International Journal of Administrative Science & Organization, January 2014

Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

Volume 21, Number 1

The Empowerment Model of Coastal Homestay Business

Owners in Five Strategic Areas of National Tourism
AYAT TAUFIK AREVIN, MAMUN SARMA, PANG S. ASNGARI AND PUDJI MULYONO
Department of Community Development and Communication Sciences IPB Post Graduate Program,
Bogor Institute of Agriculture, Indonesia
mr.arevin@gmail.com
Abstract. This study examines the variables related and having influence on the success of the coastal homestay business
owners. The total number of samples is 160 owners in five areas of KSPN (the Strategic Area of Indonesian National Tourism),
namely: Pangandaran, Parangtritis, Karangasem, Pulau Untung Jawa, and Tanjung Lesung-UKNP. The hypotheses are: (1)
individual and environmental characteristics influence the process of extensions, working-competence, and entrepreneurial
behavior; (2) the extension process has real influence on working-competence and business empowerment; (3) workingcompetence positively influence entrepreneurial behavior and empowerment; (4) Entrepreneurial behavior and empowerment
directly affect the success of business, and (5) Empowerment clearly affects business success. The model evaluation through
bootstrapping technique gives a reference that: (1) the level of effectiveness of the extension process is influenced by age,
cosmopolitan level, the role of community leaders, and cultural value systems; (2) the role of extension institutions and methods
contributes to the increased working-competence and entrepreneurial behavior. (3) working-competence is reflected in the
ability to handle reservations, receptions, and housekeeping; (4) the entrepreneurial behavior is reflected by transparency, the
level of discipline, punctuality and tenacity; and (5) business success becomes more effective through entrepreneurial behavior
than the level of empowerment.
Keywords: empowerment, homestay business, tourism extensions
Abstrak. Penelitian ini mengungkapkan peubah yang berhubungan dan mempengaruhi keberhasilan pemilik usaha pondok wisata
(UPW). Total jumlah sampel 160 pemilik UPW di lima KSPN (Kawasan Strategis Pariwisata Nasional) yaitu: Pangandaran,
Parangtritis, Karangasem, Pulau Untung Jawa, dan Tanjung Lesung-TNUK. Hipotesis yang diajukan adalah: (1) Karakteristik
individu dan lingkungan berpengaruh nyata terhadap proses penyuluhan, kompetensi kerja, dan perilaku kewirausahaan; (2)
Proses Penyuluhan berpengaruh nyata terhadap kompetensi kerja dan keberdayaan, namun tidak berpengaruh nyata terhadap
perilaku kewirausahaan; (3) Kompetensi Kerja berpengaruh nyata positif terhadap perilaku kewirausahaan dan keberdayaan;
(4) Perilaku kewirausahaan berpengaruh nyata positif terhadap keberhasilan usaha; dan (5) Keberdayaan berpengaruh nyata
terhadap keberhasilan usaha. Teknik bootstrapping menghasilkan strategi bahwa: (1) tingkat efektivitas proses penyuluhan
dipengaruhi usia, tingkat kosmopolitan, peran tokoh masyarakat, dan sistem nilai budaya; (2) Peran lembaga dan metode
penyuluhan diupayakan berkontribusi pada peningkatan kompetensi kerja dan perilaku kewirausahaan. (3) Kompetensi kerja
pemilik UPW tercermin dari kemampuan menangani reservasi, layanan resepsionis dan penyediaan layanan housekeeping;
(4) Perilaku kewirausahaan direfleksikan oleh transparansi, tingkat disiplin, ketelitian dan ketekunan pemilik UPW; dan (5)
Keberhasilan usaha lebih efektif melalui kompetensi kerja yang berkontribusi pada perilaku kewirausahaan, dibandingkan
melalui tingkat keberdayaan.
Kata kunci: pemberdayaan, penyuluhan pariwisata, usaha pondok wisata

INTRODUCTION
Viewed from her geographical condition, Indonesia
is an archipelago with up to 81,000 km of coastal area
extended in more than 17,500 islands. Coastal area which
is the border of land and sea must be managed and used
more wisely to preserve the natural environment. Fact
shows that no less than 60% of Indonesian citizens live
in coastal areas (Dahuri, 2002). The variety of activities
they conducted in order to enhance their standard of life
and community, deliberately or not, change the ecosystem
and natural resources. This, in turn, has an impact on the
environmental condition in coastal area, particularly the
coastlines. The increase in the number of population

living and working in coastal area results in the pressures

on natural resources and coastal area such as degradation
of coastal area, disposal of wastes to the sea, coastal
erosion, coastal accretion and others.
The comparison of condition between coastal area
or fishermen population in various areas and population
in other areas shows that they are relatively left behind
in economy and socio-culture, low in quality of human
resources since the majority of them only graduate or even
fail to graduate from elementary school, and vulnerable
in the function of Business Unit (Kusnadi, 2003).
Likewise, economic development policies in Indonesia
have not supported marine sector since potentials and
business opportunities in this sector have not been

