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VSRD International Journal of Business and Management Research, Vol.

V Issue VIII September 2015 / 207


e-ISSN: 2231-248X, p-ISSN: 2319-2194 © VSRD International Journals: www.vsrdjournals.com

RESEARCH PAPER

PROBE EFFECT LEVEL OF EDUCATION, KNOWLEDGE


MANAGEMENT, MOTIVATION AND CAPABILITIES ON
MANAGERIAL PERFORMANCE AT THE LOGISTIC INDUSTRY
IN BANTEN PROVINCE, INDONESIA
Bambang Dwi Suseno
Associate Professor, Department of Management, Banten Business School, Banten, INDONESIA.
Corresponding Email ID: senadwi_bam@yahoo.co.i

ABSTRACT
Aims this study find a picture on the effect of Education Level, Knowledge Management (KM), Motivation and ability to Managerial
Performance. This study uses test reliability and validity of test data through approaches Structural Equation Model (SEM) with Partial
Least Square (PLS). The data was collected by a questionnaire that has been distributed to the logistics companies in Banten by using
purposive sampling.

The results of the data analysis of this study showed that there is a positive relationship between level of education and Managerial
Performance, there is a positive relationship between Knowledge Management and Managerial Performance, there is a positive
relationship between Motivation and Managerial Performance, there is a positive relationship between ability and Managerial
Performance Based on the results of these studies indicate that of any exogenous variables have a significant relationship to the
endogenous variables.

Keywords: Level of Education, Knowledge Management, Motivation, Ability, and Managerial Performance.

1. INTRODUCTION
Human resources play an important role in determining Jalbert (2002) also test manager compensation related to
the success of an organization. It has been widely educational background, found a significant difference
recognized that knowledge is an important organizational between the placement and performance of their roles.
resource for any company, regardless of location, Then they find a company's performance can be affected
organization size (small, medium or large), to survive and by some level of educational background. The information
succeed in the world economy. As for facing the difficult about the performance of the organization can be used to
aspects of management in all organizations today is how to evaluate whether the process of organization of work done
make their employees work efficiently. Thus the need for so far has been in line with the expected goals or not. To
good decision on the part of management. Fligstein (1990) that end, knowledge management (knowledge
revealed that the educational background of managers is management) that effectively has been recognized as an
very important for a company considering that it can affect important strategic tool for achieving certain objectives of
the processes they use in decision making. an organization and even a country, as well as to sustain
economic growth and to gain a competitive advantage
Several studies have investigated the impact of human (Chong et al., 2011). Then the knowledge management
resources practices in performance oganisasi. For years, support organization is also actively identifying and
researchers have suggested many human resources acquiring quality knowledge - knowledge that exists in the
practices have the potential to improve and sustain external environment of the organization (Tiwana, 2000).
organizational performance (Ahmad & Schroeder, 2003).
Vionita (2008) said that all the human resource potential It is essential in the formation of knowledge management
influence on the organization's efforts to achieve its is the learning environment (learning environment) that is
objectives. So that aspect of the organization has led to conducive to the employees are motivated to continue to
most of the industry uses a strategy that is used to motivate learn, take advantage of the opportunity or the knowledge
their work force. In improving the performance of that the information provided by the organization and
employees and to motivate employees in working is develop their individual knowledge (Tjakraatmadja, 2006).
through education. According Hasbullah (2009) states that Therefore, developing knowledge of the performance will
education is often defined as a human endeavor to foster be better.
appropriate personality cultural values of society. So it can
be said that education is the deliberate effort made either Mitchell (1983) in Wijaya and Suhaji, (2013) holds an
directly or indirectly, a person run to achieve a higher organization can succeed where members must be willing
level of life (Vionita, 2008). and able to do their work at their own pace. In this case
also the Soekidjo Stoner (2009: 125) expresses the
Bambang Dwi Suseno VSRDIJBMR, Vol. V (VIII) September 2015 / 208

