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Proceedings of 5th International Conference on Research Methods in Management & Social Sciences

(ICRMMS-2016)

Proceedings

5th International Conference on Research Methods in Management


and Social Sciences

Makassar, Indonesia

28 -29, May 2016

ISSN: 2311-9195

Organized by

International Foundation for Research and Development


(IFRD)

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Proceedings of 5th International Conference on Research Methods in Management & Social Sciences
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Preface
Dear Distinguished Delegates and Guests,

Conference Committee warmly welcomes our distinguished delegates and guests to the 2016 International
Conference on Research Methods in Management and Social Sciences (ICRMMS-2016) held on May 28-29
in Makassar, Indonesia.

ICRMMS-2016 is organized by International Foundation for Research and Development (IFRD). The
conference is aimed at discussing with all of you the wide range of problems encountered in present and
future issues in economies and Societies. ICMFE-2016 is organized in collaboration with STIM Lasharan
Jaya Institute, Makassar, Indonesia, Yildirim Beyazit University, Turkey, Shinawatra International
University, Thailand, PERTRE ANDERI of IASI, Romania and National Academy of Management,
Ukraine where researchers from around the world presented their work. The conference committee is
itself quite diverse and truly international, with membership around the world.

Main conference themes and tracks are Research Methods, Management and Social Sciences. Conference
aims to bring together researchers, scientists, engineers and practitioners to exchange and share their
experiences, new ideas and research results about all aspects of the main conference themes and tracks
and discuss the practical challenges encountered and the solutions adopted. The main goal of the event is
to provide a scientific forum for exchange of new ideas in a number of fields that interact in depth
through discussions with their peers from around the world.

Conference has solicited and gathered technical research submission related to all aspects of major
conference themes and tracks. All the submitted papers have been peer reviewed by the reviewers drawn
from the scientific committee, external reviewers and editorial board depending on the subject matter of
the paper. Reviewing and initial selection were undertaken electronically. After the rigorous peer-review
process, the submitted papers were selected based on originality, significance, and clarity for the purpose
of the conference. Conference program is extremely rich, featuring high-impact presentations. The high
quality of the program guaranteed by the presence of an unparalleled number of internationally
recognized top experts. Conference will therefore be a unique event, where attendees will be able to
appreciate the latest results in their field of expertise, and to acquire additional knowledge in other fields.
The program has been strutted to favor interactions among attendees coming from many diverse
horizons, scientifically, geographically, from academia and from industry.

We would like to thank the program chairs, organization staff, and members of the program committee
for their work. We are grateful to all those who have contributed to the success of ICRMMS-2016
especially our partners. We hope that all participants and other interested readers benefit scientifically
from the proceedings and find it stimulating in the process. Finally, we would like to wish you success in
your technical presentations and social networking.

We hope you have a unique, rewarding and enjoyable time at ICRMMS-2016 in Indonesia.

With our warmest regards,

Conference Committee
May 2829, 2016
Makassar, Indonesia.

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ICRMMS-2016
Conference Committee
Conference Chair

Ir.Andi Niartiningsih, MP, Coordinator of Private Higher Education, Region IX, Indonesia

Conference Co Chair

Dileep Kumar, M., Ph. D., University Institute for International and European Studies, Netherlands

Conference Convener

Muh. Amsal. Sahban, STIM Lasharan Jaya, Makassar, Indonesia

Members

Alexandru Trifu, PhD, University Petre Andrei, Iasi, Romania


John C. Walsh, PhD, Shinawatra International University, Bangkok, Thailand
Sisira R. N. Colombage, PhD, Monash University, Victoria, Australia
Zehra Vildan SERN, PhD, Fatih University, Istanbul, Turkey
Nek Kamal Yeop Yunus, PhD, Univerisiti Pendidikan Sultan Idris , Perak, Malaysia
Rishidaw Balkaran, PhD, Durban University of Technology, Durban, South Africa
Pratibha Samson Gaikwad, PhD, Shivaji University of Pune, India
Johan de Jager, PhD, Tshwane University of Technology, South Africa
Wei-Bin Zhang, PhD, Ritsumeikan Asia Pacific University, Japan
Chux Gervase Iwu, PhD, Cape Peninsula University of Technology, South Africa
Ayhan Kapusuzoglu, PhD, Yildirim Beyazit University, Turkey
Katalin Jackel, PhD, Budapest Business School, Budapest, Hungary
Ahasanul Haque, Ph. D., International Islamic University Malaysia (IIUM), Malaysia
Izah Mohd Tahir, PhD, University Sultan Zainal Abidin, Terengganu, Malaysia
Hamdan Said, PhD, Universiti Teknologi Malaysia, Johor Bahru Johor, Malaysia
Boubker Sbihi, Ph. D., I-shcool ESI, Rabat, Morocco
MOHD NORFIAN ALIFIAH, PhD, Universiti Teknologi Malaysia, Malaysia

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International Conference on Research Methods in


Management & Social Sciences (ICRMMS-2016)

Table of Contents
Description Pages
Preface ii
Conference Committee iii
Table of Contents iv
Proceedings V
A Relationship Study on Work Values and Organizational Commitment Malaysian
1
Telecommunication Companies, Maimunah Mohd Shah, Azreen Azura Kamalul Arifin
Learning Organization and Work Engagement: An Empirical Evidence of a Higher Learning
7
Institution in Malaysia, Norashikin Hussein, Nurain Anis Abdul Razak, Muhamad Khalil Omar
Linking Compensation to HR strategy: Overcoming Bus Driver Shortage in Malaysia, Ainie
13
Hairianie Aluwi, Dr. Idaya Husna Mohd, Dr. Azimah Daud
Role Overload, Self- Efficacy, Locus of Control and Job Performance Among Employees of a
17
Printing Company in Malaysia, Muhamad Khalil Omar, Norashikin Hussein, Norazamimah Azli
Application of Management Accounting Information Systems Textile Company in Indonesia,
26
Rima Rachmawati
Policy Implications of the Effectiveness of Philippine Hybrid Rice Program, Mary Rose S.
35
Magbujos, MAT
Organizational Cynicism, Work Related Quality of Life, Organizational Commitment and Turn-
43
over Intention in Non-academic Staff of Private Institutions, Shazia Khalid
The Influence of Social Support on Entrepreneurial Inclination among Business Students in
52
Indonesia, MuhammadAmsal Sahban, Subramaniam Sri Ramalu, Ruswiati Syahputra
The Effect Marketing Mix on Consumer Demand of Tourism Culinary in Macassar City, Hikmah,
66
Nurdin
Students Motivationin Studying English Through Supplementary Materials at the Second Year
72
of Sma 16 Makassar, Widiastuti, Guntur Suryo Putro
AktivitasPromosi is Campus Draws Near Matriculate Acceptance at STIM LasharanJaya
85
Makassar, AndiBataryCitta, Arfiany
The Effect of Market Orientation and Competitive Advantage on Business Performance
ThroughConsumers Behavior of Computer Sales in Makasassar City, Indonesia, Aprizal, Rilfan 91
KasiRantetadung, Kristison Tobeoto, Yohanis
Fans vs Music Beneficiary at Music Industry in Indonesia in Seeing Through the Aspect
104
Approach of Marketing Mix, Aditya Halim Perdana Kusuma, Andika Pramukti

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International Conference on Research Methods in Management &


Social Sciences (ICRMMS-2016)

PAPERS

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A Relationship Study on Work Values and Organizational Commitment Malaysian


Telecommunication Companies

Maimunah Mohd Shah, Azreen Azura Kamalul Arifin


Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia
maimu697@puncakalam.uitm.edu.my

Abstract: Organizations should provide employees with a positive and conducive work environment in
order to increase job performance, productivity and effectiveness which are translated into a decrease in
turnover and absenteeism. Employees are the backbones of an organization striving to achieve its
missions and goals in this competitive world. Apparently employees always appear to hunt for alternative
jobs or in other words, job hopping aiming to seek for better pay and benefits and work-life balance.
Therefore, this study aims to find the relationship between employees work values and their
commitment at the work place. The findings from this study will provide insights to the relationship thus
assists the management of the organizations to build a better rapport with their employees by
understanding their expectations and be able to design better plan in the future for the benefit of the
employees and the employers too. Stratified random sampling is used to collect the data and the
respondents are from the telecommunication companies in Malaysia. The results revealed that 72% of
the variance in organizational commitment is explained by the dimensions in the work values. Further
results and discussions are shared.

Keywords: Work values, organizational commitment, self-growth, self-esteem and social interaction

1. Introduction

The organizational commitment refers to personnel loyalty to an organization and it is a process through
which the members of an organization show their interest in the organizations success and efficiency
(Ghorbanhosseini, 2012). Full commitment from employees has great impact on the success of an
organization. They have stronger desire to have a sense of belonging to the organization and
consequently are willing to display greater organizational citizenship behavior. Highly committed
employee would identify the goals and values of the organization. The word commitment can be
explained as a power that connects an individual towards responsibility of a job. It may be fair to say that
organization commitment is easily affected by the value of ones employees hold in themselves.
Organizational commitment is a powerful feeling of responsibility, the willingness that an employee holds
toward the missions of the organization and the desire to stay in the organization itself. Work values are
work related beliefs, attitudes, preferences and interest of individuals and are conceptually different from
other job related constructs such as job satisfaction, motivations and role perceptions (Tayyab and Tariq,
2001). Work values are defined as a set of standards that determine attitudes, choices, and action of one
employee. Nowadays, people are not just looking for jobs, but they are also seeking for the workplace that
have the values and culture that suit and align with theirs.

Problem Statement: Employees are the backbones of an organization in order to achieve its missions
and goals and help the organization to success in todays competitive environment. Absenteeism and
turnover of the employees are two serious issues pertaining to organizational commitment. This is
because less committed employees are not able to see clearly and fully understand any bond between
their tasks and the organizations handsome returns and success hence can consequently cause low
productivity and performance. On the other hand a strong, committed employee can bring to valuable
consequences such as increased effectiveness, increase job performance, productivity, and can also lead
to decreased turnover and absenteeism. Therefore, it is important to an organization to know the
contributing factors that can give impact to the level of job satisfaction of their employees since it would
influence the productivity of the organization as well (Awang, Ahmad and Zin, 2010). To address the
problems of high turnover and absenteeism, it is essential to investigate the two variables in this research
study which are work values and organizational commitment and determine the effecting factors on the
commitment from the employees. Queiri, Yusoff, and Dwaikat (2015), in their study revealed that
dissatisfaction with pay and fringe benefits, seeking work-life balance, perceived status work-values fit,
normative commitment, perceived availability of alternative job and job hopping are significant to
generation-Y employees intention to quit.

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Malaysian Insider (2014) reported that 70% of employees have plans to turn and leave their jobs. Nearly
seven in ten employees are seemed to leave their jobs this year for better careers and profession. The
2013/2014, Randstad World of Work Report found that Malaysians employees were not just changing
their jobs to boost up their careers, but the choice to leave also caused by of uncompetitive salary which
constitutes to 55% of the samples, lack of recognition at the workplace (35%) and lack of trust in senior
leaders (21%). The General Industry Total Rewards Survey Findings (2013) revealed that employee
turnover rate in the general industry in Malaysia has increased from 12.3% in 2012 to 13.2% in 2013.
2015 Employee Intentions Report Malaysia reported that 25% of Malaysian employees surveyed do not
feel valued in their current role and factor this sentiment into their decision to leave their company. This
indicates that Malaysian companies should focus more on rewards and recognition programmes for their
employees. Career progression appears to be the deciding factor as well for employees seeking a new
role. 52% of Malaysian employees state a lack of career progression as their main reason for leaving their
current company.

The above reviews clearly highlight the importance of work values based on various research settings.
The employers should examine and look into their employees level of work values, which can be an
indicator of their level of organizational commitment. Employee values of work are highly related to their
productivity. In fact higher level of organizational commitment can decrease the rate of turnover. Many
organizations treat turnover as a serious problem and start taking preventive actions to maintain and
retain their high-skilled employees in the organization (Ongori, 2007). Literature records very little
research done on this matter in Malaysia thus this study aims to fill the gap by investigating this
relationship in the context of Malaysia and contributes to the literature.

Objectives of the study: There are three objectives in the study. Firstly, this study aims to determine the
level of organizational commitment among employees. Secondly to examine the relationship between the
variables and thirdly to investigate the most influential dimensions that contribute to the commitment of
employees towards the organization.

Relationship between Work Values and Organizational Commitment: There are several
investigations done on the relationship between work values and organizational commitment. Froese and
S. Xiao (2011) reported that work values of individualism and their willingness to take risk were related
to facets of job satisfaction and organizational commitment. As stated earlier, the organizational
commitment refers to employees loyalty to the organization and it is a development throughout which
the employees in the organization show their interest in organization and its success and efficiency
(Ghorbanhosseini, 2012). Many studies have highlighted that successful performance of ones
organization is grounded by the commitment. A well committed employee is described as the one who is
willing to stay with the organization regardless of any changes taken place, has a stronger desire to have a
sense of belonging to the organization, shares company goals, attends work regularly and is willing to
show greater organizational citizenship behaviour. In order to make employees stay committed and feels
satisfied with their jobs, the organization needs to give strong and effective strategic motivation at every
level in the organization itself.

Maxwell and Steele (2003) stated that, the higher the experience, the more positive the impact on the
commitment. The organization which is concerned with the employees interest believes that an
individual having good relationships with their co-workers are highly committed to the organization.
Choong and Wongs (2011) study on the Intrinsic Motivation and Organizational Commitment in The
Malaysian Private Higher Education Institutions, with a total of 247 academicians from four Malaysian
Private Universities revealed that intrinsic motivation is significantly correlated with the three
components of commitment which are affective, continuance and normative commitment. They found
that the intrinsic motivation significantly contributed to the organizational commitment. Fauziah et al.
(2011) measured the organizational commitment in survey using the 24-item scale developed by Allen
and Meyer (1991). They included affective, continuance and normative commitment while the career
stages were studied on the criteria of age, organizational tenure, and positional tenure. The results
supported the expectation that organizational commitment increases with age and recorded that
increasing age leads to significantly stronger affective commitment. The findings explained that older
Malaysian managers had a significantly higher level of affective organizational commitment than the
younger age groups. However, the finding for normative commitment is not significantly stronger among
the older Malaysian managers.

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Meyer and Allen (1997) empasized three dimensions model to conceptualize organizational commitment,
namely affective, continuance and normative commitment. Affective commitment is the ones who need
and want their job profession, stay in their organizations with high commitment to the company (Meyer
et al., 1993). According to the study done by Feinstein (2002), organizational commitment has been
described as consisting of affective and continuance (Allen and Meyer, 1990). Affective organizational
commitment is faith in and acceptance of the organizations mission and objectives, an eagerness to offer
extensive effort to the organization and a strong desire to retain the relationship with the organization.
Continuance commitment refers to an individual who is afraid of losing the current benefits, cut down
their income and not able to find another job and these are the reasons why they do not leave the
organization (Murray, Gregoire, and Downey, 1991). A strong continuance commitment employee feels
that they need to remain in the organization. Continuance commitment consists of two related sub-
dimensions which are personal sacrifice and perceived lack of alternatives (Dunham et al., 1994; Meyer et
al., 1990). The two components, personal sacrifice and perceived lack of employment are differently
increasing the costs associated with leaving the organization. In terms of normative commitment,
individual with highly normative commitment feel that they will stay with an organization because of
their belief (Meyer and Allen, 1991). Strong normative commitment employees feel that they must and
ought to stay with the organization. Besides, normative commitment can rise up when an employees feels
loyal to the organization or responsible to work for the payback that they obtain from the organization as
a result of the desire to compensate the favours received from the institution (Meyer et al., 1993).
Additionally, Meyer et al. (1993) stated that employees tend to raise their commitment to their current
organizations because skills and education are not simply transferred and applied to other organization.

2. Methodology

The population of the study are non-managerial employees from Altel Communications Sdn. Bhd., Digi
Telecommunication Sdn Bhd and red ONE Network Sdn. Bhd. These employees received orders from
their superiors, perform job activities, do not have any subordinates and have no oversight responsibility
of others. The total number of population is 340, the appropriate sample size of the study is 181
respondents. A set of questionnaire is used to collect data from the respondents. The items in the
questionnaire are adopted from past research in the same field. A questionnaire comprises of three (3)
sections which include respondents demographic information. Secondly, the work values incorporated
include self-growth, self-esteem, social interaction, security and economic consideration, stability and
freedom from anxiety. Thirdly, the measurement of work values and organizational commitment used is
the five-point Likert Scale ranging from 5= Strongly Agree, 4= Agree, 3= Neutral 2= Disagree 1= Strongly
Disagree.

3. Results and Discussion

Demographic profile of the respondents include gender, race, marital status, age, educational level,
number of children, salary and length of service. The Work Values Inventory (WVI) used is adapted from
Wu et al., (1996) and is designed to measure the work values of the participants. There are 26 statements
in this section. The organizational commitment questionnaire (OCQ) is adapted from Mowday et al.,
(1979) which is designed to measure participants commitment towards their employer and organization.
A pilot test was conducted in order to evaluate the clarity in the questionnaire. It is also to determine the
appropriateness of the statement in each question. According to Salkind (2014), a minimum of 30
respondents from the population for a pilot test is appropriate. Hence, this study has conducted a pilot
test among forty (40) non-managerial staff at Fibrecomm Network Sdn. Bhd., Kuala Lumpur. The
Cronbachs Alpha scores for all variables are above 0.7 and therefore, they are acceptable (Nunnaly,
1978). In this study, two hundred (200) sets of questionnaires were distributed and one hundred ninety
three (193) cases were returned. Five (5) questionnaires were excluded in the analysis due to incomplete
response. The overall result shows that, the mean for Social Interaction (mean= 4.014, SD=.50) are the
highest mean level of organizational commitment in the telecommunication companies. The respondents
are moderately satisfied with self-growth (mean = 3.89, SD = .68), security and economic consideration
(mean = 3.92, SD = .61), stability and freedom from anxiety (mean = 3.96, SD = .60), and self-esteem
(mean = 3.97, SD = .57). The findings of this study is in line with Heffner and Rentsch (2001) where they
argued that organizational social interactions were found to have the highest influence on organizational
commitment. Ilies, Johnson, Judge and Keeney (2011) found that depressing and negative consequences
of stressful work situations can be protected by the level of social interaction support that employees
receive in their organization. The respondents from the surveys seemed to agree strongly that employers

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who demonstrate the understanding towards employees, have good personal relationship with staff,
work honestly and sincerely with co-workers can increase employees organizational commitment. Apart
from that, feeling happy and always taking care of each other in the workplace can also lead to a better
level of organizational commitment. Several descriptions based on the dimension of work values are
discussed here.

1. Self-Growth: It shows that self-growth is associated with organizational commitment. Therefore, the
employer should be concerned with employees self-learning by offering opportunities to learn while
working, trying new working method, and allowing staff to devote oneself to a prospective task and allow
them to fully create their own work career. According to Carlsen (2006), the model of best self-
development implies that individuals interpret who they are becoming at work and make intentional
changes to grow themselves in their wanted direction in the workplace.

2. Self-esteem: The result of the analysis on self-esteem has a significant relationship with organizational
commitment. It is important for the employees to feel efficacy and competence derived from their
personal experiences. Employers should convey trust, personal achievement, self-recognition and respect
to all employees. These would make the employees feel more appreciated, high in self- confidence and
tend to reduce the ambiguity to the rightness of their views, feelings and action of conduct while working.
According to Bankole & Ajagun, (2014) employees who have high organizational based self-esteem tend
to be more committed to the organization than those with low organizational based self-esteem.

3. Social Interaction: This study reveals that social interaction is the dimension with the highest level of
commitment. It is proven that the social integration is important in having a positive and healthy
relationship among the colleagues and superiors. In a previous study by Haslam (2001), it is reported that
the social identity approach has enriched the understanding between other productivity and
performance, leadership, group decision making, conflicts and negotiation. As a consequence, this factor
can lead to an increase in the organizational commitment among the employees.

4. Security and Economic Consideration: Security and economic consideration has no significant
influence on organizational commitment, but there is still a relationship between both variables. This
factor indicates ones effort to reach reasonable economic remunerations and to satisfy his/her sense of
security during the course of work (Wu et al., 1996). In order to gain commitment, employees need to feel
that they are secured in term of their work, in the workplace and financially. Fairness and sufficiency of
payment systems are essential determinants of the work values and organisational commitment.
Individuals cannot experience psychological well-being without adequately compensated (Boxall et al.,
2007).

5. Stability and Freedom from Anxiety: Stability and freedom from anxiety has a relationship with
organizational commitment and based on the finding, this factor is the most influential factor on
organizational commitment. This factor is represented by the question of who firmly performs his or her
job without tension, anxiety, chaos or fear. Therefore, employers ought to provide working hours that
correlate with ones living schedule, job security and avoid dealing with job affairs after work. Poor life
space balance between work and personal life will create mounting stress. Lockwood (2003) claimed that
total life space is a serious and growing concern for employers, and as a solution, employers need to find a
way to help workers to have a life and a job which will obtain real rewards in terms of employee
recruitment, retention, morale and productivity. The data of this study are considered not normal. Hence,
the Spearmans rank correlation which is a non-parametric test is used instead of the Pearsons
correlation coefficient. The purpose of Spearmans Rho analysis is to measure the relationship between
two variables. Coefficient or correlation refers to the strength of the relationship between two sets of
interval scale and ratio scale interval variables. To determine the significance between two variables, the
P value should be below 0.005 (p<0.05). Multiple regression analysis was conducted between all the
dimensions in the work values and organizational commitment. In the field of Multiple Regression, to gain
the significance level, the p values should be less than 0.05. The result indicates 72.0% (R=.720) of the
variance in organizational commitment and is explained by the dimensions in the work values. The result
illustrates that the stability and freedom from anxiety dimension has the highest influence on
organizational commitment (= -.614, P= <.05) followed by self-growth dimension with r-values ( =
.581, p= <.05), self-esteem dimension (=.470, p= <.05) and social interaction (=.356, P= <.05). These
four dimensions recorded significant influence on organizational commitment, as the p values are less
than 0.05. Meanwhile, security and economic consideration (=.131, P= >.05) indicate a small beta value

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and shows no significant influence towards organizational commitment. The highest influencial
dimension, stability and freedom from anxiety is in line with previous studies like Ch, Kundi, Qureshi and
Akhtar (2014) where work-life balance, stability of working hours, job affairs after work have significant
influence on organizational commitment. Malone and Issa (2012) also found that job-fit to their
individual skills, flexibility and balance between work and personal time have the highest mean in
affecting organizational commitment. The result of security and economic consideration indicates no
significant influence towards organizational commitment. This finding contradicts the study by Nawab
and Bhatti (2011) and Ho et al. (2012) where both studies recorded significant influence of economic
consideration on organizational commitment.

4. Conclusion

The results from this study can assist an organization to identify the relationship between work values
and organizational commitment. The results recommend strong emphasis be put on the benefits of having
a positive work environment. The relationship between work values and organizational commitment
bounce a role in increasing and enhancing the performance as well as in work quality. The results would
guide employers to identify which areas that need to be improved further and recognize any
opportunities to build a positive work environment. This would be helpful for the organization to view
employees commitment towards the organization. From this research, the employer would be able to
realize the level of work values and organizational commitment among the employees. Furthermore, by
investigating this relationship, this study would be able to carry out an accurate implementation to
identify the exact work values. It will also help these employers to appropriately compensate resources in
order to motivate the employees to improve their productivity. The current result raises the
understanding of work values and their relationships with organizational commitment among the non-
managerial staff in telecommunication companies in Malaysia. Furthermore, this study reveals that work
values have a significant relationship with organizational commitment. The findings of the current study
have repercussions for organizations to enhance the organizational commitment of their employees. Top
management can improve the commitment of their employees towards their organization by
understanding in depth the work values among the employees. It is predictable that by increasing these
factors will decrease the high turnover rate and absenteeism among the employees. Thus the
organization could enhance their productivity, profitability and effectiveness.

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Learning Organization and Work Engagement: An Empirical Evidence of a Higher


Learning Institution in Malaysia

Norashikin Hussein, Nurain Anis Abdul Razak, Muhamad Khalil Omar


Universiti Teknologi MARA, Bandar Puncak Alam, Selangor, Malaysia
shikin6320@salam.uitm.edu.my

Abstract: Rapidly changing business environment requires organization to gain competitive advantage in
order to survive. As human is known to be the most valuable assets to an organization, having employees
that are actively engaged in their work can positively leads to higher performance and subsequently
contribute to the success of the organization. One of the factors that would lead to work engagement
among employees is through the learning organization concept which provides continuous learning and
improvement, directly linked to an employee daily work and development. Despite its importance,
seldom has it been reported in the literature that this paradigm has been examined. Therefore, this study
attempts to determine: (i) the level of work engagement among employees; and (ii) the relationship
between learning organization dimension and work engagement. Data collected from 150 employees of
an institution of higher education revealed that work engagement among employees is at high level and
only four learning organization dimensions namely, empowerment, embedded system, environmental
connection and strategic leadership have positive and significant relationship with work engagement. The
implications and consequences of the study findings for higher learning institutions are discussed.

Keywords: Learning organization, work engagement, higher learning institutions

1. Introduction

In todays fast changing environment, becoming a high performing organization has become a top priority
in every organization. As employees offer organizations a competitive advantage through its unique
contribution, having employees that perceived work as meaningful and subsequently engage to their
work is crucial. This is because, when the organization has employees that are positive, enthusiasm and
inspired with their work, it will be directly give a positive impact to the organization performance
(Anitha, 2014). Work engagement is referred to as a positive, fulfilling, work related state of mind that is
characterized by vigour, dedication and absorption (p. 295) (Schaufeli & Bakker, 2004). In other words,
employees who are engaged perceived their work positively and this will lead to improved outcomes not
only for themselves but also to the organization as a whole. The importance of work engagement has been
highlighted in the literature. Work engagement is often been associated with individuals work quality
based on their well-performed job which subsequently leads to greater organizational productivity and
growth (Saks, 2006). Work engagement provides positive impact on job satisfaction, organizational
commitment, intention to quit and burnout level (Anitha, 2014). With high quality and efficient
employees, it will directly give impact to the organizations performance. On contrary if the employees do
not engage with their work, the employees might tend to quit their job, take frequent leaves, mistakes on
the work given and attitude problem in workplace.

As the element of learning is important in ensuring the employees are engaged with their work, having a
learning organization culture would serve as a platform in creating continuous learning that can be
directly help in enhancing the organization's performance (Weldy & Gillis, 2010). Indeed, when the
employees perceived that the organization give them support (with continuous learning culture) they
tend to show more positive attitude, good behaviour and offer higher quality of work towards the
organization (Islam, Kassim, Ali, & Sadiq, 2014). Despite the logical connection between learning
organization culture and engaged employees, only few studies have examined this connection, especially
in the context of Malaysia. If employees work engagement is to be developed through a culture of
learning within the organization, a framework that aligned these variables is necessary. Therefore, this
study attempts to determine: (i) the level of work engagement among employees; and (ii) the relationship
between learning organization dimension and work engagement.

2. Literature Review

Work Engagement: Work engagement can be defined as a positive, work-related that characterized by
the dimensions of vigour, dedication and absorption (Balducci et al., 2010). Vigour can be described as a

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high level of the energy and the mental resilience while the employee doing a work, feeling of willingness
to put their effort on work, and their persistence cognition and emotion. Meanwhile, dedication is
referred as the characters of enthusiasm, inspiration and feel of pride with their work or strong
involvement with their work, and absorption is the level of the employees happiness with their work
(Balducci et al., 2010). Work engagement has positive consequences for both employees and
organization. It is proven that the organization also needs work engagement among their employees.
When the employees are engaged with their work, they tend to experience positive emotions such has
enthusiasm, joys, happiness, better health and often transfer their engagement to others (Banihani, Lewis,
& Syed, 2013). Indeed, the positive emotional connection between the employees with their work place
shows by on how the positive the attitude of that employee during in the work place. Specifically, work
engagement can be seen when the employees express it through the physically, emotionally and cognitive
during performing their work (Anitha, 2014). Numerous studies provided empirical evidence on the
relationship between work engagement and positive work-related outcomes. For example, work
engagement has been found to be positively related to job satisfaction and organizational citizenship
behaviours (Saks, 2006); customer loyalty and employee performance (Salanova, Agut & Peiro, 2005);
intention to quit and burnout level (Anitha, 2014).

Learning Organizations: The idea of the learning organization has received many interests from both
practitioners and scholars. Indeed, learning is not the only transformation of the organization but it is a
continuous transformation and transformation of mind (Watkins & Golembiewski, 2007). Defined as an
organization that adapts continuous learning and transforms itself for improvement, the culture
encourages innovations and the employees growth with organization (Watkins & Golembiewski, 2007).
According to Watkins and Marsick (1993, 1996), there are three level of organization learning which is
the individual level, team or group level and organization level. The seven dimension of the learning
organization are divided these three levels. The dimension of continuous learning; and Inquiry and
dialogue are identified under individual level. Meanwhile, the team learning represents the team or group
level. At the organizational level, it is consisted of four dimensions of learning organization which is
empowerment, environmental connection, embedded system and strategic leadership (Yang, Watkins, &
Marsick, 2004). The definition of each learning organization dimension used in the study is at Table 1.1.

Table 2.1: Learning Organization Dimensions


Dimensions Level of Definition
Learning
Continuous Individual Learning is designed into each employee work in order to give
Learning them opportunity to learn on the job, and to continue education
and keep growth
Inquiry and Individual People are gained productive skills in order to express their
Dialogue own views and their capacity to listen to other views. This
culture is to support questioning, feedback and
experimentation.
Team Learning Team Defined as the work designed to groups to access the different
modes of thinking, ideas, and expected to learn and work
together.
Embedded System Organization Both the high and low technology system is use to share
learning and integrated with work to provide an access to all.
Empowerment Organization Defined when the organizations get the people to be involved in
setting, owning and joint vision. This is decision making that
makes together will motivated people to learn toward what
they are responsible to do.
Strategic Leadership Organization Defined as the leaders model, champion and to support
learning to use the learning strategically as the business results.
Environmental Organization The environment is to help the people to see the effect of their
Connection work and use the environment as information to adjust the
work practices and make the organization linked to the
communities.
Source : Marsick & Watkins (2003).

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Emerging research supports the significance of learning organization dimensions and the impact it has on
work engagement. As highlighted by Park, Song, Song, & Kim (2014), work engagement helps employees
to create new ideas and give them initiatives to implement ideas with the support from the learning
organization culture. Specifically, employees who perceived that they have high learning organization
culture tend to have more proactive behaviours and discretionary efforts. Thus, it is important to get the
organizations support for employees work engagement. This can be done through continuous learning,
knowledge sharing, empowerment and social interactions among all employees (Park, Song, Song, & Kim,
2014). At the individual level, when employees are exposed to continuous learning, they will be more
confident and this will motivate them to be more engaged in their work (Anitha, 2014). As dialogue is the
medium where people use to share meaning and their understanding, it provides a platform to listen and
give feedback on the perspective that is different from their own, and later use what they have learned to
change. This shows that the mutual trust and understanding that built through inquiry and dialogue can
lead to employees involvement and get engaged (Raelin, 2012).
H1: There is positive relationship between learning organization dimensions (individual level) and work
engagement.

Team Learning is another aspect that can enhance the level of work engagement. When the teams are
supportive and trust each other it will promote work engagement among employees. Team learning
allows each team member to learn together and try new things. Team learning involves positive
interaction among each other. Thus with the positive and good relationship in team learning, their work
engagement is expected to be high (Anitha, 2014). Thus:
H2: There is positive relationship between learning organization dimensions (team level) and work
engagement.

At the organizational level of learning organization dimensions, work engagement can be achieved
through embedded system, empowerment, environmental connection, and strategic leadership.
Embedded system or shared learning is where the technology plays importance roles in making the
learning organization more effective and efficient. It is the one of the advantage of capturing,
disseminating and sharing knowledge throughout the organization. It is necessary for organization to
have this system for employees development. With the shared learning system for employees, they will
be more actively engaged (Naujokaitiene, Teresevience, & Zydziunaite, 2015). Previous researches
indicate that there is a link between leadership attributes and work engagement. This is important
because leaders play an important role in encouraging or discouraging the work engagement (Zhang,
Avery, Bergsteiner, & More, 2014). Leaders in the organization help employees in the clarity of goals and
give them a direction on how to achieve their goals, which will directly impact on their performance.
Since work engagement is something that is a long term initiative, the continuous process should be
conducted in order to ensure the employees are keep engaged. As such, the strategic leadership should
develop a long term initiative step which can help improve the engagement level of the employees and
the enhancement of organizational performance (Venkatesh, 2015). Additionally, the concept of
empowerment can lead to the engagement to employees work through effort, persistence and initiative
(Macey & Schneider, 2008). Environmental connection with the employees can be one of the significant
factors that contribute to the employees level of engagement. This is when the environmental of work are
harmony connecting, the employees will be more focused with their work and lead to the high level of
employee engagement. This is when the employees receive a feedback and support from the work
environment which can help them to be more engaged (Anitha, 2014).
H3: There is positive relationship between learning organization dimensions (organizational level) and work
engagement.

3. Methodology

The study utilized a correlational study research design. Data were collected using personally
administered questionnaires from employees (academics and non-academics) of a semi-government
institution of higher learning. Using census method, where it involves whole entire of the population in
the research. The instruments used in this study were adopted from established sources using 5-point
Likert scales ranged from 1 to 5 (1= Strongly Disagree to 5 = Strongly Agree). Specifically, 21 items of
Dimensions of Learning Organization Questionnaires (DLOQ) from Yang et. al. (2004) were adopted to
measure learning organization dimensions. Specifically, six items were used for the individual level
(continuous learning (3 items), inquiry and dialogue (3 items), three items for team level (team learning)
and 12 items at the organizational level namely empowerment (3 items), environmental connection (3

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items), embedded system (3 items) and strategic leadership (3 items). To measure work engagement, 9
items of Utrecht Work Engagement Scale (UWES-9) from Balducci et. al. (2010) was used. Data were
analyzed using Statistical Package for the Social Sciences Software (SPSS) version 20.0

4.Findings

Data were collected from 150 employees, yielding a response rate of 62.5 percent. Most of the
respondents were female (57.3 %) and they were in the range of 31 to 40 years old. Most respondents
involved in the study were the administrators (65%) and almost half of the respondents have tenure of 1
to 4 years working in the organization. Based on the reliability test conducted, all adopted measurements
were found to be reliable as the Cronbachs alpha values were found to range between .66 to .88. Based
on the results, it was found that all variables have mean values ranged from 3.86 to 3.98, with work
engagement has the highest mean value of 3.98. The ranged of standard deviation among variables is
reported from .46 to .51. Table 4.1 also indicates the inter-correlation values among variables. It was
found tha all independent and dependent variables used in the study were significantly inter-correlated
(Table 4.1).

Table 4.1: Means, Standard Deviation and Inter-correlation among variables


Learning Mean Standard Individual Team Organizational Work
Organization Deviation Level Level Level Engagement
Dimensions
Individual Level 3.90 .46 1.00
Team Level .64** 1.00
3.86 .50
Organizational Level 3.87 .51 .62** .54** 1.00
Work Engagement 3.98 .49 .38** .37** .46** 1.00

From the regression analysis result (Table 4.2), only organizational level of learning ( = .38, p < .01)
were found to be significantly related to work engagement. Thus, H3 is supported. No support was
received for the relationship between individual and team level of learning organization, with work
engagement, which resulted to the rejection of H1 and H2. The research model as a whole explains 23
percent of variance on work engagement.

Table 4.2: Regression Analysis


Dependent variable
Work Engagement
Independent variables
Learning Organization Dimensions
Individual level .01
Team level .15
Organizational Level .38**

F value 14.63**
R2 .231
Adjusted R2 .215

5. Discussion and Conclusion

The two main objectives of the study is to: (1) determine the level of work engagement among employees;
(2) to determine the relationship between learning organization dimensions (individual, team and
organization) and work engagement. The result indicated earlier reported that the level of work
engagement among employees is at a high level. Even though most of the employees have tenure of less
than five years working in the organization, work is perceived as positive and hence have high energy and
committed in doing their work. Based on the analysis conducted, it was also reported that only
organizational level of learning was found to have positive significant relationship with work
engagement. In another words, the respondents perceived that organization needs to have
empowerment, environmental connection, embedded system, and strategic leadership in order to create

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work engagement among employees. This also indicates that the culture learning organization need to be
strongly established at the organizational level first, for the work engagement to be inculcated among
employees. This is because learning at the organizational level is strongly linked to the culture of the
organization through values, beliefs and practices embedded in the organization. The culture of the
organization will directly shape an employee and subsequently influence the outcome of their
performance. Therefore, it is true that learning organization involves more than the transformation of the
organization but it is a continuous transformation of mind at the organizational level (Watkins &
Golembiewski, 2007). Additionally, work engagement among employees will not be materialized if
learning is initiated at the individual and team level without having the support at the organizational
level. The findings is in line with previous studies conducted on learning organization and work
engagement e.g., Naujokaitiene et. al. (2015); Macey & Schneider (2008); Anitha (2014); Zhang et. al.
(2014).

6. Implications, Limitations and Conclusion

The significance of the study is definitely to the body of knowledge as it adds to the existing literature on
learning organization and work engagement. This study particularly, looks at three different level of
learning happening in the organization and explores which has the most influence on work engagement.
The study also provides practical implication to the education sector particularly higher learning
institutions especially on emphasizing the empowerment practices among employees, having a good
system in managing learning and connecting the outcomes of learning and performance on communities
in order to make employees engage in the work. Perhaps, the utmost important to encourage work
engagement is the strategic leadership of the organization as they are the key people that drive and
charted the direction of the organization the one that makes an organization a learning organization.
For future research, firstly, it is suggested that the study to involve various public and private universities
in Malaysia, as this study is limited to one particular institution of higher learning only. Secondly, as
suggested in the literature, studies that is organization based (i.e., learning organization) should utilize
longitudinal study design as perceptions on it may be captured more effectively across time. Lastly, if
possible, moderating and mediating variables should be included in future to enable the researcher to
better understand the dynamic framework between learning organization and work engagement.

References

Anitha, J. (2014). Determinants of employee engagement and their impact on employee performance.
International Journal of Productivity and Performance Management, 63(3), 308-323.
Balducci, C., Fraccaroli, F., & Schaufeli, W. B. (2010). Psychometric Properties of the Italian Version of the
Utrecht Work Engagement Scale (UWES-9). European Journal of Psychological Assessment,
26(2), 143-149.
Banihani, M., Lewis, P., & Syed, J. (2013). Is work engagement gendered? Gender in Management: An
International Journal, 28(7), 400-423.
Islam, T., Kassim, N. A., Ali, G., & Sadiq, M. (2014). Organizational learning culture and customer
satisfaction :The mediating role of normative commitment. The learning organization, 21(6),
392-404.
Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and Organization
Psychology, 3-30.
Marsick, V. J., & Watkins, K. E. (1994). The learning organization: An integrative vision for HRD. Human
Resource Development Quarterly, 5, 353-360.
Marsick, V. J., & Watkins, K. E. (2003). Demonstrating the Value of an Organization's Learning Culture: The
Dimension of the Learning Organiztaion Questionnaire. Advances in Developing Human
Resources, 5(2), 132-151.
Marsick, V. J., & Watkins, K. E. (2003). Demonstrating the value of an organization's learning culture: The
dimensions of the learning organization questionnaire. Advances in Developing Human
Resources, 5, 132-151.
Marsick, V., & Watkins, K. (1996). (Eds.). (1996). Creating the learning organization. Alexandria, VA:
American Society for Training and Development.
Naujokaitiene, J., Teresevience, M., & Zydziunaite, V. (2015). Organizational Support for Employee
Engagement in Technology-Enhanced Learning. 1-9.

