128 119 PB

:: IJEBD :: ISSN : 2597-4785 (ONLINE)
(International Journal of Entrepreneurship and Business Development) ISSN : 2597-4750 (PRINTED)

Volume 04 Number 03 May 2021
This work is licensed under a Creative Commons Attribution- ShareAlike 4.0 International License.
About the Journal
Focus And Scope
IJEBD (International Journal of Entrepreneurship and Business Development) aims to

provide a forum for international researchers on applied Entrepreneurship And Business
Development to publish the original articles.
The scope of IJEBD (International Journal of Entrepreneurship and Business Development)
are Entrepreneurship And Business Development.
Publication Frequency
IJEBD (International Journal of Entrepreneurship and Business Development) published six

times in a year, January, March, May, July, September, and November.
Open Access Statement
This journal provides immediate open access to its content on the principle that making
research freely available to the public supports a greater global exchange of knowledge.
All articles published Open Access will be immediately and permanently free for everyone to
read and download. We are continuously working with our author communities to select the
best choice of license options: Creative Commons Attribution-ShareAlike (CC BY-SA)
Principal Contact
Agus Sukoco
agus.sukoco@narotama.ac.id
Support Contact
Muhammad Ikhsan Setiawan

ikhsan.setiawan@narotama.ac.id
i
Peer Review Process
ii
In the reviewing process, there are at least two reviewers for each manuscript in the related topic. In
addition, author(s) can also propose the candidate of reviewers. Judgments from the first reviewer will be
main priority for editor to make decision, if there are only two reviewers. In case of three reviewers,
decision will be made from at least two reviewers. Three weeks will be needed for reviewer to complete
one round reviewing process.
Generally, the candidate of reviewers will be chosen based on their reputation in the international
publication number and quality. Next step, The Editor sends the invitation letter for each candidate of
reviewer. After the candidate of reviewer informed their availabilities for reviewing process, Editor create
account for each reviewer and then send manuscript by OJS.
All reviewing processes are in blind review and managed by editor in the OJS.
iii
Editorial Team
EDITOR IN CHIEF
Agus Sukoco Narotama University, Surabaya, Indonesia
EDITORS
Dr. Sri Wiwoho Mudjanarko Narotama University, Surabaya, Indonesia
Dr. Muhammad Ikhsan Setiawan Narotama University, Surabaya, Indonesia
Professor Paisal Halim Universitas Nasional, Jakarta, Indonesia
Professor Syamsiah Badruddin Universitas Nasional, Jakarta, Indonesia
Professor Dani Harmanto De Montfort University, Leicester, United Kingdom
Professor Wahyu Mulyo Utomo Universiti Tun Hussein Onn Malaysia, Batu Pahat, Malaysia
Professor Mohd Idrus Mohd Masirin Universiti Tun Hussein Onn Malaysia, Batu Pahat,
Malaysia
Professor Che Zalina Zulkifli Universiti Pendidikan Sultan Idris, Tanjong Malim, Malaysia
Joko Suyono, PhD Narotama University, Surabaya, Indonesia
Satria Abadi PhD STMIK Pringsewu Lampung, Indonesia
Ronny Durrotun Nasihien Narotama University, Surabaya, Indonesia
Eneng Tita Tosida Universitas Pakuan, Bogor, Indonesia
Tubagus Purworusmiardi Narotama University, Surabaya, Indonesia
Elok Damayanti Narotama University, Surabaya, Indonesia
Ani Wulandari Narotama University, Surabaya, Indonesia
I Nyoman Sudapet Narotama University, Surabaya, Indonesia
Lusy Tunik Muharlisiani Universitas Wijaya Kusuma Surabaya, Surabaya, Indonesia
Endang Noerhartati Universitas Wijaya Kusuma Surabaya, Surabaya, Indonesia
EDITORIAL ADVISORY BOARD

Professor Irwan Juki Universiti Tun Hussein Onn Malaysia, Batu Pahat, Malaysia
Professor Abdul Talib Bon Universiti Tun Hussein Onn Malaysia, Batu Pahat, Malaysia
Professor Hadi Susanto University Of Essex, Colchester, United Kingdom
Professor Mohd Fauzi Sedon Universiti Pendidikan Sultan Idris, Tanjong Malim, Malaysia
Professor Abdul Sattar Saand Quaid-I-Azam University, Islamabad, Pakistan
Professor Ivan Hsien Y. Ting National University Of Kaohsiung, Kaohsiung, Taiwan
Professor Wichai Chattinnawat Chiang Mai University, Chiang Mai, Thailand
Professor Abd Kadri Mahamad Universiti Tun Hussein Onn Malaysia, Batu Pahat, Malaysia
Professor Fauzilah Salleh Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia
Professor Muhammad Ashlyzan Razik Faculty Of Entrepreneurship And Business, Universiti
Malaysia Kelantan, Pengkalan Chepa, Malaysia
Professor Zailani Abdullah Universiti Malaysia Kelantan, Pengkalan Chepa, Malaysia
Professor Dzulkifli Mukhtar Universiti Malaysia Kelantan, Pengkalan Chepa, Malaysia
Professor Zulnaidi Yacoob Universiti Sains Malaysia, Gelugor, Malaysia
Professor Wasana Boonsong Rajamangala University Of Technology Srivijaya, Thammarat,
Thailand
Professor Ibrahim A Hassan Alexandria University, Alexandria, Egypt
Professor Augendra Bhukut, Ipag Business School, France
Professor David Martin, Universiti Tun Hussein Onn UTHM, Malaysia
Professor Tapash Ranjan Dash, Build Bright University, Cambodia
iv
Professor Hening Widi Oetomo, STIESIA Surabaya, Indonesia

Dr. Andre Dwijanto Witjaksono, UNESA Surabaya, Indonesia
Dr. Liem Gai Sin, Ma Chung University Malang, Indonesia
D Suhermin, STIESIA Surabaya, Indonesia
ASSOCIATE EDITOR
Amrun Rosyid Narotama University, Surabaya, Indonesia
Achmad Muchayan Narotama University, Surabaya, Indonesia
Rizal Bahaswan Narotama University, Surabaya, Indonesia
v
Table of Content
The Influence of Online Advertising on the Consumer Behavior of Smartphone Customers
Alicia Sulayon, Jocelyn S Emotin
257-261
The Influence of Advertising, Sales Promotion, and Service Quality on Customer Loyalty of Bank
Jatim Indonesia
Novi Nurlaini, Joko Suyono, Damarsari Ratnasahara Elisabeth, Abdul Thalib Bin Bonn
262-272
Factor Influence Of Container Loading And Unloading As Productivity Support On Mirah Terminal
Sumarzen Marzuki, Rusi Aswidaningrum, Choirul Anam, Soedarmanto Soedarmanto
273-281
Does Financial Performance As An Intervening Variable In Strengthening Market Value: Intellectual
Capital Approach
Sriyono Sriyono, Detak Prapanca, Ainnur Rosyidah
282-290
Antecedents of Saving Interest at Bank Jatim Indonesia: Bank Atmosphere, Location, and Work
Professionalism
Yuan Erma Septi Apsari Santoso, Joko Suyono, Damarsari Ratnasahara Elisabeth, Abdul Thalib Bin
Bonn
291-303
Risk Cause Analysis On E-Procurement Bidding
Lily Kholida, Bismar Arif
304-312
Motivation And Competency Factors Influencing Tutors Performance In Educational Equality Of
Study Group Musi Banyuasin Regency
Desi Ulpa Anggraini, Yeni Marsih, Achmad Kartiko Buwono
313-324
Effect Of Work Ethos On Organizational Commitments And Its Impact On Employees Performance
Of Forestry Office Of North Kalimatan Province
The data analysis technique used in this study is a path analysis approach.
Achmad Daengs Gs
325-333
Analysis of Internal and External Factors after Implementing the Improvement Strategy using SWOT
Method
Prima Vitasari
334-339
The Influence Of Customer Satisfaction And Service Quality Towards Customer Loyalty In Pt. Mitra
Andalan Trans Anugerah
Mudayat Mudayat
340-350
Exploration Community Empowerment of Lumajang Typical Batik Enterprises for Culture
Preservation
Joko Setiyo, Ratna Daniar Paramita, Riza Bahtiar Sulistyan
351-355
Challenges Of Exchange Rate Fluctuation And Cpo Prices In Indonesia Palm Oil Industry
Achmad Daengs GS, Enny Istanti, Maria Yovita Yovita R Pandin
356-362
vi
Earnings Persistence In Affecting Stock’s Prices Of Malaysia And Indonesia Manufacturing

Companies
nuraini rokhmania, Titis Puspitaningrum Dewi Kartika
363-372
Factors Affecting Safety Performance: Case Study At Pt Pamapersada Nusantara
Muhammad Nabawi, A Izzuddin Abdissalam, Anita Maharani, Lidya Lidya
373-381
The Determinant Factors Of Work Productivity At Port Operating Company: Work Conflict, Work
Stress And Leadership
Nur Widyawati, Nugroho Dwi Priyohadi, Siti Mutmainah, Joko Suyono
382-389
The Effect Of Environmental Performance On Firm Value Using Financial Performance As Mediator
Variable
Nurul Aini, Nabilah Taqiyyah Faisal
390-395
vii
viii
The Influence of Online Advertising on the Consumer Behavior of

Smartphone Customers
Jocelyn S. Emotin1, Alicia N. Sulayon2
Division Manager, Tagum City Water District, Tagum City, Philippines1
Professor, Graduate School, University of Mindanao-Tagum, Tagum City, Philippines2
Email: jocelyn.emotin@tagum-water.gov.ph1
aliciasulayon@umindano.edu.ph2
ABSTRACT
Purpose: The fundamental purpose of the study was to determine which domain of the online advertising
significantly influence consumer buying behavior.
Design/methodology/approach: This study employed a quantitative non-experimental research design utilizing
correlational technique. The survey was conducted at Tagum City, Davao del Norte, Philippines. A total of 365
customers participated in this study.
Findings: Results revealed that online advertising is much evident as perceived by the customers. On the other
hand, the consumer buying behavior towards purchasing smartphones is much observed. The statistical result
further revealed that there was a significant relationship between online advertising and consumer buying
behavior of smartphone customers.
Research limitations/implications: There are only two variables considered in this paper: Online advertising
and consumer buying behavior; Intervening variables are not considered and the sample for this study is 365
using a random sampling method.
Practical implications: Among the five indicators, stimulation, brand recall, and necessity were found to have
significantly predicted consumer buying behavior in purchasing smartphones.
Originality/value: This paper is a collaborative effort of the researchers to understand consumer behavior of
smartphone customers relative to online advertising.
Paper type: Research Paper
Keyword: Consumer Buying Behavior, Marketing, Online Advertising, Philippines, Smartphones
Received: May 10th, 2021

Revised: May 20th, 2021
Published: May 31st, 2021
I. INTRODUCTION
Consumer’s obsession about the smartphones is in rapid increase which made their manner of purchasing
these handheld devices put into the center of attention Ifeanyichukwu, C.D., Ayodele., & Adetola, (2016). The
consumers' decision-making process is significant to their buying behavior especially that this behavior must not
be influenced by a lot of occurring factors which may lead them into either a bad or satisfactory buying
experience. For marketers, it is their primary goal to make consumers satisfied on their purchases.
On the other hand, the web is getting more advanced compared to traditional advertising methods because
of its reach and upscale structure. Compared to traditional advertising methods, internet advertising allows the
consumers to view the content they wished to watch. In this study, the term online advertising pertains to
advertisements shown in google, youtube, social networking sites such as facebook, twitter, and Instagram. As
pointed out by (Opeodu OI, 2017) advertising using various internet channels has a crucial role in influencing
the choice of customers and today, the internet is widely used to share content, information, and even ideas
Shrivastava, (2014). Accordingly, a smart choice of determining where and what to advertise is extremely
important for shop owners (Singh, 2014) as this will have an adverse impact on their business.
In the locality, the choice of determining which online platform to advertise remains a conundrum. This is
due to the fact that predicting consumer’s behavior especially on buying smartphones is relatively challenging
The Influence of Online Advertising on the Consumer Behavior Page │ 257

of Smartphone Customers
Jocelyn S. Emotin, Alicia N. Sulayon
and the online advertising strategy appears to be a costly decision to make by store managers. Thus, the
researchers were prompted to conduct a thorough investigation on this subject matter in order to fully
understand how online advertising influenced customer’s buying behavior.
A. Objectives
This study aimed to determine which domain of the online advertising that significantly influence the
consumer buying behavior. Furthermore, it sought to determine the level of online advertising and consumer
buying behavior.
B. Hypotheses
The following research hypotheses were tested at 0.05 level of significance.
1. There is no significant relationship between online advertising and consumer-buying behavior in
purchasing smartphones.
2. There is no domain of the online advertising significantly influence consumer-buying behavior.
II. METHODOLOGY
This study employed a quantitative non-experimental design utilizing causal effect technique to be able to
give description to the possible existing relationship between two identified variables as well as determining the
direction and magnitude of such relationship, if there is. The descriptive correlation method was deemed
appropriate and accurate in this study as it seeks to find the relationship between the independent and dependent
variables Gravetter, (2004).
A. Locale and Sampling

Through a random sampling method, this research was conducted in the first class City and capital of
Davao del Norte Province, Tagum City (7.4472° N, 125.8093° E) Philippines. A total of 365 customers
participated in this research.
III. DISCUSSION
A. Online Advertising
Table 1 shows the level of customer’s perception regarding online advertising in terms of necessity,
pleasure, dominance, brand recall and stimulation. The overall mean is 4.06 which is described as high and with
the standard deviation of 0.515. This means that their perception on online advertising is much evident.
Table 1. Customer’s perception on online advertising
Descriptive
Indicators Mean SD Equivalent
Necessity 4.17 0.591 High

Pleasure 4.03 0.610 High
Dominance 4.01 0.606 High
Brand Recall 4.03 0.602 High
Stimulation 4.03 0.630 High
Total 4.06 0.515 High
Considering the views of (Sharma, P., Sivakumaran, B. and Marshall, 2010) they found out that the
variables in online advertising is useful in enticing the customers in purchasing the product Thus, online
commercials have critical effect on the buyer’s consumer behavior and directly affect their decisions (Awan et
al., 2015); (Schiffman et al., 2012). This is a good basis for online businesses to advance their online advertising
campaigns. On the same way, (Awan & Shahid, 2015) argued that online advertising fulfills the information
gap that the consumers need in relation to the advertised item as (Kotler, 2006) said that in the absence of
advertising, consumers may not be aware of the product and its potential to satisfy their needs and desires.

B. Consumer Buying Behavior

As shown in table 2, the level of consumer buying behavior among consumers garnered an overall mean of
4.05 which is described as high. As stated by (Darley et al., 2010) and (Peter et al., 1999) the customer choice of
purchasing a product is influenced by two components, internal and external. There are individual (internal)
factors influencing buying behaviors which include demographics, consumer information, observation,
learning, inspiration, identity, and ways of life. For instance, a buyer may perceive the need to purchase a tablet
when there is a necessity for it and it appears to more comfortable to use compared to desktop PC Martins &
Terblanche, (2003)
On the other hand, external information sources may also affect the purchasing decisions. For example, the
personal experiences of friends or family and even co-workers may affect the buying behavior (Ma et al., 2014)
Furthermore, in selecting a movie to watch, one may choose to depend on the referral of a friend or family
member while others prefer online reviews and rating (information search) which is a common attitude for
consumers who are particular to details. Marketing experts collect enough data to study and make use of it to
predict the behavior of the customers in relation to their future offerings Tzokas et al., (2004).
Table 2 Level of Consumer Buying Behavior
Descriptive
Indicators Mean SD Equivalent
Recognition of Need or Problem 4.13 0.584 High

Information Search 4.06 0.617 High
Evaluation of Alternatives 4.08 0.581 High
Purchase 4.15 0.590 High
Post-Purchase Evaluation 3.85 0.707 High
Total 4.05 0.503 High
C. Relationship Between Online Advertising and Consumer Buying Behavior

Table 3 presents the five indicators which showed the relationship between online advertising and
consumer buying behavior. The r-value of necessity and consumer buying behavior is 0.534 shows a positive
correlation (28.52%), followed by the r-value of pleasure and consumer buying behavior of 0.480 which also
shows positive correlation (23.04%). The r-value of dominance and consumer buying behavior is 0.565 imply a
positive correlation (31.92%). While the r-value of brand recall and consumer buying behavior is 0.606 shows a
positive correlation (36.72%). Lastly, the r-value of stimulation and consumer buying behavior is 0.620 shows a
positive correlation (38.44%).
Table 3. Relationship Between Online Advertising and Consumer Behavior

Online Mean SD Mean SD r-value r2 p-value Decision
Advertising α=0.05
Necessity 4.17 0.591 0.534 0.2852 0.000 Ho is Rejected
Pleasure 4.03 0.610 0.480 0.2304 0.000 Ho is Rejected
Consumer
Dominance 4.01 0.606 Buying 4.05 0.503 0.565 0.3192 0.000 Ho is Rejected
Behavior
Brand Recall 4.03 0.602 0.606 0.3672 0.000 Ho is Rejected
Simulation 4.03 0.630 0.620 0.3844 0.000 Ho is Rejected
*p<0.005
All the indicators of online advertising (necessity, pleasure, dominance, brand recall and stimulation)
appears to have significant relationship on the consumer buying behavior. Taking insights from the study done
by (Tzokas et al., 2004) they contended that web-based or online advertisement is key determinants of
purchasing products just like mobile phones. Similarly, another study demonstrated that the utilization of
various online media advertising channels and buyer's purchasing decision/behavior have a solid relationship.
The research also revealed that consumer behavior is somehow shaped by online promotions Adelaar et al.,
(2003)

D. Regression Analysis on Online Advertising and Consumer Buying Behavior

Table 4 shows the regression analysis on the level of online advertising and the level of consumer buying
behavior in purchasing smartphones. The table shows an f-value of 62.259 and p-value of 0.000 which is less
than the 0.05 level of significance. Thus, there are domains in online advertising that significantly influences
the consumer buying behavior of purchasing smartphones.
The indicators necessity, brand recall and stimulation has a beta of 0.190, 0.260 and 0.290 respectively
and a corresponding p-value of 0.000 which is less than the level of significance at 0.05. This means that
necessity, brand recall and stimulation has a significant influence to the level of consumer buying behavior in
purchasing smartphone. The indicator stimulation has the highest beta of 0.290 which means that among the
three indicators, stimulation most significantly influence the level of consumer buying behavior in purchasing
smartphones.
Table 4. Regression analysis on the level of online advertising and the level of consumer buying behavior in
purchasing smartphones
Online Unstandardized Standard t-value p-value Decision
Advertisement Coefficients Coefficients α=0.05
(constant) 1.415
Necessity 0. 164 0.190 3.630 0.000 Ho is Rejected
Pleasure -0.36 -0.044 -0.765 0.445 Ho is not Rejected
Dominance 0.065 0.078 1.192 0.234 Ho is not Rejected
Brand Recall 0.220 0.260 3.936 0.000 Ho is Rejected
Stimulation 0.230 0.290 4.642 0.000 Ho is Rejected
r=0.681 r2=0.464
f-ratio=62.259 p-value=0.000
The regression analysis on the influence of the domains of online advertising towards consumer buying
behavior in purchasing smartphone revealed that stimulation is the strongest domain. This means that for the
consumer to display a positive buying behavior, smartphone companies are encouraged to use online
advertising channels to stimulate the consumers to buy the product. This happens when online advertising give
motivation, excitement and pleasurable stimulation to buy the product.
In the same manner, the use of online advertising on the aspect of brand recall and necessity have also an
influence to the consumer buying behavior in purchasing smartphone which implies that brands of mobile
phones as well as the necessity of the consumer to buy mobile phones should be considered in any online
advertisement initiative because online advertising performs as the interaction point between the consumer and
company from which they buy the products Tzokas et al., (2004). It is important to note that the presence of
online promotional advertising has been growing significantly on the internet and it attracts a well-educated
community which motivate and drive he the consumers for switching from one brand to another. Another
effective way of stimulating consumer response is the use of celebrity endorsement in an online media
advertisement (Awan et al., 2015); (Hassan et al., 2015), as it attract the customers especially a society
dominated by fan clubs initiated by millennial consumers.
CONCLUSION
The findings of this study revealed that online advertising and consumer buying behavior in purchasing
smartphones are of high levels. A significant relationship between online advertising and consumer buying
behavior in purchasing smartphones was evident. Further, the results showed that necessity, pleasure,
dominance, brand recall and stimulation have significant relationship on consumer buying behavior in
purchasing smartphones. Lastly, among the five indicators, stimulation, brand recall and necessity were found
to have significantly predicts consumer buying behavior in purchasing smartphone.
A. Implications
The use of online advertising is a good avenue for cellphone shops to attract and eventually encourage the
consumers to buy smartphones. Online advertising is advantageous to business owners because it has an
extensive coverage. Also, it has a large capacity to store and disseminate information because online
community always find a necessity to share thousands of pages and links which are readily available in a single
click. Online advertising has strong interaction with human sensory in real-time and instant attachment to a

certain brand or product is possible because marketers can adjust product prices, product information, and
consumers can instantly get the latest product information through chatbots, live chatboxes or even just
reading/watching it. Finally, as stimulation appears to be the strongest predictor, store managers must think of
perfect formula to stimulate consumer’s response to the online advertisement in order to increase sales.
REFERENCES
Adelaar, T., Chang, S., Lancendorfer, K. M., Lee, B., & Morimoto, M. (2003). Effects of media formats on
emotions and impulse buying intent. Journal of Information Technology, 18(4), 247–266.
Awan, A. G., Ismail, M., Majeed, F., & Ghazal, F. (2015). Effects of advertisement on consumer’s buying
behaviour with references to FMCGs in southern Punjab-Pakistan. Journal of Marketing and Consumer
Research, 19, 22–30.
Awan, A. G., & Shahid, M. (2015). Impact of Green Marketing on purchasing behavior of educated customers:
A case study of Multan Region-Pakistan. Journal of Global Economics, Management and Business
Research, 4(2), 95–101.
Darley, W. K., Blankson, C., & Luethge, D. J. (2010). Toward an integrated framework for online consumer
behavior and decision making process: A review. Psychology & Marketing, 27(2), 94–116.
Gravetter, F. J. (2004). Statistics for the behavioral science/Frederick Gravetter.
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship management on
customer satisfaction. Procedia Economics and Finance, 23, 563–567.
Ifeanyichukwu, C.D., Ayodele., & Adetola, A. (2016). Factor Influencing Smartphone Purchase Behavior
Among Young Adults In Nigeria. 7(9).
Kotler, P. (2006). Dan KL Keller, 2006. Marketing Management, 12.
Ma, Z., Yang, Z., & Mourali, M. (2014). Consumer adoption of new products: Independent versus
interdependent self-perspectives. Journal of Marketing, 78(2), 101–117.
Martins, E.-C., & Terblanche, F. (2003). Building organisational culture that stimulates creativity and
innovation. European Journal of Innovation Management.
Opeodu OI, G. S. (2017). Faktor-Faktor Yang Mempengaruhi Pilihan Produk Oral Hygiene Oleh Pasien Gigi Di
Rumah Sakit Pengajaran Nigeria.
Peter, J. P., Olson, J. C., & Grunert, K. G. (1999). Consumer behaviour and marketing strategy. McGraw-hill
London.
Schiffman, L. G., Kanuk, L. L., & Hansen, H. (2012). Consumer Behaviour 2nd ed. Pearson.
Sharma, P., Sivakumaran, B. and Marshall, R. (2010). Menjelajahi Pembelian Impulsif dan Pencarian Variasi
oleh Pembeli Eceran: Menuju KesamaanKerangka konseptual.
Shrivastava, A. (2014). Apakah Iklan Bekerja : Studi Perubahan Perilaku Membeli Konsumen Akibat Iklan.
Singh, A. S. dan J. P. (2014). The influence of socio-economic status of parents and home environment on the
study habits and academic achievement of students. 5(9).
Tzokas, N., Hultink, E. J., & Hart, S. (2004). Navigating the new product development process. Industrial
Marketing Management, 33(7), 619–626.

The Influence of Advertising, Sales Promotion, and Service

Quality on Customer Loyalty of Bank Jatim Indonesia
Novi Nurlaini1, Joko Suyono2, Damarsari Ratnasahara Elisabeth3

Abdul Thalib Bin Bonn4
University Tun Hussein On Malaysia1,2,3,4
Email : novinurlini@gmail.com1, joko.suyono@narotama.ac.id2
damarsariarizona@gmail.com4, talib@uthm.edu.my3
ABSTRACT
Purpose: The purpose of this study is to analyze the influence of advertising, sales promotion and service
quality on customer loyalty at Bank Jatim Indonesia, Branch of Dr. Soetomo Hospital Surabaya. The population
in this study was 2,155 customers, the number of samples using the Slovin formula was 96.
Design/methodology/approach: The data analysis technique used was multiple regression analysis.
Findings: The research results are: 1) There is an influence of advertising on customer loyalty at Bank Jatim
Branch of Dr. Soetomo Hospital Surabaya, 2) There is an influence of sales promotions on customer loyalty at
Bank Jatim Branch of Dr. Soetomo Hospital Surabaya, 3) There is an influence of service quality on customer
loyalty at Bank Jatim Branch of Dr. Soetomo Hospital Surabaya, 4) There is an influence of advertising, sales
promotion and service quality simultaneously on customer loyalty at Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya, 5) Among the variables of advertising, sales promotion and service quality, the sales
promotion variable has a dominant influence on customer loyalty at the Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya.
Originality/value: This Paper is Original
Keyword: Advertising, Customer Loyalty, Sales Promotion, Service Quality
Received: November 2nd, 2020

Revised: January 6th, 2021
I. INTRODUCTION
The rapid growth of bank is the impact of the economic growth of the community, resulting in intense
competition in the world of financial institutions to compete in gaining the sympathy of the public to become
customers of the bank. Various bank products were issued with various facilities and facilities aimed at
attracting the public to use the services of the bank.
Humans as social beings have never escaped the communication process. Humans always need
information as a source of their knowledge. Print media is one of the vital sources of information today. Print
media has played an important role in human civilization. Historical events cannot be separated from the
influence of the print media. Print media increasingly shows its existence in the last two decades. No important
events are missed by the print media. All written in print media. Print media is a silent witness to human
civilization, as well as the development of Indonesia. Advertising as a form of promotion used by companies to
inform everything of the products produced by the company. Ads that are broadcast regularly on the advice of
electronic media and print media. Advertising that is used by banks through the browser has an easy and
convenient savings method in making transactions.
The Influence of Advertising, Sales Promotion, and Service Quality Page │ 262
on Customer Loyalty of Bank Jatim Indonesia
Novi Nurlaini, Joko Suyono, Damarsari Ratnasahara Elisabeth
Customer loyalty is very important in a very tight business competition, because loyalty will benefit the
company's long-term development, according to Kotler & Keller (2009) creating strong and close relationships
with customers is the dream of all marketers and this is often become the key to long-term marketing success.
To get customer loyalty, companies need to do the right marketing strategy so that it can affect customer loyalty.
Customer loyalty has an important role in a company, maintaining customer loyalty means improving financial
performance and maintaining the survival of the company, this is the main reason for a company to attract and
maintain customer loyalty. Tjiptono (2014), states that customer loyalty can be defined as a response that is
closely related to a pledge or promise to hold firm to the commitments that underlie the sustainability of
relationships, and are usually reflected in consistent repurchases. Factors influencing customer loyalty include
advertising (Shodiq & Hidayat, 2016) , sales promotion (Yulianto, Yulianeu, Gagah, & Syaifuddin, 2016), and
service quality (Tjiptono, 2012); (Yulianto et al., 2 016).
Advertising is a form of paid communication that uses mass media and interactive media to reach broad
auditors in order to connect clear sponsors with buyers (target audience) and provide information about products
- goods, services, and ideas - (Nasrullah, 2017). The definition of this advertising contains five factors:
Advertising is usually paid by advertisers; paid, and sponsors are identified; advertising generally reaches a
broad audience; the message is conveyed through various kinds of mass media. In other words, advertising is
not aimed at specific people, even though this characteristic changes after the advent of the internet and more
interactive types of media. In other words, advertising is aimed at customers and prospective customers to
persuade them to buy products / services offered.
Promotion is one of the important marketing activities for companies in an effort to maintain the survival
of the company and improve the quality of sales to increase marketing activities in terms of marketing goods or
services from a company. One tool to help companies in communicating with consumers is promotion that can
convey information in the form of knowledge about the products offered. Lupiyadi (2013) defines promotion as
an activity carried out by the company to communicate the benefits of the product and as a tool to influence
consumers in the activity of buying or using services as needed.
Quality is something that must be done for service providers properly. The quality of a product or service
is a major part of the company's strategy in order to achieve sustainable excellence, either as a market leader or
as a strategy to continue to grow. According to Tjiptono (2014) quality of service focuses on efforts to meet the
needs and desires of consumers and the accuracy of delivery to compensate for consumer expectations.
According to Tjiptono (2014)quality is a combination of traits and characteristics that determine the extent to
which outputs can meet the requirements of customer needs, so customers determine and assess how far these
characteristics meet their needs.
Based on the background of the study above, the research questions are made as follows:
Does advertising influence customer loyalty of Bank Jatim Branch Dr. Soetomo Hospital Surabaya?
Does sales promotion influence customer loyalty of Bank Jatim Branch Dr. Soetomo Hospital Surabaya?
Does service quality influence customer loyalty of Bank Jatim Branch Dr. Soetomo Hospital Surabaya?
Does advertising, sales promotion, and service quality influence customer loyalty of Bank Jatim Branch Dr.
Soetomo Hospital Surabaya?
1. Among the variables of advertising, sales promotion and service quality, which variable has the dominant
influence on customer loyalty of Bank Jatim Branch Dr. Soetomo Hospital Surabaya?
A. Advertising
Advertising is strategic communication that is intended to get something, to create an impact, namely the
response of consumers, such as understanding information or persuading someone to do something (Moriarty,
Mitchell, & Wells, 2011). In terms of communication whether or not the advertising message delivered will
depend on who the customer or prospective customer is and through what media the message is delivered.
Therefore, to make communication effective and successful, the key is who the target customer is from the ad
message. After both of these can be understood, it is likely that the number of buyers and frequency of
purchases obtained will be in line with the predetermined sales targets. Electronic media, such as the internet
and wireless communication, have changed the media landscape and formed closer, interactive and personal
communication that is more important to advertisers. So that "new advertising" emerged that challenged the
orientation of the old ad, could even open new business opportunities.
According to Nasrullah (2017) there are several types of social media advertisements, including:
1. Social networking media (social networking)
Social networking is social media that allows its members to interact with each other through messages,
photos and videos so that they can attract the attention of other users. All information published through this
social network is real time like what is happening. Social networking provides some content for users so
users have space to communicate and interact.
2. Online journal (blog).
Blogs are social media that make it easier for users to upload their activities, discuss, and share links, web,
information, and so on. Blog characters are used to publish content related to users, both by individuals and
companies / business institutions according to their needs. Nasrullah (2017) Some website services that host
blogs such as blogger.com and nusantarahost. Blogger.com is one of the free blog hosting that can be used
to create interesting and unique blogs according to the character of the user.
3. Simple online journal (micro blogging)
Micro blogging is a social media that provides facilities to users to write and publish their activities and
opinions. The space provided on micro blogs is limited to characters that can be used, for example Twitter,
which only provides a maximum space of 140 characters (Nasrullah, 2017). Besides Twitter, an example of
a micro blog such as Zihvah is a micro blogging application created by the State of India and its use is
similar to Twitter.
4. Media sharing
Media sharing is a social media that provides facilities for users to share media such as documents, videos,
audio, images, and other media. Through this media sharing, members or users can also store various
images and videos online. Some examples of media sharing, including YouTube, Flickr, Photo bucket, and
also WhatsApp. YouTube is a social media used to play videos or upload videos to be shared with other
users. Whereas Flickr is social media used to upload, access, manage / edit photos. Photo bucket uses
almost the same as Flickr, which is to edit and share photos.
5. Social bookmarking.
Social bookmarking is social media that is used to organize, store, manage, and search for certain news
online. Information provided on social book marking media is not complete information, but only provided
information in the form of text, photos and short videos, then the user will be directed to the link or link
where the information is located. Examples of social book marking are Delicious.com and Reddit.com,
(Nasrullah, 2017). Delicious.com is a social bookmarking used to tag webs that are liked by users so that
they can be opened and read by other users. Meanwhile, Reddit.com is used to tag videos or articles so that
they can be shared and links can be saved.
6. Shared content media or Wiki
Shared content media is social media whose site is the result of the collaboration of its users. Each user can
contribute to the wiki and can also see changes that occur on the page so that the user can find out the latest
data entered, valid or not the information entered, and so on.
B. Sales Promotion
One tool to help companies in communicating with consumers is promotion that can convey information
about the products offered. Kotler & Amstrong (2014) define that promotion refers to activities that
communicate to merits of the product and persuade target customers to buy it. The definition states that
Promotion; refers to activities that communicate two Merit products and persuade target customers to buyers.
(Hermawan, 2013) argues that promotion is one of the priority components of marketing activities that tells
consumers that the company launches new products that tempt consumers to conduct purchasing activities.
Promotion is important in marketing products so that consumers will be interested and make purchases of these
products, so that a promotion needs to be designed as attractive as possible and the information delivered can be
easily understood by the community. Sales promotion is the core of a marketing campaign, consisting of a
collection of incentives, mostly short-term, designed to stimulate faster or greater purchases of certain products
or services by consumers or trade. According to Kotler & Keller (2013) that advertisements offer reasons to buy.
Kotler & Keller (2013) expalin that promotional tools include:
Consumer promotions (samples, coupons, cash refund offers, price discounts, premiums, prizes, patronage
awards, free trials, guarantees, related promotions, cross promotions, point of purchase, and
demonstrations)
Trade promotions (discounts, incentives for advertising and display, and free items)
Business promotion and sales force (trade shows and conventions, salespeople contests, and special
advertisements).
According to Kotler & Keller (2013) there are many different types of specific sales promotion tools. like
free samples that aim to encourage consumer trials, while free management advice services aim to maintain
long-term relationships with retailers. Sellers use promotional types of incentives to attract new testers, reward
loyal customers, and increase the rate of repurchase of users who rarely buy. Sales promotions often attract
people who like to switch brands, who are mainly looking for cheaper prices, better value, or premiums. If some
of them don't try the brand, promotion can result in an increase in market share in the long run. Promotions
encourage consumers to try new products and give rise to more diverse retail formats, such as everyday low
prices and promotional pricing. With sales promotion, certain manufacturers sell more than usual at official
prices and apply programs to various consumer segments. Marketers also implement sales promotions to attract
new customers and instill loyalty. According to Tjiptono & Chandra (2012)sales promotion is important in
stimulating consumer response in the form of behavior (behavioral response). In the past few years, sales
promotion has grown rapidly and even the portion of the marketing expenditure level has begun to align with
advertising spending. This is due to a number of factors such as the increasingly tight level of competition for
market share, media fragmentation, the emergence of a number of new media (such as internet, interactive TV,
cable TV, mobile telephones, tablet PCs and the like, rising advertising costs in mass media). the thinner
differentiation between products which results in increasing price competition, decreasing brand loyalty,
increasingly cluttered mass media, flooded products resulting in brand proliferation, stronger retailer positions
(ie, supermarkets) and wholesalers in negotiating with producer products, developing the policy of "everyday
low price (EDLP)" and the ability of a more reliable price promotion to boost short-term sales.
C. Service Quality
The quality of a product or service is a major part of the company's strategy in order to achieve sustainable
excellence, either as a market leader or as a strategy to continue to grow. According to Moenir (2012) Service is
a process of fulfilling needs through other people's activities directly. Service quality is the extent to which
customers' perceptions of service meet and/or exceed their expectations for example as defined by Parasuraman,
Zeithmal, & Berry (1990), cited in (Maister, 1998). Tjiptono (2014) defines that quality of service focuses on
efforts to meet the needs and desires of consumers and the accuracy of delivery to compensate for consumer
expectations. Furthermore Tjiptono (2014) explains that there are five dimensions of service quality that can be
used to measure service quality such as the following:
1. Tangible
The dimensions of physical appearance (tangible) given by the company to consumers include physical
facilities, employee equipment, and communication facilities. The ability of a company to show its
existence to external parties. The appearance and ability of reliable facilities and physical infrastructure of
the company and the state of the surrounding environment is one of the ways in which service companies
provide quality service to customers. Can include physical facilities - buildings, books, bookshelves, tables
and chairs, etc. -, technology, equipment, and the appearance of employees.
2. Reliability
The dimensions of reliability provided by the company in the form of the ability to deliver promised
services immediately, speed, accuracy and satisfaction. The company's ability to provide services in
accordance with what was promised accurately and reliably. Performance must be in accordance with
customer expectations reflected in the timeliness, the same service for all customers without errors,
sympathetic attitudes and high accuracy.
3. Responsiveness
The responsiveness given by the company in the form of the desire of the staff to help consumers and
provide responsive services. Willingness to help customers and provide services quickly and precisely with
the delivery of clear information. Ignoring and letting customers wait for no apparent reason causes a
negative perception of service quality.
4. Assurance
The Dimension of assurance provided by the company covers the knowledge, ability, politeness, and
trustworthiness of the staff, free from danger, risk or doubt. Knowledge, courtesy and the ability of
company employees to foster customer trust in the company.
This assurance includes several components, including:
a. Communication, which is continuously providing information to customers in the language and the use
of clear words so that customers can easily understand what is informed by employees and quickly and
responsibly address complaints and complaints from customers.
b. Credibility, the need for collateral for a trust given to customers, believability or honesty, instilling
trust, providing good credibility for the company in the future.
c. Security, the existence of a high trust from customers for services received.
d. Competence, is a skill that is owned and needed in order to provide services to customers optimally.
e. Courtesy, in the service of a moral value that is owned by the company in providing services to
customers.
Empathy
The dimension of empathy includes ease in relationships, good communication, personal attention, and
understanding the needs of consumers. Give sincere and individual or personal attention given to customers
by trying to understand the desires of consumers where a company is expected to have an understanding
and knowledge of customers, understand customer needs specifically, and have a comfortable operating
time for customers.
Tjiptono (2012) explain that there are several factors that need to be considered in improving service
quality:
Identify the main determinants of service quality
Each service provider is required to deliver the best quality services to consumers. Some factors that
become consumers' judgment are transaction security (payment using credit or debit card), security,
timeliness, and others. This effort is carried out to build consumer views on the quality of services that have
been received. If there are deficiencies in some of these factors, it needs to be considered and improved. So
that there will be a better assessment in the eyes of the customer.
Manage customer expectations
Many companies try to attract the attention of customers in various ways as one of them is to overestimate
the promise so that it becomes a "boomerang" for the company if it cannot fulfill what has been promised.
Because the more promises given, the greater the customer's expectations. It's good to be wiser in giving
'promises' to customers.
Manage evidence of service quality
The aims to strengthen customer ratings during and after the service is delivered. Unlike products that are
tangible, while services are performance, customers tend to pay attention to "what services will be
provided" and "what kind of services have been received". So that it can create certain perceptions of
service providers in the eyes of consumers.
Educate consumers about services
The effort to educate services to consumers aims to realize the process of delivering and consuming
services effectively and efficiently. Customers will be able to make purchasing decisions better and
understand their role in the service delivery process.
Growing a culture of quality
Quality culture can be developed in a company by holding a comprehensive commitment from all
organizational members from the top to the lowest. Quality culture consists of philosophy, beliefs, attitudes,
norms, values, traditions, procedures, and expectations relating to improving quality.
Creating automating quality
Automation has the potential to overcome problems in terms of the lack of human resources the company
has. But attention is needed in aspects of human touch and elements that require automation (high tech).
The balance between the two things is needed to produce successful delivery of services effectively and
efficiently. For example, internet banking, phone banking, and the like.
Follow up on services
Follow-up services are needed to improve service aspects that are unsatisfactory and maintain good ones. In
this framework, the company needs to conduct a survey of some or all consumers regarding the services
that have been received. So that companies can find out the level of quality of service in the eyes of
consumers.
Develop a service quality information system
Service quality information system is a system used by companies by conducting data research. Data can be
in the form of results from the past, quantitative and qualitative, internal and external, as well as
information about companies, customers and competitors.
Tjiptono (2014) identified five gaps in the quality of service needed in providing services, the five gaps
are:
a. Gap between consumer expectations and management perceptions.
b. The gap between management and customer perceptions of service quality specifications.
c. Gap between service quality specifications and service delivery.
d. Gap between service delivery and external communication.
e. Gap between expected services and realservices.
D. Customer loyalty
Customer loyalty has an important role in a company, maintaining them means improving financial
performance and maintaining the survival of the company, this is the main reason for a company to attract and
retain them. According to Berry in Tjiptono (2014) stating customer loyalty can be defined as a response that is
closely related to pledges or promises to uphold the commitments that underlie the sustainability of
relationships, and are usually reflected in consistent repurchases. Customer loyalty according to Griffin (2012)
customer loyalty is: How to earn it to keep. That customer loyalty tends to be closer to behavior (behavior)
rather than attitude (attitude). Thus if a customer has bought two or three times the same product, then
automatically entered as a loyal customer. Customer loyalty is an important thing that must be maintained by the
company for the sustainability of the company and can improve good relations between service provider
companies with their customers. Loyal customers will benefit the company because loyal customers indirectly
can contribute to introducing the products or services they have felt to their family or colleagues. Loyal
customers will always use products or services from the company and are reluctant to use products from other
companies.
Kotler & Keller (2016) define customer loyalty as a deeply held commitment to rebuy or repatronize a
product or service in the future despite situational influences and marketing efforts to have the potential to cause
switching behavior. Furthermore, in line with the previous definition, Lovelock & Wright (2010) define that
loyalty is used in a business context, to describe the willingness of customers to always use the company's
products in the long run, especially if they use them exclusively, and recommend company products to friends
and colleagues. This definition is in line with the definition of customer loyalty proposed by YIN & Djauzi
Mudzakir (2015) which state that customer loyalty can be defined in two distinct ways. First, loyalty is attitude.
Different feelings create individual's overall attachment to a product, service, or organization. These feelings
define the individual (purely cognitive) degree of loyalty. The second definition of loyalty is behavior.
Examples of loyalty behavior include increasing the scale of relationships, or the act of recommendation. Loyal
customers are important assets for the company that must be maintained. Loyal customers have several
characteristics that can show how much customers are loyal to a product or service. As revealed by Kotler &
Keller (2016) loyal customers have the following characteristics:
a. Satisfaction: stay with the company as long as expectations are met
b. Repeat purchase: return to the company to buy again
c. Word of mouth / buzz: put up a reputation to let others know about the company.
d. Evangelism: convincing others to buy company products
e. Ownership: feel responsible for the company's continued success.
According to Griffin quoted by Hurriyati (2015) there is a process or stages of customer loyalty formation
which is divided into seven stages, include:
Suspect
Suspect includes all people who might buy goods / services of the company but do not know anything about
the company and the goods / services offered.
Prospects
Prospects are people who have a need for a particular product or service and have the ability to buy
products / services. These prospects, even though they have not made a purchase, they have known the
existence of the company and the goods / services offered, because someone has recommended the goods /
services to him.
Disqualified Prospects
It is a prospect that already knows the existence of certain goods / services, but does not have the need for
goods / services or does not have the ability to buy goods / services.
First Time Customers
That is the customer who bought for the first time. They are still new customers to use the products offered
by a company.
Repeat Customers
Namely customers who have purchased a product twice or more. They are those who make the same
purchase twice, or buy two different types of products on two different occasions.
Clients
Clients are customers who will buy all the goods or services offered by the company and what they need.
They buy regularly, relationships with these types of customers are strong and long lasting, which makes
them unaffected by competing products.
Advocates
Like clients, advocate for buying the goods or services offered and what they need, as well as making
regular purchases of these products. In addition, they encourage their friends to buy goods or services from
the company or recommend the company to others, thus indirectly they have been marketing to the
company and bringing consumers to the company which is very good for the sustainability of the company.
E. Hypothesis
The model of this research is as follows:
Advertising
(X 1)
Sales Promotion Customer Loyalty
(X 2) (Y)
Service Qaulity (X3)
Figure 1: The research model and hypotheses
Notes :
: parsial relation
: simultaneus relation
From the model above, the research hypothesis is arranged as follows:
a. Advertising affects customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
b. Sales promotion affects customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
c. Service quality affects customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
d. Advertising, sales propmotion, and service quality affect customer loyalty of Bank Jatim Branch of Dr.
Soetomo Hospital Surabaya.
e. Sales promotion has a dominant effect on customer loyalty of Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya.
II. METHODS
A. Population and Sample
It should be mention time and place of research in first part. All materials and methods that used such
chemical for analysis, treatment and experimental design must be stated clearly and briefly. State the objectives
of the work and provide an adequate background, avoiding a detailed literature survey or a summary of the
results. A Theory section should extend, not repeat, the background to the article already dealt with in the
Introduction and lays the foundation for further work. a Calculation section represents a practical development
from a theoretical basis. Materials and methods must be written using 400 until 600 words.
B. Data Analysis Techniques

In order to examine the relationship between independent variables and dependent variables and to
analyze research hypothesis proposed, the authors use multiple linear regression analysis with the help of SPSS
for Windows.
Table 1 : Validity Test of Advertising

Statement r count r table Remark
1 0.621 0.3061 Valid
2 0.545 0.3061 Valid
3 0.591 0.3061 Valid
4 0.669 0.3061 Valid
5 0.611 0.3061 Valid
6 0.682 0.3061 Valid
7 0.729 0.3061 Valid
8 0.720 0.3061 Valid
9 0.769 0.3061 Valid
10 0.708 0.3061 Valid
Table 1 above shows that all items in the advertising variable (X1) are valid because having a calculated r
value greater than r table is r > 0.3061.
Table 2 : Validity Test of Sales Promotion

1 0.674 0.3061 Valid
2 0.814 0.3061 Valid
3 0.783 0.3061 Valid
4 0.829 0.3061 Valid
5 0.845 0.3061 Valid
6 0.677 0.3061 Valid
7 0.304 0.3061 Valid
8 0.662 0.3061 Valid
9 0.649 0.3061 Valid
10 0.470 0.3061 Valid
Table 2 above shows that all items in sales promotion (X2) are valid because having a calculated r value
greater than r table is r > 0.3061.
Table 3 : Validity Test of Service Quality

1 0.874 0.3061 Valid
2 0.942 0.3061 Valid
3 0.894 0.3061 Valid
4 0.879 0.3061 Valid
5 0.902 0.3061 Valid
6 0.709 0.3061 Valid
7 0.802 0.3061 Valid
8 0.661 0.3061 Valid
9 0.711 0.3061 Valid
10 0.802 0.3061 Valid
Table 3 above shows that all items in service quality variable (X3) are valid because having a calculated r
Table 4 : Validity Test of Customer Loyalty

1 0.909 0.3061 Valid
2 0.783 0.3061 Valid
3 0.534 0.3061 Valid
4 0.750 0.3061 Valid
5 0.705 0.3061 Valid
6 0.790 0.3061 Valid
7 0.801 0.3061 Valid
8 0.881 0.3061 Valid
9 0.736 0.3061 Valid
10 0.772 0.3061 Valid
Table 4 above shows that all items in customer loyalty variable (Y) are valid because having a calculated r
C. Reliability Test
Table 5 : Reliability Test

Cronbach’s Standard of
Variabel Remark
Alpha Reliability
Advertising (X1) 0,846 0,60 Reliable
Sales Promotion (X2) 0,871 0,60 Reliable
Service Quality (X3) 0,836 0,60 Reliable
Customer Loyalty (Y) 0,917 0,60 Reliable
Table 5 above shows that the results of the cronbach's alpha (α) value variables X1, X2, X3 and Y > 0.60
so that the questionnaire of the four variables is reliable as a variable measuring instrument.
To determine the relationship between the observed variables, the interpretation of the correlation
coefficient is used as follows:
Table 6 : Multiple Regression Analysis

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 18.889 5.035 3.752 .000
Advertising .290 .121 .269 2.388 .019
Sales Promotion .534 .091 .539 5.839 .000
Service Quality .275 .120 .268 2.287 .024
a. Dependent Variable: customer loyalty
1. The influence of advertising on customer loyalty

From the results in Table 6 above, it can be seen that the acquisition of the value of t count is 2.388.
Meanwhile, for t table with a significance level of 0.05, the value of t table is 1.985. Comparison between
the two produces t count > t table (2.388 > 1.985). Significance value t for advertising variable is 0.019 and
the value is smaller than the probability of 0.05 (0.019 < 0.05). So that this test shows that Ha is accepted
and Ho is rejected. This means that there is an influence of advertising on customer loyalty of Bank Jatim
Branch of Dr. Soetomo Hospital Surabaya.
2. The influence of sales promotion on customer loyalty
the two produces: t count > t table (5.839 > 1.985). The significance value of t for location variable is 0,000
and the value is smaller than the probability of 0.05 (0,000 < 0,05). So that this test shows that Ha is
accepted and Ho is rejected. This means that there is an influence of sales promotion on customer loyalty
of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
3. The influence of service quality on customer loyalty
the two produces: t count > t table (2.287 > 1.985). The significance value of t for service quality variable is
0.024 and the value is smaller than the probability of 0.05 (0.024 < 0.05). So that this test shows that Ha is
accepted and Ho is rejected. This means that there is an influence of service quality on customer loyalty of
Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
Tabel 7 : ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 816.679 3 272.226 12.641 .000b
Residual 1981.228 92 21.535
Total 2797.906 95
The influence of adverising, sales promotion, and service quality on customer loyalty
From table 7 above with the results of data analysis using SPSS calculations obtained F count of 12.641.
This shows F count (12.641) > F table (2.70) and significance level of 0,000 < 0.05. The test results show
that the significance value of the simultaneous test (F test) is obtained by a value of 0,000, thus the
significance value obtained is smaller than the probability α specified (0,000 < 0,05). So Ho is rejected and
Ha is accepted. Then conclusions can be drawn, there is an influence of advertising, sales promotion, and
service quality on customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
Among the variables of advertising, sales promotion, and service quality, which variable has the dominant
influence on customer satisfaction of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
Based on the output in table 1 above between bank admosphere, sales promotion, and service quality.
Variable having the dominant influence on customer loyalty of Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya is sales promotion variable. It is shown in the acquisition of t count of 5.839 which is
greater than t count of other independent variables, adverising and service quality. Thus sales promotion
variable has a dominant influence on customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital
Surabaya.
III. CONCLUSION
Based on the results of the analysis and discussion previously stated, conclusions can be taken as follows:
1. There is an influence of advertising on customer loyalty of Bank Jatim Branch of Dr. Soetomo Hospital
Surabaya. It can be proven from the comparison between the two yielding: t count > t table (2.388 > 1.985).
Significance value t for advertising variable is 0.019 and the value is smaller than the probability of 0.05
(0.019 < 0.05). So that this test shows that Ha is accepted and Ho is rejected
2. There is an influence of sales promotion on customer loyalty of Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya. It can be proven from the comparison between the two yielding: t count > t table (5.839
> 1.985). The significance value of t for the sales promotion variable is 0,000 and the value is smaller than
the probability of 0.05 (0,000 < 0,05). So that this test shows that Ha is accepted and Ho is rejected.
3. There is an influence of service quality on customer loyalty of of Bank Jatim Branch of Dr. Soetomo
Hospital Surabaya. It can be proven from the comparison between the two yielding: t count > t table (2.287
> 1.985). The significance value of t for the service quality variable is 0.024 and the value is smaller than
the probability of 0.05 (0.026 < 0.05). So that this test shows that Ha is accepted and Ho is rejected.
4. There is influence of advertising, sales promotion, and service quality on customer loyalty of Bank Jatim
Branch of Dr. Soetomo Hospital Surabaya. It can be proved from the results of the calculation of SPSS
obtained F count of 12.641. This shows F count (12.641) > F table (2.70) and significance level of 0,000 <
0.05. The test results show that the significance value of the simultaneous test (F test) is obtained by a value
of 0,000, thus the significance value obtained is smaller than the probability α specified (0,000 < 0,05). So
Ho is rejected and Ha is accepted.
5. Among the variables of advertising, sales promotion and service quality, variable having the dominant
influence on customer loyalty of of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya is sales
promotion variable which has t count 5.839 which is greater than t count of other independent variables,
advertising and service quality. Thus sales promotion variable has a dominant influence on customer loyalty
of Bank Jatim Branch of Dr. Soetomo Hospital Surabaya.
REFERENCES
Griffin, J. (2012). Customer Loyalty : Menumbuhkan & Mempertahankan Kesetiyaan Pelanggan (Ed.rev., c).
Jakarta: Erlangga.
Hermawan, A. (2013). Komunikasi Pemasaran (A. Maulana, ed.). Jakarta: Erlangga.
Hurriyati, R. (2015). Bauran Pemasaran dan Loyalitas Konsumen. Bandung: Alfabetha.
Kotler, P., & Amstrong, G. (2014). Principles of Marketing. Jakarta: Erlangga.
Kotler, P., & Keller, K. L. (2009). Manajemen Pemasaran (13th ed). Jakarta: Erlangga.
Kotler, P., & Keller, K. L. (2013). Manajemen Pemasaran. Jakarta: Erlangga.
Kotler, P., & Keller, K. L. (2016). Marketing Managemen (15th ed.). Jakarta: Erlangga.
Lovelock, C., & Wright, L. K. (2010). Manajemen Pemasaran Jasa. Jakarta: Indeks.
Lupiyadi, R. (2013). Manajemen Pemasaran Berbasis Kompetensi. Jakarta: Salemba Empat.
Maister, H. D. (1998). True Professionalism (J. D. H. Purnomo, ed.). Jakarta: Gramedia Pustaka Utama.
Moenir. (2012). Manajemen Pelayanan Umum Di Indonesia. Jakarta: Bumi Aksara.
Moriarty, S., Mitchell, N., & Wells, W. (2011). Advertising (8th ed.). Jakarta: Kencana.
Nasrullah, R. (2017). Media Sosial : Perspektif Komunikasi, Budaya, dan. Sosioteknologi (Cet. 2). Bandung:
Remaja Rosdakarya.
Parasuraman, A., Zeithmal, V. A., & Berry, L. L. (1990). Delivering Quality Service : Balancing Customer
Perception and Expectations. USA: The Free Press.
Shodiq, M., & Hidayat, W. (2016). Pengaruh Kualitas Produk Dan Iklan Terhadap Loyalitas Konsumen Majalah
Swa Melalui Kepuasan Konsumen Sebagai Variabel Intervening (Studi Kasus Di Dki Jakarta). Jurnal Ilmu
Administrasi Bisnis, 5(4), 86–93. Retrieved from
https://ejournal3.undip.ac.id/index.php/jiab/article/view/13380/12937
Tjiptono, F. (2012). Strategi Pemasaran. Yogyakarta: Andi Offset.
Tjiptono, F. (2014). Pemasaran Jasa – Prinsip, Penerapan, dan Penelitian. Yogyakarta: Andi Offset.
Tjiptono, F., & Chandra., G. (2012). Service, Quality Satisfaction. Yogyakarta: Andi Offset.
YIN, R. K., & Djauzi Mudzakir, M. (2015). Studi Kasus: Desain Dan Metode (Cetakan ke). Jakarta: Rajawali
Pers.
Yulianto, I., Yulianeu, Gagah, E., & Syaifuddin, T. (2016). Pengaruh Promosi Penjualan, Harga Dan Kualitas
Pelayanan Terhadap Kepuasan Dan Loyalitas Konsumen ( Studi Kasus Counter Handphone Di Shiba
Communication ). Journal of Management, 3(3), 1–10. Retrieved from
https://jurnal.unpand.ac.id/index.php/MS/article/view/645
Factor Influence of Container Loading and Unloading As

Productivity Support on Mirah Terminal
Sumarzen Marzuki1, Rusi Aswidaningrum2, Choirul Anam3, Soedarmanto4

Academy of Administration and management Barunawatu Surabaya1,2,3,4
West Perak Street No.173, North Perak, Pabean Cantian District, Surabaya
Email: sumarzenmz@gmail.com1, rusiaswidaningrum@stiamak.ac.id2, choirulanam2810@gmail.com3,
soedarmanto@stiamak.ac.id4
ABSTRACT
Purpose: This study aims to obtain a quantitative model that can be used to determine the factors that have a
significant impact on loading and unloading productivity.
Design/methodology/approach: The method used to solve the problem is multiple linear regression method and
dummy variable.
Findings: The number of samples for this analysis were all ships thats belong to PT Meratus Line which docked
at the Mirah Terminal in Surabaya for 12 months, starting from January 2019 to December 2019. The response
used is realization data in the number of containers per hour. The initial predictors that are thought to have an
impact on productivity are operational personnel and loading and unloading workers, loading and unloading
equipment readiness, work system, full empty ratio and total container weight. There are 4 steps to analyze the
regression model that has been obtained. Simultaneous test (using P-value), individual test (t test), F test
(simultaneous test), Glejser heteroscedasticity and heterocedasticity test, multicoreleation test, reliability test
and validity test and residual test and the best final model obtained.
Practical implications: The conclusion is that the weight and the order of the containers are the factors that
most take influence the productivity of both the CY (Container Yard) and the ship. The value of the influence of
the significance of determination is 957 or equal to 95.7%, so that means that one independent variable has a
significant influence of 19% on the existing dependent variable.
Originality/value: This paper is original.
Paper type: Research paper.
Keyword: Dummy Variable, Multiple Linear Regression, Productivity
Received: April 8th, 2021

I. INTRODUCTION
Based on preliminary observations, loading and unloading productivity at Mirah Terminal affects several
aspects of work that can make cases (problems) that can be researched in order to provide solutions and new
systems to run, so as to get new performance / work systems as acceleration and the achievement of productivity
itself is in accordance with what has been applied. The cases / problems in Mirah Terminal itself are quite
numerous and complex to research such as the limited container yard loading and unloading equipment , ship
cranes used for the loading and unloading tools at the dock, the existing work system is still influenced by
loading and unloading workers and so on.
Factor Influence of Container Loading and Unloading Page │ 273

As Productivity Support on Mirah Terminal
Sumarzen Marzuki, Rusi Aswidaningrum, Choirul Anam, Soedarmanto
As for all matters related to the productivity of loading and unloading containers at Mirah Terminal,
including the presence of both operational and loading and loading workers who carry out their duties and
responsibilities for a good job, the readiness of existing supporting tools and use for smooth movement of
containers both from CY (container yard ), truck chassis, docks to the top of the ship for loading, work systems
in place to carry out work planning in order to get maximum results and get the maximum possible results, the
ratio of fully empty containers which can determine activities related to the work system to be used to carry out
existing work activities and also the weight of the container which is one of the main reasons for carrying out
lifting or related unloading activities so that activities can run faster by carrying out ship unloading activities
quickly and maximally with one force unloading two containers live. All related matters in the aspects that are
capable of supporting productivity itself can fulfill the maximum possible results. The productivity obtained has
a very significant effect in gaining company profits.
In the previous research on "loading and unloading productivity" which was carried out by Gunawan,
(2008), 5 factors were thought to be influential, namely gank / labor group, loading and unloading equipment,
full empty ratio, container weight, and loading and unloading process time. The results obtained by carrying
gank, full empty ratio and loading and unloading tools have the greatest influence, while container weight and
loading and unloading time do not have a significant number or results by showing negative results on the
existing loading and unloading productivity. In this research, which was carried out at Berlian Surabaya
Terminal with case studies obtained based on ships belonging to the shipping company PT Meratus Line which
docked and carried out loading and unloading work in the work environment of the Berlian Surabaya Terminal
area which was managed by PT Berlian Jasa Terminal Indonesia found that they did not have a work system and
equipment readiness that is being discussed , it does not experience a significant effect, it does not experience
significant obstacles and all related matters already have work standardized.
To get the best results is by looking at the results of the test data made by looking at the reference to
the existing hypothesis in the subject of the problem to be investigated and it can be concluded that the truth of
the existing work process, while this study uses multiple linear regression as a tool that is often used to conduct
research. on the loading and unloading productivity itself to see the results that are already significant. Linear
regression method is one method that is often used to analyze and the related relationships of several factors. In
addition, this linear regression method can provide a description and the extent of the influence of uncontrolled
factors, provide predictiomn and build models.
II. METHODOLOGY
A. Operational Personnel
According to Widjono, (2007) operational is a definition of what is used as a new definition for doing any
activity.
Operational personnel are all people who are given the job and authority to carry out their duties or
jobdesk as appropriate and precisely based on the predetermined SOP (Standard Operating Procedure). This
operational personnel has an important meaning in every operational activity related to everything that has been
determined by the company, as a support for the success, speed and smoothness of all work that has been
determined by the company, in the implementation of existing work existing operational personnel must have
work ethic, honesty, cooperation, decision making and so on in order to complete predetermined work quickly,
safely and precisely.
B. TKBM (Loading and Unloading Workers )

According to Suyono, (2007) TKBM (Loading and Unloading Workers) are workers who carry out loading
and unloading activities at the port, as executors of the smooth operation of existing operations and are related to
work on warehouses and docks both on ships and at dock kades.
In determining the productivity that is in accordance with the application of the work system to made the
results of the application of the work system can be maximally achieved, needs analysis that related to the
importance of productivity itself for the company and all involved workers and capable to realize the
achievement of productivity itself. The goals and benefits that can be obtained from measuring productivity so
that everything that is going to be done and done has a fairly good and detailed orientation and focus with
respect to the results to be obtained in running a work system that can spur productivity of loading and
unloading in the Mirah Terminal work environment, so that it can make corporate profits for the company itself.

