait 0,69 0,51 0,46 and observe (Y22) The decision to sell 0,78 0,60 0,40 shares (X23) Source: Results of LISREL Analysis Program

Indicator variable Investorn decision that has the largest coefficient is sell / take off stock investments (Y23) which is equal to (0.78) 2 or 60% as well as an indicator that has a value of error variance (eta) of 0.40 or 40% smallest. Indicator which has the smallest coefficient is holding stock investments (Y22) of (0, 69) 2 or 56% by value of the error variance (eta) of 0.46 or the smallest 46%. Judging from the results of the analysis of the partial indicators or simultaneously appears that the coefficient of the indicator variable equal investment decisions in the stock investment decision variable measure that is equal to 56%, 51% and 60%. This suggests that the three indicators can be used to measure or explain stock investment decision variables (KI). Based on the analysis results of calculations using the LISREL program package as presented as follows: 0.8 8 0.3 4

X11

0.2 5 0.4 5

X13

0.87

X14

0.74

X12

0.7 0

0.35 0.81

RI

ME 0.343

0.6 50.7 40.9 9

Y11

0.52

Y12

0.45

Y13

0.02

Source: Results of LISREL Analysis Program

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Seen from above shows that the direct effect of macroeconomic conditions on the reaction of investors is equal to (0.38) 2 = 0.14 or 14%. Thus it can be said that the macroeconomic conditions of the reaction of investors in the Stock Exchange, and thus there is a correlative effect between macroeconomic conditions on the reaction of investors is equal to (0.38) (0.44) (0.47) X 2 = 0.1572 or 16%. So that the overall effect of macroeconomic conditions on the reaction of investors (0.1444 + 0.1572) = 0.3016 or 30%. Based on the analysis results of calculations using the LISREL program package, as presented in Figure 4.5 shows that the direct effect of financial accounting information and non-accounting information on changes in the value of stock trading is equal to (0.40) 2 + (0.343) 2 = 0.2776 or or 28%. Thus it can be said that the financial accounting information and non-accounting information has a direct influence on the change in the value of stock trading on the JSE. From the analysis of the relationship between non-accounting information to financial accounting information has a correlative relationship, then there is also an indirect effect of financial accounting information and non-accounting information on changes in the value of trading stock that is equal to (0.40) (0.343) (0.44) X 2 = 0.1207 or 12%. So that the overall effect of financial accounting information and non-accounting information on changes in the value of stock trading simultaneously (0.2776 + 0.1207) = 0.3983 or 30%. Sedanglkan epsilonnya value of 1 to 0.30 = 0.70 or 70%. Figure: Results of testing the effect of variables (ME & RI) and endogenous (RI) to (KI) RI

0.48

0.67

0.40

KME

0.47

KI

0.358

Chi-Square=276.23, df=113, P-value=0.00000, RMSEA=0.111

Overall macroeconomic condition variables seem equally affect the reaction of investors as reflected in the company's stock price either before, during or after the publication of the report macroeconomic conditions. Thus the results of this test proves that the macro-economic conditions and investor reaction to influence the decisions of investors shares in BEI. So the macro-economic conditions and investor reactions significantly affect stock investment decision.

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DISCUSSION Statistical tests were performed to test simultaneously showed a positive effect. Overall effect of macroeconomic conditions and the reaction of investors and stock investment decisions by 86%. The direct effect of economic conditions by 74%. While the direct effect of the reaction of investors to the stock investment decisions of 45%. If seen from the results of simultaneous testing showed a value of 62%. Chi Square = 276.23; df = 113; P-value = 0.000; and RMSEA = 0.111; t-value = 9.30. Thus these findings prove that the economic conditions and the reaction of investors and stock investors' decisions in the Indonesia Stock Exchange is acceptable. This means that investors in the Indonesian stock exchange investment decision considering the economic conditions of a country's information. These findings support and complement the results of the study Michael A. Berry: Edwin Burncister & Majorie B. McElroy (1988), Baillie and McMahon (1990), Beneish (1991), Rogers (1991), Francis (1994), Hirst et al (1995), Ross (1996), Ainum Naim (1997), Arifin & Baridwan (1997), Joseph A. Imam Suja'i (1999), Sarjono (2000), Sodik (2011). CONCLUSION The conclusion of this study indicate that macroeconomic conditions are indicated with an estimated economic growth conditions, inflation, interest rates, the exchange rate of the rupiah against the dollar investor consideration in making investment decisions stake in Indonesian stock exchange. The results of the analysis of both partially and simultaneously obtain a positive coefficient, which means that in the event of macroeconomic konisi increases, the tendency will increase the number of investors and amount of investment in the Indonesia Stock Exchange. REFERENCES Augusty Ferdinand, 2002, Structural Equation Modeling in Management Research, Hyderabad, Faculty of Economics Diponegoro University. Joseph A. Imam Suja'i, 2001 Macro Economic Factors That Influence the Stock Return In Jakarta Stock Exchange, Dissertation, Graduate School of the University of Airlangga, Surabaya. Baililie, Richard and Patrick McMahon, 1990, The Foreign Exchage Market: Theory and Econometric Evidence, Cambrige University Press, Cambrige Central Bureau of Statistics, Th. 2008-20014, Indonesian Economic Indicators Survey. Brickley, James A., 1983, Shareholder Weight, Information Signaling and the Specially Designated Dividend An Empirical Study, Journal of Financial Economics, Vol 12, No.2 pp 187-2009. Brown, S., and J. Warner, 1985, Using Daily Stock Return, Journal of Financial Economics, Vol.21, 161-193.

