1 abstract the purpose of this research is to analyse the increase in product sales using social media advertising. the research was conducted using literature study method and questionnaires that distributed to sellers who used social media advertising in marketing their products. the results show that selling products on social media using advertisements can generate more sales and cunsomers. with social media advertising, sellers can choose the type of potential customers according to the product being sold. the sellers can determine the type of prospective customer based on thier age, residence, and/or hobbies to it easier for the seller to divert the sale of their product. therefore, social media advertising helps sellers who market their products to generate more sales. keywords: product sales, media social advertising received: 22 june 2020 ; accepted: 1 february 2021 ; publish: december 2021 how to cite: rohmawati, t., luckyardi, s. (2021). analysis of e-advertising on sales. journal of business and behavioural entrepreneurship, 5(2), 1-5. https://doi.org/10.21009/ jobbe.005.2.01 analysis of e-advertising on sales tatik rohmawati departemen magister manajemen, universitas komputer indonesia senny luckyardi departemen akuntansi, universitas komputer indonesia email: timkonferensi4@gmail.com https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 2 introduction alalwan (2017) stated that people are aware that social media influences their lives. customers easily engage in interactions using social media such as facebook, google+, snapchat, youtube, and twitter. duffet said that advertising on social media could be a solution for companies that wanted to increase their sales value. by advertising, companies can achieve marketing goals. advertising will make potential customers to be more familiar with the company's products and motivate the consumers to buy products (duffett, 2015). the popularity of social media is growing rapidly as a new advertising platform, which allows users to meet and interact with brands. on the other hand, online market has a significant increase due to the growing number of online users aged 18 to 35. the results reveal that brand awareness has an impact on users' attitudes towards social media advertising, which then influenced their behavioural responses to social media advertising and interest in buying luxury goods (chu, et al., 2013). marketing science stated that social media has become an important platform that is closely related to the product marketing (lund, 2019). technopreneurship is part of entrepreneurship that emphasizes business activities on technology, namely the ability of science and technology in business activities (soegoto, 2014). social media is useful for knowing about competitors' movements and analyzing communication trends that are exchanged within the scope of individual consumers. it is making it easier for companies to develop solutions according to their target customers and prospects (liu, et al., 2019). in addition, the use of advertising on social media becomes an important thing that must be done in marketing luxury branded products. this is because consumers who have an understanding of a brand have a high interest in advertising on social media and will act according to the information they get. in addition, previous studies have shown that people who understand brands will feel anxious about people's views of them if they do not use goods with these luxury brands (chaudhry, et al., 2019). based on other research related to the use of advertisements on facebook pages, a total of 70 global brands show that these companies are updating their information daily. on average, there is always an information about their products. in addition, they use of social media is to ask for ratings from consumers or just to share their experience or testimonial when using their products. this is done to establish a good relationship with consumers (quesenberry, et al., 2019). the impact of using e-wom is the dissemination of information on a product in the form of recommendations distributed by one consumer to another consumer that can be trusted more than the company directly promotes the product. this can influence consumer decisions regarding a product from the information it gets. although some of the consumers do not have many contacts to forward the message, this method should simplify the advertisers when trying to reach other consumers who are easily affected (reichstein & brusch, 2001). ads posted on billboards such as display ads are the most preferred advertisers for marketers. display ads have good effectiveness on social media. companies that use display advertisements posted on billboards will form an informed and targeted audience. display ads are defined as graphic advertisements on websites appearing next to the content of web pages, instant messaging applications, e-mail messages, and other forms of communication on a website (davis & cameau, 2020). the purpose of this research is to analyse the increase in product sales using social media advertising. the research was conducted using literature study methods and questionnaires that distributed to sellers who had used social media advertising in marketing their products. rohmawati, t., luckyardi, s. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-5 analysis of e-advertising on sales https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 3 research methods this study used a questionnaire method by distributing questionnaires to businessmen who have marketed their products through social media advertising using google form. the second method used in this research is the literature study method by discussing international journals related to this study. results and discussions the results of the questionnaire show that 95% of businessman chose instagram in marketing their products. while 5% respondent chose facebook to market the product. instagram is currently the most suitable social media for businesses to market their products. people prefer to see photos or videos than just looking at text. based on we are social data, 80% of indonesians use instagram social media. figure 1. 95% of respondents choose instagram to sell their products based on figure 1, from the total of 150 million social media users in indonesia, around 120 million people have used instagram. this number puts instagram as the 4th place in social media with most users. with so many instagram users in indonesia, utilizing instagram in marketing has a promising potential to be a place for businessmen in marketing their products as can be seen from the following figure: rohmawati, t., luckyardi, s. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-5 analysis of e-advertising on sales https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 4 figure 2. 75% respondents answered that advertising on social media is easy from figure 2, the result shows that 75% considered advertising on social media is easy because the advertising features on social media have instructions on how to advertise which helps online businesses to advertise easily. not only that, many online courses are offered by social media advertising practitioners for businessmen who want to learn to use online advertising. this online course helps businessesmen to improve their advertising techniques (as can be seen in the following figure). figure 3. 100% respondents claimed that they experienced an increase in sales of their products when advertising. from figure 3, we can find out that all respondents who answered the questionnaire admitted that their product sales have increased when using social media advertising. by using advertisements, online businessmen or respondents can reach more targeted potential customers so they can increase sales of their products. conclusion in the decade of this year, technology has developed rapidly. one media that is often used by the millenials today is social media. at this time, online businessman can market their products on social media. social media like instagram, facebook, and twitter provide advertising features. social media advertising became a solution when online businessman needs to increase their sales value. moreover, steps on how to advertise online are easy. instagram, facebook, and twitter have provided the steps to run product advertisements that will be marketed. on the other hand, many youtube channels have given lessons on how to advertise. by advertising online, businessmen can reach more targeted consumers according to the product being sold. this can increase sales value quickly. acknowledgement the author would like to thank all those involved in this research especially prof. ir. dr. eddy soeryanto soegoto, mt., as a lecturer in entrepreneurship course who has guided the writer so that the writer can complete this research. rohmawati, t., luckyardi, s. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-5 analysis of e-advertising on sales https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 5 references alalwan, a. a., rana, n. p., dwivedi, y. k., & algharabat, r. 2017. social media in marketing: a review and analysis of the existing literature. telematics and informatics, 34(7), pp.1177–1190. chaudhry, p. e., cesareo, l., & pastore, a. 2019. resolving the jeopardies of consumer demand: revisiting demarketing concepts. business horizons, 62(5), pp.663 -677 chu, s. c., kamal, s., & kim, y. 2013. understanding consumers' responses toward social media advertising and purchase intention toward luxury products. journal of global fashion marketing, 4(3), pp.158-174. davis, c. h., & comeau, j. 2020. enterprise integration in business education: design and outcomes of a capstone erp-based undergraduate e-business management course. journal of information systems education, 15(3), pp. 8. duffett, r. g. 2015. facebook advertising’s influence on intention-to-purchase and purchase amongst millennials. internet research, 25(4), pp.498–526. liu, y., jiang, c., ding, y., wang, z., lv, x., & wang, j. 2019. identifying helpful quality-related reviews from social media based on attractive quality theory. total quality management & business excellence, 30(15-16), pp.1596-1615. lund, b. 2019. universities engaging social media users: an investigation of quantitative relationships between universities’ facebook followers/interactions and university attributes. journal of marketing for higher education, 29(2), pp.251267. quesenberry, k. a., & coolsen, m. k. 2019. what makes facebook brand posts engaging? a content analysis of facebook brand post text that increases shares, likes, and comments to influence organic viral reach. journal of current issues & research in advertising, 40(3), pp.229-244. reichstein, t., & brusch, i. 2001. the decision‐making process in viral marketing—a review and suggestions for further research. psychology & marketing, 36(11), pp.1062-1081. soegoto, e. s. 2014. entrepreneurship menjadi pebisnis ulung edisi revisi. elex media komputindo. . rohmawati, t., luckyardi, s. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-5 analysis of e-advertising on sales https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 41 abstract the goal of this research is that in the era of the very rapid development of information technology right now, as a developing country, indonesia must continually keep up with current technology trends. it is also to survive in corporate competitiveness on a bigger or worldwide scale, in addition to catching up in technology with industrialized countries. the internet, as a modern information technology medium, has swiftly grown and expanded in all parts of people's life in indonesia and around the world. no exception in the business world. with the online world, it is easy to convey information quickly, broadly and accurately. e-commerce is one result of the application of the internet in the economic field. literature studies are a descriptive research method combining a qualitative approach and data collection tools. the results of this study are expected with e-commerce media as well, it is expected that communication between sellers and buyers can be done remotely. and with this e-commerce medium, they can also save time and money. keywords: e-commerce, digital, transaction received: 22 june 2021 ; accepted: 10 november 2021 ; publish: december 2021 how to cite: astuti, w.a, ramayani, m.a. (2021). e-commerce digital trends in transactions. journal of business and behavioural entrepreneurship, 5(2), 41-50. https:// doi.org/10.21009/jobbe.005.2.06 e-commerce digital trends in transactions wa astuti accounting department, universitas komputer indonesia, indonesia email: wati.aris.astuti@email.unikom.ac.id ma ramayani accounting department, universitas komputer indonesia, indonesia https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 42 introduction according to laudon and traver (2009), e-commerce is a business transaction carried out using the internet and the web that meets two conditions, namely that all transactions are carried out using digital media technology (especially transactions that occur via the internet and the web) and there is a movement currency in the transaction. e-commerce as a trading medium that can be accessed using the internet, will facilitate all human activities today. with e-commerce media, companies will more easily reach everyone in providing product information and information about the company. research conducted by e. soeryanto soegoto "e-commerce and business social media today" in this study electronic commerce (e-business), which uses digital technology and the internet as a means of communication, collaboration with business partners, and company management, is a highly competitive environment in which excellence is one of the features of innovative organizations (soegoto & eliana, 2018). in his research, "the use of e-commerce in increasing the power and sales of companies". with the aim of exploring the significance of e-commerce in the corporate world, which is predicted to deliver major benefits. companies implementing e-commerce can increase profits, and customers, besides having a positive impact on the development of an unfavorable e-commerce business (soegoto et al., 2018). according to several researchers such as, mahir pradana, telkom university student in 2017. in the "classification of e-commerce business in indonesia". is to analyze and discuss the types of e-commerce businesses in indonesia based on phenomena and theoretical developments that underlie information systems (pradana, 2017). ningsih (2018) discussed about analysis of factors affecting the interests of the e-commerce business in students of the faculty of economics, makassar state university. besides, purwanto (2018) discussed about the influence of middle class economic growth on the development of e-commerce in asean (doctoral dissertation). seth siyuan and elena karahanna are students from clemson university and georgia university (2015). they discuss online recommendation systems in the context of b2c ecommerce: a review and future directions (li & karahana, 2015). jengchung victor chen, david c. yen a student from the national institute your text will be rewritten by quillbot. start by typing or pasting something into this box, then hit the enter key. and suny college of economics and business school in oneonta, oneonta, united states (2015). they discuss about e-commerce website loyalty: by cross-cultural comparison. factors affecting e-loyalty on e-commerce websites (chen et al., 2015). meanwhile, according to melly maulin, asep suryana, uud wahyudin, and susanne dida (padjajaran university, 2019). in-depth analysis and provide solutions about the process and form of islamic fashion e-commerce online relationship marketing (purwaningwulan et al., 2019). peri a. manaf, ivany rachmawati, marcella witanto, and adityo nugroho (bina nusantara, 2018). about "e-satisfaction as a reflection of e-marketing and e-sequals in influencing e-loyalty in e-commerce". this study also uses data collection techniques with the example of 100 consumers in banten, dki jakarta, di yogyakarta, west java, central java and east java (manaf et al., 2018). the research was conducted by mauricio s, featherman and nick hajli, a student from washington state university and newcastle university in 2016. in that study, "self-service technology and e-services risks in the era of social commerce". because of the popularity of social networking sites, social commerce has evolved as a subset of e-commerce. activitie's marketing faces additional problems as a result of social commerce (featherman & hajli, 2016). "warehousing in the e-commerce era: a survey". nils boysen, renéde koster, and felix weidinger in 2019, e-commerce reastuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 43 tailers faced the challenge of assembling a large number of time-critical select orders each consisting of only a few order lines with a low order quantity (boysen et al., 2019). from the above background, it can be concluded that e-commerce is an online network that is no stranger to everyday life. people's habits have now begun to change and produce e-commerce that dominates the industry of buying and selling today. the goal of this study is to determine how much influence the use of e-commerce media in today's business world as a practical online promotion medium for buying and selling products. research methods the method used in this research is qualitative research methods. qualitative research is related to cultural studies and creative studies. the materials used in qualitative research are very diverse, including texts that contain problems and a collection of meanings in life. therefore, qualitative research can use semiotic, narrative analysis as well as content and discourse analysis. the information utilized in this study was gathered by studying literature through print and electronic media, which was conducted online through the internet, with a narrative flow of writing about digital trends in transactions. results and discussions information technology has advanced at a breakneck pace and will continue to do so. the internet, which is utilized as a means of communication and a source of information, is one of the most essential information technologies today. the benefits of technology development as a medium for online trade transactions are easier to market their products, with the hope that buyers can easily access sites for see the products offered with internet access and e-commerce, thus, information and information the company's items will be more easily recognized as the word spreads (rachmawati, 2014). another advantage that can be obtained from e-commerce media is that it makes it easier for someone to open a business in developing their business in a flexible way. with this e-commerce media, it is hoped that remote communication between suppliers and purchasers is possible. and it also saves time and money. therefore, according to the title above, the authors are looking for data related to the use of e -commerce supported by the internet as a medium for accessing e-commerce (see figure 1). astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 44 the use of the internet has become a part of the daily needs of most people in the world. based on statistical data disclosed by internet world stats in 2017, there are about 4,000,000,000 internet users worldwide out of approximately 7,000,000,000 total population based on internet world stats more than 250 countries and regions of the world which recorded the largest number of internet users reaching 49.6 % while oceania/australia is the region with the lowest number of internet users at 0.8%. the authors derive this percentage result from the data of frequently visited websites (see figure 2). astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 45 from the list of the most popular websites worldwide according to the first 50 websites listed in the global "top sites" list published by alexa internet. along with changes in their rankings over time. google, facebook, and youtube are the main sites visited by many internet users. however, in this case, the author will also discuss the amazon site or e-commerce site which is ranked 5th on the site most visited by the public. evidence that many internet users regard digital media as a means to shop for the products or services they need. in that way, a company has a greater opportunity to attract public attention through this online medium. on average, visitors stay on the site for an unspecified number of minutes and those unspecified visits bounce off after viewing only one page. in addition, the average website page views per visit is not specified. this is also supported based on statistical data that the author got (see figure 3). based on data from vpnmentor, the number of online b2c sales transactions in every region of the world is increasing every year. the total e-commerce retail sales worldwide will continue to increase and reach 4,479 billion us dollars in 2021.therefore, it can be seen the opportunities provided by the global market for companies or brand owners in indonesia and of course, this can be used by companies to attract their target market using e-commerce media. this is evidenced based on data that in 2016, the total online consumers in indonesia had reached 8,700,000 people, and in 2018, the total e-commerce transactions in indonesia reached around 144,000,000,000,000 rupiah (see figure 4). astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 46 based on figure 4, that indonesia has a tendency to shop through online media or e-commerce, this is an opportunity for entrepreneurs, because through digital media, they can more easily find potential buyers as well as companies or entrepreneurs who can promote their products. according to dr. ir. eddy soeryanto soegoto, there are four promotional objectives: information distribution, product positioning, additional value, and improved sales for the company. promotion can also expand the company's presence or the products it offers or produces. the audience will be introduced to their goods through this advertising, which will include product information and more. the following are some examples of promotions that certain businesses run on their websites. (see figure 5). astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 47 in figure 5, we can see that businesses utilize the internet to sell and market their goods. this is advantageous because it is available to anybody, anywhere and anytime. on this website, companies only need to enter a telephone number or e-mail as access for consumers when they want to buy products. that way, customers can call the number or access this website when they will order online. of course, in this way, customers and companies will find it easier to make the process of buying and selling their products. therefore, it can be concluded that this media indirectly provides great benefits for ordinary companies and entrepreneurs, such as: 1. providing flexible business opportunities with the e-commerce media, companies can clarify market share for businesses. data and information on users of e-commerce websites can influence a company's business decisions. 2. ongoing business activities e-commerce media is digital media that will automatically continue to work. this is what keeps the company going 24 hours without stopping. the use of this media certainly requires very careful planning, because submitting more than 24 hours of business activity to an e-commerce website is a big and difficult decision. 3. e-commerce as a personal shopper's assistance e-commerce has become a personal shopper's assistant. the presence of a notification feature via email as a reminder, starting from items that are entered into prospective buyers' wishlists, product recommendations, to announcements of ongoing discounts or promos. that way, users will be able to be directed, reminded, and make it easier to make transactions on e-commerce websites. when you have an e-commerce website, it's the same as having a store, cashier, and customer service in digital form. in general, internet and e-commerce users are typically teenagers or young adults, thus if we conduct commerce on a website or e-commerce as much as possible it is understandable and attractive to teenagers, but in the business world, the use of ecommerce media must also be able to facilitate parents in meeting their needs and desires, because the corporate world must adapt to different consumer tastes and needs. the following is a data survey on e-commerce users in indonesia and the reasons why they prefer to do business in online media (see figure 6). astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 48 based on the survey results, the total e-commerce users in indonesia in 2017 reached 139,000,000, then rose 10.8% to 154,100,000 in 2018. this year it is projected to reach 168,300,000 users and 212,200,000 in 2023. increase in the year 2023 is estimated to reach 75.3% of the total population of the selected market. the e-commerce sector with the highest revenue in 2023 is expected to reach us $ 11.7 billion. ecommerce, according to loudon, is a transaction process in which buyers and sellers acquire and sell various electronic products from corporations to other firms through the use of computers as business middlemen. then, the authors looked for data that influenced people to open online businesses (see figure 7). based on the results of a survey by the economic and community research institute (lpem), faculty of economics and business, university of indonesia, revealed that the highest reason is that sellers have more flexible business time, which is 63%. in addition, 58.69% of sellers said it was easy to run and manage an online business. furthermore, the cost of selling online vs having an offline store is the third reason that sales choose to sell online, with 49.52 percent choosing to do so. when selling online, the seller also felt this way, the buyer's reach was wider, namely 48.69%. finally, 44% say selling online requires very little capital. the potential for the development of indonesia has a big e-commerce market. this can be observed in the growth of e-commerce buying and selling transactions, which has increased year after year. the growing volume of e-commerce transactions will have a direct and indirect impact on the indonesian economy. the application of e -commerce as an effort to increase business competition which is a company that has used e-commerce services that target directly to consumers where the companies studied are scattered in big cities in indonesia. a company engaged in services and trade with a monthly turnover of 10 million to 100 million. there are six factors that drive companies to use e-commerce to access markets, promote products, build brands, get astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 49 closer to customers, help communicate faster with customers, and satisfy customers. the results of his research, vendors have a direct positive influence on the trust of ecommerce customers in indonesia and the influence is not significant, namely the ability and benevolence variables. vendors have a direct positive influence on the trust of e-commerce customers in indonesia and the influence is significant, namely the integrity variable. conclusion with the existence of e-commerce technology, it is hoped that business actors can follow technological developments, because with e-commerce technology it will make it easier for business actors to carry out their business activities to be more effective and efficient. the advantage for business actors with this e-commerce technology is that it will ease the burden on place or location costs, because there is no need to open various branches to market products in other locations. it is enough with internet access that buyers everywhere can find out what products we are selling. with the convenience of e-commerce technology, it will also benefit buyers, where buyers do not have to go to a trading location, simply by using a smartphone, they will be connected to internet access to make purchases easily without having to go to a location and are not limited by time, whenever and wherever they can shop. with e-commerce technology, besides the wider reach of buyers, with not too much capital and for people with real solid operational activities, of course this makes it very easy to find a product. reference boysen, n., de koster, r., & weidinger, f. 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(2018). a nalysis of factors a ffecting e-commerce business interest in students of the faculty of economics, makassar state university (doctoral dissertation, makassar state university). pradana, m. (2017). klasifikasi bisnis e-commerce di indonesia.. purwaningwulan, m. m., suryana, a., wahyudin, u., & dida, s. (2019). creative innovation online relationship marketing islamic fashion e-commerce in indonesia. library philosophy and practice, 2579. purwanto, a. (2018). the effect of middle class economic growth on the development of e-commerce in asean (doctoral dissertation, library). rachmawati, r. (2014). urban development in the era of information and communication technology. gadjah mada university press astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 50 soegoto, e. s., & eliana, e. (2018, august). e-commerce and business social media today. in iop conference series: materials science and engineering (vol. 407, no. 1, p. 012034). iop publishing. soegoto, e. s., delvi, j., & sunaryo, a. (2018, august). usage of e-commerce in increasing company power and sales. in iop conference series: materials science and engineering (vol. 407, no. 1, p. 012035). iop publishing astuti, w.a, ramayani, m.a. (2021). journal of business and behavioural entrepreneurship, 5(2), 41-50 e-commerce digital trends in transactions https://doi.org/10.21009/jobbe.005.2.06 https://doi.org/10.21009/jobbe.004.2.01 32 abstract this paper aims to find out the right and fast strategy in anticipating the decline in the welfare of fishermen kamal muara during the covid-19 pandemic. the research used sast, ahp, and ism analysis methods. based on the results of ism processing, it shows that the most appropriate and quick strategy is, first, provide subsidies for fishermen's losses due to large-scale social restrictions (psbb). second, providing training programs for processing derivative products and training on sales digitization. third, with digital marketing training to optimize the marketing of their fish catch while ensuring the safety of anglers at work. the government's role, in this case, is not only in budget allocation but also fosters and assists so that anglers can be adaptive to technology in every fishing activity. keywords: covid-19 pandemic, welfare, sast, ahp received: 1 october 2021 ; accepted: 24 december 2021 ; publish: december 2021 how to cite: abdulkadir, a., et.al. (2021). covid-19 pandemic and welfare of fishermen kamal muara. journal of business and behavioural entrepreneurship, 5(2), 32-40. https:// doi.org/10.21009/jobbe.005.2.05 covid-19 pandemic and welfare of fishermen kamal muara amanah abdulkadir singaperbangsa university, indonesia wendra afriana ipb university, indonesia email: weiyacb@gmail.com harry azhar azis airlangga university, indonesia https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 33 introduction the implementation of large-scale social restrictions (psbb) to suppress the spread of the coronavirus causes limited movement of people and goods. as a result, the marketing or distribution chain is interrupted. one of the sectors affected is fisheries. the covid-19 pandemic has affected the sustainability of fishery product production and marketing activities in the fisheries sector. a total of 26,675 fishery households (rtp) were affected by covid-19 because of the falling fish prices and closed marketing for exports (efrizal, 2020). in addition, the policy of closing several areas also affects the absorption of fishery production by fishers. fishers in some areas have difficulty selling fish and getting a fair price (ranny, 2020) the prices of caught fish have decreased, causing fishermen's income to decrease. not to mention, closures in several areas have caused the fish supply chain to be more or less disrupted (mardhia et al., 2020). more than 80% of indonesian fishers are small-scale fishermen who depend on fishing for their livelihood. research by bennett et al. (2020) revealed that the negative impact of the pandemic has implications for small-scale fishermen, such as stopped fishing, fisherman's health risks, disrupted market access, and increased illegal fishing. another problem is that when the fish distribution chain is disrupted, coastal areas that do not have cold storage to store fish will suffer a heavy impact. the fish caught are wasted or sold at very low prices to intermediaries. another impact of the pandemic is also targeting the children of fishers. not all coastal areas and small islands have good access to electricity and internet access. currently, schools are implementing distance learning where electricity and the internet are the main supports (anta, 2020). the pandemic has also had a significant impact on the welfare of fishers. it is recorded that in 2017, as many as 2.7 million fishermen in indonesia contributed to 25 percent of the national poverty rate. the majority of anglers live on the threshold of the poverty line. other data also states that about 53 percent of families in coastal areas live below the poverty line. this description is certainly a specific characteristic of the vulnerability of fishers and cultivators in the socio-economic context, especially in dealing with the current covid-19 (knti, 2020). furthermore, the covid-19 pandemic has made it difficult for kamal muara anglers to find the money. the reason is, the fish they catch are priced very cheaply by traders at auction (accurate, 2020). not only that, before the pandemic, fisherman kamal muara also faced several problems that resulted in a decrease in fishermen's income. as a result, their welfare also decreased. these problems are caused, among others, due to reduced fishery resources caused by heavy metal contamination of ni and pb (sindern 2016 in robin, 2018), acute eutrophication of po4 4 m/l (baum et al. 2015), dissolved inorganic nutrients reaching 21 m/l ( ladwig et al., 2016 in robin, 2018) as well as the conversion of coastal functions due to the reclamation of jakarta bay which has eliminated most of the fishing grounds (sampono, 2013 in robin, 2018). according to ramadhan et al. (2016 in robin, 2018), the potential loss of fishers from territorial waters reaches rp. 94,714,228,734 per year, the loss of shellfish cultivators is rp. 98,867,000,591 per year, the loss of fish cultivators in ponds is rp. 13,572,063,285 per year. therefore, this paper will specifically examine how appropriate and quick strategies are in anticipating the decline in the welfare of kamal muara fishers during abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 34 the covid-19 pandemic, given that fishers dominate the population of kamal muara. it is shown in the research results of robin et al. (2018) that in kamal muara, 81% of respondents work as fishermen, 17% as traders, while in muara angke, 93% of the respondents' main jobs are fishermen, and 7% are traders. research methods the research uses a systems approach which is carried out in stages, namely (1) observation and literature study to determine the location and scope of research, (2) case studies at the specified location to obtain empirical data and expert surveys to acquire knowledge of thinking respondents by purposive sampling (cooper and schindler, 2008). the expert survey stage was carried out through in-depth interviews (idi) and focused discussions (fgd) and filling out questionnaires for sast, ahp, and ism analysis. the first step is to evaluate the main causes of the decline in the welfare of the fishing community of kamal muara. then after knowing these factors, it is necessary to formulate strategic priorities in anticipating the decline in the welfare of the fishing community of kamal muara, after which the program mapping will be carried out first. results and discussions mitigation action based on the results of the fgd conducted with the kkp, relevant agencies from the provincial government, representatives of the north jakarta hnsi, and the fishing community of kamal muara obtained 8 basic assumptions for development policies. the eight assumptions will be processed using the sast technique to obtain the assumptions that are considered the most important and certain to be used in anticipating the decline in the welfare of the kamal muara community. abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 35 figure 1: ranking of strategic assumptions with the sast technique based on the results of the sast analysis in figure 1, there are six assumptions out of eight assumptions that are included in the most certain and most important quadrant, with the order of the highest positions being: 1. fish prices drop 2. illegal fishing increases 3. fisherman's health risk 4. market access is disrupted 5. access to education for fishermen's children 6. have no cold storage to achieve the goal of anticipating a decline in the welfare of the kamal muara community, stakeholders must pay attention to these strategic assumptions as a driving force for its success. the six assumptions obtained from the sast are the necessary conditions for designing a policy model using the ahp method. figure 2 shows the hierarchy of anticipated declines in the welfare of the fishing community of kamal muara and the criterion dependency relationship. each criterion of anticipating a decline in welfare is interrelated. therefore, to assess the importance of each criterion, the ahp method should be used. in the application of ahp, a level of dependence between criteria is required, a degree of dependence between criteria is required. figure 2 main problems improving the welfare of fisherman kamal muara during the pandemic the decision-maker assesses the importance of each criterion based on certain control criteria. the results of this assessment will be processed using software that can accommodate the ahp model to produce an assessment weight that shows the best anticipation in reducing the decline in the welfare of the kamal muara community. abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 36 figure 3. synthesized priorities based on figure 3, the results of the priority scale that are synthesized for alternatives are obtained, which are the best alternatives to realize the research goals/ objectives to anticipate the decline in the welfare of kamal muara fishers during the pandemic, with the most important order being: 1. creating alternative job opportunities (48%) 2. fishermen policy reform (35%) 3. improved area conservation (17%) creating alternative employment outside of fishing has the highest weight (0.476). a side job or relying only on fishing activities is expected to be an added value for fishermen's families. thus, if there is a case where fish catches are low, side jobs can help cover the daily needs of fishermen's families. and, if you catch a lot of fish, this side job can also increase your income so you can save money or buy other necessities. several studies have shown that the strategy used by fishermen to survive with minimal income and full of uncertainty is with side work (asis, 2019; listyawati, 2016). for this reason, it is necessary to formulate policies that are truly in favor of anglers so that they will have an impact on improving the welfare of fishers. fisher's policy reformulation has the second-highest weighting score (0.354). final weighting score 0.169 for increased area conservation. conservation is currently a demand and needs that must be met after reclamation. it is based on harmonizing the community's economic needs with the desire to conserve existing resources for the future. it confirms that nature conservation is not only to preserve the environment but also to improve the welfare of the people around the conservation area. the research results corroborate it by riany et al. (2015); based on the results of ecological and economic evaluations, it can be concluded that the conservation area on the east coast of pulau weh can be very useful in maintaining ecosystems and fish stocks. still, it is necessary to improve the quality of livelihoods to improve economic conditions. abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 37 furthermore, to create alternative employment opportunities, the government and society must, of course, carry out several programs so that these goals can be achieved. however, given the time, it is necessary first to determine the priority scale of which program will be implemented. it can be known with the ism software. based on the results of discussions with experts and the community as objects in the field. the results of processing using the ism software (figure 4) show that the first program that the government must carry out is to provide subsidies for fishermen's losses due to the large-scale social restriction (psbb) policy which has had a huge impact. the government must be present for the fishermen of kamal muara so that they do not fall into the cycle of poverty. the second program is with regulations that regulate the prohibition of certain fishing tools and methods. the two programs must synergize with each other, considering that the government must be present for the welfare of the entire community, and its presence must also be oriented towards legal justice and welfare. law exists not only to guarantee legal certainty but also to bring prosperity to all indonesian people. figure 4 ism structure furthermore, if the program has been implemented well, then the program's continuation that can be carried out is to conduct training in environmentally friendly fishing. the results of arafat's research (2018) state that without an effort to reconstruct fishing gear, the policies made will not benefit the sustainability of fishery resources and traditional fishers. reconstruction of fishing gear here means the transition from destructive fishing gear to environmentally friendly fishing gear. without mitigation from the government regarding the transition of fishing gear, several fishermen will not go to sea and lose their livelihoods. the subsequent impact, of course, on the welfare of anglers and their families. furthermore, the programs that must be carried out are training on processing derivative products and digitizing sales. these two programs are essential, especially in the industrial era 4.0. fish and other fishery products are perishable foodstuffs, partly due to microbiological degradation and enzyme activity. processed fish production 23 47%; the remainder is sold fresh or exported. traditional processing methods are more dominant than modern methods. abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 38 for this reason, training on food processing based on fishery products can be marketed to increase the selling value of fishers. not only processing but in the industrial era 4.0, anglers must also be smart in marketing the processed products to buyers. see the matrix values in the highest and lowest columns; it can be seen in figure 6. picturer 5. matriks driving power (dp) dan dependence (d) sector or quadrant i: autonomous, no sub-elements quadrant ii: dependent there are sub-elements 2 and 3 quadrant iii: lingkage has sub element 1 quadrant iv: independent there are sub-elements 4 and 5 figure 5 is grouped by driving power (dp) and dependence (d) which consists of 5 (nine) sub-elements. the picture shows that 1 sub-element, namely environmentally friendly fishing training is in the linkage. dependent 2 (two) subelements, namely training on processing derivative products and training on sales digitization. while independent, there are 2 sub-elements, namely subsidies for fishermen's losses and regulations that regulate the prohibition of the use of certain fishing tools and methods. while autonomous, there are no sub-elements. based on the value of driving power and dependence, the dp-d matrix is obtained, at there are subsidies for fishermen's losses and regulations governing the prohibition of certain fishing tools and methods in the independent sector, meaning that the government's role in the driving force is strong. however, dependence on other systems is still weak. while in the dependent sector, there are 2 (two) sub-elements, namely training on processing derivative products and training on digitizing sales. that is, the driving force is weak, but the dependence on other systems is strong. the impetus for processing derivative products and selling products can be done digitally. however, there is still a shortage of human resources who train, so they strongly depend on other systems to provide such training to fishers. in the linkage sector, there is one sub-element, namely environmentally friendly fishing training. this means that these sub-elements have an important role in all fishing activities. abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 39 conclusion based on the results of the ism processing that have been described previously, that the most appropriate and quick strategy to be able to help the welfare of the fishermen of kamal muara does not decrease during this pandemic, the first in the program to provide subsidies for fishermen's losses due to large-scale social restrictions (psbb). this subsidy can be done in the form of providing subsidized fuel for the fishermen of kamal muara and optimizing the operation of the fishermen's public fueling station. this was done to encourage the fishermen of kamal muara to be more productive. the welfare of the fishermen of kamal muara did not decrease, although there was an insignificant decline. after the program is well implemented, the next step is to provide a training program for processing derivative products and digitizing sales. this strategy can be done by implementing a diversified adaptation strategy. this diversification strategy is important because fishery commodities are perishable or perishable commodities and do not last long if stored intact. for this reason, training on derivative products is intended to minimize the level of damage to fishery products by diversifying processed products that are more durable but still have a stable selling value. furthermore, digital marketing can optimize the marketing of their fish catch while ensuring the safety of anglers at work. the government's role, in this case, is not only in budget allocation but also fosters and assists so that anglers can be adaptive to technology in every fishing activity. reference abdul asis. 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(2013). penerapan metode analytical hierarchy process (ahp) pada sistem pendukung keputusan pemilihan laptop. pelita informatika budi darma, iv(2). yasser arafat, mawardi khairi. (2018). kebijakan larangan penggunaan alat penangkapan ikan cantrang dalam perspektif negara hukum kesejahteraan. jurnal borneo vol 2 (2). https://doi.org/10.35334/bolrev.v2i2.724 yudi sutrasna,ahmad sugiono, hendra. wulan. a. m. (2020). application of analytical hierarchy process (ahp) in determining maritime defense strategy abdulkadir, a., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 32-40 covid-19 pandemic and welfare of fishermen kamal muara https://doi.org/10.21009/jobbe.005.2.05 https://doi.org/10.21009/jobbe.004.2.01 13 abstract the purpose of this research is for analyzing the role of e-commerce in business success in coblong regency. the qualitative analysis method with the case study model is a research method applied in this research. the object of this research uses four micro -scale entrepreneurs who have used an e-commerce system to run their businesses. the role of e-commerce in small and medium enterprises (smes) in coblong regency became the basis of the analysis process in this research. based on the results of this research, it can be concluded that in general, the role of e-commerce can help entrepreneurs to improve their business development, this also applies to small and medium entrepreneurs. these roles include ease of communication, minimal capital, ease of marketing, and time efficiency. the results of the analysis have shown that e-commerce is still used by respondents for the role they have. keywords: e-commerce, smes, business development received: 22 june 2020 ; accepted: 9 june 2021 ; publish: december 2021 how to cite: andeka, z.n.p., indrawan, b. (2021). the role of e-commerce in the success of small and medium enterprises. journal of business and behavioural entrepreneurship, 5(2), 13-19. https://doi.org/10.21009/jobbe.005.2.03. the role of e-commerce in the success of small and medium enterprises z n p andeka departemen ilmu komunikasi, universitas komputer indonesia, indonesia b indrawan department teknik informatika, universitas komputer indonesia, indonesia email: timkonferensi4@gmail.com https://doi.org/10.21009/jobbe.004.2.01 14 introduction in this modern era, the development of technology is accelerating and encompassing all activities of human life. the development of information technology is currently entering the joints of human life. information technology (it) makes things easier and cheaper. the role of it in the business is getting more powerful. this is indicated by the activeness of large multinational companies to use the internet and the website as a means of marketing their products. the use of the internet for companies today is necessary. every company that wants to expand its marketing reach must have a website, which is a vehicle for promotion and transactions for the company. the impact of technological developments in the economy field is that business is not only carried out in a small scope but extends to a large scope. the development of internet technology makes it possible to do business through the internet. e-commerce payments have changed the business process in the world (awa, et al., 2015). ebusiness is a new business model that provides many significant benefits, such as saving costs for executing fast business transactions and encouraging business activities globally. therefore, it is also removing barriers to market penetration. however, based on research conducted by small and medium enterprises (smes), in africa, smes move slower to adopt a phenomenon than large companies (al-somali, et al., 2015) e-business is not only developing in large companies but also in smes. smes are an important part of the economy of a country or region, including in indonesia. smes play an important role in absorbing new workers and businesses, smes also can increase the number of new business units to increase household income. it also has good business flexibility when compared to large-capacity business ventures. previously, smes have not received full attention from the government. however, nowadays, the government is promoting programs to improve smes in indonesia and give special attention to smes. the utilization of the internet is growing and increasingly known by many people because of its easy access and cheap internet connection. the utilization of the internet for various business activities is called e-commerce. the activities conducted online include marketing, promotions, public relations, transactions, payments, and scheduling the delivery of goods as well as the possibility of many innovations about the development of e-commerce technology itself. a concept that can be described as the process of buying and selling or exchanging products, services, and information through information networks including the internet is called electronic commerce or e-commerce (ghiffarin, et al., 2019). e-commerce can be done by smes to market their products in addition to expanding market access. e-commerce for marketing sme products can give us several benefits because it is easier and more efficient. at first, e-commerce was limited to large business organizations only. however, the benefits of e-commerce have an important role for smes. there is some evidence that smes are getting a lot of benefits from e-commerce. moreover, most smes cannot get the benefits of the implementation of e-commerce. this is good for small businesses because of reduced costs and provide better opportunities for smes. nowadays email, website, and e-money become e-commerce tools that are often used by sme companies. this can facilitate smes in dealing with consumers. besides that, smes can also make savings transactions. one of the smes that concerns us is "coffee shop". it is because globally, coffee shop is classified as an expanding small business. coffee shop in the coblong sub-district, bandung, west java, is mostly found in almost every corner of the street. as smes, coffee shop owners must keep abreast of technological developments in the modern era by developing e-commerce. besides, coffee shop owners must pay attention to aspects of the lack of e-commerce itself, for example, disruptions to the internet network also hinder payment transactions. owners of coffee shop must also provide a stable internet for payment transactions so that consumers feel satisfied with the services provided by coffee shop. companies must be able to adapt and realize that eandeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 15 commerce and social media have an important role to connect the company with its customers in order to increase the company's business growth online (charoensmesongkol, et al., 2017). some economists say that e-commerce must have a direction on intense competition in increasing the ability of consumers to gather product and price information (williams, 2018). individuals or businesses that are included in ecommerce, both consumers and sellers, rely on internet-based technology to make payment transactions. it is because e-commerce can do business anywhere and anytime. the power of e-commerce can make geophysics disappear and make consumers and businesses potential customers (williams, 2018). e-commerce gives producers choices about the scale and type of business that producers will develop. with the application of e-commerce technology, producers can choose to develop their target markets for the global or just focus on the local. the utilization of e-commerce in small and medium businesses can offer a quality and affordable product as well as be confident in dealing with competitors. the most important thing that must be considered is how small and medium businesses can offer and demonstrate services or products through their own websites and can be done through online sales (kasemsap, 2016; narimawati, et al., 2018). market-oriented organizations recognize the importance of understanding their customers and competitors. therefore, the failure to respond and identify competitive threats can make a serious impact on the organization. competition is an important factor that can determines failure or success (yang, et al., 2016; xena, et al., 2019). market-oriented organizations must recognize and understand how important their customers and competitors are. the purpose of this research is for analyzing the role of e-commerce in business success in coblong regency. the qualitative analysis method with the case study model is a research method applied in this research. the object of this research uses four micro-scale entrepreneurs who have used an e-commerce system to run their businesses. the role of e-commerce in small and medium enterprises (smes) in coblong regency became the basis of the analysis process in this research. research methods the qualitative analysis method with the case study model is a research method applied in this research. the data collected by interviews with four small and medium enterprises owners whose e-commerce stability conditions varied, the owner determined as the sample for the simple research in this paper. the data obtained are discussed by comparing e-commerce practices applied by small and medium enterprises that have been discussed by experts before and analyzed from our perspective. this paper discusses the role of e-commerce in small and medium enterprises (smes) in coblong district. the sample taken is the owner of small and medium enterprises because small and medium enterprises are easily found in coblong regency. although the business includes small and medium enterprises, the owner must also pay attention to how the role of e-commerce in the success of the business owned as well as pay attention to the dangers so that the business does not suffer losses. this paper is made with five main criteria as survey questions, namely: 1. on a scale of 1 to 5 (very unprepared, unprepared, mediocre, ready, very ready) how ready are your efforts to compete with similar smes? 2. on a scale of 1 to 5, how ready is your business to make transactions using ecommerce payments? 3. on a scale of 1 to 5, how ready are you to face internet connection disruptions when consumers make payments? 4. on a scale of 1 to 5, how ready is the role of e-commerce in your business continuity? andeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 16 5. on a scale of 1 to 5, how ready are your efforts to create innovation in the technological development? results and discussions based on the results of interviews and surveys conducted of four small and medium enterprises in the coblong regency, we found differences in data and readiness of smes in facing obstacles that may befall their businesses according to the survey questions conducted. the data were taken with a simple interview and survey techniques for four smes. first, smes a that has a permanent place of business, business license, and large-scale marketing turnover above fifty million rupiahs per day. second, smes b that has a shop and a turnover of between fifteen to twenty million rupiahs per day, and its production and marketing. third, smes c that has a permanent place of business, business license, a large-scale marketing turnover above eighty-five million rupiahs per day. last, smes d that has a business place and a turnover of between twenty to twenty-five million rupiah per day. the following are the results of the survey data that have been conducted can be seen in the table below. table 1. the comparison of the role of e-commerce in the success of 4 smes in the coblong regency all the interviewed smes are ready to compete with other similar smes because they already have knowledge about how to overcome competition between other smes. among the four smes interviewed, only smes d was not ready to conduct transactions using e-commerce payments because smes d had no knowledge of how to use e-commerce payments and did not keep up with technological developments while smes a, b, and c were ready to follow technological developments by making transactions using e-commerce payments. success aspects of smes coffe kamek a gedogan b janji jiwa c kopi endeus d readiness to compete with similar smes 5 5 5 5 readiness to make transactions using ecommerce payments 5 4 4 2 readiness to face internet connection disruptions when consumers make payments 4 2 3 3 readiness of the role of ecommerce in business continuity 3 2 5 4 readiness to create innovation in the face of technological development 2 4 3 1 amount of 19 17 20 15 percentage (in%) 76 64 80 60 andeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 17 they also know the benefits of transactions using e-commerce payments. out of the four small and medium businesses, only smes b who is not ready to face the internet connection disruptions when consumers make payments because smes b will feel disadvantaged by internet connection interruptions while smes a, c, and d are ready to face internet connection interruptions when consumers make payments due to the third smes understand the risks of payment transactions using e-commerce. smes a, c, and d are ready for the role of e-commerce in business continuity because they already know the benefits of having e-commerce in their business, while smes b is not ready because they do not want its business to fail by using ecommerce in its business. smes a and smes d are not ready to create innovations for technological development because they only follow technological developments and do not want to learn more about technological developments, while smes b and smes c are ready. as previously known, smes b does not know technological developments. therefore, smes b will learn and will take advantage of the importance of technological development, while smes c feels they need to add technology knowledge because so far their business has been very profitable with ecommerce. conclusion based on the results of this research, it can be concluded that micro small and medium businesses, especially coffee shops, need good risk management to anticipate obstacles that may arise in their business trips such as limited business premises, civil service police units that conduct raids, compete with similar micro-businesses, competing in product presentation, readiness to face the challenges of the globalization era, weather challenges in product marketing, had a loss, limited raw materials, the taste quality, and bankruptcy. having good risk management guarantees the sustainability of the company's business. references awa, h. o., ojiabo, o. u., & emecheta, b. c. 2015. integrating tam, tpb and toe frameworks and expanding their characteristic constructs for e-commerce adoption by smes. journal of science & technology policy management, 6 (1), pp.76-94. al-somali, s. a., gholami, r., & clegg, b. 2015. a stage-oriented model (som) for e -commerce adoption: a study of saudi arabian organisations. journal of manufacturing technology management, 26(1), pp. 2-35. ghiffarin, a. r., priyandari, y., & liquiddanu, e. 2019. marketing analysis for ecommerce improvement in small and medium enterprise of batik using ecommerce marketing mix model. in iop conference series: materials science and engineering, 495(1), p. 012044. charoenssmesongkol, p., & sasatanun, p. 2017. social media use for crm and business performance satisfaction: the moderating roles of social skills and social media sales intensity. a sia pacific management review, 22(1), pp. 25-34. williams, k. 2018. engineering a woman: marketing opportunities and challenges [amperes: current affairs from around the world]. ieee w omen in engineering magazine, 12(2), pp. 47-c3. kasemsap, k. 2016. advocating electronic business and electronic commerce in the global marketplace. in e-retailing challenges and opportunities in the global marketplace, pp. 1-24. igi global. narimawati, u., soegoto, e. s., & kartini, d. 2018. asean community and indonesia’s competitiveness in higher education: a need for market orientation. asian journal of scientific research, 11, pp. 449-455. andeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 18 conclusion from the results of the research above, it can be concluded that e-advertising is very effective in influencing consumers. it can be seen from the terms of source information which indicated that social media has a very broad impact on information exposure toward consumer. in addition, advertisement exposure frequency and source of advertisement exposure indicated the similar results. exposure of the e-advertisement increase the possibility to gain consumer which in turn can gain increased profit. however, since social media is two way communication channel, it need more attention in the proper combination of textual and visual content. acknowledgement the author would like to thank all those involved in this research especially prof. ir. dr. eddy soeryanto soegoto, mt., as unikom rector and lppm unikom who support in the completion of this research. references agustrijanto. 2001. seni mengasah kreatifitas dan memahami bahasa iklan.bandung: remaja rosdakarya. alalwan, a. a., rana, n. p., dwivedi, y. k., & algharabat, r. 2017. social media in marketing: a review and analysis of the existing literature. telematics and informatics, 34(7), pp.1177–1190. andini, n. p., & suharyono, s. 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(2018). implementasi digital marketing dalam membangun brand awareness. profesi humas, 3(1), 1-20. owen, r., & humphrey, p. (2009). the structure of online marketing communication channels. journal of management and marketing research, 2, 1. prasetya, r. a. (2017). tindak tutur pada iklan produk makanan cepat saji di televisi dan implikasinya dalam pembelajaran bahasa indonesia di sekolah menengah pertama (doctoral dissertation, universitas lampung). andeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 19 sin, k. y., osman, a., salahuddin, s. n., abdullah, s., lim, y. j., & sim, c. l. 2016. relative advantage and competitive pressure towards implementation of ecommerce: overview of small and medium enterprises (smes). procedia economics and finance, 35, pp. 434-443. yang, z., shi, y., & yan, h. 2016. scale, congestion, efficiency and effectiveness in e -commerce firms. electronic commerce research and a pplications, 20, pp. 171-182. xena, p., & rahadi, r. a. 2019. adoption of e-payment to support small medium enterprise payment system: a conceptualised model. international journal of accounting, 4(18), pp. 32-41. andeka, z.n.p., indrawan, b. (2021). journal of business and behavioural entrepreneurship, 5(2), 13-19. the role of e-commerce in the success of small and medium enterprises. https://doi.org/10.21009/jobbe.005.2.03 https://doi.org/10.21009/jobbe.004.2.01 108 abstract currently, many companies are implementing outsourcing systems for their company's hr management. outsourcing is a company that uses human resources from other parties (external) to carry out work activities that are usually handled by internal staff and resources. the problem that exists is because the outsourcing system affects the performance of employees at a food ingredients factory in cilegon, where there are still high complaints from clients regarding the decline in the performance of forklift operator employees placed in their company. this shows the inaccuracy at work leads to a lack of employee motivation. employee motivation problems can be the cause of low employee performance in a company. the objectives of this study are (1) to determine the effect of the outsourcing system on employee performance and (2) to see the effect of work motivation on employee performance. this study tested 2 hypotheses with data sources originating from respondents of outsourcing employees of pt. amp, a division of forklift operators at the cilegon grocery factory, analyzed the influence of the outsourcing system and work motivation on employee performance in the company. the research limitations of this research are information, primary and secondary data in this study were only obtained from pt. amp. the population and sample of this study were all outsourced employees of pt. the amp division of forklift operators placed 30 people in a food ingredients factory in cilegon. this study uses a quantitative approach method. the data collection technique used primary data in the form of a questionnaire. the data analysis technique of this research used the structural equation modeling-partial least square (sem-pls) method. based on the results of the direct influence hypothesis research, it is known that the outsourcing system has a positive and significant effect on employee performance. and motivation has no significant effect on employee performance keywords: outsourcing system, motivation and employee performance received: 18 november 2021 ; accepted: 21 december 2021 ; publish: december 2021 how to cite: setiawati, n.e. (2021). analysis of outsourcing system and work motivation on employee performance. journal of business and behavioural entrepreneurship, 5(2), 108117. https://doi.org/10.21009/jobbe.005.2.13 analysis of outsourcing system and work motivation on employee performance neng eti setiawati magister of management, postgraduate, universitas sultan ageng tirtayasa e-mail address: nerathea@gmail.com https://doi.org/10.21009/jobbe.004.2.01 mailto:nerathea@gmail.com 109 introduction human resources are important assets in companies and organizations. to achieve competitive advantage, organizations urgently need human resources who have high levels of energy, productivity and commitment in their workplace (bakker and schaufeli, 2008; chen, 2018), because someone with a positive attitude at work can have an impact on organizational success ( al mehrzi and singh, 2016; gruman and saks, 2011). it is very important to know how human resource management practices impact on employees to show a high level of performance (karatepe, 2013). according to cropanzano and mitchell (2005) and saks (2006) when organizations get sufficient human resources, they are more likely to pay employees with better performance. this applies to permanent employees and employees from outside the company or called outsourcing. at this time many companies are implementing outsourcing systems for the management of their company's human resources. outsourcing is a company using human resources from other parties (external) to carry out work activities which are usually handled by internal staff and resources. the author conducted research at pt. amp, this company is a company engaged in the field of man power supply (outsourcing). outsourcing is a contract employee with a certain time work agreement (pkwt), so that outsourced employees feel they are not guaranteed job security. this is a problem for them regarding the continuity of work (rachmawati rachman, 2019). and there are still high complaints from clients regarding the decline in the performance of the forklift operator division employees who are placed in the company. this shows the inaccuracy at work which leads to a lack of employee motivation. according to abraham maslow, the need for security is one of the hierarchy of needs after the most basic needs for employees, namely physiological needs (emron, et.al, 2020:175). the need includes a sense of security at work and old age guarantees in this case there are three possibilities, the continuation of the work contract, becoming a permanent employee or terminating the work contract. employee motivation problems can be the cause of low employee performance in a company. work motivation can be interpreted as the strength possessed by an individual that can increase his potential in carrying out an activity (prabowo, et al, 2017) in muhammad tafrizi priarso et al, 2018. motivation refers to the direction, intensity, and persistence of effort. employee motivation is the key to the organization, where the organization spends a lot of effort trying to maximize employee motivation and maximize employee expertise which triggers increased employee performance which in turn will achieve organizational performance (michael howe and russell e. johnson, 2016). the author hopes that employees and companies can benefit from this research regarding outsourcing systems and work motivation in order to improve employee performance for the better so that organizational performance is achieved. literature review performance performance is the result that comes from a process that refers to and can be measured on the terms and accuracy of a certain period in accordance with what has been previously determined (emron, et.al, 2020:188). the dimensions that become benchmarks in achieving or measuring performance according to john miner in (emron, at.al, 2020: 192) are as follows: (1) quality, setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 110 namely the level of error, damage, accuracy, (2) quantity, namely the amount of work generated, (3) the use of time at work, namely the rate of absenteeism, tardiness, effective working time/lost working hours and (4) collaborating with other employees at work. outsourcing system outsourcing is that part of the work is handed over to other companies by entering into a contracting agreement (provider) of work services (khairani, 2016, in maryam dunggio, 2019:168). in labor law, outsourcing can be found implicitly in law no. 13 of 2003 concerning manpower. there are articles on outsourcing arrangements, which can be found in article 64, article 65, and article 66. article 64 reads: a company may hand over a part of the execution of work to another company through a work charter agreement or the provision of worker or labor services made in writing. it is further clarified in the provisions of articles 65 and 66 which regulates the agreement which can be in the form of (a contract for contracting work and providing worker or labor services) based on pkwt and pkwtt contracts and the parties involved are the relevant business actors, namely; (outsourced workers or workers, companies providing or accepting jobs and companies using outsourcing or users). in the outsourcing work system according to (khairani, 2016) in maryam dunggio, 2020:168 mentions that there are several indicators. these include (1) employment contracts, (2) remuneration systems, (3) duration of work, (4) termination of employment and (5) worker welfare. work motivation motivation can be seen in terms of how individuals choose to use their limited personal resources (such as time and energy) towards the achievement of certain results, it is the extent to which a person is driven to achieve something. motivation refers to the direction, intensity, and persistence of effort. employee motivation is the key to the organization, and organizations spend a lot of effort trying to maximize employee motivation to maximize employee expertise and in turn organizational performance is achieved (michael howe and russell e. johnson, 2016). there are five levels of needs arranged in a hierarchy according to abraham maslow's motivational theory, including (1) physiological needs, (2) safety needs or security needs, (3) affection needs or love needs (needs for safety). to be liked), (4) esteem needs (needs for recognition), and (5) self-actualization needs (needs for selfdevelopment). setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 111 conceptual framework figure 1. conceptual framework source: processed in research, 2021 hypothesis development by looking at the theoretical review and framework of thinking above, the hypotheses in this study can be stated as follows: the results of previous research from (maryam dunggio and rosario, 2020) state that there is a positive and significant influence between the outsourcing system on employee performance, this shows that the better the implementation of the provisions contained in the outsourcing system, the higher the employee performance. h1: the outsourcing system has a positive and significant effect on employee performance the results of research from (ketut ir sudiardhita, et.al, 2018) state that there is a positive and significant influence between motivation on employee performance. this shows that if work motivation increases, the performance of employees will also increase. h2 : work motivation has a positive and significant effect on employee performance outsourcing system (x1)  employment contract  remuneration system  working duration  work termination  worker welfare work motivation (x2)  physiological needs  need for security  need to be liked  recognition needs employee performance (y)  quality  quantity  use of time at work  cooperate with other employees at work h1 h2 setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 112 research methodology this study uses quantitative methods. quantitative research methods are methods in which the data is presented in the form of numbers and analysis uses statistics (sugiyono, 2019:7). the population of this research are all outsourcing employees of pt. the amp division of forklift operators placing 30 people in a food ingredients factory in cilegon. the sample of this research is 30 outsourcing employees of pt. amp's forklift operator division is placed in a food ingredients factory in cilegon. to determine this sample, the researcher used the saturated sampling method. this method is a sampling technique if all members of the population are used as samples. this can be done if the population is relatively small (sugiyono, 2019:85). the data collection technique of this research was using a questionnaire (questionnaire). this technique is a technique that is carried out by providing structured questions or statements to respondents (sugiyono, 2019:142). the questionnaire in this study contains statements for respondents to choose one answer with alternative answers consisting of intervals worth 1-10. the measurement scale used for the assessment of the questionnaire using a likert scale. starting from a scale of 1 for the rating level of "strongly disagree", to a scale of 10 "strongly agree". the data analysis technique of this research uses the structural equation modeling-partial least square (sem-pls) method. according to ghozali in (ketut ir sudiardhita, et.al, 2018), sem-pls is a multivariate analysis technique that allows researchers to be able to examine the relationship between complexes (recursive and non -recursive) in order to get a comprehensive picture of the overall model. this complex relationship can be constructed from one or more dependent variables with one or more independent variables. each variable can be a construct that is built from several indicators. results and discussions analysis of the measurement model (outer model) the measurement model is described as a model between latent variables (constructs) with related indicators. the indicators for each variable can be referenced from references (azuar juliandi, 2018). construct validity test the results of the first data processing, on the outsourced system variable there is an invalid indicator (< 0.60) on the so5 indicator = 0.503. so the indicator with a loading factor value of less than 0.60 is removed. in order to meet the requirements of convergent validity above 0.60, where the rule of thumb for the loading factor value is > 0.60 (ghozali & latan, 2015). after processing the second data, it turns out that there is still a loading factor value below 0.60, namely the so4 = 0.595 indicator, so that the indicator is deleted and the third data processing is carried out. in the third data processing, all indicators have a loading factor value above 0.60, so that all indicators of each variable have met the convergent validity requirements. convergent validity in the convergent validity test there are two value criteria generated, namely: the setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 113 loading factor value and the average variance inflation factor (ave) value. the results of these two research values can be seen in table 1 and table 2, as follows: table 1. outer loading value of each research variable indicator source: output of research data analysis results, 2021 based on the output of the loading factor value of the outsourcing system variable, after removing two indicators, namely so4 and so5, so that the remaining three measurement indicators, four indicators of motivation variable measurement, and four indicators of employee performance measurement as a whole already have a loading factor value above 0.60. thus, all indicators forming the outsourcing system construct, motivation, and employee performance are declared valid. ave test the rule of thumb for the average variance inflation factor (ave) parameter is > 0.50 (ghozali & latan, 2015). the ave value can be seen in table 2 table 2. average variance inflation factor (ave) value source: output of research data analysis results, 2021 the ave value of all constructs has met the requirements of the value > 0.50, so that based on the ave value test on the outsourcing system variable, employee motivation and performance are declared valid. setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 114 determinant validity the value of the rule of thumb parameter cross loading for the measurement of the validity of the determinants is > 0.70 for each variable (ghozali & latan, 2015). the results are shown in table 3. table 3. cross loading indicator value source: output of research data analysis results, 2021 from table 3, it can be seen that the cross loading value of each indicator on the construct is greater. so it can be concluded that the latent variable (construct) has good discriminant validity, which can be seen in the value of the construct indicator which is greater than the other block indicators. reliability test to find out the proof of accuracy, consistency and accuracy of the instrument in measuring the construct, namely by conducting a reliability test. in sem pls, it can be done with cronbach's alpha and composite reliability for construct measurement with reflexive indicators. the rule of thumb for this parameter is >0.70 (ghozali&latan, 2015). tabel 4 cronbach’s alpha dan composite reliability value source: output of research data analysis results, 2021 by looking at table 4, it is known that all of the variables cronbach's alpha and composite reliability values are above 0.70 so that all variables are declared reliable. inner model the structural model (inner model) is described as a model between constructs (latent variables) that are interconnected. the relationship between these constructs setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 115 (latent variables) is based on certain theories or assumptions (azuar juliandi, 2018) r-square r-square is used for the dependent construct in the evaluation of the structural model. using the r-square value to assess the effect of certain endogenous variables and whether exogenous variables have a substantive effect (ghozali & latan, 2015). the results of the r-square value of 0.75 identify the strong model, 0.50 identify the moderate model, and 0.25 identify the weak model (ghozali & latan, 2015). table 5 r-square value source: output of research data analysis results, 2021 based on the r-square value in table 5, which is 0.658, it means that 65.8% of the variation in this case changes in employee performance is influenced by the outsourcing system and the remaining 34.2% motivation is influenced by other variables that were not studied. so that the s-square value on the employee performance variable can be categorized as moderate. direct effect hypothesis test testing the direct influence hypothesis was carried out to determine the structural relationship between latent variables on the path coefficient between variables by comparing the p-value with alpha (0.005) or t-statistics of (> 1.96). the magnitude of the p-value and also the t-statistics can be seen in table 6. table 6 path coefficient value source: output of research data analysis results, 2021 hypothesis test results 1 based on table 6, the p-value value is 0.000 < 0.05 or with a t statistic of 5.265 > 1.96 then h1 is accepted. this means that the outsourcing system has a positive and significant effect on employee performance. hypothesis test results 2 setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 116 based on table 6, the p-value value is 0.423 > 0.05 or with a t statistic of 0.803 < 1.96, then h2 is rejected. this means that motivation does not have a positive and significant effect on employee performance. discussion based on the results of the direct influence hypothesis research, it is known that the outsourcing system has a positive and significant effect on employee performance. that is, the better the implementation of the provisions of the outsourcing system, the more employee performance will be. in labor law, outsourcing can be found implicitly in law no. 13 of 2003 concerning manpower. this is in line with the results of research from (maryam dunggio & rosario, 2020) which states that the outsourcing system has a positive effect on employee performance. from the results of the direct influence hypothesis research, it is known that motivation has no significant effect on employee performance. the cause of the results of the study of motivational variables does not affect the possibility because in the company there is no reward, training and career development program, so motivation does not really affect employee performance. the results of this study are not in line with research from (mardiyah tusholihah, et.al., 2019) which states the results are that motivational variables have a significant influence on employee performance at pt. citus. then it is not in line with research (ketut ir sudiardhita, 2018), which states that work motivation has a positive and significant effect on employee performance. conclusion based on the results and discussion above, it can be concluded that all the data presented have met the requirements of each parameter indicating that it is valid and reliable. the results of the hypothesis in this study that the outsourcing system has a positive and significant effect on employee performance. the results of the hypothesis that the motivation variable has no significant effect on employee performance. recommendation suggestions for management in order to increase work motivation for employees by holding training programs, providing rewards for employees who excel, and working with users in developing employee careers to create high motivation in employees which in turn can improve employee and company performance. references anak agung prabhaputra, i nyoman putu budiartha dan i putu gde seputra. 2019. sistem outsourcing dalam hubungan industrial di indonesia (outsourcing system in industrial relation in indonesia). jurnal analogi hukum vol. 1 no 1. azuar juliandi. 2018. modul pelatihan structural equation modeling-partial least square (sem-pls) dengan smart pls. doi: 10.5281/zenodo.1243777 dr. emron edison, dr. yohny anwar, dr. imas komariyah. 2020. manajemen sumber daya manusia. penerbit alfabeta. cetakan kedua.isbn: 978-602-289-216-8. setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 117 dr. fazil senol. 2014. the effect of job security on perception of the internal motivation means : a research from turkey. manas social studies vol:3 no: 1 ketut ir sudiardhita, saparuddin mukhtar, budi hartono, herlitah, tuty sariwulan, sri indah nikensari. 2018. the effect of compensation, motivation of employee and work satisfaction to employee performance pt. bank xyz (persero). academy of strategic management journal. volume 17, issue 4. mardiyah tusholihah, ardi nupi hasyim, astry novitasari, puja pauziah oktavia, fanny indah lestari, muhamad fadl, ahmad miftah sobari. 2019. pengaruh motivasi dan disiplin kerja terhadap kinerja karyawan outsourcing. e-journal equilibrium manajemen. volume 5 nomor 2 . maryam dunggio, rosario. 2020. pengaruh sistem outsourcing dan kompensasi terhadap kinerja karyawan pada pt. astra international tbk auto 2000. mediastima volume 26 no 2. e-issn 2746-6493. p-issn 0852-7105 michael howe and russell e. johnson. 2016. work motivation. the encyclopedia of adulthood and aging, first edition. edited by susan krauss whitbourne. john wiley & sons, inc. by john wiley & sons, inc. doi: 10.1002/9781118528921.wbeaa122 muhammad tafrizi priarso, prastiyo diatmono, siti mariam. 2018. the effect of transformational leadership style, work motovation, and work environment on employee performance that in mediation by job satisfaction variables in pt. gynura consulindo. business and entrepreneurial review e-issn 22524614 vol 18 no 2 prof. dr. sugiyono. 2019. metode penelitian kuantitatif, kualitatif dan r&d. penerbit alfabeta cetakan ke 27. isbn: 979-8433-64-0. prof. drs. h. imam ghozali m.com, ph.d, ak & hengki latan, se. 2015. partial least squares konsep, teknik dan aplikasi menggunakan program smartpls 3.0. (untuk penelitian empiris) edisi 2. badan penerbit – undip. isbn : 979.704.300.2 rachmawati rachman. 2019. pengaruh manajemen outsourcing terhadap kesejahteraan sumber daya manusia di pt. gsd. jurnal manajemen jaya negara. issn: 2548-9348. vol 11. rahmad solling hamid,se,mm&dr. suhardi m anwar,drs,mm. 2019. structural equation modeling (sem) berbasis varian : konsep dasar dan aplikasi dengan program smartpls 3.2.8 dalam riset bisnis. pt. inkubator penulis indonesia (institute penulis indonesia). setiawati, n.e. (2021). journal of business and behavioural entrepreneurship, 5(2), 108-117 analysis of outsourcing system and work motivation on employee performance. https://doi.org/10.21009/jobbe.005.2.13 https://doi.org/10.21009/jobbe.004.2.01 122 abstract the purpose of this study is to analyze the effect of prophetic leadership on the workplace spirituality among officials and employees in an islamic boarding school. this quantitative research used data collection through a survey, in a form of a set of questionnaire, in the sufism-based islamic boarding school in tasikmalaya, indonesia. the study sample consisted of 270 officials and employees of the boarding school. the data was analyzed using sem with the amos 24 program, to test the effects. the research findings showed a significant effect of the prophetic leadership on the workplace spirituality. originality of this research on the unit analysis of officials and employees at the sufism-base islamic boarding school. keywords: : prophetic leadership, workplace spirituality, and sufism-base islamic boarding school received: 28 february 2020; accepted: 15 april 2020; publish; june 2020. how to cite: budiono, i., hamidah, yasin, m. (2020). the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school. journal of business and behavioural entrepreneurship, 4(1), 122-129. https://doi.org/10.21009/ jobbe.004.1.09 the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school irfan budiono universitas negeri jakarta email: irfanbudiono_im16s3@mahasiswa.unj.ac.id hamidah universitas negeri jakarta mahmuddin yasin universitas krisnadwipayana 123 introduction pesantren, a typical islamic education from indonesia, has grown significantly. in 1977, there were 4,195 pesantrens nationwide. it grew up to 11,312 pesantrens in 2001 and 14,798 in 2005. by 2014, it has been 28,194 pesantrens (directorate general of islamic education, 2014). a pesantren is usually led by a kyai, or shaykh, a central figure who has a distinguished leadership style compared to common leadership styles in any other education institutions. kyai’s leadership is shaped by islamic leadership style that refers to the way the prophet led i.e. prophetic leadership. hamid (2017) mentioned a term of prophetic leadership, by which innovation process occurs in pesantren (hamid & juliansyahzen, 2017). according to ramadhana (2008), one of the characteristics of the prophetic leadership is a combination of participative, charismatic and transformational leadership (ramadhana, 2008). in line with the view from ramadhana, another research by asy’ariy (2018) mentioned that the advantages of transformational, visionary and situational leadership can be seen in the practice of prophetic leadership. in contrary, contiguity of the above is also found in the prophetic leadership (asy’ariy, 2018). according to maheran (2015), prophetic leadership expands the point of view of leadership and provides a richer and in-depth understanding about a relationship between a leader and followers in relation to the quality of decision-making process. prophetic leadership explores literatures on the life of the prophet and describes a theoretical relationship between personal characters and spiritual leadership (maharen nik muhammad, 2015). ramadhana (2008) also mentioned that prophetic leadership is supported by spiritual authority (ramadhana, 2008). according to tobroni (2015), a spiritual leader has an ultimate commitment, dedication and integrity and is based on absolute values. ethics of the spiritual leadership is as seen as the practice by the prophet, based on quran (tobroni, 2015). according to naidoo (2014), a workplace spirituality may lead to a spiritual leadership that allows employees and leaders act based on personal truths, integrity, values and ethical practices (naidoo, 2014). ayranci and samercios (2011) analyzed that spirituality has a significant relationship with spiritual leadership. this relationship is stronger that the relationship between spiritual leadership and spiritual and religious factors (ayranci & semercioz, 2011). referring to views from maheran, ramadhana and tobroni, it is concluded that there is a positive relationship between prophetic leadership and workplace spirituality. many pesantren have distinctive characteristics, one of which is sufism-based education. this characteristic is promoted by sufism organization named tariqa. a tariqa, originally a form of individual piety in a modest and exclusive bond between a sufi master and its followers, has structurally developed into a form of a complex religious institution. there are tariqas that structurally expands their educational forms into a pesantren (riyadi, 2014). a strong bond between sufi master (mursyid) and its followers is the main pillar for the tariqa and creates a top-down organization. such relationship is seen negatively as it is perceived to obstruct a modernization of a pesantren. this perception emerges some some reasons, first, tariqa imposes individual cult; second, such cult creates taqlid as the followers devotes their life to their master. such relationship is perceived to provide a narrow space for freedom, creativity and initiative from sub-ordinates. a sufism-based pesantren provides contributions to the quality of human resources through a sufism education. a strong bond between a sufi master and its folbudiono, i., hamidah, yasin, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 124 lowers, and dominance of a sufi master creates a negative impression on the workplace spirituality of the educators on the boarding school. this condition refers to the definition of workplace spirituality ie : feeling completeness and joy (giacalone, 2015); meaningful works (ashmos and duchon, 2000); opportunity to strengthen health and spiritual well-being (lee, richter, & mcguire, 2013); create loyalty and productive (hicks, 2003), which of course is influenced by a leader, while pesantren leadership is prophetic leadership (hamid, 2017). so, it is very important to know the influence of prophetic leadership on spirituality at work, as well as in order to prove the truth of the negative impressions that emerge. referring to the above narration, the objective of this research is to understand the influence of the prophetic leadership on the workplace spirituality in a sufism-based pesantren. the fact that there is no simil. literature review prophetic leadership prophetic leadership is theoretically based on the life of the prophet. it is a leadership style that leads to all aspects and elements in life and builds mutual relationship between leader and followers (maheran nik muhammad, 2015). prophetic leadership is a process to influence others in order them to sincerely follow the directions with loyalty as a reflection of their obedience, fear and faith toward allah swt (adhdzakiey, 2009). prophetic leadership, such as what has been done to the prophets, is the ability to influence others to sincerely achieve common goals. the process of influence is executed by examples, through four characteristics, namely sidiq (integrity), amanah (accountable, trustworthy), tabligh (emphatic and effective communication) and fathonah (intelligent) (budiharto & himam, 2006). prophetic leadership also shows leadership relationships and social network theory, the need to find common ground and synergy between leaders and followers (maheran nm & akbarzadeh, 2013). prophetic leadership is the concept of leadership from the prophet that consists of the behaviours and attitudes of the leader (hadi hm, 2012). prophetic leadership should be based on three foundations: grace, kindness, and justice. (ali, 2009). workplace spirituality workplace spirituality is a dynamic factor in building trust between management and employees (alas & mousa, 2016). workplace spirituality is defined as a framework of values of individuals or organizations that introduce transcendental experience of employees through work processes and a way to facilitate a connected sense to others in a way that gives a feeling of completeness and joy (giacalone, 2015). workplace spirituality is a recognition by employees whose inner life is nourished by meaningful works within the community (ashmos and duchon, 2000). workplace spirituality is the psychological climate in a workplace. this condition is due to people (workers) see themselves maintained meaningful jobs, so that the work unit is filled with a high spirituality (duchon and plowman, 2005). feelings regarding the settlement relationships with self and others refer to as the dimensions of workplace spirituality (mitroff & denton, 1999). workplace spirituality is workplace conditions where a person has opportunity to strengthen their health and spiritual well-being (lee, richter, & mcguire, 2013). workplace spirituality is often used to create loyalty and productive workers (hicks, 2003). modern workers experience personal spirituality at budiono, i., hamidah, yasin, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 125 workplace as they feel the presence of an impersonal power in its work and recognize the existence of a higher power beyond one's immediate experience that supports the activities of the job (solomon, 2005). the effect of prophetic leadership on workplace spirituality servicing leadership has a positive and real linkage with the workplace spirituality (khan, khan, and chaudhry, 2015). the effectiveness of leadership based on workplace spirituality is interconnected with and has a positive impact on the performance of employees (sukanya, 2014).. there is a positive correlation between transformational leadership and workplace spirituality (majeed, mohd nor and mohd mustamil, 2017). spiritual leadership had a positive and significant effect on workplace spirituality (jufrizen, sari, nasution, radiman, & wahyuni, 2019), the above arguments lead to an interim conclusion that the prophetic leadership provides a directly positive influence on the workplace spirituality. research method sample and data collection the study uses a survey method using analysis techniques of structural equation model (sem), by amos 24 program and the maximum likelihood estimation approach. the sample in this study includes 273 employees and officials in idrisiyyah boarding school. the sampling technique is a probability sampling using simple random sampling, regardless of the strata in the population. measures all constructs in the study was measured using likert scale (likert scale), with a range of values from 1 to 5. the range is between “strongly disagree” (sd) = 1 up to “strongly agree” (sa) = 5 in order to measure the construct of the workplace spirituality. the prophetic leadership is measured using following indicators: self control, influencing others with sincere, provide direction (soul, qolbu, reasonable thought, body and behaviour through exemplary characteristics of sidiq, amanah, tabligh, and fathonah (budiharto & himam, 2006; adz-dzakiey, 2009; munardji, 2016). the workplace spirituality is measured using following indicators: recognition has an inner life is nourished, feel the meaning in work, making productive workers, giving a sense of joy and completeness, and acknowledge the role of god (ashmos & duchon, 2000; duchon & plowman, 2005; hicks, 2003; giacalone, 2004; solomon, 2005). results and discussions the test results (see table 1) show that the model full model can be categorized meet the criteria of fit, it's based criteria have been fulfilled several criteria of goodness of fit. the results of chi-square test calculations in obtaining a full model chi-square value of 105,412 is still above the chi-square table for 76 degrees of freedom at a significant level of 1% at 107,58. a probability value of 0.014 which is above value of 0.01. value cmin / df amounted to 1,387 is still below value 2,00. gfi value of 0.937 (good), above 0.90 ;. agfi value of 0.916 (good) still above 0,9; tli value of 0.9985 (good) above 0.90. cfi value of 0.988 (good) which value is above 0.90 and below rmsea value of 0.041 (good) which is below to the value of 0.08. budiono, i., hamidah, yasin, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 126 table 1. goodness of fit value factor loading all indicators (see table 2) show the estimated value of which is in the range of 0.725 and 0.887 value. this means that this value is above the limit value of 0.5 is used as the criteria, so the model is considered fit and able to continue to the next test. based on the results of variance extract and the reliability contruct obtained variance extract value 0.687, for the leadership prophetic and 0.594 for workplace spirituality as for reliability contruct, the value of 0.952 for prophetic leadership, and 0.879 for workplace spirituality . value of variance extract and the reliability contruct obtained showed a good value, which implies there are indicators that can explain the construct. table 2. standardized regression weights pl = prophetic leadership, wps = workplace spirituality table 3. variance extract and reliability contruct testing statistical hypotheses on the hypothesis of a positive relationship between the prophetic leadership on workplace spirituality, can be seen with cr values obtained from the regression weight maximum likelihood estimates (see table 4). cr value with a probability of 9.075 and ***. qualify for acceptance of the hypothesis, which value cr greater than 1.96, and the probability is less than 0.05. so there is positive and significant correlation between the prophetic leadership to workplace spirituality. model gfi agfi tli cfi rmsea cmin / df default models , 939 , 916 , 985 , 988 , 041 1,387 estimate estimate wps <--pl ,689 x8 <--pl , 725 x1 <--pl ,763 x9 <--pl ,782 x2 <--pl ,832 x10 <--wps ,732 x3 <--pl ,805 x11 <--wps ,729 x4 <--pl ,887 x12 <--wps ,737 x5 <--pl ,828 x13 <--wps ,808 x6 <--pl , 826 x14 <--wps ,840 x7 <--pl ,854 variable reliability contruct variance extract prophetic leadership 0.952 .687 workplace spirituality 0.879 .594 budiono, i., hamidah, yasin, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 127 table 4. summary regression weights discussion the research concludes that the prophetic leadership has a directly positive influence on the workplace spirituality. this is in line with the study by abdurrahman and agustini (2011); sukanya (2014) mentioned that the spiritual leadership provides a positive and significant correlation with the workplace spirituality. if the servicing leadership is also considered to lead toward a prophetic leadership, this study is also in line with the arguments by khan, & chaudhry (2015) and that by ayranci and semercioz, 2011. it is also consistent with the opinion from devost, 2010 that demonstrated a correlation between leadership and the workplace spirituality. it is also consistent with the view from jiang lin et. al (2017). this research also strengthens a prior study by majeed, mohd nor & mohd mustamil (2017) that showed a fact that there is a positive correlation between transformational leadership and the workplace spirituality (majeed at al, 2017). it is in accordance with the study by ayranci and semercioz (2011) that pointed a correlation between spiritual factors and spiritual leadership. this relationship is stronger that the relationship between spiritual leadership and spiritual and religious factors (ayranci and semercioz, 2011). views from previous researchers have indicated that leadership is a direct and positive influence on the workplace spirituality. the research in pesantren idrisiyyah also showed that the prophetic leadership provides a positive influence on the workplace spirituality. this finding is in contrary with common view that leadership by a sufi master (mursyid) in a tariqa is dominant (suyuti,1996). there is also a perception that tariqa applies an authoritatian leadership (howell, 2001). object of the research is a sufism-based pesantren in tariqa idrisiyyah. unlike any other tariqas, idrisiyyah, originally named sanusiyyah, is a tariqa that forms an organizional movement. this tariqa combines a traditional tariqa leadership and professional organization. it bases its successes on 2 methods i.e. burhaniah (knowledge) and isyraqiyah (devide enlightenment). such combination has brought tariqa sanusiyah into a solid organization (al-sanusi, 2001). as a successor of sanusiyyah, tariqa idrisiyyah in indonesia also applies the same organizational movement. in contrary to stereotype, tariqa idrisiyyah pays stronger attention on syariah aspect than mystical aspect (pili, 2019). although idrisiyyah promotes sufism-based pesantren, idrisiyyah is not against science and technology. idrisiyyah applies an accountable and transparent management (priatna, nurhamzah, ratnasih & siregar, 2018). the pesantren encourages its students to learn sufism-based entrepreneurship for self-sufficiency (suryatman, 2017). tariqa idrisiyyah shows a rapid progress in institutionalization, economic development, human resource management, education and social works. it is a progressive movement that build cooperation for a better world (basyir, 2019). thus, idrisiyyah is well-known as a neo sufism in indonesia (pili, 2019). a positive influence of the prophetic leadership on the workplace spirituality is easily seen in pesantren idrisiyyah as the spiritual guidance by the sufi master occurs in daily life of its followers. sufism is taught regularly for followers, while specific topics of teachings is delivered weekly for employees and educators. some indicators for a workplace spirituality estimate se cr p label workplace spirituality <-- prophetic leadership ,563 , 062 9.075 *** par_13 budiono, i., hamidah, yasin, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 128 such as a maintained spiritual life, feeling of a meaningful works, recognition of the precence of god in work life are amongst the topics delivered by the sufi master. thus, the prophetic leadership by the mursyid in pesantren idrisiyyah has a positive correlation with the workplace spirituality for its followers and educators in the pesantren. conclusion the research in pesantren idrisiyyah showed that the prophetic leadership provides a positive influence on the workplace spirituality. this is in line with the study from previous researchers have indicated that leadership is a direct and positive influence on the workplace spirituality. a positive influence of the prophetic leadership on the workplace spirituality is easily seen in pesantren idrisiyyah as the spiritual guidance by the sufi master occurs in daily life of its followers. acknowledgment this research was funded with researcher’s own funds and could be carried out by the contribution of many parties. the researcher would like to express deep gratitude to all parties contributed to the completion of thus research. special thanks to the the top management of the pesantren idrisiyyah and management board, whole parties at the boarding schools that allowed the institution as the object of the research. sincere thanks to the lecturers of jakarta state university and all colleagues at the jakarta state university, who contribute brilliant ideas to this research. references adz-dzakiey, h. b. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (122-129)  the role of prophetic leadership on workplace spirituality at sufism-based islamic boarding school.  https://doi.org/10.21009/jobbe.004.1.09 1 abstract as a result of the covid-19 pandemic, everyone is required to follow the new normal rules, new habits, new routines, keep a distance, don't crowd, and of course the effect of the covid-19 pandemic has a big impact on entrepreneurs, the lack of buyers coming to shops or trade stalls causes a decline in turnover in the new normal era, entrepreneurs are required to think intelligently and innovatively so that their business can continue to run and not lose money, one of the solutions for this new normal era is to use the marketplace platform as a means of selling online such as shope, tokopedia, bukalapak, etc. the study was conducted only on female entrepreneurs in the city of lamongan because many women during the pandemic started doing online business to help the family economy due to the covid 19 pandemic, this study aims to find which marketplace platform is the most effective in increasing sales in the new normal era for women in the city lamongan. the research method was carried out by distributing questionnaires and determining the number of respondents using the snowball sampling method with a total of 100 respondents. the results show that the independent variables x1, x2, x3, x4 and x5 are effective as marketplace platforms in increasing sales in the new normal era. meanwhile, based on statistic calculation variables x2 (shope) and x3 (tokopedia) have an effect to the y1 variable (sales level effectiveness). keywords: entrepreneurial women, market place, new normal and sales level received: 17 february 2021 ; accepted: 30 september 2021 ; publish: december 2021 how to cite: sayekti, l.i., taufik, m. (2021). marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era. journal of business and behavioural entrepreneurship, 5(2), 1-12. https://doi.org/10.21009/ jobbe.005.2.01 marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era levia inggrit sayekti universitas islam lamongan email: leviainggrit@unisla.ac.id muhamad taufik universitas islam lamongan email: taufik@unisla.ac.id https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 2 introduction the development of women entrepreneurs in developing countries such as indonesia has the potential to be the main motor driving the process of empowering women and social transformation (tambunan, 2012). during the covid-19 pandemic, there are currently many entrepreneurs who have been affected, namely experiencing a decrease in income, even not a few of their businesses have gone out of business or bankruptcy caused by several factors ranging from lack of capital, lack of experience and innovation in marketing, lack of use of the media social media as a means of media sales so that it becomes the cause of failure or bankruptcy in running a business. in the new normal era, many women are used to running a business using the marketplace and supported by the use of social media, marketplace is a place for the sellers to sell a variety of products and greatly assist the consumer in the purchase transaction online. marketplace can be used as an alternative solution for purchases online that are safe for consumers because marketplace is an intermediary that brings together sellers and buyers in the account web . as develops the industrial revolution 5.0 develops ,shopping online has become a habit for many people, especially women, especially in the midst of a pandemic like this time. indonesia is the e-commerce largest market in southeast asia, there are 90% of active internet users in indonesia doing shopping transactions online (wearesocial and hootsuite, 2020). in 2019, the value of market capitalization ecommerce in indonesia reached usd 21 billion or around idr 294 trillion, the industry e-commerce in indonesia is predicted to reach a value of usd 40 billion by 2022 (mckinsey, 2019). responding to the challenges of the industry revolution 5.0, where everything can be accessed through the grip of a hand by utilizing the sophistication of a smartphone, of course, is an opportunity for women entrepreneurs and most women entrepreneurs in lamongan city have taken advantage of the platform. marketplace and social media as a means of selling media with the hope that the business development is being carried out and when viewed from the platform marketplaces have the 5 marketplaces largest in indonesia based on the number of monthly visitors in the second quarter of 2020, namely shopee 93.4 million, tokopedia 86.1 million, bukalapak 35.2 million, lazada 22 million and blibli 18.3 million (jayani, 2020). the research was conducted on women entrepreneurs in lamongan city who use the platform marketplace as an effort to increase sales in the new normal era, this research conducted by distributing questionnaires that have marketplace independent variables while the dependent variable is the effectiveness of sales level in the new normal era. this study aims to determine the platform marketplace which is the most effective in increasing sales so that female entrepreneurs in lamongan city can choose and maximize their business opportunities through the platform marketplace that can be accessed anytime anywhere by using a smartphone. literature review entrepreneurship entrepreneurship is someone who sees opportunities and then creates an organization to take advantage of these opportunities. according to the big indonesian dictionary (kbbi), an entrepreneur (entrepreneur) is a person who is clever or talented in recognizing new products, detersayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 3 mining new production methods, arranging operations for procurement of new products, marketing them, and regulating operating capital. women entrepreneurs entrepreneurs are a group of women who start, organize and operate business businesses. women who enter the business field have various reasons why they are interested in pursuing the business field online. women entrepreneurs are women who participate in entrepreneurial activities in total, are able to face risks, and are able to identify opportunities in their environment to process resources properly so that they can create competitiveness (marthalina, 2018). the role of the marketplace marketing through the marketplace is an effort to increase the competitiveness of the buying and selling market by using the marketplace, namely there are several advantages as follows (rahadi and triyadi, 2019): 1. social media provides a window for marketers that is not only useful for marketing products and services, but also for listening to consumer complaints and suggestions; 2. social media is very easy for marketers to identify consumers based on groups who can influence their views on a brand; and 3. social media is run free of charge. online communication techniques in the purchase process the communication process in purchasing has several stages, namely the search for products or services, awareness of needs, evaluation and search for other alternatives, purchase and post-purchase (sudjatmika, 2017). incommunication online can be implemented within companies to market their goods and services or provide facilities to customers such as those described in the following table: research methods table 1. communication techniques online in pur chasing pr ocess communication engineering online awareness search alternative evaluation purchase post purchase description targeting advertising, conducting events promotional search engines,cat alogs online,vi sitors website, emails targeted search engines,cata logs online,vis itors website, product reviews,eva luations user promotions online, raffles, discounts, emails targeted newspapers , email customer, online update source: (sudjatmika, 2017) sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 4 research was conducted by distributing questionnaires to female entrepreneur respondents in lamongan kota using the marketplace platform through a quantitative approach using the theory of the relationship between dependent variables and independent variables, so that data in the form of questionnaire results were obtained and then analyzed based on procedures statistical (hendryadi, 2017). operational definitions the research indicators are divided into 5 (five) independent variables and 1 (one) dependent variable (y), namely as follows: table 2. classification of var iable variable indicators x1 lazada x1.1 convenience of using the marketplace platform x1.2 ease of selecting goods / products sold x1.3 information on promotional media for goods / products sold x1.4 payment methods x1.5 chat with sellers x2 shope x2.1 convenience of using the marketplace platform x2.2 ease of selecting goods / products sold x2.3 information on promotional media for goods / products sold x2.4 payment methods x2.5 chatting with sellers x3 tokopedia x3.1 convenience of using the marketplace platform x3.2 ease of selection goods / products sold x3.3 information on promotional media of goods / products sold x3.4 payment methods x3.5 chat with sellers sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 5 data collection and resources techniques the research data collection was carried out using a questionnaire distributed to respondents, the number of respondents was collected using the method snowball sampling sampling where the technique was based on interviews or correspondence. this method asks for information from the first sample to get the next sample, so continuously until all the research sample needs can be met (naderifar, goli and ghaljaie, 2017) and in this study the number of respondents used is 100 respondents in order to get effective results. in data retrieval. data analysis method likert scale is used in measuring questionnaires where respondents will answer and choose to agree or disagree with the questions asked by researchers with an interval scale of 1-5 (junaidi, 2015), how is the effectiveness marketplace for women entrepreneurs in increasing sales in the new era normal, with the following scale indicators: a. very insignificant to get a value of 1 b. has no effect gets a score of 2 c. somewhat influential gets a score of 3 d. influential, has a value of 4 e. very influential got a score of 5 x4 bukalapak x4.1 convenience of using the marketplace platform x4.2 ease of selection of goods / products sold x4.3 information on promotional media for goods / products sold x4.4 payment methods x4.5 chat with sellers x5 blibli x5.1 convenience of using the marketplace platform x5.2 ease of use selection of goods / products sold x5.3 information on promotional media of goods / products sold x5.4 payment methods x5.5 chats with sellers y effectiveness of sales y1 effectiveness of sales promotions in the new normal era y2 effectiveness of buyers' interest in the marketplace platform y3 effectiveness of trust buyers to the marketplace source: pr ocessed var iable classification sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 6 results and discussions the results of respondents' perception of the independent variables are presented in the following table: table 3. summar y of results respondents per ception item sales factor in social media effect level statement number 1 2 3 4 5 very insignifica nt has no effect some what influential influen tial very influen tial x1.1 convenience of use platform marketplace 0 0 10 64 26 100 x1.2 ease of selection of goods / products sold 0 3 17 47 33 100 x1.3 information on promotional media for goods / products sold 0 0 12 55 33 100 x1.4 payment methods 0 0 9 60 31 100 x1.5 chat with sellers 0 3 10 52 35 100 x2.1 convenience of using the marketplace platform 0 0 17 66 17 100 x2.2 ease of selecting goods / products sold 0 1 18 60 21 100 x2.3 information on goods / promotional media products sold 0 0 5 43 52 100 x2.4 payment methods 0 0 11 49 40 100 x2.5 chat with sellers 0 0 10 68 22 100 x3.1 convenience of using the marketplace platform 0 0 14 64 22 100 x3.2 ease of selection goods / products sold 0 0 12 54 34 10 0 x3.3 information on promotional media for goods / products sold 0 0 9 45 46 100 x3.4 payment methods 0 0 14 45 41 100 x3.5 chat with sellers 0 0 3 29 68 100 sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 7 the validity and reliability test is used to reference the measuring instrument of the research by distributing questionnaires from each research variable. the rcalculated correlation number that will be compared with the r-table correlation number will obtain the validity of each variable (yusup et al., 2018), for reliability measurements using results from cronbach alpha> 0.60 , for more details, it is presented in the following table which is produced through the spss 25 program: x4.1 convenience of using the marketplace platform 0 0 7 47 46 100 x4.2 ease of selection of goods / products sold 0 3 8 61 28 100 x4.3 information on promotional media of goods / products being sold 0 0 17 62 21 100 x4.4 payment methods 0 0 12 52 36 100 x4. 5 chat with sellers 0 0 3 46 51 100 x5.1 convenience of using the marketplace platform 0 0 9 42 49 100 x5.2 ease of selection of goods / products sold 0 0 6 32 62 100 x5.3 information on promotional media for goods / products being sold 0 0 16 63 21 100 x5.4 payment methods 0 0 9 43 48 100 x5.5 chat with sellers 0 0 6 33 61 100 y1 effectiveness of sales promotions in the new normal era 0 1 25 51 23 100 y2 effectiveness of buyers' interest in the marketplace platform 0 0 14 60 26 100 y3 effectiveness of buyers' trust in the marketplace 0 2 31 45 22 100 source: data pr ocessed by resear cher s, 2020 sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 8 table 4.validity and reliability test of resear ch instr uments variable items validity reliability alpha r-count r-table x1 x1.1 0.617 0.195 0.680 x1.2 0.799 x1.3 0.549 x1.4 0675 x1.5 0620 x2 x2.1 0794 0195 0817 x2.2 0753 x2.3 0741 x2.4 0744 x2.5 0778 x3 x3.1 0824 0195 0901 x3.2 0851 x3.3 0909 x3.4 0895 x3.5 0.747 x4 x4.1 0.361 0.195 0.620 x4.2 0.569 x4.3 0.718 x4.4 0.783 x4.5 0.732 x5 x5.1 0.910 0.195 0.921 x5.2 0.863 x5.3 0.779 x5.4 0.917 x5.5 0.886 sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 9 based on table 4 0.195 r-table and all indicators were considered valid questions in the test validity because it has a greater value than r-table . as well as the results of the reliability test which has value cronbach alpha or alpha reliability greater than 0.600 according to the standard and it can be said that all question items on each variable indicator are declared reliable (budiastuti and bandur, 2018). furthermore, testing using the spss 25 tool is continued to test the value of regression analysis which can be seen in the following table: based on table 5 determination of research variables, obtained from the calculation of spss software, the multilevel correlation (r) between variables x1, x2, x3, x4 and x5 on variable y1 is 0.613 or 61.3% and it can be said that the use of the marketplace platform effective. used in increasing sales in this new normal era . while the r square coefficient (r2) on the dependent variable (y1) shows a value of 0.376 or 37.6% which is influenced by the independent (x1, x2, x3, x4 and x5). y1 y1.1 0786 0195 0733 y1.2 0824 y1.3 0822 source: pr ocessed data resear cher spss 25, 2020 table 5. deter mination of resear ch var iables model r r square adjusted r square std. error of the estimate 1 0.613a 0.376 0.343 1.394 a. predictors: (constant), x5, x1, x2, x4, x3 b. dependent variable: y1 source: data pr ocessed by resear cher s at spss 25, 2020 table 6. anova a model sum of squares df mean square f sig. 1 regression 110,118 5 22,024 11,335 0,000b residual 182,632 94 1,943 total 292,750 99 a. dependent variable: y1 b. predictors: (constant), x5, x1, x2, x4, x3 source: data pr ocessed by resear cher s spss 25, 2020 sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 10 based on table 6, anovaa obtained a significance value of 0.000 while an alpha value of 0.05, thus the comparison of the significance value <alpha (0.000 <0.05) is obtained. the multiple regression equation with two independent variables is as follows: y1 = β1x1 + β2x2 + β3x3 + β4x4 + β5x5 based on table 7 research variable coefficients, in this study there are independent variables x1 (lazada), x2 (shope), x3 (tokopedia), x4 (bukalapak) and x5 (blibli). the values at the output are then entered into the multiple linear regression equation as follows: y1 = 2.264 + 0.060 x1 + 0.587 x2 + 0.126 x3 + 0.068 x4 + 0.062 x5 1. positive constant value of 2.264 shows the effect of the independent variable x1 ( lazada), x2 (shope), x3 (tokopedia), x4 (bukalapak) and x5 (blibli). if the independent variable increases, the dependent variable y1 will increase the effectiveness of the sales level and will be fulfilled. 2. the coefficient value of x1 (lazada) has a value of 0.060 or 6%, the coefficient is positive but insignificant, it can be stated if the variable x1 (lazada) has an effect on sales but does not affect the effectiveness of sales increase in variable y1. 3. the value of the x2 coefficient (shope), has a value of 0.587 or 58.7%, the coefficient is positive and significant, it can be stated that if the variable x2 (shope) has an effect on sales and affects the effectiveness of sales increase in variable y1. 4. the coefficient value of x3 (tokopedia) has a value of 0.309 or 30.9%, the coefficient is positive and significant. it can be stated that the x3 variable (tokopedia) has an effect on sales and has an effect on the effectiveness of sales increase in variable y1. table 7. resear ch var iable model coefficientsunstandardized coefficients standardized coefficients t sig. b std.error beta 1 (constant) 2,264 1,772 1.277 0.000 x1 0.046 0.076 0.060 0.612 0.542 x2 0.435 0.076 0.587 5738 0.000 x3 0.081 0.173 0.126 4.707 0.000 x4 0.059 0.146 0.068 0.404 0.687 x5 0.039 0.131 0.062 0.299 0.766 a. dependent variable: y1 source: data pr ocessed by resear cher s at spss 25, 2020 sayekti, l.i., taufik, m. (2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 11 5. the value of the x4 coefficient (bukalapak), has a value of 0.068 or 6.8%, the coefficient is positive but insignificant can be stated if the x4 variable (bukalapak has an effect on sales but does not affect the effectiveness of sales increase in y1 variable. 6. the coefficient value x5 (blibli), has a value 0.062 or 6.2% positive but insignificant coefficient can be stated if the variable x5 (blibli) has an effect on sales but does not affect the effectiveness of the increase in sales of variable. 7. the differences between this research and previous research are as follows: 1. the difference between this study and the research conducted by yenny sugiarti, yenny sari and mochammad arbi hadiyat (2020), which lies in the object of research where yenny sugiarti et al examines the role of e-commerce micro, small and medium enterprises (msmes) sambal (sugiarti, sari and hadiyat, 2020) 2. while the difference between this research and tengku khairil ahsyar, syaifullah, and ardiansyah (2020) with the title "e-marketplace media development for promotion of micro, small and medium enterprises, pekanbaru city small and medium enterprises cooperatives" lies in the method in which tengku's research uses the payback period and return on investment (roi) (ahsyar, syaifullah and ardiansyah, 2020) 3. likewise, research conducted by i putu artaya and tubagus purworusmiardi (2019) has differences in the results of testing using crosstabs (artaya and purworusmiardi, 2019) conclusion the results of the study show that the independent variables x1 (lazada), x2 (shope ), x3 (tokopedia), x4 (bukalapak) and x5 (blibli) are effective as marketplace platforms in increasing sales in the new normal era, where researchers prove a significant effect simultaneously which can be explained by the f-test where f-count has a value of 11.335 on 5% real level, and a significance value of 0.000. the closeness of the relationship between the independent variables x1 (lazada), x2 (shope), x3 (tokopedia), x4 (bukalapak), x5 (blibli) with the dependent variable y1 (sales level effectiveness) obtained a multiple r value of 0.613 or 61.3%. while the r square coefficient (r2) on the dependent variable (y1) shows a value of 0.376 or 37.6% which is influenced by the independent (x1, x2, x3, x4 and x5). based on the t test x2 (shope) has a value of 0.587 or 58.7% and x3 (tokopedia) has a value of 0.309 or 30.9% the coefficient is positive and significant, which can be stated that the variables x2 (shope) and x3 (tokopedia) are effectively used as the marketplace platform in the new normal era because it affects the y1 variable (sales level effectiveness). suggestions that can be given from research on the effectiveness of role in marketplace entrepreneurial women in lamongan city as a means to increase sales in the era new normal is as follows: 1. utilizing shope and tokopedia as the marketplace platforms mainly because they are more effective in increasing the sales of women entrepreneurs in the city of lamongan. sayekti, l.i., taufik, m. 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(2021). journal of business and behavioural entrepreneurship, 5(2), 1-12. marketplace's role effectiveness in women in lamongan city as a means of increasing sales in the new normal era https://doi.org/10.21009/jobbe.005.2.01 https://doi.org/10.21009/jobbe.004.2.01 27 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 the effect of integrity, work culture, knowledge of audit techniques, and task commitment toward the performance of customs and excise auditors djaali1, maruf akbar2, karuna3 professor of graduate program of unj12, doctoral student of human resource management of unj3 email: karuna.ir@cuctoms.go.id abstract the objective of this research is to get about the effect of integrity, work culture, knowledge of audit techniques, and task commitment toward the performance of customs and excise auditors. the research was conducted using survey method with quantitative approach. the size population in this research is 210 at customs and excise auditors. research sample were selected as mush as 140 auditors using simple random sampling technique. the data obtained with questionnaires and test. the data analyzed using path analysis technique. the finding show that integrity, work culture, knowledge of audit techniques and task commitment have positive direct effect toward the performance of customs and excise auditors. integrity, work culture and knowledge of audit techniques have positive direct effect toward the task commitment. integrity and knowledge of audit techniques have positive direct effect toward work culture. keywords: performance, integrity, work culture, knowledge of audit technique, and task commitment. introduction in the era of the global economy supported by the rapid development of information technology, telecommunications and transportation today, demanding the directorate general of customs and excise (dgce) can provide fast and accountable service, while securing the interests and rights of the state from illegal practices in field of customs and excise. therefore dgce needs to develop appropriate strategies in order to optimize the task of improving service efficiency and monitoring effectiveness simultaneously. the dgce audit unit was established as one of the solutions to improve the effectiveness of supervision, without impeding the service process. it is logical because the audit is done after the clearance process (post clearance audit). the researcher raises the issue of auditor performance as the main problem in this research is based on the empirical and theoretical data (previous research result) which shows that the auditor's performance has not been optimal, especially regarding the time of audit completion, audit result, auditee's satisfaction to auditor performance, auditee compliance in pursuing audit findings, and low percentage of audit coverage ratio (acr). several previous studies related to the performance of auditors result in conclusions that support the researcher's argument for conducting research on auditor performance. the scientific work of elyawati, lisnawati and aprilla (2010: 1184) published in a journal concludes that independence, leadership style, organizational commitment and good governance understanding have a positive direct impact on the performance of government auditors. independence and understanding of good governance have a positive direct impact on task commitment. similar research conducted by djalil, indriani and dariyansah (2016: 36) and concluded that leadership style, integrity and organizational commitment have an influence on auditor performance. according to armstrong (2006: 7) "performance means both behavior and result. behavior emanate from the performer and transform performance from abstraction to action. not just the instruments for result, behaviour are also outcomes in their own right the product of mental and physical effort applied to tasks and can be judged apart from results ". performance can be interpreted as behavior and result. behavior is derived from the offender, and the performance change results from action. behavior is not only an instrument to achieve results, behavior is also 28 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 something that stands alone, including the mental and physical applied in the execution of the task, and can be judged separately from the results. covey and kerr in hooijberg, r and nancy lane (2005: 3-4) describe integrity as "honestly matching words and feelings with thoughts and actions, with no desire other than for the good of others" the honesty of the suitability of words and feelings, thoughts and actions accompanied by sincerity with no other desire than for the good of others. according to fijanut et. al in somera and holt (2015: 32) that "integrity means you will do" integrity means you will do what you say to foster an environment of openness, trust, credibility, and information sharing. according to eviletzioni (204: 11) that "work culture is the common sense that a worker brings to work. the work culture consists of the shared attitude toward work, the common beliefs about the workplace, the rituals of work, the traditions of work, the way things have always been done.” work is common sense that employees bring in work. the work culture consists of a common attitude toward work, not a belief about the workplace, but about working in general, expectations about behavior, work rituals, work traditions, ways that are always done when working. according to davenport and prusak in bartholomew (2008: 29) that "knowledge is a fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information". knowledge is a combination of experience, values, contextual information and the views of experts which is the framework for evaluating and incorporating new experiences and information. according to the bi dictionary, audit techniques are data collection techniques undertaken by auditors to obtain audit evidence. tim penyusunan modul post clearance audit pusdiklat bea dancukaithe module team „post clearance audit”, the customs and excise training center (2011: 25) defines audit techniques as the means by which the auditor can obtain proof in comparing the actual situation with the circumstances. auditing techniques according to sukrisnoagoes (2012: 147), namely the ways to obtain audit evidence (audit evidence) such as: confirmation, observation, inspection, and interview. according to dworkin (2009: 349) that "the commitment to an occupation was also conceptualized as a psychological link between a person and occupation, that was based on an affective reaction to that occupation. commitment to a job is a concept of the psychological bond between a person and his work based on an affective reaction to the job. renzuli (2002: 72) describes task commitment represents energy brought to bear on a particular problem (task ) or specific performance area. task commitment is the energy to survive on a particular problem or task or specific performance scope. purpose based on the description of the data mentioned above, and the observation and interviews of researchers at the directorate of customs and excise audit show that the lack of optimal performance of auditors due to several factors, such as auditor integrity, work culture, auditor technical knowledge and auditor commitment to the job duties. the purpose of this study is to study (1) the influence of integrity, work culture, knowledge of audit techniques and task commitment to the performance of customs and customs auditors, (2) the influence of integrity and work culture on task commitment, (3) the influence of integrity and knowledge of audit techniques on work culture. research methods the study was conducted on the auditor at the directorate of customs and excise audit, headquarter of dgce, jakarta. this research uses associative quantitative approach and survey method and path analysis technique. the population of this study were 210 auditors. the sample of the study was selected as many as 140 auditors by using simple random sampling technique. research data was collected by using the instrument in the form of questionnaires and tests developed by the researchers themselves. data analysis was performed using descriptive statistics and inferential statistics. descriptive statistical techniques used to describe the data score of each 29 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 research variable. inferential statistics using path analysis are used to explain the magnitude of the effect of exogenous variables (integrity, work culture, knowledge of audit techniques and task commitment) on endogenous variables (performance of customs and customs auditors). result and discussion description of data of research result, that is: (1) audit performance research data have smaller modus value than median and mean (modus = 81, median = 87, mean = 87.09), it means that many auditors get performance score below average score, (2) the research data of integrity has a modus value smaller than the median and mean (modus = 83, median = 84, mean = 84.74), it means that many auditors get integrity scores below the average score, (3) research data of work culture has a modus value greater than median value and mean (modus = 88, median = 86, mean = 85.02), it means that many auditors get work culture score above the average score, (4) research data of knowledge of audit technique has value of modus bigger than median value and mean (modus = 29, median = 24, mean = 23.16), it means that scores of audit technique knowledge obtained by auditors are above average, (5) the task commitment research data has a modus greater than the median and mean (modus = 85, media = 82, mean = 83.51), it means that many auditors get a commitment score above the average score. based on the analysis of inferential statistic with path analysis technique, the relationship between the variables and the summary of hypothesis testing results is presented in figure 1, and tables 1, 2 and 3. figure 1. path diagram standardized solutions table 1. summary of hypothesis test results of one structural equation model unstandardized coefficient standardized coefficient t sig. b std. error beta 1 (constant) 18.143 5.905 3.072 0.003 x1 0.271 0.079 0.264 3.433 0.001 x2 0.237 0.084 0.231 2.824 0.005 x3 0.228 0.099 0.165 2.308 0.023 x4 0.247 0.083 0.249 2.986 0.003 30 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 • dependent variable: y • the beta column is the path coefficient table 2. summary of hypothesis test results of two structural equation model unstandardized coefficient standardized coefficient t sig. b std. error beta 1 (constant) 20.777 5.864 3.543 0.001 x1 0.275 0.078 0.266 3.527 0.001 x2 0.361 0.081 0.348 4.435 0.000 x3 0.378 0.097 0.271 3.887 0.000 • dependent variable: x4 • the beta column is the path coefficient table 3. summary of hypothesis test results of three structural equations model unstandardized coefficient standardized coefficient t sig. b std. error beta 1 (constant) 34.975 5.388 6.491 .000 x1 0.477 0.071 0.478 6.704 .000 x3 0.415 0.096 0.308 4.330 .000 • dependent variable: x2 • the beta column is the path coefficient • t-tabel 1.960 (a = 0.05) and t-tabel = 2.576 (a=0.01) • if t-count <t-table, or sig. <0.05, the path coefficient is significant the result of hypothesis test 1 that measure the influence of integrity (x1) on auditor performance (y), the coefficient value of path (?y1) = 0.264 with t-count value = 3.468> t-table = 1.960 at a = 0.05, . on the basis of it can be argued that the hypothesis of research that states integrity has a direct positive effect on the auditor's performance is accepted. the results are in line with the opinions expressed by lancey a. berger and dorothy r. berger (2004: 282) which states that "accountability throughout the company, from the top down: it is critical to the integrity of the organization that its leadership team held accountable for carrying out the company's vision and meeting its goals. corporate accountability of all employees from lower to upper levels is important to make the integrity of the organization where the leadership team within the company takes responsibility and work accountably in achieving the company's vision and objectives. thus, integrity becomes an important factor in the achievement of the objectives as a measure of performance success. this means that integrity has a direct positive effect on performance. the results are also in line with the results of research djalil, indriani and dariyansah (2016: 36) stating that integrity has a direct positive effect on the performance of government auditors 31 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 the result of hypothesis test 2 that measure the influence of work culture (x2) on auditor performance (y), the coefficient value of path (?y2) = 0.231 with t-count value = 2.845> t-table = 1.960 at a = 0.05, so the path coefficient significant. based on that, it can be argued that the hypothesis of research that states work culture have a direct positive effect on the auditor's performance is accepted. the results are in line with efa (2016: 1184) study which states that work culture has a direct positive effect on the performance of teacher tasks. the result of hypothesis test 3 that measure the influence of knowledge of audit technique (x3) to auditor performance (y), the coefficient value of path (?y3) = 0.165 with t-count value (2.325)> ttable (1.960) at a = 0.05, so the path coefficient is significant. based on that, it can be argued that the research hypothesis which states knowledge audit techniques have a direct positive effect on the auditor's performance is accepted. the results of this study in accordance with the opinion chatzkel (2003: 4) states "when an organization develops its ability to build, access, and leverage its knowledge resources it is creating its knowledge advantage. it is learning how to most effectively bring to bear its know-how and know-what to yield substantial gains in performance so that it can achieve its strategic outcomes. when an organization develops an ability to build, access and retrieve its knowledge resources to gain competitiveness through its knowledge that will bring the most effective way of developing methods of how to do and do what in certain areas of a product or technology that can improve the performance of the product so that able to improve performance and achieve strategic outcome. result of hypothesis test 4 that measure the influence of task commitment (x4) to auditor performance (y), the coefficient value of path (?y1) = 0.249 with t-count value = 3.008> t-table = 1.960 at a = 0.05, so the path coefficient significant. based on that, it can be argued that the research hypothesis which states task commitment has a direct positive effect on the auditor's performance is accepted. the results are in accordance with the opinion of luthans (2011: 147) which states ”a willingness to exert high levels of effort on behalf of the organization. a definite belief in, and acceptance of, the values and goals of the organization”. commitment is the intention or willingness to exert effort to achieve higher levels on behalf of the organization. commitment is a belief and acceptance of the values and goals of the organization. the result of hypothesis test 5 that measure the influence of integrity (x1) on task commitment (x4), the coefficient value of path (?41) = 0.266 with t-count value = 3.540> t-table = 1.960 at a = 0.05, so the path coefficient significant. based on that, it can be argued that the hypothesis of research that states integrity has a direct positive effect on the task commitment is accepted. the results of this study are in the opinion of vohra (2003) in chelliah, sundarapandiyan and vinoth (2015: 13) that " the only way to generate the sincere commitment in employees is through an ideal leadership process, which is dependable, reliable, predictable, empathetic, courageous and full of character and integrity”. the only way to generate genuine employee commitment is through an ideal, dependable, credible, predictable, empathetic, courageous, character and integrity leadership process. from this desacription, it shows that the integrity of the leader is one that can form a sincere commitment for the employees of his subordinates. relevant to the statement is the integrity of the auditor may affect the auditor's commitment to the task and its work. the result of hypothesis test 6 that measure the influence of work culture (x2) on task commitment (x4), the coefficient of path (?42) = 0.348 with t-count = 4.451> ttable = 1.960 at a = 0.05, so the path coefficient significant. based on that, it can be argued that the research hypothesis stating the work culture has a direct positive effect on task commitment is accepted. the results of this study in accordance with the conclusion of the results of research efa (2016: 1184) that work culture directly positive effect on the performance of teacher duties. the result of hypothesis test 7 that measure the influence of knowledge of audit technique (x3) on task commitment (x4), the coefficient value of path (?43) = 0.271, with t-count value = 3.901> ttable = 1.960 at a = 0.05, significant path coefficients. based on that, it can be argued that the hypothesis of research that states knowledge audit techniques have a direct positive effect on task commitment is accepted. the results of the research are in accordance with cavalery and seivert's opinion (2005: 7) that "although the pragmatic knowledge strategy is a powerful one, we estimate that it is being used by less than 5% of all major corporations. however, without exception, these are elite businesses whose leaders understand the value of knowledge in a profound way, and who therefore have made long-term commitments to mastering the use of knowledge for gaining strategic competitive advantage. though it can be argued that these companies are elite in many respects (such as customer relationship management, product and process innovation, managing 32 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 quality, and strategy analysis), we propose that what differentiates these companies from their rivals is their proven capacity for knowledge leadership". although the company's knowledge management strategy is a strong pragmatic strategy but it is estimated to be used by less than 5% of all major corporations. the fact that the model of this strategy seems to be elitist, which only involves its leaders in understanding the value of knowledge in depth. the importance of this way companies make a long-term commitment to mastering knowledge management to gain strategic competitive advantage. while it may be argued that this is elitist in many aspects (eg, customer relationship management, product and process innovation, quality management, and strategy analysis), there needs to be something that differentiates the company and its competitors from capacity in leadership knowledge. the results of the study are also relevant to the results of the efa (2016: 1184) study that pedagogic competence has a direct positive effect on teacher work commitment. the result of hypothesis test 8 that measure the influence of integrity (x1) to work culture (x2), the coefficient value of path (?21) = 0.478 with t-count = 6.704> ttable = 1.960 at a = 0.05, so the path coefficient is significant .on the basis of it can be argued that the research hypothesis expressing integrity has a direct positive effect on accepted work culture. the results are in accordance with ethical guidelines published by the center for insurance institute (cii), the ethical culture building a culture, (cii professional standards board 2014) states that "rather than trying to devise incentives such that it will be in this person?s own financial interest to act ethically within every possible financial transaction, it is likely to be more effective to create an organisational culture in which professionals are encouraged to approach their work with integrity, and supported in using their own judgement, guided by conscience". instead of trying to design an incentive model to encourage employees to be ethical in the work of financial transactions so as to give rise to their interests and financial interests, it may be more effective to create a professional work culture that drives their work with an integrity approach and is supported using their own guided judgment conscience. integrity is believed to create a credible working culture. the result of hypothesis 9 test that measures the influence of knowledge of audit technique (x3) on work culture (x2), the coefficient value of path ( ?23) = 0.308 with t-count = 4.330> t-table = 1.960 at a = 0.05, so the path coefficient is significant. based on that, it can be argued that the hypothesis of research that states knowledge audit techniques have a direct positive effect on accepted work culture. the research results are relevant to keesing's opinions in robert s weyer, chi-yue chiu, and yingyi hong (2009: 80), that keesing (1981) has characterized culture as a shared system of competence consisting of people’s “theory of what [their] fellows know, believe and mean, of the code being followed, the game being played” (p. 58). thus, a culture lies at least in part in people?s common understandings and beliefs about it. keesing states that culture has characteristics as a shared system of competence covering the theory of a group of people concerning knowledge, beliefs, meanings, codes of conduct, and ways of working. thus the culture lies in the general understanding and beliefs of a group of people. the key words of keesing's statement above is that culture is a system of knowledge and belief of an individual or organization that is practiced in work activities. that is, knowledge is one of the cultural elements. conclusions based on the results of research on auditors at the directorate of customs and excise audit dgce, summarized as follows: (1) integrity has a direct positive effect on the performance of auditors, which means auditor with high integrity, will result in improved performance of customs and excise auditors, (2) work culture have direct positive effect to the performance of customs auditor auditors, it means that a healthy auditor work culture will lead to an increase in the performance of customs and excise auditors, (3)knowledge audit techniques have a direct positive effect on the performance of customs and excise auditors, which means high audit techniques knowledge will lead to improved performance of customs and excise auditors, (4) task commitment has a direct positive effect on the performance of customs and excise auditors, it means that high auditor commitment to job duty will result in improved performance of customs and excise auditors, (5) integrity positively affects the task commitment, it means that auditor with high integrity will result in increased auditor commitment to job duties, (6) work culture has a direct positive effect on task commitment, meaning that a healthy auditor work culture will result in increased auditor commitment to job duties, (7) knowledge of audit techniques has a direct 33 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 positive effect on task commitment, which means that high audit technique knowledge will result in increased auditor commitment to job duties, (8) integrity has a direct positive effect on work culture, which means that high auditor integrity will result in auditor's work culture getting healthier and more positive, (9) knowledge audit techniques have a direct positive effect on work culture, which means that high audit technique knowledge will result in auditor's work culture more healthy and positive. referring to the conclusion of the research, the researcher gives recommendation as follows: (1) units that manage djbc human resources (hr) to make efforts to improve the integrity of auditors, by: (a) the requirements as an auditor to meet a high integrity qualification, at least get a score of 3 from a scale of 4 according to the results of the soft competency assessment, (b) conduct periodical guidance to the auditor in order to always display consistent, honest, firm, law-abiding, and obedient behavior on moral values, (c) give reward and punishment consistently in accordance with its contribution to dgce; (2) the unit that manages djbc's human resources to strengthen the work culture in a way a) socialize and internalize the values of the ministry of finance to auditors on an ongoing basis, (b) conduct capacity building activities for auditors on a regular basis, with the theme of building the basic attitude of good dgce employees; 3) the unit that manages djbc's human resources to continually improve audit technique knowledge for auditors by: (a) the requirements as an auditor to meet the qualification of audit technique knowledge, at least get a score of 2 of scale 4 according to the technical assessment, (b) undertake formal and informal training, workshops and / or other activities, with materials relating to the effective and efficient implementation of customs and excise audit duties, c) give auditors an audit assignment regularly with more varied types of auditees; (4) audit unit dgce to conduct periodic monitoring and evaluation on auditor's behavior and performance, as input for career development of auditors. bibliography agoes, sukrisno. auditing: petunjukpraktispemeriksaanakuntanolehakuntanpublik. jakarta :salembaempat, 2012 armstrong, michael. performance management: key strategies and practical guidelines. london: kogan page, 2006. bartholomew, david. building on knowledge: developing expertise, creativity and intellectual capital in the construction profession. usa: blackwell publishing ltd. isbn: 978-1-40514709-5, 2008. chatzkel, jay l.knowledge capital: how knowledge-based enterprises really get built. london: oxford university press, 2003. cavalery, steven dan sharon seivert. the knowledge leadership : art and science of the knowledge based organization. london: kmci elsevier, 2005 dworkin, anthony gary. international handbook of research on teachers and teaching. new york : springer, 2009. djalil, muslim a., mirna indrianidanfirmandariansah. the influence of leadership style, integrity and organizational commitment on the performance of state development audit agency (bpkp) at bpkp representative office of aceh province, indonesia. research journal of finance and accounting, vol 7, no. 24, 2016. https://www.researchgate.net/publication/312589428 (diakses 22 mei 2016). efa. the effect of work culture, pedagogic competence and work commitment toward task performance teacher vocational high school bandar lampung. jurnalilmiah educational management vol. 7 no. 1 desember 2016. http://pps.unj.ac.id/journal/jiem/article/download/208/197 hooijberg, robert dan nancy lane “leader effectiveness and integrity; wishful thinking”, https: //www.imd.org/research/publications/upload/hooijberg_lane_wp_2005 _1_level_1.pdf (diakses 4 mei 2016). luthans, fred. organization behavior. new york: mcgrawhill, 2011. letzioni, evi. work culture transformation. munchen: k.g.saur verlag lmbh, 2004. 34 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.03 renzulli, joseph s. gifted and talented behavior and educations: a special issue of exceptionally. london: lawrence erlbaum associates, 2002. somera, keya., m. kenneth holt. “integrity in business: an evaluation of integrity across german and american culture”, international journal of business and social science vol. 6, no. 2; february 2015austin peay state universityclarksville, tn 37044. sukrisnoagoes. auditing: petunjukpraktispemeriksaanakuntanolehakuntan public. the chartered insurance institute. ethical culture: building a culture. cii professional standards board, 2014. wati, elya, lismawatidannilaaprilla, pengaruhindepedensi, gaya kepemimpinan, komitmenorganisasidanpemahaman good governance terhadapkinerja auditor pemerintah (studipada auditor pemerintah di bpkp perwakilan bengkulu). pusat data economist &bisnis, 2010. http://pdeb.fe.ui.ac.id/?p=5269 (diakses 20 agustus 2016). 33 the effect of product quality and service quality on repurchase intention with customer satisfaction as a mediation variables (case study on cv. prima anugerah sejati) fath arief mukti universitas negeri jakarta corresponding author email: fathariefmukti91@yahoo.co.id budi santoso universitas negeri jakarta agung dharmawan buchdadi universitas negeri jakarta abstract this study aims to analyze the effect of product quality and service quality on repurchase intention with customer satisfaction as a mediating variable (a case study on the printing of cv. prima anugerah sejati). as for customers of cv. prima anugerah sejati who fill out the questionnaire are customers who have visited and used the services of cv. prima anugerah sejati more than once with a total sample of 180 respondents. the method of data analysis in this study used the structural equation modeling (sem) method. the results of the research show that 1) product quality has a positive and significant effect on customer satisfaction, 2) service quality has a positive and significant effect on customer satisfaction, 3) customer satisfaction is able to significantly mediate the effect of product quality on repurchase intention, 4) service quality is able to mediate significant influence of product quality on repurchase intention, and 5) customer satisfaction has a positive and significant effect on repurchase intention. keywords: repurchase intention, customer satisfaction, product quality, service quality received: 9 february 2021 ; accepted: 10 april 2023 ; published: june 2023. mailto:fathariefmukti91@yahoo.co.id 34 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. how to cite: mukti, f.a., et.al. (2023). the effect of product quality and service quality on repurchase intention with customer satisfaction as a mediation variables (case study on cv. prima anugerah sejati). journal of business and behavioural entrepreneurship, 7(1), 33-44. https://doi.org/10.21009/jobbe.007.1.03 introduction printing is a technology or art that produces copies of an image very quickly, such as words or images on paper, cloth, and other surfaces, while publishing is an industry that concentrates on producing and reproducing literature and information that can be of public interest. cv. prima anugerah sejati is a printing company that was founded in 2012. engaged in printing services, as well as providing consultation as a form of professionalism and services to consumers to increase customer satisfaction. this is done in order to compete with other similar businesses and attract customers to print. the high competition in the printing business is also experienced in bekasi city where there are many printing companies as follows. table 1 data on the number of creative industries in publishing and printing in bekasi city in 2019 no sector amount percentage 1 printing 457 65,10 2 publishing 245 34,90 total 702 100% based on table 1 above, it can be seen that the percentage of printing in bekasi city is 65.10% with 457 printing presses, and publishing is 34.90% with 245 publishers. this clearly shows that the competition in the printing industry is big. kotler and keller (2016) explain that satisfaction is characterized by a sense of pleasure, and vice versa if a customer is disappointed it can be said that the customer is not satisfied. in addition, the number of complaining customers also indicates that these customers are not satisfied. therefore, customer complaints can be used as a tool to measure how much satisfaction is. based on the reviews in the suggestion box there are several complaints as follows: table 2 data on customer complaints cv. prima anugerah sejati 2019 no customer complain amount 1 print results are not good and the quality is not as expected (there are blots / shadows on the image, cutting is not neat) 16 2 the speed in waiting for the order that has been ordered is quite long, not as promised 12 35 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. 3 the waiter does not really respond to consumer complaints such as complaints of printed results on the grounds of the design & no guarantee 7 4 service is not good, does not know 3s and is careless 26 5 printers are often damaged which causes printing to be delayed 6 total 67 based on the complaint data above, it is known that the product quality and service quality provided are the main complaints of customers. this is a concern of cv. prima anugerah sejati to increase customer satisfaction so that it has an impact on increasing repurchase intention. customers who make repurchase intention will make the company more sustainable for a long time (kotler and armstrong, 2014). according to kotler and keller (2016), customer satisfaction is one of the main determinants of achieving company goals, has a major influence on customer retention. previous research conducted by lagita and vita (2018), dewi and wayan (2019), devi and eka (2018) and rahmawati, et al (2018) shows that customer satisfaction has a significant effect on repurchase intention. previous research conducted by palma and anik (2016) and saidani and samsul (2012) shows that customer satisfaction can mediate the effect of product quality on repurchase intention. furthermore, previous research conducted by raihana and putu (2018) and fadhila and diansyah (2018) showed that customer satisfaction can mediate the influence of service quality on repurchase intention. literature review repurchase intention according to tjiptono and chandra (2016: 30) repurchase intention is defined as a consumer commitment that is formed after a consumer purchases a product or service. this is caused by a positive impression of consumers on a brand, such as consumers feeling satisfied with the goods or services they purchased. according to ali (2013: 31) repurchase intention is a purchase interest that is based on the purchase experience that has been made in the past. based on the description above, the researcher concludes that repurchase intention is a process of integrating consumers in buying goods or services that are used to meet their daily needs. buying behavior arises because it is preceded by an interest in buying, one of which is due to the perception that the product is of good quality. so buying interest can be observed since before the buying behavior arises from consumers. customer satisfaction according to kotler and keller (2016: 138) customer satisfaction is a feeling of pleasure or disappointment for someone that arises from comparing the perceived performance of the product (or results) against their expectations. if performance fails to meet expectations, customers will be dissatisfied. if the performance is as expected, the customer will be satisfied. if performance exceeds expectations, customers will be very satisfied or happy. according to rangkuti (2013: 7) customer satisfaction is a post 36 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. purchase evaluation, where the alternatives purchased are at least equal to or exceed customer expectations. sudaryono (2016: 78) explains that a satisfactory biased product or service is a money product or service capable of providing something that consumers are looking for to a sufficient level. based on the description above, the researcher can conclude that customer satisfaction is the level of a person's feelings after comparing the performance or results he feels compared to his expectations. product quality the definition of product quality according to kotler and keller (2016: 4) defines product quality as something that can be offered to the market to satisfy a desire or need, including physical goods, services, experiences, events, people, places, properties, organizations, information and ideas. . product quality is one of the best positioning marketing tools. product quality has a direct impact on products and services and is most closely related to customer value and satisfaction (kotler and armstrong, 2014: 242). based on the theory above, that high product quality causes companies to reduce error rates or reduce waste on products. a product that has quality is a product that can meet the needs and desires of consumers and can even exceed what consumers expect. service quality according to kotler and keller (2016: 143) service quality is all forms of activities carried out by companies to meet consumer expectations. service in this case is defined as a service or service delivered by the service owner in the form of ease, speed, relationship, ability, and hospitality addressed through attitudes and characteristics in providing services for consumer satisfaction. this opinion is in line with malik et al (2012: 125) which states that service quality is an opinion about what consumers feel about the whole that the company provides to customers. based on the theories about service quality above, it can be concluded that service quality is an action taken by the company in the form of things that are intangible but can be felt. if the service received or felt is in accordance with consumer expectations, then the quality received or felt is in accordance with consumer expectations, then the service quality is perceived as ideal quality, but on the contrary if the service received or perceived is lower than expected. research hyphothesis hypothesis 1: there is a positive and significant effect of product quality on customer satisfaction printing cv. prima anugerah sejati hypothesis 2: there is a positive and significant effect of service quality on customer satisfaction printing cv. prima anugerah sejati hypothesis 3: there is a positive and significant effect of product quality on repurchase intention with job satisfaction as a mediation variable at printing cv. prima anugerah sejati 37 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. hypothesis 4: there is a positive and significant effect of service quality on repurchase intention with job satisfaction as a mediation variable at printing cv. prima anugerah sejati hypothesis 5: there is a positive and significant effect of customer satisfaction on repurchase intention at printing cv. prima anugerah sejati based on the formulation of the hypotheses that have been described, the conceptual framework of the research can be described as follows: h1 h3 h5 h2 h4 figure 1. research model research method the research will be conducted at the cv. prima anugerah sejati with a population of 372 in december 2020. ferdinand (2014: 48) suggests that sample size guidelines depend on the number of indicators used in all latent variables, the sample size is the number of indicators multiplied by 5 to 10. this study uses 36 indicators, so that by using an estimate based on the number of indicators, the sample size is around 180 respondents. in this study, data analysis used was validity test, rehabilitation test and hypothesis testing using sem-pls on 4 (four) variables. results and discussion data testing results validity test an indicator is declared valid if the measurement of the loading factor is above 0.70 so that if there is a loading factor below 0.70 it will be dropped from the model (ghozali, 2014). validity testing for reflective indicators uses a correlation between item scores and construct scores. measurements with reflective indicators indicate a change in product quality (x1) service quality (x2) customer satisfaction (z) repurchase intention (y) 38 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. an indicator in a construct if other indicators of the same construct change (or are removed from the model). table 3 loading factor values repurchase intention customer satisfaction product quality service quality r i 1 0 . 