C. Loading and Unloading

Loading and unloading is the activity of moving goods from land transportation , and to carry out the
activity of moving the cargo, it is necessary to provide adequate facilities or equipment in a service method or
procedure. What is meant by loading activity is the process of moving goods from the warehouse, loading and
then stacking them on board while the unloading activity is the process of unloading goods from the ship and
then arranging them in a warehouse at the port or stock pile or container yard.
D. Container
According to Suyono, (2007) regarding containers , are a package that is specially designed with a certain
size, can be used repeatedly, is used to store and simultaneously transport cargo.
Containers are crates or boxes that meet technical requirements in accordance with the Organization for
Standardization (ISO) as a means or equipment for transporting goods that can be used in various modes,
starting from road mode with container trucks, trains and container ships.
III. RESEARCH METHOD

Data used in this study is secondary data that have been taken directly from PT Pelabuhan Indonesia III
(Persero) Mirah Terminal Division related to loading and unloading data directly by conducting data
observations, interviews with experts or workers in the Mirah Terminal Environment, and the data that is
supported describes all the results of productivity in order to increase the increase in work and related
productivity, so that existing data and all managed variables experience perfect data validity. The secondary data
used is a reference for loading and unloading data in the Mirah Terminal environment from January 2019 to
December 2019.
For the input variable (independent variable) that is used, includes five independent variables that are
available and ready to be managed, the results include:
1. Operational Personnel and TKBM Variables (X1);
The variable of loading and unloading equipment (X2);
Work system variable (X3);
Variable Ratio Full empty (X4);
Variable Container Weight (X5);
IV. RESEARCH RESULTS AND DISCUSSION

Data processing is carried out in order to find the best results that have a positive effect and get a value that
has a significant effect on existing results, so that the managed data can be accepted and the research carried out
can also be considered correct, because getting results that have a positive effect on productivity itself.
A. Validity Test
The test is used to show the extent of the measuring instrument used in a study is proven valid or valid for
a questionnaire. According to Ghozali, (2006) states that the validity test is used to measure whether a
questionnaire is valid or not. In the validity test, the test results can be declared vaild if the Pearson correlation
or R-count table is more than the R-table value of 0.3610 or 0.4 which is obtained by means of df = (N-2) with a
significance value of 0.05 or has a star 2 (two).
B. Reliability Test
Relevability test is to measure a questionnaire which is an indicator of a variable or construct. A statement
can be said to be reliable if a person's answer to the statement is consistently stable over time. The data
processing test research can be said to be reliable if the existing data has a alpha result of more than 0.6 or
Cropbanch negligence> 0.60.
C. Classic Assumption Test

This test is done to see whether the data used has deviated from classic assumptions or not. In the
assumption test carried out, there are 3 tests that are used in the classical assumption test, namely the normality
test, multicoreality test and heteroscedasticity test. The results of the 3 tests are generated and processed
properly using SPSS 16 to obtain a data processing that has data significance related to the subject matter, so
that it can be a development of work productivity, among others, as follows.

D. Normality test
Is a test carried out with the aim of assessing the distribution of data on a group of data or variables,
whether the distribution of the data is normally distributed or not.
E. Histogram
One of data reading tools is to find out that the processed data or variables are proven to be normal. The
histogram image can be seen in the image below to ensure that the explanation is in accordance with the existing
data results based on processed variable data that has been processed using SPSS version 16, so that the data
used is completely normal and can be used as a new benchmark for the development of a new work system in
the Mirah Terminal work environment in order to achieve appropriate productivity gains.
Figure 1 Histogram
F. P-Plot or Probibality Plot

Is an image that shows the results of the data processing test data on existing variables with the conclusion
that the results of reading the processed data always follow the diagonal line, so that the existing data is proven
to be normal and acceptable.
Figure 1 P-Plot or Probability Plot
G. Kolmogorov-Sminor test data sample

Kolmogrov-Smirnov sample can be stated and proven to be normal by looking at the results of the
processed data test in the Unstandardized Residual table which must have a result greater than 0.05, so that the
existing data processing can be ascertained normal and the value obtained must be positive, so that existing data
will be valid. The Kolmogrov-Smirnov table can be stated in the table below.

Table 1 Kolmogrov-Smirnov
One-Sample Kolmogrov-Smirnov Test
Unstandardized
Residual
N 30
Mean ,0000000
Normal Parameters a,b Std.
Deviation
,99007642
Absolute ,140
Most Extreme Differences Positive ,106
Negative -,140
Test Statistic ,140
Asymp Sig (2-tailed) ,139°
H. Multicollinearity Test
Tests are carried out to ascertain whether in a regression model there is intercorrelation or collinearity
between independent variables. The cause of multicollinearity is a strong correlation or relationship between
two or more independent variables. In the multicollinearity test, the tolerant level cannot be below 0.1 and the
VIF value in the table cannot be above the value or number 10, so the data can be ascertained that there will be
no multicollinearity or the existing independent variable test results equation. The processed data can be
presented in the table below by looking at the table of processed data in the colinearity statistical table.
Table 2 Cefecient
Coefficients Coefficients Collinearity Statistics
Std.
Model B Error Beta t Sig. Tolerance VIF
(Constant) 4,523 2,483 1,822 ,081
Operational
personnel ,149 ,067 ,246 2,212 ,037 ,121 8,290
Readiness of
loading and
,179 ,068 ,209 2,648 ,014 ,239 4,177
unloading
equipment
Work system
,140 ,061 ,170 2,293 ,031 ,271 3,690
Ratio full
empty ,229 ,088 ,261 2,591 ,016 ,147 6,816
Container
weight ,212 ,100 ,175 2,130 ,044 ,221 4,533
I. Heteroscedasticity Test
Testing of variable data that has a significance level with the conclusion that it should not be below 0.05 or
the independent variable cannot affect the Y variable or this data processing is assumed to be the name abs_res
data test. The heteroscedasticity test data can be presented using two modes of data test results, with the
ordinary image results or using the heteroscedasticity test using the Glejsier test to further ensure that the data to
be processed does not experience symptoms of heterocedasticity. And the two processed data results can be
presented in the following figures and tables.

Table 3 Glejser Heterokedastasis Test Results
Model Coefficients Coefficients
B Std. Error Beta t Sig.
(Constant) ,153 1,585 ,096 ,924
-
Operational personnel ,043 -,054 -,099 ,922
,004
Readiness of loading and - -
,043 -,462 ,240
unloading equipment ,052 1,204
Work system ,072 ,039 ,666 1,846 ,077
Ratio full empty ,012 ,056 ,107 ,218 ,829
-
Container weight ,064 -,069 -,173 ,864
,011
a. Dependent Variable: Abs_res
In the Glejser Heteroscedasticity test,explained that heteroscedasticity did not occur according to the
explanation above.
Figure 2 Scatterplot
In the Heteroscedasticity test using a scatterplot, you can process the data using Zpred and Spresit, review
the results of the processed data are scattered randomly or randomly and the points are above and below the
number 0.
J. Multiple Linear Regression

The tools used in testing is the hypothesis. Multiple linear regression analysis is used to measure the
strength of the relationship between the independent variables and the dependent variable and to show the
direction of the relationship between these variables. This analysis will form an equation that can be explained
the results as shown in the section below:

Table 4 Results of Multiple Linear Regression Analysis
Unstandardized
Coefficients
Variabel B Std. Error

1 (Constant) 4,523 2,483
Tenaga operasional dan TKBM (X1) ,149 ,067
Kesiapan alat bongkar muat (X2) ,179 ,068
Sistem Kerja (X3) ,140 ,061
Ratio full empty (X4) ,229 ,088
Berat Container (X5) ,212 ,100
K. Hypothesis Testing
F test or Simultaneous test
Test data processing with the condition that the level of significance must be below 0.05 or 5% and F
count must be greater than F table. With the value of the resulting data processing of F table 2.53 <129.471,
which means that the conclusions obtained from the 5 independent variables are X1 (operational personnel and
loading unloading personnel / TKBM), X2 (tool readiness), X3 (work system), X4 ( Ratio Full Empty) and X5
(Container Weight) together have a significant effect on variable Y (Productivity).
Table 4 ANOVA

Regression 766,733 5 153,355 129,471 .000b
1 Residual 28,427 24 1,184
Total 795,2 29
a. Dependent Variable: Produktivitas
b. Predictors: (Constant), Berat Container (X5), Kesiapan alat bongkar muat (X2), Sistem Kerja
L. T test or Partial test

The formula for calculate this t or partial test is n-k-1, with the following formula translation:
n: Sample of respondents
k: The constant or number of independent variables
To determine the significance of the data in the t test or partial test, it must be below 0.05 or 5%. The
resulting data processed in the t test in the analysis of the existing titles, all the independent variables consisting
of 5 variables, including X1 (Operational Personnel and loading unloading personnel / TKBM), X2 (Tool
readiness, X3 (work system), X4 (Ratio full empty) , X5 (Container Weight) has significance to the value of Y
(Productivity) partially or individually.
Table 5 T Results Test and Partial Test
Model Coefficients Coefficients
B Std. Error Beta t Sig.

(Constant) 4,523 2,483 1,822 ,081
Operational personnel (X1) ,149 ,067 ,246 2,212 ,037
Readiness of loading and unloading
,179 ,068 ,209 2,648 ,014
equipment (X2)
Work system ,140 ,061 ,170 2,293 ,031
Ratio full empty (X4) ,229 ,088 ,261 2,591 ,061
Container weight (X5) ,212 ,100 ,175 2,13 ,044
a. Dependent Variabel: Produktivitas (Y)

M. Determination coefficient test (Adjustable R square)

The data test obtained was .957 or 95.7%, which means that the 5 independent variables were X1
(operational personnel and loading unloading personnel / TKBM), X2 (tool readiness), X3 (Work system), X4
(Full Empty Ratio), and X5 (Container weight) have each influence of 19% which is obtained from 95.7%
divided by the 5 existing independent variables. The value can be seen in the table below to provide a significant
explanation.
Table 6 Adjustable R square
Adjusted R Std. Error of the

Model R R Square
Square Estimate
1 9822 964 957 108.833

a. Predictors: ( Constant), Berat Container (X5), Kesiapan alat bongkar muat (X2), Sistem
Kerja (X3), Ratio full empty (X4), Tenaga operasional dan TKBM (X1)
V. CONCLUSION
A. Conclusion
Existing independent variables such as operational personnel and loading unloading personnel / TKBM
(X1), loading and unloading equipment readiness (X2), work system (X3), full empty Rato (X4), and container
weight each have a partial effect on the dependent variable. productivity (Y) with a significance number of 0.05,
the df value obtained is 25 and all partial tests can be stated in detail and correctly so that the results of the tests
carried out affect positively and get valid values.
Existing independent variables such as operational personnel and loading unloading personnel / TKBM
(X1), loading and unloading equipment readiness (X2), work system (X3), full empty Rato (X4), and container
weight each have an effect simultaneously or jointly. the same as the dependent variable productivity (Y) with a
significance number of 0.05.
Independent variables, Operational Personnel and loading unloading personnel / TKBM (X1), loading and
unloading equipment readiness (X2), work system (X3), full empty ratio (X4) and container weight (X5) which
are used as basic materials for testing related data processing with the hypothesis that is made and processed
using multiple linear regression and the existing classical assumption test resulting that have a positive effect on
the dependent variable Productivity (Y), while the 5 variables have a determination value of 95.7% or 19% per
independent variable there is a significant effect on the productivity variable (Y), so that based on the existing
point of view, the five independent variables are felt to have the most significant effect on the results than the
other variables and have a positive effect.
B. Suggestion
For Operational personnel and loading unloading personnel/TKBM
Must have self-motivation so that capable doing the job that must be his responsibility. Fostering a more
sense of responsibility for a job that has been given can bring a bad habit changement to be better one without
having to look at various aspects when doing a job that has become a responsibility and asking for it to be
completed immediately as the key to successful service related to speed, successful loading and unloading of
containers;
The readiness of the loading and unloading equipment must be very adequate if you want the loading and
unloading productivity to get better results, by providing the equation of the loading and unloading aid tool
itself, such as the RTG block must be backed up with RTG or an arrangement that adapts to the RS tool as back
up RTG. Apart from that, they carry out golden times to control or maintain equipment in good condition;
The existing work system should gradually change its work pattern, so that the existing work can run more
smoothly as it should be, for example there is a standard value given to the ship's capacity to perform loading
and unloading process without having to do a negotiation process before working;
Likewise with the ratio of full empty and the weight of the container, although as a key determinant of
work activities with the work system in Mirah Terminal, it is better if the work system pattern must have a
special standard with existing ships of the same type, so that work treatment can have a definite work standard
for doing the activities and get maximum results.
Suggestions that can be conveyed for further research are to be able to analyze similar or the same research
by collecting data that takes into account other factors so that it can be processed by obtaining data processing

that is much more complex and has significant results. Other factors that are thought to have an effect on the
length of time, success and constraints that can hinder loading and unloading productivity, such as emphasis on
idle time and NOT in order to obtain much more effective time calculations and BCH (Box Crane Hours) is
much more maximal and lots.
REFERENCES
Ghozali, I. (2006). Aplikasi analisis multivariate dengan program SPSS. Badan Penerbit Universitas
Diponegoro.
Gunawan, M. E. S. H. (2008). Suhartono,“Analisis Faktor-Faktor Yang Berpengaruh Terhadap Produktivitas
Bongkar Muat Kontainer Di Dermaga Berlian Surabaya (Studi Kasus Pt. Pelayaran Meratus),” J. Widya
Tek, 7(1), 79–89.
Suyono, R. P. (2007). Shipping: pengangkutan intermodal ekspor impor melalui laut. Penerbit PPM.
Widjono, H. S. (2007). Bahasa Indonesia: Mata Kuliah Pengembangan Kepribadian di Perguruan Tinggi.
Jakarta: Grasindo.

Does Financial Performance As An Intervening Variable in

Strengthening Market Value: Intellectual Capital Approach
Sriyono Sriyono1, Detak Prapanca2, Ainnur Rosyidah3

Universitas Muhammadiyah Sidoarjo, Indonesia1,2,3
Email: sriyono@umsida.ac.id1, detakprapanca18@gmail.com2, ainnur.rosyidah99@gmail.com3
ABSTRACT
Purpose: This research aims to determine the effect of intellectual capital on market value with financial
performance as an intervening variable.
Design/methodology/approach: This study uses quantitative methods, the population used in this study is
mining companies listed on the Indonesia Stock Exchange, sampling techniques used are purposive sampling,
sampling obtained 55 companies.
Findings: This study indicates that there is a relationship between the intellectual capital variable influences
Return on Assets.
Research limitations/implications: The analysis technique used in this study is path analysis with the Smart
PLS 3.0 program's help. Intellectual capital influences market value. Intellectual capital affects the Asset Turn
Over. Return on Assets does not affect market value. Asset Turn Over affects market value. This study
concludes that Intellectual capital has no effect on market value with return on Asset as an intervening variable..
Practical implications: This study concludes that Intellectual capital has no effect on market value with return
on Asset as an intervening variable. Intellectual capital does not affect market value with asset turn over as an
intervening variable.
Paper type: Research paper
Keyword: Asset Turn Over, Financial Performance, Intellectual Capital , Market Value, Return On Asset

I. INTRODUCTION
In industry 4.0 companies must be able to transform their business from a workforce-based business to a
knowledge-based business. In knowledge-based management system where intellectual capital becomes one of
the production factors that must be developed in a company (Ozkan, 2016). By using a business based on
knowledge, we can manage other resources appropriately so that the company can compete with competitors
and the company has a competitive advantage that is not owned by other companies.
the company's indicators have achieved its objectives can be seen from the results of performance and
market value in a company. One of the ways that companies can achieve good financial performance and market
value is by increasing the value of intellectual capital (Akhavan et al., 2012). Intellectual capital is a concept that
provides an overview of new knowledge-based resources and describes intangible assets, if the asset is used
optimally allows the company to carry out its strategy effectively and efficiently (Hadiwijaya & Rohman, 2013).
Intellectual capital can be an added value of a company so as to increase investor confidence (Nuryaman, 2015).
Does Financial Performance As An Intervening Variable Page │ 282

in Strengthening Market Value: Intellectual Capital Approach
Financial problems in a company is a very important problem and must be addressed immediately by a growing
company, because the company succeeds in seeking profit and maintaining its profit depending on the financial
performance of the company.
Produksi Barang Tambang Mineral

500000000
400000000
300000000
200000000
100000000
0
2013 2014 2015 2016 2017

Batu Bara Nikel Konsentrat Tembaga
Figure 1: Mineral Mining Goods Production
In Figure 1 it appears that there is a decline in Mineral mining products, this indicator indicates that the
decline in products will result in investors selling the shares. This problem if left there will be a lot of shares that
will be sold and this if left will lower the market value of the company with the people and friends there will be
difficulty.
Economic change in this era with the main characteristics is knowledge science with the application of
knowledge management (knowledge management) then the prosperity and welfare of a company will depend on
the capitalization and knowledge. In knowledge-based management system where intellectual capital becomes
one of the production factors that must be developed in a company (Ozkan, 2016). By using knowledge-based
resources and technology, it can know how to manage other resources appropriately and provide high economic
value, which can later bring companies able to compete
Intellectual Capital is a concept that provides an overview of new knowledge-based resources and
describes intangible assets, if the asset is used optimally allows the company to carry out its strategy effectively
and efficiently (Hadiwijaya & Rohman, 2013). Intellectual capital can be an added value of a company so as to
increase investor confidence (Nuryaman, 2015). In this case shows that the added value of a company can be
created because of intellectual capital. With the intellectual capital of the company can increase the value of the
company by improving the financial performance of the company
The results of different research were obtained from research conducted by Kristanto, (2012) on the
influence of VAIC on share prices through ROA on banking companies listed on the Indonesia Stock Exchange
year 2008-2010. In this study it links Intellectual Capital with the share price. This is a new research as a
development of intellectual capital's influence on financial performance which is then linked to the share price.
In this study vaic variables as independent variables, stock prices as dependent variables, and ROA as
intervening variables. The results of this study stated that SCVA has a negative influence on the share price
either directly or through roa. While VAHU has no influence on the share price directly or indirectly. Different
research results were also obtained from research conducted by (Nuryaman, 2015), which showed that
intellectual capital positively affects the value of the company. Companies have intellectual capital will be
greater resulting in higher financial performance.
The mining sector is a sector that supports economic development in a country, because of its role as a
medium of energy resources that means a lot to a country. Although the mining sector is used as a medium for
energy resources, but not all production of mining goods in this sector experienced good production growth,
because based on the graph of mineral mining goods production there are some mining goods in this sector
experienced a decrease in production.
The purpose of this research is for financial performance to be able to set intervening variables to
increase market value through intellectual capital. This research is important to do because through this research
it will be known whether financial performance becomes varibael interning on intellectual capital relationships
limited marker value. Kontibusi obtained in this research will provide information to the management of the
company to understand how to increase the market value

II. LITERATURE REVIEW

Resource Based View Theory (RBT) discusses the resources a company has and how it can develop a
competitive advantage using its resources. To realize this, a company must have the ability to manage the
resources owned by the company, so that the company can compete and be superior to the company's
comparators. The resources referred to in this case are intellectual capital resources that include added value
(VA), huma capital and
Stakeholder theory is a theory that explains the relationship between management and its stakeholders. In
this theory a manager should be able to adjust performance with his stakeholders, it aims to maximize the value
of the company's activities so as to minimize losses.
Stakeholders can be used as an important material in a company to increase consideration for a manager to
disclose or not an information In the context of intellectual capital the stakeholders have their own interests that
are important to influence management in the process of utilization of all potential owned by a company so as to
cause the creation of value added value
Legitimacy theory is a theory that is closely related to stakeholder theory. This theory is very closely
related to intellectual capital reporting, in which case the company is encouraged to show the capacity of
intellectual capital in the financial reporting of intellectual capital wealth owned by it. Recognition of legitimacy
is very important for a company because it is useful to maintain the existence of the company in a social
environment (Chairunissa & Dewi, 2015). Intellectual Capital (IC) is an intangible asset such as human capital,
processes and customers that can provide a competitive advantage for companies in the era of knowledge
(Wijayani, 2017). Value Added Intellectual Coefficient is a method used to calculate the value creation of
tangible assets and intangible assets in the company (Olivia & Hatane, 2015). In the Value Added Intellectual
Coefficient (VAIC) model there are three components of the company that must be measured, namely Human
Capital is a power of intellectual capital sourced from human beings owned by a company such as competent
and committed employees (Wijaya, 2012). Structural Capital (SC) Structural Capital is everything that is not
related to humans, but relates to databases, organizational structures, sets of processes and strategies (Wijaya,
2012).
Customer Capital relation capital is something related to customer loyalty, goodwill, supplier relations,
relationships with the community, image, customer satisfaction, relationships with suppliers, relationships with
shareholders and distribution channels (Hermawan, 2013).
The value of the company is the selling value of a company in the capital market which is seen based on
the company's share price (Sirojudin & Nazaruddin, 2014). The company's market value in this study used Price
Book to Value (PBV) proxy. The Price Book to Value illustrates how much the market values the book value of
the stock. Financial performance is an analysis used to see the ability of a company in implementing the rules of
financial implementation well (Fahmi, 2014), (Fahmi, 2017).
Intellectual Capital has an important role in increasing the return on assets in managing a company. If a
company's intellectual capital is good then the return on assets in a company increases which can improve
financial performance (Deep & PAL, 2014). This encourages investors to be interested and invest in a company
based on the return on assets in the company. Intellectual capital is the main factor that can provide an increase
in market value or a value (Soedaryono & Prihartini, 2012). This can be seen by the innovations made by
humans (human capital) in creating a prodak so that it has a very high selling value that results in an increase in
the value of a company.
The role of intellectual capital in improving Aseet Turn Over is very important. Because the use of
intellectual capital can increase the productivity of a company (Hermanus, 2013). This can be seen by increasing
intellectual capital components such as VACA, VAHU and STVA that can increase employee productivity
levels so as to increase Aseet Turn Over.
The increasing return on assets of a company will result in an increase in the market value or market value
of the company. In investing in stocks, investors have rational thinking (Soedaryono & Prihartini, 2012). This
means that investors have a positive signal response in investing. Investors will invest in companies that are able
to manage their assets well so as to generate high corporate value.
Assets Turn Over is directly proportional to the market value or value of the company. This means that the
higher the value of Assets Turn Over, the better the value of the company (Rinnaya et al., 2016). In that case it
means that if the value of the ATO increases then the company's value increases or the company's value
becomes good in other words the company is in good shape. Effective management and use of intellectual
capital is proven to increase the value of the company. Maximum resource management can increase the value
of the company which will then increase the company's profit while generating profit for shareholders.
Increasing the company's ability to manage asset levels in a company can increase a company's income level
(Gani et al., 2020). This means that a company that is able to manage its assets well then the level of revenue of
the company increases and causes an increase in the value

III. RESEARCH METHODOLOGY

The type of data in this study is quantitative data. This research population is a mining company listed on
the Indonesia Stock Exchange, the method of determining samples used in this study is the purposive sampling
technique. The Company that is the selection must meet the criteria. The Company that meets the requirements
desired by the researchers amounts to 55 sampling.
Table 1 Devinisi Operasional
Variable Description Formuls Measurement

PBV illustrates how
much the market rate is 𝑃𝑟𝑖𝑐𝑒 𝐵𝑜𝑜𝑘 𝑡𝑜 𝑉𝑎𝑙𝑢𝑒
𝑃𝑟𝑖𝑐𝑒 𝐵𝑜𝑜𝑘 𝑡𝑜
in respecting the book 𝑆ℎ𝑎𝑟𝑒 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 Rasio Pasar
𝑉𝑎𝑙𝑢𝑒 =
value in a company's 𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒
shares
Value added (VA) or
value added is the
VA (ValueAdded) = OUT
Value added difference between total
– IN
sales (OUT) and input
(IN)
ROA is a ratio of net 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
Return On income to total assets 𝑅𝑂𝐴 = Rasio
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑒𝑡
Assets used to measure returns Profitabilitas
on total assets after tax
Asset Turn Over is also
called total asset turover
ratio. Asset Turn Over 𝑆𝑎𝑙𝑒 Rasio
Asset Trun Over 𝐴𝑇𝑂 =
is used to see the extent 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑒𝑡 Aktivitas
to which all assets in the
company are effectively
A. Data Collection Techniques

This study's data is in the form of financial statements and annual reports on companies going public from
the Indonesia Stock Exchange through the website www.IDX.co.id. The data will collect in his analysis to solve
the problem and then concluded. The initial analysis used is to analyze the several tests that are Outer model
test, Inner Model Test. (Sirojudin & Nazaruddin, 2014)
IV. RESULTS AND DISCUSSION

a. Measurement Model Testing (Outer Model)
Outer model is done to assess the validity and reliability of the model.
1. Convergent Validity
The validity of a convergent relates to the principle that the manifest variables of a construct should be
highly correlated. The Convergent Validity value is seen by comparing the outer loading factor value with its
critical value. If the loading factor value >0.7 then the indicator is declared valid and vice versa. SmartPLS 3.0
output for loading factor values in this study gave the following results:
Table 2 Convergent Validity Results

MARKET
ATO IC ROA
VALUE
ATO 1.000
IC 1.000
PBV 1.000
ROA 1.000
Sumber : Pengolahan data dengan SmartPLS 3.0

Based on the convergent validity table the outer loading value is above 0.7. This means that all
indicators in this study are declared valid.
Discrimant Validity
This value is a cross loading factor value that is useful to know if the construct has adequate
discriminants. Discriminant Validity value is seen by comparing the loading value of the intended construct
should be higher than the other constructs. SmartPLS 3.0 output for discrimant validity value in this study gave
the following results:
Tabel 3. Hasil Discrimant Validity

MARKET
ATO IC ROA
VALUE
ATO 1.000
IC 0.222 1.000
MARKET -
0.285 1.000
VALUE 0.221
-
ROA 0.164 0.082 1.000
0.223

Based on discriminant validity table the intended loading value of the construct has a higher value than
other constructs. This means that all indicators in this study are declared valid.
Composite reliability
Data that has a composite reliability value of > 0.7 means it has high reliability. SmartPLS 3.0 output
for composit reliability value in this study gave the following results:
Tabel 4. Hasil Composit Reliability
Composite Reliability
ATO 1.000
IC 1.000
MARKET VALUE 1.000
ROA 1.000

Based on the Composite Reliability table all constructs have a value above 0.7 which is 1,000. This
means that all constructs for all criteria in this study have a high reliability value
Average Variance Extracted (AVE)
Nilai Average Variance Extracted (AVE) yang diharapkan dalam model ini adalah > 0,5. Output
SmartPLS 3.0 untuk nilai AVE dalam penelitian ini memberikan hasil sebagai berikut :
Tabel 5. Hasil Average Variance Extracted (AVE)
Average Variance Extracted (AVE)

ATO 1.000
IC 1.000
MARKET VALUE 1.000
ROA 1.000

Based on the AVE table the value of all constructs in this study is above 0.5 which is 1,000.
Cronbach alpha
Reliability tests are conducted to prove the accuracy, consistency and accuracy of the instrument in
measuring the construct. The expected alpha Cronbach value in this model is >0.6 for all constructs. SmartPLS
3.0 output for Cronbach's Alpha value in this study provided the following results:

Tabel 6. Hasil Cronbach’s Alpha

Cronbach's Alpha
ATO 1.000
IC 1.000
MARKET VALUE 1.000
ROA 1.000

Based on Cronbach's alpha table the value of all constructs in this study is above 0.6 which is 1,000.
A. Inner Model Measurement

The structural model (Inner Model) aims to differentiating the relationship between exogenous
variables and endogenous variables. Inner model testing uses coefficient path by looking at T-Statistics values
and latent variable P-Values values. The research hypothesis can be accepted if the T- Statistics > 1.96 and the
P-Values < 0.05 [21]
Figure 2. The structural model (Inner Model)
The following are the results of hypothesis testing directly obtained from SmartPLS in this study through
coefficient path:
Tabel 7. Hasil Pegujian Coefficient Path

Standard
Original Sample T Statistics
Deviation P Values
Sample (O) Mean (M) (|O/STDEV|)
(STDEV)
ATO -> MARKET VALUE 0.362 0.361 0.153 2.374 0.018
IC -> ATO 0.222 0.233 0.088 2.525 0.012
IC -> MARKET VALUE -0.312 -0.307 0.066 4.730 0.000
IC -> ROA -0.223 -0.223 0.075 2.957 0.003
ROA -> MARKET VALUE -0.047 -0.038 0.096 0.489 0.625

Intellectual capital relationship with ROA has a t-statitic value of >1.96 of 2,957 and a p-value of <0.05 of
0.003. In this case the first hypothesis is "accepted" and intellectual capital affects roa. Intellectual capital
relationship with market value has a t-statitic value of >1.96 which is 4,730 and p-value <0.05 which is 0.000. In
this case the second hypothesis is "accepted" and intellectual capital affects the market value. ROA relationship
with market value has a t-statitic value of <1.96 which is 0.489 and p-value >0.05 which is 0.625. In this case
the fourth hypothesis is "rejected" and the ROA has no effect on market value. The ATO's relationship with

market value has a t-statitic value of >1.96 of 2,374 and a p-value of <0.05 of 0.018. In this case the fifth
hypothesis is "accepted" and the ATO has an effect on market value
Tabel 8. Hasil Pengujian Indirect Effect

Standard
Original Sample T Statistics
Deviation P Values
Sample (O) Mean (M) (|O/STDEV|)
(STDEV)
IC -> ATO -> MARKET
0.080 0.083 0.047 1.727 0.085
VALUE
IC -> ROA -> MARKET
0.010 0.008 0.023 0.459 0.646
VALUE

The relationship between intellectual capital and market value through ATO as an intervening variable has
a t-statistic value of <1.96, which is 1.727, and a p-value of >0.05, which is 0.085. In this case, the seventh
hypothesis is "rejected" and intellectual capital does not affect market value through ATO as an intervening
variable. ,05 which is equal to 0.646. In this case, the sixth hypothesis is "rejected" and intellectual capital does
not affect market value through ROA as an intervening variable. The relationship between intellectual capital
and ATO has a t-statistic value > 1.96, which is 2.525, and a p-value <0.05, which is 0.012. In this case, the
third hypothesis is "accepted" and intellectual capital affects ATO
a. Discussion
1. The relationship between
This shows that the company can manage intellectual capital well so that the company can increase ROA.
This is in accordance with the Research-Based Theory (RBT), which states that a company must be able to
manage its resources properly. In this case, the resources in question are intellectual resources, including VA,
HC, and SC. The results of the study are in line with research conducted by (Ranani & Bijani, 2014), (Deep &
PAL, 2014), (Soedaryono & Prihartini, 2012), (Wijayani, 2017), and (Chairunissa & Dewi, 2015) which
explains that Intellectual capital has a positive effect on Return on Assets.
The relationship between

This shows that the company can innovate well so that the company can increase market value. In this
case, the company can innovate and be able to compete in the global market, so that the market value increases.
Stakeholder theory states that all company activities are in the creation of value creation. To create added value,
the company must be able to increase all the potential of the company's human capital, structural capital, and
physical capital.
The results of the study are in line with research conducted by (Nuryaman, 2015), (Soedaryono &
Prihartini, 2012), and (Simarmata & Subowo, 2016) which state that intellectual capital affects market value.

This shows that the company is able to use resources well so that the company's productivity increases.
Research-Based Theory (RBT) explains that knowledge-based resources such as intellectual capital which
includes VACA, VAHU, and STVA are very important for companies, because the three components are very
closely related. Because to improve employee performance these three components must coordinate with each
other.
The results of this study are in line with research conducted by(Nurhayati, 2017), (Gani et al., 2020) and
(SW & Firmansyah, 2012) which resulted that intellectual capital had an effect on Asset Turn Over.

ROA has no effect on market value because ROA is inversely proportional to firm value. In this case,
investors do not see investments based on ROA, but investors see based on ROE, liquidity, and GCG. For
investors, the most important thing is to look at financial performance based on the company's stock price.
The results of this study are in line with research conducted by (Hermawan & Maf’ulah, 2014) and (Isvara
et al., 2018), which state that ROA has no effect on firm value. Asset Turn Over has an effect on market value
which indicates that managers are able to rotate assets properly, causing the company to use very small debt in
financing production sales and can minimize losses that cause company value to increase.
The results of this study are in line with research conducted by (Rinnaya et al., 2016) and (Utami &
Prasetiono, 2016) which state that Total Asset Turn Over has an effect on firm value.

The direct effect of intellectual capital on market value is stronger than the indirect effect mediated by
ROA. Because the role of intellectual capital is very important to market value. Effective management and use
of intellectual capital have proven to be able to increase firm value.
Resource-Based Theory states that the company's ability to manage its resources properly can create
competitive advantage so that it can create value for the company.
The results of this study are in line with research conducted by (Isvara et al., 2018) and (Fitriyani, 2018)
which state that ROA is not able to mediate the relationship between intellectual capital and market value.

In this case, it means that intellectual capital only has a direct effect on the mock value. The role of
intellectual capital in increasing market value is very important for the company. In this case, intellectual capital
is able to increase the value of the company so that it can attract the attention of investors. Ownership and
utilization of intellectual resources enable companies to achieve competitive advantage and increase value-
added.
The results of this study are not in accordance with research conducted by (Wany, 2010), which states that
intellectual capital can mediate the relationship between intellectual capital and market value. The difference in
the results of this study is because the role of intellectual capital for mining companies is very important to
increase the value of the company so that it can create added value for mining companies.
REFERENCES
Akhavan, P., Mehralian, G., Rasekh, H. R., & Sadeh, M. R. (2012). The impact of intellectual capital efficiency
on market value: An Empirical Study from Iranian Pharmaceutical Companies. Iranian Journal of
Pharmaceutical Research, 11(1), 195–207.
Chairunissa, C., & Dewi, R. R. (2015). PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA
KEUANGAN PERUSAHAAN DAN PENILAIAN PASAR DENGANCORPORATE GOVERNANCE
SEBAGAI VARIABEL MODERASI. Jurnal Akuntansi Trisakti, 2(2), 87–102.
Deep, R., & PAL, N. K. (2014). Intellectual capital and its association with financial performance: A study of
Indian textile sector.
Fahmi, I. (2014). Pengantar Perbankan Teori dan Aplikasi. Bandung: Alfabeta.
Fahmi, I. (2017). Analisis Laporan Keuangan Cetakan Keenam. Bandung: Alfabeta.
Fitriyani, A. (2018). Pengaruh Modal Intelektual Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai
Variabel Intervening. Riset Akuntansi.
Gani, A. S. M., Machmud, R., & Selvi, S. (2020). The Influence of Intellectual Capital on the Profitability of
Banking Companies. Jambura Science of Management, 2(1), 1–7.
Hadiwijaya, R. C., & Rohman, A. (2013). Pengaruh intellectual capital terhadap nilai perusahaan dengan kinerja
keuangan sebagai variabel intervening. Diponegoro Journal of Accounting, 446–452.
Hermanus, I. G. (2013). Pengaruh Intellectual Capital terhadap Profitabilitas, Produktivitas, dan Penilaian Pasar
Perusahaan Sektor Perbankan.
Hermawan, S. (2013). Makna Intellectual Capital Perspektif The Role Theory dan The Resource Based Theory.
EKUITAS (Jurnal Ekonomi Dan Keuangan), 17(2), 256–275.
Hermawan, S., & Maf’ulah, A. N. (2014). Pengaruh Kinerja Keuangan Terhadap Nilai Perusahaan Dengan
Pengungkapan Csr Sebagai Variabel Pemoderasi. Jurnal Dinamika Akuntansi.
Isvara, I. K. Y. M., Wahyuni, M. A., & Julianto, I. P. (2018). Pengaruh Intellectual Capital Terhadap Nilai
Perusahaan Dengan Kinerja Keuangan sebagai Variabel Intervening (Studi Perusahaan Manufaktur Pada
Bursa Efek Indonesia Periode 2013-2016). JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 8(2).
Kristanto, D. A. (2012). Pengaruh Modal Intelektual terhadap Harga Saham melalui ROA pada Perusahaan
Perbankan yang Go Public di BEI Periode 2008-2010. SKRIPSI Jurusan Akutansi-Fakultas Ekonomi UM.
Nurhayati, S. (2017). Analisa Pengaruh Intellectual Capital Terhadap Kinerja Pasar Dan Kinerja Keuangan Pada
Perusahaan LQ45 Yang Terdaftar Di Bursa Efek Indonesia Periode Tahun 2010-2013. Jurnal ASET
(Akuntansi Riset), 9(1), 133–172.
Nuryaman, N. (2015). The influence of intellectual capital on the firm’s value with the financial performance as
intervening variable. Procedia–Social and Behavioral Sciences, 211, 292–298.

Olivia, S., & Hatane, S. E. (2015). Pengaruh Value Added Intellectual Capital Terhadap Kinerja Keuangan Dan
Nilai Pasar Perusahaan Khususnya Di Industri Perdagangan Jasa Yang Terdaftar Di Bursa Efek Indonesia
Tahun 2008–2013. Business Accounting Review, 3(1), 45–54.
Ozkan, N. (2016). Intellectual Capital and Financial Performance: A Study of the Turkish Banking Sector Nasif
Ozkan, Sinan Cakan b, Murad Kayacan c.
Ranani, H. S., & Bijani, Z. (2014). The impact of intellectual capital on the financial performance of listed
companies in tehran stock exchange. International Journal of Academic Research in Accounting, Finance
and Management Sciences, 4(1), 119–127.
Rinnaya, I. Y., Andini, R., & Oemar, A. (2016). pengaruh profitabilitas, rasio aktivitas, keputusan pendanaan
keputusan investasi terhadap nilai perusahaan (studi empiris pada perusahaan manufaktur yang terdaftar di
BEI tahun 2010-2014). Journal Of Accounting, 2(2).
Simarmata, R., & Subowo, S. (2016). Pengaruh Intellectual Capital Terhadap Kinerja Keuangan dan Nilai
Perusahaan Perbankan Indonesia. Accounting Analysis Journal, 5(1).
Sirojudin, G. A., & Nazaruddin, I. (2014). Pengaruh modal intelektual dan pengungkapannya terhadap nilai dan
kinerja perusahaan. Journal of Accounting and Investment, 15(2), 77–89.
Soedaryono, B., & Prihartini, A. (2012). Effect Intellectual Capital (Value Added Intellectual Capital) to Market
Value and Financial Performance of Banking Sector Companies Listed in Indonesia Stock Exchange.
SW, I. F., & Firmansyah, R. (2012). Pengaruh intellectual capital terhadap kinerja keuangan perusahaan (Studi
empiris perusahaan LQ 45). Jurnal Dinamika Akuntansi, 4(1).
Utami, R. B., & Prasetiono, P. (2016). Analisis Pengaruh TATO, WCTO, Dan DER Terhadap Nilai Perusahaan
Dengan ROA Sebagai Variabel Intervening (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa
Efek Indonesia Periode Tahun 2009-2013). Diponegoro Journal Of Management, 5(2), 105–118.
Wany, E. (2010). Pengaruh Intellectual Capital Terhadap Produktivitas, Profitabilitas, Nilai Pasar Pada
Perusahaan Manufaktur Di Bursa Efek Indonesia. AKRUAL: Jurnal Akuntansi.
https://doi.org/10.26740/jaj.v2n1.p20-42
Wijaya, N. (2012). Pengaruh Intellectual Capital terhadap kinerja keuangan dan nilai pasar perusahaan
perbankan dengan metode Value Added Intellectual Coefficient. Jurnal Bisnis Dan Akuntansi, 14(3), 157–
180.
Wijayani, D. R. (2017). Pengaruh intellectual capital terhadap kinerja keuangan perusahaan publik di indonesia
(Studi Empiris Pada Perusahaan Manufaktur Di BEI 2012-2014). Jurnal Riset Akuntansi Dan Bisnis
Airlangga, 2(1).

Antecedents of Saving Interest at Bank Jatim Indonesia:

Bank Atmosphere, Location, and Work Professionalism
Yuan Erma Septi Apsari Santoso1, Joko Suyono2, Damarsari Ratnasahara Elisabeth3, Abdul Thalib
Bin Bonn4
Narotama University, Department of Management and Business, Surabaya, Indonesia 601171,2
Sekolah Tingggi Ilmu Ekonomi Mahardhika, Surabaya, Indonesia3
University Tun Hussein Onn Malaysia4
Email : yuanerma@gmail.com1, joko.suyono@narotama.ac.id2
damarsariarizona@gmail.com3, talib@uthm.edu.my4
ABSTRACT
Purpose: The purpose of this study is to analyze the influence of bank atmosphere, location and work
professionalism on interest in saving at bank.
Design/methodology/approach: The data analysis technique used was multiple regression analysis.
Findings: The research results are: 1) There is an influence of the bank atmosphere on the interest in saving at
Bank Jatim Cash Office of Haji Hospital Surabaya, 2) There is an influence of location on the interest in saving
at Bank Jatim Cash Office of Haji Hospital Surabaya, 3) There is an influence of work professionalism on the
interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya, 5) variable location has a dominant
influence on the interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya.
Originality/value: This Paper is Original
Keyword: Customer Purchasing Decision, Location, Price, Product
Received: November 2nd, 2020

Revised: January 6th, 2021
I. INTRODUCTION
Bank Jatim is one of the Regional-Owned Enterprises (BUMD) in East Java Province that has developed
very rapidly. The existence of Bank Jatim is no stranger among the people of East Java and has become its own
pride. Bank Jatim has been working hard to be able to advance and be able to compete in serving the community
in the field of financial services by offering a wide range of products and services to customers. One of the
products offered is savings, where the bank offers many conveniences and security for customers in terms of
saving money. In addition, interest rates and various attractive prizes that can be obtained by customers when
opening a savings account.
Banking product services such as savings are classified as the most popular savings and are widely known
to the public compared to deposits or demand deposits. In addition to the relatively easy requirements such as
simply filling in the application provided and attaching a personal identity such as a ID Card, driving licence,
passport, or other identity card owned. In addition, the initial funds that must be deposited with the bank are also
relatively small.
Interest is something that is personally related to attitude, individuals who are interested in an object will
have the strength or drive to do a series of behaviors to approach the object (Meldarianda, 2010). One promotion
Antecedents of Saving Interest at Bank Jatim Indonesia: Page │ 291
Yuan Erma Septi Apsari Santoso, Joko Suyono, Damarsari Ratnasahara Elisabeth, Abdul Thalib Bin Bonn
or marketing strategy that can be done by the company is to create a safe and comfortable atmosphere so that it
can give an attractive impression to consumers so that it creates buying interest which can ultimately affect
consumers to make purchases (Kotler & Keller, 2007). Factors that influence saving interest include bank
atmosphere, it is a physical characteristic that is very important for every business and can affect the feelings or
mood of consumers who visit the bank so that it influences the interest to save money in the bank, because bank
atmosphere acts as the creator of a comfortable atmosphere in accordance with the wishes of consumers and
make consumers want to linger in the character and indirectly stimulate consumers to make purchases (Ayu
Purwaningsih, 2011). The atmosphere of the bank is a description of the overall atmosphere of a bank created by
physical elements (exterior, interior, layout, display) and psychological elements (comfort, service, cleanliness,
availability of goods, creativity, promotion, technology).Kotler & Keller (2014) said that the bank atmosphere is
an overview of the overall atmosphere of a bank created by physical elements (exterior, interior, layout, display)
and psychological elements (comfort, service, cleanliness, availability of goods, creativity, promotion,
technology). The same thing stated by Purnama (2011) said in his research that the results of the analysis
showed that there was an influence on the atmosphere of interest. Location is a place where a business or
business activity is carried out. The location of banks is a network (net-working) where bank products and
services are provided and can be utilized by customers. Including the location of the Bank here are office
locations starting from the center, branch offices, branch offices and cash offices (Sofhian, 2016). Location
factors are things that need to be considered. A strategic place, or close to consumers, will make it easier for
consumers to come to places where they can find services that consumers need and vice versa (Yazid, 2001).
The same thing stated by Setyawan & Japarianto (2014) said in his research that the results of the analysis
showed that there was an influence of location on interest. (Ardhana, 2012) explains that professionalism is the
responsibility of individuals to behave better than just obeying existing laws and regulations. According to
TUEGEH (2018) professionalism is a matter of attitude that can be considered as representing professionalism,
that is, high skills, interest-oriented public services, strict supervision of workplace behavior and a reward
system that is a symbol of work performance.
The same thing stated by (Resnik, 2015) said in his research that the results of the test analysis showed that
there was an influence of work professionalism on interest.
Based on the statments above, the formulation of the problem is made as follows:
1. Does the bank atmosphere influence the interest in saving at Bank Jatim Cash Office of Haji Hospital
Surabaya?
2. Does the location influence the interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya?
3. Does work professionalism influence the interest in saving at Bank Jatim Cash Office of Haji Hospital
Surabaya?
4. Do the atmosphere of the bank, location and work professionalism influence the interest in saving at Bank
Jatim Cash Office of Haji Hospital Surabaya?
5. Among the variables of the bank atmosphere, location and work professionalism, which variable has the
dominant influence on interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya?
A.Bank
Banks are business entities that collect funds from the public in the form of deposits and channel them to
the public in order to improve the lives of many people. According to OECD (2017) , the Bank is a business
entity whose activities collect funds from the community then distribute and collect it to the public. Here are
some quotes about the definition of the bank (Latumaerissa, 2013):
1. Bank is a business entity whose main activity is to receive deposits from the public or other parties, then re-
allocate them to obtain profits and provide services in payment traffic.
2. Bank is an industry engaged in the field of trust that connects debtors with credit creditors.
Santoso (2012) suggest that the basis of bank classification is Law Number 10 of 1998 concerning changes
to Law Number 7 of 1992 concerning Banking, the classification of banks not only in the type of business
activities but also in the form of legal entities, establishment and ownership and target market.
According to Julia Kagan (2020)the main function of commercial banks is the provision of credit to
trustworthy borrowers. While in its activities commercial banks have several functions besides the main
function as intermediation. According to Bossone (2000) these functions include:
1. Agent of Trust
This function shows that bank activities as intermediary institutions are based on the principle of trust,
meaning that collection activities carried out by commercial banks must be based on community trust for the
credibility and existence of each bank, because without trust the community will not save the funds in the bank.

2. Agent of Development
This function is related to the responsibility of the bank in promoting the economic transactions carried out
by each economic actor, both in production, distribution and consumption activities which have become a
separate entity.
3. Agent of Service
This function is carried out by banks in providing financial services and non-financial services as
intermediary activities.
The main activities or principal of banks as financial institutions that collect funds from the public and
channel funds are not different from each other, provide services in payment traffic, and other services based on
trust. In addition to the above objectives, commercial banks also have the objective of providing facilities and
facilities to facilitate customer transactions, provide security and try for both the bank and other parties to be
mutually beneficial. Bank will also increase its credibility in the eyes of its customers
B.Bank Atmosphere
The atmosphere of the bank is the activity of designing a bank environment that is attractive and gives an
impression to customers. In general, the bank atmosphere is a description of the overall atmosphere of a bank
created by physical elements (exterior, interior, layout, display) and psychological elements (comfort, service,
cleanliness, availability of goods, creativity, promotion, technology). The following is the definition of bank
atmosphere according to some experts. According to (Kotler & Keller, 2014)said that the bank atmosphere is an
overview of the overall atmosphere of a bank created by physical elements (exterior, interior, layout, display)
and psychological elements (comfort, service, cleanliness, availability of goods, creativity, promotion,
technology). According to Fajrin (2017) the atmosphere is a physical characteristic that is very important for
every retail business, this serves as the creation of a comfortable atmosphere in accordance with the wishes of
consumers and make consumers want to linger indoors and indirectly stimulate consumers to make purchases .
Whereas according to Adji & Subagio (2013), said that the definition of atmosphere is one of the marketing mix
in outlets that plays an important role in attracting buyers, makes them comfortable in choosing groceries, and
reminds them what products they want to have for their needs. personal, or for household purposes. From the
definition above, the writer can conclude that the bank atmosphere is a very physical characteristic and is very
important for every business. It plays a role for every creation of a comfortable atmosphere for consumers and
makes consumers want to linger in the bank and indirectly stimulate consumers to make purchases. In addition,
the atmosphere of the bank also has elements, where these elements can greatly influence a place or bank.
According to (Berman & Evans, 1998), the elements of the atmosphere include:
1. Exterior
These exterior components have a very important role to attract the attention of people who pass by and
encourage them to enter the bank. The outside design of the bank must be clear, easily recognizable and easy to
remember. Design outside the bank must clearly identify the name and general description of the bank and
provide guidance on the services available therein. In general, what is included in the store front design is
signage outside the bank and architecture from the outside of the bank itself. In some cases, store fronts also
include display windows in front of the bank. Display windows must be able to attract the attention of people
passing in front of the bank and encourage them to enter the bank. Therefore the display window must be made
as attractive as possible and replaced regularly and must reflect the items offered in the bank.
2. Inside (General Interior)
When consumers are in a store, many elements influence their perceptions. Bright lights with vibrant
colors can contribute to a different atmosphere than lighting with dim lights. Sounds and scents can affect
consumers' feelings. Bank equipment can be planned based on usability and aesthetics. A good display is one
that can attract the attention of visitors and help the brand to easily observe, check product selection and finally
conduct banking transactions.
3. Layout
Layout planning includes structuring space placement to fill the available floor area, classifying the
products to be offered, managing traffic in the bank, setting the width of the space needed, mapping the bank
space and compiling the products offered individually. A good layout will be able to invite consumers to be
more comfortable and see firsthand the products in the bank, so that customers can choose the desired product.
4. Interior Point of Purchase (POP) Display
Interior design can be divided into two parts, namely finishing used for all surfaces (both for floors, walls
and ceilings) and architectural forms within the store itself. There are so many small things that must be needed
to create an image for a bank and it is necessary to choose material materials that support the creation of that
image. For example, choosing a plain, unpainted floor will create an ordinary and cheap impression, the use of
carpets will create a comfortable impression at home and encourage shopping more leisurely, or the use of
marble which will create a luxurious and expensive impression. For walls also have many choices ranging from

painting the walls, lining the walls with wallpaper or using a variety of paneling options or wall hangings.
Likewise for the ceiling, where there are various kinds of choices, each of which can give a different impression.
For example, the use of drywall ceilings will create an exclusive impression because the process is expensive,
suspended ceilings are widely used and create a unique impression.
C.Location
Each bank has a strategy for the placement of each of its cash offices, one of which is the strategic
location, excellent service that is realized, one of which is the opening of bank services. Location is a network
where bank products and services are provided and can be utilized by customers (Wahjono, 2010). Location is a
place where a business or business activity is carried out. The location of banks is a network where bank
products and services are provided and can be utilized by customers. Including the location of the Bank here is
the location of offices starting from the center, branch offices, sub-branch offices and cash offices (Sofhian,
2016).
According to Kotler & Keller (2009) location is distribution channels in the form of a group of
organizations that are interdependent in their involvement in the process that allows a product or service
available to users or consumption by consumers or industrial users. This place includes marketing channels,
market coverage, grouping, location, inventory and transportation. Location is a place where a business or
business activity is carried out. The location of banks is a network (net-working) where bank products and
services are provided and can be utilized by customers. Including the location of the Bank here is the location of
offices starting from the center, branch offices, sub-branch offices and cash offices (Sofhian, 2016).
Lupiyoadi (2013) location means dealing with where the company must be headquartered and carry out
operations or activities. In this case there are three types of interactions that affect location:
1. Consumers come to service providers (companies), if the situation is like this then the location becomes
very important. The company should choose a place that is close to consumers so that it is easy to reach and
must be strategic.
2. Service providers come to consumers, in this case, location becomes not too important, but what must be
considered is the delivery of services must be of high quality.
3. Service providers and consumers do not meet in person, meaning service providers and consumers interact
through certain facilities such as telephones, computers or letters. In this case the location becomes very
insignificant as long as communication between the two parties can be carried out.
Wahjono (2010) explains that the location determination is essentially to get closer to the customer, both
the source of funds customers and credit customers, but there are several objectives in determining the location
of the bank, include:
1. Facilitate customer service by approaching and facilitating its achievement (accessibility). Included in the
understanding of accessibility is not only the proximity of distance, but the ease of reaching it from public
transport, located on a road that is easily accessible from any direction, located in the middle of the city, and
many city transportation passes throughout the working hours of the bank office. Including convenience in
terms of parking the vehicle.
2. Ease of installation and connection with technology networks.
3. Location allows banks to organize offices and layout freely so as to support the availability of parking,
service space, waiting rooms and other service facilities so as to be able to make customers comfortable and
flexible in utilizing bank products and services.
4. The layout in the office allows a queuing system that is effective but at the same time efficient. Support for
air conditioning, spaciousness of the queue, entertainment support in the queue (audio-video) are things that
need attention.
5. Facilitate the work force of the bank office in achieving it. This is expected to facilitate employees in
serving customers well without being disturbed by the delay in entering the office on the grounds that the
streets are crowded.
According to Yazid (2001) the criteria should be considered in choosing a location are:
1. Population characteristics and size
2. Availability of labor
3. Proximity to the source of production
4. Promotion
5. Economic base
6. Conformity with facilities
7. Competitive situation
8. Convenience of store location.