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Chen, Nai-fu, Richard Roll and Stephen A. Ross, 1986, Economic Forces and the Stock Market, Journal of Finance, Vol.LIX, p.383-403. Cohen, Jerome B., et al, 1987, Investment Analysis and Portfolio Management, First Edition, Homewood, Illinois Richard D. Irwin Inc. Indonesian Ministry of Finance, Capital Market Supervisory Agency, the Society of Indonesian Capital Market, 1996, Blueprint Indonesian Capital Market (FiveYear Development Plan 2008-2012). D. Evans, Martin D., 1998, Real Rates, Expected Inflation and Inflation Risk Premia, Journal of Finance, Vol.LIII, p.187-218. Fama, Kenneth R. French, 1992, The Cross-Sectional of Expected Stock Return, Journal of Finance, Vol.XLVII, p.427-465. Gordon, Myron J., 1983, The Impact of Inflation and Real Factor on The Performance of The US. Stock Market From 1960 t0 1980, Journal of Finance, Vol.XXXVIII, p.553-569. Roll, Richard and Stephen A. Ross, 1986, The Arbitrage Pricing Theory Approach to stategic Portfolio Planning, Financial Analysis Journal, Vol. XL, p 14-26. Scott, J., 1981, The Probability of Bankruptcy: A Comparison of Empirical Predictions and Theoritcal Models, Journal of Banking and Finance, September, p 317-344. Said Bawazier and J. Sitanggang, 1994, Selecting Stocks For Optimal Portfolio, Entrepreneurship Management XXIII Year January 1, Jakarta, Indonesia LMFE University.

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ENTREPRENEURSHIP EDUCATION AFFECTING ENTREPRENEURIAL ATTITUDES AND INTENTIONS (CASE STUDY STUDENTS OF IBM CIPUTRA UNIVERSITY) Ivan Sutanto1, Christina Whidya Utami2 INDONESIA E-mail: [email protected] ABSTRACT This study aims to 1) test the entrepreneurship education significantly influence entrepreneurial attitude; and 2) test the entrepreneurial attitudes significantly influence entrepreneurial intentions. This study uses a quantitative approach to the analysis of the Structural Equation Model (SEM), which aims to determine the effect of entrepreneurship education (x1) effect on entrepreneurial attitudes (Y1) and entrepreneurial intention (Y2). In this study belong to the entire student population is IBM's UC class of 2010 through 2012 sample in this study was 90 respondents were obtained through the approach of the sample size. Data retrieval technique using a questionnaire. The results of this study showed that entrepreneurship education (x1) effect on entrepreneurial attitudes (Y1) and entrepreneurial attitudes affect the entrepreneurial intention (Y2). The magnitude of the direct effect of entrepreneurship education on entrepreneurial attitudes of 0.811. The direct effect of an entrepreneurial attitude towards entrepreneurial intentions of 0.572.

Keywords: Entrepreneurship Education, Entrepreneurial Attitudes, Entrepreneurial Intentions INTRODUCTION Indonesian state currently has the percentage of entrepreneurs in figure 0.28%, according to data from the department of SMEs and cooperatives that percentage is below the ideal limit of 2% of the total population. The number of small, medium and large enterprises around 683 383 units of the 240million population of Indonesia This shows that people prefer to focus become or be an employee and public servant. Formal education is required to establish a new mindset of each individual. Thought to be the focus of a public servant or employee should start diverted. Education can be one tool to transmit entrepreneurship.Ciputra University has been established since 2006, has a vision to be the university that is able to produce graduates with the capability of world-class entrepreneurship has excellent character and a major positive impact for the nation. While the mission of the University of Ciputra is 1) Establish a graduate who has the mindset of an entrepreneur. 2) Provide support for the formation of graduates who have a superior character. 3) Provide support for awakening the spirit of entrepreneurship.

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4) 5) 6)

Developing graduates who have skills - skills to be professional and entrepreneur in the field. Managing research - research that can improve academic potential and entrepreneurship. Encourage the establishment of a sense of social responsibility among university.

IBM Department of the Ciputra University has a structured program of up to half of the seventh semester for entrepreneurship, the Entrepreneurial Project. The purpose of this course makes the students feel the real atmosphere of doing business. Each semester the students ha ve learning stages and targets appropriate learning period.

Figure 1 Stages of Entrepreneurial Learning Project at the University of Ciputra IBM Based on the description above, the researcher wants to conduct an analysis of entrepreneurship education in the IBM study program for students who have gone through the course of Entrepreneurial Project 2, because the students have started to learn about how the business trip of the 1st half and the 2nd half got deepening both in theory and practice. The import ance of this is to understand the business processes can begin to think they are going to run. CONTEXT AND REVIEW OF LITERATURE Understanding of Entrepreneurial IntentionIntentions according to the definition by Fayolle, Gailly, and Lassasclerc (2006) in Mwakujonga and Sesabo (2012: 18) is the knowledge of a person's readiness to perform a particular behavior and is considered

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precede behavior. The process to determine the readiness is also used to look at the condition of a person to address entrepreneurship. Initial understanding of entrepreneurial intentions by Peng et al. (2012) is a mental orientation as wishes, desires, and expectations influence their choice of air-entrepreneurship. Entrepreneurial intentions, according to Lee and Wong (2004) in Suharti and Sirine (2011), is the first step of a process of establishment of a business that is generally long term.Entrepreneurial intentions, according to Bird (1988) has the goal is not only to create new businesses but also to create new value for existing firms. This explanation proves that the entrepreneurial intention is not just to start a business but also to support business growth. According Suharti and Sirine (2012) is to choose a career as an entrepreneur rather than working for others. In its development, entrepreneurial intentions are not only measured on the individual intentions that would open a business but also to the growth of a business, as expressed by Fini et al. (2009) in Mappigau and Maupa (2012). Forming indicator of entrepreneurial intention is a career as an entrepreneur and to continue a company that has been running. UNDERSTANDING OF ENTREPRENEURIAL ATTITUDES Entrepreneurial attitude and Spinelly according to Timmons (2011: 45) is the attitude that emphasizes taking initiative and responsibility, determined to survive and resilient and able to adapt, instead of focusing on personalities but rather on what they do. Another understanding of the entrepreneurial attitude, according to Ajzen (1988) and Robbins et al. (1991) in Chen et al. (2012) is a positive and a negative one's intention in seeing a new business and can be measured through cognitive, affective, and the intention of the perpetrators.Indicator forming an entrepreneurial attitude adopted on entrepreneurial attitudes orientation (EAO) as designed by Robinson et al. (1991) in Harris and Gibson (2008) is a business achievement, innovation, control of business outcomes, and self-perceived in the business.Understanding of Entrepreneurship EducationEntrepreneurship education, according Tanan and Ciputra (2008: 85) has a sense of establishment mindset, character, and certain life skills that ultimately produce skills to create chances, innovate, and measured risk-taking. In educating an entrepreneur, not only to teach about entrepreneurship theory or have skills - a skill like that done by the entrepreneur, but should be able to encourage someone to believe the entrepreneurial choice, because it needs now is entrepreneurs who will be able to create jobs for themselves and others. In an impact on student behavior requires education that prepares candidates for potential entrepreneurs and real, in Steeter et al. in Ciobotaru (2013) and was able to make education at the university closer to the realities of the market (Powel and Ozorhon, Mars et al., Tartari et al., and Bourelos in Ciobotaru (2013)). Entrepreneurship education needs criteria, in Soehadi et al. (2011: 31), 1) experience actively trying, 2) learn from others, and 3) learn from formal sources. Hypothesis The hypothesis in this study is H1 : Education entrepreneurship significant effect on entrepreneurial attitudes. H2 : Entrepreneurial attitudes significant effect on entrepreneurial intentions.