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International Journal of Administrative Science & Organization, January 2014

Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

comprehended by businessmen, bankers, government,

and other stakeholders (Dahuri, 2012). Fact shows that
the majority of coastal area population still make their
living as traditional fishermen, unaware of tourism
business opportunity, or even if they have already known
and started a business, they still lack of good management
capability. The policy in developing coastal tourism will
aid the efforts to save coastal areas from damage. Ethics
in developing tourism says that tourism business must
prioritize public interest, so that public can take part
in managing resources and tourism objects or tourism
destination areas.
Coastal areas have strategic prospect in the sector of
nature-based tourism industry with a potential to be a
source for public welfare. Should the simplicity of life
and traditional ways of coastal people be managed well,
they have priceless cultural investment value for tourism.
Tourists with special interests find the daily life of
traditional fisherman community as enjoyable as natural
panorama of coastal area. It has been proven in such areas
as Bali and Lombok where they choose to live with local
population and interact with them not just for a day or
two, but up to years. Local people houses rented to tourist
are known as home-stays. Many advanced and developing
countries encourage the development of homestay
business concept as rural tourism industry. This business
is capable to accommodate participation of people, so that
it plays an important role in the rural area development.
The expansion of this business is environment-friendly
and based on public interest; it stimulates components of
rural micro-economy in hinterlands, provides job opening
and increases rural economic value; ecological continuity
such as capitalizing natural resources and coastal area
people to develop countryside; exposes rural culture
and landscape to outer world; decreases environment
degradation, decentralizes national income and centralize
local resources in national economy; promotes and
increases farming and other local industries (Yahaya
Ibrahim, 2010).
A homestay is not a hotel, motel, or a kind of over
commercialized cottage and villa. A homestay is a
personal/private house rented by guests living with the
house owner in the comfort and security of a family.
Homestay accommodation is a term associated with a
private house with particular culture, interaction with
a host or a family, every space becomes public area
(Lynch and MacWhannell, 2000). Apart from authentic
experience and architectural of the host culture, homestay
can offer cultural adventure (Cole, 2007). Living in a
homestay, tourists have the opportunity to experience
firsthand the life of local family, with comfort and
simplicity of local characteristics.
Luxury and sophisticated facilities are surely nonexistent in a homestay accommodation. The success of
homestay business depends on the owners capability as
host and operator, which is characteristics of small and
medium businesses. Presidential Decree No. 36 year
2010 declares that homestays are prepared for Micro,
small and medium Business and Cooperative in tourism
sector. Mulyanto (Riyanti, 2003) elaborates general
characteristics of small and medium businesses, among

Volume 21, Number 1

others: (1) Original inhabitant ownership; (2) Traditional

type of business; (3) Product segmentation is aimed at
serving low income population and oriented to domestic
market; (4) Traditional or simple technology; (5) First
capital comes from household in limited amount results
in listless capital accumulation; (6) The business is for
fulfillment of living needs; and (7) Unprofessional and
uninventive management, therefore investment profit is
hard to calculate and future planning capability is only
for short term.
Homestay business is still incapable to develop and
compete with other accommodation of the industry such
as hotel, villa, bungalow, cottage, or large-scale inn.
The success rate of homestay business is still low due
to low rate of power, limited working competence, and
entrepreneurial behavior of coastal area population which
is still incapable to fulfill the needs and wishes of tourists.
This is parallel with the result of study by Indonesia
Ministry of Culture and Tourism (2003) showing the
fact that public participation in development of tourism
destination areas in Indonesia is still low. This is due to:
(1) no clear and detailed regulation on public involvement;
(2) policies that only call for public participation without
elaborating requirements, procedures and implementation
stages; and (3) lack of expertise in tourism sector.
This research endeavors to reveal individual and
environmental characteristic factors that influence the
processes of reconnaissance, working-competence and
entrepreneurial behavior of homestay owner. These
factors need to be understood and mastered by homestay
owners in order to have effect on the power and success
of homestay owners, both from social and economic
aspects. The power of homestay owners is measured
through the level of participation, risk taking audacity,
business planning capability, and innovative capability
in running the business. From economic aspect, the
success of homestay owners is measured from the level
of income, number of clients, level of client loyalty,
expansion of market share, and competitive capability.
The success of homestay owners leads up to the welfare
of homestay owners family and the image-building of
national tourism industry, so that the result of this research
is expected to be a reference for empowerment model of
homestay owners through partnership pattern.
The government has actually attempted to increase
tourism awareness, both for tourism service providers
and users, through Visit Indonesia Year promotion
and tourism awareness campaign or reconnaissance
through Sapta Pesona (seven enchantments) slogan.
Inadequacy of information access and business network
causes the lack of capability of homestay owners in
interacting with guests. It is planted in the mind of foreign
tourists that Indonesian people are socially friendly. They
get easily bored, uncomfortable and unwilling to prolong
their stay. This gradually affects the rate of income and
continuity of homestay business. In the end, this business
can no longer guarantee increase of workers and business
owners welfare. Research questions to be answered in
order to learn the potentials and success of homestay
owners in this research (with some variables effect to be
seen) are: (1). What is the individual and environmental

AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY

characteristic of homestay owners?, (2). How is the

extension/counseling process for homestay owners? (3).
What is the level of working competence, entrepreneurial
behavior, power success of homestay owners?
Based on these questions, this research is aimed at
disclosing: 1. Whether the success of business is connected
to the following variables: individual characteristics,
environmental characteristics, tourism extension/
counseling process, working competence, entrepreneurial
behavior, and rate of power?. 2. How big is the effect of
each variable to the success of homestay owners? and 3.
What is the empowerment model capable of increasing
the success of homestay owners?
Every person has different individual characteristics,
biographical (individual) characteristics can be seen from
age, gender, marital status, amount of responsibilities,
expertise, and working time (Robins, 2001; and Siagian,
2008). According to Mathias (2001), there are four
individual characteristics affecting ones career, namely:
interest, self identity, personality, and social background.
Individual characteristics affect someone in providing
respond to stimuli accepted, and will alter behavior.
Lionberger and Gwin (1982) stated that internal
factors that are sooner or later affecting adoption are age,
educational level, socio-economic status, relationship
pattern and cosmopolitanism, risk taking audacity, attitude
towards changes, productive motivation, aspiration,
fatalism and diagnosism attribute (close confidence
system). The study on individual characteristics effect
to behavior change shows that individual characteristics
should absolutely be considered in extension programs.
In inventive diffusion research, individual characteristics
such as socio-economic status, personality values, and
communicative behavior are known as variables that also
affect individual inventiveness (Rogers, 1989).
Ife (1999) disclosed: community development must
always seek to maximize participation, with the aim
being for everyone in the community to be actively
involved in community processes and activities. The
more people who are active participants, the more the
ideals of community ownership and inclusive process
will be realized (Fatem, 2011). This concept asserts
that the requirement for success of public development
is by integrating as optimum as possible public social
environment component into empowerment process. The
environment factor can influence homestay owners in their
behavior. Indeed, sometimes the influence of power is
bigger than individual characteristics so that environment
power can change ones behavior and orientation.
One of the measurements of extension success can
be seen from public participation level. An extension/
counseling must be able to create a condition where
public are active and powerful in increasing their quality
of life. The core of development extension goals is the
emergence of public active participation in development
program or movement to handle social problem they
encounter (Slamet, 2009).
It is not easy to promote public participation since
every community has various characteristics and culture.
Asngari (2001) operationally clarified that basically
people is willing to participate in an activity when: (1)