(Hurriyati, 2015) suggests that the choice of place or location requires careful consideration of several
factors including:
1. Aksees, for example, locations that are easily accessible by means of transportation.
2. Visibility, for example, a location that can be clearly seen from the road.
3. Traffic (traffic), where there are two things that need to be considered, namely (1) many people who are
lalulalang can provide great opportunities for impulse buying, (2) traffic congestion and congestion can also
be an obstacle.
4. Large and safe parking lot.
5. Expansion, there is enough space to expand the business in the future.
6. Environment, which is the surrounding area that supports the services offered.
7. Competition, namely the location of competitors.
8. Government regulations.
Some criteria that can be used to assess a strategic location are as follows Adiwijaya (2010):
1. Location of the location that is located near (near) the center of trade activities and offices.
2. Location of this location is strategic because generally in the trade and office centers there is very high
traffic. Traffic density automatically creates markets or leads consumers to pass through retail business
locations and increases the likelihood of them stopping and shopping, or at least knowing the existence of
the retail business.
3. The proximity of the location to the target market
4. A location is said to be strategic if it is easily accessible to target markets or consumers.
5. It was clearly visible from the side of the road
6. A good location means making it easier for consumers to see, find, and find this retail business. In other
words, a good location has high visibility.
7. Access to good location
8. Access greatly affects the strategic value of a location. Criteria for good access, for example, paved roads
are good, smooth, not bumpy, and not perforated, there are regular and not chaotic road route patterns, and
are free from the threat of flooding during the rainy season.
According to Fajrin (2017), a location is called strategic if it is located in the center of the city, population
density, ease of achieving it regarding ease of public transportation, smooth traffic and its direction does not
confuse consumers. Strategic location makes consumers easier to reach and also guaranteed security. So that,
there is a relationship between the strategic location and the attractiveness of consumers to make a product
purchase.
The flexibility of a location is a measure of the extent to which a service business can react to a changing
economic situation. Because the choice of location decision is related to a long-term commitment to aspects of
intensive capital, a service provider must really consider and select a location that is responsive to future
economic, demographic, cultural and competitive changes. Competitive positioning is the methods used so that
a business can develop its relative position compared to competitors. Kasmir (2006), the advantages of choosing
the right location are:
1. Services provided to consumers can be more satisfying.
2. Ease in obtaining the desired workforce.
3. Ease in obtaining continuous raw materials or auxiliary materials.
4. Ease to expand business location.
5. Having higher economic values and prices in the future
D.Work Professionalism
In working someone is recommended to work professionally and skillfully in order to produce good
quality work so that they can provide the best service to the community. In addition to location factors, work
professionalism also influences saving interest, with the professionalism of work from service providers as one
of the important factors in influencing customer satisfaction, not only in the form of good competency and
technical expertise but also attitude oriented towards providing good service will give a reciprocal influence to
customers as service recipients. Satisfied customers will also give a good assessment to the organization and
through the feedback the organization will be able to improve and improve the quality of its services to
customers, so that customers have an interest in saving at the bank. Oerip & Tatag (2012) defined
professionalism as the behavior, ways, and qualities that characterize a profession. A person is said to be
professional if his job has a characteristic technical or ethical standard of a profession. Ardhana (2012) defines
professionalism as an individual's responsibility to behave better than just complying with existing community
laws and regulations. Professionalism reflects a person's attitude towards his profession and there is
accountability for his profession. David H. Maister defines professionalism as a matter of attitude, not a set of
competencies. A true professional is a caring technician (Maister, 1998).

Professional characteristics according to Santoso (2012) include:

1. Have high skills in one field, as well as proficiency in using certain equipment needed in the
implementation of tasks related to the field.
2. Having knowledge and knowledge and intelligence in analyzing a problem and being sensitive in reading
situations, fast and precise and careful in taking the best decisions on the basis of sensitivity.
3. Having a future-oriented attitude, so that you have the ability to anticipate the development of the
environment that lies ahead of him.
4. Having an independent attitude based on the belief in personal abilities and being open to listening and
respecting other people's opinions, but careful in choosing the best for him and his personal development.
Hamalik (2004) develop understanding of the professionalism of employees or labor. He argued that the
workforce contained essentially the following aspects:
1. Potential Aspects, that every workforce has dynamic potential, which continues to develop and can be
developed. Potentials include: the power of remembering, the power of thinking, the power of will, the
power of feelings, talents, interests, motivations, and other potentials.
2. Professionalism and vocational aspects, that every workforce has the ability and work skills or honesty in a
particular field, with those abilities and skills, he can devote himself in certain jobs and create good results
optimally.
3. Functional Aspect, that every workforce carries out his work appropriately, meaning that he works
according to his duties and functions in the appropriate field as well, for example a workforce that has skills
in the electronic field.
4. Operational Aspects, that every workforce can utilize the abilities and skills in the processes and procedures
for implementing work activities that are being practiced.
5. Personal aspects, that every work must have the personality traits that support its work, for example: an
independent attitude and a strong, responsible, diligent and diligent attitude.
6. Productivity aspects, that every workforce must have an achievement motive, strive to succeed and provide
results from their work, both quantity and quality.
According to Maskun (1997), a professionalism is a form or field of activity that can provide services with
high specialization and intellectuality. The form or field of this activity in carrying out its performance carries
out three basic principles, include:
1. There is a basic knowledge that can be studied carefully and there is an attitude in someone who masters
something that can provide services to the community.
2. The success achieved by a profession, the standard measure is how we complete fast service to the
community and not what one can achieve for his personal interests.
3. A system of supervision of the efforts and practical activities of professionals is developed in applying their
knowledge and educational outcomes through the establishment of associations and the creation of various
codes of ethics.
Hall. R in Yendrawati, (2006). Develop the concept of professionalism from the individual level covering
five dimensions, namely:
1. Dedication, which is reflected in the professional dedication through the use of knowledge and skills
possessed. This attitude is an expression of total surrender to work.
2. Social obligation, namely the view of the importance of the profession and the benefits obtained either by
the community or by professionals due to the existence of such work.
3. Autonomy demands, namely a view that a professional must be able to make his own decisions without any
pressure from the other party.
4. Confidence in professional rules (belief in self-regulation), which is a belief that those authorized to judge
professional work are fellow professions, and not outsiders who do not have competence in their fields of
science and work.
5. Professional community affiliation, means using professional ties as a reference, including formal
organizations and groups of informal colleagues as the main source of work ideas.
E.Interest in saving
Interest is the tendency of a high heart towards something, passion, desire. So there must be something that
is caused, both from inside and outside to like something. According to Iskandarwassid and Dadang
Iskandarwassid & Suhendar (2016), interest is a combination of desire and willingness that can develop. Interest
is a desire that arises from oneself without any coercion from others to achieve certain goals. Interest is the
feeling of being happy and interested in an object or activity without anyone telling or usually there is a
tendency to look for the object that is loved. Interest is better known as the decision to use or purchase certain
services or products. The purchase decision is a decision-making process for purchases that includes
determining what will be purchased or not making a purchase and the decision is obtained from previous

activities, namely the needs and funds owned (Jha, 2014). Interest is a psychological aspect and not just
coloring a person's behavior to do activities that cause someone to feel attracted to something (Ibrahim, 2016).
In addition, interest has a broad meaning, because with interest will be able to change something that is not clear
becomes clearer. In the world of banking, the largest source of funds comes from customers who conduct
transactions, in this case customers who make savings transactions, so that financial institutions have strict rules
for financial management sourced from the community or customers.
Interest is one of the important factors in influencing customer preferences in saving. There are three
limitations of interest namely first, an attitude that can bind one's attention towards certain objects selectively.
Second, a feeling that the activities and interests of certain objects are very valuable to individuals. Third, as part
of motivation or readiness that brings behavior in a particular direction or goal (Iskandarwassid & Suhendar,
2016). Interest is a fixed tendency to pay attention to several activities. Thus, interest can be seen from aspects
of attention, pleasure, hobbies, and satisfaction as stimulations for one's actions and actions.
The factors that influence interest include Shaleh & Wahab (2004):
1. Encouragement from within individuals.
For example, the urge to eat. The drive to eat will arouse interest in working or earning income, interest in
food production and others.
2. Social Motives.
Sosal motives can be a factor that arouses interest in doing a certain activity.
3. Emotional Factor.
Interest has a close relationship with emotions. Thus, it can be said that interest is a strong impetus for
someone to do everything in realizing the achievement of goals and ideals that become his desire.
Badudu & Zain (1994) define saving as an activity of saving money in savings at the post office or in the
bank, saving money in the bank with the aim of meeting future needs. In principle, buying behavior or interest
in saving customers are often initiated and influenced by the number of stimuli from outside themselves, both in
the form of marketing stimuli and from the environment. The stimulus is then processed in self according to his
personal characteristics, before finally making a saving decision. The personal characteristics of consumers used
to process these stimuli are very complex and one of them is the motivation to save . Peltola, Rautaoja, Alku, &
Peltola (2017)describes several things that can influence the interest in saving, include:
1. Culture; habits that are usually implanted by the surrounding environment, such as teachers who direct their
students to diligently save.
2. Family; parents who diligently save indirectly will be an example for their children.
3. Attitudes and Trust; someone will feel safer in preparing for his future if he has careful planning, including
in financial terms.
4. Social motives; the need for someone to be more advanced so that they can be accepted by their
environment can be reached through education, physical appearance, all of which require costs that will be
more easily met if he saves.
5. Motivation; plans for future needs can encourage someone to save.
Shiozawa (2014) argue that interest in saving basically involves two things, namely:
1. The problem of the ability to save is determined by the difference between income and expenditure made. If
income is greater than expenditure, it can be said that it has the ability to save.
2. Problem of willingness to save.
3. Each individual generally has a tendency to use all of his income to meet his needs. Because of this
tendency, the ability to save is not automatically followed by a willingness to save.
Shaleh & Wahab (2004) expalin factors affecting interests are:
1. Product Factor
Attributes that exist in a product are important to attract someone to use it.
2. Trust Factor
A person's trust in a product has its own role in shaping the behavior of that person, namely by choosing a
product that is good and also reliable.
3. Need Factor
Needs are a person's nature so that it is used as a motivation to behave, that is by utilizing existing facilities.
4. Revenue Sharing Factor
Definitely profit sharing means distribution of some parts of profits to employees of a company.
5. Service Facility Factors
We already know that in providing services, a bank employee should show good ethics, so that customer
and bank employee can respect each other.
6. Promotion Factor
Promotion is an activity designated to influence consumers so that they can get to know the products
offered so that consumers are expected to be happy to use them.

While the factors forming customer interest according to Wardani, Paramita, & Minarsih (2016) are as
follows:
1. Cognition (Introduction Symptoms)
2. The activity or process of acquiring knowledge (including awareness, feelings, etc.) or an effort to
recognize something through one's own experience. The recognition symptoms in the outline are divided
into two, namely through the senses and through reason
3. Willingness
Is one of the functions of human psychological life, can be interpreted as psychological activity that
contains active efforts and is associated with the implementation of a goal.
4. Emotion
The tendency to have distinctive feelings when dealing with certain objects in their environment.
F.Hypothesis
The model of this research is as follows:
Bank
Armosphere (X 1)
Location Interest in Saving

(X 2)
(Y)
Work
Professionalism (X3)
Figure 1: The research model and hypotheses
Notes :
: parsial relation
: simultaneus relation
From the model above, the research hypothesis is arranged as follows:

1. Atmosphere of the bank influences the interest in saving at the Bank Jatim Cash Office of Haji Hospital
Surabaya.
2. Location influences the interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya.
3. Work professionalism affects the interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya.
4. Atmosphere of the bank, location and work professionalism influence the interest in saving at the Bank
Jatim Cash Office of Haji Hospital Surabaya.
5. Location has a dominant influence on interest in saving at Bank Jatim Cash Office of Haji Hospital
Surabaya.
II.METHODS
A.Population and Sample

Definition of the population according to Marzuki (2015) is the whole material or element that is
investigated. Thus the population is not just the amount that is on the subject or object studied, but includes all
the characteristics possessed. The population in this study were all customers totaling 1,908 customers at Bank
Jatim Cash Office of Haji Hospital Surabaya. According to Sugiyono (2016) samples are part of the number and
characteristics possessed by the population. Because the population is more than 100 people, then the sampling
in this study uses proportional random sampling. Proportional random sampling is a sampling technique if the
population has members / elements that are not homogeneous and proportionately structured (Sugiyono, 2016).

While the sampling technique uses a formula from Taro Yamane or Slovin to be 95. Data collection techniques
use questionnaires with five choice options using Likert scale.
B.Data Analysis Techniques

In order to examine the relationship between independent variables and dependent variables and to
analyze research hypothesis proposed, the authors use multiple linear regression analysis with the help of SPSS
for Windows.
III. RESULT AND DISCUSSION

A.Validity test
Table 1 : Validity Test of Bank Atmosphere

1 0.552 0.361 Valid
2 0.539 0.361 Valid
3 0.534 0.361 Valid
4 0.643 0.361 Valid
5 0.592 0.361 Valid
6 0.660 0.361 Valid
7 0.684 0.361 Valid
8 0.670 0.361 Valid
9 0.747 0.361 Valid
10 0.683 0.361 Valid
Table 1 above shows that all items in the bank atmosphere variable (X 1) are valid because having a
calculated r value greater than r table is r > 0.361.
Table 2 : Validity Test of Location

1 0.816 0.361 Valid
2 0.815 0.361 Valid
3 0.779 0.361 Valid
4 0.821 0.361 Valid
5 0.841 0.361 Valid
6 0.679 0.361 Valid
7 0.288 0.361 Valid
8 0.660 0.361 Valid
9 0.647 0.361 Valid
10 0.482 0.361 Valid
Table 2 above shows that all items in location variable (X 2) are valid because having a calculated r value
greater than r table is r > 0.361.

Table 3 : Validity Test of Work Professionalism

1 0.846 0.361 Valid
2 0.923 0.361 Valid
3 0.869 0.361 Valid
4 0.853 0.361 Valid
5 0.869 0.361 Valid
6 0.625 0.361 Valid
7 0.778 0.361 Valid
8 0.606 0.361 Valid
9 0.643 0.361 Valid
10 0.778 0.361 Valid
Table 3 above shows that all items in work professionalism variable (X 3) are valid because having a
calculated r value greater than r table is r > 0.361.
Table 4 : Validity Test of Interest in Saving

1 0.909 0.361 Valid
2 0.781 0.361 Valid
3 0.530 0.361 Valid
4 0.734 0.361 Valid
5 0.700 0.361 Valid
6 0.777 0.361 Valid
7 0.793 0.361 Valid
8 0.872 0.361 Valid
9 0.739 0.361 Valid
10 0.730 0.361 Valid
Table 4 above shows that all items in Interest in Saving variable (Y) are valid because having a calculated r
B.Reliability Test
Table 5 : Reliability Test

Cronbach’s Standard of
Variabel Remark
Alpha Reliability
Bank Atmosphere (X1) 0,774 0,60 Reliable
Location (X2) 0,805 0,60 Reliable
Work Professionalism (X3) 0,833 0,60 Reliable
Interest in Saving (Y) 0,824 0,60 Reliable
Table 5 above shows that the results of the cronbach's alpha (α) value variables X1, X2, X3 and Y > 0.60
so that the questionnaire of the four variables is reliable as a variable measuring instrument.
To determine the relationship between the observed variables, the interpretation of the correlation
coefficient is used as follows:

Tabel 6 Multiple Regression Analysis

Coefficientsa
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 18.758 4.794 3.913 .000
Bank Atmosphere .267 .122 .251 2.189 .031
Location .568 .090 .585 6.328 .000
Work Professionalism .281 .124 .272 2.259 .026
a. Dependent Variable: interest in saving
a. The influence of bank atmosphere on interest in saving

Meanwhile, for t table with a significance level of 0.05, the value of t table is 1.985. Comparison between the
two produces: t count > t table (2.189 > 1.985). Significance value t for bank atmosphere variable is 0.031 and
the value is smaller than the probability of 0.05 (0.031 < 0.05). So that this test shows that Ha is accepted and
Ho is rejected. This means that there is an influence of bank atmosphere on interest in saving at Bank Jatim
Cash Office of Haji Hospital Surabaya.
b.The influence of location on interest in saving

two produces: t count > t table (6.328 > 1.985). The significance value of t for location variable is 0,000 and the
value is smaller than the probability of 0.05 (0,000 < 0,05). So that this test shows that Ha is accepted and Ho is
rejected. This means that there is an influence of location on interest in saving at Bank Jatim Cash Office of
Haji Hospital Surabaya.
c.The influence of work professionalism on interest in saving

two produces: t count > t table (2.259 > 1.985). The significance value of t for work professionalism variable is
0.026 and the value is smaller than the probability of 0.05 (0.026 < 0.05). So that this test shows that Ha is
accepted and Ho is rejected. This means that there is an influence of work professionalism on interest in saving
at Bank Jatim Cash Office of Haji Hospital Surabaya.
Tabel 7 : ANOVAa

1 Regression 849.744 3 283.248 14.530 .000b
Residual 1773.982 91 19.494
Total
2623.726 94
d.The influence of bank atmosphere, location, and work professionalism on interest in saving
From table 7 above with the results of data analysis using SPSS calculations obtained F count of 14.530.
This shows F count (14.530) > F table (2.70) and significance level of 0,000 < 0.05. The test results show that
the significance value of the simultaneous test (F test) is obtained by a value of 0,000, thus the significance
value obtained is smaller than the probability α specified (0,000 < 0,05). So Ho is rejected and Ha is accepted.
Then conclusions can be drawn, there is influence of bank atmosphere, location, and work professionalism on
interest on saving at Bank Jatim Cash Office of Haji Hospital Surabaya.
e.Among the variables of bank atmosphere, location, and work professionalism, which variable has the
dominant influence on interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya
Based on the output in table 1 above between bank atmosphere, location, and work professionalism.
Variable having the dominant influence on interest in saving at Bank Jatim Cash Office of Haji Hospital
Surabaya is location variable. It is shown in the acquisition of 6.328 t count which is greater than t count of

other independent variables. Thus location variable has a dominant influence on the interest in saving at Bank
Jatim Cash Office of Haji Hospital Surabaya.
IV. CONCLUSION
Based on the results of the analysis and discussion previously stated, conclusions can be taken as follows:
1. There is the influence of bank atmosphere on interest in saving at Bank Jatim Cash Office of Haji Hospital
Significance value t for service quality variable is 0.031 and the value is smaller than the probability of 0.05
(0.031 < 0.05). So that this test shows that Ha is accepted and Ho is rejected
2. There is the influence of location on on interest in saving at Bank Jatim Cash Office of Haji Hospital
The significance value of t for the location variable is 0,000 and the value is smaller than the probability of
0.05 (0,000 < 0,05). So that this test shows that Ha is accepted and Ho is rejected.
3. There is an effect of work professionalism on interest in saving at Bank Jatim Cash Office Haji Hospital
The significance value of t for the promotion variable is 0.026 and the value is smaller than the probability
of 0.05 (0.026 < 0.05). So that this test shows that Ha is accepted and Ho is rejected.
4. There is the influence of bank atmosphere, location, and work professionalism on interest in saving at the
Bank Jatim Cash Office of Haji Hospital Surabaya. It can be proved from the results of the calculation of
SPSS obtained F count of 14.530. This shows F count (14.530) > F table (2.70) and significance level of
0,000 < 0.05. The test results show that the significance value of the simultaneous test (F test) is obtained
by a value of 0,000, thus the significance value obtained is smaller than the probability α specified (0,000 <
0,05). So Ho is rejected and Ha is accepted.
5. Among the variables of bank atmosphere, location, and work professionalism, variable having the dominant
influence on interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya is location variable
which has t cont 6.328 which is greater than t count of other independent variables. Thus location variable
has a dominant influence on interest in saving at Bank Jatim Cash Office of Haji Hospital Surabaya.
REFERENCES
Adiwijaya, M. (2010). 8 Jurus Jitu Mengelola bisnis Ritel Ala Indonesia (1st ed.). Jakarta: Elex Media
Komputindo.
Adji, P., & Subagio, H. (2013). Pengaruh Retail Mix Terhadap Keputusan Pembelian Mahasiswa Uk Petra Di
Circle K Siwalankerto Surabaya. JURNAL MANAJEMEN PEMASARAN PETRA, 1(2), 1–10.
Ardhana, Y. M. K. (2012). Menyelesaikan Website 30 Juta. In Sinta Indonesia. Jakarta: Jasakom.
Ayu Purwaningsih. (2011). Pengaruh Suasana Toko Terhadap Minat Beli Konsumen Pada Swalayan Jadi Baru
di Kebumen. SEGMEN Jurnal Manajemen Dan Bisnis, 9(1), 1–11.
https://doi.org/https://doi.org/10.37729/sjmb.v9i1.382
Badudu, J. S., & Zain, S. M. (1994). Kamus Besar Bahasa Indonesia (1st ed.). Jakarta: Pustaka Sinar Harapan.
Berman, B., & Evans, J. R. (1998). Retail Management (7th ed.). Jakarta: Prentice Hall International.
Bossone, B. (2000). What Makes Banks Special? Retrieved from
http://documents1.worldbank.org/curated/en/348281468739569626/pdf/multi-page.pdf
Fajrin, N. (2017). Pengaruh Kualitas Layanan Dan Harga Terhadap Keputusan Pembelian Ikan Bakar Cianjur
Pada Cabang Mayjend Sungkono Surabaya. Jurnal Pendidikan Tata Niaga (JPTN), 1(1), 96–101.
Hamalik, O. (2004). Psikologi Pendidikan (2nd ed.). Bandung: Sinar Baru Algensindo.
Hurriyati, R. (2015). Bauran Pemasaran dan Loyalitas Konsumen (4th ed.). Bandung: Alfabeta.
Ibrahim, C. (2016). Pengaruh Produk Bank Syariah Terhadap Minat Menabung Dengan Persepsi Masyarakat
Sebagai Variabel Moderating di Pati. Jurnal Equilibrium, 4(1), 43–61.
Iskandarwassid, & Suhendar, D. (2016). Pembelajaran Bahasa (6th ed.). Bandung: PT. Remaja Rosdakarya.
Jha, M. K. (2014). Consumer buying decisions models: A descriptive study. Retrieved from International
Journal of Innovation and Applied Studies website:
https://www.researchgate.net/publication/305727378_Consumer_buying_decisions_models_A_descriptive
_study

Julia Kagan. (2020). Commercial Bank. Retrieved from

https://www.economicsdiscussion.net/banks/commercial-bank-definition-function-credit-creation-and-
significances/607
Kasmir. (2006). Manajemen Perbankan (Revisi). Jakarta: PT. Raja Grafindo Persada.
Kotler, & Keller. (2014). Marketing Management. Jakarta: Erlangga.
Kotler, P., & Keller, K. L. (2007). Manajemen Pemasaran (12th ed.; B. Molan, Ed.). Jakarta: Indeks.
Kotler, P., & Keller, K. L. (2009). Marketing Management (13th ed.). New Jersey: Prentice-Hall Publisher.
Latumaerissa, J. R. (2013). Bank dan Lembaga Keuangan Lain (1st ed.). Jakarta: Salemba Empat.
Lupiyoadi, R. (2013). Manajemen Pemasaran Jasa: Berbasis Kompetensi (e3) (3rd ed.). Jakarta: Salemba
Empat.
Maister, H. D. (1998). True Professionalism. Jakarta: Gramedia Pustaka Utama.
Marzuki. (2015). Metodologi Riset. Yogyakarta: Fakultas Ekonomi UII.
Maskun, S. (2017). Profesionalisme Kerja Perangkat Kelurahan Dalam Pelayanan Publik Di Kelurahan
Kotamobagu Kecamatan Kotamobagu Barat. Jurnal Jurusan Ilmu Pemerintahan, 2(2), 1–12.
Meldarianda, R. (2010). Pengaruh Store Atmosphere Terhadap Minat Beli Konsumen Pada Resort Café
Atmosphere Bandung. Jurnal Bisnis Dan Ekonomi (JBE), 17(2), 97–108.
OECD. (2017). The Funding of School Education. Retrieved from https://www.oecd-ilibrary.org/the-funding-
of-school-education_5jfvxdqhtw40.pdf
Oerip, P., & Tatag, O. (2012). Mengatasi Krisis Manusia di Perusahaan. Jakarta: Grasindo.
Peltola, K. U., Rautaoja, T., Alku, P., & Peltola, M. S. (2017). Adult Learners and a One-day Production
Training – Small Changes but the Native Language Sound System Prevails. Journal of Language Teaching
and Research, 8(1). https://doi.org/http://dx.doi.org/10.17507/jltr.0801.01
Resnik, D. B. (2015). What Is Ethics in Research & Why Is It Important? Retrieved from
https://www.niehs.nih.gov/research/resources/bioethics/whatis/index.cfm
Santoso, B. (2012). Definisi Profesional. Retrieved from https://inisantoso.wordpress.com/2012/09/25/definisi-
profesional/
Setyawan, Y. N., & Japarianto, E. (2014). Analisa Pengaruh Kepercayaan, Jaminan Rasa Aman, dan
Aksesbilitas terhadap Minat Menabung Nasabah Bank Danamon di Surabaya. Jurnal Manajemen
Pemasaran Petra, 2(1).
Shaleh, A. rahman, & Wahab, M. A. (2004). Psikologi Suatu Pengantar Dalam Perspektif Islam. Jakarta:
Prenada Media.
Shiozawa, Y. (2014). Is saving necessarily invested or not? How can this contradiction in Keynes be solved?
Retrieved from
https://www.researchgate.net/post/Is_saving_necessarily_invested_or_not_How_can_this_contradiction_in
_Keynes_be_solved
Sofhian. (2016). Analisis Preferensi Nasabah Penabung Pada Bank Muamalat Indonesia Tbk. Cabang
Gorontalo. Jurnal Studi Ekonomi Dan Bisnis Islam, 1(2), 90–132. Retrieved from
http://ejournal.iainkendari.ac.id/lifalah/article/download/485/474
Sugiyono. (2016). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.
TUEGEH, L. J. (2018). Pengaruh Profesionalisme Bidan Terhadap Kualitas Pelayanan Kesehatan Ibu Dan Anak
Di Puskesmas Tatelu. Ejournal Unsrat, 1–10. Retrieved from
https://ejournal.unsrat.ac.id/index.php/JAP/article/download/18446/17974
Wahjono, S. I. (2010). Manajemen Pemasaran Bank (1st ed.). Yogyakarta: Graha Ilmu.
Wardani, D. K., Paramita, P. D., & Minarsih, M. M. (2016). Pengaruh Produk, Harga Dan Promosi Terhadap
Kepuasan Konsumen Yang Berdampak Pada Repurchase Itention (Studi Kasus Pada Pelanggan PT.
Ntronik Lintas Nusantara Semarang). Journal of Management, 2(2), 1–12.
Yazid. (2001). Pemasaran jasa & Implementasi (2nd ed.). Yogyakarta: Ekonisia.
Yendrawati, R. (2006). Analisis Hubungan antara Profesionalisme Auditor dengan Pertimbangan Tingkat
Materialitas dalam Proses Pengauditan Laporan Keuangan. Jurnal Akuntansi Dan Investasi, 7(2), 219–242.

Risk Cause Analysis on E-Procurement Bidding
Lily Kholida1, Bismar Arif2

Faculty of Engineering Mercu Buana University Jakarta, Indonesia1,2
Email: lily.kholida@mercubuana.ac.id1 , bismararif02@gmail.com2
ABSTRACT
Purpose: The current procurement of goods and services refers to the Electronic Procurement Service (E-
Procurement) system in accordance with Presidential Regulation No.16 of 2018, however in its implementation
the contractors still need adjustments. One of them is the contractor involved in the case study of this research
which has failed in several tenders. This can create risks associated with value and profitability of the company.
This study aims to cover this gap by knowing the risk factors for failure, level and the form of handling carried
out by distributing questionnaires to the related contractors.
Design/methodology/approach: Data analysis was performed using statistical software and the value was
mapped using the Risk Relative Importance Index (RRI).
Findings: The result show that the capacity of the bid files to upload is too large and there is no supplier
support, are in moderate risk levels with scale respectively of 8,836 and 7,407. Problematic internet signal
factors and incomplete design maturity levels are in high risk levels with a scale of 11.868 and 12.586.
Meanwhile, the extreme risk level, namely the price cannot compete with other participants and the very limited
time for calculating the tender, on a scale of 12,586 and 15,339 are factors that need attention.
Keyword: Bidding, Contraktor, E-Procurement, Risk

I. INTRODUCTION
The Auction of Goods and Services Procurement has used the Electronic Procurement Service (E-
Procurement) system especially on projects carried out by the Government, as quoted in Presidential Regulation
No. 16 of 2018 Chapter X Article 69 section (1) "The Procurement of Goods/Services is carried out
electronically using an information system consisting of an Electronic Procurement System (LPSE) and a
supporting system".
Dyah, Komara, and Djuniati (2015) stated that the implementation of goods / services electronically will
increase transparency, improve the level of efficiency of the procurement process, support the monitoring
process, audit and meet the need for real-time access to information in order to realize clean and good
government in the procurement of government goods / services so that it will be effective to encourage the
creation of healthy competition between businesses.
In the implementation there are risks that will occur. The risks that will be faced by the bidders will
certainly affect the performance of the company that will have an impact on the implementation of the project in
the future. Matters related to the promptness to face the risk certainly refer to the auction documents provided.
Where it must be studied in full and carefully so that bidders can succeed in participating in E-Procurement
Risk Cause Analysis Page │ 304

on E-Procurement Bidding
auctions and can anticipate the risks that will occur. It is not uncommon for failures to occur due to a lack of
studying documents containing the rules set by the auction committee.
In the implementation of E-Procurement tender, pt. contractor. ABC experienced several failures, one of
which was in the Electronic Procurement Services (LPSE) unit at the Ministry X. Failures occurred in pt
contractors. Abc felt it needed to be evaluated. This makes researchers need to review the risks of such failures,
because there are several factors that will later impact the value and profitability of the company.
The purpose of this study is to determine the dominant factor, the level of risk and precautions taken to
minimize the failure of tenders / auctions. The Auction of Goods and Services Procurement has used the
Electronic Procurement Service (E-Procurement) system especially on projects carried out by the Government,
as quoted in Presidential Regulation No. 16 of 2018 Chapter X Article 69 section (1) "The Procurement of
Goods/Services is carried out electronically using an information system consisting of an Electronic
Procurement System (SPSE) and a supporting system".

A. Procurement of Goods/Services
Procurement of Goods /Services is one of the stages of the project cycle required by government agencies
whose process starts from planning needs until the completion of all activities to obtain goods and services
between two parties in accordance with the agreement or contract (Halim Radianto et al. 2020). According to
Presidential Regulation No. 16 of 2018 states that Procurement of Government Goods/Services is an activity to
obtain goods/services by the Ministry/Institutions/Work Units of Regional Devices/Other Institutions whose
process starts from planning needs until the completion of all activities to obtain goods and services, using the
State Budget (APBN) and/or the Regional Budget (APBD).
B. E-Procurement
Arsana (2016) E-procurement is the process of procurement of government goods / services carried out
using information technology and electronic transactions in accordance with the provisions of the legislation.
Furthermore (Putu Resti Mega Artantri et al. 2016) suggests that E-procurement is a system, integrated between
the database of communication systems throughout or part of the process of purchasing goods or services
(Yanto and Adrison 2020). E-procurement technology provides a mechanism of supervision and procurement
for alleged irregularities in a procurement process. Transparency and openness of the procurement process will
certainly facilitate the supervision process. All elements of society, especially non-governmental institutions are
expected to play an active role in supervising the procurement process.
C. Risk Management
Saptari and Mawardi (2017) in Rizkiyanto (2018) stated that risk management is an approach taken to risk
to understand, identify, and evaluate the risks of a project. PMBOK Guide 5th Edition defines project risk
management as a systematic process and identification, response analysis and project risk control.
Risk management is implemented to reduce, avoid, accommodate one risk through a number of sequential
activities namely:
1. Identification of risks, identify what risks may occur, apply initial screening to risk events and potential risk
status and develop into prelimenary risk status,
2. Risk analysis, analyze or measure possible risks to determine which risk priorities should be completed first
and the methods used to complete or reduce them.
3. Risk control, after the above two steps are implemented, the next step is to control the risk where there are
two basic approaches in risk control, namely risk control by avoiding risk, controlling losses, separating
risky activities and a combination of the three ways above and risk financing.
III. METHODS
Data that has been obtained through literature studies and processing questionnaire variables based on
previous research, then analyzed using statistical techniques using SPSS. This is because SPSS is an application
program most widely used for statistical analysis in social sciences.

A. Non-Parametric Analysis
Non-Parametric Analysts in this study used homogeneity tests. Homogeneity test is used to determine the
difference in level of understanding based on existing respondent data. The differences are divided into
respondents' backgrounds which include work experience, position, and recent education. The use of
Homogeneity test using Kruskal-Wallis H (free sample K test) calculation used in more than 2 categories.
The guidelines used to accept or reject if the proposed zero hypothesis (Ho) are as follows:
1. Ho is accepted if the p-value in the column asymp. Sig > level of significant (α) of 0.05 and chi square
value < of X20.05(df).
2. Ho is rejected if the p-value in the column Asymp. Sig < level of significant (α) of 0.05 and chi square
value > of X20.05 (df).
B. Validity Test
Test validity to determine the feasibility of question items in the list of questions on predefined variables.
The formula for calculating product moment correlation is as follows:
Where:
R = product moment correlation coefficient
X = score per question/item
Y = total score
N = number of respondent
The basis of decision making in the validity test are:
If the rhitung value > rtabel, then the question item or statement in the questionnaire has a significant
correlation to the total score (meaning the item of the questionnaire is declared valid).
If the rhitung value < rtabel, then the question item or statement in the questionnaire does not have a
significant correlation to the total score (meaning the item of the questionnaire is declared invalid).
C. Reliability Test
Reliability test aims to determine the level of data reliability produced by an instrument to ensure the
consistency of research instruments in the same concept. An instrument is said to be realibel if the answer to the
map is consistent over time (Basrie, Homsiah, Abdillah Willy 2015). In this study using a tool in the form of
SPSS (Statistical Product for Service Solition), a technique used to measure the reliability of dangan using
cronbach alpha that is a construct or variable will be said to be realibel if the cronbach alpha has a value greater
than 0.60 and vice versa is said to be not reliable if the cronbach alpha is less than 0.60 (Basrie, Homsiah,
Abdillah Willy 2015).
D. Descriptive Statistical Analysis

Descriptive statistics is a method of researching a group of people, an object, a set of conditions, a thought
system or a class of events at a current time (Rizkiyanto 2018). The purpose of descriptive analysis is to create a
systematic, factual and accurate description of the facts examined in the field. Descriptive analysis using SPSS
will be obtained an overview of the factors of electronic tender failure (e-procurement) with output in the form
of min, max, mean, standard deviation, and others.
E. Risk Level Analysis

Risk level analysis uses a risk matrix with probability and impact parimeters to determine the level of risk
that will occur on an indicator where it can be structured on a priority scale. This matrix is in the form of a table
that determines which of the combination of probability of impact and the result of such impact in the
classification of high risk (red), medium risk (yellow) and low risk (green). To get a risk classification rating,
use the RRI index where:
Indeks RRI = Mean Probability x Mean

IV. DATA ANALYSI
Table 1 Wallis Kruskal Test Results Based on Recent Education
Level Chi - Square df Asymp Sig. Conclusion
Probability 5,786 3 0,123 No Different

Impact 0,938 3 0,816 No Different
Source:: SPSS, 2020
Table. 2. Probability Validity Test Results

Corrected Item
Variabel Total Correlation r tabel Description
(r hitung)
X1 0.399 0.374 Valid
X2 0.703 0.374 Valid
X3 0.490 0.374 Valid
X4 0.454 0.374 Valid
X5 0.406 0.374 Valid
X6 0.660 0.374 Valid
X7 0.542 0.374 Valid
X8 0.487 0.374 Valid
X9 0.771 0.374 Valid
X10 0.745 0.374 Valid
X11 0.450 0.374 Valid
X12 0.537 0.374 Valid
X13 0.638 0.374 Valid
X14 0.323 0.374 No Valid
X15 0.529 0.374 Valid
X16 0.689 0.374 Valid
X17 0.660 0.374 Valid
X18 0.542 0.374 Valid
X19 0.585 0.374 Valid
X20 0.657 0.374 Valid
X21 0.611 0.374 Valid
X22 0.529 0.374 Valid
X23 0.736 0.374 Valid
X24 0.640 0.374 Valid
X25 0.493 0.374 Valid
X26 0.375 0.374 Valid
X27 0.430 0.374 Valid
X28 0.748 0.374 Valid
X29 0.468 0.374 Valid
X30 0.861 0.374 Valid
X31 0.523 0.374 Valid
X32 0.775 0.374 Valid
X33 0.712 0.374 Valid
Source:: SPSS, 2020
Table 3. Wallis Kruskal Test Results Based on Work Experience

Source: SPSS, 2020

Tabel 4. Wallis Kruskal Test Results Based on Respondent's Position

Source:: SPSS, 2020
Table. 5. Impact Validity Test Results

Corrected Item Total
Variabel r tabel Description
Correlation (r hitung)
X1 0.906 0.374 Valid
X2 0.915 0.374 Valid
X3 0.836 0.374 Valid
X4 0.868 0.374 Valid
X5 0.493 0.374 Valid
X6 0.669 0.374 Valid
X7 0.897 0.374 Valid
X8 0.842 0.374 Valid
X9 0.770 0.374 Valid
X10 0.811 0.374 Valid
X11 0.838 0.374 Valid
X12 0.821 0.374 Valid
X13 0.867 0.374 Valid
X14 0.891 0.374 Valid
X15 0.829 0.374 Valid
X16 0.553 0.374 Valid
X17 0.870 0.374 Valid
X18 0.829 0.374 Valid
X19 0.466 0.374 Valid
X20 0.876 0.374 Valid
X21 0.861 0.374 Valid
X22 0.799 0.374 Valid
X23 0.787 0.374 Valid
X24 0.784 0.374 Valid
X25 0.644 0.374 Valid
X26 0.891 0.374 Valid
X27 0.909 0.374 Valid
X28 0.783 0.374 Valid
X29 0.833 0.374 Valid
X30 0.896 0.374 Valid
X31 0.620 0.374 Valid
X32 0.775 0.374 Valid
X33 0.712 0.374 Valid
Source: SPSS, 2020
Table 6. Reliability Test Result

Nilai
Alpha
Tingkat Cronbach Kesimpulan
Cronbach Item
Alpha
Probabilitas 0,940 0,60 Reliabel
Dampak 0,982 0,60 Reliabel
Source: SPSS, 2020

Table 7. Risk Relative Importance Variable Values

Dominant Results Index Risk
No. Variabel Code Relative Rank
Probability Impact
Importance
Technical
The method of execution of the work
1 offered does not meet the requirements X1 2.167 3.433 7.439 20
of the auction documents
2 Incomplete organizational structure X2 2.133 3.300 7.039 23
Error to understand the project siteplan
3 X3 1.867 3.133 5.849 30
because it does not carry out site visits
Technical specifications less than
4 X4 2.268 3.300 7.484 19
required
5 Bid file capacity for uploads is too large X5 2.733 3.233 8.836 14
Technical proposal format submitted is
6 difficult to understand by the jury X6 2.067 2.867 5.926 28
(auction committee)
Minimal understanding of tender
7 X7 2.100 3.300 6.930 25
document requirements
Administrative
Basic Capability (KD) does not match
8 X8 1.800 3.330 5.994 27
the package tendered
The qualifications of project team
9 personnel are not in accordance with X9 2.333 3.100 7.232 22
the requested auction documents
10 No supplier support X10 2.200 3.367 7.407 21
Contractors do not understand sequence
11 X11 1.700 3.233 5.496 31
of activities
Do not attach RKK (Construction
12 X12 1.567 3.300 5.171 32
Safety Plan) according to the format
Do not attach the cost of RKK
13 (Construction Safety Plan) at least 9 X13 1.800 3.267 5.881 29
items
Human Resources
Estimator does not ask for
14 competitive/best offer price to X15 2.167 3.200 6.934 24
supplier/subcontractor
15 Very limited tender calculation time X16 3.900 3.933 15.339 1
Did not pass the prequalification stage
16 X17 2.367 2.667 6.313 26
(PQ)
Lack of competent personnel in the
17 X18 2.300 3.500 8.050 16
preparation of quotes
Offer documents are uploaded as they
18 X19 3.830 3.933 15.063 2
approach the deadline for bidding entry
19 Errors in price surveys X20 2.467 3.400 8.388 15
20 Errors in predicting price fluctuations X21 2.400 3.267 7.841 17
External
SPSE application that is experiencing
21 X22 3.030 2.967 8.990 13
trouble (interference)
22 Problematic internet signal X23 2.967 4.000 11.868 4
23 Failed to upload offer document X24 2.733 4.167 11.388 6
Design or Picture
Design maturity level not fully
24 X25 2.900 3.667 10.634 7
available
Scope of work does not match images
25 X26 2.633 3.533 9.302 11
and specifications
The boundaries of the scope of work
26 X27 2.600 3.667 9.534 10
are unclear
Price
Prices cannot compete with other
27 X28 3.200 3.933 12.586 3
participants
Ability in bidding estimation is not
28 X29 2.367 3.233 7.653 18
good
29 Arithmetic error X30 2.533 3.867 9.795 9

No. Variabel Code Dominant Results Index Risk Rank

The unan availability of BOQ that Relative
30 X31 3.000 3.300 9.900 8
describes the scope of work Importance
Late management decision in
31 X32 3.133 3.733 11.695 5
determining the maximum offer price
Lack of communication between
Engineer and Estimator so that the
32 X33 2.633 3.467 9.129 12
production tools offered do not match
the price offered
Source: Processed Authors, 2020
V. RESULT
Based on the results of questionnaires and data analysis obtained variables with risk ratings from each
aspect of the risk category namely: technical aspects, administrative aspects, human resource aspects, external
aspects, design or image aspects, and price aspects. So that the highest rank of each aspect will be the dominant
failure risk factor that can be analyzed as follows.
Table 8. Highest Risk Rating for E-Procurement Tender Failure

Dominant Results Index Risk
No. Variabel Code Relative Rank
Probability Impact
Importance
Technical
Bid file capacity for uploads is too
1 X5 2.733 3.233 8.836 14
large
Administrative
2 No supplier support X10 2.200 3.367 7.407 21
Human Resources
3 Very limited tender calculation time X16 3.900 3.933 15.339 1
External
4 Problematic internet signal X23 2.967 4.000 11.868 4
Design or Picture
Design maturity level not fully
5 X25 2.900 3.667 10.634 7
available
Price
Prices cannot compete with other
6 X28 3.200 3.933 12.586 3
participants

Next the ranking results of the overall variables described in the risk mapping.
Table 9. Risk Impact

VI. CONCLUSION
Based on the results of analysis and process of discussion data in this study, the authors concluded that:
a. Technical Aspect Factor, X5 risk, offer file capacity for upload too large get Index Risk Relative
Important (RRI) value of 8,836 with moderate risk level. Precautions are to ensure that files sent in the
form of pdfs with smaller caps, reduce material brochure files that are not relevant to tenders, prepare
applications to reduce data capacity. Corrective action is to compress every file uploaded,
buy/download a secure, efficient and effective file reduction application.
b. Administrative Aspect Factor, X10 risk, no supplier support get Index Risk Relative Important (RRI)
value of 7,407 with moderate risk level. The precautions are to create a data bank for supplier list,
improve coordination between pic tender and supplier/subcontractor by increasing the quantity of
coordination meetings. Corrective action is to contact the supplier at the beginning of the tender
implementation, looking for other brand suppliers of equal quality.
c. Human Resources Aspect Factor, X16 risk, very limited tender calculation time get An Index Risk
Relative Important (RRI) value of 15,339 with an esktrem risk level. Preventive measures are to make
efficient calculation methods and train human resources to be able to work quickly, precisely and
responsibly; create a recap of similar project data for coefficients and fairness value; create an
administration format in accordance with the needs of tenders to minimize the shortcomings of existing
administration. Corrective action is to supervise the progress of calculations; create a priority list of
jobs that must be calculated in detail in order to take precedence over the completion; members of the
tender team.
d. External Aspect Factor, X23 risk, problematic internet signal get Index Risk Relative Important (RRI)
value of 11,868 with high risk level. Precautions are to improve supporting facilities, provide at least 2
internet providers to prevent failed uploads if one of the internet providers has problems, check the
internet connection before the tender upload process. Corrective action is to provide it team during the
delivery process to control the process, upload files in a place with high internet speed, provide a
modem or a stable internet connection specifically for uploading tender activities.
e. Design or Image Aspect Factor, X25 risk, design maturity level is not fully available to get An Index
Risk Relative Important (RRI) value of 10,634 with a high level of risk. Precautions are to request a
complete design at the time of aanwijzing, coordinating and additional communication between
engineering and quantity surveyors to cover the lack of maturity of available designs. Corrective action
is to make design assumptions by still consulting consultant planners and owners, providing special
training to the engineering team and quantity surveyor team to deal with tender conditions with no
design / image available that is less / incomplete.
f. Price Aspect Factor, X28 risk, price cannot compete with other participants get An Important Risk
Relative Index (RRI) value of 12,586 with extreme risk level. Precautions are to find the best price
from each supplier; analyze the risks that can occur and calculate them so that the risks and margins are
not too high; make up to date price bank data in accordance with the project that is running. Corrective
action is to streamline internal costs that are perceived to be less in accordance with the project being
carried out, reducing margins and risk figures at RABT by knowing the consequences, creating bank
data.
REFERENCES
Arsana, P. J. 2016. Management of Government Procurement of Goods and Services. Yogyakarta: CV. Budi
Utama.
Basrie, Homsiah, Abdillah Willy, and J. S. Fahrudin. 2015. Implementation Analysis of Electronic
Goods/Services (E-Procurement) In The Government of Bengkulu City In 2015. Bengkulu: Doctoral
dissertation.
Dyah, Ni Wahyu, Ryan Tri Komara, and Sri Djuniati. 2015. “Analisa Variabel Kegagalan Kontraktor Di Kota
Pekanbaru Dalam Proses Evaluasi Pengadaan Barang Dan Jasa Pemerintah Secara Elektronik (E-
Procurement).” Jurnal Online Mahasiswa (JOM) Bidang Teknik Dan Sains 2(2):1–11.
Halim Radianto, Sambari, Suparto Wijoyo, Bagus Oktafian Abrianto, Prawitra Thalib, and Purnomo Edy
Mulyono. 2020. “Laporan Tahunan KPK Tahun.” International Journal of Advanced Science and
Technology 29(6s):559–68.
Putu Resti Mega Artantri, Luh, Lilik Handajani, Endar Pituringsih, and Magister Akuntansi Universitas
Mataram. 2016. Peran E-Procurement Terhadap Pencegahan Fraud Pada Pengadaan Barang/Jasa
Pemerintah Daerah Di Pulau Lombok. Vol. 10.

Rizkiyanto, Bayu. 2018. Risk Identification Delay In 1000 Mm Bore Pile Diameter Foundation Work at Nine
Plaza Building Project & Residence CBD Serpong, Doctoral Dissertation. Jakarta: Mercu Buana
University.
Saptari, Putri Selvina Tri, and Amin Mawardi. 2017. “Risk Analysis Works Precast Panel on Construction
Project Apartment at Summarecon Serpong.” Undefined.
Yanto, Deri, and Vid Adrison. 2020. “Do The Government Expenditure Audits Correlates With Corruption In
The Public Procurement?” Jurnal Tata Kelola & Akuntabilitas Keuangan Negara 6(1):19. doi:
10.28986/jtaken.v6i1.378.
BIOGRAPHIES
Lily Kholida is a Lecturer in Faculty of Engineering, majoring Construction Management at Mercu Buana
University, West Jakarta, Indonesia. She earned B.Tech in Construction Management and Master in Project
Management from University of Indonesia. She already being a thesis supervisor for almost thirty students in
different subject discuss about risk, cost, safety and health management which aligned with her research interest.
She is a member of Project Management Institute (PMI) global, PMI chapter Indonesia and Indonesian Project
Management Expert Association (IAMPI).
Bismar Arif is a Btech student in Civil Engineering at the Mercu Buana University. Before majoring in civil
engineering, the author completed his education in engineering school in 2016 majoring in architectural
engineering at a favorite school in Jakarta, namely SMKN 26 Jakarta. The author is also an employee at one of
the State-Owned Enterprises, Wijaya Karya Buildings, Tbk. with responsibility of calculating the budget plan
for project construction costs.

Motivation and Competency Factors Influencing Tutors

Performance in Educational Equality of Study Group Musi
Banyuasin Regency
Desi Ulpa Anggraini1, Yeni Marsih2, Achmad Kartiko Buwono3, Aan Ardiansyah4
Rahmaniyah College Of Economics ( STIER) Sekayu1,2,3,4
Email: desi.ulpa19@gmail.com
ABSTRACT
Purpose: The lack of motivation and competence in the performance of tutors in the education equality of study
groups in the Non-Formal Education Unit of the Musi Banyuasin Regency was the background for this research.
The purpose of this study is to prove the influence of motivation and competence on the tutor's performance.
Design/methodology/approach: The population in this study were all Group Equality Tutors, total to 70 people.
Primary data used from questionnaires by respondents. Sample selection is done by simple random sampling.
Data management techniques used the SPSS version 20 program and tested it using multiple linear regression
equations.
Findings: The results of the study simultaneously produce an R2 (R square) of 0.169 indicating the variable
competence and work motivation affect tutor performance by 16.9%, and the remaining 83.1% is influenced by
other variables. While partially there is an influence between motivation on performance that produces a tcount
of 3.501, and there is no influence between competence on performance with the result of a tcount of 1.820.
Keyword: Competence, Motivation and Performance

Revised: April 27th, 2021
I. INTRODUCTION
The performance of human resources (HR) in an organization greatly determines the existence,
development and sustainability of the organization concerned in the future. Performance refers to the
achievement of human resources which is measured based on the standards set by the agency or company
(Hasibuan, 2010). Therefore, it greatly determines the ability of the organization to carry out its functions
properly. Performance is influenced by both external and internal factors (Wirawan, 2015).
Among the internal factors that affect performance is motivation. According to Wibowo, (2014)
motivation is the factors that lead to and encourage behavior to carry out an activity which is stated in the form
of hard and weak. Hard motivation will encourage HR to maximize their efforts so as to provide the best results.
These results will have an influence on the achievement of good performance as well. Apart from motivation,
competence also affects performance. According to Wibowo, (2014) competence is the ability to carry out or
perform a job or task that is based on skills and knowledge and is supported by the work attitude demanded by
the job. Competence also shows the characteristics of knowledge and skills possessed or required by each
individual which enables them to perform their duties and responsibilities effectively and raise the standards of
Motivation and Competency Factors Influencing Tutors Performance Page │ 313

in Educational Equality of Study Group Musi Banyuasin Regency
Desi Ulpa Anggraini, Yeni Marsih, Achmad Kartiko Buwono, Aan Ardiansyah
professional quality in their work. Good ability will support the success of HR in carrying out tasks that have an
impact on overall organizational performance.
SKB Non-Formal Education Unit in Musi Banyuasin Regency is a government institution under the
Education Office that is tasked with equivalent education in the form of packages. Package B is equivalent to
SLTP and Pursue Package C is equivalent to SMA which is available in several locations, namely in Sekayu
District and Lawang Wetan District. One of the functions of equality education is to empower the potential and
existing educational facilities in the community in a deliberate learning situation so that it is hoped that the
potential and available facilities can be optimized by tutors for learning and achieving competence for learning
citizens. One of the potentials and facilities that might be utilized by equality education tutors is the availability
of learning support tools which include computers, TV, interactive VCDs, VCD players and internet channels
that can be used for the teaching and learning process.
The role and function of the tutor in the learning process still dominates and has a strategic role so that the
success of educational goals is highly dependent on the contribution of the tutor's performance. The success
achieved by the learning community is largely determined by the manner and ability of the tutor in delivering
teaching materials. The tutor is a component that occupies a central and very strategic position in the education
system. Because tutors determine the implementation of quality education, only with tutors who are competent,
professional and have a good personality can teaching and learning activities take place smoothly and with
quality.
This is where the work motivation of the tutors is required to develop quality human resources. The
implementation of the tutor's work motivation in performing the task will depend on the ability and seriousness
of his work. A tutor who has low work motivation will usually have difficulty in carrying out his duties and
work so that he will give up on the situation rather than trying to solve it. Unlike a tutor who has high work
motivation, if there is difficulty in carrying out their duties and work, they will try to solve it.
Becoming a tutor without work motivation will quickly feel bored because there is no driving element.
Tutors who are motivated will have a passion for work, willing to work hard by contributing all their thoughts,
abilities, skills to achieve educational goals. The tutor becomes an educator because of the motivation to
educate. If you don't have motivation, the tutor will not succeed in educating or if you teach because you are
forced to, the results will be less than optimal. Motivation is a potential strength that exists in a human being
that can be developed by himself which can affect the results of his performance positively or negatively. The
number of tutors and students in the Non-Formal Education Unit SKB (Learning Activity Center) Musi
Banyuasin Regency can be seen in the table below:
Thus motivation becomes the actualization of a tutor to improve their performance. However, in reality
there are many tutors who are less motivated, this is due to the lack of competition between tutors. Tutors teach
only to fulfill their demands or obligations in teaching without paying attention to students' abilities in
understanding the learning material, while tutors are required not only to be able to teach but also to be able to
educate and improve competence in teaching, so as to create competition between tutors to become exemplary
and competent tutors.
Based on the results of interviews of researchers with students at the Non-Formal Education Unit SKB
MusiBanyuasin Regency regarding the performance of the tutor, it was stated that the tutor's performance had
not been good enough, this was indicated by the lack of tutors in mastering and delivering learning material well
so that students had difficulty accepting and understanding the material, explaining the material is too fast, and
there are still tutors who teach only give assignments after that they just leave it unattended. In addition, it was
also found that there were tutors who were less skilled in using learning media, did not apply various learning
models, did not activate students in learning so that it did not generate and arouse students' thinking skills.
II. THEORETICAL FRAMEWORK

A. Motivation
According to Mariot, (2009) motivation is the factors that direct and encourage a person's behavior or
desire to carry out an activity that is expressed in the form of hard or weak efforts. According to Handoko,
(2009) suggests that motivation is a person's personal condition that encourages an individual's desire to carry
out certain activities in order to achieve goals.
Work motivation is very important, because motivation can lead to, encourage employees to behave
positively so that they are willing to work hard and enthusiastically to achieve optimal results (Desi Ulpa
Anggraini, Wibowo, Hanes Riyadi, 2019). People want to work to fulfill their needs, both consicious needs and
uncosicious needs in the form of material and non-material, physical and spiritual needs. In addition, motivation
is a strong driving force to do something, where this motivation differs from one employee to another.