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RESEARCH METHODS The approach used in the present study was to use a quantitative approach. Quantitative approach, according to Prasetyo and Jannah (2011: 25) is in the scope of social development that gives primary emphasis to the explanation of basic concepts which are then used as a means of analysis.The total population in this study were all students of the University of Ciputra IBM who have passed courses Entrepreneurial Project 2, which amounts to about 820 students. Sample in this study is determined by the method of sample size. This method uses the calculation of the amount of indicator multiplied by 10 Determination of the number of samples is to use the rule of thumb (Hair et al., 1995 in Djauhari and Rachmansyah (2010) which states the sample size is 5-10 times the number of indicators. Thus the sample in this study is 90 people. sampling technique with a non-probability method is based on the ease (convience). Methods of data collection in this study using a closed questionnaire on each - each question item. Closed means that respondents are only given a certain answer choices. The type of data in this study are nominal data for gender, ordinal data for education level, and the ratio of data to the questionnaire questions. In this study, using a Likert scale attribute. This scale was first developed by Rensis Likert. The method according to infallible (2009: 81) in Prasetyo and Ali (2013) is a method that uses the distribution of responses scaling agree -disagreeas the basis for determination of value. In this study the determination of the value enforced.Variables examined in this study can be divided into three. The first is the exogenous variables, namely entrepreneurship education (X1). The second is an intervening variable, namely the variable entrepreneurial attitude (Y1). The third is an endogenous variable, ie the variable of entrepreneurial intentions (Y2). Data Analysis Techniques SEM Analysis SEM analysis, according to Byrne (2010: 3) is a statistical methodology that takes a confirmatory approach to the structural analysis based on the theory that some of the phenomena. SEM used in this study is as follows: Y1 = α 1X1 + e1 Y2 = β1Y1 + e2 Specification: Y2 = variable entrepreneurial intentions α1 = coefficient of variable entrepreneurship education on entrepreneurial attitudes x 1 = variable entrepreneurship education β1 = coefficient of variable entrepreneurial attitude towards entrepreneurial intentions Y1 = variable entrepreneurial attitude e1, e2 = error

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RESULT Characteristic of Respondent Table 1 Characteristics of Respondents by Gender and Age Attributes Category Number Percentage (%) 51,1 Mal 46 Gender e Femal 44 48,9 rd e 3 semester 6 6,7 th Level of 5 semester 55 61,1 education th 7 semester 29 32,2 Source: The study results were processed in 2014 From the table above, it can be seen that most of the respondents by gender is male as many as 46 people (51,1%) and the highest level of education category is 5 th semester by the number of 55 people (61,1%).SEM Analysis Based on the research that has been done then obtained the following results: Tabel 2 Variabel

CeofLane

Entrepreneurship education entrepreneurial attitudes

0,811

Entrepreneurial attitudes entrepreneurial intentions

0,572

CR

P value

3,376

***

2.406

0,016

Description Significant Significant

Source: The study results were processed in 2014 According to the table above, generated SEM is: Y1 = 0,811 X1 +1 Y2 = 0,572 Y1 +2 SEM above can be explained as follows : 1. The magnitude of the direct effect of entrepreneurship education on entrepreneurial attitudes of 0.811. 2. The magnitude of the direct effect of an entrepreneurial attitude towards entrepreneurial intentions of 0.572. CONCLUSION Based on research results that have been discussed in the previous chapter, it can be concluded as follows: 1. Significant effect of entrepreneurship education on entrepreneurial attitudes. The results of the study showed that entrepreneurship education in the learning resources from experience, learning from formal sources, and learn

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from the other party an impact on entrepreneurial attitudes. The most important indicator in entrepreneurship education is experience. 2. Entrepreneurial attitude have a significant effect on entrepreneurial intentions. The results of the study indicate that entrepreneurial attitudes on indicators of achievement, innovation, personal control, and self-esteem have an impact on entrepreneurial intentions. The most influential indicator of entrepreneurial attitude is personal control. In the entrepreneurial intentions of the most visible indicator of the continuing company has been running. Managerial Implication Before Research As a lecturer, educating 1. students since grown is a lesson of life, so it can not only 2. teach the students but also pay 3. attention to the situation. 4.

5. 6.

7. 8.

After Research Students in the first level test how his desire to do business and what areas of the interest Lecturer at IBM are given the facility to do business so as to get to know the real dynamics. Lecturer in IBM limited in the amount of teaching in the classroom and given two days for business. The ratio of faculty and students are not obligatory excessive that faculty can optimally monitor and focus on business mentoring students. Procurement subject completely - completely designed according to what is and will be facing in the world of work. Textbooks used is applied and when it allows faculty to publish a book that iscorrect - the students can actually be used as a guide in doing business. Research faculty - professors are required to meet the tri dharma college that can be applied to business students. It is thus crucial involvement of Entrepreneurial Project professors who have real experience in the business to strengthen the educational experience of entrepreneurship.