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Park, Y. K., Song, J. H., Song, S. W., & Kim, J. (2014). Learning Organization and innovative behavior: The
mediating effect of work engagement. European Journal of Training and Development, 38 (1/2),
75-94.
Raelin, J. A. (2012). Dialogue and deliberation as expressions of democratic leadership in participatory
organization change. Journal of Organizational Change Management, 25(1), 7-23.
Salanova, M., Agut, S. & Peiro, J.M. (2005). Linking organizational resources and work engagement to
employee performance and customer loyalty: The mediation of service climate. Journal of
Applied Psychology, 90(6), 1217-1227.
Saks, A., M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial
Psychology, 21(7), 600-619.
Schaufeli, W. B., Salanova, M., Gonzales-Roma, V., & Bakker, A. B. (2002). The measurement of engagement
and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness Studies,
71-92.
Venkatesh, N. A. (2015). Employee engagement through leadership. 333-336.
Watkins, K. E., & Golembiewski, R. T. (2007). Rethinking Organization Development for the Learning
Organization. The International Journal of Organizational Analysis, 3, 86-101.
Weldy, T. G., & Gillis, W. E. (2010). The learning organization: variations at different organizational levels.
The Learning Organization, 17(5), 455-470.
Yang, B., Watkins, K. E., & Marsick, V. J. (2004). The construct of the Learning Organization: Dimensions,
Measurement and Validation. Human Resources Development Quaterly, 15(1), 31-55.
Zhang, T., Avery, G. C., Bergsteiner, H., & More, E. (2014). Do follower characteristic moderate leadership
and empployee engagement? Journal of Global Responsibility, 5(2), 269-288.

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Linking Compensation to HR strategy: Overcoming Bus Driver Shortage in Malaysia

Ainie Hairianie Aluwi, Idaya Husna Mohd, Azimah Daud


Universiti Teknologi MARA, Malaysia
ainie402@salam.uitm.edu.my

Abstract: This conceptual paper will present ways and means to help overcome labor shortage of urban
bus services in Malaysia. This paper examines the job structure and compensation strategy of bus service
providers to help bus service provider to re-strategize their plan, recruit and sustain urban bus drivers in
cities like Kuala Lumpur, Kuching and Penang. The objective of this paper is to examine (1) the
relationship between job structure and urban bus driver shortage; and (2) the relationship between
compensation and urban bus driver shortage. The outcome of this paper is to map out the strategy to
overcome urban bus driver shortage through proposing a new job structure for urban bus driver which
complements future compensation plan that will be proposed. The study will gather data from two
samples: Bus service providers and urban bus drivers. For bus service providers sample, the study
proposes a mixed-method approach that combines quantitative and qualitative techniques in a
convergent parallel design. This study will gather data from urban bus drivers using a self-administered
survey.Finally, this paper will propose a framework that will map out the possible relationship between
job structure, compensation and bus driver shortage.

Keyword: Labor Shortage, Job Structure, Compensation, Urban Bus Drivers, Urban Bus Services

1. Introduction

As the economic crisis seem to worsen worldwide, the demand for cheap mass transit in urban areas have
increased. The working class relies heavily on Public transportation as the best way to continue to be
productive and efficient at work. However, the main issue with public transportation, specifically in
Malaysia, is the quality of the service. In recent years, the real problem that surface in urban transit
services in Malaysia specifically is nested in the bus services. There are many uses for bus services in
Malaysia. Among them is the use of buses as the feeder or bridging service for commuter to use from one
medium of mass transit to get to their place of destination. Commuters demand bus services that are on
time. Service providers are unable to promise a quality service due to the problem of bus drivers
shortage. The shortage is a result of high cost of living which forces buses to prefer taking up express bus
driver position. Express bus drivers experience less stress, traffic congestions, shorter working hours, less
complains from passengers and less stressful. Urban bus drivers leave their job due to job structures that
are not employee friendly. The purpose of this conceptual paper is to help overcome labor shortage in the
urban bus services. Looking at the job structure and compensation strategy would help bus service
provider to re-strategize their plan to recruit and sustain urban bus drivers in cities like Kuala Lumpur,
Kuching and Penang. The objective of this paper is to examine (1) the relationship between job structure
and urban bus driver shortage; and (2) the relationship between compensation and urban bus driver
shortage. The outcome of this paper is to map out the strategy to overcome the urban bus driver shortage
through proposing a new job structure for urban bus driver which complements the new compensation
plan that will be proposed.

Labor Shortage: Bus driver shortage is a worldwide phenomenon. In Australia the shortage among bus
driver per demand have been a problem for three years running since 2010 till 2013 (Jossec and
Shanahan, 2015). In United States of America, there is a real issue of school bus driver shortage that is
leading to decrease in revenues for bus operators due to higher cost incurred to hire bus drivers
(Rttnews.com, 2016; Deseret News, 2016). Similar to the situation with Malaysian urban bus drivers,
reports shows that although bus driver operator have been paid compensation more than the minimum
wage with benefits, there is still shortage (The Malay Mail Online, 2013; The Malay Mail Online, 2015).
This leads the researchers to look at the reason behind these circumstances. Although there are studies
conducted on the wellbeing of bus driver, this study examines bus driver shortage from the perspective of
an organization and its implication towards the society in general. Therefore, based on literature on bus
drivers (Tse, Flin and Mearns, 2006), this study will discuss the relationship between bus driver shortage
and job structure.

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Job Structure: Bus driver face a very challenging and demanding job structure. Many researches (Wang
and Lim, 2001; Wood, 2001; Nasri and Moazenzadeh, 2010) on bus drivers have looked at the aspect of
stress contribution towards their physical health. However, not many had been done regarding the job
structure and urban bus driver shortage from the view of the organization. According to Tse, Flin and
Mearns (2006) one of the key aspect of bus driver job structure is their physical environment which
consist of cabin egronomics, violence and traffic congestions. This is followed by another key factor which
is the job design which consist of time pressure, shift pattern, rest breaks, and lack of decision making
authority. All these factor may lead to other organizational issues such as absenteeism, labor turnover,
and accidents which contribute to labor shortage. Thus, this paper intend to look at job structures
influence on urban bus driver shortage in Malaysia specifically.

Compensation: Pay plays a crucial part in the human resource system where it compensates employees
for the effort, time and skills contributed to the job and organization. Without a proper pay and
compensation plan, employees tend to switch job in order to cater their high cost of living especially in
the city. For example in the case of Malaysia, the bus drivers shortage problem is mainly contributed by
the pay and compensation issue. According to Johnson et al (2005), there are two methods of paying bus
driver (i) Per-passenger pay and (ii) fixed pay. In contrast, Malaysia only caters fixed pay. Estache (2005)
contended that although providing bus driver with fixed pay could help in terms of cost of living,
however, the pay competition among bus providers could lead to a different thing. It is reported that in
Malaysia, bus service provider are having problems in convincing and retaining their bus driver, even
though the take home pay is higher than the stipulated minimum wage of RM900 along with overtime
pay, accommodations and other benefits. One of the reasons given is the high cost of living in the main
city in Malaysia (The Malay Mail Online, 2013). Although there are many research conducted on bus
drivers compensation and well-being (Mohring, 1972; Restrepo, 2013; Ordanza-De Saintis, 2011; Sims,
2014 and Depee, 2009), most were conducted on school bus driver. Measures were taken based on the
research findings however, none of the approach were adopted in Malaysia. Thus, it is crucial to
proposed on exploring the relationship of compensation and bus drivers shortage and find ways and
method to improve the situation according to the Malaysian current economic situation. The following
framework supports the need to conduct research on bus driver shortage:

Figure 1: Theoretical Framework

Bus Service Urban Bus Driver


Provider Shortage

Job Structure
Compensation

2. Methodology

The study will gather data from two samples: Bus service provider and urban bus driver. For bus service
providers sample, a mixed-method approach was adopted combining quantitative and qualitative
techniques in a convergent parallel design. In keeping with Creswells description of convergent parallel
design (as shown in Figure below), concurrent timing will be used to apply quantitative and qualitative
strands in the same phase of the research process, with greater weight given to the qualitative results
over the quantitative results.

Expected Findings: Over the last few decades, various studies elsewhere have hypothesized that the
heightening of other work stressors such as traffic, and violence from passengers have compounded the
situation for bus drivers. Although various researches on bus drivers attitudes, well-being and work-life
balance have been done extensively, much of the research is done in the west. Malaysia is indeed lacking
of sufficient research and in-depth study with no strong empirical base especially research on labour
/urban bus drivers shortage in the transportation industry. In examining (1) the relationship between job
structure and urban bus driver shortage; and (2) the relationship between compensation and urban bus
driver shortage, the outcome of this paper is expected to map out the strategy to overcome the urban bus
driver shortage by proposing a new job structure for urban bus driver which complements the new

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compensation plan that will be proposed. Along the way, work-life balance and well-being of the bus
drivers will also be highlighted.

Figure 2: An example of convergent parallel design


Qualitative Data
collection &
analysis

Compare or Interpretation
relate
Quantitative Data
collection &
analysis

Source: Creswell and Plano Clark (2011)

For ethical reasons, participants will be asked to read and sign a consent form stating that they willingly
participated in the study and that any answers provided will be used as data and compiled into a report.
The participants will also be informed that participation in the survey is completely confidential and
voluntary and they are free to leave at any time.

References

Depee, S. B. (2009). Personality traits of bus drivers conducive to maintaining good student behavior.
Lindenwood University.
Johnson, R. M., Reiley, D. H., & Muoz, J. C. (2005). " The War for the Fare": How Driver Compensation
Affects Bus System Performance (No. w11744). National Bureau of Economic Research.
Jossec, G., & Shanahan, O. (2015, September). Training the Logisticians of the Future: skill implications of
technological changes in the Transport and Logistics industry. In Australasian Transport
Research Forum (ATRF), 37th, 2015, Sydney, New South Wales, Australia.
Lim, Ida. (2013, August 29). Pemandu : KLs bus driver shortage due to high cost of living. The Malaymail
Online,http://www.themalaymailonline.com/malaysia/article/pemandu-kls-bus-driver-
shortage-due-to-high-cost-of-living.
Mohring, H. (1972). Optimization and scale economies in urban bus transportation. The American
Economic Review, 62(4), 591-604.
Nasri, H., & Moazenzadeh, M. (2010). Coronary artery disease risk factors in drivers versus people in
other occupations. ARYA Atheroscler, 2(2).
Ordanza-DeSantis, E. B. (2011). Leadership impact on job satisfaction and work performance among
injured bus drivers: A phenomenological study(Doctoral dissertation, UNIVERSITY OF
PHOENIX).
Restrepo, M. (2013). The Relationship between Job Structure, Burnout, and Coping Methods among Public
School county Bus Drivers, Bus Aides, Mechanics, and Clerical Workers.
RTT Staff Writer. (2016) FirstGroup Q3 group revenues down, see FY operating profit slightly down.
Rttnews.com, http://www.nasdaq.com/article/firstgroup-q3-group-revenues-down-sees-fy-
operating-profit-slightly-down-20160128-00050
Sims, B. K. (2014). Driving and Thriving: School Bus Drivers and the Behavior Management Strategies
They Use.
Sipalan, Joseph. (2015, April 28). Report: Driver shortage, bad system to blame for bus woes in Klang
Valley. The Malaymail Online, http://www.themalaymailonline.com/malaysia/article/report-
driver-shortage-bad-system-to-blame-for-bus-woes-in-klang-valley
Tse, L.M.J., Flin, R., & Mearns, K. (2006). Bus driver well-being review: 50 years of
research. Transportation Research Part F: Traffic Psychology and Behaviour, 9(2), 89-114.
Vowell, Nicole. (2016, February 19). School bus driver shortage a problem for most Utah districts. Deseret
news, http://www.deseretnews.com/article/865648090/School-bus-driver-shortage-a-
problem-for-most-Utah-districts.html?pg=all

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(ICRMMS-2016)

Wang, P. D., & Lin, R. S. (2001). Coronary heart disease risk factors in urban bus drivers. Public
Health, 115(4), 261-264.
Wood, D. (2001). Established and emerging cardiovascular risk factors.American heart journal, 141(2),
S49-S57.

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(ICRMMS-2016)

Role Overload, Self- Efficacy, Locus of Control and Job Performance among Employees of a
Printing Company in Malaysia

Muhamad Khalil Omar, Norashikin Hussein, Norazamimah Azli


UniversitiTeknologi MARA, PuncakAlam, Malaysia
khalil.omar@salam.uitm.edu.my

Abstract: Job performance becomes the most commonly discussed issue in the recent years even though
many researches have been conducted. As employee is the most important asset for an organization,
various factors influencing the employee performance need to be ascertained. For companies that offer
services to customers, their employees job performance could impacted the loyalty of the customers and
longevity of the business. However, constant dealing with high and various consumer demands,
employees of printing company could easily be stressful hence requiring them to control their emotions.
Therefore this study investigated the effects of role overload, self-efficacy, and locus of control towards
employee job performance. A total of 67 employeesof a small printing company located in Klang Valley,
Malaysia had participated for the survey of this descriptive and correlational study. The results indicated
that there was a strong positive relationship between self-efficacy and job performance, meanwhile locus
of control hada moderate positive relationship with job performance. This study contributes to the body
of knowledge by validating the positive association of both self-efficacy and locus of control with
employee job performance. The practitioners could also make reference of this study in order to properly
manage the performance of their employees.

Keywords: Role Overload, Self-Efficacy, Locus of control, Job Performance, Printing

1. Introduction

Job performance is vital to every organization to ensure the effectiveness and productivity of both
employer and employees. Therefore, it is very crucial for every organization to identify factors to improve
the level of performance of employees in their daily job. According to Smith and Goddard (2002), they
defined high job performance as being dependent upon the scrutinization of workloads, work time and
cost-effectiveness. In addition, the literature on job performance focuses on two factors which are the
importance of sustaining high job performance among employees and finding the best ways to maximize
job performance (Yilmaz, 2014). This study is established whenone of the authors had to undergo an
internship programme for about 4 months i.e. August to November 2015 at a local printing company in
Klang Valley, Malaysia. During the internship programme, it was known that the company wanted the
employees to perform by providing incentives to the performers in their given job task. However, the
company still has not been achieving the level of performance that has been targeted for. Based on the
observation and preliminary informal conversation with some of the employees, it was discovered that
some of the employees were feeling that they were doing too much work and some of them felt that they
lack of confident and high emotional exhaustion when it comes to dealing with ever demanding
customers.

Therefore, this study aims to ascertain the relationship of three factors associated with employees
performance i.e. role overload, self- efficacy, and locus of control. The first factor of role overload arises
when an individual has numerous social roles to carry out, at least one of which requires an excessive
time commitment (Falkenberg&Monachello, 1989). Employee will feel depressed when they have to
perform various job role with limited time and resources. The employees in the surveyed company
having more than one role that need to be handled at one time especially among marketing and customer
service department. Sometimes the marketing department needs to back up customer service when there
is a lot of urgent job that need to be accomplished within the due date given. According to Bakker,
Schaufeli, Leiter, and Taris(2008), work overload lead to adverse employee psychological outcomes such
as anxiety, depressive symptom and also ill health. Such employees show less embedded in their work
and demonstrate poor job performance (Karatepe, 2013). For the second factor, according to Wood and
Bandura (1989), self-efficacy was defined as peoples beliefs in their capabilities to mobilize the
motivation, cognitive resources, and courses of action needed to exercise control over events in their
lives. Usually, person with high self-efficacy turns to set high target and perform better than others.
Other researches show that self-efficacious frontline employees in the hospitality industry perform their
jobs at elevated levels (Karatepe&Uludag, 2007).Typically the employees in the surveyed company

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interact with their customers by face to face as they were dealing with the services and also products. The
issues arise when employee sometimes do not alert with the instruction of their manager on how to
execute the task given especially for printing department. When they do not accomplish the job required,
the customer will be dissatisfied with many complaints. Individuals who possess low self-efficacy will
decrease their efforts and fail to execute the works (Tims, Bakker &Derk, 2014). Therefore, low self-
efficacy will reduces the job performance of employees.

For the last factor in this study was locus of control. The concept of perceived locus of control was
developed by Rotter (1960), who concludes that individual who perceived internal locus of control
believed that the result that they received whether success or failure was the result of their own action.
While person who perceived external locus of control believed that the results that they got werebecause
of other factors such as fate or chance.There is previous research by Kalbers and Fogarty (2005), who
found that person who perceives external locus of control more likely experiences stress and is more
likely to perceive stressful situation. In addition, they also concluded that external locus of control
brought an impact to job stress and tends to reduce individual achievement and job performance. From
discussion with the manager in the surveyed company, this problem of locus of control occurs among
customer service staffs of this company, when they cannot handle the situation related to solving the
customers problem and sometimes pass the problems to other staffs on duty. This issues had given bad
perception to the customers who subscribed for the printing services at the company.

2. Literature Review

Job Performance: Job performance was very crucial to every organization especially towards the private
company to maintain their reputation and also increase the profit. So, the employer or manager must give
some motivation to their employee to increase the level of job performance in their job task. Viswesvaran
and Ones (2000), defined job performance as an actions, behaviour and outcomes that employees facing
which relate to the objective of company. Job performance was found to be positively related with job
satisfaction, whereas effort is assume to be a disutility in the theory (Pugno&Depedri, 2009). Self-esteem
would affectan individual personal performance. Person who believes in herself or himself can stay in
harmony even though he or she has strong or weakcharacteristics in personality (Karatepe&Demir,
2014).According to Akgunduz (2015), he describes that a person matches with the standards, desires and
the level of performance will be positively influenced bythe employees self-esteem. Therefore, if
employees work standard matches with their attitudes or behaviours, they automatically developed self-
esteem.

Role Overload: According to Reilly (1982), as cited by Ebrahimi, Wei and Rad (2015), role overload is the
degree to which a person facing him or herself to be under time pressure caused by the huge number of
commitments and responsibilities in their lives. Other than that, role overload is one of the three major
elements of role stress which includes role ambiguity and role conflict (Akgunduz, 2015). Moreover, at
work, the amount of time required to perform a job is directly related to its level of responsibility.
Individual in organization possess two important work roles which are the job-holder role and the
organizational-member role. Other than that, fulfilling the organizational-member role (while also filling
the job-holder role) is likely to require additional resources on the part of employees, particularly in
terms of their time and energy. In case of that, employees may thus find it rather overwhelming to fulfil
their organization-member role by demonstrating individual initiative such as bringing things home to
work on, staying at work after normal hours, working on their off days and others (Bolino, Valces, &
Harvey, 2010).

Self-efficacy: Self-efficacy is dynamic in that it changes over time as the individual acquires new
information and experience (Gist & Mitchell, 1992). According to Sltten (2014), in recent years, there has
been a sharp increases in the interest of the concept of creative self-efficacy and its role in explaining
differences in employees participation in innovation-related activities. Moreover, he also stated that even
creative self-efficacy is a relatively new concept, it has become popular and in the literature, it is often
emphasized as having an important role explaining individual differences in activities related to
innovation. Therefore, organization should have more creative employees to create organizational
innovation. Next from the other research study, Cohen and Abedallah (2015) explained that another
personal variable that suggests itself as potentially related to Organizational Citizenship Behavior (OCB)
is self-efficacy. Besides, self-efficacy reflects ones ability to confront with a situation and a willingness to
expand effort (Jawahar, Meurs, Ferris &Hochwarter, 2008).

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Locus of Control: Jeloudar and Goodarzi (2012) define locus of control as peoples premise on
controlling their lives. Previously there have been several researches conducted on type of locus of
control and its impact on job aspects such as stress, satisfaction and organizational commitment (Martin,
Thomas, Charles,Epitropaki, & McNamara, 2005). Besides, study by Rahim (1996), also had identified the
correlation between locus of control and job stress and concluded that a person with high internal locus
of control believes that they can manage the stress that they faced with more effectively rather than
individual who perceived high external locus of control. Normally, an individuals type of personality may
influences the level of stress occurred. Other than that, according to Judge, Erez, Bono,
andThoresen(2003), locus of control is important element towards job satisfaction and job performance.
On top of that, as one might expect, a person who perceived high internal locus of control reportsa higher
level of job satisfaction (Martin et al., 2005).

Role Overload, Self- Efficacy, Locus of Control and Job Performance: Role overload increases when
there were too much roles in one situation and impossible for that individual to handle due to lack of
time, energy or resources (Akgunduz, 2015). Besides, employees face constraints in performing their
duties that caused by limited resources, such as in term of time and energy, and also the discrepancies
that they experience between different roles, such as organizational and family roles (Beehr& Glazer,
2005).In fact Widmer (1993) as cited by Akgunduz (2015), mentioned thatrole overload may causes the
confident level in the organization reduces, bad interpersonal relations, low productivity, low
performance level, low achievement and fewer interpersonal relationships with others. Therefore, role
overload shows significant variable that give impact to organization function and employee job
performance.
Hypothesis 1 (H1): There is a relationship between role overload and job performance.

The positive relationship between self-efficacy and performance has been supported in many studies.
Bandura and Locke (2003) convincingly demonstrated that self-efficacy has crucial value for motivation
and performance of an individual. Other than that, self-efficacy may enhances performance because
person who believe themselves as highly efficacious will show their efforts to handle the job given with
longer time as compared to others (Tims, Bakker, &Derks, 2014). Therefore, person who has high self-
efficacy will executes the job in longer time to resolve the task given.
Hypothesis 2 (H2): There is a relationship between self-efficacy and job performance.

There have been suggested by other researches that emphasize locus of control perceived as important
component for job performance (Judge et al., 2003). According to study by Patten (2005), he explains that
understanding the internal auditors role structure to the personality variable of locus-of-control might be
important towards theirperformances and satisfaction could yield valuable insights in regards to the
audit reengineering efforts. In addition, Hyatt and Prawitt (2001) also reported that internal locus of
control was important towards the experience levels at the more unstructured firms but not at the more
structured companies. Their research suggested that if internal audit environment closely related to
unstructured audit firm environments, a similar performance relation will occur in internal audit area.
Hypothesis 3 (H3): There is a relationship between locus of control and job performance.

Research Framework: Based on the literature review and all hypothesized relationship as described
earlier, the research framework shows the conceptual foundation to explore and examine the
relationship between all independent variables and the dependent variable. The independent variables
were role overload, self- efficacy, and locus of control and the dependent variable was job performance.
The researcher adopted and adapted the original research framework from previous studies by Akgunduz
(2015), Cohen and Abedallah (2015), and Jeloudar and Goodarzi, (2012).

Role Overload

H1
Self- Efficacy Job
H2 Performance

Locus of
Control H3

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Figure 1: Research framework of the impacts of role overload, self-efficacy and locus of control towards
job performance.

3. Methodology

The descriptive and correlationalwere opted as the research design for this study. The sampling
technique of this study wasnon-probability sampling specifically purposive sampling. This research study,
therefore utilised quota sampling to ensure that certain groups are adequately represented in the study
through the assignment of a quota. A total of all 75 employees of a local printing company in KlangValey,
Malaysia were surveyed in this study. For data collection procedures, the instruments wereadapted from
prominent scholars as follows:-

Table 1: Adopted Measurements for This Study


Variables No. of Sources Scale
Items
Role Overload 4 (Karatepe,2013) 5 Points of Likert Scale(which
Self- Efficacy 8 (Jones, 1986) indicates 1- StronglyDisagree,
Locus of Control 12 (Spector, 1988) 2- Disagree,3-Neutral, 4-Agree,
Job Performance 10 (Tsai, Cheng & Chang, 2011) 5- StronglyAgree.)

4. Results

Frequency Analysis: In this study, there were 67 responses that were fully usable out of 75 surveyed
employees (i.e. response rate of 89.3%). Based on Table 2, the respondents age group was divided into
five group, but fromthe gathered data only three groups of age were obtained which were between age of
25 years old and below with frequency of 57 (85.1%) followed by age between 26 to 30 years old with the
frequency of 8 (11.9%), meanwhile for age between 31 to 35 years old, the frequency was only 2 that
indicated 3.0%. From the 67 respondents in this survey, the respondents comprised mainly of male which
were 37 respondents (55.2%) and 30 females (44.8%).Other than that, the race of the respondents were
mostly Malay which was comprised of 60 respondents(89.6%). Then followed by other raceswith the
frequency of 7 (10.4%). Table 2 also shows the job status of the respondents.

Based on the analysis, majority of the respondents were permanent workers with 64 in frequency
(95.5%) and only 3 (4.5%) respondents were part-time worker. The result also indicates the departments
of the respondents in that company. There were six types of department where 30 (44.8%) of the
respondents were from customer service department in the company, followed by printing department
with 10 (14.9%) of the respondents. Then, 9 (13.4%) of respondents were from graphic design. For
marketing department indicated 8 (11.9%) of the respondents, meanwhile for administration and general
worker both of the departments showed the same frequency of 5 (7.5%) of the respondents.Next part in
the demographic background is years of working experience in the company. The highest portion of the
respondents found in this survey was 1 to 4 years with 29 in frequency or 43.3%. Then, followed by the
respondents that were working below 1 year with frequency of 18 or 26.9%, continued by 16 (23.9%) of
respondents that worked below 6 months, 3 (4.5%) of respondents who had working experiences
between 5 to 10 years, and lastly only one of the respondents (1.5%) who had worked for more than 10
years.

Reliability Analysis: Based on Table 3, the Cronbachs alpha for self-efficacy was the highest where .845
which it was measuredby 8 items and was considered as very high. The Cronbachs alpha for locus of
control that measured by 12 items was .654 where it was considered as moderate in reliability. Other
than that, for role overload, the Cronbachs alpha was .693 for all measured 4 items and it also considered
as moderate in reliability. Lastly, the Cronbachs alpha for job performance was .702 which it measured
10 items and it was considered as reliable. According to Sekaran and Bougie (2013), the value of
Cronbachs alpha that is below 0.6 is consider poor and more than 0.6 is considered as reliable.

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Table 2: Demographic Background of Respondents


Variables Frequency Percentage (%)

Age
25 years old and below 57 85.1
26-30 years old 8 11.9
31-35 years old 2 3.0
36-40 years old - -
41 years old and above - -

Gender
Male 37 55.2
Female 30 44.8

Race
Malay 60 89.6
Chinese - -
Indian - -
Others 7 10.4

Job Status
Permanent 64 95.5
Part-time 3 4.5
Contract - -

Department
Administration 5 7.5
Customer Service 30 44.8
Graphic Design 9 13.4
Marketing 8 11.9
Printing 10 14.9
General Worker 5 7.5

Years of working experience


Below 6 months 16 23.9
Below 1 year 18 26.9
1-4 years 29 43.3
5-10 years 3 4.5
Above 10 years 1 1.5

Table 3: Reliability Analysis


Variables Number Items Cronbachs
of items dropped Alpha
Role overload 4 - .693
Self- efficacy 8 - .845
Locus of control 12 - .654
Job performance 10 - .702

Descriptive Analysis: Based on Table 4, the mean for all independent variables were within 2.63 to 3.73
which in a range of medium and high. The highest mean obtained from the locus of control with

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(Mean=3.73, SD=.107), which means respondents emphasized more on locus of control. Then, it followed
by medium level (Mean=3.38, SD=.175) which was self-efficacy, and role overload also in medium score
which at (Mean=2.63, SD=.196). Meanwhile, for dependent variable of job performance was at high level
(Mean=3.60, SD=.116).

Table 4: Descriptive Analysis


Variables Mean Standard Deviation

Role Overload 2.63 .196


Self- Efficacy 3.38 .175
Locus of Control 3.73 .107
Job Performance 3.60 .116

Correlation Analysis: Based on the findings of the correlation analysis, according to Salkind (2000), the
value of .500 is considered acceptable correlation. The highest correlation was obtained between self-
efficacy and job performance with the value of .646. This value shows that there was a strong relationship
between self-efficacy and job performance. Other than that, this variable had a significant positive
correlation between self-efficacy and job performance with p=.000.

Table 5: Correlation Analysis


Role Overload Self- efficacy Locus ofcontrol JobPerformance

Role Overload 1.00


Self- Efficacy .165 1.00
Locus of Control .171 .370** 1.00
Job Performance .078 .646** .431** 1.00

Note: ** Correlation is significant at the 0.01 level

Then, followed by locus of control where its value of correlation (r = .431, n = 67, p < .01) where it
indicated the moderate relationship between locus of control and job performance. It also showed the
significant positive correlation between locus of control and job performance with p= .000. Role overload
showed no relationship with job performance which the value of correlation was too weak of r = .078 and
p-value was not significant. This variable demonstrated no association between role overload and job
performance with p =.264.

Regression Analysis: Based on Table 6, the R2 was .46, and the adjusted R2 was .44. The independent
variables which are role overload, self-efficacy, and locus of control explained 46 percent of variance in
employee job performance. Self-efficacyand locus of control werepositively and significantly affecting the
dependent variable of employee job performancewith the result of unstandardized regression coefficient
of r= .381, p < .01 and r = .251, p < .05 respectively. Based on the results of standardised beta coefficients,
the strongest predictor of employee job performance was self-efficacy (r = .570). The second highest
contributor to employee job performancewas locus of control (r = .229). However, the result of regression
coefficient for role overload was insignificant.

Table 6: Regression Analysis


Dependent variable: Job Performance
Independent variables: Unstandardised Coefficient Standardised Coefficient
(constant) 1.461
Role Overload -0.033 -.055
Self-Efficacy 0.381** .570
Locus of Control 0.251* .229
F value 18.10**
R 0.46
Adjusted R 0.44
Note: *p<0.05, **p<0.01

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Discussion: For the first research objective in this study to investigate whether there is a relationship
between role overload and job performance. Based on the results, the value of regression coefficient for
role overload (r = -.033, p =.564). It indicates that no relationship between role overload and job
performance as this factor did not show any significant relationship with the employee job performance
in this company. In this research study, it has not been supported by other studies because the results
show no relationship between role overload and job performance. Therefore, after conducted hypothesis
testing, the hypothesis 1(H1) in this study had been rejected and H0has been accepted. Next objective to
identify whether there is a relationship between self-efficacy and job performance. From the gathered
data, the results show that self-efficacy have significant positive relationship and strong association with
the job performance among workers at this printing company with the regression coefficient value of r=
.381, p=.000 andcorrelation value of r= .646, p= .000. Therefore, it shows that self-efficacy had positive
effect towards employee job performance. For the hypothesis in this study, the H 2 will be accepted and H0
rejected. This finding issupported by other study e.g.Yavas, Karatepe and Babakus (2010) stated that a
person with high self-efficacy sets higher target to perform better than others. The result of this studyalso
constant with other previous research byTims, Bakker and Derks (2014) who suggested that the higher
levels of self-efficacy on given working day will also increase the level of performance on that day.

Third research objective in this study is to study whether there is a relationship between locus of control
and job performance. The finding clearly shows that locus of control have positive relationship with job
performance. From the regression and correlation analysis data, it indicates that locus of control was
positively and significant related to employee job performance as result of regression coefficient of
r=.0251, p=.025 as well in moderate level of association with job performance as per correlation result of
r =.431, p =.000). Therefore, for the third hypothesis, the H3 had been accepted and rejected the H0. This is
supported byother study e.g. Garson and Stanwyck (1997) stated that locus of control has been found to
be positively associated with low-perceived stress and increased job performance. Thus, this means that
employees ofthe studied printing company have agreed that individual locus of control had significantly
and positively affected their job performance.

5. Recommendations and Conclusion

As a recommendation from the result of this study, the most influencer of job performance is self-efficacy.
In order to enhance the ability and the capabilities towards the task given, the company can send their
workers to the training, so that this will improve their self-efficacy and later increase their job
performance.Next recommendation is in terms ofthe workers locus of control, where the manager can
make some discussion or meeting with each of the department to discuss about the strong and
weaknesses of each individual in their performance appraisal. When there is good relationship between
manager and employee, this will encourage them to be more motivated and improve their locus of
control, thus increase their productivity as well. The other recommendation that can be taken by the
organization to increase the job performance of employees, the company should give some incentive or
rewards to those who had performed excellently in their job. Even the workers have work overloads, but
when the company gives recognition to them they will feel appreciated and happy to work at that
organization. Furthermore, as proven in this study, the role overload is not significantly associated with
job performance. Indirectly this means that although the workers could be having role overload, their
self-efficacy and locus of control were much more important that could affect the job performance.

For recommendation of future research, other researchers can conduct the same research study in other
similar companies to identify factors that associated with job performance to enable the results of this
study to be generalized in the specific industry. It is also recommended that future research about the
factors influencing job performance should include more variables to get more accurate results of
findings. The more variables will enhance the contribution towards the topic. Future researcher may also
use other method to collect data instead of relying fully on questionnaire. As the conclusion, this study
found that there was a positive and significant relationships between self- efficacy, locus of control and
job performance, meanwhile no relationship exist between role overload and job performance. Other
than that, self-efficacy shows the strongestpredictor of an employee job performance and locus of control
demonstrates a moderate level of association with the job performance.To summarize, the higher an
employees self-efficacy or locus of control, the higher his or her job performance will be in an
organization.

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Application of Management Accounting Information Systems Textile Company in


Indonesia

Rima Rachmawati
Universitas Widyatama
Universitas Padjadjaran, Bandung Indonesia
rima.rachmawati@widyatama.ac.id

Abstract: Quality accounting information generated from an integrated system of accounting information
between one part and another. This study used a qualitative approach to the textile companies in
Indonesia. The results showed a quality impact on the quality of information system of management
accounting information with the magnitude of Influence 55% in the category of strong influence.

Keywords: information, management accounting systems, quality information

1. Introduction

For companies, the information is viewed as a business resource, as well as other business resources such
as raw materials, machinery and labor, such information is necessary to maintain the viability of the
company (Hall, 2013). Management accounting information is the result of the accounting process
management in the form of financial information and non-financial information presented for the benefit
of the company's internal (Hansen et al., 2009). In fact, management accounting information system used
in an institution still has problems. In the non-business organizations (government) as expressed by
Usman Abdhali Watik (2011) that the government has not been able to integrate all data and wealth of
the country well, the government has yet to consolidate the data assets and property owned of each
ministry, such as a building owned by the state, official cars, and investment assets. Other problems
associated with management accounting information systems occur in PT Angkasa Pura, data from the
finance/ accounting, manufacturing, sales and service parts are not yet integrated one part and the other
because of the weakness of the system used (Tommy Soetomo, 2012). In particular, the low quality of
accounting information system management also happened in the company Textiles and Textile Products
(TTP) causing problems related to management accounting information systems TTP occurred
repeatedly. According to Kevin Harnanto (2014), some of the problems often faced by accounting
information systems companies TTP, among others: software finance available is not equipped with a
manual use this causes frequent errors when entering data so that the accuracy of information doubtful.
Based on the research background made formulation of the problem is whether the quality of accounting
information management systems affect the quality of accounting information management. Objective: to
determine whether the quality of information systems affect the quality information
Benefits: the development of science and solving problems

2. Literature Review

An Management Accounting Information Systems: Accounting information system is a collection of data


and processing procedures that creates needed information for its users (Bagranoff et al., 2010)
Management accounting information system is a formal system that provides environmental information
from internal and external environment for managers. Gordon & Narayan (1984) adding that the
accounting information system management is defined as a formal system that is designed to provide
managers with the necessary information to facilitate decisions and evaluation of managerial activities.
Belkaoui & Riahi (2010) explain management accounting information system is a set of human resources
and capital in an organization that is responsible for the production and dissemination of information
considered relevant for internal decision making. According to Hongren et al. (2001) defining a system of
management accounting information as a formal mechanism to collect, organize, and communicate
information about the organization's activities. The next, according to Hansen et al., (2009) adding that
the accounting information system of an organization has two major subsystems: management
accounting information system and financial accounting system, be distinguished both in terms of its
objectives, inputs and processes that run to turn inputs into outputs, in a statement : Accounting
information system can be divided into two major subsystems: (1) the financial accounting systems and (2)
the cost management systems

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Hansen et al., (2009),state : Cost management systems are primarily concerned with producing outputs for
internal information users, provides information for three broad objectives: costing of products, services and
other objects of interest to management, planning and control, decision making. This is in line with the
opinion Bouwens & Abernethy (2000) are management accounting information system is a formal system
designed for providing information to managers. Hansen & Mowen (2007: 4) further added that:
management accounting information system is an information system that procedures output using inputs
and process needed to satisfy specific management objectives. Agree with Cassia et al. (2005) explains that:
Management accounts systems as a set of tools involving the activities of information collection and
classification in order to help the strategic decision makes process. Based on the above understanding can
be interpreted that the management accounting system is a set of tools that involve collecting and
classifying information to assist strategic decision-making process. Davila & Foster (2005) define the
management accounting system as a subset of management control systems (MCS) interpreted as formal,
informational-based routines and procedures managers use to maintain or alter patterns in organizational
activities. The same opinion of Moores & Yuen (2001) management accounting systems is conceptualized
as formality of routines and procedures with greater use of computers, technical staff, and financial
modelling. Next Agbejule & Burrowes (2007) define management accounting systems is as a formal
system designed for providing managers with requisite information to facilitate decision and evaluation of
managerial activity. According to Barata & Cunha (2013) that the information system an integrated
man /machine system for providing information to support the operations, management and decision
making functions in an organization.

Further Quality is an indicator of how well the results of the activities fulfill the goals set by management
(Laudon & Laudon, 2012). Meanwhile, according to Heidman (2008) accounting information system of
quality management is a reflection of the results of the processing system of quality management
accounting information. Furthermore Hoque (2003) certify the quality management accounting
information system is a statement of a condition in which a system of management accounting
information generates management accounting information useful to managers in carrying out its
functions. So are De Lone&Mc Lane (2003) explaining the success of an information system as a system of
quality information by focusing on efforts to produce quality information. Based on the definition put
forward by Agbejule & Burrowes (2007), Heidman (2008), Hoque (2003) and DeLone & McLane (2003)
the quality of accounting information systems referred to in this research is the ability of management
accounting information system in generating accounting information management have quality
characteristics that are useful in supporting decision-making. Furthermore, according to Nelson, Todd &
Wixom (2005) the quality of accounting information system of quality management can be gauged from
the characteristic: accessibility, reliability, response time, flexibility, and integration. Nelson, Todd &
Wixom (2005) add a description of the quality dimensions of information systems as follows:
1. Accessibility, the degree to which a system and the information it consistent can be accessed with
relatively low effort.
2. Reliability, the degree to which a system is dependable.
3. Response time, the degree to which a system offers quick (or timely) response to requests for
information or action.
4. Flexibility, the degree to which a system can adapt to a variety to user needs and to changing
conditions.
5. Integration, the degree to which a system facilities the combination of information from various sources
to support business decisions.

Heidman (2008), adding five dimensions of quality management accounting information systems,
namely; integration, accessibility, formalization and media richness. While, success model of information
system by DeLone&McLean (2003) indicated by the dimensions: ease of use, system flexibility, system
reliability and ease of learning. As well as Gordon & Miller (1976) measuring the quality of accounting
information systems management through dimensions: a) the capacity to gather information about the
external environment, b) the capacity to gather information about the external environment, c) The same
accounting system from one sub-unit to another, d) internal information flow in the department (lateral)
and authority levels (vertical) should be done without obstacles and timely, e) data analysis should be
presented to the top management of low-level detail, f) information given to the manager should be broad
enough.