There are several theories of motivation according to experts, including Maslow's theory (Mariot, 2009)
which is described in a hierarchy of five needs in the form of physiological, social, belonging, self-esteem, and
self-actualization needs. Furthermore, Abraham Maslow argued that adults (subordinate equality education
tutors) normally have to meet at least 85 percent of physiological needs, 70 percent of safety needs, 50 percent
of social needs, 40 percent of reward needs, and 15 percent of self-actualization needs. If not fulfilled, the
equality education tutor will experience self-conflict, family, and it could also be a cause of work conflict. Thus,
if the need for equality education tutors is not met, the leader will experience difficulties in motivating the work
of equality education tutors.
B. Competence
According to Moeheriono, (2014) competence is a characteristic that underlies a person related to the
effectiveness of individual performance in their work or the basic characteristics of individuals who have a
causal relationship or as a cause and effect with the criteria used as a reference.
According to Robbins, Stephen. P., dan Coulter, (2010) competence is the ability or capacity of a person to
do various tasks in a job, where this ability is determined by 2 (two) factors, namely intellectual ability and
physical ability. According to A.A Anwar Prabu Mangkunegara, (2012) human resource competence is
competence related to knowledge, skills, abilities and personality characteristics that directly affect their
performance.
According to wibowo, (2014) competence is the ability to carry out or perform a job or task that is based
on skills and knowledge and is supported by the work attitude demanded by the job. Competence also shows the
characteristics of knowledge and skills possessed or required by each individual which enables them to perform
their duties and responsibilities effectively and raise the standards of professional quality in their work.
Competency indicators are:
a. Knowledge (Knowledge) Knowledge related to work includes: knowing and understanding knowledge in
their respective fields and knowing knowledge related to new regulations, procedures, techniques in
government institutions.
b. Skills (Skill) Individual skills include: the ability to communicate well in writing and the ability to
communicate clearly verbally.
c. Attitude Individual attitudes, including: having the ability to communicate in creativity at work and high
morale.
C. Performance
The performance of some of the opinions above, performance is a comparison of the work achieved by an
equivalency education tutor with a predetermined standard. Performance also means the results achieved by a
person, both quantity and quality in an organization in accordance with the responsibilities assigned to him.
According to Hasibuan, (2010), performance refers to the achievement of an equivalent education tutor as
measured by standards set by agencies or companies. performance is a work result achieved by a person in
carrying out the tasks assigned to him based on skills, experience, and sincerity as well as time.Competence
based on Law no. 13/2003 concerning Manpower: article 1 (10), "Competence is the work ability of each
individual which includes aspects of knowledge, skills and work attitudes in accordance with established
standards.
According to Mariot, (2009) organizations or companies need to know the various weaknesses and
strengths of equality education tutors as a basis for improving weaknesses and strengthening strengths, in order
to increase productivity and development of equality education tutors, it is necessary to carry out periodic
performance assessment activities oriented in the past or the future. According to Robbins, Stephen. P., dan
Coulter, (2010) performance can be measured using indicators: work quality, time efficiency, ability,
effectiveness, and commitment.
D. Correlation of Motivation and Performance

According to Henry Simamora, (2010) states that motivation is one of the factors that affect performance.
Low work motivation will lead to low performance. Employees with a high work vision make themselves happy
and get their own satisfaction in their work, an employee will try to get maximum results with high enthusiasm,
and always try to develop his duties and himself (Anoraga, 2009).
The influence of motivation on performance has been carried out by Abdul Rasyid, Hermansyah, (2007)
with the results of motivation proven to have a significant effect on the performance of high school economics
teachers in Palembang. Astrid Setianing Hartanti, (2018) also gave the same results on teacher motivation in
Vocational High Schools.

E. Correlation of Competence and Performance

According to wibowo, (2012)competence is a person's ability to carry out or do a job or task that is based
on skills and knowledge and is supported by the work attitude demanded by the job. Employee performance
which is the result of work performed by employees depends on their abilities. This ability is one of the
competencies that the employee has. Optimal work results are very much determined by the abilities of the
employee. For example, in achieving quality work results, knowledge and skills of employees are needed both
in the general field and related to their field of work.
Adisasmita, (2014) prove that there is a positive and significant influence of competence on the tutor
performance of all public high schools in Tegal City. Astrid Setianing Hartanti, (2018) also gave the same
results on the competence of teachers in Vocational High Schools. On the other hand, (turangan, 2017) found a
negative effect of competence on the performance of SMA Negeri 1 Manado teachers.
III. RESEARCH METHODS

This research design uses causality (Anwar Sanusi, 2013)sannamely: a research design designed to
examine the possibility of a cause-and-effect Correlation between variables. The data sources are primary and
secondary data (Dachlan, 2014) with questionnaire data collection techniques and documentation (Danang,
2013). The variables and indicators used are shown in the following table:
The population in this study Malhotra, (2009) was all of the Learning Group Equality Education Tutors at
the SKB Non-Formal Education Unit in Musi Banyuasin Regency, totaling 70 people consisting of 33 junior
high school level tutors and 37 high school level tutors. Samples were taken based on the Slovin formula
(Sugiyono, 2011) with an error rate of 5%, 60 samples were taken using purposive sampling technique with the
following criteria:
a. A tutor who works at the SKB Non-Formal Education Unit in Musi Banyuasin Regency
b. Tutors who work for more than 1 year
c. Students who take chase package B and chase package C
The data obtained were then analyzed using multiple linear regression analysis technique
Table 2. Variable Operationalization

Variable / Operational Definition Dimensions Indicator
Motivation are the factors that direct and 1. Physical Needs. Salary
encourage a person's behavior to do something
2. The need for security. Insurance
in the form of hard or weak efforts.
3. Social needs. JusticeGuarantee
4. Needs self-esteem. Leadership with

subordinates
1. Self-actualization needs
Competence is the ability to carry out or perform 1. Knowledge Tutor's knowledge and
a job or task which is based on skills and insight
knowledge and is supported by the work attitude 2. Skills Expertise and
demanded by the job. Understanding
3. Attitude Good Attitude to Students
Performance refers to the achievement of an 1. Quality performance - Quality tutor
equivalency education tutor as measured by the 2. Work time efficiency - Punctuality
standards set by the agency or company. 3. Ability - High ability
4. Effectiveness - Time effectiveness
5. Work Commitment - Compliance with
regulations
Source : Mariot, (2009) wibowo, (2014) dan Hasibuan, (2010)

Motivation (X1)
a. Psychological needs
b. Needs a sense of security
c. Social needs Performance (Y)
d. Needs self-esteem a. Quality of performance
e. Self-actualization needs. b. Uptime efficiency
Source: Maslow in Hariandja (2009: 324) c. Employee capabilities
d. Effectiveness of task completion
e. Work Commitment
Source: Robbins (2010: 260)
Competency (X2)
a. Knowledge
b. Skills
c. Attitude
Source: Wibowo (2014: 271)
Figure 1. Conceptual of Framework Hypothesis
The hypothesis proposed in this study is that there is an influence of motivation and competence on the
performance of the learning group equivalency education tutor at the SKB Non-Formal Education Unit in Musi
Banyuasin Regency.
IV. RESEARCH RESULTS AND DISCUSSION

A. Profile of Respondents
Based on gender, the respondents of this study consisted of 65% male and 35% female. Most of the
respondents (60%) were 41-50 years old, while 40% of them were 31-40 years old. In terms of education, a
number of 51.67% of respondents have an undergraduate education, 26.67% have a D3 education, and 21.67%
of the respondents have a master degree.
B. Description of Respondents' Answers

The following shows a table of descriptions of the answers of the respondents to the indicators being asked
in a row.
Table 3. Description of Answers to Work Motivation (X1)

N S
T S
o Statement T N S
S S
. S
psychological needs
a
My salary is sufficient to meet the needs of 1 2 1 1
1 where I live 3
0 1 4 2
b Security needs
I work under safety insurance. 1 1 1 1
2 3
2 1 7 7
c Social needs
I feel that I am not differentiated from my 1 2
3 6 7 7
colleagues at work. 6 4
Need for Self-Esteem
d
The organization rewards me for satisfying 1 1 1 2

4 3
work results. 1 1 2 3

e Actualization Needs
The leadership gave me the opportunity to be 1 2 2
5 1 6
creative at work. 2 1 0
Source : Primary data Processed, 2018

In Table 3, it appears that most of the respondents agreed to the work motivation variable. This shows that
there is an assessment of the high work motivation of the learning group equivalency education tutors at the
SKB Non-Formal Education Unit in Musi Banyuasin Regency. The salaries received by employees have been
good enough to meet their needs. Employees have also received health insurance from the company, employees
feel that they are not differentiated from their colleagues at work, the organization has given bonuses to
employees for satisfying work results, and leaders have provided opportunities to be creative in their work.
Respondents' responses as in Table 4 indicate that most respondents agreed and strongly agreed with the
Competency variable. This shows that there is no significant effect of competence on the performance of SKB
education tutors. All SKB education tutors have good enough knowledge, can solve problems with their
knowledge, are able to complete work with the skills they have, understand every root problem that occurs, and
always show a good attitude towards their students
Respondents' responses as in table 5 indicate that most of the respondents agreed and neutralized the tutor's
performance items. All SKB Education Tutors already have a high enough quality of work, are present on time
in class at teaching hours, have the ability to teach students in class, and are obedient to all work rules and
procedures established in a job.
Table 6. Validity Test Results

No. Variable/Indicators r Count r table information
Motivation (X1)
1 Item 1 0,533 0,254 Valid
2 Item 2 0,634 0,254 Valid
3 Item 3 0,732 0,254 Valid
4 Item 4 0,744 0,254 Valid
5 Item 5 0,384 0,254 Valid
Competency (X2)
1 Item 1 0,415 0,254 Valid
2 Item 2 0,565 0,254 Valid
3 Item 3 0,550 0,254 Valid
4 Item 4 0,663 0,254 Valid
5 Item 5 0,271 0,254 Valid
Performance (Y)
1 Item 1 0,451 0,254 Valid
2 Item 2 0,547 0,254 Valid
3 Item 3 0,381 0,254 Valid
4 Item 4 0,497 0,254 Valid
5 Item 5 0,501 0,254 Valid
Source: Primary data processed, 2018
Table 6 shows that the correlation between each indicator to the total construct score of each variable
shows a significant result, and shows that r count> r table. So it can be concluded that all statement items are
declared valid.

Table 7. Reliability Test Results
No Variable Alpha Information
1 Motivation (X1) 0,741 Reliable
2 Competency (X2) 0,645 Reliable
3 Performance (Y) 0,632 Reliable

The results of the reliability test indicate that all variables have a fairly large Alpha coefficient, which is
above 0.60, so it can be said that all the measuring concepts of each variable from the questionnaire are reliable
so that further items in each of these variable concepts are suitable for use as a tool. measuring.
C. Classic Assumption Test

Based on the results of the output above, it is known that the significance value of 0.751 is greater than
0.05, so it can be concluded that the data tested is normally distributed.
Table 8. Kolmogorov-Smirnov Normality Test

One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 60
Mean 0E-7
Normal Parametersa,b
Std. Deviation 2,34980576
Absolute ,087
Most Extreme Differences Positive ,062
Negative -,087
Kolmogorov-Smirnov Z ,676
Asymp. Sig. (2-tailed) ,751
a. Test distribution is Normal.
b. Calculated from data.
Table 9. Linearity Test Results

ANOVA Table
Sum ofdf Mean F Sig.
Squares Square
(Combined) 89,433 9 9,937 1,463 ,188
Performance_Y Between Linearity 33,122 1 33,122 4,878 ,032
* Groups Deviation from
56,311 8 7,039 1,037 ,422
Competency_X Linearity
2 Within Groups 339,500 50 6,790
Total 428,933 59

Based on the results of the analysis, it shows that the significance value (0.422)> 0.05, means that it can be
concluded that there is a significant linear Correlation between the motivation (X1) and competence (X2)
variables with the tutor performance variable (Y).

Table 10. Multikolinieritas Test Result

Coefficientsa
Model Collinearity Statistics
Tolerance VIF
motivation_X1 ,975 1,026
1
competency_X2 ,975 1,026
a. Dependent Variable: performance_Y
Tabel 11. Heterocedasticity Test Result

Correlations
motivation_X1 competency_X2 Unstandardized
Residual
Correlation Coefficient 1,000 ,142 -,043
motivation_X1 Sig. (2-tailed) . ,280 ,745
N 60 60 60
Spearman's Correlation Coefficient ,142 1,000 ,002
rho competency_X2 Sig. (2-tailed) ,280 . ,986
N 60 60 60
Correlation Coefficient -,043 ,002 1,000
Unstandardized Residual Sig. (2-tailed) ,745 ,986 .
N 60 60 60
From the results above, it can be seen that the tolerance value (0.997)> 0.10 and the Varian Inflation Factor
(1.026) <10.00, so it can be concluded that there is no multicollinearity to the data tested.
Table 12. Autocorrelation Test Results

Model Summaryb
Model R R Square
Adjusted R Square Std. Error of theDurbin-Watson
Estimate
1 ,490a ,241 ,214 2,391 1,829
a. Predictors: (Constant), Competency_X2, motivation_X1
b. Dependent Variable: Performance_Y
Source : Primary Data Processed 2018

Based on the results of the output above, it is known that the value of Dw (1,829), this value will be
compared with the significance table value of 5%. The number of samples is 60 and the number of independent
variables is 2 (K = 2), it is known that the value of dL (1.5144) <from Dw ((1.829), it can be concluded that
there is positive auto correlation.
D. Analysis of Multiple Linear Regression Equations

Based on the multiple regression estimation with the SPSS program, the results are as shown in Table 13.
Table 13. Estimation Results of Regression

Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
B Std. Error Beta
(Constant) 7,528 2,776
1 motivation_X1 ,294 ,084 ,409
competency_X2 ,234 ,129 ,213
Source : Primary Data Processed, 2018

Based on table 13, it can be seen that the regression equation formed is:
Y = 7.528 + 0.294X1 + 0.234X2
Information :
Y = Tutor Performance
X1 = work motivation
X2 = Competence
From this equation it can be explained that:
a. Constant (a). If all the independent variables have a value of zero (0) then the value of the dependent
variable (Tutor Performance) is 7.528.
b. The work motivation coefficient gives a value of 0.294, which means that if work motivation increases with
the assumption that other variables are constant, the tutor's performance will increase and will increase in
the tutor's performance.
c. The competency coefficient gives a value of 0.234, which means that if the competence is good with the
assumption that other variables are constant, the tutor's performance will increase.
Table 14. Coefficient of Determination (R²)

Model Summary
Model R R Square
Adjusted R Square Std. Error of the
Estimate
1 ,490a ,241 ,214 2,391
a. Predictors: (Constant), competency_X2, motivation_X1

The value of R2 (R Square) of 0.214 indicates that the variables of work motivation and competence affect
tutor performance by 21.4%, while the remaining 78.6% is influenced by other variables not examined in this
study.
E. Hypothesis Testing Results
Table 15. Simultaneous Regression Analysis Results

ANOVAa
Regression 103,160 2 51,580 9,025 ,000b
1 Residual 325,774 57 5,715
Total 428,933 59
b. Predictors: (Constant), competency_X2, motivation_X1

The results of statistical calculations show Sig F 0.000 <α = 0.05, so Ho is rejected and accepts Ha. This
means that simultaneously work motivation and competence have an influence on the performance of the
learning group equivalency education tutor at the SKB Non-Formal Education Unit in Musi Banyuasin
Regency.
Table 16. Partial t-test results

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) 7,528 2,776 2,712 ,009
1 motivation_X1 ,294 ,084 ,409 3,501 ,001
competency_X2 ,234 ,129 ,213 1,820 ,074


From table 16, it can be seen that work motivation has a sig t value of 0.001 <α = 0.05, so Ho is rejected,
meaning that partially there is a significant influence between work motivation on the performance of tutors at
the SKB Non-Formal Education Unit in Musi Banyuasin Regency. In addition, competence has a sig t value of
0.074> α = 0.05, so H0 is accepted, meaning that partially there is no significant effect of competence on tutor
performance at the SKB Non-Formal Education Unit in Musi Banyuasin Regency.
F. Discussion
a. The Influence of Work Motivation and Competence on the Performance of the Learning Group Equality
Education Tutors at the SKB Non-Formal Education Unit in Musi Banyuasin Regency
The test results prove that there is an effect of motivation and competence on the performance of the
learning group equivalency education tutor at the SKB Non-Formal Education Unit in MusiBanyuasin Regency.
The magnitude of this influence is considered small, because apart from work motivation and competence there
are many other factors that also affect tutor performance. In order to achieve maximum tutor performance, we
must understand the factors that affect the tutor's performance. The tutor's performance will increase when the
influencing factors are harmonious and positive.
b. The Influence of Work Motivation on Equality Education Performance of Learning Groups in Non-Formal
Education Unit SKB Musi Banyuasin Regency
The results of hypothesis testing prove that there is a significant influence between work motivation on the
performance of learning group equivalency education tutors at the SKB Non-Formal Education Unit in Musi
Banyuasin Regency. So from this case it can be concluded that partially work motivation affects the
performance of the learning group equivalency education tutor at the SKB Non-Formal Education Unit in
MusiBanyuasin Regency.
This result is in line with the findings of (hermansyah, 2015) although using different indicators, namely
intrinsic and extrinsic factors. Similar results were also provided by khadijah, (2013) with different indicators
(responsibility, achievement, independence, development, and expectations). Likewise, the findings of
(Wahyudi, 2014) with the development of different indicators. This shows how much influence motivation has
on performance.
c. The Effect of Competence on the Performance of the Learning Group Equality Education Tutor at the SKB
Non-Formal Education Unit in Musi Banyuasin Regency
The results of hypothesis testing prove that there is no significant influence between competence on the
Banyuasin Regency. So from this case it can be concluded that partially competence has an influence on the
Banyuasin Regency.
This result is in line with the findings of (hermansyah, 2015) although using different indicators, namely
intrinsic and extrinsic factors. Similar results were also provided by khadijah, (2013) with different indicators
(pedogical, professional, social, and classroom management competencies). Likewise, the findings of Hidayat,
(2014) with the development of different indicators. This shows how much influence competence has on
performance.
d. Implementation of Research Results
The results of this study support the research conducted by Raharjo Wiryo, (2015), it is known that
hypothesis 1 test states that motivation has a positive and significant effect on tutor performance. The test results
show that motivation has a positive but insignificant effect on tutor performance (β = 0.098, sig = 0.142 ≥ 0.05).
Based on the test results, hypothesis 1 (H1) which is formulated that motivation has a positive and significant
effect on tutor performance, is rejected. Whereas in hypothesis 2 it is stated that professional competence has a
positive and significant effect on tutor performance.
The test results show that professional competence has a positive and significant effect on tutor
performance (β = 0.686, sig = 0.000 ≤ 0.05). Based on the test results, hypothesis 2 (H2) which is formulated
that professional competence has a positive and significant effect on tutor performance, is accepted.

CONCLUSIONS AND SUGGESTIONS

A. Conclusion
a. Simultaneously the variables of work motivation and competence have an influence on the performance of
the learning group equivalency education tutor at the SKB Non-Formal Education Unit in Musi Banyuasin
Regency.
b. Partially work motivation affects the performance of the learning groupequivalency education tutor at the
SKB Non-Formal Education Unit in Musi Banyuasin Regency.
c. Partially competence affects the performance of the learning group equivalency education tutor at the SKB
Non-Formal Education Unit in MusiBanyuasin Regency.
B. Suggestions
Based on the conclusions that have been made, the suggestions that can be given in this study are:
a. Tutors should improve a conductive organizational climate for the creation of better tutors' competence and
work motivation so as to produce more optimal performance.
b. For Non-Formal Education SKB Musi Banyuasin Regency should strive to encourage the creation of a
conducive organizational climate for increased competence and motivation of tutors so that optimal
performance will be created. As a leader, he must pay attention to the competence of the tutor and
encourage the work motivation of the tutor so that the tutor's performance gets better. By doing so, it is
hoped that this will enable the achievement of the goals desired by schools and the goals of national
education.
c. It is necessary to carry out other research or further by including other variables, for example the variables
of principal leadership, commitment to school, and job satisfaction as variables that may affect tutor
performance
REFERENCESS
A.A Anwar Prabu Mangkunegara. (2012). Evaluasi Kinerja Sumber Daya Manusia. PT. Remaja Rosdakarya.
Abdul Rasyid, Hermansyah, A. J. (2007). Hukum Bisnis Untuk Perusahaan:Teori dan Contoh Kasus,Cet .III.
kencana.
Adisasmita, R. (2014). Pengelolaan Pendapatan dan Anggaran Daerah. graha ilmu.
Anoraga, P. (2009). Manejemen Bisnis. pt rineka cipta.
Anwar Sanusi. (2013). metodologi penelitian bisnis cetakan ketiga. Selemba Empat.
Astrid Setianing Hartanti, T. Y. (2018). Pengaruh Kompetensi Profesi Guru dan Motivasi Kerja Terhadap
Kinerja Guru Di Sekolah Menengah Kejuruan. Jurnal Pendidikan Manajemen Perkantoran
Vol.1_No.2_hal. 19-27.
Dachlan, U. (2014). Panduan Lengkap Structural Equation Modelling Tingkat. Dasar. lentera ilmu.
Danang, S. (2013). Metodologi Penelitian Akuntansi. PT Refika. Aditama Anggota Ikapi.
Desi Ulpa Anggraini, Wibowo, Hanes Riyadi, H. U. (2019). The Factors Influencing organizational Citizenship
Behavior Of Employees In Private Universities In South Sumatera Province. Journal Business Management
and Strategy Vol. 10, No. 1 Juni 2019.
Handoko, T. H. (2009). Manajemen (Edisi kedua). Lembaga Penerbit BPFE.
http://digilib.uinsby.ac.id/15522/4/Bab 2.pdf
Hasibuan. (2010). Manejemen Sumber Daya Manusia. Bumi Aksara.
Henry Simamora. (2010). Manajemen Sumber Daya Manusia. gramedia.
hermansyah. (2015). Pengaruh Motivasi, Komitmen, dan Kompetensi terhadap Guru Ekonomi SMA di Kota
Palembang. Jurnal Profit, 2(1), 1–13.
Malhotra, N. . (2009). Riset Pemasaran, Edisi keempat, Jilid 1. PT Indeks.
Mariot, T. E. H. (2009). Manajemen Sumber Daya Manusia, Pengadaan, Pengembangan, Pengkompensasian,
Peningkatan produktifitas pegawai. Grafindo.
Moeheriono. (2014). Pengukuran Kinerja Berbasis Kompetensi Edisi Revisi. PT RajaGrafindo Persada.
Raharjo Wiryo, S. Y. (2014). Pengaruh Motivasi dan Kompetensi profesional Terhadap Kinerja Guru
Dimoderasi Budaya Organisasi. Program Studi Magister Sains UNiversitas Stikubank Semarang.
Riesminingsih. (2013). Pengaruh Kompetensi dan Motivasi terhadap kinerja guru SMA. Jurnal MIX, lll(3),
263–271.
Robbins, Stephen. P., dan Coulter, M. (2010). Perilaku Organisasi. indeks kelompok gramedia.

Sugiyono. (2011). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Alfabeta.

turangan, jaine k. (2017). pengaruh kompetensi, disiplin kerja, dan profesionalisme terhadap kinerja guru.
Jurnal EMBA Vol.5 No.2 Juni.
Wahyudi, Y. P. & H. S. (2014). Pengaruh Sertifikasi, Motivasi, dan Kompetensi Terhadap Kinerja Guru
Sekolah Dasar Negeri (SDN) Di Kecamatan Pakisaji Kabupaten Malang. Riset Manajemen Prodi
Manajemen.
wibowo. (2012). Manajemen Kinerja. Raja Grafindo Persada.
wibowo. (2014). Manajemen Kinerja . Edisi Keempat. Rajawali Pers.
Wirawan. (2015). Manejemen Sumber Daya Manusia. Raja Grafindo Persada.

Effect of Work Ethos on Organizational Commitments and It’s

Impact on Employes Performance of Forestry Office of North
Kalimatan Province
Agus Kristanto1, Ana Sriekaningsih2, Milwan3
Universitas Terbuka1
STIE Bulungan Tarakan2
Jurusan Ilmu Administrasi, Fakultas Hukum, Ilmu Sosial dan Ilmu Politik (FHISIP). Universitas Terbuka 3
Email: macarangainti91@gmail.com1 , an_juf19@yahoo.co.id2,
milwan@ecampus.ut.ac.id3
ABSTRACT
Destination: to analyze and prove the effect of work ethic on organizational commitment and its impact on
employee performance. This type of research is included in explanatory research or explanatory research. The
population in this study were all employees atNorth Kalimantan Forest Service
Design / methodology / approach: The data analysis technique used in this study is a path analysis approach.
Findings:The results showed that partially work ethic has a significant effect on employee performance with the
assumption that organizational commitment is considered constant. In addition, the results of this study also
indicate that partially work ethic has a significant effect on employee organizational commitment. Then partially
organizational commitment has a significant effect on employee performance with the assumption that the work
ethic variable is considered constant. Furthermore, a simultaneous test was carried out where the results of this
study showed that work ethic and organizational commitment together had a significant effect on employee
performance. Organizational commitment is able to mediate the effect of work ethic on employee performance.
Practical implications: Intensifying work ethic towards organizational commitment and its impact on the
performance of forestry service employees
Originality/value: This paper is original
Keywords: Employee Performance, Organizational Commitment, Work Ethic

I. INTRODUCTION
The North Kalimantan Forestry Service Office is the implementing element in carrying out pre-
emptive, preventive and repressive activities in managing forest land in North Kalimantan. Their work duties
must be supported by employee performance that is running optimally. Employees who have a good
performance will have an impact on the performance of their institution, and vice versa if the employee's
performance is not going well, then the institution where they work has the potential for poor performance.
Prawirosentono (2011)explains that performance is the work that can be achieved by a person in an
organization, in accordance with their respective authority and responsibility, in order to achieve the goals of the
organization concerned legally, does not violate the law and is in accordance with morals and ethics. With
regard to the performance of employees at the North Kalimantan Provincial Forestry Service Office, careful
attention must be made so that employee performance does not experience a decline which could have a
negative impact on the related offices. The factors that influence performance and become the focus of this
study are issues of work ethic and organizational commitment. One of the agencies' efforts in maintaining
Effect of Work Ethos on Organizational Commitments and Page │ 325

It’s Impact on Employes Performance of Forestry Office of North Kalimatan Province
Agus Kristanto, Ana Sriekaningsih, Milwan
employee performance is by paying attention to the work ethic of employees, which is an important factor in
obtaining optimal work results.
Sinamo (2011) states that work ethic is a set of positive work behaviors rooted in strong cooperation,
fundamental beliefs, accompanied by total commitment to an integral work paradigm. Supported by Sugiyanto
dan Sutanto, (2010), Abadi. (2018) this study states that work ethic has a direct and significant effect on
employee performance. Ismail, Abdurrahman Affandi, 1982) states that work ethic which consists of strong
awareness, fundamental beliefs, total commitment and enthusiasm has a significant influence on employee
performance. Anwar Ikhsan (2016) research states that work ethic has a direct and significant effect on
organizational commitment.
Organizational commitment is a description of the degree to which employees believe and desire to
stay with and accept and support the achievement of organizational goals, or leave the organization, which is
ultimately reflected in the absence and turnover rate of employees. Employees who have a loyal attitude to the
organization tend to have higher performance than employees who are not loyal. The results of the research by
Paik et al., (2007) prove that employee commitment to work has a positive impact on employee satisfaction and
performance. In this study, the commitment under study is related to the affective commitment of employees at
work. Research Osa, I. G., Idowu, Amos (2014) this research was conducted on industries in Nigeria, where the
research findings are: Organizational commitment has a significant impact on employee productivity and
thereby improves organizational performance and effectiveness. Employee commitment to the organization has
a significant effect on organizational performance, which manifests employee skills, performance and
dedication to duty. Organizations that are motivated by providing salary and wage increases, housing bonuses,
transportation will have a significant effect on employee productivity, because they will increase employee
morale.
Therefore, the performance of employees has a very important influence on the ongoing activities of
the agency and affects the process of achieving agency goals. The North Kalimantan Provincial Forestry Service
is an agency that carries out guidance, supervision and implementation of development in the forestry sector for
the community for the North Kalimantan Province, where the success of the implementation of duties and
responsibilities in the agency depends on the performance of the employees in the agency, the importance of
employee performance. in the Forestry Service of North Kalimantan Province greatly influences the
implementation of the agency's objectives, namely to improve services to the community, especially in the
process of monitoring and fostering development in the forestry sector.North Kalimantan Forest Service through
organizational commitment variable.

A. Human Resource Management
Human resources are an important factor in an organization or company, in addition to other factors such
as assets and capital. Therefore, human resources must be managed properly to increase the effectiveness and
efficiency of the organization, as a function within the company which is known as human resource
management. The utilization of human resources within the organization, which is carried out through the
functions of human resource planning, recruitment and selection, human resource development, career planning
and development, compensation and welfare, occupational safety and health, and industrial relations.
Marwansyah 2016). Flippo (2013) personnel management is planning, organizing, directing and controlling
labor procurement, development, compensation, integration, maintenance and termination of employment with
human resources to achieve the goals of individuals, organizations and communities. According to
(Sedarmayanti, 2017) human resource management is a process consisting of: recruitment or withdrawal of
human resources, selection of human resources, development of human resources, maintenance of human
resources, and use of human resources.
B. Work ethic
Work ethic is an attitude that arises of one's own will and awareness which is based on a cultural value
orientation system towards work Sukardewi 2013)Ethos is an evaluative aspect, where when it is related to the
world of work, ethos forms activities which are a form of participation or concern for the environment and the
world of work. the favorite style of behavior of the citizens of a society.
Sinamo (2011) formulates a work ethic from the concept of Darma Mahardika which is rooted in Sanskrit,
which means "Three Paths of Success". Tri Darma Mahardika is translated into eight professional work ethics,
namely grace, trust, vocation, actualization, worship, art, honor, and service. The opinion above can be further
explained that work ethic has three aspects or characteristics, namely interpersonal skills, initiative, and
reliability (Potter, P.A, Perry, 2015).

C. Organizational Commitment
Luthans (2014) states that attitude, organizational commitment is most often defined as follows: a strong
desire to remain as a member of a certain organization, a desire to strive according to organizational desires and
certain beliefs, and acceptance of organizational values and goals. Stephen (2015) explains organizational
commitment is a condition in which an employee sides with a particular organization and the goals and
objectives of his desire to maintain membership in that organization. (Mathis, 2012) organizational commitment
is the degree to which employees believe and accept organizational goals, and wish to stay with or leave the
company, which is ultimately reflected in absenteeism and employee turnover. (Griffin, 2010) Organizational
commitment is an attitude that reflects the extent to which an individual knows and is tied to the organization. A
highly committed individual is likely to see himself as a true member of the organization. From several
definitions of organizational commitment that have been stated previously, it can be concluded that
organizational commitment is an attitude shown by individuals with identification, involvement and loyalty to
the organization, the desire to remain in the organization and not willing to leave the organization for any
reason. A highly committed individual is likely to see himself as a true member of the organization. From
several definitions of organizational commitment that have been stated previously, it can be concluded that
reason. A highly committed individual is likely to see himself as a true member of the organization. From
several definitions of organizational commitment that have been stated previously, it can be concluded that
reason.
Cut (2010) explains that organizational commitment is a psychological state that characterizes the
relationship between employees and the organization or its implications that affect whether employees will stay
in the organization or not, which are identified in three components, namely: affective commitment, namely : a
person's emotional involvement in the organization in the form of feelings of love for the organization.
Continuance commitment, namely: one's perception of the costs and risks of leaving the current organization.
This means that there are two aspects to continuous commitment, namely: it involves personal sacrifice when
leaving the organization and the absence of alternatives available to that person. Normative commitment,
namely:
D. Employee Performance
Mathis (2012), performance is basically what employees do or not do. Employee performance elements
common to most jobs include quantity of results, quality of results, timeliness of results, attendance and co-
operation. According to Dr. Ir. Hj. Lubis, Yusniar (2019) performance is the result of a process that refers and is
measured over a certain period of time based on predetermined provisions, standards or agreements. Wirawan
(2014) , explains that performance is the output produced by functions or indicators of a job or a profession
within a certain time.
According to Stephen (2015), there are nine factors that affect employee performance, namely:
organizational climate, leadership, quality of work, work ability, initiative, motivation, endurance / reliability,
quantity of work, work discipline. (Mangkunegara, 2016) there are several factors that influence performance
achievement, these factors come from the factors of ability, motivation, individuals, and the organizational
environment. (Bernardin, H. J dan Russell, 2013) suggest 6 (six) primary criteria that can be used to measure
performance as follows: quality, quantity, timeliness, cost effective, and necessary supervision. (need for
supervisor), and personality (interpersonal import). According to Gomes (2013), where there are several
indicators measures of employee performance appraisal as follows quantity of work, quality of work, job
knowledge, creativity, cooperation, dependability, and initiative. , and personal qualities.
Companies that have competence in the fileds of marketing, manufacturing and innovation can make its as
a sourch to achieve competitive advantage. (Achmad Daengs, et al. 2020:1419).
III. METHODOLOGY
Based on the several theories that have been described, a conceptual basis can be made that functions as a
flow of thought and the basis for this research which is described as follows:

Figur 1. Methodology
This type of research is included in explanatory research or explanatory research with a cross sectional
study design. Sources of information were obtained from all employees of the North Kalimantan Forestry
Service, totaling 139 employees. By random sampling and the Slovin approach obtained samplesresearch as
many as 103 people or employees. Collecting data using a personal questionnaire method. This method provides
responses to the questionnaire statement, in this study the questionnaire is distributed directly to the respondents
and the researcher can provide an explanation of the objectives of the survey and questions that are not
understood by the respondent and the responses to the questionnaire can be directly collected by the researcher
after being filled in by the respondent. The next step is to perform quantitative data analysis with the help of a
statistical program with Path Analysis.
IV. RESULTS AND DISCUSSION

A. Work Ethic Affects Employee Performance in North Kalimantan Provincial Forestry Service
Respondents' Responses to Work Ethic indicate that the statement has many ideas and the initiative to
complete the work is in the first place with an average value of 3.81, then in the second place is related to the
statement of having an effective performance in working with an average value of 3, 80, then the tendency to
comply with existing regulations in agencies is in the third place with an average value of 3.77, has an attitude
of cooperation and likes to help with fellow colleagues is in fourth place with an average value of 3.70, the fifth
place is having an honest and punctual attitude in working with an average score of 3.67 while in the sixth order,
it is related to the statement of having a polite and friendly attitude at work with an average score of 3.67.
The results of the descriptive analysis of the respondents' responses to the work ethic of the North
Kalimantan Forestry Service employees show that the statements related to having many ideas and initiatives to
complete the work get the highest score and are in first place with an average score of 3.81. This shows that
having many ideas and taking the initiative to complete work is a very important work ethic criterion for
employees in carrying out their work and duties, while the lowest average score of employee work ethics at the
North Kalimantan Forestry Service is related to the statement that having a polite attitude. and friendly at work
who is in sixth place with an average score of 3.67. This shows that having a polite and friendly attitude is
considered not an important work ethic criterion for achieving targets and maximum work results as expected.
However, if it is seen from the average value of respondents' responses to work ethic, the statements are in the
good category with an average value of 3.74. This shows that the statements put forward by these employees
have a positive value, which means that the work ethic is important for employees to carry out their duties and
responsibilities in order to achieve good and satisfying work results. Existing statements are in the good
category with an average value of 3.74. This shows that the statements put forward by these employees have a
positive value, which means that the work ethic is important for employees to carry out their duties and
responsibilities in order to achieve good and satisfying work results. Existing statements are in the good
category with an average value of 3.74. This shows that the statements put forward by these employees have a

positive value, which means that the work ethic is important for employees to carry out their duties and
responsibilities in order to achieve good and satisfying work results.
Table 1. Path Analysis Test Results.
Standardized
Unstandardized Coefficients
Model Coefficients T Sig.
B Std. Error Beta
1 (Constant) 6,659 1,258 5,293 , 000
Work ethic , 686 , 055 , 778 12,444 , 000

2 (Constant) 2,487 1,011 2,459 , 016
Work ethic , 298 , 062 , 344 4,770 , 000
Commitment , 585 , 071 , 597 8,267 , 000
Dependent variable: Performance

The results of statistical analysis show that the regression coefficient of work ethic variable (β1) is
0.344, meaning that if the work ethic has increased, the performance of the North Kalimantan Forestry Service
staff will increase by 0.344, assuming the variable organizational commitment is considered constant. The t test
results show that the t count of the work ethic variable is 4.770 with a significance value of 0.000 and less than
0.05, which means that Ho is rejected and H1 is accepted. The results of this study can be concluded that work
ethic has a significant effect on the performance of the employees of the North Kalimantan Forestry Service.
Based on the results of descriptive analysis and the results of statistical analysis, it can be concluded
that the work ethic of employees has a significant effect on the performance of the employees of the North
Kalimantan Forestry Service. This means that an increase in work ethic will have a positive impact on the work
obtained, both in quality and quantity, so that the predetermined targets and quality of work can be achieved as
expected, whereas if there is a decrease in the work ethic of employees it will have a negative impact on the
work results obtained, where the work target that has been set will not be achieved as expected.
The results of this study support the research of Sugiyanto dan Sutanto (2010) which states that work
ethic has a direct and significant effect on employee performance. (Ismail, Abdurrahman Affandi, 1982) states
that work ethic which consists of strong awareness, fundamental belief, total commitment and enthusiasm has a
significant influence on employee performance. With high work ethics owned by employees at work will result
in higher performance in terms of employee performance. carry out its job. Thus it can be concluded that there is
a positive correlation of work ethic with employee performance, where employees who have a good work ethic
will certainly produce higher performance. This research was conducted to determine the factors that affect the
performance of these employees.
B. Work Ethic Affects Organizational Commitment in North Kalimantan Provincial Forestry Service
Respondents' responses to work ethic indicate thatrelated statementEmployees have a lot of ideas and
take the initiative to complete work in first place with an average score of 3.81, while the lowest average score
of employee work ethics at the North Kalimantan Forestry Service is related to the statement that they have a
polite and friendly attitude when working on an average -Average score of 3.67.
The results of descriptive analysis show that having many ideas and taking the initiative to complete
work is a very important work ethic criterion for employees at work, while having a polite and friendly attitude
is considered not the most important thing in order to support the organization in order to achieve the expected
goals. However, if it is seen from the average value of respondents' responses to work ethic, the statements are
in a good category with an average value of 3.74. This shows that the statements put forward have a positive
value, which means that the work ethic is important for employees in working to support the achievement of the
organizational goals that have been previously set.
The results of statistical analysis show that the regression coefficient of work ethic variable (β1) is
0.778, meaning that if the work ethic has increased by 0.778, then the organizational commitment of North
Kalimantan Forestry Service employees will increase by 0.778. The t test results show that the t count of the
work ethic variable is 12.444 with a significance value of 0.000 and less than 0.05, which means that Ho is

rejected and H2 is accepted. The results of this study can be concluded that work ethic has a positive and
significant effect on organizational commitment of the employees of the North Kalimantan Forestry Service.
that the work ethic of employees has a significant effect on the organizational commitment of the North
Kalimantan Forestry Service. This means that an increase in work ethic will have a positive impact on the active
participation, partisanship and support of employees for the North Kalimantan Forest Service organization in
order to achieve the goals of the organization as previously set, whereas if there is a decrease in the work ethic
of employees it will provide negative impact on the alignments and support of employees to the organization of
the North Kalimantan Forestry Service, so that efforts to achieve organizational goals as expected will be
difficult to achieve.
The results of this study support the theory of (Sinamo, 2011) that work ethic is a set of positive
behaviors rooted in fundamental beliefs accompanied by total commitment to an integral work paradigm. This
proves that a good work ethic will have a positive impact on the creation of a person's commitment in doing his
job, in this study it means an increase in employee organizational commitment to the organization where he
works.
C. Organizational Commitment Affects Employee Performance in North Kalimantan Provincial

Forestry Service
Respondents' responses to organizational commitment indicate that the statement of the related North
Kalimantan Forestry Service employees feeling comfortable working in an agency is in the first place with an
average score of 3.77, then being responsible for the success of this agency is in second place with an average
score of 3.76 , then in the third order, which is responsible for the tasks assigned to work with an average value
of 3.71, wanting to continue a career in this agency is in fourth place with an average value of 3.67, the fifth
order is not wanting to change jobs To other agencies with an average score of 3.59 and who are in sixth place,
they feel they have this agency and are responsible for developing it with an average score of 3.53.
The results of the descriptive analysis regarding the respondents' responses to organizational
commitment show that the statement related to feeling comfortable working in an agency gets the highest score
and is in the first place with an average score of 3.77. This shows that feeling comfortable working in an agency
is a criterion for organizational commitment which is very important for employees in order to carry out work
according to their duties and responsibilities in order to achieve maximum and satisfying work results, while the
lowest average score of employee organizational commitment is related to the statement that they feel has this
agency and is responsible for developing that is in sixth place with an average score of 3, 53. This shows that the
feeling of having this agency and being responsible for developing is considered not a criterion of organizational
commitment that is important for achieving targets and maximum work results as expected. However, when
viewed from the average value of respondents' responses to work ethic, the statements are in the good category
with an average value of 3.67. This shows that the statements made by the North Kalimantan Forestry Service
employee have a positive value, which means that organizational commitment is important for employees to
support the achievement of good, maximum and satisfying work results. However, when viewed from the
average value of respondents' responses to work ethic, the statements are in the good category with an average
value of 3.67. This shows that the statements made by the North Kalimantan Forestry Service employee have a
positive value, which means that organizational commitment is important for employees to support the
achievement of good, maximum and satisfying work results. However, when viewed from the average value of
respondents' responses to work ethic, the statements are in the good category with an average value of 3.67. This
shows that the statements made by the North Kalimantan Forestry Service employee have a positive value,
which means that organizational commitment is important for employees to support the achievement of good,
maximum and satisfying work results.
The results of statistical analysis show that the regression coefficient of the organizational commitment
variable (β2) is 0.597, meaning that if organizational commitment is increased, the performance of the North
Kalimantan Forestry Service staff will also increase by 0.597, assuming the work ethic variable is considered
constant. The t test shows that the t count of the organizational commitment variable is 8,267 with a significance
value of 0,000 and less than 0.05, which means that Ho is rejected and H3 is accepted. The results of this study
can be concluded that organizational commitment has a positive and significant effect on the performance of the
employees of the North Kalimantan Forestry Service.
that organizational commitment has a significant effect on the performance of the employees of the North
Kalimantan Forestry Service. This means that an increase in organizational commitment will have a positive
impact on the achievement of the work obtained, where employees will have a strong commitment to participate
and play an active role in continuously managing and providing maximum support for the achievement of
organizational goals, so that employees will strive to do so. work well in order to achieve satisfactory work

results as organizational goals, whereas if there is a decrease in employee organizational commitment, it will
have a negative impact on the work obtained,
The results of this study support the theory of (Cut, 2010) which states that organizational commitment
is a strong and close feeling of a person towards the goals and values of an organization in relation to their role
in efforts to achieve these goals and values. Organizational commitment can grow because individuals have an
emotional attachment to the organization which includes moral support and accepting existing values and a
strong willingness to serve the organization. Employees who have organizational commitment will work
optimally because they want the success of the organization where they work. A strong organizational
commitment within an individual will cause the individual to strive to achieve organizational goals and a
willingness to exert effort on behalf of the organization in order to improve organizational performance. This
means, individuals who have high organizational commitment will produce good performance for the creation
of organizational goals. Conversely, individuals who have low organizational commitment will have low
attention to achieving organizational goals and tend to try to fulfill personal interests. These results also support
the research of Paik et al., (2007), which states that employee commitment to work has a positive impact on
employee satisfaction and performance. In this study, the commitment under study is related to the affective
commitment of employees at work. (Osa, I. G., Idowu, Amos, 2014) this research was conducted on industries
in Nigeria, where the findings of his research are: organizational commitment has a significant impact on
employee productivity and thereby improves organizational performance and effectiveness. Employee
commitment to the organization has a significant effect on organizational performance, which manifests
employee skills, performance and dedication to duty. Organizations that are motivated by providing salary and
wage increases, housing bonuses, transportation will have a significant effect on employee productivity, because
they will increase employee morale. Organizational commitment has a significant impact on employee
productivity and thereby improves organizational performance and effectiveness. Employee commitment to the
organization has a significant effect on organizational performance, which manifests employee skills,
performance and dedication to duty. Organizations that are motivated by providing salary and wage increases,
housing bonuses, transportation will have a significant effect on employee productivity, because they will
increase employee morale. Organizational commitment has a significant impact on employee productivity and
thereby improves organizational performance and effectiveness. Employee commitment to the organization has
a significant effect on organizational performance, which manifests employee skills, performance and
dedication to duty. Organizations that are motivated by providing salary and wage increases, housing bonuses,
transportation will have a significant effect on employee productivity, because they will increase employee
morale.
D. Organizational Commitment as a Mediating Variable Between Work Ethic and Employee

Performance inNorth Kalimantan Provincial Forestry Service
Respondents' Responses to Employee Performance indicate that the statement of the North Kalimantan
Forestry Service employee related not needing supervision to work properly is in the first place with an average
value of 3.74, then in the second place, namely maintaining the good name of individuals and organizations in
the work environment with an average value of 3.71, then being able to do work on a large scale is in third place
with an average value of 3.67, completing work on time is in fourth place with an average value of 3.66, the
fifth order is having the results of work that received praise with an average value of 3.65 and who are in sixth
place, namely having a good way of working at work with an average value of 3.62.
The results of descriptive analysis regarding respondents' responses to employee performance indicate
that the related statement does not require supervision in order to work properly obtains the highest score and is
in the first place with an average score of 3.74. This shows that not requiring supervision at work to work well is
a very important performance criterion for employees, where to do a good job and get optimal work results and
to satisfy employees does not require supervision. This is due to the high awareness in employees to always do
the best work for the organization. This is also a form of support, strong commitment and an active role of
employees in realizing organizational goals., while the lowest average score of the performance of the North
Kalimantan Forestry Service employees is related to the statement of having a good way of working at work
which is in the sixth position with an average score of 3,62.This shows that having a good way of working at
work is not a Performance criteria are important to be able to do good work and get maximum and satisfying
results. However, if seen from the average value of respondents' responses to performance, the statements are in
the good category with an average value of 3.68. This shows that the statements made by the North Kalimantan
Forestry Service employee have a positive value, which means that the performance is important for employees.
The results of statistical analysis show that work ethic is proven to have a significant effect on
employee performance. In step 2, when work ethic and organizational commitment are regressed together to
predict employee performance, work ethic remains a significant influence. Thus organizational commitment is

able to mediate the effect of work ethic on the performance of the North Kalimantan Forestry Service
employees.
that together the variables of work ethic and organizational commitment have a significant effect on the
performance of the employees of the North Kalimantan Forestry Service. The variability of the performance
variables of the North Kalimantan Forestry Service employees can be explained by the work ethic and
organizational commitment variables of 79%, while the remaining 21% is influenced by other variables not
examined.
CONCLUSION
A. Conclusion
Based on the results of this study, it can be concluded that work ethic has a significant influence
onEmployee performance, work ethic have a significant effect on organizational commitment, organizational
commitment has a significant effect on employee performance and collectively work ethic and organizational
commitment have a significant effect on employee performance. Organizational commitment is able to mediate
the effect of work ethic on employee performance.
B. Suggestion
The suggestions that the authors can give regarding this research are: 1) Work ethic has a significant
effect on organizational performance and commitment, therefore to increase organizational commitment and
employee performance, leaders need to maintain and improve employee work ethics. The work ethic needs to be
improved, because this will increase the active role and support of employees for the achievement of
organizational goals which is a form of increased employee commitment to the North Kalimantan Forestry
Service organization, especially related to the ability of employees to have the initiative and come up with
creative ideas in carrying out and resolving. work which is his responsibility so that the work can be carried out
better, more effectively and efficiently. Other than that, Leaders must improve conducive internal conditions by
increasing mutual care, courtesy at work and tolerance with fellow colleagues. This is a form of building a good
and solid work team in the organization so that organizational work can be carried out properly with maximum
and satisfying work results in order to realize organizational goals. 2. It is expected to continue to pay attention
to the conditions of organizational commitment that employees have, therefore the leadership is expected to
provide a sense of security and comfort to employees and invite all employees to feel like they belong to the
agency, so that employees will always stay in the organization and have a strong desire to support, participate
actively continuously in the organization and always strive and provide the best for the organization in order to
achieve organizational goals. 3) Other researchers can add independent variables such as work environment,
compensation, leadership style and so on for further research which is predicted to affect employee
performance.
REFERENCES
Abadi., A. dan F. (2018). Analisis Pengaruh Etos Kerja, Hubungan Kerja dan Pengembangan Karir Terhadap
Komitmen Organisasional Berdampak Pada Kinerja Karyawan. Jurnal Ikraith Ekonomika, 1(2).
Anwar Ikhsan. (2016). Analisis Pengaruh Budaya Organisasi Dan Kepuasan Kerja Terhadap Kinerja Karyawan
Non Dosen Pada Universitas Mercu Buana Jakarta. Jurnal Ilmiah Manajemen Dan Bisnis, 2(1).
Bernardin, H. J dan Russell, J. E. A. (2013). Human Resource Management, Sixth. Edition. McGrawHill.
Cut, Z. (2010). Knowledge Worker: Kerangka Riset Manajemen Sumber Daya Manusia Masa Depan. Penerbit
UNPAD Press.
Dr. Ir. Hj. Lubis, Yusniar, D. B. H. dan D. E. E. (2019). Manajemen dan Riset. Alfabeta.
Flippo, E. B. (2013). Personel Management (Manajemen Personalia), Edisi.VII Jilid II, Terjemahan Alponso S.
Erlangga.
Gomes, F. C. (2013). Manajemen Sumber Daya Manusia. Andi.
Griffin, J. (2010). Customer Loyalty, Menumbuhkan dan Mempertahankan Kesetiaan Pelanggan. Alih Bahasa
Dwi Kartini Yahya. Erlangga.
Ismail, Abdurrahman Affandi. (1982). Pendidikan Budi Pekerti, terj. Nasrun Rusli,. CV Toha Putra.
Luthans, F. (2014). Perilaku Organisasi, (Alih Bahasa V.A Yuwono, dkk). Edisi Bahasa Indonesia.
Mangkunegara, A. A. A. P. (2016). Manajemen Sumber Daya Manusia. Perusahaan. PT. Remaja Rosdakarya.
Marwansyah. (2016). Manajemen Sumber Daya Manusia. Edisi Dua. Cetakan keempat. Alfabeta, CV.
Mathis, R. L. dan J. H. J. (2012). Manajemen Sumber Daya Manusia. Buku 1, Alih Bahasa: Jimmy Sadeli dan
Bayu. (P. Hie (ed.)). Salemba Empat.

Osa, I. G., Idowu, Amos, O. (2014). the Impact of Organizational Commitment on 93 Employees Productivity: a
Case Study of Nigeria Brewery, Plc. International. Journal of Research in Business Management, 2(9),
2321–2886. https://doi.org/https://doi.org/10.1002/pmj.20137
Potter, P.A, Perry, A. G. (2015). Buku Ajar Fundamental Keperawatan : Konsep, Proses, dan Praktik. 4(2).
Prawirosentono, S. (2011). Kinerja. Alfabeta.
Sedarmayanti. (2017). Sumber Daya Manusia dan Produktivitas Kerja. CV Mandar Maju.
Sinamo, J. (2011). 8 Etos Kerja Profesional. Institut Dharma Mahardika.
Stephen, R. (2015). Perilaku Organisasi (Nurdin (ed.)). Penerbit Salemba Empat.
Sugiyanto dan Sutanto, H. (2010). Membangun etos kerja yang proaktif guna, Mengoptimalkan kinerja melalui
spiritual centered Leadership, employee empowerment, organizational Citizenship behavior. Buletin
Ekonomi., 8(2), 70–170.
Sukardewi, N. dkk. (2013). Kontribusi Adversity Quotient (AQ), Etos Kerja, Dan Budaya Organisasi Terhadap
Kinerja Guru SMA Negeri Di Kota Amlapura. E-Journal Program Pascasarjana Universitas Pendidikan
Ganesha Program Studi Administrasi Pendidikan, 4.
Wirawan. (2014). Evaluasi Teori, Model, Standar, Aplikasi dan Profesi. Rajawali Pers.

Analysis of Internal and External Factors After Implementing the

Improvement Strategy using SWOT Method
Prima Vitasari1, Gagok Setiawan2, Fuad Achmadi3, and Suriya Kumar Sinnadurai4
Department of Industrial Engineering, Institut Teknologi Nasional1,2,3
Malang, Indonesia
Center of Language, Universiti Malaysia Pahang4
Pahang, Malaysia
Email: primavitasari19@gmail.com
ABSTRACT
Destination: Every businessman is expected to have knowledge and strategies in managing the company so that
they can survive. Especially in small and medium enterprises (SME), a kind of business of this traditional cloth
product. The problem is that SMEs have difficulty in increasing sales of their products. This study presents an
internal and external analysis after the implementation of the improvement strategy
Design / methodology / approach: The method used was a survey to collect data. A total of one hundred
consumers participated in this study.
Findings: The results of the analysis show an increase in the calculation of the strength and opportunity factors,
a decrease in the points of weakness and threat factors. The total calculation shows an increase in efforts to
provide a sales improvement strategy. Meanwhile, the calculation for each point resulted in an increase of
fourteen points in both internal and external factors as a whole. The results of the quadrant position analysis also
show that SME is in a very profitable position by having strengths and opportunities.
Practical implications: From these results, it is hoped that SME will continue to make continuous
improvements by utilizing the strengths and opportunities they have. For further research, it can examine the
focus on priority improvements, namely product, promotion and implementation in depth.
Keywords: Marketing, Marketing Strategy, Pre Post Analysis, SME, SWOT
Received: March 30th, 2021

I. INTRODUCTION
Nowadays, traditional fabrics in Indonesia are no longer limited to being used as traditional clothing, but
the use of these fabric products has begun to develop for fashion needs such as bags, shoes and other
accessories. The fashion world has started to involve these traditional cloth products to make a variety of
contemporary products according to market demand. Thus, the use of traditional fabrics as a fashion component
is actually a business opportunity and promotion to introduce traditional cloth products in Indonesia. There are
various kinds of potential in the industrial sector in the archipelago that are produced by products from
traditional crafts. If identified, there are many kinds of traditional fabrics such as weaving, Songket, batik,
Sasirangan, Ulos and others. This type is still reduced to several more indicators, such as batik, there are various
variants of batik types in this archipelago. Likewise with various types of woven fabrics depending on the
respective regions.
One of them is a traditional cloth in the form of weaving from Lamongan Regency, East Java, which has
superior potential to enter foreign markets. The growth of SMEs in this area is quite fast. Like traditional cloth
Analysis of Internal and External Factors After Implementing Page │ 334

the Improvement Strategy using SWOT Method
Prima Vitasari, Gagok Setiawan, Fuad Achmadi, and Suriya Kumar Sinnadurai
products that have successfully entered the world market. There are approximately thirty traditional cloth
industry in this area and are able to absorb three thousand workers. Each product contains a number of
respective competitors who collectively compete each other and strive for excellence through unique
breakthroughs. For this purpose, organizations devise competitive strategies such as leadership, cost,
differentiation, and even combining the three. Understanding competitive intensity is the capital for shaping the
potential benefits of the organization. A number of studies provide evidence of the importance of marketing
intelligence in effective strategic marketing planning (Ayub et al., 2013; Trim, 2004; Wright, 2005). In the
marketing concept, research conducted by (Febriani Galih Saputro, Agus Dwi Sasono, Joko Suyono, Damarsari
Ratnasahara Elisabeth, 2020) found that customer relationships have a significant effect on consumer retention
in a company. Research conducted in 2020 (Avdullahi & Ademi, 2020) with the object of study on women
entrepreneurs stated that marketing is very important to gain information about market essentials and demands,
in the form of finance and communication on advertising.
Knowing this potential, basically the company must have a strategy in carrying out each of its business
activities in order to achieve the goals desired by the company (Mainardes et al., 2014). However, the company
must be able to analyze its business so that it can anticipate any problems. One method that is suitable for use is
the SWOT method. Several similar studies state that the results of the analysis of internal (strengths and
weaknesses) and external (opportunities and threats) aspects can be used to set future strategies and business
development plans (Orr, 2012; Phadermrod et al., 2019; Samejima, M., Shimizu, Y., Akiyoshi, M., and
Komoda, 2006). The strategy that is commonly used in determining the marketing strategy policy is SWOT or
commonly called Strengths, Weaknesses, Opportunities, and Threats. According to (Danca, 2005) states that a
SWOT analysis is a fundamental model that provides direction and serves as the basis for a marketing plan
development. The SWOT helps in identifying the core potential in an organization, namely the potential
strengths and their use in taking advantage of opportunities and warding off threats and identifying weaknesses
that the company has (Ayub et al., 2013).
A fundamental contribution to this research is making strategic proposals to increase sales of traditional
fabrics. Then the pre posttest analysis was carried out using the SWOT method, the pretest was to determine the
cause of the decline in sales of traditional cloth products. Meanwhile, the post test is to measure whether the
strategic proposals made are able to increase sales. Strategic proposals using QFD have been discussed in
previous studies (P. Vitasari, Fuad Achmadi, 2020)
Conducting a marketing analysis using the pre posttest where in previous studies not many have conducted
a study on marketing analysis using a comparison test before and after the implementation of marketing
strategies. The method used in this research is the method of Strength, Weakness, Opportunity, and Threat. This
study will produce an explanation of the results of the marketing analysis from internal and external factors after
an effort to increase sales strategies.
II. RESEARCH METHODOLOGY

This study uses the pre post test method, which is a method used to measure important attributes in a
marketing strategy (Pokryshevskaya, E., and Antipov, 2014).
A. Sample and Population

The population taken in this study are workers in production and management, as well as consumers. The
method used in this sampling is simple random sampling, which is a random sampling of members of the
population regardless of the strata in the population. The sample in this study was 100 people.
B. Research Instrument
The instruments used in this study are questionnaires and interviews. The following are the steps for
compiling the questionnaire:
1. Determining the variables / sub variables / indicators to compile a list of questions
2. Arranging the instrument grid. This grid contains the scope of the question material, the types of questions,
the number of questions, the time required.
3. Arranging the question items on the questionnaire with a total of 28 questions
4. Determining a scale with 4 answer choices. The answer choice scale strongly agree with value 4, agree with
value 3, disagree with value 2, and disagree with value 1.