Table 3 Comparison Before and After Research in the Matter of Entrepreneurship Education Before Research

After Research

IBM Ciputra University lecturer should provide encouragement for the students to have an entrepreneurial attitude.

1. For those businesses that really - really nice there prestigious awards and has values that are important to students. Here students will awaken pride and as a young child will burn spirit. The award was one of them can be written his name on the billboards. 2. If they can pursue the target with the appropriate path, then they will get used to the scent of a real business competition. 3. From the second half was asked to start preparing for innovation in business since the fifth semester will be given the theme of innovation. 4. Preparing the curriculum and faculty from the beginning when the student wants personal business or to continue the family business. 5. Each lecture is obliged to direct students about the importance of being an entrepreneur. 6. Lecturer shows a real impact on the students who received Source: Thecommunity study results processed in 2014 wherewere students become entrepreneurs.

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REFERENCES Bird, B. 1988, Implementing Entrepreneurial Idea: The Case for Intention, Academic of Management Review, 13, 442-453. Byrne, Barbara M. 2010. Structural Equation Modeling With AMOS. New York: Routledge.Chen, Su – Chang, Ling – Ling Jing, dan Ming – Hung Sung (2012). Universitys Students’ Personality Traits and Entrepreneurial Intention: Using Entrepreneurship and Entrepreneurial Attitude as Mediating Variable, International Journal of Economics and Research, 3, 3, 76 – 82. Ciobotaru, A. 2013. Entrepreneurial Education As a Society Project: An Essay on the Conceptualization of the Spirit of Initiative and Entrepreneurship in Educational Field. Review of Economic Studies and Research Virgil Madgearu, 1, 41 – 76. Djauhari dan Yanuar Rachmansyah 2010. Strategi Meningkatkan Penjualan Asuransi (Studi di AJB Bumiputera 1912 Kantor Cabang Semarang, Jurnal Prestasi, 6, 1,146 – 177. Harris, Michael L. dan Shanan G. Gibson 2008. Examining the entrepreneurial attitudes of US business students. Emerald Group Publishing Limited, 0040-0912, 568 – 581. Mappigau, P. dan Haris Maupa 2012 Entrepreneurial Intention and Small Business Growth: An Empirical Study of a Small Food Processing Enterprises in South Sulawesi, Indonesia. International Journal of Business and Social Research, 2, 4, 237 – 248. Mwakujonga, Joshua dan Yohana Sesabo 2012 Entrepreneurship Education The Specialization in Entrepreneurship Education on Entrepreneurial Intentions of University Students in Tanzania. Germany: Saarbrűcken, LAP Lambert Academic Publishing. Peng, Zhengxia, Genshu Lu, dan Hui Kang 2012. Entrepreneurial Intentions and Its Influencing Factors: a Survey of the University Students in Xi’an China. Science Research, 3, Supplement, 95 – 100. Prasetyo, B. dan Lina Miftahul J. 2011 Metode Penelitian Kuantitatif. Jakarta: Raja Grafindo. Prasetyo, Y. dan Ali Maksum 2013. Faktor – faktor Penyebab Rendahnya Minat Siswa Terhadap Ekstrakurikuler Olahraga di SMA Negeri 1 Slahung Ponorogo. Jurnal Pendidikan Olahraga dan Kesehatan, 1, 1, 174 – 179.Soehadi A. W., Eko S., V. Winarto, dan M. Setiawan K. 2011 Prasetya Mulya EDC on Entrepreneurship Education Strategi Komperhensif Membentuk Wirausaha Terdidik. Jakarta: Prasetya Mulya Publishing.Suharti, L. dan Hani Sirine 2011. Faktor – faktor yang Berpengaruh Terhadap Niat Kewirausahaan (Entrepreneurial Intention) (Studi Terhadap Mahasiswa Universitas Kristen Satya Wacana, Salatiga). Jurnal Manajemen dan Kewirausahaan, 13, 2, 124 – 134. Tanan, A. dan Ciputra 2008. Ciputra Quantum Leap: Bagaimana Entrepreneurship Mengubah Masa Depan Anda dan Masa Depan Bangsa. Jakarta: Elex Media Computindo. Timmons, Jeffry A. dan Stephen Spinelly Jr. 2009. New Venture Creation: Entrepreneurship For the 21 St Century. Singapore: McGraw – Hill.

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The First International Conference on Entrepreneurship

DEVELOPING ENTREPRENEUR LEADERSHIP IN ELEMENTARY SCHOOLS Roesminingsih1, Erny2 University of Surabaya INDONESIA E-mails: [email protected], [email protected],com

ABSTRACT Schools are important places for the development of human resource quality. They should be responsive to the changes which needed by all elements of schools and the users. Changes carried out by an entrepreneur are directed towards dynamic behaviors, a bravery in risk taking, reactiveness, and improvement. The effective school changes are dependent upon on the ideas and activities performed by the principal, and then understood, followed, and supported by all elements of the schools. The school’s principal influences, directs, develops, and empowers people under their management. Changes can only come into being from the nature of self-sufficiency and the creativity which are built via entrepreneurship. An entrepreneur leadership is a change strategy in managing the entire school activities. The school’s principal perform four steps: (1) modelling and as a catalyst, (2) changing climate and conditioning, (3) structure modification, and (4) institutionalization. The four steps are performed with a system of “among”, so that it will bring a paradigm developed by teachers themselves. Self-finding of teachers is conditioned in team work. The empowerment of team work is well planned, measured, and continuous in accordance with the school plans and programs. Keywords: Entrepreneur Leadership, Change, School INTRODUCTION The 21st century, changes and how to do it right became the topic the attention of the leaders of the organization. Changes occur anywhere with the speed and complexity of the diverse and increasing more. Therefore, the success of an organization depends on the success of the leader in leading its changes. The changes nowadays is more complex and continuous or can be called "transformation". Change agents focused their efforts on two things: how to make better planning for change and how to deal with resistance to change. To be able to do this transformational change, leaders must have an understanding of the change and skills