11

he realizes that he will gain benefit or fulfillment both

economically or non economically, and (2) he really
knows the significance of the activity, such as: the
program, objectives, steps, process, other stages. every
community needs to be awakened to the benefit for the
self, family, or other community from their participation
in the development.
Competence is ones basic characteristics that
determines the best and effective working product in the
conformation to predetermined criteria in a particular
work or situation. Competence determines ones behavior
and performance (work product) in various situation and
role. Competence also determines the ways one behaves
or thinks, adapts to various situations, and survives in
a long term (Spencer and Spencer, 1993). Competence
is the factor distinguishing workers with superior and
average performances (Sallis, 1993).
An entrepreneur is an individual oriented to action and
is highly motivated to take risk in pursuing his goals. To
accomplish his goals, an entrepreneur needs supportive
attitude and behavior. Wijandi (1988) revealed that
entrepreneurial behavior includes three matters namely
knowledge, mental attitude and skill and wariness attitude
which is the integration of knowledge and mental attitude
elements towards the future. In general, thinking capacity
is determined more by educational level, both formal
and non formal, although there is no direct connection
between knowledge/education and business spirit. In
running a business, an entrepreneur must have some
adequate basic knowledge in order to success.
Empowerment or potency derives from the word
potent; according to Slamet (2003) to be potent has the
same meaning with to know, understand, comprehend,
be motivated, having chance to see opportunity, able to
capitalize on opportunity, having energy, able to cooperate,
know various alternatives, able to decide, unafraid to take
risk, able to search for and catch information and able
to act according to situation. The aim of empowerment
according to Moeljanto (Sudantoko, 2010) is to increase
public capability in actualizing itself (empowerment).
Public capability to actualize and affect the course and
implementation of a program is determined by the power
it possesses; so that empowerment is the central theme or
the participative soul that is active and creative in nature.
The success of a business can be measured from some
aspects, such as: (1) the profit gained by businessmen
in a particular time span; (2) the success of a business
can be identified from the expansion of business scale;
(3) the success of a business is identical to company
development. This term is translated as a process of
increasing the quantity of company dimension; and (4)
the company development is a process of increasing the
number of employees, increasing the sales turnover and
others (Haryadi, 1998).
RESEARCH METHODS
This research employs a quantitative paradigm. The
method used is surveys. According to Sevilla et al. (1993)
a survey emphasizes more on determining information
about variables than information about individuals.
Research data are collected simultaneously between

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International Journal of Administrative Science & Organization, January 2014

Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

Access to
business network

Access to
capital

Access to
market info

Housekeeping
Service

Room
service

Customers
Loyalty

Costumer
Focus

Business
success
Y4

Tenacity

Market
Opportunit
y

Environment
characteristi
cs
X2

Punctuality

Cultural Value
System

Customers
Loyalty

Entreprene
urial
behavior
Y2

Accuracy

The Role of
Community
Figure

Empowerm
ent
Y3

Integrity

Family Support

Extension
Process
X3

Accountability

Extension
method

Receptionis
t service

Working
competenc
e
Y1

Level of
Cosmopolitanism

The Role of
extension
institution

Access to
technology

Business
Motivation

Discipline

Working
Experience

Individual
Characteristi
cs
X1

Transparency

Training
Experience

Customer &
colleague
cooperation

Age
Formal
Education

reservation
service

variable X and Y. Variables tested are (1) Individual

characteristics of homestay owner, (2) Environmental
characteristics of homestay owner, (3) The extension
process given to homestay owner, (4) Working competence
rate of homestay owner, (5) Entrepreneurial behavior of
homestay owner, (6) Empowerment rate of homestay
owner, and (7) Success rate of homestay owner. Based
on the explanation of observation theory from previous
researchers, it can be summarized in Figure 1, explaining
about the factors affecting success of homestay owner.
This research is designed as a study on the causality
relation, a change of one variable will generate a change
of other variable, by employing survey approach. The
research was conducted in five coastal areas in KSPN,
namely: (1) Pangandaran in Pangandaran District-West
Java; (2) Parangtritis in Bantul District-Yogyakarta; (3)
Karangasem in Karangasem District Bali; (4) Untung
Jawa Island in Kepulauan Seribu District-DKI Jakarta;
and (5) Tanjung Lesung- Ujung Kulon National Park
(UKNP) in Pandeglang District-Banten.
The number of research population is 241 persons,
i.e. homestay owners having less than 10 rooms. The
selection of 160 of homestay owners as samples was by
employing the formula of Slovin (Sevilla et al. 1993) with
maximum error standard of 6%. Samples were collected
using cluster simple random sampling: in Pangandaran
40 persons, Parangtritis 30 persons, Karangasem 37
persons, Untung Jawa Island 32 persons, and Tanjung
Lesung-UKNP 21 persons. The primary data were
gathered through filling questionnaire, interview and field
observation. Secondary data were obtained from offices,
organizations, and concerned groups.
The effect of research variables was determined through
structural equation analysis (Structural Equation Modeling)
by using SmartPLS software 2.0 M3 (Ghozali, 2008).
The stages of analysis in this way are: Validity : Results
of convergent validity test as loading factor and AVE
(Average variance extracted). If the result of the research
shows loading factor more than 0.5 and output result shows
AVE value more than 0.5 then the model is good.