C. Observing
The method used is a survey. This method is to obtain information from respondents about the strengths,
weaknesses, threats and opportunities currently facing the company. The estimated time for data collection was
three months.
III. RESULTS
This study conducted a pre-post test, using the SWOT method to analyze internal and external factors. This
study focuses on marketing analysis in order to find the factors of opportunity and constraints to constrained
sales. SWOT analysis 1 is used to identify opportunities and constraints that exist internally and externally.
Then made improvements using the 4P mix market strategy and QFD analysis. After that, the implementation of
the strategy is carried out, and the post test analysis is carried out. SWOT 2 is used to compare and to find out
the results of implementing the marketing strategy. The following is a description of the results and discussion
of SWOT 2 as follows.
Before presenting the results of SWOT 2, a glimpse of the results of the SWOT 1 analysis will be shown
and the marketing strategy is made. The results of the SWOT 1 calculation show that each weighted value on
the strength factor is 267.22, while the weakness factor has a total weighted score of 288.3. For external factors,
each of the results of the weighted value is 267.44 for the opportunity factor, and 323.45 for the threat factor.
This shows a high enough weight for weakness and threat factors, as well as a low score for strength and
opportunity.
Furthermore, this study made a strategy for improvement using the 4P and QFD methods. For the results of
these two methods, it was found that the dominant factor of improvement in products and promotions, both of
which had the highest point relationship matrix. In the product, it is advisable to make design developments,
variations, and new innovations. Meanwhile, for promotion, it is recommended to participate more frequently in
exhibitions to introduce their products to the wider community.
A. SWOT Analysis
After the improvement strategy is made, then the SME is implemented. The SME is asked to carry out the
appropriate improvement strategy and measure the results of the implementation using the SWOT method. The
following is an explanation of the results of the analysis using the SWOT method. Table 1 shows the results of
the internal factor analysis using the SWOT method. Each of the calculated weight values is 340.35 for the
strength factor, and 280.67 for the weakness factor. This shows that there is an increase in the stress factor of
73.13 points. And there was a decrease in the number of 7.63 in the weakness factor.
Table 1. SWOT Internal Factors

No Factor Portion Mean Portion × Score
Strengths
1 Capital and Investment 17 3.15 53.55
2 Human Resources Skills 16 3.61 57.76
3 Access to Government Markets 15 3.48 52.2
4 Product Variations 14 3.54 49.56
5 Management Skills 13 3.22 41.86
6 Products Price 13 3.46 44.98
7 Debt and Equity Ratio 12 3.37 40.44
Total 100 340.35
Weaknesses
1 Global/Regional Marketing Network 15 3.41 51.15
2 Access of Institutional Funding 14 3.09 43.26
3 Traditional Management 14 3.06 42.84
4 Labor Costs 13 3.12 40.56
5 Market Strategies 12 2.53 30.36
6 Product and Company Image 11 1.93 21.23
7 Certificate and Product Quality 11 2.37 26.07
8 IT Facilities 10 2.52 25.2
Total 100 280.67
Here are the results of the calculation of external factors using the SWOT method as shown in Table 2
below. The results show that the opportunity factor value is 324.82, while the threat factor value is 292.29.

Comparison of the pre post results can be seen that there is a point change in the opportunity factor which
increased by 1.37 points. As for the threat factor, there was a decrease of 42.78 points.
Table 2. SWOT External Factors

No Factor Portion Mean Portion × Score
Opportunities
1 Woven Fabric Business Sector 19 3.6 68.4
2 “Return” Business Ability 18 3.3 59.4
3 Big Market Opportunities for Superior
17 3.48 59.16
Products
4 Human Resources Development 17 3.25 55.25
5 National Banking Conditions 15 3.09 46.35
6 Fulfillment of Product Delivery 14 2.59 36.26
Total 100 324.82
Threats
1 Market Globalization 17 2.75 46.75
2 Similar Product Competitors 15 3.01 45.15
3 Raw Material Prices 15 3.53 52.95
4 Technology Changing 14 2.64 36.96
5 Industrial Relationship 14 2.58 36.12
6 Labor Issues 13 3.32 43.16
7 Integrity System for Standard Product 12 2.6 31.2
Total 100 292.29
From the results of the analysis, it can be said that there were changes before and after the proposed
strategy was made. Even though the points obtained were not too big, especially on the factors of opportunity
and weakness. This is possible because the two points of improvement, namely product and promotion, have not
been carried out optimally. As the factor of weakness, the highest score is the weakness of the lack of network
marketing. Furthermore, the threat factor has the highest value of the threat of raw material prices so that it
becomes an obstacle in making product variants and designs. However, these results can be claimed as an
increase in efforts to provide sales improvement strategies. Therefore, SME must continue to make continuous
improvements in implementing some of these improvement proposals.
B. Comparison of Pre Post Analysis Results

The results of the comparison of the SWOT 1 and SWOT 2 calculations in detail are described in Table 3.
The results of the calculation are an increase at 14 points, fixed at 3 points, and weak at 11 points. With the
elaboration of the results as follows, the overall points on the strength factor show an increase, the weakness
factor is more dominant on the weak result, the overall points on the opportunity factor also show an increase in
results, and the threat factor shows a weak result. This is consistent between the total calculation and the
calculation of each point, with exposure to the same results.
Table 3. SWOT Pre Post Comparison

Comparison Pre Post Note
Strengths
1 Assets and Investment 3.09 3.15 0.06 Increase
2 Human Resources Skills 2.58 3.61 1.03 Increase
3 Access to Government Markets 2.57 3.48 0.91 Increase
4 Product Variations 2.81 3.54 0.73 Increase
5 Management Skills 2.67 3.22 0.55 Increase
6 Products Price 2.37 3.46 1.09 Increase
7 Debt and Equity Ratio 2.5 3.37 0.87 Increase
Weaknesses
1 Global/Regional Marketing Network 3.41 3.41 0 Stable
2 Access of Institutional Funding 3.19 3.09 -0.1 Weak
3 Traditional Management 3.13 3.06 -0.07 Weak
4 Labor Costs 3.52 3.12 -0.4 Weak
5 Market Strategies 2.55 2.53 -0.02 Weak
6 Product and Company Image 1.94 1.93 -0.01 Weak
7 Certificate and Product Quality 2.37 2.37 0 Stable
8 IT Facilities 2.49 2.52 0.03 Increase
Opportunities

1 Woven Fabric Business Sector 3.45 3.6 0.15 Increase

2 “Return” Business Ability 2.58 3.3 0.72 Increase
3 Big Market Opportunities for Superior Products 2.58 3.48 0.9 Increase
4 Human Resources Development 2.7 3.25 0.55 Increase
5 National Banking Conditions 2.27 3.09 0.82 Increase
6 Fulfillment of Product Delivery 2.26 2.59 0.33 Increase
Threats
1 Market Globalization 3.45 2.75 -0.7 Weak
2 Similar Product Competitors 3.29 3.01 -0.28 Weak
3 Raw Material Prices 3.53 3.53 0 Stable
4 Technology Changing 2.94 2.64 -0.3 Weak
5 Industrial Relationship 2.97 2.58 -0.39 Weak
6 Labor Issues 3.44 3.32 -0.12 Weak
7 Integrity System for Standard Product 2.92 2.6 -0.32 Weak
C. The Difference of Quadrant Position Results

The quadrant analysis during the pre-test shows that the company is placed in quadrant 4, which is a very
unfavorable situation i.e. the company faces various threats and there are weaknesses from internal factors.
Following are the results of the analysis with a diagram to determine the quadrant after the improvement
strategy is carried out.
70
50
30
10
-120 -100 -80 -60 -40 -20-10 0 20 40 60 80 100 120
-30
-50
-70
Figure 1. Quadrant Analysis Results
Furthermore, after the improvement and implementation strategies are made, the quadrant analysis during
the post test shows that the company is in quadrant 1 position, as shown in Figure 1. Where the position is very
profitable for the company by having the strength and opportunity to increase sales. Some of the strengths of
this SME include having human resources who have skills in making this traditional cloth and have sufficient
capital. Meanwhile, SME has several points of opportunity, such as the business sector and promising market
opportunities.

IV. CONCLUSION
This paper has presented an analysis of internal and external factors after implementing the improvement
strategy using SWOT method. Analysis of internal and external factors after implementing improvements using
the SWOT method shows an increase in the calculation of the strength and opportunity factors. There is a
decrease in the points of weakness and threat factors. Although the total calculation results obtained have not
shown a large number, it has shown changes in results before and after the improvement. The calculation of
each point shows that there are fourteen points that have increased. Supported by the results of the quadrant
position analysis which is very profitable for the company by having the strength and opportunity to increase
sales. The SME has several strength points and opportunities including human resource skills, capital adequacy,
and promising market opportunities for this traditional cloth business. Therefore, SMEs must continue to make
continuous improvements by utilizing these strengths and opportunities.
V. ACKNOWLEDGEMENT
My appreciation to LPPM ITN Malang for research grant.
REFERENCES
Avdullahi, A., & Ademi, V. F. (2020). Lending Conditions and Marketing Strategies Of Financial Institutions in
Kosovo to Support Access to Finance for Women Entrepreneurs. IJEBD (International Journal Of
Entrepreneurship And Business Development), 3(02), 111–120. https://doi.org/10.29138/ijebd.v3i02.980
Ayub, A., Aslam, M. S., Razzaq, A., & Iftekhar, H. (2013). A conceptual framework on evaluating SWOT
analysis. European Journal of Business and Social Sciences, 2(1), 91–98. http://www.ejbss.com/recent.aspx
Danca, A. C. (2005). SWOT analysis. Website–Www. Stfrancis. Edu.
Febriani Galih Saputro, Agus Dwi Sasono, Joko Suyono, Damarsari Ratnasahara Elisabeth, A. T. B. B. (2020).
The Effect of Customer Relationship Marketing and Service Quality on Customer Retention with Customer
Satisfaction as A Mediating Variable In Forwarding Companies In Surabaya. International Journal of
Entrepreneurship and Business Development, 03(04), 470–478.https://doi.org/10.29138/ijebd.v3i4.1217
Mainardes, E. W., Ferreira, J. J., & Raposo, M. L. (2014). Strategie a koncepty strategického managementu:
Jsou pro studenty managementu rozpoznatelné? E a M: Ekonomie a Management, 17(1), 43–61.
https://doi.org/10.15240/tul/001/2014-1-004
Orr, B. (2012). Conducting a S.W.O.T. Analysis for Program Improvement. 3(6), 381–384.
https://doi.org/10.5176/2251-1814_eel12.18
P. Vitasari, Fuad Achmadi, and G. S. (2020). Quality Function Deployment Analysis on the Marketing of
Traditional Fabric. International Journal of Scientific Engineering and Research (IJSER), 8(3).
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-Performance Analysis based SWOT
analysis. International Journal of Information Management, 44, 194–203.
https://doi.org/10.1016/j.ijinfomgt.2016.03.009
Pokryshevskaya, E., and Antipov, E. (2014). A comparison of methods used to measure the importance of
service attributes. International Journal of Market Research, 56, 283–296.
Samejima, M., Shimizu, Y., Akiyoshi, M., and Komoda, N. (2006). SWOT Analysis Support Tool for
Veriﬁcation Of Business Strategy. Proceedings of IEEE International Conference on Computational
Cybernetics, 1–4.
Trim, P. R. . (2004). The Strategic Corporate Intelligence and Transformational Marketing Model. Marketing
Intelligence & Planning, 22(1), 240 – 256.
Wright, S. (2005). The CI marketing interface. Journal of Competitive Intelligence and Management, 3(2), 3–7.

The Influence of Customer Satisfaction and Service Quality

Towards Customer Loyalty in PT. Mitra Andalan Trans
Anugerah
Mudayat
Academy of Administration and Management Barunawati Surabaya
Surabaya, East of Java, Indonesia
Email: mudayat@stiamak.ac.id
ABSTRACT
Purpose:. The formulation of the problem in this study is how the relationship between customer satisfaction
and service quality to customer loyalty at PT. Trans Anugerah Mainstay Partners. The study population was all
expeditionary service users, while the sample taken was 45 respondents. Before the data were analyzed, the data
quality was tested using validity and reliability tests.
Design/methodology/approach: This research is a quantitative method and data analysis techniques with a
multiple linear regression.
Findings: The results showed that the questionnaire items were valid and all variables were reliable. Based on
the results of the analysis and discussion, it can be concluded that the variable Customer Satisfaction (X1) has a
significant relationship with Customer Loyalty (Y), meaning that if the customer is satisfied, it will increase
Customer Loyalty. Service Quality Variable (X2) has a significant relationship with Customer Loyalty (Y) This
means that if the quality of service provided is good, then customer loyalty will increase. Customer satisfaction
and service quality have a significant effect together on customer loyalty, meaning that if customer satisfaction
and service quality are better, it will increase customer loyalty. The variable that has the most dominant
influence is customer satisfaction with a beta value of 0.608.
Keyword: Customer Catisfaction, Customer Loyalty, Quality of Service.

Published: March 31st, 2021
I. INTRODUCTION
A. Background Information
The current global economic advancement encourages the rapid growth of the service sector. Many
business opportunities arise from this sector as well as many job opportunities created from the service sector.
This is likely due to the increasing influence of the service sector in the economy. Currently, many service
businesses are encountered in everyday life, one example is transportation service companies.
A transportation service company is a unit of economic activity that located in a certain place that provides
transportation services for passengers and or goods from one place to another by using motorized or motorized
transportation by land, or air and receiving remuneration. It can be said that transportation services at this time
are a service that is needed for various aspects of life. People who will use private vehicles or public
transportation to take themselves to their destination, likewise companies need a transportation fleet to carry
their goods from warehouses to reach consumers in the market.
The Influence of Customer Satisfaction and Service Quality Page │ 340
Towards Customer Loyalty in PT. Mitra Andalan Trans Anugerah
Mudayat
PT. Mitra Andalan Trans Anugerah is a transportation service business entity that is engaged in sea
transportation, PT. Trans Anugerah Andalan also continue to develop their careers so that all of their customers
feel loyal to existing services in accordance with their vision.
B. Formula of The Problem

After describing the problems above, the problem formulations are as follows:
1. Does customer satisfaction have a partial effect on customer loyalty at PT. Mitra Andalan Trans Anugerah ?
2. Does quality service have a partial effect on customer loyalty at PT. Mitra Andalan Trans Anugerah ?
3. Do customer satisfaction and quality service simultaneously influence customer loyalty at PT. Trans
Anugerah
4. Mainstay Partner?
C. Research Purpose
The purpose of this study are as follows:
1. To determine the influence of customer influence partially on customer loyalty at PT. Trans Anugerah
Mainstay
2. Partners; To determine the effect of quality service partially on customer loyalty at PT. Trans Anugerah
Mainstay Partners; Todetermine customer satisfaction and quality service simultaneously on customer
loyalty at PT. Trans Anugerah Mainstay Partners.
1.4 Benefits of Research

The following benefits are obtained:
1. For the author
a. Increase the knowledge and ability of the author in the field of research, and increase the writer's
insight about the application of science and practice;
b. To see the effect of customer satisfaction and quality of service to customer loyalty.
2. For the Company
a. It is used as a consideration or input that can be used to improve the quality of human resources in
protecting customers;
b. As a company reference to find out how much customer satisfaction and the quality service of the
company is.
3. For Readers
a. As a means of readers to increase understanding and insight about information sources;
b. As a reference material for other researchers who will conduct research on the same object or problem.
II. METHODOLOGY
Theory Description :
A. Marketing Management
Assauri, (2011) explains that marketing management is an activity of analyzing, planning, implementing,
and controlling programs designed to form, build, and maintain profits from exchanges through target markets
in order to achieve long-term organizational (company) goals.
According to Suparyanto et al., (2015) marketing management is the process of analyzing, planning,
organizing and managing programs that include conceptualization, pricing, promotion and distribution of
products, services and ideas designed to create and maintain profitable exchanges with target markets. to
achieve company goals.
According to Suryana & Si, (2008) marketing is an activity that studies the needs and desires of
consumers, produces goods or services, determines prices, uses, and applies goods and services, while Basu,
(2008) states that marketing is an overall system of activities. businesses that plan to plan, price, arrange, and
arrange goods and services that satisfy the needs of both existing buyers and potential buyers.
From the above explanation, it can be concluded that marketing management is an activity of marketing or
sales activities to make it more organized than the number of goods sold.
B. Quality of Service
According to Tjiptono, (2014) states that "service quality is the level of excellence expected and control
over that level of excellence is to meet customer satisfaction". According to (Maulidin, 2010)states that "service

Mudayat
quality is how far the difference is between reality and customer expectations of the subscriptions they receive
or receive".
According to Utami, (2010)service quality is also a complex construct, and is most investigated in the
marketing discipline. Quality can be seen broadly as an advantage or privilege and can be defined as the
delivery of service that is relatively special or superior to customer expectations, meaning that the company does
not provide good service quality.
Good and bad quality of services are the responsibility of all parts of the company organization.
Therefore, whether the quality of the service is good or not depends on the service provider in meeting the
expectations of its customers consistently, Tjiptono, (2012).
Based on the above understanding, it can be concluded that service quality is an activity that aims to guard
or direct consumers to be more loyal to the products or services of the company being sold. In other words, the
concept of service quality is to provide good service to consumers so that consumers feel happy and satisfied.
C. Customer Satisfaction
According to Lovelock & Wright, (2010), "Satisfaction is an attitude that is decided based on the
experience gained. Satisfaction of consumer orders regarding the characteristics or features of a product or
service, or the product itself, which provides a level of consumer satisfaction related to meeting consumer needs.
Customer satisfaction can be created through quality, service and value. The key to generating customer loyalty
is providing high customer value.
According to Kotler & Keller, (2012), customer value is the comparison of customers between all profits
and all costs that must be incurred to receive a given offer. Total customer costs are a group of costs that are
used in appraising, obtaining and using a product or service. Because customer satisfaction is highly dependent
on customer perceptions and expectations, as a product supplier it can be seen from the factors that influence it.
According to Tjiptono, (2012) customer satisfaction is a customer response to the evaluation of perceptions
of the difference between initial expectations before purchase (or other performance standards) and the
perceived actual performance of the product after using or consuming the product.
According to Tjiptono, (2012) consumer satisfaction is a situation shown by consumers when they realize
that their needs and desires are as expected and are met properly.
Based on above definition it can be concluded that customer satisfaction is the consumer's feelings that
arise after comparing between customer expectations and performance that occurs in the field. And the concept
of customer satisfaction in accordance with the explanation above is a sense of satisfaction from the services
provided by the company to consumers, the improvement given is good or quality, it will make consumers
satisfied.
D. Customer Loyalty
Loyalty, according to Griffin, (2012), is a consumer who is said to be loyal or consumer who shows
regular buying behavior or there is a condition that requires consumers to buy a little twice in a certain time.
Loyalty according to Tjiptono, (2012) is the behavior of self-repurchasing, purchasing certain brands
repeatedly (depending on whether it is the only brand available, the cheapest brand and so on).
Customer loyalty is the behavior to make repeated purchases and to build customer loyalty to a product or
service produced by a business entity takes a long time through a repetitive buying process, Olson, (1993) In
Sukmawati, (2011).
Customer loyalty according to Drake et al., (1998), in Sukmawati, (2011) states that loyal customers
always make repeat purchases, which in turn guarantees a stream of income for the company, has a tendency to
buy more, is willing to pay higher price, which will have a direct impact on the profits earned by the company.
According to Hermawan, (2003), in Hurriyati & Sofyani, (2010) loyalty is a form of basic human need to
have, support, get a sense of security and build attachments and create emotional attachments. Meanwhile,
loyalty in the Oxford English dictionary is: "a strong feeling of support and loyalty; someone shows firm and
costant support". From this definition, there is the word strong feeling, which means the depth of human feelings
towards something, whether it is family, friends, organizations, or brands. This feeling is the main element of
customer closeness and loyalty.
According to Oliver, (1996) in Hurriyati & Sofyani, (2010) is as follows: "customer loyalty is definitely
committed to rebuy or repatronize a preferred product or service consistently in the future, despites situational
influence and marketing efforts having the potential to cause switching behavior ". From the above definition, it
can be seen that loyalty is a deep enduring customer commitment to re-subscribe or consistently repurchase
selected products or services in the future, even though the influence of the situation and marketing efforts has
the potential to cause behavior change.
So from the definition of customer loyalty above, it can be concluded that, customer loyalty is the
continuous purchase of products sold or services provided to consumers by providing a sense of comfort or

Mudayat
satisfaction. and the concept of customer loyalty is that the satisfaction received by consumers will make
consumers loyal to companies that have provided excellent or quality service.
E. Mind Mapping
1. Relationship between Customer Satisfaction and Customer Loyalty (H1)
Customer satisfaction has an important role in shaping customer loyalty. In a market with a high level of
competition, companies must compete to provide satisfaction to their customers so that customers have high
loyalty to the services offered by the company. If the satisfaction felt by the customer is small, the less loyalty
generated by the customer and this can have an impact on the customer moving to a competing company that
offers better service.
2. Relationship between Service Quality and Customer Loyalty (H2)
The ability of employees in technical areas of the company, such as service and in-depth knowledge of
products or services, will encourage increased customer loyalty. The competence of employees will give
satisfaction to customers because they know that they are making purchases of products or services sold by
companies and employees who have good sales skills so that consumers will feel comfortable in their purchases
and become loyal to them.
The quality of service is very important for the company because it will lead the company to a better or a
worse one. If the quality of service provided by the company to consumers or customers is good, it will make a
good image for the company, while the quality of service provided by the company to customers or consumers
is not good, it will bring a bad image to the company and will keep loyal customers away.
3. Relationship between Customer Satisfaction and Service Quality with Customer Loyalty (H3)
The quality of service provided is in accordance with consumer expectations and provides customer
satisfaction, will make consumers loyal to the company. While the quality given is bad and does not satisfy
consumers, there will be no loyalty from customers.
The following is an overview of the mind mapping in this study:
Figure 1. Mind Mapping
III. RESEARCH METHOD

A. Data Collecting Method
1. Observation
According to Arikunto, (2010), "observation is a direct and systematic observation of the symptoms being
studied". By using the observation method, the authors make direct observations of the work environment at PT.
Trans Anugerah Mainstay Partners.
Questionnaire
According to Arikunto, (2010)"a questionnaire is a number of questions or written statements that are used
to obtain information from respondents in the sense of personal reports or known things". In this study, the
authors sent questions made in writing via email, these questions contain certain choices that describe the
quality of service and customer satisfaction with customer loyalty PT. Trans Anugerah Mainstay Partners. The
results used in this study:
a. Strongly Agree (SS) score 5
b. Agree (S) score 4
c. Simply Agree (CS) score 3
d. Disagree (TS) score 2
e. Strongly Disagree (STS) score 1
2. Documentation
According to Arikunto, (2010)"The documentation method is looking for data about things or variables in
the form of notes, transcripts, books, newspapers, magazines and so on". This study also uses documentation
methods to collect data obtained from PT. Mitra Andalan Trans Anugerah as material for conducting research.

Mudayat
3. Interview
According to Sugiyono, (2012) "interviews are used as a data analysis technique. Researchers conduct a
preliminary study to find problems that must be researched and also observe things from respondents who are
deeper and the number of respondents is small". The interview used by researchers is to ask questions used to
find out the data and researchers can study the data obtained about the effect of customer satisfaction and
service quality on customer loyalty at PT. Trans Anugerah Mainstay Partners as well as testing the hypothesis.
B. Data Analysis Technique

Data analysis is the process of finding and systematically arranging data obtained from interviews, field
notes, and documentation, by organizing data into categories, describing them into units, synthesizing, arranging
into patterns, choosing which ones are important and who will learn, and make conclusions so that they are
easily understood by themselves and others Sugiyono, (2012).
The analysis technique used in this research is multiple linear regression analysis, by previously testing the
quality of the data obtained using validity and reliability tests. And using the classic assumption deviation test
and hypothesis testing.
Data Quality Test
1. Validity Test
The data validity test is used to measure whether a questionnaire is valid or not. A questionnaire can be
said to be valid if there is a similarity between the data collected and the data that actually occurs on the object
under study Sugiyono, (2012) The validity test is done by comparing the value of r hitung (for each question item
can be seen in the corrected item-total correlations column, with rproductmoment by looking for degree of freedom
(df) = N - k, in this case N is the number of samples, and k is the number of variables. independent research. If
rcount> rproductmoment, and is positive, then the question (indicator) is said to be valid (Ghozali, 2014).
2. Reliability Test
Reliability test is a tool used to measure questionnaires which are indicators of variables. A questionnaire
is said to be reliable or reliable if someone's answer to a statement is consistent or stable over time Ghozali,
(2014). The reliability test that will be used in this study is to use the SPSS facility, namely the Cronbach Alpha
statistical test. The results if a variable is declared reliable if the Cronbach alpha value is> 0.60 Ghozali, (2014).
3. Classic Assumption Test
The classical assumption test according to Ghozali, (2014) aims to see whether the regression estimator is
the best unbiased collinear estimator. To get the most precise equation, the regression parameters are used to
look for the Ordinary Least Square (OLS) method. The OLS regression method can be used as an unbiased
estimation tool if it meets the Beast Linear Unirement Estimation (BLUE) requirements. Therefore, a classic
assumption test is needed for a model that has been formulated, which includes the normality test,
multicollinearity test, heteroscedaticity test, and linearity test.
4. Normality Test
The normality test aims to test whether in the regression model the confounding or residual variables have
a normal distribution as it is known that the T test and F test assume that the residual value follows a normal
distribution. There are two ways to wait whether the remainder is normally distributed or not, namely by graph
analysis and statistical test of Ghozali, (2014);
5. Multicollinearity Test
The multicollinearity test aims to test whether the regression model finds Ghozali, (2014)independent
variables. Regression models that should not occur among the independent variables. If this happens, there is a
multicollinearity problem.
Ghozali, (2014), measuring multicollinearity can be seen from the TOL (Tolerance) and VIF (Varian
Inflation Factor) values. The cut off value that is commonly used to indicate multicollinearity is a Tolerance
value ≤ 0.1 or equal to a VIF value ≥ 10.
The hypothesis used in multicollinearity testing is:
H0: VIF> 10, there is multicollinearity;
H1: VIF <10, there is no mulicollinearity.
6. Heteroscedasticity Test
The purpose of this is to test whether a regression model is used to test the analysis. The way to see
nothing, heteroscedasticity, is to look at the graph. If there is a certain pattern, such as the dots forming a certain
pattern (wavy, widening then narrowing) it indicates that there has been heteroscedasticity or heteroscedasticity
is not occurring Ghozali, (2014).
Detection of no heteroscedasticity can be done by seeing whether a certain pattern is on the scatterplot
chart between SRESID and ZPRED where the Y axis is Y which is not predicted, and the X axis is the residual
(Y prediction - Y actually) that has been studentized. By using the basis of analysis as follows: (1) if there is a

Mudayat
certain pattern, such as the dots forming a certain regular pattern (wavy, widening then narrowing), then the
indication has occurred heteroscedasticity, (2) if nothing is clear, and the points spread above and below the
number 0 (zero) on the Y axis, so there is no heteroscedasticity Ghozali, (2014);
7. Linearity Test
Used to see whether the model used is correct or not. With the linearity test, information will be obtained
whether the empirical model should be linear, quadratic or cubic (Ghozali, 2014).In this study using the SPSS
program assistance with a test for linearity at a significant level of 0.05. The decision making method is:
if the significance at Deviation From Linierity> 0.05, then the relationship between the two variables
is linear;
If the significance at Deviation From Linierity <0.05, then the relationship between the two variables
is not linear.
C. Multi Linear Regression

Regression analysis is used to draw a line that shows the direction of the relationship between variables,
and is used to make predictions. This analysis is used to examine the relationship between two or more
variables, especially for patterns of relationships whose models are not yet fully known. In this study, the
equation model in multiple linear regression analysis is as follows:
Y = α + β1X1 + β2X2 + e
Information:
Y = Customer Loyalty
α = Constant
β1 = Customer satisfaction regression coefficient
β2 = Service quality regression coefficient
X1 = Customer Satisfaction
X2 = Quality of Service
e = Estimation error
1. Multiple Determination Coefficient Analysis

The coefficient of determination (R2) in essence measures how far the model's ability to explain the
variation in the dependent variable. The coefficient of determination is between zero and one. The small value
of R2 means that the ability of the independent variables to explain the variation in the dependent variable is
very limited. A value close to one means that the independent variables provide almost all the information
needed to predict the dependent variables. The fundamental weakness of the use of the coefficient of
determination is the bias towards the number of independent variables included in the model, each additional
one independent variable, R2 must increase regardless of whether the variable has a significant effect on the
dependent variable. Therefore, many researchers recommend using the R 2 value when evaluating Ghozali,
(2014)best regression model.
a. T Test
The statistical T-statistic test shows the extent to which the relationship of one independent variable
explains the dependent variable (Ghozali, 2014). In this study, the independent influence test variable (X)
consisting of: customer satisfaction (X1) and service quality (X2) individually affects changes in the value of the
dependent variable (Y), namely customer loyalty. H0 is accepted if the value of t <t table with a significance of
more than 0.05 and H0 is rejected if the value of t> t table with a significance of less than 0.05;
b. F Test
The F statistical test in the survey is to show whether all the variables included in the model have a joint
relationship to the dependent variable (Ghozali, 2014) In this study, testing the independent relationship variable
(X) which consists of: customer satisfaction (X1) and service quality (X2) which individually influence changes
in the value of the dependent variable (Y), namely customer loyalty. H0 is accepted if the calculated F value <F
table with a significance of more than 0.05 and H0 is rejected if the calculated F value> F table with a
significance less than 0.05.
IV. RESULT AND DISCUSSION

A. Test Data
In this study, questionnaires were distributed to 45 respondents in order to obtain primary data, data that
needed to be tested with several tests. It is intended that this research can present accurate data. The first test is a
questionnaire test which includes validity and reliability tests. The second test is the classic assumption test

Mudayat
which consists of normality test, multicollinearity test, heteroscedasticity test, and linearity test. The third test is
multiple linear regression analysis and the fourth test is the hypothesis test using the F test simultaneously
(simultaneously) and the T test to see partially. And here are the test results:
1. Validity Test and Reliability Test
Based on data from the distribution of questionnaires to 45 respondents, it can be said that the validity or
the criteria used in obtaining the data is valid or reliable. So it is necessary to test the validity and reliability
testing. The validity test was carried out using the Product Moment coefficient method with a significant level
of 0.05, while for the reliability test, the Crobanch's Alpha method was used.
a. Validity Test
The validity test is done by looking at the rcount and table of each item which is carried out through data
processing carried out by the SPSS program. Each item is said to be valid if r count> r table. The results of the
validity test in this study are as follows:
Validity Test of Customer Satisfaction Variables (X1)
Based on the results of data processing, the validity test of the customer satisfaction variable (X 1) is the
customer satisfaction variable consisting of 5 statement items. The correlation of each item states that it has a
value greater than the table with a value of r table 0.294 so that based on the validity test it shows that all
statement items on the customer satisfaction variable are declared valid and can be used as a research
instrument. With these results it can also be said that the value of the respondents is positive which gives good
results on customer satisfaction.
Validity Test od Service Quality Variables (X2)
Based on the results of data processing, the validity test of the service quality variable (X 2) is the service
quality variable consisting of 5 statement items. The correlation of each item shows a value greater than the
table with a value of r table 0.294 so based on the validity test it shows that all statement items on the service
quality variable are declared valid and can be used as a research instrument. With these results it can also be said
that the value of the respondents is positive which gives good results on service quality.
Validity Test of Customer Loyalty Variables (Y)
Based on the results of data processing, the validity test of the customer loyalty variable (Y) is the
customer loyalty variable consisting of 5 statement items. The correlation of each item shows a value greater
than the table with a value of r table 0.294 so that based on the validity test, it shows that all statement items on
the customer loyalty variable are declared valid and can be used as a research instrument. With these results it
can also be said that the value of the respondents is positive which gives good results on customer loyalty.
b. Reliability Test
Reliability test is a tool used to measure questionnaires which are indicators of variables. A questionnaire
is said to be reliable or reliable if a person's answer to a statement is consistent or stable over time (Ghozali,
2014). The reliability test that will be used in this study is to use the SPSS facility, namely the Cronbach Alpha
statistical test. The test results can be said to be reliable with Cronbach's Alpha> 0.6 (Malhotra, 2012). The
results of the reliability test of this study show that the Cronbach Alpha value of the customer service
satisfaction (X1), quality (X2), and customer loyalty (Y) variables is greater than 0.6 so that it can display trusted
data, which means that the questionnaire can be used in research.
2. Classic Assumtion Test
a. Normality Test
The normality test aims to test whether in the regression model confounding or residual variables have a
normal distribution as it is known that the t and F tests assume that the residual value follows a normal
distribution. There are two ways to wait whether the remainder is normally distributed or not, namely by graph
analysis and statistical tests. The normality test serves to see the normality (normal or not) of the confounding
factors (error term). As is well known, the confounding factor is assumed to have a normal distribution, so that
the t test (partial) can be performed. To be able to use a normality regression model, this study uses the Normal
P-P Plot of Regression Standardized Residual method. The basis for the decision is that if the data spreads far
from the diagonal line or does not follow the direction of the diagonal line, the regression model does not meet
the assumption of normality. In fact, if the data does not spread far from the diagonal line or follows the
direction of the diagonal line, the regression model fulfills the assumptions of the statistical results, and the
results of the normality test on the graphic image show that the data distribution (points) on the diagonal graph
axis does not spread far from the diagonal line or following the direction of the diagonal line, the model meets
the assumptions of normality. Besides using a test that is equipped with statistical tests, one of them is by using
the Kolmogorov-Smirnov non-parametric statistical test. If the significance value has a value> 0.05, it can be
said that the remainder is normally distributed. The test result is the Kolmogorov-Smirnov Z value of 0.976 with
a significance level of 0.296, which means that the regression model is normally distributed because the level of
significance is> 0.05.
Mudayat
b. Multicolinearity Test
The multicollinearity test is used to test whether there is a regression model where there is correlation
between the independent variables, namely customer satisfaction (X1) and service quality (X2).
Multicollinearity can be seen from the Tolerance and Variance Invlation Factor (VIF) values. If the Tolerance
value <0.1 or Variance Invlation Factor (VIF)> 10, multicollinearity occurs. If the Tolerance value> 0.1 and the
Variance Invlation Factor (VIF) value <10, multicollinearity does not occur. The result of the multicollinearity
test in this study is the variable value of tolerance for customer satisfaction (X 1) and service quality (X2) which
is 0.950, which is greater than 0.10. Meanwhile, the VIF value of customer satisfaction (X 1) and service quality
(X2), which is 1,053, is smaller than 10.00, so that there can be no multicollinearity.
c. Heteroscedasticity Test
The purpose of this test is to test whether in the regression model there is an inequality of variance from
the residuals of one observation to another.The way to see nothing, heteroscedasticity, is to look at the graph. If
there is a certain pattern, such as the dots forming a certain pattern (wavy, widening then narrowing) it indicates
that there has been heteroscedasticity or there is no heteroscedasticity Ghozali (2011). The independent variable
is tested for customer satisfaction (X1), service quality (X2), in the regression model. The problem of
heteroscedasticity in this study was detected using a scatterplot, namely by plotting standardized predictors with
standardized residual models. If there is no clear pattern, and the dots spread above and below the 0 on the Y
axis, then there is no heteroscedasticity. The results of the heteroscedasticity test in this study show that the
scatterplot does not form a certain pattern and the point spreads above and below the number 0 on the Y axis, so
there is no heteroscedasticity.
d. Linearity Test
Linearity test serves to see the condition of the relationship between the independent variables and the
connected variables. The basis for decision making in the linearity test is if the Sig. Deviation from linearity>
0.05 then there is a linear relationship between the independent variable and the dependent variable, but if the
value is Sig. Deviation from linearity <0.05, so there is no linear relationship between the independent variable
and the dependent variable. The linearity test in this study is that X1 against Y has a Sig. The deviation from
linearity> 0.05 and X2 with respect to Y has a Sig. Deviation from linearity> 0.05 and it can be ignored that
there is a linear relationship between the variables X and Y.
Multiple Linear Regression Analysis
Regression analysis is used to measure the extent of the relationship between the connected variables.
Based on the regression analysis using SPSS, the following results were obtained:
Y = α + β1X1 + β2X2 + e
Y = 0.434 + 0.587 X1 + 0.444 X2 + e
From the results of the multiple linear regression test, there is an equation that shows the regression
coefficient of the two independent variables (β1, β2) is positive (+) this means that if the customer satisfaction
variable (X1), service quality (X2) is met, it will result in increased customer loyalty, and conversely, if it is
negative (-), this means that if the customer satisfaction variable (X 1), service quality (X2) is met, it will result in
decreased customer loyalty. From this equation it can be stated that:
a. If the value variable consisting of customer satisfaction (X 1), service quality (X2) has a zero value, then
the customer loyalty variable (Y) will remain at 0.434 because the constant value shows a value of
0.434.
b. The value of the customer satisfaction coefficient (X1) of 0.587 indicates that the customer satisfaction
variable (X1) has a positive relationship to customer loyalty. This means that every 1% increase in the
customer satisfaction variable, there will be an increase of 0.587 in the customer loyalty variable.
c. The service quality coefficient (X2) is 0.444, indicating that the service quality variable (X 2) has a
positive relationship with customer loyalty. This means that every 1% increase in the service quality
variable, there will be an increase of 0.444 in the customer loyalty variable.
3. Hipothesis Test
a. F Test (Simultaneous)
This test is used to see whether the variables are independent in terms of customer satisfaction (X 1) and
service quality (X2) together (simultaneously) have a significant relationship to the dependent variable, namely
customer loyalty (Y). Assessment of decision making uses F count comparisons with F table, that is, if the value
of F count> F table, then it is accepted. In fact, if the value of F count <F table, then accepted is rejected. In
determining the F table of respondents using the formula: F table = (k; n - k), where "k" is the number of
independent variables (independent variable or X), while "n" is the number or research sample. And it is known
that customer satisfaction (X1) and service quality (X2) together (simultaneously) have a significant relationship
to the dependent variable, namely customer loyalty (Y). This is evidenced by the significant value of F count
13.353 greater than F table 3.21 and a significance level of 0.000 smaller than alpha 0.05;

Mudayat
b. t Test Uji t (Partial)

The T statistical test on statistics shows how far the relationship of one independent variable is in
explaining the dependent variable Ghozali, (2014). This test is used to see whether in the regression model the
independent variables partially have a significant relationship to the dependent variable. Decision assessment
uses a comparison comparison with t table, that is, if the value of t count> t table, it is accepted. In fact, if the
value of F count <F table, then accepted is rejected. In determining t table using the formula: t table = (0.025; n -
k-1 or df residual) for the residual df value can be seen in table 4.14. Based on the test results with SPSS, it is
known that the customer satisfaction variable (X1) has a significant relationship with customer loyalty (Y). This
can be proven by the result of t count of 4.908 which is greater than t table of 2.018 with a significance level of
less than 0.05. So it can be concluded that the customer satisfaction variable has a partially significant
relationship to the customer loyalty variable.
The t value for the service quality variable (X2) of 2.675 is greater than the t table of 2.018, with a
significance level of less than 0.05. So it can be seen that the variable service quality has a significant
relationship to the variable customer loyalty partially.
Multiple Determination Coefficient Analysis
The multiple coefficient of measurement aims to determine the regression without limit and the
relationship variable of the model in this study and to measure no regression line estimated against the actual
data. This can be seen from the R and R2 coefficients. The result of measuring multiple information in this study
is an R value of 0.623 indicating that the relationship between customer loyalty and customer satisfaction (X 1)
and service quality (X2) is strong, because the R value is more than 0.5, it can be said to have a strong
correlation. From the coefficient of multiple determination with the help of SPSS, it is known that the value of
the coefficient of multiple determination Adjusted R Square is 0.360 or 36%. This value shows that customer
loyalty has a relationship with the customer satisfaction variable (X1) and service quality (X2), the remaining
64% is related to other variables not examined in this study.
B. Hypothesis Testing Determination of Dominant Influencing Variables

Partial testing shows that all variables have a significant effect on customer loyalty. After knowing that
variable two is independently influential, then determining the variable that has dominant influence by looking
at the "beta" value which has the highest value. The result of the "beta" value on all research variables is that the
test value of the customer satisfaction variable (X1) is 0.608 and the service quality variable (X2) is 0.331. From
these results the most influencing customer loyalty is customer satisfaction.
C. Discussion
1. Relation of Customer Satisfaction (X1) to Customer Loyalty (Y)
The independent variable partially has a significant relationship to the dependent variable. Based on the
results of the t test with SPSS presented in table 4.13 above, it is known that the customer satisfaction variable
(X1) has a significant relationship to customer loyalty (Y). This can be proven by the result of t count of 4.908
which is greater than t table of 2.018 with a significance level of 0.000 less than 0.05. So it can be concluded
that the customer satisfaction variable has a partially significant relationship to the customer loyalty variable.
This explains that customer loyalty gives a happy response, which means that customers will be loyal to the
services provided, so the result is that customers will not be loyal to the company's products or services.
Relationship of Service Quality (X2) Against Customer Loyalty (Y)
The independent variable partially has a significant relationship to the dependent variable. Based on the
results of the t test with SPSS presented in table 4.13 above, it is known that the service quality variable (X 2) has
a significant relationship to customer loyalty (Y). This can be proven by the results of the t count of 2.675 which
is greater than the t table of 2.018 with a significance level of 0.011 which is smaller than 0.05. So it can be
concluded that the variable service quality has a significant relationship to the variable customer loyalty
partially. This explains that customer loyalty is determined by the quality of service for employees of PT. Mitra
Andalan Trans Anugerah for customer loyalty. If the service quality of the employees of PT. Mitra Andalan
Trans Anugerah given to good customers can make customers loyal customers, while the quality of service
provided is bad, it cannot make customers loyal and can worsen the company's image.
2. The Relationship between Customer Satisfaction (X1) and Service Quality (X2) on Customer Loyalty
It is known that customer satisfaction (X1) and service quality (X2) together (simultaneously) have a
significant relationship to the dependent variable, namely customer loyalty (Y). This is evidenced by the
significant value of F count 13,353 is greater than F table 3.21 and a significance level of 0.000 is smaller than
alpha 0.05.

Mudayat
Good service quality and balanced customers who are satisfied with customer loyalty PT. Mitra Andalan
Trans Anugerah can increase customer loyalty to the company PT. Mitra Andalan Trans Anugerah, while
companies that do not assess the quality of service provided by customers or consumers and do not get customer
satisfaction and will not get loyalty from customers.
V. CONCLUSION
A. Conclusion
The conclusions in this study are as follows:
1. Customer satisfaction variable (X1) has a significant relationship to customer loyalty (Y). This can be
proven by the result of t count of 4.908 which is greater than t table of 2.018 with a significance level of
0.000 less than 0.05. This explains that customer satisfaction with the loyalty of PT. Mitra Andalan Trans
Anugerah is good, so the results will be good.
2. Service quality variable (X2) has a significant relationship with customer loyalty (Y). This can be proven by
the results of the t count of 2.675 which is greater than the t table of 2.018 with a significance level of 0.011
which is smaller than 0.05. This explains that customer loyalty is determined by the quality of service from
employees of PT. Trans Anugerah Mainstay Partners.
3. Variable Customer Satisfaction (X1) and Service Quality (X2) together (simultaneously) have a significant
relationship to the dependent variable, namely Customer Loyalty (Y). This means that the better customer
satisfaction and quality of service provided, the more customer loyalty will increase. This is evidenced by
the significant value of F count 13.353 which is greater than F table 3.21 and the significance level of 0.000
is smaller than alpha 0.05.
B. Suggestion
1. Customer satisfaction must pay more attention because it has a positive impact on PT. Trans Anugerah
Mainstay Partners. If customers are more satisfied, it will have a positive impact in the future.
Quality of service provided by employees of PT. Trans Anugerah Andalan Partners for customers or expeditions
have been very good. And it must be further improved so as not to lose to competitors.
To get the maximum results, of course PT. Trans Anugerah Andalan Partners must also provide complete
facilities.
REFERENCES
Arikunto, S. (2010). Research procedure: a practical approach. RinekaCipta.
Assauri, S. (2011). Manajemen Pemasaran. Rajawali Pers.
Basu, S. (2008). Irawan. 2008. Manajemen Pemasaran Modern, 1–14.
Drake, C., Gwynne, A., & Waite, N. (1998). Barclays Life customer satisfaction and loyalty tracking survey: a
demonstration of customer loyalty research in practice. International Journal of Bank Marketing.
Ghozali, I. (2014). Structural Equation Modeling Metode Alternatif dengan Partial Least Squares (PLS). In
Badan Penerbit Universitas Diponegoro. Badan Penerbit Universitas Diponegoro.
Griffin, J. (2012). Customer Loyalty : Menumbuhkan & Mempertahankan Kesetiyaan Pelanggan (Ed.rev., c).
Erlangga.
Hermawan, A. (2003). Pedoman Praktis Metodologi Penelitian Bisnis. Jakarta: LPFE Trisakti.
Hurriyati, R., & Sofyani, S. (2010). Pengaruh Corporate Social Responsibility Terhadap Corporate Image PT
Bank Negara Indonesia, Tbk. Strategic: Jurnal Pendidikan Manajemen Bisnis, 10(1), 63–75.
Kotler, P., & Keller, K. L. (2012). Manajemen Pemasaran. Erlangga.
Lovelock, C., & Wright, L. K. (2010). Manajemen Pemasaran Jasa. Indeks.
Malhotra, N. K., & Malhotra, N. K. (2012). Basic marketing research: Integration of social media. Pearson
Boston.
Maulidin, J. M. (2010). Pengaruh Service Quality Dan Marketing Public Relation Terhadap Corporate Image
Survey Terhadap Mahasiswa-Mahasiswi Uin Syarif Hidayatullah Pengguna Bank Bri Kk Uin Syarif
Hidayatullah. Jakarta: Fakultas Ekonomi dan Bisnis UIN Syarif Hidayatullah Jakarta.
Oliver, R. L. (1996). Varieties of value in the consumption satisfaction response. ACR North American
Advances.
Olson, M. (1993). Dictatorship, democracy, and development. American Political Science Review, 567–576.
Sugiyono. (2012). Educational Research Methods: Quantitative Approaches, Qualitative, and R & D. Alfabeta.

Mudayat
Sukmawati, K. (2011). Pengaruh Kualitas Pelayanan, harga dan Kepuasan Pelanggan Terhadap loyalitas
Pelanggan. Jurnal Manajeman.
Suparyanto, R., dan Rosad, S., & SE, M. M. (2015). Manajemen pemasaran. Bogor: In Media.
Suryana, D., & Si, M. (2008). Kewirausahaan: Pedoman Praktis: Kiat dan Proses Menuju Sukses.(cetakan
ketiga). Jakarta. Penerbit Salemba Empat.
Tjiptono, F. (2012). Strategi Pemasaran. Andi Offset.
Tjiptono, F. (2014). Pemasaran Jasa – Prinsip, Penerapan, dan Penelitian. Andi Offset.
Utami, C. W. (2010). Manajemen Ritel_Strategi dan Implementasi Operasional Bisnis Ritel Modern Di
Indonesia. 2010-ISBN: 978-979-061-127-6–Salemba Empat.

Mudayat
Exploration Community Empowerment of Lumajang Typical

Batik Enterprises for Culture Preservation
Joko Setiyo1, Ratna Wijayanti Daniar Paramita2, Riza Bahtiar Sulistyan3

Faculty of Economics and Business, Department of Management, State University of Malang,
Indonesia1
Agus 2
Department of Management, STIE Widya Gama Lumajang, Indonesia3
Email : jokosetiyo182@gmail.com1, pradnyataj@gmail.com2, rizabahtiars@gmail.com3
ABSTRACT
Purpose: This study aims to explore the existing batik culture in Lumajang district and to find out the obstacles
faced during the production process.
Design/methodology/approach: This research uses a qualitative approach. The data collection method used
interviews, observations, and documentation which were carried out in the batik-producing area in Lumajang
Regency
Findings: The results showed that batik entrepreneurs in Lumajang district, apart from preserving culture, were
also used to improve the economy of the surrounding community. The batik culture is in the form of regional
motifs such as the batik motif of the great banana, sand, and semeru mountain which are applied to the cloth
with the batik process which will later be used as uniforms for the Lumajang Regency Government. Increasing
the capacity of batik craftsmen also needs improvement through training activities.
Research limitations/implications: This research is limited to cases that exist in batik craftsmen in Lumajang
district.
Practical implications: This research can be used as input for interested parties to increase batik production. In
addition, it can also increase the sense of belonging to the culture around us..
Keyword: Community Development, Training, Batik, Culture

Published: March 31st, 2021
I. INTRODUCTION
Indonesia has a rich and diverse culture. Each region has its own characteristics in its own artistic and
cultural forms (Karyawanto & Anggoro, 2020). Many cultures in Indonesia have begun to shift with the times
and preservation needs to be done (Sulistyan & Paramita, 2021). Cultural preservation is important to do so that
what has become the legacy of our ancestors does not become extinct (Paramita, Rizal, & Taufiq, 2019, 2020a,
2020b). In people's own life, it is inevitable that there has been a shift in local culture. The main contributing
factor is the presence of a new culture that has entered (Bahrudin, Masrukhi, & Atmaja, 2017).
One of the cultures recognized by the world as Indonesia's cultural heritage is batik. As in general, the
batik industry is currently still a small and medium business class (Syahputra & Soesanti, 2016). Batik in
Indonesia still uses 2D print motifs or writing techniques. In the present era, it is very necessary to innovate 3D
Exploration Community Empowerment of Page │ 351

Lumajang Typical Batik Enterprises for Culture Preservation
Joko Setiyo, Ratna Wijayanti Daniar Paramita, Riza Bahtiar Sulistyan
batik motifs (Endah, Suhartono, Kusumaningrum, & Ulfattah, 2020). Mapping has also been carried out by
grouping batik SMEs into four quadrants, where there are four parts that differentiate each batik business's
ability to understand and achieve clean production through open innovation (Rumanti, Sunaryo, Wiratmadja, &
Irianto, 2020).
Culture in Indonesia has become the focus of its preservation, one of which is the culture in Lumajang
Regency, East Java. The local government in preserving culture has carried out activities in the form of program
events through exhibitions and site exploration, publicity through online media, word of mouth, and direct
marketing (Fauziyah & Pareno, 2017). The culture in this area in recent years has become the focus of studies
on its batik culture (Chandra & Hartono, 2020; Firmansyah, 2019). Lumajang Regency is known as "Banana
City" because this area is a surplus agribusiness area, so it is not surprising that this area has abundant banana
fruit producers (Hapsari, Kennedy, Lestari, Masrum, & Lestarini, 2017). Recently, the positive trend in the trade
of written batik and printed batik in Lumajang has continued to increase and the development of Lumajang
batik. As time went on, with input from the district government, and training and exhibition events, light batik
and some craftsmen entered patterns and motifs that were considered to represent Lumajang's distinctive batik.
The color that stands out is the turquoise color (a kind of glowing blue), while the batik motifs taken are Batik
Pasir, sandy Corn Batik, Banana Batik, Kelor Leaf Batik, Coconut Leaf Batik, Gunung Semeru Batik, and
Banjarwaru Batik Waru. The results of the survey in December 2020, it was found that the typical batik of
Lumajang Regency, which is located in Banjarwaru Village.
II. METHODOLOGY
The method used is a qualitative approach. The data collection technique was done by means of
interviews, observation, and documentation. Interviews were conducted with related parties in Lumajang
Regency, East Java who specifically handle culture. In addition, interviews were also conducted with Lumajang
typical batik craftsmen in Banjarwaru Village who specifically produce batik and preserve ancestral culture.
Several parties who were considered to know the most about the ancestral culture of Lumajang's typical batik
were also interviewed to obtain valid data. Observations were made by observing Lumajang's batik motifs and
studying their characteristics. Documentation is done by looking at the data that has been collected in the
Lumajang Regency museum and adapting it to support the research results. Data analysis was carried out by
descriptive analysis, which describes the data that has been collected from interviews, observations, and
documentation. This analysis will give clarity or reality.
III. RESULTS AND DISCUSSION

In 2018 Batik Cahaya was founded in Banjarwaru Lumajang Village by Sri Chomsatun. Meanwhile,
regarding the typical Lumajang batik motif, the local government is currently developing and perfecting the
motif, every moment is displayed so that the public will also evaluate the quality and motifs of written and
printed batik. The development of batik in Lumajang until now has continued to show a significant increase and
encourage economic growth in this area for the better, this is shown by the increasing demand for the Lumajang
batik market and the increasing number of batik craftsmen in Lumajang Regency. The Lumajang government
continues to provide the Program in each sub-district to become a "Batik village", namely a gathering place for
people who have expertise to work on batik. If in its development the batik business is able to increase and
become a source of income for the people in the region, several batik entrepreneurs will emerge.
The beginning of the establishment of Batik Cahaya in Banjarwaru Village was that there were many
people, especially women who were unemployed on a daily basis, especially the targets were PKK cadres in
Banjarwaru Village who did not have skills, so that there was an intention to realize that they had expertise,
skills that could increase the family's economy. To realize Banjarwaru Village, you can have a Batik Icon where
the Written Batik and Stamp Batik that we organize have positive marketing, which is always needed by the
upper middle and lower class, both from local government offices, private offices, schools and the wider
community in general. The existence of batik that was announced by the Regent of Lumajang, Batik Lumajang
is batik with the theme Pasir because Lumajang Regency is famous for its international quality sand, thus raising
that Lumajang batik will also be famous in all corners of the world by introducing Batik Pasir. Batik Cahaya
with its signature Batik Tulis and Batik Cap takes the theme of Nature around the Lumajang area as well as
raising about the kinds of plants, agriculture, and plantations, for example, sandy corn batik, Moringa Leaf
Batik, Coconut Leaf Batik, Mount Semeru, and Banjarwaru typical Waru Batik. On this occasion, the existence
of the development of batik and printed batik business competition continues to grow. Likewise, written batik

and stamped batik which still exist as cultural heritage can be said to be part of cultural preservation in
Banjarwaru Lumajang Village.
Written batik and printed batik motifs are a picture frame or a pattern that embodies batik as a whole.
Every batik area in Indonesia has a different batik motif and color scheme. The beauty of the philosophical
values contained in the batik motifs created through a long process of course also has a very deep meaning. The
creators of batik motifs in ancient times did not only create something that was beautiful to the eye, but they also
gave meaning or meaning that was closely related to the philosophy of life they lived. They created something
decorative with sincere and noble messages and hopes that it would bring goodness and happiness to the batik
wearer. Batik culture in Java has hundreds of motifs that have the meaning of understanding local values
according to the area. From these examples, it can be concluded that the batik motif is a very decisive element
because it is from that motif that we can find out whether a batik has a "spirit" or not. The beauty of the batik
motif lies in two things, namely:
1. Visual beauty (external beauty), namely the sense of beauty that is obtained due to a harmonious
combination of the arrangement of shapes and colors through sight or the five senses. If people look at or
enjoy a work of art, which consists of lines, shapes and textures that appear in their entirety that gives the
viewer a certain impression and message.
2. Spiritual beauty (inner beauty), which is a sense of beauty that arises because of the composition of
meanings or philosophical symbols of shapes and colors that are in accordance with the understanding
understood. Spiritual beauty is rooted in the human view of things that are goib that you want to be
worshiped, everything that is secretive that we can recognize in all forms of belief and religion, a
philosophy of life.
From the two opinions above, it can be concluded that the beauty in batik is the beauty that is generated by
the impression that is displayed in its entirety (Visual) through the view of the combination of lines, shapes and
textures imprinted on the batik cloth. Batik is also associated with an understanding of beliefs and philosophy of
life. In this case there is a human relationship with God (Allah) which is expressed through batik work.
Therefore, batik is also often used at religious events or customs in an area.
The development of industrial competition in an area has a role and has benefits for the community. One of
them is providing employment opportunities for the closest community, increasing the standard of living of the
community, and also increasing income for the community. In addition, the existence of the batik industry and
the Lumajanag stamped batik has also provided a function for the community, namely as a driving force for
batik competition. The batik industry encourages people to work or develop batik in their area. As a provider of
a container or a place so that batik is maintained, and people can be creative in it. As a special attraction for the
community in addition to maintaining the existence of batik, the industry also increases people's income.
Basically, the existence of industry is of course experiencing progress and setbacks, not all industries in their
development run well, of course many face various problems so that an industry can develop and survive stably.
An industry can develop well if it has the following factors, namely: the amount of labor absorbed, the presence
of community support, the role of the government, as well as the quality and quantity of products produced. The
greater the number of workers absorbed in an industry certainly gives a sign that the industry is progressing. On
the other hand, if the number of workers absorbed decreases from previous years, of course, the industry will
experience a decline. From this discussion, the batik industry is included in the middle industrial group, and is
also classified as a labor-intensive industry because in the process it fully uses human labor. regions already
have a role and have benefits for the community. One of them is providing employment opportunities,
increasing the standard of living of the community and also increasing people's income. In addition, the
existence of the batik industry has also provided functions for the community.
The initial stage of the research carried out an exploration of several symbols that will be used as elements
of batik motifs which will later become icons of Lumajang Regency including the great banana, sand, and
Semeru mountain according to the concepts mentioned above. Some examples of the work of Batik Cahaya in
Banjarwaru Lumajang Village have been established since 2018 and have marketed their batik both in
Lumajang and outside Lumajang. The chanting process is carried out after all the patterns have been applied to
the batik cloth, while there are two canting used, namely canting number two with a thicker line or often called
canting klowongan and the second is canting isen-isen or called cecekan. The following is a photo of the
documentation during the process of casting a batik pattern:

Figure 1. The Process of Making the Batik Canting Motif
After the canting process is carried out, then the coloring process is carried out. The coloring process is a
very important stage and requires accuracy to produce colors with innovative gradation techniques on batik
cloth. Staining is done by several times the coloring process to produce color gradations using the dabbing
process. The following is a photo of the documentation on the coloring process.
Figure 2. Batik Coloring Process
The last process is drying and washing the batik until the batik is finished and ready for sale. The batik
motifs used are characteristic of Lumajang and the work of ancestral culture, including the Batik Pasir, sandy
Corn Batik, Banana Batik, Kelor Leaf Batik, Coconut Leaf Batik, Gunung Semeru Batik, and Banjarwaru Batik
Waru. The following is a photo of the typical Lumajang batik.
Figure 4. Lumajang's typical batik

CONCLUSION
The conclusion of this field visit is that we gain factual experiences about the implementation of the batik
making process. After holding this field visit, we were able to understand firsthand how the Batik production
system carried out by the Batik Cahaya entrepreneur in Banjarwaru Lumajang Village. We saw firsthand the
lives of residents in Banjarwaru Lumajang Village, where some of the residents worked on Batik crafts to be
made into Batik with the characteristics of Banjarwaru Lumajang Village. We also saw firsthand the production
process and the tools used in making batik. It is proven that the typical Batik handicrafts of Banjarwaru
Lumajang Village are not inferior to the batik typical of other regions. This Lumajang typical batik is able to
compete both nationally and internationally with batik motifs typical of other regions in Indonesia. The
Lumajang Batik motif, which is an icon of Lumajang Regency, is a batik motif of great banana, sand, and
Mount Semeru which is applied to fabrics with a batik process which will later be used as uniforms for the
Lumajang Regency Government, as follows:
1. With the existence of this batik motif will provide a distinctive feature of the batik motifs of Lumajang
Regency, as well as being an effective promotional media for the Banjarwaru Lumajang Village because
the depiction of the batik motif can communicate the potential of the natural wealth of Lumajang Regency
which is very diverse and beautiful, the motif of the great banana, the sand. and Gunung Semeru is the
main exposure of this batik motif because it is considered easier to identify.
2. This Lumajang batik motif has a uniqueness based on the natural wealth of the Lumajang Regency, and has
a bold color scheme that gives a strong impression of the philosophy of the regional batik motifs of
Lumajang Regency.
REFERENCES
Bahrudin, B., Masrukhi, & Atmaja, H. T. (2017). Pergeseran Budaya Lokal Remaja Suku Tengger di Desa
Argosari Kecamatan Senduro Kabupaten Lumajang. Journal of Educational Social Studies, 6(1), 20-28.
doi: 10.15294/JESS.V6I1.16251
Chandra, L. O., & Hartono, S. (2020). Fasilitas Budaya Lumajang di Lumajang. Jurnal eDimensi Arsitektur,
8(2), 833-840.
Endah, S. N., Suhartono, S., Kusumaningrum, R., & Ulfattah, R. A. (2020). A Web application for generating
3D motifs of Indonesian batik using triangle mesh. Library Hi Tech News, 37(1), 11-15. doi: 10.1108/lhtn-
09-2019-0065
Fauziyah, & Pareno, S. A. (2017). Komunikasi Pemasaran Destinasi Cagar Budaya di Kabupaten Lumajang.
Jurnal Komunikasi Profesional, 1(2), 149-165.
Firmansyah, R. (2019). Perubahan Sosial Ekonomi Pekerja Sentra Industri Batik Di Desa Kunir Kidul
Kecamatan Kunir Kabupaten Lumajang. Focus: Jurnal Pekerjaan Sosial, 2(2), 168-173.
Hapsari, L., Kennedy, J., Lestari, D. A., Masrum, A., & Lestarini, W. (2017). Ethnobotanical survey of bananas
(Musaceae) in six districts of East Java, Indonesia. Biodiversitas, 8(1), 160-174. doi:
10.13057/biodiv/d180123
Karyawanto, H. Y., & Anggoro, R. R. M. K. M. (2020). The Local Wisdom of Gucialitese People in Ojung
Ritual. KnE Social Sciences, 218-227. doi: 10.18502/kss.v4i12.7598
Paramita, R. W. D., Rizal, N., & Taufiq, M. (2019). Kemiren 3: Pelestarian Budaya Di Luar Nalar. Lumajang:
Widya Gama Press.
Paramita, R. W. D., Rizal, N., & Taufiq, M. (2020a). Kemiren 4: Pelestarian Budaya Melalui Akuntansi
Berkebudayaan. Lumajang: Widya Gama Press.
Paramita, R. W. D., Rizal, N., & Taufiq, M. (2020b). Model Implementation of Corporate Social Responsibility
Policy in Osing Culture. International Journal of Innovation, Creativity and Change, 12(9), 493-503.
Rumanti, A. A., Sunaryo, I., Wiratmadja, I. I., & Irianto, D. (2020). Cleaner production through open innovation
in Indonesian batik small and medium enterprises (SME). The TQM Journal, ahead-of-print(ahead-of-
print). doi: 10.1108/tqm-04-2020-0086
Sulistyan, R. B., & Paramita, R. W. D. (2021). Business Location Planning Assistance: Preservation of
Traditional Culture of Kampoeng Batara Banyuwangi. Empowerment Society, 4(1), 17-21. doi:
10.30741/eps.v4i1.634
Syahputra, R., & Soesanti, I. (2016). Application of Green Energy for Batik Production Process. Journal of
Theoretical and Applied Information Technology, 91(2), 249-256.