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and leadership strategies. Throughout, it is advised to transform themselves before leading transformation in the organization. Regulation of the Ministry of National Education No. 13 of 2007 about the Standards of principal for School / Madrasah has determined that there are 5 (five) dimensions of competence that need to be owned by the principals, namely: personality, managerial, entrepreneur, supervision and social. A principal in conducting its duties and functions, beside that five points it must be supported by the competence of moving, influencing, and empowering the people in the school. School as an educational institution is expected to serve as: (1) foundation of the children personal development to be good citizens, (2) foundation of the children basic abilities, and (3) the early education providers as preparation to continue to higher education, namely secondary education. The main basic abilities are given to the students of elementary school is a basic ability to make critical and imaginative thinking that reflected in the mode of writing, counting and reading skills. In terms of components, there are some elements in the organization of primary school. These elements include: (1) human resources, including the principal, teachers, administrators, and students, (2) material resources, including equipment, materials, funds, and other infrastructure, (3) organization attributes, including the purpose, size, structure, tasks, hierarchy, formalization, and regulatory organizations, (4) internal organizational climate, perceived organizational situation that member feel in the process of interaction, and (5) the environment of the school organization. In terms of its characteristics, primary school is an organizational system. which can be viewed from two sides, namely the structure and organizational behavior. Organizational structure refers to the organizational framework, the governance division of tasks and relationships both vertically, horizontally and diagonally. It could include job specification, job description, command line, regulatory organizations, as well as the hierarchy of authority and responsibility. Organizational behavior refers to those aspects of human behavior in organizations. School organization is viewed as a social system in which there is interaction between individuals to achieve organizational goals. One of the many attributes associated with the interaction of individual behavior in organization is organizational culture. Organizational culture determines the value system and power as the thrust that school have to face the environmental changes. Schools are able to adapt to any changes and able to predict with all possibilities that will occur. Schools will face with its power, which is a tremendous impetus. Greenberg & Baron (1995) emphasized the organizational culture as a cognitive framework contains the attitudes, values, norms, behaviors, and expectations shared by members of the organization. The institution, each member is required to act in accordance with the roles and expectations in order to achieve organizational goals. The individual, each member is required to act in accordance with personal needs, as well as the norms of the institution. The principal is a leader who runs its role in the school as an educational institution. The principal role as educational leaders. Leadership in the educational context is defined as "leadership, in the context of school, help bring meaning and a sense of purpose to the relationship between the leader, the staff, the students, the parent and the wider school community. Leadership is not only a matter of what a leader does, but how

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a leader makes people fell abort them- selves in the work situation and about the organization itself "(Turney, et.al 1992: 48) McCall (1994: 19) point about leadership education (schools) as follows: "Leadership: providing purpose and direction for individuals and groups; Shaping school culture and values, facilitating the development of a shared strategic vision for the school; formulating goals and planning change Efforts with staff and setting priorities for one's school in the context of community and district priorities and student and staff needs. The dialogue between the interests of the school as an entity that acts as an educational institution and the duties and role of the principal in an era of fast-paced change. The school principal is requested to mobilize all resources available in the school with a formula that can be followed and supported by all components of the school so as to make an extraordinary power that the school owned. In this paper we offer entrepreneurial concept leaderhip as formulations that must be built and dig at school among the cultural values of Ki Hajar Dewantara implemented in schools LEADERSHIP Principal leadership is more geared towards empowerment. Empowerment means increasing its functional capabilities, so that the principal is able to act in accordance with the duties, powers, and responsibilities. The school principal acted as an effective manager and leader. As a manager they are able to arrange for all the schools potential can run optimally. Appropriate leadership is leadership that prioritize the provision of opportunity, and or push all the elements that exist in the school to work on the basis of the noble value system, so that all the elements exist in schools that teachers, students, employees, parents, students, community belonging and willing , without coercion, to participate optimally in furthering the ideals of the school. Its application can be reflected in its ability to: (1) identify himself as an agent of change; (2) take bold risks; (3) trust each others; (4) act on the basis of the value system; (5) improve the ability to continuously; (6) adaptive to the changing circumstances; and (7) has a future vision. Leadership at the school need to continue to develop themselves in order to play an effective role in bringing the organization toward better schools. According to Roland S Barth (1990: 64) the principal is the key to good schools, potential determinant factors of school climate, as well as a driving force for the growth of all components of the teacher and school. While it is related to effective school leaders US Department of Education (2004: 3) states that effective principals understand that they are in a position to mobilize others through: (1) articulating and modeling core values that support a challenging and successful education for all; (2) establishing a persistent, public focus on learning at the school, and community, and individual levels, (3) working with others to set ambitious standards for learning; (4) demonstrating and inspiring a shared responsibility and accountability for student outcomes Principal not only play the role and tasks by relying on formal legal authority, but he should be able to be a model of the core values that support school success. In order to strengthen the focus on learning it well on both internal and external to the demands that must be considered. Principals should be able to work together in defining the vision and goals of the school and implementing together with all members of the organization