Customers
Loyalty
Market
extension
Competing skills

Figure 1. Factors Connected to and Affecting Success

of Homestay Owner

Volume 21, Number 1

Next, the discriminant validity of AVE root is

compared to the correlation between constructions; the
criteria that must be fulfilled is AVE root bigger than
correlation between constructions. The constructions in
the model are then estimated to discover whether it has
fulfilled the criteria of discriminant validity. Reliability
means the fulfillment of Cronbachs Alpha criteria more
than 0.60 and in the same manner Composite Reliability
0.60. Hypothesis Testing is when the coefficient (original
sample) tcalculation bigger than ttable1.96 and have
positive value, it means one way influence (the bigger X
than the higher Y), but when the coefficient has negative
value, it means the opposite influence (if X becomes
higher then Y becomes less). Then, model evaluation is
conducted by comparing the value of R-Square.
This research aims at demonstrating two research
hypotheses namely: whether there is a connection between
variable factors affecting the success of homestay owner
business and how big is the influence value between
variable factors in connection with the success of homestay
business owner? The variable factors to be analyzed
from the hypotheses are individual characteristics,
environment characteristics, working competence,
entrepreneurial behavior, and empowerment of homestay
owner. The hypotheses that can be formulated are as
follow: 1. Individual characteristics have positive actual
influence to extension process, working competence, and
entrepreneurial behavior. 2. Environment characteristics
have positive actual influence to extension process,
working competence, and entrepreneurial behavior. 3.
Extension process has positive actual influence to working
competence, entrepreneurial behavior, empowerment,
and success of business. 4. Working Competence has
positive actual influence to entrepreneurial behavior,
empowerment, and success of business
RESULT AND DISCUSSION
At first this research formulated 7 variables and 34
indicators (like in Figure 1). Through the measurement
model of three step testing, 16 indicators were eliminated
and removed from the model. The filtered output become
18 representing indicators and all of them have loading
factor value more than 0.50. The result is as follow
(Figure 2): (1) Individual characteristics construction
(X1) was measured by using (X11- X15) indicators. Age
(X11) and Cosmopolitan level (X15) are able to reflect
since both having loading factor more than 0.5. (2).
Business environment characteristics construction (X2)
was measured by using (X21- X24) indicators. Role of
public figure (X22) and cultural value system (X23) are
able to reflect since the loading factor is more than 0.5.
(3). Extension Process Construction (X3) was measured
by using (X31- X32) indicators. Extension implementation
institution (X31) and extension method (X32) indicators
are able to reflect since both have loading factor over 0.5.
(4). Homestay owner working competence construction
(Y1) was measured by using (Y11-Y15) indicators.
Reservation handlings (Y12), receptionist service (Y13)
and housekeeping service facility (Y14) are able to reflect
since all have loading factor more than 0.5.

AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY

Level of
Cosmopolit
anism
Level of
Cosmopolit
anism

- 0.661
0.831

Individual
characteristi
cs
X1
0.000
0.332

Level of
Cosmopolita
nism

- 0.729

Extension
principles

0.767

0.177

0.859
Access to
Access to
Access to
technolog Market info business

Working
competenc
e
Y1
0.561
0.260

0.505

Table 1. The Value of Validity, Reliability, and Reflective Level of Each Variable