Challenges of Exchange Rate Fluctuation and Cpo Prices in

Indonesia Palm Oil Industry
Achmad Daengs GS1, Enny Istanti2, Maria Yovita R Pandin3

Universitas 45 Surabaya1
Universitas Bhayangkara2
Universitas 17 Agustus 1945 Surabaya3
Surabaya Indonesia
Email: adaengsgs@univ45sby.ac.Id
ABSTRACT
Purpose: This study points to analyze the challenges of Rupiah Exchange Rates and International CPO Prices to
Indonesia's CPO Export Volume.
Design/methodology/approach : this research exercises explanatory type under a quantitative approach. Data
collection techniques in this study were done by time series techniques. The data analysis technique used is
Structural Equation Model (SEM) with the Smart Partial Least Square (PLS) tool.
Findings: The study results indicate that: (1) Rupiah Exchange Rates do not have a significant effect on
Indonesia's CPO Export Volume; (2) International CPO prices have a significant effect on Indonesia's CPO
Export Volume.
Practical implications : intensify business in economy sector in order to reach the lower class people.
Paper type : Research paper
Keywords: Export Volume, International CPO Prices, Rupiah Exchange Rates

I. INTRODUCTION
Indonesia is an agricultural and tropical country whose development is sustained by the agriculture sub-
sector. One of the agricultural sub-sectors is plantation. Plantation is a sub sector that has a central role in
development. For the Indonesia development, export-import transactions are very vital economic activities.
Plantation products are exported and become the leading commodity, namely palm oil. Palm oil has good
prospects as a source of foreign exchange income and is able to create employment opportunities while
increasing the people welfare in the production processing.
Palm oil is one of Indonesia's main export commodities in international trade. Palm fruit is an
important part of palm oil plants which will be processed into semi-finished oil, namely Crude Palm Oil (CPO)
and finished oil (Palm Oil). Based on BPS 2009 data, almost all Indonesia regions can be used as oil palm
plantations that produce CPO (Maygirtasari, Yulianto, & Mawardi, 2015).
The Ministry of Agriculture (2012) explains that in 2011, total world palm oil production was 50,894
thousand tons, Indonesia produced 40.27% or 23,900 thousand tons of total world palm oil production, while
Malaysia was 40.26%, Thailand 2.78% , Nigeria 2.03%, and Colombia 1.80%.
According to the Coordinating Minister for the Economy Darmin Nasution explained the palm oil
industry is currently facing a number of challenges. One of them is related to the CPO prices decline. So far this
Challenges of Exchange Rate Fluctuation and Page │ 356

Cpo Prices in Indonesia Palm Oil Industry
Achmad Daengs GS, Enny Istanti, Maria Yovita R Pandin
year, CPO prices have fallen 23.7 percent from US $ 636 per ton in early 2018 to US $ 485 per ton (CNN
Indonesia, 2018). According to East Kalimantan Indonesian Palm Oil Entrepreneurs Association (GAPKI)
Muhammad Sjah Djafar said that the growth in the value of CPO exports slowed from 158.85 percent (yoy) in
early 2019 to 53.77 percent (Jpnn.com, 2019).
1I. LITERATURE REVIEW

A. International Trade Theory
According to Christianto (2013) A simple definition of international trade according to the economic
dictionary is trade that occurs between two or more countries. Foreign trade is an important aspect for a
country's economy. International trade is becoming increasingly important not only in developing an outward-
oriented country but also in finding markets in other countries for the production of products in the country and
the procurement of capital goods to support the development of industries in the country.
International trade begins with an exchange or trade in labor for other goods and services. The basis in
international trade is the existence of trade in goods and services between two or more countries which aim to
gain profit. This trade occurs when there is demand and supply in the international market.
Theories and policies of international trade are microeconomic aspects of international economics
because they relate to each country as individuals who are treated as a single unit, as well as related to the
relative prices of one commodity. On the other hand, because the balance of payments is related to total revenue
and payments while the adjustment policy affects the national income level and the general price index, both of
these illustrate the macroeconomic aspects of international economics (Salvatore, 2011).
B. Exchange rate
Currency exchange rates are the prices of currencies relative to other countries' currencies, and because
this exchange rate includes two currencies, the balance point is determined by the supply and demand of the two
currencies (Abimanyu, 2004). Mankiw (2013) distinguishes between two exchange rates, namely the nominal
exchange rate and the real exchange rate. Nominal exchange rate is the relative price of the currencies of two
countries. While the real exchange rate is the relative price of the goods of the two countries. The exchange rate
of a currency is a comparison of the value of one country's currency to another foreign country's currency
(Thobarry, 2009).
Nopirin (2009) elucidates that the exchange rate is an exchange between two different currencies, so
the ratio / value between the two currencies will be obtained. Changes in exchange rates can be divided into two,
namely depreciation and appreciation. Depreciation is a decrease in the price of the domestic currency against
foreign currencies, while appreciation is an increase in the price of the domestic currency to foreign currencies
(Krugman, Obstfeld, & Melitz, 2012).
Rupiah exchange rate is a comparison between the value of a country's currency with another country.
The exchange rate reflects the balance of demand and supply of domestic and foreign currencies of US $. The
declining rupiah exchange rate reflects the decline in public demand for the rupiah due to the declining role of
the national economy or because of the increasing demand for US $ foreign currencies as an international
payment instrument. Strengthening of rupiah exchange rate to a certain extent means that it reflects an
improvement in the performance of the money market. As a result of the rising inflation rate, the domestic
exchange rate has weakened even more against foreign currencies. This resulted in a decline in the performance
of a company and investment in the capital market to be reduced (Nasution, 1998).
C. Price
Price can be interpreted as the amount of money (monetary unit) and or other aspects (non-monetary)
that contain certain uses needed to obtain a product (Tjiptono, 2014). Price is one element of the marketing mix
that generates opinion. Price is the youngest element in a marketing program to adjust product features, channels
and also communication requires more time. The price also communicates the intended value positioning of the
product or company brand to the market. Well-designed and marketed products can be sold at high prices and
generate large profits (Kotler & Keller, 2012) Prices are measured in money. The value of an item is the basis
for determining the price of the item. The price has a set price for the goods to be exported.
D. Export Volume
Mankiw (2013) explains that exports are various kinds of goods and services that are produced
domestically and then sold abroad. According to Curry (2001) exports are goods and services sold to foreign
countries to be exchanged for other goods (products, money). The export process in general is an act of

removing goods or commodities from within the country to import them into other countries. Large goods
exports generally require the intervention of customs in sending and receiving countries.
Export activity is a trading system by removing goods from domestic and abroad by fulfilling
applicable regulations. Exports are total goods and services sold by one country to another, including among
goods, insurance, and services in a given year (Triyoso, 2004). Furthermore Simamora (2006) described that
exports are activities of removing goods from customs areas, while exporters are companies or individuals that
carry out export activities. Sukirno (2010) expounds that export activities have several benefits, including:
Expanding the Market for Indonesian Products
Export activities are one way to market Indonesian products abroad. For example, batik clothing is one
of Indonesia's products that is becoming known by the world community. If the demand for batik clothes made
in Indonesia increases, the income of batik producers is greater. Thus, batik production activities in Indonesia
will further develop.
Adding Foreign Exchange
Trade between countries allows Indonesian exporters to sell goods to people abroad. This transaction
can increase foreign exchange earnings. Thus, the country's wealth increases because foreign exchange is one
source of state revenue.
Expanding Employment
Export activities will open up employment opportunities for the people. With the expanding market for
Indonesian products, domestic production activities will increase. More and more workers are needed so that
more extensive employment.
Companies that have competence in the fileds of marketing, manufacturing and innovation can make its as
a sourch to achieve competitive advantage (Daengs, Istanti, Negoro, & Sanusi, 2020:1419).
III. METHODOLOGY
1. Conceptual Framework
Rupiah Exchange Rate

(X,)
Export Volume (Y)
International CPO
price (X2)
Figure 1. Conceptual Framework
A. Hypothesis
H1 The Rupiah Exchange Rate has a significant effect on Indonesia's CPO Export Volume.
H2 International CPO prices have a significant effect on Indonesia's CPO Export Volume.
IV RESEARCH METHODS
1. Types of Research
Type of research is explanatory research. Explanatory research is used with the point to analyzing
association between variables through hypothesis testing (Silalahi, 2009). The approach used is a quantitative
method. As stated by Sugiyono (2016) quantitative methods are data in the form of numbers or qualitative data
that is framed/scoring. Quantitative methods can be interpreted as research methods based on philosophy of
positivism, used to examine populations or specific samples, data collection using research instruments,

quantitative / statistical data analysis, with the purpose to test the hypotheses that have been set (Sugiyono,
2016).
2. Definition of Variable Operations

An operational definition is a definition given to a variable or construct by means of giving meaning or
specifying an activity, or providing an operation needed to assess the construct or variable (Nazir, 2014). The
following will describe the operational definition of each research variable as follows:
1. Rupiah Exchange Rate (X,)
Rupiah exchange rate is a comparison between the value of a country's currency with another country.
International CPO Price (X2)
Price is the youngest element in a marketing program to adjust product features, channels and also
communication requires more time.
Indonesian CPO Export Volume (Y)
Exports are various kinds of goods and services that are produced domestically and then sold abroad.
3. Data collection technique

This research was conducted under condition of the Indonesian economy in 2007-2017 to examine the
rupiah exchange rate and international CPO prices that affect the volume of Indonesian CPO exports that
occurred in that year.
4. Data analysis technique

The analysis technique chosen to analyze data and test the hypotheses in this study is The Structural
Equation Model (SEM). To answer the hypothesis used Partial Least Square (PLS). As said by Ghozali (2012)
calculations are done using the Smart Partial Least Square (PLS) tool, because it is multi-path shaped and the
model used is Reflective. Calculation model is performed using Smart PLS aids because in this study it has
multi-path association and is formative and reflective.
V. RESULTS AND DISCUSSION

1. Inner Model Evaluation
The inner model which is sometimes also called (inner relation, structural model and substantive
theory) specifies the effect between the research variables (structural model).
2. Inner Model Test or Structural Model Test

The analysis results of the suitability of structural model constructed show conclusion that the overall
model has been "Relevant" to explain the variables studied and their effects on each variable. For endogenous
latent variables in the structural model which has an R2 of 0.67 indicating that the model is "good", R2 of 0.33
indicates that the model is "moderate", R2 of 0.19 indicates that the model is "weak" (Ghozali, 2012) . The PLS
output as described below:
Table 1. R-Square value
R-Square
Rupiah exchange rate (X1)
International CPO price (X2)
Indonesia’s CPO export volume (Y) 0.774
The results in the table above show that the variable Rupiah Exchange Rates and International CPO
Prices that affect Indonesia's CPO Export Volume in the structural model have an R 2 of 0.774 which indicates
that the model is "Moderate".

Rupiah Exchange Rate b = 0.257

(X,)
t =1.882
Export Volume (Y)
International CPO b = 0.825

price (X2)
t =2.055
Figure 2. Inner PLS R-Square Model
There are exogenous variables in the inner model studied, namely Rupiah Exchange Rate and
International CPO Prices, while endogenous variable in the inner model under study is the Indonesian CPO
Export Volume. The results of the inner weight value in Figure 2 above show that the Indonesian CPO Export
Volume variable is influenced by Rupiah Exchange Rates and International CPO Prices, which are shown in the
following equation:
3. Hypothesis Testing Results

a. Hypothesis 1 Test (H1)
The first hypothesis in the study was not proven to be true, this is known from the t value of 1,882 which
means it is smaller than 1.96, this means that the Rupiah Exchange Rate has no significant effect on Indonesia's
CPO Export Volume. The direction of the association between two variables is positive which means that if the
rupiah exchange rate increases, it will further increase Indonesia’s CPO Export Volume but not significantly by
having a large effect of 0.257.
b. Hypothesis 2 (H2)
The second hypothesis in the research proved to be true, this is known from the t value of 2.055, which
means greater than 1.96, this means that the International CPO Price has a significant effect on the Indonesia’s
CPO Export Volume. The direction of the association between two variables is positive which means that the
higher international CPO price will increase the Indonesian CPO exports volume by having a large effect of -
0.825.
VI. DISCUSSION
A. Effect of Rupiah Exchange Rates on Indonesia's CPO Export Volume
Results from data analysis showed that the Rupiah Exchange Rate did not have a significant effect on the
Indonesia’s CPO Export Volume which was evidenced by the t value of 1.882 which means it was greater than
1.96, so it can be explained that the increase in Indonesia’s CPO Export Volume could not necessarily be
increased through the existence of value high rupiah exchange rates. The effect of the Rupiah Exchange Rate on
the Indonesia’s CPO Export Volume is positive which indicates that the higher the rupiah exchange rate will
have an impact on the increasing CPO Export Volume in Indonesia but it is not significant. Thus the first
hypothesis in this study which reads "Exchange Rate of Rupiah has a significant effect on Indonesia's CPO
Export Volume", can be declared unacceptable.
The findings in this study prove that the Rupiah Exchange Rate has a positive but not significant effect
on Indonesia's CPO Export Volume. The study results in line with the finding study conducted by Alatas (2015)
who found that there was no significant influence of the rupiah exchange rate variable on the volume of
Indonesia’s CPO exports to the Netherlands. However, the findings in this study are not in line with the findings
of research by Maygirtasari et al. (2015) wherein in her research it was said that Indonesia's CPO Export
Volume could be significantly influenced by the Rupiah Exchange Rate against the US Dollar or by increasing
the Rupiah Exchange Rate against the US Dollar, the Volume Indonesia's CPO exports will experience a
significant increase.

B. Effect of International CPO Prices on Indonesia's CPO Export Volume

Data analysis result showed that the International CPO price has a significant influence on Indonesia's
CPO Export Volume, which is proven by a t value of 2,055, which means it is greater than 1.96, so it can be
explained that the Indonesia’s CPO Export Volume can be formed through the International CPO price level.
Thus the second hypothesis in this study which reads "International CPO Prices have a significant effect on
Indonesia's CPO Export Volume", can be declared acceptable. However, the effect of International CPO Prices
on Indonesia's CPO Export Volume is negative, which indicates that the more appropriate International CPO
prices offered, the more impact on CPO Export Volume in Indonesia.
Built on the results of research that has been done it is proven that the International CPO price has a
significant and negative effect on Indonesia's CPO Export Volume. This significant negative effect indicates
that International CPO prices have an important role in efforts to increase Indonesia's CPO Export Volume. So
this can be interpreted that the more in line with the international CPO prices offered, the more volume of
Indonesia’s CPO exports will be reduced. Therefore, if Indonesia wants to increase the volume of Indonesian
CPO exports, it is very important for the Indonesian government to pay attention to the lower level of
international CPO prices. The findings in this study are not in line with the findings of research conducted by
Alatas (2015) who found that there was no significant influence on international price variables on the volume
of Indonesian CPO exports to the Netherlands. The findings of this study also do not support the results of a
study conducted by Maygirtasari et al. (2015) who also found that international CPO prices did not significantly
affect Indonesia's CPO export volume.
CONCLUSION
The Rupiah Exchange Rate does not have a significant effect on Indonesia's CPO Export Volume. Thus the first
hypothesis in this study can be declared unacceptable.
International CPO prices have a significant influence on Indonesia's CPO Export Volume. Thus the second
hypothesis in this study is acceptable.
REFERENCESS
Abimanyu, Y. (2004). Memahami Kurs Valuta Asing. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas
Indonesia.
Alatas, A. (2015). Trend Produksi dan Ekspor Minyak Sawit (CPO) Indonesia. Jurnal AGRARIS, 1(2), 114–
124.
Christianto, E. (2013). Faktor yang Mempengaruhi Volume Impor Beras di Indonesia. Jurnal Ilmiah Ilmu-Ilmu
Ekonomi Dan Bisnis, 7(2), 38–43.
CNN Indonesia. (2018). Harga CPO Anjlok, Pemerintah Kaji Ulang Pungutan Sawit. Retrieved November 1,
2018, from CNN Indonesia website: www.cnnindonesia.com-ekonomi/20181101145435-532-
343235/harga-¬cpo-anjlok-Pemerintah-kaji-ulang- pungutan-sawit
Curry, J. E. (2001). Memahami Ekonomi Internasional: Memahami Dinamika Pasar Global. Jakarta: Penerbit
PPM.
Daengs, G. S. A., Istanti, E., Negoro, R. M. B. K., & Sanusi, R. (2020). The Aftermath of Management Action
on Competitive Advantage Through Proccess Attributes at Food and Beverage Industries Export Import in
Perak Harbor of Surabaya. International Journal Of Criminology and Sociologi, 9, 1418–1425.
Ghozali, I. (2012). Aplikasi Analisis Multivariate dengan Program IBM SPSS. Semarang: Badan Penerbit
Universitas Diponegoro.
Jpnn.com. (2019). Mengkhawatirkan, Harga CPO Terus Menurun. Retrieved August 13, 2019, from Jpnn.com
website: www. jpnn.com/ kemenpar/news/mengkhawatirkan-harga-cpo-terus-menurun
Kotler, P., & Keller, K. L. (2012). Marketing Management (14th ed.). Jakarta: PT. Indeks Kelompok Gramedia.
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2012). International Economics Theory & Policy (9th ed.).
Boston: Pearson Education.
Mankiw, N. G. (2013). Pengantar Ekonomi Makro. Jakarta: Penerbit Salemba Empat.
Maygirtasari, T., Yulianto, E., & Mawardi, M. K. (2015). Faktor-Faktor yang Mempengaruhi Volume Ekspor
Crude Palm Oil (CPO) Indonesia. Jurnal Administrasi Bisnis, 25(2), 1–8.
Nasution. N. (1998). Materi Pokok Psikologi Pendidikan. Jakarta: Direktorat Jenderal Pendidikan Tinggi
Departemen Pendidikan Nasional.

Nazir, M. (2014). Metode Penelitian. Bogor: Ghalia Indonesia.

Nopirin. (2009). Ekonomi Moneter (2nd ed.). Yogyakarta: BPFE.
Salvatore. D. (2011). Managerial Economics (Fifth Edit). Singapore: Thomson Learning.
Silalahi, U. (2009). Metode Penelitian Sosial. Bandung: PT. Refika Aditama.
Simamora H. (2006). Manajemen Sumber Daya Manusia (2nd ed.). Yogyakarta: STIE TKPN.
Sugiyono. (2016). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Sukirno, S. (2010). Makroekonomi Teori Pengantar (3rd ed.). Depok: PT. Raja Grasindo Perseda.
Thobarry, A. A. (2009). Analisis Pengaruh Nilai Tukar, Suku Bunga, Laju Inflasi, dan Pertumbuhan GDP
terhadap Indeks Harga Saham Sektor Properti (Kajian Empiris pada Bursa Efek Indonesia Periode
Pengamatan Tahun 2000-2008). Universitas Diponegoro.
Tjiptono, F. (2014). Pemasaran Jasa - Prinsip, Penerapan, dan Penelitian. Yogyakarta: Andi Offset.
Triyoso, B. (2004). Analisis Kausalitas Antara Ekspor dan Pertumbuhan Ekonomi di Negara ASEAN. Medan:
FE USU.

Earnings Persistence in Affecting Stock’s Prices of Malaysia and

Indonesia Manufacturing Companies
Nur’aini Rokhmania1, Titis Puspitaningrum Dewi Kartika2

STIE Perbanas Surabaya
Email: nuraini@perbanas.ac.id1, titis_puspita@perbanas.ac.id2
ABSTRACT
Purpose: The users of financial reports usually use the information of current earnings to predict future earning
so that quality earnings are earnings that can reflect the continuity of earning in the future.
Design/methodology/approach: This study takes company samples of manufacturing companies, both of which
listed in Indonesia’s stock exchange as well as Malaysia’s in the yeas 2014 – 2017 by using regression and
intervening analysis.
Findings: The results of this study are operating cash flow cannot affect the earnings’ persistence in Indonesia
but it affect in Malaysia, book tax differences and debt level can affect an earning persistence in Indonesia &
Malaysia, earnings persistence could affect stock prices in Indonesia & Malaysia and Operating cash flow
cannot affect stock prices with Earning Persistence as intervening variable for manufacturing companies in
Indonesia & Malaysia.
Research limitations/implications: Adj R square value is very low and cannot be compared between Indonesia
and Malaysia.
Practical implications: The result would be beneficial for researchers who eager to analyse the similar variable
against different countries.
Originality/value: Claim your originality here.
Keyword: Book Tax Difference, Debt Level, Earning Persistence, Stock Prices
Received: Fabruary 6th, 2021

Revised: February 20th, 2021
I. INTRODUCTION
Investors can make 2 assessment approaches when doing investment: technical approach and fundamental
approach. A technical approach focuses on the condition that surrounds the company, while fundamental
approach focuses on a company’s economical facts, which can be seen from that company’s financial report.
According to Hans Kartikahadi, Rosita Uli Sinaga, Merliyana Syamsul, (2016), the purpose of financial reports
is to provide information that involves financial position, performance, as well as a company’s change in
financial position that is beneficial to most of its users and decision-making. Rudianto, (2012), on the other
hand, says that the purpose of financial reports is to help the users of the report to estimate a company’s
potential in creating earning in the future. Because the information present in these reports is events from a past
period of time, and because of that they can’t always give information that’s actually needed. However, this past
information can give a picture to investors about how the condition and performance of a company are like in
that period.
Generally, a company’s performance is often linked with the profitability of the company. Those who use
financial reports often use the current earning to predict the earning in the near future so that quality earning is
Earnings Persistence in Affecting Stock’s Prices Page │ 363

of Malaysia and Indonesia Manufacturing Companies
Nur’aini Rokhmania, Titis Puspitaningrum Dewi Kartika
earning that can mirror the continuity of future earnings. Earning Persistence as a revision of accounting earning
that is looked forward to in the near future (expected future earnings) that are implicated by the current year's
innovation earnings (current earnings). A earning that is persistent can give positive signals and will result in
planting an investor’s interest in buying towards the company’s stock. With many interested, then surely the
company’s stock prices will experience an increase. This corresponds to the research of Mohamad Nasir dan
Mariana Ulfah, (2008) which suggests that through indirect relationships, earning persistence has a load of
information that is used to determine stock prices. However, Meythi, (2006) says that through an indirect
relationship a profit’s persistence does not have much information that can be used to determine stock prices.
Statement of Cash Flows is a report about an acceptance of activity and a company’s cash disbursement
during a certain period of time, along with defining the sources of those acceptances and disbursement that aim
at giving relevant information about a company’s acceptance and cash disbursement for a period of time
(Rudianto, 2012). A couple of previous researches show that their results towards stock prices, which are
Aprianti, (2017) that tell us that operating cash flows have an effect on stock prices. Despite this, different
viewpoints, as told by Mohamad Nasir dan Mariana Ulfah, (2008) as well as Meythi, (2006) state that operating
cash flow has no effect on stock prices. In addition to these stock prices, previous researchers also research the
effect of Operating Cash Flows towards Earning Persistence, i.e. (Dewi & Putri, 2015), (Mohamad Nasir dan
Mariana Ulfah, 2008) that tell that an operating cash flow affects to an earning’s persistence. However, Meythi
(2006) says that an Operating Cash Flow does not affect the earnings persistence.
Book Tax Difference gives a fine line between accounting earning and fiscal profit. This difference is
caused by the existence of different rules and the goals of their users. Assessments involving book-tax
difference is essential because profit, according to tax, is the most accurate to predict financial reports as well as
the actual conditions of the company. A few preliminary types of research show that their results are connected
with the effect of book-tax difference towards a profit’s persistence, i.e. (Dewi & Putri, 2015) state that book-tax
difference affects a profit’s persistence. However, (Barus & Rica, 2014) state that book-tax difference does not
affect a profit’s persistence.
The number of debts also has an effect on how management manages profit. The holders of the stocks get
benefits from solvability finance as far as the generated earning above money that is borrowed exceeds the price
of interest. (Fanani, 2010) state that the rate of debts affect the persistence of profit.
This research takes a sample from manufacture companies in Indonesia and Malaysia that are listed in the
Indonesian capital market and the exchange-effect on Malaysia. With some weighing, Malaysia and Indonesia
have similar fare for imposition on corporate income tax, which is a single rate of 25% related to book tax
different. Based on the results of these preliminary researches that still have the diversity in terms of results and
similarities with the capital market of Indonesia – Malaysia, and so the researchers are interested in doing
research with the title: “THE EARNINGS PERSISTENCES IN AFFECTING STOCK PRICES OF
MALAYSIA’S AN INDONESIA’S MANUFACTURE COMPANIES.”
1. Theoretical Framework And Hypothesis

a. Signalling Theory
Suwardjono (2015) states that information is an announcement that will give a signal to investors in
investment. According to Brigham, Eugene F. dan Houston (2011), signal is a behavior that is adopted by a
company’s management that gives clues to the investor about the prospect of the company. A good giving of
this signal can affect the quality of decision-making. This theory is linked to signals that are given by stock
prices. If a company’s stock price is high, it gives a signal to the investors that the company has a good quality
performance, and thus, it increases the interests of that stock due to the high price, and vice versa.
b. Stock Price
Capital Market Law Number 8 of 1995 defines the capital market as a party that organizes and provides
the system and/or means to bridge selling and buying offers affect other parties with the purpose of trade effect.
The market value is determined by demand and supply of stock concerned in the capital market. The movement
of stock price is provided every day in the stock-exchange effect, based on the closing price on that day, and
thus the stock price that is used is the closing price in the end. The market price is the stock price that happens in
the stock exchange price at certain moments that is decided by the market players.
c. Earning Persistence
Accounting profit is information that is gotten from the in-between of revenue and expenses that later will
be used as one of the information for decision-making. Because earning can directly project a company’s
performance, the company tries to make its earning higher to attract investors.

(Fanani, 2010) says the earnings persistence is one side that tells us about company’s efforts to sustain the
number of earning received in the present until the near future. Persistent earning is earning that is able to reflect
sustainable earning in the future that is determined by accrual component and its cash flow.
d. Cash Flows
Statement of Cash Flows is a report that shows cash flow that is accepted and used by the company for a
period of accounting. Cash flows are divided into three groups, which are:
Operation Activities, which is a string of activities that are related to a company’s efforts to sell and produce the
product.
Investment Activities, which is a couple of activities that are related to a company’s purchase and selling of their
money that becomes the source of the company’s income.
Financing Activities, which is every activity that provides funding requirements as well as their consequences.
e. Book Tax Difference (BTD)

(Suandy, 2016) proposes that the existence of a line between recognition of income and costs and fiscal
gives rise to a difference in counting taxable income. The difference between accounting earning and fiscal
accounting can be referred to as Book Tax Difference. The causes of this difference are:
1. The existence expenses; expenses that cannot be less than gross income (a positive fiscal correction needs
to be done)
2. The existence of income that is not added to gross income (a negative fiscal correction needs to be done).
3. The existence of transaction that is in debt with taxes, however, it does not or has not been recorded as
income that is related to PPN (a positive fiscal correction needs to be done)
The difference between financial reports and fiscal reports are categorized to timing difference and a
permanent change. Timing differences is a difference where there is an inequality in the time of recognition of
income and the burden between tax regulations with the SAK.
f. Debt Level
A financial report’s information that can affect an investor’s viewpoint towards Debt Level. One of the
sources of financial capital is debt. Debt is the company’s whole obligation towards the creditor or another party
that gives financial borrowing to the company. Companies that have debt as an alternative source are expected
to work hard so that the users of this capital can give a significant advantage to the company so that it develops
and can be able to repay the creditor. Investors tend to be careful when investing in a company that has a high
amount of Debt Level.
g. The Effect of Operating Cash Flow Towards Earning Persistence

A company that produces a substantial earning but does not have an available cash flow to run an
operational activity will become burdened and be very depended on other parties; i.e. the bank party to provide a
working capital or a supplier that gives a more extended credit to the company, and as such the company ignores
the quality of their products and services proposed to by the supplier. This research focuses on Operating Cash
Flow because it shows the users of the financial reports as to how companies benefit from cash flow to pay
debts maintain the company's operational capabilities and perform obligations, such as paying dividends.
(Dewi & Putri, 2015) as well as (Mohamad Nasir dan Mariana Ulfah, 2008) prove in their researches that
there’s a positive connection between Operating Cash Flow and Earning Persistence.
H1: Operating Cash Flow effect towards earning persistence to manufacturing companies in Indonesia and
Malaysia
h. The Effect of Book Tax Difference Towards Earning Persistence

Companies were required to organize financial reports based on the underlying universal principles of
accountancy, usually called the SAK. Meanwhile, when it comes to taxation purposes, financial reports are
made with different standards that are adapted based on tax regulations so that later, the accountancy earning
and fiscal earning have different results. An assessment regarding book-tax difference is essential because there
are many things that have to be understood in order to guess a company’s actual tax liability and taxable income
from costs allowed according to tax rules. The tax-based earning is most accurate for predicting financial
statements and the actual conditions of the company. (Dewi & Putri, 2015) state that book-tax difference affects
the earnings persistence.

H2: Book tax difference’s effect towards earning persistence to manufacturing companies in Indonesia and
Malaysia
i. The Effect of Debt Level Towards Earning Persistence
One of the strings of information in financial reports that can affect the investor’s perception is the debt
rate. The higher the debt rate, then there’s a higher effort put into the management to give an excellent
performance. The company will pick a high Earning Persistence so that they can maintain an excellent
performance in the eyes of an auditor and/or investor if a company has a high level of Debt Level (Fanani,
2010). This is done so that auditors and investors see the company’s performance with a right, pleasing eye.
H3: The Debt level effect towards earning persistence to manufacturing companies in Indonesia and
Malaysia.
j. The Effect of Earning Persistence Towards Stock Prices

The first testing of earning with stock prices was done by (Ball & Brown, 1968), showing that the increase
or decrease of earning towards a company will be followed by the increase or decrease of the stock price. The
stock price is one part of the investor’s reaction. The research of (Ball & Brown, 1968) that the earnings
persistence affects the stock price. The research of (Meythi, 2006) state the opposite; that Earning Persistence
does not affect stock prices.
H4: The earning persistence effects towards the stock price for manufacture companies in Indonesia and
Malaysia.
k. The Effect of Cash Flow Towards Stock Price Through Earning Persistence
Operating Cash Flow is a cash flow that originates from the primary producer activity’s company’s
earnings or transaction that goes in-and-out from a determined net income. The more the Operating Cash Flow
can support the company to produce profit, then this condition can give positive signals to the investors and
thus, it results in them having a higher interest to buy the product and increase the stock prices – a positive
connection between Operating Cash Flow and stock prices.
The rise of the cash flow will also increase the rise of Earning Persistence, and the rise of Earning
Persistence will attract investors. This is according to the research of (Mohamad Nasir dan Mariana Ulfah,
2008) that put the element of persistence as an intervening variable that mediates the effect of Operating Cash
Flow to stock prices. Such research gives a result that states the existence of a positive relationship between
Operating Cash Flow and stock prices through Earning Persistence.
H5: Operating cash flow affects stock prices along with earning persistence s an intervening variable at
manufacture companies in Indonesia and Malaysia.
2. Framework
Operating Cash
Flow
Book tax
Difference Stock Price
Earning
Persistence
Debt Level
Figure 1-Research Model

II. METHODOLOGY
A. Sample Classifications
The population in this research is the financial report’s entire manufacturing companies in Indonesia and
Malaysia along the years 2014 – 2016. The method used in this research is the census.
B. Research Data
This research uses various types of secondary data in the form of audited financial reports where it is
received from the site BEI, as well as a summary of stock prices from yahoofinance, a data collecting technique
using the documentation method.
C. Variables
Data variables used in this research consist of dependent variable, which is stock prices, intervening
variable, which is earning persistence, as well as independent variable, which are Operating Cash Flow, book-
tax difference, and the level of Debt Level.
The Definition of Operational Variable
D. Stock Prices
The stock price that is meant here is the closing price at the end of the analysis period, that is counted with
a mathematical formula. Below is the formula:
𝑺𝑷 𝒊𝒕 − 𝑺𝑷 𝒊𝒕 − 𝟏
𝐒𝐭𝐨𝐜𝐤 𝐏𝐫𝐢𝐜𝐞 =
𝑺𝑷 𝒊𝒕 − 𝟏
Definition:
SP it – the stock price of Company i on the year t
SP it-1 – the stock price of Company I before the year T
Earning Persistence
The measurement of earning persistence is measured by the coefficient of current earnings regression to
future earnings.
𝑬 𝒊𝒕 + 𝟏 = 𝜷𝟎 + 𝜷𝟏 𝑬 𝒊𝒕 + ɛ
Definition
Eit+1: accounting earning after the earning of Company I after Period T (quarterly)
Eit: accounting earning after the earning of Company I in Period T (quarterly)
B0: Constanta
B1: the persistence of accounting earning
e: component error
To get the result of B, a simple linear regression where (E it) as a dependent variable and
(Eit-1) as an independent variable, where the data uses a quarterly financial report.
E. Operating Cash Flow / OCF
Cash flow from operating activities is cash flow received from company business activities. Thus, the
parameter that is used for this variable is cash flow that is counted based on the total of cash flow as the year
goes on.
F. Book Tax Different (BTD)
Book Tax Difference is the difference between accounting earning and fiscal earning where the variable
that appears is due to the fine line between provisions in SAK and also the provisions used in taxations. This
research only focuses on the temporary difference corresponding with the model on Hanlon (2005), the
difference between accounting earning and fiscal earning measured by using deferred tax proxy, which is:
𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐭𝐚𝐱 𝐞𝐱𝐩𝐞𝐧𝐬𝐞 𝐭

𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐓𝐚𝐱 𝐄𝐱𝐩 𝐢𝐭 =
𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭 (𝐭 − 𝟏)

Definition:
Deferred Tax Expense it : Deferred Tax Expense company i the year t
Deferred Tax Expense t : Deferred Tax Expense t
Total of assets (t-1) : total assets of the company before the year t
G. Debt Level
Debt is defined as a whole obligation of the company to the creditor or other parties that give borrowing
assets towards that company (Munawir, 2004:18). Debt Level has the formula below:
𝐓𝐨𝐭𝐚𝐥 𝐃𝐞𝐛𝐭
𝐃𝐞𝐛𝐭 𝐋𝐞𝐯𝐞𝐥 =
𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭

Manufacturing companies in this research are divided into two categories: companies that are listed in the
Indonesia Stock Exchange, which are as much as 142 companies and companies that are listed in the Malaysia
Stock Exchange, which are as much as 103 companies per year. This research started from 2014 to 2016.
A. SPSS Tabulation Results for Indonesia Data
Table 1 Coefficients of OCF, Earning Persistence toward Stock Price in Indonesia

Adj R square = 0,043
Constant Beta Sig
Operating Cash Flow 3,83 0,649
Earning Persistence 0,003 0,000
Tabel 2 Coefficients OCF, Debt Level, BTD toward Earning Persistence in Indonesia
Adj. R Square = 0,027
Constant Beta Sig
Operating Cash Flow -3,172 0,955
Debt Level 53,83 0,026
Book Tax Difference 68,164 0,019
B. SPSS Tabulation Results for Malaysia Data
Table 3 Coefficients AKO, Earning Persistence toward Stock Price in Malaysia

Constant Beta Sig
Operating Cash Flow -0.293 0,876
Earning Persistence 0,408 0,000
Table 4 Summary Model BTD, AKO, TOT. Debt, Earning Persistence toward Stock Price
Constant Beta Sig
AKO 7,412 0,000
Tot.Hutang 2,078 0,000
BTD -168,3 0,005

C. Operating cash flow’s effect towards earning persistence in manufacturing companies in Indonesia
Based on the SPSS tabulation results it shows that Operating Cash Flow does not affect the earnings
persistence with sig value 0,995 and beta -3,172. Operating Cash Flow determines whether or not a company’s
operation can provide a cash flow that’s enough to pay off borrowings, maintain the company’s operational
ability, pay dividends and make new investments without any help from the outer circle. The result of this
research shows that company samples in Indonesia do not have much cash compared with the costs incurred or,
in other words, don’t have enough cash for its operational activity and so it gives a possibility to search for new
borrowings to other parties. If the operational change is done optimally, then the company is able to produce a
maximum amount of profit.
D. Operating cash flow’s effect toward earning persistence to manufacturing companies in Indonesia
According to SPSS tabulation results, Operating Cash Flow affects Earning Persistence positively with a
sig value of 0,000 and beta 7,142. This means that if the Operating Cash Flow increases, then the ability of the
company to make more earning will also increase. But on the other hand, if the Operating Cash Flow decreases,
then the company’s ability to produce earning will also decrease. This happens because Operating Cash Flow
produced from a company’s main operational activity will significantly affect the company’s ability in making
profit. (Fanani, 2010) states that cash flow is a financial indicator that is better compared to accounting because
the cash flow is relatively hard to manipulate.
E. Book Tax Difference’s effect toward earning persistence to manufacturing companies in Indonesia
Based on the SPSS tabulation results, BTD positively affects the earnings persistence with a sig value of
0,026 and beta 53,83. Book tax difference is more commonly called as a difference between accounting earning
and fiscal profit. (Suandy, 2016) states that there is a difference between income recognition and costs between
commercial and fiscal accounting make a difference in calculating the amount of taxable income. The existence
of this difference gives negative signals to the investors and the users of these financial reports due to how big
this difference and thus, it will cause a low earning that would later also decrease the company’s persistence on
that year.
This result according to (Dewi & Putri, 2015), probably happened because the expense recognition in the
short period of time does not grasp the transitory effect from the temporary change. The fact that it doesn’t catch
the transitory effect can cause the cash that is supposed to be placed in the counting of earning – according to
the accounting and fiscal earning but also has to have a decrease so that it can make the earning more significant
and more persistent. The result of this research shows that book-tax difference does have an effect on Earning
Persistence. It is also corresponding with what is done by (Dewi & Putri, 2015) that prove that book-tax
difference affects the earnings persistence.
F. Book Tax Difference’s effect toward earning persistence to manufacturing companies in Malaysia
Based on the SPSS tabulation results, Book Tax Difference affects Earning Persistence with a sig value of
0,000 and beta -168,376 which means it’s a negative relationship. This means that the difference between
accounting earning and fiscal earning will increase so that the company’s ability to provide earning in the future
will lessen. Otherwise, if there is little difference between accounting earning and fiscal earning then the ability
of the company to make earning will increase. This is due to the use of deferred tax expense proxy for
measuring Book Tax difference. So, if the Book Tax difference is high, then the company’s next period of time
will have to pay a big tax difference because it has a negative effect on the future profit. This research has the
support of Dewi & Putri (2015) but contradicts with the result of the research of Barus & Rica (2014).
G. Debt Level’ effect towards earning persistence to manufacturing companies in Indonesia

The SPSS results show that Debt Level has a positiv effect on Earning Persistence with a sig value of
0,019 and beta 68,164. This means that if the company’s debt rate is high then its ability to make earning in the
future will increase. However, if the company has a low debt rate then its ability to make earning in the future
will decrease. Debt also affects the ability to produce earning since it’s one of the sources of capital for the
company. Variable of Debt Level does not significantly affect the earnings persistence.
’
H. Debt Level effect toward Earning Persistence to manufacturing companies in Malaysia
According to the SPSS results, Debt Level has a positive effect on Earning Persistence with a sig value of 0,000
and beta 2,078. This walks the same road with the effect of Debt Level toward Earning Persistence to
manufacturing companies in Indonesia.

I. Earning Persistence’s effect on stock prices to manufacturing companies in Indonesia

Based on the results of the SPSS tabulation test, Earning Persistence has a positive effect with a sig value of
0,000 and beta 0,003. It proves that companies are able to suffice the operational activities without borrowing
money from outside companies as well as being able to pay its obligations through cash because the higher the
Operating Cash Flow, the higher the trust that the investors have to the company that will, later on, affect stock
price and dividend policy.
J. Earning Persistence toward stock prices to manufacturing companies in Malaysia

In the SPSS results, Earning Persistence has a positive effect on stock prices with a sig value of 0,000 and
beta 0,408. This means that if the company’s ability to produce earning in the near future increases, same goes
for stock prices. However, if there’s a decrease in that ability then it will also result in a decrease in stock prices.
It is like this because, to investors, a substantial earning in a specific time period is still not enough, and it will
result in them significantly measuring the earnings persistence. The result of this research supports the results of
Mohamad Nasir dan Mariana Ulfah (2008) and Fathurrochman (2014) but does not support the researches of
Meythi (2006), Dianiati et al. (2006) that state that Earning Persistence does not affect stock prices.
K. Operating cash flow’s effect toward stock prices with earning persistence as an intervening variable to
manufacturing companies in Indonesia
Based on the results of the SPSS test, Operating Cash Flow doesn’t affect stock prices with a sig value of
0,649 and beta 3,83, and with the previous data, Operating Cash Flow doesn’t affect Earning Persistence and
Earning Persistence gives a positive sig toward stock prices. Because Operating Cash Flow doesn’t affect stock
prices then Earning Persistence is not an intervening variable.
Cash flow from operating activities reports a summary of the earnings and the payment of cash from
operational activity (Reeve et al., 2013:26. This cash flow report will show how the company’s performance is
in doing their operation to get profit. The rise of Operating Cash Flow will also increase the earning so that the
persistence will also increase. If the quality of the earning gets better and is followed by a high rate of Operating
Cash Flow, stocks will be seen as liquid, which will make the shared sale value increase.
This research shows that the direct relationship of Operating Cash Flow towards stock price as well as an
indirect relationship affects the earnings persistence. However, the Earning Persistence does not affect the stock
prices. And so, this method of analysis cannot be continued because it doesn’t meet the criteria of intervening
variables. This shows that the earnings persistence doesn’t have a load of information towards stock prices so
that the investors can’t differentiate the information in the earning and can only see the earning as a whole. The
result of this research treads the same road as the research from Meythi (2006).
L. Operating cash flow’s effect toward stock prices with earning persistence as an intervening variable to
manufacturing companies in Malaysia
According to the results of the SPSS test, it shows that Operating Cash Flow doesn’t affect stock prices
with a sig value of 0,876 and beta -0,006, and in the previous data, Operating Cash Flow affects sig positive
toward Earning Persistence; which does affect the sig to the stock price. Because the Operating Cash Flow
doesn’t affect the earnings persistence, it’s not an intervening variable.
CONCLUSION
Based on the statements above, then the conclusion of this research will be:
1. Operating Cash Flow can’t affect the earnings persistence to manufacturing companies in Indonesia. Based
on the SPSS tabulation results, Operating Cash Flow does not affect Earning Persistence with a sig value of
0,955 and beta -3,172
2. Operating Cash Flow can affect the earnings persistence to manufacturing companies in Malaysia from the
years 2014 – 2017. Based on the results of the SPSS tabulation test, Operating Cash Flow positively affects
the Earning Persistence along with the sig value of 0,000 and beta 7,412.
3. Book tax differences can affect the earnings persistence in Indonesia to manufacturing companies in
Indonesia from the years 2014 – 2017. Based on the SPSS tabulation results, it shows that BTD has a
positive effect on Earning Persistence with a sig value of 0,026 and beta 53,83.
4. Book tax difference can affect Earning Persistence to manufacturing companies in Malaysia from 2014 –
2017. Based on the results of the SPSS, Book tax difference affects the earnings persistence with a sig value
of 0,000 and beta -168,376 that point to a negative arrow. This means that the difference between

accounting earning and fiscal earning will increase, and so the ability of the company in producing earning
in the future will lessen.
5. Debt Level can affect the earnings persistence to manufacturing companies in Indonesia in the years 2014 –
2017. Based on the SPSS tabulation results, Debt Level has a positive effect on Earning Persistence with a
sig value of 0,019 and beta 68,164.
6. Debt Level has an effect on Earning Persistence to manufacturing companies in Malaysia from the yeas
2014 – 2017. According to the tabulation results of the SPSS, Debt Level affect the earnings persistence
with a sig value 0,000 and beta 2,078 on a positive effect.
7. Earning Persistence affects stock prices to manufacturing companies in Indonesia from the years 2014 –
2017. Based on the SPSS tabulation results, Earning Persistence positively affects stock prices with a sig
value of 0,000 and beta 0,003.
8. Earning Persistence affects stock prices to manufacturing companies in Malaysia from the years 2014 until
2017. The SPSS test results show that Earning Persistence positively affects the sig value of 0,000 and beta
0,048.
9. Operating Cash Flow doesn’t affect the stock prices with Earning Persistence as an intervening variable to
manufacturing companies in Indonesia from the years 2014 – 2017. Based on the SPSS tabulation results,
Operating Cash Flow doesn’t affect stock prices with a sig value of 0,649 and beta 3,83, and in the previous
data Operating Cash Flow doesn’t affect Earning Persistence and Earning Persistence gives a positive sig
effect toward stock prices.
10. Operating Cash Flow doesn’t affect the stock prices with Earning Persistence as an intervening variable to
manufacturing companies in Malaysia from the years 2014 – 2017. Based on the SPSS tabulation results,
Operating Cash Flow doesn’t affect stock prices with a sig value of 0,876 and beta -0,006, and in the
previous data Operating Cash Flow does affect Earning Persistence and Earning Persistence affects sig to
the stock prices. Because the Operating Cash Flow doesn’t affect the earning of persistence, not as an
intervening variable.
Limitations of this study and suggestions for further research:
The value of adj R square in this research is very low, the next research is advised to have more
independent variables for manufacturing companies in Indonesia and Malaysia.
This research does not compare Indonesia and Malaysia; the next one, however, may also add a
discussion for the difference between the two countries.
ACKNOWLEDGMENTS
Researchers are sincerely thankful to STIE Perbanas Surabaya for providing the opportunity to write a
research paper in the form of a internal research on the topic “ Earnings Persistence in Affecting Stock’s Prices
of Malaysia and Indonesia Manufacturing Companies”.
REFERENCES
Aprianti, S. (2017). Pengaruh Komponen Arus Kas Terhadap Harga Saham Pada Perusahaan Manufaktur Sektor
Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia. Jurnal ACSY Politeknik Sekayu,
VI(I), 31–40.
Ball, R., & Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting
Research, 159–178.
Barus, A. C., & Rica, V. (2014). Analisis Faktor-Faktor Yang Mempengaruhi Persistensi Laba Pada Perusahaan
Manufaktur di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil, 4(2), 71–80.
Brigham, Eugene F. dan Houston, J. F. (2011). Dasar-dasarManajemenKeuanganTerjemahan Edisi 10. Salemba
Empat.
Dewi, N. P. A. L., & Putri, I. G. A. . A. D. (2015). Pengaruh Book-Tax Difference, Arus Kas Operasi, Arus Kas
Akrual, Dan Ukuran Perusahaan Pada Persistensi Laba. E-Jurnal Akuntansi Universitas Udayana, 10(1),
244–260.
Dianiati, Ninna, & Suhairi. (2006). Pengaruh Kandungan Informasi Komponen laporan Arus Kas, laba Kotor
dan Size Perusahaan terhadap Expected Return Saham (Surbei pada indi=ustri textile dan automotive yang
terdaftar di BEJ. Simposium Nasional Akuntansi IX Padang.
Fanani, Z. (2010). Analisis Faktor-Faktor Penentu Persistensi Laba. Jurnal Akuntansi Dan Keuangan Indonesia,
7(1), 109–123.

Fathurrochman. (2014). Pengaruh Arus Kas dan Persistensi Laba Terhadap harga Saham (studi kasus Jakarta
Islamic index). Economic:Jurnal Ekonomi Dan Hukum Islam, 4(2).
Hans Kartikahadi, Rosita Uli Sinaga, Merliyana Syamsul, S. V. S. dan E. T. W. (2016). Akuntansi Keuangan
Berdasarkan SAK Berbasis IFRS. Ikatan Akuntan Indonesia.
Meythi. (2006). Pengaruh Arus Kas Terhadap Harga Saham Dengan Persistensi Laba Sebagai Variabel
Intervening. Simposium Nasional Akuntansi IX, 1–24.
Mohamad Nasir dan Mariana Ulfah. (2008). Pengaruh Arus Kas Operasi Terhadap Harga Saham Dengan
Persistensi Laba Sebagai Variabel Intervening. Jurnal MAKSI, 8(1), 74–86.
Rudianto. (2012). Pengantar Akuntansi Konsep dan Teknik Penyusunan Laporan Keuangan. Penerbit Erlangga.
Suandy, E. (2016). Perencanaan Pajak. Penerbit Salemba Empat.
Suwardjono. (2015). Teori Akuntansi Perekayasaan Pelaporan Keuangan. Ikatan Akuntansi Indonesia.

Factors Affecting Safety Performance: Case Study at PT

Pamapersada Nusantara
Muhammad Nabawi1, A Izzuddin Abdissalam2, Anita Maharani3, Lidya Lidya4
Bina Nusantara University
Email : muhammadnabawi08254@gmail.com1 zudin19@gmail.com2 anita.maharani@binus.edu3
lidya001@binus.ac.id4
ABSTRACT
Purpose: The purpose of this study is to see the impact that safety performance can have on technical
competencies, non-technical competencies, technical training and non-technical training
Design/methodology/approach: The research method referred to in this study is quantitative research, and the
object of this research is PT. Pamapersada Nusantara, further using 89 respondents as a research sample, refers
to the structural equational modelling model.
Findings: The results showed that the respondents considered that technical training had nothing to do with
safety performance, while other hypotheses were proven.
Research limitations/implications: Although we found that technical competency and non-technical
competency influence safety performance, it still need further exploration in order to explore other factors that
influence safety performance; also, there will be a necessity for research to explore within mining companies
Practical implications: The managerial implication of this research is that the company can evaluate the
technical training implemented, which is related to the readiness of the instructor, the implementation of
classroom learning activities, simulator activities, field practice activities, the content of the material following
the training objectives, and the benefits felt by employees who have attended technical training.
Originality/value: This paper originated from exploring within one particular mining company
Keyword: Influences, Factor, Mining, Performance, Safety.