Next Whitten & Bentley (2007) mention the information system that has quality is an integrated
information system of various components such as software, hardware and network. The same thing in

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the statement Azhar Susanto (2008) that all components are either hardware, software, brain ware,
procedures, databases and communication networks and sub-components of each of the components
work together in an accounting information system to process the data necessary financial management
in decision making. Added by opinion Barata & Cunha (2013) that the information system consists of:
hardware, programs, data, procedures and people. Barata & Cunha (2013) Further explaining the
dimensions of the information system is: context, people, and process. So is Ba, Stallaert & Whinston
(2001) detailing the dimensions of an information system among others: software engineering,
technology acceptance, incentive alignment. Next Gable, Sedera & Chan (2008) add information system if
the quality is said to have an impact on individual users where the impact is assessed based on the
following: individual impact, organizational impact, information quality. Gul (1991) add a dimension of
management accounting system:
broadscope, integration, timeliness and aggregation. Broadscope refers to information that is external,
non-financial and future oriented. Timelines refers to the frequency and speed of reporting. Aggregation
involves the use of analytical or decision models.

Based on the definition and dimensions or characteristics of quality management accounting information
systems mentioned above, the dimensions used to measure the quality of management accounting
information system in this study refers to the dimensions or characteristics proposed by Heidman (2008),
DeLone & McLean (2003), Nelson, Todd & Wixom (2005) and (Romney & Steinbart, 2012) are:
integration, flexibility, accessibility, formalization and media richness. The dimensions and indicators of
the quality of the management accounting information system are:
1. Integration, measuring the extent of facilities management accounting information systems can
connect between the components with other components or between the sub-components in one
component.
2. Fflexibility, measuring the extent of facilities management accounting information system can adapt
to different user needs and changing conditions occur.
3. Accessibility, to measure the extent of facilities management accounting information system
available when needed with ease.
4. Formalization, measuring the extent to which the management accounting information system
contains the rules or procedures.
5. media richness, measure the extent of management accounting information system is able to provide
facilities that can simplify convey the results of the processing of the data (information).

Management Accounting Information: Before discussing the management accounting information is


necessary to first discuss the information. According to Steel & Al-Hakim (2009) information is factual and
its meaning is deciphered through the process of construction, whereby artefacts come into being. So are
Hardcastle (2008) explain: information is that it is data that have been processed so that they are
meaningful. More Hall (2013):information is often defined simply as processed data. Stair & Reynolds
(2010) also states: information is a collection of facts organized so that they have additional value beyond
the value of the individual facts. While more detail Bagranoff, Simkin & Norman (2010), explain
management accounting information has the following characteristics:
1) Focuses on providing accounting information for internal parties, such as management, rather than
for external investors and creditor.
2) Mostly forward-looking.
3) Not regulated by generally accepted accounting principle, nor is it mandatory to prepare it.
4) Report includes both non-monetary and financial data.
5) Influenced by many business and non-business discipline, such as economics, behaviour science and
quantitative methods.
6) Flexible and frequently involves non-routine reporting.

Management accounting information is information that is used by managers for planning, control and
decision-making Hoque (2003). So that decisions taken by managers in line with expectations, the
necessary quality information Romney & Steinbart (2012 :). Statement Heidman (2008) supporting
statement Hoque (2013), that management accounting information includes information presented to
internal or external parties, the information in the form of financial and non-financial, quantitative or
qualitative information. While Atrill & McLaney (2009), suggests that management accounting
information needed to help managers to make decisions in four broad fields: develop long-term plans and
strategies, performance evaluation and control, allocate resources and determine the costs and benefits.
Next Anthony et al. (2008), states that management accounting information is information that is used by

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managers in planning, coordinating and controlling the activities of the organization. A similar sentiment
was expressed by Boisot&Canals in Heidman (2008) is:management accounting information systems is
process data and provide the result as management accounting information to managers. The statement
can be interpreted that the accounting information management is the process of data and presents the
results as management accounting information for managers. Thus, in the context of this study, is a
management accounting information is the information generated from the data processing both financial
and non-financial used by management in carrying out its functions (planning, of control and decision-
making).

Quality is an indicator of how well the final results meet the goals set by management Laudon & Laudon
(2012). According to Nelson, Todd& Wixom (2005) that the quality of the information indicates the
extent to which such information can assist in completing certain tasks. Similar delivered Stair
&Reynolds (2012) that the quality of the information indicates the extent to which such information can
help people and organizations in achieving efficiency and effectiveness. The same thing according
OBrien&Marakas (2010) that:
Information of high quality, that is, information product whose characteristics, attributes or qualities help
makes it valuable to them. It is useful to think information as having the three dimensions of time, content
and form.

Opinion OBrien&Marakas (2010) explained that high-quality information, is, product information
characteristic, attribute or quality assistance to help it qualified. Supported by the opinion Nelson, Todd &
Wixom (2005) that information quality is said if the information can be interpreted and understood.
Likewise Hardcastle (2008) explained that the information can be good or bad on the basis of such
information have information quality attributes which consists of:timing, content and form of the
information. Management accounting information will be used by managers for planning, control and
decision-making (Hoque, 2003:04). While Zaleha et al. (2012) explained that the accounting information
management is an integral part of a management process to generate information that will be used as:
controlling the current activities of an organization; planning its future strategies, tactics and operations;
optimizing the use its resources; measuring and evaluating performance; reducing subjectivity in the
decision-making process and improving internal external communication.

Based on the definition put forward by Stair & Reynolds (2012); Nelson, Todd & Wixom (2005); OBrien
& Marakas (2010); Hoque (2003); Zaleha et al. (2012) the quality of management accounting information
referred to in this research is the information used by managers in carrying out its functions (planning,
control and decision-making) the inherent attributes of quality on such information. Attributes in
question is characteristic of the quality information submitted by some experts the following: Wilkinson
et al. (2000:5), mention the main characteristics of quality management accounting information
according to which: relevance, accuracy, timeliness, conciseness, clarity, quantifiability and consistency. The
same opinion is expressed by Heidman (2007), which revealed four dimensions of quality management
accounting information, i.e.: 1) The scope of that measure how much information as is relevant to the user
population represented in the stored information, 2) Timeliness measure the extent to which the
information is up-to-date, or the extent to which the right information reflects the current state of the
world that represent, 3) Format measuring the extent to which the information is represented in a way
that can be understood and interpreted to users and thus assist in the completion of the task, 4) Accuracy
of the influence the extent to which information is correct, clear, meaningful, trustworthy and consistent.

Next Chenhall&Morris (1986) reveal the characteristics of quality management accounting information
can be grouped into four sections, namely; broad scope, timeliness, aggregation and integration. Added by
Gul&Chia (1994), stating the characteristics of management accounting information, among others: scope
(information to external parties and internal, financial and non-financial information, and future-
oriented), aggregation (aggregate with a period, the aggregate by functional areas and the analytical
models or decision). Nelson, Todd&Wixom (2005) add the dimension of the quality of information as
follows:
1. Accuracy, the degree to which information is correct, unambiguous, meaningful, believable, and
consistent.
2. Completeness, the degree to which all possible states relevant to the user population are represented in
the stored information.
3. Currency, the degree to which information is up-to-date.

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4. Format, the degree to which information is presented in a manner that is understandable and
interpretable to the user and thus aids in the completion of a task.

Attributes of quality management accounting information according to Blocher, Stout&Cokins (2010):


accuracy, timeliness. Al-Sharairi (2012) have the quality attributes of accounting information with
dimensions relevance, reliability, comparability and consistency. Furthermore, according to COBIT (2007)
dimensional quality of the information consists of: effectiveness, efficiency, confidentiality, integrity,
availability, compliance, reliability. Likewise Hardcastle (2008) explained that the information can be
good or bad on the basis of such information have information quality attributes which consists of:timing,
content and form of the information. These attributes are described in detail if it is :
1. Timeliness refers to that information should be available when needed.
2. Content of the information refer to factors such as the accuracy of the information and relevance of the
information to a particular situation and user.
3. The form of the information refers to aspects such as the clarity of the information which should be
appropriate to the intended recipient.

Based on the definition and dimensions or characteristics of quality management accounting information
mentioned above, the dimensions used to measure the quality of management accounting information in
this study refers to the dimensions or characteristics proposed by Wilkinson et al. (2000), Heidman
(2008), Chenhall & Morris (1986), Nelson, Todd & Wixom (2005), Gul & Chia (1994) dan (Romney &
Steinbart, 2012) is:
1) Scope is measuring the level of completeness of the presentation relevant to all users have been
presented in the stored information. The indicators used are:
a) External and internal information
b) Financial and non-financial information
c) Future-oriented
2) Timeliness is to measure the level of timeliness presentation of management accounting information in
accordance with the time it takes a user. The indicators used are:
a) How Far management accounting information can be presented to the user when needed.
b) How Far management accounting information accurately reflects the real conditions that occur at
this time.
c) How often management accounting information is presented on a regular basis (daily, weekly,
monthly, quarterly, semiannual or yearly).
3) Accuracy is to measure the level of truth, usability, reliability and consistency of the presentation of
information. The indicators used are:
a) How Far management accounting information is free of misstatement.
b) How Far management accounting information is presented to the methods and means that are
consistent over time.
4) Format is to measure the level of ease of understanding and use of management accounting
information is presented. The indicators used are:
a) How Far management accounting information is presented easily understood by users.
b) How Far management accounting information presented is easy to use by the user.
5) Relevance is to measure the extent to which information management accounting can be applied and
are very helpful in performing the tasks / work.
a) As far as the management accounting information Where can resolve the problems faced.
b) The extent to which management accounting information according to user needs.

3. Methodology

This study uses a qualitative method because the problem is not yet clear, the quality of accounting
information in the management of textile enterprises can be explained by aspects of the scope, timeliness,
relevance, format, accuracy. This research was conducted in a textile company in West Java. The source of
data is the result of observation / interviews to users of management accounting information system
applications in textiles. The population used to make the hypothesis that the textile companies in
Indonesia determining the sample using simple random sampling.

4. Result

The general condition of accounting information system implementation in textiles

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Table 1: The general condition of accounting information system implementation


Used Computer Facilities amount %
Shared computers interchangeably with other personnel 16 19%
A
Computers reserved 64 75%
Computer-premise 5 6%
85 100%
Internet Network amount %
Available with either 60 71%
B Available on certain parts 23 27%
Not available 2 2%
in the plan 0 0%
85 100%
Accounting Software Applications (Apps Accounting
Information Systems Management (SIAM)) who currently use, amount %
obtained by:
C
Buying from other parties outside the company 47 55%
Renting of other parties outside the company 7 8%
Developed by the company 31 36%
85 100%
Technically, maintenance programs / applications
(software), computer facilities (hardware) information amount %
system used, carried out by:
D
Section / Division concerned 36 42%
Sections / Special Division is centralized 37 44%
Outside companies 12 14%
85 100%

Descriptive Analysis: As presented by Weinberg&Abramowitz (2002) that descriptive statistics are used
when the purpose of an investigation is to describe the data that have been (or will be) collected.
Descriptive analysis is used with the aim to describe the data that has been collected or by
Groves&Robert (2004) descriptive analysis aims to provide a quantitative overview of the summary of
observations (size / distribution) of each variable research. Used as a basis of interpretation of
respondents categorizing each score on each variable research. According to Cooper&Schindler (2014)
Data ordinal / interval / ratio has a symmetric distribution, measures of central tendency of data can be
done using the distribution of inter-quartile range. Criteria for categorization top score responder defined
as follows:
Skor maximum skor
The range of
= minimun
scores kategori
number of categories
Information :
Skor maximum = 5
Skor minimum = 1
Number of categories = 5
So it can be arranged interval following categorization:
interval score Category
1,00 1,80 Not good
1,81 2,60 Not good
2,61 3,40 Enough
3,41 4,20 Good
4,21 5,00 Very good

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The quality management system of accounting information measured by the five dimensions, namely
integration, flexibility, accessibility, formalization and media richness. Here recapitulation average score of
respondents votes each dimension of the variable quality of management accounting information system,
See Table 2.

Table 2: Recapitulation Average Score Answer Respondents to the variable quality of management
accounting information system
No dimension Average Score Category

1 Integration 3.62 Good


2 flexibility 3.80 Good
3 accessibility 3.62 Good
4 Formalization 4.11 Good
5 Media Richness 3.66 Good
Quality of Accounting Good
Information Systems 3.72
Management
Ideal score 5.00
Gap 1.28

Based on the recapitulation of the above, the quality of management accounting information systems at
textile companies included in both categories. Nevertheless, there is still a gap between the scores that
should have been with a score of 1.23 that actually that this case illustrates although respondents were in
either category but employ there are disadvantages that may result from the ability of management
accounting information system applications in terms integration, flexibility, accessibility, formalization and
media richness. Quality of management accounting information measured by the five dimensions, namely
scope, timeliness, accuracy, format and relevancy. Here recapitulation average score of respondents' votes
each dimension of the variable quality of management accounting information See Table 2.

Data analysis is shown to prove the hypothesis then calculated the correlation and determination
coefficient (influence). Calculation of results Obtained using the SPSS program quality management
accounting information system influence on quality management accounting information of 0741, the
coefficient of determination (0.7412) = 0.55, this means that the higher the quality of accounting
information management system will be higher quality management accounting information, Influence
the quality of the information system on the quality of management accounting information for
0,55x100% = 55%. Thus the hypothesis which determined that states there is a relationship between the
qualities of information systems with quality management accounting information can be received. Large
55% influence on the quality system quality management accounting information included in the
category of high impact by Cooper&Schindler (2014).

Table 3: Recapitulation Average Score Answer Respondents in the variable quality of management
accounting information
No Dimension Average Score Category
1 Scope 2.97 Good

2 Timeliness 4.00 Good


3 Accuracy 4.24 Good
4 Format 3.76 Good
5 Relevancy 3.83 Good
Quality of Accounting Good
Information Systems 3.71
Management
ideal score 5.00
Gap 1.29

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5. Conclusion

The quality management system of accounting information affects the quality of accounting information
management. Management accounting information is not integrated yet because the quality of data
between the data with other parts.
Based on this research can provide suggestions to improve the quality of accounting information systems
management in a way:
a) Completing the application of management accounting information systems with facilities that can
help users to use the system information whenever and wherever they are.
b) Completing the accounting information system management with data storage facilities and
maintenance data such as the facility to collect data into several categories, doubling the data to
multiple documents, sort data based on several characteristics, data storage (storing) as well as the
facility to open the data to perform a process or send the report to user.
Completing the application of management accounting information systems with facilities capable of
producing a report in two forms namely hardcopy and softcopy. Hardcopy most reports in the form of
printing using the printer, so that the information system must be equipped with facilities / menus to
print a report through the printer. While the most common form of softcopy form on-screen display and
information systems must be equipped with facilities / report delivery menu either via email, or copy the
data.

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Policy Implications of the Effectiveness of Philippine Hybrid Rice Program

Mary Rose S. Magbujos, MAT


Social Sciences Area, College of Liberal Arts and Sciences
maryrosemagbujos@yahoo.com

Abstract: In an attempt to increase rice production and to attain rice self-sufficiency in the Philippines,
hybrid rice technology has been acknowledged and is now becoming a trend in the rice industry. Under
the Department of Agriculture's GintongAni Program, hybrid varieties have been demonstrated on large-
scale farmers' field trials at eleven provinces targeted for hybrid rice cultivation. The current state of the
technology has been reached through collaborative efforts by members of the national rice R&D network
spearheaded by PhilRice, the International Rice Research Institute (IRRI), and members of the private rice
seed industry. Two hybrids, Magat and Mestizo, have been released in the country, hybrid rice seed
production and cultivation technologies have been developed and packaged in the form of manuals, video
tapes and other information dissemination materials, a critical mass of researchers, extension workers,
and other key players in the rice seed industry and the national government have been educated on the
various aspects of the technology during training courses held at IRRI and PhilRice, and the economic
viability of hybrid rice cultivation and seed production have been studied and demonstrated. However, a
lot still has to be done for hybrid rice technology to gain a solid foothold in Philippine rice agriculture.
Challenges have to be addressed to ensure that the increased yield levels attained in technology
demonstration trials will be realized on farmers' rice fields leading to increased farm productivity and
farmer-incomes. The development and use of hybrid rice technology in the Philippines provides a good
example on how an international agricultural research centre and a national agricultural research system
could jointly develop and benefit from a technology usable by the farmers for increasing rice yields.

Keywords: hybrid rice, production, inbred varieties, hybrid technology

1. Introduction

Philippines population is projected to blow up by 32 million over the next 25 years with an average of 2.3
per annum (PHILRICE 2002). Consequently, with the projected increase in population, the demand for
rice will also increase by 40 percent by the year 2030. During the first two decades of the green
revolution, rice production increased at a respectable date resulting to the Philippines transition from
being a major rice importer to self-sufficiency in rice production. However, the yield increased has started
slowing down with the decline in public sector investment for the expansion and maintenance of
irrigation infrastructure and full adoption of modern rice varieties infavourable ecosystems since early
1980s. Rice is equivalent to life for millions of Filipinos. Rice is viewed not merely as a food but a grain
that shapes their way of living, their hopes, and their dreams. Filipinos consider rice as a symbol of quest
for lifes security and emancipation from hunger. Thus, achieving rice security is intricately related to the
nations struggle in eliminating extreme hunger and poverty the United Nations first Millennium
Development Goal. In fact, rice security is tantamount to food security in the Philippines. As the staple
food of the Filipinos, rice accounts for 46% and 35% of their caloric intake and protein consumption (FAO
2008). Rice comprised 16% of the total expenditures of the poorest 30% of the population of peoples
major spendings (World Bank, 2007). An increase in the prices of rice would also mean an increase in the
Filipinos cost of living which would result to more people experiencing poverty.Planted in about 30% of
the total agricultural area harvested, rice is the most extensively grown crop in the country (Dawe 2003).
Rice farming is the source of over half of the household income for almost two million families.
Furthermore, millions of landless farm workers, and thousands of merchants indirectly depend on rice for
a living. The production of rice in the Philippines grew from 5 million tons (1970) to more than 16 million
tons (2008) with only a 44% increase in the area harvested. Helpful to this development is the usage of
Green Revolutions seed-fertilizer technology and access to irrigation facilities. Rice imports were used to
fill the gap between demand and supply and to stabilize the domestic price of rice except for a few years
in the late 1970s and early 1980s. The Philippines, however, has relied on rice imports since the 1990s,
its quest for the rice self-sufficiency has persisted. Arguing for and against attaining rice self-sufficiency
has been a constant topic in debates among academicians, scientists, economists, and politicians. Some
say that the Philippines lack of comparative advantage in producing rice can be attributed to its
geography (Dawe 2006). On the otherhand, others say that public investments which are required to
achieve rice self- sufficiency are too expensive given the competing use of scarce public resources.

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Alternatively, some believe that self-sufficiency is justified by the thin world rice market. World supply is
vulnerable to changes in the consumption and production dynamics of major producing countries since it
is mostly consumed in countries where it is produced. Thus, it would be more practical to obtain rice from
domestic production to avoid serious fluctuations in the world supply of rice and its price. The surge in
2008 in the price of grains, illustrates the political importance of self-sufficiency in rice.The Philippine
government enacted an open-tender policy to avoid a rice shortage while some countries exporting rice
banned their rice exports.A more serious issue to deal with than the issue of rice self-sufficiency is the
expanding domestic production which is essential in ensuring the availability of supply for the ever-
increasing population. Improving rice productivity may mean reducing poverty in the rural areas. This
can increase the income of small farmers and landless farm workers, specifically, those who depend on
rice production for a living. Moreover, productivity improvement can make local producers go head-to-
head with international producers which is necessary if the country is to liberalize its rice trade.
Unfortunately, there are several factors that threaten the future of Philippine rice production:
urbanization, industrial land-use, and competing agricultural uses. These factors have decreased the
physical area devoted to rice productionfrom 3.4 million hectares in 1991 to 2.8 million hectares in 2001.
Additionally, the declining quality of land and water resources worsens the shrinking quantity of physical
resources as a result of years of mono-cropping practices (Cassman and Pingali 1995; Flinn and De Datta
1984). On the scientific front, the yield potential of indica-inbred rice cultivars has deteriorated from 9 to
10 metric tons per hectare (Peng, et al. 1999; Tiongco and Dawe 2002). The average actual farm produce
are only about half of the experiment station yields (Sebastian, Bordey and Alpuerto 2006). Some studies
also show a decrease in rice total factor productivity (TFP) in the late 1980s (Umetsu, Lekprichakul and
Chakravorty 2003) and through the 1990s (Estudilloand Otsuka 2006). Fortunately, rice research and
development (R&D) holds the promise of mitigating, if not countering, the impacts of these challenges.
Even though the Philippines is already benefiting from technological innovations, efforts are continuously
made to apply science in rice production.

The purpose of the study and the knowledge brought about it shall be significant to the people to provide
a feedback mechanism for the policymakers in order attack existing problems and to make hybrid rice
accessible to all the Filipino farmers. The respondents and participants who will take this research
endeavor will share their experiences for better understanding and will give a comprehensive insights for
this specific phenomena. Secondly, for the farmers, workers and tenants to envision rice program to help
increase rice yields and farmers income. Therefore, it isa must that necessary actions are taken to
improve rice that will lead to the improvement of rice farmers productivity and income and eventually
ensuring national food security. Thirdly, in doing so, the implementation of a more effective and efficient
list of measures by the government may be aspired to be beneficial to the nation as a whole. This may
ensure a constant high level of rice production and may eventually foster the well-being of our
countrymen, specifically the small farmers, who are highly dependent on the industry. In the same
manner, it may also provide the immediate needs of our populace for food requirements and national
survival.

2. Literature Review

Researchers continue to analyze and better understand problems and issues in rural development in
general, and the situation of small farmers in particular. It is essential to assess the characteristics of
agricultural production strategies among small farmers in order to have greater understanding to
determine their access to credit. Empirical research has shown borrowing restrictions that prevent small
farmers in developing countries from adopting high return-innovations such as irrigations and modern
technique varieties (Blackman, 2001). This allows small farmers to identify their needs and ideas as to the
relative role of credit in the context of production agricultural and livelihood strategies. Hybrid rice
technology was first introduced under the GintongAni Program (GAP) of former President Fidel Ramos.
This was renamed as the AgrikulturangMakamasa (Agriculture for the Masses) For Rice when Joseph
Estrada succeeded Ramos as president. However, there was no substantial difference between the two
programs: both aimed to to utilize available hybrid rice technology (with a view) to improving
productivity and competitiveness in rice production and ultimately, to attaining rice self-sufficiency.
(Casiwan et al, 2003). The preliminary implementation of the hybrid rice technology programs consisted
of technology demonstrations and adaptation ability trials in five areas in the country. The Department of
Agriculture started training seed producers in 1999 and organized them into a network of producers of
hybrid seeds. Former President Arroyos project entitled One Million-Jobs Programs aimed to generate
employment and whereby alleviate rural poverty. Pandey (1999) argued that fine-tuning of policy and

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institutional innovations are important in further increasing rice yields and farmers' incomes. In the more
intensive irrigated areas, where chemical fertilizer use was already high, a change in the paradigm from
that of encouraging higher input use to achieving increased input-use efficiency was suggested.

Low Production: Tado (2000) studied that the current mechanization level of rice production in the
Philippines was unsatisfactory. Lowering production costs was necessary to compete with neighbouring
countries. Supportive government measures were the goal in modernizing agriculture and improving the
quality of life for the rural population. Besides increasing yields and reducing post harvest losses,
innovations in rice production mechanization could act as a catalyst for rural areas. These developments
must consider social and economic backgrounds, and nowadays, last but not least, environmental
protection.

Low Industrialization: Even if new and more productive technologies are available, farmers might lack
information about their existence and knowledge about proper implementation techniques. Extension
services havebeen used as a means to diffuse new technology in developing countries since the Second
World War.Extension services also include related services. When they began, extension services mostly
included education about new technologies, as well as input and credit provision (Birkhaeuser et al.,
1991). Moreover, limited scope of rice farmers potted lives and their families have carried by a e number
of rice farmers has been declining faster in proportion to the continuous cropping of rice, either singly or
in combination, has brought worlds population therefore, require a substantial improvement in
productivity and efficiency of rice production systems that lead to food scarcity and poverty reduction as
the overarching goals that describes the promotion of economic growth that will permanently lift as many
people as possible over a poverty line. Farmers or other individuals obtained high yields and to have
developed the world's highest rice yield variety.Higher rice yield per unit of land and per unit per time is
needed to provide more rice to meet increasing food demand and one of the means of combating world
food crises. (Castro, 2004).

Rural Poverty: Although the Philippines has relied increasingly on rice imports since the 1990s, its quest
for the rice self-sufficiency has persisted. In constant debate, academicians, scientists, economists, and
politicians argue for and against attaining rice self-sufficiency. Some say that the Philippines lack of
comparative advantage in producing rice can be attributed to its geography (Dawe 2006). Others say that
public investments required to achieve rice self- sufficiency are too costly given the competing use of
scarce public resources. On the other hand, there are those who believe that self-sufficiency is justified by
the thin world rice market. Since rice is mostly consumed in countries where it is produced, world supply
is vulnerable to changes in the consumption and production dynamics of major producing countries.
Thus, it is more practical to source rice from domestic production to avoid severe fluctuations in the
world supply of rice and its price.

Beyond the issue of rice self-sufficiency, expanding domestic production is essential in ensuring the
availability of supply for the ever-increasing population. Improving rice productivity can contribute in
reducing poverty in the rural areas because it can increase the income of small farmers and landless farm
workers, specifically, who depend on rice production for a living. In addition, productivity improvement
can make local producers cost-competitive with international producers, which is necessary if the
country is to liberalize its rice trade. Unfortunately, several factors threaten the future of Philippine rice
production. Urbanization, industrial land-use, and competing agricultural uses have decreased the
physical area devoted to rice production. From 3.4 million hectares in 1991, the actual rice area declined
to 2.8 million hectares in 2001. Furthermore, the declining quality of land and water resources aggravates
the diminishing quantity of physical resources as a result of years of mono-cropping practices (Cassman
and Pingali 1995; Flinn and De Datta 1984). Evidence of declining productivity abounds. On the scientific
front, the yield potential of indica-inbred rice cultivars has stagnated at 9 to 10 metric tons per hectare
(Peng, et al. 1999; Tiongco and Dawe 2002). The average actual farm yields are only about half of the
experiment station yields (Sebastian, Bordey and Alpuerto 2006). Some studies also show a decline in
rice total factor productivity (TFP) in the late 1980s (Umetsu, Lekprichakul and Chakravorty 2003) and
through the 1990s (EstudilloandOtsuka 2006). Fortunately, rice research and development (R&D) holds
the promise of mitigating, if not countering, the impacts of these challenges. While the Philippines is
already benefiting from technological innovations, efforts are continuously made to apply science in rice
production.

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(ICRMMS-2016)

3. Methodology

This study utilized a qualitative approach and highly interpretive because it will try to explain the
phenomena on how Philippine Hybrid Rice Program serves as a tool in recognizing hybrid rice could
possibly be a road to increase production, government focused on adopting it as the countrys main rice
program. Both decrees intensified the utilization and promotion of hybrid rice. It also analyses how the
variety of rice grains developed by PHRP affected the farmers who adopted their use especially in terms
of living conditions. The study involvesin-vivo type of evaluation those in which the effects of various
biological entities are tested on whole.

Sampling Procedure: In pursuit of acquiring first hand information regarding the topic inquiry, it
involves the use of interview method and at the same time, interview questions were utilized to gather
the necessary information from the farmers and local technicians who can be interviewed given the
limited time. Interview method was rendered to five (5) local farmers who are concentrated in Calubcub,
Balagbag and Talahiban in San Juan, Batangas.. Hybrid rice varieties are chosen out of non-probability
specifically convenience sampling. Farmers from San Juan, Batangas will be chosen due to proximity of
the place to the researchers home place and at the same time, majority of the population in San Juan,
Batangas are farmers. Since the farmers are concentrated on the said place, more or less, their harvests
and cultivating experiences do not vary significantly and considering that San Juan,Batangas on Southern
Luzon, the terrain do not vary significantly.

Instrumentation: Since the study makes use of interview for gathering data, the interview will take
open-ended form in order to provide a wide range of responses, especially from the farmers, regarding
their side of the inquiry since they are the ones who really actuate the results of the research conducted
by PHRP. The content of the interview will mainly focus on the Philippine Hybrid Rice Programs, its role
in agricultural development and how it can alleviate food security, poverty and environmental protection.
The questions are themed according to the following:
1. Situationer/ Historical Development
2. Dynamics of the Program and the Stakeholders
3. Dynamics of the Political Actors in the Effectiveness of the Program

Data Gathering Procedures: The researcher, to gather the necessary information from the local
farmers, the researcher will conduct an interview by going to the place of the study, especially at San Juan,
Batangas. The researcher will set an interview at the time where both the researcher and the respondents
have convenience and is not conflict with other schedules in order for the interview to be conducted in a
smooth and orderly manner.

The Research Questions: This paper is concerned with the politics involved in the hybrid rice program
in the Philippines and how can it help in the agricultural challenges of the country. Specifically, the paper
aims to answer the following questions:
1. What are the past and current problems of rice production in the Philippines?
2. What are the government thrusts and strategies done to address these problems? To what extent did
they work? What are the challenges faced by the government in implementing these strategies?
3. What is the background and history of the hybrid rice program? How did it permeate the agricultural
environment of the Philippines? Are there other policies and innovations similar to this is other
parts of Asia?
4. What are the political dynamics between implementers, stakeholders, and other relevant sectors
(private investors, etc.) when it comes to the hybrid rice program? How did they change the
landscape of agriculture, especially food sufficiency, in the Philippines?
5. What would be the long term effect of the hybrid rice program when it comes to food sufficiency?
What will be the benefit of the Filipinos in this?

Theoretical Framework: In this research paper, the researcher used David Eastons Systems Theory in
order to analyze the conditions that gave rise to the Rice Hybrid Commercialization Program as well as its
effect on the grassroots, which are the farmers that ultimately use hybrid rice. The data gathered during
the interviews served as a feedback mechanism to the entire Programits strengths, challenges, and
suggested improvementsthat will serve as the new inputs in the whole system. The fundamental
argument systems theories are based on the assumption that governance can be conceptualized as a

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system of input, throughput/withput and output. The inputs are demands from groups and individuals
for political or policy initiatives, as well as pressure from the population and interest groups in general.
The outputs are policies with a feedback loop, reflecting responses that initiate another round of political
demands. In this model, governments are the linking element (throughput/withinput) that transforms
demands of the public (input) into policies enacted (output). Below is a diagram showing the entire
process of the theory used in this paper.

4. Findings and Discussion

The findings based on the interviews of the farmers were coded and constructed in the following
diagram:

ECONOMIC SUSTAINABILITY

INCREASED PRODUCTION

HIGH OPERATIONAL COST FARMERS TRADITIONALISM

INCONSISTENT GOVT POLICIES SUSCEPTABILITY OF


HYBRID RICE TO OTHER
FACTORS

HYBRID RICE COMMERCIALIZATION PROGRAM

Transcription Of Interviews: Yung hybrid, kagaya ng mga Pioneer, lahat ng hybrid, marami ang inaani.
Halos kalahati kaya yun ang isang Ako kaya ako nagtatanim kasi gusto kong mapatunayan sa mga

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farmers na yung makaluma ay modern na ngayon. Na mas pupwede silang dumami ng ani sa paggamit ng
hybrid na bagay.
Yun nga, dahil ang alam nila ay makaluma, kaya mas kokonti ang nagiging ani kapag ang ginagamit ay
mga makaluma.
Oo. Hindi naman lahat ay magaganda ang kalidad. May napipili na maganda, yun na lang ang aking
tinatanim.
Hybrid.. Ang kaalaman ko eh basta yung itinuturo sa amin kapag training: pagtatanim, paglalagay ng
fertilizer, pag iispray. Yan po ay ayon sa mga natutunan naming na aming sinusunod. Pansin ko noong una,
noong una ay ano kulang sa kaalaman at kulang sa patubig. Ngayon po ang programa ng ating bansa ay
binibigyan na ng libreng irrigation, mga makinarya na kinukuha na rin namin. Nakakadalawang ani kami
sa isang taon Tapos ang kagandahan niya sa natutunan namin sa hybrid na palay, ay nadadagdagan ang
ani kahit papaano. Maayos ayos naman ang kita. Pero hindi palaging hybrid ang tinatanim namin dahil pag
dumating ang kalamidad, mahirap magbwai sa gastusin.

Kaya lang ang ani ay malakas talaga yun. Halos doble ang inaani kumbaga sa mga inbred na ginagamit.
Ang kita multiply pero ang gastos, multiply din. Doble din ang gastos.
Sa isang pag-aabala, ay madami agad ang ani, gastos bigla, kung ikukumpara mo sa inbred
Nababawi naman dahil marami ang ani, nababalanse. Mas malakas ang kita pag hybrid eh.
Oo, malaki ang puhunan dahil mahal din ang tanim, yung bubunutin pa. Tapos itatanim pa. Samantalang
ang inbred pwede mo na lang ihasik, isasabog mo lang, wala ka nang malaking babayaran. Sa tao lang,
maraming taong nagtatrabaho,
Eh kung lahat ay gagamit eh talagang makakatulong. Pero kung di lahat ay gagamit, dun pa rin sa dating
inbred na ginagamit, eh talagang di pa rin dadami ang palay dito sa atin. Yang hybrid eh malakas eh Kaya
lang, malakas din sa gastos.
Di ko masyadong nalalaman kung saan nanggagaling o ginaya kasi nasa bukid nga ako. Di ko alam kung
saang bansa sila ano
Dito sa San Juan, Batangas kakaunt ang sakop ng hybrid rice. Dahil itong barangay na ito ay nasa 42
barangay lang siya. Hindi lahat ay nagtatanim. May lugar na walang palayan.
Di sumusunod dahil ang iba ay kulang sa gastusin tapos ang gobyerno ay dapat may tulong sa mga
magbubukid na kapag inani ay tsaka babayaran. Malaki ang puhunan kapag bibili ng tao. Kaya ang
kalimitang sumusunod lang diyan ay yung katulad ko na malawak ang bukid na gusting umani ng
maganda.

Sa panahon natin ngayon, ang pangangailangan natin ay kulang sa abono. Tsaka kailangan talaga ngayon
ay yung binhi Diyan, sa bilihan ng abono. Mahal nga ang binhi eh Itong tinanim ko ay ngayon ay galing sa
Cebu, noong nagseminar ako.
Maganda ang kalidad pero kumporme kasi may ilang hybrid na mahina ang quality. Iba iba kasi ng klase
yan.
Magaling ang hybrid rice . Maganda ang buhay.Di masyadong dinadamo.Di ganun katrabaho.
Parang hindi, hindi naman tinuro yan. Kung paano lang gamitin. Mga taga UP Los Banos ang tumulong sa
amin. May mga dam na rin dito. Sentralisado na. Project ng government to. National.Mga 500,000
hanggang 1 bilyon ang pondo. Mga 2017, meron na ito. Sa Tiaong, Quezon.

Based on the interviews of the farmers regarding the Hybrid Rice Commercialization Program (HRCP),
they all agreed that the program can elevate the normal level of rice production in their rice fields up to
twice the normal volume. It definitely has high returns to the farmers yet the downside is a high
operational cost in planting, maintaining, and harvesting hybrid rice. In order to retain the high quality of
rice vis--vis the traditional/inbred rice production techniques more modernized forms of plant care
must be undertakenfertilizers, irrigation, etc.which can be quite problematic for small farmers. In the
interviews, only those with vast lands can religiously comply with rice hybridization while small farmers
still employ traditional methods in rice farming. Thus, high production entails high returns to the farmers
although operational costs are a burden to small farmers. There was a mention of government subsidies
in the interviews in forms of dams, modern machineries for rice planting and harvesting, and accessibility
to the market, yet these are inconsistent and normally in small scale. The only large scale project of the
national government is the dam in Tiaong, Quezon Province. The rest of the assistance in understanding
and applying HRCP had been small scale and inconsistent. Evidences to this claim include the varied
opinions of the four interviewees in defining the role of the national and local government in this
endeavorsome said that irrigation is now present while some claim that fertilizers are hard to obtain

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from commercial centers. It is worthy to note that those who said that government projects are visible in
the rice fields are those who own vast lands to farm and not the small farmers interviewed.

These challenges in the HRCP plus the uneven flow of government subsidies demoralize small farmers in
participating in the said program. Even though seminars and trainings were given to starting farmers
regarding the basics of hybrid rice planting, not everyone adapts it when they return to their respective
lands. This may be behavioral, since these farmers are more accustomed in planting rice using the
traditional way (inbred variety) and tend to disregard technological advancements in their field. Some
interviewed farmers are doubtful about the Program and are not willing to try because they see it more as
a liability than a potential mechanism for technological development and profit maximization. Finally, all
of these factors suggests that the very foundation of rice hybridizationthe rice itselfis also subject to
other mostly destructive factors. Majority of the farmers discussed that both the inbred and hybrid rice
suffer the same fate when disasters strike. Farmers also mentioned that not all hybrid rice have the
highest quality because of the differentiation in the breed of rice themselves. Finally, sensitivity of hybrid
rice was also taken into consideration by the farmers, saying that these breeds of rice should receive the
highest plant care exceeding the normal maintenance of the inbred/traditional breeds.

In summary, the four main reasons of the interviewees (high operational costs, inconsistent government
subsidies, personal inhibition of the stakeholders, and the susceptibility of hybrid rice to a number of
factors) inhibit them in fully participating in the agricultural development of the Hybrid Rice
Commercialization Program. These may be seen as barriers to the benefits of increased production and
economic viability that the Program is promoting. The government needs to review its program priorities
with regard to the rice research, development and extension. Hybrid rice is a technology that has yet to
prove itself under Philippine conditions, and this therefore does not justify making it the top program
priority to the detriment of inbred seeds and other more appropriate technological and socio-economic
and political solutions to the problem of declining rice productivity in the country.

References

Barker, Randolph 1975. Constraints to High Yield On Asian Rice Farms: An Interim Report.
Barwale, B.R., editor. 1993. Hybrid rice: food security in India. India: MacMillan. Bureau of Agricultural
Statistics (BAS). 2004. Assessment of farmers performance in the GMA-rice program and
nonprogram areas. Quezon City, Philippines: Department of Agriculture. Carnahan.
Castro, A.P. Philippine Rice Research Institute (PhilRice). 2004. Rice Integrated Crop Management :
Towards a Rice Check System in the Philippines
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Redoa, Ed. Hybrid Rice for Food Security and Poverty Alleviation: Economic and Political Weekly
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www.nytimes.com/library/national/science/082200sci-gm-rice.html.

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Organizational Cynicism, Work Related Quality of Life, Organizational Commitment and


Turn-over Intention in Non-academic Staff of Private Institutions

Shazia Khalid
University of the Punjab, Lahore
shazia_agha@hotmail.com

Abstract: The present study aimed to explored the relationship between organizational cynicism, work
related quality of life, organization commitment and turn-over intention in non-academic employees of
private institutions. It will be hypothesized that there is likely to be a relationship between organizational
cynicism, work related quality of life, organizational commitment and turn-over intention and work
related quality of life is likely to mediate the relationship between organizational cynicism and
organizational commitment and its outcome turn-over intention. The sample consisted of 150 non-
academic staff members on 17 grade position from private institutions of Lahore. Organizational
Cynicism Scale (Brandes, Dhartwadkar & Dean, 1999), Work-Related Quality of Life (WRQoL) scale
(Edwards, Laar & Easton 2009) Organizational Commitment Questionnaire (Meyer, Allen & Smith, 1993)
and Turnover Intention Scale (Camman, Fichman, Jenkins & Klesh, 1979) will be used for assessment. The
data will be analyzed using Pearson product moment correlation, structural equation modeling through
AMOS, independent samples t test and one way analysis of variance.