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with reference to the prescribed standards, it is intended that the level of achievement of a goal can be precisely known as a performance evaluation of school organization together. For that principals must be able to carry out their role in order to inspire the need for responsibility and accountability in the execution of his duty of all stakeholders of education. A principal working with other people, and its success can also be demonstrated by how other people (teachers and staff) can develop and increase their ability and competence in performing professional duties, for the development of people into the main characteristics of successful school principals as well as moving the organization fill it with more human resources quality education. All was done with less reference to three key leadership practices in the context of school leadership: (1) developing people Enabling teachers and other staff to do effectively Reviews their jobs, offering intellectual support and stimulation to improve the work, and providing models of practice and support; (2) Setting Reviews directions for the organization - Developing shared goals, monitoring organizational performance, and promoting effective communication; (3) Redesigning the organization Creating a productive school culture, modifying organizational structures that undermine the work, and building collaborative processes. From the above description, it appears that Principal is the lifeblood of a reformer who should be examples and role models for other personnel within a school, which has sufficient authority to establish, maintain and develop the school climate and culture that is positive and conducive for the development of school organization. she was the determinants of reciprocation of education, as well as the success or failure of a program that has been planned. Many of the requirements and competencies to be possessed by a good principal knowledge, attitudes and skills personality. ENTREPRENEUR LEADERSHIP The word entrepreneur (Francis language) translated into English with the meaning between taker or go-between. According Supaman Sumohamijaya term equal to the term self-employed entrepreneurs. Self-employed means courage, virtue and courage in meeting the needs and solving the problems of life with the powers that be to yourself. Entrepreneurship also refers to the nature, character and characteristics inherent to the individual who has the willpower to realize and develop creative and innovative ideas owned into valuable activities. Entrepreneurial spirit and attitude is not only owned by the entrepreneur, but also every person who thinks of creative and innovative acts, including the principals themselves. Entrepreneurship is a creative and innovative capabilities that form the basis of, tips and resources to locate and exploit opportunities to the succses. Entrepreneur means having the willingness and ability to find and evaluate opportunities, gather necessary resources and act to take advantage of that opportunity. School today, requires Entrepreneur leadership / entrepreneur who is the leader of the school that emphasizes creativity, confidence and contribution to society. With the leadership of a school principal entrepreneur will be able to develop towards a more innovative organization through increased creativity, trust and cooperation with the community. The leader of the entrepreneur is a proactive leader in finding and taking advantage of opportunities to achieve success, and this shows that such a leader will bring a change in the

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organization towards a more adaptive in the face of environmental change, and it also shows the future orientation becomes dominant. Caldwell and Spinks (1992: 79), states that: An appraisal of the current context of schooling Suggests that schools and entrepreneurial entrepreneurial leaders are precisely what are called for ...... original meaning of entrepreneurship, one roomates emphasises creativity, confidence, and an enduring contribution to the community Opinions on the line with the principal's leadership role as stated in the Ministerial Regulation No. 19 of 2007 regarding the management standards of education, in the areas of leadership, performance heads have the following characteristics : a. outlines vision into mission quality targets; b. formulate goals and quality targets to be achieved; c. analyze the challenges, opportunities, strengths, and weaknesses of the school / madrasah; d. make strategic work plan and annual work plan for the implementation of quality improvement; e. responsible for making budget decisions school / madrasah; f. involving teachers, school committee in important decisions school / madrasah. In terms of school / private madrasah, the decision must involve organizing school / madrasah; g. communicate to create intensive support from parents and the community of learners; h. maintain and increase the motivation of teachers and educators using a system of rewards for achievement and sanctions for violations of the rules and code of ethics; i. creating an effective learning environment for students; j. responsible for the implementation of participatory planning curriculum; k. formulate and implement programs of supervision, supervision and utilize the results to improve the performance of schools / madrasah; l. improve the quality of education; m. set an example and keep the good name of the institution, the profession, and the position in accordance with the trust given to him; n. facilitate the development, dissemination, and implementation of a vision of learning that is well communicated and supported by the school community / madrasah; o. assist, foster, and maintain a school environment / madrasah and learning programs conducive to student learning and professional growth of teachers and education personnel; p. ensuring management of the organization and operation of school resources / madrassa to create a learning environment that is safe, healthy, efficient, and effective; q. collaborate with parents and the community of learners, and school / madrasah respond to the interests and needs of diverse communities, and mobilizing community resources; r. give an example / role model / act responsibly

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Of the 18 aspects of school leadership such as mentioned above it appears that almost all of them show what is to be done by the principal in acting as a leader. Entrepreneurial characteristics on three dimensions, namely innovation, risk-taking and proactive. Refers to the development of the innovative nature of the products, services or unique process that includes a conscious effort to create a particular purpose, focused on the potential socio-economic changes in the organization based on individual creativity and intuition. Risk-taking refers to the willingness to actively pursue opportunities. While the proactive dimension refers to the nature of search techniques assertif and implementation opportunities "market" continuous and experimenting to change enironment. Principals who have an entrepreneurial spirit generally have certain goals and expectations set out in the vision, mission, goals and strategic plan are realistic. Realistic means adapted to the purpose of supporting resources owned. The more clearly defined objectives the greater the opportunity to be able to achieve it. Thus, entrepreneurial principals should have a clear and measurable objectives in developing the school. To determine whether these goals can be achieved then the vision, mission, goals and objectives developed into a more detailed indicators and measurable for each aspect or dimension. Of these indicators can also be developed into programs and subprograms that make it easier for its implementation in the development of the school. To be entrepreneurial principals should apply some of the following: (1) inovatif creative thinking, (2) able to read the direction of the development of education, (3) can show more value than some or all elements of the school system owned, (4 ) needs to foster teamwork, leadership attitude, togetherness and a solid relationship with all members of the school, (5) were able to build good personal approach with their surroundings and do not quickly satisfied with what has been achieved, (6) always upgrade science knowledge and technologies used to improve the quality of amaliah science and scientific charity, (7) can answer the challenge of the future by reflecting on the past and the present to be able to practice the concept of management and information technology. Principals who have entrepreneurial leadership has a tendency to appreciate new ideas, new ways, new practices in the teaching-learning process in schools. This condition affects the discovery of solutions to the everyday problems faced by teachers in the teaching-learning process in the classroom. Thus the teacher will be able to solve their own problems that arise from their professional practice, and therefore they can always improve it on an ongoing basis. Entrepreneurs Leadership and Values Thought Ki Hajar Dewantara The concept of entrepreneurial leadership will be in line with the concept of leadership " Ing Ngarso Sung Tulodho, Ing Madyo Mangun Karsa, Tut Wuri Handayani". The term can be used in this concept is “Among” systems. It literally can be interpreted as follows: "In front give an example, in the middle of building the spirit, on the back of encouraging". 1 Ing Ngarso Sung Tulodho A leader should be a role model that can be emulated by his followers. He had to stand in front and provide concrete examples that can be followed by his followers. A leader must be able to master the field of work. Principals should know how good school