8 8 8 k p 1 0 . 8 5 7 q p 1 0 . 8 9 2 q s 1 0 . 8 8 2 r i 2 0 . 9 5 2 k p 2 0 . 8 8 6 q p 2 0 . 8 8 7 q s 2 0 . 8 9 0 r i 3 0 . 8 9 9 k p 3 0 . 8 9 5 q p 3 0 . 8 8 4 q s 3 0 . 8 9 5 r i 4 0 . 9 2 4 k p 4 0 . 8 7 3 q p 4 0 . 8 8 8 q s 4 0 . 8 9 2 r i 5 0 . 8 9 0 k p 5 0 . 8 7 9 q p 5 0 . 9 0 0 q s 5 0 . 9 0 8 r i 6 0 . 9 3 2 k p 6 0 . 8 7 2 q p 6 0 . 9 0 4 q s 6 0 . 9 1 2 r i 7 0 . 8 9 6 k p 7 0 . 8 9 6 q p 7 0 . 8 9 9 q s 7 0 . 9 1 5 r i 8 0 . 8 7 5 k p 8 0 . 9 0 0 q p 8 0 . 9 1 7 q s 8 0 . 8 9 6 k p 9 0 . 8 9 3 q s 9 0 . 9 2 8 k p 0 . 8 q s 0 . 9 39 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. 1 0 9 4 1 0 2 1 based on table 3, it can be seen that all indicators are valid. this is because several indicators have been eliminated with a loading factor value below 0.70 (ghozali, 2014). in addition to seeing the value of loading factors, convergent validity can also be assessed by looking at the average variance extracted (ave) value. table 4 convergent validity (ave) test results construct (ave) information repurchase intention 0.823 valid customer satisfaction 0.783 valid product quality 0.804 valid service quality 0.817 valid the results of the convergent validity construct test in table 4 above, it can be seen that each construct has met the criteria with the average variance extracted (ave) value having a value above 0.50 (ghozali, 2014). reliability test the reliability test was carried out to prove the accuracy, consistency and accuracy of the instrument in measuring construction (ghozali, 2014). reliability test is carried out using the composite reliability and cronbach's alpha tests by looking at all latent variable values that have a composite reliability value or cronbachs alpha ≥ 0.7, it can be concluded that the construct has good reliability or the questionnaire used as a tool in this study is reliable or consistent. table 5 reliability test results construct cronbach's alpha composite reliability information repurchase intention 0.969 0.973 reliabel customer satisfaction 0.975 0.978 reliabel product quality 0.965 0.970 reliabel service quality 0.969 0.974 reliabel table 5 shows that the results of the composite reliability test show that all latent variable values have a composite reliability value ≥ 0.7. and the results of cronbach's alpha test also show that all latent variable values have a cronbach's alpha value ≥ 0.7. from these results, it can be concluded that the construct has good reliability or that the questionnaire used as a tool in this research has been reliable or consistent. hyphothesis testing t-statistic (bootsrapping) is used to see the significance value between constructs. hair et al. (2014) suggest performing a bootstrapping procedure with a re-sample value of 5,000. the limit for rejecting and accepting the proposed hypothesis is ± 1.96, which 40 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. if the t-statistic value is in the range of -1.96 and 1.96 then the hypothesis will be rejected or in other words, accept the null hypothesis (h0). table 6 hypothesis test results original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) pvalues product quality → customer satisfaction 0.272 0.272 0.081 3.365 0.001 service quality → customer satisfaction 0.721 0.721 0.080 8.999 0.000 customer satisfaction → repurchase intention 0.305 0.305 0.086 3.259 0.020 product quality → customer satisfaction → repurchase intention 0.359 0.361 0.069 5.217 0.000 service quality → customer satisfaction → repurchase intention 0.638 0.636 0.068 9.328 0.000 discussion effect of product quality on customer satisfaction the results showed that product quality had a positive and significant effect on customer satisfaction. this shows that if the quality of the product offered is getting better, then customer satisfaction will increase. in order to compete and develop, companies are required to be able to provide quality products in order to meet customer needs and desires. from this description, it can be concluded that products and services that do not meet quality will very easily be abandoned by customers and switch to other competitors (agustina, 2019: 38-49). to avoid this, of course, will prioritize product expansion and product quality oriented towards purchasing decisions. according to kotler and keller (2016: 144) "satisfaction depends on the quality of the company's products, because if the higher the level of product quality, the higher the resulting consumer satisfaction. 41 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. the results of this study are in line with previous research conducted by saidani and samsul (2019) and palma and anik (2016) which show that product quality has a positive and significant effect on customer satisfaction. effect of service quality on customer satisfaction the results showed that service quality has a positive and significant effect on customer satisfaction. this shows that if the quality of service provided is getting better, then customer satisfaction will increase. service quality has a very close relationship with customer satisfaction, that is, quality provides an impetus to customers to undergo a strong relationship with the company. in the long term this kind of bonding allows the company to thoroughly understand customer expectations and their needs. thus, companies can increase customer satisfaction, which in turn customer satisfaction can create customer loyalty or loyalty to companies that provide satisfactory quality (nilasari and istiatin, 2015: 7). the results of this study are in line with previous research conducted by arifki and fullchis (2018) and maramis, et al (2018) which show that service quality has a positive and significant effect on customer satisfaction. the effect of product quality on repurchase intention with customer satisfaction as a mediation variable the results showed that customer satisfaction was able to significantly mediate the influence of product quality on repurchase intention. this shows that customer satisfaction is a factor that can significantly increase the influence of product quality on repurchase intention. product quality plays an important role in affecting customer satisfaction. if the quality of the product produced is good, consumers will feel satisfied and will make a repurchase intention. conversely, if the product quality is not as expected, consumers will divert their purchases to other similar products. product quality is considered as a consumer's understanding of the overall quality or advantages of a product in relation to predetermined goals (kartika & lestari, 2018: 249). product quality is a characteristic of a company where customers will feel satisfied when making a purchase or consuming it (lestari & yulianto, 2018: 74). when a customer is satisfied with the product he purchased, the customer will generate a repurchase intention. the results of this study are in line with previous research conducted by palma and anik (2016) and saidani and samsul (2012) which show that customer satisfaction is able to significantly mediate the effect of product quality on repurchase intention. effect of service quality on repurchase intention with customer satisfaction as a mediation variable the results showed that customer satisfaction was able to significantly mediate the influence of service quality on repurchase intention. this shows that customer satisfaction is a factor that can significantly increase the influence of service quality on repurchase intention. good quality service is less likely for customers to complain to the company. so that the costs incurred by the company for maintenance are also reduced and have 42 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. implications for repurchasing (tjiptono, 2016: 169). before service quality can affect repurchase, a quality service that is said to be good will first satisfy customers. customer satisfaction also has the potential to provide a number of specific benefits, including the potential to be a source of income in the future, especially buying back (tjiptono, 2016: 170). the results of this study are in line with previous research conducted by fadhila and diansyah (2018) and raihana and putu (2018) which show that customer satisfaction is able to significantly mediate the effect of service quality on repurchase intention. the effect of customer satisfaction on repurchase intention the results of this study indicate that customer satisfaction has a positive and significant effect on repurchase intention. this shows that if customer satisfaction is increasing, then repurchase intention will increase. consumers who have an interest in buying back or repurchase intention play a very important role in the development of a brand from a company (rahmawati, et al, 2018: 294). according to teresia (2013: 6) repurchase intention is a consumer's decision to repurchase a certain product or service by considering the possible results that will occur and is influenced by the level of preference for the product. repurchasing of customers is the most important goal for the success of the company, because to generate new customers requires a greater cost than the cost of maintaining existing customers. as a result, companies focus more on maintaining existing customers or fostering customer repurchase interest rather than focusing on acquiring new customers (belopa, 2015: 662). consumers will feel satisfied if the products or services produced by the company are able to meet their needs and expectations, and vice versa. consumers who experience satisfaction after using a product or service have the possibility not to change their choice by not looking for other brand alternatives for their next purchase (rahmawati, et al, 2018: 295). the results of this study are in line with previous research conducted by devi and eka (2018) and dewi and wayan (2019) which show that customer satisfaction has a positive and significant effect on repurchase intention. conclusion based on the research results, it is known that product quality has a positive and significant effect on customer satisfaction, service quality has a positive and significant effect on customer satisfaction, customer satisfaction is able to significantly mediate the influence of product quality on repurchase intention, service quality is able to mediate the influence of product quality on repurchase intention significantly. significant. this shows that cv customer satisfaction and customer satisfaction have a positive and significant effect on repurchase intention. recommendation it is recommended that cv. prima anugerah sejati is able to improve the quality of prints, especially on the color accuracy requested by customers. this can be done by conducting consultation sessions with customers regarding their needs for the products to 43 mukti, f.a., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 33-44. be printed so that the products produced are able to provide satisfaction for customers and create the desire to make repurchases. in addition, it is recommended that cv. prima anugerah sejati is able to improve the quality of service, especially in relation to a more comfortable waiting room. the waiting room is related to physical evidence or the physical appearance of the cv building. prima anugerah sejati. this will add to the brand image of cv. prima anugerah sejati and attract customers to visit the company again. for further research, other variables can be used to test their effect on repurchase intention such as word of mouth, brand image and others. references arifki, a.f dan nurtjahjani, f. (2018). “pengaruh kualitas produk dan kualitas pelayanan terhadap kepuasan konsumen di alfabeth store pasuruan”. jurnal aplikasi bisnis, 4(1): 281-285. devi, p.s dan sulistyawati, e. 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(2014). a primer on partial least squares structural equation modeling, sage, thousand oaks, ca. kartika, s.j dan anik l. (2018). “pengaruh kualitas produk, kemudahan dan harga terhadap niat beli ulang dengan kepuasan sebagai variabel intervening (studi pada pelanggan jilbab rabbani di surabaya timur)”. jurnal ilmu manajemen, 6(3): 249. kotler, p and kevin k. (2016). marketing managemen. 15th edition. new jersey: pearson education,inc. kotler, p dan amstrong, g. (2014). principles of marketing. 12th edition. jilid 1. terjemahan bob sabran jakarta : erlangga. lagita, l dan briliana, v. (2018). “pengaruh customer satisfaction, adjusted expectation, perceived value, dan perceived usefullness terhadap online repurchase intention pada pelanggan lazada”. jurnal wira ekonomi mikroskil, 8(1): 37-48. lestari, a dan yulianto, e. 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(2016). kepuasan pelanggan. edisi 4. yogyakarta: andi. 81 abstract this study aims to analyze and discuss the effect of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation at regency / city inspectorates in north sulawesi province. this research is a quantitative study, using a survey method with a causal approach, with data analysis techniques using structural equation modeling (sem) analysis. research respondents are 200 employees at the district / city inspectorate in north sulawesi province. the results of this study indicate that 1) transformational leadership has a direct and positive effect on employee innovation. the better the leadership at the regional inspectorate adopts the transfrormational leadership style, the better the innovator will be at the regional inspectorate. 2) integrity has a direct and positive effect on employee innovation. the more integrity with government internal control apparatus regional inspectorate, the better will be innovations in the field of supervision. 3) organizational citizenship behavior (ocb) has a direct and positive effect on employee innovation. the better the organizational citizenship behavior (ocb) of the government internal control apparatus regional inspectorates, the innovations of the government internal control apparatus in the field of supervision will also increase. 4) transformational leadership has a direct and positive effect on organizational citizenship behavior (ocb). the better the leadership at the regional inspectorate adopts the transformational leadership style, the more it increases organizational citizenship behavior (ocb) from the government internal control apparatus. 5) employee integrity has a direct and positive effect on organizational citizenship behavior (ocb). the more integrated the government internal control apparatus regional inspectorate, the better the organizational citizenship behavior (ocb) of the government internal control apparatus. 6) transformational leadership has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb). 7) employee integrity has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb). keywords: : transformational leadership, integrity, organizational citizenship behavior (ocb), innovation. received: 8 february 2020; accepted: 8 april 2020; publish; june 2020. how to cite: hadi, p., hamidah., & saerang, d.p. (2020). the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province. journal of business and behavioural entrepreneurship, 4(1), 81-90. https:// doi.org/10.21009/jobbe.004.1.06 the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province praseno hadi universitas negeri jakarta email: prasenohadi_im10s3@mahasiswa.unj.ac.id hamidah universitas negeri jakarta email: hamidah@unj.ac.id david paul saerang universitas sam ratulangi email: d_saerang@unsrat.ac.id 82 introduction inspectorate institutions especially in regencies/cities really need employees who have the ability to innovate. regency/city inspectorate institution has the main task of supervising the implementation of regency/city regional government. if in carrying out this task the employee does not have adequate innovation and competence in accordance with his role and function, the existence of the institution will be 'barren'. this has become a phenomenon in the community that tends to 'distrust' the regency / city inspectorate agency. based on the results of the pre-survey regarding the influence of transformational leadership, the following data are obtained: the average value of respondents' answers, namely 2.4 or answer disagreed, the initial conclusion was found that leaders generally do not have charisma in leading, not fully able to inspire employees, do not have the ability to intellectual stimulation of employees and have not been able to provide personal attention, please workers, train and advise employees. according to bass and avolio in hakim (2012) revealed that transformational leadership is one important dimension in effective leadership which is also the strongest predictor of leadership outcomes, such as the extra effort of subordinates to the organization, satisfaction with leaders, and assessment subordinate to leadership skills. the results of the next pre survey regarding integrity obtained the following data: the average value of the respondent's answer is 2.4 or answer disagreed, so the initial conclusion was found that not all the apparatus in the inspectorate adhere to the principles in carrying out supervisory duties, as well as the behavior of the apparatus who carry out supervisory duties do not all have honorable and honest behavior. for courage, not all apparatuses are brave in taking firm actions at the time of the assignment. furthermore, not all apparatuses in carrying out supervisory tasks are carried out based on belief in their knowledge and sometimes in carrying out the duties of the apparatus are still following emotions in the sense of not acting rationally. for the ocb variable, the average value of the respondent's answer is 2.4 or answer disagreed, the initial conclusion found that in dealing with problems the leadership has not given confidence to subordinates in solving the problems encountered regarding task completion, compliance with state civil service regulations is still lacking , tolerance of the state civil apparatus to changes in the organization is not good enough, the state civil apparatus has not been able to avoid conflicts that occur within the organization, concern among fellow colleagues is still quite low, the state civil apparatus is also not able to fully implement virtues in the organization and have not been fully able to apply good manners, and not yet fully able to provide assistance to fellow colleagues. according to al-mahasneh (2015) showed that the ocb factors have an impact on job performance. this means that the perception of employees toward ocb has a positive and significant influence on employees performance. the ocb factors have an impact on work volume ,on work quality ,employee-colleagues relationship as a dependent variable and on employee-higher level relationships. the results of the pre-survey further concern employee innovation, data obtained the average value of respondents' answers that is 2.4 or answer disagree, then the initial conclusion was found that the leadership has not been able to provide support so that subordinates are able to create ideas / programs, implement ideas / programs in the organization and also evaluating ideas / programs. cooperation between leaders and subordinates has also not been well established as well as the commitment of the state civil apparatus for the successful achievement of the organization's vision and mission is still not strong. for individual psychological capital, one of which is hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 83 seen from the ability to find solutions to long-term problems, it is found that not all state civil apparatuses have the ability to find solutions to long-term problems. the atmosphere of organizational innovation is also not good because harmony in the work environment is not good so it has not been able to support the improvement of the work of the civil service. based on the facts above, the researcher is interested in conducting research on: "the effect of transformational leadership, employee integrity, and organizational citizenship behavior (ocb) on employee innovation at the district / city inspectorate in north sulawesi province". literature review employee innovation innovation is one aspect that influences the development of an organization. some organizations both private sector and public sector organizations such as government organizations are trying to find innovations. innovation according to said (2007: 27) is interpreted as a planned change by introducing technology and the use of new equipment within the scope of agencies. innovation has an understanding that is not only limited to building and updating but can also be broadly defined, utilizing new ideas creating products, processes, and services (susanto, 2010: 158). transformational leadership transformational leadership according to robbins (2015: 63) is leadership that gives appreciation and intellectual stimulation that is individualized and has charisma. transformational leadership is often interpreted as true leadership because this leadership really works towards goals at the organizational level to a goal that has never been achieved before. transformational leadership is built on top of transactional leadership so that it can produce a level of effort and performance of subordinates that goes beyond what happens with just a transactional approach. integrity according to mulyadi (2008: 145) integrity is the ability of people to realize what has been said or promised by that person into a reality. arens et al (2008: 99), integrity means that someone acts according to their conscience, in any situation. integrity is the concept of consistency in actions, values, methods, steps, principles, expectations and results that connotes a deep commitment to doing the right thing for the right reasons, regardless of the circumstances. organizational citizenship behavior bateman and organ are the figures who first used the term ocb, namely in 1983. the definition of ocb is beneficial behavior carried out by employees, free from the provisions or obligations with the aim of helping others in achieving organizational goals (garg and rastogi, 2006: 573). research method this research is a quantitative study, using a survey method with a causal approach, with data analysis techniques using structural equation modeling (sem) analysis. this analysis is used to examine the interrelationship between research variables, as well as measuring the effect of three exogenous variables on one endogenous variahadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 84 ble, namely: the direct influence of transformational leadership (x1), employee integrity (x2) and organizational citizenship behavior (ocb) (x3) on employee innovation (y) . the constellation of research can be described as follows: results and discussions structural model: testing hypotheses the structural model contains the path analysis which is the basis for proving hypotheses that have been prepared previously. table 1. regression coefficient source: processed data estimate label x3 <- x2 .753 par_13 x3 <- x1 .374 par_15 y <- x3 .429 par_12 y <- x2 .364 par_14 y <- x1 .278 par_16 hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 85 for the regression coefficient : 1. transformational leadership (x1) has a regression coefficient of 0.278 for employee innovation (y), meaning that the higher or better the transformational leadership, the higher or better employee innovation and vice versa. 2. integrity (x2) has a regression coefficient of 0.364 for employee innovation (y), meaning that the higher or better the employee integrity, the higher or better employee innovation and vice versa. 3. organizational citizenship behavior (ocb) (x3) has a regression coefficient of 0.429 on employee innovation (y), meaning that the higher or better organizational citizenship behavior (ocb), the higher or better employee innovation (y) and vice versa. 4. transformational leadership (x1) has a regression coefficient of 0.374 against organizational citizenship behavior (ocb) (x3), meaning that the higher or better transformational leadership (x1), the higher or better organizational citizenship behavior (ocb) (x3) and vice versa. 5. integrity (x2) has a regression coefficient of 0.753 against organizational citizenship behavior (ocb) (x3), meaning that the higher or better the integrity, the higher or better organizational citizenship behavior (ocb) (x3) and vice versa. table 2. structural model or path analysis (hypothesis testing) source: processed data for hypothesis testing : hypothesis 1. transformational leadership (x1) has a direct and positive effect on employee innovation (y), as evidenced by having a probability level below 5% (0,000) and a positive direction. hypothesis 2. integrity (x2) has a direct and positive effect on employee innovation (y). proven because it has a probability level under 5% (0,000) and a positive direction hypothesis 3. integrity (x2) has a direct and positive effect on employee innovation (y). proven because it has a probability level under 5% (0,000) and a positive direction hypothesis 4. transformational leadership (x1) has a direct and positive effect on organizational citizenship behavior (ocb) (x3). proven because it has a probability level under 5% (0.00) and positive direction hypothesis 5. employee integrity (x2) has a direct and positive effect on organizational citizenship behavior (ocb) (x3) as it is proven to have a probability level below 5% (0.00) and a positive direction. estimate s.e. c.r. p label x3 <--x2 .753 .103 7.324 *** par_13 x3 <--x1 .374 .091 4.112 *** par_15 y <--x3 .429 .107 4.008 *** par_12 y <--x2 .364 .110 3.309 *** par_14 y <--x1 .278 .084 3.330 *** par_16 hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 86 table. 3 indirect effect source: processed data indirect the biggest effect in this research model was contributed by employee integrity (x2) on employee innovation (y) of 0.323. for hypotheses involving indirect elements, they use several stages of analysis because there must be significant requirements on each direct path to be tested for their indirect relationships. and for the arguments summarized in the table below : table 4. relationship test discussion based on the results of testing statistical research hypotheses. the research findings are explained descriptively and verification, which are then compared with the theories and results of previous studies. hypothesis 1 transformational leadership has a direct and positive effect on employee innovation . the results showed that the first hypothesis was accepted. transformational leadership (x1) has a direct and positive effect on employee innovation (y), as evidenced by having a probability level below 5% (0,000) and a positive direction. the results of the study prove empirically that transformational leadership influences employee innovation. the results of research that prove that transformational leadership influences employee innovation is research conducted by pratama (2015: 13). the results of his research that 1) transformational leadership has a positive and x2 x1 x3 y x3 .000 .000 .000 .000 y .323 .160 .000 .000 hypothesis tested must be a significant direct relationship 1 must be a significant direct relationship 2 must be a significant direct relationship 3 the value and direction of the indirect relationship conclusion hypothesis 6. transformational leadership has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb). transformational leadership towards innovation: finding: significant transformational leadership towards organizational citizenship behavior (ocb).: findings: significant organizational citizenship behavior (ocb) towards innovation: findings: significant 0.160 and positive be accepted hipotesis 7. employee integrity has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb). employee integritiy towards innovation: findings: significant employee integrity towards organizational citizenship behavior (ocb).: findings: significant organizational citizenship behavior (ocb) towards innovation:: findings: significant 0.323 dan positive be accepted hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 87 significant influence on innovative behavior directly, 2) organizational climate is proven as a variable that fully mediates the effect of transformational leadership on innovative behavior. hypothesis 2 integrity directly and positively influences employee innovation. the results showed that the second hypothesis was accepted. integrity (x2) has a direct and positive effect on employee innovation (y), as evidenced by having a probability level below 5% (0,000) and a positive direction. the results of research from gunayanthi (2015: 193) suggest that integrity has a positive effect on auditor performance. this shows that when the auditor's integrity is higher, this will improve the quality of the audit and will further improve the auditor's performance itself. one of the intended performance of auditors is how the auditor is able to innovate in producing quality audit results. continuously improve professional skills, effectiveness, and quality of supervision. in order for the auditor's performance to improve automatically the audiorial behavior must reveal: 1) have the initiative and a strong will to learn without being instructed or not waiting; 2) willing to follow a training program organized by his institution or other agency; and 3) always learning new knowledge and technology that is directly or indirectly related to the workload and innovating work methods and methods in accordance with the changing times. hypothesis 3 organizational citizenship behavior (ocb) has a direct and positive effect on employee innovation. the results showed that the third hypothesis was accepted. organizational citizenship behavior (ocb) (x3) has a direct and positive effect on employee innovation (y), proven because it has a probability level below 5% (0,000) and a positive direction. the results of the study prove empirically that organizational citizenship behavior (ocb) affects employee innovation. according to logahan et al (2014: 396) that innovative behavior increases when there is ocb implementation in a company. the benefits of organizational citizenship behavior (ocb) are very great for organizations, including the following, according to organ (2006: 199): 1) ocb can increase the productivity of coworkers; 2) ocb is also able to increase manager productivity; 3) ocb can save resources owned by management and the organization as a whole; 4) ocb becomes an effective means to effectively coordinate work team activities; 5) ocb improves the organization's ability to recruit and retain employees with good quality performance; 6) ocb can maintain organizational performance stability; 7) ocb helps the organization's ability to survive and adapt to changing environments. hypothesis 4, transformational leadership (x1) has a direct and positive effect on organizational citizenship behavior (ocb) (x3). the results showed that the fourth hypothesis was accepted. transformational leadership (x1) has a direct and positive effect on organizational citizenship behavior (ocb) (x3). proven because it has a probability level under 5% (0.00) and positive direction. the results of the study prove empirically that transformational leadership influences organizational citizenship behavior (ocb). gunawan (2016: 60) argues that leadership is one that can influence ocb behavior because without effective leadership from a leader, a company will experience a setback. each leader basically has a different behavior in leading or often referred to as a leadership style. the leadership style that is carried out by a leader in influencing the behavior of others according to hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 88 his desires is influenced by the nature of the leader himself. employees have leaders who serve as directors for these employees to act in accordance with company goals. one of the leadership styles that are suitable today is the transformational leadership style. in a broad sense, leadership can be used by everyone and is not only limited in force in a particular organization or office. leadership is an activity to influence the behavior of others, or the art of influencing human behavior both individuals and groups. leadership does not have to be limited by bureaucratic rules or karma. leadership does not have to be bound in a particular organization, but leadership can happen anywhere as long as someone shows his ability to influence others towards the achievement of a certain goal (thoha, 2004: 9). hypothesis 5 employee integrity (x2) has a direct and positive effect on organizational citizenship behavior (ocb) (x3). the results showed that the fifth hypothesis was accepted. employee integrity (x2) has a direct and positive effect on organizational citizenship behavior (ocb) (x3) as it is proven to have a probability level below 5% (0.00) and a positive direction. the results of the study prove empirically that employee integrity influences organizational citizenship behavior (ocb). research conducted by husodo (2018: 1) that organizational culture is culture where he is like values (these values include responsibility, integrity, can adapt to the environment and work situations, fair treatment, and friendliness), beliefs, and social or community behavior which then produces social culture or community culture influences organizational citizenship behavior (ocb). hypothesis 6 transformational leadership (x1) has an indirect and positive effect on employee innovation (y) through organizational citizenship behavior (ocb) (x3). the results showed that the sixth hypothesis was accepted. transformational leadership (x1) has an indirect and positive effect on employee innovation (y) through organizational citizenship behavior (ocb) (x3) proven. the results of this study are in line with research conducted by sekar et al (2017: 3161) that transformational leadership has a positive and significant effect on organizational citizenship behavior. transformational leadership is a factor that influences the attitudes, perceptions and behavior of employees to then be used as motivation in improving ocb. organizational citizenship behavior (ocb) contributes to the organization in the form of increasing colleague productivity, increasing manager productivity, saving resources owned by management and the organization as a whole, helping to maintain group functions, being effective in coordinating work group activities, increasing organizational capability to attract and retain the best employees, improve the stability of the work of the organization, improve the ability of the organization to adapt to changing environments (podsakoff and mackenzie in kelana, 2009: 60). jahangir (in yusrin, 2014) argues that leadership style has a strong influence on the willingness of employees to be involved in ocb. leaders who have creativity, innovation, and high flexibility will have a positive impact on transformational leadership. in addition, leaders must also inspire and motivate their subordinates to work better and prioritize organizational interests rather than personal interests. ocb and employee innovation have a close relationship. according to logahan et al (2014: 397) that innovative behavior (innovative behavior) is one of the behaviors hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 89 that affect ocb. innovative behavior is defined as overall individual actions that lead to the emergence, recognition and application of something new and beneficial at all levels of the organization. hypothesis 7 employee integrity (x2) has an indirect and positive effect on employee innovation (y) through organizational citizenship behavior (ocb) (x3). the results showed that the seventh hypothesis was accepted. employee integrity (x2) has an indirect and positive effect on employee innovation (y) through organizational citizenship behavior (ocb) (x3) proven. the results of research from rahayu (2017: 49) that integrity has a direct positive effect on organizational citizenship behavior (ocb). integrity is consistency between values and actions. people with integrity will act consistently in line with values, code of ethics, and organizational and / or professional policies, even in difficult circumstances to do so. integrity is also defined as a personality that is based on an honest, courageous, wise, and responsible element to build trust in order to provide a basis for reliable decision making. when linked to a code of ethics, integrity is defined as consistent action, in accordance with organizational policies and codes of ethics. conceptually, integrity and ethical values clearly have a positive influence on organizations and individuals. conclusion and recommendation based on the results of research and discussion in the previous chapter, it can be concluded several things, namely, 1) transformational leadership directly and positively influences employee innovation. the better the leadership at the regional inspectorate adopts the transfrormational leadership style, the better the innovator will be at the regional inspectorate, 2) integrity has a direct and positive effect on employee innovation. the more integrity with apip regional inspectorate, the better will be innovations in the field of supervision, 3) organizational citizenship behavior (ocb) has a direct and positive effect on employee innovation. the better the organizational citizenship behavior (ocb) of the apip regional inspectorates, the innovations of the apip in the field of supervision will also increase, 4) transformational leadership directly and positively influences organizational citizenship behavior (ocb). the better the leadership at the regional inspectorate adopts the transformational leadership style, the more it increases organizational citizenship behavior (ocb) from the apip, 5) employee integrity has a direct and positive effect on organizational citizenship behavior (ocb). the more integrated the apip regional inspectorate, the better the organizational citizenship behavior (ocb) of the apip, 6) transformational leadership has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb),7) employee integrity has an indirect and positive effect on employee innovation through organizational citizenship behavior (ocb). references arens, a. a. elder, randal, j dan beasley, marks s. 2008. auditing dan jasa assurance. jilid 1. edisi keduabelas. jakarta : erlangga. garg, p. and r. rastogi. 2006. new model of job design: motivating employees' performance. journal of management development, 25(6), doi 10.1108/02621810610670137. gunayanthi, a. 2015. pengaruh integritas, obyektivitas, kerahasiaan dan kompetensi pada kinerja auditor inspektorat kota denpasar. e-jurnal akuntansi unihadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 90 versitas udayana. gunawan, r., 2016. pengaruh kepemimpinan transformasional terhadap organizational citizenship behavior(ocb) pada pt first marchinery tradeco cabang surabaya. agoravol. 4, no. 1, (2016). p : 66. husodo, y. r. p.. 2018. pengaruh budaya organisasi terhadap organizational citizenship behavior (ocb) dengan kepuasan kerja sebagai variabel intervening pada pt jatim indo lestari.agora vol. 6, no. 1, (2018). kelana, ludy. 2000. pengaruh kepuasan kerja dan komitmen organisasi terhadap organizational citizenship behavior (ocb). sinergi, kajian bisnis dan manajemen, 11(1):5975. logahan, j. m., indrajaya, a. dan proborini, a. w. 2014. analisis pengaruh perilaku inovatif dan self – esteem terhadap organizational citizenship behavior di pt. stannia binekajasa. binus business review vol. 5 no. 1 mei 2014. mulyadi. 2008. sistem akuntansi. jakarta: salemba empat. organ, d. w., p. m. podsakoff, dan scott b. mackenzie. 2006. organizational citizenship behavior, its nature, antecendents, and consequences. california: sage publications, inc. pratama, a. 2015. pengaruh kepemimpinan transformasional terhadap perilaku inovatif karyawan dengan iklim organisasi sebagai variabel mediasi (studi pada pemerintah kota mataram). program studi magister manajemen program pasca sarjana universitas atma jaya yogyakarta. rahayu. e. s., 2017. pengaruh budaya kerja, integritas dan kepercayaan terhadap organizational citizenship behavior pada dosen universitas negeri jakarta. ecnosains volume xv hal : 36-54. robbins, s. 2015. organizational behavior, 9 th edition. new jersey: precentice hall international inc. said, m. m. 2007. birokrasi di negara birokratis. malang: umm press. sekar, n. k. a, a.a s. k. dewi, dan k. ardana. 2017. pengaruh kepemimpinan transformasional dan komunikasi terhadap organizational citizenship behavior di hotel inna grand bali beach. e-jurnal manajemen unud, vol. 6, no. 6, 2017: 3139-3167. susanto. 2010. 60 management gems. jakarta: kompas. thoha, m. 2004. perilaku organisasi, jakarta: pt. raja grafindo persada. yusrin, k. 2014. hubungan antara kepemimpinan transformasional dengan organizational citizenship behavior (ocb) di universitas muhammadiyah surakarta (ums). fakultas psikologi. universitas muhammadiyah surakarta. hadi, p., hamidah., & saerang, d.p. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (81-90)  the influence of transformational leadership and employee integrity through organizational citizenship behavior (ocb) on employee innovation in regency / city inspectorates in north sulawesi province  https://doi.org/10.21009/jobbe.004.1.06 99 abstract managers face various challenges and difficulties at work, especially in dealing with changes. the adverse events can be compounded when personal problems also put additional pressure on the manager. the compassionate leader can function to alleviate the stress. this study shows how leading with compassion, where leaders are sensitive to problems, feeling those difficulties, and are motivated to help. by referring to the positive organization literature, aspects, and processes of compassion in organizations are disclosed. likewise, how compassionate leaders increase the attention and understanding, empathize with the needs of managers and their future are also explained. furthermore, leaders can also be present in the various policies that they create. this study is useful for making leadership effective, especially in managing organizational change. keywords: leading, compassion, organizational change received: 16 november 2021 ; accepted: 21 december 2021 ; publish: december 2021 how to cite: amir, m.t. (2021). leading with compassion in times of changes. journal of business and behavioural entrepreneurship, 5(2), 99-107. https://doi.org/10.21009/ jobbe.005.2.12 leading with compassion in times of changes muhammad taufiq amir universitas bakrie email: taufiq.amir@bakrie.ac.id https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 100 introduction running a successful business organization, namely making the business survive and grow, is always full of challenges. in order to succeed, employees must work hard and implement the right strategy. however, this endeavor and the right strategy do not guarantee an organization's success because many things or factors are beyond the employee's control. it is not uncommon for these factors to be disruptive, unpredictable. all this results in challenges and difficulties. apart from originating from external factors, which are relatively difficult to control, employee difficulties also arise from internal factors. these internal factors can generally be divided based on work-related such as heavy loads, inadequate facilities, or because other resources are limited (crawford et al., 2010). internal factors are also in the form of a poor relationship with superiors, colleagues, or subordinates. employee problems and difficulties are increased when personal issues are inevitably brought to the office. having a leader who can reduce or eliminate employee suffering and problems is very important, so it is only natural that academics and practitioners discuss a compassionate leader. compassion is formulated as a condition of attention to pain or needs that have not been met by others and at the same time a desire to reduce that suffering (goetz et al., 2010). compassion has a lot to do with being sympathetic, kind, gentle, warm, caring, or loving. leading with compassion is how a person thinks, feels, and acts when facing employees' difficulties (dutton, kristin, et al., 2014; lilius et al., 2012). a compassionate leader is someone aware of a difficult situation in others, feels the difficulty, and assesses the need or is moved to help. the application of compassion in organizations cannot be separated from positive psychology development in an organizational context (kanov et al., 2004). various formulations have been put forward related to compassion, and often like two different things; as motivation, as well as a primary trait, or as a character that can be developed (goetz & simon-thomas, 2017). motivation appears with a particular stimulus, such as vulnerability, unnecessary suffering, or unmet needs, and various other sufferings. some see it more as motivation, the urge to care for, protect, and perhaps fulfill basic needs. in the process, the compassionate person suppresses personal interest, gives attention, and sometimes faces challenges. researchers are also interested in understanding whether compassion experiences necessarily generate motivation to help people. some of the questions you want to find out are what facilitates and hinders compassion motivation. does this experience lead to motivation to help others, what is a facilitator and barrier to motivation? can this motivation make other people motivated by the same thing? when compassion is considered a necessary trait, it means someone who repeatedly appears, as a personal value. the habits of thinking and the motivational components that influence a person's general likelihood of experiencing compassion. people who become sensitive, for example, to certain situations. long childhood experiences such as warmth and coaching from parents and the close relationship obtained from caregivers are also decisive (goetz & simon-thomas, 2017). leaders have an important role because their messages and actions have an impact. especially in times of stress, organizations need leaders who carry hope with their vision and also to manage frustration and anxiety. several studies demonstrate the benefits of compassion in organizational contexts; help restore employees or organizations from trauma (vanette et al., 2006), creare a positive climat that is important for performance (james & wooten, 2011), build mutual trust, motivation and relationships amir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 101 (stephens et al., 2013) or even benefits for customers (simpson et al., 2014). although many have researched leadership with useful traits, it is still rare to say that deepening the abilities and skills related to suffering and compassion are still rare. in his speech at the management academy in 2012, tsui (2013) encouraged practitioners and academics to explore compassion further, because its relevance to the corporate world is very high. this article examines the aspects associated with compassionate leadership. leaders who can interpret the conditions of the difficulties around them are sensitive to the challenges and will then act to solve the problems. the compassion process model in organizations is discussed in the following subsections. after that, the process is further detailed by linking to leadership roles. the final section discusses the elements of acting from the compassion leader, both direct and in the form of policies or regulations. results and discussions compassion process in organizations one reasonably comprehensive model describing compassion in an organizational context is from dutton et al. (2014). in this model, compassion is considered as a process in an organization that is related to paying attention, interpreting, and understanding someone's suffering. this process affects feelings and motivation and actions taken in response to that suffering. in their follow-up study, worline and dutton (2014) added a social aspect so that the formula is a social process rather than just individual emotions. compassion is characterized as a four-part process; 1). care for suffering, 2). understanding suffering, 3) feeling empathic, and 4) taking action to reduce suffering. the following sections elaborate on this compassion process. attention & understanding attention the problem of leaders' attention to employees, especially attention to difficulties, is central in compassion. doing so demanding job, facing complicated issues, or is being required a high quality of work, leaders have the potential to neglect to pay attention to the suffering around them. study chapman and sisodia (2015), found that in america, 88% of employees, or about 130 million people, come home from work feeling that they work for companies that don't listen to them. this data shows that there is indeed something wrong with concern for employees, and of course, partly a matter of difficulty. in fact, a successful leader makes his company progress is a leader who touches the problems faced by his employees, including their problems. busyness, pressure, and focus on other matters of a more material nature, such as achieving specific goals, will obscure the attention and understanding of the employee's difficult situation. fiske (1993) found that superiors who have a high position and status tend to pay less attention to the nuances that occur to those around them and more rely on stereotypes rather than more meaningful information. stress and serious challenges can make someone's attention to human aspects, and other people psychologically less. with the disruption of one’s attentions, goleman (2009) suggests leaders inamir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 102 crease the ability to focus so that concentration is also increased. one of them is understanding the brain's mechanism of paying attention so that leaders or employees also need to be aware of related disturbances. inattention, emotions are essential, because our attention is very much determined by feelings. the distraction of emotion, ruminating, i.e., thinking about a problem repeatedly instead of imagining a solution, is much more distracting to paying attention. when a person can overcome his emotional distress, such as, then he can also increase attention, and in time to understand the difficulties. on the other hand, expressing difficulties is also not necessarily easy for employees. various factors play a role in preventing a person from expressing their problems. for example, concerns that arise due to role expectations or professionalism. because of certain targets or norms, a person feels inappropriate to admit the difficulties he is facing. personal concerns are also an obstacle because it requires a close relationship and interaction techniques (dutton, workman, et al., 2014). the leadership context also plays a role when the atmosphere is less open, and leaders fail to create a flexible and safe psychological climate for employees to convey their problems (atkins & parker, 2012). the mechanism for giving attention, as explained above, cannot be separated from the process of understanding, in which there is meaning. understanding and meaning are what makes the compassion process turn to feelings and empathy to then proceed to action. different interpretations will produce different feelings. leaders have the potential to form a collective meaning or suffering, which ultimately leads to empathy. empathy empathy can be the main component in compassion and is the beginning of the motivation to act to reduce difficulties. as part of the compassion process, various researchers also formulated empathy. baston (2017) says that empathy encompasses a concept related to the process by which a person understands, shares, or feels moved by a person's physical or emotional condition. there are also those who think that empathy is divided into two; cognitive empathy; when people accurately understand other people's perspectives, try to understand their feelings and thoughts; and affective empathy or emotional empathy, where people feel what other people think. this can happen by imitating someone for something that is physically visible. this discussion is inseparable from the term "contagious emotions" (boyatzis & soler, 2012). organizational studies on the emotional aspects of culture by barsde & o'neill (2014) show that "the culture of companisonate love," which shows concern, warmth, and love for employees, plays an important role in the success of work culture. in short, empathy is related to being sensitive to other people's feelings in response to their expressions and understanding what other people feel and why. empathy is more about feeling things; pride, anger, grief, or joy. on the other hand, compassion is more specific about suffering and sorrow. empathy also recognizes that there is an urge to act, whereas compassion has an element of wanting to do things that reduce the suffering of others. empathy is often associated with emotionally oriented people, such as feeling thoughts, imagining thoughts, and feelings (batson & ahmad, 2009). amir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 103 empathy may have something to do with a person’s personality (batson, 2017). life experiences, childhood, environment that affect the basic pattern of a person. but it also means that the problem, atmosphere, or organizational climate can be an essential context in empathy. when the prevailing climate is an independent attitude, relying heavily on independence, rather than interdependence and helping each other, compassion is difficult to come. more criticism is present when difficulties are exposed. apart from personality, the context of the situation also plays a role in the presence of empathy. when the environment is not supportive, a person's personality tendency to empathize can get hindered. studies on abusive behavior in the workplace, for example, show that when rudeness, harsh criticism, and embarrassment characterize a leader, compassion goes further (porath & pearson, 2013). leaders need to create a context that facilitates empathetic concern so that, in the end, it allows for motivation to help. present and future needs a compassionate leader is not only concerned with "present" needs but also to shadows future needs. future needs are related to the elements of a person's growth, and in this, leadership should stand out. this is relevant to the phrase "good leaders give birth to new leaders." boyatzis (2006) who developed the intentional needs theory, recently showed compassion as part of a leadership model, which he called "resonant leadership” (boyatzis, smith, van oosten, et al., 2013). recently, with the support of neuroscience boyatzis and his colleagues again offered to coach with compassion. in the context of coaching, compassion, according to boyatzis et al.(2013) a is an interpersonal process that pays attention to the needs of others, empathizes with, and acts to improve their well-being in response to these needs. and this is an important part of coaching with compassion. compassion here is not just a hardship in the present, but because of evolving needs and the future. the point is coaching with sincerity and care, which focuses on others, provides support and encouragement, and facilitates the discovery and achievement of one's dreams and passions (boyatzis et al., 2019). coaching with a compassion approach focuses on awakening someone's ideal, initiating, and guiding someone in this process. the ideal figure is a vision, what a person's goal is to become, the values and deepest aspirations for the future (boyatzis, 2008). leaders who practice this approach emphasize the strengths of the moment while still considering existing weaknesses. coaching, in this way, builds a trusting relationship that creates a comfortable atmosphere to discuss hopes and dreams more openly and comfortably with new thoughts and behaviors. the element of acting compassionate leaders usually have access to resources and authority so that they can do two things in acting on compassion. first, behave directly when interacting with employees who are suffering and need help. second, building a context for the surrounding environment, through various policies that facilitate attention and emphasize the creation of the meaning of compassion, and also create an atmosphere for people to be more empathetic, and actions that reduce suffering (worline & dutton, 2017). these two things are expected to be able to color, becoming a "dominant ingredient" for thinking patterns and acting in organizations. the interaction of superiors and employees is not amir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 104 seen about individual and hierarchical matters, but rather how it can increase attention, understanding, and compassion action. in carrying out these two elements of action, the resources involved can vary. it could be material such as money and other goods; it could be psychological resources or an idea. the activities of giving, receiving, and witnessing a compassionate action process can generate new resources with a strong emotional closeness and commitment within the organization (bushe, 2013; lilius et al., 2008). the following section will discuss action strategies that are extracted from worline and dutton (2017). presence with expression and action in addition to paying attention and helping people around who are always interacting, a leader also needs to show his presence in moments of difficulty. when someone is grieving, for example, there is a disaster or a family member is sick or dies, a leader shows his presence. as discussed above, suffering or hardship can come from work: failure to meet targets, demands for change, violence, assault, violence, and aggression or abuse from employees, customers, or even suppliers. also demands for growth, as well as joint dysfunction (porath & pearson, 2013). or other inevitable things outside of work such as loss, pressure, or accidents. because the sources of suffering are many, creating a space for employees to express their pain builds trust, authenticity, and a sense of caring. apart from showing an immediate presence, this can also be done through other communication channels such as telephone or social media messages. his presence to show compassion via social media was demonstrated by a director of a state-owned enterprise in the field of plantations based in jakarta. he is used to delivering grief messages, both for the difficulties experienced by his subordinates, colleagues, and even partners. this action shows that he pays attention, emphasizes togetherness, and ignores differences in status. actions and expressions like this show the leader's behavior is the manifestation of the organization providing room for various things openly, including for things that are suffering. more than just paying attention, the company can certainly be further involved, such as providing condolence money when an employee's family member dies. in articles or video media about businesses that are becoming popular, they explain this. for example, the case of jeff weirner, ceo at linkedin, when he paid attention to employees who were expatriates of his company so that their immigration problems were smooth and prepared, assisted, and facilitated (weiner, 2012). by acting directly with compassion, a leader will be a model for his employees. becoming a model in acting, especially when prioritizing resolution of employee difficult situations, in line with the concept of serving leadership, namely placing priorities and showing empathic action on employee problems (liden et al., 2014) acting through policy organizations with many employees or geographically separated leaders find it difficult to interact directly with their employees. in situations like these, however, leaders have limitations to function as models of compassionate behavior. it can act through the design of policies that ensure structurally, and resources can be directed to facilitate compassionate action. the resulting policies are required to make employees amir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 105 feel safe, supported, and feel facilitated (worline & dutton, 2017). the case of the facebook company can be an example of an application worthy of consideration to show the concern of company management. this company changed the norm, providing 20 days of leave for employees who mourn a family member (miller, 2019). another company, cascade engineering is known for its recruitment activities that also feature compassion. one that is quite successful is the "welfare-tocareer track" program, where they manage a special program to recruit and manage employees who come from the poor (gerrish & samber, 2017). other policies, employee placement, employee development, retirement are also carried out with a similar approach. in short, the functions related to hr management play a very close role, and this can relate to the strategic needs of the company because leaders have access and control over resources, time, money, and connections. in fact, for everyday matters such as making decisions, compassion can also be considered. in various decision-making processes, a leader has the opportunity to explicitly show his concern for the suffering of employees. in the study of lilius, kanov et.al. (2012), show examples where leaders pay attention to the suffering of colleagues by using collective decision-making processes related to workloads. how leaders bring attention to daily problems and difficulties, interact with existing units and discuss which parties need attention and assistance, and how to allocate them properly. by doing the things above, the leader also serves as a model for compassion action. conclusion the leader of an organization plays a very broad role in shaping the way employees think and act, including compassion. compassion is the process of how a person understands, pays attention to, feels, and helps others who are struggling and have needs. it is not only present needs that can be met, but also includes future needs. leaders have a role in every stage of the compassion process. starting from the process of understanding because it requires meaning, to becoming a model when he acts directly. this action will be generative, as well as the impetus for other employees to act, think, and act compassionately. to have a broader impact, a leader can create policies that are supportive of a more compassionate climate. both policies related to hr management can show a leader, and also the company offers its presence, is involved, facilitates, and facilitates all related difficulties. in time, with direct action or through policy, companies can benefit from a compassionate leader, such as high productivity, a sense of belonging as well as closeness and trust between leaders and employees. references atkins, p. w. b., & parker, s. k. 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(2017). how leaders shape compassion processes in organizations. in e. m. seppälä, e. simon-thomas, s. l. brown, m. c. worline, c. d. cameron, & d. doty (eds.), the oxford handbook of compassion science (pp. 1–39). the oxford university press. https://doi.org/10.1093/ oxfordhb/9780190464684.013.31 amir, m.t. (2021). journal of business and behavioural entrepreneurship, 5(2), 99-107 leading with compassion in times of changes. https://doi.org/10.21009/jobbe.005.2.12 https://doi.org/10.21009/jobbe.004.2.01 118 abstract nowadays, employee engagement is a major concern for organizational leaders around the world. human resources (hr) is a key element of a company that will support effective and efficient organizational governance (christian et al., 2021). however, not all employees have the same level of engagement, factors that can affect employee commitment such as motivation, job satisfaction, leadership, diversity of co-workers, organizational culture, and others (vinsensius et al., 2019). this study aims to analyze: (1) the magnitude of the influence of servant leadership on employee engagement, (2) the magnitude of the influence of employee compensation on employee engagement, (3) the magnitude of the influence of servant leadership on employee job satisfaction, (4) the magnitude of the effect of employee compensation on employee engagement. employee job satisfaction, and (5) the magnitude of the influence of employee job satisfaction on employee engagement at pt indonesia power suralaya power generation unit. the novelty (originality or value) of this research is that servant leadership has no effect on employee engagement and employee compensation has no effect on employee job satisfaction. the limitations of this study are only to get an idea of the perceptions of employees of pt indonesia power suralaya power generation unit regarding servant leadership, employee compensation, employee job satisfaction and employee engagement. the population in this study are employees of pt indonesia power suralaya power generation unit which is located at jalan raya pltu suralaya, cilegon, banten. the research method is quantitative using a questionnaire with a likert scale and the sampling technique is done by simple random sampling. the number of samples used as many as 32 samples to test the hypothesis. structural equation modeling was used to test the statistical significance of the path coefficients, and processed using the pls smart 3.2.9 program. the results showed that servant leadership and employee compensation affected job satisfaction by 64.9%, while employee engagement was influenced by 86.8%. this direct effect shows that servant leadership has no effect on employee engagement, employee compensation has a positive and significant effect on employee engagement, servant leadership has a positive and significant effect on employee job satisfaction, employee compensation has no effect on employee job satisfaction, and employee job satisfaction has a positive effect. and significant to employee engagement. keywords: servant leadership; employee compensatio; employee job satisfaction; employee engagement received: 18 november 2021 ; accepted: 21 december 2021 ; publish: december 2021 how to cite: christianto, r.d.p. (2021). the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit. journal of business and behavioural entrepreneurship, 5(2), 118-128. https://doi.org/10.21009/ jobbe.005.2.14 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit reinardus dwi prio christianto master of management, postgraduate program, university of sultan ageng tirtayasa email: reinardus.dwi@gmail.com https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 119 introduction nowadays, employee engagement is a major concern for organizational leaders around the world. human resources (hr) is a key element of a company that will support effective and efficient organizational governance (christian et al ., 2021). however, not all employees have the same level of engagement, factors that can affect employee commitment such as motivation, job satisfaction, leadership, diversity of co-workers, organizational culture, and others (vinsensius et al ., 2019). servant leadership has a positive and significant influence on employee engagement and employee satisfaction (irene huertas-valdivia et al ., 2019; okechukwu e. amah, 2018; rami al-asadi et al ., 2019 and shiva ilkhanizadeh et al., 2018). one of the leadership roles needed in an organization is its ability to create conditions for employee engagement to develop. servant leadership (sousa & dierendonck, 2015:9) has the potential to create the conditions in question. this is because servant leadership is oriented to the needs and development of each of its followers by providing proactive support, namely in the creation of a work environment that also supports each individual to grow (kaur, 2018: 7). this support communicates to employees that the organization through its leaders cares and stimulates employee development through their work. compensation according to (hasibuan, 2017:118) is all income in the form of money or goods directly or indirectly received by employees in return for services provided to the company. employees have good compensation is the company's way to achieve optimal company goals. with good compensation, these employees can bind themselves in a company. compensation has a positive and significant effect on employee engagement and job satisfaction (dinar & ngadino, 2018; putut wibowo, 2018; septerina & rusda, 2018 and ni made nadya & i gede riana, 2017). job satisfaction itself has a positive and significant influence on employee engagement (niko sudibjo et al ., 2020 and swati dhir et al ., 2019). hr is one of the important factors in the development of a company/ organization. therefore, hr must be managed properly to increase effectiveness and efficiency in achieving organizational goals. employee engagement has become a major challenge globally. hence, it is becoming increasingly important for organizations to attract, engage, develop and build loyalty among their employees to gain a competitive edge in today's global marketplace. pt indonesia power is a subsidiary of pt pln (persero) which was established on october 3, 1995 under the name pt pln pembangkitan jawa bali i (pt pjb i). on october 8, 2000, pt pjb i changed its name to pt indonesia power as an affirmation of the company's goal to become a purely business-oriented independent power generation company. the company's main business activities currently focus on being a provider of electricity through power generation and as a service provider for the operation and maintenance of power plants that operate power plants spread across indonesia. pt indonesia power suralaya power generation unit (pgu) located on the western tip of java island, banten province manages 7 units of steam power plant (pltu) that use coal as its main fuel. with a total installed capacity of 3400 mw, suralaya pgu is the largest unit in indonesia owned by pt indonesia power. christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 120 figure 1. employee engagement index chart 2019 – 2021 pt. indonesia power suralaya pgu source: pt indonesia power suralaya pgu culture, gcg and hr planning division (2021) based on data obtained from the culture, gcg, and hr planning division of pt indonesia power suralaya pgu, the employee engagement index has decreased in scores from 2019 to 2021 at every level of position, both at the executive, supervisor and executive levels. this is due to an inadequate work environment due to the lack of management and maintenance of working relationships between employees and company management as well as employees and employees involving handling organizational justice, employee communication, working conditions, and problems arising from work. therefore, the role of leadership towards employees, internal relations between employees, and quality training are needed to increase employee engagement which will have an impact on productivity and maintain the survival of the company. this study aims to analyze the effect of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit (pgu). literature review servant leadership servant leadership was first stated by robert k. greenleaf in 1970. the characteristics of servant leadership behavior grow from the values and beliefs of individuals. personal values such as fairness and integrity are independent variables that drive the behavior of servant leaders (smith in ken blanchard & renee broadwell, 2019). greenleaf argues that servant leaders can affect productivity in real organizational situations. according to greenleaf in ken blanchard & renee broadwell, 2019, defining a servant leader is someone who becomes a servant first. it starts with the natural feeling that someone who wants to be served, must first serve. then conscious choice brings someone to lead. a clear difference in the emphasis that serve first, to ensure the interests of others is a priority to be served. servant leadership is a leadership style that is very concerned about the growth and dynamics of the lives of followers, themselves and their communities. starting from the natural feeling of wanting to serve. therechristianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 121 fore, he prioritizes service over the achievement of his personal ambitions and passions. a servant leader is the behavior of a leader who has a strong desire to serve and lead his members, and is able to combine the two as mutually reinforcing things in a positive way. the servant leadership indicators proposed by dennis and bocarnea in a.paramita, 2016, are compassion, empowerment, vision, humility, and trust. compassion ( love ) is leadership that loves with love or affection. love means doing the right thing at the right time for the best reasons and decisions. empowerment (empowerment) is the emphasis on the cooperation that entrust power to others, and listen to the advice of followers. furthermore, the vision is the future direction of the organization that will be brought by a leader. vision will inspire action and help shape the future. humility (humility) is to maintain humility by showing respect for employees and recognizes the employer's contribution to the team. the last is trust, where servant leaders are chosen people who are chosen based on an advantage that causes the leader to gain trust. employee compensation compensation is all remuneration received by an employee for services rendered or the results to an organization or company. rewards can be in the form of money or goods, either directly or indirectly given by an organization to workers or service workers at the organization or company (arif et al ., 2019). compensation is everything that is received by the employee in return for his work or something that is a cash contribution received by the employee as a substitute for his services to the company (daulay, 2017). according to acheampong in timoti hendro (2018), compensation must be distributed according to the contributions given to the company in the form of bonuses, subsidies and welfare must be included in the pay system. according to hasibuan (2016, p.117), compensation is something that is received by workers as compensation for their work. some compensation indicators according to theory (armansyah et al ., 2018: 237) are as follows: 1. wages. payment of remuneration for employee contributions to the company for the responsibility of their position. 2. incentive. payments to employees for achieving employee work performance that improve the quality of employees. 3. bonus. paying employees for contributions to their work. 4. allowance. payments given by the company that should be obtained by workers. employee job satisfaction basically job satisfaction is the impact of the implementation of the work. according to sopiah (2008), job satisfaction is an emotional expression that is positive or pleasant as a result of an assessment of a job or work experience because a worker not only does the work that has been given, but also needs to interact with fellow coworkers and superiors. , following organizational regulations, achieving work performance standards, and so on (robbins & judge, 2015, p.102). according to salminen et al., (2017), the concept of job satisfaction refers to a state in which employees feel pleasure in their work. the level of job satisfaction is influenced by various variables related to individual, social, cultural, organizational and environmental factors (mullins and christy, 2016). situational factors such as suchristianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 122 pervision, co-workers, promotions, salary and the job it self is an important factor in employee job satisfaction. in particular, satisfaction with one's own work is considered an important factor indicating job satisfaction as a whole (judge and kammeyer mueller, 2012). according to luthans in fanny & sintya admaja, 2017, the factors that cause job satisfaction are: 1. work it self, the feeling of an employee will be happy and satisfied if his abilities match the job required. 2. pay, is estimated to be equivalent or not to the work done. 3. promotion, whether there is an opportunity to get a career advancement while working in an organization. 4. supervision, a leader is very important for employees because he is considered a role model and pays attention to his subordinates. 5. co-workers, relations between employees and their superiors or other department employees will fill the social needs of these employees. employee engagement employee engagement are those who are psychologically present physically and mentally, feel the workplace atmosphere, are connected to work and workplace, blend with work and workplace, and focus on completing the roles assigned by the organization and high performance at work (kahn in kahn, 2008). agung nugroho & noora fithriana, 2018). employee engagement is a positive feeling, serious outwardly and inwardly, work is done with vigor, dedication, and absorption. vigor is defined as a strong desire to expel big and strong energy in achieving organizational goals. dedication is being fully involved in one job. absorption is being involved in one job and when you are involved you feel that time passes quickly” (schaufel et al., in agung nugroho & noora fithriana, 2018). according to anitha (2014), there are three types of people: employees who are bound, employees who are not bound, and employees who are not actively engaged. engaged employees are builders who consistently seek to deliver excellence in their roles. unbound employees focus on the tasks assigned to them rather than the goals of the organization. they do what they are told to do. employees who are not actively engaged are dangerous individuals who not only do not perform well but also demotivate actors in the organization. the above description of the concept of engagement illustrates that an engaged employee is intellectually and emotionally attached to the organization, feels passionate about its goals and is committed to living by its values. the indicators used in this study were enthusiasm, enthusiasm, full concentration, proactiveness and quick response (chen et al., 2017). framework the framework of thought in this research thoroughly describes the relationship between independent variables, dependent variables and intervening variables in this study. in this study, the independent variable is the servant leadership variable and employee compensation, the dependent variable is the employee engagement variable and the intervening variable is job satisfaction based on the theoretical description described above and the hypothesis that has been explained based on the theoretical basis and the findings of previous researchers. in this study are as follows: christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 123 figure 2. conceptual research data processed (2021) based on the chart above, it can be seen that the researcher is looking for the relationship of several variables, in this study there were five hypotheses made by the researcher to be tested, the picture above explains the relationship between the servant leadership variable and employee engagement which becomes h1, the relationship between employee compensation variables and engagement employees become h2, the relationship between variables of servant leadership and employee job satisfaction becomes h3, the relationship between variables of employee compensation and employee job satisfaction becomes h4 and the relationship between variables of employee job satisfaction and employee engagement becomes h5. hypothesis development based on the description that has been explained in the framework of thought and previous research, the researcher can draw temporary conclusions or hypotheses, namely: h 1 : the more leaders serve, the employees at pt indonesia power suralaya pgu will be more attached. h 2 : the better the employee compensation, the more bound employees at pt indonesia power suralaya pgu will be h 3 : the more leaders serve, the job satisfaction of employees at pt indonesia power suralaya pgu will be higher h 4 : the better the employee compensation, the higher the job satisfaction of employees at pt indonesia power suralaya pgu h 5 : the higher the job satisfaction of employees, the employees at pt indonesia power suralaya pgu will be more bound christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 124 research methods this study uses quantitative methods to analyze the effect of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable. the data in this study were obtained from primary data. data was collected by means of a survey through the distribution of questionnaires. the data collection technique was done by simple random sampling . a total of 32 samples were accepted and 32 samples were declared valid to be used to test the five (5) established hypotheses. all items were measured using a likert scale of 1 (strongly disagree) to 10 (strongly agree). the model used in this study is the structural equation model (sem) using the help of smartpls 3.2.9 in data processing. results and discussions measurement model evaluation before testing the hypothesis, it is necessary to test the validity to show how well an instrument technique or process measures a concept. in this study, the validity test was carried out by looking at the values of convergent validity and discriminant validity. this validity test is used to test the measuring instrument used in this study, namely measuring the questionnaire used in this study. in addition to looking at the value of the outer loading, convergent validity can also be seen from the value of the average variance extracted (ave) which must be greater than 0.50 (ghozali & latan., 2015:74). in this model, the ave value of each variable is above 0.50 as shown in the following table: table 2. average variance extracted (ave) source: smartpls 3.29 output processed, 2021 reliability test results after doing the validity test, then the next is the reliability test. this reliability test was conducted to prove the accuracy, consistency and accuracy of the instrument in measuring variables. to measure the reliability of variables, it can be done in two ways, namely by cronbach's alpha and composite reliability or what is often called dillon goldstein's rule of thumb which can be used to assess the reliability of variables that are above 0.70 (ghozali. i & latan. h, 2015: 75-77). the results of the reliability test can be seen in the table below: variable average variance extracted (ave) servant leadership 0.547 job satisfaction 0.585 employee engagement 0.540 employee compensation 0.618 christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 125 table 3. construct reliability source: smartpls 3.29 output processed, 2021 from the table above, the reliability test results show that cronbach's alpha and composite reliability of all variables have values above 0.70. thus it can be concluded that all variables are reliable or meet the reliability test. model structural test results (inner model) after the research model passes the measurement test, it is necessary to carry out further testing, namely the inner model to determine the magnitude of the relationship (entanglement) between the variables stated in the hypothesis. the first test of the inner model or structural model is carried out by looking at the r-square values presented in the table below: table 4. r-square source: smartpls 3.29 output processed, 2021 from the table above, it is known that the r-square value in the employee engagement model is 0.868 which means that it is included in the strong category and employee job satisfaction is 0.649 which means that it is included in the strong category. this result also means that job satisfaction is influenced by 64.9% by servant leadership and employee compensation. the r-square value of the employee engagement variable is influenced by 86.8%. test result testing the direct influence hypothesis in this study was carried out by looking at the acquisition of t statistics and p values . the t statistic and p values in smartpls are carried out through a bootstrapping process on models that have been declared valid and reliable. the results of the hypothesis are declared accepted if the value of t statistics > t table (1.960) or p values < 0.05. these results can be seen in the table below: variable cronbach’s alpha composite reliability servant leadership 0.790 0.857 job satisfaction 0.821 0.875 employee engagement 0.716 0.824 employee compensation 0.843 0.889 variable r square r square adjusted job satisfaction 0.868 0.854 employee engagement 0.649 0.625 christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 126 table 5. bootstrapping direct effect test results source: smartpls 3.29 output processed, 2021 from the table above, the results of the bootstrapping test with smartpls 3.29 can be explained as follows: hypothesis 1: shows that servant leadership has no effect on employee engagement because t statistic (0.192) < t table (1.96) and p value (0.848) > (0.05). thus it can be concluded that the first hypothesis is rejected which states that servant leadership has no effect on employee engagement. the better the servant leadership, the employees at pt indonesia power suralaya pgu will be more attached. hypothesis 2: indicates that employee compensation has a positive and significant effect on employee engagement because the t statistic (3.663) > t table (1.96) and p value (0.000) < (0.05). thus it can be concluded that the second hypothesis is accepted which states that employee compensation has a positive and significant effect on employee engagement. the better the employee compensation, the more bound employees at pt indonesia power suralaya pgu will be. hypothesis 3: shows that servant leadership has a positive and significant effect on employee job satisfaction because t statistic (2.464) > t table (1.96) and p value (0.014) < (0.05). thus it can be concluded that the third hypothesis is accepted which states that servant leadership has a positive and significant effect on employee job satisfaction. the better the servant leadership, the higher the job satisfaction of employees at pt indonesia power suralaya pgu. hypothesis 4: shows that employee compensation has no effect on employee job satisfaction because t statistic (0.584) < t table (1.96) and p value (0.559) > (0.05). thus it can be concluded that the fourth hypothesis is rejected which states that employee compensation has no effect on employee job satisfaction. the better the employee compensation, the higher the job satisfaction of employees at pt indonesia power suralaya pgu. hypothesis 5: shows that employee job satisfaction has a positive and significant effect on employee engagement because t statistic (1.99) > t table (1.96) and p value (0.047) < (0.05). thus it can be concluded that the fifth hypothesis is accepted which states that employee job satisfaction has a positive and significant effect on employee engagement. the higher the employee job satisfaction, the employees at hypothesis t statistics p values servant leadership à employee engagement 0.192 0.848 employee compensation à employee engagement 3.663 0.000 servant leadership à job satisfaction 2.464 0.014 employee compensation à job satisfaction 0.584 0.559 job satisfaction à employee engagement 1.99 0.047 christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 127 pt indonesia power suralaya pgu will be more bound. as for proving whether employee job satisfaction can be an intervening variable that mediates the effect of servant leadership and employee compensation on employee engagement. in other words, mediation is related to how exogenous variables (servant leadership and employee compensation) can affect endogenous variables (employee engagement). the results of the indirect effect test are presented in the table below: table 7. bootstrapping test results (indirect effect) source: smartpls 3.29 output processed, 2021 from the table above, it can be seen that there are two relationships that state whether there is an indirect influence between variables, which can be explained as follows: indirect effect 1: shows that ser vant leader ship thr ough employee job satisfaction has no effect on employee engagement because the value of t statistic (1.556) < t table (1.96) and p value (0.120) > (0.05). indirect effect 2: shows that employee compensation thr ough employee job satisfaction has no effect on employee engagement because the value of t statistic (0.508) < t table (1.96) and p value (0.611) > (0.05). conclusion to increase employee engagement based on the results of research and discussion described in the previous chapter, the conclusions obtained are servant leadership has no effect on employee engagement, employee compensation has a positive and significant effect on employee engagement, servant leadership has a positive and significant effect on job satisfaction. employees, employee compensation has no effect on employee job satisfaction, and employee job satisfaction has a positive and significant effect on employee engagement. suggestion it is suggested that other researchers can conduct research by looking at the correlation between servant leadership and employee compensation on employee engagement, and job satisfaction and other variables as intervening variables. this is intended to see if there are variables that have a correlation to improve servant leadership and employee compensation so that employees will be more bound. hypothesis t statistics p values servant leadership à job satisfaction à employee engagement 1.556 0.120 employee compensation à job satisfaction à employee engagement 0.508 0.611 christianto, r.d.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 128 references agung nugroho adi, noor fithriana. (2018). employee engagement in the business and public sector. international research and development for human beings, malang. anindita dana. (2016). analysis of the effect of servant leadership and organizational culture on job satisfaction in improving employee performance (study at the department of psda and esdm semarang city). christian daniel mende, yustina erti pravitasmara dewi. 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(2021). journal of business and behavioural entrepreneurship, 5(2), 118-128 the influence of servant leadership and employee compensation on employee engagement through employee job satisfaction as an intervening variable at pt indonesia power suralaya power generation unit https://doi.org/10.21009/jobbe.005.2.14 https://doi.org/10.21009/jobbe.004.2.01 16 abstract how do organizations survive following global phenomena in the form of increasingly rapid, random and unpredictable changes? entering the industrial era 4.0. increasingly visible acceleration of internet-based multi-media computer technology, in communication and control systems that are integrated with automation systems. the dominant indicator seen is "zero tolerance of human error which negatively impacts the achievement of business strategies". this indicator shows whether the business strategy is integrated with the hr strategy. the experience of researchers as management auditors in the private sector and government always finds errors in the implementation of work standards that should be avoided (not force majeure). this situation shows that the hr strategy is not yet converging with the business strategy, so it does not have the competitiveness to survive in the industrial era 4.0 based on the above thought, the researcher compiled a qualitative research evaluation of policy implementation by simulating changes in work processes due to external and internal changes into the potential for the emergence of errors that negatively impact the achievement of business strategies. the selected population is the work function group or department in the company with the sample being kompas gramedia jakarta's industrial relations department. our study in the sample obtained a convergence value of 56%, with recommendations for improvement to reach 100% convergence. this value is close to the average of our findings for this department in private organizations, which is 50%. our research in public organizations found very little achievement, which is below 20%. the smaller the level of achievement the further away the organization is from convergent positions. for this reason, hrd must build a strategic kpi that encourages all management functions in line with the organization's strategy, while developing strategic hr to be ready to follow global developments. keywords: strategy convergence, change, innovation, integration, automation systems received: 13 december 2019 ; accepted: 24 january 2020 ; publish; june 2020. how to cite: utama, z.b., abdullah, t., & suparno, e. (2020). building organizational competitiveness by building convergence of business strategy and hr strategy. journal of business and behavioural entrepreneurship, 4(1), 16–25. https://doi.org/10.21009/ jobbe.004.1.02 building organizational competitiveness by building convergence of business strategy and hr strategy zukra budi utama universitas negeri jakarta email: zukrabudiutama_im12s3@mahasiswa.unj.ac.id thamrin abdullah universitas negeri jakarta email: tabdullah@unj.ac.id suparno eko widodo universitas negeri jakarta email: suparnoeko@unj.ac.id 17 introduction the implementers of the human resources (hrd) department have experienced the tumult of the slogan of the hr strategic partner in the era of the 2000s, having previously been busy discussing the role of humans as the most important asset for organizational growth. why is the motto of hr strategic partner no longer blaring? the convergence of hr strategies with business strategies about how organizations achieve their objectives can be the answer. has the department's policy direction been measured against the organization's policy direction? also, has the organization involved hr in building integrated systematic processes? the fact of global development now, in addition to controlling the direction of policy, organizations must involve human resources in the control process by building a systematically integrated work process. literature study and experience in developing hr gave us a mind mapping pattern to build competitiveness in the following scheme. figure 1. the cycle of building competitiveness with strategic kpis we believe that in addition to bringing together departmental policy with the strategic direction of the company so that the bearers of hr really in line with the strategy of the organization, still needs to be done. development of human resources to be able to control internal and external changes that will affect convergence, which impedes the achievement of organizational strategies. that in addition to discussing our step in building convergence, i also introduced personal kpi and tools to help management to develop logical thinking simulation capabilities of workers on the working process. this will stimulate the creativity of workers in inutama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 convergence of hr strategy with business strategy policy evaluation construction policy accommodates business strategies innovative hr anticipates change and effectively drives strategy achievement program and evaluation programs accommodate new ways and standards of implementation evaluation of achievement in implementation performance convergent department kpis personal kpis organizational competitiveness development of hr thinking systems with lss hr builds systematics in processes and absence of routines 18 novating to anticipate any changes that hinder the achievement of organizational strategies, as well as innovating to find new ways to contribute to the achievement of organizational strategic goals. literature review understanding the theory of convergence is very interesting to follow what is presented by snell, sa, shadur, ma & wright, pm, in a paperwork entitled human resources strategy: the era of our ways, 2000 as a basic reference to the theory of convergence in this paper. in another presentation snell, youndt and wright (1996: 62), begin the common thread of convergence findings by observing; that in the past, executives generally try to "take the human resources of the equation strategy namely, by substituting capital for labor if possible, and to design a hierarchical organization that separates those who think of those who do the work". this is early symptoms are felt by the importance of hr for the organization. the theory of strategic management in the 1990s led to a resource and knowledgebased view, where competitive advantage existed in the ability of organizations to learn, innovate, and change, so that the human element became increasingly important in generating economic value (conner & prahalad, 1996; itami, 1987) as quinn (1992: 241), in snell, shadur & wright (2000: 3). the research of snell, shadur, and wright (2000) found a slice between management strategy and hr strategy. based on the fact that early strategy thinkers were strongly influenced by economics (porter, 1980). however, recent conceptualizations, specifically the resource-based view of the organization (wernerfelt, 1984), have refocused on the internal aspects of the organization. this evolution has put people's issues at the forefront of the strategic management model, specifically focusing on managing intellectual capital as a valuable organizational resource, as well as understanding how organizations can develop dynamic capabilities. further stated, the initial strategic hrm model was based in psychology (schuler & macmillan, 1984) but consistently moved towards a macro approach that better integrated organizational and economic theory into our understanding of hr strategies (wright and mcmahan, 1992). more recently, the emphasis was on exploring hr strategies as a means of managing an organization's intellectual capital (lepak & snell, 1999) and managing the dilemma of compatibility/flexibility. specifically about the organization, that there has been a development of the type of organization, where beyond learning organization is an organization that can compete in the global era with hrd as a growth center through hr re-engineering to build systematic work processes that are integrated into business units ( gilley and maycunich, 2001). to be able to link operations with strategy, the organization must implement a management system with a different dimension in the unity of the strategy focused organization, where each action is in the same direction and in line with the strategy and integrated with all business units and individuals ". (kaplan and norton, 2001). the integration becomes part of priority conditions that become one of the 4 steps in conducting organizational diagnosis, where the organizational diagnosis is a concept in moving strategy into action (dave ulrich, 1997). this is supported by mukhneri (2012) which stated that the work of network planning using the way of systems thinking that sees the work as one of the main subsystems of the system overall organization. in the organization of integrative systems approach, based on the way to think logically and systematically in solving organizational problems. if the conclusions of snell, shadur, and wright (2000) are combined with two theories of organizational growth ( gilley and maycunich, 2001) and (kaplan and norton, 2001), then the requirements for building strategic hr in the future are to be in the same direction and in line with organizational strategy and have an integrated systematic process. this illustrates the maximum internal dynamic level in responding to rapid changes. this is by the complexity theorist research from brown & eisenhardt (1998) as snell, utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 19 shadur & wright (2000: 3) who have begun this analysis and have helped in identifying how organizations cope with sustainable change using strategic flexibility, adaptation, and experimentation. the speed and rate of change in the environment accentuate the focus on internal dynamic capabilities. finally snell, shadur, and wright (2000) found that hr research needs to focus on how organizations create, transfer, and integrate knowledge to cope with rapid change. in short, ongoing convergence between business strategy and hr strategy literature will benefit both fields. this convergence must produce a deeper and broader understanding of how organizations work effectively managing all resources to gain a competitive advantage. based on the description above, convergence can be said to be a major part of what is required in making hr an organization's strategic partner, as was often echoed in the era of the 2000s. so that fulfillment is in the scheme of figure 1., based on the indicators described as follows. the process of creating, transferring and integrating knowledge to cope with rapid change. in the scheme in figure 1 this goes into the policy recommendation stage of accommodating new strategies and ways, which are the result of worker innovation after all routine work has been systematized and integrated. the existence of sustainable convergence, which in figure 1 is in an innovative hr process anticipates change and effectively drives the achievement of strategy, this is also after all routine work is systematized and integrated. a systematic and integrated work process that can respond to changes quickly, is one of the important findings from much research on competitiveness organizations. this work process is not generic in nature and must be developed from within because it must involve all workers, to be able to follow every change. education and applied work systems that are provided to build communities that can respond to change quickly are applied with simulated characters. the simulation is explained by srivastava uk in his book quantitative techniques for managerial decisions, 1989 in a series of sentences as follows: "to solve complex business problems, a method of analysis that can overcome random changes in the mathematical approach of a model is needed, known as the simulation method. simulation is a technique used for decision making under uncertain (changing) conditions. in situations where the mathematical formulation of the problem is not feasible, simulation techniques are used to express reality through a model that will respond similarly as the actual real situation." based on the above understanding, utama, zb (2010) introduced the logic simulation system (lss) as the main tool in building organizational competitiveness. in addition to being able to build a systematic and integrated work process in the organization, it is also beneficial to build systems thinking or 'systems' thinking for workers, because lss can provide stimulus for workers to build this 'system' way of thinking, as well as stimulus to make workers more creative in innovating. understanding on system thinking described hr scorecard (2001): "thinking systematically emphasizes the interrelationship of the hr system components and the link between hr and the larger strategy implementation system ... that make a system more than just the sum of its parts (see the laws of thinking systems) ". the conclusion is the system thinking is to think about solving the whole problem at once, not by part. furthermore, with a systematic process, workers can focus on innovation no longer spending time on routine work processes, because it has been made to work by itself. the focus on innovation is very important in management today which is the center of attention together with controlling change (daft, 2010). according to him, there are very many observers of business trends stating there has been a fundamental change from what was previously called the "knowledge of economists" in the era of the 1900s to economic creativity in the era of the 2000s. referring to the above understanding, convergence in this study, we limit and idealize as align the entire department policy with the company's strategic direction, and preserving the sustainability of convergence by focusing human resources innovatively respond to changes to be effective. this is in line with what the solution to the problem that is found as a policy utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 20 anomaly, where the policy is cut off from implementation, which is the root of the problem has not been eliminated by corruption practices (utama zb, 2015). to be controlled so that the sustainability of convergence can be maintained, the level of convergence must be measurable, so that it becomes a reference for the work of groups and individuals in keeping it always at 100% convergent. thus it can be understood that the best hr strategy is how to translate business strategies into the best-applied hr in an integrated manner, but not to the extent that internal control responds only to internal demands, but is also able to anticipate external to macro changes. so that each hr must open insight to the internal and external environments that affect its field, and be able to respond to every possible change in an integrated manner, to maintain the convergence of strategies while contributing to driving the organization's strategic goals. to carry out these tasks, hr must make its routine work processes run systematically and integrated. for that, two things that must be able to be answered are: 1. is the department's policy in line with the organization's strategy? 2. are there management tools to develop worker simulation knowledge in building integrated systematic processes? research method the approach used in understanding the problems raised is descriptive analysis. data is collected through literature study, observation, and interview. a literature study is carried out by collecting data from relevant reference sources such as books, articles, company regulations, and related legislation, observations are carried out with the fgd process. assessment criteria were obtained through literature studies, interviews, fgds and expert validation. research on the evaluation of industrial relations policy implementation was carried out in 2015, ex post facto period of implementation of the kompas gramedia group (kg) group industrial relations implementation in 2012-2014, the research was located at the kompas gramedia group head office jl. palmerah selatan, south jakarta. respondents were a team of representatives of the industrial relations department in 19 subsidiaries of 7 industry groups under the coordinator of industrial relations management at kg, a body called kg legal industrial relations (lir), and the informant was the executor of the lir industrial relations field. data collection is carried out starting from the head office, to the entire industry with all companies/ business units under it researchers and lir field implementers directly collect data or information that is useful to answer research questions, what percentage of convergence level industrial relations strategy with kg business strategy. as a reference material, each respondent is given a manual on implementing industrial relations which contains all the provisions on the implementation of industrial relations, accompanied by questions about the fulfillment of the provisions for meeting the needs of change, which are not regulated in the terms of implementing industrial relations so that there is a risk of industrial relations disputes which adversely affects the business strategy. the question was answered by the respondent via e-mail communication. the data obtained in the form of answers to questions then carried out the reduction process to select the relevant data, then discussed as a triangulation test stage. the results of the discussion are recorded and then arranged in tables (tabulations) and graphs, to be validated by industrial relations experts to get the correct standard as a recommendation. the standard then becomes the criterion in carrying out internal group assessment to determine the assessment and judgment of the implementation of utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 21 research results in each subsidiary, as a basis for generating conclusions and providing recommendations for all subsidiaries in the kg group. results and discussions the department whose convergence is examined is the industrial relations department. the company's strategic goals related to the industrial relations department policy are no industrial dispute (zero dispute). to achieve this, it is stated in the policies compiled in reference to the implementation standards called company regulations (pp). before measuring the convergence of departmental policies, our research first measures how well pps can be used as operational guidelines for industrial relations work, so they do not risk industrial relations disputes. next, we measure how well the pp can accommodate the company's current strategic needs so that it is aligned with the company's strategy. the ability to accommodate the needs of the strategy is approached by identifying potential obstacles to achieving the strategy due to changes as well as potential external and internal changes. the process is described as follows. figure 2 process flow determines the level of convergence policy criteria as implementation guidelines are: 1. the existence of provisions that are not appropriate or contrary to applicable laws and regulations. 2. there are provisions with the use of non-standard terms in the official grammar used 3. there are provisions based on laws that are no longer valid 4. some provisions can be interpreted as multiple interpretations and at risk of conflict 5. some provisions are not adaptive to changes 6. incomplete provisions; concerning authority, types of violations that are given awards or sanctions, and elements of cause and effect. 7. some provisions are not appropriate in a grouping or some provisions are put together. the results obtained are  number of policies to improve = 31  number of existing policies = 100  the distance used as a guideline for applied policy is = (100-31) / 100 = 69% after the 100% guideline meets the requirements as a policy implementation guideline, the level of policy direction is measured with the direction of the organization's strategy. the criteria for convergence of industrial relations policy with business strategy through the evaluation of industrial relations policy, obtained through interviews and fgds are: fulfillment of requirements as a guideline for implementation identification of operational constraints and anticipation (ik) changes to policy implementation guidelines (pp) level of convergence = (total implementation guidelines (tpi) (pp)) / tpi utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 22 1. what are the additional requirements/improvements to the terms of mutation 2. what are the additional requirements/improvements to working time provisions 3. what are the additional requirements/improvements to the provisions regarding discipline 4. what are the additional needs/improvements to the remuneration provisions 5. what are the additional requirements/improvements to working-age regulations 6. what are the additional requirements/improvements to the terms of the contract agreement? 7. what are the additional requirements/improvements to outsourcing requirements? 8. what are the additional requirements/improvements to other provisions? the results obtained are:  number of article of current company regulations = 100  number of change needs = 4 4  distance between departments and company strata = (1004 4) / 100 = 5 6% by fixing 4 4 policy, the department of industrial relations has been able to accommodate the needs of corporate strategy, so there is no barrier of pp against the corporate strategy today. henceforth the department can be declared 100% convergent to the organizational strategy. figure 3. illustration of the level of departmental convergence within the organization by understanding the position of convergence, we will understand how far we are to reach "unity of direction with strategic action" as a condition referred to by kaplan and norton (2001) to be able to connect operations with strategy. furthermore, the relationship between operations with kaplan and norton's strategies is the main requirement in having competitiveness as referred to by gilley and maycunich (2001) in his book beyond learning organization. the level of convergence position size above can be a strategic step for hrd to integrate with the business strategy by encouraging cross-departmental policies to integrate with the business strategy, through the departments kpi with the following measures. utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 23 table 1. the measure of achievement of policy evaluation results where the measure of achievement is obtained from how many clauses get improvement recommendations. the number of clauses fixed divided by the total number of clauses multiplied by 100% is the percentage of improvement. to determine the size of achievement obtained by a 100% reduction in the percentage of improvement. then the more recommendations for improvement, the lower the achievement rate. conclusions hr strategies that converge with company strategy occur when there is no distance of each department from the company's strategy, namely when the size of the strategic direction in table 1 is 100%. policy evaluation will produce a percentage of departmental achievement approaching two performance references, namely policy performance as a guideline for operational work processes and policy performance as a tool to accommodate organizational strategy as evidenced by the direction of the department's strategy and organizational strategy. to be able to control this convergence, a department performance reference is needed in the form of a department kpi, while making it easier for the organization to manage the department so that it is always able to translate the company's strategy into operational policies for group work, to be lowered again into good and correct individual work standards. this method of measuring the level of departmental convergence to business strategy has a novelty value because it has never been applied as a logical approach in measuring the level of the departmental direction of business strategy. we have implemented it in several private organizations ( companies) in supporting departments, namely the hr department and industrial relations. we found that the achievement range was around 50%. logically, achievement in the core process of the organization (core process) should be valued in the range above 90%. this is due to the core process part or commonly called the production part, always demanding high process success by being bound by strict sops. as we know the support or outside the organization's core processes have faced the productivity dilemma so far, given the fundamental differences from the workers of the core process, which are measurable in their work. then the measure of the work output of the support function is the ability to maintain convergence to eliminate production risks by building a systematic work process that is integrated with all parts related to the work process. the implementation of day-to-day work of the support section should exclude routine work by building a systematic work-based simulation process for all of the routine work, so that we never again have support workers claiming to not have time because they are preoccupied by their routine tasks, so there is no time to attend a meeting to discuss solutions to problems in the organization's management system. the support section should focus fully on innovation to build anticipation of process risks as the organization develops core competencies. each layer of the department builds a systematic process for each, to then become a dashboard for the layers above to the highest dashboard, the organizational dashboard. leaders can objectively see facts on the ground through an easily accessible organizational dashboard so that it is easy to make quick and right decisions in executing a problem at the organizational level. proving the application of lss simulation tools in the form of an increase in the innovameasure of achievement achievement operational guidelines strategy direction 0-40% 0-40% very less 41% -59% 41% -59% less 60% -79% 60% -79% enough 80% -100% 80% -100% well utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 24 tion of a company by 20,000% (twenty thousand percent) in a year in 2006 is a convincing achievement for a significant increase in growth. the company does not need to worry if the support workers do not have a job, instead what happens is the opposite, the morale of the work will increase. however, the organization must be able to accept, that with the industrial 4.0 era, it is time to enter the era of effectiveness and leave the era of efficiency. through learning lss workers will see a lot of new things in improving the effectiveness of the process. there is a change in mindset over time, openness to renewal and making work a way of life. they will be professional to further explore their field of expertise. this will have an impact on the development of the organization through product diversification and growth in business size, which will automatically increase assets. at the same time, organizations no longer need to add workers in the support department that cannot be replaced by automation but expand employment in the core business processes. this will make the organization more survive in the global era. references brown, sl & eisenhardt, km 1998. competing on the edge: strategy as structured chaos. boston: harvard business school press. brian e. becker, mark a. huselid, dave ulrich, the hr scorecard, harvard business school, 2001. daft richard l., new era of management, ninth edition, cengage learning international, 2010 jerry, maycunich, beyond learning organization, perseus book, cambridge, massachusetts, 2001 kaplan robert s. and norton david, the strategy focused organization, harvard business school press boston massachusetts, 2001 mukhneri mukhtar, fip management system, bpjm, unj, jakarta state university, 2012 porter, me competitive strategy: techniques for analyzing industries and competitors. new york: free press, 1980 snell, sa, youndt, ma and wright, pm establishing a framework for research in strategic human resource management: merging resource theory and organizational learning, research in personnel and human resources management, 14. 1996. snell, sa, lepak, dp & youndt, ma, managing the architecture of intellectual capital: implications for strategic human resource management. in gr ferris (ed.) research in personnel and human resources management. 175-193. supplement 4. london: jai press, 1999 snell, sa, shadur, ma & wright, pm, human resources strategy: the era of our ways (cahrs working paper # 00-17). ithaca, ny: cornell university, school of industrial and labor relations, center for advanced human resource studies, 2000 schuler, rs & macmillan, gaining competitive advantage through human resource practices, human resource management, 1984 srivastava uk, quantitative techniques for managerial decisions, cambridge, massachusetts, 1989. quinn, jb the intelligent enterprise: a new paradigm, academy of management executive, 6 (4), 1992 wernerfelt, b. a resource-based view of the firm, strategic management journal, 5: 171180, 1984 utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 25 ulrich dave, human resource champions, the next agenda for adding value and delivering results, harvard business school press, boston massachusetts, 1997 utama, zb, building a growing organization, the circle of true synergy, jakarta, 2010 utama, zb anomaly of state financial policy and its solution through changing work culture in budget user institutions, integrity journal, corruption eradication commission, kpk, 2015 utama, z.b., abdullah, t., & suparno, e. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (16-25)  building organizational competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 36 abstract with the rapid growth of online technology in financial services, mobile payment has become popular in recent years. many studies have investigated financial innovations based on information and communication technology (ict) in bank institutions. specifically, this study is important to explore the use of mobile payment provided by non-bank institutions. this study focuses on trust and commitment to improving their continuous usage intention of mobile payment. we argue that the advantages of mobile payment (mobility, customization, security, and reputation) contribute to trust and commitment. the research method used pls-sem. it is mainly used to develop theories in exploratory research. the findings of this study illustrate that the mobile payment reputation has a positive effect on trust. trust is mediated by commitment has a positive influence on continuance intention. this study recommends that the topic of research needs to be explored more in order to understand and develop marketing strategies for mobile payment users. keywords: mobile payment, digital payment, trust, commitment, continuance intention received: 30 august 2020 ; accepted: 30 september 2020 ; publish; december 2020 how to cite: sembiring, o., hamonangan aruan, d.t (2020). trust and commitment toward mobile payment platform. journal of business and behavioural entrepreneurship, 4(2), 36-46. https://doi.org/10.21009/jobbe.004.2.04 trust and commitment toward mobile payment platform oktyfany sembiring email: okty.fany@gmail.com university of indonesia daniel tumpal hamonangan aruan email: dtumpal@ui.ac.id university of indonesia https://doi.org/10.21009/jobbe.004.2.01 37 introduction plays an important role in fulfilling human needs and desires, and in stimulating the economic system. a simple transaction starts with a barter method and develops into payment with paper money and coins. along with the development of increasingly sophisticated technological innovations, paper money and coins as a means of payment have evolved into a digital form. the public can make payments on a non-cash basis by utilizing various types of cards, smartphones or smartphones and various hardware connected to the internet connection. non-cash or cashless transactions can also be described as a process of purchasing goods and services that do not involve physical forms of money (kadar, sameon, din, & rafee, 2019). based on bank indonesia regulation (2018), the value of electronic money is first deposited to the party that issues electronic money which is then stored in chip or server media and can be moved electronically to transfer funds and make payments. chip-based electronic money can be found on cards and is usually used in the transportation sector, such as toll payments, commuter trains and trans jakarta. most server-based electronic money is offered by startup applications that can be accessed through consumer smartphones. the iprice report (2019) explains that in indonesia the use of smartphones has increased by 70% in the last 5 years so that in line with digital payments through mobile communication technology is increasingly popular. according to the statista survey (2018), mobile payment users worldwide totaled 721 million in 2017 and this number is predicted to reach 1,115 million in 2021. as a new form of financial innovation, mobile payment disrupts spending patterns and consumer payment habits (liu et al., 2019). now people can make payments, transfer and manage their finances anytime and anywhere through mobile payments (dahlberg et al., 2008; yu et al., 2018; liu et. al., 2019). mobile payment has enormous potential so that it attracts the attention of investors and entrepreneurs. many companies including startups joined the mobile payment industry and released their own mobile payment applications such as, go-pay, ovo, linkaja, dana, jenius, and others. the bank also participated in issuing their mobile payment applications, such as bank central asia with sakuku, cimb niaga with rekening ponsel, and others. however, the market share in the mobile payment business is dominated by non-bank financial applications or third parties. snapcart's research results (2019) show that ovo occupies the first position with a market share of 58%, go-pay is in the second position with a market share of 23% and followed by dana with a market share of 6% in the third position. from the table below, statistics from iprice research in the second quarter of 2019 also explained that go-pay and ovo were the most popular mobile payment applications used by consumers in indonesia. digital financial activities can be carried out with mobile banking and mobile payment, but the two terms have fundamental differences. mobile banking refers to consumers who use traditional bank services through bank applications on smartphones, such as deposits, paying bills and transferring funds between different bank accounts or validating payment transactions. banks expand their traditional services to the internet through mobile banking. meanwhile, the majority of mobile payments come from a new generation of it companies that aims to provide financial innovation service solutions to millions of consumers. mobile payment is usually carried out by non-traditional financial companies, such as third-party payment providers, startups engaged in finance (liu, et al., 2019). previous research has identified trust as one of the important antecedents to encourage consumer acceptance and further use of mobile payment in various situations sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 38 (cabanillas, fernandez & leiva, 2014; koster et al., 2016; lu yan, chau michael & chau patrick, 2017; shao et al., 2018). trust research and other factors investigated in payment activities via websites and mobile, mostly happened in the context of western countries. according to the kontan report (2019), online payment systems in indonesia still have the potential to pose a risk and a mode of crime. for example, crime activities that often occur include data theft and financial information, as well as fraud or fraud with malware software. this risk threat can impede consumers from using mobile payment. in accordance the data the position of the five largest mobile payment industry players is dominated by services from third parties, not from formal institutions, such as banks. there is a high possibility that consumers will find it difficult to accept new technology from mobile payments (olivera et al., 2016; cabanillas et al., 2018; shao et al., 2018), especially services offered from third parties. the commitment – trust theory (ctt) is developed in the context of relational exchanges, it also provides a powerful theoretical basis to explain the usage of online services (gefen et al. 2003; li et al. 2006). in our context of mobile payment, we focus on customers’ trust in and their commitment to the mobile payment service. trust refers to a customer’s confidence in the reliability and integrity continuous usage intention of mobile payment. commitment refers to a customer’s belief that the mobile payment service is so important that it warrants continuous use. according to innovation diffusion theory (idt), users’ decisions to accept an innovation technology depend on their perceptions of innovation attributes (rogers, 1995; agarwal, 2000; kauffman and li, 2005; li, 2004; li et al., 2014). while many previous studies consider relative advantage as a first order construct, few studies have examined what specific features of relative advantage are most beneficial to promote customers’ cognitive evaluation of a new technology, especially in the context of mobile payment. in this paper, this study examines antecedents that influence trust from the experience of consumers who have used mobile payment. specifically, the antecedent factor is examined from the relative advantage which is divided into two dimensions of mobility and customization of mobile payment technology. in addition, this research investigated how trust influence on commitment of moble payment users. literature review mobility toward trust mobility is defined as the relative advantage of being able to access mobile payment anytime and anywhere (shao et al., 2018). when customers perceive a mobile platform as a unique tool readily available for most types of payment services, they will trust it and use it more frequently (bachfischer et al., 2004). mobility is beneficial to enhance customers’ trust in mobile payment (zhou, 2011). mobility is beneficial to enhance customers’ trust in mobile payment (zhou, 2011). h1. mobility positively influences trust in mobile payment customization toward trust customization is defined as the ability for customers to customize the information function, payment methods and security settings based on their favorite and sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 39 accustomed behavior (huang et al., 2014). li and yeh (2010) show that customization has remarkable interpreting ability on trust in m commerce. h2. customization positively influences trust in mobile payment security toward trust in the m-payment context, security represents customers’ perception of safety and reliability of the institutional structures such as the guarantees, regulations and promises of the transactions in the mobile payment environment (zhou, 2011). security is considered as a significant factor in protecting customers from transactional uncertainties and risks. therefore it can help promote customers’ trust in the third party platforms (xin et al., 2015). h3. security positively influences trust in mobile payment. reputation toward trust reputable providers are more likely to attract transactions from customers (grazioli and jarvenpaa, 2000; teo and liu, 2007). providers with a bad reputation usually lose online transactions from potential customers (ba, 2001). in the mobile payment context, scholars have indicated the important role of platform reputation in fostering customers’ trust. h4. reputation positively influences trust in mobile payment. trust – commitment trust that has been examined as a determinant of initial use, or adoption, or acceptance, the notion of commitment mainly focuses on continuous usage (li et al. 2006). according to the commitment literature, commitment reflects a decision maker’s motivations to continuously stay within the relationship, such as affective bond with the relationship (or organization, or action), avoiding losing investment with the relationship (or organization, or action), and/or justifying the rightness of earlier decisions. when customers perceive that a platform provides a trustworthy system for mpayment transactions, their continuance intentions toward using the platform will be enhanced (mcknight et al., 2002). h5. trust positively influences commitment in mobile payment. h6. commitment positively influences continuance intention in mobile payment. sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 40 research methods the research data collection was using through an online questionnaire with qualtrics survey software and administered as a pre-test in a sample of 60 individuals, and was subsequently extended to a sample of 609 mobile payment users in indonesia. we selected active mobile payment users for the past 3 months. the analysis sample consisted indonesian mobile payments users approved by age <22 years (72%). in addition to questions about demographic variables, some questions about the frequency of mobile payments applications, education, and monthly income. the research variables consist of five variables, namely trust, mobility, customization, commitment, and continuance intention. trust, mobility, customization and continuance intention have 3 question items. meanwhile, commitment has 6 question items. all items were measured on a 7-point likert scale. pls-sem is mainly used to develop theories in exploratory research. pls-sem focuses on explaining the variance of the dependent variable when examining the model (hair jr., hult, ringle, & sarstedt, 2017). in situations where the theory is less developed, researchers need to consider the use of pls-sem. this is especially true if the main purpose of implementing structural modeling is the prediction and explanation of target constructs (hair jr. et al., 2017). result and discussion validity and reliability the first criterion that is evaluated is internal consistency reliability through cronbach's alpha value as an estimate of reliability based on the intercorrelation of the observer indicator variable. other than that, composite reliability is also considered as a criterion of consistency reliability with values varying from 0-1. in this study, cronbach's alpha value and consistency reliability were between 0.7 to 0.9 so that it construct name total items adapted from com commitment 6 yuan, yang et. al (2018) ci continuance intention 3 yuan, yang et. al (2018) shao, zen et. al (2018) cus customization 3 shao, zen et. al (2018) mob mobility 3 shao, zen et. al (2018) rep reputation 7 shao, zen et. al (2018) ageeva, elena et. al (2018) sec security 3 shao, zen et. al (2018) trs trust 3 yuan, yang et. al (2018) shao, zen et. al (2018) sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 41 was considered satisfactory. the same interpretation can be implemented to composite reliability and cronbach's alpha. the second criterion is convergent validity, which is the extent to which the measurement is positively correlated with alternative measurements of the same construct. to evaluate the convergent validity of a reflective construct, researchers need to consider the outer loading of the indicator and the average variance extracted (ave). standardized outer loading ≥ 0.708. in general, indicators with outer loading between 0.40 to 0.70 need to be considered to be removed from the scale only if removing this indicator, composite reliability or ave can be increased. meanwhile ave value ≥ 0.5 means that on average the construct explains more than half the variance of the indicator. and the last criterion, discriminant validity is the extent to which a construct is completely different from other constructs by empirical standards. measurement of discriminant validity can be done with the htmt approach. technically, the htmt approach is how to estimate the true correlation between two constructs, if they are perfectly reliable. htmt value < 0.90 indicates the amount of discriminant validity. path analysis pls-sem estimates parameters so that the variance explained in maximum endogenous latent variables. to analyze structural models, there are several things that need to be done (hair jr. et al., 2017). standard assessment criteria that need to be considered include the coefficient of determination (r2), blindfolding-based cross-validated redundancy (q2) measurement, and the statistical significance and relevance of the path coefficient (hair, risher, sarstedt, & ringle, 2019). use boostrap to assess the significance of the path coefficient. the minimum number of bootsrap samples is 5000. the t value for the two-tailed test is 1.65 (significance level = 10%), 1.96 ca cr ave co m ci cus mo b rep sec trs com 0.78 4 0.84 8 0.48 2 ci 0.82 6 0.89 6 0.74 3 0.712 cus 0.70 1 0.83 4 0.62 6 0.553 0.40 7 mob 0.75 1 0.85 8 0.66 8 0.485 0.32 5 0.70 3 rep 0.84 3 0.88 1 0.52 1 0.685 0.43 5 0.63 3 0.548 sec 0.85 7 0.91 3 0.77 7 0.538 0.33 5 0.53 5 0.491 0.64 4 trs 0.80 0 0.88 3 0.71 6 0.758 0.53 8 0.68 7 0.585 0.85 0 0.689 sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 42 (significance level = 5%), and 2.57 (significance level = 1%). in addition, the p value must be less than 0.1 (significance level = 10%), 0.05 (significance level = 5%), or 0.01 (significance level = 1%). it measures the coefficient of determination (r2 value) which is the most common measurement for evaluating structural models. to examine coefficient represents the amount of variance in endogenous constructs explained by all exogenous constructs that are related to it. r2 values vary from 0 to 1, with higher numbers indicating high predictive accuracy. discussion mobility is defined as the relative advantage of being able to access mobile payment anytime and anywhere (shao et al., 2018). when customers perceive a mobile platform as a unique tool readily available for most types of payment services, they will trust it and use it more frequently (bachfischer et al., 2004). customization is defined as the ability for customers to customize the information function, payment methods and security settings based on their favorite and accustomed behavior (huang et al., 2014). li and yeh (2010) show that customization has remarkable interpreting ability on trust in m commerce. security is considered as a significant factor in protecting customers from transactional uncertainties and risks. therefore it can help promote customers’ trust in the third party platforms (xin et al., 2015). reputable providers are more likely to attract transactions from customers (grazioli and jarvenpaa, 2000; teo and liu, 2007). providers with a bad reputation usually lose online transactions from potential customers (ba, 2001). in the mobile payment context, scholars have indicated the important role of platform reputation in fostering customers’ trust. according to the commitment literature, commitment reflects a decision maker’s motivations to continuously stay within the relationship, such as affective bond with the relationship (or organization, or action), avoiding losing investment with the relationship (or organization, or action), and/or justifying the rightness of earlier decisions. when customers perceive that a platform provides a trustworthy system for m-payment transactions, their continuance intentions toward using the platform will be enhanced (mcknight et al., 2002) variable relationships t statistics p values re-sult mobility  trust 2.238 0.025 positive significant customization  trust 4.157 0.000 positive significant reputation  trust 14.206 0.000 positive significant security  trust 4.810 0.000 positive significant trust  commitment 24.687 0.000 positive significant commitment  continuance intention 20.335 0.000 positive significant sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 43 conclusion this study was empirically tested on mobile payment users by using an online survey to see the effects of variable mobility, customization, security, reputation and the effect of trust is mediated by a commitment on continuance intention. this findings that customers’ perception of mobility and customization attributes are significant antecedents that promote trust in an mpayment platform, which in turn facilitates their continuance intention. thus, the research can enhance our understanding of mobile payment usage in indonesia from an innovation diffusion theoretical perspective.the research to be carried out is expected to benefit several parties. for this research, contribute to add to the literature relating to online and retail-based financial finance by identifying the role of trust and commitment to satisfaction and the desire to continue to use mobile payment arrangements. for marketers and mobile payment service providers, this study can be a guideline to improve aspects of marketing, interest and motivation in using mobile payment rather than other alternative payment option. reference cao, x., yu, l., liu, z., gong, m. & adeel, l. understanding mobile payment users’ continuance intention: a trust transfer perspective. internet res. 28, 456– 476 (2018). gao, l. & waechter, k. a. examining the role of initial trust in user adoption of mobile payment services: an empirical investigation. inf. s yst. front. 19, 525– 548 (2017). ghazali, e. m., mutum, d. s., chong, j. h. & nguyen, b. do consumers want mobile commerce? a closer look at m-shopping and technology adoption in malaysia. a sia pacific j. mark. logist. 30, 1064–1086 (2018). hashim, k. f. & tan, f. b. the mediating role of trust and commitment on members’ continuous knowledge sharing intention: a commitment-trust theory perspective. int. j. inf. manage. 35, 145–151 (2015). hsu, j. s. c., lin, t. c., fu, t. w. & hung, y. w. the effect of unexpected features on app users’ continuance intention. electron. commer. res. appl. 14, 418– 430 (2015). huarng, k. h. & yu, m. f. customer satisfaction and repurchase intention theory for the online sharing economy. rev. manag. sci. 13, 635–647 (2019). jamshidi, d., keshavarz, y., kazemi, f. & mohammadian, m. mobile banking behavior and flow experience: an integration of utilitarian features, hedonic features and trust. int. j. soc. econ. 45, 57–81 (2018). lee, j., ryu, m. h. & lee, d. a study on the reciprocal relationship between user perception and retailer perception on platform-based mobile payment service. j. retail. consum. serv. 48, 7–15 (2019). liu, z., ben, s. & zhang, r. factors affecting consumers’ mobile payment behavior: a metaanalysis. electron. commer. res. (2019). doi:10.1007/s10660-01909349-4 soeprajitno, h. research report on digital shopping & payment. marketeers 38 (2018). unnikrishnan, r. & jagannathan, l. do perceived risk and trust affect consumer adoption of mobile payments ? a study of indian consumers †. 25, 74–101 sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 44 in order to facilitate the placement of key positions of the company by applying succession management patterns to improve corporate success. one pattern of succession management carried out by company leaders should involve elements in the organisation that involves employees so that they are also responsible for the input they propose if the proposal becomes part of the decision taken. thus, employees are also required to carry out their responsibilities in carrying out the decisions taken, 2. organisational commitment and work motivation of employees need to be grown by the leadership of the company so that employees feel they have the company where they work. with high work commitment and motivation they will continue to fight for the interests of the company and encourage the carrying out of tasks so that this will have an impact on improving employee performance. besides giving awards and bonuses, it should distinguish between those employees who have low work motivation and those who have high work motivation, done fairly and correctly, so that employees are more precise in making decisions in carrying out work so that it has an impact on increasing corporate success and 3). companies need to do the design pattern of learning succession management, so that managers are able to make adjustments to the pattern of succession management in accordance with the situation faced by employees by assessing the working position in the future, which is done by assessing the work and the requirements of competence in leadership positions in the future. decision makers must try to assess future work requirements and competencies to be aligned with the strategic direction of the organisation. future leaders must prepare ways to cope with changes and strategic objectives of the organisation. the company always assesses employee performance against prospective successors from the contributions made. references aishah, nor buang, ganefri., & sidek, saliza. 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(2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 46 wibowo .(2016). manajemen kinerja edisi kelima. jakarta: rajawali pers. widodo, hadi teja, & harjanti, dhyah. (2014). analisis proses suksesi dan dampaknya terhadap kinerja perusahaan di pt lestari purnama perkasa: agora vol. 2, no..2: feb, jurusan manajemen, universitas kristen petra surabaya. sembiring, o., hamonangan aruan, d.t. (2020). journal of business and behavioural entrepreneurship, 4(2), 36-46 trust and commitment toward mobile payment platform. https://doi.org/10.21009/jobbe.004.2.04 https://doi.org/10.21009/jobbe.004.2.01 112 abstract the objective of this study was to conduct a critical review of entrepreneurship in a global / international context and to determine, based on empirical literature reviews whether it has been an effective tool for economic growth. the study adopted the systematic quantitative assessment technique (sqat) in identifying and reviewing peer reviewed journal articles, conference papers and book chapters published between the period 2009-2019 which had empirically examined the link between entrepreneurship on a global basis and economic growth. the study was categorized into three (3) geographical groups based on national income levels – low income, medium income and high income countries which also correspond with their respective levels of economic development. based on the evidence and review thereon conducted by this study, it was concluded that global entrepreneurship has been an effective tool for economic growth and that the degree of effectiveness increases with national income levels or degree of economic development. keywords: : : global, international, entrepreneurship, economic growth, effectiveness received: 13 february 2020; accepted: 29 april 2020; publish; june 2020. how to cite: egboga, i., zubairu, u. (2020). how effective has global entrepreneurship been as a tool for economic growth?. journal of business and behavioural entrepreneurship, 4(1), 112-121. https://doi.org/10.21009/jobbe.004.1.08 how effective has global entrepreneurship been as a tool for economic growth? ike egboga nile university of nigeria email: ikegboga@gmail.com umaru zubairu federal university of technology minna email: uzubairu@gmail.com 113 introduction the socio-economic development of nations and regions is dependent on their ability to compete in the global market place, their capacity for wealth generation, job creation and social welfare for the citizenry in a sustainable manner (farinha, et al., 2018; morozova, et al., 2019; tunali and sener, 2019). entrepreneurship is deemed as a very popular concept in development economics in achieving this objective and has long been viewed as a tool for enhancing economic growth, competitiveness and job creation even in difficult times (audrestch, 2018; urbano et al., 2019; he, et al., 2019). it has come to be regarded as a tool for economic growth and creating jobs otherwise perceived to be threatened by globalization (prashantham and eranov, 2018; ausdrestch, 2019; morozova, et al., 2019). although globalization is generally seen as threat to the creation of new jobs and the sustenance of existing ones, it is also an enabler of vital entrepreneurship activities and outcomes (ferreira et al., 2017; prashantham and eranova, 2018; he et al., 2019). the push to take entrepreneurship to global level can be due to the creation of global products and services, global market access, strategic resources and sourcing access. consequently, entrepreneurship driven activities is embedded in a global economy and needs to be treated as a mobile resource across national boundaries (coulibaly et al., 2017; bosma and kelly, 2019; ngo and igwe, 2019). the contemporary economic policy approach is the development of entrepreneurs with focus on globalization and technology (audretsch, 2018; aydogan and sevencen, 2018; ermal et al., 2018). it is, therefore, very important to view the two concepts of entrepreneurship and globalization in a holistic manner. it is this integration that has given rise to global entrepreneurship as the area of interest in this study. global entrepreneurship is about entrepreneurs developing a global mindset for the internationalization of their activities and outputs (kyvic, 2018, eduardo, 2018). a global mindset is very important due to increasingly declining local markets and resources coupled with very strong global competition. consequently, new entrepreneurial organizations that are able to thrive in global markets will enhance national competitiveness, serve as a means of overcoming the effects of global economic crisis and also of avoiding future crisis that could hamper economic growth (perenyi and losoncz, 2018; prashantham et al., 2018; morozova, et al.,2019). a country’s economic growth can be measured in terms of an increasing gross domestic product (gdp) per capita, improvement in competitive index in the global market place and an increasing capacity for wealth and employment creation (farinha, et al., 2018; morozova, et al., 2019; tunali and sener, 2019). empirical studies to quantify the impact of global entrepreneurship on economic growth are surprisingly few and in particular, global entrepreneurship is a relatively emerging area of study in the academic field (guo and jiang, 2019; bosma et al., 2018). it involves the discovery, evaluation and exploitation of various opportunities (cross-cultural, cross-national and cross-disciplinary) across national boundaries with a view to using them to create goods and services that will improve global competitiveness and also the lowering of regional and national barriers in order to facilitate the movement of goods and services within regions and across national borders (eduardo, 2018; guo and jiang, 2019). we have seen from the above contributions that global entrepreneurship is a tool for economic growth. how effective this tool has been is the central research question that this study seeks to answer. effectiveness refers to successfully creating, capturing and sustaining an intended or desired result or benefit (cambridge dictionary, 2019; oxford dictionary, 2019). accordingly, the objectives of this study are to review the egboga, i., zubairu, u. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 114 empirical evidences linking global entrepreneurship to economic growth and to determine how effective global entrepreneurship has been in creating, capturing and sustaining the desired result or benefit in terms of economic growth. to arrive at this conclusion, 50 articles from journal publications, conference materials and book chapters (42 peer reviewed and 8 others) addressing global entrepreneurship and economic growth were downloaded, reviewed and discussed. from the results of these reviews, the empirically determined effects of global entrepreneurship on economic growth were identified and used as the basis for concluding on the critical research question. research method to carry out an effective critical review, this study adopted the “systematic quantitative assessment technique” (sqat) developed by pickering & byrne (2013). sqat applies a systematic approach in the assessment of papers for inclusion or otherwise in the critical review process and seeks to maintain a very high quality of papers by focusing only on peer reviewed original journal publications (pickering & byrne, 2013). it has been found to be a logical, simple, reliable and easy to replicate method of assessing the current status of a field of research (pickering & byrne, 2013). table 1: table 1 above gives a summary of the five important steps recommended by sqat for the conduct of an effective review and how they have been applied in this study. it shows the topic of study, the central research question and how the relevant materials were obtained and assessed ensuring that potential biases are minimized using these clearly articulated steps. given the limited peer reviewed articles on the research question within the review period, journal articles have been augmented with conference materials and book s/n step application in this study 1 define topic global entrepreneurship and economic growth 2 formulate research question one central research question: how effective has global entrepreneurship been as a tool for economic growth? 3 identify key words global, entrepreneurship, economic growth 4 identify and search data bases 12 data bases were utilized as follows: emerald; elsevier; sage; springer; taylor & francis; wiley; cambridge; jstor; oxford; inderscience; ingenta and heinonline journals. 2.“all in title” search using “global” “entrepreneurship”+“economic growth” and “international” “entrepreneurship” “economic growth” 5 read and assess publications read abstract of papers found to ensure that they are dealing with entrepreneurship (at global or international level) and economic growth. relevant book chapters and conference materials from the above databases were also included. egboga, i., zubairu, u. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 115 chapters from the same databases, a few articles from outside the databases on empirical evidence and also publication from the global entrepreneurship monitor (gem) in order to highlight relevant trends in global entrepreneurship. the search outcome is given in table 2 below. table 2: outcome of the search for articles results and discussions the first part of this section gives an overview of the link between global entrepreneurship and economic growth, the results of the various empirical studies carried out by scholars on this link and discussions thereon. the second part provides an overview on the effectiveness of global entrepreneurship. the analysis of these two in combination provided this study with the answer to our central research question on how effective global entrepreneurship has been as a tool for economic growth. linking global entrepreneurship to economic growth global entrepreneurship as a discipline lies at the junction of entrepreneurship and international business and is regarded as a major contributor to economic growth (ng and kee, 2017; perenyi and losoncz, 2018). it is basically a cross border investment for the acquisition of specialized human and material resources and assets to create and capture value for an enterprise (eduardo, 2018). it is mainly facilitated and occasioned by the entry of small and medium enterprises (sme’s) into foreign markets taking advantage of global market integration and database peer reviewed journal articles conference materials relevant book chapters total emerald 5 3 8 elsevier 6 1 7 sage 2 2 springer 12 1 2 15 taylor & francis 3 3 wiley 1 1 cambridge 1 1 jstor 1 1 oxford 2 1 3 inderscience 1 1 ingenta heinonline 33 2 7 42 other sources 6 2 8 total 39 2 9 50 egboga, i., zubairu, u. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 116 globalization (perenyi and losoncz, 2018). economic growth according to schumpeter (1934) has its base on innovations (new products, new production processes, new sources of raw materials and new organizational structures) and innovations are sought after and implemented by entrepreneurial initiatives (farinha et al., 2018). these initiatives inclusive of the foreign components increase both productivity and number of new firms which plays a major role in job creation and economic growth (farinha et al., 2018). a lot of empirical studies have been done to confirm the positive relationship between global entrepreneurship and economic growth but the extent of the relationship is not yet generally agreed (content et al., 2019). this study reviewed 25 (20 from the specified database and 5 from other sources) different empirical studies conducted from 2009 to 2019 on the link between global or international entrepreneurship and economic growth. the discussion of the above results will be done along the lines of geographical scope given that all the empirical studies as listed above categorized their findings along those lines, that is, low income (li), middle income (mi) and high income (hi) countries. according to the world bank report as at july 1 2019, the li countries have gross national income (gni) per capital of $1,025 or less; the mi countries have gni per capita of $1,026 $12,375 and the hi countries have gni per capita of above $12,375. this definition has been adopted by the global entrepreneurship monitor (bosma and kelly, 2019) but noting that there is a thin line between the li economies and those on the lower mi range. low income (li) countries these are mainly countries in sub-sahara africa and middle east. out of the 25 empirical studies conducted between 2009 and 2019, only ten related to these groups of countries indicating that there is still so much research gap within this scope. two of the studies (doran et al., 2018; ivanovic-djukic et al., 2018) indicated that there is a negative or no significant effect of global entrepreneurship on economic growth. the other eight empirical studies indicated a positive effect but three of them (ermal et al., 2018; prieger et al., 2016; aydogan and sevencen, 2018) concluded that the effect of global entrepreneurship on economic growth progressively decreases from hi to li countries, that is, the effect is dependent on a country’s level of development. this is in agreement with earlier empirical studies by korez-vide and tominic (2016) which determined that entrepreneurial activities support economic growth only to the extent of a favorable broader business environment. because of less favorable business environment in li countries, there is a lesser rate of economic growth despite the fact that they have more entrepreneurial activities (prieger et al., 2016) and the highest level of global entrepreneurship (bosma and kelly, 2019). many factors have been adduced for this phenomenon including poor educational and technological levels. training and schooling tends to increase both absorptive and technological capacity which increases innovative capacity and technologically enhanced entrepreneurship which is the engine for economic growth (aydogan and sevencen, 2018). middle income countries these are mainly countries in lain america and the caribbean; east and south asia and eastern europe. although the gni per capita ranges from $1,026to $12,365, there is a further division into lower mi ($1,026 $3,995) and upper mi ($3,996 egboga, i., zubairu, u. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 117 $12,365). the lower mi economies fall in and out of li depending on the measurement date. out of the 25 empirical studies analysed, 21 related to these groups of countries. out of the 21, only two (doran et al., 2018; korez-vide and tominic, 2016) indicated that global entrepreneurship has a negative or no effect on economic growth. the other nineteen were positive that global entrepreneurship has effect on economic growth but as in the case of the li countries, the extent of the effect is dependent on the country’s level of development (aydogan and sevencen, 2018). entrepreneurial activities are higher here than in hi countries but with lesser corresponding economic growth (sautet, 2011). high income countries these are mainly countries in europe and north america and some of latin america, middle east and asia. they have gni per capital above $12,365. out of the 25 empirical studies analysed, 20 related to these group of countries. only 1 out of the 20 (korez-vide &tominic, 2016) indicated that global entrepreneurship has no effect on economic growth while the other 19 were positive that there is an effect. the studies also confirmed that the effect of global entrepreneurship on economic growth in hi countries is higher than in the mi and li countries (sautet, 2011; aydogan and sevencen, 2018; ermal, et al., 2018). this follows their higher level of educational and technological development and their more favorable broader business environment (korezvide and tominic, 2016). it is an established fact that entrepreneurship in economies with highest level of knowledge and technological development present higher economic growth (rico and cabrer-borras, 2019) because they are more innovative, globalised and growth focused than those of mi and li economies (doran et al., 2018). based on the empirical evidence provided by the results of this study linking global entrepreneurship to economic growth in part one of this section and the various other literature confirming the effectiveness of global entrepreneurship in part two of this section, this study positively affirms the central research question that global entrepreneurship has been an effective tool for economic growth. recommendations a lot more empirical research is required in this emerging discipline of entrepreneurship in a global context and should be encouraged by both practitioners and various governments and research institutions with a view to generating relevant public policies that will encourage and facilitate global entrepreneurial activity given its established link to economic growth. it will also generate the various theoretical lens required to better define the domain of the discipline. it is very important for the research community to understand how and why entrepreneurship in the global context differs across countries, regions and continents. accordingly, more research covering a broader perspective should be conducted in the li and lower mi countries to better understand the plurality of business cultures and environments with a view to generating policies that can narrow the gap in their economic growth relative to the hi countries. based on the findings of this study, researchers and practitioners should collaborate to fully understand and document the technological, governance and other changes required to positively transform entrepreneurship and innovation activities in a global context. this will help to avoid the present situation where modern global entrepreneurship is developing in an uncoordinated manner. egboga, i., zubairu, u. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 118 to the extent that li and lower mi countries’ entrepreneurial activities do not yield the desired economic growth due to a less favourable business environment, this study recommends policy makers should endeavor to create a more favourable business environment to enhance economic growth. this can be done through improved infrastructural development, human and financial capital development, appropriate trade policies, good quality standards, elimination of corruption and of all restrictive government policies that are inimical to entrepreneurship in these countries. one of the reasons why entrepreneurial activities in li and mi countries do not translate to economic growth as much as in hi countries is not doing the right type that counts in gni computation. accordingly, the study proposes that governments in li and mi countries should create the necessary awareness and promote an entrepreneurial culture of the right kind. ensuring access of their adult population to basic technological skills, information and specialized knowledge relating to global entrepreneurship through learning programs is highly recommended if their entrepreneurial activities must become fully effective as a tool for economic growth. conclusion a lot more empirical research is required in this emerging discipline of entrepreneurship in a global context and should be encouraged by both practitioners and various governments and research institutions with a view to generating relevant public policies that will encourage and facilitate global entrepreneurial activity given its established link to economic growth. it will also generate the various theoretical lens required to better define the domain of the discipline. it is very important for the research community to understand how and why entrepreneurship in the global context differs across countries, regions and continents. accordingly, more research covering a broader perspective should be conducted in the li and lower mi countries to better understand the plurality of business cultures and environments with a view to generating policies that can narrow the gap in their economic growth relative to the hi countries. based on the findings of this study, researchers and practitioners should collaborate to fully understand and document the technological, governance and other changes required to positively transform entrepreneurship and innovation activities in a global context. this will help to avoid the present situation where modern global entrepreneurship is developing in an uncoordinated manner. to the extent that li and lower mi countries’ entrepreneurial activities do not yield the desired economic growth due to a less favourable business environment, this study recommends policy makers should endeavor to create a more favourable business environment to enhance economic growth. this can be done through improved infrastructural development, human and financial capital development, appropriate trade policies, good quality standards, elimination of corruption and of all restrictive government policies that are inimical to entrepreneurship in these countries. one of the reasons why entrepreneurial activities in li and mi countries do not translate to economic growth as much as in hi countries is not doing the right type that counts in gni computation. accordingly, the study proposes that governments in li and mi countries should create the necessary awareness and promote an entrepreneurial culture of the right kind. ensuring access of their adult population to basic technological skills, information and specialized knowledge relating to global entrepreneurship through learning programs is highly recommended if their entrepreneurial activities must become fully effective as a tool for economic growth. egboga, i., zubairu, u. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (112-121)  how effective has global entrepreneurship been as a tool for economic growth?  https://doi.org/10.21009/jobbe.004.1.08 https://en.oxforddictionaries.com https://en.oxforddictionaries.com 24 abstract the purpose of this research is to understand comprehensively on the implementation of corporate success as a tool for the business world for formulating company policies that are very useful in the field of human resource management, by applying determinant variables that have a large influence consisting of succession managemen, performance employee and corporate success. the sample that was studies was 365 employees from the total population of all pt pisma group employees which was divided into 5 subsidiaries engages in the field of integrated textile, garment, trading, hospitality & property as many as 4,204 employes were carried out in three company location: semarang, pekalongan and surabaya, using the questionnaire method in testing the data generated is valid and reliable. data analysis techniques use quantitative methods with path analysis methods. this study concludes that corporate success is directly related to the existence of succession management and employee performance. succession management requires that employee performance against the company be clear and measurable and cannot stand alone. employee performance appraisal must be consistent and integrated with well-agreed succession management, so that the company is able to get reliable and prospective professional company leaders are able to support the company in the future to be very competitive, to the desired company suckeywords: succession management, performance employee, corporate success, sample criteria, pt pisma group. received: 11 july 2020 ; accepted: 10 august 2020 ; publish; december 2020 how to cite: syahrial, i., supriyati, y., & sujanto, b. (2020). the influence of succession management and performance employee to corporate success (analysis in pt prisma group). journal of business and behavioural entrepreneurship, 4(2), 24-35. https:// doi.org/10.21009/jobbe.004.2.03 the influence of succession management and performance employee to corporate success (analysis in pt prisma group) irzan syahrial email: irzansyahrial@gmail.com universitas negeri jakarta yetti supriyati universitas negeri jakarta bedjo sujanto universitas negeri jakarta https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 25 introduction developing a company business is not an easy job, it takes a long period of time continuously for the next few years, decades or even generations. corporate success shows without good employee performance that has a close relationship in the formation of a succession of all managerial layers in a well-planned company it is impossible to make a business successful. employee performance provides a clear picture of the organisation's targets both short and long term. employee performance must be given a standard of performance so that employees can provide new ideas in business and provide challenges for the company to answer and be able to provide performance that is used as a measurement of career development so that the succession of all levels of employees can make a positive contribution to the organisation. with employee performance appraisal and correct succession management, productivity can be assessed in accordance with the business received by all employees in accordance with the value of performance achievement. the quality management system that has been running at pt. pisma group is an iso 9001: 2000 management system. employee performance appraisals conducted so far have not answered all organisational factors, because there is no evaluation of employee productivity, frequent delays in decision making by management, low motivation of employees in work and companies are unable to compete and adapt to technological and information advancements and their results. improving performance appraisals which are done only limited to the appraisal without any employee performance appraisals continuously in the company to find out the success of the business to determine priorities improvement. based on the background of the problems that have been raised, it is deemed necessary to conduct research on the effect of succession management, employee performance, and corporate success. based on the background that has been explained above, the authors identify the problems that exist in this study related to the problem of corporate success. the problem of corporate success activities will in turn be able to produce employee competent who to be dedicated to the organisation, satisfied with their work and have high productivity. given the factors identified above, many things can be explored for research studies. these studies include: (1) does leadership directly influence corporate success, (2) does human resource planning directly influence corporate success, (3) does a customer focused approach directly influence corporate success, (4) does measurement analysis directly influence corporate success, (5) does succession management directly affect corporate success, (6) does a workforce focused approach directly affect corporate success, (7) does an operation focused approach directly affect corporate success, (8) does knowledge management directly affect corporate success, (9) does the focus on results and value creation directly influence corporate success, (10) does the perspective system directly influence corporate success. in order to make this research more directed, focused and not widespread, the author limits the scope of the discussion by not discussing all the variables that can affect corporate success, but is directed specifically and limited to two factors, namely: (1) succession management and (2) employee performance. the next limitation relates to research subjects which are limited to employees only about the influence between succession management, employee performance and corporate success at pt pisma group. based on the formulation of the problem, this study has the following uses: syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 26 1. academic benefits. research is intended as a medium of scientific information for educational institutions, can be used as a reference for developing science as a very useful in the field of standardisation of employee performance and succession management towards corporate success 2. practical benefits. a. can be used as material for assessment and information for companies about whether succession management and employee performance can be used as material for organisational leaders in its implementation of realising the company's vision and mission towards corporate success. b. the results of this study are expected to provide input to business practitioners in order to get a picture of the direct influence of succession management, employee performance and corporate success. so that it can provide meaningful input for improving the company's performance as one of the considerations in formulating company policy. literature review corporate success corporate success is a process of evaluating the company's operational activities in the form of actions and activities of an organisation in a certain period in accordance with the objectives set. in other words, corporate success is an assessment of the level of effectiveness and efficiency of an organisation's activities. the main purpose of corporate success is to motivate personel in achieving organisational goals and in meeting predetermined standards of behavior, so as to produce actions and results desired by the organisation. tulus (tulus, 2002) defines the factors that influence corporate success can be known from two factors namely internal factors and external factors. internal factors include the quality of human resources, organizational mastery, organizational structure, management systems, participation, business fields, capital strength, business networks with outside parties, and the level of entrepreneurship.while external factors can be divided into two, namely government and non-government factors. government factors include economic policies, bureaucrats, politics, and the level of democracy. non-government factors include the economic system, the socio-culture of the community, the labor system and labor conditions, the condition of the infrastructure, the level of public education, and the global environment. primiana (primiana, 2009) opinions means that corporate success has been fulfilled capital, productive distribution and the achievement of organizational goals. while faizal (faizal, 2007) argues corporate success is defined as the success of a business achieving its goals, a business is said to be successful when it makes a profit, because profit is the goal of someone doing business. whereas noersasongko (noersasongko, 2005) corporate success is defined as the performance of a company that can be formulated through a comparison of the value produced by the company with the expected value by utilizing the available resources. then the dimensions of corporate success according to riyanti (riyanti, 2003) used for this study include an increase in capital accumulation or an increase in capital, the amount of production, the number of customers, business expansion, expansion of marketing areas, improvement of physical facilities and business income. based on the conceptual description above, it can be synthesized that corporate success is the success of the business achieving its goals, where success is obtained syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 27 from entrepreneurs who have an intelligent brain that is creative, follows technological developments, can apply proactively and look a better business situation than the period before and describe more than others of the same level or class.. succession management leabman (leabman, 2016) preparing individuals for future positions, especially in a fast-spinning world is widely known to be important for the corporate success. understanding succession according to rothwell (rothwell, 2018) is an unavoidable event in a company's business. companies are required to be able to realize the succession from the first generation to the next generation. succession management ensures the continuity of the company to survive, grow and make a profit. coruso (coruso, 2018) defines succession management as a systematic and purposeful effort made by organizations to continue leadership, master and develop scientific and intellectual capital, human resource development and business growth. succession management has a critical role in achieving organizational effectiveness. rapid change and high competition in the global market requires competitive and able human resources to survive. thus activities are needed that can integrate skills and knowledge for human resource planners and all executives responsible for strategic planning. the succession program according to jackson (jackson, 2010) is a complex system designed to maintain the welfare of the organization. key activities in succession management identify workers who have high potential, identify the competencies needed and provide learning experiences to develop employee competencies. succession programs can be developed in several components of selection procedures, development plans, mentorship, systematic reviews of performance, and career planning that involve employees. the decision to change the strategy needed in a long-term perspective and its success depends on changing the work environment to support changes in employee behavior. evaluation in this succession program emphasizes the ability to predict individual outcomes as career progress has been achieved and satisfaction with his career. in succession management, long-term efforts must be made in accordance with the level of importance in a balanced manner. long-term implementation design must have a strong link between long-term human resource planning and human resource strategies and practices. much of the knowledge of how to develop and improve longterm human resource programs is generalized through trial and error rather than systematic research. however, knowledge about the development and improvement of human resources has been carried out intense research with wide-scale data on the management planning and succession management systems that are ongoing. corporate success according to walker (walker, 2004) is when getting a successful leader brings the company to a better rank in similar industries and all of that is needed succession management and the larger the company is managed, the harder it is for managers to find out who the employees are the most good or best people in the company. robb (robb, 2006) further argues that a company that fails in implementing succession, actually loses the moment of talent wars which results in the failure of business competition. success in managing succession management will be able to increase company productivity and obtain a higher rate of return that is beneficial to investors. according to torres (torres, roselindo & pasmore, 2005) to do all that must be followed by an objective assessment, careful and careful process, attention to rational, political, and some emotional elements in the process of succession. hollinsworth (hollinsworth, 2004) explains that programs related to leadership development syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 28 are fundamental factors for the process of implementing succession management. on the other hand there is the opinion of byham (byham, 2001) which states that although succession management is a good succession process, it must still be followed by a continuous control function, bearing in mind that succession management is part of long-term human resource planning. in the leadership process the use of succession management without being followed by attention to short-term issues will get more benefits, and the weakness lies in human error in the application of its implementation. based on the conceptual description above, it can be synthesized, sucession management is a systematic process of a series of activities carried out by the company to continue leadership, mastering and developing science and intellectual capital in order to prepare and ensure the sustainability of the company through generations. employee performance widodo (widodo, 2014) believes employee performance is part of the results of employee work both in terms of quality and quantity based on predetermined work standards. as for the opinions of experts regarding the notion of performance, as follows: a. according to mangkunegara (mangkunegara, 2009) stated that performance is the work of quality and quantity achieved by an employee in carrying out their duties in accordance with the responsibilities given to him. b. meanwhile, according to sedarmayanti (sedarmayanti, 2013) revealed that performance is a translation of performance which means the work of an employee, a management process or an organization as a whole, where the results of the work must be able to show concrete and measurable evidence (compared to standards) predetermined). c. according to wibowo (wibowo, 2016) stated that performance is about doing work and the results achieved from the work according to whitmore (whitmore, 2007) performance is a condition that must be known and confirmed to certain parties to determine the level of achievement of an agency's results associated with the vision carried out by an organization or company and to know the positive and negative impacts of an operational policy. the term performance or performance according to hertz (hertz, 2012) refers to results and something that results from processes, products and services that can be evaluated and compared relatively with the objectives, standards, past results. understanding performance appraisal according to mulyadi (saputra, 2008) suggests that performance appraisal is a periodic determination of the operational effectiveness of an organization, organizational units and employees based on predetermined standard targets and criteria. performance appraisal is a part of the strategy management process that can provide comprehensive strategy information for decision makers. while saputra (saputra, 2008) defines performance appraisal as a measurement measure taken on various activities in the value chain that exist in the company. while the measurement results are then used as feedback that will provide information about the achievement of the implementation of a plan and the point at which the company requires adjustments to planning and controlling activities. widodo (widodo, 2014) is of the opinion as long as employees work in an organization regularly it is necessary to evaluate their performance. performance appraisal is an evaluation of a person's performance level compared to predetermined performance standards, for consideration in determining promotion, compensation, the syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 29 need for training or development, as well as for someone's dismissal. the results of the performance appraisal are effective feedback information as material for making adjustments for various strategic aspects of business management going forward. based on the conceptual description above, it can be synthesized that employee performance is the result of employee work both in terms of quality and quantity based on work standards set by the organization to be achieved. research methods this research uses a quantitative approach with a survey method through path analysis techniques with the help of the spss program. the variables of this study are succession management (x1), employee performance (x3), and corporate success (y), the direct effect between the variables mentioned above can be described in the following correlation model: in this study the population was all employees in the pisma group, totaling 4,204 people. the sampling technique was taken by proportional random sampling, using the slovin formula according to husien umar (umar, 2009) as follows: n = = 4204 / (1 + (4204 (0.05) 2 )) = 365 persons data technique collection is done by using research instruments in the form of a questionnaire compiled by a team of researchers under the guidance of the promoter. the statements in the survey questionnaire are closed question types using a likert scale with a value of 1 to 5, the instruments in this study consist of 3 (three) types, each instrument about (1) succession management, (2) employee performance, and (3) corporate success. all instruments took the form of questionnaires. technique scoring as above uses a likert scale model. data analysis was performed using statistics with path analysis techniques. descriptive analysis is used to present data, data size, central size, and size of distribution. presentation of data includes distribution lists and histograms. the central size includes the mean, median, and mode. the size of the spread is in the form of variances and standard deviations or standard deviations. whereas inferential analysis is used to test research hypotheses by using path analysis through the analysis requirements test, namely normality and linearity test with spss 22 program tools. syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 30 statistical hypothesis testing the statistical hypothesis that will be proven in this study as follows: 1. succession management (x1) positive effect directly on corporate success (y) ho: there is no positive influence between succession management (x1) and corporate success (y) h1: there is positive influence between succession management (x1) and corporate success (y) 2. employee performance (x2) positive effect directly on corporate success (y) ho: there is no positive influence between employee performance (x2) and corporate success (y) h1: there is positive influence between employee performance (x2) and corporate success (y) 3. succession management (x1) positive effect directly on employee performance (x2) ho: there is no positive influence between succession management (x1) and employee performance (x2) h1: there is positive influence between succession management (x1) and employee performance (x2) result and discussion this study consists of three variables, with details: two exogenous variables and one endogenous variable. exogenous variables are employee performance and succession management, while endogenous variables are corporate success. to get an overview of the research data of each variable, the following will be presented research data through descriptive statistics, namely the frequency distribution of each variable. corporate success based on the data processing using the spss program on corporate success variables are presented in table 4 below: table 1. corporate success statistics descriptive statistics table 1 of the data generated by the sample amounted to 365 respondents, with a minimum value of 103 and a maximum of 132 with mean of 119.19, variance 36.637, standard deviations of 6.053 and class length (range) of 29 . n ran ge minimum maximum mean std dev variance statistic statistic statistic statistic statistic std error statistic statistic corporate success valid n (listwise) 365 365 29 103 132 119.19 .317 6.053 36.637 syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 31 succession management based on the data management carried out by using the spss program on the succession management variable, the data is obtained as follows: table 2. succession management statistics descriptive statistics table 2 of the data generated by the study sample totalled 365 respondents, with a minimum value of 105 and 138 to 150, with mean of 122.39, variance 13.948, the standard deviation of 3.735 and length classes (range) of 33. employee performance based on data management carried out using the spss program on variables data obtained as follows: table 3. employee performance statistics descriptive statistics table 4 of the data generated by the study sample totalled 365 respondents, with a minimum value of 111 and a maximum of 138, with mean of 125.55, variance 35,342, standard deviation of 5,945 and class length (range) of 27 based on the results of testing of hypotheses and path coefficients, a recapitulation table for testing hypotheses and path coefficients is compiled, as presented in table 8 below. n ran ge minimum maximum mean std dev variance statistic statistic statistic statistic statistic std error statistic statistic succesion management valid n (listwise) 365 365 33 105 138 122.39 .195 3.735 13.948 n range minimum maximum mean std dev variance statistic statistic statistic statistic statistic std error statistic statistic employee performance valid n (listwise) 365 365 27 111 138 125.55 .311 5.945 35.342 syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 32 table 4. recapitulation of research hypothesis testing results conclusion and recommendation conclusion from the results of the research and discussion, then based on this the following conclusions can be drawn: 1). succession management has a direct positive influence on corporate success. this means that an increase in succession management led to an increase in pt. pisma group's corporate success, 2). employee performance has a direct positive influence on corporate success. this means that an increase in employee performance led to an increase in pt. pisma group's corporate success and 3). succession management has a direct positive influence on employee performance. this means that an increase in succession management causes an increase in the performance of the employees of pt. pisma group. recommendation based on the description and assessment in the above, several suggestions were submitted, namely: 1). companies need to make research designs on a regular basis to be able to identify the process of selecting high potentials and employee development no hypothesis test statistics coefficient path analysis tcount decision 1 succesion management (x1) has a direct positive influence on corporate success (y) h0: there is no direct positive influence between x1 and y h1: there is direct positive influence between x1 and y pyx1= 0.709 19,173 h0 rejected, the meaning x1 direct positive influence to (y) 2 human resource planning (x2) has a direct positive influence on corporate success (y) h0: there is no direct positive influence between x2 and y h1: there is direct positive influence between x2 and y pyx2= 0.842 29,782 h0 rejected, the meaning x2 direct positive influence to (y) 3 succession management (x1) has a direct positive influence on human resource planning (x2) h0: there is no direct positive influence between x1 and x2 h1: there is direct positive influence between x1 and x2 px2x1= 0.863 1,668 h0 rejected, the meaning x1 direct positive influence to (x2) syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 33 in order to facilitate the placement of key positions of the company by applying succession management patterns to improve corporate success. one pattern of succession management carried out by company leaders should involve elements in the organisation that involves employees so that they are also responsible for the input they propose if the proposal becomes part of the decision taken. thus, employees are also required to carry out their responsibilities in carrying out the decisions taken, 2. organisational commitment and work motivation of employees need to be grown by the leadership of the company so that employees feel they have the company where they work. with high work commitment and motivation they will continue to fight for the interests of the company and encourage the carrying out of tasks so that this will have an impact on improving employee performance. besides giving awards and bonuses, it should distinguish between those employees who have low work motivation and those who have high work motivation, done fairly and correctly, so that employees are more precise in making decisions in carrying out work so that it has an impact on increasing corporate success and 3). companies need to do the design pattern of learning succession management, so that managers are able to make adjustments to the pattern of succession management in accordance with the situation faced by employees by assessing the working position in the future, which is done by assessing the work and the requirements of competence in leadership positions in the future. decision makers must try to assess future work requirements and competencies to be aligned with the strategic direction of the organisation. future leaders must prepare ways to cope with changes and strategic objectives of the organisation. the company always assesses employee performance against prospective successors from the contributions made. references aishah, nor buang, ganefri., & sidek, saliza. 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(2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 35 wibowo .(2016). manajemen kinerja edisi kelima. jakarta: rajawali pers. widodo, hadi teja, & harjanti, dhyah. (2014). analisis proses suksesi dan dampaknya terhadap kinerja perusahaan di pt lestari purnama perkasa: agora vol. 2, no..2: feb, jurusan manajemen, universitas kristen petra surabaya. syahrial, i., supriyati, y., & sujanto, b. (2020). journal of business and behavioural entrepreneurship, 4(2), 24-35 the influence of succession management and performance employee to corporate success (analysis in pt prisma group). https://doi.org/10.21009/jobbe.004.2.03 https://doi.org/10.21009/jobbe.004.2.01 1 abstract this study specifically discusses the relationships between consumers’ environmental concern, attitude, subjective norms, perceived behavioral control, and their behavioral intention toward “green” restaurant. such a study is important because behavioral intentions towards “green” practice in the restaurant industry is still an under-explored topic in the literature, despite the “green” trend. this study adopted theory of planned behavior as the theoretical framework with additional environmental concern construct as antecedent. the findings from this research illustrate that customer’s environmental concern has a positive influence with behavioral intention toward “green” restaurant especially indirectly through attitude and perceived behavioral control. this study recommends that this topic of research needs to be explored more to understand the “green” restaurant customers and to develop marketing strategies to promote “green” restaurant in indonesia. keywords: consumer’s behavioral, green restaurant received: 12 february accepted: 5 may 2020; publish; december 2020. how to cite: zahra, a.t., hijrah hati, s.r. (2020). consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia. journal of business and behavioural entrepreneurship, 4(2), 1-12. https://doi.org/10.21009/jobbe.004.2.01 consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia athaya tsamara zahra universitas indonesia email: athaya.tsamara81@ui.ac.id sri rahayu hijrah hati universitas indonesia 2 introduction nowadays, the society has become more concern about the environment and considered environmental protection as their responsibility (euromonitor, 2015; hsu, chang, & yansritakul, 2017). millennials are very concerned about the environment’s problem and corporate’s responsibility, therefore they are more likely to buy from company that engage in social and environmental sustainability (kotler, bowen, makens, & baloglu, 2017). environmental concern (ec) is a term used for the whole range of environmentally related perceptions, emotions, knowledge, attitudes, values and behaviors (bamberg, 2003). several previous researches have shown that ec can affect behavioral intention toward sustainable product or services. (paul, modi, & patel, 2016), prove that ec has positive and significant effect on green product purchase intention directly and more significantly through theory of planned behavior (tpb) construct. similarly, (chen & tung, 2014) study shown that consumers will form a more favorable attitude toward visiting green hotels if they have a high level of environmental concern, therefore they will be more likely to visit green hotel. the restaurant industry has big impact on the environment (tan et al., 2018). restaurants drain resources by using excessive energy, non-recycled products, hazardous chemicals as cleaning agents, and increasing carbon footprint through product transportation to restaurant locations (dipietro & gregory, 2013). even so, “green” practice in the restaurant industry is still an under-explored topic in the literature, despite the “go green” trend. (kim, lee, & fairhurst, 2017; myung, mcclaren, & li, 2012). myung et al., 2012 reviewed 58 articles on green practices published between 2000 and 2010 in 25 hospitality journals. only 6 articles out of 58 were about restaurant. similarly, kim, lee, & fairhurst, 2017 found only 15 articles out of 146 articles on green practices published between 2000 and 2014 in 8 hospitality journals were covering the restaurant industry. empirically, consumers from developed countries have higher environmental concern than those who are from developing countries (paul et al., 2016). previous researches had utilized the extended tpb (with environmental concern) to explain consumers’ behavior in developing nations with different context: paul et al. (2016) studied green product purchase intention in indian context. meanwhile albayrak et al. (2013) investigated consumers’ intention to subscribe e-invoice in turkey. this study attempts to investigate consumer’s behavioral intention toward “green” restaurant in the context of developing country (indonesia) using the theory of planned behavior (tpb) with environmental concern as the antecedent. literature review green restaurant and green context green restaurant is defined as “new or renovated structures designed, constructed, operated, and demolished in an environmentally friendly and energy-efficient manner” (lorenzini, 1994 in (hu, parsa, & self, 2010)). meanwhile, according to (schubert et al., 2010), “green” restaurant is any restaurant that actively engage in “green” practices. similarly, jang et.al (2011) defined “green” restaurant as restaurant that implement “green” practices including recycle and compost making, water and energy efficiency, waste management, and offering organic and locally-sourced menu. the term “green” can be used interchangeably with “eco-friendly” “sustainable”, or zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 3 “environmentally friendly”, meanwhile all these terms explain all forms of activities that are good for the environment (ham & han, 2013; manaktola & jauhari, 2007). green practices have become a major concern in the restaurant industry as a means to increase social benefits and to sustain business in the long run (ms & parsa, 2006). in the hospitality industry, the practice of "green" has many understandings of various approaches. according to (manaktola & jauhari, 2007), lodgings that implements "green" practices are those who committed to carrying out environmentally friendly practices such as saving water, saving energy, and reducing solid waste. according to (myung et al., 2012), the practice of "green" aims to minimize the impact on the environment by implementing practices to reduce waste and to use sustainable resources and supplies. "green" practice according to (dipietro & gregory, 2013) is anything that an organization can do to minimize the carbon footprint and the negative impact that an organization can have on the environment. on this study, the term “green” restaurant is in accordance to (schubert et al., 2010) definitions, “any restaurant that actively engage in “green” practices”. whereas the "green" practices that can be done by restaurants include energy and water efficiency, reducing and recycling waste, offering local or organic food menus, participating in environmental protection programs, not using hazardous chemical products, and using reusable equipment (dipietro & gregory, 2013; jang et al., 2011; schubert et al., 2010). environmental concern over the years, environmental concern has been the subject of research from various academics and marketing practitioners (albayrak, 2013). environmental concern (ec) refers to the degree of people's awareness of environmental problems and supports efforts to resolve them and / or shows a willingness to contribute personally to give solutions (dunlap & michelson, 2002). according to (bamberg, 2003), ec is a term used for the whole range of environmentally related perceptions, emotions, knowledge, attitudes, values and behaviors (bamberg, 2003). the relationship between ec and behavior has been explored in various contexts. several studies show that there is a relationship between consumers’ environmental concern with environmentally friendly behavior, both directly and indirectly through the theory of planned behavior constructs (attitude, subjective norm, and perceived behavioral control) (albayrak, 2013; bamberg, 2003; paul et al., 2016). previous research (albayrak, 2013) in the context of e-invoice’s shows that ec is a determinant of consumer behavior who are sensitive to the environment, and positively influences consumer behavior. (bamberg, 2003) study shows that participants with higher ec level are more likely to use the offered brochure about ‘green’ electricity products. meanwhile, studies paul et al. (2016) show that ec has a significant and positive influence on the environmentally friendly product purchase intention both directly, and more significantly through variable theory of planned behavior. h1: environmental concern has positive effect on attitude h2: environmental concern has positive effect on social norm h3: environmental concern has positive effect on perceived behavioral control h4: environmental concern has positive effect on behavioral intention zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 4 theory of planned behavior (tpb) theory of planned behavior (tpb) is an extension of theory of reasoned action. previous theories have limitations related to behavior where people have nonvolitional control. the central factor in tpb is the intention of individuals in carrying out a certain behavior. intention is assumed to capture the motivational factors that influence behavior. these factors can indicate how much people are willing to try, or how much effort they are planning, to carry out a behavior. as a general rule, the stronger the intention to perform a behavior, the more likely the behavior is carried out (ajzen, 1991). tpb postulates three independent determinants of behavioral intention, attitude, subjective norm, and perceived behavioral control. attitude is the degree to which a person has a favorable or unfavorable evaluation of the specific behavior. subjective norm is the perceived social pressure to perform or not to perform the behavior. perceived behavioral control is people’s perception of the ease or difficulty of performing the behavior of interest (ajzen, 1991). behavioral intention is one’s affirmed likelihood to perform a certain action. (oliver (1997) cited in (han, hsu, & lee, 2009)). intention is considered as precursor to and best predictor of behavior (ajzen, 2002). these intentions include the intention or willingness of consumers to repurchase services or products from a company, recommend the company (or say good things about the company), or are willing to pay a premium price (namkung & jang, 2007; zeithaml, berry, & parasuraman, 1996). in this study, behavioral intention refers to the likelihood of "green" restaurant consumers towards revisiting intention of "green" restaurants (han et al., 2009). revisit intention itself is the perceived likelihood of coming back to the same destination, which is a favorable post consumption behavior (seetanah, teeroovengadum, & nunkoo, 2018). in several studies with different contexts, these three determinants have different impacts on behavioral intention. in the study (paul et al., 2016), of the three tpb variables, attitude was found to be the strongest predictor of environmentally friendly product purchase intention, followed by perceived behavioral control. almost similar results were found in the study (yadav pathak, 2016) in the context of organic food. but, the subjective norm was found to have no effect on organic food purchase intention. studies (nimri, patiar, kensbook, & jin, 2019) in the context of environmentally friendly hotels show that perceived behavioral control has the most influence in determining the intention to stay in "green" hotel, compared to other tpb constructs. studies (raab, baloglu, & chen, 2018) also show restaurant managers tend to implement environmentally friendly practices due to the influence of subjective norms and perceived behavioral control, but not significantly influenced by attitude. h5: attitude has positive effect on behavioral intention h6: social norm has positive effect on behavioral intention h7: perceived behavioral control has positive effect on behavioral intention zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 5 no index standard value value obtained information 1 p ( 2 ) > 0.05 0.00 not fit 2 rmsea < 0.08 0.17 not fit 3 gfi > 0.90 0.64 not fit 4 agfi > 0.90 0.55 not fit 5 nfi > 0.90 0.96 good fit 6 nnfi > 0.90 0.94 good fit 7 cfi > 0.90 0.97 good fit 8 ifi > 0.90 0.97 good fit 9 rfi > 0.90 0.93 good fit zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 6 fig 1. theoretical framework research method this study is using quantitative method. quantitative research is a research methodology that attempt to quantify the data and usually applies some statistical analysis (malhotra, 2010). current study also uses primary data. primary data is the data originated by the researcher for particular purpose to address the research problem (malhotra, 2010). the data was collected with online, self-administered questionnaire. the questionnaire was disseminated with purposive sampling using google form. the respondents were the one who had been to the “green” restaurant and also aged between 17 – 33 years old (millennials according to solomon, (2017)). before the questionnaire was disseminated, wording test and pretest with similar target respondents as main test had been done. after the pretest and the main test, statistical analysis was done with cb-sem to analyze the measurement and structural models. cb-sem was used because the theoretical model consisted of five constructs, which have reflectively measured indicators (wijanto, 2015). characteristic of the sample the respondents were both female and male who had been to the “green” restaurant aged 17-33 years. this particular age group is considered as millennials (solomon, 2017). millennials are very concerned about the environment’s problem and corporate’s responsibility, so they are more likely to buy from company that does “green” practice (kotler et al., 2017). even more, millennials were raised with the three r mantra (reduce, reuse, recycle), according to (thieme, royne, levy, & mcentee, 2015), 91% of the consumers stated if they don’t switch to more environmentally friendly purchase behavior, the future generations will be suffering. millennials are also targeted by the restaurant owner since they don’t cook their own food (euromonitor, 2019). the number of samples used in this study is 412 respondents. according to (hair jr., black, babin, & anderson, 2014), models with seven or fewer constructs, lower communalities, and/ or having fewer than three measured items, the minimum sample is 300. the study used measurement scales that have been validated in earlier studies. we measured environmental concern with 3-item, 7-point likert type scale based on paul et al. (2016). a 3-item, 7-point likert type scale was operationalized to measure attitude towards revisiting “green” restaurant, based on paul et al. (2016). a 4-item, 7point likert type scale was used to measure subjective norms, based on paul et al. zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 7 (2016). we measured perceived behavioral control with 5-item, 7-point likert type scale based on paul et al. (2016). a 2-item, 7-point likert type scale was used to behavioral intention, based on (ryu, lee, & kim, 2012). result and discussion in this study, data analysis was carried out using sem with two-step approach, measurement model analysis (confirmatory factor analysis) and structural model analysis. 1. measurement model analysis (cfa) the final result of the cfa model is obtained through the assessment of goodness-of-fit of the overall model, as well as the analysis of the model's validity and reliability. assessment of goodness-of-fit (“gof”) was made by multiple indicators: statistic chi-square (χ2), root mean square of error approximation (rmsea), standardized root mean square residual (srmr), goodness-of-fit index (gfi), adjusted goodness-of-fit index (agfi), normed fit index (nfi), non-normed fit index (nnfi), comparative fit index (cfi). the model fit is good when the indices ≥ 0.90, χ2 ≥ 0.5, rmsea ≤ 0.08, and srmr ≤ 0.05. all the gof statistics were in the acceptable limit, with the exception of χ2, srmr, and agfi that were very close to the limit. χ2 = 0, srmr = 0.06, and agfi 0.90. all the data is shown in the table 2. table 2. goodness of fit analysis of the validity of the measurement model is done by checking whether the standardized loading factor (λ) of the observed variables in the model is more than 0.5. all the items in this study were in the acceptable limit of > 0.5 (all the data is shown in table 2). it shows that all the items have good validity. meanwhile the reliability analysis of the measurement model is done by calculating the value of construct reliability (cr) and variance extracted (ve) from the value of standardized loading factors and error variances. according to (hair jr. et al., 2014), a construct with cr ≥ 0.70 and ve ≥ 0.50 is a construct with good reliability. all constructs in this study were in the acceptable limit (all the data is shown in table 2). goodness of fit measurement indices statistic chi square (p-value ≥ 0.05) marginal fit rmsea (≤ 0.08) 0.075 0.062 good fit nfi (≥ 0.90) good fit nnfi (≥ 0.90) good fit cfi (≥ 0.90) good fit ifi (≥ 0.90) good fit rfi (≥ 0.90) good fit srmr (≤ 0.05) 0.078 marginal fit gfi (≥ 0.90) good fit agfi (≥ 0.90) 0.9 good fit zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 8 table 3. model construct, reliability and validity constructs measurement items loading cr ave environmental concern i am very concerned about the environment. 0.87 0.74 0.5 i would be willing to reduce my consumption to help protect the environment. 0.69 major social changes are necessary to protect the natural environment. 0.51 attitude i like the idea of purchasing green. 0.84 0.88 0.71 purchasing green is a good idea. 0.88 i have a favorable attitude toward purchasing green version of a product. 0.81 social norm most people who are important to me think i should purchase green products when going 0.87 0.9 0.69 most people who are important to me would want me to purchase green products when going for purchasing. 0.89 people whose opinions i value would prefer that i purchase green products. 0.88 perceived behavioral control my friend’s positive opinion influences me to purchase green product. 0.66 0.89 0.62 i believe i have the ability to purchase green products. 0.79 if it were entirely up to me, i am confident that i will purchase green products. 0.81 i see myself as capable of purchasing green products in future. 0.85 i have resources, time and willingness to purchase green products. 0.78 there are likely to be plenty of opportunities for me to purchase green products. 0.71 behavioral intention i would like to come back to this restaurant in the future 0.92 0.71 0.57 i would consider revisiting this restaurant in the future 0.54 zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 9 2. structural model analysis the structural model exhibited good fit to the data with the exception of χ2 and srmr that were marginal fit (χ2 = 0, srmr = 0.078). all the data is shown in the table 2. the structural model analysis shows that the path between environmental concern and attitude (t = 12.54), between environmental concern and subjective norm (t = 10.46), between environmental concern and perceived behavioral control (t = 11.27), between attitude and behavioral intention (t = 2.26), between perceived behavioral control and behavioral intention (t = 11.21) were positive and significant. meanwhile the path between environmental concern and behavioral intention (t=0.02) and between subjective norm and behavioral intention (t = 0.58) were insignificant (all the data is shown in table 4). the standardized solution coefficient from the analysis is similar to beta coefficient on multiple regression, that is, coefficient values close to zero indicate a smaller effect. the biggest effect was found on the relationship between perceived behavioral control and behavioral intention (0.78), closely followed by the path environmental concern and attitude (0.7) (table 4). table 4. path analysis discussion our finding shows that ec was found to be significant and positive for attitude, pbc, and subjective norm (from the biggest effect to the lowest consecutively). meanwhile, ec was found to have no direct effect on behavioral intention toward revisit intention to “green” restaurant in indonesia. of these three tpb variables, pbc was found to be the strongest predictor for intention to revisit “green” restaurant, followed by attitude. the findings showed that indonesian consumers cope up really well with the disabling factors during the decision making as the perceived behavioral control emerged as the most significant construct. this finding emphasized the criticality of control perceptions in the formation of individuals’ behavioral intentions (nimri et al., 2019). this particular condition can facilitate and simplify the consumers decision of revisiting “green” restaurant (yadav & pathak, 2017). moreover, ec also influences consumers perceived behavioral control. high ec makes people search for “green” restaurant and do research about the availability options (paul et al., 2016). so, marketers need to focus on communicating the green practice they had done in the restaurant to enhance the perceived availability beliefs and consumers’ convenience. in accordance with previous studies, an increase in favorable attitudes results in an increase likelihood of consumers revisiting "green" restaurants (han & kim, 2010). when consumers have favorable attitude, and show high environmental concern, they tend to do extra effort to protect the environment (paul et al., 2016). that’s why consumers who are highly concerned about environment need to be targeted first as they held positive attitude towards revisiting “green” restaurant. subjective norms did not show significant impact on the revisit intention toward “green” restaurant. this implies that visiting restaurant that hypotheses t-value result h1 ec -> at significant h2 ec -> sn 0.58 significant h3 0.62 significant h4 0.02 0.00 insignificant h5 at -> bi 2.26 0.17 significant h6 sn -> bi 0.58 0.03 insignificant h7 0.78 significant zahra, a.t., hijrah hati, s.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 10 practices green is yet to become social norm in a developing country such as indonesia. this is consistent with previous study (paul et al., 2016; yadav & pathak, 2016). consumers may also feel that approval of “significant others” is not that important for revisiting “green” restaurant. or else, their family/friends/peer group could not provide any positive thrust concerning a reason for buying green products to consumers. marketers need to do campaigns to create awareness of how small movements and day-to-day decision can affect the environment using “opinion leaders” like celebrities, sports star etc. the study has certain limitations that should be addressed in the future studies. this study examined customer’s intention to revisit any “green” restaurant. if the study focused on customer’s behavior in a specific segment of “green” restaurant, the findings (e.g., magnitude of the relationships among variables) would be different and more specific. with self-administered questionnaire, respondents might deliver answers according to how they believe they should behave, not how they actually behave. future researchers can investigate consumers’ actual behavior by observing and/or interviewing in their future studies. conclusion the findings from this research illustrate that customer’s environmental concern has a positive influence with behavioral intention toward “green” restaurant especially indirectly through attitude and perceived behavioral control. this study recommends that this topic of research needs to be explored more to understand the “green” restaurant customers and to develop marketing strategies to promote “green” restaurant in indonesia. reference ajzen, i. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 2 2020 p (1-12)  consumer’s behavioral intention toward “green” restaurant: empirical evidence from indonesia.  https://doi.org/10.21009/jobbe.004.2. 01 84 abstract this study aim to determine and analyze the effect of organizational structure and work motivation on the employe performance at automotive distributor in indonesia. this study use quantitative research method with survey technique to respond the test hypotheses that have been formulated. the respondents are 100 employees, the sampling technique used was sampling random technique. the questionaire of organizational structure and work motivation and employe performance were validated with the product moment correlation formula, while reliability was measured by the alpha cronbach formula. tested of the hypothesis in this study use of the path analysis. the research result of the study found that: (1) the organizational structure affects positively on employee performance (2) the work motivation affects positively on employee performance and (3) the organizational structure affects positively on work motivation. the results of the study show that in the effort to improve the employe performance can be done by the effective of organizational structure and to improve of work motivation. keywords: organizational structure, work motivation, employe performance. received: 12 october 2020 ; accepted: 23 november 2020 ; publish; december 2020 how to cite: situmorang, o., mukhtar, m., yasin, m. (2020). the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. journal of business and behavioural entrepreneurship, 4(2), 84-93. https://doi.org/10.21009/jobbe.004.2.07 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia oloan situmorang universitas negeri jakarta email: oloansitumorang_7647140261@mahasiswa.unj.ac.id mukhneri mukhtar universitas negeri jakarta email: mukhneri@unj.ac.id mahmuddin yasin universitas negeri jakarta email: mahmuddinyasin@unj.ac.id https://doi.org/10.21009/jobbe.004.2.01 85 introduction in an increasingly competitive industrial era, especially the automotive industry, any company that wants to win the competition in the business world will pay full attention to the quality of its human resources. in this case, the employing company has full attention to ensure the logistics partner can support its business well. so that the employing company has a role to ensure that the logistics vendor can run its services efficiently. employees are an important resource for the company, because they have the skills, energy and creativity that are needed by the company to achieve its goals. in a dynamic business environment, by running a business with vendors, each vendor company needs an organizational structure that is able to provide the best performance and is able to develop highly motivated and agile employees in carrying out its business processes. through an optimal organizational structure, high employee motivation, effective decision-making processes will provide value to the organization through performance. pt. toyota-astra motor, the vehicle logistics division (vld) has a role in carrying out vehicle logistics operations, namely handling new vehicles, starting from receiving from factories, installing accessories and distributing vehicles to all dealers in indonesia while maintaining vehicle quality (fresh from the oven) and safe operation (safety operation) for all stakeholders. various functions of business unit activities in the logistics division. in carrying out its roles and responsibilities, vld partners with logistics vendors / suppliers to carry out some of its functions. internally, vld is always built on the toyota way philosophy. the toyota way is all about tacit knowledge. tacit knowledge is knowledge gained from experience and reflection, not from reading recipes. the two pillars of the toyota way are respect for people and continuous improvement. each pillar is translated into cultural values that are applied daily, especially in the innovative behavior of every employee who supports toyota's business. marchet et.al (2017) stated that “third party logistics (3pl) providers are primarily required to perform services that add value to the shippers business than the shippers can accomplish on their own. this value can be taken in different perspectives and includes principle aspects. so that researchers have an interest in conducting research on the vendor employee analysis unit. " from the results of evaluating the performance of existing vendors, there are still not optimal achievements, such as on time delivery of new vehicles from the factory to the dealer (on time delivery), and defects in new vehicles (damage ratio) during the process. delivery of new vehicles. the performance of vendor employees has an important role to play in supporting company performance, which in turn will have an impact on vld performance. many factors influence employee performance, including organizational structure and work motivation. ivancevich (2011) states that performance is a set of employee jobs related to behavior in accomplishing organizational goals. gibson et al. (2012), view that performance is the level of success in carrying out tasks and the ability to achieve predetermined goals. employee performance, according to gomes (2003) can be successful at work includes: (1) quantity of work: (2) quality of work, (3) job knowledge, (4) creativeness, (5) cooperation, (6) dependability,, (7) initiative, (8), personal qualities. in an effort to improve employee performance, it is necessary to be supported by a solid and professional organizational structure, because in practice work specializasitumorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 86 tion, departmentalization, chain of command, span of control, centralization and decentralization, formalization has a direct effect on the amount of work, quality of work, breadth of knowledge about work and skills, authenticity of the idea of willingness to cooperate with others (fellow members of the organization), awareness and trustworthiness, enthusiasm for carrying out new tasks, and personality. organizational structure is a formal organizational framework that is carried out through the division of tasks and responsibilities, grouped and coordinated, building relationships between individuals and groups and creating formal channels to provide authority and allocate resources (robins and coulter, 2009). an organizational structure defines how work tasks are formally divided, grouped and coordinated. the indicators regarding organizational structure according to stephen robbins in the index team (2006) are as work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization. literature review 1. employee performance according to suwarto m.s (2014), performance is the behavior or what employees do. there are 2 behavioral characteristics that can be labeled as performance, colquit et al. (2019)., states job performance is formally defined as the value of the set of employee behaviors that contributes either positively or negatively to organizational goal achievement. it has three components: 1) task performance, or transformation of resources into goods and services; 2) citizenship behaviors, or voluntary employee actions that attribute to the organization; and 3) counterproductive behavior "gibson et al., (2012), states" performance refers to the level of success in implementing the task and the ability to achieve the goals set. otherwise good performance and successful if the desired goal can be achieved with good quality "according to ivancevish (2008)" performance is a set of employee work related behaviors designed to accomplish organizational goals " behavior in completing organizational goals. while cascio (2015), describes performance as a way to ensure that individual or team workers know what is expected of them and remain focused on effective performance by paying attention to objectives, measures and assessments. some measurements of employee performance, according to gomes (2005) that can be used as indicators of employee performance as follows: (1) quantity of work: the amount of work done in a specified period; (2) quality of work: the quality of work achieved is based on conditions of suitability and readiness; (3) job knowledge: the extent of knowledge about the job and its skills; (4) creativeness: authenticity of ideas arising from actions to solve problems that arise; (5) cooperation: willingness to cooperate with others (fellow members of the organization); (6) dependabiity: awareness and trustworthiness in terms of attendance and completion of work on time; (7) initiative: enthusiasm to carry out new tasks in enlarging their responsibilities; (8) personal qualities: regarding personality, leadership, hospitality and personal integrity. 2. organization structure various definitions of organizational structure have been put forward by management experts. according to robbins, (2012), organizational structure is the formal arrangement of jobs within an organization, which serves many purposes divides work, assigns tasks and responsibilities, coordinates diverse organizational tasks, clusters jobs into units, establishes relationships among individuals, groups and departments, situmorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 87 establishes formal lines of authority and allocates and deploys organizational resources. an organizational structure defines the way tasks are divided, grouped and formally coordinated. the indicators of the organizational structure according to robbins in the index team are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization. according to shane, (2008) that there are three components to the organizational structure; namely (1) shows formal reporting channels, (2) identifies the grouping of individuals into departments into the organization as a whole; and (3) includes system designs to ensure smooth communication, coordination and integration of cross-departmental efforts. robin (2012) also agree that the organizational structure describes how work tasks are formally grouped and coordinated. according to him there are also six key elements that need to be considered in designing the organizational structure, namely: "1) work specialization, 2) grouping departments, 3) chain of command, 4) scope of control, 5) centralization and decentralization, 6) formalization. according to mullins (2003), structure is the pattern of relationships among positions in the organization and among members of the organization. the structure makes possible the application of the process of management and creates a framework of orders and commands through which the activities of the organization can be planned, organized, directed and controlled. the structure defines tasks and responsibilities, work roles and relationships, and channels of communication. according to richard (2004), there are 3 main requirements that must be considered when determining the organizational structure, namely 1) the organizational structure must show formal relations between employees, including the level of hierarchy, and the range of control of managers and supervisors; 2) organizational structure establishes a work group for employees, merging groups within departments, and integrating departments into the company as a whole; and 3) organizational structure includes system planning to ensure effective communication, good coordination and integration between departments. kreitner, robert (2010) said that the current organizational structure planning is required to be responsive to the changing demands of dynamic external conditions such as technological progress, product development, market development, globalization and others. the structure must be flexible, not rigid. so that the term learning organization appears, or organizations that are ready to proactively respond to creativity, innovation, technological progress, and changes in the external environment in order to achieve company goals. according to brooks (2009), "organization structure is the way an organization is configured into work groups and the reporting and authority relationships that connect individuals and groups together. structure act to create separate identities for different work groups and have a big influence on the effectiveness with which individuals and groups communicate. brooks (2009), states variables and concepts of organizational structure include: centralization and decentralization, integration, specialization, formalization, span of control, bureaucracy. according to jerald (2010), the organizational structure is "the formal configuration of individuals and groups with respect to the allocation of tasks, responsibilities, and authority within the organization," (formal configuration of individuals and groups within the allocation of duties, responsibilities and authority within organization). according to shane, steven l.mc (2008), the organizational structure is defined as "the division of labor as well as the conditions of conditions, communication, workflow, and formal power that direct organizational acsitumorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 88 tivities," (division of work and coordination patterns, communication, formal employment and power lines related to organizational activities). to deepen the understanding of organizational structure, it is necessary to understand various organizational structure designs that can be done through several approaches. approach 3. motivation according to luthans (2008), "motivation as a process that starts with the physiological of psychological deficiency or needs that activates behavior or a drive that is aimed at a goal or incentive". furthermore luthans (2008) that in a motivation system consists of three elements that interact and are interdependent, namely: needs (needs), drives (incentives), incentives (incentives), while nohria (2002) states, there are 4 impulses (four) drive) that applies to everyone, namely drive to acquire (drive to reach), drive to bond (drive to bond) and drive to learn (drive to learn), steven l (2009) states motivation refers to forces within a person that affects the direction, intensity, and persistence of voluntary behavior. motivation according to pinder (1998), motivation is a set of energetic forces that originate both within as well as beyond an individual's being, to initiate work-related behavior, and to determine its form, direction, intensity and duration. the theory that is often used by experts in conducting research on motivational problems is the theory that has to do with human needs. one theory related to motivation is the theory of needs developed by maslow. abraham maslow developed a theory of motivation known as (hierarchy of needs). maslow in burton, (2012) holds that the theory of the hierarchy of human needs can be used to describe and predict motivations. motivation theory is based on two assumptions. first, what someone's needs have been fulfilled. second, needs are a hierarchy of interests. in this theory a classification of needs is proposed which consists of five groups of human needs that form a hierarchy of needs, namely the first physical needs (physiological neds), the physical needs of a person are in dire need of food, clothing and shelter. after the activity fulfillment needs are met and has decreased, then the need for security increases. when the physical needs for food, clothing, shelter have been met, then a person switches to the need to associate with the community, the need for affiliation with others, the need to find meaningful relationships. according to david nadler and edwar lawler in stone (2005) that motivation is the result of three different types of beliefs that a person has. the three types of beliefs are expectations or beliefs, valuable or yielding, the adequacy of funds (valance). in this connection lazaroiu (2015) states that work motivation has a direct effect on employee performance, so increasing work motivation is an effective way to improve employee performance. salleh, dzulkifli (2011) shows that affiliate motivation has a positive relationship with performance. research by mawoli & babandako (2011) states that academic staff motivation influences the performance of university employees ,, for that the improvement of university employee performance can begin with the academic motivation of their employees. synthesis of motivation is the size of the work done by an employee in carrying out their duties with indicators of employee motivation, including: (1) employee's desire to get good performance, (2) employee's drive to get awards and recognition for the work performance achieved, (3 ) encouragement of employees to get a sense of security at work, (4) relationships between employees with fellow workers at work, and (5) needs of employees are met (6) secondary needs are met. situmorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 89 research methods the method used in this study is to use a survey method that is conducting research directly into the field. data collection tool used was a questioner (questionnaire). with this data collection tool data can be obtained in accordance with the research theme. research data is captured using a questionnaire developed by researchers and given to samples from the population. research respondents numbered 100 employer. samples were determined using cluster random sampling techniques. instruments of organizational structure, work motivation and performance are validated by product moment correlation, while reliability is measured by cronbach's alpha. data is analyzed using path analysis techniques. result and discussion testing hypothesis pathway in hypothetic models py1, py2, p21. path coefficients in the hypothetical model of the study are py1, py2, p21, in determining the magnitude of the path in a hypothetical model the study is obtained by determining the magnitude of the path coefficient value, and then the path coefficient significance test is continued. 1) structural path coefficient 1 causal relationships between variables in sub-structural 2 consist of one endogenous variable, y ( employee performance ) and two exogenous variables, x1 ( organizational structure ) and x2 ( work motivation ) from the results of data processing the structural path coefficient 1 as follows: table 1 path coefficient and path significance test structure 1 table 2 coefficient terminated r square for structure 1 coefficients a model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 73.93 7 4.346 17.01 1 .00 0 organization structure .189 .044 .396 4.308 .00 0 work motivation .122 .042 .267 2.899 .00 5 a. dependent variable: employee performance model summary model r r squar e adjusted r square std. error of the estimate 1 .560a .314 .300 2.905 a. predictors: (constant), work motivation, organization structure situmorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 90 a. predictors: (constant), work motivation, organizational structure from the path coefficient table, the analysis results obtained the path coefficient p value of 0.396 and tcount 4.308, with ttable (0.05: 98) = 1.98, so tcount> ttable, reject h0, meaning that the variable x1 has a positive effect on the y variable. it is thus proven that the organizational structure has a direct positive effect on employee performance. the results of the analysis obtained the path coefficient p32 of 0.267 and tcount 2.898, with ttable (0.05: 98) = 1.98, so tcount> ttable, reject h0, meaning that the x2 variable has a pos itive direct effect on the x3 variable. thus it is proven, that work motivation has a direct positive effect on decision making. from the results of the analysis, the coefficient of determination obtained by 0.314 so that it can be stated that the organizational structure and work motivation have a direct positive effect on employee performance 2) structural path coefficient 2 causal relationships between variables in sub-structural 2 consist of one endogenous variable, x2 and one exogenous variable, x1. from the results of processing the structural path coefficient 3 data as follows: table 3. path coefficient and structural significance test structure 2 table 4. r square terminated coefficient for structure 2 from the path coefficient table, the analysis results obtained p21 path coefficient of 0.422 and tcount = 4.381, with ttable (0.05: 98) = 1.98, so tcount> ttable, reject h0, meaning that the variable x1 has a positive effect on the x2 variable. it is thus proven, that organizational structure has a direct positive effect on work motivation. from the results of the analysis, the coefficient of determination obtained by 0.164 so that it can be stated that the organizational structure has a direct positive effect on work motivation. based on the test analysis of the path above, it can be explained the following hypothesis testing: 1. the organizational structure (x1) has a positive direct effect on employee performance (y) and indirectly through work motivation (x2). from the results of the path analysis of the influence of organizational structure (x1) on employee performance (y) obtained path coefficient ρу1 of 0.395 with a tcount of coefficients a model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 48.42 0 9.212 5.256 .00 0 organization structure .422 .096 .405 4.381 .00 0 a. dependent variable: work motivation model summary model r r squar e adjusted r square std. error of the estimate 1 .405 a .164 .155 6.971 a. predictors: (constant), organization structure situmorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 91 4.284, while the value of ttable = 1.98 (α = 0.05; df = 98). because tcount> ttable, then h0 is rejected, h1 is accepted. thus it can be concluded that the organizational structure has a direct positive effect on employee performance. while the effect of organizational structure (x1) on employee performance (y) through work motivation (x2) is the result of the path coefficient ρу1 x ρу3 (0.365) x (0.296) = (0.154). thus it can be concluded that the organizational structure has a direct positive effect on employee performance through work motivation. 2. work motivation (x2) has a positive direct effect on employee performance (y) from the results of the path analysis the effect of work motivation (x2) on employee performance (y) obtained the path coefficient ρу2 of 0.269 with a tcount of 2.917 while the value of ttable while 1.98 (α = 0.05; df = 98). because tcount> ttable, then, h0 is rejected, h1 is accepted. while the influence of work motivation (x2) on employee performance (y). thus it can be concluded that work motivation has direct and indirect positive effects on employee 3. the organizational structure (x1) has a positive direct effect on work motivation (x2) the statistical hypothesis tested was a positive direct effect on organizational structure (x1) on work motivation (x2). from the results of the path analysis of the influence of organizational structure (x1) on work motivation (x2) obtained path coefficient ρ21 of 0.422 with tcount = 4.381 while the value of ttable = 1.98 (α = 0.05; df = 98). because tcount> ttable, then h0 is rejected, h1 is accepted. thus it can be concluded that the organizational structure has a direct positive effect on work motivation. disscusion from the results of hypothesis testing shows that there is an effect of organizational structure directly and indirectly effects positively on employee performance. the more positive the organizational structure, the employee's performance tends to increase. as stated by mc robbins, sephen p, (2012) states that a good organizational structure can produce good performance, therefore in an effort to improve performance can be done through strengthening the organizational structure. in an effort to improve employee performance, it needs to be supported by the structure solid and professional organizations, because in practice work specialization, departmentalization, chain of command, range of control, centralization and decentralization, formalization has direct and indirect effects on the amount of work, quality of work, breadth of knowledge about work and skills, authenticity of the idea of willingness to work together with others (fellow members of the organization), awareness and trustworthiness, enthusiasm for carrying out new tasks, and personality in managing company resources, work motivation has a direct effect on employee performance, because managing employees by increasing organizational authority, delegating tasks, supervising work division can directly influence work quantity, work quality, work effectiveness, work efficiency, and work methods. according to kreitner, robert (2010) that the drive to work effectively can be influenced by decision making, because decision making requires the identification and selection of alternative solutions that lead us to the desired conditions in accordance with organizational expectations. likewise, according to glinow, (2008), that the process of choice in making a decision, starting from identifying a problem and recognizing an opportunity, involves several parties how to process a decision, identify and develop possible solutions in line with the interests of motivation in the organization. the results of hypothesis testing indicate there is an effects of organizational structure on work motivation. as stated by . the conclusion shows that the more possitumorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 92 itive the work motivation, the lower the decision making. the proportion of decision making variance can be explained by work motivation. conclusion based on the research discussion, organizational structure affects employee performance and indirectly through work motivation. this shows the comparison of employee performance variables can be approved by the organizational structure. the more effective the organizational structure it will increase the performance of employees, beside that work motivation affects employee performance. if the work motivation may be upgraded, it will encourage the employees to improve thier performance and relating to the organizational structure of work motivation. this shows the variety of work that can be seen by the organizational structure. the effective and lean organizational structure, it will encourage work motivation .this final section of our paper discesses the limitations of this study and suggest potential direction for future research. first, the empirical findings are based on vendor’s data and hence countryspecific factors may limit the external validity of these findings. a simple generalization of this study might not apply to others countries. second , in order to extract detailed information on collaborations, our analysis used unique project level data and relied on small sample of observations. further research is needed on larger sample using additional method of enquiry analysis. a larger sample would also permit us to ask wheter other specific characteristics of industry and automotive partners play a role in increasing performance recommendation based on the results of the study showed that motivation is the lowest variable influence on employee performance. therefore, in improving the performance of employees, it is necessary to increase and improve motivation by increasing employee motivation to get good performance, increasing employees to get awards and performance to improve their performance, encouraging employees to get a sense of security at work, relationships between employees and participants at work, and the needs of employees are met, secondary needs are met need to improve the organizational system. in building achievement, it is necessary to strive through giving of insintive and rewarding employees who excel by giving a position on a sturdy chair or giving other awards that can support employee performance. in increasing motivation, the company supports providing a sense of security at work providing work facilities that meet the needs and work standards that ensure employee safety. in building employee motivation, the company also supports building harmonious relationships through vertical and horizontal communication, this is because community communication is a strategic factor in building good organizational structure. acknowledgement the researcher would like to thank the leaders and staff of the pt. toyota astra motor indonesia of who had helped in the completion of this research. situmorang, o., mukhtar, m., yasin, m. (2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 93 reference brooks, w. (2009). organisasional behavior. london: pearson educated. cascio, wayne f. (2015). managing human resources. london: mcgraw-hill higher education. colquitt, lepine, w. (2019). organizational behavior, improving performance and commitment in the workplace (6th ed.). new york: mcgraw-hill higher education. gomes, f. c. (2005). manajemen sumber daya manusia. yogyakarta: andi offset. ivancevish, j. . i. (2008). organizational behvior and management. singapore: mcgraw-hill. kreitner, robert, a. kinicki. (2010). organizational behavior. new york: mcgrawhill. lazaroiu, g. (2015). employee motivation and job performance, linguistic and philosophical investigations. 14, 97–102. marchet, g. 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(2020). journal of business and behavioural entrepreneurship, 4(2), 84-93 the effect organizational structure and work motivation on vendor’s employee performance at automotive distributor in indonesia. https://doi.org/10.21009/jobbe.004.2.07 https://doi.org/10.21009/jobbe.004.2.01 13 abstract this study is aimed to identified of important managerial competencies of middle managers as chairperson of the policy drafter through integrity, cooperation, communication, and goal orientation. this research was conducted qualitatively using the phenomenology method approach. data was collected through questionnaires, observations, and in-depth interviews from selected respondents. the result shows a level of mastery, and most respondents agreed upon integrity (50%), cooperation (45%), communication (50%), and goal orientation (50%) are important managerial competencies as chairperson. the result of this study is useful for public service middle managers. keywords: policy, managers, managerial competencies, phenomenology received: 14 may 2020 ; accepted: 10 august 2020 ; publish; december 2020 how to cite: zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). journal of business and behavioural entrepreneurship, 4(2), 13-23. https://doi.org/10.21009/jobbe.004.2.02 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter) danny zulkarnaen jakarta state university, indonesia email: dannyzulkarnaen_im16s3@mahasiswa.unj.ac.id r. madhakomala jakarta state university, indonesia madhakomala@unj.ac.id mukhtadi defense university, indonesia mukhtadi.harry@idu.ac.id mailto:dannyzulkarnaen_im16s3@ mailto:madhakomala@unj.ac.id mailto:mukhtadi.harry@idu.ac.id 14 introduction in the continental legal system, policies are made and developed by government institutions. ministries are one of the policy initiators, they formulate the policies through specified procedures (presidential regulation number 87 of 2014 concerning regulations for implementing law number 12 of 2011 concerning the formation of regulations, 2014). every policy has to go to several stages before it approved and implemented. the initial stages draft of the policy followed by several discussion, and subsequently refined it. managers divided into 3 levels, the top, middle, and first managers (nadrifar et al., 2013). the middle managers are the most significant because they involved as the main executor on the policy draft as a chairperson. they need competencies to ensure the job well done, the initial stage working group includes members from various related organizations such as other ministries, professionals, and academicians, and chaired by officials from the initiator’s ministry (the minister of defense regulation number 19 of 2014 concerning procedures for preparation of the regulation, 2014). they’re responsible to draft the policy. they lead and work closely, confront members coming from different backgrounds to prepare a draft of the policy. a competent chairperson and the members are required to prepare a good draft and usable policies. it has been reported some of the policies, it can not be implemented wisely due to weaknesses such as conflict with the constitution, the absence of further implementing provision, contradictory, and incompatible with other policies (attorney general, 2020). the modern methods of quality policy-making require basic competencies (gleeson et al., 2011). policy capacity is a set of competencies and abilities required for policy formulation, and an individual competency is an important determinant in policy formulation (wu et al., 2017). competency has a different concept (le deist & winterton, 2005). to succeed in various fields of work, different strategies have to be implemented to obtain the required competency (young & chapman, 2010). policy formulation with more complex issues requires certain capacity included the next process for the approval, and implementation. managerial competencies represent the expected reflection of policymakers. competencies are the key to the managers’ successful roles (wu et al., 2017) yet ignored frequently in the practice (ramesh et al., 2016), and the incompetency or lack of managerial competencies among policymakers often become central issues in the identification of policy failure (hicklin & godwin, 2009). that is not many studies had been published concerning managerial competencies for policymakers of the public sector. this study aims to determine the middle manager managerial competencies. literature review 1. competency competency defined as the individual basic characteristics, the integrated intelligence of emotional, social, and cognitive (boyatzis, 2008). at various levels of work, working groups, organizations, certain types of competencies are closely related to the role of a specific manager. the focus of the manager’s roles at each level varies according to job responsibilities (rao & palo, 2009). managerial competencies represent the necessary activity, knowledge, skill or behavior, and personal characteristics (szczepańska et al., 2014). zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 15 as a characteristic required to complete the task. it was acquired not only from formal education or training. these abilities lie between formal education, training, and experience. the capability was obtained as the product of what has been learned, or formal and informal experiences, and in some cases, related to the ability resulted from one's life experience (guthrie, 2009). competency, as a behavior can be defined as a talent and quality that create an individual, used independently by the individual in their jobs at certain times and in a particular organization (nikolajevaite & sabaityte, 2016). competency is important for a successful organization, such as interpersonal skills, communication, and collaboration with others. soderquist, based on the results of several studies, has identified the five most essential elements an individual must possess to work in a group or organization (soderquist et al., 2010): a. interpersonal relationship; b. openness; c. confidence; d. ability to approach; e. discipline and harmony in action. the main focus of competency as behavior is how an individual does a job, determines certain performance needed when doing tasks (russo, 2016). competence as behavior defines and evaluates abilities related to one's attitude in working, including assertiveness, discipline, empathy, creativity, persistence in problem-solving, and initiatives (berg et al., 2017). 2. competency mapping mapping the competency is a process to identifying the necessary competencies (yuvaraj, 2011), successful job depends highly on this, several ways are carried out by public or private organizations to identify it to achieve success (anisha, 2012). policymaking is the authority of the government, which is carried out in a working group by involving participants from different backgrounds (winarno, 2014), thus requires at least a competency guide to achieve objectives (kaur & kumar, 2013). the process of how a job performed, job descriptions, and the competency needed (mahajan, 2015), capability acquisition is not intended to get individual with an impeccable aptitude to complete the tasks, because the perfection of human being does not exist, yet competent to build relationships with others, build communication, do the jobs, and adapt (gupta & vaishali, 2015), and at least one capable individual is there to meet these standards. competency mapping implemented through job analysis. job analysis carried out to determine and describe work in such details, so the job description is clear (cushway, 2003). the process and manner of doing the job will show the necessary abilities; develop the scale of competencies using the obtained parameters (mahajan, 2015), and determine what types of the individual assigned for the task (dessler, 2014). 3. managerial competencies managerial competency is the specific type of individual capacity that is related to personal characteristics in an organization. the suitability of personal quality in the working group or organization has been a subject in many studies. many theories and studies confirm that particular managerial competencies relate to the manager’s success in doing their jobs. these abilities defined into different levels (rao & palo, 2009), roles, and job zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 16 complexity (grobler, 2005). the managerial competencies of employees assigned in a policy development working group have received less attention. there are some issues related to the behavior of the members of the ministry internal workgroup in terms of interaction even though most of them possess both technical skills and master the substance of policy development. inadequate appreciation, communication, and inefficient workgroup are noticeable in most discussion forums. managerial competencies are significant and vital for various management roles. managers who possess it will most probably reach success in their tasks (seate et al., 2016). managers are responsible for preparing some materials, identify potential alternatives, analyze procedures for each choice, and provide proposals for discussion (zhang et al., 2012). managerial competencies is a reflection of the abilities expected reflection of policymakers, the essence of managers’ successful roles (wu et al., 2017) yet ignored frequently in practice (ramesh et al., 2016) and the incompetency or lack of it among policymakers often become central issues in the identification of policy failure (hicklin & godwin, 2009). the ministry of “x” is currently in the process of creating new managerial competencies for its employees. managerial competencies for middle managers will focus on level 3 of mastery. managerial competencies are soft competency, which includes knowledge, skill, and behavior according to their tasks and/or functions (regulation of head of state civil service number 7 of 2013 guidelines for the development of state civil apparatus managerial competence standards, 2013). soft competency is a life skill necessary for private, group, or community (alsabbah & ibrahim, 2013). the skills of communication, emotional, language, group, show ethics, morality, and respect show an individual’s quality at every level (schulz, 2008). the mastery level of managerial competencies determined by behavioral indicators. the mastery level is the behavior needed to do the job. the complexity of competency requirements includes descriptions of activities or behavior associated with each competency. there is five mastery level based on requirement complexity (regulation of the minister of administrative and bureaucratic reform number 38 of 2017 concerning state civil apparatus competency standard, 2017): 1) awareness; 2) basic; 3) intermediate; 4) advance; and 5) expert research method the present study has been carried out in two stages, the first stage is preliminary studies. it was conducted for four months from september to december 2018 in several private and public organizations to find out why they did not perform the responsibilities established under the national policy. the second stage was conducted in several working units in one ministry for six months, june to november 2019. the research samples of job analysis were selected purposively in one working unit. data collected through questionnaires and interviews in other departments. data will be analysed qualitatively through data reduction, data display, and conclusion drawing. research conducted using the phenomenological theory and with a qualitative approach to describe individual life experiences related to a phenomenon (priya, 2017). through this approach, it is expected to explore in-depth human attitudes, different perspectives, and experiences of the information sources, to find out the comzulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 17 plexity in situations through the overall framework. sugiyono submits that generalization is not applicable in a qualitative approach, but instead emphasizes the depth of information to reach the meaning behind what appeared (sugiyono, 2017). qualitative research is a method to explore and understand social or humanitarian problems experienced by several individuals or a group of individuals. data collected and grouped questionnaires, asking a question, data analysis, and followed with confirmation in a focus group discussion. the final report of this research has a flexible structure and framework. data collected through questionnaires and interviews in other departments. data analysed qualitatively through data reduction, data display, and conclusion drawing. anyone involved in this research must apply an inductive research perspective, focus on individual meanings, and translate the complexity of the issue (creswell, 2009). results and discussions from the job analysis questionnaire and in-depth interviews, the process of how the work carried out is identified. the survey defined a job and essential managerial competencies needed, obtain job descriptions from middle managers as the chairperson of internal ministry working group to draft of the policy. job descriptions are the main task stages which are confronted with the competence dictionary as stipulated under the minister of administrative and bureaucratic reform. the results also reveal the required scope of competence of managerial to carry out activities as a working group chairperson, are expected to run effectively so the product will be useful as well. the required mastery level of managerial competencies possessed by the middle manager as chairperson in the ministry's internal working group is finally obtained. there are four managerial competencies along with the appropriate mastery level that must be possessed. these competencies were obtained from interviews with the respondents, and information given by 80 middle managers on the questionnaires in terms of importance and frequency of use. the final validation of managerial competencies was conducted through focus group discussion by involving officials in charge of developing competency standards for employees, assessors, and middle managers assigned in the ministry internal working group. the level of interest and use of four crucial managerial competencies that must be possessed by middle managers presented in the descriptive diagram below: tabel 1 the scale of importance and frequency of use zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 18 figure 1 importance of managerial competency figure 2 frequency of use the importance (figure 1) and frequency of use managerial competencies (figure 2) m.01 integrity, the important competency 55% and very important 45%, frequency of use in workgroup policy drafting discussions: often 50% and always 50% m.02 cooperation, the important competency 55% and very important 45%, frequency of use in workgroup policy drafting discussions: sometimes 5%, often 55% and always 40% m.03 communication, the important competency 45% and very important 55%, frequency of use in workgroup policy drafting discussions: often 55% and always 45% m.04 goal orientation, moderately the important competence 5%, important 50% and very important 45%, frequency of use in workgroup policy drafting discussions: sometimes 5%, often 55% and always 40% whereas the mastery level of four managerial competencies that should be possessed by middle managers as chairperson is as follows: 1. level four of integrity: capable of creating work situations and encouraging compliance with organizational values, norms, and ethics. the related behavioral indicators are: a. create work situations that encourage all stakeholders to adhere to the organization's values, norms, and ethics in all conditions. zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 19 b. support and apply high moral principles and ethical standards, and dare to assume the consequences. c. dare to make corrections or take action related to any deviations from the code of ethics/values committed by disobedient within the institutional level despite the risk. 2. level five of cooperation, create consistent cooperation situation in and outside the institution with behavioral indicators as follows: a. create constructive work relationships by adhering to norms ethos/positive values in and outside the organization; improve productivity and become role model in an organization. b. consistently maintain synergy to allow stakeholders to work closely with other people in and outside the organization. c. build consensus to mix resources from different stakeholders for the best interest of the nation and country. 3. level five of communication, initiate a strategic and open communication system to find solutions to improve performance, with behavioral indicators as follows: a. remove any communication barriers, be able to communicate high-risk national issues, build a relationship on a strategic scale at national level b. use formal and informal communication channels to reach an agreement to improve performance at the national institution level c. initiate a communication system by involving stakeholders from the earlystage to find solutions to improve performance at the national institution-level 4. level five of goal orientation, improve the quality of the organization's work achievement, with behavioral indicators, as follows: a ensure the quality is by following the organization’s standards and sustainability that contribute to the success of national priority targets. b. ensure the availability of organizational resources to ensure the accomplishment of national institution priority targets. c. make policies to implement more effective and efficient work methods to achieve organization and national institution priority goals regarding the importance of mastering these competencies in their respective level following the theory: 1. integrity membership in the existing working group, from the same or different organizations and different backgrounds. on the one hand, different backgrounds united by the same organizational culture; on the other hand, they are different. the ability to accept differences wisely, if viewed from the ministry employee’s background, should not be a problem, yet if referring to the result of observations, this competency needs attention. integrity is the quality of action in harmony with moral values, norms, and rules (huberts, 2018); further examples are provided, such as consistency between words and actions. the core of integrity is trustworthiness, honesty, morality, consistency (gentry et al., 2016). various literature defines integrity as wholeness, coherent, identity, reliability, and moral commitment (schott, 2015). studies reveal that weak organization is because their employees were behaving with individual values, strict regulation yet unwise, therefore, it is necessary to recognize, understand the situation to take four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 20 appropriate action as balance (robbins et al., 2018). 2. cooperation many kinds of literature and researches give different definitions of collaboration because of each view from different perspectives (shaw, 2006). from the observation results, members from other ministries/institutions will bring their abilities and characteristics. a working group can be an effective capable team if the leadership is right, problem-solving, work accountability becomes standard reference (wibowo, 2016). cooperation or collaboration in the daily terms is working together to achieve a goal or profit (zagumny, 2019). participation is a relationship between members in an activity, independent from vision or mission, with adherence to coordination and control (schott, 2015). 3. communication based on the observations, communication skill in this working group needs high attention. some members come from internal organizations that have an understanding of the importance of communication behavior both vertically and horizontally with propper mechanisms. communication during policy drafting is conducted directly and indirectly, verbally and in writing using several tools, in formal and informal situations. conflicts caused by delivery, and acceptance, different interpretation always comes up during discussions although some aspects can be managed well, but, this will affect information acquired, and decision making in these activities. various studies on institutions and academics show the importance of interpersonal communication competencies in organizations (okoro et al., 2017). effective communication is an essential component for a successful organization, whether among individuals within an organization and others (mahajan, 2015). effective communication within a group depends on a person who can manage the communication channel (robbins et al., 2018). participant’s active roles in connection are related to the level of information, knowledge, understanding, decision making, job demands, and organization policies (limpornpugdee et al., 2009). 4. goal orientation the ministry’s internal workgroup works from the initial stage of the policymaking process, during the policy drafting process, efforts need to be made related to the competencies of operating unit personnel in doing their tasks. from the results of the interview, the late submission of policy drafts always occurs in the ministry. in the initial stage of policy formulation discussion, despite obstacles such as limited personnel, time, cost, quality of policy product is expected to be followed up immediately in the next process for formalization, and this is indeed possible only if the group members possess the required competencies. the theory of goal achievement has been a concern in social, organizational, educational, and psychological areas in terms of determining behaviors as are necessary for task achievement (raver, 2012). managers who work with goal orientations, who have a good relationship with their colleagues and show a positive attitude at work, will get high job satisfaction (thamrin, 2016). a person who works with a goaloriented approach will show his ability to work (chen & mathieu, 2008), always try to get positive inputs from others, and work with the right people to complete difficult tasks (rahman khattak et al., 2017). the four important managerial competencies and the relevant mastery level four important managerial competencies for middle managers as policy drafter (a study of ones of the ministries middle managers as policy drafter). https://doi.org/10.21009/jobbe.004.2.02 zulkarnaen, d., madhakomala, r., & mukhtadi. (2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 21 that as result on studied as shown in table 2. table 2 the important managerial competencies conclusion in conclusion from the 8 managerial competencies as the regulation of the minister of administrative and bureaucratic reform, only 4 managerial competencies for middle managers crucial to be a policy drafter. among the four competencies, the level of mastery is 5 for cooperation (m.02), communication (m.03), and goal orientation (m.04), followed by integrity mastery level on 4 (m.01). it is further conclusion integrity and cooperation score highest (55% each), followed by goal orientation (50%) and communication (45%). references alsabbah, m. y. a., & ibrahim, h. i. (2013). employee competence (soft and hard ) outcome of recruitment and selection process. a merican journal of economic, 3, 67–73. anisha, n. 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(2020). journal of business and behavioural entrepreneurship, 4(2), 13-23 45 the factors of affecting the intention of merchandise in flight helda wahyurizki universitas negeri jakarta email: heldawr@gmail.com vina pebianti universitas negeri jakarta email: vinapebianti@gmail.com mitsalina tantri universitas muhammadiyah jakarta email: mitsalina.tantri@live.com abstract this study aims to determine the effects of attitude, brands, social influence and satisfaction on purchase intentions of merchandise in flight to air transportation service users both domestically and abroad. this research used accidental sampling technique which was conducted on 201 samples from users of domestic or foreign air transportation services in 2019. the method was a questionnaire and an interview. by using sem amos 21 statistical tools. the results showed that all variables used in this study were attitudes, brands, social influences and satisfaction had a significant and positive influence on purchase intention variables. this shows that the presence of internal and external factors of a customer will also affect the customer's purchase intention for a merchandise. keywords: attitude, brands, social influence, satisfaction and purchase’s intention. received: 17 february 2020 ; accepted: 15 april 2023 ; published: june 2023. how to cite: wahyurizki, h., et.al. (2023). the factors of affecting the intention of merchandise in flight. journal of business and behavioural entrepreneurship, 7(1), 45-58. https://doi.org/10.21009/jobbe.007.1.04 mailto:heldawr@gmail.com mailto:vinapebianti@gmail.com mailto:mitsalina.tantri@live.com 46 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. introduction according to the central statistics agency (bps), the aviation business in indonesia has a fairly good development. bps recorded that the number of domestic air transport passengers in 2018 reached 44.39 million people which means an increase of 3.76% compared to 2017 which reached 42 ,78 million passengers. whereas the foreign passenger sector in 2018 was recorded at 16.33 million passengers, an increase of 9.45% compared to 2017 which only reached 14.92 million passengers. it is still increasing in 2019. this positive development will create a climate of intense competition among aviation business players certainly. based on data from the bandarasoekarnohatta.com, there are various types of airlines that has operated including garuda indonesia, lion air, sriwijaya air, air asia indonesia, citilink in indonesia. each airline has its own market objectives and segmentation. these companies provide the best service and quality to get as many consumers as possible. in the market competition, new merchandise are popping up so that competition in seizing the people must be a concern for business maker. one of marketing strategy is to create a retailing service by making a characteristic of the airline company itself. the airlines sell services to make the consumers arrive safely and be satisfied. but they also sell merchandise in flight. it is not directly shown to customers, but the details of the merchandise are shown in a catalog. the list of merchandise is made as attractive as possible with a good appearance in order to create buying intentions from consumers. according to durianto et al., (2001) the merchandise was arranged as attractive as possible and effective so that the data that was informed had satisfied the customer from product details to product appearance. "purchase intention is something that relate to the consumer's plan to buy them and several units purchased during in a certain period." this purchase intention can be caused by various factors. they are internal factors or external factors. the earlier survey was also conducted by researchers on 30 airline service users who were available domestically and internationally through individual interviews. based on the results of interviews, 73.3% or 22 people informed that there were merchandise sales on the plane and 26.7% or eight people did not know / aware of merchandise sales on the plane. 22 users of the flight service who aware about the sale of merchandise on the plane, there was information said that only about 13 people had an interest in buying the merchandise. this was demonstrated by passengers interested in finding information about the merchandise by looking through the catalog and interested in having one of the merchandises. this passenger attitude is obtained by the researcher based on questions raised directly from the researcher to the passengers. it becomes a gap phenomenon where consumers realize there is a business, but they do not have the intention to buy the merchandise. if the merchandise offered has a positive impression on consumers, it will be a positive attitude towards the merchandise and it will lead to purchase intentions. according to mowen and minor (2002), the hierarchy effect of purchase intention is used to describe the sequence of the process of the emergence of beliefs, attitudes and behaviors which are the stages of information processing. a person's attitude to the attributes of merchandise can be variative due to consumer’s confidence and evaluation of the attributes possessed by the merchandise. therefore, the earlier positive or negative attitude 47 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. of the consumer will be directly proportional to the purchase intention of the consumer, this is relating to previous research that is conducted by zhang and kim (2013) and huang and lee (2003) states that the attitude has a positive and significant in buying intentions. the brand associated with positive brand images to create competitive advantages that provide perceptions in product quality in terms of increasing interest, getting more attention, and evaluating consumers of a product itself (porter & claycomb, 1997). based on previous research, it was found that brand of merchandise influences customer evaluations and influences their purchasing decisions (khasawneh and hasouneh 2010). it was also be supported by other research conducted by richardson, dick, & jain (2006), brand found to have a significant effect. according to lee (2008) social influence is about changing feelings, attitudes, thoughts and behavior, intentionally or unintentionally influenced by others. this is because of interactions with other people who know each other like parents and peers. this is consistently relating to previous research was conducted by eryadi, heru triatmaja and yuliana (2016) who states that social influence has a positive and significant influence on purchase intentions. if social influence is mediated by satisfaction where satisfaction is the opinion of others and makes us satisfied it will affect the purchase intention as well. the satisfaction itself is when customers get advice from family or their friends and then supported by satisfaction from the catalog that displays the merchandise, so that it will increase the purchase intention of the customer. this is consistently relate to previous research which is conducted by lee (2013) and bhattacherjee (2000) who stated that satisfaction has a positive effect on purchase intentions. based on background description of the problem, the researcher interested in bringing up the research with the following research objectives: 1. to find out whether there is a positive effect of attitude on purchase intentions of merchandise in flight. 2. to find out whether there is a positive influence of brands on the purchase intention of merchandise in flight. 3. to find out whether there is a positive influence of social influence on the purchase intention of merchandise in flight. 4. to find out whether there is a positive influence of social influence on customer satisfaction with merchandise in flight. 5. to find out whether there is a positive effect of satisfaction on purchase intentions for merchandise in flight. literature review attitude according to huang and lee (2003) attitudes can be shown with a better choice than to other objects, it made him felt no doubt or feel there was nothing wrong with that object. someone will have a feeling of liking an object if it is deemed to have good benefits for himself, this is relate to the indicators that listed of: 1. generally speaking, buying gray market goods is a better choice 2. considering price, i prefer gray market goods 3. i like shopping for gray market goods 4. buying gray market goods generally benefits the consumer 48 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. 5. there's nothing wrong with purchasing gray market goods 6. i never consider gray market goods when choosing merchandise brands name according to simamora (2003: 81) brands name is the main indicator for a brand itself that is the basis for communication efforts and awareness creation, it is also the essence of the brand concept. indicator of brands according to khasawneh and hasouneh (2010): 1. i pay attention to buying the product with a well-known brand name. 2. when buying a product for the first time i select the well-known brand name because it gives me information. 3. well-known brand name products are worth paying the price. 4. well-known brand name is trust worthy. 5. i feel more secure when buying a product with a well-known brand name. 6. well-known brand name means high quality. social influence social influence is an act or behavior of someone who can influence others to jointly use a technological system. measurement of social influence can be measured through four indicators according to eryadi, heru triatmaja and yuliana (2016), including: 1. the regulations in the user’s or prospective user’s social. 2. family or family influence of the user. 3. reference groups or groups that become role models and references from user. 4. culture or social class and culture adopted by users or candidate of users. satisfaction customer satisfaction is an effective response to the experience of making specific consumption or evaluating the suitability or perceived discrepancy between the previous expectations and the actual performance of using merchandise. it will be a pleasure. measurement of satisfaction according to bhattacherjee (2000) can be measured through several indicators, namely: 1. the merchandise catalog gives satisfaction with the information. 2. the merchandise display on the catalog makes me happy. 3. overall, i satisfied with the merchandise catalog and i will recommend it to others. purchase intention according to mowen and minor (2002), the hierarchy effect of purchase intention is used to describe the sequence of process the emergence of beliefs, belief in buying something, attitudes and cognitive behaviours possessed by consumers of linking attributes, benefits and objects by finding and evaluating information, meanwhile attitude refers to the feeling or effective response. according to rangkuti (2014) the indicators that can be used in determining someone's purchase intention are as follows: a. interested in finding information about products b. consider of buying something. c. interested to try 49 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. d. want to know the product e. want to have a product the design of research that became the frame work of this study was as follows: figure 1. research model sources: zhang and kim (2013), huang and lee (2003), khasawneh and hasouneh (2010), rahim (2016), dastane (2017), eryadi, heru triatmaja dan yuliana (2016), dan lee (2008), park, sun and hwang (2012), bhattacherjee (2000), lee (2013), masitoh and widikusyanto (2017) based on the theory and framework of thinking described above, the conclusions in this study are h1: attitude has a positive effect on purchase intentions. h2: brands has a positive effect on purchase intention h3: social influence has a positive effect on purchase intention. h4: social influence has a positive effect on satisfaction. h5: customer satisfaction has a positive effect on purchase intentions. research method the research method in this research is quantitative research. according to sugiyono (2012: 6) quantitative research is descriptive in nature and tends to use an inductive approach analysis. this research was conducted in several stages, where the design used in this study according to umar (2009: 33) revealed various types of research designs as follows: (1) descriptive design, the design aims to describe the nature or purpose of a particular phenomenon. (2) causal design, this design is useful for analysing the relationships of one variable to another 50 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. population and sample the population of this study is the user of air transportation both domestic and foreign within at last 6 months. this research was conducted using accidental sampling technique, which is to determine the selected sample based on coincidence, namely consumers who accidentally met with the researcher can be used as a sample, if viewed by people who happened to be found suitable as a source of data. the number of samples chosen was 201 respondents. this study uses primary data that is the respondent's answer to the questionnaire, in which the questionnaire is distributed by the author to airline users who are aware of the sale of merchandise sold on the plane. the instrument uses a likert scale. according to siregar (2013: 25), a likert scale is a scale that can be used to measure someone's attitudes, opinions, and perceptions about a new object or phenomenon. each answer has score as follows: masing-masing jawaban diberikan skor sebagai berikut: strongly disagree, disagree, little disagree, somewhat agreed, agree, strongly agree. with the explanation as follows: 1. number 1 shows the respondent strongly disagree with the statement regarding the proposed indicator. 2. number 2 shows the respondent disagrees with the statement regarding the proposed indicator. 3. number 3 shows the respondent few disagree over the statement regarding the proposed indicator. 4. number 4 shows the respondent somewhat agreed on the statement regarding the proposed indicator. 5. number 5 shows the respondent agreed on the statement regarding the proposed indicator. 6. number 6 shows the respondent strongly agreed on the statement regarding the proposed indicator. results and discussion respondents in this study are all domestic and international airline users who are aware of the sale of merchandise in flight. table 1 profile of respondent demographics variable group frequency gender male 93 46% female 108 54% age under 20 years old 24 12% 21 – 30 years old 125 62% 31 – 40 years old 27 13% 41 – 50 years old 19 9% above 50 years 6 3% 51 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. occupation students 19 9% civil servants 35 17% private employee 104 52% entrepreneur 22 11% housewife 9 4% others 12 6% in this study 53% of respondents were female and 47% were male. the age range of respondents who use aircraft transportation and are aware of merchandise in flight is between 21 and 30 years. 125 people were recorded, consisting of 72 female respondents and 53 male respondents. users of aircraft transportation in this study were mostly from private employees, totaling 104 people. if viewed by sex, the number of female respondents dominates the types of student work, private employees and housewives. while male respondents are more on the types of civil servant jobs, entrepreneurship and others. table 2 results of efa indicator loading factor attitude (α= 0.874) merchandise in flight is the best choice. 0.868 i love the merchandise in flight. 0.881 merchandise in flight has good benefits. 0.88 in my opinion there is nothing wrong with the prices sold on merchandise in flight 0.868 brand name (α= 0.742) when buying merchandise in flight, i chose a famous brand name 0.715 i paid more attention to buying merchandise in flight using well-known brand names. 0.794 0.726 52 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. the quality of the merchandise given matches the brand name of the merchandise. social influence (α= 0.856) my family did not forbid me to buy merchandise in flight 0.827 i considered the information given by my friend in buying merchandise in flight 0.887 i was interested in buying merchandise after i saw that my family bought it. 0.89 my friends often talk about good things about merchandise in flight 0.831 purchase intention (α= 0.852) i am interested in finding information about merchandise. 0.818 i am considering buying merchandise which sale. 0.881 i am interested in trying merchandise which sale. 0.876 i want to have the merchandise in flight 0.843 satisfaction (α= 0.74) the catalog that displays the merchandise sold on the plane is detailed and complete so that it satisfies me. 0.725 i wil recommend it for see the merchandise catalog if the information was complete. 0.798 i like the catalog that displays merchandise in flight because it shows pleasant colors. 0.71 based on the efa test using spss found that the value factor loading and cronbach’s alpha on each variabel has met the validity and reliability standard (table 53 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. 2). therefore 18 indicators used can be further analyzed using the confimatory factor analysis (cfa) method. because the number of indicators of the whole variable is less than 100 pieces, the number of respondents is more than 200 people, and use of a likert scale on the instrument, then the amos program is very appropriate to test the research model. and for this research using amos version 23.0. in testing the full research model, it was found that the model was not fit. where is known that the fit summary model is not in accordance with the minimum goodness of fit limit. therefore, researchers try to modify the research model. figure 2. shows the results of research modifications that meet gof requirements. figure 2 model testing 54 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. table 3 hypothesis testing summary c.r. p results ps > kp 6,644 *** accept si > nb 3,061 ,002 accept nm > nb 2,090 ,037 accept ps > nb 3,231 ,001 accept kp > nb 5,651 *** accept hypothesis testing is done by t-value and a significance level of 0.05. if the tvalue ≥ 1,967 then the testing hypothesis will be accepted and if probability value (p) ≤ 0,05 will show the significance (haryono & wardoyo, 2013). meanwhile according to holmes-smith (2012) p=*** show that p-value is close to zero. based on the test results in the table above, it is known that: 1. the influence of social influence on customer satisfaction is significantly positive because the estimated value (0.527) is positive, c.r (6.644) is greater than 1.96 and p (0.000) is smaller than 0.05. 2. the influence of attitude towards purchase intention is significantly positive because the estimated value (0.191) is positive, c.r (3.061) is greater than 1.96 and p (0.002) is smaller than 0.05. 3. the influence of brand names on purchase intentions is significantly positive because the estimated value (0.139) is positive, c.r (2,090) is greater than 1.96 and p (0.037) is smaller than 0.05. 4. the influence of social influence on purchase intentions is significantly positive because the estimated value (0.243) is positive, c.r (3,231) is greater than 1.96 and p (0,000) is smaller than 0.05. 5. the influence of customer satisfaction on purchase intention is significantly positive because the estimated value (0.454) is positive, c.r (5.651) is greater than 1.96 and p (0.000) is smaller than 0.05. the test results show that attitude significantly influences purchase intention. this study provides the conclusion that the attitude felt by the customer itself has an influence on the customer to have the intention to buy merchandise in flight. attitude towards a merchandise is one of the internal environmental factors, can influence someone to make the decision to buy merchandise. consumer attitude is a response or assessment given by 55 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. consumers consistently, consequently, beneficial or unprofitable, positive or negative, like or dislike, agree or not to an object. from this description shows that there are strong reasons for the influence of purchase intention from consumers. these results are consistent with research conducted by huang and lee (2003) which states that the attitude variable has a positive and significant effect on purchase intention. this result is conducted by alberto and rossi (2007), which states that the attitude variable has a positive effect on purchase intentions. the results of the study explained that brand names significantly influence purchase intention. this study concludes that the brand name listed on a merchandise will influence the consumers to have the intention to buy merchandise in flight. brand names that affect customers themselves are because of well-known brand names or the quality that is given from the brand names. positive responses from customers to the brand name can provide stimulus for customers to make purchases. therefore this brand name will increase the purchase intention of someone to buy a merchandise. these results are consistent with research conducted by rahim et al. (2016) which states that brand name variables have a positive and significant effect on purchase intentions. likewise in a study conducted by khasawneh and hasouneh (2010) which stated that brand name variables had a positive effect on purchase intentions. the test results show that social influence significantly influences purchase intention. this research concludes that social influences which are external factors of the customer can influence the consumers to have the intention to buy merchandise in flight. general consumption is influenced by inspirational and associative reference groups, with the ease of sharing information using different channels from social networks such as facebook, twitter, blogs and e-mails, so it is clear that social influence will be the dominant factor influencing a consumer's purchase intention. consumer behavior is influenced by social factors, such as family, group and role and social status. the social influence that is received is due to family or close friend factors which the customer feels unwritten by believing in the experience or opinion given / informed by others. these results are consistent with research conducted by rahim et al. (2016) which states that the social influence variable has a positive and significant effect on purchase intention. similarly, in a study conducted by dastane (2017) which stated that social influence variables had a positive effect on purchase intentions. the results of the study explained that social influences significantly influence customer satisfaction. this study provides the conclusion that the social influence received is due to family or close friend factors which the customer feels unwritten by the trust or experience given or shared by others. with the experience or opinions of other people will give satisfaction to the customer himself if it is in accordance with what he expected. there is also an emotional consumer satisfaction after using a company's merchandise / services. customers feel if others will feel amazed at him. satisfaction is related to social values that make customers proud and satisfied with a particular merchandise. these results are consistent with research conducted by park, s un and hwang (2012) which states that the social influence variable has a positive and significant effect on customer satisfaction. the results of the study explained that customer satisfaction significantly influences purchase intentions. this study concludes that the satisfaction felt by the customer will be an expectation that he hopes so that the customer will feel satisfied or 56 wahyurizki, h., et.al. (2023). journal of business and behavioural entrepreneurship, 7(1), 45-58. happy with what he gets will lead to the intention to buy on himself in a merchandise. customer satisfaction in this study is illustrated by a merchandise catalog that displays merchandise in flight. a catalog that contains complete information about the merchandise in flight will make a consumer's intention to buy the merchandise. these results are consistent with research conducted by lee (2013) which states that the variable customer satisfaction has a positive and significant effect on purchase intention. similarly, research conducted by masitoh and widikusyanto (2017) which also states that customer satisfaction has a significant positive effect on purchase intention. conclusion based on the results of the study, with the acceptance of all hypotheses prove that the attitude, brand name, social influence and satisfaction variables can be applied to determine the purchase intention of merchandise sold on the plane. the results obtained may be different if the selected sample criteria are different or only specific to one airline only in order to get data that is more in accordance with the segmentation. therefore for further research it is more specific to just one airline.\ references ajzen, icek. 1985. “from intentions to actions : a theory of planned behavior.” ajzen, icek, and martin fishbein. 2005. “the influence of attitudes on behavior.” handbook of attitudes and attitude change: basic principles (january 2005): 173– 221. alberto, carlos, and vargas rossi. 2007. “consumer attitudes toward counterfeits : a review and extension.” (june 2014). aronson, e., wilson, t.d. and akert, r.m. 2010. 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(1981). sources of consumer satisfaction with retail outlets. journal of retailing, 57(3), 68-85. yasa, i gusti ayu putri anggrihita prabhawedasattya ni nyoman kerti. 2014. “pengaruh ekuitas merek terhadap preferensi merek dan niat 94 abstract the indonesian national army is an integral part of the indonesia archipelago. as the national component, the army has the main task of maintaining the country's sovereignty and territorial integrity of the unitary state. therefore it needs highquality human resources. the aim of the research was examining the real motivational factors behind the positive attitude of the indonesian army academic staff. the study applied a rasch model method. the rasch model analysis was used to examine the research variable based on its dimensions and indicators. the research results show that team-building development process has been successfully proven, based on the research results. the rasch model analysis also shows that team-spirit among the indonesian national army members is very solid. it is the most satisfactory factor that creates positive task-attitude among the army academic staff. at the same time, the promotion is the most challenging factor to agree with among them. keywords: academic staff positive attitude, army academic staff, human resources management, rasch model analysis received: 21 november 2020 ; accepted: 30 november 2020 ; publish; december 2020 how to cite: abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. (2020). behind the positive attitude of the indonesian army academic staff: a rasch model analysis. journal of business and behavioural entrepreneurship, 4(2), 94-105. https:// doi.org/10.21009/jobbe.004.2.08 behind the positive attitude of the indonesian army academic staff: a rasch model analysis didin zainal abidin universitas negeri jakarta email: dzabidin@yahoo.com wibowo universitas prof. dr moestopo jakarta email: dzabidin@yahoo.com i. ketut r. sudiarditha universitas negeri jakarta email: sudiarditha@yahoo.com maria grace herlina* universitas bina nusantara jakarta email: herlina01@binus.edu https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 95 introduction the indonesian national army is an integral part of the indonesia archipelago. as the national component, the army has the main task of maintaining the country's sovereignty and maintaining the territorial integrity of the unitary state. due to perform its functions, the army needs qualified personnel or human resources. at this point, human capital becomes very important and plays a crucial role in performing tasks successfully. people in an organizational setting have been recognized as the main asset that drives the organization in today's modern era. human capital plays an optimal role in the success of achieving organizational goals. the army academic institutions play an essential role in enhancing the indonesian national army's human capital skills so that the capital is higher in value and quality. a significant contribution can fulfil the main tasks of the indonesian national army. academic institutions within the army play an essential role in enhancing the skills of the personnel. it means the quality of human capital needs to be higher in making a significant contribution to achieve the goals of the indonesian army. one of the efforts in improving the quality of human resources is through the development program. one of the ten academic components that play an essential role is the academic staff who will produce high-quality human resources. the quality of the academic staff is the keys to the army academic institution's success when they can synergistically make a positive contribution in both planning and implementing the duties and responsibilities of the teaching and learning process. to produce high-quality personnel, the army academic institution needs qualified academic staff; therefore, academic staff as educational implementers have crucial roles, tasks, and responsibilities. the army academic institution needs qualified academic staff who can improve the quality of the indonesian army. at the same time, they can master science and technology, especially in the army field. the army academic staff define as professional educators and scientists to transform, develop, and disseminate science, technology, and the arts through education, research, and community service. the faculty member must have academic qualifications, competencies, and teacher certificates, be physically and mentally healthy and meet other qualifications required by the higher education unit they are working in and achieve the goals of national education. the army academic staff qualifications are acquired through accredited postgraduate university programs appropriate to their subject area. the army academic staff have the minimum academic qualifications of a graduate of a master's degree for a diploma or bachelor's program and a doctoral candidate for a postgraduate program. personnel with exceptional expertise and outstanding achievements will get the assignment as the army academic staff. besides, the army academic staff are also the agents of knowledge sharing through academic institutions since they are expected to share knowledge, competencies, skills, expertise, and experiences. therefore, the army academic staff are supposed to improve the quality of human capital in the army to master knowledge and technology. unfortunately, the army academic staff, who satisfied with their academic assignment, is only around 40%. at the same time, the remaining 60% are less satisfied with their academic duty. those who are dissatisfied with the academic assignment think that their duty as an academic staff is not a prestigious position within the indonesian army institution. they fulfil the responsibilities of the academic staff because they should complete their tasks as soldiers. they are not carrying out the academic abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 96 assignments as the actualization of their qualifications, competences, and certifications, they possed. they seem unrealized that learning and development is one of the main functions of human resources management. it provides the mechanism for creating and sharing knowledge, driving organizational change and renewal, and achieving strategic organizational goals. learning and development also facilitate the acquisition of knowledge, skills, and experience through learning processes between individuals and groups, both structured and individual (armstrong, 2015). furthermore, the army academic institution is one of the learning organization where people continually expand their capacity to create new and expansive patterns of thinking. there are five characteristics of a learning organization: (a) systematic problem solving, (b) experimentation, (c) learning from past experiences, (d) learning from others, (e) transferring knowledge quickly and efficiently throughout the organization – by education and training programs (armstrong, 2015). these are the reasons why the army academic institution becomes a place of exchanging knowledge among the army members. this research aims to examine the positive attitude, another term for job satisfaction, of the army academic staff when fulfilling their academic duty as the implementer of the indonesian army's knowledge sharing process. furthermore, the research wants to encourage the army human resources department to give added value to the army academic staff. they fulfil their duties as academic staff with high achievement, especially in transferring knowledge, best practices and experiences. with more appreciation of academic responsibilities, the army academic staff will be more enthusiastic in completing their academic duties since it will add the points to their military career. literature review motivation comes from the latin word "movere". the word means to move. the basis of motivation is a motive or a reason to do something. motivation is the strength and direction of behavior and the factors that make people behave in a certain way (ibrahim & aslinda, 2015). motivation divides into two parts, namely intrinsic motivation that comes from within the individual. a motivator can be tangible motivators and intangible motivators despite their existence as extrinsic motivation or intrinsic motivation. it is an encouragement that arises because individuals believe that their work is relevant, engaging, and challenging and that it offers opportunities for growth and development. intrinsic motivations include achievement, acknowledgement, responsibility, advancement, the job itself, and the possibility to improve (ibrahim & aslinda, 2015). while extrinsic motivation associated with factors outside of oneself, the driving force from outside the individual. extrinsic motivation includes government administration and policy, the leadership style that influences the relationship between supervisor and subordinates, working condition, salary, relationship with a colleague, safety, recognition, and promotion (armstrong, 2015; halawi, aronson, & mccarthy, 2005; nili, isfahani, & tanhaei, 2013). those motivational factors will give positive feelings when fulfilling the work assigned. the positive emotions are the representation of job satisfaction. job satisfaction defines as a positive organizational feeling. it is the main factor that has a significant contribution to job outcomes. it derives from different human needs and has a crucial role in the growth of staff abilities and performances (mehrad, 2015). job satisfaction reflects positive feelings in completing the tasks efficiently and professionally (szromek & wolniak, 2020). the monitoring of job satisfaction is vital abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 97 to the continuation of educational development. job satisfaction reflects the positive or negative feelings on the quality of the institution's services. it also demonstrates the dedication and loyalty of staff in achieving organizational goals. the academic staff's job satisfaction can help advance the army's educational institution (szromek & wolniak, 2020). there are various understandings of job satisfaction. scholars viewed job satisfaction as a complex emotional reaction due to drives, desires, demands, and expectations (bahri, sanusi, & asih, 2017). at the same time, other scholars defined job satisfaction as an influential factor that affects the academic staff's feelings towards their work (mehrad, 2015). another scholar mention job satisfaction as a combination of positive and negative emotions of the academic staff towards their job and show different reactions in the work environment. another definition of job satisfaction is a pleasurable or positive emotional state resulting in the appraisal of one's job or work experience (fessehatsion, 2016; ridzuan et al., 2018). job satisfaction consists of five dimensions. those are pay, work, supervision or leader, promotion, and co-worker (mehrad, 2015). in other words, job satisfaction is a positive attitude of staff to the duty as a response to work situations, cooperation among co-workers, reward received and other physical and psychological factors (bahri et al., 2017; szromek & wolniak, 2020). work relationship is a relationship perception of co-workers who are involved in their work. it is also about the supervisor's perceptions who support and encourage the staff's work endeavors. the supportive work environment is related to enhanced workplace attitudes and more effective practices (ridzuan et al., 2018). supervisor support is how academic staff see that supervisors offer support, consolation, and concern. the level of supervisor support may influence the academic staffs' performance; in any case, the impact might be intervened by role pressure. for instance, an essential way supervisors encourage the scholastic staff execution is by giving critical resources such as sufficient equipment and training. two-way communication is the most pertinent between the institution management and academic staff to create a conducive and friendly environment (ridzuan et al., 2018). payment and reward is a settled measure of cash or remuneration paid to academic staff by the institution in return for a profitable work performed. the compensation framework assumes an essential part of deciding a staff's level of job satisfaction. the developing needs of families with higher living costs force academic staff to look for higher salaries to ensure their future and life fulfilment (ridzuan et al., 2018). promotion plays a crucial role in the academic staff's career and life, depending upon different working experience sides. there are some influential factors in promotion: 1) appraisal of academic staff's experience, and it will be the optimistic outcomes of academic staff's effort, 2) the length of academic staff's service, 3) depends upon academic staff's ability and skill. these factors enhance the level of job satisfaction for the academic staff, especially in higher educational sector. expert academicians can provide more knowledge to their students, which will motivate them in a higher level of career (naveena & geevarghese, 2019). the source literature indicates that satisfaction with work is a pleasant or positive emotional state resulting from assessing one's achievements at work. satisfaction with work is also a sign of how the academic staffs perceive their work, considering it through effectiveness, the opportunity to use their resources and abilities, and the feeling of fulfilment from the performed job (szromek & wolniak, 2020). regarding the definition of job satisfaction and its impacts, the job satisfaction has remarkable features involved; 1) a guide to the human resources department which abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 98 has responsibilities in providing acceptable condition and facilities to the staff, 2) job satisfaction of the staff are affected by internal and external factors, 3) job satisfaction can be an organizational indicator in enhancing the staff performance (mehrad, 2015; ridzuan et al., 2018). research methods the research examines the positive attitude of the army academic staff when fulfilling their academic duty. to collect the primary data, a researcher used a job satisfaction questionnaire. only 105 respondents can examine further from 150 army academic staff in jakarta and surabaya. all of them have similar military rank. the variable tested is a positive attitude towards the task dimension, which can satisfy the personnel. the dimensions of task-positive attitude are the remuneration, the academic task itself, the promotion opportunities, the leaders and the co-workers. it is quantitative research without experimental designs. the research data were collected using questionnaires based on the literature review, which used to collect task-positive attitude among the army academic staff. the research variables will be analyzed using the rasch model with the application of winstep software version 3.73, including the validity and the reliability of the questionnaire items. rasch model analysis is a method that allows ordinal data from likert rating scales questionnaires to be converted into interval data (miftahuddin, hermanto, raharja, & chan, 2020). the rasch model is the most appropriate method for quantitative analysis in the field of human sciences since the research instruments used will produce ordinal data. rasch model analysis is based on the probability that allows respondents' responses to be accurately predicted on all items according to the measurement model. the rasch model changes the item scores measured on a likert rating scale which is an ordinal data, into an interval scale called "unit of opportunity logarithms" (logit) (miftahuddin et al., 2020). the research instrument developed represents the task-positive attitude, which has six dimensions with thirty indicators. those items are statements on the research instrument. before collecting the data, the items on the research instruments were tested using rasch model analysis with the application of winstep software version 3.73. the first examination was the research instruments validity, and reliability tested— table 1 shows the reliability test results. table 1 reliability test of the task-positive attitude instrument source: primary research data, 2019 table 1 shows that the mean person measure is +1.96 logit. it shows the mean value of the respondents in the task-positive attitude instrument. mean values greater than summary statistics person item total score measure total score measure mean 83.7 1.96 230.1 0.00 reliability 0.93 0.90 cronbach alpha 0.94 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 99 0.00 logit means respondents tend to agree with most items in the task-positive attitude instrument. it implies that respondents have a positive attitude towards academic duty. the alpha cronbach of the instrument reliability as a whole is 0.94, meaning that there is excellent interaction between the items and the respondents' responses (sumintono, 2014). next, the person reliability is 0.93 implies the consistency of the respondents' answers is excellent, and the item reliability is 0.90, meaning that the research instrument's items are also exceptional. both values mean that there is a firm consistency in respondents' responses, and the quality of the items is excellent to measure the task-positive attitude (sumintono, 2014). the next test is about the validity of the item of the research instruments. the research instrument was created based on the literature review. there are five dimensions of the task-positive attitude consist of thirty indicators. the task-positive attitude dimensions are payment (indicator p1 – p6), work (indicator w1 – w6), promotion (indicator pr1 – pr6), leader (indicator l1 – l6) and co-worker (indicator f1 – f6). the indicators are mentioned in table 2. table 2 the task-positive attitude constructs and items construct item code pay the salary is following the workload. p1 the salary is following the responsibilities. p2 the payment system is clearly understood. p3 the information about the payment system is clear and complete. p4 the salary standard applies the same to all academic staff. p5 the salary received is following the contribution. p6 work being an academic staff is a meaningful duty. w1 academic duty gives a learning opportunity. w2 academic duty gives responsibility in planning and carrying out the course. w3 academic duty optimizes responsibility in the course development. w4 academic duty gives feedback about the effectiveness of academic staff performance. w5 academic duty gives the feedback from students about academic staff performance. w6 promotion being an academic staff is allowing improving military career in the indonesian army. pr1 being an academic staff is allowing being promoted. pr2 the promotion is following the academic policy. pr3 the promotion opportunities are the same for all academic staff. pr4 the promotion is following academic duty. pr5 the promotion system is clear. pr6 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 100 source: literature review, 2019 the research instrument was tested using misfit item. the validity test results show that there are two items (pr4 and f5) that are outliers since the logit values are below 0.5 logit and above 1.5 logit (sumintono, 2014); therefore, those items cannot be indicators in the research instrument, as presented in table 3. table 3 validity of the task-positive attitude source: primary research data, 2019 another indicator of the validity and reliability of the research instrument is the unidimensionality test. it measures a variety of research instrument items. leader the leaders care about academic staff. l1 the leaders are helpful. l2 the leaders are open to any feedback. l3 the leaders are friendly. l4 the leaders are appreciative. l5 the leaders are communicative. l6 coworker the fellow academic staff are friendly. f1 the fellow academic staff are helpful. f2 the fellow academic shares mutual support. f3 the fellow academic staff are cooperative. f4 the fellow academic gives teamwork spirit among the fellow academic staff. f5 the fellow academic staff are competent. f6 item s outfit mnsq (logit) item s outfit mnsq (logit) item s outfit mnsq (logit) item s outfit mnsq (logit) item s outfit mnsq (logit) p1 0.96 w1 1.13 pr1 0.90 l1 0.98 f1 0.71 p2 0.83 w2 1.03 pr2 0.80 l2 0.56 f2 0.65 p3 1.10 w3 0.58 pr3 0.79 l3 0.74 f3 0.70 p4 1.25 w4 0.65 pr4 1.76 l4 1.03 f4 0.94 p5 1.54 w5 0.85 pr5 1.54 l5 0.81 f5 0.39 p6 0.90 w6 0.47 pr6 0.83 l6 1.35 f6 0.82 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 101 table 4 instrument unidimensionality of the task-positive attitude source: primary research data, 2019 table 4 show that raw variance data is 43.4%. it means that the research instrument can measure the research variable since it is higher than 20% (sumintono, 2014). moreover, the unexplained variance numbers are below 10%; it implies that there is less than 10% unexplained variance of the research instrument. in other words, the research instrument can measure the research variable with the various items (sumintono, 2014). another validity test for the research instrument is the rating scale. it is a test that carried out to examine the ranking of the selections used, which is confusing or not for the respondents. table 5 rating scale of the task-positive attitude source: primary research data, 2019 table 5 mentions that the average observation starts from logit -2.07 for the choice of score one (strongly disagree). the choice of rating two (disagree) is logit -0.34 then increases to the fourth choice (strongly agree) with logit 4.49. it implies that the respondents can choose the category in the research instrument with certainty, showing by the increasing logit values. the andrich threshold validates the choices category. the values of andrich threshold shows that it moves from none to positive value sequentially. it means that the options in the research instrument are valid for the respondents. results and discussions the rasch model analysis explains that the most task-positive attitude indicator for the army academic staff is mutual support between the fellow academic staff. it infers that the team spirit (esprit de corps) of the army academic staff is strong. while instrument unidimensionality empirical raw variance explained by measures 43.4% unexplained variance in 1 st contrast 9.5% unexplained variance in 2 nd contrast 7.0% unexplained variance in 3 rd contrast 4.8% unexplained variance in 4 th contrast 4.6% unexplained variance in 5 th contrast 3.6% category label score observed average andrich threshold 1 1 -2.07 none 2 2 -0.34 -3.93 3 3 1.96 -1.01 4 4 4.49 4.94 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 102 the least task-positive attitude indicator for the army academic staff is the information about the payment system is clear and complete. it implies that they are not satisfied with the information about the payment system, as shown in table 6. table 6 the most positive to the least positive of the task-positive attitude source: primary research data, 2019 the information about the payment system can be the most unsatisfactory dimension because the payment system based on the common standard regardless of the duty territory, the military rank they belong or military tenure. all will be the same. another rasch model analysis examines the dimensions (see figure1). it shows that the most positive attitude dimension of the army academic staff is co-workers with the highest logit score (2.81). it infers that the team spirit (esprit de corps) of the army academic staff is trustworthy. at the same time, the least positive attitude dimension of the army academic staff is the promotion. it implies that the army academic staff do not consider the academic duty will make them got a promotion after fulfilling the obligation. a more in-depth rasch model analysis is about the task-positive attitude dimensions and indicators. the rasch model analysis on each dimension of the task-positive attitude indicators explains that the army academic staff is dissatisfied with the salary items outfit mnsq (logit) items outfit mnsq (logit) items outfit mnsq (logit) items outfit mnsq (logit) p4 1.44 p3 0.54 l1 0.10 w2 -0.58 p5 1.44 w3 0.32 l6 0.10 l4 -0.73 pr3 1.24 w4 0.32 w1 0.03 f1 -1.04 pr2 1.03 pr6 0.32 l2 -0.05 f6 -1.20 pr1 0.82 w5 0.17 w6 -0.12 f2 -1.28 l5 0.75 p1 0.10 l3 -0.20 f4 -1.67 p6 0.61 pr5 0.10 p2 -0.43 f3 -2.14 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 103 standard since it applies the same to all academic staff. meanwhile, they show a positive attitude to the salary accepted since they feel that the wage is following the responsibilities. for the work dimension, it shows that they feel dissatisfied with limited responsibility in developing academic duty. in contrast, they are satisfied with the academic task since they consider it as a learning opportunity. the promotion dimension explains that the army academic staff is dissatisfied with the promotion system since it is following the standard policy. however, they are satisfied with the clarity of the promotion system applied. the leader dimension shows that the army's academic staff is dissatisfied with their leader from the appreciation point of view. they feel that the leader is not appreciative even though they are satisfied with the friendliness of the leader. and the last dimension of the task-positive attitude explains that the army academic staff is dissatisfied with the unfriendly colleague. yet, they are satisfied with the teamwork spirit between the fellow academic staff. the dimension map of the taskpositive attitude is presented in figure 2. figure 2 the dimension map of the task-positive attitude the research results support the scholars' opinions about co-workers who are involved in their work and their relationship. it shows that the most positive attitude dimension of the army academic staff is co-workers with the highest logit score (2.81). it infers that the team spirit (esprit de corps) of the army academic staff is trustworthy. the research results have a significant impact that can support the scholars' research and opinion about co-worker as the positive attitude dimension (ridzuan et al., 2018). the research results also found that the least positive attitude of the army academic staff is promotion. it has the lowest logit value (-0.59); in other words, the rise makes the army academic staff demotivation. it proves the scholars' opinions that explain promotion plays a crucial role in the academic staff's career and life, depending upon different working experience sides (naveena & geevarghese, 2019). conclusion job satisfaction defines as a pleasant or positive emotional state resulting from assessing one's achievements at work. satisfaction with work is also a sign of how the academic staffs perceive their work, considering it through effectiveness, the opportunity to use their resources and abilities, and the feeling of fulfilment from the performed job. it is the main factor that has a significant contribution to job outcomes. the indonesian national army wants to have high-quality human resources to make a positive contribution to both planning and implementing the duties and responsibilities of the army's tour-of-duty. the research results show that the military institution has a specific method in developing the organization members. they are best in developing team spirit among the members. the indonesian national army also has some code of conduct that has abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 104 been internalized among members, such as sapta marga and the soldiers' vows. the results of the team-building development process have been successfully proven, based on the research results. the rasch model analysis shows that team-spirit among the indonesian national army members is very solid. the research dimensions and indicators are proofs how concrete their team-spirit wherever they fulfil their tour-of-duty. the least positive task-attitude is the promotion and the payment system. based on the research results, the academic duty does not guarantee the rise of the military rank for the academic staff after they completed. besides, they also feel that the payment system based on the standard policy seems unsatisfactory factor for them. the promotion is the most challenging factor to agree with; therefore, the promotion system in the indonesian national army needs to be renewed. the promotion system should add the achievement factor on each military duties as an additional factor that can give extra value to the high achiever in each military duty. the standard army duties are operational, staffing duties and academic duties. the achievement factor divides into three categories. those are high achiever army, medium achiever army and low achiever army. by adding the achievement factor, those who are a high achiever in academic duty will be motivated since they know that their contribution in the educational task can be an additional point for their next military rank promotion. the indonesian national army should also develop the knowledge management behavior of the soldiers to make them realize that learning and development is a mechanism for creating and sharing knowledge, driving organizational change and renewal, and achieving strategic organizational goals. learning and development also facilitate the acquisition of knowledge, skills, and experience through learning processes between individuals and groups, both structured and individual. furthermore, the indonesian national army should make all the members realize that the army academic institution is one of the learning organization where people continually expand their capacity to create new and expansive patterns of thinking. this research results explain the promotion is the most concern motivational factor for the army academic staff. hopefully, the research results could encourage the army human resources department to give added value to the army academic staff when they fulfil their duties as academic staff with high achievement, especially in transferring knowledge, best practices and experiences. with more appreciation of academic responsibilities, the army academic staff will be more enthusiastic in completing their academic duties since it will add the points to their military career. this research still has some limitations. for further study, it will be better to rearrange the research instruments with more items to measure each job satisfaction dimensions. it is also better to add more respondents to different military duties or other industry. acknowledgement we want to express our gratitude and appreciation to mr bambang sumintono, phd, who taught us about rasch model analysis and gave us opportunities to practice more using the winstep software version 3.73 in rasch model analysis. reference armstrong, m. (2015). handbook of reward management practice. retrieved from https://www.koganpage.com/product/armstrong-s-handbook-of-rewardmanagement-practice-9780749473891 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 105 bahri, m. s., sanusi, a., & asih, p. (2017). job satisfaction as a benchmark of higher education leadership for lecturer performance in indonesia. 