Aims and objectives of the study: This research provided new horizon for understanding of the complex
dynamics of the organizational cynicism, work related quality of life, organizational commitment and
turn-over intention with due emphasis on the jealousy, unhealthy working conditions and unrest
situations which disturb the work productivity, performance, commitment of employees with the
institution. This can have drastic repercussion on staff members quality of life as well as can spoil the life
of the other members of the family. This all can affect their work quality and productivity which reduce
their commitment resulting in turn-over intention. Thus keeping in mind the importance of the working
conditions, control at work, stress at work, hatred and jealousy which exert an impression on peoples
lives, timely management must be undertaken so that the remedial measures can be sorted out and the
precautionary steps can be streamlined for the welfare of the staff members and institution as well. This
research study has predominant aim of examining the factors which influence employee at his work place
both positive as well as negative. In recent years, this has been realized that low job satisfaction,
unhealthy working conditions, stressful environment play a crucial role in determining and causing low
commitment towards insinuations which lead to turn-over intention.

The focus and objectives of the current research study is both theoretical and implicative. There are
multifarious primary as well as secondary preventives strategies that could at least improve the quality of
life of those suffering from cynicism and turn-over intentions. It has laid grounds for psycho-
rehabilitation of non-academic staff in Pakistan. All positive measures and support given by institutions
would ultimately lay the grounds for enhancing the quality of work life of this affected population and
help to reduce their turn-over intention to the marked level and increase their work related quality of life.
The plan of the current study was to assess whether in less privileged countries like Pakistan can have
such work set ups where the realization of important factors like organizational cynicism, organizational
commitment, work related quality of life and turn-over intentions is found. The investigation has revealed
that employees are aware of such negative emotions and even the administration realizes that such
intricate behaviors exist at the work place. There is dire need that such negative attitudes are realized at
the institutional level rather than being denied. In the light of the findings, this is suggested that proper
counseling services and refresher training workshops are arranged by the administration so that the
efficiency and the efficacy of the workers can be amply improved. This research study has tried to serach
out the negative attitudes and emotions which affects the quality of working life and causes low
commitment and turn-over intention. The long-term objective and focus of this present research has been
achieved as finding the relationship of organizational cynicism, and commitment which influence directly
the work related quality of life and leads to turn-over intention..

Details of the research work done: Present research is aimed to study organizational cynicism, work
related quality of life, organizational commitment and turn-over intention in non-academic staff of
private institutions. In the modern age of corporate world, competition has sky rocketed in every walk of
life. This cut-throat competition in the work place, gives rise to jealousy and other negative attitudes like

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cynicism which can be described as an approach that includes aloofness oneself has from the association
due to assurance that the association not have the sincerity and will always try to fool its employees
(Brandes, Dean, & Dharwadkar, 1998). Skeptical workers consider that their contemporaries are egotistic
and self-interested (Barefoot, Dodge, Peterson, Dahlstrom, & Williams, 1989). There are some influences
that have a great impact on cynicism i.e. dealing with strain, incongruity with companies hope, lack of
social support and respect, no right to take decision, unequal division of authority and communication
gap (Austin, Reichers, & Wanous, 1997).

Cynicism is a pessimistic approach which includes three dimensions shaped by an individual to his or her
company. The cognitive dimension is considered as the belief in the organizations lack of sincerity and
truth (Brandes, Dean, & Dharwadkar, 1998; Meyer, Stanley, & Topolnytsky, 2005). The affective
dimension is termed as the emotional/sentimental reactions to the organization (Izard, 1977). The
behavioral dimension refers to destructive approach and mainly degrading attitudes (Breckler, 1984).
Organizational cynicism is based on several theories of attribution, social exchange, expectancy and
motivation (Homans, 1958; Weiner, 1995; Wigfield, 1994). Literature has revealed that workers, who are
more pessimistic towards organizational change show less enthusiasm to put forth hard work, expect less
individual success, and perceive less intrinsic and extrinsic rewards and have low quality of working life
(Austin, Reichers, & Wanous, 1994; Mirvis & Kanter, 1986). People who are high in negative affectivity are
found to be more disgruntled and experience more distress (Clark, & Watson, 1984). Due to collectivist
culture in Pakistan cynical employees do not show commitment toward unions which in turns leads to
strain at work and turn-over intention (Bashir, & Nassir, 2013).This strain at work ultimately deteriorates
the quality of working life which is described as the part of overall quality of life that is influenced by
world, the widest framework in which an employee would assess the influence of work on their life. It
covers a broad range of quality of working life factors across work and non-work life domains (Easton,
Edwards, & Laar, 2009).

Quality of individual efforts is the furthermost benefit to any company. Disappointment with quality work
of life is a problem, which have an effect on approximately all workers in spite of status or role. Many
employees seek to lessen disappointment in all organizational levels, as well as their own. This is a
complex problem, but, it is hard to cut off and recognize all of attributes, which influence the quality of
work life (Dargahi&Saraji, 2006). Hierarchy of needs theory (Maslow, 1963) elucidated it as that in the
work place these basic needs convert into secure, ergonomically designed working conditions with
suitable base pay reimbursement. Job safety and benefits, along with an violence free situation. In
contrast this can be affected by a variety of factors such as work load, family life, transport, payment
policy and profits, working conditions and career growth which have considerable effect on quality of
working life (Islam, 2012). Literature suggested that quality of work life of companies had great chance of
more profit margins, sales growth and higher benefits than other non-quality of work life companies. Lau,
2000; Marks, Mitchell, Mirvis, Hackett & Grady, 1986 & Rose, Beh, Uli & Idris, 2006 added that company
competitiveness can be improved by quality of work life which contributes to an organizations ability to
employ and keep people with excellence. As a consequence, better quality of work life leads to
commitment towards the company which is expounded as employees commitment to the organization
and its feeling of commitment, readiness to go further and aim to continue with the organization (Allen, &
Meyer, 1997).

Early studies analyzed commitment as one dimensional (Cohen, 2003). Three dimensions of
organizational commitment were indicated by Meyer and Allen (1991). According to Meyer and Allen
(1997) affective commitment is a work linked attitude with constructive feelings towards the
organization Moreover, continuance commitment described as an instrumental connection to the
organization, where the persons involvement with the organization is based on an judgment of financial
profits. Normative commitment is termed as a sentiment of compulsion to go on with employment (Allen,
& Meyer, 1991). In employees organizational commitment was developed through three different stages,
which are named as compliance, identification and internalization (OReilly, 1989). Furthermore this can
be get affected by a number of factors such as age, work experience, no of years working in a current
company and gender, working environment and so on. Past researches on commitment revealed that
(Alvi & Ahmad, 2006; Bishay, 1996; Ismail & Fatima, 2011; and Ismail, Ramay, Bashir, & Sajid, 2008)
employees would show greater commitment if they were satisfied and contended with their work. On the
other hand, those workers will leave the organization that are dissatisfied and show negative attitudes.
The lower commitment leads to employees turn-over intention which was defined as thoughts for
willingly leaving the organization (Dipboye & Foster, 2002).

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Previous literature indicates that outcome variable is intention to leave instead to actual quitting. There
are many other work related factors which contribute to turnover intentions of employees which mostly
included external factors and personal characteristics are good predictors of employee turn-over
propensity (Des & Shawn, 2001; Oparah & Faloye, 2007). The important factors which contributed to
turnover intentions are dissatisfaction with pay, insecurity, nature of work, working condition,
colleagues, promotion, recognition and dissatisfaction with social status. Chen (2006) also conducted a
study on important job out comes including job satisfaction, organizational commitment and turnover
intentions. Results of the study revealed that continuance and normative commitment have negative
relationship with turnover intentions of employees. Researchers have conceptualized that low levels of
commitment will leads to outcomes such as readiness to investigate for an extra job, plan to leave, and
turnover. Research results shown that organizational commitment is in negatively relationship to
intention to quit (Bluedorn,1982; DeCotiis and summers 1987;Hom et al,1979; Ingram and Lee, 1990;
Sager 1990). Park, Christie, & Sype, 2014; DeConinck & Bachmann, 2014 inspect determinants of the
commitment and its impact on the purpose to give up settings. They concluded that workers in non-
union firms are less devoted to the association and they have elevated intention to job turnover.

On the bases of empirical evidence the current study was designed to find out the relationship among
organizational cynicism, work related quality of life, organizational commitment and turn-over intentions
in non academic staff of private institutions. it was hypothesized that there is likely to be a relationship
between organizational cynicisms and work related quality of life. another assumption was that there was
likely to be a relationship between cynicism and commitment. Furthermore, relationship was also
hypothesized between work-related quality of life and organizational commitment. furthermore it was
also hypothesized that there is likely to be a relationship between organizational commitment and turn-
over intentions. on the other hand work- related quality of life is likely to mediate the relationship
between organizational cynicism, organizational commitment and turn-over intentions. this research
aims to add to the information in this area by exploring how cynicism affects quality of working life and
organizational commitment and turn-over intentions

Aims and objectives


To find the relationship of organizational cynicism with work related quality of life
To find the relationship of organizational cynicism with organizational commitment.
To find the relationship of organizational commitment with turn-over intention.
To see the mediating role of work related quality of life between organizational cynicism,
organizational commitment and turnover intentions..

Hypothesis
There is likely to be a relationship between organizational cynicisms and work related quality of life.
There is likely to be a relationship between organizational cynicism and organizational commitment.
There is likely to be a relationship between work related quality of life and organizational
commitment.
There is likely to be a relationship between organizational commitment and turn-over intention.
Work related quality of life is likely to mediate the relationship between organizational cynicism and
organizational commitment and its outcome turn-over intention.

2. Method

Research Design: The present study was done through co-relational research design to assess the
relationship of organizational cynicism, work related quality, organizational commitment of life and turn-
over intentions in non-academic staff members.

Sample: Non- probability purposive sampling technique was adopted for the collection of data.
Data will be taken from the non-academic staff on 17th grade position from different private institutions
of Lahore. The age range would be between 25 to 45 years.

Inclusion criteria
Only private institutions were included
Only permanent employees were selected

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Minimum experience of 3 years were included


Both genders were included

Exclusion criteria
Public institutions were not included
Less than 3 years experience were excluded
Contract based employees were excluded

Operational Definitions of Variables

Organizational cynicism. Organizational cynicism can be described as a pessimistic approach toward


ones working association, a faith that the company devoid of honesty, negative affect toward ones
working company, leaning to disapproving serious actions toward the company which were steady with
these attitude and affect (Dean, Brandes & Dharwadkar, 1998).
Work related quality of life. Quality of working life is that component of on the whole quality of life that
is inclined by world, the broadest context in which a worker would assess the affect of work on their life.
It covers a wide range of quality of working life factors across work and non-work life domains (Edwards,
Laar & Easton, 2009).
Organizational commitment. Organizational commitment focuses on employees commitment to the
organization and it is an emotion of commitment, readiness to go further, and intent to continue with the
company over long duration of time (Meyer & Allen 1997).
Turn-over intention. Turnover intentions are the thoughts of the employees regarding voluntary leaving
the organization (Camman, Fichman, Jenkins, & Klesh, 1979).

Measures

Demographics information questionnaire. Self-developed questionnaire form was used to get


information about age, gender, education, number of years working in current company, work
experience, salary, marital status, number of children (if married) and family system.
Organizational cynicism scale (OCS). The Organizational Cynicism Scale (OCS) was introduced by
Brandes, Dhartwadkar and Dean (1999). It is a five-point Likert- type scale ranging from never to
always, and including of 13 items within three subscales called cognitive, affective, and behavioral. The
affect items describe destructive feelings such as agony, rage and hatred. Belief items represent cognitive
assessments that workers have about the honesty and authenticity of their working association.
Behavioral items refer to serious and disapproving behaviors linked with organizational cynicism.
Work related quality of life (WRQoL) scale. The work-related quality of life (WRQoL) was developed
by Edwards, Laar and Easton (2009). It is a 5- point likert scale from strongly disagree (1) to strongly
agree (5). It has 36-item used to determine the perceived quality of life of workers as measured through
seven psychosocial sub-factors. These factors are job and career satisfaction (JCS), general well-Being
(GWB), stress at work (SAW), control at work (CAW), home-work interface (HWI), employee engagement
(EEN) and working conditions (WCS).
Organizational commitment questionnaire (OCQ). Organizational commitment questionnaire was
developed by Meyer, Allen and Smith (1993). This questionnaire has 18 items andit was self-scored.
Responses to each of the items are rated using a 7-point Likert scale with anchors labeled as 1 = strongly
disagree to 7= strongly agree. The scale consisted of three subscales i.e. affective commitment, continuous
commitment and the normative commitment.
Turnover intention scale. Turnover Intention Scale was developed by Camman, Fichman, Jenkins and
Klesh (1979) was used to measure turnover intention of employees (Example itemI often think about
quitting). It is a 3-item scale ranging from Strongly Disagree (1) to Strongly Agree (5).

Procedure: Before proceeding with the data, permission was sought for the use of Organizational
Cynicism Scale, Work-related Quality of Working Life Scale, Organizational Commitment Questionnaire
and Turn-over intention Scale from the respective authors. Data was taken from the non-academic staff
on 17th grade position from different private institutions of Lahore. Non-probability purposive sampling
was used as the choice of the sample is dependent upon the accessibility of the sample. The age range
would be between 25 to 45 years. The inclusion criterion included members of both genders between
these two age groups as well as with the work experience of at least three years. Prior to collecting data,
official permission was taken from the concerned authorities of these institutions for data collection by

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using the permission letters. Schedule was set with the authorities of the respective institutions from
which the data were collected. Data was collected in the office setting from the participants. Each
questionnaire consists of a Consent form, which was signed by every participant before responding to the
questions. The demographic and socioeconomic information about the respondents was also acquired.
This included age, gender, education, number of years working in current institution, work experience,
salary, marital status, number of children (if married) and family system. They were thoroughly informed
about the purpose of the research. After that questionnaires were provided to them which were properly
explained and questions will be welcomed. It will take approximately 20 to 25 minutes to complete the
questionnaire. After the completion of the data collection process, data was entered and statistical
analysis was conducted to analyze the said data.

3. Results

It was hypothesized that there is likely to be a relationship between subscales of organizational cynicism
(affective cynicism, cognitive cynicism and behavioral cynicism) and work related quality of life (control
at work, employee engagement, general well-being, homework interface, job career satisfaction, stress at
work and working conditions).Furthermore, it was also hypothesized that there is likely to be a
relationship between subscales of work related quality of life (control at work, employee engagement,
general well-being, homework interface, job career satisfaction, stress at work and working
conditions)and organizational commitment (affective commitment, continuous commitment and
normative commitment).Moreover it was also hypothesized that there is likely to be a relationship
between subscales of organizational cynicism (affective cynicism, cognitive cynicism and behavioral
cynicism) and organizational commitment (affective commitment, continuous commitment and
normative commitment) . In addition to it was also hypothesized that there is likely to be a relationship
between subscales of organizational commitment (affective commitment, continuous commitment and
normative commitment) and turnover intention. To find out the relationship Pearson Product Moment
correlation analyses were applied. The results are shown in table 4.1

Table 1: Pearson Product Moment Correlation between Study Variables (N=150)

Variable 1 2 3 4 5 6 7 8 9 10 11 12 13 14
- .47** .45** - - - -.44* -.08 -.00* - - - - -.00*
Aff. CYN .32** .11** .48** .48** .11** .15** .17**
- - .29** - - - - .01 -.30 - -.21 - - .02
Cog.CYN .28** .12** .32** .31** .29** .04** .10**
- - - -.03 -.61* - -.20* .10 - -.20 -.84 -.21* - -.09*
Beh.CYN .20** .28** .15**
- - - - - .58** .54 - .54** .44 .13 .01** .12** .01
CAW .10** .14**
- - - - - .07* .07 -.01 -.04 -.02* -.03 .09 .05* -.12
EEN
- - - - - - .65 - .71** .74* .12** .02** .13** -.02
GWB .06**
- - - - - - - - .66** .61* .01** .00** .09** -.05
HWI .09**
- - - - - - - - -.04 -.02 .03 -.03 .00 -.21
JCS
- - - - - - - - - .73** .03** - .07** .089
SAW .01**
- - - - - - - - - - .20** .02** .177 -.00*
WCS
- - - - - - - - - - - .56 .74 -.18
Aff. COT
- - - - - - - - - - - - .71* -.17
Cont.
COT
- - - - - - - - - - - - - -
Norm. .20**
COT

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- - - - - - - - - - - - - -
TOI

*p<.05, **p<.01, **p<.001


Note. CYN= Organizational Cynicism, Aff. CYN =Affective cynicism, Cog.CYN =Cognitive Cynicism, Beh.CYN
=Behavioral Cynicism, WQOL =Work related quality of life, CAW =Control at work, EEN=Employee
engagement, GWB=General well-being, HWI=Home work interface, JCS= Job career satisfaction,
SAW=Stress at work, WCS= Working conditions, COT=Organizational commitment, Aff. COT=Affective
commitment, Cont. COT=Continuous commitment, Norm. COT=Normative commitment, TOI= Turn over
intention

The result showed that affective cynicism and cognitive cynicism has significant negative relationship
with control at work, employee engagement, general well-being, homework interface, stress at work and
working conditions but non-significant relationship with job career satisfaction. Moreover, behavioral
cynicism has also significant negative relationship with employee engagement, stress at work, general
well-being, homework interface but non-significant relationship with control at work, job career
satisfaction and working conditions. Furthermore, affective cynicism has significant negative relationship
with normative, affective and continuous commitment. On the other hand, cognitive and behavioral
cynicism has significant negative relationship with affective and normative commitment but non-
significant relationship with continuous commitment. Meanwhile, affective and behavioral cynicism has
significant negative relationship with turnover intentions whereas cognitive cynicism has non significant
relationship with turnover intentions.

Whereas, general wellbeing and homework interface and stress at work has significant relationship with
affective, continuous and normative commitment. While, job career satisfaction has non-significant
negative relationship with affective, continuous and normative commitment. Control at work has
significant negative relationship with continuous and normative commitment. Furthermore, employee
engagement has significant relationship with normative commitment but non-significant relationship
with affective and continuous commitment. Working conditions has significant relationship with affective
and cognitive commitment but non-significant relationship with normative commitment. Meanwhile,
affective and continuous commitment has non significant relationship with turnover intention whereas
normative commitment has significant negative relationship with turnover intention. Moreover, it was
hypothesized that work related quality of life is likely to mediate the relationship between organizational
cynicism and organizational commitment and its outcome turn-over intention. In the Model 1 subscales of
cynicism (affective cynicism, cognitive cynicism and Behavioral cynicism)were added as exogenous
(Independent) variables whereas seven dimensions of work related quality of life (control at work ,
employee engagement, general well-being, homework interface, job career satisfaction, stress at work
and working conditions) were included as endogenous variables specifying work related quality of life as
mediators and three subscales of organizational commitment (affective commitment, continuous
commitment and normative commitment) and turn over intention as the outcome variable. Path analysis
using AMOS was used to estimate Model 1 fit presented in table 2. For the construction of the paths for
mediation model, the correlation matrix and theoretical background was referred. Initially the identified
model had a significant value. So, the model was modified according to the modification indices
provided by AMOS; error variances were correlated among each mediator and dependent variable
separately. Chi-square change for the first and last model were also significant indicating the
improvement in the model. Following are fit indices of the final mediation model:

Table 2: Model Fit Indices for Organizational cynicism, Work related quality of life and
Organizational commitment (N=150)
RMSEA
Model P df CFI TLI (90 % CI)

1 : Partial
mediation 38.95 .003 18 .93 .90 .08
Note . N=150, All change in chi square values are computed relative to model,>.05.CFI=comparative fit
index; TLI=Tucker-Lewis Index; RMSEA=root mean square error of approximation; CI=confidence
interval.

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The results indicated that organizational cynicism and organizational commitment is mediated by work
related quality of life. As shown in table 3.3 partial mediation model (18, N=150) = 38.95, p =.003. The
fit indices were considered to provide an indication of moderate fit of the data with the tested model. The
paths for the model were based on the results of co-relational analysis between subscales of
organizational cynicism, work related quality of life, organizational commitment and turn over intentions.
The paths of Meditational model were analyzed through direct and indirect effects of study variables. For
direct effects path coefficients, it was hypothesized that organizational cynicism is likely to predict
organizational commitment. As shown in figure 1, direct effect path coefficients yielded significant
regression coefficients of predicting continuous commitment (B = -.20, p =.05) from behavioral cynicism
whereas non-significant regression coefficient of predicting normative commitment from cognitive
cynicism as (B = .06, p =.46), and affective commitment from affective cynicism as (B=-0.01, p= .93).

It was also hypothesized that organizational cynicism is likely to predict the mediator i.e. work related
quality of life. Results revealed that behavioral cynicism (B=.21, p = .04) was significant predictor of job
career satisfaction whereas affective cynicism (B = -.20, p= .06) was non- significant predictor of job
career satisfaction. Affective cynicism was significant predictor of stress at work (B=-.39, p = .00)
whereas, cognitive cynicism (B =-.06, p= .26) was deemed to be non-significant predictor of working
conditions. It was also hypothesized that work related quality of life is likely to predict organizational
commitment and turn over intention. Results indicated that working conditions was a non significant
predictor for normative commitment (B= .20, p = .08) and turn over intentions (B= -.00, p = .89) .In
addition to this stress at work was a significant predictor for normative (B-= .05, p= .03) and turn over
intention (B=.31, p = .04). For Indirect effects, the significant path coefficient for affective cynicism to
stress at work was (B=-.39, p = .00) and from stress at work to normative commitment was (B-= .05, p=
.03) and from normative commitment to turnover intention B=.31, p = .04. Hence, stress at work acted as
a mediator explaining relationship of affective cynicism, normative commitment and turnover intentions.
The structural illustration of the model is shown in figure 2.

Figure 1: Empirical Results from a Complex Multivariate Model representing Standardized Regression
Coefficients

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Note. A complex multivariate model of three endogenous variables and three exogenous variables.
Completely standardized maximum likelihood parameter estimates. The residual variance components
(error variances) indicate the amount of unexplained variance. Thus, for each observed variable, R= (1-
error variance); Affective CYN =Affective cynicism, Cognitive CYN =Cognitive Cynicism, Behavioral CYN
=Behavioral Cynicism, Job career satisfaction QOWL= Job career satisfaction work related quality of life,
Working conditions QOWL= Working conditions work related quality of life, Affective COT=Affective
commitment, Continuous COT=Continuous commitment, Normative COT=Normative commitment.

Discussion: In Pakistan most of the researches have tended to focus on cynicism, work related quality of
life and organizational commitment separately and limited literature exists regarding the relationship
between organizational cynicism, work related quality of life and organizational commitment in targeted
population. So, the objective of the present study was to explore the relationship organizational cynicism,
work related quality of life, organizational commitment and turn over intentions in employees. It was
hypothesized that there is likely to be a relationship between subscales of organizational cynicism
(affective cynicism, cognitive cynicism and behavioral cynicism) and work related quality of life (control
at work, employee engagement, general well-being, homework interface, job career satisfaction, stress at
work and working conditions). The result showed that affective cynicism and cognitive cynicism has
significant negative relationship with control at work, employee engagement, general well-being,
homework interface, stress at work and working conditions but non-significant relationship with job
career satisfaction. Moreover, behavioral cynicism has also significant negative relationship with
employee engagement, stress at work, general well-being, homework interface but non-significant
relationship with control at work, job career satisfaction and working conditions.

According to Hochwarter, James, Johnson and Ferris (2004) they drew a conclusion that those having
elevated levels of trait cynicism, politics perceptions were connected with lower job satisfaction scores
and less contribution in citizenship behaviors. In the same way Wanous, Reichers and Austin (1994) also
measured that workers who are more cynical toward companies, express less enthusiasm to put forth
efforts, anticipate less individual accomplishment, and recognize less important intrinsic and extrinsic
rewards and have low quality of working life. In the above mentioned results, all the dimensions of
organizational cynicism and work related quality of life possess negative relationship thats why it was
discussed as a whole. The reason of negative relationship might be that the cynical attitude of employees
towards their organization affects their quality of working life. The disturbed quality of working life de-
motivates the employees to work effectively for the organization.

It was hypothesized that there was likely to be a relationship between subscales of organizational
cynicism (affective cynicism, cognitive cynicism and behavioral cynicism) and organizational
commitment (affective commitment, continuous commitment and normative commitment). The result of
present study showed that affective cynicism has significant negative relationship with normative,
affective and continuous commitment. On the other hand, cognitive and behavioral cynicism has
significant negative relationship with affective and normative commitment but non-significant
relationship with continuous commitment. The hypothesis was supported by the research findings that
there was a negative relationship between organizational cynicism and organizational commitment.
According to Mirvis and Kanter (1986); Bishay (1996) ; Nassir and Bashir (2013) and Barnes (2010)
employees who held cynical attitudes were less productive, low organizational commitment and have low
morale. Moreover, dissatisfied employees with negative attitudes will ultimately leave the organizations.
These researches are consistent with the result of present study. The possible reason could be that as in
our society, organizational structure was not according to the demand of employees and they have
negative emotions towards a firm. Thats why they were not committed and didnt want to continue with
organization.

According to the third hypothesis there was likely to be a relationship between subscales of work related
quality of life (control at work, employee engagement, general well-being, homework interface, job career
satisfaction, stress at work and working conditions) and organizational commitment (affective
commitment, continuous commitment and normative commitment). The result findings showed that
general wellbeing and homework interface and stress at work has significant relationship with affective,
continuous and normative commitment. While, job career satisfaction has non-significant relationship
with affective, continuous and normative commitment. Control at work has significant negative
relationship with continuous and normative commitment. Furthermore, employee engagement has
significant relationship with normative commitment but non-significant relationship with affective and

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continuous commitment. Working conditions has significant relationship with affective and cognitive
commitment but non-significant relationship with normative commitment. Result support the findings of
Martin and Roodt (2008) who utter that workers rate certain working conditions, and if these conditions
are obvious workers will be more satisfied and committed towards the organization. Thus the working
conditions have a great impact on the organizational commitment. Similarly for the dimension of general
well- being the previous researches also confirms the results as documented by Ajay, Sabir and Cary
(2009) that wellbeing will have significant relationship with affective, normative and continuous
commitment. In addition to, the previous literature provides an evidence for the job satisfaction and
working conditions dimensions. The results for these dimensions were in not in accordance with the
research findings conducted by Lumley, Coetzee, Tladinyane and Ferreira (2011) explored the
relationship between job career satisfaction and organizational commitment of employees concluded that
job career satisfaction has significant positive relationship with affective and normative commitment
except continuous commitment.

According to Fourth hypothesis, there is likely to be a relationship between organizational commitment


and turn-over intention. Results proved that affective and continuous commitment has non significant
relationship with turnover intention whereas normative commitment has significant negative
relationship with turnover intention. The results were in consistent with result findings that low levels of
commitment will leads to outcomes such as willingness to search for another job, intention to leave, and
turnover (Bluedorn,1982; DeCotiis and summers 1987;Hom et al,1979; Ingram and Lee, 1990; Sager
1990; Park, Christie, & Sype, 2014; DeConinck & Bachmann, 2014). According to the fifth hypothesis
Work related quality of life is likely to mediate the relationship between organizational cynicism and
organizational commitment and its outcome turn-over intention. Results revealed that stress at work
(dimension of work related quality of life) mediates the relationship between affective cynicism and
normative commitment and its outcome turnover intention. Previous literature favors the relationship
between these three variables through pathways. Mirvis and Kanter (1986); Bishay (1996) ; Nassir and
Bashir (2013) and Barnes (2000) concluded that employees who held skeptical approach were less
dedicated to the organization, involved in fewer behaviors away from their job responsibilities, and were
more likely to depart the job, thus confirming predicted relationships. Similarly Mottaz (1998) conducted
a study which is concerned with assessing the relative importance of various influences on organizational
commitment. His result indicated that stress at work , exhaustion and fatigue has a strong negative effect
on the commitment. Thus the stress at work determines the employees commitment or affiliation to stay
committed in their organization. On the other hand Bluedorn,1982; DeCotiis and Summers 1987; Hom et
al,1979; Ingram & Lee, 1990; Sager 1990; Park, Christie, & Sype, 2014; DeConinck & Bachmann, 2014
concluded that low commitment will lead to turnover intention. This research is in accordance with the
meditational hypothesis. Hence it was proved by the previous literature that the stress at work mediate
the relationship between organizational cynicism and organizational commitment and its outcome
turnover intention. The study has provided clear framework of factors contributing in organizational
cynicism, work related quality of life, organizational commitment and its outcome turnover intention. The
findings revealed that stress at work acted as a mediator explaining relationship of affective cynicism,
normative commitment and turnover intention. The results also shown that there was negative
relationship between organization cynicism, work related quality of life, organizational commitment and
its outcome turnover intention.

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The Influence of Social Support on Entrepreneurial Inclination among Business Students


in Indonesia

MuhammadAmsal Sahban, Subramaniam Sri Ramalu, Ruswiati Syahputra


STIM Lasharan Jaya Makassar, Indonesia
University of Utara Malaysia, Sintok, Kedah, Malaysia
amsalsahban@gmail.com

Abstract: The objective of this study is to investigate the influence of social support on students
inclination toward entrepreneurship. It also aims to test whether gender can moderate the relationship
between SS and entrepreneurial intention among business students in Indonesia. Quantitative analysis
was conducted using SPSS version 22. This study conveniently distributed 1,230 self-administrated
questionnaires to the business students at public and private universities in Indonesia. This data
collection process yielded back with 381 usable responses that were used in the statistical analysis for
assessing the relationship between SS and EI as well asthe difference between male and female students
in terms of entrepreneurial intention.This study reveals that, there is a positive relationship between
social support system and students inclination toward entrepreneurship and there is a difference
between male and female students in terms of entrepreneurial intention.

Keywords: Social Support, EntrepreneurialIntention, Business Students, Quantitative Study

1. Introduction

Entrepreneurship is a worldwide phenomenon closely associated with economic growth. Entrepreneurs


are the engines that can accelerate economic growth (Acs, 2006; Baron & Shane, 2008). They have
brought about enormous positive contributions to a country's economic growth and social development.
As mentioned by Morrison, Breen and Ali (2003), entrepreneurs play a pivotal role in creating jobs,
innovating, creating wealth, improving health and even in economic advancement. Since
entrepreneurship is synonymous with self-employment, it is believed to be an effective strategy for
handling the issue of employability, particularly among the youth (Koe, Saari, Majid & Ismail, 2012).
Entrepreneurship entities enable reduction in the unemployment rate or what has been termed as the
Schumpeter Effect (Musa & Semasinghe, 2013; Schumpeter, 1934). Apart from that, the unemployment
rate among youngsters continues to grow nowadays since the number of youth in Indonesia aged below
30 years dominates more than half of the total population. Consequently, Indonesia has a huge number of
workforces. This can trigger a demographic disaster if these workers cannot be absorbed by industries
(Indonesia-investments, 2015).

The World Bank representative recently gave a warning on Indonesias unemployment problem among
youth. It is due to the fact that the highest rate of unemployment in Indonesia is dominated by people
aged 15 to 24 years. This is very ironic since the fresh university graduates, vocational school graduates
as well as secondary school graduates face difficulty in looking for a job (Indonesia-investments, 2014).
Based on the report, there are around 20% of Indonesia's young men and one-third of the young women
beingneither unemployed nor going to school. The total number of young men aged 15 to 24 years in
Indonesia reached approximately 20.5 million; and the total number of young women aged 15 to 24 years
is around 20.2 million. Although the number of unemployed females has reduced significantly compared
to their male counterparts, gender disparity is still a challenge in Indonesia. Despite several key areas like
education and health showing considerable progress, there are still many women working in the informal
sector (twice as many as the number of men). Moreover, they are paid lower wages compared to men for
similar work (Indonesia-investments, 2014). However, economic development cannot be realized
without active participation of women in all segments of life (Sarfaraz, Faghih & Majd, 2014). Many
scholars have agreed that women can play a pivotal role in entrepreneurship activities. Womens
contribution to economic development mainly depends on equal support as for men from relevant
institutions. Despite women comprising about 50% of the worlds population, they have less opportunity
to take part in decision-making (Revenga & Shetty, 2012). Since 2008, i.e. after the financial crisis,
women have been experiencing greater difficulties in earning capital than men and the economic crisis
has had an adverse impact on women (Pines, Lerner, & Schwartz, 2010). Further, Pines et al. (2010)
found that the number of women entrepreneurs is less than men.

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The proportion of female entrepreneurs is higher in countries where the general income per capita is at a
lower level, where women have to work for a living. However, Balea(2015) argued that women are
starting to change the scenario nowadays in terms of an entrepreneurship career even though there are
still only a few studies that have focused on the factors influencing entrepreneurial intention among
female students (Aaijaz & Ibrahim, 2013). Thus, there is a need to do further investigation to figure out if
there is any difference in terms of gender and entrepreneurial intention, especially among young
business students in Indonesia. Linking education and entrepreneurship with academic institutions
clearly points out that universities have become strategic places to nurture entrepreneurial spirit among
students (Nastiti, Indarti, & Rostiani, 2010). Universities have a crucial role in enhancing entrepreneurial
education in order to encourage the students to become self-employed once they graduate from
university. Therefore, the purpose of higher education institutions is not only to produce graduates to
become job seekers, but also job creators. The small number of entrepreneurs in Indonesia indicates the
lack of entrepreneurship among the academic community, including their activities in the university
environment. The discourse and application of the entrepreneurial university are becoming hot topics in
the academic world. However, many of the universities focus on academia and few have plunged into the
world of practitioners and entrepreneurship. Among 2,679 private universities and 82 state universities
in Indonesia, only a few universities are concerned with the importance of entrepreneurship on campus
(Kuswara, 2012). Of the 4.8 million university students in Indonesia, only 17.4% have the right
entrepreneurial spirit and orientation to venture into entrepreneurship after completing their studies.
Meanwhile, more than 83% of university graduates in 2012 preferred to become employees in any of the
leading companies or government institutions (Amrullah, 2012; Subachtiar, 2013; Sutarto, 2012;
Temonsoejadi.com, 2013). Interestingly, the industries are only able to accommodate up to 10-15% of
the university graduates each year. As a result, the rate of the educated unemployed increases every year
(Yusuf, 2012).

According to Indarti(2004), entrepreneurial intention of students in Indonesia is weak. This is reinforced


by Hidayat (as cited in Masykur, 2007) who claimed that most students do not have a plan for being self-
employed and are more likely to work in large companies. Intention plays a distinctive role in directing
action or behavior. Entrepreneurial intention plays a pivotal role as the link between consideration to
engage in entrepreneurship and the entrepreneurial activities conducted by the entrepreneurs
themselves (Supatra, 2009). Apart from that, the social support system is considered as a vital aspect for
developing entrepreneurial intention. Some related aspects, like environmental support and parental
support, play an important role in influencing a person's desire for entrepreneurship (Indarti & Rostiani,
2008; Lee, Wong, Foo, & Leung, 2011; Suharti & Sirine, 2011). This opinion is reinforced by
Kasmir(2006), who stated that the support of family, especially parental support, is imperative to
increase the motivation to become an entrepreneur. Thus, family support is a primary driving force to
foster students mind-set and motivation (Kasmir, 2006). The jobs of parents are also instrumental for
career choice of their children afterbeing graduated from college. According to
Mustikawati&Bachtiar(2008), parents play an undeniably significant role in providing support and
motivation to their children to enable them to be socially competent, confident and responsible to realize
their intentions to become entrepreneurs. However, studies have found that the presence of significant
social risk experienced by an individual in setting up a business is an anxiety of being degraded and
derided when the risk of failure is imminent and this will lead to negative opinions of their inability
(Phikala&Vesatlenein, as cited in Astuti, 2009). They lack parental support because parents prefer for
their children to be employed rather than being self-employed. Mustikawati&Bachtiar(2008) found that
a number of parents go against their childrens wishes to become entrepreneurs and unconsciously try
to impose their will on their childrens desire.

Students do not have support from their family and friends to do entrepreneurial activities. Instead, their
parents and friends always discourage them when they want to start a business (Astuti, 2009;
Mustikawati & Bachtiar, 2008; Susanti, 2012). Most of the parents of university graduates associate the
prospects of being an entrepreneur with high risks (Hartanto, 2011). Such pessimistic supposition could
sometimes be a hindrance and discourage the children from initiating an entrepreneurship project.
Amalia(2012) found through her study that students tend to display low self-confidence in their ability to
become entrepreneurs. They lack parental support because parents have a preference for their children
to be employed rather than be self-employed. Mustikawati&Bachtiar(2008) found that a number of
parents go against their childrens passionto become entrepreneurs and unconsciously try to impose
their will on their childrens desire because being an entrepreneur is perceived as a less prestigious
profession in Indonesia, although entrepreneurship activities can significantly contribute to GDP.

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Economic development cannot be realized without active participation of women in all segments of life
(Sarfaraz, Faghih & Majd, 2014). Many scholars have agreed that women can play a pivotal role in
entrepreneurship activities. Womens contribution to economic development mainly depends on equal
support as for men from relevant institutions. Despite women comprising about 50% of the worlds
population, they have less opportunity to take part in decision-making (Revenga & Shetty, 2012). Since
2008, i.e. after the financial crisis, women have been experiencing greater difficulties in earning capital
than men and the economic crisis has had an adverse impact on women (Pines, Lerner, & Schwartz,
2010). Further, Pines et al. (2010) found that the number of women entrepreneurs is less than men. The
proportion of female entrepreneurs is higher in countries where the general income per capita is at a
lower level, where women have to work for a living. However, Balea(2015) argued that women are
starting to change the scenario nowadays in terms of an entrepreneurship career even though there are
still only a few studies that have focused on the factors influencing entrepreneurial intention among
female students (Aaijaz & Ibrahim, 2013). Thus, there is a need to do further investigation to figure out if
there is any difference in terms of gender and entrepreneurial intention, especially among young
business students in Indonesia.

2. Literature Review

Social Support: Much of the literature on entrepreneurship refers to social support as a potential
entrepreneurs beliefs and expectations about the assistance and advice that he/she may receive from
his/her social groups(Rani, 2012; Sahban, Kumar, & Sri Ramalu, 2014). These social groups include
primary groups, such as parents, siblings,and spouse; and secondary groups, such as reference groups,
comprising friends, colleagues and teachers. Social support is supposed to help and assist the potential
entrepreneur in setting up a business or running its activities (Len, Descals & Domnguez, 2007).Sarason
et al. (1987) defined social support as the intensity of interaction of entrepreneur with his/her friends
and family to whom he/she feels attached to. In other words, social support is the extent of assistance and
attachment of an individual with the social group he/she interacts with directly or indirectly who make
that individual feel loved and/or cared. Social support, therefore is considered as building blocks for
social and psychological integration of entrepreneurs in the society. Experts have classified social
support into two main dimensions: support by family; and support by peer groups(Ismail et al., 2013;
Rani, 2012; Zafar, Yasin, & Ijaz, 2012). Social support from these sources tends to play various roles and
functions and has different outcomes. Both family and friends support needs to be considered
distinctively because different cultures ascribe a different level of reliance on or benefits from both
sources (Procidano & Heller, 1983).