Housekeeping
service

0.795

0.785

Extension
process
X3
0.277

network

0.824
0.590
0.365

0.412

0.789

0.825

Empower
ment
Y3
0.442

0.123
0.334

The role of
community
figure

Receptioni
st service

Reservatio
n service

0.783

Cultural
value system 0.866

Environment
characteristi
cs
X2
0.000

0.162
0.227
Transparen
cy

Entreprene
urial
behavior
Y2
0.415
0.675
0.779

Discipline

0.417

0.405

Customers
Loyalty
0.870

Competing
skills

0.857

Business
success
Y4
0.461

0.818
0.898

13

Tenacity

Accuracy

Figure 2 The Construction Model and 18 Indicators as

the Result of Outer Model Measurement Elimination
Homestay owner entrepreneurial behavior construction
(Y2) was measured by using (Y21-Y26) indicators.
Transparency (Y23), discipline (Y24), punctuality (Y25),
tenacity (Y27), and customer focus (Y28) are able to reflect
since all have loading factor more than 0.5. Homestay
owner empowerment construction (Y3) was measured by
using (Y31-Y34) indicators. Technology access capability
(Y31), market information access (Y33), and business
network access (Y34) are able to reflect since all have
loading factor more than 0.5. Homestay owner success
construction (Y4) was measured by using (Y41-Y45)
indicators. Customer loyalty (Y43), and competitiveness
(Y45) are able to reflect since both have loading factor
more than 0.5.
Measurement
of
reflective
multidimensional
construction shows that the whole construction has
fulfilled the convergent validity test, namely AVE and
communality more than 0.5 (Table 1), There are 5 rsquare
value since individual characteristics and environment
characteristics construction are formed by the dimension
of construction underneath so that they have rsquare value
beside in variable dependant extension process, working
competence, entrepreneurial behavior, empowerment,
and success of homestay owner.
Measurement of discriminant validity was based on
the cross loading measurement and its construction or by
comparing AVE root for each construction with correlation
between construction and other construction in the model
(Table 1). The model has enough discriminant validity
if AVE root for each construction is bigger than the
correlation between construction with other construction
in the model. From the results of the measurement, it is
discovered that the comparison between AVE root value
and coefficient correlation between variables above
all AVE root value is higher than the correlation value
between construction; then it can be concluded that
the indicator (measuring) employed in the research has
fulfilled the discriminant validity criteria.
The variable reliability was measured by cronbachs
alpha and composite reliability, cronbachs alpha measures
lower limit of a variable reliability value, while composite
reliability measures the actual value of a variable
reliability. This research employs composite reliability
test to test consistency of variable internal (Table 1).
The output value of SmartPLS software connected to (1)

Variable construction

AVE

AVE

Composite Reliability

Cronbachs
Alpha

RSquare

Communality

Redundancy

Individual
charac.

0,563654

0,750769

0,031729

-0,303200

0,563654

Environment
charac.

0,681526

0,825546

0,810217

0,536980

0,681526

Extension
process

0,559375

0,747914

0,001629

-0,270002

0,276726

0,559375

0,092835

Working
competence

0,661767

0,813491

0,854231

0,743877

0,560810

0,661767

0,085573

Entrepreneurial
Behavior

0,634350

0,796461

0,872918

0,809423

0,415378

0,634350

0,047225

Empowerment

0,661180

0,813130

0,854052

0,744444

0,441652

0,661180

0,206454

Success

0,745559

0,863458

0,854228

0,658887

0,460566

0,745559

0,221188

Explanation:
A good model is when the AVE (Average variance extracted) for each construction value is more than 0.5. as
a result of AVE output showing that AVE value > 0.5; it
means the model is good. Criteria: cronbachs alpha (CA)
> 0.60 and composite reliability (CR) > 0.60, if CA and
CR criteria fulfilled; it is Reliable.
Environment characteristics have composite reliability
(CR) value 0.810217 and cronbach alpha (CA) value
of 0.536980; (2) Working Competence CR = 0.854231
and CA = 0.743877; (3) Entrepreneurial behavior CR =
0.872918 and CA = 0.809423; (3) Empowerment CR =
0.854052 and CA = 0.744444; and (4) Business Success
CR = 0.854228 and CA = 0.658887. The program output
shows that composite reliability value from each variable
above 0.5 thus it can be said that measurement employed
in this research is reliable.
The inner model is evaluated with rsquare for
dependent variable and coefficient value in path () for
independent variable, then determine its significance
based on tcalculation value of each path. The output
values of SmartPLS software for structural model in
this research (Table 1) are: rsquare for extension process
variable is 0.276726, working competence 0.560810,
entrepreneurial behavior 0.415378, empowerment
0.441652, and business success 0.460566.
The value of rsquare confers a figure that individual
characteristics and environment characteristics variables
towards extension process variable confers rsquare
value 0.277 that means individual characteristics and
environment characteristics variables can affect extension
process variable up to 27.7 %, while the rest 72.3 %
is explained by other variable outside the research.
Working competence variable was affected by individual
characteristics variable, environment characteristics
variable, and extension process variable up to 56 %
with 44 % explained by other variable outside the