19(9), 15– 23. https://doi.org/10.9790/487x-1909051523 fessehatsion, p. w. (2016). factors affecting academic job satisfaction in the public institutions of higher education, eritrea. research on humanities and social sciences, 6(11), 1–6. halawi, l. a., aronson, j. e., & mccarthy, r. v. (2005). resource-based view of knowledge management for competitive advantage in an organization. the electronic journal of knowledge management, 3(2), 75–86. ibrahim, m. a., & aslinda, a. (2015). the effect of motivation on organizational citizenship behavior (ocb) at telkom indonesia in makassar. bisnis & birokrasi journal, 21(2). https://doi.org/10.20476/jbb.v21i2.4324 mehrad, a. (2015). job satisfaction amongst academic staff: a literature review. journal of educational, health and community psychology, 4(3), 119–124. https://doi.org/10.12928/jehcp.v4i3.3686 miftahuddin, a., hermanto, b., raharja, s. j., & chan, a. (2020). city brand attractiveness on tourism using rasch model approach. international journal of supply chain management, 9(2), 150–156. naveena, m., & geevarghese, g. (2019). job satisfaction of academicians-a conceptual study in higher educational sector. international journal of recent technology and engineering, 8(1c2), 17–21. nili, d. m., isfahani, d. a. n., & tanhaei, m. h. (2013). knowledge sharing and its impact on employees’ motivation. international journal of academic research in progressive education and development, 2(3), 142–152. https:// doi.org/10.6007/ijarped/v2-i3/95 ridzuan, a. r. bin, baharudin, n. ‘aqilah binti a., ismail, s., arham, a. f., nazri, n. m., & rahman, m. f. a. (2018). measuring the factors of employees’ job satisfaction among lecturers in uitm melaka. international journal of academic research in business and social sciences, 8(10), 899–914. https://doi.org/10.6007/ ijarbss/v8-i10/4788 sumintono, b. (2014). rasch sumintono.pdf. szromek, a. r., & wolniak, r. (2020). job satisfaction and problems among academic staff in higher education. sustainability (switzerland), 12(12). https:// doi.org/10.3390/su12124865 abidin, d.z., wibowo, sudiarditha, i.k.r., herlina, m.g. journal of business and behavioural entrepreneurship, 4(2), 94-105 behind the positive attitude of the indonesian army academic staff: a rasch model analysis. https://doi.org/10.21009/jobbe.004.2.08 https://doi.org/10.21009/jobbe.004.2.01 21 the effect of emotional intelligence with worklife balance and burnout on job satisfaction azzahra dynaeira nathaya1), nurdin hidayat2), sholatia dalimunthe3) 1,2,3)universitas negeri jakarta email: 1azzahranathaya30@gmail.com, 2nurdinhidayat@unj.ac.id, 3tiadalimunthe@unj.ac.id abstract this study aims to find the effect of emotional intelligence with work-life balance and burnout on job satisfaction. the method used is a quantitative method. the sampling technique used purposive sampling which refers to isaac and michael's table so that a population of 248 respondents was obtained. the object of research in this study is a teacher at a state vocational school in dki jakarta. data were collected through a questionnaire using a modified 4-point likert scale. the results showed that emotional intelligence had a positive effect on job satisfaction, with a t-statistic value > 1.96, which was 8.795. work-life balance has a positive effect on job satisfaction, with a tstatistic value > 1.96, which is 3,533. burnout has a negative effect on job satisfaction, with a t-statistical value > 1.96, which is 4.610. emotional intelligence has a positive effect on work-life balance, with a t-statistic value > 1.96, which is 7.263. emotional intelligence has a negative effect on burnout, with a t-statistic value <1.96 which is 7358. work-life balance mediates the effect of emotional intelligence on job satisfaction, with a t-statistic value > 1.96, which is 4,021. burnout mediates the effect of emotional intelligence on job satisfaction, with a t-statistic value > 1.96, which is 2.859. there is an influence of 54.7% between the dependent variable, namely emotional intelligence (x), work-life balance (z1) and burnout (z2) on the dependent variable in the form of job satisfaction (y). keywords: job satisfaction, emotional intelligence. work life balance, burnout. received: 14 august 2022 ; accepted: 11 october 2022 ; how to cite: nathaya, a.d, et.al. (2022). the effect of emotional intelligence with work-life balance and burnout on job satisfaction. journal of business and behavioural entrepreneurship, 6(1), 21-35. https://doi.org/10.21009/jobbe.006.1.04 mailto:1azzahranathaya30@gmail.com, mailto:3usep.suhud@unj.ac.id 22 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 introduction in the current era of globalization, education is considered a very important component and is part of human needs. where with the development of science and technology, it requires humans to always move, change and become better. one of the things that must be considered is in the field of education, where education aims to build the character of the nation, namely to become a complete human being who has high quality of faith, character and rationality. this education can be used as a way as well as a benchmark for the progress and success of a country in printing and forming quality human beings. with good quality education will determine the quality of human resources and with good quality education it will improve the quality of human life in all aspects of life. teachers or educators are human resources who play an important role in the world of education, namely leading the daily learning activities in schools. in order to achieve competitive advantage and efforts to achieve educational goals, the quality of the human resources in it needs to be considered and improved. the high quality of teachers and educators will make it easier for schools or educational institutions to achieve the vision and mission that have been designed and prepared in advance. as an effort to improve the quality of human resources within the scope of educational institutions, one of the things that must be considered is the aspect of job satisfaction or in this scope, namely teachers and educators. this is because the job satisfaction of a teacher will have a direct impact on the performance of educators while carrying out their duties and responsibilities in their daily teaching and learning activities. at the beginning of 2020 there was an unexpected situation, namely various countries in the world including indonesia had to face an unpleasant situation, in the form of disease barriers or a virus called covid-19. the spread of the covid-19 virus is still high and has claimed many lives, causing a situation called the "covid-19 pandemic". this situation causes various sectors to experience obstacles, starting from the economic sector, the aviation sector, the education sector and other sectors are also affected. to take steps to prevent the risk of transmission and spread of the covid-19 virus getting wider and worse, the government has issued various important policies, including work from home. the manpower, transmigration, and energy office of the dki jakarta province itself has issued a circular letter number 14/se/2020 of 2020 regarding the work from home appeal. the issuance of this circular follows up on the instruction of the governor of dki jakarta province number 16 of 2020 concerning increasing awareness of the risk of transmission of corona virus disease (covid-19). the issuance of the circular is expected to be able to take preventive steps related to the risk of transmission of covid19 infection, namely by doing work at home or known as work from home (wfh). the implementation of work from home is not only mandatory to be carried out by workers in companies or agencies, but also mandatory to be carried out by human resources within the scope of education, namely teachers, students and other school members. the regulation is stated in circular letter number 4 of 2020 concerning the implementation of education in the coronavirus disease (covid-19) emergency where one of the important points in this circular is related to the online/distance learning (pjj) policy, which has an explanation that all daily learning activities days carried out at their respective homes or remotely. 23 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 with the issuance of the work from home (wfh) policy, it has an impact on job satisfaction felt by workers. quoted from republica.id, based on the results of a survey conducted by jobstreet in october 2020, information was found that as many as 86% of workers in indonesia have experienced the impact of the covid-19 pandemic since early 2020. the results of the survey explained that the quality of life of the workers decreased drastically during the pandemic. where even though they still have jobs, as many as 33% of workers who took part in this survey have felt no longer happy with their work situation. worker happiness level source: jobstreet.com although not the majority, but one of the factors that can influence their dissatisfaction is the policy of working from home. from the results of the study, it was found that the work from home policy had an impact on the low level of happiness felt by workers and the emergence of a sense of dissatisfaction of workers while carrying out their work. so it can be said that during the implementation of work from home, there are many obstacles that affect the quality of life of the workers and have an impact on the job satisfaction felt by the employees, and they are no longer happy with their work situation. based on the results of pre-research conducted on 25 respondents, namely active teachers who teach at state vocational high schools in the dki jakarta area, it was found that there were 13 respondents who felt dissatisfaction when carrying out their work during work from home, while the other 12 respondents felt satisfaction while doing their jobs. them during work from home held. this study was conducted to find the effect of emotional intelligence on job satisfaction with work-life balance and burnout as a mediating variable, namely by conducting case studies on workers who have an obligation to follow the work from home policy of the company or institution where they work. in this study, the selected locations and research samples were state vocational high school teachers in dki jakarta. the school gives an obligation to all their teachers or educators to carry out teaching and learning activities in their respective homes or online and is known as "distance learning". literature review job satisfaction is one of the most studied aspects today and is part of the critical issues in the field of human resources. job satisfaction itself is an attitude (cognitionaction), a feeling of pleasure (affection-expression), or a gap between what has been 24 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 obtained and what is expected (sunarta, 2019). according to bagis et al., (2021) job satisfaction reflects a person's attitude towards their work, this can be seen from the positive attitude of employees towards their work and everything they face in their work environment. job satisfaction as an assessment of the perceived characteristics of the job, work environment and emotional experiences gained in work (pratama et al., 2022). according to wulandari et al., (2020) job satisfaction is the final condition that arises due to the achievement of certain goals, which is an affective reaction from employees (feelings) about aspects of their work situation. therefore, job satisfaction is an important factor that can encourage the work of employees and organizations, because job satisfaction is the result of employees' perceptions of their work. where the work is something that is considered important in their daily activities. for an employee, high job satisfaction is very important, with high job satisfaction it will increase employee morale, which can also increase efficiency in carrying out their daily work. emotional intelligence is the ability to sense, understand, and effectively apply emotional power and sensitivity as a source of human energy, information, connection, and influence. (farhan & alfin, 2019). according to ebrahimi et al., (2018) emotional intelligence is defined as an individual's awareness of his emotions and the emotions of others and the ability to recognize and control them as well as the ability to express sympathy for others. according to pangestu (2019) emotional intelligence is an individual's skill in encouraging oneself, surviving failure, controlling emotions, and controlling mental conditions. emotional intelligence can also be defined as the ability to monitor one's own and other's emotions, to distinguish between different emotions and to label them appropriately and to use emotional information to guide thinking and behavior (ebrahimi et al., 2018). with good emotional intelligence, individuals will find it easier to interact with other people and when the individual is carrying out his work, it will be easier to work together in completing work and achieving the desired goals. work-life balance is a form of work pattern that allows employees to combine their work responsibilities with personal responsibilities such as raising children and caring for older/elderly relatives (ardiansyah & surjanti, 2020). according to jaharuddin & zainol (2019) work-life balance is rooted in the need for employees to strike a healthy balance between wanting to participate fully in their professional life while providing the best for loved ones or in essence between professional and personal responsibilities. from the employee's point of view, work-life balance is a form of how workers can manage their work accompanied by carrying out personal obligations or responsibilities towards their families, and from the company's point of view, work-life balance is a challenge to create a supportive corporate culture where workers can always focus on work while at work (asepta & maruno, 2017). the concept of work-life balance is very important and deserves attention, where this concept is useful for achieving psychological, emotional and cognitive stability of each employee, which will be directly related to the effectiveness of the organization in which they work. a good balance between personal life and professional life will lead to high morale, with this high spirit it can bring job satisfaction felt by workers so that they can provide good performance and there is a sense of full responsibility while carrying out their work and a sense of full responsibility in carrying out their personal lives. 25 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 burnout is a form of physical, emotional, and mental exhaustion that occurs in someone who is in a situation full of long-term emotional demands (kartono & hilmiana, 2018). ayu & dharmapatni (2019) explained that burnout refers to the loss of interest and job satisfaction due to stressful working conditions. when people experience burnout, they feel emotionally and physically exhausted and unable to respond positively to their responsibilities and career opportunities. burnout is also defined as a psychological habit which includes fatigue, depersonalization and reduced skills in carrying out routine activities, causing depression, anxiety, or even sleep symptoms (arrozak et al., 2020). according to putri et al., (2019) burnout describes the condition of employees who experience excessive work fatigue, and working period is one of the factors that cause burnout. burnout is an important factor that must be considered both for workers and for agencies / institutions, because burnout is a psychological process caused by work stress that cannot be overcome, which leads to emotional exhaustion, personality changes, and decreased sense of achievement. some of them are caused by work patterns, workloads they have and the amount of time spent working so that it triggers conflicts, both conflicts that occur in their professional lives and conflicts in their personal lives. with the onset of burnout in a worker, it will cause prolonged stress and as a result will affect the satisfaction and performance of workers when carrying out their work. from the theoretical literacy above, the researcher formulates the following hypothesis: research method the research method is the method used to obtain data in a study. according to sugiyono (2016) research method is basically a scientific method that aims to obtain data with a specific purpose based on the characteristics of science, namely rational, empirical, and systematic. the approach in this research is quantitative research. in this study, the selected locations and research samples were state vocational high school teachers in dki jakarta. according to cooper & schindler (2014) population is a collection of individuals who are used as research objects which are assessed based on the characteristics set by the researcher or the object of observation that has the same characteristics, where the individual has the qualities required by the researcher and is used to obtain research results. in this study, the population was state vocational high school teachers in dki jakarta with a total population of 3,181 teachers. the sampling technique in this research is purposive sampling, which is a sampling technique in which objects and subjects are selected based on certain considerations. in this study, the selected locations and research 26 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 samples were state vocational high school teachers in dki jakarta. because it is not possible to conduct research using all the existing population or all teachers of state vocational schools in dki jakarta, the researchers used isaac and michael's formula to determine the number of research samples from the existing population. the number of samples in this study amounted to 248 teachers of state vocational high schools in dki jakarta. so that the distribution of the sample by region in dki jakarta is as follows: in this study, researchers used a likert scale by giving 4 choices, including strongly agree (ss), agree (s), disagree (ts) and strongly disagree (sts). research instrument testing the measuring instrument in this study was in the form of a questionnaire which was distributed to teachers of state vocational schools in dki jakarta. the results of the analysis of the data obtained are quantitative (statistical) or using numbers that can be interpreted as a result of proving the hypothesis that was designed previously. the research model used is a path analysis model. the analytical technique used in this study is a sem (structural equation modeling) model which is operated with the smartpls version 3.0 program for hypothesis testing. variable indicator emotional intelligence self-awareness social self management relationship management work-life balance time balance involvement balance satisfaction balance burnout physical exhaustion emotional exhaustion mental exhaustion low of personal accomplishment job satisfaction the work itself salary promotion opportunities supervision work colleague 27 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 results and discussion convergent validity testing the validity using the pls criteria can be done by looking at the value on the loading factor, where the value must be > 0.70, so it can be said to be a valid statement. it can be concluded that the higher the value obtained, the more valid the indicator is. based on the calculation results of the loading factor listed in the table above, it is known that all items or indicators of emotional intelligence, work-life balance, burnout and job satisfaction have a value of > 0.70, so it can be concluded that all items or indicators meet the validity requirements and can be said to be valid. composite reliability emotional intelligence work-life balance burnout job satisfaction x.1 0.710 x.2 0.714 x.3 0.755 x.4 0.735 x.5 0.786 x.6 0.782 x.7 0.805 z1.1 0.770 z1.2 0.773 z1.3 0.813 z1.4 0.839 z1.5 0.788 z1.6 0.752 z2.1 0.722 z2.2 0.703 z2.3 0.720 z2.4 0.713 z2.5 0.712 z2.6 0.742 z2.7 0.717 z2.8 0.737 z2.9 0.784 z2.10 0.713 y.1 0.770 y.2 0.815 y.3 0.790 y.4 0.769 y.5 0.750 y.6 0.712 y.7 0.748 y.8 0.726 28 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 variable composite reliability average variance extracted (ave) keterangan emotional intelligence 0.903 0.572 reliable work-life balance 0.909 0.624 reliable burnout 0.918 0.528 reliable job satisfaction 0.916 0.578 reliable source: data processed by researchers with smart pls 3.0 (2022) based on the results of the calculations listed in the table above, it is known that all items/statements have a composite reliability value > 0.70 and an average variance extracted (ave) value with a value > 0.50 so it can be concluded that all items/statements meet the reliability requirements and can be said to be reliable or can reliable. cronbach’s alpha cronbach's alpha value is used for the purpose of strengthening the reliability test results, where a variable can be said to be reliable if the cronbach's alpha value > 0.70. variable cronbach’s alpha keterangan emotional intelligence 0.875 reliable work-life balance 0.879 reliable burnout 0.901 reliable job satisfaction 0.896 reliable source: data processed by researchers with smart pls 3.0 (2022) based on the results of cronbach's alpha calculations listed in the table above, it is known that all items/statements have a value > 0.70 so it can be concluded that all items/statements meet the reliability requirements and can be said to be reliable or reliable. inner model analysis r-square (r2) source: data processed by researchers with smart pls 3.0 (2022) based on the table above, it can be explained that the value of r square (r2) on the dependent variable (job satisfaction) was found to be 0.547 which indicates that there is an influence of 54.7% between the dependent variable, namely emotional intelligence 29 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 (x), work-life balance (z1) and burnout (z2) to the dependent variable in the form of job satisfaction (y). to get more accurate results, the predicted effect can also be seen from the value of r square adjusted. from the above calculation, it is known that the value of r square adjusted on the dependent variable (job satisfact ion) was found to be 0.542, which indicates that there is an influence of 54.2% between the dependent variables, namely emotional intelligence (x), work-life balance (z1) and burnout (z2) on the dependent variable in the form of job satisfaction (y). f-square (f2) source: data processed by researchers with smart pls 3.0 (2022) based on the table above, the results can be explained as follows: a. the relationship between the variable constructs of emotional intelligence (x) in explaining job satisfaction (y) is 0.313, indicating that the two variables have a strong relationship. b. the relationship between the work-life balance construct (z1) in explaining job satisfaction (y) is 0.055 indicating that the two variables have a weak relationship. c. the relationship between the burnout construct (z2) in explaining job satisfaction (y) is 0.084 indicating that the two variables have a weak relationship. d. the relationship between the construct of emotional intelligence (x) in explaining work-life balance (z1) is 0.348 indicating that the two variables have a strong relationship. e. the relationship between the construct of emotional intelligence (x) in explaining burnout (z2) is 0.351 indicating that the two variables have a strong relationship. hypothesis test path coefficients 30 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 source: data processed by researchers with smart pls 3.0 (2022) h1: emotional intelligence has a positive and significant effect on job satisfaction. based on the results of the calculation of the path coefficients listed in the table above, it shows that emotional intelligence has a positive effect on job satisfaction directly, with the original sample value of 0.481 and t-statistics > 1.96 which is 8,795. next, related to the p-values, the results were 0.000 < 0.05 indicating that the emotional intelligence variable had a significant effect on job satisfaction. so that it can be interpreted that the better the emotional intelligence of workers, the workers will feel more satisfied with their work, and if the workers are satisfied with their work, they can provide good performance and productivity as well. so it can be concluded that h1 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by erlangga arya mandala & faresti nurdiana dihan (2018) which states that workers with higher emotional intelligence have the possibility to achieve good job satisfaction. emotional intelligence has a positive influence on job satisfaction and means that the better the emotional intelligence an individual has, the more satisfied the individual will be with their work. h2: work-life balance has a positive and significant effect on job satisfaction. based on the results of the calculation of the path coefficients listed in the table above, it shows that work-life balance has a positive effect on job satisfaction directly, with the original sample value of 0.184 and t-statistics > 1.96 which is 3.533. next, related to the p-values, the results were 0.000 <0.05, indicating that the work-life balance variable has a significant effect on job satisfaction. so that it can be interpreted that the increasing work-life balance of a worker results in increased job satisfaction which is actually felt by the worker. so it can be concluded that h2 in this study is accepted. . the results of this study are in accordance with the results of previous research conducted by hanisa putri pratama & iwan kresna setiadi (2021) which stated that worklife balance has a positive effect on job satisfaction, namely the higher the work-life balance owned by employees, the higher the job satisfaction. perceived by the employee. h3 : burnout has a negative and significant effect on job satisfaction. 31 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 based on the results of the calculation of the path coefficients listed in the table above, it shows that burnout has a negative effect on job satisfaction directly, namely with the original sample value of -0.228 and t-statistics > 1.96 which is 4.610. next, related to the p-values, the results were 0.000 < 0.05 indicating that the burnout variable had a significant effect on job satisfaction. so that it can be interpreted that with a low level of burnout, the job satisfaction that will be felt by workers while undergoing their work will increase. so it can be concluded that h3 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by pangemanan et al., (2017) which explains that burnout has a negative effect on job satisfaction which indicates that the lower the burnout level possessed by workers, the higher job satisfaction will be felt by workers. the worker. h4: emotional intelligence has a positive and significant effect on work-life balance. based on the calculation results of the path coefficients listed in the table above, it shows that emotional intelligence has a positive effect on work-life balance directly, with the original sample value of 0.508 and t-statistics > 1.96 which is 7.263. next, regarding the p-values, the results were 0.000 < 0.05, indicating that the emotional intelligence variable has a significant effect on work-life balance. so it can be interpreted that emotional intelligence can be one of the driving factors in achieving work and personal life balance, with good emotional intelligence it will have a good work and personal life balance as well. so it can be concluded that h4 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by shylaja & prasad (2017) which states that emotional intelligence on worklife balance has a positive and significant influence, so it can be concluded that the higher the emotional intelligence of an individual, the higher the emotional intelligence of an individual. the greater the opportunity to achieve a balance between an individual's professional and personal life (work-life balance). h5: emotional intelligence has a negative and significant effect on burnout. based on the results of the calculation of the path coefficients listed in the table above, it shows that emotional intelligence has a negative effect on burnout directly, with the original sample value of -0.510 and t-statistics > 1.96 which is 7358. next, related to the p-values, the results were 0.000 < 0.05 indicating that the emotional intelligence variable had a significant effect on burnout. so it can be interpreted that the higher the emotional intelligence of the worker, the lower the level of burnout that will be experienced by the worker. conversely, the lower the emotional intelligence of the worker, the higher the level of burnout that will be experienced by the worker. so it can be concluded that h5 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by karim et al., (2021) showing that emotional intelligence has a significant negative effect on burnout, where individuals with high emotional intelligence can reduce the level of burnout felt by these individuals. so it can be concluded that individuals with a high level of emotional intelligence can help individuals to minimize the existence or occurrence of burnout in themselves. indirect influence analysis 32 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 source: data processed by researchers with smart pls 3.0 (2022) h6: emotional intelligence with work-life balance as a mediation has a significant effect on job satisfaction. based on the calculation results of the path coefficients listed in the table above, it shows that work-life balance mediates the effect of emotional intelligence on job satisfaction positively, with the original sample value of 0.116 and t-statistics > 1.96, namely 4.021. next, related to the p-values, the results were found to be 0.000 < 0.05 indicating that the work-life balance variable mediates the effect of emotional intelligence on job satisfaction significantly. so that it can be interpreted that emotional intelligence can be one of the driving factors in achieving work-life balance (work-life balance), and with a balance of work and personal life, workers can also produce a high level of job satisfaction as well. so it can be concluded that h6 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by nurjanah & indawati (2021) which showed that work-life balance was proven to fully mediate (perfect mediation) the effect of emotional intelligence on job satisfaction. so that it can be interpreted that emotional intelligence can be one of the driving factors in achieving work-life balance, and with a balanced work life, workers can also produce a high level of job satisfaction. h7: emotional intelligence with burnout as a mediation has an effect on job satisfaction. based on the calculation results of the path coefficients listed in the table above, it shows that burnout mediates the influence of emotional intelligence on job satisfaction positively, with the original sample value of 0.093 and t-statistics > 1.96 which is 2.859. next, regarding the p-values, the results were found to be 0.004 < 0.05, indicating that the burnout variable mediates the effect of emotional intelligence on job satisfaction significantly. so that it can be interpreted that high emotional intelligence can encourage low burnout levels and can make job satisfaction high. so it can be concluded that h7 in this study is accepted. the results of this study are in accordance with the results of previous research conducted by kiziloglu & sahin (2022) which showed that burnout was able to significantly mediate the effect of emotional intelligence on job satisfaction. so that it can be interpreted that with good emotional intelligence and low burnout can have an influence on job satisfaction felt by workers. conclusion 33 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 based on the results of the research and discussion that have been described previously through descriptive data analysis, statistical data processing and interpretation of research data, the following conclusions can be drawn: 1. the results of the first hypothesis test in this study indicate that emotional intelligence has a positive and significant effect on job satisfaction. so that it can be interpreted that the better the emotional intelligence of workers, the workers will feel more satisfied with their work, and if the workers are satisfied with their work, they can provide good performance and productivity as well. so it can be concluded that h1 in this study is accepted. 2. the results of the second hypothesis test in this study indicate that work-life balance has a positive and significant effect on job satisfaction. so that it can be interpreted that the increasing work-life balance of a worker results in increased job satisfaction which is actually felt by the worker. so it can be concluded that h2 in this study is accepted. 3. the results of the third hypothesis test in this study indicate that burnout has a negative and significant effect on job satisfaction. so that it can be interpreted that with a low level of burnout, the job satisfaction that will be felt by workers while undergoing their work will increase. so it can be concluded that h3 in this study is accepted. 4. the results of the fourth hypothesis test in this study indicate that emotional intelligence has a positive and significant effect on work-life balance. so it can be interpreted that emotional intelligence can be one of the driving factors in achieving work and personal life balance, with good emotional intelligence it will have a good work and personal life balance as well. so it can be concluded that h4 in this study is accepted. 5. the results of the fifth hypothesis test in this study indicate that emotional intelligence has a negative and significant effect on burnout. so that it can be interpreted that the higher the emotional intelligence of the worker, the lower the level of burnout that will be experienced by the worker. on the other hand, the lower the emotional intelligence of the individual, the higher the level of burnout that will arise. so it can be concluded that h5 in this study is accepted. 6. the results of the sixth hypothesis test in this study indicate that the work-life balance variable mediates the effect of emotional intelligence on job satisfaction significantly. so it can be interpreted that emotional intelligence can be one of the driving factors in achieve a balance of work and personal life, and with a balance of work and personal life, workers can also produce a high level of job satisfaction as well. so it can be concluded that h6 in this study is accepted. 7. the results of the seventh hypothesis test in this study indicate that the burnout variable mediates the effect of emotional intelligence on job satisfaction significantly. so that it can be interpreted that high emotional intelligence can encourage low burnout levels and can make job satisfaction high. so it can be concluded that h7 in this study is accepted. suggestions 34 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 based on the conclusions, implications and limitations of the research that have been described previously, the researcher can provide several suggestions that can be used as references, descriptions or references for the object of research, leaders and for other researchers to conduct similar research in the future, including: 1. teachers of state vocational schools in dki jakarta should pay more attention to emotional intelligence, work-life balance and signs of burnout in themselves, because with good emotional intelligence, it will help the teacher to achieve worklife balance and can achieve job satisfaction which is good too. and with good emotional intelligence it will minimize the emergence of burnout in a teacher, and if the lower the burnout level in a teacher, the easier it will be to achieve the desired job satisfaction. 2. school leaders and state vocational education institutions in dki jakarta should pay more attention to the level of job satisfaction felt by teachers, because job satisfaction is one of the important factors that will directly affect the performance of teachers while carrying out all their duties and responsibilities leading the smooth process. daily learning. with high teacher job satisfaction, it will increase the enthusiasm and motivation of teachers to teach and can have a positive influence on students and the desired work value, so as to facilitate the process of achieving learning goals and increase opportunities to achieve the desired achievement. 3. to other researchers who will conduct similar research by raising the same topic and variables, it is hoped that they can improve the results of previous studies by deepening research results and proving theories by adding research samples, changing the research object to be wider, and so on. which can support more diverse research. references ardiansyah, c. a., & surjanti, j. 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(2021). job satisfaction as a mediation variables on the effect of organizational culture and organizational commitment to employee performance. international journal of economics, bussiness and accounting research (ijebar), 5(2), 424–434. cooper, & schindler. (2014). bussiners research method. new york: mcgrawhill. 35 nathaya, a.d., et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 21-35 ebrahimi, m. r., khoshsima, h., & zare-behtash, e. (2018). the impacts of emotional intelligence enhancement on iranian intermediate efl learners writing skill. international journal of instruction, 11(1), 437–452. https://doi.org/10.12973/iji.2018.11130a farhan, m., & alfin, e. (2019). the effect of emotional intelligence and self effycacy towards students achievement. jipm (jurnal ilmiah pendidikan matematika), 8(1), 37. https://doi.org/10.25273/jipm.v8i1.4669 hariani, g. (2022). faktor-faktor yang mempengaruhi kepuasan kerja karyawan : work-life balance , budaya organisasi , dan gaya kepemimpinan ( suatu kajian literature review manajemen sumber daya manusia ). 3(1), 119–127. hukumonline.com. (2020). surat edaran kepala dinas tenaga kerja, transmigrasi dan energi provinsi dki jakarta. www.hukumonline.com/pusatdata%0d jaharuddin, n. s., & zainol, l. n. (2019). the impact of work-life balance on job engagement and turnover intention. the south east asian journal of management, 13(1). https://doi.org/10.21002/seam.v13i1.10912 kartono, k., & hilmiana, h. (2018). job burnout: a mediation between emotional intelligence and turnover intention. jurnal bisnis dan manajemen, 19(2), 109–121. https://doi.org/10.24198/jbm.v19i2.189 nuriyani, d. (2021). pengaruh kecerdasan emosional dan kepemimpinan transformasional terhadap komitmen organisasi dengan kepuasan kerja sebagai variabel intervening pada pegawai perum bulog kantor cabang medan. pangestu. (2019). pengaruh kecerdasan intelektual, kecerdasan emosional, kecerdasan spiritual, dan kecerdasan sosial terhadap sikap etis mahasiswa akuntansi. jurnal akuntansi dan sistem teknologi informasi, 14(2). pratama, e. n., suwarni, e., & handayani, m. a. (2022). effect of job satisfaction and organizational commitment on turnover intention with person organization fit as moderator variable. aptisi transactions on management (atm), 6(1), 74–82. https://doi.org/10.33050/atm.v6i1.1722 putri, l. a. z., zulkaida, a., & rosmasuri, p. a. (2019). perbedaan burnot pada karyawan ditinjau dari masa kerja. jurnal psikologi, 12(2), 157–168. https://doi.org/10.35760/psi.2019.v12i2.2440 sugiyono. (2016). metode penelitian kuantitatif, kualitatif dan r&d. bandung: pt alfabet. wulandari, n., arifin, a., istiqomah pujiningtiyas, r., arifin, m., & khoiriyah, m. (2020). pengaruh motivasi dan kepuasan terhadap kinerja karyawan pemasaran perbankan syariah di kabupaten sumenep. jurnal tabarru’: islamic banking and finance, 3(2), 295–302. https://doi.org/10.25299/jtb.2020.vol3(2).5886 according to cooper & schindler (2014) population is a collection of individuals who are used as research objects which are assessed based on the characteristics set by the researcher or the object of observation that has the same characteristics, whe... because it is not possible to conduct research using all the existing population or all teachers of state vocational schools in dki jakarta, the researchers used isaac and michael's formula to determine the number of research samples from the existin... 97 the effect of training on the utilization of herbal plants and entrepreneurial motivation towards improving community economic welfare study of nasyiatul aisyiyah regional leaders, banyumas regency, central java dyah pikanthi diwanti, s.e., m.m. email: dyahpikanthi@umy.ac.id/ dyahpikantidiwanti@gmail.com nurani indah pertiwi email: nurani.indahpertiwi@gmail.com abstract at this time, a healthy environment is everyone's dream. a healthy environment is strongly influenced by the accompanying conditions, one of which is the awareness of protecting nature with the availability of medicinal plants/herbs that can be healthy consumption for the community. banyumas regency is one area that has the potential to utilize herbal plants supported by environmental conditions that have fertile natural potential. this study aims to determine the effect of training on the use of herbal plants and entrepreneurial motivation on improving the economic welfare of the community. this study used a quantitative method with nasyiatul 'aisyiyah regional leadership in banyumas regency as the respondent. the results showed that training on the use of herbal plants had a 62.2% greater influence than 37.8% entrepreneurial motivation on the community's economic welfare. keywords: training, herbal plants, entrepreneurial motivation, economic welfare received: 10 august 2022 ; accepted: 26 october 2022 ; how to cite: diwanti, d.p., pertiwi, n.i. (2022). the effect of training on the utilization of herbal plants and entrepreneurial motivation towards improving community economic welfare study of nasyiatul aisyiyah regional leaders, banyumas regency, central java. journal of business and behavioural entrepreneurship, 6(1), 97-113. https://doi.org/10.21009/jobbe.006.1.09 98 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 introduction at this time, a healthy environment is everyone's dream. a healthy environment is strongly influenced by the accompanying conditions, one of which is the awareness of protecting nature with the availability of medicinal plants/herbs that can be healthy consumption for the community. banyumas regency is one area that has the potential to utilize herbal plants supported by environmental conditions that have fertile natural potential. this awareness is also increasing with the ability that can be created to creatively process these medicinal plants/herbs so that they can be consumed and utilized economically. the need for a variety of management of medicinal plants/herbs both for consumption and to be managed economically requires efforts through entrepreneurial motivation. this motivation will later encourage the use of these healthy plants. through training in various herbal plant processing, the added value will further encourage the presence of a creative economy in the community. therefore, it is necessary to empower the community on how to use herbal plants for the community's welfare. the development of health and welfare in indonesia aims to create an advanced and independent society in an atmosphere of physical and spiritual prosperity. therefore, the movement to improve health must be carried out. according to desni, wibowo and rosyidah (2011), treatment in indonesia consists of types of medical treatment and traditional medicine. medical treatment often uses drugs, carried out by formally educated personnel with standardized methods, while traditional medicine is carried out from generation to generation. people believe that chemical treatment is more effective than traditional medicine. more than 60 percent of indonesia's population uses chemical products to support their health. the reality in the field is that the use of chemical drugs causes long-term effects, which is a lot of accumulation of chemical substances that can interfere with human body systems such as kidney failure, cancer, stroke, diabetes, obesity and so on (rizqa and kartikadarma, 2010). the utilization of yardland is one of the alternative resources that can be used to fulfill food needs, including herbal plants. the yardland is too narrow to be used as paddy fields, but on the other hand, there are still a lot of yardlands that have not been used optimally to meet food needs. the yard can function as a living barn, both a food barn and a nutritional barn and a living pharmacy (madyowati, 2017). it is hoped that individual and collective awareness can motivate increased productivity which will be an indicator of the birth of competitiveness in improving the community's economic welfare. this research is the first step in building public awareness in banyumas regency to be more active in contributing to improving the welfare of the local community. this study aims to determine the effect of training on the use of herbal plants and entrepreneurial motivation on improving the economic welfare of the community. 99 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 no titles findings 1. hasyim, s. bin, wahyudi, y. t., fauzan, h. s., & kunci, k. (2020). mengadakan penyuluhan mengenai penggunaan obat tradisional. budaya dan masyarakat, 1(2), 47–50. www.lanmas.fisip.uniga.ac.id traditional medicine is one of the cultural elements that has been growing, developing and recognized by the community from generation to generation, both urban and rural communities. with abundant plants, people can use the surrounding plants as traditional medicine, 2 julung, h., supiandi, m. i., ege, b., mahanal, s., & zubaidah, s. (1970). analisis sumber pengetahuan tradisional tanaman obat yang digunakan oleh masyarakat suku dayak desa. proceeding of biology education, 2(1), 67–74. https://doi.org/10.21009/pbe.2-1.9 this program is expected to be carried out for sustainability by utilizing to the yard of the house as land to plant toga for health and it can be carried out , and continuously and impact on the socioeconomic community 3 martono, y., setiawan, a., & widodo, s. (2018). sarana budidaya tanaman obat keluarga (sabda toga) untuk daerah perkotaan di rt 04 dan rt 06 rw 07 kelurahan tegalrejo salatiga. berdikari: jurnal pengabdian masyarakat indonesia, 1(1), 1–10. https://doi.org/10.11594/bjpmi.01. 01.01 efforts to empower the community based on fostered families in the use of family medicinal plants during a pandemic are very effective because they can increase community knowledge and understanding of the management and use of family medicinal plants as an effort to maintain health and prevent disease and health care. 4 mewengkang, c. h., manginsela, e. p., & memah, m. y. (2020). deskripsi pengetahuan dan penerapan tanaman obat keluarga (toga) di desa pinilih kecamatan dimembe kabupaten minahasa utara. agrisosioekonomi, 16(1), 87. https://doi.org/10.35791/agrsosek. 16.1.2020.27122 the development of toga aims to increase family income. cultivation of a family medicine garden is essentially the cultivation of plants that have medicinal properties in order to meet the family's need for medicines 5 nawai, f., arifin, & pp, a. (2021). pemberdayaan masyarakat melalui program toga ( tanaman obat keluarga ) dalam rangka pencegahan pandemi covid-19. jurnal sibermas ( sinergi pemberdayaan masyarakat ), 10(1), 149–164. utilization of natural ingredients is medicinal plants that are used appropriately, without or less causing side effects compared to modern medicines, especially those made from a synthetic materials 6 nur, a. (2021). pemberdayaan utilization of traditional medicinal 100 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 masyarakat terhadap pemanfaatan tanaman obat keluarga (toga) di masa pandemi covid-19 di dusun topore selatan desa topore kabupaten mamuju. jurnal pengabdian masyarakat indonesia, 1(6), 377–383. https://doi.org/10.52436/1.jpmi.32 8 plants can be one of the efforts to prevent diseases, including covid19. this selfcare activity using traditional medicinal plants aims to improve the understanding and skills of the community in terms of the cultivation to processing of traditional medicinal plants. 7 permatananda, p. a. n. k. (2020). asuhan mandiri pemanfaatan tanaman obat tradisional di desa bukian, bali. dharmakarya, 9(4), 266. https://doi.org/10.24198/dharmak arya.v9i4.29615 types of medicinal plants and benefits of it as well as way use them. it is applied in life of family because it is an inheritance from the family. the family has been used for a long time used today. the types are only planted in the yard also the garden. 8 prastio, y. b. (2013). faktorfaktor yang mempengaruhi pengembangan tanaman obat keluarga di desa pulau sapi kecamatan mentarang kabupaten malinau. jurnal ekonomi pertanian dan pembangunan (epp), 10(2), 8–14. http://agb.faperta.unmul.ac.id/wpcontent/uploads/2017/04/jurnalvol-9-no-2-yogi.pdf medicinal plants have accelerated the discovery of new drugs and technologies. from these developments, family medicinal plants are used as medicine and can also be used as green plants in the implementation of the go green program. 9 qamariah, n., handayani, r., & novaryatiin, s. (2019). peningkatan pengetahuan dan keterampilan ibu rumah tangga dalam pengolahan tanaman obat keluarga (toga) sebagai ramuan obat tradisional. pengabdianmu: jurnal ilmiah pengabdian kepada masyarakat, 4(1), 50–54. https://doi.org/10.33084/pengabdi anmu.v4i1.692 information on traditional knowledge about plants with medicinal properties is mostly through personal experience, which is then conveyed orally. the training program is a way for management to achieve goals. the training will be able to cause changes in work, changes in attitudes, behavior, skills and knowledge and the training must be carried out continuously in order to adapt to the development of science. the following is the definition of training according to experts. a. rivai (2014) 101 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 training is an activity to improve current performance and future performance. b. dessler (2009) training is the process of teaching new employees or existing employees the basic skills they need to carry out their jobs. c. sofyandi (2008) the effort to increase and build the knowledge and ability of many employees to carry out work more effectively and efficiently, we know as training. a series of programs designed of it to improve and repair the knowledge and abilities of them in their relationships and their work. d. pramudyo (2007) a learning process is training has designed to change people's performance in doing their jobs. e. gary (2006) process of teaching and learning process employees of the skills needed to do their jobs. f. mathis dan jackson (2006) training is the process by which people acquire capabilities to help achieve goals. g. nitisemito (2004) training is an activity of the company which is intended to improve and develop the attitudes, behavior, skills and knowledge of the employees in accordance with the wishes of the company concerned. h. handoko (2003) training is an effort to improve the mastery of various skills and techniques for carrying out certain jobs in detail and routinely. i. panggabean (2002) training is a method used to provide or improve the skills needed by employees in carrying out their current job. j. mangkuprawira (2002) a process of teaching knowledge and increase skills, and attitudes so employees have skilled and able to carry out the responsibilities better with standards. literature review entrepreneurial interest according to basrowi (2011: 67-68), a person's motivation to become an entrepreneur: 1. profit; an entrepreneur can determine how much profit he wants and the profit to be earned and how much will be paid to other parties and their employees. 2. freedom; free to manage time, free from pressing rules and organizational culture rules. 3. personal dreams; free to achieve the desired standard of living, free from 102 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 boring work routines. rewards for defining your own mission, vision and dreams. 4. independence; have a sense of pride because they can be independent in everything with their own efforts. interest in entrepreneurship, according to (slameto, 2010) a sense of preference and attachment for activity without telling system. interest in entrepreneurship is the desire, interest, and willingness of individuals to work hard in fulfilling their life needs without fear of the risks that will occur. according to (suryana, 2013), indicators of interest in entrepreneurship include (1) self-confidence, (2) task and result oriented, (3) risk-taking, (4) leadership, (5) originality, (6) future-oriented. herbal plants the various uses of herbal plants are as follows: utilization of indonesian herbal plant 1. ginger rhizome (ginger) it is the root of an herbal plant belonging to the zingiber officinale family, which is yellow to reddish in color with a pungent odor. ginger rhizome is a natural ingredient containing active phenolics, such as shogaol and gingerol. benefits of ginger: ginger rhizome also has antioxidant and anticancer effects a. contains essential oils useful for treating headaches, rheumatism, stomach ache, dizziness, cholera, an antidote to snake venom, colds, sprains, and swelling. b. carminative is to lax the fart and expel the wind. c. stomakik, which increases appetite and strengthens the stomach. d. stimulant and diaphoretic, as a sweat laxative. e. ginger rhizome has herbal effects and can be used to treat coughs, headaches and other ailments colds (influenza), heartburn, itching (external medicine), wounds (external medicine), headache (external medicine) and arouse appetite 2. galanga rhizome the active ingredients include essential oils, kaempferol, eucalyptol or cineol, cinnamic acid, anisic acid, n-pentadecane, and ethyl cinnamate. benefits of galanga: a. cough medicine. it acts as a phlegm laxative or throat cleaner by removing mucus that clogs the nose and warms the body. efficacious also removes gas from the stomach b. antioxidant or as an antidote to free radicals. 3. turmeric the active ingredients include essential oils, curcumin, dimethoxy curcumin, arabinose, lactose, glucose, starch, tannins. benefits: a. maintain stamina, hepatoprotection, diuretic, anti-inflammatory antioxidant, immunomodulator, and anticancer, b. anti-inflammatory, antihypercholesterolemic, antiproliferative, and antitumor, 103 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 c. lowering blood pressure, malaria medicine, deworming, stomach ache, increasing breast milk, treating sprains, bruises, rheumatism, relieving coughs, and anticonvulsants 4. temulawak rhizome (curcuma xanthorrhiza) the active ingredients of temulawak include curcumin, curcuminoids and essential oils. benefits: a. antimicrobial, antibacterial, antioxidant agent, carcinogen, antiproliferative (cell cycle inhibition), b. antiplasmodial, which can suppress malaria attacks c. maintain body fitness, treat digestive disorders and increase appetite, and treat diarrhea. 5. bangle the active ingredients include terpinyl acetate, transpiperitol, bornyl acetate, germacrene, methyl eugenol, megastigma-trience, lachnophyllum ether, juniper camphor, and so on. benefits: a. warms the body, reduces pain, diarrhea, heartburn, and jaundice, b. treat fever, headache, cough with phlegm, stomach pain, colds, constipation, intestinal worms, asthma, rheumatism, muscle pain, and fat loss, c. bengle rhizome can be used to cure illness, unwell, fussy (cannot sleep). 6. tamarind the active ingredients of tamarind include various acids, including tatric, malic, citric, succinic, and acetic acids. benefits: a. this is one of the natural ingredients of herbal plantas found. tamarind has herbal effects that are analgesic (relieves pain), antipyretic (fever-reducing), and smoothes bile secretion, b. the efficacy of sour fruit is as an antiseptic, nausea reliever, appetite enhancer, is abortive, and pain reliever c. another benefit is to treat gout, eczema, ulcers, fever, canker sores, measles, high cholesterol, diabetes, cough, asthma, and irregular menstruation d. tamarind fruit flesh contains acidic substances that are efficacious as a laxative to smooth bowel movements and blood circulation. 7. clove flower or syzygium aromaticum the oil content in cloves is efficacious as: a. antibacterial, antimicrobial, antioxidant, antifungal, anti-inflammatory, and anesthetic, b. another benefit of clove flowers is to treat cholera, give a warm feeling, boiled water flowers to treat measles, irritation, and relieve pain, the powder helps reduce toothache 104 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 8. manis jangan/cinnamon it contains active ingredients of essential oils, safrole, eugenol, calcium oxalate, cinnamaldehyde, resin, tannins, and tanning agents. benefits: a. the content of cinnamon makes cinnamon can be used to treat cancer, cholesterol, diarrhea, ulcers, headaches, flatulence, gout, diabetes, b. carminative stomatic, diaphoretic, analgesic, antiseptic, anti-worm, treat fever, and influenza. 9. secang wood the active ingredients include gallic acid, tannins, resins, resorcin, brasilin, brasilein, d-alfa-phellandrene, oscimene, alkaloids, and flavonoids, saponins, phenyl propane, terpenoids, and essential oils. benefits: warms the body, as an antioxidant, cytotoxin from the variety of uses that will be mobilized through the training, it is hoped that they will be able to motivate individuals and entrepreneurial drivers in improving community welfare, especially in banyumas regency. community welfare according to imron (2012), the welfare of people's lives is understood as social welfare. imron (2012) adds to article 1, paragraph 1 of law no. 11 of 2009 concerning social welfare: "social welfare is a condition of meeting the material, spiritual, and social needs of citizens so that they can live properly and be able to develop themselves so that they can carry out their social functions". there are several indicators of improving community welfare, including (1) an increase in income quantitatively; (2) qualitatively better family health; and (3) the existence of family economic investment in the form of savings. methodology variables and indicators the variables of this study consist of the independent variable, training in the use of herbal plants and entrepreneurial motivation and the dependent variable, such as improving community economic welfare. a. research design a research used to examine certain populations or samples, data collection using research instruments of quantitative/statistical data analysis to test the established hypothesis. in this study, the authors used a likert scale. b. population and sample 105 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 the population is defined as the entire research subject (arikunto, 1998). in this study, the population is the leaders and members of pdna banyumas. c. data collection technique 1. questionnaire syamsul hadi (hadi, 2006) states of questionnaire is a set of questions and if have been prepared and written in advance by the researcher to ask answer from the respondents. questionnaires are not always in the form of questions but can also be in the form of statements. this study used a questionnaire method using a likert scale. 2. documentation data on things or variations in the form of books, notes, magazines, newspapers, agendas, meeting minutes and so on (arikunto, 1998). this used to complete data and related to the general of description of the company or object being studied. d. variable operational definition we know that "everything can call anything that it is determined by researchers to be studied so that information had obtained about it, then conclusions are drawn (sugiyono, 2012). there are 2 independent variables and one for dependent variable. the variable x is a treatment and for deliberately manipulated it to determine its intensity on the dependent of variable. while the variable y or the dependent variable is a variable that arises due to the existence of an independent variable. the variables are divided into 2: 1. the independent variable (x) is training on the utilization of herbal plants and entrepreneurial motivation 2. the dependent variable (y) is improving community economic welfare e. instrument test 1. validity test validity is how a measuring instrument measures what it is supposed to measure. so that researchers can find out how far the respondents answered according to what the researcher wanted. the analytical to measure the level of data validity as correlation of coefficient with used for spss17.0 software. 2. reliability test index that shows relatively consistent for repeated twice or more. testing of reliability was carried out with the cronbach alpha. validity and reliability test continued with other in tests, such as the t-test, anova test and other f. classical assumption test 1. multicollinearity test regression model found a correlation and good model should not correlate with the independent variables (ghozali, 2001). detection of multicollinearity is by analyzing and correlation matrix can also be seen in the tolerance value and the 106 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 variance inflation factor (vif). 2. normality test the normality test aims to test whether the dependent variable and the independent variable in the regression model have a normal distribution or not. a good regression model has a normal distribution or is close to normal. 3. heteroscedasticity test the classical linear of regression model is that the variance that appear in the regression function is homoscedastic from one observation to another (gujarati, 1995). the glacier test was carried out by looking level of significance results of absolute residual in value as the dependent. detection of the presence or absence of heteroscedasticity can also be done by looking at the presence or absence of certain patterns (wavy, widening and then narrowing) on the graph plot (scatterplot) between the predicted value of the related variable (zpred) and the residual (sresid). g. data analysis method sugiyono said that the data analysis research uses statistics and descriptive statistics are statistics used to analyze data by describing the data without intending to make conclusions. 1. analysis prerequisite test statificial data analysis is carried out so that the conclusions drawn do not deviate from the supposed truth and to meet requirement is necessary to test linearity and test the hypothesis. a. linearity test intended to determine whether the relationship used as a predictor has a linear or non-fixed relationship to the dependent variable. b. hypothesis test research data meet the normality and linearity tests and has been analyzed. result and discussion 1. banyumas pdna profile the regional leadership of nasyiatul aisyiyah banyumas is an autonomous organization from muhammadiyah which is located in banyumas regency, central java province based on sko no. a/5-1306/'90. the regional leadership of nasyiatul aisyiyah banyumas for the xiii conference (2016-2020) was led by ayunda indri krisnawati, s.sos.i based on decree no. 024/pwna/i/sk/v/2017 and sk for the extension of the term of office of pdna banyumas for the 2016-2022 period from pwna central java no. 07/sk/xii/2021. the regional leadership of nasyiatul aisyiyah banyumas consists of 22 pcna and 29 prna. 2. overview of respondents 107 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 characteristics of respondents based on the research results obtained can be explained in table 1.1 as follows: description respondents frequency percentage gender female 60 100% age 20-30 years old 31-40 years old 41-50 years old 10 people 30 people 20 people 10 % 50 % 40 % occupation teachers entrepreneurs employees 40 people 10 people 10 people 80 % 10 % 10 % based on table 1.1, it can be shown that the characteristics of respondents based on gender are 100% female because the research was conducted in women's organizations. productive age respondents dominate characteristics of respondents based on age around 31 40 years with a percentage of 50% or 30 people. while the characteristics of respondents based on the profession are dominated by respondents who work as educators with a percentage of 80% or 40 people. 3. instrument test a. validity test the results of the validity test show that all questions for the x1 variable (training on the use of herbal plants), x2 (entrepreneurial motivation), and the y variable (increasing the community's economic welfare) are valid because it can be seen from the r count > t table which is close to a positive number. b. reliability test the reliability test that has been carried out shows that the question item is valid if a variable can be said to be reliable if the answers to each question remain consistent. so it can be concluded that the results of the reliability coefficient of the r-variable table data are greater than the r-table, so cronbach's alpha is greater than 0.600, which means that the three variables are declared reliable. 4. classical assumption test a. normality test the normality test aims to test whether the dependent variable and the independent variable in the regression model have a normal distribution or not. a good regression model has a normal or close to normal distribution. therefore, this test 108 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 applied the one-sample kolmogorov smirnow test, which can be said to be normal if the significant level is greater than 0.05. the results of the normality test output are as follows: based on the normality test results, it is known that the significance value is 0.504 > 0.05. it can be concluded that the residual value is normally distributed b. multicollinearity test the multicollinearity test aims to see the regression model of the high is by analyzing the correlation matrix and also be seen in the tolerance value it if the vif value of tolerance value is not less than 0.1 to be free from multicollinearity. the results of the multicollinearity test are as follows: coefficientsa mod el unstandardized coefficients standardized coefficients t sig. collinearity statistics b std. error beta tolerance vif 1 (constant) -2.891 .208 -1.156 .253 x1 .726 .131 .622 5.545 .000 .886 1 . 1 2 9 x2 .956 .167 -.065 -.582 .563 .886 1 . 1 2 9 5. hypothesis test testing this hypothesis using bivariate analysis. bivariate analysis was used to test the first and second hypotheses in progress. the formula used is the productmoment correlation of karl pearson. the results of the data processing obtained through the coefficient (r2), significant simultaneous test (f test), and significant partial test (t-test) are as follows: a. partial test (t-test) this test was conducted to determine the effect of the independent variable by explaining the dependent variable is greater than the table value can be said that the independent variable has an effect. the results of the t-test output are as follows: 109 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) -2.891 .208 1.156 .253 x1 .726 .131 .622 5.545 .000 x2 .956 .167 378 582 .563 a. dependent variable: y from the results of these data, it is explained that the x2 variable or entrepreneurial motivation has an effect and has a smaller contribution of 37.8% compared to the x1 variable or training on the use of herbal plants, which is 62.2%. b. simultaneous test (f test) this simultaneous test is used to determine whether all of the independent variables have a joint effect on the dependent variable that has been tested in anova. c. determination coefficient test (r2) the r2 test in this study aims to measure how far the model's ability to explain the dependent variable is. so the value of the coefficient of determination between zero and one means a variable that is able to provide the information needed to predict the dependent variable. the results of the coefficient of determination r2 are as follows: from the results of these data, it is explained that the percentage of the influence of the two variables x1 and x2 on y is 34.2%, while the remaining 65.8% is influenced by other variables. plant utilization training process model summary model r r square adjusted r square std. error of the estimate 1 .603a .364 .342 .44287 a. predictors: (constant), x2, x1 110 diwanti, d.p., pertiwi, n.i. (2022). journal of business and behavioural entrepreneurship, 6(1), 97-113 figure 1: manufacturing process figure 2: finished herbal products conclusion 1. based on the results of the validity and reliability tests, all questions for the variable teaching skills and environment on interest in learning entrepreneurship. it are declared in valid value because they are seen from r count more than from t table to a positive number. 2. the reliability test that has been carried out shows that the question item is said to be valid if a variable can be said to be reliable if the answers to each question remain consistent. so it can be concluded the r-variable table data are greater than the r-table and cronbach's alpha is greater than 0.600 that the three variables are declared reliable. 3. training on the utilization of herbal plants has a positive and significant impact on improving community economic welfare 4. entrepreneurial motivation has a positive with significant impact for improvement of community economic welfare 5. this herbal plant utilization training has a greater influence than entrepreneurial motivation and has a significant positive effect on increasing community economic welfare. references afrilia tri widyawati , muhamad riza (2015), upaya pemberdayaan apotik hidup di perkotaan melalui deskripsi dan manfaat tanaman obat, pros sem nas masy biodiv indon volume 1, nomor 8, desember 2015 issn: 2407-8050 halaman: 1890-1895 doi: 10.13057/psnmbi/m010823 basa t. rumahorbo dan rosye h.r. tanjung( 2020), penyuluhan dan pelatihan pemanfaatan pekarangan sebagai apotik hidup 111 diwanti, d.p., pertiwi, n.i. 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(2021). identifikasi dan manfaat tanaman obat keluarga di masyarakat desa sukorejo gunungpati, semarang. jurnal abdidas, 2(1), 135– 141. http://abdidas.org/index.php/abdidas 36 improving cooperative’s business performance with entrepreneurial orientation and organizational culture through innovation kadek diah desita giri1 , i wayan widnyana2 , anak agung putu agung3 1,2,3program studi magister manajemen universitas mahasaraswasti denpasar email : desitagiri@gmail.com abstract cooperatives have the main goal of prospering its members which of course can be achieved by creating optimal business performance both in terms of financial and non financial. this research was conducted with the aim of knowing the effect of entrepreneurial orientation and organizational culture on business performance directly and mediated by innovation. this research was conducted in denpasar city with a population of 1,077 cooperative business units that are still active until 2020 and a sample of 292 cooperative heads. data was collected by using interviews and questionnaires which were measured using a five-choice likert scale. questionnaires were distributed using google forms and print outs. data analysis was performed using structural equation modeling-partial least square (sem pls). the results of the analysis prove that entrepreneurial orientation has a positive and significant effect on business performance, organizational culture has a positive and significant effect on business performance, entrepreneurial orientation has a positive and significant effect on innovation, organizational culture has a positive and significant effect on innovation, and innovation has a positive and significant effect on business performance. the results of the mediation test prove that innovation mediates each of the effects of entrepreneurial orientation and organizational culture on business performance. keywords: entrepreneurial orientation; organizational culture; innovation; business performance. received: 17 august 2022 ; accepted: 11 october 2022 ; how to cite: giri, k.d.d, et.al. (2022). improving cooperative’s business performance with entrepreneurial orientation and organizational culture through innovation. journal of business and behavioural entrepreneurship, 6(1), 36-50. https://doi.org/10.21009/jobbe.006.1.05 mailto:desitagiri@gmail.com 37 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 introduction cooperatives are the pillars of the economy that have a vital role in moving the people's economy so that it is hoped that cooperatives will continue to exist in the midst of intense business competition, especially in the financial institution industry. as a nonbank financial institution, cooperatives also face stiff competition from other financial institutions, both bank and non-bank financial institutions. business opportunities for cooperatives can be said to be very potential in denpasar city where based on data from the central statistics agency (bps) until 2019 there were 947,100 people with per capita income reaching rp. 21,443,353.00. cooperatives in denpasar city continued to experience positive growth throughout 2016 to 2020, where active cooperatives continued to grow and inactive cooperatives continued to decline. the growth in the number of active cooperatives is unfortunately not followed by the growth in the number of cooperative members. the highest growth occurred in 2017 at 0.85 percent, while the lowest occurred in 2019 at 0.11 percent. even though there is growth, it can be said that growth tends to slow down where from 2017 to 2019 it can be seen that the percentage of growth continues to decline. the year 2020 showed the opposite, where there was a decrease in the number of cooperative members by -58.63 percent. this data proves that cooperatives in denpasar city have lost more than half of their members compared to 2019 and may indicate a problem with the cooperative's business performance, because with the decrease in the number of members, the cooperative's income will also decrease. the goal of every company is to improve business performance so that business performance and its improvement are seen as the core of any profit -oriented activity (tseng & lee, 2014). business performance, one of which is directly influenced by the existence of an entrepreneurial orientation or eo (mantok et al., 2019). research conducted by prima lita et al., (2020) on smes supporting tourism in indonesia and ali et al., (2020) on smes in saudi arabia proves that eo has a positive and significant effect on business performance. other empirical evidence which states that eo has a positive and significant effect on business performance is also evidenced in various sectors such as pharmaceuticals (masa’deh et al., 2018), cross-sector manufacturing (mahrous & genedy, 2019), public sector (al-dhaafri & alosani, 2020), and manufacturing smes (kocak et al., 2017). different research results are shown by kantur (2016), shah & ahmad (2019), and rezaei & ortt (2018) which prove that eo has a positive and insignificant effect on business performance. improving business performance is not enough just to rely on eo, but also needs to pay attention to the culture of the organization or company (gorondutse & hilman, 2016). organizational culture refers to the development of employee behavior towards a better direction based on one common asset owned by the organization, namely practices, values, and assumptions (brenyah & darko, 2017). organizational culture is proven to be able to improve business performance in various business sectors such as the banking sector (aboramadan et al., 2020). other empirical evidence which also proves that organizational culture has a positive and significant effect on business performance is also evident in various sectors such as national and multinational companies (bhuiyan et al., 2020), tourism supporting smes (lita et al., 2020), and health businesses (garcía 38 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 fernández et al., 2018). different results are shown by seidu et al., (2022) which proves that organizational culture has an insignificant positive effect on business performance in the hotel sector and zhao et al., (2018) on publicly listed companies in china. by using the resource-based-view/rbv approach, eo can be said to be an intangible resource that plays a role in improving company performance (al-dhaafri and alosani, 2020), while organizational culture represents rbv in terms of uniqueness and is difficult to imitate because organizational culture distinguishes an organization. company with other companies (wang, 2019). by referring to the dynamic capability view/dcv, it can be argued that innovation is one of the company's dynamic capabilities by adopting new ideas to deal with changes in the business environment (turulja & bajgoric, 2019). when eo is synergized with organizational culture, it will lead the company to create innovation and develop business activities so that it will improve business performance and company growth (mantok et al., 2019). the purpose of this study was to determine the effect of eo and organizational culture on business performance directly and mediated by innovation. literature review entrepreneurial orientation eo is a procedure, practice, and decision-making activity of a company that is used to improve products and services in response to customer needs that will lead the company to improve performance (masa'deh et al., 2018). the term eo refers to a set of dimensions, comprising the processes, decision-making practices, and activities culminating in the creation or reinvention of a business venture, including propensity to act independently, propensity to innovate and take risks, propensity for competitive aggression in relation to competitors and pro-activity in relation to new opportunities (santos et al., 2018). eo is a three-dimensional construct developed by miller in 1983 (cowden et al., 2016) namely innovativeness which refers to the company's ability to create new products, services, or processes; proactiveness which refers to the company's desire to be one step ahead of competitors, and risk taking which refers to the company's ability to make decisions under pressure of uncertainty. organizational culture organizational culture is generally defined as a collection of behaviors, attitudes, values, assumptions, and beliefs of organizational members (gorondutse and hilman, 2018). values and assumptions explain why an organization does what it focuses on and focuses on the main goals set (schneider et al., 2017). organizational culture is described as the sum of patterns of shared beliefs, rituals, stories, and sentiments that can be accepted collectively by organizational members (kwarteng & aveh, 2018). organizational culture is an invaluable resource for problem solving, competitive advantage, superior performance, implementation of new business strategies, and the realization of organizational goals (gorondutse & hilman, 2016) which consists of four dimensions, namely clan, adhocracy, hierarchy, and market (al dari et al., 2021). clan is an inward-oriented organizational culture that refers to employee engagement and open and friendly communication that begins with trust and commitment by the organization (reino et al., 2020). adhocracy culture emphasizes visionary and 39 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 innovative leadership, risk taking and innovation, facing challenges, and flexibility to make changes (al dari et al., 2021). market culture is characterized by stability and external focus driven by achievement and coordination that is task-oriented, has clear goals, and a decision-making process (tran, 2021). hierarchy culture is described as an internal focus and stability and is closely related to stability in the operations of an organization, and has clear policies and regulations that enable a corporation to exist (tran, 2020). innovation innovation refers to the tendency and acceptance of companies to adopt ideas that deviate from the usual course of business implying a willingness to let go of old habits and try untested ideas (tsai & yang, 2014). innovation generally refers to a new product, service, process, or technology that requires acceptance and is finally adopted and implemented (aboramadan et al., 2019). innovation consists of two main categories, namely product innovation and process innovation (turulja and bajgoric, 2018). product innovation is carried out with the aim of providing enhanced benefits for the benefit of customers by improving the functional benefits of a product or service (zaefarian et al., 2017) and process innovation is the implementation of production or delivery methods, including new or significantly improved techniques, software and/or equipment (kafetzopoulos et al., 2020). business performance business performance is the ability of the measurement object to achieve organizational results by comparing it to the set goals and is the final measure of organizational results that are influenced by various market contingencies and organizational conditions (kavetzopoulus et al., 2020). prakash et al., (2017) define business performance as a goal based on financial and non-financial aspects under the influence of fuzzy and uncertain external environmental conditions involving internal and external perspectives to empower diverse resources by opening up the flow of information. company performance can be measured in financial and non-financial units (anning-dorson, 2018). hypothesis development from the rbv perspective, competitive advantage is achieved by companies with unique resources and eo represents a strategic resource for the company because it "reflects the company's philosophy of how to do business through a set of deep-rooted values and beliefs that guide the company's efforts to achieve performance excellence. research conducted by lita et al., (2020), ali et al., (2020), masa'deh et al., (2018), mahrous et al., (2019), al dhaafri et al., (2016; 2019) , and kocak et al., (2017) prove that an increase in eo will result in a significant increase in business performance.based on this description, the following hypothesis is proposed: h1: eo has a positive and significant effect on business performance organizational culture is related to business performance through its impact on the coordination of efforts by each member of the organization (hartnell et al., 2019). an increase in organizational culture will result in a significant increase in business performance which has been empirically proven in research conducted by wang (2019), 40 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 aboramadan et al., (2019), uzkurt et al., (2013), bhuiyan et al., (2020). ), pinho et al., (2014), lita et al., (2020), and garcia-fernandez et al., (2018). based on this description, the following hypothesis is proposed: h2 : organizational culture has a positive and significant effect on business performance eo is a process and practice that directs organizations to innovate (ferreira et al., 2020) because eo is associated with managerial practices, methods and decision-making styles regarding market offerings and taking risks to produce new products, services and even markets (seo, 2020). the role of innovation in improving business performance significantly has been proven in previous research conducted by lita et al., (2020), yu et al., (2016), barzola iza & dentoni (2020), and kocak et al., (2017) . based on this description, the following hypothesis is proposed: h3: eo has a positive and significant effect on innovation the essence of organizational culture is to stimulate creativity and innovative behavior among employees which is very helpful in creating creative ideas and considering innovation as a core value of the company (shahzad et al., 2017). organizational culture has been shown to significantly improve business performance as reported in studies by wang et al., (2019), shahzad et al., (2017), aboramadan et al., (2019), uzkurt et al., (2013 ), and lita et al., (2020). based on the theoretical and empirical studies, the following hypotheses are proposed: h4: organizational culture has a positive and significant effect on innovation companies that are able to innovate will have more ability to deliver new products and services, improve processes more quickly to meet market needs and take advantage of opportunities than companies that are not innovative so that innovation allows an increase in company performance (aboramadan et al., 2019). the positive role of innovation in improving business performance has been empirically proven in research conducted by wang et al., (2019), aboramadan et al., (2019), uzkurt et al., (2013), lita et al., kwarteng and aveh (2018), kocak et al., 2017), and. the proposed hypothesis is as follows: h5: innovation has a positive and significant effect on business performance. eo is measured as procedural behavior that operates at the company level and when eo is able to manage innovation, the company will have better performance than companies that are not innovative (lita et al., 2020). research by lita et al., (2020) and kocak et al., (2017) proves that innovation mediates the effect of eo on business performance. based on this description, the following hypothesis is proposed: h6: innovation mediates the effect of eo on business performance organizational culture can affect a company's ability to innovate which will ultimately improve company performance (uzkurt et al., 2013). organizational culture triggers innovation and improves business performance (wang, 2019). research conducted by uzkurt et al., (2013), wang, (2019), and aboramadan et al., (20 19) proves that business performance increases significantly when organizational culture increases innovation. based on this description, the following hypothesis is proposed: h7: innovation mediates the influence of organizational culture on business performance. the conceptual framework of this study was developed to describe the relationship between variables, both the relationship between the independent variable and the dependent variable, the independent variable and the mediating variable, and the mediating variable and the dependent variable. the development of the conceptual 41 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 framework model of this research is based on the theoretical study of the relationship between variables as well as the empirical studies that have been carried out previously in the introduction and hypothesis sections. the conceptual framework of this research can be seen in figure 1. research method the approach used in this study is the positivism paradigm to find a causal relationship between research variables. this type of research is associative quantitative research with the aim of knowing the effect of the independent variable on the dependent variable. this research was conducted in denpasar city with a population of 1,077 cooperative units. the sample size was determined using the yamane formula (2020: 137) so that a sample of 292 cooperative heads was determined. data was collected by interview method at the pre-survey stage and continued with a questionnaire measured by a five-choice likert scale. the variables in this study were identified as independent variables, namely entrepreneurial orientation (eo) and organizational culture. the dependent variable consists of innovation and business performance. eo is measured by three dimensions, namely innovativeness, proactiveness, and risk taking as measured by eleven indicators adopted from vaitoonkiat and charoensukmongkol (2019). organizational culture is measured by the dimensions of clan, adhocracy, market, and hierarchy with a total of ten indicators adopted from reino et al. (2020). innovation is measured by product innovation and process innovation with seven indicators adopted from farzaneh et al., (2018). business performance is measured by the dimensions of non-financial performance and financial performance which are translated into seven indicators adopted from arowwad et al. (2020). results and discussion the results of the validity and reliability test showed that all research instruments had met the validity requirements as evidenced by the correlation coefficient value of more than 0.30 so that the instrument was declared valid. the reliability test showed that each variable was declared reliable with cronbach's alpha of more than 0.60. table 1. validity and reliability test variables statement items validity reliability correlation coefficient val. cronbach's alpha rel. entrepreneurial orientation no. 1 11 >0,30 valid 0,938 reliable organizational culture no. 12 25 0,933 innovation no. 26 34 0,839 business performance no. 27 33 0,849 source : processed data, 2022. based on gender, there are more female respondents than male respondents, namely 54.1%. this shows that one form of women's empowerment in the field of cooperatives. 42 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 when viewed from the age, it is known that most of them are at the age of >42 years. the results of the study indicate that the leadership of the cooperative is an adult age group. when viewed from the level of education the most is bachelor's education as much as 63.7%. this indicates that cooperative managers in denpasar city are highly educated. judging from the length of time being the chairman of a cooperative, most of them are > 5 years, meaning that the leadership is quite experienced in managing cooperatives and based on the location of the most cooperatives in west denpasar (36.6%). table 2. outer loading (measurement test) konstruks original sample (o) t statistics (|o/stdev|) p values x1.1 <entreprenuerial_orientation 0,839 35,093 0,000 x1.2 <entreprenuerial_orientation 0,837 46,246 0,000 x1.3 <entreprenuerial_orientation 0,865 41,035 0,000 x2.1 <organizational_culture 0,891 49,421 0,000 x2.2 <organizational_culture 0,889 79,942 0,000 x2.3 <organizational_culture 0,929 97,244 0,000 x2.4 <organizational_culture 0,862 44,145 0,000 y1.1 <innovation 0,907 62,513 0,000 y1.2 <innovation 0,907 62,088 0,000 y2.1 <business_performance 0,925 54,157 0,000 y2.2 <business_performance 0,945 92,406 0,000 source : processed data, 2022. based on table 2, it is known that the measurement indicators for entrepreneurial orientation, organizational culture, innovation, and business performance variables have an outer loading value greater than 0.5 which means it is valid. the eo dimension wit h the highest outer loading value is indicated by the innovativeness of 0.865. the highest organizational culture dimension in the market dimension is 0.929. the innovation dimension with the highest outer loading value on the product innovation dimension is 0.907 and the business performance dimension has the highest outer loading value, namely non-financial performance of 0.945. table 3 discriminant validity variable ave √ave korelasi org. culture entreprenuerial orientation innovation buss. perf org. culture 0,797 0,893 1,000 eo 0,718 0,847 0,687 1,000 innovation 0,823 0,907 0,630 0,794 1,000 business perf. 0,874 0,935 0,622 0,763 0,825 1,000 source : processed data, 2022. the ave values shown in table 3 each show a value exceeding 0.50 and when compared with the correlation coefficient between variables, all variables have a higher ave root value and this result indicates the discriminant validity of the data is in the good category. 43 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 table 4 composite reliability variable composite reliability organizational culture 0,940 entrepreneurial orientation 0,884 innovation 0,903 business performance 0,933 source : processed data, 2022. table 4 provides information that the composite reliability requirements have been met well where the composite reliability value of each variable has exceeded the recommended minimum value of 0.70 where organizational culture is 0.940; entrepreneurial orientation of 0.884; innovation of 0.903; and business performance of 0.933, which means that each variable is reliable. the results of the convergent test, discriminant validity, and composite reliability as a whole prove that the dimensions and indicators used in this study are valid and reliable measuring tools to explain each variable. inner model test the r-square value shown in table 5 shows that the structural equation of this research model is good, as evidenced by the r-square value of the innovation variable of 0.644 and the business performance variable of 0.717. this result means that the independent variables used, namely entrepreneurial orientation and organizational culture, have a good ability to explain the performance of the dependent variable, namely innovation and business performance. table 5 r-square score variabel r-square innovation 0,644 business performance 0,717 source : processed data, 2022. q2 = 1 – (1 – r12) (1 – r22) = 1 – (1 – 0,644) (1 – 0,717) = 1 – (0,356) (0,283) = 1 – 0,1007 = 0,8992 the structural model proposed in this study shows good observations. from the results of q square predictive (q2), it is known that the value of q2 is 0.8992 which means that the performance of the dependent variable is 89.92 percent (0.8992 x 100%) is explained by the role of the independent variable, while t he remaining 10.08 percent 44 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 (100% 89.92%) is explained by other variables not included in the current study or model. value of q2 also shows the results of the evaluation of the inner model and from the results of the calculation of q2, it can be stated that the constructs in this study form a model with good categories. figure 1. inner model (structural model) source : processed data, 2022. hypothesis test the value of inner weight generated from the results of data analysis is the value used to test the research hypothesis that has been proposed. testing of the structural model of this research can be seen in table 6 which is the estimated output. table 6. hypothesis testing results variabel original sample (o) t statistics (|o/stdev|) p values organizational_culture -> innovation 0,161 2,577 0,010 organizational_culture -> business performance 0,095 2,359 0,019 entreprenuerial_orientation -> innovation 0,684 11,321 0,000 entreprenuerial_orientation -> business performance 0,243 3,926 0,000 innovation -> business performance 0,573 7,855 0,000 source : processed data, 2022. 1) testing hypothesis 1: eo has a positive and significant effect on business performance these results can be seen in the coefficient value of 0.243 with a t -statistics value of 7.855. the t-statistics value is above the value of 1.96 and the value of sig <0.05 so that h1 is declared accepted. this study supports previous research conducted by lita et al., (2020), ali et al., (2020), masa'deh et al., (2018), mahrous et al., (2019), al-dhaafri et al. al., (2016; 2019), and kocak et al., (2017) prove that increasing eo will result in a 45 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 significant increase in business performance. 2) testing hypothesis 2: organizational culture has a positive and significant effect on business performance. these results can be seen in the coefficient value of 0.095 with a t -statistics value of 2.359. the t-statistics value is above the value of 1.96 and the value of sig <0.05 so that h2 is declared accepted. the results of this study support previous research conducted by wang (2019), aboramadan et al., (2019), uzkurt et al., (2013), bhuiyan et al., (2020), carlos pinho et al., (2014) , lita et al., (2020), and garcia-fernandez et al., (2018) which prove that an increase in organizational culture will be followed by a significant increase in business performance. 3) testing hypothesis 3: eo has a positive and significant effect on innovation these results can be seen in the coefficient value of 0.684 with a t-statistics value of 11.321. the value of t-statistics is below the critical value of 1.96 and the value of sig <0.05 so that h3 is declared accepted. the results of this study support previous research conducted by lita et al., (2020), yu et al., (2016), barzola and dentoni (2020), and kocak et al., (2017) which have proven that eo has a positive and negative effect on significant to innovation 4) testing hypothesis 4: organizational culture has a positive and significant effect on innovation these results can be seen in the coefficient value of 0.161 with a t-statistics value of 2.577. the value of t-statistics is below the critical value of 1.96 and the value of sig <0.05 so that h4 is accepted. the results of this study support previous research conducted by wang et al., (2019), shahzad et al., (2017), aboramadan et al., (2019), uzkurt et al., (2013), nguyen et al., (2019), and lita et al., (2020) which prove that organizational culture has a positive and significant effect on innovation. 5) testing hypothesis 5: innovation has a positive and significant effect on business performance. these results can be seen in the coefficient value of 0.573 with a t-statistics value of 7.855. the value of t-statistics is below the value of 1.96 and the value of sig <0.05 so that h5 is declared accepted. the results of this study support previous research conducted by wang et al., (2019), aboramadan et al., (2019), uzkurt et al., (2013), lita et al., (kwarteng and aveh, 2018), hilarious et al., 2017), and ja fari et al., (2017) which prove an increase in innovation will be followed by an increase in business performance. based on the results of tests carried out using the smart pls3.0 application, the following research model images can be presented: 46 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 figure 2 full model structural (pls bootstraping) source : processed data, 2022. table 7 provides information on the results of testing the role of the mediating variable, namely innovation. based on the test results, it can be argued that innovation mediates the effect of entrepreneurial orientation on business performance and also mediates the influence of organizational culture on business performance. the mediation test that has been carried out shows a significant value between the effects of a, c , and d. table 7. recapitulation of test results for innovation mediation variables. no mediasi variabel inovasi, (y1) efek ket (a) (b) (c) (d) 1 organizational culture -> inovasi -> business performance 0,170 (sig) 0,634 (sig) 0,634 (sig) 0,716( sig) partial mediation 2 entreprenuerial_orie ntation -> innovation -> business performance 0,292 (sig) 0,777 (sig) 0,794 (sig) 0,594 (sig) partial mediation source : processed data, 2022. the results of the mediation test shown in the table prove the effect of entrepreneurial orientation on business performance is 0.243 and the total effect mediated by innovation is 0.634, which means that the effect of entrepreneurial orientation on performance increases higher mediated by innovation. the direct influence of organizational culture on business performance was 0.095 and increased to 0.187 mediated by innovation. from these results, it is known that entrepreneurial orientation is 47 giri, k.d.d, et.al (2022). journal of business and behavioural entrepreneurship, 6(1), 36-50 more dominant in influencing business performance, either directly or mediated by innovation. table 8 calculation of direct, indirect and total effects no hubungan variabel efek langsung efek tak langsung efek total 1 organizational_culture -> innovation 0,161 0,161 2 budaya _organisasi -> kinerja_bisnis 0,095 0,092 0,187 3 entreprenuerial_orientation -> inovasi 0,684 0,684 4 entreprenuerial_orientation -> kinerja_bisnis 0,243 0,391 0,634 source : processed data, 2022. conclusion the results of statistical data analysis show that entrepreneurial orientation has a positive and significant effect on cooperative business performance in denpasar city and this means that the higher the entrepreneurial orientation, the higher the cooperative business performance. organizational culture has a positive and significant effect on the business performance of cooperatives in denpasar city, which means that the more supportive the organizational culture, the higher the cooperative business performance. entrepreneurial orientation has a positive and significant impact on cooperative innovation in denpasar city, which means the higher the entrepreneurial orientation, the higher the innovation. organizational culture has a positive and significant effect on cooperative innovation in denpasar city, which means the more it supports organizational culture, the higher the innovation. innovation has a positive and significant effect on cooperative business performance in denpasar city, which means the higher the innovation, the higher the innovation business performance can mediate the respective effects of entrepreneurial orientation and organizational culture on cooperative business performance in denpasar city, which means business performance will increase significantly when cooperatives denpasar city is able to maximize entrepreneurial orientation and organizational culture so as to encourage innovation. the suggestions given include the entrepreneurial orientation variable, which needs to be improved, namely the lowest indicator, namely risk taking, efforts that can be made are the cooperative management in analyzing the risks to be taken more deeply. in the organizational culture variable, it is known that the lowest indicator is adhocracy, by maintaining relationships with staff, increasing the ability of leaders, and increasing insight so that they can see the challenges they face so they can overcome them. in the innovation variable, it is known that the lowest indicator is process innovation by 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(2018). “the effect of corporate culture on firm performance: evidence from china.” china journal of accounting research, 11(1), 1–19. https://doi.org/10.1016/j.cjar.2018.01.003 1 abstract the aim of this research is to reveal the effect of organizational culture and empowerment correlated to work engagement as an intervening variable in relations to general bureau quality serviceability in term of directly nor indirectly, as well as considering the adjusted strategy to enhance serviceability quality. this research uses survey method in quantitative research. the sum of this research is depicted from staff members of general bureau at the ministry of state secretariat of the republic of indonesia, with a sample of 76 employees. the technique in analyzing data used spss and lisrel. in the result of the research revealed that there is a positive direct effect between organizational culture, empowerment and work engagement on service quality, a positive direct effect on organizational culture and empowerment on work engagement and organizational culture on empowerment, and there is an indirect effect between organizational culture through empowerment, organizational culture and empowerment through work engagement. on service quality. this result will be used as a testimony for the institution in order to maintain as well as elevate and expand the dimension and it’s indicator i order to increase service quality of general bureau ’s staffs. thus, can be concluded that in order to generate an optimal service quality among staffs, an organization necessitates to manufacture and uplift organizational culture, empowerment and work bond among the staffs. keywords: organization culture, empowerment, work engagement and service quality. received: 9 december 2020 ; accepted: 13 january 2021 ; publish: june 2021 how to cite: haryono, k., eryanto, h., & wibowo. (2021). the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. journal of business and behavioural entrepreneurship, 5(1), 1-15. https:// doi.org/10.21009/jobbe.005.1.01 the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat koko haryono state university of jakarta email: kokoharyono_7647130205@mhs.unj.ac.id henry eryanto state university of jakarta wibowo university prof. dr moestopo https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 2 introduction the ministry of state secretariat has a very strategic role in supporting the fluency of the duties and functions of the president and vice president in running the government, which is led by the minister of state secretary (ministry of state secretariat of the republic of indonesia, 2015). in carrying out his duties, the minister of state secretary is supported by the state civil apparatus that supports administrative and protocol tasks. based on the minister of state secretary regulation number 3, 2015 about the organization and work procedure in the ministry of state secretariat, one of the existing bureaus of the state secretariat specialized in providing support for household services is the general bureau. based on observations and interviews conducted, it is known that there are still several problems in the general bureau especially in the service quality. service quality is very important in creating customer satisfaction, in this case, the leader and all customers, both internal and external of the organization. by giving an optimal service, hopefully, the organization will achieve its targets and goals easier. based on previous observations and survey, problems related to the service quality are some of the services are not finish at the expected time, the employees look untidy and impolite when giving the services, lack of coordination between divisions, unequal assignments to the employees, sometimes services are only carried out according to operational working hours. this information is supported by a preliminary survey that conducted on 30 respondents which found that service quality is the most dominant issue at the general bureau by 27%, while the rest is affected by other factors. it is also known that there are some service quality indicators that are considered to be less than optimal, such as a display of 57% and a response to service of 57% with rarely and never categories. it is known that there are several factors that are affect the service quality of general bureau employees of the state secretariat, such as work motivation, supervision, organizational culture, education and training, empowerment, work engagement, work environment, compensation and employee rotation. kuldip singh's research, entitled influence of internal service quality on job performance: a case study of the royal police department, suggests that the quality of internal services is positively correlated with job performance. (kuldip singh, 2016). this study shows that the quality of internal services has a positive correlation with the police personnel performance. dean. a. koutroumanist, in his research entitled leadership paradigms, generational differences, and cultural norms and their effects on service quality in the restaurant industry, said that developing human resources will increase various aspects of work and employee satisfaction which is positively related to customer satisfaction and loyalty and finally will affect organizational performance. (koutroumanis & dixon, 2018). the importance of this research is because there has never been any research that examines service quality, especially at the general bureau of the state secretariat, which seen from the effect of organizational culture, empowerment and work engagement factors. the previous researches only examined the service quality on customer satisfaction. in addition, the service quality of employee is important to examine, because the services given will affect the performance of the organization's internal customers which will affect organizational performance. considering the urgency of the problem in this study, the researcher limits the haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 https://doi.org/10.21009/jobbe.004.2.01 3 research to factors of organizational culture, empowerment, and work engagement which assumed will affect the service quality. literature review according to groetsh and davis, as stated by hardiyansyah that “the quality of a service is a dynamic condition that is related to product, service process and its surroundings which fulfills or meets beyond expectations” (hardiyansyah, 2011). a quality is something that is related to a fulfillment or customers’ expectations. lewis and booms as stated by fandi tjiptono also stated that a quality service is defined as “how perfect a service level given could result according to customers’ expectations” (tjiptono, 2008). based on this concept, service quality is determined by the ability of an organization or institution to fulfill customers’ needs and aspiration based on their expectation or hope. in sampara lukman’s definition stated that the quality of a service is “an act of service given to customers based on service fundamentals that are improved, quick, accurate, hospitable according to service fundamentals standardization as a basic guideline in serving customers” (lukman, 2004). in this opinion, these indicates varied positive guidelines and prioritizing customers’ self-satisfaction with the given service. in corresponding to atep adya barata’s opinion “if an employee is unsatisfied, then you will never gain customer satisfaction” (barata, 2014). thus, it is essential to overlook the internal service quality related to the employees’ organizational interactions with the accessible facility given on board. referring to zeithamal, parasuraman and barry in graeme knowls, quality in service is divided into 5 dimensions: 1) tangibles – the service, physical appearance of the surroundings, equipment, staffs and communication flow, 2) responsiveness – the ability to help customers at the right time, 3) reliability – the agility to service in a professional and accurate manner, 4) assurance – knowledge and staff’s hospitality as well as their ability to address their trust and confirmation, 5) empathy – a personal touch and respect. (graeme knowls, 2011) referring to the above various concepts on service quality could be synthesized that a service quality is a working activity of a staff correlated to a professional process of handing a service in order to outcome needs and expectations of a customer in the form of real, professional, mindfulness, assurance and empathy. their indicators are appearance, amenities, frictionless (real act), accuracy, service standardization, staff’s ability (act of being professional), agility, service respond (being mindfulness), being punctual, amenity service and prioritizing customers satisfactions, hospitality and indiscriminate (act of empathy). whereas edgar schein stated that a culture is the form of accumulation which must be distributed and grasped by certain association including their behavior, emotions, and cognitive as well as psychological functions in the stated association. (schein, 2004) joanne martin in luthans emphasized the perspective differences in many organizations related to the culture of an organization, that is “when an individual is related with an organization, they are connected to physical appearance, anecdotes, regulation and formal procedures abide by the organization itself, formal behavior code, ritual, tasks, payroll system, language and quirking only understood by inner staff, etc”. (luthans, 2006) according to luthans, the culture of an organization has several essential characteristics such as the order or regulation of behavior observation, norms, dominant valharyono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 https://doi.org/10.21009/jobbe.004.2.01 4 ue, philosophy, and other benchmarks in the organization (luthans, et al., 2006). this theory demonstrates behavior conduct which this is a part of a process when a staff is in the middle of interacting each other. according to robbins, edi sutrisno stated there are ten main characteristics that are partially a key role which consists of: 1) member’s identity, 2) pressure faction, 3) staffs’ objectives, 4) integration unit, 5) control, 6) risk tolerance, 7) appraisal criteria, 8) conflict tolerance, 9) outcome orientation and 10) embracing new system (sutrisno, et al., 2011). corresponding to edgar schein, there are three phases in an organizational culture: 1) artifact are stages seen on the surface (consists of all phenomenon which all man can see and hear, 2) faith, strategic value, aim, philosophy such as freedom and democracy, 3) basic assumption, usually insensible, easily accepted, faith, perception, thoughts and feelings, primary assumption will somehow create organization’s selfimage and how it confronts its surroundings (schein, et al., 2004). stand on previous concepts addressed are synthesized that culture in an organization is a system apparatus and the value created are meant to be agreed upon collectively into organizational identity in sustaining stability and environment adaptation based on dimensions such as identity, value system and controlling system. the mentioned dimensions has indicators such as organization vision and mission indicators, symbols, routine celebration (identity), indicator, faith, norms, orientation, appraisal criteria, precedent guidelines, evaluation, stability and communication scheme (controlling system). conferring to sedarmayanti, regarding empowerment in general “it felt more empowering than ever before, either in authority, responsibility or the individual’s ability” (sedarmayanti, et. al, 2013). bawen and lawler in gefagnoli defines empowerment as “sharing with front liners’ staff to enhance the organization to become better: information on organizational performance, any slight knowledge for staff to understand and make contributions on organizational performance, rewards based on performance and organizational strength to also make a decision which can affect the organizational performance and it’s orientation” (gefagnoli & vandekerckhole, 2015). according to newstrom et. al, empowerment is a sovereignty process and decision making are far bigger for staffs in every factor in affecting work outcomes (riniwati, 2011). khan and sharafat claimed that “in order to empower workers or staffs, we need to make them acknowledge that they have a full support in decision making, to initiate innovation and or creativity, to communicate and sharing goals, to guide by depicting good samples from top managements. a person who has high confidence and wide knowledge are keen to be empowered”. (gefagnoli & vandekerckhole, 2015). according to kanter, empowerment could be implemented if a person has few supporting conditions such as access to information, support access, source access, formal strength (strengths are distributed based on the organization chart) and informal strength). (gefagnoli & vandekerckhole, 2015). based from several expertise on the above empowerment, thus can be synthesized that empowerment is somewhat an effort made by an institution to encourage, handover responsibility and partial authority in the aim to expand abilities and self – actualizing of an employee or staff with bearing in mind dimensions of ability, facilitating, teamwork collaboration and guidance. pointers in empowerment among them are staff guidance, staff training, and opportunities in experiences (capability), information and facilities availability, time management availability, confronting face-toface, communication (consulting), teamwork pointers between leaders and subordiharyono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 https://doi.org/10.21009/jobbe.004.2.01 5 nates, co-worker’s collaboration (teamwork encouragement), continuous guidance, financial and moralistic endorsement. on the other hand, hewitt commented that work connection is “an emotional intellectual statement towards a company or institution which outcomes behavior and supporting in fulfilling customers’ needs”. employees who are working in sincerity or just plain voluntary, can also be engaged in a forbidden behavior such as lack of attendance, not punctual and whining (schierman a, 2011). whereas macy and scheneider quoted that work bondage consists of employees’ characteristics (able to be correlated), even a positive feeling of an employee bonds will arise (schierman a., et. al, 2011). william a. scheimann defined work bondage consists of three components: (1) a sense of bondage can result a positive vibe in a company or institution and the high level of success aura or euphoria will drive employees to work more or beyond than they can imagine or expect; (2) a sense or work bondage can also predict the behavior of an employee such as wise behavior which results in high empowerment or adaptive behavior such as problem solving and creative decision making can effect productivity, customer loyalty and profit making; (3) empowerment could effect on a company’s actions specially deriving from a supervisor (schierman a, et., al, 2011). according to schaufeli et. al defines empowerment as an engagement in positive thinking, satisfactory and related to high vibes and dedication (schaufeli et al., 2002). based on these opinions and theories among expertise, these could be synthesized that work empowerment is a positive behavior which consists of strength, ability and employee self-empowerment (physical, emotional and intellectual) in the result of maximum empowerment, high commitment and active participation towards work and vigor dimension organization, consistent, perseverance, sustainability, enthusiasm, inspiring, content, seeking more challenges, high devotion in work with full concentration as well. based on the literature and frameworks, the researcher formulated the hypothesis of the study as follows: 1) organizational culture has a positive direct effect to the service quality of an employee, 2) empowering has a positive direct effect to the service quality of an employee, 3) work engagement has a positive direct effect to the service quality of an employee, 4) organizational culture has a positive direct effect on work engagement, 5) empowerment has a positive direct effect on work engagement, 6) organizational culture has a positive direct effect on empowerment, 7) organizational culture through empowerment has an indirect effect on service quality, 8) organizational culture through work engagement has an indirect effect on service quality, 9) empowerment through work engagement has an indirect effect on service quality. research methods this research was conducted at the general bureau of the state secretariat ministry of republic of indonesia, from 2017 to 2019. the sample population of this study for the service quality variable (y) were all internal customers of the organization, namely all employees of state secretariat ministry other than employee of the general bureau employees a total of 899 employees. the data analysis unit used as the population for the variables of organizational culture (x1), empowerment (x2) and work engagement (x3) were 307 employees of the general bureau of the state secretariat ministry. to determine the sample, the researcher used the slovin formula technique with random sampling technique. a precision level of 10% with a confidence level of the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 6 90%, the sample obtained for as many as 76 people. results and discussions description of the research data result includes the descriptions of data related to the respondent’s characteristics and descriptions of data related to research variables. the service quality variable score was obtained from the average value of 228 respondents by filling out a questionnaire with 35 questions with an average value of 76. the scoring is done using the likert model for each question, where the theoretical range of scores on the item is between 35 and 175. based on the calculation, the results are obtained for the minimum value is 100, the maximum is 171, the mean is 133, 93, the frequently occurring value (mode) is 129, the median value is 113, the standard deviation is 14, 9 and the variance is 222.062. the scores for each variable were obtained from 76 respondents. for the respondent's organizational culture variable by filling out a questionnaire with 27 questions. the scoring is done using the likert model for each question, where the theoretical range of scores on the item is between 27 and 135. based on the calculation, the results are obtained for the minimum value is 84, the maximum is 135, the mean is 115, 62, the frequent values (mode) were 109 and 114, the median was 116, the standard deviation was 11.29 and the variance was 127.59. meanwhile, the score for the variable of respondents' empowerment filled a questionnaire with 33 questions. the scoring is done using the likert model for each question, where the theoretical range of scores on the item is between 29 and 165. based on the calculation, the results are obtained for the minimum value is 106, the maximum is 165, the mean is 138, 30, the frequently occurring value (mode) is 143, the median value is 139.50, the standard deviation is 15.753 and the variance is 248.161. the score for the work engagement variable was obtained from the respondent by filling in a questionnaire with 23 questions. the scoring is done using the likert model for each question, where the theoretical range of scores on the item is between 23 and 114. based on the calculation, the results are obtained for the minimum value is 82, the maximum is 115, the mean is 99, 92, the frequently occurring value (mode) is 96, the median value is 100.50, the standard deviation is 8.434 and the variance is 71.140 testing requirements which include normality, linearity and significance tests are carried out before testing the hypothesis. based on data processing using spss 22, the normality test output is shown in table 1 below. the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 7 table 1 normality data test results with kolmogorov-smirnov dan shapiro wilk from the table above, it shows that the model fulfills the normality assumption by looking at the statistical test score where the sample will be normally distributed if the probability is> 0.05 then h0 is accepted, but the population distribution is not normal if the probability then h0 is rejected. furthermore, based on the anova results, it is found that the calculation of f count of suitable tuna <ftable (α = 0.05) 3.97 is shown in the table: table 2 recapitulation of linearity test results table 3 recapitulation of correlation coefficient calculation results the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 no model regresi test statistc kolomogorov smirnov conclusion interpretasi 1. y x1 0, 216 h0 accept normal 2. y x2 0, 107 h0 accept normal 3. y x3 0, 117 h0 accept normal 4. x3 x1 0, 072 h0 accept normal 5. x3 x2 0, 086 h0 accept normal 6. x2 x1 0, 104 h0 accept normal no model regresi f hitung f tabel result 1. y x1 0, 984 3,97 linier 2. y x2 0, 589 3,97 linier 3. y x3 0,896 3,97 linier 4. x3 x1 2,154 3,97 linier 5. x3 x2 0, 961 3,97 linier 6. x2 x1 0, 961 3,97 linier no model regresi koefisien korelasi t count t table result 1. y x1 0,687 8, 142 1,992 significant 2. y x2 0,680 7,967 1,992 significant 3. y x3 0,661 7,588 1,992 significant 4. x3 x1 0,634 7,051 1,992 significant 5. x3 x2 0,669 7,747 1,992 significant 6. x2 x1 0,771 8,709 1,992 significant haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 8 from the table above, it is known that tcount > t table or h0 is rejected, this means that the correlation between variables is significant. the structural relationship model is tested for the model fit or goodness of fit (gof) model using the lisrel program package. the test was carried out by involving each indicator that forming the variable in the study, namely organizational culture / bo (x1)), empowerment / pb (x2), work engagement / kk (x3) and service quality / kp (y). table 4 godnes of fit (gof) table the table shows the goodness of the models which consist of various sizes. based on several measures of model goodness, it can be seen that the model proposed in this study is quite good as seen from the rmsea value which is within the specified limits. in general, the gfi scores show good results. thus, it can be said that the model is suitable for use. based on the results of the statistical test of structural equation models 1, 2 and 3 obtained, it can be pictured as follows: figure 1. empirical model of structural relationship between variables based on the results of path analysis discussion in detail, the discussion of the results of the analysis and testing of the research hypothesis is explained as follows: hypothesis test results on the effects of organizational culture (x1) towards the service quality (y) based on the results of the hypothesis test, it shows that organizational culture has a direct effect on service quality by 0.323 or 32.3%. the results of further testing carried out by t-test showed that the t-count was 2.852 while the t-table was 1.992 (α = 0.05), because t-count > t-table (α = 0.05) and the value of sig. = 0.01 <α = 0.05, then h0 is rejected. the results of testing this hypothesis indicate that there is a positive dithe effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 measurement score description conclusion goodness of fit indeks (gfi) 0,80 expected score > 0,80 the model has good compatibility root mean square error of approximation (rmsea) 0,046 expected score < 0,08 the model has good compatibility x1 x2 x y ρ y2= 0,261 ρ y1= 0,323 ρ y3= 0,282 ρ32= 0,442 ρ21 = 0,711 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 9 rect effect of organizational culture (x1) on service quality (y). the t-test is carried out to confirm that the positive direct effect of organizational culture on service quality is significant. from the eleven indicators of organizational culture known that there are two indicators that need to be improved, they are the orientation indicator with a score of 4.13. this shows that employees need more support to achieve goals and targets for improvement in the future. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, other indicators such as vision and mission, symbols, routine celebrations, beliefs, norms, award criteria, rules, evaluation, stability and communication patterns need to be maintained so that these indicators are well preserved. based on empirical evidence, the findings of this study indicate that organizational culture is a very important variable and has a positive direct influence on service quality. this means that the increase of organizational culture will lead to an increase in service quality. hypothesis test results on the effects of empowerment (x2) towards the service quality (y) this research hypothesis, shows that empowerment has a direct effect on service quality. as big as 0.261 or 26.1%, with a tcount of 2.215 while ttable of 1.992 (α = 0.05), because tcount> ttable (α = 0.05) and sig. = 0.00 <α = 0.05, then h0 is rejected. the results of testing this hypothesis indicate that there is a positive direct influence between empowerment (x2) on service quality (y). the t-test is carried out to confirm that the positive direct effect of empowerment on service quality is significant. from the fourteen empowerment indicators, it is known that there is one indicator that needs to be improved, which is the face-view indicator with a score of 4.02. this shows that employees need more face-to-face opportunities in carrying out service tasks and achieving organizational goals. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, other indicators like educating, training, the need for experience, information, facilities, time, communication, leadership and subordinates, guidance, morals and finances should be maintained so that these indicators are well preserved. based on empirical evidence, the findings of this study indicate that empowerment is a very important variable and has a direct positive effect on service quality. this means that the increase of empowerment will improve the service quality. hypothesis test results on the effects of work engagement (x3) towards the service quality (y) the results of this hypothesis indicate that work engagement has a direct effect on service quality by 0.282 or 28.2%, with a tcount of 2.636, while ttable is 1.992 (α = 0.05), because tcount> ttable (α = 0.05). ) and the sig. = 0.00 <α = 0.05, then h0 is rejected. the results of this hypothesis test indicate that there is a positive direct effect of job engagement (x3) on service quality (y). the t-test is carried out to confirm that the positive direct effect of job engagement on service quality is significant. the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 10 based on empirical evidence, the findings of this study indicate that work engagement is a very important variable and has a positive direct effect on service quality. this means that the increase of working engagement will develop the service quality. hypothesis test results on the effects of organizational culture (x1) on work engagement (x3) the results of this hypothesis indicate that organizational culture has a direct effect on work engagement by 0.320 or 32%, with a tcount of 2.709, while ttable is 1.992 (α = 0.05), because tcount> ttable (α = 0.05) and sig = 0.00 <α = 0.05, then h0 is rejected which means that organizational culture (x1) has a positive direct effect on work engagement (x3). the t-test is carried out to confirm that the positive direct effect of organizational culture on work engagement is significant. from the eleven indicators of organizational culture noted that there are two indicators that need to be improved, namely the orientation indicator with a score of 4.13. this shows that employees need more support to achieve goals and targets for improvement in the future. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, the other indicators like vision and mission, symbols, routine celebrations, beliefs, norms, award criteria, rules, evaluation, stability and communication patterns need to be maintained so that these indicators are well preserved. based on empirical evidence, the findings of this study indicate that organizational culture is a very important variable and has a positive direct effect on work engagement. this means that the increase of organizational culture will lead to an increase in working engagement. hypothesis test results on the effect of empowerment (x2) on work engagement (x3) the test results of this hypothesis show that empowerment has a direct effect on job engagement ¬ as large as 0.442 or 44.42%, with a tcount of 3.746, while ttable is 1.992 (α = 0.05), because tcount> ttable (α = 0.05). ) and sig = 0.012 <α = 0.05, then h0 is rejected, which means that empowerment (x2) has a positive direct effect on work engagement (x3). the t-test is carried out to confirm that the positive direct effect of empowerment on work engagement is significant. from the fourteen indicators of empowerment, it is known that there is one indicator that needs to be improved, namely the face-view indicator with 4.02 score. this shows that employees need more face-to-face opportunities in carrying out service tasks and achieving organizational goals. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, other indicators like educating, training, the need for experience, information, facilities, time, communication, leadership and subordinates, guidance, guidance, morals and finances so that they are maintained so that these indicators are well preserved. the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 11 based on empirical evidence, the findings of this study indicate that empowerment is a very important variable and has a positive direct effect on work engagement. this means that the increase of empowerment will lead to an increase in work engagement. hypothesis test results on the effect of organizational culture (x1) on empowerment (x2) the test results of this hypothesis indicate that organizational culture has a direct effect on empowerment by 0.711 or 71.1%, with a tcount of 8,709, while ttable is 1.992 (α = 0.05), because tcount> ttable (α = 0.05) and the sig = 0.012 <α = 0.05, then h0 is rejected, which means that organizational culture (x1) has a positive direct effect on empowerment (x2). the t-test is carried out to confirm that the positive direct effect of organizational culture on empowerment is significant. from the eleven indicators of organizational culture, it is known that there are two indicators that need to be improved, namely the orientation indicator with 4.13 score. this shows that employees need support to achieve goals and targets for improvement in the future. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, the other indicators like vision and mission, symbols, routine celebrations, beliefs, norms, award criteria, rules, evaluation, stability and communication patterns need to be maintained so that these indicators are well preserved. based on empirical evidence, the findings of this study indicate that organizational culture is a very important variable and has a positive direct influence on empowerment. this means that the increase of the organizational culture will increase the empowerment. hypothesis test results on the effect of organizational culture (x1) on service quality (y) through empowerment (x2) in the results of this study using the sobel test calculation and obtained a z value of 2.156. because the z score obtained is 2.156> 1.96 (absolute z value) with a significance level of 5%, it proves that empowerment is able to mediate the influence relationship between organizational culture on the service quality of employees at the general bureau of the state secretariat. based on the results of the hypothesis test, it shows that organizational culture has a direct effect on service quality by 0.323 or 32.3%. from the eleven indicators of organizational culture, it is known that there are two indicators that need to be improved, namely the orientation indicator with 4.13 score. this shows that employees need support to achieve goals and targets for improvement in the future. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, vision and mission, symbols, routine celebrations, beliefs, norms, award criteria, rules, evaluation, stability and communication patthe effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 12 terns need to be maintained so that these indicators are well preserved. related to the reality in the field, the researcher argues that even though the organization has procedures and mechanisms for managing empowerment, as stated by the experts above, including in making policies related to empowerment by considering the needs of employees, there are still gaps as seen in the description of the results data. research. evidence that the ministry of state secretariat has empowerment is by holding education and training which are held regularly every year, and employees are given the opportunity to participate. based on empirical evidence, the findings of this study indicate that organizational culture affects service quality through empowerment of employees at the general bureau, the ministry of state secretariat. this means that the increase of organizational culture will improve the service quality through empowerment. hypothesis test results on the effect of organizational culture (x1) on service quality (y) through work engagement (x3) in the results of this study using the sobel test calculation and obtained a z value of 2.473. because the z value obtained is 2.473> 1.96 (absolute z value) with a significance level of 5%, it proves that work engagement is able to mediate the influence relationship between organizational culture on service quality of employees at the general bureau of the national secretariat. from the eleven indicators of organizational culture, it is known that there are two indicators that need to be improved, namely the orientation indicator with 4.13 score. this shows that employees need support to achieve goals and targets for improvement in the future. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, the other indicators; vision and mission, symbols, routine celebrations, beliefs, norms, award criteria, rules, evaluation, stability and communication patterns need to be maintained so that these indicators are well preserved. based on the results of the hypothesis test, it shows that organizational culture has a direct effect on service quality by 0.323 or 32.3%. the results of this study are also supported by jay romans and jeff tobaben with the title our take: building cultures work engagement, explaining that the key to work engagement is the top team. effective leaders are constantly looking for new ways forward. they have the principle of rebuilding the path that will motivate and capture the energy from them needed for success which in turn will improve the performance and quality of service for employees (romans & tobaben, 2016). based on empirical evidence, the findings of this study indicate that there is an indirect influence between organizational culture on service quality through work engagement with employees at the general bureau, the ministry of state secretariat. this means that the increase of organizational culture will improve the service quality through work engagement. the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 13 hypothesis test results of the effect of empowerment (x2) on service quality (y) through work engagement (x3) in the results of this study using the sobel test calculation and obtained a z value of 2.500. because the z value obtained is 2,500> 1.96 (absolute z value) with a significance level of 5%, it proves that work engagement is able to mediate the influence relationship between organizational culture on the service quality of employees at the general bureau of state secretariat from the fourteen indicators of empowerment, it is known that there is one indicator that needs to be improved, namely the face-view indicator with 4.02 score. this shows that employees need more face-to-face opportunities in carrying out service tasks and achieving organizational goals. this indicator needs to be improved because it can contribute to the organization in improving service quality. meanwhile, other indicators; educating, training, the need for experience, information, facilities, time, communication, leadership and subordinates, guidance, guidance, morals and finances so that they are maintained so that these indicators are well preserved. related to the reality in the field, the researcher argues that even though the organization has a mechanism to encourage work engagement, as stated by the experts above, including in making policies related to work engagement, there are still gaps as seen in the description of the research data. evidence that the state secretariat ministry has a mechanism to encourage good work engagement, the state secretariat ministry has provided employees with opportunities to develop themselves through education and training held, this is one of the empowerment efforts carried out by the organization. based on empirical evidence, the findings of this study indicate that there is an indirect influence between empowerment on service quality through work engagement with employees at the general bureau, the ministry of state secretariat. this means that the increase of the empowerment will improve the service quality through employee engagement. conclusion organizational culture has a direct positive effect on service quality, meaning that if the organizational culture increases, it is predicted that service quality will also increase. empowerment has a positive direct effect on service quality, means that if empowerment increases, it is predicted that service quality will also increase. work engagement has a direct positive effect on service quality, means that if work engagement increases, it is predicted that service quality will also increase. organizational culture has a direct positive effect on work engagement, means that if organizational culture increases, it is predicted that work engagement will also increase. empowerment has a direct positive effect on work attachments, means that if empowerment increases, it is predicted that work attachments will also increase. organizational culture has a direct positive effect on empowerment, means that if empowerment increases, it the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 14 is predicted that work attachments will also increase. organizational culture has a direct positive effect on empowerment, means that if empowerment increases, it is predicted that work attachments will also increase. service quality has an indirect effect on organizational culture through empowerment, empowerment, means empowerment is able to mediate the influence of organizational culture on service quality. service quality has an indirect effect on organizational culture through work engagement, meaning that work engagement is able to mediate the influence of organizational culture on service quality. service quality has an indirect effect on empowerment through work engagement, meaning that work engagement is able to mediate the influence of organizational culture on service quality. references abdhy, a. a. 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(2017). effects of ethical leadership on employee w ell-being : 32(2), 121–137 the effect of organizational culture and empowerment correlated to work engagement as an intervening variables towards to the service quality of employee of general bureau at the ministry of state secretariat. https://doi.org/10.21009/jobbe.005.1.01 haryono, k., eryanto, h., & wibowo. journal of business and behavioural entrepreneurship, 5(1), 1-15 https://doi.org/10.21009/jobbe.004.2.01 1 abstract this study aims to analyze the effect of occupational safety, work skills, and employability on stress and its implications on the labor productivity of construction service workers in jabodetabek. this researcher uses a quantitative approach with a survey method. the sample used in this study are 303 permanent workforce in the construction service sector of structure work ( formwork, putting ironn and casting ) who have a minimum of high school education equivalent that determines proportionate random sampling. the research data were obtained from distributing questionnaires and analyzed using structural equation modeling (sem) analysis supported by descriptive statistical analysis. the results of this study indicate occupational safety, work skills, employability and stress have a direct effect on work productivity; occupational safety, work skills and employability have a direct effect on stress; occupational safety, work skills and employability have a indirect effect on work productivity with stress mediation. therefore, improvements in occupational safety, work skills, employability, and stress can increase work productivity. the novelty of this study is in the form of a research model of the effect of occupational safety, work skills, and employability on work productivity with stress mediation developed from previous relevant studies with construction service research locations in jabodetabek, 2019. keywords: occupational safety, work skills, employability, stress, work productivity. received: 4 december 2019 ; accepted: 22 january 2020 ; publish; june 2020. how to cite: nurhani., wibowo., & santoso, budi. (2020). the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers. journal of business and behavioural entrepreneurship, 4(1), 1-15. https://doi.org/10.21009/jobbe.004.1.01 the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers nurhani universitas negeri jakarta email: hanimuchtar70@yahoo.com wibowo universitas negeri jakarta email: wibowo303@yahoo.co.id budi santoso universitas negeri jakarta email: rawdo2003@gmail.com 2 introduction as a developing country, construction project activities in indonesia are growing and developing rapidly. however, in the implementation of construction project work, there are often constraints that cause delays in project work so project completion is not according to plan. this shows that the project management was not carried out properly. successful implementation of project management is measured by the project's objective achievement, including project completion on time, within budget, according to technical specifications, effective and efficient use of project resources, and accepted by customers (harold, in kerzner, 2009). in fact, many contracting companies in indonesia, especially projects undertaken by pt waskita karya (persero) tbk, pt wijaya karya and pt adhi karya in a number of locations in greater jakarta showed labor productivity in the construction service sector is less than optimal, with indications unable to achieve work targets, use of project resources that are less efficient and less effective, as well as lack of discipline in work which is manifested in chatting, smoking, and relaxing during working hours and not using work safety equipment while working. such suboptimal work productivity needs to be anticipated immediately because productivity is one of the most widely used tools to evaluate, monitor, and improve national industrial and economic performance (bitran & chang, in bashir, alzebdeh, & al riyami, 2014). productivity is also one of the most important factors affecting the overall performance of every organization, large or small (kazaz & ulubeyli, in bashier, et al., 2014). productivity reflects the ratio of output to input (resources) used to produce output (attar, gupta, & desai, 2013; hersey, blanchrard, & johnson, 2008; koontz & weihrich, in janjua, 2016). in addition, productivity also shows the ability of employees to produce jobs or goods and services in accordance with standards (mawanza, 2017) and the multiplication function of employee effort (effort) supported by high motivation and employee ability (ability) obtained through training ) (klingner & nanbaldian, in gomes, 2005). robbins (in droussiotis, 2004) suggests that productivity is a measurement of performance which includes effectiveness and efficiency. effectiveness is the ability to achieve goals, while efficiency shows the ability to achieve these goals by using the minimum resources to get maximum results. lawlor (in gomes, 2005) also states almost the same thing that productivity is a comprehensive measurement of how efficiently and effectively an organization or economy satisfies five objectives, namely: goals, efficiency, effectiveness, comparability and increasing trends. sedarmayanti (2009) also mentioned that productivity has two dimensions, namely effectiveness and efficiency. the first dimension relates to achieving maximum performance, in the sense of achieving targets related to quality, quantity and time. while the second dimension relates to efforts to compare inputs with the realization of their use or how the work is carried out. for sinungan (2009), productivity is an interdisciplinary approach to setting effective goals, making plans, applying productive methods to use resources efficiently, and maintaining high quality. this study aims to analyze the effect of occupational safety, work skills, and employability on stress and its implications on the labor productivity of construction service workers in jabodetabek. the novelty of this study is in the form of a research model of the effect of occupational safety, work skills, and employability on work productivity with stress mediation developed from previous relevant studies with construction service research locations in jabodetabek, 2019. nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 3 literature review productivity is influenced by the working environment; safety; participation in decision making; career development/progression; heath; relate to top management; planning, coordination; communication; training; employee relationships; lighting; noise; color; and air quality (chaudhari & pandey, 2012; sarode & shirsath, 2014; hoffman & mehra, in bashir, et al., 2014). in the context of the construction workforce, productivity is affected: political situation, equipments shortages, old and inefficient equipment, lack of labor experience, situasi poor site management; difficulty with recruitment of supervisors, difficulty with recruitment of workers, high rate of labor turnover, absenteeism from the work site, communication problems with foreign workers; lack of materials, weather and physical site conditions, lack of proper tools and equipment, design, drawing and change orders, inspection delays, absenteeism, safety, improper plan of work, repeating work, changing crew size and labor turnover (zakeri et al., in mahamid et al., 2013; lim et al., in mahamid et al., 2013; mahamid et al., 2013). in addition, work productivity is also influenced by occupational safety (prayitno, palupi, & khoiron, 2015; has & susanty, 2016; shirali, savari, ahmadiangali, & salehi, 2016). occupational safety makes working conditions safe by providing safety equipment, good lighting, keeping floors and stairs free of water, oil, mosquitoes and maintaining good water facilities (agus, in paramita & wijayanto, 2012). occupational safety is an employee protection from injuries caused by work-related accidents (rivai, in al kautsar, swasto, & al musadieq, 2013); safe conditions from suffering, damage and loss at work (mangkunegara, in wardana, al musadieq & nurtjahjono, 2014); a form of conditions that avoid errors and damage to work done by workers / employees (widodo, 2015); safe or safe condition from suffering, damage or loss at work (bestari, in al kautsar et al., 2013); safety which is closely related to the engine, aircraft, work tools, materials and processing processes, the workplace foundation and its environment and how to do work (suma'mur, 2010); the whole process of labor protection against the possibility of hazards arising in the work environment (silalahi & rumondang, in widodo, 2015); an attempt to prevent any unsafe acts or conditions that could result in an accident (swasto, in al kautsar et al., 2013). lutchman et al. (2012) mentions a number of aspects that can affect occupational safety, which are often referred to as 7es, namely: engineering, enforcement, education, emotion, empathy, empowerment, and engagement. thus it can be hypothesized: h1: occupational safety has a direct positive effect on work productivity. h2: work skills have a direct positive effect on work productivity. h3: employability has a direct positive effect on work productivity. h4: stress has a direct effect on work productivity. h5: occupational safety has a direct negative effect on labor stress in the construction service sector. h6: work skills have a direct negative effect on labor stress in the construction service sector. h7: employability has a direct negative effect on labor stress in the construction service sector. that means that stress can act as a mediator for the effect of occupational safety, work skills and employability on work productivity, so it can be hypothesized: h8: occupational safety has an indirect effect on the work productivity of the construction service sector workforce with stress mediation. h9: work skills have an indirect effect on the work productivity of the construction nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 4 service sector workforce with stress mediation. h10 : employability has an indirect effect on the labor productivity of the construction service sector workforce with stress mediation. research method the sample of this study was 303 people taken by proportionate random sampling from 1,256 permanent workers in the construction service sector working on construction projects in the greater jakarta area based on the slovin formula (in widodo, 2018) with an error margin of 5%. data were collected by questionnaire in the form of a likert scale with five alternative answers: always, often, sometimes, rarely and never. data were analyzed using the structural equation modeling (sem) formula, the processing of which was carried out with the linear structural relation (lisrel) 8.8 for windows application. the significance of the direct effect test uses the t test, while the significance test of the indirect effect uses the shobel test. results and discussions the structural equation model obtained is shown in the path coefficient and tvalue as follows: figure 1. path coefficient nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 5 figure 2. t-value the indexes produced to determine the suitability of the model can be seen in the following table. table 1. model compatibility testing the accuracy of the model testing results shows that of the nine indexes there are four categorized indexes not fit (p ((c 2 ), rmsea, gfi, agfi) and five indexes categorized as good fit (nfi, nnfi, cfi, ifi, and rfi). from the results of this test, no index standard value value obtained information 1 p ( 2 ) > 0.05 0.00 not fit 2 rmsea < 0.08 0.17 not fit 3 gfi > 0.90 0.64 not fit 4 agfi > 0.90 0.55 not fit 5 nfi > 0.90 0.96 good fit 6 nnfi > 0.90 0.94 good fit 7 cfi > 0.90 0.97 good fit 8 ifi > 0.90 0.97 good fit 9 rfi > 0.90 0.93 good fit nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 6 there are more indices that are categorized as good fit, so it can be concluded that the empirical model of the influence of occupational safety, work skills, and employability on stress and work productivity is in accordance with the theoretical model. the path coefficients of direct and indirect influence, tvalue / zcount and their significance are summarized as follows: table 2. direct and indirect influence path coefficients * significant path coefficient (tvalue / zvalue > ttable / ztable on a= 0.05 = 1.65) all direct and indirect effects are significant. the path coefficient of the direct effect of occupational safety on work productivity = 0.18 and tvalue = 5.44 is greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a positive and significant direct effect of safety work on work productivity. this means the theory and the results of previous studies that are used as the basis for building a hypothesis that occupational safety directly affects work productivity are proven. thus, improving occupational safety can increase work productivity. the path coefficient of the direct influence of work skills on work productivity = 0.20 and tvalue = 6.59 is greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a positive and significant direct effect of skills work on work productivity. this means the theory and the results of previous studies which are used as the basis for building a hypothesis that work skills directly influence work productivity are proven. thus, improving work skills can increase work productivity. on the path coefficient of the direct effect of employability on work productivity = 0.49 and tvalue = 8.66 is greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a positive and significant direct effect of employability on work productivity. this means the theory and the results of previous studies that are used as the basis for building a hypothesis that employability has a direct effect work productivity are proven. path path coefficient tvalue /zvalue significance α = 5% (ttable/ztable =1.65) occupational safety (x1) à work productivity (y2) 0.18 5.44 significant work skill (x2) à work productivity (y2) 0.20 6.59 significant employability (x3) à work productivity (y2) 0.49 8.66 significant stress (y1) à work productivity (y2) -0.14 -2.46 significant occupational safety (x1) à stress (y1) -0.20 -4.00 significant work skill (x2) à stress (y1) -0.20 -4.42 significant employability (x3) à stress (y1) -0.33 -4.01 significant occupational safety (x1)  stress (y1) à work productivity (y2) 0.03 (-0.20 x -0.14) 9.27* significant work skill (x1)  stress (y1) à work productivity (y2) 0.03 (-0.20 x -0.14) 9.18* significant employability (x1)  stress (y1) à work productivity (y2) 0.04 (-0.33 x -0.14) 8.51* significant nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 7 thus, improving employability can increase work productivity. path coefficient of direct influence of stress on work productivity = -0.14 and tvalue = -2.46 greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a negative and significant direct effect of stress on work productivity. this means the theory and the results of previous studies that are used as the basis for building a hypothesis that stress directly affects work productivity are proven. thus, increasing stress can reduce work productivity, or reducing stress can increase work productivity. the path coefficient of the direct influence of work skills on stress = -0.20 and tvalue = -4.42 is greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a negative and significant direct effect stressful work skills. this means the theory and the results of previous studies that are used as a basis for building a hypothesis that work skills directly influence stress are proven. thus, improvement in work skills can reduce stress. the path coefficient of the direct effect of employability on stress = -0.33 and tvalue = -4.01 is greater than ttable (n> 303; α 5%, two tail) = 1.65, so there is a negative and significant direct effect of employability to stress. this means that the theory and the results of previous studies which are used as the basis for building a hypothesis that employability has a direct effect on stress are proven. thus, improving employability can reduce stress. the path coefficient of the indirect effect of occupational safety on work productivity with stress mediation = 0.03 and zvalue= 8.27 is greater than ztable (n> 303; α 5%, two tail) = 1.65, so there is no influence positive and significant direct safety of work on work productivity with stress mediation. this means that the theory and the results of previous studies that are used as the basis for building a hypothesis that occupational safety has an indirect effect on work productivity with stress mediation are proven. thus, improvements to occupational safety that are supported by stress reduction can increase work productivity. the path coefficient of the indirect effect of work skills on work productivity with stress mediation = 0.03 and zvalue = 9.18 is greater than ztable (n> 303; α 5%, two tail) = 1.65, so there is no influence direct and significant work skills on work productivity with stress mediation. this means the theory and the results of previous studies that are used as a basis for building a hypothesis that work skills indirectly influence work productivity with stress mediation are proven. thus, improvement of work skills supported by stress reduction can increase work productivity. the path coefficient of the indirect effect of employability on work productivity with stress mediation = 0.04 and the zvalue = 8.51 is greater than ztable (n> 303; α 5%, two tail) = 1.65, so there is an indirect effect and significant employability on work productivity with stress mediation. this means that the theory and the results of previous studies which are used as the basis for building a hypothesis that employability has an indirect effect on work productivity with stress mediation are proven. thus, improvement in employability supported by stress reduction can increase work productivity. the structural equation of the stress variable (y1) is: y1 = -0.20 * x1 0.20 * x2 0.33 * x3, errorvar = 0.55, r 2 = 0.45. for occupational safety variables obtained structural coefficient = -0.20, work skills = -0.20 and employability = -0.33. the structural coefficient values of the three are negative, thus indicating that the effect of occupational safety, work skills, and employability on stress is negative, which means that improvements in occupational safety, work skills, and employability can reduce stress. occupational safety, work skills, and employability variables are able to explain stress variable variations of 0.45 (45%). nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 8 the structural equation of work productivity (y2) is: y2 = -0.14 * y2 + 0.18 * x1 + 0.20 * x2 + 0.49 * x3, errorvar = 0.17, r 2 = 0.83. for work productivity the structural coefficient of stress is obtained = -0.14; occupational safety = 0.18; work skills = 0.20, and employability = 0.49. the value of the structural coefficient of occupational safety, work skills, and employability on work productivity is positive, thus indicating that improvements in occupational safety, work skills, and employability can increase work productivity. conversely, the structural coefficient of stress is negative, thus indicating that reducing stress can increase work productivity. the variables of occupational safety, work skills, employability, and stress in explaining the variations in the variable of high work productivity, that is equal to 0.83 (83%). discussion the results of this study indicate that occupational safety has a positive and significant effect on work productivity. this finding can be understood because in practice occupational safety largely determines work productivity. poor labor productivity, which among others is caused by work accidents, contributes greatly to the delay of many projects (muhammad, et al., 2015). this shows the vitality of occupational safety as an effort to prevent any unsafe acts or conditions of a person that can result in accidents both caused by oneself and the work environment, which include: engineering, enforcement, education, empowerment, and engagement (lutchman et al., 2012). when occupational safety is manifested in the five indicators in good condition, it can have an impact on increasing work productivity, namely employee efforts to produce a high ratio between the results achieved with the resources used, with indicators: work effectiveness, work efficiency, quality and standards (lawlor, in gomes, 2005; robbins, in droussiotis, 2004; sinungan, 2009). the results of the research by prayitno, palupi and khoiron (2015), has and susanty (2016), shirali, savari, ahmadiangali, and salehi (2016) also show that occupational safety has an effect on work productivity. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that occupational safety has a positive and significant effect on work productivity by setting employment performance in the construction service sector in construction service companies in jabodetabek. the results of this study indicate that work skills have a positive and significant effect on work productivity. work skills are the skills or expertise to do a job that is only obtained in practice (tolo et al., 2016), or in other words special knowledge, analytical skills in that specialization, and facilities in the use of tools and techniques from special disciplines (sunindijo, 2015). thus work skills are the skills to do a job in practice through special knowledge, analytical skills in their specialization, and facilities in the use of tools and techniques from special disciplines, which include indicators: communication, environmental change, technological development, interpersonal relations, managing work, phonetically (fitriati & hermiati, 2010). a company that can condition the work skills of its employees well through a number of indicators such as that will have an impact on increasing work productivity, namely the capacity of the workforce to produce a high ratio between the results achieved with the resources used, manifested in effectiveness and efficiency of work, quality and standards (lawlor, in gomes, 2005; robbins, in droussiotis, 2004; sinungan, 2009). the results of webber, ser, and goussak's research (2015 :) also prove that work skills affect work productivity. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that work skills have a positive and significant effect on work productivity by setting employment performance in the construcnurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 9 tion service sector in construction service companies in jabodetabek. the results of this study indicate that employability has a positive and significant effect on work productivity. employability is the capability of individuals to maintain, maintain and develop competencies and qualifications that can increase labor market participation in a sustainable or career potential, which is reflected in specific work skills, proactive, adaptability, balance between organizational and personal interests (peters and lam, 2015) . if the employability of the construction service sector workforce can be well conditioned, then that is a good will for increasing work productivity, namely the capacity of the workforce to produce a high ratio between the results achieved and the resources used, with indicators: effectiveness and efficiency of work, quality and standards (lawlor, in gomes, 2005; robbins, in droussiotis, 2004; sinungan, 2009). ybemaa, vuurenb, and damd (2017) research results also prove that employability has an effect on work productivity. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that employability has a positive and significant effect on work productivity by setting employment performance in the construction service sector in construction service companies in jabodetabek. the results of this study indicate that stress has a negative and significant effect on work productivity. stress becomes important in a company, including a contracting company, because stress can be a reflection of high or low levels of productivity. this can be interpreted that when the stress level of employees in the company is very high, then what happens is low work productivity. this means that one factor that can affect work productivity is stress. stress is an adjustment response as a manifestation of an individual's mental, physical, emotional, and spiritual inability to deal with threats from outside himself, which is reflected in subjective, behavioral, cognitive, physiological, and organizational (gibson et al., 2012). if stress experienced by employees such as subjective, behavioral, cognitive, physiological, and organizational conditions can be well conditioned, it can have an impact on increasing work productivity, namely the capacity of the workforce to produce a high ratio between the results achieved with the resources used, which are seen in work effectiveness and efficiency, quality and standards (lawlor, in gomes, 2005; robbins, in droussiotis, 2004; sinungan, 2009). the results of research by petreanua, iordachea, and seracin (2013) and donald, taylor, and johnson (2005) also prove that stress affects work productivity. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that stress has a positive and significant effect on work productivity by setting employment performance in the construction service sector in construction service companies in jabodetabek. the results of this study indicate that occupational safety has a negative and significant effect on stress. stress is considered a major problem for workers in a dynamic, turbulent and highly competitive environment with an emphasis on controlling costs, reducing labor costs, and lower productivity. stress must be distinguished from stressful experiences or situations, which are objects or events that cause stress (bernardin & russell, 2013). potential stress exists when environmental conditions exceed or are not in accordance with the ability and resources of a person in their interactions so as to present a threat to him (mcgrath, in rue et al., 2016). many factors can affect stress, one of which is occupational safety, which is a systematic system unity in the form of activities to plan, organize, direct, and control every effort to prevent any deeds or conditions of unsafe person that can result in accidents both caused by oneself and work environment, including indicators: engineering, enforcement, education, empowerment, and engagement (lutchman et al, 2012). if occupational safety nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 10 can be well conditioned through several indicators such as that, it can affect the low level of stress, namely the response of adjustment as a manifestation of an individual's mental, physical, emotional, and spiritual inability to face external threats manifested in subjective, behavioral, cognitive, physiological, and organizational (gibson et al., 2012). the results of susetyo and ratnaningsih's research (2016) also show that perceptions of k3 have a negative relationship with work stress. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that occupational safety has a negative and significant effect on stress with the setting of employment in the service sector construction at a construction service company in jabodetabek. the results of this study indicate that work skills have a negative and significant effect on stress. stress can basically be experienced by everyone but the discussion of stress is more associated with the world of work and activities that are very important in human life. in fact, according to mark, stress has become a world phenomenon that occurs in various forms in every workplace. in today's work life, employees generally work longer hours, as an increasing level of responsibility requires them to exert themselves even harder to meet rising expectations about their performance (okeke, echo, & oboreh, 2016). stress is a complex and dynamic concept. unwanted levels of stress affect overall organizational performance. therefore, to get work done effectively, the organization or manager must manage stress levels correctly. to achieve this organizational goal, all factors that influence stress must be correctly identified and measured (kamalakumati & ambika, in okeke et al., 2016). one of the factors that can influence it is work skills, namely the ability to do a job in practice through special knowledge, analytical skills in specialization, and facilities in the use of tools and techniques from special disciplines, which are reflected through communication, sensitive to environmental changes, fostering relationships interpersonal, can manage work, can build networks (fitriati & hermiati, 2010). if the work skills of the construction service sector workforce can be well conditioned through several indicators that affect it as such, it will affect the reduction in stress levels, namely the adjustment response as a manifestation of the mental, physical, emotional, and spiritual inability of the person to face external threats, with indicators: subjective, behavioral, cognitive, physiological, and organizational (gibson et al., 2012). the results of florentine and prabowo's (2014) research also showed the effect of work skills on stress. thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that work skills have a negative and significant effect on stress by setting employment performance of the construction service sector in construction service companies in jabodetabek. the results of this study indicate that employability has a negative and significant effect on work productivity. employability becomes important in a company, because employability reflects an individual's capability to maintain, maintain and develop competencies and qualifications that can increase labor market participation in a sustainable or career potential ,, which is reflected in specific work skills, proactive, adaptability, balance between organizational and personal interests (peters & lam, 2015). a construction service sector worker who has a good employability in accordance with the requirements of the company's desires, then it will affect the low level of stress as an adjustment response as a manifestation of mental, physical, emotional, and spiritual inability in dealing with threats from outside himself, with indicators: subjective, behavioral, cognitive, physiological, and organizational (gibson et al., 2012). the results of viotti sara, guidetti, gloria, loera, barbara, martini, mara, sottimano, ilaria, converso, daniela (2017) also prove the effect of employability on stress. thus, nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 11 the findings of this study are appropriate, supporting and confirming the results of previous studies that employability has a negative and significant effect on stress by setting the employment of the construction service sector in construction service companies in jabodetabek. the results of this study indicate that occupational safety has a positive and significant effect on work productivity with stress mediation. this on the one hand shows that occupational safety has an effect on stress and on the other hand stress has an effect on work productivity. this condition causes the indirect effect of occupational safety on work productivity by stress mediation. that is, efforts to prevent any act or condition of a person who is not safe that can result in accidents both caused by oneself and the work environment as measured by indicators: engineering, enforcement, education, empowerment and involvement (lutchman et al., 2012) can be conditioned by well, then it will have an impact on reducing stress levels and then having implications on increasing work productivity. the results of previous studies also prove that occupational safety affects work productivity (prayitno, palupib, & khoironc, 2015; has, & susanty, 2016; shirali, savari, ahmadiangali, & salehi, 2016), stress influences work productivity (petreanua , iordachea, & seracin, 2013; donald, taylor, & johnson, 2005), and perceptions of ohs have a negative relationship with work stress (susetyo & ratnaningsih, 2016). thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that occupational safety has an effect on work productivity by mediating stress with the setting of work in the construction service sector in construction service companies in jabodetabek. the results of this study indicate that work skills have a positive and significant effect on work productivity with stress mediation. this on the one hand shows work skills affect stress and on the other hand stress affects work productivity. this causes the indirect effect of work skills on work productivity by stress mediation. that is, when work skills as the ability to do a job in practice through special knowledge, analytical skills in specialization, and facilities in the use of tools and techniques from special disciplines, which are reflected through communication, sensitive to environmental changes, fostering interpersonal relationships, can regulate work (fitriati & hermiati, 2010), conditioned well then it will have an impact on reducing stress levels and then having implications on increasing work productivity. the results of previous studies also show that work skills affect work productivity (webber, ser, & goussak, 2015), stress affects work productivity (petreanua, iordachea, & seracin, 2013; donald, taylor, & johnson, 2005), and work skills against stress (florentine & prabowo, 2014). thus, the findings of this study are appropriate, supporting and confirming the results of previous studies that work skills influence work productivity by mediating stress with the setting of work in the construction service sector in construction service companies in jabodetabek. the results of this study indicate that employability has a positive and significant effect on work productivity with stress mediation. this shows on the one hand employability affects stress and on the other hand stress affects work productivity. this condition causes the indirect effect of employability on work productivity with stress mediation. that is, when employability is the capability of individuals to maintain, maintain and develop competencies and qualifications that can increase labor market participation in a sustainable or career potential, which is reflected in specific work skills, proactive, adaptability, balance between organizational and personal interests (peters & lam , 2015) can be conditioned well, then it will have an impact on reducing stress levels and then having implications on increasing work productivity. the results of previous studies also show that employability affects work productivity (ybemaa, nurhani., wibowo., santoso, b. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 12 vuurenb, & damd, 2017), stress affects work productivity (petreanua, iordachea, & seracin, 2013; donald, taylor, & johnson, 2005), and employability against stress (viotti sara, guidetti, gloria, loera, barbara, martini, mara, sottimano, ilaria, converso, & daniela, 2017). thus, the findings of this study are appropriate, support and confirm the results of previous studies that employability affects work productivity by stress mediation with the setting of employment services in the construction service sector in construction service companies in jabodetabek. overall results of this study indicate that occupational safety, work skills and employability affect work productivity with stress mediation. these findings are consistent and consistent and confirm the results of previous studies that occupational safety affects work productivity (prayitno, palupib, & khoironc, 2015); has, & susanty, 2016); shirali, savari, ahmadiangali, & salehi, 2016), work skills affect work productivity (webber, ser, & goussak, 2015), employability affects work productivity (ybemaa, vuurenb, & damd, 2017), stress influences work productivity (petreanua, iordachea, & seracin, 2013; donald, taylor, & johnson, 2005), occupational safety has an effect on stress (susetyo & ratnaningsih, 2016), work skills have an effect on stress (florentine & prabowo, 2014), and employability has an effect on stress (viotti sara, guidetti, gloria, loera, barbara, martini, mara, sottimano, ilaria, converso, & daniela, 2017). however, compared to the results of previous studies, the findings of this study have a number of differences that represent the novelty element (novelty) of this study. first, the model. the research model on the effect of occupational safety, work skills and employability on work productivity with stress mediation is proven to be fit and significant for all its causal influences, both direct and indirect, so that new findings are different from the results of previous studies that are used as a reference this research. in this context, the results of this study constitute the development of models from previous relevant studies. second, location. this research was conducted in indonesia, by taking the object of research in the construction service sector in greater jakarta. third, time. this research was conducted in 2019, so it has a different time dimension compared to previous studies. with these three different powers, the results of this study have novelty especially models of the effect of occupational safety, work skills and employability on work productivity with stress mediation which theoretically can enrich research and literature in the field of management, especially human resource management, and practically can be relied upon as a model for improving work productivity through improving occupational safety, work skills, employability and reducing stress. conclusions occupational safety, work skills, employablity and stress have a direct effect on work productivity. this indicates that improvements in occupational safety, work skills and employability and good stress management can increase work productivity. occupational safety, work skills and employablity directly influence stress. this indicates that improvements in occupational safety, work skills and employability can reduce stress. occupational safety, work skills and employablity have an indirect effect on work productivity with stress mediation. this indicates that occupational safety, work skills and employability with mediated stress reduction can encourage increased work productivity. that means that improvements in occupational safety, work skills and employablity supported by reduced stress can increase work productivity. nurhani., wibowo., santoso, b. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (1-15)  the effect of occupational safety, work skills, and employability on stress and implications on the productivity of employment construction service workers.  https://doi.org/10.21009/jobbe.004.1.01 http://www.tandfonline.com/loi/rijh20 43 abstract the purpose of the study is to analyze the influences of transformational leadership, power distance and followership on the capability of officers' decision making in kostrad (the army strategic command). the research method used is the survey method which is taken from 293 respondents and associative research explanations using the quantitative research. the writer uses path analysis as the data analysis techniques. the results of the study shows that (1) transformational leadership has a direct positive effect on decision making capabilities, (2) power distance has a direct positive effect on decision making capabilities, (3) followership has a direct positive effect on decision making capabilities, (4) transformational leadership has a direct positive on followership, (5) power distance has a direct positive effect on followership, (6) transformational leadership has a direct positive effect on power distance, (7) transformational leadership has an positive indirect effect on decision making capabilitry throuh power distance, (8) transformational leadership has a positive indirect effect on decision making capabilities through followership. (9) power distance has a positive indirect effect on decision making capabilities through followership. these findings are important because they can be used in the effort for strengthening the capabilities of decision making of the officers in kostrad. keywords: transformational leadership, power distance, followership, decision making ability of kostrad officers. received: 5 february 2020 ; accepted: 21 february 2020 ; publish; june 2020. how to cite: amin, b., hamidah., & gunawan, k. (2020). the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad. journal of business and behavioural entrepreneurship, 4(1), 43-61. https://doi.org/10.21009/jobbe.004.1.04 the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad burhanudin amin universitas negeri jakarta email: burhanudinamin_im16s3@mahasiswa.unj.ac.id hamidah universitas negeri jakarta email: hamidah@unj.ac.id kazan gunawan universitas negeri jakarta email: kazangunawan@yahoo.com 44 introduction in accordance to law no. 34 of 2004 concerning about the indonesian armed forces which explains that the tni plays an important role and as an instrument of the state in the field of defense by carrying out tasks based on state policy and political decisions. therefore, the main task of the tni is to uphold the national sovereignty, maintain the territorial integrity of the unitary state of the republic of indonesia based on pancasila and the 1945 constitution, and protect the entire nation to all of indonesia's blood spills from threats and disturbances to the integrity of the state and nation. furthermore, the tni as a national defense functions such as: (1) an antidote to any form of military threat and armed threats from outside and within the country against sovereignty, territorial integrity, and national security, (2) an action against any form of threat and (3) the recovery of state security conditions that are disturbed by turmoil security. the army strategic command (kostrad), which is part of the army, has the main task of organizing the omp and or omsp in order to support the basic tasks of the indonesian army. management is the science associated with an organization, especially in achieving organizational goals under the certain conditions. for achieving that goal, the organization must behave as effectively and efficiently as possible by carrying out the functions of planning, organization, implementation and supervision. the implementation of management in the country defense is called the defense management. according to supriyatno, it is explained that defense management is a process of managing national resources into the potential resources, fostering strength / ability to use them effectively and efficiently to enhance national defense, (supriyatno, 2014). a leader in a national defense organization is indeed very necessary. according to yukl, it is a process to influence followers (montgomery, 2011). leaders have various types of leadership based on the type of leader who carries out an organization. one of them is transformational leadership, in which the perspective is continually being expanded. transformational leadership is a picture of charismatic and inspirational leaders. the leader intellectually stimulates all followers thereby promoting rationality and problem solving skills. the leader also provides individual consideration to followers and expects to attend and provide the growth and development of an organization. there are a number of theoretical statements that show that transformational leadership increases the influence of organizational behavior created by these leaders to followers. at this time, when the indonesian armed forces (tni) leaders are in a confronted condition which is not fighting, the current conditions of providing organizational change demands to continue to keep up with the changing times. the organizational change requires a leader to be able to transform, but a leader who has a decision making must have a distance power, it is a power distribution meaning according to kirkman et al. , chen, farh, chen, & lowe, 2009). according to lee, leaders usually understand the right to allocate the resources, rewards and give punishment. with this condition, subordinates must be more sensitive. the mismatches power must be careful when leaders interact with superiors, (lee choong y, 2012). according to bochner and hesketh, leaders with high power distance orientation are more task-oriented and less people-oriented than leaders with lower power orientation, (bochner & hesketh, 1994). thus, according to madlock, the superior-subordinate relationship is limited to their daily work, which is caused a lack of outside communication. so, leaders with a low power orientation can emphasize shared equality, but ignore the power differences, which is good for active supervisor-subordinate communication and have good relations. as a result, subordinates will not worry about the potential negative effects derived from seeking help from their superiors, (madlock, 2012). in addition to a leader who has a distance power, the condition of the organization in the tni that does not have a battle has an impact on leadership style that can affect to followership. amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 45 van vugt, hogan, and kaiser describe leadership and followers develop to facilitate the ability of a leader to influence followers, it continues to develop and to serve at least three adaptive functions that can be known, such as directing group action, mediating conflict within groups, and managing competition between groups. they further suggest that the mechanism of followership leader is evaluated and asked to help individuals detect a leader's trust and to assess the benefits of following the leader or not. leadership followers have a tendency to distrust the leader, so that every decision making strategic always follows the trust of others. it gives the impact of how the types of followership leader in decision making, (vugt, hogan, & kaiser., n.d.). the officers’ capabilities to make apt decision is needed during war as well as not war era. due to the fog of war and battlefield situations, apt decision have to be made as quickly as possible. during the not war era, where the strategic environment is volatile, uncertain, complex and ambiguous, the high ability of the officers to make apt decisions is also imperative. during this era, especially in the field of human resource management, the decision may not affect instanly, but in the long run the effect will be tremendous. literature review the meaning of ability according to robbins and judge means that the capacity of the individual to perform various tasks in a job, (robbins & judge, 2008a). while the meaning of ability according to kreitner and kinicki is the broad characteristics and stable characteristics of responsibility at the maximum level of achievement which is contrary with the ability to physically and mentally work (kreitner & kinicki, 2014). decision making is always related to a problem or difficulty. through a decision and its application, people expect that something will be achieved to resolve the problem or the conflict. literally, decision making meaning according to terry is "cutting” (deciding or practically reaching a conclusion). then, formally the meaning of decision making can be defined as follows: "decision making is the selection based on criteria from two or more possible alternatives" ("as a choice based on certain criteria regarding to certain behavioral alternatives rather than two or more alternatives”) (terry, 2006a). terry explains the basics of decision making that can be applied as follows: (1) intuition is a decision made based on intuition or feelings that are more subjective, which means it is easily subjected to suggestion, outside influences, and other mental factors. (2) experience, in this case, experience can be indeed used as a guide in solving problems. (3) facts, decisions based on a number of facts, data or information that is sufficient and indeed a good and solid decision. (4) authority, decisions based on more authority which will lead to routine nature. (5) rational, rational decisions relating to usability, (terry, 2006a). thus, the basics needed in decision making are intuition, experience, facts, authority and rational. according to robbins and judge transformational leadership is leadership that inspires followers to put aside their personal interests and has an extraordinary ability to influence (robbins & judge, 2008b). thus, transformational leadership can inspire members or followers. furthermore, the characteristics of transformational leadership according to bass in robbins and judge are: (1) the ideal influence: giving vision and mission, instilling pride, and gaining respect and trust, (2) inspirational motivation: high expectations communication, such as using symbols to focus efforts and stating important goals simply. (3) intellectual stimulation: increasing intelligence, rationality and careful problem solving and (4) individualized consideration: giving personal attention, such as treating each employee individually, training and giving advice, (bass, 2008). transformational leadership has exceptional and impressive advantages with high productivity and greater employee’s satisfaction and service. according to bass's formulaamin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 46 tion in yukl, said that the characteristics of transformational leadership are, (1) ideal influence (charisma), such as giving vision and mission, instilling pride, gaining trust, (2) inspiration, such as communicating high expectations using symbols and focus to efforts, expressing important purposes in simple ways, (3) intellectual stimulation, such as promoting intelligence, rationality and careful problem solving, (4) individual considerations, such as giving personal attention, treating each employee individually, training and advising (bass, 2007). based on the expert opinion above, it can be concluded that transformational leadership is leadership that can inspire followers in achieving goals. transformational leader characteristics include that ideal influence, such as inspirational motivation, intellectual stimulation and individualized consideration. furthermore, the meaning of power distance according to hofstede et.al (2010) is the level of acceptance of less powerful institutional members and organizations in a country for expecting and receiving power to be distributed unevenly. one dimension of national culture (from small to large). thus, power distance can be defined as the level of existence of institutions and organizations members that are less strong in a country by expecting and receiving unevenly power distribution. institutions are basic elements of society, such as families, schools and communities. organization is a place where people work. (hofstede, hostede., & michael minkov, 2010). the cultural dimension according to hofstede which supports the low power distance (small power distance) expects and accepts the consultative or democratic power relations. people relate to each other regardless of their formality position. subordinates feel more comfortable and demand the right to contribute the decision making. such as in countries with large power distances, they tend to use power relations that are more autocratic and paternalistic. subordinates recognize the power of others only based on which they are in a formal structure or a certain hierarchical position. thus, the power distance index which is defined by hofstede does not reflect to objective differences in power distribution, but rather to the way people perceive difference power. (hofstede, 2010) based on the description above, it can be concluded that power distance is the level of members who can be able to receive unequal power distribution in an organization with dimensions, which means (1) that support the low power distance (small power distance) for expecting and accepting power relations more consultatively or democratically and (2) by high power distances which tend to use more autocratic power relations. although gardner and others have recognized the importance of leaders and followers who are working together in order to realize the vision, the literature usually pays little attention to the concept of followership, and there is no "theory" of followership. one of the initial discussions of followership was delivered by (pittman, rosenbach, potter), which outlined four types, namely: a. subordinates: similar like "sheep", do what they told, but they are not actively involved. b. contributors: "yes" people, supportive, engaging, doing good work, but they do not have a willing to challenge ideas from leaders. c. politicians: willing to give honest and supportive feedback to leaders, but they may neglect work and have poor performance levels. d. partners: high level involved, performed at a high level, promoted positive relationships in groups, seen as 'leaders in waiting,' (gardner, 2007). so, the types of followership among them are subordinates, contributors, politicians and partners. based on the description above, it can be concluded that followership is an act of someone who has a subordinate role and cooperates with the leader in supporting organizational goals which have several types of followers including such as subordinates, contributors, politicians and partners. amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 47 the influence of those independent variables, i.e. transformational leadership, power distance, and followership respectively on decision making ability as an independent variable and also the influence of transformational leadership and power distance respectively on followership are theorized by some scholars. such as decision making ability is influenced positively by transformational leadership (yukl, 2007), power distance (hofstede, 2010), and followership (macgregor burn, 2008) respectively. followership is influenced positively by transformational leadership (terry) and power distance (seng men liu and jian qiau liau) respectively. research method the applied research method uses is a survey method from 293 respondents combined with the associative research explanations through the quantitative research. the collecting data technique is using the questionnaires the primary data and observational studies and documentation from the kostrad as the secondary data. first, the writer conducts the direct observations research in the kostrad environment in java. second, the writer interviews the informants who are related to the research variables. third, the writer spread the research questionnaire to respondents to obtain results. furthermore, the writer uses the path analysis as the data analysis technique. the lattice instruments of decision making ability are namely: table 1. the lattice instruments of decision making ability source: george r. terry (2006) the lattice instruments of transformational leading power distance and followership as follows: no. dimension indicator questioner lists before after invalid 1. intuition suggestion 1,2 1,2 outside influence 3,4 3,4 spiritual factors 5,6 5,6 2. experience background 7,8 7,8 practical experience 9,10 9,10 3. fact data report 11,12 11,12 information 13,14 13,14 4. authority regular authority 15,16 15,16 practical authority 17,18 17,18 5. rational efficiency 19,20 19,20 objective 21,22 21 22 total 22 21 1 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 48 table 2. the lattice instruments of transformational leading power distance and followership table 3. the lattice instruments of power distance variable source : geert hofstede (2010) no. dimension indicator questioner lists before after invalid 1. ideal influence vision and mision 1,2 1,2 (charisma) proud 3,4 3,4 belief 5,6 5,6 2. inspiration high expectation 7,8 7,8 struggle 9,10 9,10 simple intention 11,12 11,12 3. intelectual cleverness 13,14 13,14 stimulation rationality 15,16 15,16 problem solving 17,18 17,18 4. individual consideration private attention train advise 19,20 21,22 23,24 19,20 21,22 23,24 0 no. dimension indicator questioner lists before after invalid 1. small use of power 1 1 power the same treatment 2 2 distance disrespect 3 3 children's education 4 4 roles inequality 5 5 consultation 6 6 majority vote 7 7 rare corruption 8 8 income distribution 9 9 religious emphasis 10 10 2. large legitimacy power 11 11 power teaching obedience 12 12 distance respect 13 13 teacher education 14 14 existential inequality 15 15 command notification 16 16 revolution 17 17 corruption frequent 18 18 inequality 19 19 leader's hierarchy 20 20 total 20 20 0 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 49 table 4. the lattice instruments of followership variable the validity and reliability test results for the decision making variable capability explained that to determine the validity of the questionnaire items, a validity test was carried out using the item scores. the total score of items or r-counts tested by comparing r-table at the real level = 0.05. based on the calculation result, it can be seen that there is 1 (one) item that is declared invalid. so, it must be dropped out, such as the item number 22. so, it is only 21 statements from the decision making ability variable used are valid to encompass the research data. after making the items in the questionnaire statement, it is declared valid. based on the calculation results, the reliability of the decision making ability instrument is 0.910. it shows that the decision making capability instrument is reliable and has high reliability. validity and reliability test results for transformational leadership variables. to find out the validity of the questionnaire items, the writer use a validity test by using the scores item with the total or r-counts which is tested by comparing r-table at the real level = 0.05. based on the calculation results, it appears that 24 items of the transformational leadership variable are valid and can be used to capture the data research. the reliability test calculation of the questionnaire statement items is made after the items of the questionnaire statement are declared valid. based on the calculation results, the reliability of the transformational leadership instrument is 0.955. this shows that the transformational ability instrument is reliable and has high reliability. validity and reliability test results for power distance variables. to find out the validity of the questionnaire items, a validity test is done using item scores with the total score of items or r-counts is tested by comparing r-table at the real level = 0.05. based on the calculation results, it appears that all items statement of power distance as many as 20 items. it turned out into be valid and can be used to capture research data. based on the calculation results, the reliability of the transformational leadership instrument is 0.935. this shows that the power instrument is reliable and has a high reliability. validity and reliability test results for followership variables. to find out the validity of the questionnaire items, a validity test is done using the item scores with the no. dimension indicator questioner lists before after invalid 1. subordinate follow 1,2 1,2 know 3,4 3,4 inactive 5,6 5,6 2. contributor supportive 7,8 7,8 active 9,10 9,10 do not oppose 11,12 11,12 3. politician feedback 13,14 13,14 support ignore 15,16 17,18 15,16 18 17 4. partners involvement performance 19,20 21,22 19,20 21,22 21,22 total 22 19 3 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 50 total score of items or r-counts is tested by comparing r-table at the real level = 0.05. based on the calculation results, it appears that there are 3 (three) items that are declared invalid. so, they must be dropped out, namely for the statement number 17, 20 and 21. so, that is only 19 statement items from the followership variable used are valid for capturing the data research. calculation of the reliability test items questionnaire statement is made after the items statement questionnaire declared valid. based on the calculation results, the reliability of the followership instrument is 0.911. it shows that the decision making capability instrument is reliable and has high reliability. figure 1. constellation research method schemes based on the description and constellation research scheme model above, the hypotheses research proposed, namely: h1: transformational leadership has a direct positive effect on the kostrad officers decision making abilities. h2: power distance has a direct negative effect on the kostrad officers decisionmaking ability. h3: followership has a direct positive effect on the kostrad officers decision-making ability. h4: transformational leadership has a direct positive effect on kostrad officers followership. h5: power distance has a direct negative effect on kostrad officers followership. h6: transformational leadership has a direct positive effect on kostrad officers power distance. h7: transformational leadership has a positive direct effect on the kostrad officers decision making ability through power distance. h8: transformational leadership has a positive indirect effect on the kostrad officers decision making ability through followership. h9: power distance has a positive indirect effect on the kostrad officers decision making ability through followership. based on the results of data processing, the results of the data analysis requirements are obtained as follows: amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 51 tabel 5. data analysis requirement test result based on the calculation results obtained, the highest l-value or l-hitung <ltable (0.0760), then the relationship model between variables comes from the normal distribution population. the calculation result, shows that f is calculated by a significance < = 0.05. thus, it can be concluded that the direction coefficient of regression from each model of relationship between variables is linear and very significant, so that the requirements of data analysis can produce validity in the research model. results and discussions 1. descriptive statistics based on the results of the calculation of validity for the decision making ability variable obtained 21 items that were declared valid. the lowest score is 69 and the highest score is 105, the range / range of the score is 36. the average score of decision making ability is 89.8942, modes is 105, median is 90.00, standard deviation or standard deviation is 9,46799 and the variance is 89,643. the results of the calculation of validity for the transformational leadership variable obtained 24 items that were declared valid. the lowest score is 62 and the highest score is 120, the range / range of the score is 58. the average value of the transformational leadership score is 98.22218, modes is 120, the median is 97.00, the standard deviation is 13.66560 and variance is 186,749. the results of the calculation of validity for the power distance variable obtained 20 items that were declared valid. the lowest score is 65 and the highest score is 100, the range / range of the score is 35. the average score of power distance score is 85.9727, modes is 80, median is 85.00, standard deviation or standard deviation is 8,38741 and the variance of 70,349. the results of the calculation of validity for the followership variable found 19 items that were declared valid. the lowest score is 57 and the highest score is 98, then range of the score is 41. the average score of followership score is 80.4232, modes is 80, median is 80.00, standard deviation is 8.90504 and variance is 79,300. 2. path coefficient results many previous studies proved empirically the positive effect of transformational leadership, power distance, and followership respectively on decision making ability such as the research conducted by riaz and haque which stated there is a positive effect of transformational leadership on decision making ability (2016) as well as the result of research conducted by stump, troitschanskaia, and mater (2016). the positive effect of power distance on decision making was stated by khatri (2009), and also by khairullah and khairullah (2013) as the result of their research. ejimabo (2015) stated that followership has a positive effect on decision making ability greisser (2007) explained that transformational leadership affect positively on followvariable normality linearity relation liliefors.sig conclusion anova.sig conclusion y atas x1 0,0745 < 0,0760 normal 0,000 < 0,05 linear y atas x2 0,0745 < 0,0760 normal 0,000 < 0,05 linear y atas x3 0,0745 < 0,0760 normal 0,000 < 0,05 linear x2 atas x1 0,0557 < 0,0760 normal 0,000 < 0,05 linear x2 atas x3 0,0623 < 0,0760 normal 0,000 < 0,05 linear x3 atas x1 0,0557 < 0,0760 normal 0,000 < 0,05 linear amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 52 ership, while cianci et al. (2014) proved empirically this effect on their research. similar effect of power distance on followership also proved empirically by elmazi (2012). the positive effect of transformational leadership on power distance was stated by ismayilov (2011) as a result of their research. in line with those, the author found similar findings as a result of the research conducted in kostrad as discussed below. a correlation matrix between research variables is needed in the path analysis structure model. table 6. correlation matrix of research variables based on table 6 above, it shows that all correlation coefficients between variables are positive. this shows that there is a positive relationship between variables contained in the structural model with significant namely α = 0.01. in addition, the results of the correlation coefficient can obtain 6 (six) direct effects and 3 (three) indirect effects in the path analysis coefficient. t-test results for the path coefficient of the substructural model 1 is the direct effect of transformational leadership, power distance and followership on decision making capabilities which can be presented in table 7 as follows: table 7. t-test results and path structural model substructures 1 direct effects of transformational leadership, power distance and followership on decision making capabilities based on table 7, it shows that the results of the transformational leadership path coefficient on the decision making capability are obtained py1= 0.240, then the coefficient of path power distance to the decision making ability is obtained py2= 0.112, then the results of the calculation of the followership path coefficient on the decision making capability obtained py3= 0.522. thus, the path diagram for the direct influence of transformational leadership, power distance and followership on decision making capabilities is as follows: no. variables correlation result conclusion substruktural model 1 1 x1–y 0,504 significant 2 x2–y 0,514 significant 3 x3–y 0,683 significant substruktural model 2 4 x1–x3 0,411 significant 5 x2–x3 0,564 significant substruktural model 1 6 x1–x2 0,449 positive and significant model unstandardized coefficients standardized t sig. coefficients b std. error beta (constant) 18,138 4,264 4,254 ,000 1 x1 ,166 ,032 ,240 5,217 ,000 x2 ,126 ,057 ,112 2,198 ,029 x3 ,555 ,053 ,522 10,485 ,000 a. dependent variable: y amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 53 figure 2. path coefficient direct effect of transformational leadership, power distance and followership on decision making capabilities t-test results for the path coefficient of the substructural model 2 is the direct influence of transformational leadership and power distance on followership that can be presented in table 8 as follows: table 8. t-test results for substructural model coefficients 2 direct effects of transformational leadership and power distance towards followership based on table 8 above, it shows that the results of the path coefficient of transformational leadership to followership is p31 = 0.198 and the power distance path coefficient to followership is p32 = 0.476. thus, the path diagram for the direct influence of transformational leadership and power distance on followership is as follows: figure 3. path coefficient direct effect of transformational leadership and power distance on followership t-test results for the path coefficient for substructural model 3, namely the direct influence of transformational leadership on power improvement can be presented in table 9 as follows: x1 x2 x3 y ρy1:0.240 ρy2:0.112 ρy30.522 model unstandardized coefficients standardized t sig. coefficients b std. error beta (constant) 24,341 4,511 5,396 ,000 1 x1 ,129 ,035 ,198 3,732 ,000 x2 ,505 ,056 ,476 8,981 ,000 x1 x2 ρ310.198 ρy30.476 x3 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 54 table 9. t-test results for substructural model coefficients 3 direct effects of transformational leadership and power distance towards followership based on table 9 above, it shows that the results of the calculation of the path coefficient of transformational leadership to power distribution obtained p21 = 0.449. thus, the path diagram of the direct influence of transformational leadership on power distance is as follows: figure 4. path coefficient direct effect direct effect transformational leadership towards power distance based on table 9 above, the direct or indirect effects can be seen in the table as follows: table 10. direct influence, indirect influence and total influence against the decision making capability based on table 10 above, it shows that the path coefficient of the indirect influence of transformational leadership on decision making capability through power distance variable mediation is y21 = (0.449)(0.112) = 0.050, then the path coefficient of indirect influence on transformational leadership on decision capability through mediation of followership variables is y31 = (0.198)(0.522) = 0.103. furthermore, the path coefficient of the indirect influence of power distance on decision making capability through mediation of the followership variable is y32 = (0.476)(0.522) = 0,248. thus, each path diagram can be described as follows: model unstandardized coefficients standardized t sig. coefficients b std. error beta 1 (constant) 58,935 3,189 18,481 ,000 x1 ,275 ,032 ,449 8,560 ,000 x1 x2 ρy20.449 variable path direct indirect influence total transformational power correlation coefficient influence followership influence leadership distance transformational 0,240 0,0121 0,0515 leadership 0,0576 0,1212 power distance 0,112 0,0125 0,0121 0,0330 0,0576 followership 0,522 0,2725 0,0515 0,0330 0,3569 total influence 0,5357 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 55 figure 5. the path coefficient of the indirect effect of transformational leadership on decision making abilities through power distance variable mediation figure 6. the path coefficient of the indirect effect of transformational leadership on decision making abilities through mediation followership variables figure 7. path coefficient indirect effect of power distance against the capability of decision making through mediation followership variables the complete model of the research can be seen in picture-8. figure 8. the complete model of the research x1 y x2 a b c ρy210.050 x1 y x3 a b c ρy31: 0.103 x2 y x3 a b c ρy32: 0.248 transformational leadership (x1) decision making capability (y) followership (x3) power distance (x2) ρ: 0.240 ρ: 0.522 ρ: 0.112 ρ: 0.198 ρ: 0.476 ρ: 0.449 amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 56 hypothesis testing a. hypothesis-1 (h1) based on table 7 shows the results of t-hitung = 5.217 while the value = 1.960 (α = 0.05), because t-hitung> t-table (α = 0.05), and py1 = 0.240> 0 so h1 is not rejected, which means that transformational leadership has a positive and significant direct effect on decision making capabilities. b. hypothesis-2 (h2) based on table 7 shows the results of t-hitung = 2.198 while the value = 1.960 (α = 0.05), because t-hitung> t-table (α = 0.05), and py2 = 0.112> 0 so h2is not rejected, which means that power distance has a positive and significant direct effect on decision making capabilities. c. hypothesis-3 (h3) based on table 7 shows the results of t-hitung = 10.485 while the value = 1.960 (α = 0.05), because t-hitung> t-table (α = 0.05), and py3 = 0.522> 0 so h3 is not rejected, which means that followership has a positive and significant direct effect on decision making capability. d. hypothesis-4 (h4) based on table 8 shows that t-hitung = 3,732 while value = 1,960 (α = 0.05), because t-hitung> t-table (α = 0.05), and p13 = 0.198> 0 so h4 is not rejected, which means that transformational leadership has a positive and significant direct effect on followership . e. hypothesis-5 (h5) based on table 8 shows that t-hitung = 8.981 while value = 1.960 (α = 0.05), because t -hitung> t-table (α = 0.05), and p23 = 0.476> 0 so h5 is not rejected, which means that power distance has a positive and significant direct effect towards followership. f. hypothesis-6 (h6) based on table 9 shows that t-hitung = 8.560 while value = 1.960 (α = 0.05), because t -hitung> t-table (α = 0.05), and p21 = 0.321> 0 so h6 is not rejected, which means that transformational leadership has a positive and significant direct effect against power distance. g. hypothesis-7 (h7) based on table 7 and table 9 which is used the sobel test for the hypothesis of indirect effect using the value of z, it can be seen as follows: z = where: a: unstandardized regression coefficient of x2 to x1. b: unstandardized regression coefficient of y to x2. sea: standard error of estimation of the regression of x2 to x1. seb: standard error of estimation of the regression of y to x2. amin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 57 z = = 2,140 the value of z > 1,96 so h7 is not rejected, which means that transformational leadership has a positive indirect effect on decision making ability through power distance. h. hipotesis-8 (h8) based on table 7 and table 9 which is used the sobel test for the hypothesis of indirect effect using the value of z, it can be seen as follows: z = where: a: unstandardized regression coefficient of x2 to x1. b: unstandardized regression coefficient of y to x2. sea: standard error of estimation of the regression of x2 to x1. seb: standard error of estimation of the regression of y to x2. z = = 3,476 the value of z > 1,96 so h8 is not rejected, which means that transformational leadership has a positive indirect effect on decision making ability through followership. i. hipotesis-9 (h9) based on table 7 and table 9 which is used the sobel test for the hypothesis of indirect effect using the value of z, it can be seen as follows: z = where: a: unstandardized regression coefficient of x3 to x2. b: unstandardized regression coefficient of y to x3. sea: standard error of estimation of the regression of x3 to x2. seb: standard error of estimation of the regression of y to x3. z = = 6,833 the value of z > 1,96 so h9 is not rejected, which means that power distance has a positive indirect effect on decision making ability through followership. conclusion based on the results of the research and discussion above, we can conclude that (1) transformational leadership has a direct positive effect on decision making capability. it means that effective transformational leadership will lead to an increase in kostrad officer decision-making abilities. (2) power distance has a direct positive effect on decision making capability. this means that high power distance will lead to an increase of kostrad officers decision-making ability. (3) followership has a direct positive effect on decision making capability. it means that high followership will lead to an increase of the kostrad officers decision-making ability. (4) transformational leadership has a direct positive effect on followership. it means that effective transformational leadership will lead to an increase of kostrad officer followership. (5) power distance has a direct positive effect on followership. it means that high power distance will cause an increase of kostrad officer followership. (6) transformational leadership has a direct positive effect on power distance. it means that effecamin, b., hamidah., & gunawan, k. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 58 tive transformational leadership will lead to an increase of power distance. (7) transformational leadership has a positive indirect effect on decision making capability through the mediation of power distance variables. it means that effective transformational leadership will lead to an increase on decision making capability through the mediation of kostrad officers power distance. (8) transformational leadership has a positive indirect effect on decision making capability through mediation of followership variables. it means that effective transformational leadership will lead to an increase in decision making capability through mediation of the kostrad officer followership and (9) power distance has a positive indirect effect on decision making capability through mediation of followership variables. it means that high power distance will lead to an increase in decision making capability through mediation by the kostrad officer followership. recommendation referring to the conclusions, the following suggestions are given as follows (1) to improve decision making ability through transformational leadership. the kostrad officers should be able to apply the characteristics of transformational leadership in solving a problem by quickly seeking information that can support the resolution of the problem. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (43-61)  the influence of transformational leadership, power distance, and followership on the capability of decision making in kostrad.  https://doi.org/10.21009/jobbe.004.1.04 106 abstract this study was conduct to examine the effect of attributes coffee shop to customer satisfaction in indonesian coffee shop industry. furthermore, this study is also examined customer loyalty as consequences of customer satisfaction. five attributes of coffee shop were identified as having potential to be antecedent of customer satisfaction. the five attributes were: store atmosphere, employee attitude, it service, coffee quality, and price fairness. this study used online questionnaire which is adopted from the previous studies. the online questionnaires were used google form and shared through various social media platform. a total 851 respondents from 34 province in indonesia were involved but only 350 respondents were qualified. kmo factor analysis and regression analysis were performed to identify the validity of items and examine the relationship among variables. the results revealed that five of six hypothesized were statistically significant. coffee quality was recognized as attribute of coffee shop which is produce the highest effects to customer satisfaction. moreover, the relationship between customer satisfaction and customer loyalty was found positive. however, we found the it service variable is not significant. keywords: attributes, coffee shop, customer satisfaction, customer loyalty, store atmosphere, coffee quality received: 27 october 2020 ; accepted: 3 december 2020 ; publish; december 2020 how to cite: sasongko, f., et. al (2020). attributes of coffee shop as antecedent of customer satisfaction. journal of business and behavioural entrepreneurship, 4(2), 106-124. https://doi.org/10.21009/jobbe.004.2.09. attributes of coffee shop as antecedent of customer satisfaction febriyanto sasongko 15131830019@student.prasetiyamulya.ac.id ridwan darussalam 15131830030@student.prasetiyamulya.ac.id saga hayyu suyanto putra 15131830011@student.prasetiyamulya.ac.id sofian 15131830015@student.prasetiyamulya.ac.id tatang mustaqim 15131830020@student.prasetiyamulya.ac.id https://doi.org/10.21009/jobbe.004.2.01 107 introduction as seen today, there is a significant increase in coffee consumption patterns throughout the world. this is supported by the data of international coffee organization (“ico”, 2020), it shown the increasing global coffee consumption from 158,642, 162,555, 168,099 and 169,337 (in thousand 60-kg bags) for year 2016, 2017, 2018 and 2019, respectively, indicating its sustainable industrial growth in the future. indonesia, which is 4th rank of world coffee producer based on ico’s report issued on march 2020, is also experiencing similar positive trend regarding coffee consumption. this phenomenon become a new life style across generation and already affect the growth of number of coffee shop in indonesia. it continues to extend mostly in urban areas, as it can be observed from increasing number of coffee shop outlets peep out almost in every shopping centre, office complex, etc. customers tend to spend a significant amount of their budget on consuming coffee in coffee shops. this tendency occurs because the coffee shop can be used for multi-purposes. according to previous study by fisher et al, (2007), coffee shop can be used for studying, working, playing, etc. such new habit of customers in coffee consumption had significantly contribute to the growth of coffee industry itself. as the result of research conducted by toffin (2019), a coffee supplier machine, growth of number of coffee shop in indonesia reaches 16% every year. table below shows list of coffee shop in indonesia as of august 2019, for each brand and number of outlets. table 1: list of coffee shop in indonesia sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 brand first opening number of outlets anomali 2017 13 bakoel koffie 2001 2 bhumi kopi 2017 2 coffee bean 2001 108 coffee toffee 2006 100 common grounds 2013 8 djournal coffee 2013 21 dunkin 1985 200 excelso 1991 126 filosofi kopi 2015 3 first crack 2012 4 fore 2018 100 harvest 2004 66 janji jiwa 2018 500 jco donut & coffee 2005 273 kopi kecil 2016 6 kopi kenangan 2017 175 https://doi.org/10.21009/jobbe.004.2.01 108 source: toffin *) data above is as of august 2019, excluding coffee shop categorised as independent and mobile **) kopitiam is a kind of traditional coffee shop with chinese-style ***)this sign marks for independent coffee shop which has no chain technobusiness.id (2019) argued that the economic scale of coffee shop industry in indonesia was approximately rp 4,8 trillion a year at 2019 and it will increase three times in 2020 based on prediction giving by tempo (2019). ibis (2011) described the characteristic of coffee shop industry is unique, it has low entry barriers, competition considered as high level and intensive in labor employment. according to the industry characteristic, coffee shop owners and managements need a proper strategy both to keep their existing customers (retain) and if possible, get new customers. it such as providing convenient facilities, attractive menus, free internet facility, and good skilled human resources to serve consumer. based on such uniquity characteristic of this business domain, the coffee shop owners and managements shall to understand the market needs and wants in order to obtain continuously profits. to achieve such sustainable profits, the coffee shop owner needs to retain their existing customer and attracts new ones. according to jiang & rosenbloom (2005), high level of customer retention caused increasing in business profitability. but it is not easy as being seen, more competitor in an industry means more effort. the coffee shop needs to provide excellent attributes to meet customer values in order to create customer satisfaction. this is also happened in coffee shop industry, as we seen in previous table, as there are various coffee shop already operating in indonesia. therefore, owner of those coffee shops shall improve their business continuously in order to retain and, if possible, enhance their customer satisfaction. kopi soe 2017 150 kulo 2018 300 maxx coffee 2015 74 mccafe 2005 40 olala café 1990 16 ombe kofie 2015 6 segafredo zenneti 2002 3 starbucks 2002 421 tahta coffee 2019 7 tamamera 2013 13 the gade coffee and gold 2018 34 tuku 2014 7 upnormal coffee roaster 2016 20 warunk upnormal 2014 87 listed kopitiam in zomato **) 42 coffee shop owned by celebrity ***) 10 attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 109 this research analyzed five attributes that are predicted have positive effect to customer satisfaction in indonesian coffee shop industry. based on numbers of previous study in food and hospitality contexts conduct by lee et al (2018) and konuk (2018), this study examined store atmosphere, it service, employee attitude, coffee quality and price fairness as antecedent of customer satisfaction in coffee shop industry. moreover, another purpose of this study is to find out the correlation of customer satisfaction and customer loyalty. customer loyalty is described as the result of positive emotional experience that consistency felt by customers which is affected by physical attribute and perceived value of an experience, it is important to examined whether there is positive correlation between customer satisfaction and cutomer loyalty. when customer loyal to specific coffee shop, they tend to make repurchase toward that coffee shop (azimi, 2017). this research was conducted on coffee shop costumers in indonesia which consume their coffee through dine-in and usually spend 30 minutes or more in the coffee shop. the questionnaire was adopted from previous study conducted by lee at al (2018) and konuk (2019), used google form and shared through various social media to obtain respondents from all provinces in indonesia. literature review attributes of coffee shop this study examined five attributes as antecedents of customer satisfaction in coffee shop industry. the five attributes were: store atmosphere, employee attitude, information technology (it) service, coffee quality and price fairness. the first attribute that hypothesized has positive correlation with customer satisfaction is store atmosphere. the previous study has found that a comfortable feeling from customers towards the store atmosphere tend to create satisfaction (tripathi & dave, 2014; han & hwang, 2015; han & hyun, 2017). moreover, a study conducted by han and jeong (2013) found that correlation of store atmosphere on customer satisfaction is positive. furthermore, heung and gu (2012) found that there is also a positive relationship between the store atmosphere of a cafe or restaurant with customer satisfaction. when customers feel comfortable with the cafe or restaurant atmosphere, it will increase customer satisfaction to a higher level (turhan, 2014). according to the literatures as described above, the first hypothesis is proposed: h1: store atmosphere has positive correlation with customer satisfaction. employee attitude the second variable of this study is employee attitude, the attitude of coffee shop’s employees are one of crucial factor in coffee shop industry, it is the first thing will be noticed by customers when they evaluate the overall service performance of coffee shop (lee et al, 2018). a friendly greetings or kindly attitudes from employees are important factors in hospitality and restaurant service (liu & jang, 2009; wu & liang,2009; gazzoli et al, 2010; kang & hyun, 2012;; ryu et al., 2012; tsaur et al.,2015). moreover, kim & ok (2010) found that customer satisfaction was strongly related to the positive attitudes of employees. another result from hwang and ok (2013) found that interaction between customer and employee in restaurant industry produced customer satisfaction and behavioral intentions. according to the literatures attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 110 as described above, the following is hypothesized: h2: employee attitude has positive correlation with customer satisfaction. it service the information technology (it) service is described as the availability and performance of wireless internet service in the coffee shop provided to their customers. previous studies have found that free wireless internet service was a crucial factor to increase the service quality in restaurant industry (honack & waikar, 2017; brochado, rita, & margarido, 2016; bulut, demirbas, & ferhatosmanoglu, 2015; liu, 2009; efimov & whalley, 2004; yang & jun, 2002). cobanoglu et al. (2012) also found favorable responds of customer in a restaurant industry, were determined by several factors, one of them is the availability of wireless internet service. kim, park, and jeong (2004) in their previous study found that wireless internet service on customer satisfaction has a positive impact. another study conducted by lee et al. (2018) found that it service leads customer satisfaction to a higher level. according to the literatures as described above, the following is proposed as the third hypothesis: h3: it service has positive correlation with customer satisfaction. coffee quality a number of previous study conducted by namkung & jang (2007), chen&hu (2010), dorn et al (2016), and han & hyun (2017) shown that the most important factors in the food service business is food quality. the quality of food and beverage can affect the level of customers satisfaction (pimonsompong 2007). a study conducted by al-tit (2015) found that food and beverage quality affect customer satisfaction in a positive way. another study conducted by ha & jang (2010) which being done in an ethnic restaurant, also found that food quality has a positive correlation to customer satisfaction. similar studied in restaurant which had being done by tsaur et al. (2015) in a full-service one and also by han & hyun (2017) in a hotel one, found the same result that food quality is affecting customer satisfaction. last, lee et al (2018) in their study found that coffee quality is significantly affects customer satisfaction towards coffee shop. thus, this study hypothesizes: h4: coffee quality has positive correlation with customer satisfaction. price fairness zeithaml (1988, p. 10) described price as a number of sacrificed to gain product or service. price fairness is described as a consumer's judgment of whether the price offered by seller is reasonable, acceptable, or justifiable compared to the products or service accepted by customer (xia et al, 2004). price fairness is subjective judgments by customers of the price offered, whether the price is right or wrong based on product or service offered. once customer feels the price of product or service is fair, it will produce a high satisfaction of customer. existing studies have reported that there is positive effect of price fairness to customer satisfaction (martín-consuegra et al., 2007; jin et al., 2012; konuk, 2018; konuk, 2019). therefore, the following is proposed as fifth hypothesis: h5: price fairness has positive correlation with customer satisfaction. attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 111 customer satisfaction customer satisfaction has become one of the most important key constructs which is used to described customer behavior in recent days. based on expectationdisconfirmation theory argued by oliver (1980), satisfaction is described as a comparison conducted by a customer towards product or service with predetermined expectation they had before consuming the product or service. when customer' s expectations meet with product or service offered, satisfaction occurs and otherwise dissatisfaction will occur (namkung and jang, 2007). based on expectation disconfirmation theory, the increasing of customer satisfaction level can be affected by increasing the performance of perceived product or decreasing predetermined customer expectation. liljander and strandvik (1997)found that customer satisfaction is built by two components, cognitive and affective. cognitive component affected by logical and rational evaluation of the purchased product or service. otherwise, the affective component affected by emotions that occur during the acquisition and consumption of product or service had been purchased by customers (yu and dean, 2001). this study using both cognitive and affective components to measure customer satisfaction. customer loyalty lee et al. (2018) in their previous study have found that customer satisfaction leads to customer loyalty. when customer feels satisfy with performance of product or service offered, it is more likely to bring a positive behavioral respond from customer. previous studies found that customer loyalty is a significant output from customer satisfaction, as conducted by luo and homburg (2007); and also hu, kandampully, and juwaheer (2009). based on azimi (2017), when customers start having a commitment to make repeat purchased towards specific seller, it is more likely that the customer loyalty towards the seller had occur. based on thus study, the last hypothesis of this study is: h6: customer satisfaction has positive correlation with customer loyalty figure 1: theoretical framework of the study attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 112 research methods sampling and population in order to obtain valid data for this study, purposive sampling was chosen as a method of data sampling. etikan et al (2015) argued that the purposive sampling is chosen by researcher to obtain the specific information for their study. the respondents are selected based on their behavior in consuming coffee in coffee shop using the screening questions. the respondents were only they whom are the consumer of modern coffee shop in indonesia and preferred dine in and usually spend more than 30 minutes in coffee shop. data collection the study used online questionnaire using google form to collect the primary data. the online link to the questionnaire distributed through various social media to the respondents. the outcome was 851 completed questionnaires collected but only 380 can be used and classified as valid data for this study. measurement the questionnaire of this study was used adopted items from previous study conducted by lee et al (2018) and konuk (2019). three until four items were used per construct to ensure construct reliability. the questionnaire divided into 3 parts, first part contains the screening questions. the second part contains the main questions about variables used in this study and the last part contains demographic questions to profiling the respondents. five-point likert scale is used to measure the constructs in the questionnaire of this study. the likert scale ranging from ‘1(strongly disagree’ to “5—strongly agree”. table 2: seven constructs and items on the questionnaire construct item source store atmosphere the coffee shop has a comfortable atmosphere. lee et al. (2018) atmosphere of the coffee shop is familiar to me. lee et al. (2018) it is comfortable to spend my time at the coffee shop. lee et al. (2018) the coffee shop makes me relaxed. lee et al. (2018) employee attitude the coffee shop’s employees are friendly. lee et al. (2018) the coffee shop’s employees are kind. lee et al. (2018) the coffee shop’s employees makes me feel happy. lee et al. (2018) it service the wireless internet service at the coffee shop is satisfactory lee et al. (2018) the coffee shop has good internet service. lee et al. (2018) the coffee shop provides high-quality wireless service. lee et al. (2018) coffee quality the taste of the coffee shop’s coffee is great. lee et al. (2018) the coffee shop‘s coffee has a good smell. lee et al. (2018) aroma of the coffee shop‘s coffee is pleasant. lee et al. (2018) i like the smell and taste of the coffee shop’s coffee. lee et al. (2018) attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 113 result and discussion descriptive analysis online questionnaire was used to simplify data collection procedure. the link of such online questionnaire had been communicated through various social media platform to people domiciled in all provinces in indonesia. as this research used purposive sampling method, only 44.65 % or 380 responses from 22 provinces was valid and can be used in this research. 55.35% responses were not valid because the respondents never been enjoyed their coffee in the store (dine in). from the analysis of some profiling questions, the respondents mostly spent time in the coffee shop between 30 minutes until an hour. the top three respondents’ reasons spent time at coffee shops were for having quality time with friends or relatives, studying (group assignment) or meeting with client, and enjoying their favorite coffee. the profile of 380 valid respondents are explained in table 3 below: table 3: profile of respondents satisfaction i am satisfied with the coffee shop. lee et al. (2018) the coffee shop is fulfilling. lee et al. (2018) i am content with the coffee shop. lee et al. (2018) price fairness the price of the product sold at the coffee shop is reasonable konuk (2019) the price of the product sold at the coffee shop is fair konuk (2019) the price at the coffee shop is acceptable konuk (2019) loyalty i am willing to pay money to the coffee shop lee et al. (2018) i have loyalty to the coffee shop lee et al. (2018) i am a loyal customer of the coffee shop lee et al. (2018) item frequency percentage gender male 220 57.7% female 161 42.3% age (in years old) < 20 25 6.6 % 20 – 30 110 29 % 30 – 40 152 40 % 40 – 50 67 17,6 >50 26 6,8 % coverage area dki jakarta 148 38.95% jawa barat 88 23.16% jawa timur 77 20.26% banten di yogyakarta jawa tengah 37 9.74% attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 114 according to the table 3, there are 57.7 % of the total respondents were male, while 42.3% were female. most of respondents were lived in the west part of indonesia. regarding profile of respondents’ occupation, 195 ones (55.79%) were employees in private enterprises, 41 ones (11.58%) were housewives, 37 ones (10.53%) were students, 30 ones (8.68%) were civil servants, 27 ones (7.63%) were self-employed, 16 ones (4.47%) were employees in state-owned enterprises. also, based on the table above can be concluded that most of respondents had monthly income idr 5 million until idr 10 million. exploratory factor analysis kaiser-meyer-olkin (kmo) method was conducted on all 23 questionnaire items to determine validity of each item in questionnaire. the kaiser-meyer-olkin (kmo) testing result was 0.948, with factor loadings of all item is > 0.6. therefore, all items were considered to be significant valid. the exploratory factor analysis’ result of each item and analysis of reliability of each construct is shown in table 4 below. bali kalimantan maluku & maluku utara nusa tenggara timur & barat sulawesi tanah papua 17 4.47% sumatera 13 3.42% occupation employee – private company 195 55.79% housewife 41 11.58% student 37 10.53% civil servant 30 8.68% self-employed 27 7.63% employee – state owned enterprise 16 4.47% others 5 1.32% monthly salary (in idr) 5,000,000 99 26% 5,000,000 10,000,000 114 29.9% 10,000,000 20,000,000 85 22.3% 20,000,000 30,000,000 35 9.2% more than 30,000,000 48 12.6% attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 115 table 4: descriptive information on measurement source: own tabulation according to malhotra (2007), a construct can be classified as reliable when the value of cronbach’s alpha is above 0.6. from table 4 , the cronbach’s alpha for all construct was between 0.8 until 0.9, therefore, all construct is statistically reliable. as shown in the table above cronbach alpha for store atmosphere is 0.919, employee attitude is 0.928, it service is 0.956, coffee quality is 0.954, price fairness is 0,959, customer satisfaction is 0.917, and for customer loyalty is 0.897. therefore, all construct was used in this questionnaire can be considered as significant reliable. correlation analysis in order to perform analysis positive and negative correlations between construct, pearson correlation method was conducted, as the result is shown on table 5 as below: construct item mean loadings eigenvalues cronbach’s alpha store atmosphere atmo1 4.144 0.758 3.236 0.919 atmo2 4.092 0.723 atmo3 4.065 0.729 atmo4 3.913 0.672 employee attitude emp1 4.021 0.706 2.623 0.928 emp2 4.089 0.752 emp3 3.871 0.719 it service it1 3.686 0.853 2.758 0.956 it2 3.702 0.875 it3 3.686 0.864 coffee quality coffq1 4.060 0.748 3.519 0.954 coffq2 4.021 0.730 coffq3 4.026 0.777 coffq4 4.034 0.764 price fairness prcf1 4.015 0.792 2.579 0.959 prcf2 3.997 0.756 prcf3 4.013 0.743 customer satisfaction stfct1 3.660 0.730 2.772 0.917 stfct2 3.776 0.734 stfct3 3.750 0.758 customer loyalty loy1 3.705 0.765 2.488 0.897 loy2 3.318 0.758 loy3 3.271 0.764 attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 116 table 5: correlation matrix ** at the level 0.01, correlation is considered as significant (two-tailed) source: own tabulation the result of pearson correlation matrix shown that the correlation among all construct were between 0.5 until 0.8. based on weston et al (2014), it can be concluded that correlation among all construct were statistically significant. the greater value of pearson correlation, the closer relation between constructs. thus, can be concluded that the constructs were considered to be significant corelated. regression analysis as attributes of coffee shop are determined as store atmosphere, employee attitude, it service, coffee quality, and price fairness; multiple regression was performed to test the relationship between such attributes and customer satisfaction. the result of multiple regression of attributes coffee shop and customer satisfaction is illustrated in table 6 below: table 6: multiple regression analysis for the relationship between attributes of coffee shop and customer satisfaction store atmosphere employee attitude it service coffee quality price fairness customer satisfaction customer loyalty store atmosphere 1 employee attitude 0.707** 1 it service 0.526** 0.509** 1 coffee quality 0.725** 0.664** 0.456** 1 price fairness 0.790** 0.712** 0.508** 0.828** 1 customer satisfaction 0.626 ** 0.573** 0.566** 0.622** 0.679** 1 customer loyalty 0.623** 0.554** 0.491** 0.647** 0.676** 0.754** 1 independent variable standardized coefficient β t sig. vif adjusted r 2 f r 2 constant 0.77 0.692 0.489 0.785 0.782 273.052 store atmosphere 0.277 6.881 0.000 2.826 employee attitude 0.132 3.600 0.000 2.328 it service 0.009 0.295 0.768 1.626 coffee quality 0.443 11.671 0.000 2.505 price fairness 0.149 4.299 0.000 2.076 attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 117 as shown above in table 6 that r square was 0.785, which means 78.5 % of customer satisfaction was explained by attributes of coffee shop. as the value of r square and adjusted r square were slightly different, hence it might be concluded that the regression model can explain very well the relationship between independent variable and dependent variable (markovic and jankovic 2013). vif for all independent variable is more than 1 but least than 10 (1>vif<10), it means that there was no multicollinearity problem among independent variable. so it can concluded that the result of multiple regression test is reliable, partial coefficient regression in this multiple regression model is robust. from the table above can be seen that four of five independent variables (store atmosphere, it services, employee attitude, coffee quality, and price fairness) significantly influenced customer satisfaction (p <0.050). the coffee quality had the highest statistically significant coefficient value (β = 0.443, p < 0.05). the coffee quality produced the highest impact on customer satisfaction among all independent variables. moreover, store atmosphere was also had a significant relation to customer satisfaction, store atmosphere was in the second place after coffee quality (β = 0.277, p < 0.05), followed by price fairness (β = 0.149, p < 0.05) and the last variable which is produced the high impact on customer satisfaction was employee attitude (β = 0.132, p < 0.05). last, it can be seen that it service did not have statistically significant effect to the customer satisfaction because the probability coefficient is more than 0.05 (p = 0.768) and it gave the smallest impact on customer satisfaction (β = 0.009). another result that can be seen in table 6 is f value, f value that count from regression method is 273.052 which is greater than f table (2.14). that means, all independent variable is simultaneously had significant effect to customer satisfaction as dependent variable. table 7: regression analysis between variable of customer satisfaction and variable of customer loyalty source: own tabulation simple linear regression was performed to analyse the relationship between variable of customer satisfaction and variable of customer loyalty. as seen in table 7, r square value was 0.569 and adjusted r 2 was 0.568. it means, 56,9 % customer loyalty is explained by customer satisfaction. the difference between r square and adjusted r square is only 0.001, it means that customer satisfaction had very good explanatory power in relation to customer loyalty. from table 7 below can be seen that customer satisfaction had significantly influenced the customer loyalty (β = 0.754, p<0.05). from all components that shown in table 7, customer satisfaction was an important variable that influenced customer loyalty. hypothesis testing based on research model in figure 1 in the previous part of this paper, there were six hypotheses was proposed in this study. the summary of the result is as seen in table below: independent variable β t sig. r 2 adjusted r2 f constant 0.338 2.382 0.018 0.569 0.568 498.868 customer satisfaction 0.754 22.335 0.000 attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 118 table 8: summary of the hypotheses testing hypotheses h1, h2 and h4, h5 and h6 are supported by the result of the coefficient regression analyses presented earlier. meanwhile, hypothesis h3 was not supported because of insignificant relationship between it service and customer satisfaction. 5. discussion this study was conducted to find out the antecedents and consequence of customer satisfaction in indonesian coffee shop industry. based on the previous study, five attributes of coffee shop as explained earlier were proposed as the antecedent of customer satisfaction in the study. as proposed above, customer loyalty was investigated as the result of customer satisfaction in this study. this study used data collected through online questionnaire. kmo factor analysis and linear regression were undertaken to analysed the data. the results found that the research model of this study can explains perfectly four attributes as antecedents of customer satisfaction and significantly described customer loyalty as consequence of customer satisfaction. this finding is strengthening the theory which was built before by several previous study that coffee quality, store atmosphere of coffee shop, price fairness and the attitude of the employee have significantly effect to customer satisfaction. also, this study proved theoretically that customer satisfaction had positive relation with customer loyalty. the finding of this study also can be used for coffee shop management in indonesia to analyse their strength in order to build a right strategy for their business. they should focus on four major aspects – coffee quality, store atmosphere, price fairness and employee attitude in order to win the competition in coffee shop industry. coffee quality was the most attribute which was produced the highest impact on customer satisfaction. coffee quality produced the highest β among all attributes that had been proposed in this study. result of this study was similar with result of previous one conducted by lee et al. (2018), ha and jang (2010) and han and hyun (2017). by providing a good coffee quality to customer, level of the customer satisfaction is expected to increase. the coffee shop can improve their customer satisfaction level by improving their coffee quality. the coffee quality can be determined from the taste and the aroma of the coffee that served in the coffee shops. in this study, store atmosphere was the second attribute that produced the highest effects to customer satisfaction. providing better store atmosphere can achieve higher level of customer satisfaction. . better store atmosphere described as how much the store atmosphere can make the customers feel comfortable and relax so they have willingness to stay longer at the coffee shop. relationship hypothesis result store atmosphere with customer satisfaction h1 supported employee attitude with customer satisfaction h2 supported it service with customer satisfaction h3 not supported coffee quality with customer satisfaction h4 supported price fairness with customer satisfaction h5 supported customer satisfaction with customer loyalty h6 supported attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 119 in case of indonesian coffee shop’s customers, the store atmosphere being so crucial because according to this study, most of indonesian coffee shop customer used a coffee shop as a place to have quality time with friends and relatives. the third attributes that played important role in creating customer satisfaction based on this study was price fairness. in order to make customer satisfy, the coffee shop owners and manager should offer a fair price to their customers. this finding is supported by several studies conducted by konuk (2018) and konuk (2019), when customers had a high expectation of the price fairness, their satisfaction could be higher (konuk, 2019). the coffee shop shall to offer a reasonable price to customers compared to the product or service they had. the last attribute that had statistically significant impact to customer satisfaction was employee attitude. this is supported by previous studies conducted by lee et al. (2018) and han et al. (2012). the coffee shop management should provide a continuously training for their employees in order to maintain their ability in giving the best service to customer. according to the result of this study, customers like when the employee of coffee shop is kind and friendly. these kind of employee make them feel satisfy so it tends to increase customer satisfaction. furthermore, this study found that there was no significant impact of it service to customer satisfaction. this result is contrast with previous study that conducted by kim et al (2004) and lee et al. (2018). the different result may occur because of the reason of mostly customer whom had been a respondent in this study (78.2%) was for having quality time with friends and relatives so it service was not the main factor influences their satisfaction. needs further study to find out why the it service was not have significant impact to customer satisfaction in coffee industry in indonesia. last, this study examined that customer satisfaction was produced high influenced to customer loyalty. this result is supported by luo and homburg (2007); hu, et al (2019); and lee et al. (2018). according to those studies, providing the highest performance by for coffee shop management of attributes they had in order to make customer feel satisfy is very important. once customers feel satisfy, the loyalty towards the coffee shop will increase. conclusion as theoretical contribution, this study strengthening the finding in previous study by proofing that store atmosphere, price fairness, employee attitude, and coffee quality have significantly affect customer satisfaction in indonesian coffee shop industry. another theoretical support from this study, customer satisfaction had positive affection on customer loyalty. moreover, this study had examined a new finding in coffee shop business domain research that price fairness can be described as new attributes that significantly affect customer of coffee shop. as contrast to previous study, the attribute of it service is not significantly affect customer satisfaction. this study also provides practical information for coffee shop owners and managers. first, coffee shop owners and managers need to improve the quality of their coffee (taste and aroma) to fulfil the customer expectation. they need to spend more budget in r&d area in order to provide a better coffee quality for their customers. moreover, they have to able creating a comfortable store atmosphere since most of customer spend their time in coffee shop to have quality time with friends and relatives. a better store atmosphere includes a wider space, a comfortable atmosphere, a better lighting and may be the right music playlist. attributes of coffee shop as antecedent of customer satisfaction. https://doi.org/10.21009/jobbe.004.2.09 sasongko, f., et.al.. (2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 120 moreover, coffee shop owners and managers also should offer a fair price of their products to customer in order to retain or even enhance customer satisfaction. they have to build a right pricing strategy, offer a reasonable price that fit for their customer. last, since the employee attitude become one of crucial attribute, coffee shop owners and managers needs to invest more in employees training. customers expect a friendly and kind employee to serve them. by implementing all suggestion above, the coffee shop is expected to survive and create a continuously profit. this study has many limitation, there were only five attributes were observed and hypothesized as antecedents of customer satisfaction in the context of coffee shop industry. by performing more additional information about the attribute of coffee shop, the finding of future research would widen the understanding of customers behaviour in indonesian coffee shop industry. the sample was limited to indonesian coffee customer in certain province, the sample for next research shall be more spread based on proportion of each province’s population. given such limitation of sample, the wider sample of next future research is needed in order to give more significant insight about the study about coffee shop industry. according to the result of screening question, 41% of respondents which is involved in this study prefer take their coffee by taking away. they were a loyal customers of coffee shops in indonesia but they never spend their time to dine in the coffee shop outlets. this phenomenon can explain another consumer behavior and can be subject to the next future research. another uncommon finding from this study was it service did not contribute significant role in affecting customer satisfaction in indonesian coffee shop industry. next future research needs to deepen and to find out the effects of it service to customer satisfaction in order to generalizing the result of this study. future research in the context of coffee shop is needed in order to improve and strengthening the finding of this study. the finding of next future research are expected to provide more contribution to both of theoretical and managerial aspect. reference al-tit, a.a. 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(2020). journal of business and behavioural entrepreneurship, 4(2), 106-124 https://doi.org/10.21009/jobbe.004.2.01 42 abstract the purpose of this study is to systematically review the recent publications in entrepreneurship education in universities (eeu) by considering the key characteristics and contributions of the articles. the study employed the systematic assessment quantitative technique (sqat) developed by australian researchers, catherine pickering and jason antony byrne to identify and analyze 60 peer-review eeu articles. the result showed that europe, followed by africa had the highest geographical spread of eeu articles and none in south america. a bulk number of the eeu research was empirically founded, implying conduct of more conceptual studies as to provide clearer understanding of new norms and fundamental issues in eeu. significantly, most of the articles revealed positive impacts of eeu on learning outcomes, although more on short term impacts. therefore, this calls for more long term impact researches to corroborate the assumption that eeu produces entrepreneurial graduates that contribute to economic growth. furthermore, methods of data collection for most of the eeu articles were through survey, multiplicity in methods of data collection should be encouraged in future eeu researches as to gain more insightful results of the studied and related issues in eeu. keywords: entrepreneurship education, universities, systematic assessment quantitative technique (sqat). received: 21 january 2021; accepted: 24 may 2021 ; publish: june 2021 how to cite: igbo, l.c., zubairu, u. (2021). effectiveness of entrepreneurship education in universities. journal of business and behavioural entrepreneurship, 5(1), 42-59. https:// doi.org/10.21009/jobbe.005.1.03 effectiveness of entrepreneurship education in universities lilian chinedum igbo federal university of technology, minna, niger state, nigeria email: lilian.mebrim@futminna.edu.ng umaru zubairu federal university of technology, minna, niger state, nigeria email: uzubairu@gmail.com https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 mailto:lilian.mebrim@futminna.edu.ng mailto:uzubairu@gmail.com 43 introduction globally, entrepreneurship education is gaining prominence due to its ability to contribute to creation of job opportunities and economic growth (arasti et al., 2012 nian et al., 2014; ghina et al., 2014; badri & hachicha, 2019), and this has stimulated its introduction in many universities’ curricula (nian et al., 2014; bell & bell, 2016). undeniably, entrepreneurship education in universities (eeu) remains a priority worldwide (de carolis & litzky, 2019), because of its target at promoting creativity, innovation and self-employment through the development of personal attributes and skills that form the foundation of an entrepreneurial mindset and behaviour (rideout & gray, 2013; adamu, 2015). eeu is aimed at instilling in students the entrepreneurial culture and spirit, in addition to producing educated entrepreneurs and new ventures (us department of commerce, 2013). in reality, many entrepreneurs who felt that there were many opportunities for them to start their businesses without necessary entrepreneurial knowledge, skills and attitudes had faced a lot of challenges of which, many failed (nian et al., 2014). with this, eeu should be propagated to adequately encourage and prepare graduates to be successful in their startups. this can be achieved through proper connection between the instructional objectives of entrepreneurship education, curriculum design and greater accuracy in the method of assessing their impacts (garcía-rodríguez et al., 2016). a sound and adequate research in the field of eeu will assist in the validation of the impacts of the learning outcomes of eeu. a lot of eeu researchers have established positive learning outcomes of eeu on students (ghina et al., 2014), some of which include increase in students’ entrepreneurial potential (garcía-rodríguez et al., 2016), development of entrepreneurial intention on venture creation (gerba, 2012; hattab, 2014; kuttim et al., 2014; maresch et al., 2016; barba-sánchez & atienzasahuquillo, 2017), acquisition of entrepreneurial skills and knowledge (kirkwood et al., 2014; hahn, 2019), broadening of their personal development and career planning (rae & woodier-harris, 2013), encouraging and creating entrepreneurial interests in students (vij & ball, 2010), increase in their confidence and insights into the feasibility of new ventures (kirkwood et al., 2014), influence in their level of self-efficacy (egerová et al., 2017), and promotion of self-independence and self-reliance (nwokolo, 2017). however, on the contrary, few other researchers found no direct positive influence of entrepreneurship education of students’ entrepreneurial intention but rather on other variables like personal attitude and self-control (samiono, 2018; aditya, 2020). although, eeu researches which confirmed positive impacts outweighed those with no impacts. despite all these assertions, very few students start businesses after graduation (kirkwood et al., 2014). other researchers have argued on whether entrepreneurship education actually leads to the start-ups or only promotes positive entrepreneurial attitudes and intentions (kirkwood et al., 2014). botha & ras (2016) are of the opinion that there is paucity of eeu researches on the actual statistics of the number of entrepreneurship graduate start-ups. this has raised the concern on whether the outcomes of eeu should be evaluated on long term rather than short-term basis (kirkwood et al., 2014). this study, therefore, is aimed at addressing this research gap by conducting a systematic review of eeu research. the research articles used in this review were obtained from sixteen databases: emerald, elsevier, springer, sage, taylor & francis, wiley, jestor, ingenta, inderscience, mit university, oxford university, cambridge university, harvard university, hein online, srrn and eric. the choice of these databases were because they are known for publishing mainly peer review artiigbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 https://doi.org/10.21009/jobbe.004.2.01 44 cles. the application of peer review system on research is believed to be the most important and effective procedure for attaining good standards of quality in journals (bornmann, 2011) thus, validating the utilization of high quality articles for this review. articles published within the last decade (2010 2019) were used for this study, and the intention of the selected timeline is aimed at reviewing the current publications which captured the latest happenings and the position of eeu globally. with the dynamism of the world today, and the paradigm shift in digital technology around the globe, the current publications would capture the impact of eeu on graduate startups, and the interventions and changes in meeting the current demands. this could range from government policies in education as regards the curriculum implementation and design or pedagogical objectives and methods. for instance, in the past, ee was meant for business students and taught in business schools only, however, in recent years, with the widespread call to provide students with entrepreneurial opportunities (leger-jarniou, 2012), most higher institutions have integrated it into their programs for all students regardless of their specialty (ekpoh & edet, 2011; kuttim et al., 2014; bell & bell, 2016). in order to achieve the purpose of this study, the key characteristics of the eeu articles were examined. the analyses of these key features of the downloaded articles were done based on the following: time distribution, geographical distribution, the type of article (conceptual vs. empirical), theories, themes and methods of data collection. based on the analyses, the identified research gaps will provide a guide for future researches for both current and intending eeu scholars. for policy makers in both education and government positions, the identified gaps will highlight issues in these areas that require immediate attention. the remaining part of this review is structured as follows: the literature review of previous systematically reviewed eeu articles. this study’s review differs from prior reviews because it is well detailed and covers a more recent timeline. this is followed by a methodology section, which discusses the method and processes used in conducting this study. next is the discussion of the findings, and highlights for future researches. then finally, limitations, suggestions and conclusion. literature review a thorough search of eeu literature from the downloaded articles in the sixteen databases used for this review within 2010-2019, revealed that only one systematic reviewed article has been published (rideout & gray, 2013). rideout & gray (2013) conducted a systematic review and methodological critique of the empirical research on the outcomes of university-based entrepreneurship education (e-ed). the study utilized 12 empirical articles that met the methodological (storey steps 4–6) standard. the reviewed articles were sourced from leading entrepreneurship scholarship repository websites, leading peer-reviewed entrepreneurship journals, (journals searched included: entrepreneurship theory and practice, journal of small business management, journal of business venturing, academy of management learning and education, technovation, journal of international entrepreneurship, international entrepreneurship management journal, journal of entrepreneurship, journal of entrepreneurship education, entrepreneurship and regional development, and several others. the time bound for the review was stated as “last decade”. by implication, the last 10 years from the year of publishing the paper in 2013 would be from 2003 to 2012. the findings of the systematic review and methodological crieffectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 45 tique of the research methods showed a variety of weaknesses in methodologies which undermine the assurance in the belief that entrepreneurship education can produce entrepreneurs and they recommended the conduct of future research on entrepreneurship education outcome. the fact that only one published eeu previous systematic review article was identified, is clear evidence that there is lack of eeu systematic review articles. although, the tendency of identifying other eeu systematically reviewed publications in the databases other than the used peer review publications is there, there is need for more systematic review articles to be published, and to a great extent peer review journals, because of their association with publication of standards and quality journals (bornmann, 2011). analysis of the prior systematic review showed that the authors critiqued the research methods of the reviewed articles to determine how those articles supported the belief that eeu can produce entrepreneurs. the present eeu systematic review carries out a comprehensive review of eeu research, and the findings are beneficial to the societal call for development of entrepreneurial potentials through innovation and creativity for self-reliance, self-employment and economic growth. the next section outlines the methodology adopted in this study. research methods this study adopted the “systematic quantitative assessment technique” (sqat) developed by pickering and byrne (2013) for the systematic review of the eeu articles. sqat is preferred for this review because its methods and steps are explicit and reproducible (pickering & byrne, 2013, p. 11). this technique suggests five important steps in conducting an effective systematic review. table 1 describes the application of the steps used in the review of this study. sixty peer reviewed english eeu articles met the selection criteria from sixteen databases. table 1. description and application of sqat step application in current study 1. define topic entrepreneurship education in universities 2. formulate research questions six research questions: 1. what is the time distribution of eeu research articles? 2. in which countries were these articles written? 3. what kind of eeu articles were published? (conceptual vs. empirical) 4. what kind of theories were applied in these articles? 5. what are the specific themes these articles explored, and what were the major findings in each theme? 6. what research methods were used in data collection? 3. identify key words “entrepreneurship education”, “universities”, “students” 4. identify and search database 1. 16 databases utilized: emerald, elsevier, springer, sage, taylor & francis, wiley, jestor, ingenta, inderscience, mit university, oxford university, cambridge university, harvard university, hein online, srrn and eric 2. “all in title” search using two search combinations: a. “entrepreneurship education” + “university” b. “entrepreneurship education” + “student” effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 46 source: authors’ tabulation (2020) table 2. number of papers downloaded in databases source: authors’ tabulation (2020) table 2 shows the list of all the sixteen databases searched for the eeu articles and the numbers from each database that met the search requirement. the database with the highest eeu research article was emerald (20) followed by elsevier (11). no matching eeu articles were found on the databases with zero. result and discussion the findings, discussions and suggestions for future studies were done based on the result of the analyses of the following key features of the downloaded articles: time distribution, geographical distribution, the type of article (conceptual vs. empirical), theories, themes and methods of data collection. time distribution of articles on entrepreneurship education in universities (eeu research) the time distribution analysis for this research was based on the 60 articles published on entrepreneurship education in universities (eeu). these were articles published in the last decade from 2010 2019. the analysis showed that 2016 and 2017 witnessed the highest article publications (10 articles) each in the area being reviewed. the year with the least number of published articles in the area being reviewed was in 5. read and assess publications 1. abstracts of papers found were read to ensure that they were dealing with entrepreneurship education in universities. 2. literature reviews, book chapters and conference proceedings were not included; only peer-reviewed conceptual and empirical papers. database number of papers 1 emerald 20 2 elsevier 11 3 springer 3 4 sage 8 5 taylor & francis 9 6 eric 7 7 inderscience 2 8 wiley 0 9 jestor 0 10 ingenta 0 11 mit university 0 12 oxford university 0 13 cambridge university 0 14 harvard university 0 15 hein online 0 16 srrn 0 total 60 effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 47 2011 with one article. the trend showed that articles were published every year but there were more publications in the middle and later years of the decade. source : authors’ review (2020) geographical distribution of articles on entrepreneurship education in universities (eeu research) figure 2 presents the geographical distribution of the reviewed 60 articles on eeu research based on continents. the total number of the represented countries in the continents is 33. the number is less than the sum of the articles being reviewed because some countries witnessed more than one research carried out in them. figure 2. geographical distribution of articles on eeu research based on continents source: authors’ review (2020) the result of the analysis showed that the 60 reviewed articles were published in five continents. europe had the highest number of articles (24), followed by africa (15), asia (14), north america (6), australasia (1) and south america (0). it can be observed that only one eeu article was published in australasia, while none was published in south america. these findings are surprising considering that the 2014 review of entrepreneurship education in australia (the largest country in australasia) revealed that entrepreneurship education is taught at more than 95% of all universities at the undergraduate level, and at 90% of all universities at the postgraduate level (scandlon & mccormick, 2018). similarly, in south america, hundreds of renowned universities offer entrepreneurial courses at both undergraduate and postgraduate leveffectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 48 els (courses in entrepreneurship in south america, 2020). this, therefore, calls for more peer review publications on eeu researches carried out in australasia and south america. figure 3. top 4 countries on eeu research publications source: authors’ review (2020) a total of 33 countries were represented in the systematic review of eeu articles. the top four countries were shown graphically in descending order. the united kingdom and usa had the highest article publications in the context being reviewed with six articles each, followed by china and nigeria with five articles each. many countries were not represented in the article publications of eeu research. the percentage rate of countries’ participation is just 17% of the total number of countries in the world (196) including taiwan (world map, 2019). this is very small and unexpected because with the level of importance accorded to eeu as the most innovative ways of combating graduate unemployment globally (gyan, 2015), its ability to empower people with the necessary skills, innovation and creativity to start their own businesses (premand, 2016), and the stimulation of economic growth (nian et al., 2014), it is important for every country to be involved in conducting eeu researches. this will enable institutions of higher learning to empirically determine the level of entrepreneurial outcomes and its impact on their economy. with many countries’ involvement in eeu research, identified gaps would provide a better understanding of the state of research and highlight as to where research investigation is needed for better policy formulation and guidance for future research (yatu et al., 2018). it is worthy of note that articles used in this study were limited to only peer reviewed english eeu research publications. article type the 60 articles used in the systematic review of eeu research were classified into two types: conceptual and empirical. conceptual papers are articles without data that focus on integration and propositioning of new relationships among constructs, thus, aimed at developing logical and complete arguments for associations, and building theory by offering propositions regarding previously untested relationships (gilson & goldberg, 2015). empirical articles, on the other hand, are researches that report the results of study that use data based on actual observation or experimentation (gilson & goldberg, 2015). figure 4 shows the breakdown of the 60 eeu articles based on the conceptual/empirical classification. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 49 figure 4. article type breakdown source: authors’ review (2020) the analysis showed that 82% (49) of the 60 reviewed eeu articles were empirical in nature, while 18% (11) were conceptual. empirical research is important as it validates existing theories and concepts. however, there are limited number of conceptual articles in the review. according to watts (2011), conceptual articles, unlike empirical ones, are important scholarly contributions to the literature. they help to facilitate development of theory, practice, and professional issues in ways that are unique to the conceptual framework. in line with this, o’connor (2013), said that ee lacked a theoretically conceptual grounding that would assist policy makers and educators because of the multi-definitional perspective of entrepreneurship, which had proven the difficulty of substantiating the economic benefit of ee. therefore, there is need for more conceptual eeu research to contribute to a better understanding of emerging norms and factors. theory breakdown of eeu research figure 5 shows the breakdown of the theories used in the eeu research. there were 25 different theories applied to the reviewed eeu research. only the top four of the theories used were shown in figure 5. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 50 figure 5. theory breakdown source: authors’ review (2020) the breakdown showed that 33 percent of the reviewed articles did not adopt any theory in their research. the top four applied theories in the review of eeu articles were as follows: theory of planned behaviour (tpb) (28%) was the most widely applied theory followed by psychological theory (6%), social cognitive theory (5%), and theory of human capital (4%). other theories applied were prospect theory, social learning theory, entrepreneurship theory, institutional theory, theory of entrepreneurship education, theory of capital structure, locus of control theory, entrepreneurship cognition theory, theory of entrepreneurial event, moral development theory, sex-role socialization theory, occupational theory perspective, achievement motivation theory, theory of emotion, emergent theory, theory of construct alignment, social identity theory, theory of personality, theory of entrepreneurial role models, social content theory, and self-regulation theory. some of the reviewed articles applied more than one theory in their research. the theory of planned behaviour provides an insight on conscious decision to act, that is, student entrepreneurial intention can be translated into action (venture creation) through ee (millman et al., 2010; gerba, 2012; hattab, 2014; mahendra et al., 2017; otache, 2019). psychological theory helps to examine and outline the development of personality dimension or entrepreneurial behaviour (garcía-rodríguez et al., 2016; premand et al., 2016; ismail et al., 2018). social cognitive theory (sct) exposes interactions between personal cognitive variables (self-efficacy and intention), with environmental factors (ee learning), and the outcome in human functioning (subsequent entrepreneurial behaviour) (rideout & gray, 2013; marques et al., 2018; cui et al., 2019). theory of human capital presents insight on how entrepreneurship education and training act as a tool for acquiring skills and knowledge, improving human capital, stimulating labour, productivity and boosting the levels of technology (solesvik et al., 2013; westhead & solesvik, 2015; maresch et al., 2016; kalimasi & herman, 2016). prospect theory provides insight on the relationship between a person’s assessment of risk in a given situation, ability to take or avoid risk and the intention to become an entrepreneur (solevik et al., 2013). a good percentage of the articles analyzed did not adopt any theory. on this basis, there is need for development and use of more theories in eeu articles. rideout & gray (2013) suggested an urgent need for scholars to conduct more rigorous research to support the development of theories of entrepreneurship education because it is a critical element of economic growth. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 51 eeu research theme a critical analysis of the reviewed 60 eeu articles revealed that they could be categorized into three different groups based on the themes that they explored. the number of the articles sorted out according to the themes are presented in figure 6. figure 6. eeu research themes source: authors’ review (2020) the theme with the highest publications is learning outcome with 67% (40 of the 60 articles). these are articles which researched on the entrepreneurial outcomes of students who participated in eeu. according to azizi & mahmoudi (2018), learning outcomes are what a learner is expected to know, understand, or be able to show after the completion of a learning process. the identified learning outcomes of eeu from the reviewed articles can be categorized into subjective/personal changes (short term/ lower level impact indicators) such as entrepreneurial intention, knowledge, skills etc. and objective/socio-economic changes (long term/higher level impact indicator) such as startups, venture performance and socio-economic impacts (nabi et al., 2017). entrepreneurial intention was the most researched of learning outcome of the reviewed articles and most of the scholars revealed that students’ exposure to eeu increases their entrepreneurial intention (e.g., ekpoh & edet, 2011; hattab, 2014; kuttim et al., 2014; del río et al., 2016; barba-sánchez & atienza-sahuquillo, 2017). some other articles revealed interactive effects of gender, university type, and course of study on the entrepreneurial intention of students (e.g., millman, et al., 2010; zhang et al., 2014), and on entrepreneurial orientation (marques et al., 2018). there were reported higher intensity of entrepreneurial intention on students of entrepreneurship and business studies than those of engineering, non-business or non-entrepreneurship students (e.g., gerba, 2012; solesvik et al., 2013; westhead & solesvik, 2016; maresch et al., 2016). other learning outcomes of eeu from the reviewed articles showed increased self-confidence, determination, self-belief, drive to succeed, and more insights into feasibility of venture creation (vij & ball, 2010; kirkwood et al., 2014). in as much as most of the reviewed articles revealed positive impacts of eeu, some students were faced with some obstacles in striding into an entrepreneurial path due to fear of failure and unwillingness to take risks (belwal et al., 2015). the long term learning outcomes of eeu from the reviewed articles showed that eeu led to small increase in selfemployment (premand et al., 2016), and more entrepreneurship graduates started businesses than non-entrepreneurship graduates (botha & ras 2016). the findings of the learning outcome articles showed a relatively positive impacts of eeu on the outcomes. however, it was discovered that there were more publieffectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 52 cations on the effects of eeu on lower level impact indicators than the higher-level impact indicators. therefore, more researches on the long term learning outcomes should be encouraged. in support of this, botha & ras (2016), asserted that although students show strong entrepreneurial intentions after participating in entrepreneurship courses, there are inadequate researches to show the start-up rate of entrepreneurship graduates, and therefore the advocacy for more researches on the start-up rate and venture performance. this will enable policy makers in both education and political arena to cross check if they are achieving the expected outcome of eeu or not, with a view to possible amendments, if any. eeu curriculum is the second most common theme among the reviewed articles with 18% (11 of the 60 eeu articles). these are studies that researched on the appropriateness and effectiveness of eeu programs. the analysis of eeu curriculum revealed the need for total review of universities’ curriculum and a holistic integration of ee across the university-wide curricula to encourage the acquisition of the necessary entrepreneurship skills for all students irrespective of their area of study for selfemployment and self-reliance (adamu, 2015; kalimasi & herman, 2016; onuma, 2016). eeu curriculum should be able to provide theoretical knowledge as well as develop the students’ entrepreneurial skills, behaviour, attitudes, and mindset that will equip them for a start-up or engage in entrepreneurship activities (nian et al., 2014; adamu, 2015). the lapses of the present eeu curriculum were the inclination to theoretical content rather than practical application of entrepreneurial skills (kapasi & grekova, 2017), abstract guidance without specific recommendation of what should be in the program (gedeon, 2014). therefore, in planning eeu curriculum, the needs of the students should be considered and incorporated (bridge et al., 2010; tang et al., 2014), there should be a proper entrepreneurship framework for guidance (gedeon, 2014) and the integration of a multidisciplinary content that focuses on experiential and service learning (wang et al. 2010). based on the above findings, there is need to review the eeu curriculum to be more practically oriented and also factor in the teaching needs of other disciplines. more research in the eeu curriculum should be encouraged as to identify content areas that should be inculcated or excluded in the curriculum for utmost results. as kalimasi & herman (2016) were of the opinion that integration of eeu’s curriculum is limited, largely because its implementation does not fit into the pedagogical needs of some disciplines. the third and least most explored theme is eeu methodology with 15%. these are articles that researched on the methods or approaches for delivering eeu. the review of the eeu methodology articles shows that scholars advocated for the adoption of experiential practical activities rather than the traditional teaching methods (lecture method) (olukundun et al., 2018), delivery through group projects, case study, individual project, development of a new venture creation project, and problem-solving (arasti et al., 2012). there is an opinion that eeu methodology should employ emotional dimension and critical thinking that increases entrepreneurial motivation for the development of students’ entrepreneurial psychological and social skills (farhangmehr et al., 2016). some articles encourage proper management and use of the material and intellectual resources that assure effective students’ learning (ghina et al., 2014; nayak et al. 2018). based on the findings, few studies have been conducted in the teaching methods of eeu. in affirmation, arasti et al. (2012) stated that there are few studies conducted in the area of teaching methods, although ee has no universal pedagogical methodology, the objectives, contents, and context determine the choice of technique. therefore, there is need for more research in the teaching methods of eeu. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 53 data collection methods figure 7 showed the summary of the four data collection methods utilized in the analysis of 49 empirical eeu researches reviewed. the analysis indicated that some of the articles used more than one method in collecting their data. figure 7. data collection method source: authors’ review (2020) figure 7 showed that 68% of the empirically reviewed paper collected their data through survey (e.g. gerba, 2012; hattab, 2014; kuttim et al., 2014; nwokolo 2017; ismail et al., 2018). the second most used method of data collection is interview with 19% (e.g. ronkko & lepisto, 2015; bell & bell, 2016; botha & ras, 2016). this is followed by observation (8%) (e.g. kirkwood et al., 2014; shih & huang, 2017; nayak et al., 2018). the least is secondary data with 5% (e.g. ghina et al., 2014; kalimasi & herman, 2016; kapasi & huang, 2017). majority of the reviewed eeu research articles used primary sources for data collection of which survey was the most used. according to smith (2013), scholars have argued that the time for the use of survey is fast becoming obsolete, and therefore, advocated for the combination of methods. no method of data collection is perfect, each method has its own merits, costs and risks, but the inherent weakness of each method can possibly be offset by using a mix method (wolf et al., 2016). in view of this, future studies should employ a combination of intra primary data or inter secondary data. conclusion this study systematically reviewed 60 peer-review journal articles on eeu. this was done through a novel approach that focused on six key categories, namely: the time distribution of the articles, geographical distribution of the articles, article type, theories used, research themes and methods of data collection. there were discussions on the outcomes of the analyses of the reviewed articles and directions for future research recommended. although eeu has attracted reasonable scholarly attention, there are still paucity of scholarship on long term impact outcomes of eeu, considering the increasing interest in eeu as the engine for the production of entrepreneurial potentials that would contribute to economic growth and job opportunities. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 https://doi.org/10.21009/jobbe.004.2.01 54 however, the authors acknowledged that some limitations exist in this study. these limitations should be taken care of in future eeu research. firstly, the time bound for this study is for the articles published in the last decade (2010 – 2019). future research may include earlier years or decades, as this may provide some useful insights. the second limitation is that this study used “all in title” search using two search combinations: “entrepreneurship education'' + “university” and “entrepreneurship education” + “student”, however, adding extra search combinations in the sixteen peer review databases will definitely produce more eeu articles. future systematic reviews can widen the scope of search combination to gain further insight into eeu research. another limitation is that only english journal articles were included in the review; book chapters and conference proceedings were excluded. this was done in accordance with the sqat methodology to maintain the high quality of articles reviewed. however, there is potentially very useful insight in book chapters and conference proceedings, which future research would do well to include. notwithstanding these limitations, this study is important as it provides a clear picture on the current state of eeu research and gives a clear direction on the areas that future research should address in order to ensure eeu is properly implemented to produce graduates who will be self-employed and create jobs that will cause economic growth. references adamu, l. e. 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(2014). the role of entrepreneurship education as a predictor of university students’ entrepreneurial intention. international entrepreneurship and management journal, 10(3), 623-641. effectiveness of entrepreneurship education in universities. https://doi.org/10.21009/jobbe.005.1.03 igbo, l.c., zubairu, u. journal of business and behavioural entrepreneurship, 5(1), 42-59 http://www.worldatlas.com/nations.htm http://www.worldatlas.com/nations.htm https://doi.org/10.21009/jobbe.004.2.01 66 abstract over the years, the field of entrepreneurship studies has become important in the world of education. the importance of entrepreneurship can support the view that entrepreneurship has become a major factor in the progress and expansion of the social economy, because it offers more job opportunities, as well as the impact on national growth and income distribution in a country. many studies have shown the interaction between entrepreneurship education and entrepreneurial intentions. the aim of this study was to empirically examine factors such as personal attitudes, subjective norms, perceptions of self-control and entrepreneurial education that stimulate entrepreneurial intentions during higher education programs using data collected on campus. this research examines attitudes, norms, selfcontrol, and entrepreneurship education on entrepreneurial intentions. the research test used multiple linear regression analysis techniques with the help of the spss 23 program. where the number of respondents in this study were 95 students of the jakarta state university management study program. based on the results of the study, it can be seen that the research results show that the variable personal attitude affects entrepreneurial intention, self-control variable affects entrepreneurial intention, and the entrepreneurship education variable does not influence entrepreneurial intention. keywords: entrepreneurial intentions, subjective norms, entrepreneurship education, attitude received: 23 october 2020 ; accepted: 3 november 2020 ; publish; december 2020 how to cite: aditya, s. (2020). the influence of attitude, subjective norms, perception of selfcontrol and entrepreneurship education on entrepreneurial intentions. journal of business and behavioural entrepreneurship, 4(2), 66-83. https://doi.org/10.21009/ jobbe.004.2.06 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions shandy aditya, bib., mpbs fakultas ekonomi universitas negeri jakarta e-mail : shandy@unj.ac.id https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 67 introduction over the years, the field of entrepreneurship studies has become important in the world of education (abdul, salim, & kamarudin, 2012). the importance of entrepreneurship can be attributed to the view that entrepreneurship has been considered a major factor in social economic progress and expansion, because it offers more job opportunities, as well as the impact on national growth and income distribution in a country (ali, topping, & tariq, 2010). akpan, & etor, (2013) describe entrepreneurs as humans who are able to do something different and recognize opportunities, which other people generally do not. entrepreneurial activities are directed towards the development and implementation of business ideas by himself or what is called entrepreneurial intention (gerba, 2012). entrepreneurial intentions and activities offer opportunities for someone to achieve financial freedom, to have the authority and ability to make decisions. besides that, it also has economic benefits, namely by helping in job creation, job opportunities, welfare and economic equality (kurniawan, 2013). one of the challenging problems facing developing countries is the high rate of youth unemployment. this problem makes the work environment very competitive because the availability of job vacancies is limited (keat, selvarajah & meyer, 2011). the open unemployment rate (tpt) in indonesia reached 7 million people in august 2018, or 5.34 percent of the workforce. compared to the same period last year, there was a decrease in the unemployment rate of 40,000 people (kompas, 2018). the number of workforce itself reached 131.01 million people in august 2018, an increase of 2.95 million people compared to august 2017. while the working population was 124.01 million people, an increase of 2.99 million people compared to august 2017. when viewed more deeply, according to province, a number of provinces recorded an increase in the percentage of tpt, including dki jakarta. the unemployment rate in jakarta was recorded to have increased from 290,120 in february 2018 to 314,840 people in august 2018 (bps, 2019). in addition to the number of unemployed, bps dki noted, the open unemployment rate increased from 5.34 percent in february 2018 to 6.24 percent in august 2018. the open unemployment rate (tpt) is the percentage of the total unemployed to the total workforce. tpt is used to measure the level of labor supply that is not absorbed by the labor market. entrepreneurship is seen as a catalyst for economic growth and the state uses it as a strategy to reduce unemployment among youth. most governments have made countless efforts to increase entrepreneurial activities (akhmad, 2016). the indonesian government has provided increased support for small businesses and entrepreneurs, with initiatives such as tax incentives and training support. activities that have been carried out in introducing entrepreneurship among youth, for example, through entrepreneurship courses, entrepreneurial student programs, business competitions involving the role of successful small and medium enterprises (ukm) including training and internships as vital elements for the development of entrepreneurial skills (chinamasa , 2014). empirically bae, qian, miao, & fiet, (2014) have conducted research that entrepreneurship education is treated as a broader concept than simple courses, as long as it includes entrepreneurial needs. in his research it was suggested that an effective program should consist of four components: (1) a taught component, with one or more modules; (2) business planning components, which can include competition and business plan suggestions for developing specific business ideas; (3) components of practice, which can include field activities; and (4) a university support component, which could include market research resources, meeting rooms, technology suites, and even startup funding for student business teams. entrepreneurs are generally characterized aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 68 as individuals with a set of instincts, mindsets, inspiration, or visions who have the strength, will, and abilities needed to conceptualize ideas and to implement business plans and see change as an opportunity to create value from a business activity (ariyani, 2016 ). for a long time, educators and professionals have been under the shadow that entrepreneurs are born, not formed. subsequent studies claim that entrepreneurship can be taught (akhmad, 2016; astuti, r.d., & martdianty, 2012; bae, qian, miao, & fiet, 2014) many studies have shown the interaction between entrepreneurship education and entrepreneurial intentions (gerba et al., 2012; kurniawan, 2013; hassan and wafa, 2012; noel, 2001; paco et al. 2012; widawati, 2012; schlaegel and koenig, 2014). the purpose of this study was to empirically examine the factors that stimulate entrepreneurial intentions during higher education programs using data collected on campus. in this study it was investigated whether entrepreneurial intentions could be influenced by various types of factors such as entrepreneurship education, entrepreneurial attitudes, subjective norms, and behavior. based on the above background, the writer takes the title the influence of personal attitudes, subjective norms, perceptions of selfcontrol and entrepreneurship education on entrepreneurial intentions. based on the background problem above, this study has objectives, including: 1. to test the effect of attitudes on entrepreneurial intentions 2. test the influence of norms on entrepreneurial intentions. 3. testing the effect of perceived self-control on entrepreneurial intentions. 4. testing the effect of entrepreneurship education on entrepreneurial intentions. literature review entrepreneurship is a value creation process that requires time and effort and with entrepreneurship education and potential income to be achieved through innovation in fulfilling needs and wants. so that it takes confidence to be able to create something new by utilizing all the available resources (sukmaningrum and rahardjo 2017). adhitama (2014) describes the definition of entrepreneurship as a role model (entrepreneur), and strong-willed (effort). so an entrepreneur is someone who has determination or willpower and can be an example in life. it takes seriousness and exemplary role in becoming a successful entrepreneur (adhi et al., 2017). intention is one of the strength factors of an entrepreneurial individual. entrepreneurial intention is someone's desire to take an opportunity, opportunity or run a business by creating new products or services. based on rasli et al. (2014) stated that entrepreneurial intention is a desire that encourages someone to run a business. entrepreneurial intention refers to the readiness shown to engage in certain behaviors in this case entrepreneurship. rahardjo and sukmaningrum (2017) explain that entrepreneurial intention is an individual's determination to run a business with that person's goals. according to nur (2017), entrepreneurial intention is a courageous desire to solve life's problems and fulfill needs, create or advance their business with their strengths. entrepreneurial intention is defined as the enthusiasm of people to be involved in entrepreneurship, to start a business or to participate in and complete an entrepreneurial activity (engle et al., 2010). ajzen (1991) in potishuk (2017) explains that intention can basically be used to explain motivational factors that can influence decision making or behavior. in psychology, the theory of planned behavior (abbreviated as tpb) is a theory that connects a person's beliefs and behavior. this theory states that intention towards behavior, subaditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 69 jective norms, and perceived behavioral control together form the intention and behavior of individual behavior. this concept was proposed by icek ajzen to increase the predictive power of the theory of reasoned action by incorporating perceived behavioral control. it has been applied to the study of the relationship between beliefs, attitudes, behavioral intentions and behaviors in areas such as advertising, public relations, advertising campaigns, health, sports management and sustainability. attitude or personal attitude (pa) is a personal position or mindset on a particular problem. in this proper framework, it refers to attitudes toward enterprise creation. attitudes show individual beliefs about being entrepreneurial (liñán & chen, 2009). attitude refers to an evaluation of a person (positive or negative) or an assessment of one's behavior (ajzen, 1991). before forming intentions, people seem to make judgments for or against the behavior. tpb argues that attitudes are determined by a set of behavioral beliefs that link behavior with various outcomes and other attributes. based on the evaluation of attitudes or beliefs, a person gets an attitude both positively and negatively. in this way, the attitudes that shape behavior (to start a business) when it is perceived as having encourage activities that seek the desired benefits or consequences for them. unintended consequences result from negative attitudes toward behavior. a positive attitude towards entrepreneurship is considered attractive and beneficial for individuals, it will lead to better entrepreneurial intentions. subjective norms refer to the extent to which a relevant person or individual supports or does not support the performance of a particular behavior. in research, subjective norms can be measured by asking respondents to what extent entrepreneurs think family members, friends, or colleagues will support and be involved in entrepreneurial activities (liñán & chen, 2009; ajzen, 2001). it can be said that subjective norms are subjective perceptions of individuals (fishbein & ajzen, 1975). according to wedayanti and giantari, (2016), subjective norms are the perceptions of people who are considered important in influencing actions or behavior, as well as the motivation related to taking actions that are considered important. subjective norms are related to a person's social beliefs about what the people around him think and the motivation to follow these thoughts (maulana, 2009). perceived behavioral control (pbc) is a person's perception of the ease or difficulty of carrying out tasks. pbc is a significant actor in the theory of planned behavior. atkinson's (1964) theory of achievement motivation contains several elements of the perception of perceived self-control. it is described as the perceived probability of successfully performing a particular task. the theory of planned behavior is distinguished from the previous theory of reasoned action by ajzen (1991) in the fact that it introduced pbc as previously described. the theory of planned behavior proposes that pbc, along with behavioral intention, may be a good predictor of individual achievement in a particular area. the majority of work done in the field of perceived selfcontrol is done on the basis of belief (bolton & lane, 2012; gerba, 2012; rahmi, 2014). beliefs about self-efficacy mostly have an impact on the choice of task or behavior to be performed, as well as the stability of a person's thoughts and emotions (bandura, 1981). ajzen distinguishes perceptions of self-control from locus of control introduced by rucker (2011). the locus of control does not change over time, but remains relatively stable, whereas perceived behavioral control (perception of selfcontrol) may change over time. locus of control states that a person's success depends on the effort made (rucker, 2011). entrepreneurship education is defined as courses and courses that are part of the scope of the curriculum that offers students entrepreneurial skills, expertise and understanding, so that they can follow the entrepreneurial pathway as their profession aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 70 (akhmad, 2016; astuti, rd, & martdianty, 2012; bae, qian, miao, & fiet, 2014). according to gibson (2011), entrepreneurship education is an ongoing procedure that is taken to simplify the development of the acquaintances and skills needed to start a business. gibson et al. (2011) stated that the main objective of entrepreneurship education is to develop and nurture skilled future entrepreneurs to start and maintain successful businesses, regardless of their educational background. according to gerba (2012) entrepreneurship education is the educational activity of a person in increasing knowledge about entrepreneurship. learning activities are not only about marketing or sales that seem to educate you to become a trader, but are able to create added value from related products or services (nurseto, 2010). in entrepreneurship education, it is taught how to see opportunities and entrepreneurship education in facing the business world. according to kurniawan (2013), entrepreneurship education is a discipline that studies values, skills, and behavior in facing the business world. research methods the object of this research is the entrepreneurial interest of the management study program students at state universities (ptn) in the jakarta area. this research was conducted during june september 2019. data was obtained by distributing questionnaires to the jakarta state university (unj). 1. population according to sugiyono (2014), population is a generalization area consisting of objects / subjects that have certain qualities and characteristics that are determined by researchers to be studied and then draw conclusions. the population in this study were active students at the faculty of economics, jakarta state university, especially students from the management study program and those who had taken entrepreneurship courses. 2. sample the sampling method in this research is convenient sampling. convenient sampling is the determination of samples based on chance, namely members of the population that the researcher meets and is willing to become respondents to be sampled (iman, 2017). the data used in this study include primary data. primary data collection by researchers using a questionnaire method. this questionnaire method is in the form of giving written questions and through a website-based questionnaire that is distributed online using google form to active management students of the faculty of economics, state university of jakarta and who have taken entrepreneurship courses. before filling out the questionnaire, the respondent will be explained by the researcher about the purpose of this study and explain to fill in the questionnaire honestly, so that it is expected to get accurate results. 3. data analysis the data in the study were tested using multiple linear regression analysis. the multiple linear regression model in this study uses the classical assumption test, namely: normality test, multicolinearity test, test and heteroscedasticity. aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 71 result and discussion validity test where the validity test uses the pearson formula, with 20 respondents to the trial. the basis for making a decision to state whether or not each item of the statement is valid is to compare the results (r) count with (r) table. (r) the table used in this study is 0.423. based on the results of the validity test in this study, it is known that for the statement on the entrepreneurial intention variable (y) there is one item of statement, namely the statement with code nb4 which is declared invalid because there is a (r) count below 0.423, so it is declared invalid and the statement cannot enrolled in the research questionnaire. in addition, knowledge of attitudes (x1), subjective norms (x2), perceptions of self-control (x3), and entrepreneurship education (x4), there are no statement items whose value (r) is calculated below 0.423. so that all statement items on the four variables are declared valid and usable. reliability test reliability measurement is done by using cronbach alpha statistical test. a variable is said to be reliable if it provides a cronbach alpha value = 0.60 (imam, 2011: 48). based on the results of the reliability test in this study. the entrepreneurial intention variable from the seven statement items got the reliability results (0.682), the personal attitude variable from the five statement items got the reliability results (0.709) then, the subjective norm variable from the five statement items got the reliability results (0.866). in addition, the perception of self-control variable from the five statement items got the reliability result (0.678), and the entrepreneurship education variable from the five statement items got the reliability result (0.898). it can be concluded that each variable is declared reliable. classic assumption test in this study, before testing the hypothesis on the data that has been obtained, the classical assumption is first tested. where the classical assumption test is carried out three tests, namely the normality test, multicollinearity test, and heteroscedasticity test. normality test normality test uses graph analysis or p-plot and kolmogorov smirnov test. where the decision making regarding the resulting p-plot results is if the data spreads around the diagonal line and follows the direction of the diagonal line or the histogram graph shows that the distribution pattern is normal, then the data is normally distributed. if the data spreads far from the diagonal line and or does not follow the direction of the diagonal line or the histogram graph does not show a normal distribution pattern, then the data is not normally distributed. following are the results of the p-plot normality test. aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 72 source: data processed by spss 23, 2019 to be more convincing, the researchers used the kolmogorov-smirnov test by making the hypothesis ho is normally distributed data while ha is data that is not normally distributed (ghozali, 2016: 158). if the results of the kolmogorov-smirnov test show> 0.05 (significance level), then ho is accepted so that the data is normally distributed. if the results are <0.05, then ho is rejected so that the data are not normally distributed. if the data is not normally distributed or the number of samples is too small, non-parametric statistics will be used. table 1. normality test result test distribution is normal. source: data processed by spss 23, 2019 unstandardized residual n 95 normal parameters a,b mean .0000000 std. deviation 281.252.367 most extreme differences absolute .070 positive .059 negative -.070 test statistic .070 asymp. sig. (2-tailed) .200c,d aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 73 in this study, the results of the normality test with kolmogorov smirnov showed that the significance of the data was 0.2 where the data had a significance value of> 0.05. so that the distribution of data in this study can be declared normal. multicollinearity test the multicollinearity test was conducted to determine whether there was a correlation problem between variables. based on the multicollinearity test conducted in table iv.10, it is known that each independent variable gets a vif result of (1.298) for personal attitudes, (1.615) for subjective norms (1.587) for perceptions of selfcontrol, and (1.268) for entrepreneurship education where the results vif is in the range of number one and not more than number 10. this shows that there is no multicollinearity problem in each of the independent variables in this study. table 2. multicollinearity test result source: data processed by spss 23, 2019 heteroscedasticity test the heteroscedasticity test was carried out in this study by looking at the results of the glejser test. where the decision making for the glejser test is done by comparing the significance level of the test results with an alpha value of 0.05. if the results show a siginfikansi above 0.05 then there is no heteroscedasticity problem. table 3. heteroscedasticity test result model unstandardized coefficients standardized coefficients t sig. collinearity statistics b std. error beta tolerance vif 1 (constant) 8.442 2.419 3.490 .00 1 personal attitude .282 .098 .258 2.881 .00 5 .771 1.29 8 subjective norms .372 .127 .293 2.932 .00 4 .619 1.61 5 perceptions of selfcontrol .300 .120 .248 2.506 .01 4 .630 1.58 7 entrepreneurship education .054 .083 .058 .656 .51 3 .788 1.26 8 model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 3.772 1.561 2.417 .018 personal attitude -.039 .063 -.073 -.613 .542 subjective norms -.067 .082 -.109 -.821 .414 perceptions of self-control .011 .077 .019 .142 .888 entrepreneurship education .019 .053 .041 .349 .728 dependent variable: abs_res aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 74 the personal attitude variable has a significance value (0.542), the subjective norm variable has a significance value (0.414), the perception self-control variable has a significance value (0.888), while the entrepreneurship education variable has a significance value (0.728). based on the results of heteroscedasticity, the results of each independent variable show a significance above 0.05. where this shows the absence of heteroscedasticity problems in each of the independent variables in this study. hypothesis test the hypothesis test conducted in this study consisted of three tests, namely the partial hypothesis test or t test, and the coefficient of determination test or r2. however, before testing the hypothesis, a multiple linear regression test is conducted first. multiple linear regression multiple linear regression in this study aims to determine the effect of the four independent variables, namely personal attitude (x1), subjective norms (x2), perceptions of self-control (x3), and entrepreneurship education (x4). table 4. multiple linear regression result based on the table above, it can be seen that the regression equation for this research model is as follows: y = 8,442 + 0,282 sp + 0,372 ns + 0,300 ppd + 0,322 pk + ℮ y = entrepreneurial intentions x1 = personal attitude x2 = subjective norms x3 = perceptions of self-control x4 = entrepreneurship education β = koefisien regresi ℮ = error where the regression results above can be explained as follows: 1. personal attitude variable (x1) of 0.282. this shows that each addition of one personal attitude variable will increase entrepreneurial intention by 0.282. 2. the regression coefficient for the subjective norm variable is 0.372. so it can be interpreted that each addition of one subjective norm will increase entrepreneurial intention by 0.372. 3. the regression coefficient for the perceptions of self-control variable gets a result of 0.300, which means that for every addition of one perception, self-control will model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 8.442 2.419 3.490 .001 personal attitude .282 .098 .258 2.881 .005 subjective norms .372 .127 .293 2.932 .004 perceptions of self-control .300 .120 .248 2.506 .014 entrepreneurship education .322 .123 .238 2.405 .013 aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 75 increase entrepreneurial intention by 0.300. 4. the regression coefficient for the entrepreneurship education variable shows the number 0.322. so it can be interpreted that each addition of entrepreneurship education as much as one will increase entrepreneurial intention by 0.322. t test the t test or partial test is conducted to determine the effect of independent variables on the dependent variable separately. the decision making for the t test is done by comparing the results of the statistical test with the t table and by looking at the significance of each variable. the table value used is 1.98667, where the results are obtained from the 90 degrees of freedom in alpha for the two-sided test of 0.05. the determination of 90 degrees of freedom is from the number of samples, namely 95 minus the number of variables, namely 5. if the statistical test result is greater than 1.98667 or less than -1.98667 with a significance below 0.05, the variable is declared influential. where based on the results of the coefficient on the spss output which can be seen in table iv.13 shows the following results. the first hypothesis in this study is about the influence of personal attitudes on entrepreneurial intentions. the personal attitude variable (x1) obtained the t statistical test result of 2.881, which is greater than the table value of 1.98667. with a significance of 0.005 less than 0.05. based on this, it is known that the variable personal attitude has an effect on the entrepreneurial intention variable. the second hypothesis in this study is about the influence of subjective norms on entrepreneurial intentions. the subjective norm variable (x2) obtained the t statistical test result of 2.932 greater than the table value of 1.98667. with a significance level of 0.004 less than 0.05. this shows that the subjective norm variable has a significant effect on entrepreneurial intentions. the third hypothesis in this study is about the effect of perceptions of selfcontrol on entrepreneurial intention. where the perceived self-control variable (x3) gets the t statistical test result of 2.506 which is greater than the table value of 1.98667. with a significance value of 0.014 less than 0.05. this shows that the variable perception of self-control has a significant effect on entrepreneurial intention. the fourth hypothesis in this study is about the effect of entrepreneurship education on entrepreneurial intentions. where the entrepreneurship education variable (x4) gets the t statistical test result 2.405 greater than the table value 1.98667. with a significance of 0.013 greater than 0.05. this shows that the entrepreneurship education variable has an effect on entrepreneurial intentions. table 5. t-test result source: data processed by spss 23, 2019 model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 8.442 2.419 3.490 .001 personal attitude .282 .098 .258 2.881 .005 subjective norms .372 .127 .293 2.932 .004 perceptions of self-control .300 .120 .248 2.506 .014 entrepreneurship education .322 .123 .238 2.405 .013 aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 76 coefficient of determination (r-square) the coefficient of determination shows how much the ability of the research model to describe the influence between the variables in the study. the results of the determination coefficient test in the spss program are shown in the output model summary in the following table. table 6. r-square result source: data from spss 23, 2019 based on the results of the coefficient of determination, it is known that the adjusted r square results in 0.445. where this shows that the four independent variables are able to explain the entrepreneurial intention variable by 44.5%. meanwhile, the remaining 55.5% is explained by other variables not included in this study. discussion there is an influence of personal attitude on entrepreneurial intentions in the h1 test results in table iv.13, it can be seen that h1 is accepted, so it can be said that personal attitude has an effect on entrepreneurial intention. the results seen from this study are based on the percentage table of answers to the questionnaire in the appendix which states that personal attitudes affect entrepreneurial intentions. this shows that students have strong personal attitudes, beliefs and motivation in making decisions to become entrepreneurs. the results of this study are in line with listyawati's research (2017) which states that personal attitude has a significant effect on entrepreneurial intentions. these results are in line with research by amran et al (2016), sah (2013), andika and madjid (2012), linan et al. (2011) hein (2011), wijaya (2008), van galderen et al. (2006) that personal attitudes have an influence on entrepreneurial intentions. students who have a personal attitude will tend to make entrepreneurial decisions. the higher the attitudes and beliefs you have, the higher your interest in entrepreneurship will be. there is an influence of subjective norms on entrepreneurial intentions in the h2 test results in table iv.13 it can be seen that h2 is accepted so that it can be said that subjective norms have an effect on entrepreneurial intention. the results seen from this study are based on the percentage table of the questionnaire answers. the growth in the percentage of entrepreneurs has increased well, one of which is because the community supports entrepreneurial activities in their environment. this is driven by the development of technology or digital business that is increasingly advanced, making it easier to do business. the results of this study indicate that the support from the environment or norms prevailing in society for students to be entrepreneurial is proven to affect their entrepreneurial intentions. the results of this study are in line with awang's research (2016) which states that the subjective norm variable has a significant effect on entrepreneurial intention. this result is not in line with remodel r r square adjusted r square std. error of the estimate 1 .667a .445 .420 2.874 aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 77 search conducted by andika and madjid (2012) which concluded that the subjective norm variable does not have a significant effect on interest in entrepreneurship. this may be due to the lack of support from parents in the environment for student interest in entrepreneurship. there is the influence of perceptions of self-control on entrepreneurial intentions in the results of the h3 test in table iv.13, it can be seen that h3 is accepted so that it can be said that the perception of self-control has an effect on entrepreneurial intention. the results seen from this study are based on the percentage table of the questionnaire answers. this shows that the easier the perception of self-control felt by students, it means that the general reality conditions that students have in making decisions to become entrepreneurs are easy. the results of this study are in line with darmawan's (2016) research that the perception of self-control has an effect on entrepreneurial intentions. the same results in research conducted by warmika (2016) stated that one of the factors that influenced students' entrepreneurial intentions was the perception of self-control. the greater the perception of self-control that may be obtained, the greater the entrepreneurial intention of students in the capital market. there is an influence of entrepreneurship education on entrepreneurial intentions. in the results of the h4 test in table iv.13, it can be seen that h4 is accepted, so it can be said that entrepreneurship education has an effect on entrepreneurial intention. before deciding to become an entrepreneur, students need to have knowledge about the business world that they will choose. so that the availability of adequate information makes it easier for students to practice. thus, education regarding entrepreneurship is absolutely necessary for a prospective entrepreneur before entering the world of business. this adequate knowledge will form a person's ability to create value and profit and also be able to manage an existing entrepreneurship both small and large so as to reduce the impact of losses that will be experienced. for students, especially management study program students who have received courses on entrepreneurship material, of course this has become one of the capital of knowledge to be able to join the business world later. the results of this study are in line with research conducted by rembulan (2017) that entrepreneurship education has a significant effect on entrepreneurial intention. and research conducted by atmaja (2016) and astiti (2015) which states that entrepreneurship education has a significant effect on entrepreneurial intentions. the results of this study helped the university in strengthening tpb (theory planned behavior) at unj. most of the factors in the tpb can be verified. the results directly verify that students who have received entrepreneurship courses have high intentions, attitudes, norms and perceptions of control that are also better. in terms of subjective norm variables, it shows that planned behavior in entrepreneurship has an impact on the mindset of parents and their social members. perceptions of self-control show that students have a tendency to take risks and a proactive personality and are good predictors of entrepreneurial intentions. on the other hand, the four variables are direct determinants of entrepreneurial intentions. therefore this study supports the preliminary findings of luthje and frank (2003) and duijn (2009) in the netherlands. aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 78 personal attitudes, subjective norms and perceptions of self-control predict higher entrepreneurial intentions. thus the students emphasized that the current situation between their parents and the social environment provided several alternatives that could realize their intentions for an entrepreneurial career. this finding supports ajzen (1991) and krueger et al. (2000). this study extends the analysis in the tpb model in which the influence effects of attitudes, perceptions of self-control and subjective norms are substantiated. this study proves that there will be more startups among university graduates in the country if they receive serious attention and are able to focus on their hopes and receive support from the university, family, friends and peers. in addition, it can also strengthen a proactive personality and a tendency to take risks in entrepreneurship in the future. conclusion this research examines the effect of attitudes, norms, perceptions of self-control, and entrepreneurship education on entrepreneurial intentions. the research test used multiple linear regression analysis techniques with the help of the spss 23 program. where the number of respondents in this study were 95 students of management study program, state university of jakarta. based on the research results, it can be concluded that 1. there is an effect of personal attitudes on entrepreneurial intentions. this can be interpreted, if personal attitudes increase, then the entrepreneurial intentions of unj management study program students will increase. so, the first hypothesis is that there is an effect of personal attitudes on the entrepreneurial intention of unj management study program students, accepted. 2. there is an influence of subjective norms on entrepreneurial intentions. this can be interpreted, if the subjective norms increase, then the entrepreneurial intention of unj management study program students will increase. so, the second hypothesis is that there is an influence of subjective norms on the entrepreneurial intention of unj management study program students, accepted. 3. there is an effect of perceived self-control on entrepreneurial intentions. this can be interpreted, if the perception of self-control increases, the entrepreneurial intention of unj management study program students will increase. so, the third hypothesis, there is an effect of perceived self-control on the entrepreneurial intentions of unj management study program students, is accepted. 4. there is no influence of entrepreneurship education on entrepreneurial intentions. where entrepreneurship education is used in determining student entrepreneurial intentions. so, the fourth hypothesis is that there is an effect of entrepreneurship education on the entrepreneurial intention of unj management study program students in the capital market, accepted. suggestion based on this research, the suggestions for students are 1. provide more understanding regarding the importance of entrepreneurship 2. provide encouragement for students to dare to be directly involved in entrepreneurship by utilizing facilities and infrastructure such as entrepreneurship lab facilities available on campus 3. providing understanding in considering perceptions of self-control and entrepreneurship education to start entrepreneurship. for universities 1. provide compulsory entrepreneurship courses so that students have a basic personal attitude to entrepreneurship 2. empower as much as possible the facilities and infrastructure available on campus as a means of education, socialization, and the extent to which students can practice theories in lectures and support research activities 3. cooperate with successful entrepreneurs to aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 79 provide capital market seminars and training for students. for further researchers: 1) it is recommended not to limit the research location to certain regional universities, in order to obtain more relevant results, 2) it is recommended to conduct research on entrepreneurial intentions not only for students but with various professional backgrounds in order to obtain more accurate results. reference adhitama, p. p. (2014). faktor-faktor yang mempengaruhi minat berwirausaha (studi kasus mahasiswa fakultas ekonomika dan bisnis undip , semarang). adi, f., sumarwan, u., fahmi, i., adi, f., sumarwan, u., & fahmi, i. 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(2013). university lecturers’ perception of entrepreneurship education as an empowerment strategy for graduate selfemployment in southsouth nigeria. international journal of asian social science, 3(5), 11801195. akhmad yafiz syam, l. (2016). minat berwirausaha mahasiswa yang telah menempuh mata kuliah kewirausahaan, 6, 1–8. amir, n. (2017). faktor-faktor yang mempengaruhi intensi berwirausaha pada kalangan mahasiswa. organisasi dan manajemen, 1(1), 1–13. ariyani, l. (2016). faktor-faktor yang mempengaruhi intensi berwirausaha pada mahasiswa program s1, 1(1), 1–13. https://doi.org/10.13140/ rg.2.2.12034.17602 astuti, r.d., & martdianty, f. (2012). students’ perception and intention toward entrepreneurship: development of planned behaviour entrepreneurial model on six state universities in indonesia. 2nd annual international conference on enterprise marketing and globalization (emg 2012). bae, t. j., qian, s., miao, c., & fiet, j. o. (2014). the relationship between entrepreneurship education and entrepreneurial intentions: a meta-analytic review. entrepreneurship: theory and practice, 38(2), 217–254. https://doi.org/10.1111/ etap.12095 bandura, a. (1997). self-efficacy: toward a unifying theory of behavioural change. psychological review, 84, 191-215. 7. aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 82 baron, r. a. (2004). the cognitive perspective: a valuable tool for answering entrepreneurship’s basic ―why‖ questions. journal of business venturing, 19(2), 221– 239. beritasatu.com. (2018). indonesia berpotensi jadi negara maju. http:// www.beritasatu.com/ekonomi/224807-pakar-dari-as-indonesia berpotensijadinegara-maju.html (diakses juli 10, 2018) bird, b. (1988). implementing entrepreneurial ideas: the case for intention. academy of management review 13(3), 442-453. bolton, d. l., & lane, m. d. (2012). individual entrepreneurial orientation: development of a measurement instrument. education & training, 54, 219-233. cruz, l.d., suprapti, s., yasa, k. (2015). aplikasi theory of planned behavior dalam membangkitkan niat berwirausaha bagi mahasiswa fakultas ekonomi unpaz, dili timor leste. e-jurnal ekonomi dan bisnis universitas udayana. vol. 4 no. 12, pp. 895-920. engle, r.l., dimitriadi, n., gavidia, j.v., schlaegel, c., delanoe, s., alvarado, i., he, x., buame, s., & wolff, b. (2010). entrepreneurial intent a twelve country evaluation of ajzen’s model of planned behaviour. international journal of entrepreneurial behaviour & research, 16(1), 35-57. fretschner, m. & weber, s. (2013). measuring and understanding the effects of entrepreneurial awarness education. journal of small business management 51 (3): 410-428. gerba. d. t. (2012). impact of entrepreneurship education on entrepreneurial intentions of business and engineering students in ethiopia.african journal of economic and management studies.vol. 3 no. 2.pp. 258-277. ghufron, m.n., dan risnawita, s. (2009). teori-teori psikologi. jakarta: gramedia iakovleva, t., kolvereid, l., & stephan, u. (2011). entrepreneurial intentions in developing and developed countries. education & training, 53(5), 353-370. http:// dx.doi.org/10.1108/00400911111147686 kurniawan, r. (2013). pengaruh penerapan model pembelajaran teaching factory langkah (tf-6m) dan prestasi belajar kewirausahaan terhadap minat wirausaha.jurnal pendidikan teknologi kejuruan.vol. 10 no. 1.pp. 57-66. kautonen, t., gelderen., m. v. & fink, m. (2015). robustness of theory of planned behavior in predicting entrepreneurial intentions and actions. entrepreneurship theory & practice, 39(3), 655-674. liñán, f. (2008). skill and value perceptions: how do they affect entrepreneurial intentions? international entrepreneurship and management journal, 4(3), 257–272. liñán, f. & chen, y. w. (2009). development and cross-cultural application of a specific instrument to measure entrepreneurial intentions. entrepreneurship theory and practice, 33(3), 593–617. liñán, f., rodríguez-cohard, j. c. & rueda-cantuche, j. m. (2011). factors affecting entrepreneurial intention levels: a role for education. international entrepreneurship journal, 7, 195218. liñán, f., nabi, g. & krueger, n. (2013). british and spanish entrepreneurial intention: a comparative study. revista de economía mundial, 33, 73-103. leeuw, a. d., valois, p., ajzen, i., dan schmidt, p. (2015). using the theory of planned behavior to identify key beliefs underlying pro-environmental behavior in highschool students: implications for educational interventions. journal of environmental psychology. vol. 42. pp. 128-138. luthans, f. 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(2012). faktor-faktor yang mempengaruhi niat mahasiswa untuk berwirausaha: aplikasi theory of planned behavior. sinergi, vol. 13 no. 1, pp. 92100 aditya, s. (2020). journal of business and behavioural entrepreneurship, 4(2), 66-83 the influence of attitude, subjective norms, perception of self-control and entrepreneurship education on entrepreneurial intentions. https://doi.org/10.21009/jobbe.004.2.06 https://doi.org/10.21009/jobbe.004.2.01 51 analysis of the effect of firm characteristics on the completeness of public company’s voluntary disclosure adiutrix maria irayanti seran widya mandira catholic university, faculty of economics and business, jl. jend. achmad yani no.50-52, kupang email: adiutrixseran@gmail.com abstract the purpose of this study is to analyze the influence of firm characteristics and voluntary disclosure levels in the annual reports of listed companies in indonesia stock exchange. the degree of voluntary disclosure is calculated by an index which is based on background information, non-financial statistic, projected information, and management discussion and analysis. this study using 434 companies in 2021 as a sample and applies the multiple regression analysis. the finding of this study shows that firm characteristics; profitability, firm size, liquidity and industry type have significant relationship with voluntary disclosure, while leverage, age and ownership have no significant with voluntary disclosure. this study can be very helpful for the shareholders, creditors and financial management in making decision about giving voluntary disclosure in annual reports as it provides adequate information for decision making. keywords: voluntary disclosure, firm characteristic, annual received: 2 september 2022 ; accepted: 11 october 2022 ; how to cite: seran, a.m.i. (2022). analysis of the effect of firm characteristics on the completeness of public company’s voluntary disclosure. journal of business and behavioural entrepreneurship, 6(1), 51-68. https://doi.org/10.21009/jobbe.006.1.06 mailto:adiutrixseran@gmail.com 52 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 introduction the financial report is a structured presentation of the entity's financial position and performance (institute of indonesia chartered accountants, 2018). information of financial statements will be one measure in user decision making. the results of decisions based on the extent to which management discloses information in the financial statements. disclosure of information is also known as information publicity (tian & chen, 2009). disclosure is defined in the accounting literature as “information to the public through the company's financial statements”(ağca, a., önder, 2007). disclosure is also defined as “communication of economic information, both financial and non-financial relating to the financial position and performance of the company”( owusu-ansah, 1998). corporate disclosures consist of two categories, namely: mandatory disclosures and voluntary disclousure. the focus of this study is voluntary disclosure. research on voluntary disclosure is still very important because first, the choice of voluntary disclosure of information from companies is still different from one another and the choice of information aims to minimize conflicts of interest between management, shareholders and creditors. second, changes in economic environmental conditions cause companies to be less transparent in disclosing the information needed by users in this case the company is more focused on information disclosure regulations that have been regulated by accounting standards or capital market supervisory bodies. third, voluntary disclosure of information is considered to make it easier for investors to read and understand management strategies, minimizing information asymmetry. fourth, voluntary disclosure of information is useful for investors and other users of information to produce better decisions because mandatory disclosure is considered not sufficient to provide the information needed by investors. there are some of the previous studies regarding voluntary disclosure including: hossain & hammami (2009) voluntary disclosure in the annual reports of an emerging country: the case of qatar. wardani (2012) factors that affect voluntary area. sembiring (2012) analysis of company characteristics on voluntary disclosure of manufacturing companies. sehar & tufail (2013) determinants of voluntary disclosure in annual reports: a case study of pakistan. soliman (2013) firm characteristic and the extent of voluntary disclosure: the case of egypt. ibrahim (2014) firm characteristic and voluntary segment disclosure among the largest firm in nigeria. habbash (2016) the determinants of voluntary disclosure in saudi arabia: an empirical study. the variables used by previous researchers were observed again, but there were some differences in their explanation. first, the sample of previous research is only in certain industrial sectors and not all public companies listed on the idx. second, the industrial type variable has been used in previous studies, but the research location is not in indonesia, so the researcher further observes the influence of industry type on the voluntary disclosure of public companies listed on the idx. third, although several previous studies used the same variables, the results were inconsistent, so it is important to observe further about the voluntary disclosure of public companies. referring to the description above, this research will analyze the effect of company characteristics as measured by using profitability ratios, company size, industry type, leverage, liquidity 53 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 ratios, listing age, and the proportion of public share ownership on the completeness of voluntary disclosures in the financial statements of public companies on the indonesian stock exchange in 2021 literature review there are two categories of corporate disclosure, namely: mandatory disclosure and voluntary disclosure. mandatory disclosures and voluntary disclosures are two ways of delivering information by companies where managers communicate information relevant to the capital market as evidenced by stock prices and company liquidity related to both types of disclosure (balakrishnan & yang, 2016). mandatory disclosure is disclosure of information that must comply with regulations issued by the capital market supervisory agency (bapepam) while voluntary disclosure is the delivery of information other than those required by accounting standards or regulatory agency regulations (suwardjono, 2013:583). agency theory according to jensen & meckling (1976) agency relationship is a contract in which one or more parties (principals) involve another party (agents) to provide so me services for their interests, involving representatives of decision-making authority to agents. agents relate to managers and principals relate to shareholders from a corporate perspective. agency costs come from the assumption that the two parties, namely the agent and the principal, have different interests. monitoring costs are incurred by the principal to limit the activities of deviant agents. bonding costs are incurred by the agent in an effort to convince the principal to show that the agent has taken the best actions in the interest of the principal. residual loss will occur if the decision of the agent is different from the decision that will maximize the welfare of the principal, thus, agency costs are the sum of monitoring costs, bonding costs, and residual losses (jensen & meckling, 1976). the agency relationship will lead to information asymmetry problems if managers can access more information than shareholders. optimal contract is one way to reduce agency problems because it helps the interests of the principal (shareholders) in accordance with the interests of the agent (healy & palepu, 2001). in addition, voluntary disclosure is another way to reduce agency problems, where managers disclose voluntary information which reduces agency costs and also to convince external users that managers are acting optimally (shehata, 2014). signaling theory initially, signal theory was developed to clarify information asymmetry in the labor market (spence, 1973). signal theory can also help clarify voluntary disclosures in corporate reporting (ross, 1977). as a result of the problem of information asymmetry, the company gives certain information signals to investors to show that the company's current performance is better than the performance of other companies in the market, this aims to attract investment and improve a good reputation (verrecchia, 1983). voluntary disclosure is one means of signaling, where the company will disclose more information than is required by laws and regulations, to signal that the company is in good condition (campbell et.al 2001). 54 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 capital need theory the purpose of a company is to attract external parties to increase the company's capital, by debt or equity. capital need theory shows that voluntary disclosure helps in achieving the company's need to raise capital at a low cost (choi, 1973). according to andersson & folkare (2015) insights into enhancing voluntary disclosure issued by the financial accounting standards (fasb), as part of broader business reporting, competition for capital leads to increased voluntary disclosure. the rationale behind this is the fact that "the firm's cost of capital is believed to include a premium for the uncertainty and accuracy of the information available about the firm", therefore, a reduction in the firm's cost of capital will occur if investors are able to interpret the firm's economic prospects, through voluntary disclosure (financial accounting standards board, 2001). the relationship between voluntary disclosure and the cost of capital is considered positive, because the higher the disclosure of information, the lower the cost of capital. however (botosan, 2006) highlights that for certain types of disclosure, it may have the opposite effect. legitimacy theory the assumption of legitimacy theory is that the company does not have the right to exist unless its value is deemed appropriate to the society in general in which the company operates (magness, 2006). according to the statement above, thus, the idea of legitimacy theory resembles a social contract between companies and society. the purpose of accounting is to provide users with information to assist in making decisions that meet social interests, the theory has been integrated in accounting studies as a "means to explain what, why, when, and how certain things are handled by company management in their communication with parties outside the company (magness, 2006). legitimacy theory is based on public perception, so management is forced to disclose information that can change the opinion of external users about their company (shehata, 2014). financial statements have been detected as an important source of legitimacy. legitimacy occurs, both through mandatory disclosures – disclosures that are required according to applicable regulations, and voluntary disclosures provided elsewhere in the annual report (magness, 2006). firm characteristics the characteristics of companies are conceptualized differently by various studies according to the criteria used to define them. most researchers agree that company characteristics are related to company resources and organizational goals. the company's resources and objectives can be analyzed using three criteria, namely structure, performance and market (mgeni & nayak, 2016). this study uses the characteristics of the company in accordance with the observations that have been made previously by lang & lundholm (1993); wallace et al., (1994); dan mgeni & nayak (2016) where company characteristics are a potential measure to observe the completeness of voluntary disclosure, and classify company characteristics into 3 categories, namely: first, structure-related variables wallace et al., (1994), states that this variable tends to remain stable over time. there are two variables related to structure, namely leverage and firm size. second, performance-relatedvariables, this variable is a variable that varies from 55 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 time to time and provides relevant information for users. the following are included in the performance variables, namely liquidity ratios, profit margins, return on assets (roa), return on investment (roi), return on equity (roe). third, market-related variable, this variable is more specific over a certain period of time and/or is relatively stable over time. market variables can be under or outside the company's control and can be qualitative as well as quantitative. qualitative variables for example the status of a company and the type of industry. while the quantitative examples are the age of the company (age) and share ownership. hypothesis development the hypothesis can be briefly described through the research model which will be presented in figure 1 below: figure 1. research model source: author’s tabulation (2022) relationship between profitability and completeness of voluntary disclosure. profitability ratios are used to measure a company's competence in earning profits on capital, assets, and sales levels (harahap, 2008:219). agency theory and signaling theory propose that firms will provide more information when experiencing profits. subyantoro (1996) stated that economic investment returns and high profit margins will encourage managers to provide more detailed information because management wants to convince investors of the company's profits and increase management rewards. foster (1986:32) argues that one way to distinguish profitable and non-profit companies is through the provision of voluntary information. high profitability shows the high profits earned by the company, so companies that are more profitable (profit) are expected to disclose more voluntary information. profitability firm size leverage liquidity listing age industrial proportion of share ownership completeness of voluntary disclosure 56 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 then the formulation of the alternative hypothesis from this research is h1: the profitability ratio has a positive effect on the completeness of voluntary disclosure. relationship between company size and completeness of voluntary disclosure. the size of a company is measured by calculating the total assets of the company. several options that can be used to measure company size include: market capitalization, net sales level, and total assets. big companies have the resources to disclose more information and also big companies will get more public attention because they have a greater impact on society (andersson & folkare, 2015). in addition, according to jensen & meckling, (1976), large political burdens tend to be owned by large companies compared to small companies, because along with the size of a company, the information requested by users of financial statements is also increasing, so to reduce this burden, managers try to make voluntary disclosures to explain the company's activities. foster (1986:44) suggests that the most consistently significant variable in studies examining differences between companies in their disclosure policies is firm size (size). generally, large companies provide more detailed information than small companies. the formulation of the alternative hypothesis is: h2: company size has a positive effect on the completeness of voluntary disclosure. relationship between leverage and completeness of voluntary disclosure. leverage shows how much the company is financed by debt (van horne & wachowics, 2007). high corporate leverage means the higher the company's dependence on creditors, so companies with high leverage must disclose more detailed information to meet creditors' needs for information. the alternative hypothesis is formulated as follows: h3: leverage has a positive effect on the completeness of voluntary disclosure. relationship between liquidity and completeness of voluntary disclosure. liquidity shows the ability of a company to meet short-term funds. cooke, (1989) found that healthy companies are indicated by high liquidity ratios and disclosure of more detailed information so that financially healthy companies are likely to provide more information than low ones. on the other hand, if liquidity is viewed by the market as a measure of performance, it is important for companies with low liquidity ratios to provide wider information to explain weak performance compared to those with high liquidity (wallace et al., 1994). subyantoro, (1996) states that the liquidity ratio has an effect on voluntary disclosure, because a company with good liquidity means it has a good financial structure as well, so that if the public knows about it, the company's performance is not threatened. even if it is not known by the public, the company's performance can still be seen directly or indirectly. the formulation of the alternative hypothesis is as follows: h4: the liquidity ratio has a positive effect on the completeness of voluntary disclosure. relationship between listing age and completeness of voluntary disclosure. 57 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 the age of the company shows a company still exists (survive), has the ability to compete, and is able to take advantage of business opportunities in the economy. meek et al., (1995) shows that listed companies face additional pressure from the capital market for the provision of information. more knowledge about the information needs of investors is owned by companies that are longer listed on the stock exchange. the greater the age, the company will be more experienced in preparing financial statements. thus, companies with longer lists tend to be more open because they realize the importance of timeliness of company financial reporting. the formulation of the alternative hypothesis is as follows h5: listing age has a positive effect on the completeness of voluntary disclosure relationship between industrial and completeness of voluntary disclosure. industry type measurement is to distinguish high profile and low profile industries. description of the company's industry type based on company risk, scope of operations and ability to face business challenges. high-profile companies are companies that have a high level of competition, consumer visibility and political risk (roberts, 1992). based on research conducted by roberts (1992) classified high-profile industrial groups as automotive, paper, forest, chemical, oil and other mining, construction, tobacco and cigarette companies, agribusiness, media and communications, food and beverage, energy, health, tourism and transportation. a low-profile company is a company that does not get much attention from the public if an error occurs in the process or product or the company's operations fail. the alternative hypothesis is: h6: the type of industry has a positive effect on the completeness of voluntary disclosure. relationship between proportion of share ownership and completeness of voluntary disclosure. two aspects that are reviewed can affect share ownership on voluntary disclosure, namely; the first aspect, public ownership is greater than the ownership of certain parties who are "insiders". second, foreign ownership is higher than domestic ownership. the amount of insider ownership means that less information is disclosed due to the wide access that insiders have to company information to be published. the higher the share of public ownership, it means that there are more parties who need company information so that it must be described in more detail in the annual report. (suripto, 1998), stated that the greater the number of shares owned by the public, the more detailed the information provided should be because the public would demand the widest possible transparency from the company. in this study, it is expected that the greater the public ownership, the more extensive and complete the information disclosed will be. the alternative hypothesis is formulated as follows: h7: the proportion of share ownership has a positive effect on the completeness of voluntary disclosure. 58 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 research method the design of this research is descriptive explanatory with causality through hypothesis testing to determine the direct effect of company characteristics on the completeness of voluntary disclosures in the annual reports of public companies listed on the indonesia stock exchange. the data used is in the form of quantitative data and the source of data collection uses secondary data, namely the annual reports of public companies listed on the indonesia stock exchange in 2021 with a total of 766 companies. the sample selection was done by purposive sampling method, namely the selection of samples with certain criteria. the following is a table of sample selection procedures: table 1. sample selection procedure description number of companies number of companies listed on the idx in 2021 766 number of companies that suffered losses (188) number of companies that issue financial statements that do not use rupiah (rp) (90) number of companies that will ipo in 2021 (54) final sample quantity 434 source: https://www.idx.co.id/ variables are classified into two types, namely dependent and independent variables. completeness of voluntary disclosure is the dependent variable, and the independent variable is the company's characteristics as measured by profitability ratios, liquidity ratios, leverage, company size, listing age, industry type, and share ownership proportions. the disclosure completeness index can be calculated by: giving points to the disclosure items in a dichotomy where each item is given a score of one (1) if disclosed and zero (0) if not disclosed. the scores obtained are then added up to get the total score for each company. calculate the disclosure completeness index in the following way: total points earned the total points expected to be earned by the company profitability variable is measured by return on assets (roa), firm size variable is calculated using total assets (ln), leverage variable is measured by debt to equity ratio (der), liquidity variable is measured by current ratio, listing age is measured by duration of listing in the company, industry type variables are classified based on high profile and low profile, and the share ownership proportion variable is measured based on the percentage of shares owned by the public. https://www.idx.co.id/ 59 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 the data analysis technique used descriptive statistical test, classical assumption test, multiple linear regression model, accuracy test, coefficient of determination test, and variable significance test. multiple linear regression model as follows: discl = a + b1profit + b2size + b3lev + b4likuid + b5age + b6industri + b7pks + : information: discl: completeness of voluntary disclosure a : intercept b1, b2, b3, b4 ,b5, b6 ,b7 : regression coefficient profit: profitability ratio size: company size lev: leverage ratio likuid: liquidity ratio age: listing age industri: industrial type pks: proportion of share ownership : error term results and discussion research result the results obtained after processing the data are as follows; based on the model accuracy test (f test), the test results provide information that the variables of profitability ratios, firm size, leverage, liquidity ratios, listing age, industry type, proportion of public share ownership have a significant effect on the completeness of voluntary disclosure variables. based on the variable significance test (t test), the test results provide the following information; profitability variables, liquidity ratios, firm size, industry type have a significant effect on the completeness of voluntary disclosure variables. variable leverage, age of listing, proportion of share ownership has no effect on voluntary disclosure. analysis of research results descriptive statistics th e results of the descriptive statistical test are shown in the following table: table 2 descriptive statistical test results variabel mean deviasi standar maksimu m minimu m discl 0.752 0 0.0738 0.88 0.48 profit 4.310 6 9.38308 71.60 -71.37 size 1.595 53 239.187 47 968.13 1.08 60 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 lev 6.400 8 41.1300 7 624.96 -4.94 likuid 1.902 92 158.435 18 962.15 0.79 age 14.28 25 9.88798 70.00 1.00 indust ri 1.660 0 0.47430 2.00 1.00 pks 26.86 88 18.4350 5 100.00 0.00 sou rce: author’s tabulation 2022 ta ble 2 informs that the average level of voluntary disclosure (discl) is 0.7520, standard deviation 0.07380, maximum 0.88 and minimum 0.48. this condition shows that some of the indicators of voluntary disclosure have been described by the average public companies that are the research sample in their annual reports. coefficient of determination (r2) th e following table shows the coefficient of determination table 3 coefficient of determination test adjusted r square durbin watson 0.414 2.462 sou rce: author’s tabulation (2022) ta ble 3 informs that the adjusted r square value is 0.414, which means that 41.40% of the voluntary disclosure completeness variable is influenced by profitability, listing age, company size, liquidity, leverage, listing age, industry type, and the proportion of share ownership, while the remaining 58.60% is predicted to be influenced by variables. others that are not included in this research model. th e value of durbin watson based on the test results is 2.462, which means that there is no autocorrelation. multicollinearity test th e following is a table of multicollinearity tests: table 4 multicolllinearity test variabel independen tolerance vif profit 0.953 1.049 size 0.996 1.004 lev 0.997 1.003 61 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 likuid 0.968 1.033 age 0.984 1.016 industri 0.986 1.014 pks 0.981 1.020 sou rce: author’s tabulation (2022) ta ble 4 informs that this study is free of multicollinearity. model accuracy test th e following is a table of model accuracy test table 5 model accuracy test variabel f sig. profit 8.444 0.000 size lev likuid age industri pks source: author’s tabulation (2022) ta ble 5 informs that the model formulated in this study is fit and the variables of profitability, firm size, leverage, liquidity, listing age, share ownership proportion and industry type simultaneously have a significant effect on the variable completeness of voluntary disclosure. variable significance test th e t-test was conducted to determine the significance of the effect of each independent variable on the dependent variable. here is the t-test table: table 6 the results of the significance test of multiple linear regression variables variabel koefisie n regresi standar d error t p profit -0.478 0.219 2.28 7 0. 007* 62 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 size 0.502 0.220 2.71 3 0.000 * lev 0.106 0.168 0.95 8 0.196 likuid 0.602 0.400 2.47 5 0.005 * age 0.055 0.078 0.89 7 0.271 industr i 0.504 0.297 2.07 4 0.039 * pks 0.059 0.170 1.17 6 0.242 *sta tistically significant at 5% alpha level (p < 0.05) source: author’s tabulation (2022) ta ble 6 informs that the magnitude of the regression coefficient on the t value of each independent variable can be expressed as follows: profitability pro fitability regression coefficient (profit) -0.478 and t value -2.287 (p = 0.007). these results indicate that the effect of profitability on the completeness of voluntary disclosure is statistically significant at the level of = 1%. this result is consistent with the research of sehar & tufail (2014), which states that profitability has an effect on the completeness of voluntary disclosure. firm size th e firm size coefficient (size) is 0.502 and the t value is 2.713 (p = 0.000). it means that the effect of firm size on the completeness of voluntary disclosure is statistically significant at the level of = 1%. this result is equally consistent with the research of ibrahim (2014) habbash (2016); firm size has an effect on the completeness of voluntary disclosure. leverage th e leverage regression coefficient (lev) is 0.106 and the t value is 0.958 (p = 0.196). these results mean that the effect of leverage on the completeness of voluntary disclosure is not statistically significant. the results of this study are inconsistent with research by habbash (2016) and sehar & tufail (2014). liquidity th e liquidity regression coefficient (liquid) is 0.602 and the t value is 2.475 (p = 0.005). these results indicate that the effect of liquidity on the completeness of voluntary 63 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 disclosure is statistically significant at the level of = 1%. these results are not the same as those of sembiring (2012) and wardhani (2012). listing age th e regression coefficient for listing age (age) was 0.055 and the t value was 0.897 (p = 0.271). this result means that the effect of listing age on the completeness of voluntary disclosure is not statistically significant. this result is not in accordance with that of habbash (2016) and sehar & tufail (2014). industrial ind ustry type regression coefficient (industry) 0.504 and t value 2.074 (p = 0.039). these results indicate that the effect of industry type on the completeness of voluntary disclosure is statistically significant at the level of = 4%. the results are consistent with research by habbash (2016) and ibrahim (2014). proportion of share ownership th e regression coefficient for the proportion of share ownership (pks) is 0.059 and the t value is 1.176 (p = 0.242). these results indicate that the effect of the proportion of share ownership on the completeness of voluntary disclosure is not statistically significant. the results are consistent with wardhani (2012) and ibrahim (2014). discussion of research results the effect of the profitability ratio (profit) on the completeness of voluntary disclosure. th e results of the hypothesis test show that the profitability ratio has a significant effect on the completeness of voluntary disclosure and the probability value is 0.007. these results are consistent with the researches of wardani (2012), soliman (2013), sehar & tufail (2014) and habbash (2016) which show that profitability affects the completeness of voluntary disclosure, but differs from hossain & hammami (2009) which states that profitability has no effect on completeness of voluntary disclosure. the results of this study mean that the higher the profitability, the more complete the information provided voluntarily by the company, on the contrary, the lower the profitability, the less information is disclosed. this is because profitability shows the percentage of company profits in a certain period and is also related to the company's performance in generating profits. information about profitability is needed by stakeholders to control the results of management's work which is published through annual reports. agency theory and signaling theory propose that firms will provide more information when experiencing profits. the effect of firm size (size) on the completeness of voluntary disclosure. 64 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 th e hypothesis test shows that company size has a significant effect on the completeness of voluntary disclosure with a probability value of 0.000. this result is consistent with hossain & hammami (2009), wardani (2012), sehar & taufail (2014), soliman (2013), habbash (2016) and ibrahim (2014) on the other hand not consistent with sembiring (2012). this means that large companies will provide more detailed information than small companies because providing detailed information is an attempt by the company to be public responsibility and avoid risk. the effect of leverage on the completeness of voluntary disclosure. th e results of hypothesis testing show that the leverage variable has no effect on the completeness of voluntary disclosure with a probability value of 0.196. the results of this test are consistent with sehar & tufail (2014), wardani (2012) and habbash (2016). thi s means the higher the leverage the less information is disclosed by management in the company's annual report. the goal is that funding risk appears lower, otherwise more complete information will be disclosed when leverage is low so that the company's low risk of debt is a proof of good performance from management. the effect of the liquidity ratio on the completeness of voluntary disclosure. hy pothesis testing shows that the liquidity ratio has a significant effect on the completeness of voluntary disclosure with a probability value of 0.005. this result is inconsistent with sembiring (2012) and wardani (2012). on the other hand, it is consistent with wallace et al., (1994) who argues that financially healthy companies will provide more information than financially unhealthy companies. on the other hand, if liquidity is seen by the market as a performance measure, companies with low liquidity need to provide more detailed information to describe the weak performance of the company than those with high liquidity. th e results of this study indicate that there is an influence between liquidity and the completeness of voluntary disclosure, which means that companies with high liquidity have a good financial structure so that they will provide more information than those with low liquidity. this also means that the company indirectly shows its good performance to the public. the effect of listing age on the completeness of voluntary disclosure hy pothesis testing shows that the age of listing has no effect on the completeness of voluntary disclosure with a probability of 0.271. these results are consistent with soliman (2013) and ibrahim (2014). on the other hand, these results do not support the research of sehar & tufail (2014) and habbash (2016). according to habbash (2016), companies that have long been listed as public companies have incentives, abilities, and expertise to organize and present more information than those that are newly registered. 65 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 th e test results show that the age of listing and voluntary disclosure do not have a significant effect. this means that the completeness of information disclosure of a company does not depend on how long the company has been registered as a public company. indicators regarding information disclosure have been regulated by bapepam so that newly registered companies as public companies can follow the extent to which information must be disclosed. the effect of industry type on the completeness of voluntary disclosure. hy pothesis testing shows that the type of industry and the completeness of voluntary disclosure have a significant effect with a probability value of 0.039. the results are consistent with ibrahim (2014) and habbash (2016). ac cording to ibrahim (2014), the reputation and credibility of certain industries require companies to adopt voluntary disclosures that are more detailed than the required disclosures. habbash (2016) in his research states that in general, the level of voluntary disclosure is expected to differ in nature and extent in various sectors. companies in environmentally hazardous sectors such as the petroleum, chemical and fertilizer industries are expected to disclose more information voluntarily than in other industrial sectors because companies in these industrial sectors are under pressure from the public and environmental protection agencies. thi s study states that the type of industry affects the level of completeness of voluntary disclosure. this means that management is required to disclose more detailed information, especially in high profile industrial sectors to fulfill social interests and as a means of communication between company management and the community. according to the assumption of legitimacy theory that the company does not have the right to exist unless its value is considered to be in accordance with the society in general in which the company operates. according to shetata (2014), legitimacy theory is based on people's perceptions so that management must disclose information that can change the opinion of external users about the company. the effect of the proportion of share ownership on the completeness of voluntary disclosure. hy pothesis testing shows that the proportion of share ownership has no effect on the completeness of voluntary disclosure with a probability value of 0.242. these results are consistent with sembiring (2012), wardani (2012) and ibrahim (2014). this is because most public companies in indonesia still lead to a pattern of leadership that is controlled by the family, so that managers only act as managers to carry out the company's operational activities (bernardi et al 2009). 66 seran, a.m.i (2022). journal of business and behavioural entrepreneurship, 6(1), 51-68 conclusion following are the conclusions from the overall analysis and discussion of the research: the variables that have a significant influence on the completeness of voluntary disclosure are the variables of profitability, firm size, liquidity, and industry type. this means that the company will provide information voluntarily if it has high profitability, belongs to a large company, has high liquidity and is included in a high profile industry. variables that have no effect on the completeness of voluntary disclosure are leverage, listing age, and the proportion of share ownership. that is, if leverage is high, management will disclose incomplete information in the company's annual report. the completeness of information disclosure of a company does not depend on how long the company has been registered as a public company. the leadership pattern of most public companies in indonesia is controlled by the family, so that managers only act as managers to carry out the company's operational activities. suggestions first, the variables of leverage, listing age and the proportion of share ownership are not consistent with previous researchers, so there are still opportunities to be studied using different samples. second, the next researcher 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(2012). faktor-faktor yang mempengaruhi luas pengungkapan sukarela. jurnal akuntansi dan keuangan, 14(1), 1–15. 47 abstract the purpose of this study is to evaluate the training effectiveness on gitc by applying the four levels kirkpatrick model consisting of reaction, learning, behavior & results. this study is cross sectional, primary data was collected through interviews from different batches representing different levels of the kirkpatrick model. effectiveness of training at the different levels was being evaluated through construct/theme developed on the basis of literature review. for level one evaluation interviews were conducted from employees who had recently completed their training; for level 2,3&4 the respondents, who had completed same training about 3 months, 6 months and year earlier respectively. the results indicated that reaction of the participants were positive for training except duration was too short, secondly they have applied skills & knowledge which they had learnt from training. a positive consequence of the training is that most of the participants got promoted from their current designation with the improvement in their pay scales. thus, the soft skills trainings were effective with the participants desiring more opportunities to attend soft skills training session at least quarterly basis, to further improve their skills and enhance their knowledge users. keywords: training evaluation, kirkpatrick model, garuda indonesia training center, training received: 19 october ; accepted: 26 october 2020 ; publish; december 2020 how to cite: haratua gultom, c.s., madhakomala, r., hamidah. (2020). evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. journal of business and behavioural entrepreneurship, 4(2), 47-65. https:// doi.org/10.21009/jobbe.004.2.05 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center chandra s haratua gultom university state of jakarta email : chandra.sagul@gmail.com r. madhakomala university state of jakarta email : madhakomala@live.com hamidah university state of jakarta email: hamidah@unj.ac.id https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 48 introduction according to vemic (2007), the emergence of fierce competition in the external environment, complexity in work and innovative technological breakthroughs, and the uncertainty of turbulent communities, training needs are becoming common in indonesia. there is a gap between knowledge provided in formal schooling and required in business organization. in order to fill this gap training is required. training is a necessity for a company to take place. effective training is a training that can achieve an organizational goal, increase the ability of resources, and satisfy consumers and improve internal processes. knowledge is really a reliable source to deal within turbulent, uncertain and complex global environment. knowledge provides competitive advantage. complex business challenges have to be answered easily with special and selective knowledge gathered during training. this is the reason almost all companies are paying more attention to training. in relation to winning business competition, evaluation of training effectiveness is important considering the learning outcomes of a training can produce knowledge, abilities and attitudes possessed by cabin crew in conducting flight services. in addition, the effectiveness of the training carried out to provide knowledge, abilities and attitudes in the form of behavior that reflects service during the flight is also influenced by psychological factors such as: individual goals, individual learning, individual needs, and reinforcement received, while the non psychological factors are: facilities, materials and instructor teaching methods garuda indonesia training center ( gitc) is a training program facility for initial flight attendants and provides an opportunity for indonesia's best daughters to get international standard cabin crew education and training where all graduates can join garuda indonesia. initial flight attendant training program lasts for 2 months which is carried out every monday to saturday at 08.00 – 16.00 wib at gitc, jl duri kosambi 125, duri kosambi, cengkareng west jakarta. during this period, participants will receive material related to the stewardess profession in terms of safety, security, service, and personal development. after completing the training for 2 months, participants of the garuda flight attendant will enter the bridging program to get more specific training from garuda indonesia for approximately 21 days. if they can complete all the training well, all initial flight attendant graduates can join garuda indonesia flight attendants. in carrying out initial flight attendant training activities supported by a team of qualified instructors, competent in their fields and holding a letter of authorization (loa) gitc in addition to mastering the material in depth, the instructor team also uses a fun and learner-centered approach to creating a learning atmosphere productive and attractive. this training can provide and create competent air cabin crew performance so that they can win the competition in the aviation business. in addition to involving reliable instructors, the excellence of the quality of the initial flight attendant training lies in the existence of facilities and training media that provide comfort and real life environment for the trainees. the training held at the garuda indonesia training center (gitc) has met iso 9001 international standards. however, in order to be able to maintain these international standards, the garuda indonesia training center has collaborated with national and international agencies and institutions as well as aircraft manufacturing companies in conducting training to perfecting the capabilities and expertise of garuda indonesia employees. garuda indonesia training center (gitc) has complete facilities and infrastructure. facilities owned by the garuda indonesia training center include 50 classrooms, laboratories, demonstration rooms, aircraft interior mock ups which are practice rooms for flight attendharatua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 49 ants, swimming pools for wet drills used for flight safety training, b-737 aircraft simulators, b747, and airbus, an auditorium that can be used to accommodate large meetings (+ 500 people). in addition, the garuda indonesia training center (gitc) is also equipped with a dormitory for accommodation for trainees from outside the city and several sports facilities such as tennis courts, basketball courts and swimming pool. when someone has passed the flight attendant selection test on garuda indonesia airline, then immediately gets training at the gitc training center. training is given for 454 hours of study with 741 cabin crew graduation figures every year. the problem that is often faced by evaluators in conducting evaluations is the selection of a model that is considered the most appropriate for the program to be evaluated. the selection of an evaluation model is important because each program has different characteristics and has different assumptions, approaches, terminology, and logic of thinking. in this study the authors used kirkpatrick's evaluation model, because the problems to be assessed were the reactions of the participants in the initial flight attendant training program, program student behavior, program student learning outcomes, training program results in the form of skills, attitude, knowledge and performance. according to kirkpatrick, evaluation is defined as an activity to determine the level of effectiveness of a training program. in this model, evaluation is carried out through four levels of evaluation, namely reaction, which aims to determine the level of participant satisfaction with the implementation of the training program; learning aims to determine the level of change in knowledge, skills and changes in attitudes of participants after attending the training; behavior aims to determine the level of change in work behavior of training alumni after returning to their work environment; and the results which aim to determine the impact of changes in the work behavior of training alumni on the productivity level of company performance(fitzpatrick et al., 2009) literature review sanders (2011), has presented a new point of view of training, according to him, previously training was considered to be an expenditure, but now it is serve a role of an investment activity. janzeb and bashir (2012) says that organizations follows a modernization. to cope with this, organization need employees with updated skills & knowledge, and this can be done through training. according to aguinis and kraiger (2009) that organization not run in isolation or not only face local challenges but they work with different multinational organization, and these multinational bring global competitive culture and environment which affects the local economy and operating business entities. he also stated that training & development not only improves the individual capabilities or skills but also whole team and overall organization. training advances the individual skill which help in improving his performance in an organization as a result organizations effectiveness improves in society or in general. thus training of employee definitely play key role in enlightening the organization performance, well-being, profitability in a society. individual training results organization’s effectiveness. training is for improving, enhancing and updating the skill, knowledge & abilities to perform better. as challenges of external environment increases day by day which ultimately affect the internal customers as well (niazi, 2011). and planning put effectiveness in training, along with this participant’s selection, administrative support, venue, moderator or facilitator, and contents of training. training means equipping emharatua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 50 ployees with new or traditional methods or techniques or modules to translate information, knowledge & skills to practice it in an organization to improve overall effectiveness of organization. training is for current stage and development is for future stage (silvia, 1999). training is a part of prime objective of an organization. in some organization learning culture is their social responsibility. from various study it has been found that there is a link between organizational performance and training. training has strategic contribution in organizational goal (niazi, 2011). on the other hand silvia (1999), stated that training play a vital role by contributing to the nation’s human capital for better result organization should invest in improving hard and soft both type of skills. in addition to this, djaali and muljono define evaluation as the process of evaluating something based on standards or objectives that have been set, and then followed by decision making on the object being evaluated ( djaali & muljono, 2008). and planning put effectiveness in training, along with this participant’s selection, administrative support, venue, moderator/facilitator, and contents of training. on the other hand silvia (1999), stated that training play a vital role by contributing to the nation’s human capital. all training design, need analysis, implementation & evaluation has done by hr department. as hr is the policy maker, they design policy for betterment of company’s performance, and now training has become one of the part of hr policy. because it direct contributes to the employee performance, which leads to overall organizational performance (adralin, 2004). training directly contributing to employees career development organization focus on key position’s career development but according to him organization must emphasizes on fresh employee for their high ranking position in future, so that against organization’s this effort guaranteed loyalty, commitment, sincerity with the same organization. this is not written agreement but rather emotional & psychological commitment. in order to tackle with financially competitive & dominant market. as business environment is continuously fluctuating due to haphazardly changes taste, preferences, life style, more advance needs, in order to embark upon these condition organization must have competent and well equipped employees. this equipment of talent material and skills is incorporated in employees through training programs. according to the gronlund, evaluation is a systematic process for determining or making a decision and to what extend objectives or programs have been achieved (gronlund & linn, 1990). kaufman and thomas suggest that evaluation is a process used to assess ( kaufman & thomas, 1980). schriven defines evaluation as quoted by fitzpatrick, sanders and worthern, “evaluation as judging the worth or merit of something”(fitzpatrick et all, 2004). training is for improving, enhancing and updating the skill, knowledge & abilities to perform better. as challenges of external environment increases day by day which ultimately affect the internal customers as well (niazi, 2011). training means equipping employees with new or traditional methods or techniques or modules to translate information, knowledge & skills to practice it in an organization to improve overall effectiveness of organization. training is for current stage and development is for future stage (silvia, 1999). it was further explained that “evaluation as the identification of clarification and application of defensible to determine an evaluation object’s (worth and merit) in relation to those criteria” (fitzpatrick et al, 2004). from this description it can be concluded that the evaluation is essentially an effort to assess whether the results of the program carried out in accordance with existing criteria. training is a part of prime objective of an organization. in some organization learning culture is their social responsiharatua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 51 bility. from various study it has been found that there is a link between organizational performance and training. without evaluation, it will not be known how the condition of the evaluation object is in the design, implementation, and results. as an analysis tool for social studies, fitzpatrick stated that:evaluation is used for investigation and assessment methods, including (1). establishing standards for determining quality and deciding whether these standards are relative or absolute, (2). gathering relevant information, and (3) application of standards to determine quality, usefulness, effectiveness or meaning. this leads to recommendations that aim to optimize the object of evaluation and its relationship with the goal or help users determine whether the object of evaluation is worth adoption, continuation or expansion (fitzpatrick et al., 2004). according to arikunto, program evaluation is an effort to determine the level of implementation of a goal carefully by knowing the effectiveness of each component ( arikunto&jabar,2004). evaluation requires an assessment of the impact of the training program on attitudinal behavior in the short and long term. the measurement of the effectiveness of the assessment includes: a). reaction (reaction), namely how the participants feel about the program, b). learning (learning), namely the knowledge, skills, and attitudes obtained as a result of training, 3). behavior, namely the changes that occur at work as a result of training, 4). results (result), namely the impact of training on overall organizational effectiveness or achievement of organizational goals (simamora, 1997). according to moekijat (1993: 15) the training program is a process to determine whether there has been progress towards a training objective that has been determined using appropriate standards and costs. in the context of evaluating the effectiveness of the training program, evaluation on the level of reaction effectiveness is the assessment obtained through the training participants' perceptions of the implementation of the training both administratively and in terms of the process. research methods in general, this research is to assess and obtain information about program effectiveness, evaluation of program implementation and evaluation of program impact. this information is used to make alternative decisions and recommendations for the development, improvement and refinement of the initial flight attendant training program at the garuda indonesia training center. as an evaluative research, this study aims to explain the components that support the effectiveness and development of a program. the method used in program evaluation research uses the kirkpatrick model. the type of research used in this research is the type of quality research. this research is fundamental in nature and is interrelated between the relationship between reaction, learning, behavior and outcomes with the effectiveness of the initial flight attendant training program. fundamental is a concept that describes an event, and the circumstances that must be accounted for and communicating it to interested parties. the data collection technique in this study was carried out through a focus group discussion (fgd), which is a data collection technique that is generally carried out in qualitative research. focus group discussion is usually conducted at the evaluation stage of training levels 2,3, and 4 where the focus group discussion can dig up information that comes not only from one person. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 52 result and discussion 1. reaction level basically the level of reaction is a program evaluation of the training students' dissatisfaction with the various activities that have been followed. student reactions can determine the level of achievement of a goal rather than the training administration. the training implementation program is said to be successful if the training students are satisfied with the elements involved in the implementation process. the success of the learning process cannot be separated from the interest, attention and motivation of the training students in participating in the training. students learn better when they react positively to the learning environment. the reaction instruments in evaluating the reaction level are: a. student reaction to administration. the aim is to find out the training student's satisfaction with the success of the learning activity process, which is inseparable from the interest, attention and motivation associated with membership, the committee, accommodation, curriculum, consumption, and training facilities. b. student reactions to sources. the aim is to determine the satisfaction of training students with the learning process that is assessed from several aspects, such as the material provided, the facilities available, and the sources. the results of the assessment of the student's evaluation of the organizing committee on the components and average scores are: (a). participation (student discipline) 88.10; b). committee (service, discipline, cooperation with participants, service to resource persons, and attitudes towards resource persons) 90,50; c). accommodation (cleanliness and comfort) 88.30; d). curriculum (training schedule, training materials, training material benefits, and extracurricular activities) 89.50; e). consumption (menu and presentation) 86.10, and f). training facilities (classrooms, aids, and learning materials) 87,50. the average result of the overall evaluation of student reactions to the organizer was 85.7, including the "good" category. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 53 based on the evaluation of students' reactions to training, it can be said that it is effective. however, there are some that are of concern or not in accordance with student expectations, namely consumption, the availability of teaching materials and computers so that students do not need to move seats in completing their assignments. based on the results of observations in the field, it is found that students are quite active every session. however, there were a small number of students who looked sleepy in several sessions presenting the material, perhaps because of the coming month of ramadan. students are always present in every session and they are active in participating in the material presentation session. the results of the interviews indicated that students were generally quite enthusiastic about participating in the initial flight attendant training program at the garuda indonesia training center, jakarta. the results of the research from the students' evaluation of the resource persons in the "good" score were proven by the overall average score of 88.37. there were 2 resource persons, namely mr. yoga pratama and mrs. desmayanti. the components that are assessed are: a. in terms of knowledge, which includes the following indicators: teaching knowledge and skills, mastery of material, presentation systematics, use of methods, and learning aids. the average value obtained is 87.03 b. attitudes include the following indicators: ethics, attitudes, towards participants, how to answer participant questions, how to communicate, give motivation, time discipline, skills in dress, how to walk, and cooperation (team). the average value obtained is 87.76. so the overall student assessment of resource persons is 87.40 and is included in the "good" category. based on the results of interviews with students, data was obtained that the resource persons not only explained in theory about designing learning programs but also with examples that were applied through teaching practice in class. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 54 2. learning level at the learning level, evaluation of learning outcomes is carried out, namely the achievement of learning objectives and learning outcomes that are expected from a learning process. the learning outcomes that are tested must be in accordance with the learning subjects taught and the objectives of the learning process in the initial flight attendant training program at the garuda indonesia training center, jakarta. in measuring the effectiveness of learning, there are three aspects that need to be measured, namely: attitudes, knowledge, and skills. at the learning stage, it is hoped that changes will occur from program students in these three aspects and in accordance with the objectives of the training program. without a change in attitude, an increase in knowledge, or an improvement in skills in students, the program can be said to be a failure. measurement of learning outcomes (learning measurement) is as follows: a). change of attitude, b). knowledge that has been learned, and 3). improved skills. determination of graduation of training students based on evaluations carried out during the evaluation process of the implementation of the initial flight attendant training program at the garuda indonesia training center jakarta, is carried out from several aspects, namely: a). assessment of student attitudes by 30%, b). assessment of student knowledge by 40%, c). assessment of student skills by 30%. the determination of graduation qualifications for initial flight attendant training students at the garuda indonesia training center, jakarta which is carried out by the organizing committee and resource persons from the directorate of airworthiness and aircraft operations (dkuppu) is above 76 (seventy six). evaluation at the learning stage aims to measure the level of students' understanding of the learning material or the extent to which students absorb the initial flight attendant training program at garuda indonesia training center jakarta on the material provided in terms of attitudes, knowledge and skills. the initial flight attendant training program is said to be successful if the three aspects have improved by comparing the measurement results before and after the learning process. training program students are judged by the organizing committee and resource persons in 3 (three) aspects, namely: haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 55 in order to facilitate the placement of key positions of the company by applying succession management patterns to improve corporate success. one pattern of succession management carried out by company leaders should involve elements in the organisation that involves employees so that they are also responsible for the input they propose if the proposal becomes part of the decision taken. thus, employees are also required to carry out their responsibilities in carrying out the decisions taken, 2. organisational commitment and work motivation of employees need to be grown by the leadership of the company so that employees feel they have the company where they work. with high work commitment and motivation they will continue to fight for the interests of the company and encourage the carrying out of tasks so that this will have an impact on improving employee performance. besides giving awards and bonuses, it should distinguish between those employees who have low work motivation and those who have high work motivation, done fairly and correctly, so that employees are more precise in making decisions in carrying out work so that it has an impact on increasing corporate success and 3). companies need to do the design pattern of learning succession management, so that managers are able to make adjustments to the pattern of succession management in accordance with the situation faced by employees by assessing the working position in the future, which is done by assessing the work and the requirements of competence in leadership positions in the future. decision makers must try to assess future work requirements and competencies to be aligned with the strategic direction of the organisation. future leaders must prepare ways to cope with changes and strategic objectives of the organisation. the company always assesses employee performance against prospective successors from the contributions made. 3. behavior level behavior evaluation is carried out to identify the extent to which the material in training can be applied to the flight attendant student's job. there are 4 (four) conditions needed to apply behavior change, namely (kirkpatrick, 2006): 1). someone must have a desire to change, 2). someone must know what to do and how to do it, 3). one must work in the right work environment, 4). one has to get rewarded because students change. behavior evaluation focuses on changes in participant behavior after attending the training. assessment is done after the participants return to their respective workplaces. because what is assessed is the behavior of the participants after returning to their respective workplaces, then level 3 evaluation can be called an evaluation of the outcome of the training activity. behavior evaluation can be done by comparing behavior before and after training, as well as by conducting a survey or interviewing trainers, superiors and subordinates of training participants after returning to the workplace. the following are guidelines for behavior evaluation, namely: allocating time for changes in participant behavior at work, evaluating before and after training if possible, surveying and or interviewing one or more participants, supervisors, or supervisors, co-workers and anyone who frequently observes their behavior , repeating evaluations at appropriate times, weighing costs and benefits. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 56 at the behavior level, an assessment of the alumni of the flight attendant training program at the garuda indonesia training center jakarta is conducted to determine changes in behavior after attending training and returning to their respective assignments. based on the results of interviews that have been conducted, it was found that alumni showed very significant changes. these changes occur in discipline, attendance, student appearance, independence, attitudes in teamwork or in groups that are more cooperative, as well as speed and accuracy in completing tasks more quickly and on time, all of which have had very good changes. the level of discipline was good before joining the training, but there were also those that had not changed after the training. in reviewing the results of interviews with students, it was clear that students were very enthusiastic and their behavior got better. it can be said that the actualization task given to students of the initial flight attendant training program at the garuda indonesia training center jakarta is fully carried out. various responses and behavioral indicators in the flight attendant work unit can be categorized as good, meaning that after flight attendant training at the garuda indonesia training center jakarta, students can carry out their duties according to actualization tasks. 4. impact level the evaluation of the training program aims to get good results, such as: an increase in quality, productivity, or level of safety. evaluation at the impact level aims whether the training program is useful in achieving company goals. the final result of the impact evaluation is customer satisfaction (customer satisfaction), an increase in student flight attendant work. evaluation of the impact of training is focused on: a). cost reduction, b). decreased turnover and coworker absence, and c). increased student morale. as a student or alumnus of a flight attendant training student at the garuda indonesia training center. guidance and direction from alumni to peers is needed, not only for the addition of knowledge but also for improvement, especially in terms of learning and behavior. the results of interviews with program instructors and students with alumni showed clearly the impact of the initial flight attendant training program at the garuda indonesia training center. the effectiveness of kirkpatrick's model training program is to measure the extent to which training affects the achievement of the training program objectives which impacts on the achievement of individual goals for the place of duty. it should be noted that the initial flight attendant training at the garuda indonesia training center is not only on knowledge, but also in general students' attitudes and skills so that in improving their task performance it is necessary to specifically assess the head of gitc and their colleagues with the most important indicator is the actualization task report. self which was given by human capital management jktidga pt garuda indonesia (persero) tbk. based on the evaluation findings that have been described, it appears that there is an increase in the performance of student alumni in better job systematics. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 57 discussion in creating a program it must be based on needs (need analysis), the point is that training is an important investment in strategies that lead to internal promotion, employee planning sequences. need assessment is not a result but a specific activity in making certain decisions. needs analysis is a constructive and positive tool in making changes, such as changes based on rational logic, functional changes that can meet the needs of groups and individuals. need analysis is a way or method to find out the difference between the conditions you want / should (should be / ought to be). training needs analysis can be divided into three parts, namely: (1) analysis at the organizational stage where training can and should be carried out. the focus is on the company as a whole and the analysis is related to the objectives of the company, its effectiveness indicators and the company's organizational climate; (2) analysis at the job level using data collection. the analysis will determine what standards are needed, what knowledge, skills and attitudes are needed to achieve these standards; (3) focus on person / personal analysis. personal analysis was conducted to answer the question: who needs training? and what kind of training will you do? for that it takes time, in order to make a complete diagnosis of each employee's ability. efforts need to be made to obtain this information through achievement tests, observations, and interviews. needs analysis is a scientific activity in identifying supporting and inhibiting factors (gaps) in the learning process in order to achieve learning goals (goals and objectives) which lead to improving the quality of student flight attendant learning. the need assessment method is designed to be able to measure the level of gaps that occur in student learning from what is expected and what has been obtained. need assessment is carried out in stages including preparation, data collection, data analysis and interpretation, dissemination and report preparation. according to morrison, the function of need assessment is as follows (morrison, 2001): a. identify needs that are relevant to the current job or task b. identify urgent needs related to financial, security, or other problems that interfere with the work and learning environment of flight attendant students c. presenting priorities in choosing action (reaction) d. provide base data to analyze the effectiveness of flight attendant student learning. while the steps of the need assessment are as follows (morrison, 2001): a. planning, what needs to be done is to classify the flight attendant students, who will be involved in the activities and how to collect them. b. data collection, what needs to be done is to consider the size of the sample in the distribution (spread). c. data analysis, what needs to be done is to collect data and then analyze it with consideration of their needs d. making a final report, including: objective analysis, process analysis, analysis of results using tables, and recommendations related to data. e. formulate objectives in accordance with the training (set learning objectives) the benefits obtained from a training held by the company as stated by flippo (1988:215) are as follows: development programs planned to provide benefits to people in the form of increased productivity, increased morale, reduced costs, and stability and flexibility (flexibility) of the greater person to adapt to changing external requirements. the success of a training program is determined by five components, namely (as'ad, 1987): haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 58 a. training or development goals: every training must have clear objectives that can be broken down into observable and measured behaviors in order to know the effectiveness of the training itself. b. trainer (trainer): the trainer must be able to teach training materials with a certain method so that the participants will acquire knowledge of the skills and attitudes needed in accordance with the set sasaian). c. exercise materials: training materials must be arranged based on the established training objectives d. training methods (including tools): after the material from the exercise is determined, the next step is to formulate an appropriate training method. e. participants (trainees): participants are a fairly important component, because the success of a training program also depends on the participants. f. another goal is one that is meaningful as a goal, both aimed at organizations and community groups, namely emphasizing the success of a program in the short term that we can manage. in training, it is more often referred to as specific learning objectives, for example: after completing a prime subject or certain skill the participants can formulate the meaning of excellent service and be able to carry it out. 2. make a program schedule according to the time needed (schedule the program at the right time) a program schedule is a timetable showing work in a project, program, or portfolio. schedules can be made for different aspects of the job and there is an understanding of important communication with all team members and stakeholders. the objectives of program schedule management are: 1) to determine the time scale in work, 2). calculating the profit demand for resources, 3). shows schedule reports in a format suitable for different stakeholders. the steps in managing the program schedule can be seen in figure 1. planned started work identification time sche duled resource scheduled reharatua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 59 scheduling starts with the identification and definition of the work that must achieve the goals. the factors that influence the way the schedule is presented are as follows: a. the level of detailed scheduling requested b. should the schedule information be combined with resource information and / or the scope of the work context, hearings for information 3. the program location must be in accordance with the time and place of training (hold the program at the right place with the right amenities) the implementation of the program is situational in the sense that the calculation of organizational interests and the needs of the participants may differ in accentuation and intensity which is ultimately reflected in the use of techniques in the learning process. implementing training and development programs in principle carrying out the teaching and learning process means that there are trainers who teach a subject. therefore whether or not a teaching technique is appropriate depends on the highlighted considerations, such as savings in funding, available materials and facilities, the ability of participants, the ability of the trainer and the learning principles used. placement of work personnel within the scope of an organizational unit greatly determines the continuity of employees in continuing their careers, among others by paying attention to the following matters: 1). is the worker suitable to be placed in the workplace, 2). are workers able to carry out their duties well, 3). does the employee get sympathy from other friends, 4). are workers able to adapt, 5). are workers able to maintain a balance between personal and official needs. workers will be able to do their job well if there are adequate work support facilities including work environment and work facilities. work facilities are work tools that include work equipment, materials, and facilities / infrastructure that can affect work implementation by taking into account: 1). use of work facilities, 2). intellectual 4. can bring in the right people to assess and evaluate the training program (invite the right people to attend) training evaluation is a part that should be integral to the overall training program. training evaluations are arranged systematically to measure the level of success of the training program being organized. one of the evaluation techniques related to behavior is: a. select competent instructors (select effective instructors) b. using the right technique or method (use effective techniques and aids) c. implement the program properly (accomplish the program objectives) d. can meet the expectations of all customers (satisfy the participants) e. can evaluate programs (evaluate the program) the following is an analysis of the 2015-2019 budget realization report based on variance, trend, growth ratio and efficiency ratio. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 60 table 1. budget and realization of garuda indonesia training costs conclusion based on the results of research and discussion of the evaluation of the effectiveness of the initial flight attendant training program, a conclusion can be drawn as follows:1) reaction stage,,evaluation at the reaction stage showed that the training program students were very satisfied with the service from the organizing committee and resource persons. what needs to be considered is the completeness of training material (modules) for each student, 2) learning stage. evaluation at the learning stage shows that flight attendant students are very enthusiastic in participating in the learning process, attitude assessment (behavior, discipline, attendance, cooperation, participation and responsibility), knowledge (pre-test and post-test scores) and skills are quite satisfying. for the success of all training students passed with certificates. however, it is necessary to improve the ability of participants in implementing the use of emergency tools in an effective way, so that in completing the given task they do not experience obstacles, 3) behavior stage, evaluation at the behavior stage shows the alumni of the program have experienced a change in behavior. discipline in attendance, appearance in dress, independence, attitude in team work (team work) and speed and accuracy in completing tasks, all of which have changed for the better, 4) impact stage, evaluations at the impact stage indicate changes in performance. alumni of the program have applied the knowledge that has been received, so that their knowledge will increase for the better. not only the alumni themselves but also their colleagues. the contribution and assistance as well as the role of program alumni in the progress of this training program are very influential in improving student learning outcomes for flight attendants. reference alkin, m. c., & wholey, d. c. a. (1969). model for educational evaluation. 4. anonim. (n.d.-a).kirkpatrick evaluation model. retrieved march 9, 2013, from http:// bussinessballs.com/kirkpatricklearningevaluationmodels.htm anonim. (n.d.-c). kinerja. http://id.wikipedia.org/wiki/kinerja anonim. (n.d.-d). learning. http://id.wikipedia.org/wiki/perilaku anonim. (1991). joint committee on standards for educational evaluation, standar for evaluation of educational progress, project, and materials cost budget realization year actual cost plan cost 2015 231.958.566. 905 225.004.635.175 2016 232.235.208.122 177.247.545.020 2017 233.677.907.237 178.709.565.471 2018 240.135.328.250 215.114.215.625 2019 241.517.295.664 223.214.345.425 source of data processed haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 61 (terjemahan rasdi ekosiswoyo). ikip semarang press. arifin, z. (2011). learning evaluation rosdakarya youth. https://doi.org/979-692-956 -2 arikunto, s., & jabar, c. s. a. (2004). evaluation of educational programs practical theoritical guidelines for students and educational practitioners. pt. bumi aksara. barnes, j. g. (2003). customer relationship management secrets. translate andreas winardi. andi. benardin, h. j., & russel, j. e. a. (1993). human resources managemen: an experiental approach. mc.graw-hill book co. brinkerhoff, r. o., brethower, d. m., hluchyj, t., & nowakowski, j. (2014). program evaluation: a practitioner’s guide for trainers and educators: sourcebookcasebook. kluwer-nijhoff. chen, h. t. 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(2004). program evaluation alternative approaches and practical guideline. pearson education inc. fletcher, s. (2005). competency based assessment techniques ramelan. bhuana ilmu populer. gasperz, vincent (2012). all in one talent management, london: vinchristo publication gerson, r. f. (1995). measuring customer satisfaction. crisp publication. gomes, f. c. (2003). human resource management. andi. gronlund, n. e., & linn, r. l. (1990). measurement and evaluation in teaching. macmillan publishing company. hanggraeni, d. (2011). organizational behavior. publishing institute, faculty of economics ui. hasan, s. h. (2009). curriculum evaluation. remaja rosda karya. hasibuan, m. (2001). human resource management. bumi aksara. isaac, s., & michael, w. b. (1981). handbook in research and evaluation. edits. kaufman, r., & thomas, s. (1980). evaluation without fear. new viewpoints. kirkpatrick, d. l., & kirkpatrick, j. d. (2005). evaluating training programs the four levels. berret – koehler publishers, inc. koswara, e. (1989). motivation teory and research. angkasa. madaus, g. f., scriven, m. s., & stufflebeam, d. l. (1986). evaluation models : viewpoints on educational and human services evaluation. kluwer-nijhoff. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 62 mangkunegara, a. a. a. p. (2010). hr performance evaluation. pt refika aditama. marvin c. alkin (2004). evaluation roots; tracing theorist's views and influences. london: sage productions, inc moeheriono. (2009).competency based performance measurement. ghalia indonesia. moekijat. (1990).evaluation of training in order to increase company productivity. publisher mandar maju. mudrofin. (2010). program evaluation, preferred text for beginners. laksbang pressindo. muhaimin, s., & prabowo, s. l. (2009). education management: aplication in school/ madrasah development plans. kencana prenada media group1. mujiman, h. (2009). independent learning based training management. pustaka pelajar. musfah, j. (2011). improving teacher comptence through training and learning resources teory and practec. kencana. nasucha, c. (2004). public administration reformation: teory and practec. grasindo. nuryana, m. (2009). program evaluation. http://www.depsos.go.id owen, j. m. (2006). program evaluation, forms and approaches. allendanunwin. panggabean, m. s. (2004).human resources management. ghalia indonesia. patton, m. q. (2009). qualitative evaluation methods (translate by budi puspo priyadi). pustaka pelajar. purwanto, & suparman, a. (1999). evaluation of education and training program. stia-lan press. rae, l. (2005). techniques to evaluate translation training and development. moh. alex hadjid. bhuana ilmu populer. rangkuti, f. (2003). measuring customer satisfaction. pt gramedia pustaka utama. rivai, v., & mulyadi, d. (2009).leadership and organizational behavior. pt rajagrafindo persada. royse, d., thyer, b. a., & pagett, d. k. (2010). program evaluation an introduction. wadsworth. sagala, s. (2007).strategic mangement in improving the quality of education. cv. alfabeta. saydam, g. (2006). built in training: the right way to develop hr professionalism. remaja rosdakarya. sedarmayanti. (2009).human resource management. bureaucratic reform and civil service management. pt refika aditama. silberman, m. l., & auerbach, c. (2014). active training a handbook of technique, designs. case examples, and tips. pfeifer. simanjuntak, p. j. (2005). management and performance evolution. publishing institute, faculty of economics, university of indonesia. spaulding, d. t. (2014). program evaluation in practice core consepts and examples for decision and analysis. jossey bass inc. stufflebeam, d. (2000). models viewpoints on educational and human services evaluation, second edition. kluwer academic publishers. stufflebeam, d. l., & shinkfield, a. (2007). evaluation theory, models, and applications. john willey & sons, inc. stufflebeam, d. l., & shinkfield, a. j. (1986). systematic evaluation. kluwer-nijpoff publishing. thacker, p. n. b. j. (2012). efective training. prentice hall. tracey, j. b., & tews, m. j. (1995). training effectiveness: accounting for individual characteristics and the work environment. the cornell hotel and restaurant adharatua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 63 ministration quarterly. 36(6), 36–42. https://doi.org/https:// doi.org/10.1177/00108804950360 0615. alkin, m. c., & wholey, d. c. a. (1969). model for educational evaluation. 4. anonim. (n.d.-a).kirkpatrick evaluation model. retrieved march 9, 2013, from http:// bussinessballs.com/kirkpatricklearningevaluationmodels.htm anonim. (n.d.-c). kinerja. http://id.wikipedia.org/wiki/kinerja anonim. (n.d.-d). learning. http://id.wikipedia.org/wiki/perilaku anonim. (1991). joint committee on standards for educational evaluation, standar for evaluation of educational progress, project, and materials (terjemahan rasdi ekosiswoyo). ikip semarang press. arifin, z. (2011). learning evaluation rosdakarya youth. https://doi.org/979-692-956 -2 arikunto, s., & jabar, c. s. a. (2004). evaluation of educational programs practical theoritical guidelines for students and educational practitioners. pt. bumi aksara. barnes, j. g. (2003). customer relationship management secrets. translate andreas winardi. andi. benardin, h. j., & russel, j. e. a. (1993). human resources managemen: an experiental approach. mc.graw-hill book co. brinkerhoff, r. o., brethower, d. m., hluchyj, t., & nowakowski, j. (2014). program evaluation: a practitioner’s guide for trainers and educators: sourcebookcasebook. kluwer-nijhoff. chen, h. t. (2005). practical program evaluation: assessing and improving planning, implementation, and effectiveness, preventing chronic disease. sage publication. cronbach,l. toward reform of program evaluation aims, methods, and institutional arrangements (1980). san fransisco: jossebass davidson, e. j. (2005). evaluation methodology basics : the nuts and bolts of sound evaluation. sage publication. davis, e. (2005). mandatory book for managers how to organize training, translate ramelan. pt. buana ilmu populer. dessingger, j. c., & moseley, j. l. (2004). confirmative evaluation: practical strategy for valuing continous improvement. wiley. dessler, gary (2011). human resource management, england: pearson education limited dimiyati (2013). learn and learning jakarta: rineka cipta djaali, & muljono, p. (2008). measurement in the field of education. pt.gramedia pustaka utama. fitzpatrick, j. l., sanders, j. r., & worthen, b. r. (2004). program evaluation alternative approaches and practical guideline. pearson education inc. fletcher, s. (2005). competency based assessment techniques ramelan. bhuana ilmu populer. gasperz, vincent (2012). all in one talent management, london: vinchristo publication gerson, r. f. (1995). measuring customer satisfaction. crisp publication. gomes, f. c. (2003). human resource management. andi. gronlund, n. e., & linn, r. l. (1990). measurement and evaluation in teaching. macmillan publishing company. hanggraeni, d. (2011). organizational behavior. publishing institute, faculty of economics ui. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 64 hasan, s. h. (2009). curriculum evaluation. remaja rosda karya. hasibuan, m. (2001). human resource management. bumi aksara. isaac, s., & michael, w. b. (1981). handbook in research and evaluation. edits. kaufman, r., & thomas, s. (1980). evaluation without fear. new viewpoints. kirkpatrick, d. l., & kirkpatrick, j. d. (2005). evaluating training programs the four levels. berret – koehler publishers, inc. koswara, e. (1989). motivation teory and research. angkasa. madaus, g. f., scriven, m. s., & stufflebeam, d. l. (1986). evaluation models : viewpoints on educational and human services evaluation. kluwer-nijhoff. mangkunegara, a. a. a. p. (2010). hr performance evaluation. pt refika aditama. marvin c. alkin (2004). evaluation roots; tracing theorist's views and influences. london: sage productions, inc moeheriono. (2009).competency based performance measurement. ghalia indonesia. moekijat. (1990).evaluation of training in order to increase company productivity. publisher mandar maju. mudrofin. (2010). program evaluation, preferred text for beginners. laksbang pressindo. muhaimin, s., & prabowo, s. l. (2009). education management: aplication in school/ madrasah development plans. kencana prenada media group1. mujiman, h. (2009). independent learning based training management. pustaka pelajar. musfah, j. (2011). improving teacher comptence through training and learning resources teory and practec. kencana. nasucha, c. (2004). public administration reformation: teory and practec. grasindo. nuryana, m. (2009). program evaluation. http://www.depsos.go.id owen, j. m. (2006). program evaluation, forms and approaches. allendanunwin. panggabean, m. s. (2004).human resources management. ghalia indonesia. patton, m. q. (2009). qualitative evaluation methods (translate by budi puspo priyadi). pustaka pelajar. purwanto, & suparman, a. (1999). evaluation of education and training program. stia-lan press. rae, l. (2005). techniques to evaluate translation training and development. moh. alex hadjid. bhuana ilmu populer. rangkuti, f. (2003). measuring customer satisfaction. pt gramedia pustaka utama. rivai, v., & mulyadi, d. (2009).leadership and organizational behavior. pt rajagrafindo persada. royse, d., thyer, b. a., & pagett, d. k. (2010). program evaluation an introduction. wadsworth. sagala, s. (2007).strategic mangement in improving the quality of education. cv. alfabeta. saydam, g. (2006). built in training: the right way to develop hr professionalism. remaja rosdakarya. sedarmayanti. (2009).human resource management. bureaucratic reform and civil service management. pt refika aditama. silberman, m. l., & auerbach, c. (2014). active training a handbook of technique, designs. case examples, and tips. pfeifer. simanjuntak, p. j. (2005). management and performance evolution. publishing institute, faculty of economics, university of indonesia. spaulding, d. t. (2014). program evaluation in practice core consepts and examples for decision and analysis. jossey bass inc. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 65 stufflebeam, d. (2000). models viewpoints on educational and human services evaluation, second edition. kluwer academic publishers. stufflebeam, d. l., & shinkfield, a. (2007). evaluation theory, models, and applications. john willey & sons, inc. stufflebeam, d. l., & shinkfield, a. j. (1986). systematic evaluation. kluwer-nijpoff publishing. thacker, p. n. b. j. (2012). efective training. prentice hall. tracey, j. b., & tews, m. j. (1995). training effectiveness: accounting for individual characteristics and the work environment. the cornell hotel and restaurant administration quarterly. 36(6), 36–42. https://doi.org/https:// doi.org/10.1177/00108804950360 0615 wholey, j. s., hatry, h. p., & newcomer, k. e. (1994). handbook of practical program evaluation. jossey bass inc. widoyoko, e. p. (2009). evaluation of learning (practical guide for educators and prospective educators). pustaka pelajar. wirawan. (2011). evaluation : teory, model, standart, aplikation and profesion. rajawali press. worthen, o., & james, r. s. (1987). educational evaluation: alternative approaches and guidelines. longman inc. haratua gultom, c.s., madhakomala, r., hamidah. (2020). journal of business and behavioural entrepreneurship, 4(2), 47-65 evaluation of the effectiveness of the initial flight attendant training program in garuda indonesia training center. https://doi.org/10.21009/jobbe.004.2.05 https://doi.org/10.21009/jobbe.004.2.01 1 factors effecting intention to leave at fajar surya lukmansyah rifai a. state university of jakarta email: lukmansyahrifaiamirudin_7647157949@mhs.unj.ac.id madhakomala state university of jakarta wibowo university prof. dr. moestopo abstract turnover is a level of employee exit in a company. this research aims to develop an impact strategy model of job insecurity, career development opportunity, work involvement and work engagement on turnover intention. quantitative methods are used ini this research. the sample consists of 150 employees with a managerial level. the sample criteria in this research are permanent employees and have worked for at least 3 years. data collection techniques by distribution questionnaires directly to all samples. the data analysis used is sem-pls (structural equation modeling partial least square). the results showed that job insecurity, career development opportunity and work engagement have significant influence on turnover intention. career development opportunity and work engagement have negative and significant impact on turnover intention, while job insecurity has negative and significant impact on turnover intention. job insecurity and career development opportunity mediated by work engagement have significant influence on turnover intention. meanwhile, work engagement as mediating variable has no significant impact on turnover intention. keywords: job insecurity, career development opportunity, employee involvement, employee engagement, turnover intention. received: 5 january 2022 ; accepted: 25 october 2022 ; 2 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 how to cite: rifai, l., et. al (2022). factors effecting intention to leave at fajar surya. journal of business and behavioural entrepreneurship, 6(2), 1-11. https://doi.org/10.21009/jobbe.006.2.01 introduction the existence of employees greatly affects the growth of the company. the rapid turnover of employees will cause financial losses; as well as moral problems in employees who are still working. flippo (in fahrizal, 2017) once said that the ideal employee turnover is below 2% in a year. however, the ideal percentage may vary from industry to other one; and from company to other one. it is not adequate for the company to simply judge the level of employee turnover on these standards alone, because employee turnover, which is still considered ideal based on these standards, has a significant effect on the company's bottom line. employee intention to leave is a serious problem for all companies, spesifically for companies whose business is in the field of hutan tanaman industri (hti, industrial plantation forest) whose physical nature of work still relies on the presence of employees, moreover the remote factor of the work location deep in the forest areas makes dependence on employees be even higher. mathis, et al. (2011) describes employee intention to leave is the tendency or intention of employees to stop working or move from their own jobs voluntarily according to their own choices. based on the data that researcher have observed in the last 3 years (2018-2020), it shows that employee turnover rate is high (flippo, in fahrizal, 2017). this can be seen in table 1. below. table 1 employee turnover rate, 2018 – 2020. indicator 2018 (ytd desember) 2019 (ytd desember) 2020 (ytd desember) turnover rate (at good performer, %) 17.7 8.4 26.4 turnover rate (at managerial level, %) n/a 10 12.6 source : qpr management dashboard & sap (2021). 3 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 furthermore, the researcher recapitulated the exit interview conducted by corporate hrd in 2020 and obtained data regarding the reasons for employees to resignation. this can be seen in table 2. below. tabel 2 reasons for employees to resignation, 2020 reason total % availability career development at another place. 15 25% lack of participation & involvement in the company’s business processes. 13 22% anxiety & uncertainty of company’s operation sustainability. 11 18% family reasons. 4 7% pension. 3 5% continue education. 2 3% benefit reasons. 2 3% heavy workload 1 2% other reason 9 15% total 60 100% source : exit interview recap 2020 (2021). based on the data in table 2. it appears that availability career development opportunities in other companies, the lack of employee involvement in the company's business processes and the emergence of anxiety about the company's operational uncertainty are the three biggest reasons employees decide to leave the company. employees intention to leave occurs when employees are dissatisfied with the company they work for (matland, 1995; rusbult, farrell, rogers, & mainous iii, 1988; rusbult, zembrodt, & gunn, 1982). price and mueller (dong-hwan, et al., 2012) state that the desire of employees to leave their jobs is influenced by several factors, including career development opportunities, promotion and general training opportunities, supervisor support, co-worker support and fair in distribution. pasewark and strawser (in iskandar, et al., 2021) describe that the employee's desire to leave is influenced by a feeling of being threatened by the uncertainty of sustainability in working at the company as well as powerlessness in overcoming these problems, which can be seen in the four predictor variables, namely role conflict, role ambiguity, locus of control and organizational change. meanwhile, sumarto (2009); faslah (2010); simanjuntak & rahardja (2013) and arif (2018) describe that employee involvement in various company’s business activities up to decision making has been proven to be able to discourage employees from leaving. mobley (halimah, et al, 2106) describes that employee engagement is one of the predictors of employees staying in their company. those who have high loyalty, high commitment, and can interpret their work well are usually followed by high work engagement (geldenhuy, 2014). 4 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 from previous studies, relatively few topics have developed a strategy model with a focus on the influence of the variables that the researcher observed. moreover, this research more interesting considering that the hti industry still relies on the presence of a high number of employees, moreover, the remoteness of work locations in deep-in forest areas makes dependence on employees even higher. given the importance of the problem in this study, the researcher limits it to factors of job insecurity, career development opportunities, employee involvement and employee engagement which are suspected to affect turnover intention. this study aims to create a strategy model the effect of the observed variables on turnover intention. research method quantitative methods are used in this study. the population is 165 employees with superintendent and department head levels, hereinafter referred to as managers. the sample criteria in this study are manager level employees who are permanent employees and have worked at least 3 years in the company. of the population who meet these criteria amounted to 150 people. data collection technique by distributing questionnaires directly to all samples located in operational locations, regional office and head office. the research was conducted from june 2021 to december 2021 starting from research permits, testing instruments, perfecting research instruments to the stages of data collection, analysis and writing of research results. analysis of the data used is sem-pls (structural equation modeling partial least square). figure 1. research model respondent’s profiles. based on gender, there are 92.6% male managers. ninety-nine managers are 40 years of age or older. most of the managers, 96 of them, had more than 6 years of service. all managers have a bachelor's degree. based on this data, they are highly educated and have sufficient knowledge to become managers. in addition, their work experience supports their performance. prior to working as managers, most of them worked in similar businesses, so they understand the state of the industry's business. 5 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 results and discussion the results of outer and inner models. based on the results of the loading factor, not all indicators meet the value > 0.6 so that the model is recalculated so as to produce a new outer loading value that meets the requirements to be designated as a loading factor (ghozali, 2014). the minimum ave (average variance extracted) value is 0.5. the ave value in this study is above 0.5. therefore, this value is valid. the value of composite reliability is above 0.6. consequently, it can be concluded that this value is reliable. the value of r-squares adjusted, which is a result of overall or combined data, is above 0.67. according to ghozali view (2014), this r-squares adjusted value indicates that the research model is strong. in other words, the influence of exogenous latent variables (job insecurity, career devepment opportunity, employee involvement, employee engagement) has a substantial influence on endogenous latent variables. table 3 results of outer and inner models of turnover intention variables ave composite reliable r 2 adjusted turnover intention 0.846 0.943 0.966 job insecurity 0.917 0.957 career development opportunity 0.844 0.942 employee involvement 0.629 0.765 employee engagement 0.557 0.683 0.698 source : primary data, processed smartpls (2021). 6 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 figure 2. path coefficient result for direct effect figure 3. path coefficient result for indirect effect interesting findings in this study reveal that employee work engagement plays an important role in reducing the desire of employees to leave their jobs. job insecurity and career development opportunities also require the mediation of employee engagement to reduce employee turnover intention. this finding clarifies the role of employee's job engagement as a mediation of employee's turnover intention. when companies detect high turnover of employees, the role of employee engagement becomes important because it negotiates job insecurity and career development opportunities. as long as managers are concerned about losing their jobs and are powerless to deal with the problem, their emotional and intellectual attachment to the company will mediate their desire to leave their jobs. as long as managers have the opportunity to improve their work results thereby creating career opportunities, job attachment to the company will mediate their desire to leave work. what is interesting is that the job involvement factors are not relevant here. it can be interpreted that the practices of involving employees in various programs such as continuous improvement programs and business problem solving initiatives, application of work management systems, sharing information, and involvement in decision making, do not have a significant effect on mediating work engagement and ultimately on employees turnover intention. there is no guarantee that employee involvement will result in employee loyalty to the company. job insecurity is positively significant to turnover intention. the results of this study indicate that job insecurity has a positive and significant effect on employees’s turnover intention. an employee who experiences the threat of losing his job, career uncertainty, potential for being laid off and feeling helpless due to changes in certain practices in the workplace and uncertainty about their role at work, can cause moral problems as well as undermine employee motivation. these problems have an effect on low trust in the company and eventually create a great desire to find a new job. 7 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 the results of this study support the results of previous research conducted by ieva urbanaviciute, et.all (2018), hyo sun jung, et.all (2018) dan neng siti solihat, et.all (2021). career development is negatively significant to turnover intention. the results of this study indicate that career development opportunities have a negative and significant effect on employees turnover intention. an employee who gets the opportunity to develop a career at the company will try to increase work productivity as well as high performance so that it can reduce his desire to move. the results of this study support the results of previous research conducted by tong wen, et.all (2017), lucia, et.all (2017) dan adnan, et.all (2019). employee involvement is negatively insignificant to turnover intention. the results of this study indicate that employee work involvement has no significant effect on employees’s turnover intention. the practices of involving employees in various programs in the company, such as continuous improvement programs and business problem solving initiatives, application of work management systems, sharing information, and involvement in decision making, do not have a significant effect on the willingness of employees to leave their jobs. there is no guarantee that employee engagement will result in a turnover rate. the results of this study did not support the results of previous research conducted by mi yu, et.all (2018), soojin kim, et.all (2017) dan emeka smart oruh, et.all (2020). the results of this study support the results of previous research conducted by sumant (2001) which states that the management by objective program and participative decision making process does not provide guarantees to employee turnover rates. employee engagement is negatively significant to turnover intention. the results of this study indicate that employee work engagement has a negative and significant effect on the employee's turnover intention. employees who have an attachment to the company will be emotionally and intellectually committed to the company and will give their best effort beyond what is targeted at the job. job engagement provides positive benefits not only for employees but also for the company. these positive benefits will be seen in better performance, preventing physical and mental fatigue (burnout), and reducing employee turnover. the results of this study support the results of previous research conducted by nivethitha santhanam, et.all (2020), santhanam, n, et.all (2019) dan park, kathleen a, et.all (2019). job insecurity is negatively significant to employee engagement. however, it is significant to turnover intention. the results of this study indicate that job insecurity has a negative and significant effect on employee work engagement. the perception of job insecurity experienced by employees has a negative effect on the emotional and intellectual commitment of employees to the company. the perception of job loss, career uncertainty, overshadowed by termination of employment and feeling helpless due to changes in certain practices in the workplace can cause moral problems and employee motivation. these problems 8 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 ultimately reduce the emotional and intellectual commitment of employees as well as their loyalty to the company. the results of this study support the results of previous research conducted by nivethitha han chena, et.all (2021), hyo sun jung, et.all (2019) dan ebtsam aly abou hashish, et.all (2018), putra f. tindige, et.all (2018), tzvetana stoyanova, et.all (2017) dan alima aktar, et.all (2018). career development opportunity is positively significant to employee engagement. however, it is significant to turnover intention. the results of this study indicate that career development opportunities have a positive and significant effect on employee engagement. an employee who gets the opportunity to develop a career in the company will try to increase work productivity, high performance, contribute more, and also have greater loyalty, emotional commitment and intellectual commitment so that it appears in his higher loyalty to the company. the results of this study support the results of previous research conducted by manisha semwal, et.all (2021), kasimu sendawula, et.all (2019) dan naveed iqbal chaudhry, et.all (2018), anggraini delina putri, et.all (2018), khin thet htar swe, et.all (2019) dan manish kumar, et.all (2018). employee involvement is positively insignificant to employee engagement. however, it is insignificant to the turnover intention. the results of this study state that employee involvement has no significant effect on employee engagement. the practices of involving employees in various programs such as continuous improvement, business problem solving initiatives and involvement in decision making, do not have a significant influence on the desire of employees to be part of the company, find meaning in their work and contribute to the interests of both parties. the results of this study did not support the results of previous research conducted oleh suzanne benn, et.all (2015), tzvetana stoyanova, et.all (2017) dan alima aktar, et.all (2018). the results of this study indicate that a small proportion of respondents (36%) have a working period of 1 to 6 years. hinzmann et al. (2019) in his research found that seniority has an influence on employee engagement levels where employees who have just worked have a 27% higher level of engagement compared to employees who have a higher number of years of service. brim (2002) revealed that employees with less than five years of service are employees who are in the most optimal position in their work and are focusing on strengthening their careers through participation in decision making, sharing information and being actively involved in problem-solving initiatives in business matters, which will give them a sense of recognition and respect as a highly skilled professional. employees with relatively new tenures tend to view the company well because of the novelty effect (chaudhary & rangnekar, 2017). this causes the level of attachment to employees who have a tenure of less than five years tends to be high. based on the results of data analysis and discussion, there are several novelties in this study, including : 1. job insecurity, career development opportunities and employee engagement have a significant effect on employee’s turnover intention, with the greatest influence from career development opportunity variables of 61.4% on the employee's intention. 9 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 2. job insecurity and career development opportunities have a significant effect on employee engagement, with the greatest influence from career development opportunities variable at 97.2%. 3. job insecurity and career development opportunities through employee engagement have a significant effect on employee’s turnover intention, with the greatest influence from career development opportunity variables of 49.2%. meanwhile, employee engagement as a mediating variable does not effect on the employee involvement variable on the employee's turnover intention. based on the results of the analysis and findings in this study, the strategy model for this research is shown in figure 4. below. figure 4. strategy model conclusion the research obtained three hypotheses that are not significant to turnover intention namely: employee involvement does have a substantial impact to turnover intention, also employee involvement to employee engagement. we found out employee engagement did not mediate employee involvement to turnover intention. on the other side, employee engagement has a significant effect on turnover intention. managerial implication this study produces practical contributions to the company to be more open and sensitive to employee management. now the turnover of employees is a common phenomenon that creates a lot of tension within the company which ultimately affects the performance and competitiveness of the company. one of the efforts that companies can do today is to understand the causes and reasons used by employees to leave their jobs. this study shows that the practice of employee turnover is divided into two categories. first, the group that feels dissatisfied because its capacity is not optimally utilized by the company. this group wants jobs that are more challenging, demanding for creativity and innovation and provide opportunities for career development. this group opens up, interacts with various skills and abilities and deepens new knowledge, comprehension and skills. this kind of spirit of course makes employees have a high commitment to the company, willing to give more effort than job requirements (discretionary effort). second, the group of people who feel uncomfortable working in the company because they are constrained by their expertise and skills. his expertise and skills are not in accordance with the type of work he/she is engaged in. discomfort also arises 10 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 due to changes in certain practices in the workplace as well as uncertainty about their role in the workplace. the role of a manager in a company is very important. they become important to inform matters related to the company's interests and ensure that work processes run effectively and efficiently. based on the results of an in-depth analysis conducted in this study, it was found three important factors that need to get the company's attention so that employee loyalty is maintained, namely from guaranteeing employee job security, career development opportunities and employee work engagement. companies need to create tactics and strategies in the face of changing work environments that are full of targets and competition, which are prone to creating employee dissatisfaction. companies need to consider organizational, individual, internal and external factors because these are predictors of employees to stay in their company. those who have high trust in the company, high achievement spirit, high loyalty and commitment, and can interpret work well are usually followed by loyalty to large companies as well. references arif, partono p., martini, e., mawaranti, resya p. (2018), ‘peran stress kerja dan kepuasan kerja karyawan dalam pengelolaan tingkat turnover intention pada karyawan puskesmas jasinga bogor’. jurnal manajemen indonesia, v.18, n.2, p. 165 174, oct. 2018. brim, b. j. (2002). upend the trend. galup management journal, 2(1), 8–9. chaudhary, r., & rangnekar, s. (2017). socio-demographic factors, contextual factors, and work engagement: evidence from india. emerging economy studies, 3(1), 1–18. available at : https://doi.org/10.1177/2394901517696646 dong-hwan, c. & jung-min, s. (2012), ‘job embeddedness and turnover intentions: an empirical investigation of construction it industries’. international journal of advanced science and technology vol. 40, march, 2012. fahrizal & utama, i wayan mudiartha. (2017), ‘the effect of perception of organization support to organizational commitment and turnover intention employee hotel kajane mua ubud’. e-jurnal manajemen, v.6, n.10, p.5405 5431, oct. 2017. faslah, r. 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(2016), ‘pengaruh job insecurity, kepuasan kerja dan lingkungan kerja terhadap turnover intention pramuniaga di gelael supermarket (studi kasus pada gelael superindo kota semarang)’. journal of management universitas pandanaran semarang, vol.2 no.2 , maret 2016. https://doi.org/10.1177/2394901517696646 https://doi.org/10.21009/econosains.0082.06 11 rifai, l., et. al (2022). journal of business and behavioural entrepreneurship, 6(2), 1-11 hinzmann, r., rašticová, m., & šácha, j. (2019). factors of employee engagement at the workplace. do years of service count? acta universitatis agriculturae et silviculturae mendelianae brunensis, 67(6), 1525–1533. available at: https://doi.org/10.11118/actaun201967061525 iskandar, donant a., renwari, joseph m. j., putri, alin r., astono, anjar d. (2021). does employee turnover intervene team performance? business, management and accounting journal, vol. 2, no. 2., 2021. matland, re. 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(2013), ‘analisis pengaruh keterlibatan kerja dan kepuasan kerja terhadap turnover intention karyawan (studi pada pt. njonja meneer semarang)’. diponegoro journal of management, vol. 0, pp. 178-187, jul. 2013. sumarto. (2009), ‘meningkatkan komitmen dan kepuasan untuk menyurutkan niat keluar’. jurnal manajemen dan kewirausahaan, vol. 11 no. 2, september 2009, 116-125. https://journals.aom.org/doi/abs/10.5465/256461 https://journals.aom.org/doi/abs/10.5465/256461 https://journals.aom.org/doi/abs/10.5465/256461 https://psycnet.apa.org/search/results?term=rusbult,%20caryl%20e.&latsearchtype=a https://psycnet.apa.org/search/results?term=zembrodt,%20isabella%20m.&latsearchtype=a https://psycnet.apa.org/search/results?term=gunn,%20lawanna%20k.&latsearchtype=a 87 role of leaders’ positive communication in facilitating change muhammad taufiq amir universitas bakrie email: taufiq.amir@bakrie.ac.id abstract coping with unexpected and unprecedented challenges, particularly in managing change, is part of a leader’s function. change often presents problems and tensions between the parties involved, which can derail the achievement of their objectives. for change to be successful, leaders need to build morale, unify individual and departmental aspirations, and positively influence such change. this study explores positive communication models that can facilitate leaders in managing change. by reviewing the literature of positive communication in the areas of a positive organization, particularly involving the integrative approach and constructive interaction, this study found the certain ways of communication that can encourage effective change agents while reducing the resistance of the individual change target. this work reveals that the constructive and integrative dimension of positive communication may facilitate the change agent to be more internally directed and purpose oriented. on the other hand, questioning and discovery emphasize the affection aspects and will lessen the resistance and make change target those who are more open and eager to collaborate. keywords: positive communication, positive change, integrative approach, constructive interaction received: 12 april 2022 ; accepted: 12 october 2022 ; how to cite: amir, m.t. (2022). role of leaders’ positive communication in facilitating change. journal of business and behavioural entrepreneurship, 6(1), 87-96. https://doi.org/10.21009/jobbe.006.1.08 88 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 introduction communication is the key to the functioning of leadership. in the positive leadership model, where the leader creates a positive work climate and extraordinary performance (cameron, 2008), positive communication is considered to be an essential dimension. here, positive communication is defined as an interaction that is dominated by affirmative and supportive communication in the organization. leaders or managers express more appreciation, support, approval, and compliments. at the same time, negative expressions, critique, disappointment, and dislike are minimal. organizations with managers or leaders who adopt this approach are found to positively affect organizational performance (losada & heaphy, 2004). in a more detailed model, browning, morris, and fee (2011) offer two main dimensions of positive communication, namely integrative and constructive. both of these dimensions can improve how employees interpret situations and increase the effectiveness of working in teams. furthermore, mirivel (2014) offers six more detailed strategies: greeting, asking, compliment, disclosing, encouraging, and deep listening. positive communication can also be related to interactions that emphasize the strengths and positive attributes of the other person. roberts et al. (2005) found that a positive response will make a person feel more valuable. in time, this approach will strengthen the relationship, create more cohesiveness, and involve parties supporting each other. the abovementioned approaches are likely to play a role in an organization’s change initiatives. communication from the leader is essential for leading employees to change (boyatzis et al., 2019). in a relatively new approach, namely positive change, a leader is expected to be willing to inspire others to change according to their own wishes and also create a high level of performance. positive change is the leader's efforts to inspire themselves and produce significant change and results (r e quinn & quinn, 2009). those positive communication practices also have been found to affect positive relationships, establishing a positive climate (cameron, 2013). furthermore, positive communication may also facilitate managers to create positive images they want to create. amir and wijaya (2022) recently offered a model in which positive communication is considered to influence a person's personal branding strategy. according to them, positive communication can help reinforce the personal branding strategy launched and facilitate more opportunities to be accepted by the audience. change process needs certain communication strategy. for example, boyatzis et al. suggest positive communication in a coaching environment where leaders pay attention to phrases that inspire people to change. however, studies that specifically address the role of positive communication in positive change have not been conducted, and leaders often do not know what to do to communicate more positively and make an impact in the long term. this study examines how positive communication can facilitate leaders in carrying out positive changes. it will evaluate how the dimensio ns offered by the literature related to positive communication can make it easier for leaders to carry out positive changes and establish individual targets for change that are less 89 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 prone to resistance. leaders need a simple, empirical, comprehensive model that they can draw on as a compass for making communicative decisions and creating initiatives that will foster a positive organization. the remainder of the paper is organized as follows. first, the authors review the model of positive communication in an organizational context. then, the constructive and construction elements in positive communication are detailed, and a demonstration of the orientation and practices ensues. the study and explanation of positive change follow. thereafter appear the analysis and discussion of the possible relationship between elements and practices of positive communication and the dimension of positive change. positive communication in organizational context as a general term in communication, "positive" can be said to be an interaction that has good features, such as pleasant, polite, assertive or empathetic, efficient or empathetic (browning et al., 2011). cameron (2008) suggests that positive communication involves the way people communicate using supportive language that dominates negative and critical language. positive expressions, such as support, approval, and compliments, dominate terms such as disapproval, cynicism, or disparagement. cameron posits that this communication approach will strengthen positive leadership elements, such as positive relationships, and be more conducive to strengthening a positive climate and facilitating the positive meaning of their work and the organization (cameron, 2008). in addition to cameron's concept of positive communication as a positive element of leadership, the studies of mirivel (mirivel, 2014) or browning and morris as well as fee (2011) are often referred to when defining the concept of positive communication. the sections below detail mirivel’s model, which suggests six strategies, and the following section reviews browning and colleagues' model. six strategies to influence and inspire drawing from interpersonal communication and language and social interaction studies, mirivel (2014) proposes that positive communication is any verbal and nonverbal behavior that functions positively in the course of human interaction. mirivel proposes six strategies that leaders could provide to influence as well as inspire their team. leaders need to model appropriate communication in greeting others, initiate contact with various stakeholders within, across, and beyond the organizational hierarchy, and create human connection. the central behavior to master is inviting interaction and dialogue, all of which can begin with the simple act of greeting. the second principle of positive communication is to use powerful questions to flip the script on human interaction and engage people in the process of discovery. leaders can do so by using open-ended questions to engage stakeholders, disrupt 90 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 dysfunctional and monotonic meetings, and place themselves in a constant state of discovery. to create a positive climate, managers can use positive communication to affect the people around them in a positive way and help employees thrive and be creative. emphasizing affection, as the third strategy, can be conducted through complimenting and the act of building people up. managers can capitalize on strengths and opportunities rather than weaknesses and deficiencies. in this process, leaders will learn to create a growth-mindset culture and aspire an increased sense of purpose. the fourth strategy involves deepening the relationship between parties. when managers communicate with authenticity, genuineness, and a spirit of transparency, the conversation will be more open. particularly when the situation is challenging, disclosing critical information and being transparent is critical. managers can consistently and intentionally deepen connections with stakeholders, respond to challenges effectively, and foster a context of openness and transparency. communicating to encourage is the fifth strategy to inspire and influence. by doing so, managers can create extraordinary leadership moments that provide memorable, transformative, and meaningful moments for their teams. because people need direction and a sense of impact, the process of encouraging provides the opportunity for managers to leave their legacy. the sixth strategy involves the manager's need to create an all-inclusive environment to become effective. by listening more deeply and transcending the perceived differences that exist between people and groups, managers can create dialogic moments that strengthen the quality of the everyday interactions between them and their team. integrative and constructive elements integrative elements browning, morris dan fee (2011) offers a different model, although the implications are similar, namely improving how employees interpret situations and increasing the effectiveness of teamwork. according to these researchers, there are two major elements involved, namely integrative and constructive. integrative is concerned with bringing together differences and creating a unified perspective. in this principle, there is inclusiveness, respectfulness and supportiveness. inclusive suggests that the parties involved respect the aspirations of the parties while maintaining relevance and coherence. the parties also accommodate differences in point of view, culture, and experience. gibbs (2009) suggest the similar concept where , unity produces strength. on the other hand, the principle of respectfullness is carried out by the parties with the assumption of trust and honesty. browning et al. (2011) believe that this method can make people motivated to achieve their goals, as well as effective in making decisions and avoid mismanaging. 91 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 while supportiveness means wanting to facilitate others to achieve success. employees who work under pressure, will feel that a supportive attitude is very important, because it can generate energy and reaffirm one's strengths. grolleau et al. (2013), who studies the factors that increase happiness at work, says that being supportive plays a big role. supportiveness also keeps emotions awake and often makes other people comfortable in communicating. when the situation is comfortable, the parties tend to freely present their problems that are useful for the organization. inclusiveness, respectfulness, and supportiveness may help the employee collaborate or work in a team that values and appreciates his or her opinion, including giving the employee the sense of receiving help when required. constructive interaction while the integrative suggests unity, the constructive interaction element suggests the parties' desire to make things better. the orientation in communicating is contributing, which involves three mechanisms; solution-focused, future-oriented, and collaborative communication. solution-focused talks about improvement, and explores existing resources. this way can make the parties become more confident, and can see the available possibilities. solution-focused can generate a sense of optimism. future orientation allows parties to link their visions for the future. the term “shadow of the future” is relevant to this so that practicing employees relate their daily activities to the long-term goals of the organization. in the context of this organization, it becomes important because togetherness is needed in carrying out the mission. collaborative interaction emphasise what is relevant, informative, truthful, and appropriate in communication. collaboration means parties contributes to understand the conversation’s purpose. stewart (2009) coined the term “nexting”, that characterizes the ability to inform about what is essential, and helpful in a conversation in the communication process. as the parties see the opportunity to improve the situation, there is a better direction where people provide a supportive orientation rather than displaying an abandoning orientation. furthermore, the constructive collaboration tolerates the error as a normal, and parties involved attempting to make sense of it. noticing mistakes and suggesting improvements will keep the organization on the right track. therefore, participants may attempt to align their aspirations with the expectations of others by questioning or offering something to gain a better outcome. the challenge of change the challenge most often discussed in organizational change is reluctance or resistance to change, particularly when changes are considered only top-down initiatives. regardless of the cause or reason for the change—changes in market, competition, economy, changes in regulations, low performance, the presence of technology or machines—the process is typically the same. the organization starts with 92 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 the manager and plans, and the related field begins to formally announce, and then there is a reaction that is generally what the manager expects. the main reason employees are reluctant is most frequently because what the change plan involves is typically bad for them; distraction, discomfort, uncertainty, or loss of the value of the skills they have (lewis, 2016). such a plan interferes with existing relationships, whether with clients or colleagues. similarly, the loss of a privilege was initially considered a basic need, such as an office space or a workplace. because work also means learning, employees typically also calculate the loss of the learning curve. positive change perspective positive change refers to the theoretical assumption in the field of pos where all living systems have a tendency toward positive energy and away from negative energy (cameron 2012). following this approach, the positive environment created by positive interaction and communication can engender positive energy and life-giving resourcefulness. when positive practices are institutionalized in organizations, including providing compassionate support for employees, forgiving mistakes and avoiding blame, fostering meaningfulness of work, expressing frequent gratitude, showing kindness, and caring for colleagues, leads organizations to perform at significantly higher levels on desired outcomes (bright et al., 2006). positive practices produce a significant organizational change in a positive direction. drawing from quinn and well’s (2012) works, this study suggests five dimensions where change agent have important roles, comparing the conventional approach that has appeared most frequently in the literature. table 1: positive perspective of agent of change (robert e. quinn & cameron, 2019) dimensions positive perspectives change target change yourself focus purpose centered expectations internally directed relationship other focused learning externally open 93 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 positive perspective uses the assumption that changes caused by oneself are far more important than those caused by others. two people can engage in precisely the same behavior and receive highly different reactions. with a positive perspective, there is a shift from telling people what to do to showing people how to be. there is a focus on moral power (weick & quinn, 1999). when the change agent becomes more purposive, authentic and empathetic and open, that agent is improving the conditions for being a positive influence (r e quinn & quinn, 2009). secondly, focus on a purpose-centered approach tends to the ultimate goal that has been set. the eventual goal that is addressed here is something extraordinary because it gives aspirations to oneself and to others. on the other hand, the traditional approach tends to be comfort centered, namely doing what was most frequently done in the past. when faced with things that are different from routine, people are overwhelmed by the gap between expectations and reality—being or doing something that may be thought of as deviant is often considered a threat, and maintaining the status quo becomes the norm. in the next dimension, positive change agents tolerate challenges and disruptions and continually clarify their higher purpose and help others do the same. in this way, they are transformative, showing purpose and belief, articulating possibilities for a better future, and encouraging employees to think differently. by pursuing a higher moral purpose and transcending traditional norms, these individuals inspire creativity, innovation, and positive deviance. positive change agents do not assume that the environment is a barrier to almost all of their behavior. the assumption is that macro affects micro as well as social norms that affect individuals. in behaving, positive change agents are more internally directed (i.e., self-regulating when moving towards goals), and the behavior is consistent with the established values. these agents are the authors of a self with a match between emotions, values, and actions (rogers, 1975). internally directed behavior can produce an upward spiral in which self-concordant motivation increases, which increases the likelihood that individuals will achieve their personally valued goals and, therefore, promotes satisfaction and further internally directed behavior (sheldon & housermarko, 2001). other-focused, instead of self-focused, is another positive change agent’s character that differentiates them from the conventional. the positive change literature highlights individuals who are exceptional where the change agents transcend selfinterest. they prioritize the collective good ahead of their own personal interests and are willing to sacrifice themselves to help the group accomplish its goals. such agents also tend to adopt a more altruistic and integrated perspective. furthermore, research on compassion that emphasizes capacity for caring and helping is often driven more than just self-interest. positive change agents are particularly open to input and views on change initiatives from others. people in conventional assumptions tend to align their current preferences and approaches and are resistant to stating that they are on the wrong path because there is an assumption that they are highly dependent on factors beyond one's control (dweck, 2008) these five perspectives can be influenced by the dimensions and practices of positive communication, as shown in the next sub-section. 94 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 positive communication in facilitating positive change two models offered by the literature—those of mirivel and browning et al.— related to positive communication are quite relevant in explaining the success of positive change. in this case, the positive communication carried out by the change agent can function for them as well as on the target of change. the integrative dimension in browning and co-workers' model is particularly helpful in producing purpose-centered and other focused dimensions because the unifying element of the integrative perspective will help make it easier for change agents to convince the change targets that they are part of a wider effort. the practice of inclusiveness communication is among the most necessary because the change targets need to be convinced that they are part of an overall effort. this approach emphasizes that they are significant in the change efforts being carried out. on the other hand, they are also reminded that togetherness is important in change initiatives and that the success of change is not only a matter of personal interest or maintaining one's safe zone. meanwhile, respectfulness will make the target of change feel that their feelings and worries are recognized. however, changing the situation is not always easy. the supportive aspect has a more pronounced role in facilitating change targets to be ready to anticipate the impact of change and to be skilled at running new things. this way of communication also reduces the change target's concerns about the competencies he or she has. meanwhile, the constructive dimension, particularly the solution-focused and future orientation aspects, will also facilitate the change targets to accept change initiatives. change has side effects that are often a problem. being solution focused, change agents build a sense of trust and confidence that the possibilities are available and become optimistic. what is prepared to welcome change is the capital to achieve something better in the future. mirivel’s model also explains that the questioning or discovery process helps facilitate the target of change to find reasons to change that do not involve orders. in addition, the strategy of compliments and providing a sense of affection makes them feel that their actions are appropriate. this strategy also helps reduce feelings of isolation, worry, and or anxiety. similarly, encouragement is necessary to ensure that the target of change is focused upon according to the values they have, which are internally directed. conclusion managing organizational change demands a conducive interaction between leaders, agents of change, and employees who are the target of change. on the other hand, change always brings challenges and difficulties for the parties involved, where a positive change approach can be an option to overcome them. the application of positive communication by leaders and change agents can facilitate the management of positive change. integrative and constructive aspects can play a role in helping the target of change understand the importance of change from oneself, internally directed, and also find the ultimate goal as a common goal. the questioning and discovery model and the emphasis 95 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 on the affective element in communication also facilitates the target of change, reduces the psychological implications that frequently create resistance, and make it more focused on organizational goals while being more open to change ideas. references amir, m. t., & wijaya, b. s. (2022). making personal branding work better: the role of positive communication in organization | european proceedings. in h. wahab, h. mustafa, & n. ismail (eds.), rethinking communication and media studies in the disruptive era (pp. 317–330). european proceedings of social and behavioural sciences. boyatzis, r. e., smith, m. l., & van oosten, e. (2019). helping people change: coaching with compassion for lifelong learning and growth. harvard business review press. bright, d. s., cameron, k. s., & caza, a. (2006). the amplifying and buffering effects of virtuousness in downsized organizations. journal of business ethics, 64(3), 249–269. https://doi.org/10.1007/s10551-005-5904-4 browning, l., morris, g. h., & kee, k. f. (2011). the role of communication in positive organizational scholarship. in g. m. spreitzer & k. s. cameron (eds.), the oxford handbook of positive organizational scholarship. oxford university press. https://doi.org/10.1093/oxfordhb/9780199734610.013.0042 cameron, k. s. (2008). positive leadership: strategies for extraordinary performance. berret-koehler publishers, inc. cameron, k. s. (2013). practicing positive leadership: tools and techniques that create extraordinary results. berret-koehler publishers, inc. dweck, s. c. (2008). can personality be changed? the role of beliefs in personality and change. current directions in psychological science, 17(6), 391–394. gibbs, j. (2009). dialectics in a global software team: negotiating tensions across time, space, and culture. human relations, 62(6), 905–935. https://doi.org/10.1177/0018726709104547 grolleau, g., mzoughi, n., & pekovic, s. (2013). is there a relationship between workplace atmosphere and innovation activities? an empirical analysis among french firms. economics of innovation and new technology, 22(6), 566–580. https://doi.org/10.1080/10438599.2013.777179 lewis, s. (2016). positive psychology and change: how leadership, collaboration, and appreciative inquiry create transformational results. john wiley & sons, ltd. losada, m. f., & heaphy, e. d. (2004). the role of positivity and connectivity in the performance of business teams a nonlinear dynamics model. american behavioral scientist, 47(6), 740–765. mirivel, j. c. (2014). the art of positive communication: theory and practice. peter lang 96 amir, m.t. (2022). journal of business and behavioural entrepreneurship, 6(1), 87-96 publishing. quinn, r e, & quinn, r. w. (2009). lift: becoming a positive force in any situation. berret-koehler publishers. quinn, robert e., & cameron, k. s. (2019). positive organizational scholarship and agents of change. research in organizational change and development, 27, 31– 57. https://doi.org/10.1108/s0897-301620190000027004 roberts, l. m., dutton, j. e., spreitzer, g. m., heaphy, e. d., morgan, l., & quinn, r. e. (2005). composing the reflected best-self portrait: building pathways for becoming extraordinary in work organizations. academy of management review, 30(4), 712–736. rogers, r. w. (1975). a protection motivation theory of fear appeals and attitude change. the journal of psychology, 91(1), 93–114. stewart, j. (2009). communicating and interpersonal communication. in j. stewart (ed.), bridges not walls (pp. 15–78). mcgraw hill. 10 evaluation of the mediation service program at kpai (indonesian child protection commission) rakhmad parulian1), r. madhakomala2), hamidah3) 1,2,3)universitas negeri jakarta email: 1)ruli291134@gmail.com abstract the purpose of the study was to determine entrepreneurial intentions of high school students with neurodevelopmental disorders. descriptive research design was adopted for the study. the sample comprised of 150 college students with neurodevelopmental disorders. a questionnaire was used for data collection. the findings of the study show that attitude, subjective norm and perceived behavioural norm have a significant influence on entrepreneurial intentions of high school students with neurodevelopmental disorders. the following recommendation was given based on the study's findings: all the stakeholders such as government agency, policy makers, school authorities, and parents should create enabling environment that will help the students develop positive attitude and mindset towards entrepreneurship. keywords: career transitions, entrepreneurial intention, high school students, neurodevelopmental disorders received: 27 february 2022 ; accepted: 24 march 2022 ; publish: june 2022 how to cite: eseadi, c. (2022). entrepreneurial intentions of high school students with neurodevelopmental disorders: implications for career transition. journal of business and behavioural entrepreneurship, 6(1), 10-20. https://doi.org/10.21009/jobbe.006.1.03 11 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 introduction in recent years, there has been a surge of interest in entrepreneurship, particularly in low-income countries, where it has been identified as a key driver of economic growth, productivity, and social development (denanyoh et al., 2015; oecd, 2016; campos et al., 2017). furthermore, due to its relevance in economic growth, job creation, and productivity, entrepreneurship has piqued the interest of academics (acheampong & tweneboah-koduah, 2018; elliott, mavriplis, & anis, 2020). entrepreneurial enthusiasm can be found all throughout the world, particularly in industrialized countries, but also in poor countries. because entrepreneurship is linked with self-employed people, it is seen as a viable solution to the problem of employability, particularly among students with neurodevelopmental disorders. because students cannot always rely on the governmental and commercial sectors to provide work opportunities, entrepreneurship is often seen as a viable alternative (iro-idoro et al., 2017). individuals' entrepreneurial intentions are defined as their desire to establish their own business (yldrm et al., 2016). a person's selfacknowledged conviction that they aim to start a new business endeavor and intentionally plan to do so at some time in the future is characterized as entrepreneurial intention (thompson, 2009). as a result, entrepreneurial intention is a powerful indicator of entrepreneurial potential. . the future referred to in the preceding definition of entrepreneurial intention can be nearby or distant. similarly, there is a growing interest in investigating entrepreneurial intentions among high school students with neurodevelopmental disorder. neurodevelopmental disorders are a broad category of disabilities marked by deficits in cognition, communication, behavior, and motor skills, all of which are linked to the neurological system and brain development. attention deficit/hyperactivity disorder, autism, learning disabilities, intellectual disability, conduct disorders, cerebral palsy, communication disorders, autism spectrum disorders, and vision and hearing impairments are some examples of neurodevelopmental disorders in children (kuijper et al., 2017; mullin et al., 2013). denanyoh et al. (2015) discovered that educational, family and structural supports all have a role in students' entrepreneurial intention. personal resources such as general self-efficacy and job adaptability have been shown to have a beneficial impact on entrepreneurial intentions (tolentino et al., 2014). arranz et al. (2017) stated that extracurricular activities have a mixed impact on entrepreneurial intention, but that they also assist students turn their intentions into initiatives. rubin et al. (2002) stated that students who participate in extracurricular activities develop higher social skills than those who do not. participating in extracurricular activities, in fact, aid students in developing their own network and unique talents, which in turn affects their tendency to establish and maintain a business. according to lanero et al. (2011) and sánchez (2013) entrepreneurship education programs have an impact on students' entrepreneurial intentions. although some researchers have sought to analyze entrepreneurial purpose, their research are limited. ndofirepi (2020), for example, investigated the link between entrepreneurship education and entrepreneurial goal intentions, using psychological factors as mediators. ndofirepi (2020) found a favorable and statistically significant association between entrepreneurship education and need for achievement, risk-taking tendency, internal locus of control, and entrepreneurial goal intents. wathanakom, khlaisang, and songkram (2020) investigate the causal relationship 12 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 between students' innovativeness and entrepreneurial intention. shah, amjed, and jaboob (2020) investigated the influence of entrepreneurship education in influencing entrepreneurial ambitions. the authors discovered that entrepreneurship attitudes, subjective norms, and self-efficacy are all significant determinants of entrepreneurial ambitions. furthermore, zain et al. (2010) focused on personality and economic features, whereas joyce and gomathi (2010) highlighted the impact of personality and demographic factors. other variables, it appears, were not explored in their investigations, resulting in a limited understanding of the influence of other factors on entrepreneurial intention. the emphasis on entrepreneurial intentions is a relatively new phenomenon among high school students with neurodevelopmental disorders, with little study on the subject. as a result, the study's goal is to find out whether high school students with neurodevelopmental issues have entrepreneurial intentions. schlossberg transition theory a transition, according to schlossberg, is any event or non-event that results in altered relationships, routines, assumptions, or responsibilities. it is important to remember that perception is important in transitions because an event, or non-event, only meets the definition of a transition if the person experiencing it defines it that way. the theory explained that there are three types of transitions that college students can go through: anticipated, unanticipated and non-events. for example, while going to college and graduating from college are anticipated transitions, the death of a loved one, falling in love, and marrying while in college can be unanticipated. transitions that were expected but did not materialize, such as being denied admission to medical school, were classified as nonevents (chickering & schlossberg, 1995). the transition theory was used by schlossberg and chickering (1995) to explain the college student transition process as moving in, moving through, and moving out. people must learn new roles, relationships, and routines when they move into a new situation. institutions should establish orientation programs to help people understand what is expected of them, according to anderson, goodman and schlossberg (2012). people go through the moving through period once they have "figured out the ropes." adults must consider how to combine their hobbies with other aspects of their lives, as well as how to feel encouraged and challenged as they embark on their new adventure. for college students, transitioning may entail making new friends and establishing a support system. according to schlossberg, moving out marks the end of a set of changes and the beginning of the next phase. the transition eventually becomes integrated, and a period of stability is restored. the following transition theory framework coping references were recommended by chickering and schlossberg (1995) for moving into, through, and out of college: situation, self, support and strategies. the situation for college students could be learning a skill or hunting for work. self is the second 's.' personal and demographic factors, as well as psychological resources, are two topics to consider under self. gender, financial level, stage of life, state of health, ethnicity, and age are all personal and demographic characteristics that have a direct impact on how a person views and evaluates life. according to schlossberg's theory, age is determined not by the number of birthdays a person has had, but by where they are in life based on their functional, social, and psychological ages. tools for coping, ego development, outlook, commitment and values are all examples of psychological 13 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 resources. support is the third 's.' the term "support" refers to a person's ability to help others. intimate relationships, family, friends, coworkers, and communities can all provide social support, which is frequently seen as the key to dealing with stress. support systems help individuals organize and operationalize their resources, which may include having people in one's life willing to share responsibilities, give essential materials or talents, or provide direction on how to cope with the shift (schlossberg, 2008). strategies is the fourth 's.' according to schlossberg (2008), there are three types of coping responses: those that modify the situation, those that control the meaning of the problem, and responses that help the individual manage stress after it has occurred to help the individual cope with existing stress without becoming overwhelmed by it. the aim of the study was to determine entrepreneurial intentions of high school students with neurodevelopmental disorders. research method the work was ethically approved by the committee on research ethics at the university of nigeria. the study takes the form of a descriptive survey. the study's participants include high school students with neurodevelopmental disorders. a multistage sampling approach was used to select 100 high school students with neurodevelopmental disorders for the study from special schools. the data was collected using lián and chen's (2009) entrepreneurial intentions questionnaire (eiq). the eiq was develop to assess entrepreneurship intentions (ei) as well as other factors such as entrepreneurial attitude (ate), subjective norm (sn), and perceived behavioral control (pbc)/self-efficacy (se). instead of the 7-point likert scale used in an early study by lián and chen (2009) a 5-point likert scale with scores ranging from 1 (totally disagree) to 5 (absolutely agree) was utilized (battistelli, 2001). results and discussion table 1: demographic variables of high school students with neurodevelopmental disorders gender male female 55(55%) 45(45%) age 14-16 17-19 20 and above 25(25%) 49(49%) 26(26%) table 1 shows the demographic variables of the sampled respondents on the entrepreneurial intention of high school students with neurodevelopmental disorders. the data in the table 1 indicated that 55 respondents were male representing 55% of the sample size while 44 respondents were female representing 45% of the sample size. furthermore, with respect to age, 25 respondents were within the age bracket of 14-16 which represents 25% of the sampled size, 49 were within the age of 17-19 which represents 49% of the sample size, and 26 were within the age bracket of 20 and above which represent 26% of the respondents. 14 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 table 2: multiple pearson product moment correlation among entrepreneurial attitude, subjective norms, perceived behavioural norms, and entrepreneurial intention of high school students with neurodevelopmental disorders ein att pbc sn ein 1 .46 .19 .27 att .46 1 .54 .13 pbc .19 .54 1 .41 sn .27 .13 .41 1 table 2 shows the multiple pearson product moment correlation among entrepreneur attitude, subjective norms, perceived behavioural norms, and entrepreneurial intention of high school students with neurodevelopmental disorders. the data shows that entrepreneurial intention of high school students with neurodevelopmental disorders is positively and moderately associated with attitude (r=0.46), small but positively associated with perceived behavioural norms (r=0.19), and small but positively associated with subjective norms (r=0.27). furthermore, entrepreneurial attitude of high school students with neurodevelopmental disorders is positively and moderately associated with perceived behavioural norms (r=0.46), small but positively associated with subjective norms (r = 0.13). finally, perceived behavioural norm of high school students with neurodevelopmental disorders were moderately and positively associated with subjective norms (r= 41). figure 1. path diagram of the interrelationship among attitude, subjective norms, perceived behavioural norms, and entrepreneurial intention of high school students with neurodevelopmental disorders. 15 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 figure 1 shows the path diagram of the interrelationship among entrepreneurial attitude, subjective norms, perceived behavioural norms, and entrepreneurial intention of high school students with neurodevelopmental disorders. the data indicates that there were positive and significant relationship between entrepreneurial attitude and perceived behavioural norms with path coefficient of (β=0.54; p=0.01) and attitude and entrepreneurial intention with path coefficient of (β =0.46; p=0.01). however, the relationship between attitude and subject norms with path coefficient of (β =0.13; p=0.08); was positive but insignificant. furthermore, there were positive and significant relationship between perceived behavioural norms and entrepreneurial intention with path coefficient of (β=0.19; p=0.03) and perceived behavioural norms and subjective norms with path coefficient of (β =0.41; p=0.01). finally, positive and significant relationship exist between subjective norms and entrepreneurial intention with path coefficient of (β=0.27; p=0.01). in addition, entrepreneurial attitude explained 29% variation in perceived behavioural norms and 17% variation in subjective norms while 2% variation in entrepreneurial attitude was explained by subjective norms. entrepreneurial attitude, perceived behavioural norms and subjective norms explained 36% variation in entrepreneurial intention of high school students with neurodevelopmental disorders. table 3: multiple regression of the influence entrepreneurial attitude, subjective norms, and perceived behavioural norms on entrepreneurial intention of high school students with neurodevelopmental disorders. m o d e l r r sq uar e adjuste d r square std. error of the estimat e d f m e a n s q u a r e f s i g . 1 .6 01 a .36 0.33 1.7882 5 3 3 . 6 5 6 1 . 1 4 3 . 0 2 3 a. predictors: (constant), sn, pbc, att table 3 shows the regression anova of composite influence of entrepreneurial attitude, subjective norms, and perceived behavioural norms on entrepreneur intention of high school students with neurodevelopmental disorders. the data shows that 36% variation in behavioural intention of high school students with neurodevelopmental disorders was explained by combined influence of entrepreneurial attitude, subjective norms, and perceived behavioural norms. the data equally indicated that there was a significant composite influence of these variables on entrepreneurial intention of high school students with neurodevelopmental 16 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 disorders f(3, 97) =1.143, p= 0.23., since the associated probability value is less than 0.05 level of significance. therefore, the null hypothesis which says that there is no composite influence of these variables is rejected. table 4: t-test analysis of influence entrepreneurial attitude, subjective norms, and perceived behavioural norms on entrepreneurial intention of high school students with neurodevelopmental disorders. model unstandardized coefficients standardiz ed coefficien ts t sig. b std. error beta 1 (consta nt) 20.617 2.693 7.65 5 .000 att 0.46 0.088 0.46 5.15 8 0.01 pbc 0.19 0.095 0.19 1.97 7 0.01 sn 0.27 0.093 0.27 2.91 4 0.03 a. dependent variable: ein in table 4, t-test analysis was conducted to explore the influence entrepreneurial attitude, subjective norms, and perceived behavioural norms on entrepreneurial attitude of high school students with neurodevelopmental disorders. the data shows entrepreneurial attitude had a positive influence on entrepreneurial intention. therefore, a unit increase in entrepreneurial attitude will increase entrepreneurial intention by 0.46 units. similarly perceived behavioural norms had a positive influence on entrepreneurial intention. hence, a unit increase in perceived behavioural control will increase entrepreneurial intention by 0.19 units. finally, subjective norms had a positive influence on entrepreneurial intention. thus, a unit increase subjective norms will increase entrepreneurial intention by 0.27 units. the findings reveal that attitude has a significant and favorable impact on high school students with neurodevelopmental disorders' entrepreneurial intentions. the findings also demonstrated that subjective norm is a good predictor of high school students with neurodevelopmental disorders' entrepreneurial intentions. furthermore, perceived behavioural norm has a significant and positive influence on high school students with neurodevelopmental disorders' entrepreneurial inclinations. this result is consistent with abdulazeez's (2022) findings who found that attitude, subjective norms, and perceived behavior all had an impact on entrepreneurial inclinations. furthermore, the findings of the study are consistent with those of moriano et al., (2011), who discovered a link between attitude and entrepreneurial intention. furthermore, according to paço et al. (2011), attitude, among other things, is the most important element in explaining entrepreneurial 17 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 purpose. moriano et al. (2011), who confirm that social norm is a strong predictor of entrepreneurial inclination, agree with the findings of the study. on the other hand, according to paço et al., (2011), social norms have historically played a weak role in predicting entrepreneurial intent and thus have little influence on entrepreneurial intention. similarly, shook and bratianu (2010) discovered that social norm does not influence entrepreneurial intent. in a similar line, paço et al. (2011) and moriano et al. (2011) discovered that students' perceptions of behavioral control had a beneficial impact on their entrepreneurial intent. while the results of this study are encouraging, they must be seen in the context of some limitations. the study included only high school students with a neurodevelopmental disorder. because behavior is constantly changing, the findings may not present a true picture of the relationship between the research variables throughout time. a longitudinal study could be conducted in the future to confirm the effect found in this study at different time intervals. based on the findings of the study, the following suggestions were made: all stakeholders, including government agencies, policymakers, school administrators, and parents should work together to establish an environment that encourages students to pursue entrepreneurial goals. years of essential and groundbreaking research and theoretical work on the process of occupational development have resulted in the phrase career transition. people with neurodevelopmental abnormalities are frequently regarded as unfit or incapable of functioning in the open labor market. due to additional time and expense for companies, policy and financing limits, this affect people with disabilities. this is especially true for those with neurodevelopmental difficulties, as career transition can be challenging. transitioning from one career to another is an important step in the lives of students with neurodevelopmental disorder. because of the complexity of their health-care needs and the stigma associated with physical and intellectual disabilities that may accompany their disorders, these teenagers are more likely to face transition issues. the process by which students gradually prepare for and shift toward adult vocational development is known as transition in career (gala, 2021). the lack of preparedness for the transfer, the lack of experience and poor relationships and communication among students are all problems in this transition process. counselors and care providers should play a positive part in the transition process, and failure to do so could result in dangerous and frustrating situations. there are many different sorts of career transitions, all of which include unplanned or even unwanted changes in a person's career path. furthermore, the phrase career transition can refer to a person's shift from college to a occupational category. many transitions occur in adulthood, regardless of the type of work change, and it is critical for career counselors to be prepared to handle such midlife career shifts with their adult clients. when one considers the numerous and different aspects that influence the psychological well-being of students with neurodevelopmental disorders during the career-transition process, it is clear that the student could benefit from additional assistance and counseling. counselors can assist students with neurodevelopmental disorders in identifying their skills or resources that they can offer to the career change, as well as overcoming any difficulties or obstacles they may face. the career transition inventory is an important assessment among the many instruments used to guide persons in career transitions (science daily, 2014). this research paper is unique in that it adds to the body of knowledge about entrepreneurial intention among students with neurodevelopmental disorders. students with neurodevelopmental 18 eseadi, c. (2022). journal of business and behavioural entrepreneurship, 6(1), 10-20 disorders are rarely discussed; the impact of elements such as attitudes, social norms, and perceived behavioral norms on high school students with neurodevelopmental disorders has never been thoroughly examined. the study's findings shed light on entrepreneurial intentions among students with neurodevelopmental disorders, which is useful information for students, teachers, and guidance counselors, as well as the government, in terms of strengthening, reshaping, and enhancing career transition among students with neurodevelopmental disorders. this can be accomplished by implementing focused interventions such as involving students in entrepreneurial goal-setting and establishing alternative strategies of achieving goals. in addition, to encourage and advance understanding of entrepreneurship as support for sustainability, performance among students with neurodevelopmental disorders. conclusion the study revealed the entrepreneurial intentions of high school students with neurodevelopmental disorders. the findings demonstrated that subjective norm is a good predictor of high school students with neurodevelopmental disorders' entrepreneurial intentions. furthermore, high school students with neurodevelopmental disorders' entrepreneurial intentions are influenced by perceived behavioral norms in a significant way. however, it is critical for career counselors to assist and support them in overcoming any barriers or challenges they may have, as well as in achieving their objectives and desires. furthermore, the researcher believe that this work contributes to the literature in a meaningful way in that it includes preliminary information on high school students with neurodevelopmental disorders' entrepreneurial intentions, as well as implications for career transition. references abdulazeez, khadijat bolaji (2022). determinants of entrepreneurial intention among higher national diploma students of polytechnics in bauchi state. international journal of scientific and management research, 5(1), 56-74. doi http://doi.org/10.37502/ijsmr.2022.5104 acheampong, g., and tweneboah-koduah, e. y. 