Family Support: When an individual intends to initiate a new venture, he/she seeks support from
multiple sources. Sources of support for the entrepreneurship activity of individuals are usually family,
partner and peers to whom they can trust to share the entrepreneurship ideas, the potential problems to
be encountered along with the way and the means to handle these issues (Mustikawati & Bachtiar, 2008).
Accordingly, as the closest environment, the support of family can synergize the interest in
entrepreneurship. The family plays a pivotal role in inspiring children to choose entrepreneurial
careers; parents also tend to encourage their children to take a more challenging career that allows self-
freedom and independence (Buang & Yusof, 2006). Families play a crucial part in the new venture
creation process. The role of family support, therefore, needs more consideration by research studies
focusing on understanding entrepreneurship. The family relationships serve as strongest business ties in
the business networks. Thus, the family of an entrepreneur is considered as offering a number of
resources, ranging from professional to non-professional resources, which have a strong effect on new
venture creation and its activities.As mentioned by Anderson and Jack (2005) family takes a substantial
part in new venture creation; this is due to the strong relationship among family members. Steward
(2003) offered the most comprehensive assessment of the role of family support in the entrepreneurial
circle. This study has observed the benefits of the family network which include extensive tacit
knowledge, commitment, access to information and ability to take risks in entrepreneurial efforts.
According to Granovetter (1973), the literature on entrepreneurship distinguishes between two elements
of network ties which are required for a result oriented entrepreneurial circle. Those people who have
close personal relationship and interact quite frequently with other are considered as strong ties
network. On the other hand, those people who have a big gap emotionally and make interaction
infrequently are considered as weak ties network. Strong relationship usually comes from friends or
family, while weak links are mostly associated with business colleagues.

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Peer Group Support: Mead (2001) explained peer support as an ecosystem of exchange of help based on
principles of mutual respect and shared responsibility, and shared an understanding of resulting benefits.
In this way, peer support is not just based on psychological models but it is more about expressing
concerned understanding towards each others issues. It is the feeling of affiliation that individuals in the
network have with each other and feel connected with others in a supportive manner. The feeling of being
connected or affiliated is founded on a mutually respectful relationship which makes the members learn
from each other without being limited by the constraints of traditional relationship. It is therefore
imperative that peer group is the point of social interaction between potential entrepreneurs and its
advisors. Individual entrepreneurs tend to take decisions to create a new venture because of the influence
of their peers. Peer groups consist of people who are already in business and they are supposed to
provide technical advice and help to create a supportive environment for business start-up by potential
entrepreneurs (Bnte, Falck & Heblich, 2009). The peer pressure in business results in positive
influences by other social entities in the business eco-system, such as media and social networks. It
therefore becomes easier for potential entrepreneurs to assume risk, experiment innovation and take
business initiatives.

Manski (as cited in Falck et al., 2009) categorized effects of social interaction into two major forms. First
is endogenous effects, which refer to the influence or prevalence of a certain group behaviour on
individual behaviour. It is explained as the situation where peer groups entrepreneurial intentions
influence an individuals intention to become an entrepreneur. Second, an exogenous effect, also termed
as the contextual effect, which is the influence of reference groups on youths behavioural intentions to
become an entrepreneur. The model developed by Manski (as cited in Falck et al., 2009) explains the
effects of peer groups contextual characteristics, such has their family and social situation influences on
an individuals entrepreneurial intentions. These exogenous or contextual effects tend to arise from
students spending time in their peers homes or business offices and thus becoming exposed to
entrepreneurship. This influences them to consider entrepreneurship as a career option compared to
those students who are not exposed to such influence.

Entrepreneurial Intention: Entrepreneurial intention refers to the initial step in the process for
establishinga business that is generally long-term (Lee & Wong, 2004). Krueger (1993) said that
entrepreneurial intention refers to ones commitment to start a new business and is a central issue that
needs to be considered to understand the process of establishing a new business. Entrepreneurial
intention has recently started to receive attention because it is believed that a behavioral intention is is a
reflection of the actual behavior. Therefore, entrepreneurial intention can be interpreted as the procedure
for finding information that can be used to achieve the purpose of establishing a business (Katz & Gartner,
1988). An individual with the propensity start a business will have the willingness compared to one who
does not have the desire to commence a new venture. Krueger, Reilly and Casrud(2000)poisted that
intention is found to be a strong predictor of entrepreneurship behavior. Desirability can also be used as
a fundamental approach to understand anyone who is in entrepreneurship (Choo & Wong, 2006). The
study by Lee and Wong (2004) emphasizes that entrepreneurial desires or intentions are the initial steps
in the long-term process of establishing and running a new venture. A person who has an interest in
entrepreneurship will be more prepared and aggressive in efforts to set up a business than others who do
not have the interest in entrepreneurship (Nastiti et al., 2010). Gurbuz and Aykol(2008) defined
entrepreneurial intention as one's desire to engage in entrepreneurial activities, or in other words, to be
self-employed.

Accordingly, based on the definitions of entrepreneurial intention above, it can be inferred that having an
interest in entrepreneurship is a critical determinant in the formation of an individuals tendency to
initiate and run a business. If a person does not have an interest in entrepreneurship, then everything
that will be done related to the entrepreneurship process will be more severe than the one who has an
interest in entrepreneurship (Segal, Borgia & Schoenfeld, 2005; Shane, Locke & Collins, 2003). Essentially,
entrepreneurship is the same thing as a job. If an individual likes the job, then of course, he or she will
focus on running the processes as well as overcoming any hindrances and obstacles. Indarti and
Rostiani(2008) examined the entrepreneurial intentions by looking at three things: (i) personality
characteristics; (ii) demographic characteristics; and (iii) environmental characteristics. Personality
characteristics include the need for achievement and self-efficacy, whereas demographic characteristics
include age, gender, educational background and individual work experience to determine ones
entrepreneurial intention. Environmental characteristics include social relationships, physical
infrastructure and institutional as well as cultural factors.On the other hand, Mustikawati and

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Bachtiar(2008) adopted the theory of Meredith (2002). This study states that entrepreneurial intention
refers to the entrepreneurial characteristics of a person. These features include confidence, task-
orientation and the outcomes, risk taking, leadership and originality.

Linking Social Support to Entrepreneurial Intention: Social support is a concept which is widely
deliberated and discussed and has been described in the available literature as one of the determinants of
an individuals behaviour(Sahban, Kumar, & Ramalu, 2015). Greeve and Salaf(2003) suggested that a
business takes more benefits from family members in the start-up phase. Other studies have described
the strong positive impact of family members on entrepreneurial intention because they are the first
source of sharing and discussing new business ideas and initial feedback (Aldrich, Reese & Dubini, 1990;
Rosenblatt, de Mik, Anderson & Johnson, 1988).Fayolle et al. (2006) and Leon et al. (2007)found that
students have better intention in dealing with entrepreneurship after having been exposed to
entrepreneurship through their family.According to Rani (2012), family support has a strong influence on
opportunity recognition, new venture creation, business decision-making and resource mobilization. As
mentioned by Davidsson and Honig (as cited inBaughn, Cao, Le, Lim, & Neupert, 2006), social support by
family and friends, as well as by parents owning a business, have been shown to be related to the
occurrence of entrepreneurs. The role of close friends and family may be even more substantial than the
general normative support in driving an individuals perceived desirability to commence a new venture.
Greve and Salaff(2003) emphasized the prominence of the family in the entrepreneurial social
circle.Habsah and Faudziah (as cited in Rani, 2012) did a study among alumni students in Universiti Utara
Malaysia. The respondents admitted that their spouse, parents and relatives encouraged them to take up
a business. Habsah and Faudziah also revealed that the students who are not interested in
entrepreneurship can be influenced by people around them in making an entrepreneurial decision.
Therefore, their kin play a substantial role in their entrepreneurial decision.

Mustikawati and Bachtiar(2008) conducted a study that aimed to demonstrate empirically whether there
exists any association between social support (parents) and the entrepreneurial intention of vocational
students. The results of their study indicated a significantly positive influence of social support (parents)
on entrepreneurial intention among vocational students. The result of this study shows that the greater
the social support provided by parents to their children, the greater the interest of vocational students to
be involved in entrepreneurship. Further, Suharti and Sirine(2011) asserted that there is a strong
potential role of contextual factors, such as academic support and social support, in entrepreneurial
intention among the students. In many cases, an entrepreneurs primary group members, such as family
or extended family members provide him/her with the required capital along with other kinds of
business support i.e., source of supply of materials, access to new markets and new product ideas and
access to technology (Dyer & Handler, 1994; Zafar et al., 2012). Another determinant of
entrepreneurship attitude is prior exposure to business activity in the form of early exposure to the
family business (Krueger, 1993). The study by Drennan, Kennedy and Renfrow(2005) identified that the
perceptions about starting a new business are desirable for those who have expressed a positive posture
of their familys business. Their study further described that early childhood experiences, such as
adversity and frequent relocation, have significantly positive influence on an individuals attitude toward
entrepreneurship. Other factors, such as prior exposure to business activities and prior attempt to start a
new business have positive effects on the attitude towards entrepreneurship.

Researchers who have studied the influence of familial factors on entrepreneurial intention seem to have
focused on the modelling influence and the family history of entrepreneurial activities. Carr and
Sequeira(2007) revealed that experiences from family business tend to have a substantial
intergenerational effect on entrepreneurial intentions. McElwee and Al-Riyami(2003) found that
children having parents in businesses tend to display a higher propensity to engage in entrepreneurship.
Mueller (2006) also concurred that when putting all personal factors influencing a persons
entrepreneurial intention together, parental role modelling seems to be the most significant. Another
factor believed to have a direct bearing on entrepreneurial intention in the family is the financial
resources in the family. This is due to the fact that family members in business have the potential of
becoming a mentor and source of financial and non-financial help (Ahmed et al., 2010).On the other hand,
Anderson et al. (2005) found that the support from families is not directly related to entrepreneurial
intention. Their study found that more than a quarter of vital entrepreneurial support perceived by
young entrepreneurs is outside the support from their family and colleagues. The above literature offers
incisive insights into the influence of the social support factor on entrepreneurial intention. It is shown
that family and peer group factors considerably affect the entrepreneurial intention of the youth. Direct

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experience is coming out with the power of social support system thus may or may not have an influence
on young students who are undergoing entrepreneurial exposure. Therefore, this study proposes the
second hypothesis of the research, which is mentioned below:
H1: Social support is positively related to entrepreneurial intention among business students in
Indonesia.

Gender and Entrepreneurship: There are increasing numbers of research conducted on female
entrepreneurs; however, the comparison between gender in entrepreneurship has been less looked into
(Yordanova & Alexandrova-Boshnakova, 2011). Gender inequality exists in terms of economic
development as well as the rates of entrepreneurial activity. There is a significant gender gap in the
entrepreneurial activity rate worldwide (Allen as cited in Sarfaraz et al., 2014). The GEM Womens
Report (as cited in Sarfaraz et al., 2014) states that the gender gap among entrepreneurs has gradually
increased over time in some countries. Overall, as the economies move to a higher level of development,
the rate of entrepreneurial activity decreases, regardless of gender. Sarfaraz et al. (2014) argued that
gender equality may lead to an increasing number of female entrepreneurs. Consequently, one may
conclude that in the economies where women are more likely to have equal opportunities with men, the
equality of women entrepreneurial activity is higher compared to the economies where women face a
greater rate of gender inequality.According to Pines et al. (2010) womens entrepreneurial intention in
developed countries is likely to be lower compared to the ones in developing countries. Equal
opportunities are of greater concern for women in developed countries than those in developing nations.
There is a consensus among researchers that women can play a substantial role in business activities
(Sarfaraz et al., 2014). Olomi and Sinyamule(2009) conducted a research on the entrepreneurial
intention of vocational students. They found that female students are more motivated to take up a
business after the completion of their studies. They tend to choose different types of businesses offered
by the company which is common for females. Another study by Zhao et al. (2005) also found that gender
is directly associated with entrepreneurial intention. It is because women have reported having lower
intentions to become entrepreneurs than men. In contrast, Keat et al. (2011)argued that male students
have greater entrepreneurial intention compared to their female counterparts. Lucas & Cooper (2012)
stated that gender is generally regarded as having a consequential effect on entrepreneurial pursuits, as
men are generally found to have a higher entrepreneurial self-efficacy than women and more likely to
start companies

Apart from that, Franco, Haase and Lautenschlager(2010) did a study to examine the factors
contributing to entrepreneurial intention among students in Europe. They revealed that the
entrepreneurial intention among female students is the same as male students. Further, MoharYusof,
Sandhu and Jain (2008) conducted a research on entrepreneurial intention among business students at
Tun Abdul Razak University (UNITAR). They utilized T-test analysis to find the differences of perception
among male and female students related to entrepreneurial career. It was revealed that both genders do
not show difference in dealing with entrepreneurship. There are inconsistencies from previous
researchers regarding gender in dealing with entrepreneurship. Some researchers argued that male
students have higher entrepreneurial intention, meanwhile the opponents argued that female students
were more entrepreneurially inclined compare to their male counterparts. Accordingly, this study
attempts to pose the hypothesis as follow:
H2: There is a difference between male and female business students in dealing with entrepreneurship.

3. Methodology

Business students from several universities in Indonesia are defined as the unit of analysis in this study;
in other words, the unit of analysis is the individual. To be more specific, the unit of analysis of this study
includes the students who are enrolled in the department of management, economics and accounting in
the faculty of economics and business. In order to gather the data, this study utilized self-administered
questionnaires and analyzed the data using SPSS version 22. This study conducted a cross-sectional
survey targeting a sample of business students at the Indonesian higher education institutions both
public and private. The items of both SSwere assessed on a ten-point Likert scale, while EI instruments
were assessed on a five-point Likert scale. Using a convenience sampling method, 1,230 self-administered
questionnaires were distributed to the business students at public and private universities across
Indonesia. This data collection process yielded back with 381 usable responses that were used in the
statistical analysis for assessing the relationship between SS and EI as well as the role of gender in dealing
with entrepreneurship.

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Measurement

Social Support Instrument: In order to measure the variable of social support, the instrument of social
support was adopted from Sahban, Kumar and Ramalu (2015). The items related to the dimensions of
social support, i.e., friends support and family support were used in this study. The social support was
measured with 25 items using a 10-point Likert scale (1=strongly disagree to 10=strongly agree). To test
the validity and reliability, this instrument was subjected to pilot testing.80 questionnaires were
conveniently hand-distributed to students in Indonesia from both public and private universities,
resulting in 65 valid responses. SS items were then coded as 1 and 2= strongly disagree, 3 and 4=
disagree, 5 and 6= neutral, 7 and 8= agree, and 9 and 10= strongly agree and entered into SPSS for
analysis. Having analysed through SPSS, the 25 items were retained since every item had factor loading
more than 0.5 and consistently predicted the construct. In addition, these items explained 64.24% of
variance cumulatively. Therefore, these items were not dropped. In addition, the Cronbachs alpha
ranged from 0.802 to 0.843, fulfilling eligibility to consider the factors of social support. Hence, this
instrument could be considered for the data collection and analysis to explain the social support
construct. The factor analysis of social support construct is presented in Table 1 below:

Table 1: Factor Analysis of Social Support


FACTORS
CODE
FS PS
FS10 .887
FS5 .832
FS6 .826
FS14 .819
FS2 .806
FS3 .794
FS12 .793
FS8 .763
FS11 .761
FS7 .708
FS9 .692
FS4 .685
FS13 .672
FS15 .647
FS1 .628
PS6 .837
PS9 .835
PS3 .832
PS7 .806
PS4 .802
PS1 .793
PS8 .787
PS10 .776
PS2 .752
PS5 .736
Eigenvalue 8.356 4.364
VE % 39.103 25.158
Reliability 0.802 0.843

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KMO 0.937
Overall VE% 64.241
Chi-square 547.068
Significance 0.000
FS : Family Support
PS : Peers Support

Entrepreneurial Intention Instrument: All the entrepreneurial intention items were adopted without
alteration from Lin and Chen (2006, 2009). The questionnaire has been used by Lin(2008);
Guerrero et al. (2009); Chen et al. (1998); and Zhao et al. (2005). The construct of entrepreneurial
intention was measured using a five-point Likert scale (1=strongly disagree to 5=strongly agree). The use
of five-point Likert scale was also found in previous entrepreneurial intent studies done by Gupta,
Turban, Wasti and Sikdar(2009); Schwarz, Wdowiak, Almer-Jarz and Breitenecker(2009); and Malebana
and Swanepoel(2011). The Cronbachs alpha for the entrepreneurial intent scale was 0.903 which met
Nunnally and Bernsteins (1994)standard for scale development studies of 0.7. To test the validity and
reliability, this instrument was subjected to pilot testing. Since the original instruments were written in
English, an expert translator translated the questionnaire from English into Indonesian. Then the
translation was, blindly, back-translated from Indonesian to English by another translator. After that, the
authors matched the translated copies to reach the most accurate translation and eliminate statements
that gave different meanings (e.g. Brislin, 1980; Mahmoud & D Reisel, 2014; Mahmoud, 2013). Hence, EI1,
EI4 and EI9 were eliminated due to bad phrasing.

The new copy was then reviewed by Professor from the Economics and Business Faculty, Indonesia
University to guarantee face validity (Tharenou, Donohue, & Cooper, 2007).Thereafter, the 80
questionnaires were also conveniently hand-distributed to students in Indonesia from both public and
private universities, resulting in 65 valid responses. EI items were then coded as 1= strongly disagree, 2=
disagree, 3= neutral, 4= agree, and 5= strongly agree and entered into SPSS for analysis. As a result, the
pilot test provided a reliable statistic, indicating the Cronbachs alpha of 0.925, fulfilling the eligibility to
consider the factors of entrepreneurial intention. The study further revealed that the eigenvalues
exceeded 1, explaining cumulatively 0.640 of the variance. Hence, this instrument could be considered for
the data collection and analysis to explain the students intention to deal with entrepreneurship. Table 2
below described the factor analysis of entrepreneurial intention:

Table 2: Factor Analysis of Entrepreneurial Intention


FACTOR
CODE
EI
EI3 0.953
EI5 0.952
EI7 0.949
EI8 0.792
EI6 0.777
EI2 0.762

Eigenvalue 4.828
VE % 64.052
Reliability 0.925
KMO 0.901
Overall VE% 64.052
Chi-square 207.486
Significance 0.000

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EI : Entrepreneurial Intention

4. Result

Validity and Reliability: Prior to examine the first hypothesis, this study attempted to test validity and
reliability of the items through convergent validity and Cronbach alpha. Convergent validity is defined as
the extent to which the items used to measure a construct share a high proportion of common
variance(Hair, Black, Babin, & Anderson, 2010). According to Churchill (1979), it is the extent to which
different means of data collection produce the same results. In other words, convergent validity indicates
the degree to which multiple items measure the same construct.The convergent validity is presented in
Table 3 below:

Table 3: Convergent Validity


Convergent Validity

Internal
Average
Reliability Composite
Construct Items in Average Loading Variance
Cronbach's Reliability
Extracted
Alpha

Social Support FS-av 0.649

PS-av 0.889 0.674 0.896 0.812

Entrepreneurial
EI-av 0.891 0.798 0.948 0.755
Intention
Based on Table 3 above, the results showed high factor loadings of the two variables, indicating that the
convergent validity of the measures was established.

Hypothesis Testing: For further analysis, this study put the dimensions of social support in average.
Consequently, there was only single dimension to be examined. The regression analysis is presented in
table 4 below:

Table 4: Examining Variables predictive power


Unstandardized Standardized
Coefficients Coefficients
t Sig.
B Std. Error Beta

(Constant) 2.786 .148 - 18.847 .179

SS-av .248 .121 .337 6.971 .016


* : p< 0.05; **: p< 0.01; ***:p<0.001
Based on the table above, the t-value is 6.971 which is more than the threshold value of 1.96 (Nunally,
1978) and the significance value in this table shows0.016 which is below than the threshold value of 0.05,
indicating that the null hypothesis was rejected. In other words, hypothesis 1 is supported whereby
social support was positively influence students intention to engage in entrepreneurial career. In order
to testthe difference between male and female students in term of entrepreneurial intention, independent
sample T-test was employed and the result revealed that the entrepreneurial intention between both
groups was different. Table 5 and 6 below describe the comparison of entrepreneurial intention between
male and female students:

Table 5: Gender Distribution


Group Statistics
Std. Error
Gender N Mean Std. Deviation
Mean
Male 211 3.8544 0.64374 0.04432
EIav
Female 170 3.7175 0.62214 0.04772

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Table 6: Independent Sample T-test


Independent Samples Test
Levene's
Test for
t-test for Equality of Means
Equality of
Variances
95%
Sig. Confidence
Mean Std. Error
(2- Interval of the
F Sig. T df Differenc Differenc
tailed Difference
e e
)
Lower Upper
EI- Equal
av variances 2.09 .0083 .2653
1.448 .230 379 .037 .13683 .06536
assumed 3 1 5
Equal
variances 2.10 366.71 .0087 .2648
.036 .13683 .06512
not 1 6 7 9
assumed

As depicted in Table 5 above, the mean value of male students is slightly higher than female students.
However, Table 6 depicts that there is a difference in both male and female students in terms of their
intention to engage in entrepreneurial career. To interpret the output, the first row in Table 6 is used
since the significance value in Levenes Test is more than 0.05. It is clearly seen that the significance (2-
tailed) is .037, showing that there is a difference between the two groups in terms of engaging in
entrepreneurship activities. Therefore, H null was rejected.

Discussion and Implication: This study has achieved its research objectives in examining the
relationship between SS and EI as well as the difference between male and female toward entrepreneurial
intentionby utilizing SPSS version 22.Convergent validity and reliability test was also employed to ensure
the combination of items to be able to measure the construct and to support the consistency of each item
to measure the construct. It was hypothesized in this study that the social support is positively related to
entrepreneurial intention. The result indicated that there is a positive relationship betweensocial
supportand entrepreneurial intention among business students, meaning H1 is supported in this study.
Past studies have supported this finding(Anderson et al., 2005; Baughn et al., 2006; Buang & Yusof, 2006;
Len et al., 2007; Mustikawati & Bachtiar, 2008; Procidano & Heller, 1983; Rani, 2012)who have reported
showing strong positive correlation between family support system and entrepreneurial intention. The
findings of this study reveals that the higher the social support, the higher the entrepreneurial intention
of the students to start-up a business.

According to Rani, family support has a strong correlation with the occurrence of a new venture,
opportunity recognition, decision-making as well as resource mobilization. In addition, a few related
aspects, like environmental support and parental support, play an important role in influencing a
person's desire for entrepreneurship (Indarti & Rostiani, 2008; Lee, Wong, Foo, & Leung, 2011; Suharti &
Sirine, 2011). Encouragement in the form of high motivation from the family to move forward is a core
requirement to become a real entrepreneur. Thus, family support is of course the primary driving force
to boost students mentality and motivation (Kasmir, 2006). Parents with entrepreneurial professions,
are also role models for their childrens career choice after graduating from the University. The social
support system has been shown to be paramount in developing entrepreneurial intention. The kinship
relationships work as the strongest ties in entrepreneurial networks. Therefore, it is undeniable that
parents play a significant role in providing support and motivation that will make their children become
socially competent, confident and responsible in realizing their intention to become entrepreneurs.

Based on these circumstances, people should develop a relationship and networking with other people to
optimize their capacity, especially in conducting business. The network can also be a gateway that adds to
competency ability and supplementary resources of an individual. In addition, the young graduates are
supposed to get appropriate guidance and information from their peers and family members in order to
get a better understanding about starting a business with appropriate resources. The students basically

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do not have too many ideas about how to run a business; they do not yet know how to look into aspects
like finance management, pooling of resources, marketing the products, identifying right business
opportunities, accessing better business networks and establishing business in right locations. These
young students need to be given appropriate guidance from their family. According to this research, the
higher the support the students get from their family, the higher the entrepreneurial intention will be.
The result of the study thus indicates a strong correlation between students SS and their intention to
become entrepreneurs. Since this research employed non-probability sampling, further research need to
be conducted by utilizing probability sampling as well as employing larger population in order to support
the generalization of the outcomes.

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The Effect Marketing Mix on Consumer Demand of Tourism Culinary in Macassar City

Hikmah1, Nurdin2
1STIM Lasharan Jaya Makassar, Indonesia
2STIPAR Tamalatea Makassar,Indonesia

hikmahnurdin77@gmail.com

Abstract: The purpose of this study was to determine: (1) a significant influence among the products to
consumer demand at the Culinary in Makassar; (2) significant influence of price on consumer demand on
Culinary Tourism in Makassar; (3) The effect of significant between distribution channels to consumer
demand on Culinary Tourism in the city of Makassar; (4) significant influence between promotion of the
level of effective demand of consumers in the city of Makassar Culinary; (5) significant influence between
product, price, distribution channels and promotion (Marketing Mix) together - equal to consumer
demand in Culinary tourism in the city of Makassar. The method used in this research is quantitative
descriptive. The population is all consumers in the Culinary Makassar. The study population by taking a
sample of 250 of the 2500 population. Variable data collection techniques by using questionnaires and
documentation. Questionnaire before used initially tested by taking a sample of 50 consumers. The
formula of product moment correlation was used to test the validity of the 15 item questionnaire are all
valid questions. Alpha formula is used to test the reliability of the questionnaire for all the variables, the
test results showed that all variables passed the reliability test. Data analysis technique used is the F test
and t test. Based on the results of this study concluded: that all marketing mix variables studied
significantly affect the effective demand with a probability value below 0.05.

Keywords: marketing mix, product demand, consumer, culinary tours

1. Introduction

Makassar Culinary Tourism is one of the alternative places that can be visited by people of Makassar in
particular and the entire community in South Sulawesi in general, where the culinary tourism Makassar is
a culinary tour that serves a variety of authentic Makassar and other foods from various regions. In this
place a lot of culinary options rarely found by the general public. The place is very strategic and variations
complete food then this place is quickly gaining interest from the public. In terms of marketing, culinary
Makassar was not initially known by the public as a whole. For the campaign needed to introduce
products / commodities anything that can be enjoyed by consumers in that place. Until even now the
promotion is still done by the traders to introduce new products that are provided or products that are
already there. This promotion is done either through direct sales, print media and electronic media.
Culinary tourism is built to respond to consumer demand in order to enjoy a variety of culinary menu is
already scarce, are also scattered in the city of Makassar in order to be in one location. Prices were on
offer on the culinary tour Makassar also still be affordable by the ability of the community. Food essence
is a basic requirement for communities such as Coto, konro, sop saudara, pallu basa, mie titi, pisang epe,
pecel, nasi gudeg and so on. For the middle to upper Makassar Culinary tourism is one alternative where
snacks are very cheap, and the community is also accessible medium. It can be concluded that the demand
for the products produced in the city of Makassar's culinary tour including the effective demand, ie
consumer demand for goods and services, along with purchasing power or ability to pay.

Promotional products of various types of food made by the city of Makassar and associations traders in
Makassar culinary travel, increase effective demand of society in Makassar. In addition, culinary Makassar
is a culinary attractions that can be enjoyed by all people, both old - young, rich - poor, men - men and
women. The menu is presented varied so that the consumer demand for various types of food can be met
by a trader in Makassar this culinary tourism. Along with rising consumer demand will also automatically
add revenue / income (marginal income) from the sale of food / products. Based on the above it is clear
that consumer demand is influenced by several factors: the marketing mix consisting of product, price,
distribution channels, and promotions. So the title of research undertaken by the author is the "Influence
of Marketing Mix on Consumer Demand In The Makassar Culinary Tourism 2014".

Identification of the Problems: From the background of the issue about, the author Identifies the
problem as follows:

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1. Is the marketing mix (product, price, distribution channels, and promotions) simultaneously
significant effect on consumer demand on Culinary Tourism Makassar City?
2. Is the marketing mix (product, price, distribution channels, and promotions) partially significant
effect on consumer demand on Culinary Tourism in the city of Makassar?
3. Which variable in the marketing mix that has contributed most to consumer demand at the Culinary
Makassar?

Objective of Writing: As for the goals of this research are:


1. To determine the simultaneous influence of marketing mix to consumer demand on a culinary tour
of the city of Makassar.
2. To determine the partial influence of marketing mix to consumer demand on a culinary tour of the
city of Makassar.
3. To determine the variables that have contributed most to the consumer demand in the city of
Makassar Culinary Tourism.

2. Literature Review

The definition of Marketing: Marketing is an important aspect in the overall mission of the company.
According to Terence A. Shimp (2003: 4) "Marketing is a set of activities in which corporations and other
organizations that transfer values (exchange) between them and their customers". Marketing activities
involve a lot of communication activities. Marketing is commonly used in describing the communication
with customers and prospective customers. According to Philip Kotler (2006: 6) "Marketing is a social
process in which individuals and groups obtain what they need and want by creating, offering, and freely
exchanging products of value with others". Promotion create relationships between companies and
consumers so that consumers know more of the company's products.

Marketing Management: In essence, the management consists of the design and implementation of
plans in general. Management has three basic tasks: 1) Planning, ie activities to prepare plans and a
common strategy for companies in all areas of the company. 2) deploy, ie activities in order to implement
plans set. 3) Supervision, namely activities to evaluate, analyze and oversee the plan in practice and
measure deviations. These three basic tasks such marketing is or entity that must be implemented by the
company. According to Philip Kotler (2006: 6) "Management of marketing as the art and science of
choosing target markets and getting, keeping and growing customers to create, deliver and communicate
the superior customer value". Based on the above understanding can be concluded that marketing
management is a process that includes analysis, planning, implementation, and oversight of marketing
activities undertaken by the company. This activity is intended to cause the desired exchange, either in
relation to goods and services, or other objects that can meet the needs of psychological, social and
cultural.

Marketing Mix: According to Gilbert A. Churchill (2005: 8), "Marketing Mix (marketing mix) or 4Ps,
namely pruduk (product) or service, price (price), where (place) or channels of distribution, and
promotion (promotion) or communications mix". a. Product Definition According Fandy Ciptono (1995:
76), "The product is anything that can be offered by manufacturers to note, asked, sought, bought, used,
or consumed as fulfilling market needs or desires the relevant market". In addition the product can also
be interpreted subjective understanding of the top manufacturers of something in an attempt to meet the
needs and desires of consumers. 1) Depth Product Level. In planning offers or products, marketers need
to understand the five levels of the product, namely: Product, Channel, Distribution, Promotion, Price,
Target Market (Consumer).
a. The main product / core (core benefits), which offers a major benefit or usefulness of customer's needs.
b. Generic product, which reflects the basic version (functional) of a product.
c. Expected product (expected product), which is a set of attributes and customers expect the usual
conditions at the time to see it.
d. Additional product (augmented product), covering services and benefits that differentiate the company
deals with rival companies offer.
e. Potential products, namely all the additional and transformation of the product that might do in the
future.

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Product Classification: According Fandy Ciptono (1995: 78), the classification of the product can be
done on a wide range of viewpoints. Based on durability or absence of tangible products can be classified
into the following:
(a) Durable goods (nondurable goods). Durable goods are tangible goods normally consumed in one or a
few times of use. Examples are soap, food, drinks, salts, and others - others. Therefore, this type of goods
consumed rapidly (in a short time) and the frequency of purchase is often the case. So the best strategy is
to provide in many locations, apply a small markup, and advertise aggressively to stimulate people to try
and simultaneously to form a preference.
(b) Durable goods (Durable Goods). Durable goods are tangible goods that normally survive very long
with a lot of usage. Examples include TVs, refrigerators, cars, computers and so forth. Generally these
types of goods require personal selling and service more than perishable goods, providing greater profits,
and requires collateral sales.
(c) Services. Services are activities, benefits or satisfaction offered for sale. For example, a repair shop, a
beauty salon, courses, hotels, educational institutions and others - others.

Classification of consumer goods: Consumer goods are goods that are consumed in the interests of end
consumers and their own families. Generally can be classified as follows: (a) Convenience Goods.
Convenience goods are furious that generally have a high purchase frequency (often purchased), it takes
time soon, and requires only a minimum of effort (very small) in comparison and purchase, (b) Shopping
Goods. Are goods in the electoral process and its purchase than consumers among the various
alternatives available. The comparison criteria include price, quality, and model of each - each item, (c)
Speciality Goods. Are goods - goods that have the characteristics or the identification of a unique brand in
which a group of consumers willing to make a special effort to buy it, and (d) Unsought Goods. An
unknown consumer goods or if already known but is generally not thought to buy it.

Price: Understanding the price. According Fandy Ciptono (1995: 118), "price is an element of the
marketing mix that is flexible, meaning it can be changed quickly". Price is one - the only element of the
marketing mix of the company that delivers income or revenue for the company. The role of prices.
According Fandy Ciptono (1995: 119), has two roles, namely price. The role of price allocation is the
function of the price in helping the buyer to decide how to obtain benefits or the highest expected utility
based on the strength of the buyer. The role of price information, which is a function of prices in
educating consumers about the factors - factors products, such as quality. According to David W. Cravens
(1998: 57), "The purpose of pricing is as follows: a. gain market position, b. achieve financial
performance, c. product positioning, d. stimulate demand, e. affecting competition ". According Fandi
Ciptono (1995: 120), "The purpose of pricing is as follows: a. profit-oriented, b. volume-oriented, c.
oriented image, d. price stability ". d. Distribution channel.

Definition of Distribution Channels: According to David W. Cravens (1998: 28), "Distribution Channel
is a network of organizations that perform functions that connect producers with end users". Distribution
channel consists of various institutions or agencies involved, which serves as a system or network.
According Fandy Ciptono (1995: 160), the distribution channels needed primarily because of the gap
between production and consumption gap (Gap) are: 1) Geographical gab, that gap is caused by a
concentration of production and the location was scattered everywhere. 2) Time Gap, the gap that occurs
due to the fact that the purchase or consumption is performed only on certain waktuwaktu while
production (for efficiency) continues all the time. 3) Quantity Gap, the gap in the amount by which the
amount of goods that are produced automatically by a manufacturer different from the normal quantity
the customer wants. 4) Assortment Gap, where manufacturers generally are specializing in specific
products, while consumers want products that diverse. 5) Communication and information gap, the gap
arises because the consumer did not know where the sources of production which produce the desired or
needed, while on the other hand the manufacturers do not know who and where potential buyers are.

Promotion Strategy: Promotion strategies related to the problem - the problem of planning, execution,
and control of persuasive communication with customers. This promotional strategy is usually to
determine the personal promotion, advertising and promotion. According to Ciptono Fandy (1995: 200),
the promotion strategy includes the following: 1) Strategy Promotion Expenses. Budget is part of a
marketing campaign and yet there is no definite standard of how much promotional spending should be
allocated. Contributing factor is the promotion expenditure varies depending on the product and the
market situation. 2)Media Selection Strategies. The aim of this strategy is to choose the right media for
advertising campaigns in order to make the customers come to know, understand, take a stand, and buy

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products produced by the company. As is the media is a channel of commercial messages to target
audiences. The media can be newspapers, magazines, TV, radio, outdoor media, transit ads and direct
mail. Every choosing media is influenced by factors such as the characteristics of the product, the type of
message, the target market, and what kind of budget distribution, advertising strategies of competitors as
well as advantages and disadvantages of the medium itself.

Level of Effective Demand Consumer Demand: According to Alfred W. Stonier and Douglas C. Hague
(1999: 36): "Demand is good demanded for the goods it needed and could also be considered that each
item requested by any person who menggangap goods it is useful for everyone who needs it. On the
economic demand also means that demand is supported by enough money to buy such goods. "According
Sadono Sukirno (2005: 76)" The demand is various kinds of quantity of goods and services demanded
buyer (consumer) at various levels are likely to price within a certain period market. "Based on these
opinions can be concluded that the request is of goods that are required for goods needed and also
considered that each items requested by any person on a range of possible levels of market price within a
certain period. Judging from the purchasing power of consumers requests can be divided into: 1. Effective
Demand, namely consumer demand for goods and services, along with purchasing power or ability to pay.
2. The potential demand, which is owned consumer demand towards goods and services but do not carry
out the purchase. 3. Requests the absolute, is purchasing power demand or request is not accompanied by
the ability to pay according to the price.

3. Methodology

The location of this research is Wisata Kuliner Makassar in Makassar City which is located Losari Beach.
As for the time of this study is 3 months : Juli until Oktober 2014. Method of Data Collection in this case
the researchers used quantitative descriptive method, since the method of this study has the objective to
obtain information to create a picture or description of what is or is happening. This research was
qualitative and quantitative data. The source of the data in this research was the subject of the acquired
data (Arikunto, 2003:114). It is in order to the writing activities that can be done properly and as
expected the writer, then the required data are objective and relevant.

Method for Analyzing Data: In writing of this research, the researcher used the descriptive and
qualitative method. Those methods are the way to collect the data which contains the descriptions,
exposure of an object according to the required criteria.Then this method can be used with linear
regression using the formula:
Y = a0 + a1X1 + a2 X2+ a3X3+ a4 X4
The population was the object of the research is all people in Makassar city. samples taken in this
research are 250 visitors.

4. Findings and Discussion

Testing the hypothesis is a step to prove the statements expressed in the formulation of hypotheses. The
hypothesis will be accepted if the collected data may support the hypothesis statement and vice versa will
be rejected if the data do not support. Data analysis techniques used in this research is multiple linear
regression. Model Summary used to determine whether the dependent variable (Y) can be explained by
independen variables (X). According to the table, an unknown amount of Adjusted R Square is 0.179. This
means that 17.9% variance Effective Demand rate can be explained by the independent variables Product,
Price, Distribution, and Promotion. While the rest (100% - 17.9% = 82.1%) is explained by other
variables outside the model.
Coefficients a
Unstanda
rdized
Models B t Sig.
1 (Constant) 1.485 2.028 .043
Product .061 2.333 .020
Price .234 5.294 .000
Distribution .193 6.341 .000
Promotion .136 4.256 .000
a. Dependent Variable: Consumer Demand

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T test table illustrates the regression equation, namely:


Y = 1,485 + 0,061X1+ 0,234X2 + 0,193X3 + 0,136X4
Where Y: Level of Consumer Demand
X1: Product
X2: Price
X3: Distribution
X4: Promotion
The test results of t test is described as follows:
1. Constant of 1.485 states that if there are five variables studied, the size of Effective Demand rate is
equal to 1,485
2. The regression coefficient of 0.061 X1 stated that any increase (as a positive sign) Products of 1 will
cause the rate of Effective Demand increased by 0.061.
3. The regression coefficient of 0.234 X2 stated that any increase (as a positive sign) The price of one will
cause the rate of Effective Demand increased by 0.234.
4. The regression coefficient of 0.193 X3 stated that any increase (as a positive sign) Distribution of 1 will
cause the rate of Effective Demand increased by 0.193.
5. X4 regression coefficient of 0.136 states that any increase (as a positive sign) Promotion of 1 will cause
the rate of Effective Demand increased by 0.136.

ANOVA test or F test yield calculated F value of 19.993 with a significance level of 0.000. Because the
significance probability is smaller than 0.05, then the regression model can be used to predict the level of
Effective Demand or it can be said that the Product, Pricing, Distribution and Promotion jointly affect the
level of Effective Demand.

Discussion of Results Analysis Data: After analyzing the data, the research findings prove that the
variable Product, Price, Distribution, Promotion either partially or together affect the level of consumer
Effective Demand culinary tour of Makassar, the results of the calculation are: (1) The test results showed
that the product variable (X1) has a significance level of 0.020. Therefore the probability (0,020) is less
than 0.05, it can be argued that the Product variable (X1) affect the level of consumer demand (Y), (2) The
test results showed that the variable Price (X2) has a significance level of 0.000. Therefore the probability
(0.000) is less than 0.05, it can be argued that the price variable (X2) affect the level of Effective Demand
(Y), (3) Test results showed that the distribution of the variable (X3) has a significance level of 0.000.
Therefore the probability (0.000) is less than 0.05, it can be argued that the variable distribution (X3)
influence the level of Effective Demand (Y). (4) The test results showed that the variables Promotion (X4)
has a significance level of 0.000. Therefore the probability (0.000) is less than 0.05, it can be argued that
the promotion variable (X4) affect the level of Effective Demand (Y). And (5) F test results obtained
probability value of 0.000. Because the probability value (0.000) is smaller than 0.05, then Ho is rejected,
so it can be concluded that the Product variable (X1), Price (X2), Distribution (X3), and Promotion (X4)
effect together towards Rate Request effective (Y). Based on theoretical basis, it was found that the
marketing mix (marketing mix) is one of the factors that affect the level of consumer demand. According
to Gilbert A. Churchill (2005: 8), "Marketing Mix (marketing mix) or 4Ps, namely pruduk (product) or
service, price (price), where (place) or channels of distribution, and promotion (promotion). Based on the
results obtained by analysis of the regression coefficients for the variables Product (X1) of 0.061 with the
direction of positive relationship, the variable price (X2) is 0.234 with the direction of positive
relationships, variable Distribution (X3) of 0.193 with the direction of positive relationships, variable
Promotion (X4) 0.136 with the direction of positive relationships. This means if the Product, Price,
Distribution, and Promotion will improve also enhanced level of consumer demand. But on the contrary if
the Product, Price, Distribution, and Environmental Organizations decline will decrease anyway Effective
Demand rate. Variable Price (X2) turned out to have the greatest influence on the variable rate of
Effective Demand (Y) because it has the greatest regression coefficient is 0.234. This means that if the
price more accessible then the level of Effective Demand will increase.