14

International Journal of Administrative Science & Organization, January 2014

Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

research. Entrepreneurial behavior variable was affected

by individual characteristics variable, environment
characteristics variable, and extension process variable up
to 41.5 %, while 58.5 % explained by other variable outside
the research. Empowerment variable can be explained
by working competence variable and entrepreneurial
behavior variable up to 44.2 % and 55.8 % explained
by other variable outside the research. Business success
variable can be explained by empowerment variable up
to 46.1 % and 53.9 % explained by other variable outside
the research.
Next, the model was tested with bootstrapping
technique. This technique is capable of simulating much
larger number of respondents. Research sample of 160
respondents can be simulated into 500 respondents. The
results of SmartPLS 2.0 M3 software calculation shows
that if tcalculation more than 1.96, it means variable has
actual influence and if coefficient has positive value, it
means the influence is one way and if coefficient has
negative value, it means the influence is opposite. Figure
3 shows verification of research hypotheses based on
the results of the measurement, that: (1). Individual
characteristics has positive actual influence to extension
process, verified by tcalculation 2.607643 and positive
influence coefficient value 0.332047. (2) Environment
characteristics has positive actual influence to extension
process, verified by tcalculation 2.986454 and positive
influence coefficient value 0.333664. (2) Individual
characteristics has positive actual influence to working
competence, verified by tcalculation 4.261966 and
positive influence coefficient value 0.177320.
(3)
Environment characteristics has positive actual influence
to working competence, verified by tcalculation 7.437565
and positive influence coefficient value 0.259524.
(4) Extension Process has positive actual influence to
working competence, verified by tcalculation 2.853623
and positive influence coefficient value 0.505460. (5)
Individual characteristics has positive actual influence to
entrepreneurial behavior, verified by tcalculation 3.048598
and positive influence coefficient value 0.123084. (6)
Environment characteristics has positive actual influence
to entrepreneurial behavior, verified by tcalculation
5.313325 and positive influence coefficient value
0.227135. (7) Extension Process does not have positive
actual influence to entrepreneurial behavior, verified by
tcalculation 0.520255 (<1,96) and positive influence
Level of
cosmopolit
anism

11, 91

Level of
cosmopolit
anism

20, 64

Individual
characteristi
cs
X1

Receptioni
st service
Reservatio
n service

4,26

Housekeeping
service

41,46

40,13

51,33
Access to

2, 61

Extension
institution

2, 80

Extension
method

3, 11

Working
competence
Y1

2,85
7, 44

Extension
process
X3

2, 99
The role of
community
figure

17, 98
43, 72

Environment
characteristi
cs
X2

51,21 33,83

7,31

3,05

Entreprene
urial
behavior
Y2

5, 20

17,68
Transparen
cy

Access to
business
network

58,44

5,62
2,50

5, 31

Cultural
value system

Access to
technolog market info
y

45,89
37,46
119,16

Discipline

Empowerm
ent
Y3

Customers
loyalty

61,38
10,71
11,69

Competing
skills

44,75

Business
success
Y4

Tenacity

Accuracy

Figure 3. Empowerment Model of Homestay Owners

(result of inner model measurement evaluation)

Volume 21, Number 1

coefficient value 0.025493. (8) Working Competence

has positive actual influence to entrepreneurial behavior,
verified by tcalculation 7.307694 and positive influence
coefficient value 0.412371. (9) Extension Process has
positive actual influence to empowerment, verified by
tcalculation 2.498929 and positive influence coefficient
value 0.364952. (10) Working Competence has
positive actual influence to empowerment, verified by
tcalculation 5.614705 and positive influence coefficient
value 0.358620. (11) Entrepreneurial behavior has
positive actual influence to business success, verified by
tcalculation 11.688042 and positive influence coefficient
value 0.417455. (12) Empowerment has actual influence
to business success, verified by tcalculation 10.707086
and positive influence coefficient value 0.404854.
Based on total effects (Mean, STDEV, T-Values) of
the results of calculation, all coefficient values of each
connection are in positive level, which means all have
positive influence, and all tcalculation value of each
variable connection bigger than ttable value (1.96),
except between the extension process influencing
entrepreneurial behavior and between entrepreneurial
behavior to empowerment level, then those two cannot
become reference in considering empowerment strategy
decision through extension process
The determining direction in making decision about the
empowerment strategy of homestay business owner refers
to the highest actual influence value and has positive value
from one construction to others, until business success
has been accomplished. Next is the step to be considered
based on the model produced with tcalculation value
through bootstrapping technique, namely:
The empowerment channel to support the success of
homestay owner is started from the input, derived from
individual characteristics by considering productive
age and high level of cosmopolitan, supported by the
business environment characteristics, derived from the
role of public figure and cultural value system that is still
maintained. These four reflecting indicators become the
consideration in increasing the effectiveness of extension
process through increasing the role of institution and
quality of the method and extension material, adjusted to
interest of the client, in this case, the homestay owners.
The effectiveness of extension process must
have significant influence in increasing the working
competence of homestay owners. Working competence of
homestay owners as the result of the research is reflected
by the capability to handle reservation, receptionist
service and procurement of housekeeping service. These
three competence indicators at present is mastered by
homestay owners through self-education. It will be
more maximum if it is enriched by the competence with
colleague and customer, also competence in providing
food and beverages service for guest (room-service).
The provisioning of working-competence upgrade will
have immediate impact on the quality of entrepreneurial
behavior of homestay owners, much more real than
merely the extension process on entrepreneurial behavior,
whose result is less real. The entrepreneurial behavior of
homestay owners is reflected by transparency, disciplinary
level, punctuality and tenacity.

AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY

Homestay owners with the best working-competence

and qualitative entrepreneurial behavior will have
immediate impact to a high level of success of homestay
business owner. In other words, the empowerment of
homestay owner will have immediate impact on their
business success.
Other alternative is working-competence procurement
must have immediate impact to homestay owners
empowerment since a high level of empowerment will
have immediate impact on homestay owners business
success.
The contribution of the research results to the
development of tourism in Indonesia, particularly
in developing tourism business in coastal areas is
the answers to the problems discovered in the study
conducted by the Ministry of Tourism and Culture, that:
(1) public participation in developing tourist destination
area in Indonesia can be increased through an extension
process that is capable to improve the needs for
working-competence and entrepreneurial skill; (2) social
involvement in the development must be able to invite
participation of stakeholders, like the ability to access
information from central and local government institution
as the keeper of policy and regulation; (3) Universities
must strengthen the skill of making business design,
management method; and (4) financial institutions both
banking and cooperatives must help in financial matters.
CONCLUSION

The factors influencing the success of homestay
owners are: (a) individual characteristics, reflected by
age and cosmopolitan level; (b) business environment
characteristics, reflected by role of public figure and
cultural value system; (c) extension process, reflected
by the role of extension institution and principles;
(d) working-competence, reflected by: reservation
handling, receptionist service and housekeeping service
procurement; (e) entrepreneurial behavior, reflected
by transparency, discipline, punctuality, and tenacity;
(f) empowerment, reflected by the ability to access
technology, access market information, and access
business network; and (g) business success, reflected
by: customer loyalty, and competitiveness. The
factors with immediate impact, namely: (a) individual
characteristics, environment characteristics, extension
process and working competence have immediate
impact to entrepreneurial behavior; (b) extension process
and working competence have immediate impact to
the empowerment of homestay owners; (c) workingcompetence of homestay owners does not directly
connected to business success, but it will take a mediation
through the empowerment and entrepreneurial behavior
improvement of homestay owner.
This research produced a model to increase the success
of homestay owners. It reveals that age, cosmopolitan
level, role of public figure, and cultural value system
become a consideration in the extension process: to
increase working-competence and entrepreneurial
behavior, to increase more empowerment and success
of homestay owner business. The empowerment

15

model for homestay owner, namely: (a) Individual and

environmental characteristics become the consideration
in the extension process so as to influence the competence
level and entrepreneurial behavior. In the case of the
low role of extension institution, the homestay owners
rely on the limited competence and entrepreneurial
behavior in running the homestay business. It is proven
from some indicators that both working-competence
and entrepreneurial behavior cannot reflect each other
significantly. The empowerment of homestay owners is
hampered by the procurement of capital, should this be
overcome the success of business will get stronger.
In building homestay owners empowerment strategy,
and in planning public empowerment through extension
program, the age, educational background, business
motivation, and cosmopolitan level must be considered
to make it more effective. The materials for extension
program must be technical, instead of theoretical or just
an information of government policy; yet it must also be
capable to influence the competence level of homestay
owner in operating his business.
The paradigm must be changed from top-down
tourism extension so far into bottom-up extension which
is observing and accommodating the aspiration of public
interest and needs based on the problems encountered
in running the business. Tourism business community,
particularly homestay business owners, needs an
extension that can increase their working-competence,
improve their entrepreneurial behavior, and get them the
opportunity for capital grant, as well as give the way to
develop it.
Tourism counselors must have a good command
of extension materials that can increase the workingcompetence and change entrepreneurial behavior to a
better direction; in the advances of technology at present,
in fact homestay owners already have a relatively high
level of empowerment, but the behavior has not been in
compliance to tourist needs. Simple homestay business
management materials must be attempted so as to make it
easier to be absorbed and understood by homestay owners,
particularly on licensing administration and report, so if
one day local government draw a tax, an orderly financial
administration will ease the calculation process.
Government must make a policy on the procurement
of an integrated extension program concerning the
partnership pattern that involves extension institutions
with tourism background such as Tourism Institute, and
concerned banking institutions; they must empower the
business owners financially by involving public figure,
in order to maintain positive cultural value system for
tourism development, such as local wisdom and the habit
of cooperation among coastal people. Affection for art
and culture is also a capital that presents a tourism with
more community-based characteristic.
It is time for banking institutions to glance at the
chance of investing capital by giving aid to working units
in tourism sector, particularly homestay business, since
it has a good prospect in the future with the existing
support for development plan from both local and central
government such as in KSPN.

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International Journal of Administrative Science & Organization, January 2014

Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi
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