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imaging technique to be followed by his men. A school principal must be able to master the strategy to be an effective school imaging program can be run efficiently by his subordinates. That one of the requirements for being a good leader is to know what to do and was able to run the job, because he will be emulated and imitated figure how it works. The other from the technical knowledge, personal maturity and attitude must be considered as the principal behavior is always a concern subordinates. Both in terms of morals and morality, relationships, even family life will be a role model for subordinates. 2. Ing Madya Mangun Karsa Develop motivation and morale at work is one of the tasks of a leader. In addition to be able to read the situation and state of the school, a good leader must be able to manage its human resources in order to work optimally. Develop a spirit of togetherness (team building) and communicate to all employees about the vision, mission, and values of the school is obligatory for leaders. Delivering the main targets and goals and what steps will be executed, and encourage all employees to achieve it. By developing a sense of family and belonging to the company, all employees are expected to work over backwards and be careful. 3.Tut Wuri Handyani Provide encouragement and facilitate the needs of subordinates to achieve the target would be greatly appreciated by his subordinates. However most often comes down to the field and meet with students, parents and community. Fulfill their needs, empower them and give stock in the form of training. If employees are capable of performing their duties properly and according to the vision of the company, of course goals and objectives can be achieved with the maximum work. Among the characteristics of a leader and trasformasional systems have the meaning: 1. Leaders who have insight into the future and trying to improve and develop the organization is not for the moment but in the future, or termed visionary. 2. Leaders as agents of change and act as a catalyst, which gives a role to change the system towards more baik.Katalisator means leaders served to increase any existing human resources. Try to give a reaction that raises the spirit and power of work quickly as possible, always appear as a pioneer and a carrier change. 3. Balance The balance between the responsibilities of the orientation of the structure and orientation of human relationships. In practice these two conditions change according to each subordinate and caracteristic conditions of school. In this case besides the leaders how the structure of the task which it is responsible, should also pay attention to the condition of his subordinates. 4. Modeling of responsibility, behavior, or achievement expected of someone who has a position and a role in the school 5. Comunikator leader is able to convey the ideas of abstract thoughts into information that is concise and clear, and appropriate manner. 6. Has a positive influence

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The leader has an influence on the subordinates and use their influence for positive things. Influence is the art of using power to move or change the views of others toward a goal or a particular viewpoint. 7. Have the ability to convince others Leaders can use communication skills and influence to convince others of his point of view as well as directing them to the total responsibility towards the viewpoint. The characteristics of system “Among” has a purpose and a clear vision, mission, and has a thorough overview of the school in the future. The leader in this case willing to take bold steps but still refer to the intended purpose for the success of the organization, for example in applying work methods and procedures, staff development as a whole, establish partnerships with various stakeholders, including also guarantee prosperity for his staff. In addition, working relationships and communication with subordinates always note, pay attention to individual differences of subordinates regarding the implementation of creative work and the work of each subordinate in achieving certain productivity. Leader willing to take a policy associated with an increase in motivation and reward subordinates with rewards according to ability level subordinates in completing a task assigned to him ANALYSIS Values of the entrepreneur values the culture of school leadership. This value is a measure of normative influence people to carry out his actions lived. Each component that is in the school has a variety of experiences that enable developed and studied. From that experience, individuals get common standards to behave. For example, how to deal with others, how to respect others, how to choose the appropriate action in a situation, how to solve problems more creatively and so on. These standards tend to be done in time and place-value tertentu. this value has the function of : (1) The value of the standard; (2) Value as the basis for conflict resolution and decision-making; (3) Value as motivation; (4) The value as a basis adjustment; and (5) As a basic value of self-realization, the above analysis in accordance with theopinion of Schein (2002): “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered invalid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to Reviews those problems” This indicates that every person has a variety of experience that allows him to grow and learn. From that experience, individuals get common standards for benchmarkbenchmark behave this tends to be done in a specific time and place. The values are embodied this transformation ". This is reflected in how to make better planning for change and how to deal with resistance to change. However, these efforts are not enough, because the two problems above are just visible in permukaann alone. Therefore businesses need more in-depth on the leadership changes that lead to the change of leadership, the da; am this paper termed entrepreneue leadership. As stated by

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Burns in Yukl (1998: 130) leadership is defined as: "a process where leaders and followers engage in a mutual process of raising one another to higher levels of morality and motivation". Principal leadership is important in showing the progress sekolah.Mantja, (1996) said that the school effectively owns the results of the principal act effectively. The concept of leadership will be in line with the concept of leadership "Ing Ngarso Sung Tulodho, Ing Madyo Mangun Karsa, Tut Wuri Handayani". Values of Ki Hajar Dewantara leadership if it will be seen perkomponen seen the fusion of multiple values / principles in leadership styles, namely: (1) humanist and humane, the human has a soul that is creativity, initiative and work. Development of the whole man demanding a balanced development of all power. Development is too focused on one power alone will generate ketidakutuhan human development; (2) visionary; (3) demonstrated the unyielding wherewith efforts made to achieve the goals set and commitments with predetermined agreement; (4) close to the people, which is close to the required leader leads, understanding the characteristics and needs of subordinates. This values mentioned above in accordance with the opinion of Luthans, 1995: 358, there are seven attitudes of a principal who has successfully implemented transformational leadership style, namely, (1) identifies himself as an agent of change (update); (2) has a brave nature; (3) trusting others; (4) acting on the basis of the value system (not on the basis of individual interests, or on the basis of interests and insistence cronies); 5) improve the ability to continuously; (6) has the ability to deal with complex situations, it is not clear, and uncertain; and (7) have a vision or visionary future. Northouse (2001) stated that a person who can show leadership is that can be demonstrated as an effective leader with better employment outcomes. Therefore, it is very beneficial if the principals can apply the leadership of the values of Ki Hajar Dewantara in school. Implementation of leadership effective Ki Hajar Dewantara takes a process and requires a conscious effort and seriously than concerned. Northouse (2001) gives some tips for implementing the transformational leadership is synonymous with the values of Ki Hajar Dewantara, as follows: (1) empowering his staff to do the best for the organization; (2) try to be a leader who can be imitated based high scores; (3) listen to all the ideas of subordinates to develop a spirit of cooperation; (4) create a vision that can be believed by everyone in the organization, and (5) as agents of change in the organization by providing an example of how to initiate and implement a change. CONCLUSION The changes that are happening in schools today is more complex and continuously. It takes for a breakthrough to empower schools through entrepreneurial leadership. 1. Entrepreneur leadership is defined as school culture. The value system and the thrust force is held in the face school environment condition. Culture is used as a vehicle for the application of leadership .. Leadership, in the context of school, help bring meaning and a sense of purpose to the relationship between the leader, the staff, the students, the parent and the wider school community. Leadership is not only a matter of what a leader does, but how a leader makes people fell abort themselves in the work situation and about the organization itself.