5. Conclusion and Suggestion

Based on the explanation on the results of the research and the discussion can be expressed as the
following conclusions: (1) Simultaneously from four independent variables namely product, price,
distribution and promotion used turned out to have a significant effect on consumer demand in culinary
tourism in the city of Makassar, (2) Partially of four independent variables namely product, price,
distribution and promotion used turned out to have a significant effect on consumer demand and the two

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of them have the same value ie 0,000, and (3) Although the four variables that had a significant influence,
but there is one dominant variables influence the distribution. Based on the above conclusions, then it
can put forth some suggestions as follows: (1) Culinary Makassar City business can add variants of
existing products, so that more types of products offered, (2) The business should provide more seats so
that when there are more visitors they can gain comfort, and (3) The business should add to and expand
the promotion is done, so that more can Culinary Makassar is known and can attract visitors both from
within and from outside the city of Makassar.

References

Alfred. W. Stoiner dan Douglas C. Hague. 1999. Teori Ekonomi. Jakarta. Ghalia Indonesia
Arikunto, Suharsimi. 2003. Prosedur Penelitian. Jakarta : Rineke Cipta.
Churchill, A, Gilbert. 2005. Bauran Pemasaran dan Loyalitas konsumen. Alfabeta. Bandung
Cravens, W. David. 1998. Strategi Pemasaran. Jilid 2. Jakarta. Erlangga
Kotler, Philip. 2002. Manajemen Pemasaran. Jilid 2. PT. Prenhalindo, Jakarta
-------------------2006. Marketing. Seventh Edition. Prentice Hall, Pearson Education Australia
Marzuki. 2002. Metodologi Riset. Yogyakarta : BPFE-UII
Shimp,A, Terence. 2003. Periklanan Promosi. Jakarta. Erlangga
Sukirno, Sadono. 2005. Pengantar Teori Mikro Ekonomi. Jakarta : PT. Raja Grafindo Persada
Tjiptono, Fandi. 1995. Strategi Pemasaran. Yogyakarta : Andi Offset.

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Students Motivationin Studying English Through Supplementary Materials at The Second


Year of Sma 16 Makassar

Widiastuti, Guntur Suryo Putro


Lecturer of Stim Lasharan Jaya Makassar
widiastuti@live.com

Abstract: English is one of not easy study. This problem relates to the students of SMA 16 Makassar. Most
of them are unhappy to study English. Moreover, they are scared of that subject. In other word, the
studying English is not well as the process. This research found out description of Students Motivation in
Studying English through Supplementary Materialsat the Second Year of SMA 16 Makassar. Design of the
research was descriptive or quantitative research. It described students Motivation in studying English
through supplementary materials at the second year students of SMA 16 Makassar. The treatment in this
research was given supplementary materials as songs, short stories, and advertisements. The research
applied supplementary materials as six times, as detail twice of songs, twice of short stories, and twice of
advertisements. After that, the writer used the questionnaire to collect the data of sample to determine
the motivation of students in studying English. The result of this research showed that the students
motivation in studying English through supplementary materials with overage 73 was categorize high
level. This indicated that supplementary materials as songs, short stories, and advertisements were good
to motivate the students in studying English

Keywords: Students Motivation and Supplementary Materials

1. Introduction

Background: Most of students think English is a difficult subject. Therefore, the students have low
motivation in studying about English. Besides, the facilitation is not enough for teaching. The facilitationt
of language are not there, for examples earphone, control voice, and books hand that support their study.
About the limitation of facilitations, the students cannot study effectively. They just study as responsible
students. On the other hand, they are not interested in studying.In further, LKS and Curriculum of hand
book are used there. It may not be able motivate students in stuying English. Therefore, most of students
may feel difficult to receive the knowledge about English. In other word, they think that English are not
fantastic lesson. Consequently, the learning of English is fail.Hence, the students have less material to
support the lesson. They study with following to the curriculum. Besides, the teachers do not
showmaterials which supports to the students. Therefore, among students and teachers get the process
studying is worse and they cannot grasp the purpose of studying. According to the case above, the
students do not master of language skills. For instance, 1) they cannot speak fluently; cannot an utterance
thing because of lack pronunciation in limitation of vocabularies. 2) They cannot write well; cannot
explore their ideas; cannot write with structure of writing and it is coherence. 3) They cannot listen being
sure. 4) The last is they cannot answer of questions of reading. Furthermore, they fail in the final
semester. In other word, in this process is a failure situation. Theresearcher tries to give solution with
using supplementary materials. Supplementary materials are needed to motivate students. In process of
learning, the teacher has to be creative in teaching. The teacher gives the supplementary materials that
they are amazing things. The teacher makes the happiness and fun condition in the class. Therefore, they
think that English is fabulous, marvelous, and excellent subject. Based on the statements of the
importance of supplementary materials for students in studying English, the researcher is interested to
know the students motivation at the second year students of SMA 16 Makassarafter giving treatment.

Identification of the Problems: From the background above, the researcher identifies the problem as
follows: Howis the studentsmotivation in studying English through supplementary materials at the
second year of SMA 16 Makassar?.

Objective of Writing: The objective of Writing of this reseach is to describe of students motivation in
studying English through supplementary materials at the second year of SMA 16 Makassar.

Theoretical Framework

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Definition of Motivation: There are many definitions of motivation that have been proposed by experts.
Those definitions are made up based on their views, and ways, of thinking, as expressed distinctively, as
follow:
1) Rusyam (1992) states that motivation is behavior activation to line a target with provided the basis
for a target.
2) Brown (1987) states that motivation is an inner drive, impulse, and emotion or desire that moves
one to a particular action.
3) Harmer (1991) states that motivation is some kind of internal drive that encourages somebody to
pursue a course of action.
4) Anderson (1993) states that motivation in the context of the classroom, refer to characteristics of
students, concentration, and persistence.

From that definition of motivation above, the writer can assume that those relate one another.
Furthermore, the writer states that motivation is the things which abstract that can encourage the person
to do anything and further with concentration and consistent to grasp the goal.Search in Ratnasari (2008)
indicates that the teacher has a number of choices in connecting with motivation. The significance of
motivation for learning is usually assumed without question on the hand, the promised, reward or treat of
punishment promised mean by which the teacher can keep the pupil at work. On the other hand, interest,
curiosity, and self selected goal keep the pupil at work without pressure from the teacher. Therefore, the
teacher has a choice between using specific goal and enlisting self activating motives or perhaps
employing some combination of these. In other words, motivation is also an aspect that is not less
important in learning a language than attitude.

There are two kinds of motivation namely:

Extrinsic motivation: Gilmer (1975) states when we are extrinsically motivated to do something, we are
lead to an external rewards such as money, praise from someone. Ur (1996) says that when work is
reduced to a behavior, which will only be done for the sake of a reward, the work is extrinsically
motivated. Therefore it is better that extrinsic motivation using nothing to induce person but oneself be
conscious doing it. Hamalik (2001) states that general the function of motivation can be decided as
follow:
a) To stimulate someone to do something. Without motivation, they will not appear something action
like study.
b) Motivation as director. It means that direct of action to reach goal
c) Motivation is moving spirit. It is function as machine sizeof motivation determines quick or slows
something the job.
We can say that some students study a language because they have an idea of something which they
wish to achieve. Gardner and Lambert divide into two main types of such motivation:
1. integrative motivation: Integrative motivation for this kind of motivation students needs to be
attracted by the culture of the target language community, and in the strong integrative motivation.
They wish to integrate themselves into that culture.
2.Instrumental motivation: This term describes a situation in which students believe that the
mastery of the target language will be instrumental in getting them a better job position or status.
Masluder (1991) states that students can be said as motivated students if they:
1.Pay attention to learn English
2.Follow all given instruction in English learning
3.Completes assignment which given by his or her teacher.

Intrinsic motivation: Intrinsic motivation is the desire to do something because you want to do. Intrinsic
motivation is of course not the only determiner success for a language learner, sometimes no matter how
much you want to accomplish something or how hard you try, you may not succeed for host of other
reasons. Cook (1991) states that when a person intrinsically motivated to do activity, he does because he
likes what he is doing. The activity itself is its own reward. Thus, when something is done for its own sake
it is intrinsically motivated, intrinsic motivation implies self actualization and ago involvement. Intrinsic
motivation is concerned with factor affecting inside the class. It divided into four categories:
1) Physical condition. This factor is one of the crucial factors that can influence the students
motivation, a good mood or bad mood depended on his factor, the student without a good physical
condition cannot interpret the lesson as good as their friends with a good physical condition.

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2) Method. That method that applied in the learning process in the crucial factor that teacher must
concern uninteresting style of the teachers method can made the students unmotivated the student
in learning the lesson in the class must appropriate with their mood and level.
3) Teacher. One of the most important elements in intrinsic motivation is the teacher themselves. Their
skill and their personality are instrumental in creating the condition learning is teaching process.
4) Success. The student purpose in learning is going to be success. This can motivate the students to
learn success means, work harder, learn more and affective, to gain their aims.

3. Methodology

Time and Place of the Research: The location of this research wasSMA 16 Makassar which is located at
Jl. Amanagappa No.8 Makassar. As for the time of this study is 3 months : November 2015 until February
2016.

Method of Data Collection: In this research, data collection is carried out through:

To find out students motivation, the writer used questionnaire which is consisted of 20 questions. The
questionnaire is given to the students after giving treatments. The treatment in this research is
supplementary materials (songs, short stories, and advertisements). The researcher teaches the students
at six times as among twice of song, shot story, and advertisement.
Treatment

Songs.
The writer introduced the supplementary material (song ) to the students
The writer gave paper to be read and made correction of the song listening.
The writer played the song for listening to the students.
The writer practiced how pronounced every word of song.
The writer and students sang that song together.
The writer explained of meaning of song.
Short story.
The writer gave paper to be read and made correction of short story listening.
The writer played the short story for listening to the students.
The writer practiced how to read and pronounced every word of short story.
The writer asked to the students answered those questions of the paper preparing.
The writer and students shared to answer those questions.
Advertisement
The writer gave paper to be read.
The writer asked to the students translated the word that still strange of them.
The writer asked students to answer those questions.
The writer and the students shared to answer those questions.

Types and Source of the Data: Types of the Data: This research was qualitative and quantitative data
Source of the Data: The source of the data in this research is the subject of the acquired data (Arikunto,
2003:114). It is in order to the writing activities that can be done properly and as expected the writer,
then the required data are objective and relevant.
Primary Data, i.e. data obtained directly from the source, observed and recorded for the first
time (Marzuki, 2002: 55). Primary data is meant here is the raw data and has not yet been
processed are sourced from questionnaires, interviews and observation.
Secondary Data, i.e. data which is sourced from the documents, both of which made the object of
research as well as other documents of relevance to this research.

Procedure of Collecting Data: Procedureof collecting the data as follow:


1) The writer explained to the students about the questionnaire.
2) The writer distributed the questionnaire.
3) The writer was given 30 minutes for respondent to answer all of the questions.
4) The writer collected the data from the respondent.
5) The writer concluded the all of data.To all the population was sampled. So samples taken in this
research are 44 employees.

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Method for Analyzing Data: To found out students motivation, the writer used likers scale as follow: 5,
4, 3, 2, and 1 for positive statement and 1, 2, 3, 4 and 5 for negative statement. And to know more detail
the following table gave us briefly explanation:
Options
Statement Strongly Agree Neutral Disagree Strongly
Agree disagree
Favorable 5 4 3 2 1
Unfavorable 1 2 3 4 5

The data collected through the questionnaires. Calculating mean score by using the following formula:

X=
X
N
Notation:
X = mean score
X = the sum of all score
N = the total number of score
(Gay, 1981)
The writer used frequency to analyze the data from the questionnaire. It aimed at finding out students
motivation and the formula was used as follow:
Fq
P= .100%
N
P = Percentage of questionnaire
Fq = The number of frequency
N = Number of students
(Sudjana, 1991)
To rate students motivation the writer used the criteria as follow:
1. Score 81 100 categorized very high
2. Score 61 80 categorized high
3. Score 41 60 categorized intermediate
4. Score 21 40 categorized low
5. Score 0 20 categorized very low
(Sudijono, 2006)
Population and Sample :

Population: Sudjana (2001) defines population as object of the research given the proof of the
research.The population of the research is the second year students of SMA 16 Makassar. It consisted of
seven classes namely: XI IPA I, XI IPA II, XI IPA III, XI IPS I, XI IPS II, XI IPS III and XI IPS IV. Each class
consisted of 26 students. Therefore, the total is 182 studentS.

Sample: Sample is the type of population example of representative used as object of the research
(Marison, 2001). The second year student of SMA 16 Makassarhas seven classes; the writer took one class
of the second year students in academic year of 2014/2015. This class consisted of 26 students. The
sampling that is used in this research is purposive technique.

4. Findings and Discussion

This chapter contains the findings of the research and discussion. The findings of the research describe
the data gained from the questionnaire. The discussion of the research clarifies the result of the finding in
details.

Item Analyze: Based on the questionnaire distributed, the students were motivated in learning English
through supplementary materials. It consists of 20 items. All of the items are shown in sequence as
follows:
Item 1: Im so happy study English through supplementary materials (songs, short stories, and
advertisements).

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Table 1. Happiness in studying English through supplementary material.


No Score Option Frequency Percentage
1 5 strongly agree 4 15,38%
4 Agree 13 50 %
3 Neutral 5 19,24 %
2 Disagree 4 15,38%
1 Strongly disagree 0 0%
Total 26 100 %
Source: Data analysis of questionnaire item 1

Table 1 above showed that there were 4 students (15, 38%) stated strongly agree, 13 students (50%)
stated agree, 5 students (19, 24 %) stated neutral, 4 students (15, 38) stated disagree, and none student
stated strongly disagree. The researcher indicated that the majority of the students stated agree to be
happy in studying English through supplementary materials.

Item 2: English language learning which adds supplementary materials as songs, short stories
and advertisements can increase my motivation in studying English.

Table 2: The motivation in studying English through supplementary materials


No Score Option Frequency Percentage
2. 5 strongly agree 5 19,23 %
4 Agree 14 53,85 %
3 Neutral 3 11,54 %
2 Disagree 2 7,69%
1 strongly disagree 2 7,69%
Total 26 100 %

Source: Data analysis of questionnaire item 2

Table 1 above showed that there were 5 students (19, 23 %) stated strongly agree, 14 students (53,85 %)
stated agree, 3 students (11,54 %) stated neutral, 2 students (7,69 %) stated disagree, and 2 students (
7,69% ) stated strongly disagree. The researcher indicated that the majority of the students were
motivated in studying English through supplementary materials.
Item 3: Im interested in studying English with supplementary materials as songs, short stories,
and advertisement.

Table 3: Interested studies in studying English through supplementary materials


No Score Option Frequency Percentage
3. 5 strongly agree 3 11,54%
4 Agree 15 57,69 %
3 Neutral 6 23,07 %
2 Disagree 1 3,85%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 3

Table 3 above showed that there were 3 students (15,38 %) stated strongly agree, 15 students (61,54 %)
stated agree, 6 students (23,08 %) stated neutral, 1 student (3,85 %) stated disagree, and 1 student (
3,85% ) stated strongly disagree. The researcher indicated that the majority of the students were
interested in studying English through supplementary materials.
Item 4: Im easy to understand in studying through supplementary materials as songs, short
stories, and advertisements.

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Table 4: Understanding English through supplementary materials.


No Score Option Frequency Percentage
4. 5 strongly agree 2 7,69 %
4 Agree 18 69,23 %
3 Neutral 4 15,38%
2 Disagree 1 3,85%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 4

Table 4 above showed that there were 2 students (7,69 %) stated strongly agree, 18 students (69,23 %)
stated agree, 4 students (15,38%) stated neutral, 1 student (3,85%) stated disagree, and 1 student
(3,85% ) stated strongly disagree. The researcher indicated that the majority of the students were easy
understanding in studying English through supplementary materials.
Item 5: Im so diligent to do homework, if the teacher using supplementary materials with songs,
short stories, and advertisements.

Table 5: Diligence in studying English through supplementary materials


No Score Option Frequency Percentage
5. 5 strongly agree 2 7,69 %
4 Agree 14 53,84 %
3 Neutral 9 34, 62%
2 Disagree 1 3,85%
1 strongly disagree 0 0%
Total 26 100 %

Source: Data analysis of questionnaire item 5

Table 5 above showed that there were 2 students (7,69 %) stated strongly agree, 14 students (53,84 %)
stated agree, 9 students (34, 62%) stated neutral, 1 student (3,85%) stated disagree, and none student
stated strongly disagree. The researcher indicated that the majority of the students were diligent to do
homework in studying English through supplementary materials.
Item 6: Im so happy to pay attention to the teacher when explain the material by using
supplementary materials.

Table 6: Happiness in paying attention to the teacher


No Score Option Frequency Percentage
6. 5 strongly agree 5 19,23 %
4 Agree 14 53,85 %
3 Neutral 5 19,23%
2 Disagree 1 3,85%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 6

Table 6 above showed that there were 5 students (19, 23 %) stated strongly agree, 14 students (53,85 %)
stated agree, 5 students (19,23%) stated neutral, 1 student (3,85%) stated disagree, and 1 student
(3,85%) stated strongly disagree. The researcher indicated that the majority of the students were
happiness to pay attention to teacher explanation in studying English through supplementary materials.
Item 7: Im so active to review the lesson what has learn if the teacher using supplementary
materials as songs, short stories, advertisements.

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Table 7: The activeness to review English lesson.


No Score Option Frequency Percentage
7. 5 Strongly agree 2 7,69 %
4 Agree 12 46,15 %
3 Neutral 9 34,62%
2 Disagree 2 7,69%
1 Strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 7

Table 7 above showed that there were 2 students (7,69 %) stated strongly agree, 12 students (46,15 %)
stated agree, 9 students (34,62%) stated neutral, 2 students (7,69%) stated disagree, and 1 student
(3,85%) stated strongly disagree. The researcher indicated that the majority of the students were active
to review English lesson in studying English through supplementary materials.
Item 8: Im so interested what teacher explains if the teacher uses supplementary materials as
songs, short stories, and advertisements.

Table 8: The interesting of teacher explanation with using supplementary material.


No Score Option Frequency Percentage
8. 5 strongly agree 2 7,69 %
4 Agree 16 61,55 %
3 Neutral 4 15,38%
2 Disagree 2 7,69%
1 strongly disagree 2 7,69%
Total 100 %

Source: Data analysis of questionnaire item 8

Table 8 above showed that there were 2 students (7,69 %) stated strongly agree, 16 students (61,55 %)
stated agree, 4 students (15,38%) stated neutral, 2 (7,69%) students stated disagree, and 2 (3,85%)
students stated strongly disagree. The researcher indicated that the majority of the students were
interested in studying English through supplementary materials.
Item 9: Im not shy asking explanation to the teacher, if using supplementary materials as songs,
short stories, and advertisements.

Table 9: No shy for asking explanation to the teacher.


No Score Option Frequency Percentage
9. 5 strongly agree 3 11,54 %
4 Agree 13 50 %
3 Neutral 8 30,76%
2 Disagree 1 3,85%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 9

Table 9 above showed that there were 3 students (11, 54 %) stated strongly agree, 13 (50%) students
stated agree, 8 students (30, 76%) stated neutral, 1 student (3, 85%) stated disagree, and 1 student (3,
85%) stated strongly disagree. The researcher indicated that the majority of the students were not shy in
asking explanation in studying English through supplementary materials.
Item 10: I easy understand to the lesson with using supplementary materials as songs, short
stories, and advertisements.

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Table 10: Easy understanding in studying English lesson.


No Score Option Frequency Percentage
10. 5 strongly agree 4 15,38 %
4 Agree 15 57,69 %
3 Neutral 4 15,38%
2 Disagree 2 7,69%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 10

Table 10 above showed that there were 4 students (15, 38 %) stated strongly agree, 15 students (57, 69
%) stated agree, 4 students (15,38%) stated neutral, 2 students (7,69%) stated disagree, and 1 student
(3, 85%) stated strongly disagree. The researcher indicated that the majority of the students were easy
understanding in studying English through supplementary materials.
Item 11: Im active to do the assignments if the teacher uses supplementary materials as songs,
short stories, and advertisements.

Table 11: The activeness in doing assignments in studying English.


No Score Option Frequency Percentage
11. 5 strongly agree 2 7, 69 %
4 Agree 17 65, 39 %
3 Neutral 4 15,38 %
2 Disagree 2 7, 69%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 11

Table 11 above showed that there were 2 students (7, 69 %) stated strongly agree, 17 students (65, 39 %)
stated agree, 4 (15, 38 %) students stated neutral, 2 students (7,6 9%) stated disagree, and 1 student (3,
85%) stated strongly disagree. The researcher indicated that the majority of the students were active to
do assignments in studying English through supplementary materials.
Item 12: Im active answer questions from the teacher in studying through supplementary
materials as songs, short stories, and advertisements.

Table 12: The activeness in answering questions.


No Score Option Frequency Percentage
12. 5 strongly agree 2 7,69 %
4 Agree 14 53,85%
3 Neutral 7 26,92%
2 Disagree 1 3,85%
1 strongly disagree 2 7,69%
Total 26 100 %

Source: Data analysis of questionnaire item 12

Table 12 above showed that there were 2 students (7, 69 %) stated strongly agree, 14 students (53, 85%)
stated agree, 7 students (26, 92%) stated neutral, 1 student(3, 85%) stated disagree, and 2 students (7,
69%) stated strongly disagree. The researcher indicated that the majority of the students were active to
answer questions from the teacher in studying English through supplementary materials.
Item 13: The materials adding with songs, short stories, and advertisements in English studying
is better than not.

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Table 13: The choice of supplementary materials.


No Score Option Frequency Percentage
13. 5 strongly agree 8 30,77 %
4 Agree 10 38,46 %

3 Neutral 5 19,23%
2 Disagree 2 7, 69%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 13

Table 13 above showed that there were 8 students (30, 77 %) stated strongly agree, 10 students (38, 46
%) stated agree, 5 students (19, 23%) stated neutral, 2 students (7, 69%) stated disagree, and 1 student
(3, 85%) stated strongly disagree. The researcher indicated that the majority of the students had choice of
supplementary materials in studying English.
Item 14: Using supplementary materials as songs, short stories, and advertisements, I am getting
better in memorizing English lesson.

Table 14: The increasing in mastering English lesson.


No Score Option Frequency Percentage
14. 5 strongly agree 4 15,38 %
4 Agree 13 50%
3 Neutral 6 23,08%
2 Disagree 2 7,69%
1 strongly disagree 1 3,85%
Total 26 100 %

Source: Data analysis of questionnaire item 14

Table 14 above showed that there were 4 students (15, 38 %) stated strongly agree, 13 students (50%)
stated agree, 6 students (23, 08%) stated neutral, 2 students (7, 69%) stated disagree, and 1 student (3,
85%) stated strongly disagree. The researcher indicated that the majority of the students stated that they
had mastered English through supplementary materials in studying English.
Item 15: Im less enjoying studying English by using supplementary materials as songs, short
stories, and advertisements.

Table 15: Unsatisfied in studying English.


No Score Option Frequency Percentage
15. 1 strongly agree 1 3,85 %
2 Agree 1 3, 85 %
3 Neutral 5 19,23%
4 Disagree 16 61,53 %
5 strongly disagree 3 11,54%
Total 26 100 %

Source: Data analysis of questionnaire item 15

Table 15 above showed that there were 1 student (3, 85 %) stated strongly agree, 1 student (3, 85 %)
stated agree, 5 students (19, 23%) stated neutral, 16 students (61, 53 %) stated disagree, and 3 students
(11, 54%) stated strongly disagree. The researcher indicated that the majority of the students refused this
question. Therefore, the students were satisfied in studying English through supplementary materials.
Item 16: Its so difficult to study English through supplementary materials as songs, short stories,
and advertisements.

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Table 16: difficulties in studying English.


No Score Option Frequency Percentage
16. 1 Strongly agree 1 3,85 %
2 Agree 2 7,69%
3 Neutral 6 23,07%
4 Disagree 14 53,85%
5 strongly disagree 3 11,54%
Total 26 100 %

Source: Data analysis of questionnaire item 16

Table 16 above showed that there was 1 student (3, 85 %) stated strongly agree, 2 students (7, 69%)
stated agree, 6 students (23, 07%) stated neutral, 14 students (53, 85%) stated disagree, and 3 students
(11, 54%) stated strongly disagree. The researcher indicated that the majority of the students refused this
question. Therefore, the students were not difficult in studying English through supplementary materials.
Item 17: I do not want to study English through supplementary materials as songs, short stories,
and advertisements.

Table 17: Unhesitant in studying English.


No Score Option Frequency Percentage
17. 1 strongly agree 1 3,85 %
2 Agree 2 7,69%
3 Neutral 6 23,07%
4 Disagree 14 53,85%
5 strongly disagree 3 11,54%
Total 26 100 %

Source: Data analysis of questionnaire item 17

Table 17 above showed that there was 1 student (3, 85 %) stated strongly agree, 2 students (7, 69%)
stated agree, 6 students (23, 07%) stated neutral, 14 students (53, 85%) stated disagree, and 3 students
(11, 54%) stated strongly disagree. The researcher indicated that the majority of the students refused this
question. Therefore, the students wanted to study English through supplementary materials.
Item 18: Im bored to study English by using supplementary materials as songs, short stories, and
advertisements.

Table 18: Bored students in studying English.


No Score Option Frequency Percentage
18. 1 strongly agree 1 3,85 %
2 Agree 2 7,69 %
3 Neutral 4 15,38%
4 Disagree 17 65,39%
5 strongly disagree 2 7,69%
Total 26 100 %

Source: Data analysis of questionnaire item 18

Table 18 above showed that there was 1 student (3, 85 %) stated strongly agree, 2 students (7, 69%)
stated agree, 4 students (15, 38%) stated neutral, 17 students (65, 39%) stated disagree, and 2 students
(7, 69%) stated strongly disagree. The researcher indicated that the majority of the students refused this
question. Therefore, the students were not bored in studying English through supplementary materials.
Item 19: I will be diligent to study English through supplementary materials as songs, short
stories, and advertisements.

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Table 19: Willing be diligent in studying English.


No Score Option Frequency Percentage
19. 5 strongly agree 2 7,69%
4 Agree 16 61,54 %
3 Neutral 5 19, 23%
2 Disagree 2 7,69 %
1 strongly disagree 1 3,85 %
Total 26 100 %

Source: Data analysis of questionnaire item 19

Table 19 above showed that there were 2 student (7, 69%) stated strongly agree, 16 students (61, 54 %)
stated agree, 5 students (19, 23%) stated neutral, 2 students (7, 69 %) stated disagree, and 1 student (3,
85 %) stated strongly disagree. The researcher indicated that the majority of the students would diligent
in studying English through supplementary materials.

Item 20: The situation of classroom is enjoyable if English study adds supplementary materials as
songs, short stories, and advertisements.

Table 20. Enjoyableness class in studying English.


No Score Option Frequency Percentage
20. 5 strongly agree 2 7,69%
4 Agree 18 69,23%
3 Neutral 4 15,38%
2 Disagree 1 3,85 %
1 strongly disagree 1 3,85 %
Total 26 100 %

Source: Data analysis of questionnaire item 20

Table 20 above showed that there were 2 student (7, 69%) stated strongly agree, 18 students (69, 23%)
stated agree, 4 students (15, 38%) stated neutral, 21 student (3, 85 %) stated disagree, and 1 student (3,
85 %) stated strongly disagree. The researcher indicated that the majority of the students felt enjoyable
class in studying English through supplementary materials

Mean Score and Standard of Deviation: The data were collected from the questionnaire. The
questionnaire was the description of the level of the students motivation in studying English through
supplementary materials either they have very high, high, intermediate, low, or fail. Based on the table of
row score (appendix A), it showed that the score of the students motivation in learning English of lowest
was 59 and the highest is 78. To determine the mean score and standard deviation of the data, firstly the
writer made the distribution frequency table that can be seen as follows:

Table 21: Distribution frequency for students motivation in studying English through
supplementary materials
Interval Xi Fi Fi Xi (Xi- X ) (Xi- X ) Fi(Xi- X )
77 - 79 78 6 468 5 25 150
74- 76 75 10 750 2 4 40
71- 73 72 5 360 -1 1 5
68- 70 69 2 138 -4 16 32
65- 67 66 2 132 -7 49 98
62- 64 63 0 0 -10 100 0
59- 61 60 1 60 -13 169 169

Total 26 1908 -28 364 494


Mean score

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FiXi
X =
Fi
1908
X =
26
X = 73.38
X = 73

Standard of deviation.

S=
Fi( Xi X )
n 1
494
S=
26 1
494
S =
25
S = 19,75
S = 4.44
S=4

Based on the questionnaire score of the students motivation in studying English through supplementary
materials, it can be found that the Mean Score (M) is 73 and Standard of Deviation (SD) is In categorizing
the students motivation in studying English through supplementary materials of very high, high,
intermediate, low, or fail level, the writer classified the score based on the standard value of category
(PAP) as follow:

Table 22: Classification of the Students Motivation in Learning English


Criteria Fail Low Intermediate High Very High
Score 0 20 21 - 40 41 - 60 61 - 80 81 - 100

Based on the table above, it clearly describes that the frequency (F) is 10 and Mean Score (M) is 73. The
researcher concludes that the level of the students motivation in studying English through
supplementary materials is categorized high level. It is proved at the based on the result analyzing of the
PAP above.

Discussion:The result of the data analysis the questionnaire can be described that the level of the
students motivation at the second year of SMA16Makassar in studying English through supplementary
materials was categorized high level. It is proved the table PAP with getting mean score 73. The students
who had high motivation in studying English will be easy to it. Therefore, the students of the second year
of SMA 16Makassar consisting of 26 as sample had high level in studying English through supplementary
materials. The researcher has inferred that the whole sample agree that using supplementary materials
are very good to motivate them in studying English.

5. Conclusion and Suggestion

After conducting the result about students motivation in studying English through supplementary
materials at the second year of SMA 16 Makassar and based on the research finding in the previous
chapter, the researcher put forwards the following conclusion: The second year students of SMA 16
Makassar, mostly agree that supplementary materials had important materials to motivate themin
studying English. It is indicated by the mean score of the questionnaire 73 which is categorized as high.

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Suggestion: Based on the above conclusions, then recommendations as follows:


For teacher :
Sugested to the teacher to use songs, short stories, and advertisements as supplementary material in
learning English.
It is suggested that teacher should use supplementary materials like songs, short stories,
advertisements in learning, so students fell enjoyable and interesting to study English.

References

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Bloom, B. S. (Ed.).(1956). Taxonomy of Educational Objectives, Book 1: Cognitive Domain. London:
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Bloom, J.D. (1992). Tesol Techniques and Procedures. Rowley: Newbury house publishers.
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AktivitasPromosi is Campus Draws Near Matriculate Acceptance at STIM LasharanJaya


Makassar

AndiBataryCitta, Arfiany
STIM Lasharan's, Makassar, Indonesia
andibataricitta@yahoo. co. id

Abstract: This research intent for mengatahui campus promotion activity already is done in increase
total enthusiast to get college at Lasharan's Management Science College Makassar's ahead of new
admissions. This research college student acceptance this utilizes design Eksploratifone that intent for
reveal campus promotion effectiveness draw near matriculate acceptance. Since utilizes design
Eksploratiftherefore management ofdata to be done kualitatif's. In research kualitatif not utilize
population because research kualitatif departs of aught particular case on situated social one particular
and its study result diberlakukan won't go to population, but is transferred to other place. So in this
research just utilizes 12 (ten) comprise of sample year Matriculate 2015 and year long time College
Students 2012,2013 and 2014. Of conclusion result therefore found thatSTIM Lasharan Jaya
Makassarapply Promotion Hotchpotch in implemented promotion one is done among those is: Personal
selling, direct selling, Advertising, Sales Promotion,

Keywords: marketing, marketing hotchpotch, promotion hotchpotch

1. Introduction

Background: Education constitutes one medium to develop science, needed ability in advances state, and
in faces emulation global. As shaped as care therefore State secures and manage its citizen education and
most decant deep Constitution 1945 sections 31. As implication it, memberlakukan's government
mandatory sails through superordinate education again. Sighted from promotion aim facet ought to been
adjusted on proprietary gnostic level customer which is, giving information, changing attitude and
confidence or feel, menstimulasi that customer does buy (Rangkuti,2009:28). So in be reached intent deep
promotion therefore needs to mark sense effective promotion strategy. Strategy promotioning to
constitute step or steps in do communication to good consumer candidate of audio facet,visual and also
that audiovisual consumers gets to know and hankering to try product that be at promotes (Rangkuti,
2009:32). Challenge of greatest in arrange creative promotion strategy and makes promotion program in
shaped communication is determine strategy and promotion program which that most effective to result
impact that greatly to sell. Global emulation era, Downizing, market that growing, increasing it
compatibility technology, convergence technology communications, and a variety emulation daring,
necessitating pergurantinnggiterus gets innovation and creative deep arrange strategy and that
promotion program wins to compete (Rangkuti,2009:2 ). So in the event its implement college is charged
for over gets innovation and creative going campus promotion activity which more effective and efficient
deep utilize promotion strategy. STIM Lasharan Jaya Makassar is one of college which live at Makassar is
instituted since on year 2001, and beginning accepts college student new. Since that time enthusiast
amount that marked by registrant amount step-up via accepting mahasisa new on each year it. Even
registrant amount each year experience step-up that signifikan, but can't yet at ensures that step-up foots
up matriculate constitute result of promotion activity Activity. To that is so writer gets initiative to do one
research was braced by problem AktivitasPromosi is Campus Draws Near Matriculate Acceptance at
STIM Lasharan Jaya Makassar.

Problem formula: How is PromosiSekolah's Activity Management Science High Lasharan JayaMakassar'
draw near matriculate acceptance to College Student candidate.

To the effect research: This research intent for knowing campus promotion activity already is done in
increase total enthusiast to get college at STIM Lasharan Jaya Makassardraw on matriculate acceptance.

2. Literature Review

Marketing: According to Kotler (2006) marketing is a social process and manajerial what do in it indvidu
and group gets what do they need and want by create, offer, and interchanges product that valuably with

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other party. From defenisi up the stairs looked ahwa this marketing leaning in many core concept which
is:
1. Requirement, wish, and requisition: Requirement is something that at requires and have available so
get to move basal man tries, and wish is ambition to get more requirement ride specific will
requirement more visceral. Meanwhile requisition is make mouth water will supported particular
product by ability and readiness to buy.
2. Product / service that at offers is all something which can at offers to satisfy a need and wish.
3. Point and satisfaction constitutes guidance concept in choose product which that gets to satisfy and
has capacity in contrast to aim peripheral.
4. Interchange and transactions constitutes trick that done by person gets product that be wanted.
5. Relationship and network, constituting praktik who done by firm with key parties as customer,
provider and dealer utilisedding to keep reference of corporate longterm business.
6. Comprise of market all potential customer and meiliki the need or same particular wish may have the
honour and can perform interchange to satisfy requirement and that wish.

Base savvy upon, can be known that marketing aim is subject to be understand wish and consumer the
need that product or service accords to divide product or service consumer that gets to sold it alone ala.
Lamb, Hair and Mc Daniel( 2006) word that hotchpotch pemsaran is product strategy, promotion, price
pixing that gets unique character and be designed to result mutually interchange advantages by market
that at wends. Meanwhile was promotion processes communicating marketing hotchpotch
variable(Marketing Mix) one that momentous to be performed by firm in markets product. promosu's
activity is begun of planning, implementation and communication operation to reach audience's target(
palanggan / is customer candidate). dimaknai's frequent promotion as the planning, implementing, and
controlling of the communications with its customers and other is audeience's target fundamental of
promotion activities are a form marketing communication activities that try to broadcast information,
regard to remind that target market has the honour to accept, buy, and loyal on product that at offers by
firm( Grocer and buyer).

Marketing hotchpotch: In marketing exists marketing strategy that at marketing hotchpotch mention(
Marketing mix) one that have essential role in regard consumer to be able to buys a product or service
that at offers by firm. Marketing hotchpotch elements consisting of all variable who can at corporate
control for can satisfy consumers. Marketing hotchpotch savvy terminological BuchariAlma( 2007: 130)
Markting mix constituting activities amalgamate strategies marketing that at looks for maximal combine
so wreak result the most satisfy . Meanwhile terminologicalsKotler and Armstrong( 2012:92)
Marketing mix is good marketing tool is a. set products, pricing, promotion, distribution, combined to
produce the desired response of the is market's target . From defenisi that can at concludes that marketing
hotchpotch constitute good marketing aid and lies deep a firm where firm can restrain it to be able to
regard target response. In marketing hotchpotch exists a set of recognised marketing aid deep
terminology 4P, which is product ( product), price ( price), place ( place), and promotion ( promotion),
meanwhile in service marketing has many additional marketing aids as people ( person), physical
evidence ( physical facility), and procces( process), so knew by terminology 7P therefore get to be
concluded by service marketing hotchpotches which is, product, price, place,promotion,people,physical
evidence and procces. There is savvy even 7P terminological Kotler and Armstrong (2012: 62).

Promotion hotchpotch: According to FandiTjiptono( 2008:222) in Azhari (2015:5) in common


promotion form have functions with, but that form get at differentiate to base duty assignment in
particular. Severally that special task at promotion hotchpotch mention.
1. Personal selling, are direct communication( gaze face) among grocer and customer candidate to
introduce a product to customer.
2. Advertising, comprise of advertising and publicity, one that constitute approaching that utilize
communication media to pass on information to khalayak multitude in one time.
3. Sales promotion, are shaped persuasi direct via intensive various purpose one gets at rule to
stimulate product.
4. Public relations (public relations), constituting comprehensive communication effort of a firm to
regard perception,opinion,confidence, and agglomerate sort attitude to that firm.
5. direct marketing, is system marketing that gets interactif's character, one that utilizes one or many
advertising media to evoke measurable response and or transactions at bungling location.

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Promotion: Promotion constitutes one of variable at in marketing mix one that momentous executed
corporate product or service even. Developed promotion for communication information about product
which created by firm and regards consumer to inform or offers product or service to consumer with
intent pull consumer candidate to buy or consume. With marks sense promotion, producer or distributor
expects sell number ascension. Fromdefenisi up the stairs, can concluded is promotionone of tool gets
communication in marketing that gets active role in informs, persuade, and reminds benefit back a
product so push consumer to buy product that at promotes that. To do promotion, one each company has
to get determines on the nose promotion tool that at uses to be able to reach success in sell.