Revised: April 30th, 2021
I. INTRODUCTION
In recent years, occupational safety-related issues have become an increasingly attractive topic in the
professional world. Management issues related to K3LH manage well by the company, such as quality,
environment, and human resources in the past decade. In various studies, various countries have implemented
occupational safety and health performance indicators Fu, G., Dend, N-J., Zhang, S-L., Xue, Z-J. and Gong,
(2010); for example, in China, there have been attempts to support the low number of accidents in the workplace
(Yang, 2011).
Safety performance is critical because effective work safety management requires an appropriate and
reliable performance measurement tool, namely safety performance. Thus, industries with a high level of risk
due to work accidents such as construction, oil and gas, manufacturing and mining certainly make safety
performance one of their KPIs. Operations in the mining industry are a significant source of risk for work safety.
For example, in China's coal industry, fatal incidents in coal mining activities account for 70% of the total
number of fatal incidents globally (Hong Chen, 2011). In Indonesia, fatal incidents account for 16% of total
Factors Affecting Safety Performance: Page │ 373

Case Study at PT Pamapersada Nusantara
work accidents in mining activities based on data from the Director-General of Mineral and Coal of the Ministry
of Energy and Mineral Resources from 2018 to 2020.
Performance defines as an act or work carried out. Performance assesses how a person has worked than
predetermined targets, be it individual work or within the organization's scope (Cushway, 2002). Within the
organization's scope or company, performance appraisal carried out to determine the extent to which an
organization's ability to achieve planned targets includes operational or financial aspects. In industries with a
high level of risk due to work accidents such as construction, oil and gas, manufacturing, and mining, of course,
safety performance is one of the KPIs. In the coal mining industry, safety performance is critical because of the
high risk of work accidents in operations. For example, in the coal industry in China, fatal incidents in coal
mining activities account for 70% of the total number of fatal incidents globally.
The definition of safety performance use is related to several levels of injuries, work accidents and diseases
(Iraj Mohammadfam, 2016). Another opinion is that safety performance defines the quality of work related to
safety (Björn Nevhage, 2008). Also, we found literature states that safety performance is the level of safety that
determines the incidence of work accidents, injuries and deaths Abdallah Mohammad Ashour, (2018)
(Bhattacharjee, 1991)The fundamental cause of the accident rate in the mining industry is unsafe conditions,
unsafe actions. Unsafe conditions can arise through preliminary mine design, geological factors, poorly
maintained equipment, inadequate supervision, while unsafe actions often arise due to unsafe behaviour
(Bhattacharjee, 1991).
If there is a work accident, it will negatively impact the company's performance, both operationally and
financially. Work accidents will result in higher costs in mining operations because extra costs will arise,
namely through workers' compensation and reducing production levels Bhattacharjee, (1991), and confirms
work safety is one of the keys to a company's success because, with good work safety management, the
company's economic strength will also increase. The statement corroborates both opinions that good safety
performance and high productivity must go hand in hand and should not be separated (Memarian, 2016).
The quality of work or employee performance, of course, is greatly influenced by employee competence.
Knowledge, skill, attitude (KSA) is an ideal model for behaviour change, and this shows that employees with
good safety attitudes have good safety behaviours (Hui Key Lee, 2017). Emphasizes individual performance and
company performance depend on individual competencies so that improving the quality of employee
competencies must always be appropriately managed in order to be able to meet the demands of their work.
Companies must continue to strive to improve employee competencies, both technical and non-technical,
to achieve performance targets. Competency enhancement allows employees to increase knowledge and share
information, and ultimately meet organizational demands. One way to improve competence is through training.
States that one of the significant aspects affecting employee competence in HRM practice is training (technical
and non-technical). By gaining the appropriate knowledge, skills and attitudes through training, employees can
work more effectively and prepare for future jobs (Wright, 2001).
To achieve safety performance excellence, organizations in the mining industry often adopt a safety
management system or a behaviour-based systems approach to managing workplace safety. PT Pamapersada
Nusantara is one of the coal mining industry players with the largest market share in Indonesia. Total coal
production of 85 million tons and coal overburden material production of 780 million cubic meters has 15 work
locations spread across Kalimantan and Sumatra. PT Pamapersada Nusantara has made many efforts in
implementing a workplace safety management system, one of which is by providing training to all employees,
especially at the level of heavy equipment operators who have the highest risk of accidents. The number of
heavy equipment operators managed by PT Pamapersada Nusantara is 9400 people, or nearly 42.7% of all
employees. Training is an activity directed at acquiring knowledge, skills, and attitudes in a direct application
(Aguinis, 1998). The training provided to employees expected to improve employee competence, both
technically and non-technically, which will support the achievement of safety performance. However, based on
the work accident statistical report data from the SHE Department for 2017 to 2019, the number of work
accidents each year exceeds the stated threshold limit. Likewise, in 2020, data on work accident statistics up to
October 2020 were 350 work accidents where unsafe actions by heavy equipment operators caused 45% of the
incidents.
In general, research on the relationship between training and performance discusses the direct relationship
between training as the independent variable and performance as the dependent variable. Much of the literature
has revealed a relationship between providing training to employees on employee competencies; even so, the
following training must be right on target. In his research, Gayatri Panda, (2018) found an impact of training
based on competency-based training needs analysis (TNA). In the literature, identifying training needs is
essential to improve employee competence in facing challenges; therefore, training design must bridge the gap
between current employee competencies and future needs. Other literature shows that TNA and training
effectiveness are positively related to employee performance. Rahamah Mahmood, (2018) However, this study

shows that competence is only a partial mediator in the relationship between training and employee
performance.
There is a relationship between training and competencies that affect individual and organizational
performance. However, the previous literature has not specifically explained the relationship between training
from technical or non-technical sessions on safety performance in industries with a high risk of work accidents,
such as the mining industry. The influence of both technical and non-technical competencies in the relationship
between training and safety performance has not explicitly explained in the mining industry. This study will
investigate the relationship between technical & non-technical training on safety performance mediated by
technical & non-technical competencies. Based on the explanation above, the purpose of this study is to see the
relationship between technical and non-tennis training provided to operators, technical and non-technical
competencies, to the safety performance of operators at PT. Pamapersada Nusantara.
Technical training is identical to skills training where the aspects provided during the training are technical
or how to operate, or how to do it. The significant influence of training and development on employee
competencies found from the research results (Otoo, 2018). By applying newly learned skills, knowledge and
attitudes in daily work, showing better abilities and competencies in doing their jobs, and this is in line with the
inner opinion of Appiah, (2010), which emphasizes that training and development results in benefits related to
increased performance for employees and the organization by positively influencing employee performance
through the development of knowledge, skills, abilities, competencies and employee behaviour.
This training delivered to experts or employees in an operational scope with specific jobs such as welder,
mechanic, heavy equipment operator, and many others. Technical training for Heavy Dump Truck operators at
PT Pamapersada Nusantara contains knowledge and skills in carrying equipment. Simamora, (2006) defines
technical training, which is often also called skill training, as training often encountered in organizations. the
training program is relatively simple. Needs or shortcomings identify through careful assessment—the training
effectiveness rating criteria based on the assessment phase's objectives. Technical training interpreted as an
effort to improve the ability to use the knowledge, methods, techniques and equipment needed to carry out
specific tasks (Blanchart, 1992).Technical training can be assessed reliably by one expert instructor, while non-
technical training is asses by two trainers (instructors) who provide appropriate conditions at the time of
observation (WYL, 2008). The following from the training indicators, according to Dessler, (2015) are as
follows: 1 ) instructors (adequate qualifications/competencies, motivating participants, needs for feedback), 2)
training participants. Training participants must, of course, be selected based on specific requirements and
appropriate qualifications (enthusiasm for training, desire to pay attention), 3) methods (method suitability with
the type of training, the suitability of the method with the training material), 4) the training material (increasing
the ability, the suitability of the material with the training objectives), 5) the training objectives (the skills of the
trainees, understanding the work ethics of the trainees).
Technical training will undoubtedly benefit employees or employees in an operational scope with specific
jobs so that employees can carry out their duties productively and safely. Mackelprang, (2012)who argue that
improving employee capability training plays an essential role in improving overall organizational performance.
Zumrah, (2013) states that employees who attend training apply new skills, knowledge and attitudes in their
daily work. Training related to safety is vital, primarily to educate employees about safety practices and
compliance; this will provide accident prevention and control (Cooper, 2006).
A. Operator technical training has a relationship with operator safety performance.

Non-technical training is something other than the technical aspects of a job. Non-technical training aims
to train and teach non-technical aspects or aspects of individual soft skills that are often associated with
interpersonal, emotional, and behavioural skills (Rainsbury, 2002). Also, non-technical training can improve
interpersonal skills and the behaviours needed to apply technical skills and knowledge in the workplace (Melvin
R. Weber, 2009). Non-technical training can provide all levels of employees, and even non-technical training
can complement technical training and is a requirement for successful performance in the workplace. In general,
non-technical training indicators are not much different from technical training, only with significant differences
in training materials. In non-technical training for Heavy Dump Truck operators at PT Pamapersada Nusantara,
the material focuses on behavioural attitudes, discipline and communication.
Behavioural factors significantly affect safety performance, and this is following the opinion of which
states that unsafe behaviour is said to contribute directly and indirectly to 90% of all workplace accidents and
incidents. Therefore, non-technical training will help improve behavioural factors; Seiler, (2010) states that
training can change employees' behaviour, attitudes, and values about their work and the organization as a
whole. Appiah, (2010)Training and development, including non-technical training, will produce benefits related
to increased performance for employees and organizations by positively influencing employee performance
through the development of knowledge, skills, abilities, competencies, and employee behaviour.

B. Non-technical operator training has a relationship with operator safety performance.

Competence as a fundamental character of a person that causes him to show effective or superior
performance in a job Spencer, (1993) . Mulder, (2007) defines competence as a generic professional ability that
consists of an integrated set of knowledge, skills, and attitudes. Boyatzis, (2018) states that competence is the
existing capacity of someone who can make that person able to fulfil what is required by work in an
organization to achieve the expected results.
Employee competencies have a significant influence on organizational performance (Otoo, 2018).
emphasizes that employee competence is a combination of knowledge, behaviour and skills that secretly gives a
person the potential to carry out their duties effectively. Thus his research, Otoo, (2018) states that several other
authors argue that increasing employee competence is very important for organizational performance.
Competence consists of five indicators: motives, traits, self-image, knowledge, and skills (Spencer, 1993).
Boyatzis, (2018) expresses competence as a characteristic that underlies a person, such as motives, traits, skills,
self-image, social roles, or knowledge. Some authors define competence as a concept that describes the
prerequisites for job performance and organizational results, as indicated by indicators of skills, character,
quality, abilities, capacities and capabilities (Worley, 2009).
Hutapea, (2008) defines technical or functional competencies (technical/functional/complex competencies
/ hard skills), which is a description of what a person must know or do to carry out his job correctly. Hard
(technical) competency is a skill related to specific technical knowledge and is task-oriented . Technical
competence is mainly cognitive, which is likely to be influenced by an individual's intellectual intelligence (IQ)
(Rainsbury, 2002). Technical competency refers to the technical category skills in doing work (Melvin R.
Weber, 2009).
Employee competence can be improved through training programs and can further improve employee
performance as a whole. Increasing employee competence and organizational development is one of the primary
forms of training and development Otoo, (2018), and also supported by research conducted, which reveals that
employee competence has a mediating effect between the management function and human resource
development and service quality for workers in the hospitality industry in Malaysia.
C. Operator technical competence mediates the relationship between operator technical training and
operator safety performance.
Non-technical competence is closely related to behaviour and is often called behavioural competency (soft
competency / soft skills). Soft competency is interpersonal skills or behaviours needed to apply technical skills
and knowledge in the workplace (Melvin R. Weber, 2009). Non-technical competence is primarily affective and
behavioural and is likely to be influenced by emotional intelligence (EQ) (Rainsbury, 2002). Also, non-technical
competence is how a person expected to behave in order to do his job well (Hutapea, 2008).
Non-technical competency indicators are non-technical things tied to individuals, such as creativity,
collaboration, and complexity which consider necessary for employees to succeed. Meanwhile, individual soft
competency is often associated with interpersonal, emotional, and behavioural skills Rainsbury,
(2002).Technical competence is after employees get technical knowledge obtained from schools, universities, or
training centres that usually focus on technical expertise in their fields. Knowledge will assist an individual in
contributing to the achievement of the organization's business objectives.
In previous research, soft competency is considered necessary for work performance Spencer, (1993),and
this is also true in the mining industry where research results J. Maiti, (2004) found that 'risk taker' behaviour
significantly causes workers to be prone to accidents. Employees' non-technical competencies can be improved
through effective non-technical training programs and further improve overall employee performance. By
acquiring the appropriate knowledge, skills and attitudes through training, they can perform their current jobs
more effectively and prepare for future jobs (Wright, 2001). Found that employee competence is a partial
mediator between the training function and employee performance and states that competence is the primary
mediator between training interventions and job performance.

D. Operator non-technical competence mediates the relationship between operator non-technical training
and operator safety performance.
Technical
Competency
H3
Technical Training
H1
Safety
Performance
H2
Non-Technical
Training
H4
Non-Technical
Competency
Figure 1. Research Model
II. METHODOLOGY
Our research is research with quantitative methods. Our research design is a non-contrived setting. In this
study, researchers chose an individual unit of analysis because we wanted to see the data collected from each
individual regarding the relationship of training that HD heavy equipment operators have received with their
performance, especially in terms of safety. Our study was included in a cross-sectional study based on the data
collection time because researchers only collected data once in a few weeks or months.
In this study, the population was all 785 Heavy Dumptruck Operators in 5 Districts representing the
characteristics and types of work areas in PT Pamapersada Nusantara, ADRO, ARIA, ASMI, INDO, KIDE,
KPCS districts. Based on data from the company's Human Capital Department, there are currently 850 HD 785
operators working in the district. We made a sample frame from a population of 850 HD operators according to
our research frame, namely the HD 785 operator who had attended technical and non-technical training.
Sampling uses a proportional random sampling method based on the number of HD 785 Operators in one
district to the total number of HD 785 Operators in the target population. This method of research results is base
on the distribution of districts. With this method, the number of samples to be studied is 89 people.
The data we need in this study are primary. The method we will use is to obtain primary data is a
questionnaire because our research strategy is a survey where the questionnaire will be compiled with the help
of Google Form software so that it is easy to process and sent to the respondent's email address according to the
criteria for our sample frame research. We will explain this questionnaire to the respondents via email, and we
will also include it in the cover letter of the questionnaire (attached).
In this study, we used a survey strategy to describe, compare, or explain their knowledge, attitudes, and
behaviour (Fink, 2003). This survey includes cross-sectional studies, questionnaires or structured interviews for
data collection and generalizing the sample to the population.
Furthermore, the validity and reliability conducted to ensure the questionnaire measuring tool are valid and
usable—regression analysis used as a measure for the study . A statistical test will carry out using the Structural
Equation Modeling (SEM) method using the SmartPLS software in testing the data. There are two analyzes,
namely the Measurement Model, to measure validity and reliability. Meanwhile, the Structural Model (Multiple
Regression) is used to test the hypothesis.


This study succeeded in obtaining 100% of the survey filling as previously targeted. The process carried
out by researchers in order to encourage respondent participation is by providing a cover letter at the beginning
of the online questionnaire page as a form of introduction to the researcher and conveying the aims and
objectives of the research. Furthermore, we identified the profile of our research respondents, all of whom were
male, held the position of HD 278 operator, and had passed technical and non-technical training, then the
majority of respondents had a service period of more than five years.
Next, the researcher checks the statement items used to measure the proposed research variables.
Researchers take a method by processing all statement items using SmartPLS. The result obtained from the
initial procedure is Convergent Validity, which will consider as significant if it has a value> 0.5. As the opinion
of states that the loading factor> 0.5 is significant. Also, the rule of thumb in SEM states that the minimum
value for loading factor is> 0.7, so the researchers decided to exclude items with a value of <0.7, among others,
are PT04 and KT04 (information: for the attached loading factor table).
After removing items that do not meet the criteria, the next researcher looks at the Composite Reliability
and Average Variance Extracted results.
Table 1. Reliability Test

Cronbachs Rho_A Composite Average
Alpha Reliability Variance
Extracted
Technical training 0,913 0,916 0,933 0,698
Non technical 0,907 0,910 0,931 0,729
competency
Technical 0,954 0,956 0,961 0,757
competency
Non technical 0,903 0,904 0,929 0,723
training
Safety Performance 0,870 0,879 0,901 0,603
Based on the test results in Table 1., all items (except PT04 and KT04) can be continued for the next test,
namely, the validity test. To test the validity, researchers refer to the results in discriminant validity analysis. In
the discriminant validity table, the researcher compared the AVE roots to each construct's AVE roots, preferably
higher than the correlation between the constructs based on.
Table 2. Discriminant Validity

Techni Non- Technical Non Safety
cal Technic Competen Techni Performance
Traini al cy cal
ng Compet Traini
ency ng
Technical 0,835
training
Non- 0,773 0,854
technical
competency
Technical 0,776 0,860 0,870
competency
Non- 0,700 0,707 0,623 0,850
technical
training
Safety 0,709 0,818 0,795 0,706 0,777
Performanc
e
Based on the results of the validity test and reliability test, the model is declared valid. The researcher sees
the magnitude of technical training, non-technical competence, technical competence, and non-technical training
on safety performance before taking hypothesis testing as follows.

Table 3a. R Square

R Square Adjusted R Square
Safety Performance 0,731 0,718
Table 3a. The above illustrates the effect of the independent variable on safety performance; from the
results above, safety performance is influenced by 73.1% a combination of technical competence, non-technical
competence, technical training and non-technical training. This study proposes a model that also involves non-
technical competence and technical competence as the dependent variable, which shows the following results.
Tabel 3b. R Square

R Square Adjusted R Square
Technical competency 0,603 0,598
Non technical 0,500 0,494
competency
Based on Table 3b., Referring to Figure 1., above Non-Technical Competence will be influenced by Non-
Technical Training by 50%, while Technical Training will influence technical Competence by 60.3%.
Furthermore, temporarily that there are dynamics between variables, which of course, will be interesting to
know further from hypothesis testing. The final step in testing the research data is hypothesis testing using PLS-
SEM. In testing this hypothesis, bootstrapping is an attempt to provide consistent data for estimated factor
numbers. The bootstrap provides information on the stability of the estimated coefficients, in which, in this
process, a large number of subsamples from the original sample with replacement. The bootstrap analysis
results, the SmartPLS tool displays the T-statistics and P-values for the estimated structural model derived from
the bootstrap procedure. The t-statistic value shows the magnitude of the effect of the independent variable on
the dependent variable. The t value greater than 1.96 (p <0.005) indicates that the relationship is significant at
the 95% confidence level (α = 0.05).
Table 4. Hypothesis Testing

Hypothesis t-Statistic P Value Decision(s)
H1 0,045 0,964 Not supported
H2 2,983 0,003 Supported
The following is a structural model of this study.
Figure 2. Structural Model

Based on table 4, the researcher can find out that the operator's technical training is not proven to have a
relationship with the operator's safety performance, while the other three hypotheses are accepted, and the
discussion for the results of this test discussed in the following paragraph.
In testing, the first hypothesis, which is not supported, shows a fascinating phenomenon. The company,
which is the object of this research, stipulates the obligation to carry out technical training for its employees. In
concept, technical training interpreted as an effort to improve the ability to use the knowledge, methods,
techniques and equipment needed to carry out specific tasks, as expressed by (Blanchart, 1992).The results of
this study certainly contradict Harrison, (2000) view; and Appiah, (2010),which emphasizes that training and
development produce benefits related to increased performance for employees and for the organization by
positively influencing employee performance through developing knowledge, skills, abilities, competencies and
employee behaviour.
In the second hypothesis test, accepted and means that non-technical training significantly affects safety
performance; this is in line with the fact that non-technical operator training has a significant relationship with
operator safety performance. Appiah, (2010) states that training and development, including non-technical
training, will produce benefits related to improved performance for employees and organizations by positively
influencing employee performance by developing knowledge, skills, abilities, competencies and employee
behaviour.
The third hypothesis test is accepted, meaning that technical competence significantly mediates the
relationship between technical training and safety performance. The results of this study confirm Hutapea,
(2008), which defines technical or functional competencies (technical/functional/complex competencies / hard
skills), which is a description of what a person must know or do in order to carry out his job well. Hard
(technical) competency is a skill related to specific technical knowledge and is task-oriented. Technical abilities
are primarily cognitive, likely to be influenced by an individual's intellectual intelligence (IQ) (Rainsbury,
2002). Technical competence refers to the technical category skills in doing work .
The fourth hypothesis test is supported, meaning that non-technical competence significantly mediates the
relationship between non-technical training and safety performance and is in line with the opinion that the
quality of work or employee performance is influence by employee competence. Knowledge, skill, attitude
(KSA) is an ideal model for behaviour change, and this shows that employees with good safety attitudes have
good safety behaviours (Hui Key Lee, 2017). Thus, individual performance and company performance depend
on individual competence, so that the improvement of the quality of employee competencies must always
manage adequately in order to be able to meet the demands of their work.
CONCLUSION
Based on the research results, some things need special attention from the company, namely technical
training concerning safety performance. This study indicates that respondents' perceptions of technical training
have no relationship with safety performance. In reality, in companies, technical training is an essential part of
ensuring safety performance. Next, this study shows the respondent's perception that non-technical training has
a relationship with safety performance, and this also applies to non-technical and technical competencies when
viewed about operator safety performance. The managerial implication of this research is that the company can
evaluate the technical training implemented, which is related to the readiness of the instructor, the
implementation of classroom learning activities, simulator activities, field practice activities, the content of the
material following the training objectives, and the benefits felt by employees who have attended technical
training.
REFERENCES
Abdallah Mohammad Ashour, Z. H. (2018) ‘A CONCEPTUAL FRAMEWORK FOR UPGRADING SAFETY
PERFORMANCE BY INFLUENCE SAFETY TRAINING, MANAGEMENT COMMITMENT TO
SAFETY AND WORK ENVIRONMENT: JORDANIAN HOSPITALS.’, International Journal of
Business dan Social Research, 11.
Aguinis, W. C. (1998) Applied Psychology in Human Resource Management.
Appiah, C. (2010) Human Resource Strategies for International Growth. Routledge, London.
Bhattacharjee, A. (1991) ‘Mine safety management: an application of risk analysis, forecasting techniques, and
Markov process to injury experience data’, Pennsylvania: The Pennsylvania State University.

Björn Nevhage, H. L. (2008) A Conceptual Model, Methodology and Tool to Evaluate Safety Performance in an
Organization. Helsinborg: Lunds tekniska högskola.
Blanchart, H. d. (1992) Situational Leadership.
Boyatzis, R. E. (2018) ‘Competencies in th 21st century’, Journal of Management Development, 10.
Cooper, D. d. (2006) Business Research Methods. USA: McGraw-Hill.
Cushway, B. (2002) Human Reseurce Management. Jakarta: PT. Elex Media.
Dessler, G. (2015) Manajemen Sumber Daya Manusia. Jakarta.
Fink, A. (2003) The Survey Handbook (2nd ed.). Thousand Oaks, California: Sage Publications, Inc.
Fu, G., Dend, N-J., Zhang, S-L., Xue, Z-J. and Gong, C.-S. (2010) ‘Research on occupational safety and health
performance index in US, UK and Australia and its reference to China’, , China Safety Science Journal,
Vol. 20, p. pp.103–109.
Gayatri Panda, S. M. (2018) ‘Impact of Comptency Based Training Need Assesment on Individual
Performance : A Study on Employees of Essel Mining Industries.’, International Journal of Engineering &
Technology.
Harrison, R. (2000) ‘Employee Development, 2nd ed’, Institute of Personnel and Development (IPD), London.,
p. 218.
Hong Chen, Q. F. (2011) ‘Focusing on coal miners’ occupational disease issues: A comparative analysis
between China and the United States.’, Safety Science.
Hui Key Lee, H. A. (2017) ‘Assessment of Food Safety Knowledge, Attitude, Self-Reported Practices, and
Microbiological Hand Hygiene of Food Handlers’, Environmental Research Public Health, 14.
Hutapea, P. &. (2008) Kompetensi Plus. Jakarta: Gramedia Pustaka Utama.
Iraj Mohammadfam, M. K. (2016) ‘Evaluation of the Quality of Occupational Health and Safety Management
Systems Based on Key Performance Indicators in Certified Organizations’, Safety and Health at Work.
J. Maiti, S. C. (2004) ‘Determinants of work injuries in mines – an application of structural equation
modelling.’, Injury Control and Safety Promotion, p. 37.
Mackelprang, A. (2012) ‘The influence of types of training on service system’, International Journal of
Production, pp. 183–194.
Melvin R. Weber, D. A. (2009) ‘An exploratory study identifying soft skill competencies in entry-level
managers.’, Tourism and Hospitality Research, 9.
Memarian, B. (2016) ‘Supervisor Practices for Productivity and Safety: A Hot Asphalt Roofing Case.’, Center
for Construction Research and Training, 15.
Mulder, M. (2007) ‘Competence – the essence and use of the concept in ICVT’, European journal of vocational
training, 17.
Otoo, F. N. (2018) ‘The Mediating Role of Employee Competencies.’, Human Resources Management (HRM)
Practices and Organizational Performance, 22.
Rahamah Mahmood, O. C. (2018) ‘The Mediating Effects of Employee Competency on the Relationship
between Training Functions and Employee Performance’, International Journal of Academic Research in
Business and Social Sciences, 13.
Rainsbury, E. H. (2002) ‘Ranking workplace competencies: Student and graduate perception.’, Asia-Pacific
Journal of Cooperative Education, 18.
Seiler, S. (2010) ‘What is Best Practice for Training Intensity and Duration Distribution in Endurance
Athletes?’, International Journal of Sports Physiology and Performance.
Simamora, H. (2006) Manajemen Sumber Daya Manusia Edisi III. Jakarta: STIE YKPN.
Spencer, L. &. (1993) Competence at work : Models for superior performance. Canada: John Wiley & Sons.
Worley, T. G. (2009) ‘Organization Development & Change, 9th Edition’, Ohio: South-Western Cengage
Learning.
Wright, P. &. (2001) ‘Changing the mindset: the training myth and the need for word-class performance’,
International Journal of Human Resource Management, pp. 586–600.
WYL, T. V. (2008) ‘Technical and non-technical skills can be reliably.’, The Acta Anaesthesiologica
Scandinavica Foundation, 122.
Yang, N. (2011) ‘Study on improving statistics of work safety accidents in China’, Journal of Safety Science
and Technology, Vol. 7, p. pp.159–162.
Zumrah, A. (2013) ‘The consequences of transfer of training for service quality and job satisfaction: an
empirical study in the Malaysian public sector”, International Journal of Training and Development,.’,
International Journal of Training and Development, 274.

The Determinant Factors of Work Productivity at Port Operating

Company: Work Conflict, Work Stress and Leadership
Nugroho Dwi Priyohadi1, Nur Widyawati2, Siti Mutmainah3, Joko Suyono4

STIA dan Manajemen Kepelabuhan Barunawati Surabaya, Indonesia1,2,3
Universitas Narotama Surabaya, Indonesia4
Email: nur.widyawati@stiamak.ac.id
ABSTRACT
Purpose: The purpose of this study was to determine the effect of work conflict, work stress and leadership on
work productivity at the port operating company.
Design / methodology / approach: The method in this study uses a quantitative approach with multiple linear
regression analysis
Findings: The study was conducted at the port operating company in Surabaya
Research limitations / implications: Limits in the study use three independent variables and one dependent
variable. The independent variables are work conflict, job stress and leadership. The dependent variable is the
work productivity variable
Practical Implications: The population is 164 employees and the study sample is 62 employees determined by
the Slovin formula and random sampling.
Originality / Value: This research was conducted at the port operating company Surabaya
Keyword: Job Stress, Leadership, Work Conflict, Work Productivity

I. INTRODUCTION
What is very necessary to ensure the achievement of the company's long-term goals is work productivity.
According to Rachman, (2016) Productivity is an interdisciplinary approach to determining effective goals,
making plans, using productivity methods to use resources efficiently and still providing high quality.
Port operating company is one of the most important gateways in the trade industry which has an
important role in advancing the trade sector, especially in eastern Indonesia. Port operating company has several
subsidiary and spit-off company of the company, one of its subsidiaries is PT. X. PT. X is a subsidiary of port
operating company which is engaged in labor development or outsourcing. The existence of PT. X cannot be
separated from the commitment of the management of port operating company in improving labor welfare for
professional workforce management. Until now, the outsourcing worker of PT. X who was placed in the work
area of port operating company for 5,680 people who must continue to work on the work productivity factor of
employees. The object of this research is focused on 164 employees of PT X outsourcing in the port operating
company area with a sample of 62 people. This research was conducted to increase the productivity of
outsourced employees who have a fluctuating employee information level indicator. One of the factors that
affect employee productivity is work conflict, job stress and leadership.
This research was conducted to increase the productivity of outsourcing employees who have a fluctuating
level of employee information indicators. Some factors considered affecting employee productivity are work
conflict, job stress and leadership. The purpose of this study was to determine the effect of work conflict, work
stress and leadership on work productivity at the port operating company.
The Determinant Factors of Work Productivity at Port Operating Company: Work Conflict, Page │ 382
Work Stress and Leadership
Nugroho Dwi Priyohadi, Nur Widyawati, Siti Mutmainah, Joko Suyono
II. LITERATURE
A. Work productivity
According to Sinungan, (2014), productivity is a universal concept that aims to provide more goods and
services that are used by many humans, using fewer real sources, while according to Hasibuan, (2009)
Productivity contains a mental attitude that is always holds the view that today's life should be better than
yesterday and tomorrow is better than this result. According to Rachman, (2016) Productivity is an
interdisciplinary approach to determining effective goals, making plans, application of the use of productivity
ways to use resources efficiently and maintaining high quality. Meanwhile, according to Edy, (2011), it is
revealed that work productivity is a mental attitude that is always looking for improvements to what already
exists, a belief that someone can do a better job today, yesterday, and tomorrow is better than today.
According to Sutrisno, (2010), the indicators of work productivity are ability, increase the results achieved,
morale, self development, quality and efficiency.
B. Work Conflict
Rivai, (2014) provides his opinion on work conflicts, according to him, work conflict is a mismatch
between two or more members or groups (in an organization / company) who have to share limited resources or
work activities and / or because of facts that they have different status, goals, values or perceptions.
According to Mangkunegara, (2014) work conflict is a "conflict that occurs between what a person expects
from himself, others, the organization and the reality of what is expected". A different thing was put forward by
Setiyana, (2013) according to him, work conflict is a “very difficult construction. To define stress in work that
occurs to a person, because some workers bring the level of work to a tendency to stress ”. Job stress is a
combination of sources of work stress, individual characteristics, and causes of stress outside the organization.
Job stress is a stressful condition that causes physical and psychological imbalances that affect emotions,
thought processes and employee conditions.
Conflict indicators according to Rivai, (2014) includes conflict within a person, conflict between
individuals, conflict between group members, and conflict between groups
a. From the results of previous research from Agusta, (2013), it is said that work conflict has a significant
negative effect on employee work productivity. According to Mangkunegara, (2014) work conflict is a
conflict that occurs between what a person expects of himself, other people, the organization and the
reality of what is expected. So the first hypothesis in this research is :
HI : work conflict has a negative effect on work productivity
C. Work Stress
Stress is a feeling of pressure experienced by employees in facing work, while Rivai, (2014) explains that
job stress is an imbalance of desire and ability to fulfill it, which causes important consequences for him.
Handoko, (2015) states that "Stress is a condition of tension that affects one's emotions, thought processes and
physical condition". Stress is our perception of a situation or condition in our own environment.
Work Stress Indicators can be measured from various dimensions, but in this study work stress will be
measured from 3 dimensions of Siagian, (2014) includes (a) workload, (b) role conflict, (c) role ambiguity.
Based on the results of previous research from Kintan Benvia Cherny, (2017), the result of this research
explained that work stress has a negative effect on work productivity. This is in accordance with Rivai, (2014)
opinion, who stated that work stress is an imbalance of desires and the ability to fulfill it, causing important
consequences for him. So the second hypothesis in this research is :
H2 : job stress has a negative effect on work productivity
D. Leadership
Kartini, (2014) says that leadership is a talent that is acquired as a special ability from birth, while
according to Yukl, (2015) says that process leadership influences others to understand and report what is needed
in carrying out and carrying out the task, as well as carrying out tasks. that, as well as carrying out that task a
process to facilitate individual and collective efforts to achieve common goals.
According to M. dan Rivai, (2009) leadership includes an influencing process in determining
organizational goals, motivating follower behavior to achieve goals, influencing groups and their culture.
Kartini, (2014) states that "Leadership is a talent acquired by a person as a special ability from birth".
Rivai, (2014) puts forward leadership divided by five indicators, as follows (a) the ability to foster good
cooperation and relationships, (b) bilities that have rights, (c) participatory leadership, (d) ability to delegate
tasks or time, (e) ability to delegate tasks or be authorized.
Previous research by Agusta, (2013) stated that leadership has a positive effect on employee productivity.
Yukl, (2015) says that leadership is a process of influencing others to understand and agree on what is needed in
carrying out tasks and how the process of carrying out that task, and is a process to facilitate individual efforts
and common or collective interests to achieve common goals efficiently and effectively. So the third hypothesis
can be proposed as follows:
H3 : leadership has a positive effect on work productivity.
From relationship and hypothesis stated above then he research model can be proposed as follows:
Figure 1. Conceptual Framework
III. METHODOLOGY
This type of research approach is a quantitative type. The data analysis technique uses multiple linear
regression with data collection using a questionnaire. The population of this study were all outsourcing
employees from X who served at the port operating company, equipped with 164 employees. Using the Slovin
formula, the number of samples taken in the study was 62 outsourcing employees of PT X who served at the
port operating company. The operational definition in this research is as follows:
Table 1. Operational Definition of Variables

Indicators (Rivai, 2014)
Conflict within a person;
Conflicts between individuals;
Work Conflict (X1)
Conflicts between group members;
Conflict between groups.
Indicators: Siagian (2014)

Work load;
Independent Variable Work Stress (X2) Role conflict;
Role ambiguity.
Indicators (Rivai, 2014)

Ability to foster good cooperation and relations;
Capabilities that have rights;
Leadership (X3)
Participative leadership;
Ability to delegate tasks or time;
Ability to delegate tasks or be authorized.
Indicators: Sutrisno (2010)
Capabilities;
Increasing the results achieved;
Dependent Variable Work Productivity (Y) Work spirit;
Self development;
Quality;
Efficiency.
Source: Processed Data (2021)
IV. DATA COLLECTION

The following shows the frequency distribution of respondents based on age and gender
Table 2. Characteristics of Respondents by Age

No. Age Quantity Percentage (%)
1 21-30 y.o 19 30.6%
2 31-40 y.o 25 40.3%
3 41-50 y.o 13 30%
4 >50 y.o 5 8.1%
Total 62 100%
Based on table 2, it can be seen that respondents from the age of 31 - 40 years have the highest number,
namely 25 respondents with a percentage of 40.3%.
Table 3. Respondent Category Based on Gender

No. Gender Quantity Percentage (%)
1 Male 23 37.1%
2 Female 39 62.9%
Total 62 100%
Based on table 3, the number of respondents with female gender has the largest number of 39
respondents with a proportion of 62.9%.
V. RESULTS AND DISCUSSION

In this study, questionnaires were distributed to 62 respondents of outsourcing employees from PT X, in
order to obtain primary data. The data being tested need to be tested with several tests. The first test is a
questionnaire test which includes validity and reliability tests. The second test is the classic assumption test
which consists of normality test, multicollinearity test, and heteroscedasticity test. The third test is multiple
linear regression analysis and the fourth test is the hypothetical test. The test results are as follows.
A. Validity test
Table 4. Validity Test Result of Work Conflict (X1)

Statement r-count r-table Remarks
X1.1 0.531 0.2500 Valid
X1.2 0.503 0.2500 Valid
X1.3 0.640 0.2500 Valid
X1.4 0.706 0.2500 Valid
X1.5 0.668 0.2500 Valid
X1.6 0.593 0.2500 Valid
X1.7 0.663 0.2500 Valid
X1.8 0.588 0.2500 Valid
Source: Primary Processed Data with SPSS (2021)
Tabel 5. Validity Test Result of Job Stress (X2)

X2.1 0.621 0.2500 Valid
X2.2 0.577 0.2500 Valid
X2.3 0.734 0.2500 Valid
X2.4 0.753 0.2500 Valid
X2.5 0.690 0.2500 Valid
X2.6 0.734 0.2500 Valid
Table 6. Validity Test Result of Leadership (X3)

X3.1 0.654 0.2500 Valid
X3.2 0.646 0.2500 Valid
X3.3 0.552 0.2500 Valid
X3.4 0.654 0.2500 Valid
X3.5 0.643 0.2500 Valid
X3.6 0.517 0.2500 Valid
X3.7 0.552 0.2500 Valid
X3.8 0.654 0.2500 Valid
X3.9 0.634 0.2500 Valid
X3.10 0.574 0.2500 Valid
Table 7. Validity Test Result of Work Productivity (Y)

Y.1 0.441 0.2500 Valid
Y.2 0.536 0.2500 Valid
Y.3 0.484 0.2500 Valid
Y.4 0.654 0.2500 Valid
Y.5 0.629 0.2500 Valid
Y.6 0.732 0.2500 Valid
Y.7 0.713 0.2500 Valid
Y.8 0.705 0.2500 Valid
Y.9 0.698 0.2500 Valid
Y.10 0.730 0.2500 Valid
Y.11 0.705 0.2500 Valid
Y.12 0.252 0.2500 Valid

Based on tables 4 to 7, it can be seen that variable conflict, job stress, leadership and productivity indicate
that all items are declared valid and can be used as research instruments.
B. Reliability Test
Table 8. Reliability Test Results

Cronbach’s
Variables Criteria Remarks
Alpha
Work Conflict (X1) 0.761 0.6 Reliable
Work Stress (X2) 0.774 0.6 Reliable
Leadership (X3) 0.809 0.6 Reliable
Work Productivity (Y) 0.843 0.6 Reliable

Based on table 8, it can be seen that all variables have reliable results, which means that the questionnaire
can be used in research.
C. Classic assumption test

Normality Test
Figure 2. Normally Test Results
Based on figure 2 above, it can show that the regression model is normally distributed.
Heteroscedasticity Test
Figure 3. Heteroscedasticity Test Results
In figure 3 it can be seen that the scatterplot does not form a certain pattern and the point spreads above,
so there is no heteroscedasticity.
Multicollinearity Test
Table 9. Multicollinearity Test Results

Collinearity Statistics
Variable Remarks
Tolerance VIF
X1 0,166 6,023 Multicollinearity does not occur
Based on table 9, the tolerance value for all variables is more than 0.1 and the variance inflation factor
(VIF) value is less than 10. So it can be concluded that the research data does not experience multicollinearity
between independent variables.
Multiple Linear Regression Analysis

Regression analysis is used to measure the extent of the relationship between the connected variables.
Based on the regression analysis using SPSS, the following results were obtained:
Table 10. Results of Linear Regression Analysis
B Value T Count Significance Conclussion

Constanta 4,762 1,769 0,082 -
X1 -0,426 2,428 0,018 Significant
X2 -0,764 5,291 0,000 Significant
X3 0,294 2,055 0,044 Significant
F Count 118,715 0,000 Significant
R 0,927
Rsquare 0,860
Based on table 10, it can be seen that work conflict (X1), job stress (X2), and leadership (X3) together
(simultaneously) have a significant effect on the dependent variable, namely work productivity (Y). This is
evidenced by the significant value of 0.000 smaller than alpha 0.05 with the Fcount value of 118.715 greater
than the Fcount of 2.76.
Based on table 10 it is also known that the work conflict variable (X1) has an effect on work productivity
(Y). This can be proven by the significance value of 0.018 which is smaller than 0.05 and with a tcount value of
2.428 which is greater than the label sebesae 2.00172. So it can show that the work conflict variable has a
significant effect on work productivity variables partially. The significance value for the work stress variable
(X2) is 0.000 smaller than 0.05 and the tcount value of 5.291 is greater than the t table 2.00172. So it can be
seen that the work stress variable (X2) has a significant effect on work variables partially. The significance
value for the leadership variable (X3) is 0.044 less than 0.05 and the tcount value of 2.055 is greater than the t
table of 2.00172. So it can prove that the leadership variable (X3) partially affects the work productivity
variable.
In table 10, the results show an R of 0.927 indicating that the relationship between work productivity and
work conflict (X1), work stress (X2), and leadership (X3) variables is strong, because the R value is more than
0.5, it can be said to be strong correlation. From the calculation of the multiple coefficient of determination with
the help of SPSS, it is known that the coefficient of multiple determination adjusted for R Square is 0.853 or
85.3%. This value shows the work productivity variable for work conflict (X1), work stress (X2), and leadership
(X3) variables, the remaining 14.7% is related to other variables which are not examined in this study.
VI. CONCLUSION
Based on the results of research with multiple linear regression, the researchers can conclude as follows:
Work conflict variable (X1) has a negative affects on work productivity (Y), This means that if work conflict
increases, work productivity will decrease. Job stress variable (X2) has a negative effect on work productivity
(Y), This means that if job stress increases, work productivity will decrease The leadership variable (X3) has a
positive effect on work productivity (Y), This means that if leadership increases, work productivity will
decrease.
REFERENCES
Agusta, D. (2013). Pengaruh Kepemimpinan Dan Konflik Kerja Terhadap Produktivitas Karyawan. Jurnal
Online Mahasiswa Fakultas Ekonomi Universitas Riau (JOM FE UNRI).
Edy, S. (2011). Manajemen Sumber Daya Manusia. Kencana.
Handoko. (2015). Manajemen Sumber Daya Manusia, Cetakan Pertama. Pustaka Setia.
Hasibuan, M. S. P. (2009). Manajemen Sumber Daya Manusia (Edisi revisi cetakan ke tiga belas). PT Bumi
Aksara.
Kartini, K. dan. (2014). Pemimpin dan Kepemimpinan. PT Raja Grafindo Persada.
Kintan Benvia Cherny, D. K. (2017). Pengaruh Stres Dan Motivasi Terhadap Produktivitas Kerja Karyawan
Pada Pt Epson Batam. Akuntansi, Ekonomi Dan Manajemen Bisnis, 5(1), 80–90.
Mangkunegara, A. A. P. (2014). Manajemen Sumber Daya Manusia Perusahaan. PT. Remaja Rosdakarya.
Rachman, T. (2016). Manajemen Sumber Daya Manusia Perusahaan. Ghalia Indonesia.
Rivai, M. dan. (2009). Manajemen Sumber Daya Manusia. Cetakan Kesembilan.
Rivai, V. (2014). Manajemen Sumber Daya Manusia untuk Perusahaan, Edisi ke 6. PT. Raja Grafindo Persada.
Setiyana, V. . (2013). Forgiveness dan Stres Kerja terhadap Perawat. Ilmiah Psikologi Terapaan Universitas
Muhammadiyah, 01(2).
Siagian, S. P. (2014). Manajemen Sumber Daya Manusia. Bumi Aksara.
Sinungan, M. (2014). Produktivitas : Apa dan Bagimana. Bumi Aksara.
Sutrisno, E. (2010). Manajemen Sumber Daya Manusia. Prenada Media Group.
Yukl, G. (2015). Kepemimpinan Dalam Organisasi (Edisi 7). Indeks.
BIOGRAPHIES
Nugroho Dwi Priyohadi, born in Bantul Yogyakarta, 20 November 1971, obtained a bachelor's degree in
psychology from UGM Yogyakarta, a professional industrial psychologist program from UBAYA, a master of
science from World Maritime University, Malmo, Sweden with a specialist in port management, a scholarship
from The Nippon Foundation, a scholarship Japanese Sasakawa. He also got PhD from Universitas Airlangga
Surabaya in 2020. He currently works as an employee of BUMN in Indonesia and as a lecturer and chairman of
STIA dan manajemen kepelabuhan Barunawati Surabaya Indonesia. His research interests include human
resource management and port management.
Nur Widyawati, born in Surabaya on June 4, 1992. Widya obtained her bachelor and master degrees at
Airlangga University Surabaya in 2014 and 2017. Her current position is as a lecturer at STIA Dan Manajemen
Kepelabuhan Barunawati Surabaya Indonesia. Her research interests include port management.
Siti Mutmainah, born in Mataram on July 12, 1993. Siti obtained her bachelor degree at STIA Dan Manajemen
Kepelabuhan Barunawati Surabaya Indonesia. She worked as an employee of BUMN in Indonesia. Her research
interests include human resource management and port management.
Joko Suyono is a lecturer at Narotama University, Surabaya, Indonesia. He is also as Head of Master of
Management at Narotama University, Surabaya, Indonesia. He got bachelor degree in business administration
and also accounting, he got master degree in industrial management and also in marketing management, and he
got doctoral degree in business administration. Prior becoming a lecturer, he is a practitioner as senior manager
in some multinational corporation such as Stanley Works Indonesia (USA Company), Ericsson Indonesia
(European Company) and Lotus Indah Textile Industries, a multinational company in the textile, spun yarns.
The Effect Of Environmental Performance On Firm Value Using

Financial Performance As Mediator Variable
Nurul Aini1, Nabilah Taqiyyah Faisal2

Faculty Economics and Business, Narotama University of Surabaya
Surabaya, Indonesia
nurul.aini@narotama.ac.id
ABSTRACT
Purpose: This study aims to examine the effect of environmental performance on firm value directly or
indirectly by employing financial performance as a mediator variable.
Design/methodology/approach: This research employs quantitative research. The population of the research is
all non-financial companies on the Indonesia Stock Exchange (IDX) in the 2014-2019 period with a sample of
282 firm-years. The employed data analysis technique is Warp PLS 6.0 carried out in the two testing stages; the
testing of the direct and the indirect effects of environmental performance variable on firm value.
Findings: Environmental performance has a significant positive effect on firm value; environmental
performance has no effect on financial performance; financial performance has a significant positive effect on
firm value; and financial performance is not proven as a variable that mediates the effect of environmental
performance on firm value.
Research limitations: The measurement of financial performance employs only one proxy; ROE. Measurement
of financial performance may use various proxies to produce more accurate findings.
Practical implications: This research provides an overview of the importance of implementing environmental
performance for a company in order to increase firm value or company reputation among investors in particular
and society in general.
Originality/value: This research is a development of previous studies, which produced varying research results,
with the addition of financial performance as a mediator variable.
Paper type: This research is categorized as a research paper.
Keywords: Environmental Performance, Financial Performance and Firm Value

I. INTRODUCTION
Firm value is vital and required in increasing the benefit of shareholders and stakeholders. Hence, the
management of a company must know the factors affecting this value. Firm value is indicated by the market
value of a company as well as the price when a company takeover occurs. One of the factors that influence firm
value is environmental performance. According to Cormier & Magnan (2007) , companies that have
responsibility toward the environment are considered as transparent, credible, securer and attractive in terms of
future financial prospects for investors and other stakeholders. Furthermore, environmental performance
constructively affects the market value development and the cost reduction. Yadav et. al (2015) tested the
influence of environmental performance on firm value by implementing the event study approach on
Newsweek’s announcement of 2012 Green Rankings for large US companies. The study found that the
announcement became positive news for investors and led to a significant positive impact on Standardized
Cumulative Abnormal Returns (SCARs). Also, the company's Green Score and Green Rank provide positive
impacts on their performance in the stock market.
Environmental performance management is the effort in preventing environmental pollution by applying
"Green Industry". The goal is to avoid the future materialized consequences because of the environmental aspect
The Effect Of Environmental Performance On Firm Value Using Financial Performance As Mediator Variable Page │ 390
and is directed to "Zero Impact" (Tjahjono, & Eko, 2013) . The public trusts and is satisfied with the products of
companies that have a good environmental performance. The bad environmental performance will affect the
community who choose to avoid the products which are considered unfriendly to the environment and may
damage the ecosystem (Ikhsan & Muharam, 2016).
However, the prior studies on environmental performance and firm value have resulted varying findings.
Moneva & Cuellar (2009) find that non-financial disclosures like environmental policies have no effect on firm
value. In the meantime, Jacobs et.al (2010) find the diverse results; the market does not react significantly to the
aggregated Corporate Environmental Initiatives (CEI) and Environmental Awards and Certification (EAC)
announcement, only in some sub-categories such as ISO 14001 certification, which is associated with positive
market reaction; but voluntary emission reduction is associated with negative market reaction.
Based on the varying results of the previous studies, the researchers deduce that environmental
performance does not directly affect firm value. In this study, researchers will link environmental performance
variable with firm value through financial performance. Financial performance is considered valid to be a
mediator variable since good environmental performance will improve financial performance so that company
value will be achieved. Companies must develop a long-term strategy on environmental management in their
business operations in order to improve the long-term financial performance and enhance the company's
environmental image as a substantial intangible value (Rao & Holt 2005; Yadav et.al, 2015). Environmentally
friendly companies support the efficiency of other production processes. Another essential factor is that
successful companies spend more on environmentally friendly technologies (Filbeck & Gorman 2004). Good
environmental performance has a significant affiliation with good economic performance (Al-Tuwaijri et.al,
2004). Good environmental performance provides benefits to the company in terms of revenue, costs and others
(Ruf et.al, 2001). Eco-conscious customers are willing to pay dearly for contentment because they believe
having contributed to environmental improvement (Amato & Amato, 2012). Thus, company revenue will rise
and costs will be reduced so that the company gets an increase in profits which are directly linked to financial
performance improvement. Better financial performance is a positive signal for investors to buy shares. Based
on the signaling theory, information or disclosures issued by the company will be a guide for investors regarding
the company future performance prospects (Besley & Brigham, 2008). Information about high financial
performance will create investors' perceptions of the company success, which is reflected in high share prices,
so that the company value is high and increases market confidence not only in the company current
performance, but also the company prospects in the future. (Modigliani & Miller (1958) state that firm value is
determined by the earnings power of the company's assets. The positive effect of earnings power indicates that a
greater profit and a more efficient turnover of assets occur if the firm has a higher earnings power which
increases firm value. The following is the research hypothesis:
H1: Environmental performance has a positive effect on firm value
H2: Environmental performance has a positive effect on financial performance
H3: Financial performance has a positive effect on firm value
H4: Financial performance mediates the effect of environmental performance on firm value
II. METHODOLOGY
This study is an empirical study examining the role of financial performance variable in mediating the
relation between environmental performance and firm value. The data used is secondary data taken from the
Indonesia Stock Exchange (IDX); manufacturing companies registered in the 2014 - 2019 period with a sample
of 282 firm-years.
The dependent variable in this study is firm value as proxied by Price to Book Value (PBV), the
independent variable used is environmental performance (EP) and the mediator variable is financial
performance (FP).
Table 1. Operational variables and measurement

Variables The definition of Operational Variables Measurement
variables
The dependent variable: The company performance is PBV is calculated by
Firm value reflected by the stock price comparing the market price per
which is formed by the supply share with book value per share
and demand of the stock (Brigham & Houston, 2006)
market, which reflects the

public's assessment of the
company's performance
(Harmono, 2009 : 233)
The independent variable: The company's strategy in This is measured using the
environmental performance reducing negative impacts on company's achievements in
the environment will create participating in PROPER
added value for the company to (corporate performance rating
investors (Mardiana & assessment) program. PROPER
Wuryani, 2019) performance rating system
includes five colors; gold
indicates a score of 5, green
indicates a score of 4, blue
indicates a score of 3, red
indicates a score of 2, black
indicates a score of 1
(Peraturan Menteri Lingkungan
Hidup, 2014)
The mediator variable : The company financial ROE is calculated by
Financial performance condition in a certain period is comparing net income after tax
shown by indicators of capital to total equity (Brigham &
adequacy, liquidity and Houston, 2011)
profitability (Jumingan, 2011)
The analysis in this study uses path analysis because its capability to test the variables simultaneously as
well as estimates the direct and indirect effects. The data will be processed using Warp PLS 6.0 program.
The procedure for testing the financial performance hypothesis as a variable that mediates the effect of
environmental performance on firm value is carried out in two steps (Baron & Kenny, 1986):
1. Estimating the direct effect of environmental performance on firm value.
2. Estimating the indirect effect simultaneously by the following path pattern;
environmental performance → financial performance → firm value.
The conclusions related to the roles of mediator variable are as follows:
1. If the effect of environmental performance on firm value does not change and remains significant when the
financial performance variable is included in the model as an additional predictor variable, then the variable as a
mediator is not supported.
2. If the effect of environmental performance on firm value decreases but remains significant when the financial
performance variable is included as an additional predictor variable, then this variable is supported as partial
mediation.
3. If the effect of environmental performance on firm value decreases to a point where it is not statistically
significant when the financial performance variable is included as an additional predictor variable, then the
variable is supported as full mediation.
III. RESULT AND DISCUSSION

Table 2 Model fit and quality indices below show the results of model fit and weak on several criteria.
Model fit analysis has many criteria, researchers do not have to employ all of these criteria to see the suitability
of the research model, it is better to have more than one model fit test that meets the criteria (Widarjono, 2010).
The interpretation of model fit indicator depends on the objectives of SEM analysis. If the aim is only to test
hypotheses on the relationship between latent variables, then model fit indicator becomes less important
(Sholihin & Ratmono, 2013).
Table 2. Model Fit and Quality Indices

Criteria Fit Criteria Analysis Description
Results
Average Path Coefficient (APC) p-value < 0.05 0.003 Model Fit
Average R-Squared (ARS) p-value < 0.05 0.102 Weak
Average Adjusted RSquared p-value < 0.05 0.115 Weak
(AARS)
Average Block VIF (AVIF) Acceptable if < 5; Ideally 1.011 Model Fit
< 3.3
Average Full Collinearity (AFVIF) Acceptable if < 5; Ideally 1.013 Model Fit
< 3.3
Goodness Tenenhaus Small > 0.1; Medium > 0.225 Weak
0.25; Large > 0.36
Sympson’s Paradox Ratio (SPR) Acceptable if > 0.7; 1 Model Fit
Ideally = 1
R-Squared Contribution Ratio Acceptable if > 0.9; 1 Model Fit
(RSCR) Ideally = 1
Statistical Suppression Ratio (SSR) Acceptable if > 0.7 1 Model Fit
Nonlinear Bivariate Causality Acceptable if > 0.7 0.667 Weak
Direction Ratio (NLBCDR)
Table 3. The results of testing the direct effect of environmental performance on firm value
Path Sig.
Coefficient S.E
Coeff.
EP → FV 0.272 0.059 <0.001
Source : processed data
Table 4. The results of testing the indirect effects of environmental performance on financial performance and firm value
Path Sig.
Coefficient S.E
Coeff.
EP → FV 0.254 0.059 <0.001
EP → FP 0.033 0.061 0.296
FP → FV 0.163 0.060 0.003
Source : processed data