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(2010), entrepreneurship intention among malaysian business students,canadian social science, 6(3): 34-44. https://doi.org/10.1186/s40008-020-00195-4 https://doi.org/10.1186/s13731-020-00125-5 https://doi.org/10.1186/s13731-020-00125-5 1 the influence of motivation, communication, leadership style on employee performance at the office of supervision and customs service & excise type c bontang 1muhammad junaid kamaruddin, 2tuty sariwulan, 3usep suhud program doktor ilmu manajemen, universitas negeri jakarta e-mail: 1muhammadjunaid.kamaruddin@gmail.com, 2tuty.sariwulan@unj.ac.id, 3usep.suhud@unj.ac.id abstract this research investigates and analyzes the influence of variables of motivation, communication, leadership style on employee performance on employee performance variables at the office of supervision and customs & excise service type c bontang customs. these variables in this study are referred to simultaneously, for example, endogenous variables: motivation (x1), communication (x2), leadership style (x3), (while endogenous or dependent variables (dependend variables) are performance (y). using primary data, namely data obtained from respondents directly from interview results or the results of filling out questionnaires collected through field surveys. and secondary data is data that is taken indirectly, namely data that has been processed by agencies, in the form of reference books, reports. the data analysis used in this study is qualitative analysis and quantitative analysis. the population used is employees at the bontang customs supervision and service office type c customs which amounts to 113 people. by using the jebuh sample method, that is, all populations become samples. using spss for windows programs ver 22.0 and amos ver 22.0. motivation has a significant effect on employee performance, this shows that the higher the motivation, the more it will improve employee performance. communication has a significant effect on performance, this shows that the better the communication will make the higher the employee's performance. leadership style does not have a significant effect on employee performance, this shows that leadership style does not have a direct effect on employee performance. keywords: leadership style, communication, performance, motivation received: 27 january 2022 accepted: 25 march 2022 publish: june 2022 how to cite: kamaruddin, m.j, et al. (2022). the influence of motivation, communication, leadership style on employee performance at the office of supervision and customs service & excise type c bontang. journal of business and behavioural entrepreneurship, 6(1), 1-9. https://doi.org/10.21009/jobbe.006.1.01 mailto:1muhammadjunaid.kamaruddin@gmail.com mailto:tuty.sariwulan@unj.ac.id  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 2  introduction the office of supervision and service of customs & excise type c bontang is a government agency whose mission is to facilitate trade and industry, guard the borders and protect the people of indonesia from smuggling and illegal trade and optimize state revenues in the customs and excise sector. with this mission, high performance is required from all employees in the office of supervision and customs &excise service type c bontang customs. to optimize the performance of employees, it is necessary to improve their performance. in an effort to dig deeper into those related to employee performance, researchers conducted a preliminary survey of employees of the bontang c customs supervision and service office. it turns out that the survey results indicate that there are still problems related to communication, motivation, leadership. research identification of this research is that although in this office has done various things such as improving communication relationships, namely through information or announcements, increasing motivation by providing basic mentality training, increasing leadership by providing leadership training, but all of them have not been able to improve employee performance. such as freedom of opinion, information feedback, support for work situations, providing service rewards to employees both financial and non-financial, job suitability with expertise and insufficient leadership support. theoretical description motivation towards performance. many variables that affect performance include work motivation. according to henry simamora (in 2005:14) states that there is a relationship between work motivation and performance. factors that affect performance include work motivation. this can be seen from henry simamora's statement regarding factors that affect performance, including psychological factors, in this factor there is a variable of work motivation towards his own work. based on the statement above that there is a relationship between work motivation and performance. maslow states that human beings are motivated to satisfy a number of needs inherent in each human being that tend to be innate (marihot tua e.h., 2002). maslow's hypothesis says that the five levels of needs that reside in man consist of : 1. physiological, including the need for clothing, food, shelter and other physical needs. 2. security, among other things the need for safety and protection against physical and emotional losses. 3. social, among other things affection, mutual belonging, well-received, friendship. 4. awards, among others, include factors of self-respect such as self-esteem, autonomy and achievement. as well as factors of external self-respect such as status, recognition and attention. 5. self-actualization, is the drive to become a person or according to his ambitions which includes growth, achievement of potential, and fulfillment of  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 3  self-needs. the theory of hope from victor vroom (robbins 2013:238) gives a statement about the existence of a relationship between motivation and performance, the statement is as follows : "that an employee will be willing to make greater efforts if he believes that the effort will result in a good performance appraisal, and that a good performance appraisal will result in salary increases and promotions, and all of them allow the person concerned to achieve his personal goals". the relationship of communication variables to performance. this research is entitled the relationship between organizational communication and employee performance at the sabang city education office. this study aims to find out how much influence the relationship between organizational communication and employee performance in the sabang city education office. organizational communication is the sending and receiving of various organizational messages within formal and informal groups of an organization. organizational communication is very functional in organizational activities, namely to connect fellow employees, be it leaders to staff, or other fellow staff, which will lead to the achievement of quality employee performance. good organizational communication relationships can encourage and provide responsibility in their duties. with a good organizational communication relationship with the performance of employees in an organization, the expected common desires and goals will be perfectly achieved. this research is a correlational research with a quantitative approach. this study used a survey research method, namely by using a questionnaire as a research instrument with a total of 68 respondents. the statistical technique used is pearson's product moment correlation analysis. the results showed the value of the correlation coefficient between organizational communication variables and employee performance variables of 0.678 which means that the relationship shows a strong correlation. the calculated value of 7.494 with a probability value of α = 0.05 ( 2-sided test), then a significant test of 7.494 (thitung) > 1.996 ( ttabel ), ha received or a correlation of two significant variables was obtained. so the relationship between organizational communication and employee performance at the sabang city education office is positive and significant. keywords: organizational communication, employee performance the relationship of leadership style variables to performance. according to tampubolon (2007:42), leadership style is behavior and strategy as a result of a combination of philosophy, skills, traits, attitudes, which a leader often applies when he tries to influence his subordinate performance. mulyadi and rivai (2009;73), state that leaders in their leadership need to think about and show the leadership style that will be applied to their employees. leadership style is a behavioral norm used by a person at the time when the person is trying to influence the behavior of others. in the path goal theory developed by house (1971:321) in kreitner and kinicki (2005:313) states that the leader encourages higher performance by providing activities that influence his subordinates to believe that valuable results can be achieved with serious effort. universally applicable leadership results in a high level of performance and satisfaction of subordinates. effective leadership can be obtained through his leadership style that is applied appropriately in an effort to encourage and influence his subordinates, so as to improve the performance of subordinates research methods this research uses two approaches, namely a descriptive approach (descriptive research) and an explanatory approach (explanatory research). the descriptive approach  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 4  is carried out because the researcher seeks to explain the results of the study by using tables, figures and graphs regarding data or numbers that have been processed through the statistical tools of the spss for windows ver 22.0 program. while the explanatory approach is used to explain the influence of exogen variables or what is often called variables that affect (independentd) on endogenous variables or known as dependent variables (dependend) processed with amos ver 22.0. these variables in this study are referred to simultaneously, for example, endogenous variables: motivation (x1), communication (x2), leadership style (x3), (while endogenous or dependent variables (dependend variables) are performance (y). using primary data, namely data obtained from respondents directly from interview results or the results of filling out questionnaires collected through field surveys. and secondary data is data that is taken indirectly, namely data that has been processed by agencies, in the form of reference books, reports. the data analysis used in this study is qualitative analysis and quantitative analysis. the population used is employees at the bontang customs supervision and service office type c customs which amounts to 113 people. by using the jebuh sample method, that is, all populations become samples. using spss for windows programs ver 22.0 and amos ver 22.0. analysis independent variables dependent variables direct effect standardi zed se cr p-value information motivation employee performance 0,381 0,197 -1,984 0,047 significan communicati on employee performance 0,651 0,287 2,684 0,007 significan leadership style employee performance 0.072 0,142 0.528 0,597 insignificant source : data processing results, 2020 motivation has a significant influence on employee performance with p = 0.047< 0.05 with a coefficient value of 0.381, this coefficient shows that the higher the motivation will make the higher the employee performance. communication has a significant influence on performance with p = 0.007< 0.05 with a coefficient value of 0.651, this coefficient shows that the better the communication will make the higher the employee performance. leadership style has no effect on employee performance with p = 0.398 > 0.05 with a coefficient value of 0.072, this coefficient indicates that leadership style does not have a direct effect on employee performance. the effect of motivation on performance the results of the hypthesis test show that motivation has a significant influence on employee performance, this shows that motivation has a direct effect on employee performance. this is supported by work attitudes, achievement needs and fulfillment of needs are perceived very well by respondents, with this good perception contributing positively to the improvement of employee performance. the results of this study are the same as those conducted by buraidah (2013) which found that motivation affects employee performance. the results of this study are in line with what was stated by henry simamora (in mangkunegara 2005:14)  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 5  based on the results of the analysis of respondents' answers, it shows that linkages are something that can motivate employees of the bontang customs supervision and service type c customs in improving their performance. linkage is satisfaction in interacting in the work environment. a very well-established working relationship between fellow employees can be done by establishing a harmonious relationship between fellow employees. bontang customs &excise supervision and service office routinely holds family gatherings every 6 months, in addition to holding capacity building that provides motivation in employees. this aims to strengthen relations, and increase solidarity between employees. a good relationship between superiors and subordinates must also be well established, leaders must pay more attention to relationships with subordinates by establishing harmonious relationships, leaders blend in with subordinates, do not limit themselves and close themselves, increase closeness to subordinates. the leader values subordinates and subordinates respect the leadership, so that good cooperation and harmonious relations are established in carrying out their duties and functions as employees in the office of supervision and customs & excise service type c bontang customs. results the effect of motivation on performance the results of the hypthesis test show that motivation has a significant influence on employee performance, this shows that motivation has a direct effect on employee performance. this is supported by work attitudes, achievement needs and fulfillment of needs are perceived very well by respondents, with this good perception contributing positively to the improvement of employee performance. the results of this study are the same as those conducted by buraidah (2013) which found that motivation affects employee performance. the results of this study are in line with what was stated by henry simamora (in mangkunegara 2005:14) based on the results of the analysis of respondents' answers, it shows that linkages are something that can motivate employees of the bontang customs supervision and service type c customs in improving their performance. linkage is satisfaction in interacting in the work environment. a very well-established working relationship between fellow employees can be done by establishing a harmonious relationship between fellow employees. bontang customs &excise supervision and service office routinely holds family gatherings every 6 months, in addition to holding capacity building that provides motivation in employees. this aims to strengthen relations, and increase solidarity between employees. a good relationship between superiors and subordinates must also be well established, leaders must pay more attention to relationships with subordinates by establishing harmonious relationships, leaders blend in with subordinates, do not limit themselves and close themselves, increase closeness to subordinates. the leader values subordinates and subordinates respect the leadership, so that good cooperation and harmonious relations are established in carrying out their duties and functions as employees in the office of supervision and customs & excise service type c bontang customs. the effect of communication on performance the results of the hypothesis test show that communication has a significant influence on performance, the results of this study show that the better the communication will make the higher the employee performance. the results of the study are in line with research  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 6  conducted by elsa (2015) which states that communication affects the performance of employees at pt. iskandar indah printing textile surakarta. likewise, dimas okta ardiansyah (2016) stated that there was a positive influence of communication on employee performance in the production department of pt. setia kawan makmur sejahtera tulungagung. this research is supported by robbins theory (2013) which posits that communication helps the development of motivation by explaining to employees what to do, how they work well and what is done to improve performance if it is substandard. organizational communication is the sending and receiving of various organizational messages within formal and informal groups of an organization. organizational communication is very functional in organizational activities, namely to connect fellow employees, be it leaders to staff, or other fellow staff, which will lead to the achievement of quality employee performance. good organizational communication relationships can encourage and provide responsibility in their duties. with a good organizational communication relationship with the performance of employees in an organization, the expected common desires and goals will be perfectly achieved. the influence of leadership style on performance the results of the hypothesis test show that leadership style has an insignificant influence on employee performance, this shows that leadership style is not directly significant to employee performance. the results of this study are not in line with the results of research conducted by elsa (2015) which states that leadership style affects employee performance. however, the results of this study are in line with the results of research conducted by emu (2012). this shows that the application of leadership style by superiors is not able to improve employee performance, therefore it is necessary to find an alternative leadership style that is considered suitable to be applied so that the application of this leadership style can improve employee performance. based on the results of the analysis of respondents' answers, it shows that leadership at the customs office is achievement-oriented leadership, in this case it is explained about the attitude of the leader towards his subordinates in achieving achievements as optimally as possible, such as providing job challenges to stimulate work achievements. the challenges in question include finding findings of violations committed by service users, both services and inspections and supervision. the examination in question is a physical examination and documents. physical examination includes checking the integrity of the goods, matching between the seal number and the packaging number, checking the integrity of the seal. furthermore, the opening of the seal and the production of goods are carried out to be checked and adjusted to the packing list. if the goods do not match the packing list, then there will be a violation of the imported goods. the findings of this violation are set forth in the form of reports on the results of the examination and photo evidence. document checks include checking pib, invoices, and other supporting documents, checking the classification of goods, seeing the price stated whether under invoicing (selling price is cheaper than market price) or not, if under invoicing if there is a finding of violation. checking the sppb (goods expenditure approval letter), and others. in addition, the provision of a schedule from the leadership to subordinates, for example, is related to the processing of applications submitted by service users (exporters, importers) for bonded areas. in this case, pkc employees use the licensing inhouse application to conceptualize permits, to then assign external service duties by superiors so that subordinates install new applications related to bonded area permits by going directly to the field. the provision of schedules by the leadership is also carried out related to overtime and picket tasks carried  the effect of organizational culture on performance of government internal supervisory ap paratus (apip) in the national indonesian navy. https://doi.org/10.21009/jobbe.003.1.03 7  out by subordinates. in the path goal theory developed by house (1971:321) in kreitner and kinicki (2005:313) states that the leader encourages higher performance by providing activities that influence his subordinates to believe that valuable results can be achieved with serious effort. universally applicable leadership results in a high level of performance and satisfaction of subordinates. effective leadership can be obtained through his leadership style that is applied appropriately in an effort to encourage and influence his subordinates, so as to improve the performance of subordinates. conclusion motivation has a significant effect on employee performance, this shows that the higher the motivation, the more it will improve employee performance. communication has a significant effect on performance, this shows that the better the communication will make the higher the employee's performance. leadership style does not have a significant effect on employee performance, this shows that leadership style does not have a direct effect on employee performance. reference anoki herdian dito (2010) dengan judul 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(2003). perilaku organisasi dan psikologi personalia. jakarta: rineka cipta 18 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 formation pattern state defense reserve components in five countries of asean bayu setiawan student of doctoral programme of management science of human resource post-graduate programme of jakarta state university email: sribayuprifafi@yahoo.co.id abstract this research is a qualitative research, which aims to describe the ideal pattern for indonesia in building the reserve component base on the result of benchmarking and review of the formation pattern of the asean countries, namely indonesia, malaysia, singapore, the phlilipines, and thailand. the place of research were directorate of reserve component and the directorate of state defense of defense potential, directorate general of defense potential, ministry of defence of the republic of indonesia, commission i of the house of representatives, and the defence attache of the five asean countries. the data was collected by using focus group discussion method, questionnaires, interviews, direct observation, and document verification. data analysis was perfomed using a model of the analytical hierarchy process (ahp) thomas l. saaty, such as, to determine actor, pattern, and actor with the highest priority and become the most important criteria in the formation of national defense reserve component in five asian countries. result of research on the highest priority and the most important criteria: (1) for factor: deterrent power; (2) for pattern: budgeting; and (3) for actor: the thailand kingdom. in this study we analyzed the implementation of eight key competences of michael zwell, ie, beliefs and values, skills, experience, personality traits, motivation, control emotional issues, intellectual ability, and the culture of the organization in six patterns for the formation of national defense reserve component in the kingdom of thailand, namely recruitment, training (development), use (utilities), closure, reward and punishment, and budgeting. the result of the analysis shows that the model and the development time in military basic training phase has the highest priority in improving the competence of members of the reserve component. in order to increase the deterrent power of the nation and country, indonesia needs the competence of members of the reserve components that are national resources defense. therefore, to improve the competence of defense reserve component member of the country, indonesia needs to implement eight key competences of michael zwell into the military basic training curriculum, which is the part of a national programme to defend the country, and put the ministry of defence as a leading sector. keywords: factor, pattern, actor, training, detterent, competence. introduction the development of a state defense system that is responsive against change of threat needs preparedness of all elements of a nation to move together efficiently and effectively. an efficient and effective system integrates all the superiority intrinsic values of the indonesianism cultural patriotism with a constellation of geo-political and geo-strategy with archipelago characteristic which one form of implementation is establishment of national defense reserve component. empirically, reserve components have established in many countries, either through application of conscription system or voluntarily, and several countries oblige their citizens, especially youth, to join conscription, show form of power and ability to defend the country as well high nationalism to their citizens. the experience of several countries in establishing state defense reserve components can be precious lesson and more strengthens indonesia to establish its state defense reserve components. through this research, the researcher made benchmarking to the experience of five asean countries, namely indonesia, malaysia, singapore, philippines, and thailand in establishment of defense reserve components in the respective country, namely recruitment pattern, mentoring pattern, usage pattern, termination pattern, reward and punishment pattern, and budgeting pattern 19 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 purpose this research aims to determine factors, patterns, and actors with the highest priority and become the most important criteria in establishment of state defense reserve component in five asean countries, namely indonesia, malaysia, singapura, philippines, and thailand by using analytical hierarchi process(ahp) model of thomas l. saaty; and study the application of eight competence factors of michael zwell to actors with the highest priority and become the most important criteria in establishment of state defense reserve component in five asean countries, in order to determine the pattern most accomodate the interest of competence improvement to realize the deterrence in the field of state defense. research methods this research uses qualitative approach focusing on the existing symptoms and patterns in the subjects being studied, and the researcher was involved in carrying out data investment and in developing interpretation on the data found. as for the method used in this research is analytic descriptive based on literature study and observation which focus on the aspect of experience on the establishment pattern of national defense reserve component in five asean countries, namely indonesia, malaysia, singapore, philippines, and thailand. result and discussion based on the answer upon 309 questions in the form of questionnaires which given to the approximately 30 respondents (experts in defense) participant of focus group discussioninformation sharing of reserve componentin the five asean countries as referred to above, 12,760 answers, which results then tabulated for data analysis material by using the approach of analytical hierarchie process (ahp). the main goal of this hierarchy, firstly, to choose priority factor of 3 (three) factors become strategy foundation of establishment of national defense reserve component, namely strength factor, ability factor, as well as state and nation deterrence factor; secondly, is to choose priority pattern from 6 (six) component establishment patterns, namely recruitment pattern, mentoring pattern, usage pattern, termination pattern, reward and punishment pattern, and budgeting pattern; and third, is to choose priority of 5 (five) asean country actors, namely indonesia, malaysia, singapore, philippines, and thailand. figure 1. hierarchy structure of matrix theory 20 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 the calculation of matrix theory by using thomas l. saaty’s ahp approach upon data of questionnaire answer tabulation result as described above resulted the priorities as follows: priority benchmarking result in first level hierarchy element (factor) consisting of: strength factor, ability factor, as well as state and nation deterrence factor, is as follows: power (0.7148), ability (0.9949), and deterrence (1,2891). benchmarking result with calculation based on such matrix theory shows that deterrence factor is an element with the highest priority and becomes the most important criteria in establishment of national defense reserve component, followed by ability factor, and strength factor. priority benchmarking result in second level hierarchy element level (criteria) consisting of: recruitment pattern, mentoring pattern, usage pattern, termination pattern, reward and punishment pattern, and budgetting pattern, is as follows: recruitmen (0,1007), mentoring (0.1270), usage (0.1451), termination (0.1646), reward and punishment(0.2088), and budgeting (0.2533). priority benchmarking result based on such matrix theory, shows that budgeting pattern in an element with the highest priority and becomes the most important criteria in choosing pattern in establishment of national defense reserve component, followed by reward and punishment pattern, termination, usage, mentoring and recruitment pattern. priority benchmarking result in third level hierarchy element level (actor) consisting of: indonesia, malaysia, singapore, philippines, and thailand, is as follows: indonesia (0.1345), malaysia (0.1676), singapore (0.2188), philippines (0.2382), and thailand (0.3303). the result of priority benchmarking based on the calculation of such matrix theory shows that thailand is the actor with the highest priority and becomes the most important criteria in establishment of national defense reserve component, followed by philippines, singapore, malaysia, and indonesia. as for the priority comparison result in sub-criteria hierarchy level, consisting of 22 subcriterias, with the ahp approach of michael saaty can be explained in the table 1: research result upon all data collected in fgd (forum group discussion), questionnaire, interview, observation, and document study is as follows: deterrence is an element with the highest priority and becomes the most important criteria; budgeting pattern is an element with the highest priority and becomes the most important criteria; thailand kingdom is an actor with the highest priority and becomes the most important criteria; and model and time of mentoring in the phase of military basic training must be considered through competence improvement of participants of national defense reserve component training of indonesia version. discussion the calculation result of thomas l. saaty’ ahp matrix theory shows that deterrence is worth to be considered as reference for indonesia in embodying qualified defense resource through establishment of its reserve component. state deterrence in defending itself against wide range of threats highly depends on the quality of defense human resource ability owned. the ability quality of defense human resources can be improved through application of competence factors. michael zwell conveys there are 8 (eight) factors that can influence a person’s competence proficiency, namely belief and values, skill, experience, personality characteristic, motivation, emotional issue control, intellectual ability, and organization culture. analysis on the application of those eight competence factors of michael zwell to six patterns of establishment of national defense reserve component to determine the pattern most accommodates the competence improvement interest in order to realize deterrence in the field of defense,can be explained as follows (figure 2): 21 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 table 1. the priority comparison result in sub-criteria hierarchy level indonesia malaysia singapore philippines thailand summon 0.1345 0.1676 0.2188 0.2382 0.3303 selection 0.1236 0.1583 0.1899 0.2194 0.3085 submission 0.1213 0.1568 0.1928 0.2249 0.3039 training 0.1158 1.1597 0.1683 0.2295 0.2958 appointment 0.1238 0.1543 0.1972 0.2249 0.2996 authority 0.1230 0.1518 0.1975 0.2275 0.2999 mentoring period 0.1248 0.1518 0.1951 0.2263 0.2983 mentoring model 0.1148 0.1516 0.1984 0.2294 0.3051 mentoring status 0.1173 0.1421 0.1839 0.2332 0.3234 use of app 0.1201 0.1542 0.1969 0.2318 0.2967 use of awp 0.1248 0.1549 0.1934 0.2309 0.2951 use of napp 0.1155 0.1518 0.1994 0.2346 0.2986 use of nawp 0.1253 0.1529 0.1974 0.2730 0.2986 termination by law 0.1159 0.1523 0.1868 0.2429 0.3017 termination by case 0.1090 0.1408 0.1869 0.2564 0.3006 termination by sanction 0.1148 0.1472 0.1825 0.2372 0.3179 welfare reward 0.1089 0.1534 0.2099 0.2308 0.2987 title reward 0.1147 0.1533 0.1965 0.2292 0.3041 punishment as sanction 0.1107 0.1400 0.1792 0.2441 0.3258 budgetting authority 0.1090 0.1445 0.1900 0.2425 0.3139 budgetting sources 0.1216 0.1487 0.1917 0.2363 0.3015 budgetting supervisory 0.1170 0.1416 0.1850 0.2410 0.3124 to determine the priority level of competence factors to the patterns used in establishment of national defense reserve component in thailand kingdom, the researcher gave weighting in the form of score on existence level of each competence factors within the referred patterns. based on calculation of the total score will be obtained a pattern most accommodates the application of competence factors in the establishment of national defense reserve component in thailand kingdom. the referred pattern can be considered as an input to arrange alternative pattern for indonesia in establishing its reserve component. the implementation of the competence patterns priority level in the framework of establishment of national defense reserve component in thailand kingdom is based on calculation result by summing up the score value of each factor and patterns having been determined, with score weighting as follows: 1 = competence factor very less accomodated in pattern. 3 = competence factor less accomodated in pattern. 5 = competence factor sufficiently accomodated in pattern. 7 = competence factor accomodated in pattern. 9 = competence factor significantly accomodated in pattern. 22 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 figure 2. the matrix of the michael zwell’s eight competency factors implementationon actor with high priority in the above description is has explained that thailand kingdom applies six patterns in the establishment of its national defense reserve component, namely: recruitment pattern, mentoring pattern, usage pattern, termination pattern, reward and punishment pattern, and budgeting pattern. in the meantime, michael zwell conveyed that there are 8 competence factors that can affect a person’s competence proficieny, namely belief and values, skill, experience, personality characteristic, motivation, emotional issue control, intellectual ability, and organization culture. therefore, analysis on the application of 8 (eight) competence factors to 6 (six) patterns of establishment of national defense reserve component, include application of 8 (eight) competence factors to recruitment pattern, mentoring pattern, usage pattern, termination patern, reward and punishment pattern, and budgeting pattern. table 2. the implementation of the eight compentency factors on the recruitment pattern of the contacting phase no competency factors recruitment factors score value 1 beliefs and values contacting phase 3 2 skills contacting phase 3 3 experience contacting phase 3 4 character of personality contacting phase 3 5 motivation contacting phase 3 6 emotional issues contacting phase 3 7 intellectual complexy contacting phase 3 8 culture of organization contacting phase 3 total 24 to know whether the competence factors are accommodated in the patterns in question, in this article, the researcher presents example on application of 8 (eight) competence factors to 23 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 recruitment pattern which includes five stages, namely summon stage, selection stage, submission stage, training stage, and appointment stage. the implementation of the 8 competence factors, namely belief and values, skill, experience, personality characteristic, motivation, emotional issue control, intellectual ability, and organization culture, in summon stage, selection stage, submission stage, training stage, and appointment stage, can be described in table 2: according to michael zwell, beliefs and values defined as a person’s beliefs and values on him/herself and on others which will significantly influence her or his behavior. if a person believes that he is not creative and innovative, he will not seek to think about a new or different method in doing something. therefore, every person must think positively about himself, and to others and shows the characteristic of a person who thinks forward. summon is one stage of recruitment pattern in the framework of establishment of its national defense reserve component in thailand kingdom applied by ministry of defense of thailand kingdom, supported by the elements of army, institution and all related parties. based on michael zwell’s opinion as referred to above, there is chance in the summon procedure to embed beliefs and values to the candidate members of the relevant reserve component in the defending the country through participation as reserve component members. in the perspective of national defense, the efforts to embed belief and value is a strength and opportunity at the same time for the reserve component members to have competence so can be more professional in carrying out their duties. the embedding of belief and value to thailand citizens is applied when a person is stated to be selected to participate in training program as reserve component member candidate, and it is responded by society by giving high aspiration, so that the relevant reserve component member candidate perceives pride accordingly. the officers who involve in the recruitment committee have obtained great trust from the state to be able to carry out the duties which indirectly implied to the belief and value embedding, even though technically it is done through lottery. those who selected as the national defense reserve component member candidates in thailand kingdom, in addition obtain recognition as the best candidates who have complied with the requirement are also trusted to have blessing and better fortune than other candidates. however, the effort to embed “belief and value” in summon stage is not explicitly accommodated in summon state which constitutes one part of recruitment pattern in the framework of establishment of its national defense reserve component in thailand kingdom. consequently, “belief and value” as one of the factors that can affect a person’s competence proficiency, is considered less accomodated in summon stage in recruitment pattern in the framework of establishment of national defense reserve component in thailand kingdom. based on the priority of competence factors interest over the patterns applied in the framework of establishment of its national defense reserve component in thailand kingdom, score weighting for “belief and value” accomocation insummon stage in recruitment pattern is 3. the synthesis on the analysis report on application of 8 (eight) factors that can affect a person’s competence proficiency, in six patterns in the establishment of state defense reserve component in thailand kingdom, can be explained in the following table 3: synthesis matrix on application of competence factor to the establishment pattern of national defense reserve component in thailand kingdom as referred to in above, shows that model and mentoring time in mentoring pattern and military basic training stage in recruitment pattern, obtained the highest value/score. consecutively, the average score achievement for each pattern are: mentoring model obtained value 8 (total score 64 divided by 8 competence factors); mentoring time obtained score 7 (total score 56 divided by 8 competence factors); and military basic training also obtained score 7 (total score 56 divided by 8 competence factors). this implies that based on calculation result on application of competence factors to the establishment the patterns of national defense reserve component in thailand kingdom, obtained result that priority of factors interest level which can affect a person’s competence proficiency can only accommodate to patterns, namely recruitment pattern in military basic training state and mentoring pattern in mentoring model and mentoring time. 24 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 table 3. the analysis report on application of 8 (eight) factors that can affect a person’s competence proficiency no competence factors pattern score number desc 1 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture recruitment summon selection briefing military training appointment 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 7+9+5+7+9+5+7+7 3+3+3+3+3+3+3+3 24 24 24 56 24 prior 2 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture mentoring authority time model status 3+3+3+3+3+3+3+3 7+7+7+7+7+7+7+7 9+9+7+9+9+7+7+7 3+3+3+3+3+3+3+3 24 56 64 24 prior prior 3 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture use app awp napp nawp 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 24 24 24 24 4 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture termination by law by case by sanction 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 24 24 24 5 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture reward and punishment welfare title punishment 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 24 24 24 6 a. beliefs and values b. skills c. experience d. personality characteristic e. motivation f. emotional issue g. intellectual ability h. organization culture budgeting authority sources supervisory 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 3+3+3+3+3+3+3+3 24 24 24 thus, experience of thailand kingdom in establishing its defense reserve component, can be the consideration for indonesia in establishing its defense reserve component in order to have high 25 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 competence and professional so that can be expected to be able to increase the state and nation deterrence against all kinds of threats. therefore, to establish nation defense reserve component that has high competence and deterrencebased professional, it requires programme and activity that can seek accomocation of the interest of competence factors in military basic training stage, supporting by mentoring model and mentoring time, in an establishment mechanism of national defense reserve component which is carried according to management cycle covering the stage of planning, organizing, implementing and supervising. in order to establish indonesian human resources as national asset of defense become an ideal military deterrence which is not based on to fulfillment of the main equipments of weapon system, it needs competency improvement effort that is contained into the activities of military basic training, mentoring model, and mentoring time in the framework of establishment of national defense reserve component in indonesia. alternative of application of competence factor in training model for candidate member of state defense reserve components and state defense cadre can be explained in the following table 4: table 4. competence factor in training model for candidate member of state defense reserve components and state defense cadre material competency factors model curriculum candidate member: awareness, on citizen's right and obligation confidence in self-strength mutual cooperation never give up ability to cooperate integrity totality togetherness state defend cadre: mental attitude nd state defend character national and state patriotism anda awareness loyal to pancasila as the ideology willing to scrifice for nation and state initial capability to defend state both psychologically and physically believe and value skill experience personality characteristic motivation pengendalian emotional issue intellectual ability organization culture education mentoring training coaching: observation discussion aktif follow up mentoring initiation cultivation sepearation redefinition counselling recognition empowering resourcing personality mentoring and fighting spirit: mentoring of knowledge and skill field study basic core supporting skill conclusions based on the approach of the ahp matrix theory of thomas l. saaty, in this theory has been able to be determined factor, pattern and actor with the highest priority and become the most important criteria in the establishment of state defense reserve components in 5 asean countries, respectively are deterrence factor, budgeting pattern, and thailand kingdom actor. analysis on the implementation of eight competence factors of michael zwell to the actor with the highest priority and become the most important criteria in the establishment of state defense 26 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.02 reserve components in 5 asean countries generated research finding that training is a the most accommodating sub-pattern the interest of competence improvement to realize deterrence in the field of state defense. in order to improve the competency of indonesian citizens who participate in defending state either as members of state defense reserve component or as state defense cadre, so as to have deterrence towards wide range of threats, it needs curriculum of training implementation that accommodates 8 (eight) competence factors of michael zwell. bibliography colquit, jason a., jeffery a. lepine and michael j. wesson. organizational behavior improving performance and commitment it the workplace, international edition.new york: mcgraw-hill companies inc., 2009. dessler,gary. human resource management, thirteenth edition. london: pearson education, inc., 2013. ivancevich, john m., robert konopaske and michael t. matteson. organizational behavior and management, eighth edition. new york: mcgraw-hill companies inc., 2008. mondy, r. wayne, robert m. noe and shane r. premeaux.human resource management, 7th edition. new jersey: prentice hall, 2000. noe,raymond a., john r. hollenbeck, barry gerhart and patrick m. wright. fundamental of human resource management, fourth edition. new york: mcgraw-hill companies inc., 2011. robbins, stephen p. organizational behavior, tenth edition. new jersey: prentice hall, 2003. wibowo. manajemen kinerja, edisi ketiga. jakarta: pt rajagrafindo persada, 2007. zwell, michael. creating a culture of competence, new york: john wiley & sons, inc., 2000. 51 abstract this study aims to analyze student habits in information technology in conducting transactions either in cash or by using e-money. questionnaire was a method used in this study by distributing selected questionnaires only to students. analysis of the results showed that the students preferred to use e-money for transactions because it was more effective and more efficient than paying in cash. it could be also because it was influenced by their shopping habits through social media and the globalization era. on the other hand, they needed cash and relatively bigger wallet for cash payments. consequently, emoney was preferred by students compared to cash payments. keywords: e-transaction, digital, e-money, social media received: 1 april 2021 ; accepted: 10 november 2021 ; publish: december 2021 how to cite: rohmawati, t., zulkipli, h. (2021). e-transaction in digital era. journal of business and behavioural entrepreneurship, 5(2), 51-.56. https://doi.org/10.21009/ jobbe.005.2.07 e-transaction in digital era t rohmawati departemen ilmu pemerintahan, universitas komputer indonesia, indonesia email: timkonferensi4@gmail.com h zulkipli departemen akuntansi, universitas komputer indonesia, indonesia email: timkonferensi4@gmail.com https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 52 introduction information technology is generally a very common thing these days. its development resulted in the community having to adapt to it; for example, transaction in cash can now be replaced by electronic money. electronic money or e-money is a technology-based financial product where the users numbers are increasing in each day regardless of the users age. financial technology is a developing technology in finance, and it is monitored by people. in this development, there are two types of payment systems, namely cash and electronic money. each has very different characteristics and the users of the system will certainly be different. e-money can be used only on modern outlets, while the cash system is still maintained by outlets that use the outdated system. the development of technology in finance makes people who are in the middle to lower classes sense the urgency to try this technology so that they are not getting left behind (chuen, 2017). the strong impact that digitalization currently has is affecting the financial industry services. all financial products at this time are mostly based on information technology. furthermore, finance is currently and entirely carried out without physical interaction. fintech is an innovation in the financial services industry that utilizes the use of technology (puschmann, 2017). meanwhile, research conducted in zimbabwe regarding e-money and cash payment showed that the use of e-money is inacceptable to every individual yet. this is because most people there prefer to use the cash payment system compared to e-money. the survey showed several reasons to not use electronic money because of fear from the community itself, the lack of public confidence in the banks, and the lack of information about e-money (sakarombe & marabada, 2017). emoney is the latest form of cash in the form of data (iwamura et al., 2019). many factors cause a person choose e-money compared to cash, namely comfort, security, functions, costs used, and financial transparency with the bank (sasai et al., 2018). every debt will be settled immediately. therefore, there is no risk from various parties. transactions are very final. people are directly involved in the transactions even if they do not trust each other. however, the disadvantage of cash payment is the people involved must be physically present and it is impossible to that online. this is where electronic money becomes an opportunity for new market to facilitate traders who use online trading (rogoff, 2017). the development of information technology in the financial sector will not stop here. there are many more products that will be generated by financial technology besides the payment system (lee & shin, 2018). at this time, small and medium businesses mainly make transactions on social media so that the payment system will continue to develop. if the entrepreneur does his business on digital media, it will not be separated from the three elements of digital methods, digital platforms, and digital infrastructure which includes payment systems that are made digitally or electronically using internet connection (nambisan, 2017). e-money balance is calculated based on the amount of money on the card, however the balance is not categorized as savings bank. after the concept of e-money itself, the user must first deposit the money so that the money in the card increases (liébana-cabanillas et al., 2018). to prevent any digital issue related to e-money, the indonesian government has coordinated with the indonesian finance ministry and banks to protect their customers who use e-money. entrepreneurs expect the effectiveness from e-money will cut the time needed for finishing a payment. moreover, the efficiency it has is expected to provide security, assurance of free from counterfeit money, and easiness in receiving finished payments (sullivan & burger, 2017). rohmawati, t., zulkipli, h. (2021). journal of business and behavioural entrepreneurship, 5(2), 51-56 e-transaction in digital era https://doi.org/10.21009/jobbe.005.2.07 https://doi.org/10.21009/jobbe.004.2.01 53 this research has the following objectives: to compare preferred payment systems, the effectiveness and efficiency of them, and the reasons for choosing both methods. questionnaire was a method used in this study by distributing selected questionnaires only to students. this research has the following objectives: to compare preferred payment systems, the effectiveness and efficiency of them, and the reasons for choosing both methods. questionnaire was a method used in this study by distributing selected questionnaires only to students. research methods this research method used was a questionnaire method by distributing selected questionnaires through google forms to accounting students of universitas komputer indonesia who use social media for conducting transactions in cash and e-money. the distribution of questionnaires was conducted on october 8, 2019 to october 14, 2019. the aim was to find out transaction payment methods selected by students in conducting transactions. young adults mostly choose to use e-money because of its effectiveness and efficiency compared to cash. by comparing these two transaction methods, entrepreneurs must prepare e-money for their transaction payment. results and discussions respondents' responses related to the relationship with the e-money method showed the result that if they would make a payment transaction, 14 of 24 respondents chose to make transactions using the e-money method and the rest chose cash transactions. the reason for choosing e-money was because it is accessible, comfortable, and safe. in addition, e-money platforms regularly offer discounts to the user (lee & shin, 2018). in contrast, the reason for choosing cash was because several outlets do not accept e-money transaction. therefore, according to me, cash is generally accepted in community while e-money is accepted in more specific outlets. however, because of the rapid development of technology and information, people who previously use cash payment now use e-money. market must slowly keep up with current developments and the use of e-money is inevitable. the intensity of the respondents in using e-money is shown in figure 1. it shows that 33.3% of respondents were frequently conducting transactions using e-money because of the easiness and low-risk payment compared to pay in cash. in addition, conducting e-money payments gave the users points to get discounts for future purchases (nambisan, 2017). in addition, students started paying their tuition fees with autodebit system instead of cash because the campus had been working with the bank to facilitate their students pay tuition fees much easier. tax payments, zakat payments, toll payments and advertising payments are now already using e-money through digital media. it is not surprising that e-money transaction payment in indonesia has increased each year. nevertheless, paying in cash was still the main option for small enterprises because they did not have the tools that support e-money transaction. despite of the high use of e-money, cash payments are still needed (figure 1). rohmawati, t., zulkipli, h. (2021). journal of business and behavioural entrepreneurship, 5(2), 51-56 e-transaction in digital era https://doi.org/10.21009/jobbe.005.2.07 https://doi.org/10.21009/jobbe.004.2.01 54 figure 1. the intensity of the respondents in using the e-money method figure 2 shows the effectiveness of both methods and the result e-money was chosen as the most effective method. using e-money enabled the users to carry less money and avoid the feeling of worry of losing it. when the e-money card was lost, users only lost the card and not the money. the results of the questionnaire survey showed that e-money payment is more effective than the cash payments. it was driven by many factors including the current habit of students for choosing simple way. they could buy books online and pay them using e-money without having to go to the bookstore which cost them more time and money. however, cash is still used for certain payment where e-money transaction is not supported (figure 2). figure 2. respondent’s responses to the effectiveness of both methods rohmawati, t., zulkipli, h. (2021). journal of business and behavioural entrepreneurship, 5(2), 51-56 e-transaction in digital era https://doi.org/10.21009/jobbe.005.2.07 https://doi.org/10.21009/jobbe.004.2.01 55 figure 3 shows the reasons for choosing e-money over cash. it showed that emoney transactions were easier and quick. meanwhile, some preferred cash because they did not have to deposit balance on the e-money platforms. it can be said that e-money platforms are successful in promoting e-money because they could get the students’ attention to use it. in order to get the attention, emoney platforms usually offer discount, special price, or cashback in large amount. on the other hand, those promotions did not happen regularly for cash payment (figure 3). figure 3. the reasons of the respondents for choosing each method conclusion e-money as a product of the development of information technology is able to provide solutions that have been an obstacle for every individual. using e-money makes it easy for everyone to make transactions online and it can work properly. however, the cash payments cannot be eliminated because it is still needed for certain parties such as traders or entrepreneurs who make offline transaction and have not gotten the technology for e-money transactions. thus, e-money payment and cash payment have its own advantages and disadvantages in the era of globalization. nevertheless, emoney is seen to be the most effective and efficiency payment for students. references chuen, d. l. k. (2017). invited editorial comment: fintech and alternative investment. the journal of alternative investments, 20(3), 6-15. iwamura, m., kitamura, y., matsumoto, t., & saito, k. (2019). can we stabilize the price of a cryptocurrency?: understanding the design of bitcoin and its potential to compete with central bank money. hitotsubashi journal of economics, 41-60. lee, i., & shin, y. j. (2018). fintech: ecosystem, business models, investment decisions, and challenges. business horizons, 61(1), 35-46. liébana-cabanillas, f., muñoz-leiva, f., & sánchez-fernández, j. (2018). a global approach to the analysis of user behavior in mobile payment systems in the new electronic environment. service business, 12(1), 25-64. nambisan, s. (2017). digital entrepreneurship: toward a digital technology perspective of entrepreneurship. entrepreneurship theory and practice, 41(6), 10291055. rohmawati, t., zulkipli, h. (2021). journal of business and behavioural entrepreneurship, 5(2), 51-56 e-transaction in digital era https://doi.org/10.21009/jobbe.005.2.07 https://doi.org/10.21009/jobbe.004.2.01 56 puschmann, t. (2017). fintech. business & information systems engineering, 59(1), 69-76. rogoff, k. (2017). dealing with monetary paralysis at the zero bound. journal of economic perspectives, 31(3), 47-66. sakarombe, u., & marabada, n. d. (2017). electronic money or cash? in face of liquidity crisis in zimbabwe. international journal of academic research in business and social sciences, 7(11), 2222-6990. sasai, k., tsujimoto, m., & higa, k. (2018, december). key factors analysis of user's choice on electronic money services. in ispim innovation symposium (pp. 115). the international society for professional innovation management (ispim). sullivan, c., & burger, e. (2017). e-residency and blockchain. computer law & security review, 33(4), 470-481. rohmawati, t., zulkipli, h. (2021). journal of business and behavioural entrepreneurship, 5(2), 51-56 e-transaction in digital era https://doi.org/10.21009/jobbe.005.2.07 https://doi.org/10.21009/jobbe.004.2.01 30 the influences of green packaging and ecolabel toward green purchase intention hanifa nur fadhilla universitas jenderal achmad yani yogyakarta email: hanifadhilla@gmail.com murwani eko astuti universitas jenderal achmad yani yogyakarta email: murwaniastuti@gmail.com abstract this study intends to examine how eco-friendly packaging and ecolabels affect consumers' intentions to make green purchases, specifically for products from the body shop. purposive sampling is the sampling approach that was employed, and the following criteria were used: consumers who are interested in buying green products, are above 18, have at least a high school diploma, and have purchased at least one item from the body shop. a total of 103 people responded to the survey. questionnaires with a likert scale that have been evaluated and found to meet the criteria for validity and reliability are the data gathering method employed. spss is the analytical method employed. the findings of this study showed that two independent factors, in particular green packaging and ecolabel, have a positive significance influence on consumers' intention to make green purchases. hypotheses are accepted. this research result derives from t-test statistics. keywords: green packaging, ecolabel, green purchase intention received: 30 september 2022 ; accepted: 7 december 2022 ; how to cite: fadhilla, h.n., & astuti, m.e. (2022). the influences of green packaging and ecolabel toward green purchase intention. journal of business and behavioural entrepreneurship, 6(2), 30-36. https://doi.org/10.21009/jobbe.006.2.03 mailto:murwaniastuti@gmail.com 31 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 introduction the use of plastic plays an important role in life. this is increasing along with the development of manufacturing activities and the level of public consumption. plastic is used to package daily necessities and as disposable shopping bags. the higher use of plastic can lead to an increase in the amount of plastic waste (syamsiro, 2015). plastic waste can last for years so that it can cause pollution to the environment and damage water and soil ecosystems (karuniastuti, 2003). according to jambeck's (2015) research, 3.22 million tons of plastic waste are generated annually by indonesia's 187.2 million coastal residents, who do not appropriately manage this material. in addition, it states that the most commonly found plastic waste is packaging from single-use materials. people use plastic (single-use packaging and plastic shopping bags) because it is more practical and cheaper. the plastic waste is dominated by the residential sector, shops, markets, and schools. as time goes by, people are increasingly aware of the consequences of using plastic in the long term. people show a preference for green products and environmental concerns (matthes & wonneberger, 2014). however, the change of preference from conventional products to green products did not run smoothly. in the research of tan et al. (2016), consumers' interest in purchasing green products is still lacking because they think green products are too expensive, require a lot of knowledge, and are too difficult to get. the results of a survey from the palm scribe to several female respondents regarding knowledge about green products can be concluded if the majority of respondents say price is the main factor in purchasing, even though respondents already know the importance of green products, namely for health and the environment (pradipta, 2018). price is listed as one of the hurdles for customers to choose items in a poll by insight neilsen indonesia of respondents aged 15 to 45 in indonesia with middleand upper-class socioeconomic characteristics (viva.co.id, 2017). it is known that green product has a higher price than conventional products. one of the reasons is the environmentally friendly label (ecolabel). the company has to pay more to get the label and the label will be obtained if the company has received environmentally friendly certification, such as ewg (environmental working group), ecocert, zero, peta, leaping bunny, and ecolabel, causing the price of green products expensive (female daily, 2019). from a survey conducted by the palm scribe, respondents said they did not know about ecolabels (pradipta, 2018). ecolabel, according to sonderskov & daugbjerg (2011), is a product claim that gives customers reliable, easily available information about a product's environmental features. according to putra (2018), there are not many users of environmentally friendly products in indonesia. in order to attract consumers' interest in using green products, companies carry out strategies such as using environmentally friendly packaging (green packaging) on their products (draskovic et al., 2009). green packaging is packaging that can be recycled, degraded, or reused and does not pollute the environment or harm people while a product is in use (zhang & zhao, 2012). green product must provide information to consumers about the environmentally friendly performance of the product, companies as producers need to include an ecolabel packaging green product. the presence of ecolabels in green items might significantly influence consumers' intentions to make green purchases (kong et al., 2014). 32 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 research method this study is an explanatory research and is included in a cross-sectional study. cross-sectional means that research is carried out only at one time through a period of time to answer research questions (sekaran & bougie, 2017). this study used a survey methodology, and the research data was gathered by distributing self-administered questionnaires via the internet. the distribution of this questionnaire is addressed directly to consumers who are interested in purchasing the body shop products. the distribution of this questionnaire contains questions related to the variables of green packaging, ecolabel, and green purchase intention. the analytical method used in this research is spss. consumers interested in buying environmentally friendly products make up the study's demographic. consumers interested in buying the body shop items make up the study's sample. purposive sampling was used as the sample technique. purposive sampling, according to sugiyono (2017), is a sample technique with a few things to take into account. men and women who are at least 18 years old, have completed high school, and have purchased at least one item from the body shop are eligible to participate in this study. because people over the age of 18 are accustomed to making purchases and can make selections to select the best product from the various possibilities available, the researchers decided to only consider respondents who were above the age of 18. the rao purba formula is applied to the sample in this study as follows (sujarweni, 2015): 𝑛 = 𝑧2 4 (𝑀𝑜𝑒)2 description: n : number of samples z : confidence level in determining the sample (95% = 1.96) moe = margin of error the maximum number of samples that can be drawn when assuming a 10% margin of error is: 𝑛 = 1.962 4 (0.10)2 = 96.04 the calculation above yielded a minimum of 96 respondents as the number of samples to be used. 103 respondents made up the samples used in this investigation. 33 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 figure 1. research model source: author’s tabulation (2021) ho1: green packaging has little impact on consumers' intentions to make green purchases. ha1: green packaging has an impact on consumers' intentions to make green purchases. ho2: the ambition to make green purchases is unaffected by ecolabel. ha2: ecolabels have a favorable impact on consumers' intentions to make green purchases. results and discussion in this study, there were 103 respondents who filled out questionnaires that had been distributed with criteria over 18 years of age, minimum education of high school or equivalent, and had purchased at least one product of the body shop. the following is a description of the characteristics in this study: table 1. table of participant description criteria description percentage gender male 25% female 75% total 100% age 18 – 25 years 65.4% 26 – 33 years 29.8% 34 – 41 years 4.8% > 41 years 0% total 100% h1 h2 green packaging (x1) ecolabel (x2) green purchase intention (y) 34 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 source: author’s tabulation (2022) table 2. hypothesis testing result variable coefficient regression (b) t significance information (constant) -1.354 1.071 0.209 x1 0.526 0.102 0.000 significant x2 0.400 0.083 0.000 significant source: author’s tabulation (2022) the illustration of the result of multiple linear regressions related to the factors influencing green purchase intention are as follows: y = -1.354 + 0.526 x1 + 0.400 x2 + ε the t-test was applied in this study by the author. the second hypothesis is supported by the t-test. the author selected a confidence level of 0.1 for this test. green packaging has a t-value of 0.102 and a significance value of 0.000. as a result, the significance value (0.000 0.1) is less than 0.1. this indicates that there is a considerable positive correlation between green packaging and green buying intent. green packaging has a regression coefficient of 0.526. as a result, ha1 accepts that green packaging influences consumers' intentions to make green purchases. the findings of this study corroborate earlier research by rajendran and wahab (2017), who found that design, knowledge, and quality are the primary elements that influence customers' intentions to purchase green packaging. their research also revealed that design is the most potent factor in piquing consumer interest in making a purchase. ecolabel's t-value is 0.083 and its significance level is 0.000. its significance value is therefore less than 0.1. this indicates that there is a strong positive correlation between ecolabel and intention to make green purchases. therefore, ha2 accepts that ecolabels have an impact on consumers' intentions to make green purchases. according to kong et al (2014).'s study, green corporate impression, ecolabel, and green product value considerably increase the likelihood that consumers will make green purchases. consumers believe that the ecolabel is one of the key elements that significantly influences their decision to purchase environmentally friendly goods, and some last education level sma/equivalent 41.3% d3 1% s1 42.3% s2 14.4% s3 1% total 100% 35 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 consumers believe that the information provided on the ecolabel is accurate and simple to grasp conclusion according to a review of the research findings, green packaging significantly increases the likelihood that consumers will make green purchases. the more appealing the green packaging is on products; the more likely consumers are to acquire green goods. ecolabelling also significantly increases the likelihood that consumers will make green purchases. consumers are more likely to buy green products when they have more confidence in the ecolabel on those products. references draskovic, n., temperly, j. & pavicic, j. (2009). comparative perception(s) of consumer goods packaging: croatian consumers ‘perspective(s). international journal of management cases, 11 (2), 154-163. jambeck, j, r. (2015). plastic waste inputs from land into the ocean. sciencei, vol 347 issue 6223. karuniastuti, n. (2003). bahaya plastik terhadap kesehatan dan lingkungan. semarang: universitas diponegoro. kong, w., harun, a., sulong, suryati. r., & lily, j. (2014). the influence of consumers ‘perception of green products on green 10 purchase intention. international journal of asian social science, 2014, 4(8): 924-939. matthes, j., & wonneberger. a. (2014). the sceptical green consumer revisited: testing the relationship between green consumerism and scepticism toward advertising. journal of advertising, 43 (2):115–127. doi:10.1080/00913367.2013.834804. pradipta, t. (2018). seberapa besar pengaruh produk ecolabel di indonesia? retrieved from https://thepalmscribe.id/id/seberapa-besar-pengaruh-produk-ecolabeldiindonesia. putra, g, g, d. (2018). effects of green products for consumer purchase intention among students in indonesia and malaysia: a comparative study. bogor: institut pertanian bogor. rajendran, s, d., & wahab, s, n. (2017). purchasing intention towards green packaged products: an exploratory study among malaysian consumers. international conference on advanced research in business and social sciences. sekaran, u., & bougie, r. (2017). metode penelitian untuk bisnis pendekatan pengembangan-keahlian. jakarta. salemba empat. sonderskov, k, m., & daugbjerg, c. (2011). the state and consumer confidence in ecolabeling in denmark, sweden. the united kingdom and the united states. agriculture and human values, 28(4): 507-517. doi 10.1007/s10460-010-9295-5. 36 fadhilla, h.n., & astuti, m.e. (2022). journal of business and behavioural entrepreneurship, 6(2), 30-36 sugiyono. (2017). metode penelitian kuantitatif, kualitatif dan r&d. bandung: cv. alfabet. sujarweni, v, w. (2015). metodologi penelitian bisnis dan ekonomi, 33. yogyakarta: pustaka baru press. syamsiro, m. (2015). kajian pengaruh penggunaan katalis terhadap kualitas produk minyak hasil pirolisis sampah plastik. jurnal teknik. tan, l, p., johnstone, m, l., & yang, l. (2016). barriers to green consumption behaviours: the roles of consumers ‘green perceptions. australasian marketing journal 24 (2016) 288–299. tim female daily. (2019). 4 alasan produk eco-friendly punya harga lebih mahal. retrieved from https://editorial.femaledaily.com/blog/2019/07/22/4-alasanprodukeco-friendly-lebih-mahal. tim viva. (2017). mahal, alasan orang tak mau beli produk ramah lingkungan. retrieved from https://www.viva.co.id/gaya-hidup/inspirasi-unik/957916mahalalasan orang-tak-mau-beli-produk-ramah-lingkungan. zhang, g., & zhao, z. (2012). green packaging management of logistics enterprises. international conference on applied physics and industrial engineering. 6 abstract the purpose of this research is to analyse the influence of e-advertising on consumers. the case study was conducted on culinary product by performing literature study method and questionnaires. purposive sampling technique was used with two criteria namely age and location of residence. the questionnaires was distributed among 100 respondents with age ranging from 18 to 24 years old and resided in bandung. the results show that advertisement in social media or eadvertisements is effective to influence consumers, this is indicated by most of respondents stated that they know the product from social media, not only conventional media. in addition, the coverage of e-advertisement exposure is very extensive. this is also supported by the fact that young adults tend to use social media and other online platforms to find information regarding product. this research contribute recommendation to integrate online means in their advertisement method. keywords: e-advertising, product sales, social media advertising, culinary product. received: 22 june 2020 ; accepted: 18 may 2021 ; publish: december 2021 how to cite: luckyardi, s, et.al. (2021). analysis of e-advertising influence case study on culinary product. journal of business and behavioural entrepreneurship, 5(2), 6-12. https://doi.org/10.21009/jobbe.005.2.02. analysis of e-advertising influence case study on culinary product s luckyardi departemen manajemen, universitas komputer indonesia c n albar departemen sastra inggris, universitas komputer indonesia n n supriatna departemen akuntansi, universitas komputer indonesia email: timkonferensi4@gmail.com https://doi.org/10.21009/jobbe.004.2.01 7 introduction alalwan (2017) stated that people are aware that social media influences their lives. customers easily engage in interactions using social media such as facebook, instagram, twitter, etc. duffet said that advertising on social media could be a solution for companies that wanted to increase their sales value. by advertising, companies can achieve marketing goals. advertising makes potential customers more familiar with the company's products and motivate the consumers to buy products (duffett, 2015). the popularity of social media is growing rapidly as a new advertising platform, which allows users to meet and interact with brands. on the other hand, online market has a significant increase due to the growing number of online users aged 18 to 35. the results reveal that brand awareness has an impact on users' attitudes towards social media advertising, which then influenced their behavioural responses to social media advertising and interest in buying luxury goods (chu, et al., 2013). marketing science stated that social media has become an important platform that is closely related to the product marketing (lund, 2019). in this term, entrepreneurship that emphasizes business activities on technology is coined as technopreneurship (soegoto, 2014). social media is useful for knowing about competitors' movements and analyzing communication trends that are exchanged within the scope of individual consumers. it is making it easier for companies to develop solutions according to their target customers and prospects (liu, et al., 2019). in addition, the use of advertising on social media becomes an important thing that must be done in marketing luxury branded products. this is because consumers who have an understanding of a brand have a high interest in advertising on social media and will act according to the information they get. in addition, previous studies have shown that people who understand brands will feel anxious about people's views of them if they do not use goods with these luxury brands (chaudhry, et al., 2019). the use of advertisements on facebook pages and other social media show that global brands are updating their information daily. in addition, the company use social media to ask satisfaction ratings from consumers or share testimonial of their experience when using the products. this method is called electronic word of mouth (ewom). e-wom is done to maintain a good relationship with consumers (quesenberry, et al., 2019). electronic word of mouth (e-wom) is define as the dissemination of information on a product in the form of recommendations distributed by one consumer to another consumer that can be trusted more than the company directly promotes the product. although some of the consumers do not have many contacts to forward the message, this method should simplify the advertisers when trying to reach other consumers who are easily affected (reichstein & brusch, 2001). in addition, on social media, display ads are the most preferred advertisement for marketers. it is defined as graphic advertisements on websites appearing next to the content of web pages, instant messaging applications, e-mail messages, and other forms of communication on a website (davis & cameau, 2020). however, analysis of e –advertising, specified on culinary product is still rare to be found. therefore, this research is important to be performed. the purpose of this research is to analyse the increase in product sales using social media advertising. the research was conducted using literature study methods and questionnaires. luckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 8 research methods the method used in this research is mix method by distributing questionnaires using google form. other than that, we also used literature review to support research data analysis. we took the case study on culinary product. purposive sampling technique was used with two criteria namely age and location of residence. it was distributed among 100 respondents with age ranging from 18 to 24 years old and resided in bandung, the respondents are decided using slovin formula. young adults are chosen as the respondent because culinary businesses tend to focus their products for young adults. results and discussions in this statement, the respondents may check more than one option. the results of the questionnaire show that 95 respondents are exposed to culinary advertisement through social media and other media such as pamphlet/brochure, video streaming platform, television and billboard. meanwhile, 5 respondents know culinary product information not from social media. the results is in line with the previous study conducted by saravanakumar, m., & suganthalakshmi, t. (2012). they stated that companies can create a communication channel with its customers through social media. in addition it is easier tools to market their products, build brand equity, and improve consumer loyalty. social media is a two-way channel which allows to response consumers faster. in the other hands, it requires effort and care to manage two way channel communication tools. the results of the research shown in figure 1 also in accordance with the statement of oktaviani, f., & rustandi, d. (2018) stated that the concept of digital marketing is to take advantage of a wide area of media, where the media will provide infographics about various products marketed by companies, especially the emphasis on the brand of a product or service. figure 1. source of information source: research data questionnaires figure 2 shown that, 64 respondents (64%) stated that they are often exposed to culinary e-advertisement, while 33 respondents (33%) stated that they are occasionally exposed to the ads, and 3 respondents (3%) stated that they are rarely exposed to food advertisement. the results is supported by previous research of andini, n. p., & suluckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 9 haryono, s. (2014) stated that information on social media allows marketing to spread in a short time (wide reach), without promotional efforts and large costs. figure 2. advertisement exposure frequency and effectivity source: research data questionnaires figure 3 shown that text in culinary advertisement is an important aspect in advertisement. the answer of 59 respondents have proven it. the textual element in the advertisement clarify the figure in the advertisement with product information including offers, shop location, or persuasion attempt. 39 respondents (39%) stated that both visual and textual aspects in advertisement are important (see figure 3). according to this, customers tend to read the additional information other than figures/pictures in the advertising text. however, some consumers just do not pay attention to the textual element including the redundancy and the length of the words. this is in line with the results of previous study, which show that literal speech acts in fast food advertisements on television have various communicative functions. textual elements can attract consumers by providing offers by involving various expressions of feelings and information about menus offered via text (prasetya, r. a. 2017). in addition young people is a generation that has great curiosity. they tend to believe what they seeing and they analyze purchasing decision from textual and visual advertisement. textual element in the advertisement has a strong relation with the copywriting theory. according to advertising expert, frank jefkins, the definition of copywriting is a written work in the form of an advertising essay and is made as attractive and creative as possible. person who make copywriting or creative writing is called a copywriter. usually, copywriters make creative ideas by processing words in the form of interesting, impressive, easy to understand and persuasive writing (agustrijanto, 2001). luckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 10 figure 3. the most important aspect in food ads source: research data questionnaires figure 4. source of advertisement exposure source: research data questionnaires from figure 4, we can find out that 31% of respondents were exposed by the advertisement in social media. by using advertisements, online businessmen or respondents can reach more targeted potential customers so they can increase sales of their products. this results is in accordance with the previous research conducted by owen, r., & humphrey, p. (2009) who stated that online marketing communications creates interactions between producers and consumers rather than one direction from a producers to masses of consumers. it is enable producers to broadcast information to consumers in extensive area. luckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 11 conclusion from the results of the research above, it can be concluded that e-advertising is very effective in influencing consumers. it can be seen from the terms of source information which indicated that social media has a very broad impact on information exposure toward consumer. in addition, advertisement exposure frequency and source of advertisement exposure indicated the similar results. exposure of the e-advertisement increase the possibility to gain consumer which in turn can gain increased profit. however, since social media is two way communication channel, it need more attention in the proper combination of textual and visual content. acknowledgement the author would like to thank all those involved in this research especially prof. ir. dr. eddy soeryanto soegoto, mt., as unikom rector and lppm unikom who support in the completion of this research. references agustrijanto. 2001. seni mengasah kreatifitas dan memahami bahasa iklan.bandung: remaja rosdakarya. alalwan, a. a., rana, n. p., dwivedi, y. k., & algharabat, r. 2017. social media in marketing: a review and analysis of the existing literature. telematics and informatics, 34(7), pp.1177–1190. andini, n. p., & suharyono, s. (2014). pengaruh viral marketing terhadap kepercayaan pelanggan dan kepuasan pembeli(studi pada mahasiswa fakultas ilmu administrasi universitas brawijaya 2013 yang melakukan pembelian online melalui media sosial instagram). jurnal a dmistrasi bisnis (ja b) v ol chaudhry, p. e., cesareo, l., & pastore, a. 2019. resolving the jeopardies of consumer demand: revisiting demarketing concepts. business horizons, 62(5), pp.663 -677. chu, s. c., kamal, s., & kim, y. 2013. understanding consumers' responses toward social media advertising and purchase intention toward luxury products. journal of global fashion marketing, 4(3), pp.158-174. davis, c. h., & comeau, j. 2020. enterprise integration in business education: design and outcomes of a capstone erp-based undergraduate e-business management course. journal of information systems education, 15(3), pp. 8. duffett, r. g. 2015. facebook advertising’s influence on intention-to-purchase and purchase amongst millennials. internet research, 25(4), pp.498–526. liu, y., jiang, c., ding, y., wang, z., lv, x., & wang, j. 2019. identifying helpful quality-related reviews from social media based on attractive quality theory. total quality management & business excellence, 30(15-16), pp.1596-1615. lund, b. 2019. universities engaging social media users: an investigation of quantitative relationships between universities’ facebook followers/interactions and university attributes. journal of marketing for higher education, 29(2), pp.251267. oktaviani, f., & rustandi, d. (2018). implementasi digital marketing dalam membangun brand awareness. profesi humas, 3(1), 1-20. owen, r., & humphrey, p. (2009). the structure of online marketing communication channels. journal of management and marketing research, 2, 1. prasetya, r. a. (2017). tindak tutur pada iklan produk makanan cepat saji di televisi dan implikasinya dalam pembelajaran bahasa indonesia di sekolah menengah pertama (doctoral dissertation, universitas lampung). luckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 12 quesenberry, k. a., & coolsen, m. k. 2019. what makes facebook brand posts engaging? a content analysis of facebook brand post text that increases shares, likes, and comments to influence organic viral reach. journal of current issues & research in advertising, 40(3), pp.229-244. reichstein, t., & brusch, i. 2001. the decision‐making process in viral marketing—a review and suggestions for further research. psychology & marketing, 36(11), pp.1062-1081. saravanakumar, m., & suganthalakshmi, t. (2012). social media marketing. life science journal, 9(4), 4444-4451. soegoto, e. s. 2014. entrepreneurship menjadi pebisnis ulung edisi revisi. elex media komputindo. luckyardi, s, et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 6-12 analysis of e-advertising influence case study on culinary product. https://doi.org/10.21009/jobbe.005.2.02 https://doi.org/10.21009/jobbe.004.2.01 79 abstract this research aims to find out how the human resource planning strategy conducted by pt x cigarette distributor. this company is a cigarette distributor company and is the largest cigarette "brand" in indonesia, because it is a large company so there is also a lot of labor in it. so in this study analyzed whether existing human resources are effective or not. the type of research conducted is field research which is descriptive analysis that is research that describes the strategy of human resource planning in an effort to improve employee performance. data collected by interview, observation, and documentation. data analysis techniques used qualitative descriptive analysis combined with swot analysis approach. the results of the study explain that in human resource planning there are several stages in the process of procuring new employees. and in carrying out its operational activities, the company considers the strengths, weaknesses; opportunities and threats that one day can benefit or harm the company. keywords: human resource planning, swot analysis received: 21 september 2021 ; accepted: 20 december 2021 ; publish: december 2021 how to cite: pancasasti, r., et.al. (2021). human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). journal of business and behavioural entrepreneurship, 5(2), 79-86. https://doi.org/10.21009/ jobbe.005.2.10 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia) ranthy pancasasti master of management postgraduate untirta email: ranthy@untirta.ac.id dian sapitri master of management postgraduate untirta evan nur oktovian master of management postgraduate untirta adi mulyadi master of management postgraduate untirta agung aditya saputra master of management postgraduate untirta https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 80 introduction in the current era of globalization, technological developments cannot be stopped at all because technology is constantly evolving. as a result of technological developments that are very fast and will not be inhibited, companies are required to always make changes in accordance with technological advances. logically, the company will not run if there is no human element in it, hr is an important asset that must be owned by the company, the existing human resources are also not necessarily quality resources for that there needs to be a good human resource plan to support everything that is needed required by the company. hr planning is a function that must first be carried out in an organization yusuf (2016). why is that? because when you have a goal that you want to achieve, there must be a plan to realize that goal as well as the goals to be achieved by the company, so there must be human resource planning. the good hr planning will certainly make things structured. pt x is a cigarette distributor company with a cigarette brand which is a wellknown brand in indonesia, and the largest cigarette company in indonesia. cigarettes are legal goods that are widely worthy of being circulated and traded in indonesia and almost everyone, from adults and teenagers, is familiar with and has tried cigarettesaccording to data from the who (world health organization). there are many active smokers in indonesia, and the number is the third highest in the world, where china is number one and india is in second place. in the course of the company's operational activities, the company always targets the average consumer, namely adults and teenagers, in this case the company issues various types of cigarettes that are widely circulated in the market, besides selling their products domestically, the company also sells its products abroad. and it can be seen that the scope of the company's business is very large because it has penetrated abroad, and of course, in the running of the company, human resources are needed that can support business activities in order to compete with similar companies. seeing from the condition of pt x cigarette distributor, which certainly has a lot of employees, a planning in human resources is needed so that the existing employees are employees whose performance is very good. in formulating human resource planning strategies, it can be done in many ways, one of the ways that can be mentioned is by direct field research. this human resource planning can be realized through a process that is supported by policy instruments by analyzing and identifying hr needs and the availability of rusjiana (2016). this study focuses on the human resources planning process at pt x cigarette distributor, and explains how the swot analysis occurs in this company. literature review human resource planning human resource planning is the first step in the hrm process (george, 2017). this is the process of analyzing and identifying the need for the availability of hr so that the organization can meet its goals. according to hasibuan in kelejan et al (2018) human resource planning is defined as the process of forecasting the hr of an organization for the future, so that the steps can be taken to ensure that these needs are met. when planning hr, it can be concluded that human resource planning involves hr goals within the organization, developing strategies to achieve those goals, and developing a comprehensive set of plans to integrate and coordinate activities as part of pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 81 strategy in hr management. human resource planning indicators the indicators of human resource planning according to hasibuan (2017: 258) are: 1. procurement: procurement includes activities or processes of withdrawal and selection to obtain quality human resources 2. development: development is a process of increasing the skills and knowledge of employees through education and training. 3. compensation: compensation is the compensation for services received by employees for the results of their work. the principle of compensation is fair and proper. fair is defined in accordance with the employee's work performance during work, appropriate means that it can meet the special needs of the employee. 4. maintenance: maintenance is an activity to maintain or improve the physical, mental, and loyalty conditions of employees, so that employees remain productive. 5. discipline: discipline is the desire and awareness of employees to comply with applicable company regulations 6. stopping: dismissal (separation) is the termination of the employment relationship between the employee and the company. termination of employment between employees and the company is also regulated by law. swot analysis christanto (2016) defines swot analysis is a way that companies often use to see a brief overview of the company's overall, namely the internal and external environment. hajikhani in susanto, et. al (2019) swot analysis is an attempt to identify strengths, weaknesses, opportunities, and threats that determine organizational performance. yogi, et. al (2017) explain that swot analysis is a systematic identification of various factors to formulate organizational strategy. this analysis is based on logic that can maximize strengths and opportunities, but at the same time minimize weaknesses and threats. the components of the concept of strengths, weaknesses, opportunities, and threats (swot) according to tambunan (2020) are: 1. strength is the utilization and management of potential or organizational resources effectively in order to achieve its goals. 2. weaknesses are limitations or inability of organizational resources so that they can hinder the achievement of goals 3. opportunities are situations in the general environment that can support the organization to achieve strategic competitiveness. 4. threats are situations in the general environment that can interfere (not support) activities in achieving strategic competitiveness. research methods the subject in this study is pt x cigarette distributor. the study was conducted in june 2021. this company was investigated in order to obtain quality human resources so that good human resource planning is needed so that the company's operational activities run as expected. this research uses qualitative methods by interviewing several employees who are involved in the process of human resource planning activities in the company. this study uses a qualitative method with a grounded theory approach. through the application of grounded theory, experiences, and social propancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 82 cesses that occur can be understood by integrating definitions from individual perspectives from research informants (susila, 2015). the informants in this study were 4 employees of pt x who were willing to be interviewed, consisting of 2 managers and 2 staff employees who were intensively involved in human resource planning in the company. data collection was carried out by structured interviews as intended to facilitate the process. interview. field studies and documentation were also conducted, then the data were analyzed using descriptive analysis and swot analysis. data analysis in discussing this problem uses descriptive qualitative analysis, namely an explanation of qualitative data using the method of human resource planning strategies and suggests a swot analysis to obtain an overview of the problems that the authors examine. results and discussions pt x cigarette distributor business process the company is the indonesian national cigarette company, which has been around for a long time and is still running. cigarettes are legal products and are widely circulated in the market. there are many smokers in indonesia, ranging from teenagers to adults. although the official tagline issued by the indonesian government, namely "smoking kills you" has often been heard, there are still a lot of people who are "ignorant" of the tagline because in indonesia itself cigarettes are sometimes addictive, not to mention that the image of cigarette companies is considered a "bad guy" by the indonesian government. so that the sale of cigarette products is sometimes erratic. this degradation phenomenon leads to the threat of the existence of cigarette companies. this condition makes companies that produce cigarettes try to deal with the degradation of public opinion by establishing a brand image and the company that we are researching is trying to turn a killer company into a savior. namely changing the image and existence of a company that has products that are killing into a savior with various interesting activities and which are certainly beneficial for the community human resource planning process determine employee needs according to information obtained by the informant, mr. muhajar, he said that in terms of determining the need for labor, the company has never conducted an analysis of the fulfillment of manpower needs, but the company uses an employee assessment system, namely whether the existing employees have performed well or not. when an employee shows a condition where he does not perform well, he will be transferred to another section according to his qualifications. and when there is a vacancy in a certain position or level, the company needs additional workers. recruitment and selection of human resources pt. x cigarette distributors in conducting the selection process to select competent employees, the company conducts the selection process in several stages, namely: pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 83 1. administration selection, including file selection, age and skill criteria 2. psychological test 3. interview test, interview with hrd (human resource development), user, and fgd (focus group discussion) 4. health test 5. pkwt (specific time work agreement) conducted for one year for management trainee training and management presentations per 6 months 6. pkwtt (indefinite time work agreement) for grade level 5 stars 1 external analysis of pt. x cigarette distributor basically, external analysis is carried out to see opportunities and threats that can affect the company's operational activities. and the following is a description of the internal analysis at pt. x cigarette distribution: industry competition competition between similar industries is no longer taboo in the business world, especially if the business being carried out is already extensive and even sales and exports have reached foreign countries. however, in this condition the company still exists in the market and the competition does not pose a threat to the continuity of the company's operational activities, because the "brand image" is well-built and the product is well known among the public. bargaining power of buyers for some other companies in indonesia, bargaining activities from consumers are very meaningful to the business planning carried out by the company. however, things are different in this company. according to information obtained from interviews with informants, mr. eko said that the impact of the bargaining power of buyers did not have any impact, because the price that had been set was equal to or equal to the price set by other companies in the same industry so buyers could not bid again. threat of substitute products according to an interview with an informant, namely mr. muhajar, regarding substitute products or competing products produced by this company, it does not cause serious problems. although there are many substitute products that have been widely circulated, for example, vaping does not pose a threat to the company at all. because even with these conditions, cigarettes still exist and are still chosen by the community, this happens because the price of substitute products is relatively expensive and the cigarettes themselves are expensive. so the presence of a substitute product for the company does not have any impact. and the company also does not take anticipatory action for the presence of substitute products. internal analysis of pt. x cigarette distributor internal environmental analysis itself is a more detailed examination of human resources originating from within the company itself, internal analysis at pt x is as follows: strengths and weaknesses of human resources the strengths and weaknesses of hr can be seen from the human resource management process. where, in this company, everything about the workforce is regulated by a department or section called hrd (human resort development). hrd regulates pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 84 all matters relating to the workforce, starting from the process of recruitment, training, development, quality of employee performance, employee benefits, compensation, effectiveness of rewards to motivate employees to termination or termination of work between the company and employees. everything has been arranged by the hr department. organizational strengths and weaknesses organizational strengths and weaknesses are obtained from the existing organizational structure in the company that involves all elements and not just employees. such as, a "good" company image in the eyes of consumers, good communication between fellow employees and employees with superiors, a healthy organizational culture and climate, a comfortable work environment and a good management information system. analysis of strengths, weaknesses, opportunities, and threats (swot) christanto (2016) defines swot analysis as a method that companies often use to see a brief overview of the entire company. the swot analysis of human resource planning at pt. x cigarette distributors are as follows: no strenghts (s) weaknesses (w) 1. employee turnover intention is very low cigarette excise policy from the government 2. entered the category of private company with strong financial the influence of the owner's policy is very strong 3 employee benefits and benefits are quite good (health, bonuses, transportation, money, meals, etc.) at a certain level, employees must be ready to be rotated to all areas 4 family-friendly company culture that creates a feeling of comfort and safety at work because it's a family company, getting into the managerial level is still strong with subjective assessments 5 placement of employees is adjusted to the educational background and work experience many senior employees who are assigned are not in accordance with their educational background no opportunities threats 1. continue to develop business and create sister companies (fmcg, banking, e-commers, and real estate (hotels and housing) non-smoking non-governmental organizations (ngos) who continue to voice the closure of cigarette factories 2. hr / employees can be assisted in all sister companies government regulation no. 109 (pp 109) regarding restrictions on tobacco use 3 still the largest cigarette company with the number 2 share in indonesia cigarette waste which is certainly a common thing found in a company/factory 4 always prioritize healthy competition between fellow teammates or employees a work system that never changes and tends to be monotonous and makes employees feel bored pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 85 human resource planning indicators indicators of human resource planning at pt x cigarette distribution can be described as follows: procurement of employees procurement of employees will be adjusted to the needs of the company. if a certain section or department has a shortage of employees, the admin will report to the hrd department to request new workers whose qualifications are certainly in accordance with those required by the department. employee development in this case employees who have worked for a long time may not know the latest technology applied in the company. so it is necessary to have employee development in the form of training and education with the aim of increasing employee knowledge. compensation compensation is the compensation received by employees for services that have been provided by the company. the provision of compensation itself has been arranged by the hrd department. in this company, the amount of compensation varies between employees. for example, the amount of compensation received by employees who have worked in the company for a long time will be different from employees who have just worked in the company. it is measured by the length of service of employees in the company. maintenance maintenance n this case, is to keep the mental and physical of employees in prime condition, so that work is not hampered. discipline in this company there are regulations that apply where the principle of regulation is that it must be obeyed and if it is violated it will be given punishment. so that employees will be disciplined for fear of being punished if they violate applicable regulations. discontinuation discontinuation is intended to terminate the employment relationship between the employee and the company. in this company, termination of employment is regulated by law, the aim is not to cause harm to the company or employees. conclusion the results of this study explain that human resource planning at pt. x cigarette distributors are very structured where for the initial conditions they utilize available human resources and if human resources are not available, new employees will be recruited. furthermore, an analysis of human resource planning is carried out by researchers. and everything that is needed has been described in the swot analysis. human resource planning is equipped with indicators, namely: (1) procurement, pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 86 (2) development, (3) compensation, (4) maintenance, and (5) termination. carried out in a structured manner. it is necessary to carry out a gradual evaluation of human resource planning so that conclusions can be drawn whether the human resource planning that has been carried out has been going well or not which will ultimately determine the actions the company will take in the future. reference cristanto, edo. 2016. “strategi pengembangan sumber daya manusia pada pt. mirota surabaya”. gora vol. 4, no. 1 georrge, vineeth. 2017. “the role of human resource planning in the human resource network”. international journal of creative research thoughts. issn: 2320-2882 hamali, arif yusuf. 2016. “pemahaman manajemen sumber daya manusia”. yogyakata: center for academic publishing servive kelejan, rillya a. victor p.k. lengkong & hendra n. tawas. 2018 “pengaruh perencanaan sumber daya manusia dan pengalaman kerja terhadap kinerja karyawan di pt. air manado”. jurnal emba vol.6 no.4 moleong, lexy j. 2017. “metode penelitian kualitatif”, cetakan ke-36, bandung : pt. remaja rosdakarya offset p yogi, o rizal, ahmadi, os suharyo. 2017. feasibility analysis of naval base relocation using swot and ahp method to support main duties operation” ournal of defense resources management purba, jon henri. 2018. “perencanaan strategi sumber daya manusia dan prestasi kerja karyawan”. jurnal manajemen vol. 4, no.1 rusjiana, jimmy. 2016. “pengaruh sistem informasi sdm terhadap kinerja karyawan di pt. rabbani bandung”. jurnal computech & bisnis, vol. 10, no. 1 sugiyono. 2017. “metode penelitian kuantitatif, kualitatif, dan r&d”. bandung : alfabeta, cv. sumilat, claudia. rinwan paputungan. antonius gholung. 2017. “peranan komunikasi pimpinan dalam meningkatkan kinerja pegawai di kantor kecamatan kakas” . e-journal “acta djurnal” volume vi. no. 1. susanto,arys. asrica dwi susanto, avando bastari. 2019. “formulation of the development strategy of an organization using a swot analysis”. international journal of asro. voll.10, no. 03, susila, ihwan. 2015. “pendekatan kualitatif untuk riset pemasaran dan pengukuran kinerja bisnis” jurnal manajemen dan bisnis vol. 19, no.1. winarti, endah. 2018. “perencanaan manajemen sumber daya manusia lembaga pendidikan”. jurnal tarbiyatuna vol. 3, no.1 tambunan, toman sony. 2020. “swot analysis for tourism development strategy of samosir regency” tijab (the international journal of applied business). vol. 4 no. 2 pancasasti, r., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 79-86 human resources planning strategy with swot analysis method at pt. x (largest cigarette distributor in indonesia). https://doi.org/10.21009/jobbe.005.2.10 https://doi.org/10.21009/jobbe.004.2.01 142 abstract this study aims to determine the existence of e-money and have an impact on increasing income in micro, small and medium enterprises. the research method implemented in this research is descriptive qualitative. most people, including msme entrepreneurs, think that the benefits of making e-money digital payments are very helpful in processing transactions in the form of non-cash and can be stored on electronic devices so as to minimize the risk of theft and make it simpler. e-money or electronic money is involved in a type of digital payment that involves the use of a computer network which is one of the technological advances. the results of this study are that e-money has many benefits for consumers, especially for msmes (micro, small, and medium enterprises) because its existence will shorten time and cost and is an effort to develop msme businesses so that msme business processes can be implemented effectively, efficiently and economically. keywords: e-money, smes, msmes. received: 1 april 2021; accepted: 4 june 2021 ; publish: june 2021 how to cite: anggadini, s.d., putri, w.d. (2021). application in payment to support small, micro, and medium enterprise. journal of business and behavioural entrepreneurship, 5(1), 142-148. https://doi.org/10.21009/jobbe.005.1.09 application in payment to support small, micro, and medium enterprise sri dewi anggadini department of accounting, universitas komputer indonesia email: timkonferensi4@gmail.com wulandari dianti putri department of accounting, universitas komputer indonesia email: timkonferensi4@gmail.com https://doi.org/10.21009/jobbe.004.2.01 143 introduction this study aims to determine whether e-money boosts income in small micro medium enterprises. money is an object that is portable, dividable, durable, and stable. money has three main functions which are identified as a medium of exchange, a store of wealth or value, and a unit of account. since it begins around 15,000 years ago, money has undergone an ongoing process in the form of both change and modus operandi. such changes usually occur about major transformations in economic functioning (soegoto, eddy soeryanto, 2014). globalization and internationalization of relations together with virtual economic ties have become more stable and the emergence of necessary new technologies and information and communication resources (bernal, j. 2017). this research is important to do because there are often problems with msmes that do not have clarity in recording cash receipts and disbursements so it is necessary to implement a payment system with a digital system, namely through e-money so that it is hoped that this e-money payment can help in the transaction process, especially non cash and can be stored in electronic devices so as to minimize the risk of theft. emoney functions as a non-cash payment instrument and has several advantages that promote efficiency in conducting transactions compared to manual payment instruments (husnunnida, m., & alfiana, f. 2019 ; soegoto & suprianti, 2019). thus, as a new payment instrument in indonesia, e-money aims to reduce the growth rate of cash by utilizing the convenience offered by the transaction tool. examples of typical interpretations of electronic money considering each of the three approaches are as follows: 1) electronic money payments with their use must be once and final; 2) the monetary value, represented by the request of the issuer, keep on the device and then issued after receiving funds in an amount not less than the volume of liabilities assumed then must get to pay not only by the issuer but also by other companies; 3) saving money in electronic devices can be well received by various parties so that it is very easy and useful. various researches in the field of entrepreneurship argue and respond positively to the existence of this e-money transaction and will greatly affect rapid economic growth, create jobs, reduce poverty, be motivated to innovate and minimize imbalances in the economy, especially in suburban or rural areas that really need more attention. in an effort to develop the region (kurniawan & valentina, 2019). evidence that msmes persisted when the economic crisis hit the world, which had an impact on worsening economic conditions in indonesia, occurred in 1997 and 1998. (lestari & tumiwa, 2018). this study aims to determine the existence of emoney can increase income in busang businesses, one of which is micro, small and medium enterprises. this study uses a qualitative descriptive method. it is acknowledged by most msme entrepreneurs that transactions using e-money are very easy and provide many benefits and minimize risks such as theft and loss. research method this study used descriptive quantitative method. survey was taken to 12 students who use e-money in buying products at smes. by using this method, a picture of the use and efficacy of e-money in everyday life can be depicted. anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 https://doi.org/10.21009/jobbe.004.2.01 144 results and discussions the latest technological developments have made it possible for alternative uses of cash in small amounts of transactions. electronic money was authentic born when prepaid cards by non-banks began to circulate in a wider range of acceptors outside the original issuer (rungani & potgieter 2018 ; mustofa, 2019). various groups have ease in accessing information in many ways and can enjoy the facilities of digital technology release and in a controlled manner. figure 1. e-money user it can be seen that 92% of 100% use e-money as a tool for transactions. they choose e -money because it is practical, flexible, makes it easy for users to pay, and if you use e -money get massive promos that are rarely offered. figure 2. e-money’s ease of use 100% of students answered that e-money is a payment tool that is helpful in transaction. e-money also provides convenience, speed, and practicality in conducting various payment transactions. so, you don't have to bother preparing cash to pay (lotz & vasselin, 2019). in addition, there is no need to accept change in the form of goods, because with e-money, the merchant only needs to clear directly through the computer network. some people may be familiar with smes, but some are unfamiliar with application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 https://doi.org/10.21009/jobbe.004.2.01 145 smes and they believe that e-money can be used by smes because e-money users are increasing rapidly and are suitable for all types of businesses that are being carried out by smes (soegoto & cica, 2018). finally, it is applicable because it can be used for a variety of small-value, high-frequency mass transactions, for example, toll fees, paying for transportation tickets, parking, fast food, and others. figure 3. used e-money for transaction in smes some people may be familiar with smes, but some are unfamiliar with smes and they believe that e-money can be used by smes because e-money users are increasing and are suitable for all types of businesses that are being carried out by smes. among them, 58,30% several students have made payment transactions at a store, shop, kiosk to the sme market and use e-money to payment (pratiwi & dewi, 2018). the impact of e-money is to make digital currencies more valuable and real after that financial transactions will be easier (sri dewi anggadini, 2017). non-cash payments are faster and less complicated and thus shorten the time for both customers and business owners. employee division of labor system will be more efficient and save operational costs (soegoto & rafi, 2018). the quality of system is a set of characteristics that can be seen by users as they interact with the system at a given time. smes can focus more on developing the business and allocating the funds you have for other things that are more important. application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 https://doi.org/10.21009/jobbe.004.2.01 146 figure 4. student using e-money furthermore, when asked why choosing e-money as a transaction tool, 75% of the students answered that the discount made it interesting and 66.7% of them answered that it was because of the cashback. cashback systems always attract users because if they buy an offer where the buyer accord a percentage of a refund or even given a product but meets certain buy conditions. 33.3% of them answered that e-money are not wasteful and 16.7% of them answered that e-money is ecological (rehman & ayoup, 2019 ; turgaeva el at, 2020). spending is also more organized because of frequent financial plans, while the existence of e-money is eco-friendly because it reduces the amount of paper money. after that, it's safe for people and there is no possibility of theft. it would be useful if everything can be done through transactions without cash. 58.3% of the samples trusted its safety (jasim & raewf, 2020). electronic payment systems also refer to the capacity of the security system to reduce fraud and protect users from the theft of funds and personal information. finally, there is another 8.3% because they have only used e-money once so they have not been able to feel the impact of e-money. every new technology needs to be assessed, analyzed, tested and applied quickly (gw rahman & sd anggadini, 2019). conclusions all human beings use money to do transaction and payment. the era development of technology, introduced the concept of money in digital form or e-money. digital money is more efficient, friendly and some interesting features attract many people interested in it. e-money has many positive impacts on consumers, especially smes. the existence of e-money helps smes in shortening their time and can be more focused on developing their business. application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 https://doi.org/10.21009/jobbe.004.2.01 147 references bernal, j. 2017. the recent law on e-money and financial inclusion in colombia and the regulatory role of the central bank joaquín bernal. journal of payments strategy & systems, 10(4), pp. 320-321. gw rahman, sd anggadini. 2019. online shop sales based on e-commerce. incitest. 2019. husnunnida, m., & alfiana, f. 2019. improvement of msme performance through behavior analysis of financial statements using accounting information technology. eurasia: economics & business, 27(9), 3505–3515. http:// dx.doi.org/10.1016/j.cej.2014.10.020%0ahttp://dx.doi.org/10.1016/ j.apcatb.2013.08.019%0ahttp://dx.doi.org/10.1016/j.tsf.2016.12.015 jasim, y. a., & raewf, m. b. 2020. information technology’s impact on the accounting system. cihan university-erbil journal of humanities and social sciences, 4(1), 50–57. https://doi.org/10.24086/cuejhss.v4n1y2020.pp50-57 kurniawan, b., wahyuni, s. f., & valentina, t. 2019. the influence of digital payments on public spending patterns. in journal of physics: conference series. 1402(6) p. 066085. lestari, n. d., lambey, l., & tumiwa, j. 2018. the use of e-money in state owned banks in manado. jurnal emba: jurnal riset ekonomi, manajemen, bisnis dan akuntansi, 6(4). lotz, s., & vasselin, f. 2019. a new monetarist model of fiat and e‐money. economic inquiry, 57(1), pp. 498-514. mustofa, r. h. 2019. utilization of electronic money. in iop conference series: materials science and engineering. 662(2) p. 022013. pratiwi, d. f., & dewi, c. k. 2018. factors (benefits, trust, self-efficacy, ease of use, security) affecting consumer’s perception on e-money in indonesia. jurnal sekretaris dan administrasi bisnis, 2(2), pp. 24-37. rehman, s., mohamed, r., & ayoup, h. 2019. the mediating role of organizational capabilities between organizational performance and its determinants. journal of global entrepreneurship research, 9(1), 1–23. https://doi.org/10.1186/ s40497-019-0155-5 rungani, e. c., & potgieter, m. 2018. the impact of financial support on the success of small, medium and micro enterprises in the eastern cape province. a cta commercii, 18(1), pp. 1-12. soegoto, eddy soeryanto. entrepreneurship menjadi pebisnis ulung edisi revisi. elex media komputindo, 2014. soegoto, d. s., & suprianti, f. 2019. e-business in the android application based on e-parking booking system. journal of engineering science and technology, 14(5), pp. 2621-2628. soegoto, e. s., & rafi, m. s. f. 2018. internet role in improving business transaction. in iop conference series: materials science and engineering. 407(1) p. 012059. soegoto, d. s., & cica, c. 2018. design of web-based sales information system on fashion shop in bandung, indonesia. in iop conference series: materials science and engineering. 407(1) p. 012023. application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 https://doi.org/10.24086/cuejhss.v4n1y2020.pp50-57 https://doi.org/10.21009/jobbe.004.2.01 148 sri dewi anggadini. 2017. improving the quality of accounting information system through the availability of user's competence. joumal of engineering and a pplied sciences. 12(11). pp. 9260-9265. turgaeva, a. a., kashirskaya, l. v., zurnadzhyants, y. a., olga, l., irina, a. p., & sevbitov, a. v. 2020. assessment of the financial security of insurance companies in the organization of internal control. 7(3), 2243–2254. application in payment to support small, micro, and medium enterprise. https://doi.org/10.21009/jobbe.005.1.09 anggadini, s.d., putri, w.d. journal of business and behavioural entrepreneurship, 5(1), 142-148 https://doi.org/10.21009/jobbe.004.2.01 international journal of human capital management, vol. 2 (2), december 2018 ‘ taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic chia-hua chang southern taiwan university of science and technology, taiwan husam almaghalsah southern taiwan university of science and technology, jordan email: husam.maghalsah@gmail.com abstract the aim of this research intends to investigate taiwanese egovernment websites with regards to accessibility and usability. the automated wave accessibility tool was test accessibility and nielsen’s 10 heurestic principle based surveys of 100 foreign users of the english egovernment websites were used to test the usability. the study found poor results that were unanimous across the board for usability and total of just over 100 errors for accessibility. the study proves that further research and investigation is necessary if taiwan wants to meet its own governmental ambitions with regards to egovernment . keywords: usability, accessibility, e-government, heuristic evaluation, automated accessibility evaluation tool received: 3 february2021 ; accepted: 8 february 2021 ; publish: june 2021 how to cite: chang, c.h., almaghalsah, h. (2021). taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. journal of business and behavioural entrepreneurship, 5(1), 16-41. https://doi.org/10.21009/jobbe.005.1.02 https://doi.org/10.21009/jobbe.004.2.01 17 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 introduction the currently in taipei there may an elderly person becoming visually impaired where strict social distance practice is being exercised due to the pandemic’s different strains and so has to use the national health care website. in another instance a foreigner may need the immigration website to get a current update on travel guidelines and restrictions. a third example may include any disabled person in taiwan attempting to use any government website. our current climate has changed and created circumstantial elements like the pandemic and an increasingly aging population to rely heavily on websites to perform more in-person functions as well as accommodate an elderly’s aging needs that deem some of them partially disabled. although the telephone is still an option it does cost time and money to address basic needs, functions, and information that could all be accessed online. this study will highlight two approaches, first is an automated wave accessibility test of egovernment websites, and secondly an english egovernment website foreign user survey based on nielsen’s 10 heurestic principles. the pandemic served to increase the need for usability in three separate ways. first logistically in the circumstantial elements especially for the elderly, and secondly with accessibility being an urgently dire, life or death, situation for this vulnerable demographic (dror et al., 2020). a larger and perhaps a less web exposed demographic, the elderly have been the most vulnerable to covid19. more folks are being forced to now engage with the web due to covid (dror et al., 2020). the pandemic has created a work from home phenomena which compounds this as well while it doesn’t seem to be a trend that will be waning in the post pandemic world that is to come. social distancing and performing tasks remotely due to strict quarantine measures has been the safeguard way taiwan has been able to defeat this virus not only in infection rates and deaths but also economically. the taiwanese way of life was largely preserved due to the strictest quarantine measures and contact tracing undertaken by the government of those infected or entering the country (“taiwan’s success in curbing covid-19 tops domestic cna news of 2020 focus taiwan,” n.d.). it’s two fold in that it increases remoteness forcing more seniors, the disabled, and people in general to engage with the web and this in turn places a more urgent spotlight on usability of website and accessibility of desktop websites especially for government services. the modern pandemic reality makes it urgently imperative to develop a proper egovernment web experience across the board, but also in particular with the more vulnerable such as the disabled, to prevent spread of any current or future viruses. the number of disabled persons isn’t decreasing neither is the need to serve the vulnerable. accessibility refers to the ability for disabled users such as the visually and or hearing impaired to use a government website effectively. reasons for adoption of accessibility testing is made and listed as logistical, ethical, and economic. logistical refers to the increasing number of disabled through old age as well as increasing lifespan of all humans. ensuring the government can serve its citizens’ needs also necessitates accessibility which is ethical and especially critical due to the nature of many egovernment services being health related. understanding the economic ramifications of neglecting a standard of service deemed usable to this demographic should also be clear in the spending power this demographic possesses as well as governmental cost saving measures of automation versus in-person service or call. the automated usability test tool of egovernment websites focuses on addressing this need most efficient ly and effectively with the wave accessibility tool since it is the most widely acclaimed and used (alsaeedi, 2020; shawar, 2015). the case for the use of automated test tools is made due to its mechanics, variable consistency, environmental factors accounted for just to mention a few and the quick application in avoiding distribution for instance, thus being the most effective to deliver quick results. the expansion of the web technologies not only displays the economic cost saving measures for the disabled but also through the ease of implementation of emerging accessibility technologies. https://doi.org/10.21009/jobbe.005.1.02 18 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 the expansion of web technologies also displays the need for a usability testing strategy. the web reality of the modern world presents the immediate need for a complete usable web solution to using government services. the case for a specific user based website usability evaluation survey based on nielsen’s heurestics follows the technological evolution of the it industry, which has also drastically changed and continues to modernize to meet the needs of a new generation of web users, work from home was statistically insignificant a mere decade ago. the more tailored user centered needs that would be niche or customized to the users interaction with the egovernment website requires a more user based approach, such as a survey. this ensures the evaluation of the usability of the egovernment sites based on the specific user’s purpose, as in the case of the english website foreign user. compounding the case for english website usability testing is made and the taiwanese government’s pledge to become a fully bilingual society by 2030 makes the case for nielsen 10 heuristics principles based survey have a foreign perspective. the trade driven economy and tourism sectors of taiwan round off these compelling factors for adopting this study’s techniques and will use a nielsen criteria based open and close ended satisfaction ranking questions to make future suggestions and recommendations based on the end user (mahajan et al., 2018, kaur and vinda 2016, hung et al., 2012). literature review this study will highlights two approaches first is an accessibility automated wave accessibility test of egovernment websites, and secondly an english speaking user survey based on nielsen’s 10 heurestic principles. previous research has shown a correlat ion between usability and ease of use as well as rate of use including the satisfaction of the user. research then reveals the reasons for using a foreign user of the english government website presented in accordance to taiwanese government initiatives as well as economic factors. for accessibility the research outlines the major guidelines and indicators as well as the reasons of accessibility testing adoption including the benefits of the test being automated. however, firstly a brief summation of recent development of egovernment in taiwan is required to understand the current status of egovernment and its potential for development 2.1 status and development of egovernment in taiwan taiwan’s nii established the island as a major it player in communications in east asia (deakins, dillon, & chen, 2007). gov.tw serves as the central access center of e-government websites with financial transaction capacity, e-certificates, navigation to utility systems and form capability. following those initiatives came taiwan’s digi+ (digital nation and innovative economic development plan plan from 2017 through to 2025 have goals set in its final year to have grown taiwan’s cyber economy to over $200 billion usd, and digitization range of over 80% placing the island in the top 10 internationally in it. this past year saw the end of ndc’s promotion of taiwan’s digital government initiative which was started in 2017, the island’s fifth level of e-government advancement. this 5th level of advancement plans to synergize the latest technologies like ai, cloud, etc into governmental services that would replace the archaic method of users in person or by phone requiring human personnel, thus automizing governmental services. user customized service, civic and civil participation, as well as information based implementation are the central triad of the government initiative. this study postulates that these two approaches to usability testing listed above are undoubtedly critical toward meeting taiwan’s egovernment user centered development (toshio, 2018). https://doi.org/10.21009/jobbe.005.1.02 19 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 2.2 usability usability refers to user and technical device interaction and the simplicity or ease of use to effectively and efficiently perform tasks on the device (määttä, 2007). effectiveness of a website lies in its usability (de lima salgado & freire, 2014; khajouei, zahiri esfahani, & jahani, 2017), and frequency of use (z. huang & brooks, 2012a).therefore usability has been cited in numerous products, projects, and design of different systems. (lyzara, purwandari, zulfikar, santoso, & solichah, 2019; verkijika & de wet, 2018). the most broad and conventional definition of usability is “the extent to which a product can be used by specified users to achieve specified goals with effectiveness, efficiency, and satisfaction in a specified context of use” (majrashi & hamilton, 2015; seffah & padda, 2006). this has evolved and ranged from “the extent to which a product can be used by specified users to achieve specified goals with effectiveness, efficiency, and satisfaction, in a specified context of use” to “the capability of the software product to be understood, learned, and liked by the user, when used under specified conditions”. however the iso definition of e-government usability refers to “the extent to which a website can be used by citizens to achieve specified goals with effectiveness, efficiency, and satisfaction in a specified egovernment service context.” consequently usability plays a vitally important part in the success of egovernment websites. most studies suggest comprehensive and detailed criteria strategies in web development and design (z. huang & benyoucef, 2014; king & youngblood, 2016; nielsen, 1994; wang & senecal, 2007). specifying usability will enable the assessment of usability to evolve from generalized criteria like ease of use to a more comprehensive position that entails the use of 10 usability elements. these elements include visibility of system status; synchronicity between system and the actual world; user control and independence; consistency and standards; error prevention; recognition instead of recall; flexibility and efficiency of use; look and simplistic design; issues recovery; and assist functions. breaking down usability to these specific factors makes it easier to pinpoint specific factors and narrow down the issues to specific repairable criteria thus resulting in higher degrees of usability. (z. huang & brooks, 2012a, 2012b), showed that an effective and more suitable egovernment site usually refers to high usability. (chiew & salim, 2003; leist & smith, 2014) state that “usability is now a major element in identifying the effectiveness and consequent objectives of computer software.” findings from research reveal the electronic systems such as health-care systems (weerakkody, irani, kapoor, sivarajah, & dwivedi, 2017), e-banking (fernandez, insfran, & abrahao, 2011; z. huang & brooks, 2012b; mulvey, 2008), e-commerce (díaz, rusu, & collazos, 2017; zhang, meng, guo, yin, & luo, 2015) and digital libraries (fernandez et al., 2011; fung, chiu, ko, ho, & lo, 2016; lyzara et al., 2019), service or system quality lies in usability as its critical factor (belanche, casaló, & guinalíu, 2012a). therefore undoubtedly optimum usability systems and websites will be frequently visited. 2.3 how usability influences the user usability has been found to positively and negatively influence the user’s degree of perception, trust, and fulfillment of e-government. this was one of the major findings by a study conducted by (wirtz & kurtz, 2016). the elements that revealed to be most notable by users was the fluidity of pages or forms, security, pertinent content, site usability, system stability, and help. other studies on user’s perception of e-government were conducted by (wirtz & kurtz, 2016). over 5500 users indicated that preferable websites relied on usability like flexibility, easy to find, quick to load, relevant and useful content as well as accessibility. the higher usability will positively shape the user’s perception resulting in higher rate of use of the e-government. these results were revealed in an earlier study by (mahajan, abolhassani, mcminn, & halfond, 2018) but also suggested a comprehensible and applicable formula to compute and interpret the https://doi.org/10.21009/jobbe.005.1.02 20 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 influencing elements of a user’s embracing e-government websites like satisfactory service, web design, and the user’s fulfillment with the site overall and features. the results showed that web design in accordance with the user’s purpose attained within an expected time frame as the critical element that results in better user engagement and opinion of e-government. additionally the user felt ignored when industry expert factors or recommendations were the only ones considered for e-government therefore improving web design in accordance with look, information, accessibility, navigation, and flexibility as most positively influential in compelling the individual to use egovernment regularly as 5500 user based studies revealed. to conclude studies above show that the usability of e-government plays a major role in the user’s adoption and opinion of egovernment and that the taiwanese goals of e-government are dependent on usability. 2.3.1 reasons of english website survey testing adoption the taiwanese government has pledged to make this island fully bilingual by 2030 (“taiwan’s 2030 goal to become a bilingual nation(2019-01-11)financial supervisory commission,” n.d.). therefore the application of usability testing tools over both english and mandarin sites will be vital. however in taiwan this also must be analyzed and studied from the foreign perspective as well. it is imperative therefore once recommendations based on the tool’s assessment be designed and implemented with a foreign perspective in hand. culturally contextual qualitative solutions have a greater probability of being executed with foreigners that understand their culture better than anyone else would. the manual survey questionnaire would serve to address these and any additional concerns as well as fill in gaps left by an automated test tool that would be quantitative in nature and under stricter expert based parameters therefore web usability testing of egovernment english websites is indisputable.(bashir & farooq, 2019; dourado & canedo, 2018; ji, park, lee, & yun, 2006). 2.3.2 economy and tourism taiwan’s economy has an import and export based component to it. in fact foreign trade has seen a significant uptick every year with corporate partners or companies being based out of the uk, germany, usa, japan just to name a few. this is also not restricted to business the same exists with tourism as tourist numbers hit a record high in 2019 (giroud & ivarsson, 2020). taiwan’s handling of the pandemic has only increased its visibility and exposure in the world so it is a safe bet to assume that taiwan’s tourism only continues to increase once post pandemic travel resumes. taiwan as stated in the preceding section has reemerged on the world stage wit h its reliable and technical knowhow and experience with pandemics and has led the developed world (“taiwan’s success in curbing covid-19 tops domestic cna news of 2020 focus taiwan,” n.d.). it would be ill advised to neglect its responsibility to its citizens, foreigners, students, or other residents by ignoring usability of its websites. especially in this post pandemic era an accessibility issue or a usability issue on an english egovernment website related to health could be fatal. the extraordinary efforts and expertise of taiwan’s health ministry cannot afford to fail on any type of user. in summation taiwan needs to look at adopting an accessibility test tool for all its government websites whilst ensuring that both mandarin and english websites’ usability as critically as it views national security since its trade and tourism sectors rely on english websites. 2.3.3 use of english speaking foreigners as survey participants several factors need to be considered in testing the usability of a website in cultural context as well its linguistic and functional efficacy. there are 9 such factors color, gps, location of video and content, language options, mobility within the website and web design, accurate translation, https://doi.org/10.21009/jobbe.005.1.02 21 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 content and page size congruency, lettering and character visibility, keywords, acronyms, and abbreviations. language selection and usability has often been localized by ip tracking which works well when the english speaker is residing in the country of origin. so for instance a mofa website user from canada would be well served with ip tracking however for most foreigners residing in taiwan the ip tracking will render the use of the site dysfunctional therefore the visibility and accessibility of a language transfer link is vital to meeting this objective. graphic and placement of text needs to considered in cultural context hence the use english speaking foreigners, whereby the horizontal and vertical placement of left to right and up to down will also need to be considered (carroll & carroll, 2015). color is also not immune to cultural context. “for example, testing has in fact shown that efficiency in the intelligibility and interactivity actually increased in russia when using a black and red combination for a “call to action” button whilst in italy by changing it from red to orange (arasid et al., 2018; z. huang & brooks, 2012a; sá, rocha, & pérez cota, 2016). “ (alassaf & amr, 1997; majrashi & hamilton, 2015; sauro, 2016) literal translation is where problems arise under the translation criteria. abbreviation and keywords such sida versus aids or 119 as opposed to 911 in the west are some examples of usability problems. localizing the website would consider the use of fahrenheit as opposed to celsius for an american user which could be part and parcel of the language version used, american or canadian english or uk english or australian english in this instance only the survey of foreign english speakers would outline the desired language. ip tracking can assist in this capacity as well but for foreign users residing in taiwan or at locale other than the country of their origin would still leave this issue not remedied. with the decreasing attention span of website users “the satisfaction of the page layout can be made more uniform by adopting the same layout style but also taking into consideration the textual reading conventions of different cultures.” font size legibility can range from the use of technical verbiage such as a cursive l for liters and kilometers in cultural context. finally the fitting of text into webpages rounds off the cultural factors to be considered when testing the usability of foreign english websites (fontdevila, genero, & oliveros, 2017; mukhoryanova, novikova, rudich, & bogushevich, 2016) 2.4 accessibility “one of the major elements of usability is accessibility that means the easiness of user with disabilities to access the sites.” (arasid et al., 2018; da silva, da silva, & de oliveira moraes, 2019; hung, 2012; lessa & tsegaye, 2019; verkijika & de wet, 2018) accessibility issues range from restricted or limited visibility to color blindness or even complete permanent blindness as an example. most disabilities have a wide range of conventional sensory human dysfunctionality. regardless of the sensory disability or its severity the accessibility “should offer equal opportunity to access information, removing some barriers to the communication and interaction that faced by users with disabilities in the real world” (domínguez vila, alén gonzález, & darcy, 2018a; federici et al., 2005; król & zdonek, 2020; kuzma, 2010; nuñez, moquillaza, & paz, 2019). wave accessibility testing enables optimum accessibility. therefore wave will assist in determining whether or not the egovernment website “is both accessible and compliant.” (wave website 2020). accessibility according to the wca guidelines have 4 guidelines and indicators and they are recognized as the authority for designing websites for the disabled. the guidelines and indicators are listed here: 1. perceivable: content and clickable items must be presented with respects to their disability. in other words it can't be incomprehensible to all of their capacities. https://doi.org/10.21009/jobbe.005.1.02 22 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 2. practicable: mobility with the page and the different parts must be functional. the website should not require a prompt that is beyond the disabled person’s capacity. 3. comprehensible: content and functionality of the page must be understandable. information or functionality should not be inoperable. 4. strength: information on the website should be able to withstand any problems with regards to accurate understanding by a range of different types of individuals such as tech support or other it experts or help automated tools. regardless of upgrades or emerging technologies or software or platforms should not impact the users’ capacity to obtain the information or service the user requires. (“introduction to understanding wcag 2.1,” n.d.) “if any of these are not true, users with disabilities will not be able to use the web. under each of the principles are guidelines and success criteria that help to address these principles for people with disabilities. there are many general usability guidelines that make content more usable by all people, including those with disabilities. however, in wcag 2.1, we only include those guidelines that address problems particular to people with disabilities. this includes issues that block access or interfere with access to the web more severely for people with disabilities.” (“introduction to understanding wcag 2.1,” n.d.) 2.4.1 reasons of accessibility testing adoption worldwide there are over 750 million disabled people and this number will only increase with medical advances increasing the lifespan of humans everywhere. in taiwan in particular having one of asia’s oldest populations it is imperative that accessibility be addressed as this demographic continues to age. there would be an economic burden forcing these folks to bog down the system by needing direct human support each and every time. the pandemic reality outlined above also further complicates this interaction and leaves the most vulnerable a burden on the taiwanese economy. all the while the folks needing accessibility will feel more vulnerable due to the government’s inability to provide services that won’t place them at risk of infection at worst or inconvenience them with cost and time spent on having to come in to an office in person at best. they would also feel further ostracized if not outright discriminated against by their own government through its benign neglect to provide the same degree and level of services as their sons or daughters have access to. additionally, disabled folks make a significant portion of the economy as consumers and producers. in other words there are disabled folks that have amassed great resources like stephen hawkins. to summarize there are humane, economic, and ethical factors for providing attention and resources to accessibility in egovernment development of websites. 2.4.2 automated test tool this study intends to make the case for automated evaluation of egovernment websites for accessibility using the wave accessibility test tool on desktops. the automated wave accessibility tool is the industry standard for accessibility problems of desktop websites (adepoju, shehu, & bake, 2016; ansari, baqar, hassan, & saeed, 2016; hung, 2012; karaim & inal, 2019; mtebe & kondoro, 2017). accessibility on taiwanese egovernment websites on the whole is a critical element if not a foundational component of designing egovernmental. accessibility should apply in similar quality across all egovernment websites in taiwan as it reflects a developed government’s competency to care for one of its most vulnerable constituency, the disabled. furthermore since the automated wave accessibility tool is also used the actual accessibility standards will be conventionally applied on the desktop websites (campoverdehttps://doi.org/10.21009/jobbe.005.1.02 23 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 molina, lujan-mora, & garcia, 2020; domínguez vila et al., 2018a; hassouna, sahari, & ismail, 2017; król & zdonek, 2020; máñez-carvajal, cervera-mérida, & fernández-piqueras, 2019; nuñez et al., 2019; paul & das, 2020). general shortfalls in the use of automated test tool may be the strictly quantitative approach in addition and a uniform solution for all sites which is precisely what usability is trying to achieve, uniformity as far as aesthetics go with text sizes, links, margins and spacing. seven wave problem indicators have been identified in this study as major accessibility errors, contrast errors with very low contrast being a commonly appearing problem. alerts with tabs, access key, redundant titles and alternative text being covered. features problems with linked image with alternative text including form labels, and language. in structural elements problems undordered lists, navigation, headings, footers are some of the areas included and lastly under accessible rich internet applications numerous label tab index and descriptions of the technologies being able to be comprehensible to persons with disabilities. research method this study will utilize an automated usability test tool the wave accessibility will be applied to gather any accessibility issues from egovernment desktop websites. additionally, this study will employee nielsen’s 10 heuristic principles of usability in the survey questionnaire which will collect data from a survey that will be composed of quantitative and qualitative based questions. the two strategies of a thoroughly rounded and comprehensive usability test of egovernment websites will include:  wave accessibility test of egovernment websites.  nielsen heuristic based questionnaire survey. 3.1 automated accessibility evaluation tool wave people with disabilities require special technical assistance in the form of accessibility. accessibility is known as rules and tools that web developers or coders use to make a website functional to individuals with temporary or permanent disability. the general rules are outlined by international web content accessibility guidelines wcag (yakup & kemal, 2016). the use of this tool will outline any violations as well as enhance the quality with regards to accessibility of the website. the wcag meets the world wide web consortium (wave accessibility) standards which is the international web industry standard for websites. several egovernment websites will be tested using the wave accessibility evaluation tool. this tool is defined as “a suite of evaluation tools that helps authors make their web content more accessible to individuals with disabilities. wave can identify many accessibility and web content accessibility guideline (wcag) errors, but also facilitates human evaluation of web content”(web content accessibility guidelines (wcag) 2.1, n.d.). web accessibility have a 7 criteria checklist which are consistency, transformability, multimodality, focus and structure, readability and language, orientation and error prevention/recovery, and assistive technology compatibility (c. j. huang, 2003) . consistency deals with consistent navigation and predictability with results for similar actions taken on the website. transformability refers to the text and images being scalable as well as the website being comprehensible even when color, images or different styles are disabled. multi-modality is concerned with providing content under multiple mediums such as video, audio, or close captioned text as well as pairing icons or graphics with text for comprehension of the content including using images to enhance the understanding of the page overall. focus and structure deals with the overall use of white space to separate elements as well minimizing distractions or background sound as well as ensuring the content is structured in a manner that highlights the features and options in a manner that is easy to use. readability and language refer to the comprehension of the text including technical aspects https://doi.org/10.21009/jobbe.005.1.02 24 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 like text size, color, and spacing just to name a few. orientation and error prevention/recovery has to do with web page time outs, error messages, the ability to undo to redo certain functions just to mention a few. finally assistive technology compatibility has to do with the technology that will enable a disabled individual to understand form labels, tables, alternative text, etc. 3.2 nielsen’s heuristics based survey questionnaire the desktop english survey will test usability of governmental websites translated in english for both problem areas and areas of qualitative data with a cross cultural component can be captured here. nielsen’s founding principles are outlined in the following 10 hypotheses: table 1 descriptions of variables used to measure usability according to the 10 principles usability heuristics (nielsen, 1994) clarifications h1. visibility (v) the user must not be confused with extended lag time so the user should be aware of the site’s functionality. h2. match between system and the real world (mbs) the user should be able to understand the website’s appearance naturally and logically according to modern real world examples. h3. user control and freedom (ucf) exit, undo, and redo functionality. h4. consistency and standards (cs) general real world consistency and layout functions throughout the page. h5. error prevention (ep) the user should be assisted with errors and the reoccurrence of them. h6. recognition (r) functions, choices, and features should be recognizable and ease of access to tools. h7. flexibility and efficiency of use (feu) flexible to different types of users with regards to age or it competency and customization of common funcions. h8. aesthetic and minimalist design (amd) content must be the most common and current information that is generally required any additional content or details takes valuable space and attention away from the most pertinent information on the site. h9. help users recognize, diagnose, and recover from errors (hu) alerts of errors should be clear and solution oriented steps available for the user. h10. help and documentation (h) support and help should accessible and highlight the individual’s mission while providing a practical and workable instructions. additional variable that was inserted to this study (shareef, kumar, kumar, & dwivedi, 2011) clarifications h11. language options (l) the capacity for english pages to assist the user in using the page in the language of their choice. 3.3 mixed method of accessibility and english foreign user usability the overall usability of a website is based on the website’s capacity to be usable by everyone including the disabled and english language users hence the mixed method being used using the wave automated test tool and a survey questionnaire. they use drastically different methods that are based on different independent variables. accessibility based on web accessibility guidelines and web usability based on nielsen’s 10 heurestic principles. some major usability factors like a https://doi.org/10.21009/jobbe.005.1.02 25 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 dysfunctional link would be caught as an error by one of the 5 indicators as well as by one of the 10 principles. this mixed method strategy employed in this study can provide the government with a more complete picture of their website’s usability with respects to english foreign users without neglecting accessibility across desktop platforms. making the website usable to users with disabilities contributes to the overall usability of the website since usability by all kinds of users determines the foundation on which a website would be deemed to be usable. the mixed method also combines addressing the needs of foreign english users through the nielsen heuristic based questionnaire survey. in summation accessibility on desktop websites and usability of english language website on a desktop platform overlap in some major areas whist covering the overall performance of websites as well increasing the visibility of the website (kwangsawad, jattamart, & nusawat, 2019). 3.4 survey questionnaire data analysis from desktop and websites two separate strategies will be adopted here in order to achieve two separate findings objectives:  firstly we would like to analyze the desktop egovernment website tested under smartpls which is a variant based alternative method of structural equation modeling (sem) method. the partial least square (pls) analysis technique is done in three phases, namely: phase 1) is to carry out an indicator reliability test (loading value of a factor), which is to test the validity and reliability of the constructs of each indicator. phase 2) is to test the structural model, accomplished to ensure that the structural model built is robotic and accurate. phase 3) hypothesis testing is done by looking at the probability value and tstatistics.  secondly the automated wave accessibility tool is the industry standard for accessibility problems of desktop websites (adepoju et al., 2016; ansari et al., 2016; hung, 2012; karaim & inal, 2019; mtebe & kondoro, 2017). the use of this tool will outline any violations as well as enhance the quality with regards to accessibility of the website. this tool is defined as “a suite of evaluation tools that helps authors make their web content more accessible to individuals with disabilities. wave can identify many accessibility and web content accessibility guideline (wcag) errors, but also facilitates human evaluation of web content”(web content accessibility guidelines (wcag) 2.1, n.d.). 3.5 survey participant sampling size and population rationale participants in the survey are english speaking foreigners in compliance with taiwan’s 2030 bilingual initiative. therefore the survey questionnaire will be conducted by 100 participants for the ministry of foreign affairs, bureau of consular affairs, and ministry of the interior national immigration agency. result and discussion in this section we will discuss the results of websites usability and the website accessibility in the following order. the discussion section will also explore further research and recommendations. limitations will also be discussed in this section. 4.1 websites usability results (ministry of the interior national immigration agency) https://doi.org/10.21009/jobbe.005.1.02 26 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 the usability results will be have the assessment of the listed websites according to the 10 heurestic principles with a numeric value under each variable that corresponds to each principles. an additional language variable is also listed here to provide an assessment of language as its own variable. 