Advertising: Advertising (advertising), are all forms of paid non-personal presentation and promosu
ideas, goods, or services with a particular sponsor (Kotler and Armstrong, 2009: 117) in Freddy Rangkuti
(2009: 54). Meanwhile, according to Tjiptono (2011: 226) argues that advertising is a form of indirect
communication, which is based on information about the benefits of a product, which disususn such that
cause a sense of fun that will change someone's mind to make a purchase. From the definition of
advertising above can be deduced that advertising is part of the communication which consists of various
activities to provide information to the target market about the advantages or benefits of the product or
service that will influence consumers to buy or use the products on offer the company.

3. Methodology

Time and Place of the Research: The location of this research is STIM Lasharan Jaya Makassar. With
observational time 8 month is begun may 2014 untiljulies 2015.
Method of is Collection's Data: To find result concerning promotion Effectiveness problem campus
draws near matriculate acceptance at STIM LasharanJaya Makassarcorresponds to problems that at finds,
therefore this research utilizes design Eksploratifone that intent for reveal campus promotion
effectiveness draw near matriculate acceptance. Since utilizes design Eksploratiftherefore management
advisable data to be done kualitatif's.

Types and Source of the is Data

Types of the Data: This research was qualitative data


1. Source of the is Data: The source of the is in this research was the subject of the acquired's data data
(Arikunto, 2003:114). It is in orders to the writing activities that can be done properly and expected
the writer's usa, then the required is objective and relevant's acre data.
2. Primary is Data, i.e. obtained directly's data from the source, observed and recorded for the first
time (Marzuki, 2002: 55). Primary data is meant here is the raw data and has not yet been
processed are sourced from questionnaires, interviews and observation. There is even that as
informan in observational it is:
a. 8 (eight) person generation matriculate 2015.
b. 2 (two) person generation college student 2014
c. 1 (one) person generation college student 2013
d. 1 (one) person generation college student 2012
3. Secondary Data,i,e which is's data sourced from the documents, both of which made the object of
research as well as other documents of relevance to this research.

Method for Analyzing is Data: Analisis is data in observational kualitatif is done since before enters
field, up to at field, afters draught is finished at field (Sugiyono, 2005:89) following Miles's concept and
Huberman (1984) in Sugiyono (2005:183) interpose that activity in analisiskualitatif's data done by
interactive ala and happens continually on every research step so until complete, and its data until
saturated. Activity in analisis data which is:
1. Checking data already collected of yielding interview and obeservasidai is research object, what is
that data was fledged and ready to been brought off more.
2. Data reduction (Data reduction), its mean embrace that data, memlih is subject things, focus on the
essentials, and data moderation .so gets to give gambarab that clearer to needed data by researcher.
3. Data Display (data representation), its mean present data as theory that correspond to about
problem which be analyzed. Data representation can be done in laconic description, charts,
relationship among category, Flowchartand a sort it.

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4. Conclusion drawing / Verification (conclusion pull) glean from from aught data as a result research.
5. Explanation returns first step until fourth.
Population and Sample

Population: In research kualitatif not utilize population terminology, but is named social situation or
social's situation that comprise of three elements which is: place( palace) , agent( actors ), and activity(
activity ) one that gets sinergis'sala interaction. In research kualitatif not utilize population because
research kualitatif departs of aught particular case on situated social one particular and its study result
enforced won't go to population, but transferred to other place on situated social who have equality with
situated social on studied case.

Sample: Sample in observational kualitatif is not named respondent, but narasumber, or participant,
informan, friend and teacher in observational. Sample in observational kualitatif also is not so-called
statistic's sample, but teorotis's sample, since to the effect research kualitatuf is result theory
(Sugiyono,2005:50). Observational sample measure kualitatif relative little than sample in observational
quantitative.kualitatif's research just utilizes total few sample because at requires interview exhaustively
to each sample. So in this research just utilizes 12 (ten) comprise of sample year Matriculate 2015 and
year long time College Students 2012,2013 and 2014.

4. Findings And Discussion

Observational result: Base research that is done up to 8 months on College Student at STIM Lasharan
jaya Makassar therefore acquired data and result as follows: Base data already being taken from by
Academic Bureau head STIM Lasharan Makassar's Dignity points out to mark sense Matriculate step-up
since Year (2011 - 2014) one that consisting Camaba( matriculate candidate), Maba( matriculate) and
Fall. Step-up that signifikan marked by total Matriculate Registrant up to 4 its the last years. Now STIM
LasharanJaya Makassar on each year it has done good promotion effort draw near matriculate acceptance
and also before draw near matriculate acceptance, but focus is research that is done for the moment just
focuses on campus Promotion draw near matriculate acceptance. Researcher via source carries the wind
STIM Lasharan Jaya Makassar on year 2015 was concluded deep numeral which is Matriculate Registrant
amounts is:
No. Year Total registrant
1 2011 150
2 2012 180
3 2013 230
4 2014 310
5 2015 350
Data Foots Up year College Student 2011 2015

It can be seen from developing up to 5 HOWs the last years marks sense enthusiast step-up of STIM
Lasharan Jaya It don't despite severally instrumental promotion one did by campus party to introduce
and pulling consumers. according to Alma (2009:179) in Freddy Rangkuti (2009:28) interpose that
Promotion is a sort communication which give explanation for cogent prospective consumer about goods
and service. Meanwhile terminologicalsKotler and Armstrong (2009:72) interpose that promotion is
constitute activity that done by firm in the effort communication a product to consumer so gets to regard
yen buys consumer to corporate product. Activity that communication product top and persuades
custumer target to buy it. From defenisi up the stairs, can concluded is promotion constitutes one of tool
get communication in marketing that gets active role in informs, persuade, and reminds benefit back a
product so push consumer to buy product that at promotes that. To do promotion, one each company has
to get determines on the nose promotion tool that at uses to be able to reach success in sell.

Study: To prop STIM Lasharan Jaya Makassar promotion success ,so promotion strategy that did by
campus party draw near Matriculate acceptance is marked with promotion communication kind sort that
executed it gets bearing with Hotchpotch promotioning To Terminological FandiTjiptono( 2008:222) in

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Azhari (2015:5 ) in common promotion form have functions with, but that form get at differentiate to
base duty assignment in particular. Severally that special task at promotion hotchpotch mention.
1. Personal selling, are direct communication( gaze face) among grocer and customer candidate to
introduce a product to customer. Personal selling one that did by Dawn STIM Lasharan Jayait with
straightforward do promotion percentage bulk to consumer target which is student SMA brazes 3
one want to come in to colleges at severally regency one is at sulawesi.
2. Advertising, comprise of advertising and publicity, one that constitute approaching that utilize
communication media to pass on information to public multitude in one time. Advertising
(advertising) also really gets essential role in prop promotion success with wider range and gets to
be seen by ala again and again, that thing as one of individuality so prodigious advertising to be
utilized everywhere..
3. Sales promotion, are shaped persuasi direct via intensive various purpose one gets at rule to
stimulate product. Sales promotion also really gets essential role in prop product sell success
because gets to increase intention to buy product that we wants. In term promotion to sale can be
noticed that aim of one promotion was braced by problem service product sell this is prima Service
and also available many promotion that is done namely with marks sense bursary accessibility for
College Student what does indigent and College Student that gets achievement. On year 2015 it is
seen of total registrants that greatly until up to step-up number on each year it. One promotion
which dilkakukan really has to correspond to what does be needed by matriculate candidate that as
bursary, education cost abatamen etcetera. That thing constitutes one of energy Draw For get college
at dawn University and constituting one of Prime Factor in decision making.
4. direct marketing, is system marketing that gets interactif's character, one that utilizes one or many
advertising media to evoke measurable response and or transactions at bungling location.

Promotion did by campus promotion team that comprise of umpteen selection college student already
pass through training term to do promotion percentage and also available many lecturer that engage in
one promotion team, on each year it since year 2011 2014 campus promotion teams be divided as 3
teams, for team is first visit many regions which is, Maros, Pangkep,Pinrang,Soppeng,Wajo,Bone and
Wajo, meanwhile for team secondly visit Toraja's region, Enrekang,PalopoLuwu and Luwu East, and team
drding to visit Gowa's region, Takalar,Jeneponto,Bulukumba and Sinjai. That visited region not all school
those are there to be visitted but just a few school sample just that is wended becomes promotion target,
this promotion even usually been done at schools. Direct promotion team percentage to Student at within
class and usually also direct gathered by school party into Auditorium. Upon percentage was done by
student will give flyer and pulpen what does constitute souvenir from STIM LasharanJaya In that flyer
there are some information about STIM Lasharan Jaya as registration Information, Facility, Academic cost,
student's institute etcetera about information STIM LasharanJaya Makassar. Souvenir also being given to
on one's side school as utterance of gratitude. Sighted from that aught data aspect increasing happening
totals matriculate on year 2015 as much 12% of previous years. But was obviously thing .that was caused
since marks sense campus promotion that is done but a lot of another judgments that regard college
student candidate to drawn out at Dawn STIM Lasharan Jaya Makassar.

5. Conclusion

Base study result concerning Promotion Activity problem campus draws near Matriculate candidate
acceptance at STIM Lasharan Jaya Makassar therefore is gleaned from:
1. STIM Lasharan Jaya Makassar in each year it do khusunya's Promotion activity upon draw near
Matriculate acceptance.
2. STIM Lasharan Jaya apply Promotion Hotchpotch in implemented promotion one is done among
those is:
a. Personal selling, Dawn STIM Lasharan Jaya do straightforward Person sell by meets to
matriculate candidate which is, SMA'S student on a level with presenting to matriculate candidate
about STIM Lasharan Jaya is expected can become judgment to drawn out education to college
ladder at STIM Lasharan Jaya
b. direct selling, direct marketing that did by STIM Lasharan Jaya provides to service call
center and also website accessible at stimlash.ac.id to mengatahui about information which at needs
by matriculate candidate.

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c. Advertising, Advertising that did by STIM Lasharan Jaya matriculate acceptance utilize
advertising media namely mass media which our ordinary knows with Dawn Newspaper, and STIM
Lasharan Jaya utilize print media as Billboard, banner, flyer, and many Souvenir Souvenir as Pulpen,
wall clock and another.
d. Sales Promotion, promotion to sell that did by STIM Lasharan Jaya by use of promotion
about Lasharan'sSTIM Lasharan Jayaand providing also Bursary to in many College Student which
gets achievement (PPA) and bursary for College Student what does indigent (BBM).
3. On year 2015 STIM Lasharan Jaya Makassar cooperate with one of media which is celebes TV what
does cover and promoting about STIM Lasharan Jayato prospective new students
4. Campuses Promotion activity draw near Matriculate acceptance is expected is able to prop for step-
up to foot up matriculate on each year it.
5. Informations pervading activity 7 (Seven) of 10 (ten) more to Word of Mouth Communication
(WOM) or information broadcast of mouth to mouth and also College College Student involvement
STIM Lasharan Jaya student Institute activity.

Tips: Tips of writer for Side Academic STIM Lasharan Jaya :To increase matriculate amount, that
presumably gets to notice supporting aspect that regards to process matriculate candidate decision
making that wants to drawn out education at school ladder high in particular at STIM Lasharan jaya
Makassar.

References

Antinah.(2014). Journal. Mouth communication to mouth and its influence to loyalitas customer on
cipaganti Shuttle service Bandung's Route dipati's branch Jakarta measures at PT.CipagantiGraha
Bandung's Image. Indonesian Computer university. Bandung
Safar is Idea, (2015). Paper Consumer Buy decision Veil on College Student at Makassar's City. Dawn
university. Makassar.
Kotler Philip, (2005), Marketing management, Eleventh edition. 2.Jakarta's volume: PT is Index.
Kotler and keller, (2007). Marketing management, Edition 12. 1.Jakarta's volume: PT is index.
Kotler and keller, (2008). Marketing management, Edition 13. 1.Jakarta's volume: Erlangga.
Sugiyono, 2014.Understanding kualitatif's Research.Ninth casting. Bandung: Alfabeta.
SunyotoDanang, 2013. Consumer behaviour(Riset's guidance plain to recognize consumer). First casting.
Yogyakarta: CAPS ( Center Of Academic Publishing service).
Sangadji and Sopiah, 2013.Consumer behaviour( Practical approaching) First casting. Yogyakarta: Andi's
publisher.
Churchill, A, Gilbert.(2005). The Marketing Mix and Customer loyalty. Alfabeta. Duo
Cravens, W. David.(1998) Marketing Strategy. Volume 2. Jakarta. Erlannnga
Kotler, Philip. (2002). Marketing Management. Volume 2. PT. Prenhalindo, Jakarta
------------------- (2006).Marketing.Seventh Edition. Prentice Hall, Pearson Education Australia

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The Effect of Market Orientation and Competitive Advantage on Business Performance


ThroughConsumers Behavior of Computer Sales in Makasassar City, Indonesia

Aprizal, Rilfan KasiRantetadung, Kristison Tobeoto, Yohanis


STIM Lasharan Jaya Makassar, Indonesia
rilfan_krd@yahoo.co.id

Abstract: The aim of the research is to analyze direct effect of market orientation on consumers
behavior, direct or indirect effect of market orientation on business performance through consumers
behavior, direct effect of competitive advantage on consumers behavior, direct and indirect effect of
competitive advantage on business performance through consumers behavior, direct effect of
consumers behavior on business performance of computer sales in Makassar City. The research was a
correlative study to finds out interrelatedness relationship of facts in the phenomena under
researchconducted in the area of Makassar City. Then, it described systematically, factually, and
accurately the facts and phenomena. The sample consisted of 62 respondents of computer companies and
consumers of computer business. The data were analyzed using path analysis. The results of the research
indicate that (1) market orientation affects consumers behavior meaning that the change of consumers
behavior can be affected by the understanding of market orientation; (2) market orientation affects both
directly and indirectly business performance through consumers behavior of computer business in
Makassar City. Similarly, market orientation is empirically one of the effects of the increase of business
performance of computer business; (3) competitive advantage affects consumers behavior. Empirically,
one of the changes of consumers behavior is determined by competitive advantage of computer
businessmen in Makassar City;(4) competitive advantage directly and indirectly affects business
performance through consumers behavior. Empirically, the improvement of business performance of
business computer in Makassar City is affected by competitive advantage; (5) consumers behavior affects
business performance of computer business in Makassar City.

Keywords: market orientation, consumers behavior, competitive advantage, business performance

1. Introduction

The success of a company to achieve profit is the final goal of the company. The goal is not separated from
the achievement of business performance done by the company. Performance constitutes work
achievement or performance obtained in a certain period. The term performance is derived from job
performance or actual performance. If the employees do not work in an organization, the organization
will finally fail. Similar to individual behavior, performance level and quality are determined by a number
of personal and environment variables. Performance is the work behaviors displayed by those involved in
a company and can be described by a system of job evaluation or performance appraisal. Performance is
the output generated at a particular job function or activity during a certain period. This means that the
performance is identical to the results of efforts in performing their duties. The low performance of small-
scale enterprises of the results of various studies due to fundamental weakness which is characteristic of
small entrepreneurs in Indonesia, namely the lack of access to capital, skills and mastery of technology is
still low and low business management. To achieve maximum business performance as the computer
business faced with the problem of consumer behavior and competitive products as well as market
segmentation decisions in competition (competition) in the business world is unavoidable. With the
competition (competition), then these companies are faced with a variety of opportunities and threats
both from outside and from within the country. For every company is required to always know and
understand what is happening in the market and what the consumer desires, as well as changes in the
business environment so as to compete with other companies. Should a company engaged in the
computer field seeks to minimize the weaknesses and maximize its strengths. Thus the company is
required to select and define strategies that can be used for the competition.

Academic study of market orientation focused on the effect and market-oriented attitude. What is
noteworthy is how to understand the methods that will be developed towards market orientation.
Research (Narver & Slater, 1990), (Jaworski & Kohli, 1993) emphasized the need to open the way to the
mover of the market orientation. (Pelham & Alfred M, 1997) at the end of his research can provide advice
on exploring the antecedents of market orientation in companies large and small, including the individual
character of the manager and the employee. Therefore, this study sought to know the characteristics of

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leadership which consists of commitment, emphasis/encouragement, and courage in taking risks in


shaping the market orientation of an organization. This is consistent with findings (Pulendran, Speed, and
widing, 2000), which emphasizes the need for a test of the commitment towards market orientation,
whether the commitment towards market orientation affects/trigger activity towards market orientation.
The use of variable market orientation and competitive advantages are characteristic of the company in
achieving business performance to ensure the sustainability and plays an important role in achieving the
company's goal (R Rodgers, Hunter, D & Rogers, 1993). By providing support and encouragement as well
as building a shared commitment to achieve organizational success and also pointed to the
employees/subordinates about what and how work is done. This indicates that the subordinate will be
influenced by the leadership in communicating the policy and behavior towards market orientation
(Jaworski & Kohli, 1990). Therefore this study to measure business performance using indicators Balance
scorecard (BSC) of the non-financial performance in the form of consumer growth as the instrument used
to measure the impact of the strategy applied by the company.

While on the other hand the performance measurement efforts focused on developing the construct of
market orientation, that companies in the field of computer encouraged to pursue the maximization of
market orientation. This led to the argument that a market-oriented attitude is not enough, and the ability
of organizations to learn faster than competitors can generate superior marketing performance to the
next to be the only key to sustainable competitive advantage. Development of information and computer
technology in the field at the beginning of the 21st century has shown significant development. In
principle, this technology is to serve the information needs in a timely manner (fast), appropriate
(accurate), and targeted (relevant). Meet the needs of timely information when it may be available when
needed, thus requiring the speed of the process. Appropriate needs will be met if the information
produced is thus supporting the decision-making right. While the use of such information can only be
perceived benefits if given to the right people and really need it, so that information should also be
relevant to users. Every company has a goal to achieve growth and survival of their business in the short
term, medium term and long term, including on efforts in the computer field. In the era of globalization
characterized by increasingly intense competition and complex and high acceleration rates, efforts in the
field of computers are required to have the ability to develop a strategic choice in marketing management
so as to adapt to a dynamic environment. Given this fact, the market should be managed with systematic
efforts to benefit from the superior market performance.

Although only a few companies engaged in the computer field who truly implement market-driven
system, business owners began to see the computer market orientation as a very important factor in
developing a business to be able to secure and maintain market leadership. The reality may encourage
companies engaged in the computer field to further strengthen the basis of the strategy with concepts
such as customer focused or market oriented culture to continue accessing the market profitably to
ensure sustainable growth. In Makassar City,computer business has been developing rapidly besides
information technology (IT). The demand of IT products is increasing. This is strengthened by the
phenomenon that there are lots of both hardware and software in the marketswhich are not marketable
because they are not fixed with computer products. In other words, computer products are not in
accordance with consumers expectation. Therefore, computer business should produce various products
in line with consumers expectation. Business competition is increasingly strict in globalization era. This
demands the company to redevelop business strategy and tactic. If it is seen deeply, it is evidently that the
essence of competition lies on how a company can implement the process of creating products and or its
servicemore cheaply, better, faster compared to its business competitors. Moreover, based on the
application having been developed by computer companies, human resources are the prerequisites that
should be possessed in order to win global competition.

Market Orientation: Market orientation is a popular term used by practitioners in the field of marketing
as the implementation of the marketing concept. More than four decades, market-oriented company
strategy is seen by academics and practitioners as a key pillar for achieving good performance of
companies that excel at manufacturing and service business, Kara (2005). The marketing concept states
that to achieve organizational objectives such as market share and profitability depends on the ability of
companies to determine the needs and wants of target markets and satisfy more effectively and efficiently
than competitors (Aggarwal, et al., 2003). The last few years have increased the market orientation and is
seen as a key element for achieving the company's performance (Han et al., 1998). Market-oriented
companies are considered to have knowledge of the market higher as well as have the ability to connect
with people better, this ability is deemed able to guarantee the company to earn higher returns than the

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market-oriented companies lacking Day (1994). It is clearly stated by (Slater and Narver, 1995) that
market orientation is the aspect of organizational culture that can not be separated from organizational
learning. Market orientation needs a research in order to understand norms and values in achieving
organizational learning. (Kohli and Jaworski, 1990), researchers in marketing aspect, stated that market
orientation is a set of typical activities and behaviors.

Competitive Advantage: According to (Kotler and Amstrong, 2001) competitive advantage is an


advantage over competitors obtained by offering more values to consumers such as offering lower price
and providing more benefitswhich support the determination of more expensive price. One of the
researchers on competitive advantage is Sashittal (1997). In marketing his products, the companies also
rely on customers willingness. Basically every company competing in an industry environment has a
desire to be more superior than its competitors. Generally, companies implementing this competitive
strategy explicitly through the activities of the various functional departments of existing companies.
Basic thinking of the creation of the competitive strategy begins with the development of a general
formula of how the business will be developed, whether in fact that it is intended and what policies will
be needed to achieve that goal. Understanding of competitive advantage itself has two different meanings
but interrelated. Michael E Porter (2008) is the ability of a company to achieve the economic benefits in
the income it can be achieved by competitors in the market in the same industry.

The first sense emphasis on excellence or superior in terms of resources and expertise of the company.
Companies that have competence in the field of marketing, manufacturing, and innovation can make it as
the resources to achieve competitive advantage. Through these three areas of competence, the company
can develop a strategy so as to produce a marketable product. While understanding the emphasis on
excellence in performance achievement over the years. This understanding is related to the company's
position compared to its competitors. Companies that continue to pay attention to the development of
performance and seeks to improve the performance of these have the chance of achieving a good
competitive position it has an actual company has strong capital to continue to compete with other
companies (Droge & Vickrey, 1994).

Business Performance: Measurements conducted to determine the company's performance results


achieved by the company within a certain time. The performance criteria used must be able to be used as
a guide for companies in taking operational decisions to strategic objectives to be flexible, easy to
implement, timely, and understandable by all levels of management (Wisner & Fawcett, 2001). According
to (Narver and Slater, 2000), business performance is measured by profitability by comparing to set up
target. Companies performance can also be measured by studying their productivity seen through the
number of products yielded. To achieve a competitive advantage, products yielded should be as efficient
and effectiveas possible with the standardization of adequate quality since quality is very important fo
customers, besides price. According to (Kopalle and Lehmann Kopalle, 1995), with intensive promotion,
wide range, and full of interests, it is expected that the products are successful to increase business
performance.

Furthermore (Prieto and Revilla, 2006), using measurements of financial and non financial performance.
Financial performance is shown by the return on sales, profitability, sales growth, improved labor
productivity, and improvement of production costs. While non-financial performance is measured by
customer satisfaction, customer growth, employee satisfaction, quality products and services as well as
the company's reputation. (Similarly, Li, 2000) which states that the performance can be measured by
financial performance (financial performance) which consists of ROI, ROE, ROS and ROA as well as the
performance of the market (market performance) which consists of the sales growth rate and the growth
rate of the consumer. Furthermore, according to Robinson (1998) there are several ways to measure the
performance of the company, namely the growth in sales, which showed an increase of consumers to
accept the company's products. Second, Return on Equity (ROE), which indicates the effectiveness of
management in generating return on funds invested by shareholders. The definition refers to the level of
achievement of performance or achievements of the company within a certain time period. The
company's goal consists of: fixed stand or exist (survive), to make a profit (benefit) and can thrive
(growth), can be achieved if the company has a good performance Saints (2006). Performance
(performance) of companies can be seen from the level of sales, the rate of profit, return on capital, the
level of turnover and market share were achieved.

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Consumers Behavior: According to (Kotler and Amstrong, 1996), the decision of buyers to purchase is
greatly affected by buyers cultural, social, personal, and psychological factors. Consumers behavior is a
result of all kinds of experiences as well as human interaction with the environment is manifested in the
form of knowledge, attitudes and actions. In other words, the behavior is a response/reaction of an
individual to the stimulus coming from outside or from within. These responses can be passive (without
action: think, believe, behave) and active (action). In accordance with these restrictions, health behavior
can be formulated as a form of individual experience and interaction with the environment, especially
regarding knowledge and attitudes about health. Active behavior can be seen, while the passive behavior
is not visible, such as knowledge, perception, or motivation. Some experts distinguish between forms of
behavior into three domains, namely knowledge, attitudes, and actions or we often hear the term
knowledge, attitude, practice Sarwono (2004). In biological terms, the behavior is an activity or activities
of the organism in question, which can be observed directly or indirectly. Human behavior is a human
activity itself Notoadmodjo (2003). American Encyclopedia, behavior interpreted as an action-reaction of
the organism to the environment. The new behavior occurs when there is something that is needed to
cause a reaction, namely the so-called stimulus. Means specific stimuli will result in a specific reaction or
behavior Notoadmodjo (2003). Kwick (1974), as cited by Notoatmodjo (2003), behavioral acts or
behavior of an organism that can be observed and can even be learned. General, human behavior is
essentially the process of individual interaction with the environment as a biological manifestation that
he is a living creature (Kusmiati & Desminiarti, 1991). According to the author of the so-called human
behavior is activity that arises because of the stimulus and response, and can be observed directly or
indirectly.

Balanced Scorecard

The concept of Balanced Scorecard: Balanced Scorecard concept evolved in tandem with the
development of the implementation of the concept. Kaplan and Norton Balanced Scorecard stated that
consists of the scorecard (scorecard) and balanced (balanced). The scorecard is a card that is used to
record skorhasil someone's performance. The scorecard can also be used to plan a score to be realized by
personnel in the future. Through the scorecard, score personnel that will be realized in the future
compared with the results of actual performance. The result of this comparison is used to evaluate the
performance of the personnel concerned. Impartial words intended to show that performance is
measured in a balanced personnel from two aspects: financial and non-financial, short-term and long-
term, internal and external. Therefore, personnel should strike a balance between financial performance
and non-financial, between short-term performance and long-term, as well as between performance that
are internal and which are externally if scorecard personnel used to plan a score to be realized in the
future. Balanced scorecard developed a set of business unit objectives exceeded a summary of the
financial unit. Corporate executives can now measure the various units of their business by creating value
for customers the company's current and future, and how much the company should improve its internal
capabilities and investment in human resources, systems and procedures necessary to improve future
performance , Balanced Scorecard includes activities generated value creation and the participant
companies have the ability and motivation. (Kaplan & Norton, 1997).

Perspective Balanced Scorecard: Many shortcomings of traditional performance measurement system


encourages Kaplan and Norton to develop a performance measurement system that takes into account
four perspectives, namely:
1) Customer Perspective: At the customer, the company identifies and defines the customer and market
segment. Companies are expected to make a market segmentation and determine its target audience
is most likely to be targeted in accordance with the resource capabilities and long-term plans of the
company. This perspective has several major measurement of a successful outcome to the
formulation and implementation of a good strategy. Strategic targets from the customer's
perspective ie equity firm of which is the increasing trust of customers for products and services
offered by the company, the speed of the service provided, and quality of the company's
relationships with its customers.
2) Financial Perspective: Financial performance measures indicate whether the strategy and its
implementation is able to contribute in generating profits for the company. To make the
organization an institution that is able to create the necessary excellence in finance. Through
excellence in this field, organizations gain control over resources that are indispensable for realizing
the other three strategic perspective that customer perspective, internal business processes, and
learning and growth perspective.

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3) Process Perspective: Internal business managers must focus their attention on internal business
process that determines customer satisfaction on the company's performance from the customer
perspective. Performance from the perspective gained from the process of internal business
performance held company. Companies must select processes and competency that are superior and
determine measures for judging the performances of processes and competencies. Strategic
objectives of the business process are organizational capital, such as increasing the quality of
customer service processes, computerization process services to customers and facilitate the
application of technology infrastructure services to the customers.
4) Learning and Growth Perspective: (Kaplan & Norton, 1996) divides the benchmark of this
perspective in three principles:
(a) People, workforce in companies today further required to be able to think critically and to evaluate
the environment's processes and can provide corrective suggestions. Therefore, in the measurement
of the company's strategy, one of which must relate specifically to the ability of employees, namely
whether the company has launched the capacity building of its human resources. In relation to
human resources, there are three things that need to be reviewed in implementing the Balanced
Scorecard:

(1) The level of employee satisfaction: Employee satisfaction is one of the conditions for increasing
productivity, quality and speed of service to consumers react. Employee satisfaction becomes
important especially for service companies.
(2) Employee Retention: Retention of employees is the company's ability to retain its best workers to
continue in their organization. Companies that have invested in human resources would be wasted if
it does not retain its employees to continue in the company.
(3) Productivity of employees: Productivity is the result of the average impact of an increase in expertise
and spirit of innovation, internal process improvement, and customer satisfaction levels. The goal is
to connect the output done by employees of the total number of employees. Productivity of
employees used to determine the productivity of employees in the work for a certain period. The
measurement by comparing the operating profit by the number of employees.
(b) System, motivation and skills of employees alone is not enough to support the achievement of the
objectives of learning and growth process if they do not have sufficient information. Employees in
the field of operational need information fast, timely and accurate feedback, so employees need an
information system that has sufficient quality and quantity to meet those needs.
(c) Organizational Procedure Procedures performed an organization need to be considered to achieve a
reliable performance. Procedures and repair routines must be continued because the employees
were perfect with an abundance of information will contribute to the success of business if they are
not motivated to act in harmony with the objectives of the company. In this perspective the
measurement components used are:
(1) Productivity of employees, to determine employee productivity in the work for a certain period. The
measurement by comparing the operating profit by the number of employees.
(2) Retention of employees (employee turnover) Employee turnover is used to determine the ratio
between the number of employees out with total employees of the current year (Source:
http://www.indoskripsi.com/balanced scorecard).
(3) Employee satisfaction measurement was performed by an employee satisfaction survey through
interviews.
(d) Advantage Balanced Scorecard
(1) Comprehensive, Before the Balanced Scorecard concept was born, the company assumes that the
financial perspective is a perspective that is most appropriate to measure the performance of
companies. After the Balanced Scorecard is successfully applied, company executives realized that
the financial perspective is actually the result of the other three perspectives, namely consumers,
business process, and learning growth. Performance measurement used should include all aspects of
the size (overall) in the size of the financial and non-financial. Measurement broad and
comprehensive (comprehensive) This has implications for the company to be wise in choosing the
corporate strategy and empowers companies to enter the business arena complex.
(2) Coherent, In the Balanced Scorecard is the term causality (causal relationship) where there is a
relationship between the size or performance indicators that exist with the goals and objectives to
be achieved. Each perspectives (customer, financial, internal business processes, learning and
growth) have a strategic goal (strategic objective) which may number more than one. The definition
of strategic goals is a state or condition that would be realized in the future elaboration of the
company's goals. Strategic targets for each perspective should be explained causal relationship. For

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example, the growth of Return On Investment (ROI) is determined by the increased quality of service
to consumers, service to consumers could be improved as the company implements appropriate
information technology, and the successful implementation of information technology supported by
the competence and commitment of employees. The causal link is called coherent. All the strategic
objectives in the company must be explained. As an example of why consumer loyalty decline, why
the company's products declined, why decreased employee commitment, and so on.
(3) Balance, Balance strategic objectives resulting in four perspectives include short and long term
focusing on internal and external factors. The balance of the Balanced Scorecard is also reflected in
the staff personal scorecard aligned with the company so that any personal scorecard that is in the
company responsible for promoting the company. Indicators are determined based on the targets to
be achieved should be balanced between outward (financial aspects and customer) and focused into
the (process and improvement of human resources).
(4) Measured, premise that each perspective can be measured is the existence of the assurance that "if
we can measure it, we can manage it, if we can manage it, we can Achieve it ''. Strategic targets that
are difficult to measure such as the customer perspective, internal business processes, and learning
and growth, using the Balanced Scorecard can be managed so that it can be realized.

2. Methodology

The research was a survey study aiming to disclose facts using primary data obtained through
questionnaire and interview techniques related to market orientation and its impacts on busines
performance of computer business in Makassar City. The research was a descriptive study with cross
sectional design approach. The data were obtained within a certain period (Husain, 2004:43) by studying
factual phenomena through respondents perception, i.e, the businessmen of computer business by
focussing on: Market Orientation (X1), Competitive Advantage (X2), Consumers Behavior (Y), and
Business Perfoemance (Z) of computer business in Makassar City. Then, to answer the research
hypotheses, explanatory approach was used to study the correlation among the variables (Singaribun,
1995:2).

Operational Definition of Variables: To avoid errors in interpretation of the terms used, it is necessary
to explain the operational definitions as follows:
1. Variable Market Orientation (X1) is the respondent's perception of the market orientation that
includes the marketing mix in which the products (goods, services, and ideas) marketed embodies
the concept that experienced process development and production directed to the end user.
2. Variable Competitive Advantage (X2) is the respondent's perception about the ability to provide
more value to its products than its competitors and that value does bring benefits to consumers.
3. Variable Consumer Behavior (Y) is the respondent's perception about the decision-making process
and the physical activity of individuals who are all these people involved in evaluating, obtaining,
using, ataumengabaikan goods and services company where making purchases computer products.
4. Variable Business Performance (Z) is the respondent's perception of business performance is the
result obtained by the company within a certain time seen non-financial performance improvement
of product quality, reputation in the business and customer loyalty.

Data Collection Techniques: The type of data in this study included primary data obtained through
questionnaires and interviews with respondents. While secondary data is the documentation obtained
from the Office of Industry and Commerce of Makassar and other related institutions. The population in
this study are all computer businesses domiciled in the city of Makassar. Search data is done by using the
documentation, observations, questionnaires and interviews. Secondary data was collected based on
documentation technique which is a technique of collecting data from documents relevant to the
problems studied. While the primary data collection is done by using several techniques as follows:
1. Observation of conducting direct observation of the object under study to obtain more accurate
information with a direct view of the situation and the real condition
2. Questionnaire, namely the collection of data through a list of questions in writing by using a type of
enclosed questionnaire is a set list of questions-statement with alternative answers that have been
provided based on the Likert scale (Likert's Summated rating) with a scale of 1-5.
3. Interviews, namely researchers conducted interviews directly with the respondent by way of asking
a number of questions to complete as well as a cross-check of the data questionnaire.

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Discussion

Variable X1 (Market Orientation): Demand increasingly broad market and continues as well as the
saturation and maturity of the market, causing the company to be more attentive to consumers and seek
new market opportunities. The desire of consumers is more important than the products currently sold to
consumers. Marketing should be put on the concept of how the company knows what customers want
and meet them with putting the satisfaction and consumer values as the main thing and transactions as
the basis for analysis. Therefore, market orientation is an implementation of the marketing concept, it
could be inferred that the market-oriented company is a company whose actions always consistent with
the concept pemasaran.orientasi strong market in the company, will be able to quote and provide better
satisfaction to the buyer and the company will obtain greater results over the offerings provided.

X2 (Competitive Advantage): Competitive advantage is the ability of a company to achieve the economic
benefits that can be achieved by competitors in the market in the same business. Companies that have a
competitive advantage has always had the ability to understand the changing market structure and being
able to choose an effective marketing strategy. The marketers who do not create a relationship between
image creation and sale of products often do not do a good job. Many companies are successful in selling
products because their products have a clear image which positions them at the point of potentially
interesting in so many consumer choices. Most companies that are successful are those who "have a
word" which occupies a special place in the minds of consumers. Various concepts were developed at this
time implies that the importance of imagery as a means or a tool to achieve competitive advantage in the
marketplace. Once a company has clearly defined its image to consumers, so the next step is to
communicate the image that these elements into a source of competitive advantage held by the company.
The imaging process is carried out continuously, companies will enjoy market returns in the marketing
concept, which is higher than can be achieved by competitors in the same business.

Variable Y (Consumer Behaviour): Consumer behavior is a matter of individual decisions and the
determination to get the competition and use of goods and services. Consumer behavior is the activities of
individuals who are directly involved in obtaining and using goods and services, including the decision-
making process on the preparation and define specific activities. From the above understanding the
consumer behavior is an action and social relations are conducted by individual consumers, groups and
organizations to assess, acquire and use goods and services through exchange or purchase diawli the
decision-making process that determines the actions of such ,

Variable Z (Business Performance): Performance in the company's business is the answer of the success
or failure of the firm's goal has ditetapkan.Pada vote on company business performance measurement
used method of Balance Scorecard (BSC) in the non-financial (non-financial). In the measurement of
business performance using non-financial dimensions measured using several indicators, among others:
Customer Perspective, Internal Business Perspective and learning and growth. To determine the
respondent's perception of the performance of its business using non-dimensional business performance
keunagan

Market orientation directly affects consumers behavior of computer business in Makassar City. The
description of variable indicator indicates that of consumers behavior with four indicators, consumers
decide to make transaction of purchasing computer products by doing the following things: consumers
are interested in the products; consumers compare price, product quality, design, brand, and
specification; consumers choose to make transaction. In relation to the results of the testing of
hypotheses, consumers behavior variable affects market orientation, meaning that one of the
determiners of the increase of market orientation is consumers behavior variable. This is in line with
Kanuks (2000) idea that Consumer behavior can be defined as the behavior that customer display in
searching for, purchasing, using, evaluating, and disposing of products, services, and ideas they expect will
satisfy their needs. This means that behavior given attention by the consumers in seeking, purchasing,
using, evaluating, and ignoring expected products, services, or ideas could satisfy consumers to fulfil their
needs by consuming offered products or services. Similarly, (Loudon and Bitta, 1993) states
thatConsumer behavior may be defined as the decision process and physical activity individuals engage in
when evaluating, acquiring, using, or disposing goods and services.

Can explain consumer behavior is the decision-making process and the physical activity of individuals
who are all these people involved in evaluating, obtaining, using, or disregard of goods and services.

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Understanding consumer behavior according to (Engel et al., 1994) is directly involved in the act of
obtaining, consuming, and spent products and services, including the process that precedes and follows
from this action. Mowen (1990) says that consumer behavior is the study units and decision-making
processes involved in receiving, using and determination of goods, services, and ideas. The definition uses
the term unit decision makers, because decisions can be made by individuals or groups. The definition
also says that consumption is a process that begins with the reception, consumption, and ends with the
determination (disposition). The acceptance phase analyzes the factors that influence the choice of
consumers to the product, the stage of actual consumption of analyzing how consumers use the products
obtained. Phase determination shows what consumers do after finished using the product. Study of
consumer behavior is the study of how an individual makes the decision to use the resources that you
have on consumption related to something (goods or services). (Schifman and Kanuk, 1991) says the
study include; what to buy, why he bought it, and how often he buys.

Market orientation directly or indirectly affect business performance through consumers behavior of
computer business in Makassar City: The description of variable indicator indicates that of competitive
advantage with three advantage indicators, the businessmen of computer business in Makassar City do
the following things: product uniqueness, quality advantage, and competitive price are the priority of
computer businessmen. This in line with what (Bharadwaj et al., 1993) stated that competitive advantage
is the result of the implementation of strategy which makes use of various resources possessed by a
company. Unique expertise and assest are considered sources of competitive advantage. Unique expertise
is a companys capability to make employees as an important part in achieving competitive advantage. If
companies have capability to develop well employees expertise, it will make them superior and it will be
difficult for their competitors to imitate the human resource-based strategy they apply. Meanwhile, assest
or unique resources are real resources needed by the companies to run their competitive strategies. The
two resources should be directed to support a low-cost companyies performance and have differences
from other companies. This is in line with that proposed by Porter (1990), which explains that the
competitive advantage is the heart of marketing performance to face the competition. Competitive
advantage is defined as a strategy to benefit from companies that cooperated to create a more effective
competitive advantage in the market. This strategy should be designed to achieve continuous competitive
advantage that the company can dominate both markets and new markets. Competitive advantage is
basically grew out of values or benefits created by the company for its buyers. Consumers generally
prefer to buy products that have more value than desired or expected. However, that value will also be
compared with the price offered. Purchasing the product will occur if consumers consider the price of the
product in accordance with the value the needs and desires of consumers. Penerepan market orientation
will bring improved performance for these companies.