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2. The principal can be a model or a model of the main values that support school success. Principals should be able to work together in defining the vision and goals of the school and implemented in the organization with reference to the standards set 3. Leadership practices in the context of school leadership: (a) developing; (b) setting directions for the organization; (c) redesigning the organization creating a productive school culture, modifying organizational structures that undermine the work, and building collaborative processes. 4. Principal proactive in seeking and taking advantage of opportunities to achieve success, and this shows that such a leader will bring a change in the organization towards a more adaptive in the face of environmental change 5. Concept of leadership will be in line with the concept of leadership "Ing Ngarso Sung Tulodho, Ing Madyo Mangun Karsa, Tut Wuri Handayani", seen from the following principles: (a) humanist and humane; (b) a visionary; (c) give up; (d) a populist, which is close to the required leader leads, understanding the characteristics and needs of subordinates. REFERENCES Adi Ekopriyono, Kepemimpinan yang Melayani, 2003.Suara Merdeka, Semarang.

Baihaqi Miftah. 2007. Ensiklopedi Tokoh Pendidikan. Bandung: Nuansa Schein, Edgar H. “Organizational Culture & Leadership”. (http://www.tnellen.com/ted/tc/schein.html) MIT Sloan Management Review.

Dean Anderson dan Linda Ackerman Anderson.2001. Beyond Change Manajement (Advanced Strategies for Today’s Transformational Leaders).San Fransisco, John Willey and Sons Inc Depdiknas. 2007. Kewirausahaan Sekolah. materi diklat pembinaan kompetensi calon kepala sekolah/kepala sekolah). Jakarta. Dirawat, dkk, 1986, Pengantar Kepemimpinan Pendidikan, Surabaya: Usaha Nasional. Dwiarso Priyo. Problem Solving ala Ki Hajar Dewantoro, Internet.Marselius ST - Rita Andarika, Hubungan antara Persepsi Gaya Kepemimpinan Transformasional, 36 Desember 2004, Internet. Dwiarso Priyo, Sistem Among Mendidik Sikap Merdeka Lahir Batin.Tersedia [OnLine]http://tamansiswa.org/magazine/pijar/sistem-among-mendidik-sikapmerdeka-lahir-batin.html Greenberg, J. & Baron, R.A. 1995.Behavior in Organizations: Understanding and Managing the Human Side of Work. Englewood Cliffs: Prentice Hall, Inc.

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Gorton, R.A, & Schneider, G.T. 1991. School Based Leadership, Challenges and Opportunities. Keeper Boulevard, Dubuque: Wm.C. Brown Publishers.

John Hall, et.al. 2002 Transformational Leadership: The Transformation of Managers and Associates. on line :www.edis.ifas.ufl.edu Kartini. Kartono. 2005. Pemimpin dan Kepemimpinan. Jakarta: Raja Grafindo Persada Kreitner, R. & Kinicki, A. 1992. Organizational Behavior. Boston: Richard D. Irwin, Inc Kasali. Rhenald. 2006. Change ! (Manajemen Perubahan dan Manajemen Harapan). Jakarta: PT Gramedia Pustaka Umum Lutans,.2004. dalam Fred C. Lunenburg, Alan C, Ornstein. Educational Administration; Concepts and Practices. Singapore: Thomson Wadsworth Majelis

Luhur Tamansiswa. 2007. Ki Hajar Dewantara. Tersdia [On Line] (http://id.wikipedia.org/wiki/Ki_Hajar_Dewantara) 24 Nopember 2008. Nasution.(2000) Manajemen Mutu Terpadu. Jakarta: Ghalia Indonesia Reynolds, D., Bollen, R., Creemers, B., et al. 1996. Making Good Schools: Linking School Effectiveness and School Improvement. London: Routledge Ricky W. Griffin. Company). Riyanto

1986. Organisational

Behavior .Boston:

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Mifflin

Theo , Pemikiran Ki Hajar Dewantara. Tersedia [On Line] : http://www.bruderfic.or.id/h-59/pemikiran-ki-hajar-dewantara-tentangpendidikan.html: 24 Nopember 2008.ufik Bahaudin, Kepemimpinan Abad Otak dan Milenium Pikiran, Penerbit : PT Elex Media Komputindo, Internet

Suyanto, kepemimpinan kepala sekolah : http://www.kompas.com /kompas-cetak /0103/23/dikbud/foru09.htm Suharsyahputra. Uhar. Seri Pengembangan Manajemen Sekolah 2 Suharsaputra, Uhar 2013 Administrasi Pendidikan, Cet 2 Edisi Revisi, Bandung, Refika Aditama Umiarso & Gojali Imam.2010Manajemen Mutu Sekolah.Jogjakarta: Ircisod

Undang-Undang RI No.32 Tahun 2004 tentang Pemerintahan Daerah.

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Turney. 1992. The School Manager (Australia: Allen and Unwen, Wahyukismoyo.Heru, Pembangunan & Pendidikan Berbasis Kebudayaan, Harian Umum Kedaulatan Rakyat, Jogjakarta Wahjosumidjo. 1999.KepemimpinanKepalaSekolah.Jakarta:RajaGrafindoPersada

Website Resmi Tamansiswa : http://www.tamansiswa.org (Majelis Luhur Perguruan Tamansiswa Yogyakarta). Yukl, Gary. 2010 Leadership in Organization. Prentice-Hall : New Jersey

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FOREWORD Welcome to the 1st International Conference - icoen.org

The First International Conference on Entrepreneurship FOREWORD Welcome to the 1st International Conference on Entrepreneurship (2014 ICOEN, INDONESI...

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