performance of a labor or employee is affected by constructs formed with reflexive and formative indicators.
motivation, ability and perceptual factors. In fact, not all It cannot be done by a covariance -based SEM as a model
employees have the ability and skill and morale of the would be unidentified.
organization in line with expectations. A person who has
the ability to conform to the expectations of the
organization, sometimes it does not have high morale so 5. THEORETICAL FRAMEWORK
that its performance is not as expected. (Sumarsono, The Effect of Education on Managerial Performance:
2004). So Gana (2011) stated performance jointly Education is traversed by a manager or individual is very
determined by the ability and motivation. This is important influential in determining his personality. With the
because to some extent, the lack of ability cannot be provision of education held by the manager will be able to
compensated with high motivation and conversely the lack deal with the problems faced related to his profession.
of motivation cannot be compensated with higher Tertiary education so that high of a person will affect its
capabilities. Both are important components of effective ability to achieve optimal performance. Soekidjo (2003)
performance in organizations. According to Ivancevich argues that education in the organization is a process
M.John (2007:85) the performance of the individual is the towards the development of capabilities desired by the
foundation of organizational performance. A critical factor organization concerned. So if a manager has a higher
in the success of an organization is the employees who are education, it would be helpful for the company, because
capable and skilled and have high morale, so it can be with higher education then science would be better applied
expected that a satisfactory work. in the process of execution of work.

The Hariandja (2002) stated that the level of education a


2. OBJECTIVE manager can improve the competitiveness of enterprises
Measurement of knowledge management will be done by and improve company performance. So it can be
comparing the evaluation or supervision of specified concluded that the level of education is required either by
performance with real, whether it is in accordance with the the manager or an employee, because it will be able to
planning made. bring a good influence on themselves and the organization
in which he works. The levels of education also will
Comparison the management can determine how much influence robust against performance manager to execute
deviation is and how much progress has been achieved and and finish the job properly (Vionita, 2008). Based on the
not achieved, so that action can be taken to address them. literature, the hypotheses are as follows:

Performance of the company is essentially an achievement H1: There is a positive relationship between level of
by a business organization logistic sector in Banten education and Managerial Performance.
Province, Indonesia.
The Effect of Knowledge Management on Managerial
Performance: To produce a good performance, then the
3. RESEARCH METHODOLOGY company needs a good system anyway. This system not
Research Design: This study uses survey. Data used in only regulations or existing standards, but also involve
the study was obtained by the distribution of a parties that are directly related to human resources. One of
questionnaire given to the respondents directly by first the management systems that offer an intellectual
doing interviews (Wiyantoro, et al, 2011). discipline that treats as assets under management is
knowledge management (Honeycutt, 2002). With the KM
Sample and Data Collection Procedure: Retrieval of manager will be easier in the planning and execution of
data through mail surveys and ushered to respondents, work in order to achieve the goals effectively and
while the instrument used was a questionnaire or a efficiently.
questionnaire. The sample in this study was 39
respondents who are already at random. The criteria of With the measurement of knowledge management will be
respondents were Logistics Company in Banten province, done by comparing the evaluation or supervision of
Indonesia. specified performance with real, whether it is in
accordance with the planning made. From the comparison
4. METHODS OF DATA ANALYSIS results, the management can determine how much
In this study data analysis approaches Partial Least Square deviation is and how much progress has been achieved and
(PLS) using PLS Smart Software. PLS is a structural not achieved, so that action can be taken to address them.
equation model (SEM) based on components or variance Performance of the company is essentially an achievement
(variance). According Ghozali (2006) PLS is an by a business organization which can be seen from the
alternative approach that shifts from covariance -based results. In research Jaworski & Kohli (1993) measured
SEM approach is based variant. General covariance-based firm performance of the overall business performance
on SEM causality test or theory while PLS is more compared to last year and overall performance compared
predictive models. PLS is a powerful analytical method to its main competitors. So to do that knowledge
(Wold, 1985 in Ghozali, 2006) because it is not based on management is needed to achieve the expected managerial
many assumptions. For example, the data should not performance. Based on the literature, the hypotheses are as
normally distribute, the sample does not have to be huge. follows:
It can be used to explain the relationship between the
H2: There is a positive relationship between knowledge
latent variables. PLS can simultaneously analyze
Bambang Dwi Suseno VSRDIJBMR, Vol. V (VIII) September 2015 / 209