Competitive advantage directly affects consumers behavior of computer business in Makassar City:
Consumers behavior, competitive advantage, and consumers orientation are among the determinants in
the achievement of business performance of a company. The desrciption of variables with indicators
towardscomputer bussinessmen indicates that business performance achieved by computer companies in
Makassar can be achieved through consumers behavior, competitive advantage, and market orientation.
This is in accordance with the results of the research done by (Jaworski and Kohli, 1993). However, in
general, the results of the researches examining causal relarionship between market orientation and
business performance conclude that market orientation has an effect on business performance (Bhuiyan,
1998; Deshpande et al., 1993; Harris and Ogboma, 2001; Jaworski and Kohli, 1993; Matsuno and Mentzer,
2000; Pitt et al., 1996; and Selnes et al., 1996). This is in line with the ideas proposed by Ellis (2006) in
her research entitled Market Orientation and Performance: A Meta-Analysis and Cross-National
Comparisons. She stated that the quantitative evidence obtained from meta-analysis in 56 reseaches as
the samples conducted in 28 countries proves that in general market orientation determines companies
performance. The results of her research support the ones proposed by (Kirca et al.,2005) who did
research entitled Market Orientation: A Meta-Analytic Review and Assesment of Its Antecedents and Impact
on Performance. This indicates that market orientation has an effect on organizational performance in
general. However, the research examining correlation between market orientation and organizational
performance by using business performance indicators such as market share, selling growth, consumers
satisfaction, and consumers loyalty are still contradictive results.

(Jain and Bhatia, 2007) conducted a study of 600 chief executive officers, chief marketing officer, or senior
officers at a manufacturing company in New Delhi India is found that market orientation has a positive
impact on sales growth, market share and customer satisfaction. While (Castro et al., 2005) conducted a

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study of 319 financial institutions in two provinces in Spain, from the research showed that market
orientation has an influence on the quality of service, while the service quality affects customer
satisfaction. (Kirca et al., 2005) conducted a meta-analysis of all the findings in the literature market
orientation. Research Kirca (2005) was performed using two stages of research, namely: the first phase of
analysis bivarite against quantitative summaries related to the consequences of market orientation, the
second stage multivariate analysis the overall study to identify the significance of the antecedents of
market orientation and process variables that mediate the relationship between market orientation to
performance. Research (Kirca et al., 2005) have also obtained the findings that the market orientation has
no effect on customer loyalty. Companies that have a high degree of market orientation will have a high
business performance. This is because the company has a high degree of market orientation will have a
competitive advantage in terms; product quality, service quality, product innovation and cost
(Sittimalakorn and Hart, 2004). While Chang and Chen (1998) stated that the company has implemented
more market orientation will be able to provide better services so as to satisfy customers and gain higher
business.

Several other studies give different results, namely (Jaworski and Kohli, 1993) with a research entitled
"Market Orientation: Antecedent and Consequences" in the study (Jaworski and Kohli, 1993) using a two
sample study, with a sample size of 222 Strategic Business Units and 230 managers in the United States.
Research results both on samples and on samples of the two states that market orientation has no
influence on market share.Penelitiannya conducted by Harris (2001) of the 241 managers in the UK, using
a sales growth of business performance indicators, indicate that market orientation is not have an impact
on sales growth as measured subjectively and objectively. Another study conducted by (Deshpande et al.,
1993) also obtained a finding that the market orientation has no significant effect on growth and market
share. Research (Deshpande et al., 2000) supports the results of previous research conducted by Pelham
(1997) which states that the market orientation has no significant influence on the growth of sales and
market share. The study also supports research conducted by (Selnes et al., 1996) which states that the
market orientation has no significant influence on market share.

(Baker and Sinkula, 2005) conducted a literature review of the results of empirical studies that examine
the effect of market orientation on new product performance, profitability and market share in the
research entitled "Market Orientation and the New Product Paradox". A literature review conducted by
(Baker and Sinkula, 2005) were restricted to: (1) research articles published after 1990, (2) only studies
that test the performance of new products, profitability and market share as the dependent variable, and
(3) of 55 journals around the world who has been ranked by (Theoharakis and Hirst, 2000). Results of
literature review states that 16 of 17 (94 percent) of empirical research to prove the positive influence of
market orientation on the performance of new products, but only 18 of 27 (33 percent) the results of
research that prove the positive influence of market orientation towards profitability, and only 4 of 12
(33 percent) of empirical studies which proved the positive influence of market orientation on business
performance. (Narver and Slater, 1998) stated that although the results of research on the relationship
between market orientation with the performance they give different results, but research on the effects
of market orientation on performance is still interesting to do for the interest in the field of strategy.
Based on the above it is clear that the study aimed to examine the effect of market orientation on business
performance still produce contradictory findings.

Competitive advantage has direct and indirect effects on business performance of business performance
in Makassar City: The research examining the effect of market orientation on business performance has
been examined extensively, but the researches on antecedent of market orientation are still in a small
number (Foley and Fahy, 2004). Therefore, question on how to develop market orientation hasnt been
answered clearly yet. The frame developed by (Jaworski and Kohli, 1993) has become the inspiration of
some important literatures which empirically examine either antecedent or consequences of market
orientation Pulendran(2000). According to (Avlonitis and Gounaris, 1999), literatures on antecedent of
market orientation have been ignored, while there are only a small number of analyses on antecedent of
market orientation following the original analysis of(Jaworski and Kohli, 1993). Therefore, literatures on
market orientation have been able to give contribition to the implementation of marketing concept
application, but they still have a very little contribution to practitionists in developing marketing.

(Narver, Slater & Tietje, 1985) states that the results of research that has proven that market orientation
positively influence business performance has been widely but how a business can create or increase the
market orientation is still questionable. The same was stated by Bhuiyan (1998) which states that

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empirical studies are used to answer the question why a company more market-oriented than the other
companies are still very limited. To overcome the limited research on the antecedents of market
orientation Pulendran (2000) suggest that further research is needed to better investigate more fully
about the antecedents that could affect market orientation in business performance. Factors leadership
and organizational systems have a positive impact on the implementation of market orientation in the
organization Webster (1988); (Jaworski and Kohli, 1990). Factors leader in Small and Medium
Enterprises (SMEs) have a very important role for the success of the organization. Some disadvantages
leader Small and Medium Enterprises (SMEs) in Indonesia in relation to the market orientation of the
entrepreneurial spirit is weak, low commitment of the leadership to implement a market orientation in
the organization and lack of training. While problems in the organizational system is weak
implementation of marketing-based reward system because generally the reward system in the Small and
Medium Enterprises (SMEs) are still based on the system time and a contract system. Therefore, in this
study the factors characteristic of leadership that consists of entrepreneurial orientation, long-term
orientation, learning orientation, and a factor of organizational systems that reward system based
marketing serve as antecedent variables of market orientation.

Research on market orientation and business performance at this point is still divided into two distinct
streams Gima (2001). Management literature more emphasis on market orientation (Covin and Slevin,
1989; Zahra (1993), whereas the marketing literature emphasizes a market orientation (Jaworski and
Kohli, 1993; Narver and Slater, 1990; Ruekert (1992); Slater and Narver, 1994). The existence of two
different streams raises counterproductive, it is because the two orientations can be linked to explain the
creation of business performance (Hamel and Prahaland, 1994; Slater and Narver, 1995). (Moris and Paul,
1987) states that the market orientation and entrepreneurial orientation still need to be connected in
order to achieve organizational performance. Business performance is believed to have a direct
relationship with the market orientation (Matsuno et al., 2002). According to Miller (1983)
entrepreneurial orientation is an orientation to try to be the first to market product innovation, risk-
taking and undertake proactive measures to be able to beat the competition. Meanwhile, according to
(Menon and Varadarajan, 1992) which states that the company has proinovasi culture will encourage the
dissemination and use of information (which is an important part of market orientation). (Kohli and
Jaworski, 1990) states that a manager who has the courage to take risks and accept failure will tend to
prefer to introduce new products to respond to changing consumer demand. Proactive in the context of
entrepreneurship related to the perspective to look ahead and tend to take the initiative to anticipate and
pursue new opportunities and to participate in seizing the market (Lumkin and Dess, 1996). Dimensions
in entrepreneurial believed to encourage proactivity in identifying new market opportunities (Miller and
Friesen, 1982; Vekatraman, 1989), this would increase the level of market intelligence and
responsiveness (Kohli and Jaworski, 1990).

Research on the long-term orientation at this point is very interesting and relevant to current conditions
in which each supplier must provide individual treatment to each consumer (Redondo and Fierro, 2005).
Long-term orientation means the offer and get added value by creating, developing, and maintaining
relationships between customers and suppliers Rexha (2000). If both parties either the buyer or the
seller a profit, it is deemed as a basis to ensure the success and continuity of the company in the market
(Kothandaraman and Wilson, 2001). Although there has been much research on the long-term orientation
of the relationship between the buyer and the seller Spekman (1988); (Heide and John, 1990); Ganesan,
(1994); (Garbarino and Johnson, 1999) but there is very little that put these variables as antecedents of
market orientation. Several studies have attempted to examine the relationship between market
orientation with business performance (Zahra et al.,2000; Hult et al., 2001; Baker and Sinkula, 1999).
Research linking market orientation with performance generally show that companies that have a degree
of market orientation tend to have a higher performance than its competitors, especially in an uncertain
environment and the intensity of competition is high (Dicson, 1992;DeGeus, 1988). The company's ability
to learn from experience is very important in determining the performance (Farrell, 2001; Nevis et al.,
1995; Slater and Narver, 1995). Learning allows the company to select target markets and enter new
markets, so as to improve performance (McCann 2001; Zahra et al., 2000).

Studies that tested the entrepreneurial orientation (Farrell, 2001; Davis et al., 1995); (Slater and Narver,
1995), long-term orientation (Spekman, 1988; Heide and John, 1990; Ganesan, 1994; Garbarino and
Johnson, 1999) and the orientation learn (Zahra et al., 2000; Hult et al., 2001; Baker and Sinkula, 1999) is
generally carried out individually, and directly linked to the performance of the organization, therefore it
is necessary to do research to develop models multikonstruk that evaluated the effects the third

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orientation ie entrepreneurial orientation, long-term orientation and learning orientation through market
orientation as an intervening variable. Reward system can shape the behavior of employees in the
organization (Jaworski, 1998). More clearly Pulendran (2000) states that there is a positive correlation
between the reward system with market orientation. Based on these descriptions can be explained that
the organization implementing the reward system based on business performance will encourage the
growth of market orientation within the organization. Studies that tested the effect of the reward system
of the performance is generally performed on large companies with a background in the developed
countries Jaworski(1998); Pulendran(2000) therefore it is necessary to study to test the effect of the
reward system to a market orientation on Small and Medium Enterprises (SMEs) with a background in
developing countries like Indonesia. This is because, according to (Jaworski and Kohli, 1990) market
orientation will be less useful in a situation of limited competition market conditions stabilized, whereas
in developing countries is characterized by intense competition and konsidi unstable market Liu(1999)
so that the research on market orientation becomes more important.

Consumers behavior directly affects business performance of computernbusiness in Makassar City:


Innovation has an important function in management since innovation is related to companys
performance. This has been proven by (Damanpour and Evan, 1984; Damanpour, Szabat, and Evan, 1989;
Zahra, de Belardino, and Boxx, 1988). Even according to Kotler (1991),return on innovation achives 50
percent on average or higher than companys total income. More specifically, in the relationship between
innovation and business performance, some researchers have also proven that innovation has a possitive
effect on business performance. (Agarwal et al., 2003) examined the effect of innovation on objective
performance measured with occupancy rate and market share and subjective performance measured
using service quality and consumers performance. The research done by (Agarwal et al.,2003) indicated
that innovation affects business performance either measured with objective approach (occupancy rate
and market share) or measured with subjective approach (servuce quality and consumers
satisfaction).Meanwhile, Subin-Im and Workman (2004) also did research in relation to innovation and
business performance. In this research done to 106 companiesenganged in the field of technology, in the
United States, they indicated that in developing new products and marketing programs, creativity has a
positive a effect on business performance.

However, several other studies actually provide different results that (Mavondo et al., 2005) states that
the product innovation does not have a significant impact on the effectiveness of marketing. Besides
(Mavondo et al., 2005; Darroch, 2005) in research in the field of industry in New Zeland also found that
innovation does not have a good influence on the performance as measured by financial performance and
non-financial performance that is market share and sales growth. The results of the research indicate
some findings at computer business in Makassar City as follows:
1. Market orientation has an effect on consumers behavior of computer business in Makassar City. This
indicates that market-oriented companies are considered to have higher knowledge on market and
have ability to make better contact with consumers. These capabilities are considered to be able to
guarantee the companies to get higher profit compared to the less market-oriented companies.
2. Market orientation has effect on business performance of computer business in Makassar City. This
finding is in line with the theory of business performance proposed by (Baker and Sinkula, 2005)
who stated that in general, organizational performance is measured with one or more
measurements as follows: (1) the success of the new products, (2) profitability, (3) market share, (4)
the last whole organizational performances (profitability, selling growth, Return on Investment
(ROI), the success of the new products, and market share), and (5) organizational performance in
general (consumers satisfaction, employees satisfaction, consumes retention, consumers service,
and perception on product quality). It is also the same as the results of the previous findings stating
that market orientation generally has two tendencies. First, the measurement of organizational
performance tends to mediate correlation between market orientation and last organizational
performance(Baumgartner, H &Pfeffer, 1996; Matear et al., 2002; Pelham, 1997). Second, the
mediation of new product innovation has a role on the correlation between market orientation and
organizational performance (Atuahene-Gima, 1996; Baker &Sinkula, 1999a; Han, Kim, and
Srivastava, 1998). The use of last organizational performance in market orientation research in
aggregate causes the role of mediation variable becomes unclear.
3. Competitive advantage has an effect on consumers behavior of computer business in Makassar City.
This clarifies that competitive advantage is the result of the implementation of strategy which makes
use of various owned resources. Unique expertise and asset are considered the resources of
competitive advantages. Unique expertise is the ability of the companies to make their employees as

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the important parts in achieving competitive advantage. The ability of the company in developing
well the employees expertise will make the companies superior and the application of human
resources-based strategy will be difficult to be imitated by their competitors. Meanwhile, unique
asset or resources are real resources needed by the companies to run competitive advantage. These
two resourcesshould be directed to support the behavior of consumers who are always interested in
marketed product innovation.

3. Conclusion
1. Market orientation has an effect on consumers behavior meaning that consumers behavior can be
affected by understanding on market orientation.
2. Market orientation has direct and indirect effect on business performance through consumers
behavior of computer business in Makassar City. Similarly, market orientation is empirically one of
the factors increasing the business performance of computer business in Makassar City.
3. Competitive Advantage influence on consumer behavior. Empirically the change in consumer
behavior is determined by the competitive advantage of computer entrepreneur in the city of
Makassar.
4. Competitive advantage directly and indirectly affects business performance through consumers
behavior. Competitive advantage is empirically one of the factors affecting the improvement of
business performance of computer business in Makassar City.
5. Consumers behavior has an effect on business performance of computer business in Makassar City.

References

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Pelham, Alfred. M. (1997) Mediating Influence on the Relationship Between Market Orientation and
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Fans vs Music Beneficiary at Music Industry in Indonesia in Seeing Through the Aspect
Approach of Marketing Mix

Aditya Halim Perdana Kusuma, Andika Pramukti


adityatrojhan@gmail.com

Abstract: This research aim to see influence and magnitude influences between dependent variable
(Marketing Strategy) with his (her variable indicator be : Advertising, Personal Selling, Public Relation,
Direct Selling, Sales Promotion To Variable Independent (Loyalty Fans) with his(her variable indicator be :
Cognitive, Affective, Konatif and The Action of Histories of Purchasing. This research taking sample counted
250 Respondents by using method the retrieval of sample that is sampling random equiped with the data
of demography is in the form of age, level of education, marriage and rate of return status . This research
analysis be regression method. Result of this Research concluding that there is influences positively and
significantly between Marketing Strategy To Loyality Fans with level of significance () 0,00 (p), The
Value of Cronbach Alpha 0.8 magnitude the acceptance of hypothesis (H 0 )is equal to 65% and concluded
that age category 25-30 years are fans are heavy certain artist, under 25 years are to enter in a music
beneficiaries categories.

Keyword : Marketing Mix, Loyalty, Consumer Behavior

1. Introduction

Music at this the present have become the important portion in life of public in the many circle. Music do
not know a regional boundary age, age, gender and race . Music can be enjoyed by no matter who. Music
have many the different functions in human life especially in social aspect. Music was used to
communicate between one individual with other individual. This thing really enable for people from the
background of the different culture may each other communicating through a music. Music also can be
created as container accomodating creativity. Creativity form a identity or character that making an
audience to feel that music is that made by certain musicians differ with other musicians. Now industrial
growth of fatherland music becoming move forward, this thing marked with more and more the the many
of new band that popping out with the music style various. This condition triggering incidence of
restlessness for band which in advance excise in the music industry indonesia. Competition that there
between the band, do not only claiming the potency of which was owned by a band but also effective
marketing strategy that used management that shading the band. It's wrong one step is that used in
applying the effective marketing strategy is by increasing the quality and promotion with a purpose to
obtaining the satisfaction of devotee. The satisfaction of direct fans without will affect its loyalty and will
have an effect on also to the band existence. Hurriyati (2005 : 21) that It's wrong one strategy in a hope
that a organization is able to competing is by giving the best service and build the image either in
consumer eye and also public, because the service and image can affect the process of purchasing and
loyalty of a product or service . In its attainment with aim to to increase a customer satisfaction.
According To Barsky (1992) customer satisfactions are one of successes keys of a effort. Keep up fans
what loyal shall get the most main preference than getting fans that new. This thing because of that to
recruit or get fans new is not thing that easy and cost money what many, then is of very harm if
management side release fans what loyal. Loyalty fans in this case gotten through a fasting creation fans
itself to doer artist in the music industry, not only work that can be enjoyed but also from the angle of
interaction between fans and its idol, where fans feel its hope fufilled so that will lead to loyalty. However
is a thing which need to be underlined that requiring to be there pendefenisian capable to mengklasifikan
someone in a beneficiary and which category really fans. A fans closely with loyal attribute while
beneficiary have the dynamic and easy trend change as according to desire.

2. Literature Review

This research focus at the usage of marketing concept in increasing a loyalty fans. The meant marketing
concept to affirm that successfulness a management in realizing its purpose very affected by an its ability
in a mengindetifikasi need and the desire of customers of its targets and give satisfaction is that expected
in the more effective and efisisen, and guarding customer loyalty. Done lle L. Tavel The impact of social
medium on touring and live performance .Result of the research indicate that tur and demonstrate directly
are one of main promotions mediums in selling album and through a social medium become one of the

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way to promote both the things the. Michael Margiotta that entitling Influence of social medium on the
management of music star image. Result of this research indicating that the active act of social medium
determine the successfulness of management in forming an image star, with way actively promote his(her
artist through the social media vehicle. Rhenald Kasali elaborate marketing concept, the concept of
promotion and parts of promotions what heavily used by organization. Inferential marketing concept that
there there are some things that must be fulfilled in the the happening of marketing process. Promotion is
that meant by Rhenald Kasali is as part of publication continuation by persuading prospecting customer
to know and take an interest in the product of which was marketed. The Next, Philip Kotler look into
exchange to have important value in a marketing concept. This concept menintikberatkan in the
happening a social process that used individual and also group in fulfilling its need.

Philip Kotler (2005:10) elaborate marketing concepts as social process either individual and also group
get what they to require and want with creating, offer, and in free to exhange the valuable product and
service with other party. Marketing refer to a social process that leaning at the fill of individual need and
group by creating exchange of so that giving the maximum satisfaction. Walling (200 7: 23) define
promotion as a communications informations of seller and buyer with aim to to change stand and
behaviour buyers, that before did not know to becoming to knowing so that becoming buyer and
remember the product. Equally, promotion is communication means and the submission of messages are
that done either by the company and also intermediary with a purpose to giving information about
product, price and place. That information have the character of to inform, persuade, remind back to
consumer, intermediaries or the combination of both of it. Hasan, 2013:121). Customer loyalty was
explained in three concepts, between its: 1) the concept of generic, brand loyalty show the trend of
consumer to buy a certain brand with level of the high consistency, 2) concept of behavior, re-buying was
attributed to brand loyalty (brand loyalty 3)the concept of re-buying, is the result of the company
domination successfully make his(her product becoming the only the made available continuous
alternative perform promotion to captivate customer. in the whole process fill of marketing strategy that
want to be reached is an improvement of loyalty at consumer.

The the happening of brand loyalty to consumer was caused existence of satisfaction and dissatisfation
influence with the brand the accumulated continually beside existence of perception about the quality of
product. Therefore, customer loyalty was defined as one who buy regularly and repeatedly, they(thems
continually and with ulangkali to come ketempat the same to satisfy its desire by having a product or get
a service and pay [for] the products. Determinant factors to customer loyalty, consist of: 1) customer
satisfaction, customer satisfaction was considered as strong predictor to the faithfulness of customer is
included positive recommendation and intention buy again, 2) service quality, quality increase the
intention of customer to faithfull at company, 3) brand image, customer satisfaction increase the
faithfulness of customer and voluntarily build a more positive company image, 4) perceived value,
customer develop faithfulness to certain company when the customer felt that they receiving a more the
very significant big value to compare to competitor, 5) trust, customer believing in perusahaancenderung
to buy product regularly or believe may directly lead to the more positive stand (customer satisfaction)
later on affect intention to perform re-buying (the faithfulness of customer), 6) customer relationships, the
perception of high customer to relationship can increase a stand loyalty, because the customer feel to treated
fair at length of relationship and because that strengthen stand to company and are not affected to
competitor excitement that possible with potency to satisfy, 7) switching cost, become self retainer or
controller factor from transfer of product channel that can result customer to become a tifdak faithfull, 8)
dependability, aim to create value superior for customer (Hasan, 2013:126-129). According To Kotler
(2005:27) loyalties are magnitude of komsumsi and purchasings frequency are that performed by a
consumer to a company and they successfully find that the quality of connectivity is that consisted of
satisfaction, believe, and commitment have the positive relationship with loyalty. This thing indicating
that brand loyalty mirror customer loyalty to certain brand.

The concept of fans (devotee) studied based on theory is that presented by Dennis McQuail in his(her
book that entitling Mass Communication Theory. the meant devotees are a group of individual which
always build as a potential rabidity. Thing this means that the group of devotee was seen as exssesive
behavior to its idol. Devotee was understood as passive victim of the mass media. Mass media
mengkontruksikan discourse to devotee and form theatre of mind their. This thing causing devotee
cannot discriminate and create distance between themselves and object pleasure. The Most common
stereotype for example is a group of hysterical girl and woman shout at their idols celebrities, the groups
of devotees which in concurrence to compete adopt its idol style or group of devotee that is willing to do

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any kind of for meeting idolanya.Fandom term as behavior of mass that showing relationship or its
interrelationship with the product or performer through a medium. Main purpose with existence of
fandom that is expected may support the power of product or equally extend product chain and maximize
profit. Dennis Mcquail in his(her book also discuss about the fandom that is the best thought as
something collective. By defining fandom is that attributed to medium in such a way that satisfy and link
real distance that can be predicted between star and devotee . But, that also able to become experience
that hurting where covering ekspektasi high and emotion that surprising able to make a penngemar with
potency to get ejekan.Fandom also have side down from the affection object because devotee could be
fickle. They also treat star as gossip object, jealous and do not like, often push his(her by other medium
(McQuail, 2005:446).

Group or community is a group of individual which usualy have the same enthusiasm. A community is
usualy formed from the because having kebututah the same (and or not to) at a certain enthusiasm. A
community is usualy started with gathering his(her with. Initially with a few mans who acquainting, have
enthusiasm to and then develop and its member with tambah.Didalam of the same community it is of
course individual can share one another either that personal story or experience and it is of course there's
still a lot left overs again that can in the life of virtual world itself. Groups communications include
communications study to give information and affect decision for individual in increasing the desire of
they become inner a group that having to love and the same purpose. Need with the will elicit sense of
belonging of the members to its group. Henry Jenkins in Heartwood (2012) through its researches in
journal that entitling Self Actualization Group of Devotee ( Fandom )Illustrate devotee as individual which
doing a hunt of meaning to a cultural product where the understanding is a independence trials which
involving intellectual and its emotion. Human have ambition to look for and mean cultures for the agenda
of forming self identity and devotee are peoples which interesting of a cultural product in a hope that can
have his(her fully then integrated its in daily life of they them.

Fans is a form of viewer which active in the usage of medium. While fandom is a social interaction, where
mutual sharing taste, building social the identity, perform activity collectively. Fandom was defined as
world of devotee and devotee , especially science devotee, fiction, magazine and convention (The Concise
Oxford Dictionary Of Current English). They do not only enjoying but commenting, voluntarily think, make
innovation in their everyday-life. Devotee was told very loyal to what they like if voluntarily participate to
follow nor have product -product related to what they like. Devotee make own world to something what
they admire, they interact, they show what they to know and have to indicate that them are a genuine
devotee. Gary Becker, the winner of Nobel Ekonomi 1992, had triggered theory so-called rational acyesis
.Characteristic from addictive thing in the theory is as follows: once we its consumptions, we will
becoming want to his(her consumption again and again; with the running of time, we will be more lenient
with that thing, for example sometime later we possibly will consider that thing as a fair thing for
ourselves, although possibly others consider that as a illness; desire to get that thing sometime cause an
us to sacrifice miscellaneous, even possibly until perform constantly unlucky conducts and mad; every
time we try to stop to consume that thing, then will be there a period where there is desires to come back.
In general marking that marking the characteristic of the devotee really addiction is: devotee was
distinguished by a intellectual and emotional involvement intensity. Devotee do not simply reading, but
also there is an ambitions always to like to know deeper. Most reading is a process which soliter, which
was done personally, but also there is done in teaming. Readers create meaning to communicate with the
other devotee ( Heartwood, 2012 ).

3. Research Approachment

This research taking sample 140 mans with a age criterions 18 until 30 year ,Sampling and data collecting
through an interview either directly and also via social medium (Facebook). Variable the research of
marketing strategy which its variable covering :
1. advertising (Advertising) with his(her indicators as follows
Inform to constumer
Persuade Customer
Remind
2. direct selling (Personal Selling) with his(her indicators as follows
Prospect decide to perform purchasing
According to the target of target

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Offer the correct solution to problem of consumer


3. Sales Promotion (Sales Promotion) with his(her indicators as follows
Way Communicating
Incentives Promotion which be given
invitation
4. Public Relations (Public Relation) with his(her indicators as follows
Use many programs for promotion
Melindungi
5. Direct Marketing (Direct Marketing) with his(her indicators as follows
Non Public
Customized
Up
interactive
Its independent variable is Loyalty with a few his(her indicators that covering
1. It's cognitive with his (her indicators as follows :
The Quality of Brand
Superioritas brand
2. It's affective with his(her indicators as follows :
Level Of Hobby
Level of satisfaction
Level of involvement
3. Konatif with his (her indicators as follows :
The Commitment of Brand
Want to Buy
4. Action with his(her indicators as follows :
The History of Purchasing
operational Defenition is that used researcher in a research be:
1. Variable independent ,that is marketing strategy was interpreted as a form of planning of marketing
is that used by a artist management is that addressed at the fill of long-range need is obtain or keep
up the satisfaction of fans. This variable formulated through the concept of promotion that is as
communication means and the submission of messages are in the form of inform, persuade or
remind, which was formulated into five aspects that is advertising, personal sale, sales promotion,
public relations and pemasran are direct, following breakdown of its:
a. Advertising (advertising ),are all the forms of presentations of nonpersonal, ideas promotions,
goodses or service promotions is that performed by sponsor which be paid.
b. Promosi ),is a incentives variation short-range to stimulate purchasing or sale of a product or
service .
c. Relationship) ,is a effort (various) from the design of program to improve(repair, keep up, or protect
company or image product.
d. Selling) ,is oral presentation in a discussion with one or some potential buyers as a mean to perform
sale.
e. Marketing ),communications directly which was used from the mail, telephone, fax, e-mail, or
internet to get response directly from consumer clearly.
2. dependent variable ,that is loyalty fans was interpreted as a psychological condition that the related
in the stand of fans devotee to product in this case work from artist itself, by showing existence of
confidence, commitment and become the size of contiguity of fans devotee at the artist .This variable
is measurable through four aspects, that is:
a. Cognitive loyalty that is loyalty which is only based on the aspect of cognition only containing the
information of brand is that.
b. Loyality
c. Visible action loyalty of the commitment of re-buying is that addressed at one particular product in
certain range regularly.
Data collecting equipment is in the form of quisioner and interview are then cooked into analysis tester
equipment through the approach of linear doubled analytical method .skeletal Concept of this
research are as follows :

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This research hypothesis be :


H0 : There is a relationships of managements marketing strategies Band artist with a loyalty fans .

3. Conclusion

Respondent is a Woman counted 125 man ( 50 %) and male 250 man ( 50 %). Status The Penikahan of
the bigest respondent is which staying in status have not married that is 14 2 mans or 56 , 8 %, Marry but
do not had a child counted 4 5 mans or 18 %, Marry and having a child of one 2 0 mans or 8 %, Marry and
having a child of more than one counted 49 mans or 19 , 6 % and Widow Widower be 14 mans or 5,6 %.
This thing indications that most reseponden are a they which do not married and do not had
responsibility to own family. from the group with senior high school education that is 121 mans or 48,4
%, Diploma (I,II,III) counted 20 mans or 8 %, Bachelor counted 78 mans or 31,2 %, Magister 48 mans or
19,2 % and Doctoral be 3 man 1,2 %. This thing indications that respondent that having level of trend of
decision making to loyalty fans are a they which having level of Education of Senior High School. the
number of bigest respondent during the doing research observation is that joined at them who at
spanning age between 18-22 years that is 80 mans or equal to 32 %, age 23 27 years counted 159 mans
or equal to 63,6 %, age 28 32 8 mans that is 3,2 %, age 33 37 years counted 11 mans or 4,4 %, age 38
42 year is not there or equal to 0 %.This thing indications that the bigest respondent is faction mature
Age 23 2 7 year. The result of testing of reability Koefisien Cronbach Alpha is = 0.858, this result it is of
course be categorized to enter in a very high coefficient category.

For answer each is that given by a respondent is at the size of average of 3.00 (or stand Neutral Less). As
For Indicators like Public Relation for variable Marketing Method (X) with the answer of average of 4.1
and Want to buy indicator for Loyalty Variable Fans (Y) with the answer of average of 3.9. This result
giving image that in fact marketing method is still must in improving again. The result of observation the
research of dominant field to get Fans' respondent is not absolute as fans maniac from artist itself. Most of
respondent is really beneficiary music is just, the simple assumption of result of its observation is a band
own artist be recognized very rare seen medium is and or covered in a medium, concert is that
performed artist to was felt still felt less can be reached in the town in Indonesia. Only some people from
the fans absolute that is fans maniac artist itself. The trend also really felt make impact in this research
because of the research also take sample are a they with range Adolescent age and woman who where
their income difficult to can reach the purchasing of album which its character original, in the region
some regions in Indonesia womankind tend to not have freedom to interact outdoors in family time, then
other solution out side of that which was released for the respondents are they only listening or seeing
concert sample through a youtube or look at TV just and choice download song in Internet though that
was known illegal.

They are a fans though really only limited to beneficiary music only, they also join in all the mediums
accounts social but the role of them who were seen from the result of observation is limited to Silent
Reader just. Next observation get result that beneficiary music the only limited to selecting song based

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on song which of course that moment again Booming is just, or select to participate to song with the reason
Most people also enjoy the song at that moment. From 250 the performed respondents to interview
they to arise that method from Public Relation from Management marketing favourite artist they are the
very good marked by Website them who in it some favourite artists they provide space to join to become
a community fansclub and sell song via Online, reason as such the what then stimulate konatif loyalty
them to intend to buy song from artist itself. Universally researcher try to do observation exhaustively to
the behavior of loyalty fans by giving response to all bands or artist at industry music in Indonesia,
his(her result also their average indication only limited to beneficiary music with many reasons that
enough rational which for its bottomside they also want to be grouped as fans though not fanatic. Above
statement according to based on result of research that indicating that to consisted of 200 Mans so liking
respondents to marketing method from the favourite band they(them .

Case Processing Summary Marketing Method


Case Processing Summary
Cases
valid Missing total
NPercentNPercentNPerce
ntMetode_Pemasaran
2 00 80 % 5 0 20 % 25 0 100.0%

At own correlation test also show result that enough significant at this research. Correlation between
indicators in average show the significant result (Score was told to enter the very high category if its
value closing 1 with a signals (**) be Significant Level in 2 direction ,and score were told to enter low
category and not significant if it under 0). Own Correlation Test is a test which seeing how far from the
measurement attribute each is accurate one another. The result indicate that 90% from the result of
testing of individual involvement of variable is the very accurate and significant influential one another,
influence from the at marketing method to loyalty fans in this case the very clear seen to having an effect
on. Role of advertisement that are one of elements in this marketing method that becoming Trigger
how band artist can be recognized by a the general public, beside marketing strategy what exact it is of
course. The good marketing presently performed by an artist the doer of industry music in indonesia at
Website his(her and medium social their as well as Maintenance the good in service activities (Public
Relation) is the dominant reason why someone can becoming to liking then moved to become a fans. The
result of interview observation fetch out that their favourite artist is so the very solid is seen only a few
from the result of this research that finding that favourite artist they are not solid and often come up
medium as shocker artist and full of problem , from the statement is that got existence of medium that
covering favourite artist they never reported on disorder the happening internally in their own
management ,the thing increasingly making the fans increasingly proud making favourite artist they are
an idol.

Middle This nation music with trip going up and down a number of bands are that orbitted massly that
then sink also massly. Observation at this research very interesting and it is of course challenge,
consistency a Band & artist is hardly have an effect on to be able to still come forth middle excise attack
various the candidate of new idol that popping out either the candidate of idol domestic and also foreign
countries. Hereinafter is to to see regression influence at this research, and also Test Hypothesis if H 0
received or in the rejects or H 1 received or in the Reject. initial Hypothesis (H 0 )is to express that there is an influences between
marketing method to loyalty fans. Table below give explanation is in the form of number how the
hypothesis test

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Tee significance test Test Regression Coefficient


Coefficientsa
Standardized
Unstandardized Coefficients Coefficientst
BStd.
model Errorbeta Sig.
1 (Constant) .463 .468 .989 .325
Loyalitas_fans .888 .135 .552 6.559 .000a.
Dependent
Variable:
Metode_Pemasa
ran

The result of olahdata express that there there is the very significant influence between marketing
method as dependent variable to Loyalitas Fans as Independent his(her variable is with level of
significance is a P (Sig < 0.05). This thing proving that Really there is the significant influence between
Relation Between Marketing Method to Loyalitas Fans. Its solution logically can linguistic the good
Marketing Method in management a band, become main reason to be able to draw enthusiasm than
someone what then in the end will elicit favourite and satisfaction for them, the things what then form
stand of loyalty for its beneficiaries. The thing not quit of how the doer of managemen internally itself in
memaintenance of the beneficiaries music. It's wrong one important annotation in this research are a
Favourite Band & artist they were known as person what solid and come forth to fraternize, the good
action mirror not only of the every work of they but that can be observed in the life of social from every
its personnel, recognized solid, fraternize and come forth medium as Public Figure not just presenting
sensation, action and also news what negative also is assess to sell and the thing without directly affect
positive in increasing Image from the artist iu itself eye social particularly eye of the fans its. The research of
managemen this show and art giving big contribution to the development?expansion of service
management management.

Next is a hypothesis test through Tee test, from the result of olahdata was got rate of the positive that is
6.559, this thing indicating that fully initial hypothesis (H 0 ) be Received, own Tee Test if show positive
carry it is of course is to to give image that the hypothesis in Receiving or with the language of H's symbol
mathematics 0 > 0, when the language use image of curve the kemencengan of data ( Skewness) then kurvaya will incline kekanan.
Image level of significance (P) or level of Signifikansi in the result of this research are 0.00 to Uji T with a
value 6.559 can linguistic also that is At Levels The Mistakes of Maximum Errors Margin 5% these,
Hipotesis about Pengaruh Metode Pemasaran Terhadap Loyalitas Fans is fully received equal to 65.59%
at level of reliability 95%, the rest that affecting Loyalitas Fans other than Metode Pemasaran is also are,
but do not under study in this research. If it be pulled to use the language of statistic with its regression
formula got its equation as follows :
Loyalty Fans = 0.448 (X) + 0.88 (Y)

Linguistic use the language of logic that is If Marketing Method constantly within position Constant
around 48.8 % then will produce Loyalty Fans equal to 88%. This thing it is of course give image that If its
Marketing Method improved equal to 1% (or one identity) concurrently also will be happened enhancer
Loyalitas Fans Sebesar 1% (or one identity), so also on the contrary Loyalty Fans will decrease if
Kualitas and Its marketing strategy also decrease). Image of this research giving much new
understanding especially for the doer of Industri Seni Musik in Indonesia that is Metode Pemasaran,
Marketing Strategy really influential big to the formation of Stand of Loyalty Fans later, then not ayal for
artist itself to the fore its in this case through the result of this research can strengthen again their
marketing strategy do not only continue working however strategy introduce the their work must
become main preference. The formation of character and Image it may is touchable in extending again is
the presented work for in online medium like Youtube became new the thing that proper also considered to
the fore by seeing the aspect of market to the fore its, then strategy in placing the work of song become a
Original Soundtrack a film can become the good selection it is of course to be able to increasingly recognized
public wide and net more fans again. Existence a work forever will be required here.

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Other thing that requiring in the evaluation under consideration next is how frequency distribution of this
research running, diagram below is Diagram The Kemencengan of Curve, show how big sharp-pointed the
distribution of its research, This curve presenting curve Platykurtik or becoming sharp curve, this thing
indicating that the Penyebaran of data of research run the very accurate, linguistic that increasingly sharp-
pointed the curve then increasingly good the distribution of data of its research. The measurement of
exploration of Loyalitas Fans also visible below, from the 140 reseponden which under study, around 100
mans or 71.4% are a Fans which loyal to band Gigi, the rest 40% is Fans not fanatic.

Case Processing Summary Loyalty Fans


Case Processing Summary
Cases
valid Missing total
NPercentNPerc
entNPercentLo
yalitas_Fans
200 80 % 50 20 % 25 0 100.0%

Evaluation that can be created as component of reference for Manajemen artist is its difficulty fans they in
direct access Idola their, some bands or artist in an industry music is very rare in with town
circumference concert to as well as meeting fans, so that fans their only watching perfom they through an
access Youtube only. Difficulty especially find many Merchandise for some bands artist is also felt, the
thing was managed with only collecting Merchandise the patch up just. This thing it is of course become a
polemic separate in management artist it is of course middle the hoisterous of action of piracy swimmingly
song earn in Download in illegal in Internet becoming homework for some the doers of industry musics to
be able to still work as maximum middle attack. One-sided existence Youtube also can increase an
existence from artist itself, as well as becoming a new promotion equipment for the management the artist.
The trend of mans now is to to enjoy youtube than listening radio. Loyalty fans in this research also
determined from the result of his(her observation that the New Comer that becoming fans some singers
artists because of them like with its song, or only liking wrongly one its personnel, or in perception those are
them can become fans because of their friend also like their song especially the Fans teenager.
So conclusion in this research as follows :
1. Marketing Method have an effect on positive and significant to Loyalty Fans
2. Test Hypothesis this research are fully received in a Probability level () 95%
3. Marketing Strategy managemen Band Gigi is the very good in memaintenance their work and
memaintenance fans their.

Discussion For Future Research: For Researcher The Next factor other than Metode Pemasaran at
solution be still being be felt important for under study again about variable what the next besides
marketing method that affecting to loyalty fans.

Limitation: The the many of fans only at category the type of certain music, while for new comer artist
faction with concept that new only having beneficiary music only

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