EP : Environmental Performance
FP : Financial Performance
FV : Firm Value
Based on table 4, the result of testing the effect of environmental performance on firm value shows a
significant positive effect. This means that the higher the environmental performance, the greater the company
value. The result of this study is in accordance with the signaling theory which explains that information about
environmental performance disclosed by companies will affect firm value which is reflected in PBV value
increase (Besley & Brigham, 2008). Companies with high environmental performance will have an impact on
company performance in the future. Investors will be interested in investing their capital in companies that care
about the environment. The way investors view a company environmental initiatives is an important factor in
determining their evaluation by its reactions to the stock market. Investors expect the company to create value
with good environmental performance, so they will respond by bidding on the company's share price. The score
of environmental impact that measures the environmental damage from the company operational activities is the
most influential factor in increasing firm value (Yadav et.al, 2015). Besides providing real benefits, improving
environmental performance will also enhance the company image (Rao & Holt, 2005).
The results of testing the effect of environmental performance on financial performance show not
significant positive effect. Environmentally friendly Products or services are usually sold at a higher price, so
that most consumers in Indonesia do not like them. Most Indonesian consumers consider price more than the
nature of environmentally friendly products or services, so that environmental performance will not affect
financial performance (Sarumpaet, 2005). Social and environmental responsibility or better known as corporate
social responsibility (CSR) is still a concept that will be applied in developing countries even though consumers
have a tendency to ignore and do not support the programs. This is different from consumers from developed
countries who are more supportive toward the implemented CSR as evidenced by being willing to pay for
products or services at high prices because these products or services are environmentally friendly (Arli &
Lasmono, 2010) and they will even become more loyal to environmentally friendly products or services
(Maignan, 2001).
The results of testing the effect of financial performance on firm value show a significant positive effect.
The achievement of high financial performance will give a signal to investors that the company has succeeded in
achieving good financial performance. This encourages investors to buy shares in the company. Investors will
have hopes of getting dividends and other benefits by buying shares of companies that have high financial
performance. Modigliani & Miller (1958) state that firm value is determined by the earnings power of the
company's assets. The positive effect of earnings power indicates that a greater profit and a more efficient
turnover of assets occur if the firm has a higher earnings power which increases firm value. The ratio of the
financial statements has a significant relationship with capital market indicators, which means that the
information from the company financial statements still has a relevant value for investors in making decisions
and explaining the scope of the stock market (Vishnani & Shah, 2008). The test results show that financial
performance as a variable that mediates the effect of environmental performance on firm value is not proven.
Based on table 4, environmental performance has no significant effect on financial performance. According to
Baron & Kenny (1986) a variable is called a mediator if the variable influences the relationship between the
predictor variable (independent) and the criterion variable (dependent). The mediation model has a hypothesis
that the independent variable affects the mediator variable, which in turn affects the dependent variable. In this
study, it cannot be proven that financial performance variable become a mediator variable between
environmental performance and firm value. Unbelievably, most consumers in Indonesia do not pay attention to
the environmental performance of the companies that produce the goods or services they are going to buy.
Consumers only focus on the price of the goods or services to be purchased (Sarumpaet, 2005)
IV. CONCLUSION
This study aims to examine and analyze the effect of environmental performance on firm value by
employing financial performance as mediator variable. By using secondary data taken from the Indonesia Stock
Exchange in the 2014-2019 periods, the results reveal that the financial performance variable is not proven
mediating the effect of environmental performance on firm value.
The limitation of this study is this research only uses one proxy, ROE, to measure financial performance.
Future research is expected to use various proxies in measuring financial performance such as economic value
added (EVA), market value added (MVA) to produce more accurate results.
REFFERENCE
Al-Tuwaijri, S.A., Christensen, T.E., & Hughes, K.E. (2004). The relations among environmental disclosure,
environmental performance, and economic performance : A simultaneous equation approach. Accounting,
Organizations and Society, 29(5), 447–471.
Amato, L.H., & Amato, C.H. (2012). Environmental policy, rankings and stock values. Business Strategy and
The Environment, 21(5), 317–325.
Arli, D. I., & Lasmono, H. K. (2010). Consumers ’ perception of corporate social responsibility in. 34(1979),
46–51. https://doi.org/10.1111/j.1470-6431.2009.00824.x
Baron, R.M., & Kenny, D.A. (1986). The moderator-mediator variable distinction in social psychological
research : Conceptual, strategic, and statistical conciderations. Journal of Personality and Social
Psychology, 51, 1173–1182.
Besley, S., & Brigham, E.F. (2008). Essentials of Managerial Finance.
Brigham, E.F., & H. (2006). Fundamental of financial management : Dasar-dasar manajemen keuangan (10th
ed.). Salemba Empat.
Brighham,m E.F., & Houston, J.E. (2011). Dasar-dasar manajemen keuangan (11th ed.). Erlangga.
Cormier, D., Magnan, M. (2007). The revisited contribution of environmental reporting to investors valuation of
a firms earnings : An international perspective. Ecological Economics, 62(3), 613–626.
Filbeck, G., & Gorman, R.F. (2004). The relationship between the environmental and financial performance of
public utilities. Environmental and Resource Economics, 29, 137–157.
Harmono. (2009). Manajemen keuangan berbasis balanced scorecard (Pendekatan teori,kasus, dan riset
bisnis). Bumi Aksara.
Ikhsan, A.A.N., & Muharam, H. (2016). Pengaruh kinerja lingkungan terhadap kinerja keuangan : studi pada
perusahaan yang terdaftar di Kemetrian Lingkungan Hidup & Listing di BEI (Periode 2008 - 2014).
Diponegoro Journal of Management, 5(3).
Jacobs, B.W., Singhai, V.R., & Subramanian, R. (2010). An empirical investigation of environmental
performance and the market value of the firm. Journal of Operations Management, 28(5), 430–441.
Jumingan. (2011). Analisis Laporan Keuangan. Bumi Aksara.
Peraturan Menteri Lingkungan Hidup, (2014).
Maignan, I. (2001). Consumers perceptions of corporate social responsibility : A cross - cultural comparison.
Journal of Business Ethics, 30(1), 57–72.
Mardiana, J.A., & Wuryani, E. (2019). Pengaruh kinerja lingkungan terhadap nilai perusahaan dengan
profitabilitas sebagai variabel pemoderasi. Jurnal Akuntansi AKUNESA, 8(1).
Modigliani, F., & Miller, M.H. (1958). The cost of capital, corporate finance and the theory of investment. The
American Economic Review, 48(3), 261–297.
Moneva, J.M., & Cuellar, B. (2009). The value relevance of financial and non-financial environmental
reporting. Environmental and Resource Economics, 44(3), 441–456.
Rao, P., & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance?
International Journal of Operations Management, 10(3), 228–243.
Ruf, B.M., Muralidhar, K., Brown, R.M., Janney, J.J., & Paul, K. (2001). An empirical investigation of the
relationship between change in corporate social performance and financial performance : A stakeholder
theory perspective. Journal of Business Ethics, 32(2), 143–156.
Sarumpaet, S. (2005). The relationship between environmental performance and financial performance of
Indonesian companies. Jurnal Akuntansi Dan Keuangan, 7(2), 89–98.
Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 3.0 untuk Hubungan Nonlinier
dalam Penelitian Sosial dan Bisnis. ANDI.
Tjahjono, S., & Eko, M. (2013). Pengaruh kinerja lingkungan terhadap nilai perusahaan dan kinerja keuangan.
Jurnal Ekonomi, 4(1).
Vishnani, S., & Shah, K. (2008). Value relevance of published financial statements with special emphasis on
impact of cash flow reporting. International Research Journal of Finance and Economics, 17, 84–90.
Widarjono, A. (2010). Analisis Statistika Multivariat Terapan. Sekolah Tinggi Ilmu Manajemen YKPN.
Yadav, P.L., Hun Han, S., & Rho, J. J. (2015). Impact of environmental performance on firm value for
sustainable investment : Evidence from large Us firms. Business Strategy and The Environment.
https://doi.org/10.1002/bse.1883
The Determinant Factors of Customer Loyalty:

Service Quality and Customer Satisfaction
Ranu Tri Johan Efendi1, Hermien Tridayanti2, Joko Suyono3, Damarsari Ratnasahara Elisabeth4, Dian
Arisanti5
Faculty of Economics and Business, Narotama University, Surabaya, Indonesia123
Sekolah Tinggi Ilmu Ekonomi Mahardhika, Surabaya, Indonesia4
Sekolah Tinggi Ilmu Administrasi dan Manajemen Kepelabuhan Barunawati Surabaya, Indonesia5
Email : ranu.efendi@gmail.com
ABSTRACT
Purpose: is to find out and analyze determine the effect of service quality on customer satisfaction, service
quality on customer loyalty, customer satisfaction on customer loyalty and the role of customer satisfaction as a
mediation of the effect of service quality on customer loyalty in Teluk Lamong loading and unloading container
terminal
Design/methodology/approach: Design of this research uses quantitative research.
Research limitations/implications: This research conducted on Teluk Lamong customers with include 229
respondents samples and are distributed through questionnaires, as well as the data results are processed using
SEM PLS version 3.0.
Practical implications: The results prove that there is a significant effect of service quality on customer
satisfaction at PT Terminal Teluk Lamong. The second results imply that there is a significant effect of service
quality on customer satisfaction at PT Terminal Teluk Lamong. Likewise, the effect of customer satisfaction on
customer loyalty at PT Terminal Teluk Lamong is also significant. Satisfaction is also confirmed to mediate the
effect of service quality on customer loyalty.
Paper type: This paper can be categorized as case study paper.
Keyword: , Loyalty, Loading And Unloading Services, Service Quality, Satisfaction, Terminal Teluk Lamong
Received: May 1st, 2021

I. INTRODUCTION
Teluk Lamong Terminal as a company that provides loading and unloading services and dry bulk creates
its orientation not only to achieve sustainable development but also mainly to retain customers or achieve their
loyalty. Loyalty has a positive relationship with business performance. Customer loyalty does not only increase
business value, but also has a positive impact, which is able to attract new customers. Companies concerned
with achieving loyalty, in the short term, will make them get sales profit. Profit itself is a tool to ensure business
consistency, ensure companies operational turnover and guarantee them to continue taking steps so that they
have a variety of products and services in order to compete with other companies. The further consequences of
companies that improve their loyalty are customers are willing to pay for services at a higher cost, and more
importantly, they will become endorsers for other customers to use Teluk Lamong services. In this condition,
The Determinant Factors of Customer Loyalty: Service Quality and Customer Satisfaction Page │ 396
Ranu Tri Johan Efendi, Hermien Tridayanti, Joko Suyono, Damarsari Ratnasahara Elisabeth, Dian Arisanti
the advertising costs will be much cheaper. Although achieving customers loyalty is paramount, creating loyal
customers requires several stages. The first is to make sure they are satisfied.
According to Lupiyoadi (2014), customer satisfaction is the level of feeling which a person delivers
comparison results between the received service products performance and the expected ones. Customer
satisfaction is the key to creating customer loyalty. Satisfied customers are those who get a lot of benefits from
the company and the benefits obtained exceed their expectations. Satisfied customers are relatively price
insensitive. This also means that customers will be able to pay for the service at a higher price. Customer
satisfaction will make customers never think of using services other than the company has provided.
The company’s success in achieving loyalty and satisfaction is still considered not optimal. Since customer
loyalty and satisfaction are constructs which do not stand alone yet are determined by service quality (Aryani, D
dan Rosinta, 2010) Service quality is a determining factor in services companies. Service quality encourages
customers to commit to products and services of certain companies. Service quality is very crucial in retaining
customers for a long period. Service quality is a concept put forward by Parasuraman cited by Prastiwi (2017),
which includes five main dimensions, those are tangible, reliability, responsiveness, assurance, and empathy.
These five dimensions support a company in providing quality services. Tangible is physical evidence related to
a company’s physical facilities. Reliability is related to a company’s ability to provide accurate services.
Responsiveness illustrates how great the willingness and ability of employees to help customers and respond to
employees’ requests. Assurance is defined as a company’s ability to create a sense of security. And empathy is
the ability of consumers to give personal attention (custom) to their consumers. If a service company is able to
manage these five dimensions and make them as a service strategy, it will make customers more satisfied
(Tjiptono dalam Deasy Endrawati D, dan Juliani, 2018).
The concepts of service quality, satisfaction, and loyalty are related to one another. Service quality affects
loyalty, both directly and indirectly, through customer satisfaction. Service quality is also able to influence
customer loyalty directly, as well as affect it indirectly through satisfaction (Aryani, D dan Rosinta, 2010)
Researches related to service quality, relative customer satisfaction, and loyalty have been conducted with
a variety of objects, both in the culinary, telecommunications, banking, hospital, and other industries. The
reason for this research using these three concepts, apart from being real, is that those are considered as the most
needed concepts in the field of services. Empirically, researches related to service quality, customer satisfaction,
and loyalty yield inconsistent results. Research conducted by Indrianingsih et al. (2015) states that there is an
effect of service quality on customer loyalty, however the research of Aryani, D dan Rosinta (2010) argues that
there is no influence between service quality and customer loyalty. Research Cahyani (2014) suggests that there
is an effect of service quality on satisfaction and there is an effect of satisfaction on loyalty, but in indriista's
research, A (2015) service quality from the tangible aspect has no effect on satisfaction
II. METHODOLOGY
This study is an explanatory research. The population samples in this study are all container loading and
unloading service users at PT Terminal Teluk Lamong who work together at least two times. The samples are
determined based on the Slovin formula and include 229 respondents. The independent variable used in this
study results is given the notation of X, namely: Variable Service Quality, the intervening variable in the study
results is given the notation of Y1, namely: Customer satisfaction (Y1). The dependent variable in the study
results is given the notation of Y2, namely customer loyalty (Y2). The data collection technique in this research
is field study. The field study is conducted by distributing the questionnaires. While the analysis technique is
carried out using Partial Least Square (PLS).

A. Convergent Validity
The test results of the first stage outer model is the convergent validity value. For the convergent
validity of service quality variables, it can be observed from the indicator value in dimensions. Since the service
quality variable is arranged with a second order pattern. The first order is quality service with 5 dimensions.
Then the second order is 5 dimensions with each indicator. The result convergent validity results can be
observed from the loading factor value. The loading factor value is believed to be valid if it is more than 0.5.
Below are the results of the complete convergent validity test in the Table. 1
Table 1 Test Results of Convergent Validity
Customer Loyalty (Y2)

Dimension /Variable
Satisfaction(Y1)
Responsiveness
Quality (X)
Tangibility
Assurance
Reliability
Customer
Empathy
Service
First Order
Assurance1 0.820
Assurance2 0.715
Assurance3 0.748
Emphaty1 0.786
Emphaty2 0.828
Emphaty3 0.846
Reliability1 0.795
Reliability2 0.778
Reliability3 0.681
Responsiveness1 0.756
Tangible1 0.719
Tangible2 0.774
Tangible3 0.735
Satisfaction1 0.673
Satisfaction2 0.717
Satisfaction3 0.750
Satisfaction4 0.782
Loyalty1 0.673
Loyalty2 0.618
Loyalty3 0.743
Loyalty4 0.729
Loyalty5 0.774
Loyalty6 0.730
Second Order
Tangible 0.835
Responsiveness 0.878
Reliability 0.785
Empathy 0.857
Assurance 0.865
The calculation results illustrate that the service quality variable which consists of five second order
dimensions, namely tangible, assurance, empathy, responsiveness and reliability, has a loading factor value
greater than 0.5. Similarly, the indicators of each dimension in the first order also have a value greater than 0.5.
Therefore, both indicators and dimensions are valid. Customer satisfaction and customer loyalty variables have
a factor loading value of more than 0.5. With this result, all variables have convergent validity that meets the
standard.
B. Construct Validity
The next measurement model is Average Variance Extracted (AVE) value, which depicts the amount
of indicator variance contained by latent variable. AVE value greater than 0.5 also indicates good validity
adequacy for latent variables.
Table 2 Test Results of Construct Validity

Average Variance Extracted
Dimension or Variable
(AVE)
Service Quality:
Assurance 0.581
Empathy 0.673
Reliability 0.568
Responsiveness 0.611
Tangibility 0.552
Customer Satisfaction (Y1) 0.535
Customer Loyalty (Y2) 0.509
Source: SEM PLS attachment

The calculation results illustrate that all the research variable constructs yield all variables with AVE
value of more than 0.5. With these results, all latent variables and dimensions have good validity adequacy.
C. Discriminant Validity
Discriminant validity can be measured using cross loading values. The high cross loading value (0.5)
on the dimensions of certain variables compared to the dimension values of other variables means the construct
validity of these latent variables and dimensions is good. Here are the full cross loading values:
Table 3 Test Results of Discriminant Validity Using Cross Loading

Satisfaction(Y1)
Responsiveness
Dimension
Tangibility
Assurance
Reliability
Customer
/Variable
Empathy
Assurance1 0.820 0.651 0.493 0.517 0.555 0.569 0.619

Assurance2 0.715 0.474 0.446 0.483 0.508 0.510 0.470
Assurance3 0.748 0.518 0.404 0.517 0.445 0.592 0.572
Emphaty1 0.585 0.786 0.352 0.529 0.503 0.557 0.559
Emphaty2 0.630 0.828 0.551 0.597 0.530 0.588 0.617
Emphaty3 0.565 0.846 0.538 0.553 0.572 0.575 0.594
Reliability1 0.478 0.478 0.795 0.508 0.473 0.519 0.509
Reliability2 0.427 0.473 0.778 0.507 0.449 0.471 0.489
Reliability3 0.426 0.376 0.681 0.329 0.393 0.425 0.451
Responsiveness1 0.529 0.472 0.464 0.756 0.493 0.402 0.546
Responsiveness2 0.550 0.593 0.531 0.787 0.549 0.620 0.503
Responsiveness3 0.472 0.530 0.411 0.801 0.506 0.493 0.510
Tangible1 0.581 0.571 0.429 0.474 0.719 0.552 0.490
Tangible2 0.473 0.477 0.462 0.598 0.774 0.435 0.459
Tangible3 0.406 0.391 0.406 0.384 0.735 0.366 0.485

Satisfaction(Y1)
Responsiveness
Dimension
Tangibility
Assurance
Reliability
Customer
/Variable
Empathy
Satisfaction1 0.426 0.518 0.406 0.378 0.420 0.673 0.444
Satisfaction2 0.553 0.440 0.430 0.386 0.345 0.717 0.508
Satisfaction3 0.570 0.527 0.478 0.503 0.501 0.750 0.567
Satisfaction4 0.577 0.559 0.516 0.614 0.517 0.782 0.502
Loyalty1 0.481 0.475 0.426 0.464 0.491 0.414 0.673
Loyalty2 0.443 0.477 0.365 0.474 0.409 0.448 0.618
Loyalty3 0.523 0.540 0.571 0.512 0.508 0.461 0.743
Loyalty4 0.541 0.516 0.504 0.420 0.447 0.528 0.729
Loyalty5 0.546 0.527 0.461 0.458 0.460 0.543 0.774
Loyalty6 0.574 0.541 0.404 0.513 0.432 0.563 0.730

Table 3 contains the cross loading for each variable of customer satisfaction, customer satisfaction, and
customer loyalty is greater than the columns on other variables (marked with bold or thicker than the others).
Meanwhile, for service quality, the value is greater in the dimensions of tangible, assurance, empathy,
responsiveness and empathy. This means that the variables and dimensions fulfil the requirements of
discriminant validity. Similarly, customer satisfaction and customer loyalty have a greater coefficient value than
others.
D. Reliability
The construct reliability is measured by the value of composite reliability, the construct is considered
reliable if the value of composite reliability is above 0.70 then the indicator is stated to be consistent in
measuring its latent variables. Here are the full results:
Table 4 Test Results of Construct Reliability

Cronbach's Composite
Dimension /Variable
Alpha Reliability
Customer Satisfaction (Y1) 0.710 0.821
Customer Loyalty (Y2) 0.805 0.861
Service Quality:
Reliability 0.618 0.797
Responsiveness 0.682 0.825
Tangibility 0.596 0.787
Assurance 0.638 0.806
Empathy 0.757 0.860

The test results illustrate the constructs (variables and dimensions) of all variables have Cronbach alpha
value and composite reliability greater than 0.7. Therefore, all variables are confirmed reliable.
E. Hypotheses Test
Test Stage of Inner Model or Structural Model
The structural model stage aims to determine whether there is an influence between variables. The test is
performed using the t test. The variable is believed to have an influence if the significance value of t is less than
0.05.
Table 5 Test of Direct Effect Hypotheses

t
Impact between variables Coefficient P Values
Statistics
Direct Impact
Service Quality (X) ➔ Customer Satisfaction (Y1) 0.789 23.489 0.000
Service Quality (X) ➔ Customer Loyalty (Y2) 0.688 10.944 0.000
Customer Satisfaction (Y1) ➔ Customer Loyalty (Y2) 0.151 2.010 0.045
Indirect Impact
Service Quality (X) ➔ Customer Satisfaction (Y1) ➔ Customer
0.119 1.969 0.049
Loyalty (Y2)
Based on the table above, the analysis is described as follows:

The calculated path coefficient value is 0.789. The path coefficient is positive. This positive value implies
the higher the service quality provided by Teluk Lamong officers, the higher customer satisfaction. And
conversely, the lower the service quality provided by officers, the lower customer satisfaction. Then, the
coefficient value from the t test results obtains a t value of 23.489 with a significance level of 0.000. The value
is less than 0.05, thus, there is a significant effect of service quality on customer satisfaction. Therefore, H0 is
rejected and H1 is accepted.
The calculated path coefficient value is 0.688. The path coefficient is positive. This positive value means
the higher the service quality provided by Teluk Lamong officers, the higher customer loyalty. And conversely,
the lower the service quality provided by officers, the lower customer loyalty. Then this coefficient value from
the t test results obtains t value of 10.944 with a significance level of 0.000. The value is smaller than 0.05,
proving there is a significant effect of service quality on customer loyalty. So that H0 is rejected and H2 is
accepted.
The calculated path coefficient value is 0.151. The path coefficient is positive. This positive value suggests
that the higher the customer satisfaction, the higher the customer loyalty. And vice versa, the lower customer
satisfaction, the lower customer loyalty. Then this coefficient value from the t test results obtains a t value of
2.010 with a significance level of 0.045. The value is smaller than 0.05, confirming there is a significant effect
of customer satisfaction on customer loyalty. Therefore, H0 is rejected and H3 is accepted.
Besides testing the direct effect, this study also reviews the indirect effect. Smart PLS test is able to
directly yield the results of the indirect impact, therefore there is no requirement to carry out the test manually.
The indirect effect test results illustrate the service quality influences customer loyalty through customer
satisfaction. This can be observed from the coefficient value of 0.119 with t statistic of 1.969 and the probability
or significance of 0.049. This value is less than 0.05 indicating that the indirect effect is significant. With this
result, the fourth hypothesis validity is also confirmed.
Based on the test of direct and indirect effects, it can be determined whether the type of relationship is full
mediation or partial mediation. Full mediation exists if the direct effect between variables is substantial, while
the indirect effect is not. Meanwhile, partial mediation occurs when the direct effect is significant, as well as the
indirect effect. If the direct effect is significant, while the indirect effect is not considerable, then it does not
mediate. Table 5.12 shows that that customer satisfaction has a direct effect on customer loyalty as well as the
indirect effect. Thus, it can be categorized as partial mediation.
F. Coefficient of Determination
The results show the influence magnitude of customer quality on customer satisfaction, which is 0.623% is
62.3%. Meanwhile, the influence of service quality and customer satisfaction on customer loyalty is 0.659 or
65.9%.
G. Goodness of Fit Test

The predictive relevance value is notated by Q2. The value of the Q-square can be calculated by the
following calculation: Q2 = 1 – (1 – 0.623) (1 – 0.659) = 0.871. Based on the Q-square calculation results, the
Q-square value is 0.8659. Since the value of Q2 > 0, it can be concluded that the model is fit, or the data has
matched the model.
The second is to find the Goodness of Fit (GoF) value. The result of calculating the average value of AVE
is 0.6274, while the average R2 is 0.607, thus the GOF value is 0.6301.
H. The Effect of Service Quality on Customer Satisfaction

The results demonstrate that service quality has a significant positive influence on customer satisfaction.
This means that the higher the service quality, the higher the customer satisfaction. The results also indicate that
the service quality provided by Teluk Lamong is in the category of agree and strongly agree. This reflects the
good service provided by officers. With this good service, customers are satisfied to use Teluk Lamong services.
Service quality is the presentation of products and/or services in accordance with company standards and efforts
are made to deliver these products and services to meet consumers’ expectation. The dimensions of service
quality consist of tangibles, reliability, responsibility, assurance, and empathy. Meanwhile, satisfaction is the
result of comparison between received service products performance and the expected ones. Every individual
who utilizes the services of a company initially hopes to find good services, both from employees as well as
company. When customers expend the service, they will compare their initial expectations with the real service
they currently obtain. If the service quality is served as they have expected, they will be satisfied. Vice versa, if
the received service quality is similar to their expectation, even below their expectation, they will feel
dissatisfied. Service quality is second to none for service companies. Due to the main core of service companies
is to supply or sell services. Therefore, they fail to provide the best service to customers, they have failed in
delivering their main core business. The results of this study are in line with research conducted by Syarifuddin,
PR, Sari (2015), Aryani, D dan Rosinta (2010), Indrianingsih et al. (2015) and Shartykarini, S, (2016). This
study proves that service quality has a significant effect on satisfaction.
I. The Effect of Service Quality on Customer Loyalty

The study results show that service quality has a significant positive impact on customer loyalty. This
means that the higher the service quality, the higher the customer loyalty. The results also indicate that the
service quality provided by Teluk Lamong is in the category of agree and strongly agree. This reflects the good
service given by officers. With this good service, loyal customers will continue to employ Teluk Lamong.
Service quality of service companies means that they guarantee their provided services to meet five aspects of
service quality, which are tangible, reliability, assurance, empathy, and responsiveness. Companies have to
maintain their service quality supplied to customers. If a company fulfill the five elements of service quality
properly and correctly, customers will get proper services they shall obtain from the service provider. In
addition, a company with good service quality will make itself win the competition among other service
providers. Thus, the delivery of good service quality can be a strategy to win the competition. With this quality
service, customers shall need to continue using the services. The desire to continue using the services is part of
customer loyalty. The study results are in line with and supportive to the research of Cronin and Taylor in
Cronin dan Taylor dalam Budiyarto (2012)suggesting that service quality has an effect on loyalty, which means
that if reliability, which includes the ability to deliver promised services is performed well immediately, it will
affect customer loyalty. In addition, research conducted by Syarifuddin, PR, Sari (2015), Indrianingsih et al.,
(2015) and Shartykarini, S (2016) recommends that service quality has an effect on customer loyalty.
J. The Effect of Customer Satisfaction on Customer Loyalty

The results prove that customer satisfaction has a significant positive effect on customer loyalty. This
means, the higher customer satisfaction, the higher customer loyalty. The results also imply that customer
satisfaction is involved in category of agree, as well as customer loyalty is also included in the category of high.
This reflects that customers are satisfied and eager to continue using the loading and unloading services in Teluk
Lamong. Satisfaction is a comparison between performance and expectation. If the performance or real
condition is better than the expectation, then what comes to customers’ mind is customer satisfaction.
Conversely, if the performance or reality obtained is the same or even lower than expectation, then
dissatisfaction will appear. Whereas loyalty is the customers’ willingness to always use the company's products
or services in long term (Lovelock, C., 2015)
Fulfilling customer satisfaction is one of company’s main goals. Since customers have already spent, then
they shall expect more from the company. Companies which cannot meet this requirement will be left behind
and their customers will look for other companies which are able to meet their hope or expectations. With the
fulfilled hope or expectations, customers will come for the second time and repeat using the services or buying
companies’ products. Since customers do not intend to be disappointed. It is important for companies to
continue to maintain satisfaction and keep their customers from being disappointed so that customers continue
to choose them as the first choice. The study results support the influence of satisfaction on customer loyalty.
The research results of Syarifuddin, PR, Sari, (2015), Aryani, D dan Rosinta (2010), Indrianingsih et al. (2015)
and Shartykarini, S (2016). All these studies suggest that customer satisfaction has a significant impact on
loyalty, therefore, there is a relationship between customer satisfaction and loyalty. Researches related to
loading and unloading services at port terminals enrich the results of these previous studies, three among those
are researches on culinary industries and one research in the service sectors, which is fitness and gym services.
Thus, satisfaction can affect loyalty to companies which offer services as well as products with services
(culinary).
K. Effect of Customer Satisfaction on Customer Loyalty through Customer Satisfaction

The results of the indirect effect test indicate that services quality has an influence on customer loyalty
through customer satisfaction. The mediating role of customer satisfaction on the impact of service quality on
customer loyalty has not been carried out in many studies. Several studies often stop evaluating on each
relationship. The role of mediation illustrates the importance of satisfaction before loyal customers. The
important role of satisfaction before loyalty is stated by Kotler, P dan Amstrong (2018) That after customers
make a transaction or purchasing process or using the services, they will do the post purchase evaluation. The
evaluation is carried out by comparing the expectations with the performance obtained. Consumers shall expect
the performance obtained to be better than their expectations, so that customer satisfaction is achieved.
Consumers expect this point since they have paid for the services. Hopefully, these expenditures will be
replaced with satisfying services or products. This satisfaction arises in the service industries because of the
service quality provided. Services provided have to meet all aspects of direct evidences (tangibles), reliability,
responsibility, assurance, and empathy. Then after consumers are satisfied, it is likely that they will return to
repeat the services or products in the future. Or make the company as the first choice in making transactions in
the next process. Thus, the existence of satisfaction is important after consumers get the services, which in turn,
it has an impact on loyalty. Therefore, satisfaction acts as an intermediary or mediator. Consequently, this study
results support the research of Kumalaningrum (2016) dan Pramono (2012) dalam Agustianti et al., (2018)
suggesting that customer satisfaction mediates the effect of service quality on customer loyalty.
IV. CONCLUSION
There is a substantial impact of service quality on customer satisfaction and customer loyalty of PT
Terminal Teluk Lamong. There is a significant influence of customer satisfaction on customer loyalty at PT
Terminal Teluk Lamong. Service quality affects customer loyalty with customer satisfaction as a mediation for
PT Terminal Teluk Lamong.
Based on conclusions and results of the research carried out, the suggestions to be conveyed in the study
are aimed at two parties, which are PT Terminal Teluk Lamong and future researches.
Suggestions to future researches

Future researches are suggested to carry out the study by adding other variables which are able to increase
customer loyalty, such as implementation of marketing strategy and the terminal environment.
ACKNOWLEDGMENTS
Mr. Dr. Ir. H. Sri Wiwoho Mudjanarko, S.T., M.T., IPM., As the Rector of Narotama University
Surabaya. Mrs. Dr. Ir. Rr. Hermien Tridayanti, MM, as Dean of the Faculty of Economics and Business,
Narotama University Surabaya. Mr. Joko Suyono, P.hD., as the Head of the Master of Management Study
Program at Narotama University Surabaya. Parents, wives and families who always support, pray for and give
encouragement and affection in completing this thesis proposal. Mrs. Dr. Ir. Rr. Hermien Tridayanti as the
supervisor who has sacrificed time, energy and thoughts to guide, assist and provide useful advice in completing
this thesis. My best friend who always gives encouragement and enthusiasm in working on this thesis proposal
tirelessly. All examiners who have helped provide criticism and suggestions for the improvement of this thesis
report. All lecturers and teaching staff of the Faculty of Economics and Business, Narotama University
Surabaya who have provided a lot of knowledge and knowledge during lectures. Classmates who always
provide support and enthusiasm in completing this thesis proposal.
REFERENCES
Aryani, D dan Rosinta, F. (2010). Pengaruh kualitas Layanan Terhadap Kepuasan Pelanggan Dalam
Membentuk Loyalitas Pelanggan. Jurnal Ilmu Administrasi Dan Organisasi, 17(02).
Cahyani, K. dan R. G. (2014). Pengaruh Kualitas Layanan Terhadap Kepuasan dan Dampaknya pada
Kepercayaan Serta Loyalitas. Bali: Universitas Udayana. E-Jurnal Manajemen, 03(04).
Cronin dan Taylor dalam Budiyarto, S. (2012). Pengaruh Kualitas Pelayanan Terhadap Loyalitas Pasien dengan
Kepuasan Pelanggan dan Reputasi Perusahaan sebagai Variabel Mediasi pada Apotek K-24 Jogjakarta.
Edisi Mei. Surakarta: STIE Atmabhakti. Riset Manajemen & Akuntansi, 03(05).
Indrianingsih, F., DH, A. F., & Hidayat, K. (2015). Pengaruh Kualitas Pelayanan Terhadap Kepuasan Pelanggan
dalam Membentuk Loyalitas Pelanggan (Survei pada Pelanggan Kedai Kober Mie Setan Malang). Jurnal
Administrasi Bisnis (JAB), 27(1).
Kotler, P dan Amstrong, G. (2018). Principles of Marketing. Edisi 15 Global Edition. Pearson.
Kumalaningrum (2016) dan Pramono (2012) dalam Agustianti et al. (2018). Pengaruh Kualitas Pelayanan
Terhadap Loyalitas Pelanggan Dengan Kepuasan Pelanggan Sebagai Variabel Mediasi (Survei pada
Pengguna Jasa Layanan Kantor Pos Boyolali). Surakarta: Universitas Slamet Riyadi. Jurnal Manajemen
Sumber Daya Manusia, 12(01).
Lovelock, C., et al. (2015). Services Marketing: An Asia-Pasific and Australian Perspective, Sixth Edition.
Pearson.
Lupiyoadi, R. (2014). Manajemen Pemasaran Jasa Berbasis Kompetensi. Edisi ke-3. Salemba Empat.
Prastiwi, R. D. (2017). Pengaruh Dimensi Kualitas Pelayanan Terhadap Kepuasan Nasabah (Studi Kasus Pada
Bank BPD Kantor Kas Kokap, Kulon Progo, Yogyakarta). Univesitas PGRI Yogyakarta.
Shartykarini, S, et al. (2016). Pengaruh Harga, Kualitas Produk Dan Kualitas Layanan Terhadap Kepuasan
Pelanggan Dalam Membentuk Loyalitas Pelanggan (Studi Pengunjung Cafe di Banjarbaru) Bxanjarmasin:
Universitas Lambung Mangkurat. Jurnal Wawasan Manajemen, 04(01).
Syarifuddin, PR, Sari, D. (2015). Pengaruh Kualitas Pelayanan Terhadap Kepuasan Pelanggan Dalam
Membentuk Loyalitas Pelanggan Fitness Center (Studi Pada Galby Gym Muscle Buliding And Fitness
Club Jl.Peta Bandung) Bandung: Telkom University. E-Proceeding of Management, 02(03).
Tjiptono dalam Deasy Endrawati D, dan Juliani, R. (2018). Hubungan Kualitas Layanan dengan Kepuasan
Pelanggan PT. Indoguna Utama Semarang. Majalah Ilmiah Inspiratif, 03(06).
Role of Law and Social Stratification for Online Taxibike

Consumer According to The Republic of Indonesia Law Number
8 1999 Considering Consumer Protection
Evidiannita Candrawati1, Rini Kusnari2, Hermi3, Nur Joko Sariono4, Dwi Tatak Subagiyo5
Faculty of Law, Universitas Wijaya Kusuma Surabaya, Indonesia
Email:evi_diannita@uwks.ac.id1, rinywulan89@gmail.com2, Hermiromadhon@gmail.com3,
jokonursariono@ymail.com4, tataksubagiyo@gmail.com5
ABSTRACT
Purpose:The role of law and social stratification for online taxi bike consumers regarding implementation Law
No. 8 of 1999, using normative descriptive methods. The Law uncurtained concerning taxi bike position as a
transportation mode. And since motorbike is likely uncommonly used public transportation. Not only for the
taxi bike driver in general, but this issue is also addressed to Gojek driver since the main service of Gojek is
using a motorbike as made of transportation
Design/methodology/approach:Regarding the after-mentioned issue, according to article 1 1 of Law No. 8 of
1999 on Consumer Protection (BFL) on 20 April 1999 (Indonesia, 1999) it is obvious that the relation of online
taxi bike system is so relevant, observe by social stratification approach since it is hierarchically structured..
Findings:Thus causing a relationship between law and social stratification as are chain reactive it is stated
within by the law. There is existing discrimination in public caused by social discrimination that can be legally
overcome, and law guarantees equality for all
Practical implications: Further research can add samples and variable
Keyword: Consumer protection laws, Laws, Regulations minister of transport, Social stratification
Received: May 1st, 2021

I. INTRODUCTION
Transportation is one important part of life in society because, besides useful to facilitate everyday
activities, transport also has an effect on economic growth and infrastructure in the region. Today more rapid
advancement of science and technology also has an impact on the development of methods of service in the
world of transport, one of which is the emergence of service-based taxi bikes online, or more known as a taxi
bike online. This needs to be discussed how the role of law in a carriage on a motorcycle online, both in terms of
safety for passengers and freight services online taxi bike, taxi bike fee arrangements online.
This is where the role of law in the government has issued two regulations related to online taxi bike
namely the Minister of Transportation Regulation No. 12 of 2019 (Permenhub 12/2019) about User Safety
Protection Used Motorcycles For Social Interests and Transportation Minister Decree No. 348 2019
(Kepmenhub 348/2019) Guidelines for Use of Services Cost Calculations Used Motorcycles for the Benefit
Society Guide to the Application.
Role of Law and Social Stratification for Online Taxibike Consumer According to The Republic of Page │ 405
Indonesia Law Number 8 1999 Considering Consumer Protection
Evidiannita Candrawati, Rini Kusnari, Hermi, Nur Joko Sariono, Dwi Tatak Subagiyo
Permenhub No. 12 of 2019 aims to provide safety and security to be met by a driver and enterprise
applications. As in article 2 which reads regulation is intended to provide safety protection for the use of
motorcycles are used for the benefit of society made by and information technology-based applications without
the application of information technology-based.
Included in the scope of regulation on Article 4 concerning the fulfillment of the safety aspects include the
obligation for the driver to have a license to drive (SIM), driver in a healthy state, Driver does not carry
passengers above one person and the driver has a driver's license and riding motorcycles should Letter Vehicle
number (vehicle registration) Motorized valid.
While there is an obligation for enterprise applications as Article 5, paragraph 2, among others include the
identity of the driver and passenger in the application, including a phone number of service complaints in the
application, as well as completing the application features an emergency button (panic button).
Meanwhile, regarding the setting of guidelines for service fee-based online motorcycle itself is set in the
Transportation Minister Decree No. 348 2019 (Kepmenhub 348/2019). The regulation specifies the cost of
services the lower limit, upper limit, and minimal service costs. The restriction is done through the zoning
system, there is a zone I, Zone II and Zone III.
For Zone, I cover an area of Sumatra and Java and the surroundings besides Jakarta, Bogor, Depok,
Tangerang and Bekasi, and covers Bali. In the first zone of the cost of services, the lower limit is set at Rp 1,850
/ km and a service fee upper limit of 2,300 / km. While minimal service fee is in the range of Rp 7,000 to Rp
10,000.
Zone II includes Jakarta, Bogor, Depok, Tangerang, and Bekasi. In zone II, the cost of services the lower
limit is set at Rp 2,000 / km and a service fee upper limit of 2,500 / km. While the cost of services is in the range
of at least US $ 8000.00 up to USD 10,000.00.
Zone III covers an area of Kalimantan and Sulawesi and surrounding islands and surrounding Nusa
Tenggara, Maluku Islands and surrounding, Papua and its surroundings. Ie, with the cost of services the lower
limit is set at Rp 2,100 / km and a service fee upper limit of 2,600 / km. While the cost of services is in the range
of at least US $ 7000.00 up to USD 10,000.00.
So in both these regulations that Permenhub No. 12 of 2019 and No. 348 Kepmenhub 2019 have
represented Ojok drivers online and consumers, in terms of legal certainty aspects, safety and regulates the
standardization of online taxi bike driver to drive as well as the applicable rates. The focus is four, namely
safety, service charges, suspend (sanction temporary cessation of operations), and partnerships.
Wendra Hardi, Ratna Syamsiar, and Siti Nurhasanah research with entitled Perlindungan Hukum Terhadap
Penumpang Jasa Angkutan Ojek Online Di Bandar Lampung (Journal, 2018), The research found that the legal
protection against online taxi bike passengers can be seen from the Go-jek the Company's efforts to give
direction to the driver to bring the vehicle safely. If it still events that cause harm passengers the online taxi bike
driver can be responsible for the loss, with this responsibility, the online taxi bike driver can recover its state law
on the original.
While more intensive search by the title Tanggung Jawab Perusahaan Transportasi Online Terhadap
Penumpang Akibat Adanya Praktik Peralihan Akun Driver (Fillaili, 2019). The research concluded legal
protection for online transport passengers harmed by the practice of drivers account transition, the provision of
insurance cover by the provider of transportation applications online to a passengers during the journey using
the transport line.
Legal protection for passengers is also given through the Consumer Protection Act, to protect and fulfill
the rights of consumers. The responsibility of the provider of transportation applications online to passengers
harmed by the practice of transitioning accounts with their sanctioning driver gets dismissal (suspend) or
disabling an account on driver who involved in the practice of driver's account transition. Efforts law dispute
resolution for users of transport services online that impaired, can be done by suing for damages or criminally
prosecute the account owner-driver online and/or on fake driver which has directly resulted in a loss to the
consumer.
A. Issues
Based From the description of this background, this article will discuss:
What are the role of law and social stratification for consumers Online taxi bikes by the Consumer Protection
Act No. 8 of 1999?
B. Literature review
The law may protect the rights and obligations of each individual in very real reality, with strong legal
protection will manifest purpose of the law in general: order, security, tranquility, prosperity, peace, truth, and
justice (Soedjadi, 1997) (Soedjadi, 1997). The meaning of the law is extremely diverse, depending on which
angle they see it. Dutch law J. Van Kan defines the law as a whole provision of coercive life, which protects the
interests of people in the community. law by (Notohamidjojo, 1975) argues that the law is the overall rules of
the written and unwritten usually forced to human society and between countries, which is oriented to the two
principles of justice and efficiency, for the sake of order and peace in society.
Law is the source of power in the form of power and authority in the practice of power is negative for
inducing power do exceed the limit, exceeding authority. Law without power is a chimera, power without the
law is cruel. Legal closely linked to social and cultural values. A good law is a law that reflects the values that
live in the community, the community change is inevitable and change itself into question the values of which
are used (Kusumohamidjojo, 2007), In the change, there must be obstacles, among others: (a) the value that will
be changed is still relevant to national identity, (b) the nature of heterogeneity in religions and faiths, (c) the
attitude of people who do not accept the change and does not practice changes which exist.
Here is some understanding of the law according to legal experts from within the country, among others:
1. Legal sense according to Soerojo Wignjodipoero
the law is the set of rules of life that contains a command and prohibition or permission to do or not do
something, the law is coercive and to set the order in social life.
2. JCT Simorangkir, SH & Woerjono Sastroparnoto
Rule of law is coercive and determine human behavior in a community environment created by official
bodies authorities where such violations of rules will lead to certain penalties.
3. BC. Amin, SH
Law is a collection of rules and norms that consists of overcome legal sanctions
4. MH Tirtaatmidjaja, SH
The law is the norm all the rules that must be followed in the conduct of actions in the association must live
with the threat indemnify if it violates the rules taken endanger yourself or treasure
5. Wirjono prodjodikoro
Law is a series of rules regarding the behavior of people as members of a particular community
6. Prof. Achmad Ali
A set of rules or the rules that are arranged in a system, which determines what is allowed and what is not
can be by humans as citizens in public life, which comes from the community itself and from other sources,
which recognized the enactment by the highest authority in the community, as well as was right things to do
by the community (as a whole) in life and if the rules are violated will give authority to the supreme
authority to impose external sanctions.
7. Prof. Soedikno Mertokusumo
Overall collection of rules or principles in life together, the overall behavior of the regulations that apply in
a life together, which can be forced to implement sanctions
8. Mochtar Kusumaatmadja
Definition of adequate law should not only look at the law as a set of rules and principles which arrange
human life in society but should also include institutions (institutions) and the necessary processes in the
fact that the legal can manifest that
9. Abdulkadir Muhammad, SH
All written and unwritten rules that have strict sanctions on violators
10. R. Soeroso SH
The set of rules made by the authorities to arrange the social life that has the feature commanding and
forbidding as well as have the nature of force to impose penal sanctions for those who violate
II. DISCUSSION
A. The role of the legal and social stratification for consumers Online Motorcycle taxi by the Consumer
Protection Act No. 8 of 1999
Agency theory states that management and owners have different interest (Jensen and Meckling, 1976).
Business that separate management and ownership functions will be vulnerable to agency conflict (Compton,
2001). In the agency model, a system constructs both parties. Consequently, working agreement is required
between the owner (principal) and management (agent). The agreement is expected to maximize the utility of
principals, be able to satisfy and guarantee agents to receive rewards from the business management activities.
The difference in importance between the owner and management lies in maximizing the benefits (utility) of the
owner (principal) with the constraints (utility) benefits (utility) and incentives that will be received by
management (agent). In this case, different interests often arise conflicts of interest between shareholder
(Soedjadi, 1997)s / owners (principal) and management (agent) Trucks and generally include land, water, and
air transport where these three plays a very important and interrelated in performing the function as the
conveyance of people and goods. The activities of the transport are to move goods (commodity of goods) and
passengers from one place (origin or port of call) to another (port of destination), thereby transporting produce
transport services or production services to the people who need to transfer or delivery of goods. Transportation
has the function of place and time is very important because the goods have more value in the destination than
to be in place early people or goods are transported,
Nowadays people often use the services of transport in performing daily activities primarily on ground
transportation. This can be seen with many types of public transportation in the region. One type of land
transport is often used by the public is a taxi bike. Taxi bike is a means of land transport using two-wheeled
vehicles to transport passengers from one place to the place and then get the paid.
According to the Dictionary of Indonesian taxi, the bike is a motorcycle used to carrying passengers who
rent this vehicle. Taxi bike has become an alternative transport for most people because it is flexible in its
activities, to reach the right of transit of public transport such as public transportation, bus or another type of
four-wheeled public transport Others. A taxi bike is a public transport that is recognized in the community. The
government never banned juridical existence although never specifically regulated on article reserved.
Law serves as the protection of human interests, law enforcement should pay attention 4 unsur:.
1. Legal certainty (rechtssicherkeit)
2. Legal Use (zeweckmassigkeit)
3. Legal justice (gerechtigkeit)
4. Legal guarantees (doelmatigkeit)
Law enforcement and justice should use the proper line of thinking with the evidence and the evidence for
realizing justice or legal content must be determined by ethical convictions, whether or not a case is fair. Legal
issues become apparent if the legal tools perform well and meet, keeping the rules that have been standardized
so that no misuse of rules and laws that have been done systematically, meaning that it uses codification and
unification of the law to achieve legal certainty and legal justice.
Law, as defined in the Act of 1945 on the system of government Indonesia, explained that Indonesia based
on the law in the sense rechtstaat (Indonesia is a state based on law). The characteristics of rechstaat concepts
include:
1. The protection of Human Rights (HAM)
2. The separation and division of powers in state institutions to ensure the protection of Human Rights
3. Government by regulation
4. The existence of judicial administration
Law is a system of rules of human behavior, so the law does not refer to one single rule, but it could be
called the unity rules that make up a system.
Legal Function outline is as set out below:
1. As a means of social control (a tool of social control).
2. As a means to change society (a tool of social engineering).
3. As a means of order and community settings.
4. As a means to achieve social justice and unseen.
5. As a means of propulsion development.
6. As a critical function within the law.
7. As shelter functions.
8. As a political tool
Law is a series of rules regarding the behavior of people as members of society. (Isnantiana, 2019).
Social stratification is a distinction or grouping of community members Vertically (stratified)
social.Stratification can mean the structure, composition or shape. The arrangement can be Vertical or
Horizontal
Social structures that function
1. Identity function, as a confirmation of identity which is owned by a group or as a differentiator from other
groups.
2. Control functions, as the controller in themselves for not disobeying the norms, values, or other regulations
in force in the community.
3. Learning function, as a learner to be able to interact in society starting from the attitudes, habits, beliefs, and
discipline.
Social stratification is a phenomenon, group, community group or hierarchically. Social hierarchy is
another name for the study of social stratification sociology of the social stratification connotes social
inequality, inequality and unequal distribution of existing resources
Social stratification has always shaped hierarchy, some people occupy top positions, while others occupy a
position under this condition is also called social hierarchy.
According to Melvin Tumin (Tumin, 1988) is a community group settings into the system hierarchy or
rank unequal about property ownership power, social evaluation, and gratuities.
Social stratification is composed of two:
1. The ruling class, have power over the production factor
2. The working class, sell energy
Stratification approach:
a. Approach to the conflict, and
b. functional approach
Size or prominent or dominant criteria as the basis for the establishment of social stratification is as
follows:
1. The Level of Wealthy (material or material)
Used as benchmarks for placement of members of the public into the social layers that exist, can be seen
from the shelter, objects owned tertiary, way of dress, as well as in shopping habits, as well as the ability to
share with sesame
2. The Level of Power and authority
Someone has the power authority and wealth can take the first place on the stratification layer. Most people
have authority and wealth can dominate other community especially people with poverty.
3. The Level of Dignity
The level of the dignity of someone can describe how their level of wealthiness. Some of people in that
situation took the high level of stratification layer on society.
4. The Level of Knowledge
The level of knowledge is often used by members of the public who appreciate science. A person who had
the most knowledge will occupy the higher layers in the system of social stratification. Mastership of this
education level is usually found in academic degrees (bachelor) or profession carried by a person, for
example, a doctor or professional titles such as Professor.
Type of social stratification:
1. Slavery (Slaves were layer on the bottom, do not have freedom because of her status owned)
2. Feudalism consists of 3 layers
a. The highest layer is the nobility
b. The second layer is a religion/clergy
c. The lowest layer is the rabble
3. Caste is a system of stratification that are closed
4. Class is a system of social stratification that is open (Individuals can occupy the highest layer which
succeeded in raising the social status)
The development of transport and communications can not be separated from innovation science and
technology. It can be seen from the development of innovation, the more advanced and sophisticated modes of
transport and communication also in society. One example of the latest innovations in the field of road transport
is the emergence of online motorcycle types of Go-jek. Guided on the official website Go-jek, said Go-jek is
defined as the word social spirit that led the industrial revolution Go-jek Ojek.2 transportation is a taxi bike
booking services online via the Go-jek applications that can be downloaded via Android or iPhone.
Not only online taxi bikes, services provided Go-jek also includes Go-car, Go-food, Go-mart, and others.
The presence of online motorcycle applying appropriate communication technologies in society due to the
incorporation of the transport service with the sophistication of Internet technology so people can easy to deliver
their order, rule of map, transportation costs, the destination location and the driver information that is a form of
innovations in the world of shipping business.
Against the background of the above problems, making the legal uncertainty associated with the position
of the taxi bike as transport of people because motorcycles are not included in the criteria of vehicles that can be
used for public vehicles. Not only on a taxi bike driver in general, but this problem is also faced by the driver of
the Go-jek for a major service to the Go-jek is the use of motorcycles as conveyance.
the relationship with the Law of Social Stratification Ojeks Chain Online:
a. The Company is the top layer of the model because it has control of, access to, and Performance driver
b. Passengers were the second layer of self-determination for the rating driver
c. The driver is on the bottom layer.
evidently that the relations in the system are very relevant Online Ojeks seen with Social Stratification
approach for structured hierarchically. whereas by a general explanation of the law No. 8 of 1999 on Consumer
Protection (BFL) on April 20, 1999(Indonesia, 1999) :
Mentioned in Article 1:
1. Consumer protection is all the effort that guarantees the legal certainty to protect consumers.
2. Consumers are everyone user of goods and / or services available in the community, for the benefit of
themselves, their families, other people, as well as other living beings and not for sale.
3. A business actor is any individual or entity, whether a legal entity and not a legal entity established and
domiciled or conducting activities within the jurisdiction of the Republic of Indonesia, either individually or
jointly by agreement for business activities in various economic fields.
4. Goods are any objects either tangible or intangible, whether movable or immovable, can be spent and
cannot be spent, which can be traded, used, used, or used by consumers.
5. Services are any services that form of work or achievement provided for the public to be used by
consumers.
6. Promotion is the introduction or dissemination activities of goods and/or services to attract consumers to
buy the goods and / or services to be and is being traded.
7. Imports of goods activities to supply goods into the customs area.
8. Imports of services are the provision of foreign services to be used in the territory of the Republic of
Indonesia.
9. Governmental Consumer Protection Agency is a non-governmental organization registered and recognized
by the Government which has activities addressing consumer protection.
10. Clause Baku is any rules or the terms and conditions that have been prepared and determined in advance
unilaterally by businesses outlined in a document and/or agreement that is binding and must be met by
consumers.
11. Consumer Dispute Settlement Board is the body responsible for handling and resolving disputes between
businesses and consumers.
12. National Consumer Protection Agency is a body set up to assist the development of consumer protection.
13. Minister is the minister whose scope of duties and responsibilities include the field of trade.
The rights of consumers need to be protected under Article 4 of Law No. 8 of 1999 on Consumer
Protection includes:
1. the right to comfort, security, and safety in the consumption of goods and/or services;
2. the right to choose the goods and/or services and obtain goods and / or services under the exchange rate and
conditions and guarantees promised;
3. the right to correct information, clear and honest about the condition and guarantee of the goods and / or
services;
4. right to be heard opinions and complaints on the goods and / or services used;
5. right to advocacy, protection and dispute resolution efforts should consumer protection;
6. right to receive guidance and consumer education;
7. right to be treated or serviced properly and honestly and not discriminatory;
8. right to obtain compensation, compensation and/or reimbursement, if the goods and / or services received
are not by the agreement or not as it should be;
9. the rights set out in the provisions of other legislation.
A principle in Article 2 of the Consumer Protection Act No. 8 of 1999: Consumer Protection Berasaskan
consumer protection benefits, justice, equity, security and safety of consumers, as well as legal certainty.
III. CONCLUSION
Based on the description that has been stated above, it can be concluded that the role of law and
stratification social for consumers Online taxi bike has been by the Law on Consumer Protection No. 8 of 1999,
seen from the common goal of safety protection for users of motorcycles between Permenhub number 12 in
2019 with Artikel Consumer Protection Act.
As for the stratification that the law promises equality before the law. One of the legal principles is
equality before the law which means it is the position of everyone is equal before the law. the law does not
distinguish status, rank, caste and social class. All equal before the law but stratification persists.
Therefore, between law and social reality, there was a gap commonly called the legal gap. There is a
difference between what is supposed to happen according to the law with what is happening in society. During
the public there is something that is appreciated, is by itself stratification will occur, measure or criterion
prominent or dominant as the basis for the establishment of social stratification is a measure of wealth, power,
and authority, honor and science, as well as relations in the system Online taxi bike very relevant views with
Social Stratification approach for structured hierarchically.
REFERENCES
Compton, P. (2001) ‘Pain Intolerance in Opioid - Maintained Former Opioid addicts. Effect of Longacting
Maintenance Agent. Drug and Alcohol Dependence’, 63, pp. 139–146.
Fillaili, N. (2019) ‘Tanggung Jawab Perusahaan Transportasi Online Terhadap Penumpang Akibat Adanya
Praktik Peralihan Akun Driver’, 2(4), pp. 1375–1404.
Indonesia, R. (1999) Tentang Perlindungan Konsumen. Lembaran Negara RI Tahun, 8. Indonesia.
Isnantiana, N. I. (2019) ‘Hukum dan Sistem Hukum sebagai Pilar Negara’, JURNAL HUKUM EKONOMI
SYARIAH, 2(1), pp. 19–35.
Jensen, M. C. and Meckling, W. H. (1976) ‘Theory of the firm: Managerial behavior, agency costs and
ownership structure’, Journal of financial economics, 3(4), pp. 305–360.
Journal, P. L. (2018) ‘Perlindungan Hukum Terhadap Penumpang Jasa Angkutan Ojek Online Di Bandar
Lampung.’, 02(01), pp. 505–521.
Kusumohamidjojo, B. (2007) ‘Membangun Peradaban yang Lebih Adil’, MELINTAS, 23(1), pp. 29–45.
Notohamidjojo, O. (1975) ‘Soal-Soal Pokok Filsafat Hukum’, BPK Gunung Mulia, Jakarta Pusat.
Soedjadi, A. (1997) ‘FUNGSI MAHKAMAH AGUNG DALAM KAITANNYA DENGAN HARMONISASI
HUKUM’, Atma nan Jaya: majalah ilmiah Universitas Katolik Indonesia Atma Jaya, 10(1–3), p. 95.
Tumin, M. M. (1988) ‘Stratifikasi Sosial Bentuk Dan Fungsi Ketaksamaan.’
Model Analysis (Swot) Of Curriculum Development From Civic

Education At 21 Century, 4.0 Era In Indonesian Page │ 412
Gunawan Santoso

128 119 PB

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

128 119 PB

Uploaded by

Copyright:

Available Formats

:: IJEBD :: ISSN : 2597-4785 (ONLINE)

(International Journal of Entrepreneurship and Business Development) ISSN : 2597-4750 (PRINTED)

About the Journal

Focus And Scope

IJEBD (International Journal of Entrepreneurship and Business Development) aims to

IJEBD (International Journal of Entrepreneurship and Business Development) published six

Open Access Statement

Muhammad Ikhsan Setiawan

Peer Review Process

EDITORIAL ADVISORY BOARD

Professor Hening Widi Oetomo, STIESIA Surabaya, Indonesia

Earnings Persistence In Affecting Stock’s Prices Of Malaysia And Indonesia Manufacturing

The Influence of Online Advertising on the Consumer Behavior of

Keyword: Consumer Buying Behavior, Marketing, Online Advertising, Philippines, Smartphones

Received: May 10th, 2021

The Influence of Online Advertising on the Consumer Behavior Page │ 257

A. Locale and Sampling

Necessity 4.17 0.591 High

The Influence of Online Advertising on the Consumer Behavior Page │ 258

B. Consumer Buying Behavior

Recognition of Need or Problem 4.13 0.584 High

C. Relationship Between Online Advertising and Consumer Buying Behavior

Table 3. Relationship Between Online Advertising and Consumer Behavior

The Influence of Online Advertising on the Consumer Behavior Page │ 259

D. Regression Analysis on Online Advertising and Consumer Buying Behavior

The Influence of Online Advertising on the Consumer Behavior Page │ 260

The Influence of Online Advertising on the Consumer Behavior Page │ 261

The Influence of Advertising, Sales Promotion, and Service

Novi Nurlaini1, Joko Suyono2, Damarsari Ratnasahara Elisabeth3

Keyword: Advertising, Customer Loyalty, Sales Promotion, Service Quality

Received: November 2nd, 2020

Sales Promotion Customer Loyalty

Service Qaulity (X3)

Figure 1: The research model and hypotheses

B. Data Analysis Techniques

Table 1 : Validity Test of Advertising

Table 2 : Validity Test of Sales Promotion

Table 3 : Validity Test of Service Quality

Table 4 : Validity Test of Customer Loyalty

Table 5 : Reliability Test

Table 6 : Multiple Regression Analysis

1. The influence of advertising on customer loyalty

Factor Influence of Container Loading and Unloading As

Sumarzen Marzuki1, Rusi Aswidaningrum2, Choirul Anam3, Soedarmanto4

Keyword: Dummy Variable, Multiple Linear Regression, Productivity

Received: April 8th, 2021

Factor Influence of Container Loading and Unloading Page │ 273

B. TKBM (Loading and Unloading Workers )

Factor Influence of Container Loading and Unloading Page │ 274

C. Loading and Unloading

III. RESEARCH METHOD

IV. RESEARCH RESULTS AND DISCUSSION

C. Classic Assumption Test

Factor Influence of Container Loading and Unloading Page │ 275

F. P-Plot or Probibality Plot

Figure 1 P-Plot or Probability Plot

G. Kolmogorov-Sminor test data sample

Factor Influence of Container Loading and Unloading Page │ 276

Factor Influence of Container Loading and Unloading Page │ 277

Table 3 Glejser Heterokedastasis Test Results

J. Multiple Linear Regression

Factor Influence of Container Loading and Unloading Page │ 278