management and Managerial Performance. distributed, questionnaires were completed and returned
the questionnaire is number 39. The questionnaires were
Effect of Motivation on Managerial Performance: not returned due to the respondent in the middle of the
Motivation is the willingness to expend high levels of bustle so did not have time to answer the questionnaire.
effort for organizational goals, conditioned by the effort’s Therefore, the amount of data that can be processed for
ability to satisfy some needs (Robbins, 2001). To create analysis is a number of 39 questionnaires.
the necessary managerial performance expected optimal
motivation and ability to work a good job, this is
expressed by Stoner, (1986) where the performance of a 7. TEST DATA QUALITY
workforce is affected by motivation, ability, and Test Validity: Testing the validity of the data in this study
perceptual factors. is to use the software PLS Model Outer Convergent
Validity is seen that the value of the square root of average
The things that affect motivation according to Robbins and variance extracted (AVE) of each construct in which the
Judge (2009) are the intensity of work, an understanding value must be greater than 0.5.
of the purpose of the organization, diligence work. The
motivation of the definition above is an organization of Table 1 describes the value of AVE and root AVE of
individuals who are highly motivated to produce peak constructs Education Level, Knowledge Management
performance. It is quite have the impression that with good (KM), Motivation and Ability, Managerial Performance. It
motivation, it will make a performance to be more can be seen that each construct (variable) that has a value
effective and efficient in achieving its objectives. above 0.5 AVE. This suggests that each of these constructs
Similarly, says Stoner (1992) that is where the managerial has good validity value of each indicator or the
performance in achieving organizational goals and questionnaire used to determine the relationship Education
effectiveness must be efficient. Therefore, the higher the Level, Knowledge Management (KM), Motivation and
intensity level it works the more somebody managers Ability, Managerial performance can be said to be valid.
understand the objectives of the organization and work
more diligently then the higher work motivation. Based on Test Reliability: A composite of data said to be reliable if
the literature, the hypotheses are as follows: the reliability of more than 0.7. From Table 2 it can be
seen every construct or latent variable that has a composite
H3: There is a positive relationship between Motivation reliability values above 0.7 which indicates that the
and Managerial Performance. internal consistency of between variables have good
reliability.
Effect of Ability on Managerial Performance: Capacity
is the ability of an individual to perform various tasks in a Full Structural Model: In Figure 2 it can be seen that
job (Robbins, 2001). So if a manager has a better ability, each construct of each variable is explained by each
then he will have to work effectiveness in the performance indicator. Where the model in Figure 2 is not performed
of the company and can make better and efficient even due to the elimination of these constructs there is no
Veithzal (2009) states that performance is a function of correlation of less than 0.5 so that each variable met the
motivation and ability. According to Brigham and Daves criteria convergent validity.
(2004) has a performance influencing factors, namely:
ability and motivation. Hypothesis Testing: To test the hypothesis, it can be seen
the value of t - statistics. Limit to reject and accept the
H4: There is a positive relationship between Managerial proposed hypothesis is ± 1.96, where if the value of t in
Capabilities and Performance the range -1.96 to 1.96 then the value of the hypothesis
will be rejected or otherwise accept the null hypothesis
(H0). T - Statistics estimation results can be seen in the
result for the inner weight table 4.

Hypothesis 1 states that the level of education has a


positive and significant impact on managerial performance
is indicated by the value of the original sample estimate of
0.189 and 1.989 for the T - statistic greater than the t-test
is 1.96 thus Hypothesis 1 is accepted.

Hypothesis 2 states that Knowledge Management has a


positive and significant impact on managerial performance
is indicated by the value of the original sample estimate of
0.299 and 3.556 for the T - statistic greater than the t-test
is 1.96 thus Hypothesis 2 is accepted.
Fig. 1: Full Model Hypothesis 3 stated motivation has a positive and
significant impact on managerial performance is indicated
6. DATA ANALYSIS by the value of the original sample estimate of 0.228 and
Descriptive Statistics: Questionnaires were distributed a 2.857 for the T - statistic greater than the t-test is 1.96 thus
total of 100 questionnaires. Of the total questionnaires Hypothesis 3 is accepted.
Bambang Dwi Suseno VSRDIJBMR, Vol. V (VIII) September 2015 / 210

Hypothesis 4 states ability to have a positive and 9. ACKNOWLEDGEMENT


significant impact on managerial performance as indicated Research published by this paper is based was funded by
by the value of Original sample estimate of 0.428 and the the Banten School of Business faculty to strengthen
value of T - statistic greater than 4.694 t-tests is 1.96 thus research capabilities and international publications
Hypothesis 4 is accepted. for the assistance we are very grateful. We also thank
facilities and to provide additional support for field
activities. We also thank reviewer Professor Augusty Tae
8. EXPERIMENTAL RESULTS Ferdinand, DBA, Professor. Christiantius Dwiatmaja,
Ph,D and Dr. Ahyar Yuniawan, M.Si for their comments.
Table 1: Average Variants Extracted
Average Variants
√AVE
Extracted (AVE) 10.CONCLUSION
Education Level (TP) 0.640 0.800 The results of hypothesis testing hypotheses 1 through 4
Knowledge indicate that all the independent variables and significant
0.606 0.778
Management (KM) effect on the dependent variable. A number of conclusions
Motivation (MO) 0.503 0.709 can be drawn from these results: first, all independent
Ability (KP) 0.748 0.865 variables (Level of Education, Knowledge Management,
Managerial Motivation, and Ability) and a significant influence on
0.654 0.809 managerial performance positively. Then the variable level
Performance (KMJ)
of education can positively influence managerial
Table 2: Composite Reliability performance. This is because the level of education can
Composite Reliability indeed be a performance appraisal for managers in
TP 0.838 corporate, higher education is usually the more his
KM 0.821 knowledge. That will facilitate the work performed and the
MO 0.746 effectiveness of the work. Likewise Knowledge
KP 0.852 Management where high knowledge achieved by the high
KMJ 0.849 persistence in the job and a big responsibility on
managerial performance. The motivation into a managerial
performance in the company because, every manager or
individual in need of motivation in carrying out the work
in order to create the spirit of the work and effectiveness
as well as efficiency for the company. So is the ability,
with capability then an individual has more value in
carrying out a task that has been planned by the company
or management, which means that there is an influence on
managerial performance itself. This happens, because the
Managerial Performance is an important indicator of a
company’s performance in relation that the
implementation of Managerial performance can be
measure the extent to which the company's ability to carry
out the planning, investigation, coordination, evaluation,
supervision (supervision), staffing arrangements,
negotiations. Managerial performance was a reflection of
Fig. 2: Models before Indicator Elimination
the company’s performance.

11.LIMITATION
Limitations of this study are the selection of variables that
are not commonly associated with the theory of
knowledge management research that has not been
theoretically linked to managerial performance. This
condition creates a problem. If I make an empirical model
based on conditional assumptions, I have to use a variable
that is related to the theory used and practical context. As
a result, the effect of testing the model and simultaneously
managing not as applicable in the context of theoretical.
This makes it very difficult to separate the effect and
interpretation. Future studies should examine all types of
companies to determine whether there is a similar
relationship. In addition, different measures of results and
knowledge management capabilities should be explored to
Fig. 3: Model after Elimination determine the factors that most strongly affect managerial
performance. Research can also be tested with longitudinal
data would be more suitable for the type of future research
Bambang Dwi Suseno VSRDIJBMR, Vol. V (VIII) September 2015 / 211

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