4.1.1 indicator reliability indicator reliability can be seen in (table 2). the value of indicator reliability is the loading value of a factor in the latent variable with indicators. in the model pls, an indicator can be reliable if it has loading value 0.70 or higher is preferred. if it is an exploratory research, 0.4 or higher is acceptable (liu, 2012). indicator reliability” (see table 1). it can be seen that all of the indicators have individual indicator reliability values that are much larger than the minimum acceptable level of 0.4 and close to the preferred level of 0.7. table 2 loading factor value amd cs efu ep hd hu l mbs r ucf v amd1 0.505 amd3 0.962 amd4 0.582 cs1 0.897 cs2 0.619 cs4 0.750 efu2 0.934 efu3 0.915 ep1 0.791 ep2 0.887 ep3 0.837 ep4 0.852 hd1 0.648 hd2 0.510 hd3 0.916 hu1 0.889 hu2 0.951 hu3 0.803 hu4 0.825 l1 0.921 l2 0.878 l4 0.723 mbs1 0.913 mbs2 0.800 r1 1.000 ucf1 0.811 ucf2 0.846 ucf3 0.614 v1 0.866 v2 0.596 v3 0.573 v5 0.851 4.1.2 reliability and validity 4.1.2.1 reliability test https://doi.org/10.21009/jobbe.005.1.02 27 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 the validity of each variable principle is based on the cr test (composite reliability). the cr value should be greater than or equal to 0.7 while 0.6 is acceptable for exploratory research ((belanche, casaló, & guinalíu, 2012b; nasir & morgan, 2017). (table 3) reveals the consistency of all the dependent variables as valid and having good reliability. 4.1.2.2 validity test convergent validity refers to the capacity of every principle to correspond with an explanation of the study principle variables being measured. the validity of each principle variable is determined through the cv (convergent validity) test that measured the ave (average variance extracted) of each principle and an ideal variable value be equal to or greater than 0.5 (bagozzi & yi, 1988). (table 3) shows all the principles values of each variable loading factor greater than 0.5 then each principle is considered valid. table 3 reliability and validity variables composite reliability average variance extracted (ave) amd 0.739 0.506 cs 0.804 0.583 efu 0.922 0.854 ep 0.907 0.710 hd 0.743 0.506 hu 0.925 0.755 l 0.711 0.713 mbs 0.848 0.736 r 1.000 1.000 ucf 0.805 0.583 v 0.819 0.540 4.1.3 hypothesis test the value is determined by testing the model form the t stat value amidst the independent and dependent variables from the path coefficient table. the ideal value of 5% with a t-value of 1.96 (hair, risher, sarstedt, & ringle, 2019). hence our hypothesis deems the website as usable if p-value is less than or equal to 0.05 or t-value is greater than 1.96. table coefficient path and t-test is listed in (table 4). based on path coefficient metrics below, obtained t statistical value for all hypotheses, we can conclude that in all 10 heurestic principles were a fail and especially including language as the extra variable measuring at 0.449 on the t table when it should have been 1.96. the overall p values in all categories were also a fail, with all the variables measuring well above the standard set at 0.05. therefore they do not meet etu (easy to use). the urgent improvement of these 10 heurestic principles are imperative to achieving usability within egovernment in accordance with the recommendations of (z. huang, 2010; kumar, mukerji, butt, & persaud, 2007) suggest enhancing website design, specifically with regards to navigation, aesthetics, content, accessibility, customization and in all the nielsen heurestic principles in general are extremely likely to motivate users’ adoption of e government. the nielsen 10 heurestic principles are listed here below including this study’s unique contribution of language as the eleventh variable. amd aesthetic and minimalist design, cs consistency and standards, efu flexibility and efficiency of use, ep error prevention, hd help and documentation, hu help users recognize, diagnose and recover from errors, our unique language mbs match between https://doi.org/10.21009/jobbe.005.1.02 28 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 system and the real world, r recognition rather than recall, ucf user control and freedom,v visibility of system status. table 4 path coefficient matrix variables original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values amd -> etu 1.216 0.081 2.228 0.546 0.920 cs -> etu 4.411 -0.275 8.746 0.504 0.955 ep -> etu 0.640 -0.197 2.988 0.214 0.495 hd -> etu -2.153 0.304 6.321 0.341 0.988 hu -> etu 2.491 -0.255 4.216 0.591 0.973 l -> etu 0.142 0.029 0.316 0.449 0.961 mbs -> etu 3.792 -0.480 7.063 0.537 0.862 r -> etu 0.507 0.094 1.327 0.382 0.972 ucf -> etu -10.397 1.222 19.902 0.522 0.925 v -> etu -10.397 1.222 19.902 0.522 0.970 4.2 websites usability results (bureau of consular affairs) 4.2.1 indicator reliability indicator reliability can be seen in (table 5). the value of indicator reliability is the loading value of a factor in the latent variable with indicators. in the model pls, an indicator can be reliable if it has loading value 0.70 or higher is preferred. if it is an exploratory research, 0.4 or higher is acceptable. indicator reliability” (see table 4). it can be seen that all of the indicators have individual indicator reliability values that are much larger than the minimum acceptable level of 0.4 and close to the preferred level of 0.7. table 5 loading factor value amd cs efu ep hd hu l mbs r ucf1 v1 amd1 0.984 amd2 0.927 amd5 0.872 cs2 0.934 cs5 0.935 efu1 0.814 efu4 0.705 ep1 0.943 ep2 0.877 ep4 0.711 hd1 0.979 hd2 0.663 hd3 0.835 hu1 0.782 hu2 0.889 hu3 0.829 hu4 0.887 https://doi.org/10.21009/jobbe.005.1.02 29 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 l1 0.966 l2 0.961 mbs1 0.614 mbs2 0.582 mbs3 0.899 r2 1.000 ucf1 0.913 ucf2 0.603 v1 0.865 v3 0.688 v5 0.740 4.2.2 reliability and validity 4.2.2.1 reliability test the validity of each variable principle is based on the cr test (composite reliability). the cr value should be greater than or equal to 0.7 while 0.6 is acceptable for exploratory research (bagozzi & yi, 1988). (table 6) reveals the consistency of all the dependent variables as valid and having good reliability. 4.2.2.2 validity test convergent validity refers to the capacity of every principle to correspond with an explanation of the study principle variables being measured. the validity of each principle variable is determined through the cv (convergent validity) test that measured the ave (average variance extracted) of each principle and an ideal variable value be equal to or greater than 0.5. (table 6) shows all the principles values of each variable loading factor greater than 0.5 then each principle is considered valid. table 6 reliability test and validity test variables composite reliability average variance extracted (ave) amd 0.835 0.627 cs 0.803 0.522 efu 0.714 0.564 ep 0.806 0.511 hd 0.869 0.692 hu 0.930 0.769 l 0.769 0.774 mbs 0.748 0.691 r 0.837 0.719 ucf 0.912 0.838 v 0.931 0.730 4.2.3 hypothesis test the value is determined by testing the model form the t stat value amidst the independent and dependent variables from the path coefficient table. the ideal value of 5% with a t-value of 1.96. hence our hypothesis deems the website as usable if p-value is less than or equal to 0.05 or tvalue is greater than 1.96. table coefficient path and t-test is listed in (table 7). based on path coefficient matriks above, obtained t statistical value for all hypothesis, we can conclude that only ucf user control and freedom and v visibility of system status from nielsen’s 10 heurestic https://doi.org/10.21009/jobbe.005.1.02 30 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 principles were a pass. all other 7 nielsen heurestic principles were a fail and especially including language was a notable fail. the improvement of these principles and language are urgent in meeting usability standards as discussed in this paper and reaffirmed by numerous studies up and including (hvannberg, law, & lárusdóttir, 2007; ivory & chevalier, 2002; lavery, cockton, & atkinson, 1996) that suggest enhancing website design, specifically with regards to amd, cs, efu, ep, hd, hu, are extremely likely to motivate users’ adoption of e government. the nielsen 10 heurestic principles are listed here below including this study’s unique contribution of language as the eleventh variable. amd aesthetic and minimalist design, cs consistency and standards, efu flexibility and efficiency of use, ep error prevention, hd help and documentation, hu help users recognize, diagnose and recover from errors, our unique language mbs match between system and the real world, r recognition rather than recall, ucf user control and freedom,v visibility of system status. table 7 path coefficient matrix variables original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values amd -> etu 0.121 0.131 0.100 1.209 0.227 cs -> etu 0.147 0.131 0.083 1.762 0.079 efu -> etu 0.052 0.048 0.087 0.597 0.551 ep -> etu 0.082 0.106 0.101 0.807 0.420 hd -> etu 0.048 0.024 0.097 0.498 0.619 hu -> etu 0.137 0.105 0.135 1.019 0.309 l -> etu 0.192 0.219 0.140 1.370 0.171 mbs -> etu 0.109 0.113 0.070 1.546 0.123 r -> etu 0.041 0.035 0.056 0.727 0.468 ucf -> etu 0.157 0.144 0.066 2.371 0.018 v -> etu 0.168 0.166 0.068 2.470 0.014 4.3 websites usability results (ministry of foreign affairs) 4.3.1 indicator reliability indicator reliability can be seen in (table 8). the value of indicator reliability is the loading value of a factor in the latent variable with indicators. in the model pls, an indicator can be reliable if it has loading value 0.70 or higher is preferred. if it is an exploratory research, 0.4 or higher is acceptable. indicator reliability” (see table 8). it can be seen that all of the indicators have individual indicator reliability values that are much larger than the minimum acceptable level of 0.4 and close to the preferred level of 0.7. table 8 loading factor value amd cs efu ep hd hu l mbs r ucf1 v1 amd1 0.984 amd2 0.927 amd5 0.872 cs2 0.934 cs5 0.935 efu1 0.814 efu4 0.705 https://doi.org/10.21009/jobbe.005.1.02 31 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 ep1 0.943 ep2 0.877 ep4 0.711 hd1 0.979 hd2 0.663 hd3 0.835 hu1 0.782 hu2 0.889 hu3 0.829 hu4 0.887 l1 0.966 l2 0.961 mbs1 0.614 mbs2 0.582 mbs3 0.899 r2 1.000 ucf1 0.913 ucf2 0.603 v1 0.818 v3 0.734 v5 0.853 4.3.2 reliability and validity 4.3.2.1 reliability test the validity of each variable principle is based on the cr test (composite reliability). the cr value should be greater than or equal to 0.7 while 0.6 is acceptable for exploratory research (bagozzi & yi, 1988). (table 9) reveals the consistency of all the dependent variables as valid and having good reliability. 4.3.2.2 validity test convergent validity refers to the capacity of every principle to correspond with an explanation of the study principle variables being measured. the validity of each principle variable is determined through the cv (convergent validity) test that measured the ave (average variance extracted) of each principle and an ideal variable value be equal to or greater than 0.5. (table 9) shows all the principles values of each variable loading factor greater than 0.5 then each principle is considered valid. table 9 reliability test and validity test variables composite reliability average variance extracted (ave) amd 0.950 0.863 cs 0.799 0.610 efu 0.733 0.580 ep 0.845 0.593 hd 0.872 0.699 hu 0.911 0.718 l 0.748 0.876 mbs 0.748 0.508 https://doi.org/10.21009/jobbe.005.1.02 32 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 r 1.000 1.000 ucf1 0.741 0.599 v1 0.809 0.528 4.3.3 hypothesis test the value is determined by testing the model form the t stat value amidst the independent and dependent variables from the path coefficient table. the ideal value of 5% with a t-value of 1.96. hence our hypothesis deems the website as usable if p-value is less than or equal to 0.05 or tvalue is greater than 1.96. table coefficient path and t-test is listed in (table 10). based on path coefficient metrics above, obtained t statistical value for all hypothesis, we can conclude that we can conclude that in all 10 heurestic principles were a fail and especially including language as the extra variable was a massive fail. the improvement of these pinciples is in line with the recommendations (kumar et al., 2007; roy, pattnaik, & mall, 2014; shareef et al., 2011) that suggest enhancing website design, specifically with regards to navigation, aesthetics, content, accessibility, and customization is extremely likely to motivate users’ adoption of e government. the nielsen 10 heurestic principles are listed here below including this study’s unique contribution of language as the eleventh variable. amd aesthetic and minimalist design, cs consistency and standards, efu flexibility and efficiency of use, ep error prevention, hd help and documentation, hu help users recognize, diagnose and recover from errors, our unique language mbs match between system and the real world, r recognition rather than recall, ucf user control and freedom,v visibility of system status. table 10 path coefficient matrix variables original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values amd -> etu 0.133 0.768 13.373 0.010 0.992 cs -> etu 0.105 0.146 7.128 0.015 0.988 efu -> etu 0.139 -0.635 12.367 0.011 0.991 ep -> etu 0.016 0.691 20.257 0.001 0.999 hd -> etu 0.058 -0.542 12.434 0.005 0.996 hu -> etu 0.156 0.068 11.577 0.013 0.989 l -> etu 0.009 0.052 4.060 0.002 0.998 mbs -> etu -0.055 0.506 11.777 0.005 0.996 r -> etu -0.042 -0.439 12.824 0.003 0.997 ucf1 -> etu 0.062 0.509 7.691 0.008 0.994 v1 -> etu 0.572 -0.713 25.283 0.023 0.982 4.4 websites accessibility results (ministry of the interior national immigration agency) https://doi.org/10.21009/jobbe.005.1.02 33 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 the accessibility results will be have the assessment of the listed websites according to the internationally recognized guidelines for accessibility. each problem area will have a numeric value given and it will assessed for accessibility. recommendations and further research will also be discussed and suggested if necessary. table 11 problems report problems contrast errors alerts features structural elements aria details (6) very low contrast (1) long alternative text (2) no script element (4) access key (2) tab index (12) redundant title text (15) linked image with alternative text (1) form label (1) language (1) heading level 1 (2) heading level 2 (21) unordered list (1) header (3) navigation (1) footer (1) aside (10) aria (5) aria label (3) aria description (7) aria tab index (2) aria hidden total 6 21 17 30 27 as clearly made visible in (table 11), the national immigration website has revealed a dire and urgently negative standing with accessibility indicators in 5 problem areas having been highlighted above. some of these problem indicator include 6 instances of contrast errors of very low contrast to 12 alerts under redundant titles to 15 features problems with linked image with alternative text to 21 problems under undordered list of structural elements not including several navigation problems and finally under aria 10 instances with aria just to name a few. there are numerous errors under numerous subcategories of each problem indicators except contrast errors of the accessibility checklist that are shown in the above graphic and chart. https://doi.org/10.21009/jobbe.005.1.02 34 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 4.5 websites accessibility results (bureau of consular affairs) table 12 problems report as the above in (table 12) graphic illustrates and shows the national bureau of consular affairs in dire and urgent standing with regards to accessibility as it fails in 6 categories of the study’s checklist of accessibility. with a major error to 45 instances of contrast errors of very low contrast to 15 alerts under redundant titles and alternative text to 40 features problems with linked image with alternative text to 13 problems under undordered list with 10 heading level 2 subcategories of structural elements problems not including several navigation problems and finally under aria 32 instances of aria hidden just to name a few. there are numerous errors under numerous subcategories of each problem indicators except for constrast errors under the accessibility checklist. problems error contrast errors alerts features structural elements aria details 1 error (45) very low contrast (7) redundant alternative text (1) long alternative text (2) no script element (5) access key (9) tab index (1) very small text (8) redundant title text (40) linked image with alternative text (1) from label (2) language (1) heading level 1 (10) heading level 2 (13) unordered list (4) navigation (1) search (4) aria label (2) arai tab index (2) arai alert or live region (32) aria hidden total 1 45 111 43 29 40 https://doi.org/10.21009/jobbe.005.1.02 35 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 4.6 websites accessibility results (ministry of foreign affairs) table 13 problems report the ministry of foreign affairs website shows in (table 13) numerous problem areas in dire or urgent need of repair under 4 problem areas. some of them include 11 instances of contrast errors under very low contrast to a staggering 182 indicators under alerts problem to a massive 87 cases of linked image with alterative text under features problem and 69 unordered list problems under structural elements. there are numerous subcategories with errors under each problems indicator except contrast errors. discussion following the data from the research conducted using foreign surveys of english egovernment websites as well as accessibility of egovernment websites listed in this study reveal some urgently troubling outcomes with regards to our overall model of usabilit y. the model of usability contains numerous components like web usability, and accessibility. although the websites are functional this study has tested the above websites according to the parameters set in this field of study set by academics and researchers cited below in accordance to the industry problems contrast errors alerts features structural elements details (11) very low contrast (1) no page regions (1) skipped heading level (3) suspicious link text (4) access key (182) redundant title text (87) linked image with alternative text (2) from label (1) language (1) heading level 1 (1) heading level 2 (26) heading level 3 (7) heading level 4 (69) unordered list total 11 193 90 104 https://doi.org/10.21009/jobbe.005.1.02 36 | p a g e chang, c.h., almaghalsah, h. journal of business and behavioural entrepreneurship, 5(1), 16-41 taiwan’s e-government usability from foreign perspective and website accessibility amid covid-19 pandemic. https://doi.org/10.21009/jobbe.005.1.02 standard testing tools for accessibility and u usability. other industries from governmental agencies to the private sectors like online shopping would benefit largely by making use of this study’s findings whilst expanding on them. the specific findings in this study reinforces the need for further studies of egovernment websites testing using both approaches utilized in this study. the foreign usability survey questionnaires of the three tested websites came back with problem areas in under every single heurestic principle only the user control freedom and visibility principles were met by the bureau of consular affairs website only. this indicates that there are major usability issues to address in all three egovernment websites and by extension one could postulate that most of the egovernment website if not all require some level of redesign (z. huang & benyoucef, 2014) if not tweaking to meet the usability standards expected by the user that engages and interacts with website. furthermore, the improvement of these principles in general are likely to motivate users’ adoption of egovernment (shawgi & noureldien, 2015; jimenez, lozada, & rosas, 2016; z. huang & benyoucef, 2014). although the principles are industry tested and academically established the actual surveys are user centered making the problem areas identified as constituent based. in other words the websites used in this survey were websites that are of particular interest to the demographic the website was designed to service. therefore if this were in the private sector it could be said it was customer centered problems that were identified in these surveys. however most troubling was the unanimous failed score under the language variable in this study which makes it exponentially imperative to address these issues immediately since it is a foreign user based survey of english egovernment websites. the wave accessibility tool used on the egovernment websites in this study reveal a troubling trend with regards to meeting international accessibility checklist and unanimously the findings were numerous in at least 4 or more major problem areas with the problems varying in nature from low contrast to linked images with alternative text problems on every website with well over 100 problem indicators on each egovernment website. this is very critical state of standing for taiwan’s egovernment websites in accordance to the international accessibility guidelines. this study in no way asserts that the egovernment websites are dysfunctional for disabled people (alahmadi & drew, 2017; domínguez vila, alén gonzález, & darcy, 2018b; c. j. huang, 2003) although the bureau of consular affairs did reveal one major error in accessibility. nevertheless the discussion of the assessment of the data revealed by this study as it relates to internationally recognized and set standards for accessibility reveal a very urgent look at taiwan’s egovernment websites and have further research to test other websites as well as testing the mobile version of these sites. one could postulate that a majority if not all the egovernment websites in taiwan need urgent accessibility research. conclusion this study can conclude that the research data reveals that accessibility and usability of english egovernment websites need further evaluation. the study revealed numerous reasons for this research and outlined the vulnerability of the demographic that falls under accessibility, the elderly and the disabled, as well as the general populations’ reliance on the web due to covid-19. additionally the case for usability testing of english e-government websites was clearly made since taiwan aspires to be fully bilingual and due to the fact that english has become the international language of use by foreigners. economic factors for both accessibility requiring users and foreign users were also outlined from cost saving measures to their spending power. the research data only confirmed this study’s fears that accessibility of some e-government website is not in line with taiwan’s digital development initiative. the study is also unique in using a foreigner’s perspective to assess usability of english e-government websites. the research data indicates that the usability of the three english e-government websites that were tested fell well short of the user-centered 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(2015). key e-government issues in china: an empirical study based on the orientation-maturity framework. electronic commerce research, 15(3), 407–425. https://doi.org/10.1007/s10660-015-9190-7 https://doi.org/10.21009/jobbe.005.1.02 1 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 evaluation on implementation of performance management in asuransi jiwa bersama (ajb) bumiputera 1912 sri nurchayati hr departement, ajb bumiputera 1912. sri.nurchayati@yahoo.com abstract this study aimed to evaluate the implementation of performance management in ajb bumiputera 1912. this study uses dem (discrepancy evaluation method) evaluation method. the components that were evaluated are the component of design, installation, implementation, and outcome. the methods used in this study is a questionnaire on 51 unit leader respondents at the headquarter and regional offices, the 150 employees of the central office, the interview method on 10 respondents, observation and study documentsmethod. the results of this study indicate that there is a gap between the actual conditions (performance) with the condition that should be happened (standard) on all four components that were analyzed. in conclusion, it is necessary to do some improvements to reduce the gap so that the actual conditions more closely the conditions that should be happened. the improvements that need to be done are alignment of the performance management design with the needs of company at this time, the need for commitment to change from the top down, implementation of reward and punishment continuously,and the need to support tools and technologies that were integrated, so the individual and team performance increased and imply to organization performance to be a leading position in life insurance industries in indonesia. keyword: performance management, discrepancy evaluation model, discrepancy, transformation of human resource management. introduction to improve the quality of hr in ajb bumiputera 1912 to become the company's competitiveness, it is necessary to developthecompetency-based hr management system that integrated so that it will improve the satisfaction and productivity of work, and provide the objectives assessment of performance evaluation process. therefore, it is important to do research and evaluation on the implementation of performance management in ajb bumiputera 1912, so it can picture whether the existing system is a valid and precise measuring tool and is already implemented properly to evaluate the performance of employees in ajb bumiputera 1912. according to ivancevich (2007), there are three crucial elements needed by the organization to be effective, they are: (1) the mission and strategy; (2) the organizational structure; (3) management of human resources. noe (2011) defines performance management as the process in which managers ensure that the output and activities of employees arealign with the organizational goals. further said that performance management is the core to achieve competitive advantage. armstrong (2009) said performance management contribute to the achievement of cultural change and also integrated with the keys of the other hr activities, especially human resource management, talent management, learning &development, and reward management. performance management helps achieve horizontal integration and unification of hr practices that become connected and complementary and reinforce each other. as an important part of high-performance 2 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 work systems, performance management systems contribute to the development of more effective work that determines the level of performance. the results of the research that are relevant to this study are: 1) ipsita c. patranabis dan sharmistha banerjee entitled “impact of emotional intelligence on performance of insurance marketers: a study of personnel in indian public sector; 2) keyvan farivar, ali tizroo, dan farzad sattari ardabil entitled “surveying the relationship between role definition and performance enhancement of insurance companies‟ sale networks in ardabil province; 3) hyondong kim dan kang sungchoon entitled “strategic hr functions and firm performance: the moderating effects of high-involvement work practices; 4) suman pathak dan vibhuti tripathi entitled “sales force turnover: an exploratory study of the indian insurance sector; 5) venclová kateřina, šalková andrea, koláčková gabriela entitled “identification of employee performance appraisal methods in agricultural organizations; 6) konrad walser, etienne huber, andré meister entitled “planning, budgeting and performance management at swiss hospitals – are swiss hospitals at a crossroads – will these medical specialist organisations in future develop into institutions with a business orientation?; 7) du jing-yi entitled “staff performance appraisal based on data envelopment analysis (dea); 8) s. baloyi, c.c. van waveren, & k.-y. chan entitled “the role of supervisor support in predicting employee job satisfaction from their perception of the performance management system: a test of competing models in engineering environments”; 9) c guido alessandri, michele vecchione, john tisak, entitled “the utility of positive orientation in predicting job performance and organisational citizenship behaviors; 10) zijiang yang entitled "a two-stage dea model to evaluate the overall performance of canadian life and health insurance companies". as well as human resource management activities in general, the department of human resources in ajb bumiputera 1912 at the end of every year do performance appraisal and the administration of employee performance evaluation results compiled from the results of performance assessment made by leaders of work units respectively. based on the sk no. 22 / dirpel / 1994, there has been a change in the remuneration system, which was previously based on the period of the employment into the remuneration system based on the merit system. merit system is a system of pay based on employee performance, so that the necessary tools to measure performance based on an assessment of the work performance is concerned. based on the sk no. 22 / dirpel / 1994, those involved in the management of employee performance in ajb bumiputera 1912 are: (1) structural official, (2) superior assessor, and (3) performance assessment committee. assessment work is done on every july for observation period january to june, and assessment on every january for observation period january to december. the assessment of this employee‟sperformance done in each work unit in the head office, regional offices and branch offices spread across indonesia, and also for employees who are placed in subsidiaries that receive payroll from ajb bumiputera 1912. the assessment criteria for the employees in the central office and branch office employees are distinguished diffrently. the grouping of central office employees can be divided into: employees, functionaries and structural officials. while grouping of branch office employees can be divided into: employees, functionaries, back office officials, and marketing officials (individual and group insurance divisions). each criterion is defined in scale of values as follows: 95-100; 8094; 60-79; 40-59, and each scale given descriptive explanation. there are four (4) dimensions used in the assessment of employee performance, there are: (1) achieving target, (2) technical and administration capability, (3) professional and personality factors, and (4) managerial capabilities factors. methods of performance assessment in ajb bumiputera 1912 conducted by using 180-degree feedback, assessments done from superiors to subordinates, and to validate the results of the 3 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 assessment carried out further appraisal by superiors direct from the evaluator itself. broadly speaking, the performance appraisal process in ajb bumuputera 1912 can be seen in the following figure: figure 1. process flow of performance evaluation in ajb bumiputera 1912.. in general, the evaluation is an assessment of the implementation of a program that has been carried out and that will be used to predict, calculate, and control the execution of the program so that implementation of the program in the future is much better. according to naihasy (2006), the evaluation in terms of more specific, is concerns the production of information about the value or benefit of a policy. when the result of the policy turned out to have value, then these results contribute to the goals and objectives. it can be said that the policy or program has achieved a meaningful level of performance, which means that the policy issues made clear or overcome. meanwhile, according to nugroho (2009), the evaluation is necessary to look at the gap between hope and reality. evaluation program is a systematic method to collect, analyze, and use information to answer the basic questions about the program. according to arikunto and abdul jabar (2008) evaluation of the program is an attempt to know the implementation of a policy. evaluation can be used to check the rate of success of the program relating to the environment of the program with a judgment whether the program is passed, delayed, improved, developed, accepted, or rejected. purpose based on the these problems mapping, the focus of this study was to evaluate the gap in the implementation of employee performance management in ajb bumiputera 1912 that compared with existing designs and ideal design (according to the needs of companies today). as for the subfocus of this research are: (1) the quality and validity of the design of performance management if it is aligned with the goals and needs of today's organizations, the vision, mission, values, business processes, structure of employment, job description, the system of human resource management in ajb bumiputera 1912, (2) the effectiveness of the installation and the availability of supporting infrastructure to facilitate the implementation of the performance management of employees in ajb bumiputera 1912, (3) the effectiveness of the implementation of the design management of employee performance in ajb bumiputera 1912 when compared with the set design, as well as when compared to the design performance management ideal (according to the needs of companies 4 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 at the moment), and (4) correspondence between the results of the implementation of performance management with the expected results of the design of existing performance management and performance management design ideal. research methods this study uses the method of evaluation, with qualitative approach supported by statistical data as scientific methods to analyze the data that is intended to look at the effectiveness of employee performance management implementations in ajb bumiputera 1912. the selected evaluation model is a dem model of malcolm provus with four components of the evaluation, design evaluation, installation evaluation, implementation evaluation,and outcome evaluation. data were collected through questionnaires, the study of documents, interviews, and observations, which are classified as primary data and secondary data. qualitative data analysis is done through a phase of data reduction, data presentation stage and the stage of conclusion. quantitative data were processed using simple statistics with weight and percentage value. the reason for choosing dem to evaluate the implementation of performance management in ajb bumiputera 1912 because dem evaluation includes evaluation of the design, installation, implementation, and results that are highly suitable for evaluating employee performance management. in this study, the evaluation of the design is to evaluate employee performance management design, installation evaluate means of support and socialization of design performance management, including planning performance. evaluation of the implementation of performance management is evaluating the implementation stage of the target setting, managing and performance reviews.evaluation of the outcome isevaluating the results of intermediate and final outcome of performance management, including rewarding performance. dem evaluation stages can be seen in the image below: figure 2. stages of evaluation process in evaluation method using dem. dem can be seen as an spd cycle, there are: (1) set the standards; (2) performance measurement; (3) discrepancy measurement; (4) decision-making; (5) decreases the value discrepancy; (6) return to the first step evaluation. based on the flow in figure 2, can be explained that at each stage of the evaluation, from the evaluation of the design, installation, 5 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 implementation, and outcome always do a comparative analysis between standard (s) and performance (p), which results in a value of discrepancy (d). the data source of this research are parties related to performance management in ajb bumiputera 1912, including the director of human resources, head of department (human resources, corporate planning, finance, marketing division, corporate communications), assistant director of human resources, tim taskforce hr, representative leaders and staff from several units, expert who understand the concepts and implementation of performance management. the collected data will be grouped based on information obtained through interviews, document study and observation. grouped data presented as qualitatively and/or quantitatively. qualitative data will be considered to describe information based on theoretical basis and legality basis. quantitative data were processed using simple statistical analysis so that the average value used to see the tendency of the data. results of the assessment evaluation of the program are classified into four components, design evaluation, input evaluation, process evaluation and outcome evaluation. result and discussion referring to the dem evaluation model, it is necessary to assign values of standard (s), performance (p), and discrepancy (d). standard conditions that were used to analyze the data from the questionnaire is the highest score (5), questionnaire was designed using a likert scale of 1 to 5. performance (p) is the score of the selected answer from respondents to each question on the questionnaire. while discrepancy (d) is a gap, the difference between the standard and performance. the standard that were used to analyze the discrepancy from the interview and studyof the documents are ideal conditions according to expert hr consultant‟sopinion, reference books, or determined by agreement between the decision makers in ajb bumiputera 1912 and researchers. how to analyze the gaps is to compare standard conditions with actual conditions. design evaluation of employee performance management evaluation of design of employee performance management in ajb bumiputera 1912 aims to evaluate the suitability of the design of employee performance management with the company‟s needs and goals, vision, mission, and values at this time. the aspects that evaluated on design components are: (1) basic policy and legal basis of performance management, (2) the purpose of of performance management, (3) human resources involved and their role, (4) the execution time of performance evaluation, (5) scope of performance management, (6) performance assessment criteria, (7) the method of performance appraisal, and (8) phases of performance management. in the results of the gap analysis in the design phase of the evaluation, there are several aspects in the design of employee performance management in ajb bumiputera 1912 that there is no discrepancy because some of the design aspects of performance management has been described in the decree of directors. these results are presented in table 1. table 1. design evaluation analysis which did not have discrepancy aspect reason recomendation 6 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 1.basic policy and legal basis of performance management. there are legal basis for employee performance management in form of: pkb, sk.22 / dirpel / 94., and pe 18 / dirpel / although it has been set, but it needs to be reviewed to suit the needs and objectives of the company today 2.human resources involved and their role. has arranged for anyone involved, in the performance assessment manual and sk. 22 / dirpel / 94 although it has been set, but it needs to be reviewed about sk careers committee and outlined their duties and responsibilities, so that in the future careers committee can give recommendations in employee performance evaluation and also conduct succession planning. 3.the timing of the performance evaluation. in the manual books scheduled for july and december. 4.scope of performance management. provided clear information about who is to be assessed and who was the assessor, and the weight of mark at each job level. 5.the method of performance evaluation. the performance evaluation is applied using 180o assessment methods. although the method has been established, but is necessary to review the objective assessment methods, eg 360o assessment methods. some discrepancy from the results of the gap analysis in the design phase of the evaluation, can be seen in table 2. table2. discrepancy analysis on design evaluation of employee performance management discrepancy causative factor alternative solution 7 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d1. understanding of the entire organization members to the vision, mission, values (v, m, v). lack of socialization on the vision, mission, values. created an sustainable socialization and internalization of v, m, v to all members of the organization as well as the monitoring system. d2. the alignment of performance management with v, m, v. vision, mission, values not yet translated into a technical manual and behavioral indicators. • outlines the vision, mission, values become the strategic objective in function unit / department / division / region. • elaboration of strategic objectives become teamunit targets and individual targets. • elaborate the vision, mission, values into behavioral indicators that are easily understood and implemented. • elaboration of behavioral indicatorsstandard into a core competency. d3. the alignment of performance management with hr management and organizational culture • there is no hrm blueprint that integrated with the vision, mission, values and business strategy. • lack of commitment and direction of bod, frequent change of directors in a short period of time. • it needs to make competencybased hrm blueprint using the balanced scorecard approach, incorporating kpi based performance management and competency. • bod commitmentsare necessary to mobilize the whole unit leader to run a competency-based hr management. • each unit perform a swot analysis and design strategies function in their work unit, so it can be described clearly about strategic objectives, business processes, as well as updating the regulationsthatare needed. discrepancy causative factor alternative solution �increasing competence of strategic planning for the top managers. 8 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d4. model and flowsof performance management processes. • design performance management is currently only in the form of sk and pe as well as the technical guidelines for assessing employee performance. • not adjusted to the current regulatory needs. • make employee performance management model that is aligned with the vision, mission, values, strategy, organizational design, as well as models of competency-based hr management. • create a systematic and clear flow phases of performance management and and create a technical guide book. d5. clarity of duty, responsibility at every level positions. d6. the clarity of the unit target and the individual target, mainly in back office • job description is not detailed at all levels positions • no key result areas and standards of competence at each position • job description as a contract of employment of each employee, need to be equipped with the key result areas and clear individual and team targets. • create a standard of competence for each position from the highest position to the lowest positions. d7. clarity of employee performance evaluation criteria. �the performance evaluation criteria for of a behavioral description is quantified, but it is still common. • unit leader elaborate function strategic goals intoteam kpi and individual kpi for officer in his/her unit. • need standard of competence at every job level. installation evaluation of employee performance management evaluation of installation of employee performance management in ajb bumiputera 1912 aimed to evaluate the completeness of the support for the implementation of performance management. the aspects that evaluated on installation components are: (1) guidance, performance management procedures, (2) precondition and the availability of human resources involved, and (3) the availability of systems and means of supporting the implementation of performance management. the results of the gap analysis of the evaluation installationsphase, there are some discrepancies because the reference that available are only in the form of sk and performance assessment guide books. the results of the analysis of the discrepancies can be seen in table 3 below: table 3. discrepancy analysis on installation evaluation of employee performance management discrepancy causative factor alternative solution 9 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d1. an understanding of all employees on performance management. • understanding of the organization's members on performance management is not same. • commitment and direction of bod is still lacking, because of frequent change of directors in a short period of time. • performance management socialization with attractive appearance and performed continuously. • socialization starts from bod to bottom (top-down). • conduct an evaluationto measure the level of understanding of the performance management. d2. availability of technical guidelines on performance management phases. d3. availability of guidelines of coaching & counseling. d4. top-down socialization of performance management. • unit leader is less responsive to the availability of performance management guidelines and guidance counseling. • uneven understanding of performance management, counseling and coaching. • there are some resistances to accept new things or to change. • directors often replaced • making the technical guidelines that is easily understood by all members of the organization. • continuous training and development of performance management. • return the term of office of directors to 5 (five) years, so that he/she can run the continuity of the program completely. discrepancy causative factor alternative solution in a short period of time, thereby disrupting the continuity of a progarm. 10 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d5. availability of tools that support the implementation of performance management. • it is not yet fully integrated, resulting in the risk of error and subjectivity performance reports. • monitoring performance is still done manually and paper based. • there is no system for monitoring the work regularly. • built an integrated it system as a means to manage corporate performance, unit / team, and individuals that inline with the strategic objectives. • once kpi and competency based performance management built, then it can be integrated with an online system to view the dashboard of team and individual performance. • develop career paths, the talent pool, succession planning, and human resources management based on competence and it, towards high performancehuman resources. d6. availability of bod budget and commitment to carry out every strategic policy. • the budget required to develop hrm systems available but limited. • the program is not continuous in the planning and implementation because of the change the board of directors so that decisions are stalled. • requires the budget to be able to design and execute an integrated performance management program, which can be allocated from the cost of human resource development which is currently their implementation is still less than 5% of personnel costs. • it need the commitment of bod in planning, socialization, implementation and evaluation, because this integrated program will take approximately 2 years to the reach the understandingof the phase to and all members of the organizationbecome committed to it. implementation evaluation of employee performance management evaluation of implementations of employee performance management in ajb bumiputera 1912 aimed at evaluating the scope, criteria, methods, phases / process and timing of implementation and compliance with the input-process-output on the design of performance management and performance appraisal guidelines that were used, compared with the current implementation. gaps analysis in the implementation phase of the evaluation is to describe the results of an evaluation of the target planning, monitoring and evaluation, as well as feedback, can be seen in table 4 below: 11 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 table4. discrepancy analysis on implementation evaluation of employee performance management discrepancy causative factor alternative solution d1. establishing performance targets. • establishment of corporate performance targets and work units have been conducted each year end at rapimnas. • not translated into individual targets except for sales. • drafting work programs and budgets usually refers to program and budget of the previous year. • the process of setting targets should refer to the results of cascading vision, mission, and strategic corporate objectives corporate scorecard. • corporate scorecard elaborated to function scorecard in the work unit. • scorecard function revealed to be smaller scorecard and further into individual targets which are equipped with individual development plan. discrepancy causative factor alternative solution d2. performance monitoring • monitoring of work programs and budgets in thework unit has been conducted every month by the department of corporate planning and finance department. • there are no individual performance monitoring tools. • there are business service system (bil) and hris but not yet well integrated to monitor performance. • administrative reporting is manual, not yet integrated with it. • it should be supported by an integrated it between business processes and employee performance management. • leaders work units monitor and evaluate performance regularly and recorded, so the review of performance can be done more easily. d3. timely implementation of performance evaluation • chairman of the work unit are less responsive and less trying to understand the regulations and guide books of performance management. • change the execution time of the review performance from 2x a year to just once a year. • socialization of regulations and instructions related to performance management that is packaged in a practical, easy to understand and interesting way. • need reward and punishment to someone who mantain the timeliness of reporting the results of the performance evaluation. 12 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d4. implementation coaching & counseling • socialization and coaching & counseling training has not been decided as the program that is important in the development of employees. • not all the chairman of the unit felt it is important to conduct coaching and counseling when doing performance reviews. • need to create guidelines for coaching and counseling. trainthe work unit leader about coaching and counseling. • monitoring and evaluating the implementation of coaching and counseling. d5. objectivity of assessment • assessment of performance is considered routine, noncompliance assessment time was considered the norm. • lack of monitoring and evaluation of individual and team targets. • tend to generalize the outcome at grade b. • team and individual performance targets needed to be clear. • supported by integratedit for monitoring performance. • 360-degree performance appraisal method. • implemented coaching and counseling when doing performance reviews, so they can devise corrective action plan. • the firmness of reward and punishment. d6. feedback, reporting and action plan. • the results of performance assessment is documented in a paper-based form. • feedback results of performance review is not complete, and lacking detail. • the outcome of performance review outcome has not become an input for an employee skills inventory. • the results of performance assessment needs to be documented in an integrated hris system for the purpose of competency-based hr management. • completing an employee skills inventory that can be used for career planning, training & development, succession planning and talent management. 13 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d7.reward and punishment do not provide reinforcement effect • reward given according to the assessment results a, b, c in the form of rising around 5% of basic salary for one grade. • work unit leaders tend to “have a sense of pity” when giving punishment, so that the problem is returned to the hr department. • reward in the form of base salary increases, should be reviewed to be incentive thatchallenging for talent and does not create a comfort zone for non-talent. • implementation of strict punishment if there are some strong supporting evidences found. • giving an exampleof reward and punishment that firmly and fairly given by supervisor. • enhancing the role and function of the working unitleaders in managing human resources in the unit. outcome evaluation of employee performance management evaluation of the outcome of employee performance management in ajb bumiputera 1912 aims to evaluate the comparison between the results of employee performance management implementations derived from information based on the results of questionnaires, interviews, document study and observation, then compared with the goals or objectives of management performance and aligned with corporate goals. analysis of the gap at this stage of the evaluation are covering the intermediate results, i.e. the output of the management of employee performance itself, as well as the end result which is a goal (outcome) of the performance management of employees that have an impact on company performance, customer satisfaction, as well as the position and market share of companies in the industry.discrepancy analysis in the outcome evaluationphase illustrated in table 5 below: table5. discrepancy analysis on outcome evaluation of employee performance management discrepancy causative factors alternative solutions intermediate results d1. implementation of the results of performance management has not been able to differentiate talents and non-talents. • the results of performance assessment are > 95% were grade b. • the audit results are sometimes still disputed between the system factors or fraud, so sometimes the punishment is not strictly applied. • it is important of criteria and performance targets are clear and measurable. • repair system and it that are secure and integrated. • the importance of early detection and coaching program for the prevention of errors and fraud. 14 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 d2. the outcome not used optimally in the placement, promotion and demotion of employees. • the results of the performance appraisal are already taken into consideration in the promotion, but has not been taken into consideration in the placement and demotions. • recommendations are less detailed to be able to map talent and non-talent. • setting the criteria and target that measurable and integrated it support, so it can be mapped talent and non-talent with human asset value (hav) matrix, which maps the performance vs. competence. • results of coaching and hav matrix can be used in designing succession, individual plan, competence development, promotion, placement and demotion of employees that can be fairly measured. d3. the outcome has not been associated with the development of employee competencies • implementation of the results of performance management has not been able to provide feedback on specific competency gaps. • the results of performance assessment is still not been used as a consideration of the development of employee competence. • need to align the results of coaching and counseling when doing performance review with an employee competence developmentprogram. • supported by an integrated it system to facilitate the training needs analysisfromthe results of performance assessments. 15 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 final result d1. work productivity • it has not been integrated so it causing more hr needs. • standard salary is still less competitive with competitors that affect the quality of recruitment and productivity. • performance management and human resources management system is not integrated with the vision, mission, values and strategic objectives that are supported by monitoring and evaluation system that produces valid and real time performance data. • performance management needs to be aligned and integrated with other hr management systems so it can improve employee motivation and productivity. • hr management needs to be integrated with business strategy and the design of organization that integrated with it-supporso it was able to create a high performance culture, with a fair reward and punishment. • need to conduct regular surveys to get feedback related to work productivity, job satisfaction, customer satisfaction, thereby improving performance management in the future. d2. linkage of performance of individuals, teams, and organizations • there are branch offices profit and loss data, but it was not been linked to the performance of teams and individuals. • declining of position in the market share, and it is currently at number 9. • fat organizational structure, it has not fully • create a team and individual performance measurement using balancedscore card, consists of these measurement perspective: financial, customer, internal business processes, learning and growth. • clarifying the business discrepancy causative factors alternative solutions 16 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 integrated, so that it less nimble compared to a joint venture competitor. �performance management in bumiputera have not been aligned and integrated with other hr management systems. model, strategic objectives that elaborated into human resource management and integrated performance management. • improve it to become more secure and integrated, so that it can be simplifyingthe organizational structure and human resource needs • measurable performance management and integrated with other hr management, creating talent and highperforming human resources as the company's competitiveness. d3 linkage of service quality and performance management. �there is branch customer satisfaction and complaints data, but has not been linked to the teams and individuals performance. �customer servicesupported by integratedit, so customer relationship management (crm) can be built to improve customer service. conclusion human capital is a capital that determines competitive advantage and success in achieving organizational goals. to achieve a competitive advantage through the practices of human resource management requires time and a process, which begins with managing employee performance objectively in order to generate motivation and high-performance culture. the objectivity of performance assessments will give effect to employee motivation, and will support the implementation of the management of high-performanceand high-commitmentorganizations. performance management is the management style in managing human resources that oriented to performance by doing the process of target setting, monitoring, and evaluation through the approach of open and sustainable communication in line with the vision, mission, values and strategic approach of companies as the driving force to achieve organizational goals. the performance assessment is basically a key factor in order to develop an effective and efficient organization, because the results will be taken into consideration to establish a policy or program that is better on the human resources that exist within the organization. in general, the results of the evaluation of the implementation of the performance management of employees in ajb bumiputera 1912,there are some discrepanciesin implementation that are not in accordance with the standards established or less relevant to the demands of the current company needs. therefore, it is necessary to make adjustment from the aspects of design, installation, implementation and empowerment of employee performance management results that integrated with other hr management systems. 17 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.01 the results of this study are expected to be taken into consideration in the decision to implement the performance management in ajb bumiputera 1912, because since 1994 until now it has never been evaluated. the hr department has been working with a consultant in 2014 to build a hr management blueprint for the company, but until now it has not been implemented yet. the results of this study can be considered for an appropriate rapid decisionmaking for management in ajb bumiputera 1912, especially to win the competition through an integrated hr management. it is importantto do further research on the application of the balanced scorecard to manage the business consisting of these dimensions: financial, customer, internal business processes, and learning and growth. furthermore, the business scorecard associated with the hr scorecard, which is the measurement in human resource management that consists of 4 (four) roles: as an expert administration, strategic partner, change management, and individual contribution. for connect both of the scorecard, can be built workforce planning through an integrated performance management system. bibliography arikunto, suharsimi dan cepi s. abdul jabar. evaluasi program pendidikan: pedoman teoretis praktis bagi mahasiswa dan praktisi pendidikan. edisi kedua. jakarta: bumi aksara, 2008. armstrong, michael. amstrong’s handbook of human reource management practice. philadelphia: kogan page, 2009. ivancevich, john m. human resource management. 10th edition. newyork: mcgrawhill/irwin, 2007. naihasy, syahrin. kebijakan publik – menggapai masyarakat madani. yogyakarta: mida pustaka, 2006. noe, raymond a., et al. manajemen sumber daya manusia: mencapai keunggulan bersaing terjemahan didik prayitno. jakarta: salemba empat, 2011. nugroho, riant. public policy. jakarta: pt. elex media komputindo, 2009. 87 abstract the sars-cov-2 pandemic impacts health, the economy, and the environment (also known as covid19). it's no secret that tourism has been hit particularly hard during the covid-19 era. nevertheless, many people continue to search for a tourist destination despite the covid-19 health protocol. individuals tend to stay home during an outbreak, and large families with young children travel shorter distances than other tourist groups. local visitors continue to be interested in tmii as a domestic tourism destination as 74 percent of visitors want to visit tmii. analysis of tmii's amenities and ancillary services using the rasch model revealed the most attractive destination attributes. however, when it comes to transportation options, they are by far the least appealing. keywords: human resource planning, swot analysis received: 23 august 2021 ; accepted: 21 december 2021 ; publish: december 2021 how to cite: lusia, e, & herlina, m.g. (2021). a rasch analysis on tourism business in covid19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. journal of business and behavioural entrepreneurship, 5(2), 87-98. https://doi.org/10.21009/ jobbe.005.2.11 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta erma lusia tourism department, faculty of economics and communication bina nusantara university jakarta, indonesia email: ermalusia@binus.edu maria grace herlina management department, binus business school undergraduate program, bina nusantara university jakarta, indonesia email: herlina01@binus.edu https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 88 introduction the world health organization for covid-19 has officially declared a global pandemic as of january 2020. deaths and infections linked to covid-19 are rising, and many countries have implemented travel bans, quarantines, and curfews (sohn et al., 2021). as a result of the sars-cov-2 pandemic (also known as covid19), health, economics, and the environment are all affected. most of these impacts are negative, but there have been some positive outcomes in specific fields. tourism was one of the worst-hit industries (monteiro et al., 2021). travel and tourism numbers have plummeted as the covid-19 pandemic unfolds. due to 166 countries restricting entry into their national territories, global mobility has come to a near standstill, leaving tourism destinations empty-handed because their primary resource, mobile tourists, is effectively absent (lapointe, 2020). tourism has been halted worldwide due to the covid-19 outbreak, which has restricted international travel. as a result, travel demand has shifted away from international destinations and toward domestic ones. global tourism has suffered due to a long-term ban on the journey that has altered travel trends and behaviors (sohn et al., 2021). global tourism expected to decline by around 80 percent by 2020 due to the coronavirus (covid-19) pandemic. travel within the country is helping to soften the blow, at least partly, and governments have taken impressive immediate action to restore and reactivate the sector while also protecting jobs and businesses. consequently, with the resumption of domestic tourism, some destinations have seen a reduction in the loss of jobs and revenue. proper recovery will only be possible once international tourism returns. tourism in the domestic level is expected to grow, as people prefer to stay at home and travel to places within their own nation. domestic tourists tend to be more price-conscious and spend less (oecd, 2020). using the prefix "un" and the word "contact," the term "untact" refers to the korean version of social distancing. after the covid-19 travel restrictions, the term became popular in korea to describe the significant shift in people's unwillingness to interact with others (i.e., contact-free society) as a result of infections. it means that the current tourism trend that covid-19 has reshaped characterized by unrestrained and short-distance travel. many people chose to visit a destination near their home after the covid-19 outbreak over a large and famous destination away (sohn et al., 2021). safety and hygienic conditions have become important considerations when choosing travel destinations and activities. individuals are more likely to travel alone, avoid large crowds and prioritize private transportation, which could negatively impact the environment. the ongoing digitalization of tourism services will include a greater reliance on automation, contactless payment and service options, virtual reality experiences, and real-time information (oecd, 2020). the path to a new normal in the indonesian tourism sector involves preparing a variety of factors. in addition, it arranges for health care and outdoor activities, workplace and educational services, and business trips, events, and public transportation. tourism takes on a new meaning when it comes to the environment and human health. if there is a systemized mitigation at the tourist spot, a standard operating procedure, or a system that limits the number of visitors to tourist attractions, is the visitor's health and safety guaranteed, etc., then the visitors will validate that. people tend to travel within their own countries (dušek & sagapova, 2021). on vacation, people are more likely to stay in their own country, and large families with young children are more likely to travel short distances than other travelers. natural tourism, such as enjoying the beauty of nature, the sea, mountains, and activities in the open air, is something that many tourists look forward to. most lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 89 tourists prefer to plan their trips, including restaurants and transportation services in their chosen tourist destination (dušek & sagapova, 2021; yuni, 2020). the covid-19 pandemic has had a significant impact on the tourism industry. there has been a dramatic drop in local and foreign tourists since implementing scaled social restrictions (psbb) and efforts to prevent coronavirus spread. a popular tourist attraction in indonesia, the indonesia miniature park or taman mini indonesia indah (tmii), has declined visitors. before the pandemic, up to 80,000 people visited tmii every weekend; after the pandemic, the average weekend visitor is less than 10,000 people. as long as tmii is open during psbb-transition, there will be many rule changes, operational hours, and health protocol implementation. a tourist attraction located in east jakarta, tmii has implemented changes to both its officers' and visitors' behavior to adapt to the new normal or a new life as a tourist attraction (relations-jpr, 2020). the government formed a covid-19 prevention and economic recovery national team to deal with the outbreak. as a result, some tourist attractions have been allowed to reopen to visitors with a few restrictions, such as implementing covid-19 health protocols, such as checking body temperature, wearing masks, providing a place to wash hands and hand sanitizers well as a 25 percent capacity limit. there is a twopart program to open a tourist attraction at tmii that follows government policies to recover the tourism industry. preparing the chs health protocol (cleanliness, health, and safety are the primary concern of tmii management. began in october 2020, tourism destinations are allowed to open gradually but with strict health protocols. it includes online ticketing where visitors can purchase the entry ticket on the tmii website. visitors can make online reservations at any time and from any location, and visitors can also take advantage of a promotional package on the website. next, they are spraying disinfectant at the entrance of tmii, wearing a mask, providing handwashing stations at various locations in the tmii area, and providing hand sanitizer to visitors. also, a health check is performed every time visitors enter a particular traditional house pavilion or attraction area (relations-jpr, 2020). the research will look at the attractiveness of a local tourist destination in terms of its ability to support the tourism businesses recovery. many studies on tourist destinations have been conducted, but this study differs from others since conducted in a new normal era and using rasch model approach to analyze the research data. literature review most people prefer to stay in their own country when on vacation, and large families with young children travel short distances. numerous tourists look forward to experiencing nature, the sea, mountains, and outdoor activities in the open air. visitors prefer to plan their vacations, including restaurants and transportation services in their chosen tourist destinations (dušek & sagapova, 2021; yuni, 2020). a tourism product encompasses the entire experience, from the moment they leave their home to when they arrive back home again. tourists perceive and enjoy tourism products as a whole, according to the tourism expert. attraction, transportation, accommodation, support and auxiliary services, and physical and communication infrastructure make up the five components of tourism quality. according to a different researcher, there are five types of tourism products: attraction of destination and environment, destination and service facilities, accessibility in the destination area, destination image, and price. based on the scholar's opinions, the dimensions of a destination attractiveness are accessibility, amenities, attractive activities, ancillary service lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 90 (fedorko, 2019; kerdpitak, 2019; lanzara & minerva, 2019; law & law, 2021; robustin et al., 2018; yuni, 2020). accessibility quality defines destinations' ability to provide quality transportation methods that facilitate the transfer of people from one place to another. besides, accessibility, affordability, and convenience of tourism transportation infrastructure will enhance the accessibility quality and tend to improve the success of a tourism destination (law & law, 2021; tomej & liburd, 2020). furthermore, previous research proved that accessibility quality would increase the visitors' satisfaction and revisit intention to the tourism destination (hooper, 2015; law & law, 2021; tomej & liburd, 2020). today's travelers are looking for quality and value, and they are much more confident in making decisions and rely on other travelers instead of traditional forms of advertising for guidance. destination's reputation reflects its perceived value, product quality, service quality, social activity, and reputation on the internet. complimentary services such as free wifi, smoke-free property, and multilingual staff will influence customers' ratings and willingness to recommend tourism destinations (fedorko, 2019). accommodation, cleanliness, and hospitality are all examples of amenities that can gain pleasure from a product (tangible and intangible products). many facilities are required to meet the needs of tourists, including transportation and lodging facilities and food-and-drink services. neither this nor the infrastructure component, which ensures the availability of full facilities, can be separated (robustin et al., 2018). previous studies show that amenities and ancillary service can improve the destination's reputation and recommendation to improve revisited intention to the tourism destination (hanna et al., 2019; kerdpitak, 2019; robustin et al., 2018; winter et al., 2020). the scholars explain that the tourism destination should have recreational, educational, adventure, eco-tourism, meeting relatives and friends (kerdpitak, 2019). previous studies prove that tourism destination activities can influence tourists' preferences and experiences (aşan & emeksiz, 2018; hanna et al., 2019; kerdpitak, 2019; winter et al., 2020). taman mini indonesia indah (tmii) is a tourist destination that offers various activities, including recreational, educational, and eco-tourism activities (kerdpitak, 2019). to achieve a new normal in tourism, indonesian attractions managers must prepare health protocols and outdoor activities. (yuni, 2020). therefore tmii as a domestic tourism destination in jakarta, indonesia will be evaluated based on its tourism destination attributes. the dimensions of attractiveness are accessibility, amenities, tourism activities, and ancillary service (miftahuddin et al., 2020), 2020). since tourism activities can improve mental health and well-being, it is beneficial to examine tmii based on accessibility and amenities and engaging activities in the covid-19 era. research methods the research examines taman mini indonesia indah (tmii), one of the domestic tourism destinations in jakarta, indonesia, in the covid-19 era. to collect the primary data, a researcher used a questionnaire. only 336 respondents can examine further from 368 respondent who has visited tmii. the respondent's characteristics are 43% male and 57% female. the age of respondents is 72% more than 21years old and 28% less than 21 years old. at the same time, the education level is 60% high school graduates, 6% diploma graduates, 28% bachelor degree graduates, and 6% master degree graduates. also, their jobs are 40% are students, 8% civil servants, 37% private employees, 10% are entrepreneurs, 5% are housewives. lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 91 the research is quantitative research without experimental designs. the research data were collected using questionnaires based on the literature review. in addition, the researchers used social media to collect the data through online questionnaires such as whatsapp group, facebook, telegram, and others. research variables will be analyzed using the rasch model with the application of winstep software version 3.73, including the validity and the reliability test of the questionnaire. rasch model analysis is a method that allows ordinal data from likert rating scales questionnaires to be converted into interval data (miftahuddin et al., 2020). the rasch model is the most appropriate method for quantitative analysis in human sciences since the research instruments used will produce ordinal data. according to the measurement model, rasch model analysis is based on the probability that allows respondents' responses to be accurately predicted on all items. the rasch model changes the item scores measured on a likert rating scale, an ordinal data, into an interval scale called "unit of opportunity logarithms" (logit). rasch model analysis can also reduce the invalid responses of the self-report questionnaire (miftahuddin et al., 2020). the research instrument developed represents the destination attractiveness, which has four dimensions with thirty indicators. those items are statements on the research instrument. before collecting the data, the items on the research instruments were tested using rasch model analysis with winstep software version 3.73. the first examination was the research instrument's validity, and reliability tested—table 1 shows the reliability test results. table 1 reliability test of the destination attractiveness instrument table 1 shows that the cronbach alpha of the instrument reliability as a whole is 0.91, meaning that there is excellent interaction between the items and the respondents' responses (sumintono, 2014). next, the person reliability is 0.89 implies the consistency of the respondents' answers is excellent, and the item reliability is 0.96, meaning that the research instrument's items are also outstanding. both values indicate a firm consistency in respondents' responses, and the quality of the items is excellent to measure the destination attractiveness (sumintono, 2014). the next test is about the validity of the item of the research instruments. the research instrument was created based on the literature review. there are four dimensions of destination attractiveness consist of thirty indicators as mentioned in table 2. statistics summary person item reliability 0.89 0.96 cronbach alpha 0.91 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 92 table 2 the destination attractiveness dimensions and indicators the research instrument validity was tested using misfit item. the validity test results show no outliers since the logit values are above 0.5 logit and below 1.5 logit (sumintono, 2014); therefore, all items can be indicators in the research instrument, as presented in table 3. construct item code accessibility tmii's location is close to the city center. ac1 the location of tmii is easy to reach. ac2 there are many choices of vehicles to tmii. ac3 infrastructure to get to tmii can support visitors to come back. ac4 the location of tmii is accessible for disabilities and elderly. ac5 amenities tmii tourist location is clean. am1 the bicycle and motorbike rentals to get around tmii. am2 information services for visitors. am3 spacious parking area for visitors am4 restroom facilities are clean. am5 the culinary facilities are clean. am6 attractive actitivities sitting relaxing with family in open air traditional houses in tmii. at1 visiting museums at tmii at2 shopping for souvenirs at tmii. at3 cycling in the open air around tmii. at4 culinary in the open air restaurants at tmii. at5 riding the open air cable car at tmii at6 riding an open air tourist train at tmii at7 ancillary service tour guides for visitors an1 bank and atm services for visitors an2 various types of souvenir shops at tmii. an3 places of worship for visitors an4 health services for visitors an5 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 93 table 3 item validity of the destination attractiveness source: primary research data, 2020 results and discussions first, the researchers will examine the number of attracted visitors to tmii using a wright map resulting from rasch analysis. the wright map (figure 1) shows that tmii visitors who are highly attracted are 8% visitors, 12% visitors are more attracted, and 59% visitors are attracted. while 12% of visitors are only moderately attracted, 14% are less attracted, and only 0.1 percent are the least attracted to tmii. item s outfit mnsq (logit) item s outfit mnsq (logit) item s outfit mnsq (logit) item s outfit mnsq (logit) ac1 1.19 am1 0.82 at1 1.01 an1 1.00 ac2 1.32 am2 0.83 at2 1.10 an2 1.08 ac3 1.28 am3 0.89 at3 0.99 an3 0.88 ac4 0.84 am4 1.08 at4 0.96 an4 1.11 ac5 0.94 am5 0.87 at5 0.85 an5 1.29 am6 0.71 at6 1.10 at7 0.85 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 94 figure 1 the wright map of the visitors' attractiveness it implies that tmii as a domestic tourism destination still has its attractiveness to the local visitors during the covid-19 era since 74% of visitors are still attracted to tmii. a deeper analysis using rasch model, as shown in table 4, reveals that the tour guide (an1) is the most attractive attribute for tmii as a tourism destination, while transportation options to get there is the least attractive attribute (ac3). although tmii is located in the greater jakarta area, visiting tmii remains a challenging tourist destination for the visitors. more tmii attractions for visitors are shown on the wright map of the tourism destination's attractiveness (figure 2), and the detailed analysis is in table 4. table 4 the most attractive to the least attractive of the destination source: primary research data, 2020 the wright map of destination attractiveness (figure 2) shows four categories of attractiveness as summarized in table 5. it indicates that ancillary services and amenities are the most attractive attributes of a tourism destination at tmii. items outfit mnsq (logit) items outfit mnsq (logit) items outfit mnsq (logit) items outfit mnsq (logit) ac3 1.13 am1 0.31 at6 -0.17 ac5 -0.55 at3 0.84 ac2 0.25 am3 -0.18 an3 -0.59 at1 0.83 an2 0.22 am6 -0.25 am5 -0.86 am4 0.78 am2 0.14 at4 -0.28 an5 -0.93 ac4 0.65 at7 0.07 at5 -0.32 an1 -0.97 an4 0.53 ac1 -0.09 at2 -0.54 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 95 figure 2 the wright map of the destination attractiveness based on the rasch model analysis, tmii's most attractive attributes include tour guides, health services for visitors, and clean restrooms. those attributes explain that the cleanliness of tourism destinations and health is the primary concern for the visitors. the most attractive feature is a tour guide. it infers that a tour guide's role is vital for visitors to tmii's vast area, and in this pandemic era, tour guides can also help maintain the health protocol during the visit. it is also possible for tour guides to limit the number of visitors brought into a single group. tour guides can also show visitors where to find health services during a pandemic because the tmii management must keep visitors healthy when finding leisure during the outbreak. the research result can support the previous researches about ancillary services and amenities. furthermore, the studies show that amenities and ancillary service can improve the destination's reputation and recommendation to improve revisited intention to the tourism destination (hanna et al., 2019; kerdpitak, 2019; robustin et al., 2018; winter et al., 2020). table 5 summary of the destination attractiveness construct item code more attractive tour guides for visitors an1 health services for visitors an5 restroom facilities are clean. am5 attractive various types of souvenir shops at tmii. an3 the location of tmii is accessible for disabilities and elderly. ac5 visiting museums at tmii at2 culinary in the open air restaurants at tmii. at5 cycling in the open air around tmii. at4 the culinary facilities are clean. am6 information services for visitors. am3 riding the open air cable car at tmii at6 tmii's location is close to the city center. ac1 riding an open air tourist train at tmii at7 less attractive shopping for souvenirs at tmii. at3 sitting relaxing with family in open air traditional houses in tmii. at1 spacious parking area for visitors am4 infrastructure to get to tmii can support visitors to come back. ac4 places of worship for visitors an4 tmii tourist location is clean. am1 the location of tmii is easy to reach. ac2 bank and atm services for visitors an2 the bicycle and motorbike rentals to get around tmii. am2 least attractive there are many choices of vehicles to tmii. ac3 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 96 tmii's transportation options, on the other hand, remain the least appealing to visitors. many people are still afraid to use public transportation because of the covid19 era, and as a result, the options for visitors who use public transportation are severely limited. conclusions health, economics, and the environment are all affected by the sars-cov-2 pandemic (also known as covid19). tourism was one of the worst-hit industries during the covid-19 era. since tourism activities can improve mental health and wellbeing, people are still searching for the tourism destination without neglecting the covid-19 health protocol. during the outbreak, people are more likely to stay in their own country, and large families with young children are more likely to travel short distances than other tourists. therefore, tmii as a domestic tourism destination remains attractive to local visitors as 74% of visitors are still interested in visiting tmii. as a result of the research, tmii's amenities and ancillary services are the most attractive destination attributes. tmii's management appears to prioritize visitors' health, as tour guides, health services, and clean restrooms are the most appealing indicators. tmii can also provide a sanitizer set and masks to those who have paid for entrance tickets to bolster those destination qualities. even though tmii is located in a highly accessible area, transportation options are the least appealing feature. visitor safety and security may be improved by partnering with online transportation service providers. visitors can order online transportation that has partnered with tmii to pick them up from home back and forth to improve the health protection of tmii visitors. there are still some limitations to this study. the research instruments should be rearranged with more items to measure each tourism attraction's dimensions for further research. it is also preferable to include more respondents from diverse backgrounds and to use inferential statistics to examine the influence of each attribute that can contribute to the attractiveness of a tourism destination. acknowledgement we want to express our gratitude and appreciation to mr bambang sumintono, phd, who taught us about rasch model analysis and gave us oppor tunities to practice more using the winstep software version 3.73 in rasch model analysis. references aşan, k., & emeksiz, m. 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(2020). analysis of domestic tourist travel preferences post-covid -19 pandemic. journal of a pplied sciences in travel and hospitality, 3(2), 80– 88. https://doi.org/10.31940/jasth.v3i2.2052 lusia, e, & herlina, m.g. (2021). journal of business and behavioural entrepreneurship, 5(2), 87-98 a rasch analysis on tourism business in covid-19 era: the attactiveness of taman mini indonesia indah (tmii) jakarta. https://doi.org/10.21009/jobbe.005.2.11 https://doi.org/10.21009/jobbe.004.2.01 149 abstract the product's quality and price are two considerations that consumers weigh before making a purchase. with the gebug milkfish micro, small, and medium enterprises (msme), as many as 17 businesses in losari district, brebes regency, this study aims to evaluate the impact of product quality and price on customer satisfaction. the participants in this study were 212 losari district buyers of msme milkfish products. with a total sample size of 34 consumers, this analysis used the random sampling technique. quantitative analysis using a survey approach was used in this study. the price variable received a t-count value of 4,196 with a significance value of 0.001 less than 0.05 (0.001 0.05) based on the results of the t-test statistic, and the regression coefficient has a positive value of 0.715, so it can be inferred that the commodity price has a positive impact on buying decisions. the regression coefficient has a negative value of -0.148, and the t-test statistical results of the product quality variable obtained a tvalue of -0.748 with a significant value of 0.459 greater than 0.05 (0.459 0.05) that the quality of a commodity has a positive impact on buying decisions. in this research, product quality and price influence buyer decisions for gebug milkfish in brebes regency's losari district. since the regression coefficient is negative (-0.148), it can be inferred that product quality positively impacts buying decisions. in this research, product quality and price influence buyer decisions for gebug milkfish in brebes regency's losari district. since the regression coefficient is negative (-0.148), it can be inferred that product quality positively impacts buying decisions. in this research, product quality and price influence buyer decisions for gebug milkfish in brebes regency's losari district. keywords: quality, product price, and customer satisfaction received: 24 march 2021; accepted: 4 june 2021 ; publish: june 2021 how to cite: mukson, zaman, m.b., & ikhwan, s. (2021). analysis of influence of product quality and price on buyer's decision. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.005.1.10 analysis of influence of product quality and price on buyer's decision mukson muhadi setiabudi university, indonesia e-mail: mukson@umus.ac.id mohamad badrun zaman muhadi setiabudi university, indonesia e-mail: badrunmohamad93@gmail.com syariefull ikhwan muhadi setiabudi university, indonesia e-mail:syarief20tmi@gmail.com https://doi.org/10.21009/jobbe.004.2.01 mailto:badrunmohamad93@gmail.com mailto:syarief20tmi@gmail.com 150 introduction the growth of micro, small, and medium enterprises (msmes) in indonesia is coinciding as its economy grows. according to umkm data from the ministry of cooperatives' website http://www.depkop.go.id/data-umkm, msmes have a rise from year to year that is still negligible. the increase only ranges between 2% and 4%. however, when measured in terms of the increase in msme actors' jobs, it is substantial, ranging from 1% to 8%. it can be concluded that every msme can generate jobs, which is hugely beneficial to indonesia's economy. in indonesia, the leading market players are small and medium-sized enterprises (smes). msme actors have stood firm and continued to develop despite the numerous shocks of indonesia's economic crisis. environmental principles apply to msmes in compliance with law no. 20 of 2008. environmental awareness is a philosophy that empowers micro, small, and medium-sized business owners. money, market share, price, quality, and quantity provided to consumers or customers all play a role in msmes' growth. the price and quality of an object or commodity are the most critical factors affecting msme players. price is one of the most important factors that consumers consider when deciding whether to purchase a commodity in an item or a service. according to kotler and keller (2009: 23), price is a component of the marketing mix that defines a product's profitability and value. prices in line with the quality and quantity of a commodity would entice customers to purchase it; additionally, the price of a product being sold is below the current market value. price is one of the marketing factors that company management must pay attention to, according to nasution (2006: 117), because price directly impacts revenue and company income. prices have a particular appeal for buyers, so producers must be careful when setting prices. company actors, including businesses and home enterprises, would have difficulty selling their goods if there is a price mistake. kotler (2009: 87) goes on to say that relevant to product quality is something that can be sold to the market in order to attract potential customers' attention. (geovani, s.m et al., 2021)which are then bought by customers and used or consumed to fulfill their wants or needs. a product is a product or service that is ready to be sold and used by customers in order for them to experience its advantages and meet their needs. a product's capacity to perform its duties, including durability, reliability or schedule, weight, ease of product packaging and maintenance, and other characteristics, is specified by private (2002: 126). a product can be put on the market to gain consumer interest, buy, use, or consumption while still meeting the consumer's needs. the commodity is a subjective perception of the producer that can be produced to satisfy customers' needs and activities to achieve corporate objectives based on its resources and buying power in the market. furthermore, goods can be in the form of customer expectations clarified by manufacturers through their production results. consumers regard products as valuable and use them as a basis for purchasing decisions. tipton (2008: 152) describes how price is used to present a product to consumers in terms of its features, such as quality. this issue has the most impact on an environment where consumers struggle to calculate aspects of creation or efficacy critically. the common misconception is that a high price represents high quality. essentially, customers purchase a commodity in order to fulfill their needs and wishes. consumers' wishes will be met if the product's quality and quantity and its flavor, packaging, and size align with the price value. product quality is the deciding factor in customer satisfaction after they have purchased and consumed a product. mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 https://doi.org/10.21009/jobbe.004.2.01 151 milkfish gebug, researchers see an up-and-coming business in losari district, brebes regency, central java, where this business is carried out in almost every village, and buyers are also quite a lot both from their region and from outside. this is what attracts researchers to these issues in indonesia's different regions and even provinces. (chenavaz et al., 2020) literature review product quality according to alfred (2013: 99), quality is defined as providing information about a product's description and how to use it before consumers make a purchase. quality aims to satisfy customers, so product quality can be characterized as a product's features or characteristics that satisfy customers by meeting their needs and desires. lutfia (2012: 55) describes quality as a product's ability to carry out its intended functions, including product resistance energy for eating, sharing data about a product's effectiveness, and sharing data about the production process. product quality is described by kotler and armstrong (2012: 189) as a characteristic of a product's ability to meet the needs that have been set by customers and have a latent character. product quality is intended to share all information gathered during the development of a product that has been tested to meet customer needs.(kotler, 2007) product prices price is described by ari setyaningrum (2015: 128) as a portion of the money required to obtain a product or service. historically, the primary factor affecting a buyer's decision has been price. pricing is an important and environmentally friendly aspect of marketing management. on the one hand, price-fixing is a critical strategic factor in the marketing mix because it emphasizes that price is more important than quality and contributes significantly to product positioning. describes price as a portion of the money required by customers to receive a partial mixture of a product and service to meet their everyday needs. buying decision according to etta (2013: 120), a decision is to choose one action from a collection of alternatives that must be tried. an integration process that integrates experience to compare two or more alternative attitudes and sort out one of them is at the core of making buying decisions. tjiptono's (2008: 21) purchasing decision is a mechanism in which the buyer identifies the problem, searches for data on specific goods or brands, and considers a portion of each of these alternatives to include them in solving the problem which contributes to the purchase decision. according to kotler (2007: 223), a purchasing decision is a stage that customers go through before making a commodity purchase decision. research method the type of research applied in this research is quantitative research, where research information is in the form of numbers and is analyzed using statistics. the proanalysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 152 cedure used in this research is a survey procedure. with 17 micro, small and medium enterprises (umkm) actors of gebug milkfish in losari district, brebes regency. taken the population by random sampling as much as 212 consumers and then taking a sample of 34 consumers, the data is processed using spss version 25.00. frame of mind figure 1. framework information h1 is the effect of product quality on consumer purchasing decisions. h2 is the effect of price on purchasing decisions. h3 is the effect of product quality and price on purchasing decisions. results and discussions classic assumption test normality test the information normality test aims to test whether the dependent and independent variables are in a fair distribution, close to reasonable, or not. the normality test of information in this research is tried by looking at the histogram graph of information, which is declared reasonable. if the shape of the curve has a slope that tends to be balanced, either from the right or the left side and the curve almost matches the shape of an almost perfect bell. the data is declared normal when the image is distributed with the data points in the diagonal line's direction in the standard p-plot image. figure 1. e-money user analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 153 based on figure 2, the graph above shows that the distribution of data on the histogram line display can be concluded that the histogram graph provides a normal distribution. figure 3.normal p-plot based on figure 3, it can be seen that the distribution of data points is distributed along the diagonal, and the distribution of data points follows the diagonal line, so it can be concluded that the regression meets normality. multicollinearity test the multicollinearity test helps determine whether the proposed regression model finds a strong correlation between the independent variables. if the variance inflation factor (vif) value <10 and the tolerance value> 0.10, it can be concluded that there is no multicollinearity between the independent variables in the regression model. table 1. output multicollinearity cofficientsa as shown in table 1, the vif value of the price variable is 1.103, and the tolerance value is 0.907. although the quality variable has a vif value of 1.103 and a tolerance value of 0.907, in all these variables, the tolerance value is 0.907> 0.10, and the vif value is 1.103 <10. heteroscedasticity test examine differences in the residual variance from one observation period to another, or draw the relationship between the predicted scores and the students' elimination residual scores. from the scatter plot image mode, we can see how to predict model collinearity statistics tolerance vif (constant) price product quality .907 .907 1,103 1,103 analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 154 the presence or absence of heteroscedasticity in the model. in the multiple regression model, there is no heteroscedasticity. if the dots are spread above, below, or around or around the number 0, the regression model will not experience heteroscedasticity. figure 4.scatterplot figure 4 shows that the scatter plot points are scattered randomly and are spread above or below the number 0. therefore, it can be concluded that there is no heteroscedasticity in the regression model, so the questionnaire model is suitable for improving decision-making, purchasing milkfish worms in losari brebes regency, based on independent variables (price and product quality). linearity test table 2. results of the linearity anova test of product quality linearity test is used to determine the form of the relationship between the independent variables and the dependent variable. sum of squares df mean square f sig. purchase decision * product quality between groups (combined) 24,074 7 3,439 , 799 , 594 linearity , 920 1 , 920 , 214 , 647 deviation from linearity 23,155 6 3,859 , 897 , 509 within groups 137,701 32 4,303 total 161,775 39 analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 155 table 3: price linear anova test results based on the data above, it is known that the fundamental value of decision making is known as the sig. deviation from linearity product quality 0.509> 0.05, and the value of sig. deviation from linearity at 0.290> 0.05, it can be concluded that there is a linear relationship between the independent variables and the dependent variable. autocorrelation test the autocorrelation test aims to test whether there is a correlation between the confounding error period t and the confounding error period t-1 in the (previous) linear regression model. if there is a correlation, it is called an autocorrelation problem. the following is the calculation data: table 4: durbin watson test results table 5. durbin watson value calculation based on the table above, the equation was tested with the durbin watson autocorrelation test, namely du <d <4-du, so the results were 1,600 <1,826 <2,400, so it can be concluded that no autocorrelation occurs in variables x1 and x2 with variable y. sum of squares df mean square f sig. purchase decision * price between groups (combined) 72,671 7 10,382 3,728 , 005 linearity 51,143 1 51,143 18,367 , 000 deviation from linearity 21,528 6 3,588 1,289 , 290 within groups 89,104 32 2,784 total 161,775 39 model r r square adjusted r square std. the error of the estimate durbin-watson 1 , 571a , 326 , 290 1,71626 1,826 a. predictors: (constant), price, product quality b. dependent variable: purchase decision d dl du 4-dl 4-du 1,826 1.3908 1,6000 2.6092 2,400 analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 156 hypothesis testing t-test (partial) the t-test is used to partially test the effect of each independent variable of product quality and price (x1 and x2) on the dependent variable on purchasing decisions (y). this test uses the criteria if t-count> t-table, then ha is accepted and h0 is rejected, or the independent variable has a significant effect on the dependent variable. if <ttable, ha is rejected and h0 is accepted, or the independent variable does not significantly affect the dependent variable. t table = (confidence level divided by 2 number of responses, minus 1). alternatively, it can also use the following formula: hypothesis testing t-test (partial) the t-test is used to partially test how each independent variable (x1 and x2) product quality and price affect the dependent variable (y) purchasing decisions. if tcount> t-table, this test uses the standard, then accepts ha and rejects h0 or the independent variable significantly affects the dependent variable. if <t table, then ha is rejected, h0 is accepted, or the independent variable has no significant effect on the dependent variable. t table = (number of responses with confidence level divided by two minus 1). alternatively, it can also use the following formula: t table = (α / 2: nk-1) t table = (0.05 / 2: 40-2-1) t table = (0.025: 37) t table = number 0.025: 37 then the t table value is 2.0261 table 6. test results from table 6 regarding the test results, the results can be seen, namely: the effect of product quality on purchasing decisions based on the output coefficient on product quality, the t value is -748 <t table 2.0261 and the significance value (sig.) 0.459> 0.05, it can be concluded that h0 is accepted h1 is rejected. it means that the product quality variable does not have a partial effect on the purchasing decision variable of gebug milkfish buyers in the losari sub-district, brebes district. based on the t-test statistical product quality variable results, the t-count value is -0.748 with a significance value of 0.459 greater than 0.05 (0.459 <0.05). furthermore, the regression coefficient has a negative value of -0.148. the hypothesis states that there is a positive effect of the influence of product quality on purchasing decisions (case study on buyers of gebug milkfish in losari subdistrict, brebes regency) rejected. model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 6,974 3,562 1,958 , 058 product quality -, 148 , 198 -, 106 -, 748 , 459 price , 715 , 170 , 595 4,196 , 000 a. dependent variable: purchase decision analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 157 effect of price on purchasing decisions based on the output coefficient about the price, the t value is 4.196 <t table 2.0261 and the significance value (sig.) 0.000 <0.05, it can be concluded that h0 is rejected and h1 is accepted. it means that the price variable has a partial effect on the purchasing decision variable of gebug milkfish buyers in the losari sub-district, brebes district. based on the results of the t-test statistic, the price variable obtained an at-value value of 4,196 with a significance value of 0.001 less than 0.05 (0.001 <0.05), and the regression coefficient has a positive value of 0.715, so the hypothesis that there is influence positive effect of price on purchasing decisions (case study on buyers of gebug milkfish in losari sub-district, brebes district) accepted. f test (simultaneously) simultaneous testing aims to determine whether the independent variables (price and quality) have the same effect on the dependent variable (purchase decision). if the p-value <from the specified level of significance, then the test uses this standard, then the independent variables affect the dependent variable. it can be seen the value of f. if the f count> f table's value, then the independent variable affects the dependent variable. table f can be calculated by df1 = k-1 and df2 = nk, where k is the number of dependent and independent variables. then df1 = 3-1 = 2 and df2 = 34-3 = 31, so that the f table we get is 3.30. table 7. test results f from table 7 the anova f test results, the explanation of the calculation results is known as follows: a. the value of f-count = 8,961 and f-table = 3.24, so f-count> f-table, meaning that the price and quality variables influence purchasing decisions for milkfish buyers in the losari sub-district, brebes district. b. the significant value is 0.001 <0.05, which significantly affects gebug milkfish buyers' purchasing decisions in the losari sub-district, brebes district. test the coefficient of determination (r2) the coefficient of determination (r2) measures the willingness of the model to explain the dependent variable. if r2 is large (close to 1), it can be said that the effect of the independent variable is the same as the dependent variable. the model used is increasingly powerful and can explain the independent variable's effect on the dependent variable. meanwhile, r² (close to zero) means that the effect of the independent variables (x1 and x2) on the dependent variable (y) is getting smaller, which means that the model used is not sufficient to explain this effect. of the independent variable on that variable. model sum of squares df mean square f sig. 1 regression 52,789 2 26,395 8,961 , 001b residual 108,986 37 2,946 total 161,775 39 a. dependent variable: purchase decision b. predictors: (constant), price, product quality analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 158 table 8. model summary the data analysis results in table 6, the value of r = 0.571 or r² (r square) = 0.326. it means that the regression model obtained can explain that the variable product quality (x1) and price (x2) can influence purchasing decisions on milkfish buyers in the losari sub-district, brebes district 45.9%. in comparison, the rest is influenced by other variables. model test based on the results of the data in table 6, the regression equation is obtained as follows: y = a + β1 x1 + β2 x2 + e so from the model above, the spss output results can be entered as follows: y = 6,974 + -0,148 x1 + 0,715 x2 + e the constant value is 6,974, which means that if the product quality variable (x1) and the price variable (x2) is assumed to be zero, then the buying decision of milkfish buyers in losari district, brebes regency, will change. assuming the other variables are constant or constant, multiply by 7,541.the regression coefficient value of the product quality variable (x1) is -0.148, which means that the product quality variable (x1) has no positive effect on purchasing decisions. the regression coefficient value of the price variable (x2) is 0.715, which means the price variable (x2) positively affects purchasing decisions. in other words, every time the price variable (x2) increases by one unit, for milkfish buyers, in other words, the purchase decision is made at gebug. in the losari area, assuming other variables are constant or constant, brebes will increase by 0.715. model r r square adjusted r square std. the error of the estimate 1 , 571a , 326 , 290 1,71626 a. predictors: (constant), price, product quality table 9.coefficients model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 6,974 3,562 1,958 , 058 product quality -, 148 , 198 -, 106 -, 748 , 459 price , 715 , 170 , 595 4,196 , 000 a. dependent variable: purchase decision analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 159 conclusions and suggestions based on the results of research and discussion of the effect of product quality and price on purchasing decisions, as well as exemplifying gebug milkfish buyers in losari sub-district, brebes district, the following conclusions can be drawn: 1. product quality does not affect the buying decision of milkfish buyers in losari district, brebbs regency. it can be seen from the t value of -0.748, the significance value of 0.459 is more significant than 0.05 (0.459 <0.05), and the regression coefficient is negative -0.148, so it can be concluded that the variable product quality obscures gebug in losari district, brebes regency. the decision to buy fish does not affect. 2. price affects the buying decision of milkfish buyers in losari district, brebes regency. it can be seen from the t value of 4.196, the significance value of 0.001 is less than 0.05 (0.001 <0.05), and the regression coefficient has a positive value of 0.715, so it can be concluded that the price variable has a positive value score. it has a significant effect on gebug milkfish buyers' buying decision in losari district, brebes regency. 3. price affects the buying decision of milkfish buyers in losari district, brebes regency. it can be seen from the t value of 4.196, the significance value of 0.001 is less than 0.05 (0.001 <0.05), and the regression coefficient has a positive value of 0.715, so it can be concluded that the price variable has a positive value score. it has a significant effect on gebug milkfish buyers' buying decision in losari district, brebes regency. 4. the effect of product quality and price has a different effect on gebug milkfish buyers' purchasing decisions in losari district, brebes regency. it can be seen from the f test (at once), f count = 8.961, f table = 3.24, so that the practical value of f count> f table is 0.001. therefore, the significant value is less than 0.05 (0.000 <0.05), so it can be concluded that the price variable and product quality variable together have a positive and significant effect on purchasing decisions of gebug milkfish buyers in losari district brebes regency. references alfred. 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(2020). modeling the impact of product quality on dynamic pricing and advertising policies. european journal of operational research, 284(3), 990–1001. https://doi.org/10.1016/ j.ejor.2020.01.035 geovani, s.m, w., ronald, s.t.,m.m, d., & amelia s.e., rfp-i., m.m., d. (2021). analysis of the effect of product quality, product style, product price, brand image, service quality and store environment factors on brand loyalty on uniqlo customers in surabaya. international journal of research publications, 69(1). https://doi.org/10.47119/ijrp100691120211680 iswayanti ika putri, (2010). analysis of the effect of product quality, service quality, price and place on purchasing decisions. diponegoro university. kotler, p. (2007). marketing management v olume ii (indonesian edition). jakarta: pt. index. kotler, philip, and kevin lane keller. (2009). marketing management, 17e global edition, pearson education limited, england. kotler, philip. (2009). marketing management. jakarta: four salemba kotler and armstrong (2012) gary armstrong. marketing principles. jakarta: erlangga kotler, philip, and armstrong, gary. (2008: 179). marketing principles. jakarta: erlangga, kotler, philip and keller, k. (2007). marketing management. jakarta: pt. index luthfia (2012) the influence of financial performance, company size, capital structure, and corporate governance. nasution (2006). approaches in management economics. jakarta. earth literacy nursya'bani purnama (2006: 9) quality management, global perspective, first edition, econisia faculty of economics. sangadji, etta mamang and sopiah. (2013). consumer behavior. yogyakarta: andi. tjiptono, fandy. (2008). marketing management. jakarta: erlangga. tjiptono. (2008). strategic marketing, issue 2. yogyakarta: cv andi. analysis of influence of product quality and price on buyer's decision https://doi.org/10.21009/jobbe.005.1.10 mukson, zaman, m.b., & ikhwan, s. journal of business and behavioural entrepreneurship, 5(1), 149-160 https://doi.org/10.21009/jobbe.004.2.01 64 abstract this paper investigates the effects information communications technology has on the sustainability of digital entrepreneurship in nigeria. furthermore, this paper seeks to uncover if the utilization of ict can forecast the rate of new enterprises in the digital entrepreneurship sector and interrogate the attributes and interconnections inherent in digital entrepreneurship. literature review using the systematic quantitative assessment technique (sqat) was the methodology used to review 45 de articles published in the last ten years (2012 – 2021). for a thorough, impartial amalgam of the reviewed articles, this paper analysed the types, period, location, and data collection methods of the 45 digital entrepreneurship papers. the review showed that existing research has been both empirical and conceptual in equal measure with only one instance in mixed mode. the parity suggests that future researchers should endeavour to conduct more conceptual research to underpin the envisaged accelerated growth of de. keywords: digital entrepreneurship, digitalisation, systematic assessment technique, technology received: 28 april 2021 ; accepted: 16 august 2021 ; publish: december 2021 how to cite: paulinus, a.c., et.al. (2021). digital entrepreneurship in the last decade: a systematic review. journal of business and behavioural entrepreneurship, 5(2), 64-78. https://doi.org/10.21009/jobbe.005.2.09 digital entrepreneurship in the last decade: a systematic review amadi chimezie paulinus department of entrepreneurship and business studies federal university of technology minna, nigeria chimezieamada@gmail.com umaru mustapha zubairu department of entrepreneurship and business studies federal university of technology minna, nigeria uzubairu@gmail.com olalekan busra sakariyan department of entrepreneurship and business studies federal university of technology minna, nigeria kanzak@futminna.edu.ng isah imam paiko department of entrepreneurship and business studies federal university of technology minna, nigeria paikolupa@yahoo.com https://doi.org/10.21009/jobbe.004.2.01 mailto:chimezieamada@gmail.com mailto:uzubairu@gmail.com mailto:kanzak@futminna.edu.ng mailto:paikolupa@yahoo.com 65 introduction digital entrepreneurship features “changes in entrepreneurial practice, theory and education therefore, it is of high topicality as technological developments and advances in infrastructure create various opportunities for entrepreneurs” (zanheer et al., 2019). this opens up new possibilities for anyone considering becoming an entrepreneur; albeit some opportunities are more technical, but numerous others are within reach for anyone who learns the fundamental competences of digital entrepreneurship. these fundamental skills include finding new customers online, prototyping new business ideas and improving business ideas based on data. the digital entrepreneurship fosters growth and productivity and also supports inclusive development (askerov et al., 2019; yin et al., 2019). entrepreneurship is the activity of setting up a business or organisation, taking on financial risks in the expectation of value creation and profit making. furthermore, “entrepreneurship will change as business and society continue to be transformed by advanced innovation via digital technology” (richter et al., 2017). “the rapid developments in information and communication technologies and their increased utilization motivate the vision of an evolving digital economy” (quinton et al., 2018). the quick diffusion of icts has produced significant “changes in how goods and services are produced, the nature of the goods and services produced, and the means by which goods and services are brought to the market and distributed to customers” (quinton et al., 2018). during the last decade, this evolving digital entrepreneurship has been the “preeminent driver of structural change and economic growth at both the national and the regional levels in the developed and developing economies” (barefoot et al., 2018). however, “there are substantial differences among countries and regions as regards their role in the development of digital entrepreneurship and their propensity to adopt and apply ict applications in various sectors and activities. hence, countries and regions differ markedly in how far they have come on the road to the digital entrepreneurship” (zaheeer et al., 2019). founders of new ventures seem to focus on their immediate stakeholders, including customers, employees, suppliers and investors but not on the broader impact of ict on the long-term sustainability of their enterprise. capital, product or service and marketing are “the three key pillars through which a startup can become a sustainable enterprise in the long run” (hamid & khalid, 2016). many new enterprises end up focusing on one or two of these pillars, which negatively affects them. for instance, many companies tend to focus only on raising funds and marketing, while ignoring product or service development via the use of ict (johansson et al., 2006). the properties of digital entrepreneurship and information communications technology and how they interrelate is complicated. in this digital age, it is essential to understand this interrelationship which is a central plank for innovation that underpins economic growth. there are several issues regarding digital entrepreneurship and ict inhibiting digital entrepreneurs from optimising the advantages that digital entrepreneurship adds to business. this paper examines these issues and their impact on businesses. furthermore, this study also seeks to determine whether the utilization of ict can conjecture the rate of start-ups in the digital entrepreneurship sector. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 66 research methods in conducting a methodical review of scholarship on digital entrepreneurship (de) in the last decade, the methodology adopted by this study is the systematic quantitative assessment technique (sqat). australian researchers, pickering and byrne developed sqat in 2014. the method “allows researchers to systematically analyse existing academic literature to produce a structured quantitative summary of the subject to determine their inclusion or exclusion in the review process and focuses on peer-reviewed original journal publications so as to maintain a high quality of articles” (pickering and byrne, 2014). sqat “enables the researcher to identify important geographic, scalar, theoretical and methodological gaps in the literature” (pickering and byrne, 2014). sqat also lends itself to being straightforward, logical and simple to use which are all essential elements of a systematic review. sqat endorses five significant rungs in achieving a sound methodical review as described in table 1. table 1: the five steps of sqat source: author’s review (2021) a total of 45 published de articles from six prominent academic journal publishers were chosen. table 2 presents the de article breakdown by publisher. s/n step application in current study 1. outline the topic digital entrepreneurship (de) articles published between 2012 and 2021 2. articulate the research questions five research questions: when were the de articles published? where were the de articles written? were the published de articles conceptual vs. empirical? what method was used to collect data? what themes did these de articles explore, and what were the major findings? 3. name the key words “digital entrepreneurship” 4. search and find databases six databases utilized: emerald, elsevier, sage, springer, wiley and taylors & francis “all in title search” with the phrase “digital entrepreneurship” 5. scrutinize publications the found publications were perused to ensure they were dealing only with digital entrepreneurship. only peer-reviewed conceptual and empirical de articles were included. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 67 table 2: de ar ticles r eviewed by publisher (2012–2021) source: author’s review (2021 results and discussions time of the publication of de articles figure 1 outlines the time of the publication of the 45 de articles examined for this study over the last decade, 2012–2021. figure 1: time distribution of de articles source: author ’s review (2021) the study revealed that digital entrepreneurship articles made their debut in academic journals in 2013 with just one instance and a similar number in 2014. by 2015 it seemed that interest in the subject had waned as there was no publication on the topic that year. interest rose again in 2016 with two publications and surged to six instances in both 2017 and 2018. the numbers spiked to 17 in 2019, but took a dip to 10 in 2020 and tapered off to just two in 2021. it can be observed that de articles were s/n publisher number of de articles 1. elsevier 16 2. springer 11 3. sage 9 4. emerald 5 5. wiley 4 6. taylors & francis 0 total 45 paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 68 published successively from 2013 to 2021 except in 2015. geographic distribution of de articles a review of the 45 de journal articles revealed that 23 countries were represented, and figure 2 presents the top four countries from which these articles originated from over the last decade, 2012–2021. figure 2: time distr ibution of de ar ticles source: author ’s review (2021) italy had by far the most number of de articles with 10, followed by the uk and usa with 7 articles respectively, and then germany with five. the remaining 19 countries and the number of de articles associated with them are presented in table 3. in order to provide an additional perspective of the geographic distribution of de articles published in the last decade, figure 3 provides a breakdown of the 45 articles based on the continent they originated from. europe had the largest number of published de articles (42), north america (8), asia (7), and then africa (3). on the other hand, australasia and south america only had one de article apiece. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 69 table 3: 19 r emaining countr ies and the de ar ticles associated with them source: author ’s review (2021) digital entrepreneurship is the smart application of the powerful “digital technologies to business; it is about creating added value for your customers using information and communication technology with the aim of making business gains and includes redefining the value chain, disrupting existing value propositions and creating new ones leveraging the power of digital technologies.” (g. nedumaran et al., 2020). from geographic gap analysis, african, australasian and south american countries are perhaps most in need of digital entrepreneurship, as these countries trail their counterparts in the global north and asia. the 2020 world digital competitiveness ranking which measures the capacity and readiness of economies to adopt and explore digital technologies for economic and social transformation ranked countries in the global north and asia in the top 10 which correlates with the high de research activities in that territory. s/n country number of articles 1 france 4 2 ireland 3 3 china 3 4 spain 3 5 netherlands 3 6 liechtenstein 2 7 sweden 2 8 south korea 2 9 australia 1 10 brazil 1 11 canada 1 12 denmark 1 13 finland 1 14 india 1 15 morocco 1 16 nigeria 1 17 sudan 1 18 taiwan 1 19 turkey 1 paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 70 figure 3: sl ar ticles by continent digital entrepreneurship researchers thus have a role to play in these three continents by conducting studies that will provide empirical evidences of the gains of digital entrepreneurship. their research studies will help to spur an increase in the competitiveness of both the local and national economies in the three continents. transformation of existing economies into digital economies heralds many opportunities for the accelerated growth of the small and medium-sized enterprises which are the drivers of local and national economies. article type figure 4 presents a categorization of the 45 de articles reviewed based on whether they were empirical or conceptual in nature. it can be observed that equal numbers of the articles reviewed were empirical (22) and conceptual (22) in type while only one was mixed mode. empirical and conceptual researches are both important to validate or disprove existing de theories or models. figure 4 shows that de researchers of the last decade have purposefully devoted energy on both forms of research. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 71 figure 4: de ar ticle types conceptual research forms the building blocks of de research and will establish the research agenda for the next decade of de research. as the concept of de matures, future de researchers may begin to shift to empirical de research to try to validate the concept of digital entrepreneurship. data collection methods figure 5 presents the nine different data collection methods utilized by the 23 empirical and mixed mode de articles examined for this study. it can be seen that about 74% of the articles (17 out of 23) utilized interviews to collect data; this was by far the most utilized method (e.g., dong, 2019; mcadam et al., 2019; ngoasong, 2017). observation was the next most common data collection method used by 6 out of the 23 studies (e.g., toniolo et al., 2020; leung, 2019; arfi, 2019). five studies utilized secondary data (e.g., secundo, 2020; david-west, 2018; li et al., 2017; toniolo et al., 2020); in joint position with surveys (5 out of 23) (e.g., yin et al., 2019; bouncken et al., 2020; balocco et al., 2019). one study (obschonka et al., 2017) collected data from questionnaires while another (mcadam et al., 2019) used focus groups. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 72 figure 5: de data collection methods figure 5 revealed an obvious bias towards interviews in the way empirical data was collected by de studies in the last decade. although interviews allow researchers to collect data from large samples which make the findings more representative of the target population. however, the almost exclusive use of interviews means that rich and in-depth perspectives of de that would be obtained via qualitative methods have not been fully explored. it is thus incumbent on future de researchers to adopt more qualitative data collection methods to provide different insights into the de phenomenon. sl themes an analysis of the 45 de articles reviewed for this study revealed that they explored eight distinct themes which are presented in figure 6. figure 6: de themes paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 73 it can be observed that many of the de articles examined (11 from 45) explored digital entrepreneurship startup approaches. the startup approaches x-rayed included lean and agile methods referred to as the lean startup approaches (lsa) (ghezia a., 2018 and balocco et al., 2019); crowdfunding platforms and “how angel groups and venture capital (vc) funds affect growth of digital new ventures in their startup and scaleup phases” (cavallo et al., 2019 and finkle, 2019); entrepreneurial startups and innovation (hsieh, 2019 and block et al., 2020); “innovative business models for the sharing economy” (richter et al., 2017) the network perspective to successful startups on digital platforms (srinivasan, 2017). the next most common theme explored was institutional and corporate digital entrepreneurship with 9 out of the 45 de articles pursuing this task. characteristics identified included the role of institutional entrepreneurship in building de ecosystems (hu et al., 2016); “digital entrepreneurship and field conditions for institutional change” (geissinger et al., 2018); implications for “digital entrepreneurship in the regulatory environment” (dong, 2019); institutional patterns in co-working spaces (bouncken et al., 2020); innovation and institutional entrepreneurship (tumbas et al., 2018); and, challenges and opportunities facing institutional entrepreneurship (de los reyes, 2019). joshi et al., (2019) pondered the “spread of the internet technology as a surrogate for growth of the digital era and examined its impact on organisations.” the third most explored theme (8 out of 45 articles) was trying to understand to what extent the de ecosystems had diffused across economies, and to investigate whether the meaning of de remained consistent across the different economies. li et al., (2017) opined that “studies on digital entrepreneurship ecosystems (dees) are limited and the concept is largely undertheorized.” the next set of theme in the studies investigated the digital competences underpinning de. ngoasong (2017) critically explored “how context as an antecedent to entrepreneurial digital competencies (edcs) influences digital entrepreneurship in a resource-scarce environment.” according to scuotto (2013) “the ability to efficiently use the latest technology are also relevant in developing entrepreneurship attitude.” four de studies investigated whether the saying “what a man can do, a woman can do better” holds true in the case of de by exploring the gender perspective in de. martinezdy et al., (2018) interrogated the notion of digital entrepreneurship as an emancipatory phenomenon for women. ughetto et al., (2019) outlined contributions that intended to enlarge and thicken the comprehension of “whether and how women entrepreneurs leverage new digital technologies in the creation and conduct of new ventures in order to overcome the hurdles they face and concluded with a promising new line of research to the understanding of whether and to what extent new digital technologies provide an opportunity space in the creation and conduct of new ventures for women.” mcadam (2020) described digital entrepreneurship as a “great leveller in terms of equalizing the entrepreneurial playing field for women.” four articles making up the sixth theme focused on academic de. rippa, p., technological forecasting & social change (2018), offered an “interpretative framework for digital academic entrepreneurship” composed of four components:  why the rationale for the adoption of digital technologies for academic entrepreneurship;  what the emerging forms of digital academic entrepreneurship;  who the stakeholders involved through the digital technologies to achieve the academic entrepreneurship goal: and,  how the processes of academic entrepreneurship supported by digital technologies. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 74 secundo et al., (2020) highlighted the emergence of four major research streams:  digital technologies for entrepreneurship education;  the “maker space movement” for academic entrepreneurship;  digital technologies for discovering entrepreneurial opportunities; and,  creating entrepreneurial competences in the digital “university-based” entrepreneurial ecosystems. in the context of de in emerging economies, three articles explored the theme from different perspectives. bowen (2019) investigated the “impact of digital connectivity challenges on rural businesses.” brand positioning in de, the eighth and final theme, contributed two articles to the review. bahcecik et al., (2019) considered brand positioning as central to success in de. table 4: summar y of findings of r eview of 45 de ar ticles source: author ’s review (2021) s/n heading key findings implications 1 time distribution (2012–2021) – de articles were published every year from 2013 to 2021 except 2015. – 2019 and 2020 were the most productive years with 17 and 10 articles published respectively. – interest in de has increased over the last decade. 2 geographic distribution – 23 countries had at least one de article. – italy had the largest number of sl articles (10) among contributing countries. – europe had the largest number of de articles (42) among contributing continents, while south america and australasia had the least with one apiece. – there is need for more de research in africa, south america and australasia as they were the least represented by articles reviewed. 3. article type – equal numbers of the articles reviewed were empirical (22) and conceptual (22) in type while only one was mixed mode. – there is a need for more conceptual de research to form the research agenda for the next decade of de scholarship. 4. data collection methods – eight different data collection methods were identified. – interview was the most common method used (17). – future de researchers to adopt more qualitative data collection methods to provide different insights into the de phenomenon. 5. de themes – eight distinct de themes identified. – de startup was the dominant theme (11 out of 45). – de is maturing as a concept and is set to dominate the world of entrepreneurship in the years ahead. paulinus, a.c., et.al. (2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 75 conclusion digital entrepreneurship comprises everything that is new and innovative about entrepreneurship in a digital world. this incorporates novel methods of sourcing customers for businesses; fresh methods of delivering products and services; modern ways of generating value while minimising costs; finding new possibilities to cooperate with other partners; sniffing out new opportunities and competitive advantages. as digital entrepreneurship evolves, businesses will transform with time. not too far into the future, enterprises will be born digital. then digital entrepreneurship as a topic will become conventional. for now, there is a need to prepare entrepreneurs for the digital world and to give people an altogether new pathway to entrepreneurship. it was against this backdrop that this paper conducted a sys-tematic review of digital entrepreneurship scholarship over the last decade (2012–2021). forty five de articles were reviewed across five headings: time distribution, geographic distribution, article type, data collection methods and de themes, with key findings and their implications for knowledge and practice analysed for each heading. perhaps the most important finding of this review was that significant empirical evidence exists regarding the efficacy of digital entrepreneurship. the major implication of this finding for leaders today, whether public or private, is that servant leadership is indeed a philosophy worth learning about and adopting to ensure that organizations and countries alike can achieve their stated objectives. this review had certain limitations which future researchers can address. first, it only relied on journal articles published by five of the most popular academic publishers: elsevier emerald, sage, springer and wiley. although this was done to ensure the quality of articles reviewed, it means that other valuable de articles not published by these publishers have been excluded. future researchers can widen the article selection criteria to increase the robustness of the review. a second limitation is the fact that only articles with the phrase “digital entrepreneurship” in their titles were included for selection; many de articles might not have included that phrase in their titles and thus were not captured by this review. what makes digital entrepreneurship topical is its promise of a better world once it gains global traction. references arfi, w. b., & hikkerova, l. 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(2021). journal of business and behavioural entrepreneurship, 5(2), 64-78 digital entrepreneurship in the last decade: a systematic review. https://doi.org/10.21009/jobbe.005.2.09 https://doi.org/10.21009/jobbe.004.2.01 78 abstract the covid-19 pandemic situation makes people tend to consume video on demand as an alternative for home entertainment. this makes video on demand service providers compete by taking advantage of this situation. sometimes the existing stimulus can lead people to buy products impulsively. this study aims to examine the effect of situational factor, visual merchandising, and electronic word of mouth on impulse buying behavior. this study used non-probability sampling techniques and the method used was judgmental sampling. this study focuses on netflix consumers aged 18-39 who bought netflix products impulsively during the covid-19 pandemic. 200 respondents collected using the online bilingual questionnaire in english and indonesian and spread over 32 countries. data were analyzed using a multiple linear regression method. the results showed that situational factor and electronic word of mouth significantly influence on impulsebuying behavior. meanwhile, visual merchandising has no influence on impulse buying behavior. this can be used as a reference in increasing sales by maximizing consumer impulse buying behavior. keywords: situational factor, visual merchandising, electronic word of mouth, impulse buying behavior received: 28 april 2021; accepted: 2 june 2021 ; publish: june 2021 how to cite: abdullah, m.s.f., artanti, y. (2021). the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. journal of business and behavioural entrepreneurship, 5(1), 78-91. https://doi.org/10.21009/jobbe.005.1.05 the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis muhammad saif furqan abdullah faculty of economics and business, state university of surabaya, indonesia muhammad.17080574086@mhs.unesa.ac.id yessy artanti faculty of economics and business, state university of surabaya, indonesia yessyartanti@unesa.ac.id https://doi.org/10.21009/jobbe.004.2.01 79 introduction world health organization (who) declared corona virus disease 2019 (covid-19) a global pandemic on wednesday, march 11, 2020. this pandemic has a negative impact on almost all industries and sectors around the world. as a preventive measure, at least one third of the world's population is living under lockdown policies and is no longer free to travel due to the spread of covid-19. including the closure of areas that are considered as public entertainment such as tourist attractions, open parks, food courts, etc. (cnn indonesia, 2020). this has led to changes in the trend of public entertainment consumption globally, some are decreasing and some are increasing. according to jones (2020) one of the people's entertainment products that has increased is home entertainment products. the more sophisticated technology makes people more entertained by the presence of home entertainment in the form of video on demand services. this service is an interactive system that provides full control for consumers to choose the video program they want to watch without having to follow the broadcast schedule. during the covid19 pandemic, there was a significant increase in consumers of video on demand services and it is predicted that it will continue to increase in the next few years (lindlahr, 2020). when doing a purchase, consumers do not always behave plotting a decision to buy (dyulgerova & devreli, 2019). so that it is possible for consumers to buy something spontaneously, this is called impulse buying. according to liao et al., (2016) hedonic products are products whose main consumption is characterized by affective experiences, sensual pleasures, fantasies, and pleasures. in contrast to utilitarian products that are difficult to make consumers buy products impulsively, hedonic products such as video on demand services do not have many obstacles, or in other words, they are quite easy to influence consumer impulse buying behavior. purchasing activities by consumers cannot be separated from situational factor, consumer environmental factors that are temporary and cause conditions in which consumer behavior appears at a certain time and place (mamuaya & tumiwa, 2017). according to (hamermesh, 2020) the global covid-19 pandemic situation has made people have more free time than usual. the rest, according to kunst (2020) the covid-19 pandemic situation in germany, britain and america, as many as 707 respondents all experienced a decrease in income. in addition to situational factor, presenting products with attractive visuals can also provoke people's interest to buy impulsively. visual merchandising is an effort to provide information needed by consumers and is indicated by signs, pictures or other media as a substitute for salespeople (widyastuti, 2018). as a digital video on demand product, it is important to pay attention to visual appearance such as video quality, website display color, animation promotion, etc. so with the application of visual merchandising, companies have an alternative to convey information to consumers without having to have a salesperson. with the advancement of internet technology and the rise of social media, without having to meet face to face, people can share their opinions with others. this is an advantage for companies by utilizing electronic word of mouth to create communities that actively exchange information. electronic word of mouth is a dynamic and ongoing process of exchanging information between potential, actual, or former consumers about a product, service, brand or company, which is available to many individuals and institutions via the internet (ismagilova et al., 2020). this information exchange process can stimulate consumers to make impulsive purchases. abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 https://doi.org/10.21009/jobbe.004.2.01 80 in the competition of entertainment industry for video on demand services, netflix is a video on demand service provider that is the first point of reference for consumers. followed by its competitors, namely amazon prime and hulu (evan et al., 2020). netflix is an american company and already available in 190 countries. netflix is predicted continue to increase in market share as the covid-19 pandemic effect (databoks, 2020; digital tv research, 2016; forbes, 2020; harvest exchange corp, 2018). various marketing programs have been carried out by netflix, including social media marketing. according to socialblade (2021) netflix manages all of its social media successfully with an a-score rating. this is better than its competitors where the best only gets a b + score. however, there is a fact that even though netflix continues to dominate the market, in the 3rd quarter of 2020 netflix's market share fell 7% compared to the 2nd quarter of 2020 to 25% (santos, 2020). this study aims to determine the effect of situational factor, visual merchandising, and electronic word of mouth on impulse buying behavior among consumers of netflix products. therefore, it is expected that this research is able to provide a reference to increase sales by maximizing consumer impulse buying. literature review impulse buying behavior impulse buying is a sudden or strong desire to buy something quickly, triggers emotional conflict and tends to be done without considering the consequences (mamuaya & tumiwa, 2017). meanwhile, according to dyulgerova & devreli (2019) impulse buying are unplanned purchases and as a result of exposure to stimuli, because decisions are often made at the place of purchase, including impulsive purchases, consumer cognitive and/or emotional reactions. from the various definitions of impulse buying according to these researchers, it can be concluded that impulsebuying is unplanned spontaneous buying behavior and tends to prioritize emotional without much prior consideration. situational factor according to puspaningrum (2017) situational factor are temporary environments that form the context in consumer activities that occur at a certain place and time. meanwhile, according to mamuaya & tumiwa (2017) factor situational is an external factor that comes from shopping environment when the buyer made contact with certain visual stimuli (products or promotions) that creates unplanned purchases. based on some of these expert opinions, it can be concluded that situational factor are momentary conditions that arise spontaneously and do not come from an individual or a brand of an item, but there is a very strong stimulus to influence an individual to carry out consumption activities. visual merchandising visual merchandising is an effort to combine effective merchandise selection with effective merchandise display (le, 2018). meanwhile, according to widyastuti (2018) visual merchandising is an effort that companies can do as a substitute for salespeople whose aim is to provide information and provide direction needed by customers as shown by signs, images or other media. based on some expert opinion, it the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 81 can be concluded visual merchandising is the technique of delivering information merchandise by the company to the consumer with an effective visual. electronic word of mouth ismagilova et al. (2020) defines electronic word of mouth as a dynamic and ongoing process of exchanging information between potential, actual, or former consumers about products, services, brands, or companies, which are available to many individuals and institutions via the internet. meanwhile, according to sugianto (2016) electronic word of mouth is defined as a positive or negative statement about a product or company made by potential, actual or company customers, which is available to many people via the internet. based on some of these expert opinions, it can be concluded that electronic word of mouth is a response expressed by an individual to another individual in the form of positive and negative statements made online or online. the effect of situational factor (x1) on impulse buying behavior (y) research conducted by puspaningrum (2017) states that there is a significant influence between situational factor on impulse buying behavior. various stimulus is very strong and the temporary of the environment around the consumer to make a purchase can influence consumers to make purchases are impulsive. similar results were conveyed by research from khorrami et al. (2015); mamuaya & pandowo (2018); mamuaya & tumiwa (2017); pangemanan & longdong, (2015). the effect of visual merchandising (x2) on impulse buying behavior (y) research conducted by le (2018) states that there is a significant influence between visual merchandising on impulsive buying behavior. the more beautiful the product looks, the easier and more comfortable it is to access the product, the more it makes consumers more likely to make impulsive purchases. similar results were conveyed by research from iberahim et al. (2020); randhawa & saluja (2017); thomas et al. (2018); widyastuti (2018). the effect of electronic word of mouth (x3) on impulse buying behavior (y) research conducted by husnain et al. (2016) stated that there is a significant influence between electronic word of mouth on impulse buying behavior. the use of social media as an effective media for electronic word of mouth makes it easier for consumers to make impulsive purchases. the same opinion was also conveyed by research from bagheri & mokhtaran (2018) dan sugianto (2016) hypothesis h1 : situational factor has a significant effect on impulse buying behavior. h2 : visual merchandising has a significant effect on impulse buying behavior. h3 : electronic word of mouth has a significant effect on impulse buying behavior. based on the established hypotheses, a conceptual framework is obtained which can be seen in figure 1 as follows. the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 82 figure 1. conceptual framework source: data processed (2021 research methods this research is a type of quantitative research. types and sources of data are categorized into primary data and secondary data. the population is infinite, which means that the number of populations studied is unknown with the characteristics of respondents aged between 18-39 years and have bought products impulsively from netflix at least once during the covid-19 pandemic. using a non-probability sampling technique with this type of judgmental sampling. the data analysis technique used multiple linear regression. this research is included in a research study that aims to test the market. therefore, according to malhotra & dash (2016) the minimum number of respondents is 200 respondents. primary data collection used bilingual questionnaire media in english and indonesian. the questionnaire is distributed online through the netflix international community on facebook, instagram, and tiktok in both public and personal forums. respondents who meet the characteristics required in this study can fill out the questionnaire voluntarily. a total of 200 respondents spread across 32 countries were collected and measured using a likert scale. the questionnaire statement items in this study adopted the previous research with consideration of the adjustment of the object under study (video on demand products). measurement of situational factor variables was developed from research by mamuaya & pandowo (2018); mamuaya & tumiwa (2017); puspaningrum (2017) which consists of 4 indicators, namely: (1) recommendations from friends and family, (2) mood, (3) time availability, and (4) availability of money. measuring visual merchandising variables was developed from the research of le (2018) dan widyastuti (2018) which consisted of 4 indicators, namely: (1) the website makes it comfortable to shop, (2) the appearance of attractive products, (3) neatly arranged information layout, and (4) attractive promotional display. measuring the variable electronic word of mouth was developed from the research of sugianto (2016) and ananda et al. (2019) which consists of 5 indicators, namely: (1) lots of reviews by social media users, (2) lots of comments by social media users, (3) lots of recommendations by social media users, (4) lots of information about the company, and (5) get information from reliable sources. measuring the variable impulsive buying behavior was developed from research by dyulgerova & devreli (2019) and puspaningrum (2017) which consists of 4 indicators, namely: (1) buying spontaneously without planning in advance, (2) buying quickly without much consideration, (3) buying regardless h1 situational factor visual merchandising impulse buying beelectronic word of h2 h3 the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 83 of negative consequences, and (4) feeling excited and having difficulty controlling oneself. the measurement items of the variables in this study can be seen in table 1. table 1 measurement of research variables no. variable item 1 situational factor mamuaya & pandowo (2018); mamuaya & tumiwa (2017); puspaningrum (2017) the covid-19 pandemic situation made a friend recommend me to buy a netflix product 2 the covid-19 pandemic situation led my family to recommend me to buy a netflix product 3 the covid-19 pandemic situation made me sad and i ended up buying a netflix product to cheer myself up 4 the covid-19 pandemic situation made me buy netflix products to get rid of boredom 5 the covid-19 pandemic situation has left me with more free time 6 the covid-19 pandemic situation has made me provide money to buy netflix products 7 visual merchandising le (2018); widyastuti (2018) the dominant red, black, and white color of the netflix website makes it convenient for shopping 8 the presentation of netflix information with a moving image media make me comfortable while shopping 9 i got a lot of information i need from the netflix website 10 the image quality is clear (not blurry) makes me interested in netflix 11 i am interested in a preview of the use of netflix products 12 the layout of the information on the netflix website is neat 13 the layout of the information on the netflix website helps me when shopping independently without having to bother asking customer service 14 i was intrigued when i saw the promotional visuals from netflix 15 electronic word of mouth sugianto (2016); ananda et al. (2019) many people share their experiences using netflix products on social media 16 many people provide criticism and suggestions about netflix on social media 17 many people recommend netflix products on social media 18 lots of information about the netflix company circulating on social media 19 i got information about netflix from a reliable source 20 impulse buying behavior dyulgerova & devreli (2019); puspaningrum (2017) i bought netflix products spontaneously without my planning ahead 21 i buy netflix products on the fly without much consideration 22 i don't really care about the negative impact of buying a netflix product 23 i found it difficult to control myself buying a netflix product and wanted to watch a movie immediately the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 84 results and discussion validity and reliability test results based on the data processing of the validity test results, it can be concluded that all statements in the questionnaire are declared valid because the statistical count r > r table. with r table = 0.361. then there is a reliability test and found all variables have a cronbach's alpha value greater than the critical value of 0.70. with this, all statements in the questionnaire are reliable and can be used as a research instrument to measure the influence of situational factor, visual merchandising, and electronic word of mouth on impulse buying behavior among consumers of netflix products. respondent characteristics the total number of respondents in this study was 200 respondents. respondents were predominantly with male sex, age 18-25 years, residing in the philippines, taking the latest education in high school (or equivalent), single marital status, a student with an income of less than usd 70 per month. to be clearer, the characteristics of the respondents can be seen in table 2 below. the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 85 table 2 respondent characteristics respondent characteristics amount percentage gender man 117 58,5% women 83 41,5% age 18-25 years 157 78,5% 26-32 years 24 12% 33-39 years 19 9,5% country algeria 4 2% andorra 1 0,5% bangladesh 2 1% belgium 1 0,5% brazil 1 0,5% bulgaria 1 0,5% burma 2 1% colombia 1 0,5% czech republic 1 0,5% egypt 3 1,5% greece 1 0,5% hong kong 1 0,5% hungary 2 1% india 1 0,5% indonesia 45 22,5% iraq 1 0,5% israel 1 0,5% kenya 2 1% lebanon 1 0,5% malaysia 3 1,5% mexico 1 0,5% morocco 4 2% nepal 3 1,5% pakistan 1 0,5% peru 1 0,5% philippines 92 46% poland 2 1% romania 2 1% south africa 1 0,5% great britain 1 0,5% united states of america 6 3% vietnamese 11 5,5% the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 86 source: data processed (2021) classical assumption test results this study has fulfilled the assumption of normality because the significance value of the kolmogorov-smirnov test is correct. sig. (2-tailed) exceeds 0,05, which is 0,055. then this research has also fulfilled the multicollinearity assumption because the tolerance value on all variables that have a value of more than 0,1 and the vif value on all variables is less than 10. finally, this study has fulfilled the assumption of heteroscedasticity because the scatterplot graph does not have a certain pattern and spreads. above or below the zeros on the y-axis. hypothesis testing because this study examines the relationship between one dependent variable and more than one independent variable, the statistical method used is multiple linear last education kindergarten (or equivalent) 6 3% elementary school (or equivalent) 1 0,5% junior high school (or equivalent) 21 10,5% senior high school (or equivalent) 90 45% associate degree (or equivalent) 5 2,5% bachelor degree (or equivalent) 67 33,5% master’s degree (or equivalent) 7 3,5% doctorate (or equivalent) 3 1,5% marital status single 177 88,5% married 20 10% divorced 2 1% widower 1 0,5% profession government employees 11 5,5% private employees 29 14,5% entrepreneur 26 13% student 126 63% unemployment 8 4% income per month < usd 70 142 71% usd 105 – usd 180 13 6,5% usd 210 – usd 315 27 13,5% > usd 315 19 9% the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 87 regression. multiple linear regression analysis model is used with the equation y = a + b1 x1 + b2 x2 + b3 x3 +..+ bn xn + e. the results of the multiple linear regression test can be seen in table 3. table 3 multiple linier regression test results source: data processed (2021) from the results of multiple linear regression tests, the equation y = -0.789 + 0.274 x1 + 0.044 x2 + 0.341 x3 + e is obtained. it is known that the constant value of the multiple linear regression equation is -0.789. the negative meaning of the constant value indicates that impulse buying behavior on netflix products will not occur when consumers are not stimulated by situational factors, visual merchandising, and electronic word of mouth. the positive meaning of the regression coefficient shows that all independent variables with impulse buying behavior have a unidirectional relationship, so the better stimulus of the situational factor, visual merchandising, and electronic word of mouth, will increase impulse buying behavior for netflix customers. it can be concluded that the variables of situational factor and electronic word of mouth have a significant effect on the variable impulse buying behavior. this is based on a significance value of 0.00 which is smaller than 0.05. so that hypothesis 1 (h1) and hypothesis 3 (h3) are accepted. meanwhile, the visual merchandising variable has no influence on impulse buying behavior because the significance value is 0.461 which is greater than 0.05. so that hypothesis 2 (h2) is rejected. the results of the contribution of the independent variable situational factor (x1), visual merchandising (x2), and electronic word of mouth (x3) to the dependent variable, namely impulse buying behavior (y), it is found that the adjusted r square value is 0.314 = 31.4%. this figure shows that the independent variable in this study affects the impulse buying behavior of netflix consumers by 31.4%. while the remaining 0.589 = 58.9% is influenced by other variables outside the variables used in this study. discussion the results showed that situational factor had a significant effect on impulse buying behavior. this result is in line with previous research by khorrami et al. (2015); mamuaya & pandowo (2018); mamuaya & tumiwa (2017); pangemanan & longdong (2015); puspaningrum (2017). with the average characteristics of respondents being single young people who are currently studying, this makes customers not busy enough so they tend to feel bored and need entertainment in the covid-19 pandemic situation. then with the majority of income per month less than usd 70 does not rule out consumers to buy netflix products impulsively. this is because there is a sense of passion to buy netflix products immediately because they can't wait to watch movies on netflix. so that respondents tend to set aside some of their money to buy regression coefficient t statistics significance (constant) -.789 -.480 .632 situational factor (x1) .274 4.297 .000 visual merchandising (x2) .044 .738 .461 electronic word of mouth (x3) .341 3.568 .000 the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 88 netflix products. furthermore, in this study at least 32 different countries felt the covid-19 pandemic situation. and all countries where respondents live have roughly the same response, namely the covid-19 pandemic situation prompting customers to purchase netflix products impulsively. of all the statements given by respondents, the covid-19 pandemic situation made customers have more free time, was the respondent's statement with the highest level of approval. followed by statements related to moods such as the covid-19 pandemic situation which is boring. this can be explained because as a preventive measure, at least one third of the world's population is living under a lockdown policy and is no longer free to travel due to the increasingly spreading covid-19. including the closure of areas that are considered as public entertainment such as tourist attractions, open parks, food courts, etc. so that people tend to want to buy netflix products as an alternative to entertainment without being planned in advance and without much consideration because they want to immediately overcome boredom in their spare time. in addition, the results also show that there is no influence between visual merchandising on impulse buying behavior. this means that if visual merchandising changes, it will not affect impulse buying behavior. the results of this study are not in accordance with previous research by iberahim et al. (2020); le (2018); randhawa & saluja (2017); thomas et al. (2018); widyastuti (2018) which states that visual merchandising has a significant effect on impulse buying behavior. on average, respondents agree that netflix has a high aesthetic value in presenting its products and is easy and comfortable to consume. but that doesn't mean that visual merchandising makes respondents behave in making purchases on netflix products impulsively. visual appearance is something that can only be consumed by the eye as a sense of sight. in contrast to food products that require a sense of smell and taste to consume them. effective visual merchandising on food products will make consumers experience more by utilizing the sense of sight as an added value. this can make consumers more likely to buy impulsively. meanwhile, video on demand services are digital products that really need a sense of sight to consume them. so that visual quality is something that is really considered in order to get the maximum product consumption experience. with regard to visuals, people cannot just ignore the visual quality of netflix products and tend to buy in a utilitarian manner where consumers will make rational considerations before buying. bad visuals will make consumers benefit from the experience of consuming bad products and vice versa. this explains why good visual merchandising on netflix products does not influence consumers to make impulsive purchases, but tends to buy utilitarian behavior. then the results show that electronic word of mouth has a significant effect on impulse buying behavior. this result is in line with previous research by bagheri & mokhtaran (2018); husnain et al. (2016); sugianto (2016). compared to visual merchandising variables and situational factors, the electronic word of mouth variable is the most influential variable to influence consumers to make purchases on netflix products impulsively. with the characteristics of the respondents on average being single young people who are currently studying, this makes them more likely to be technology literate and consume more and more use of social media. so that it is easier to get electronic word of mouth stimulus through social media. furthermore, at least in this study there were 32 different countries that without having to meet face to face, were still able to exchange information online. the widespread use of this technology can encourage respondents to impulsively purchase netflix products. of all the statements given by respondents, many people recommending netflix products on social media are the respondents' statements with the highest level of approval. followed by a the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 89 statement related to sharing his experience using netflix on social media. this can be explained because the more widespread use of social media is, the easier it is for users to share their experiences using netflix. furthermore, content about netflix on social media is content with a high level of interest because it is in accordance with the purpose of using social media, namely to socialize and seek entertainment. it is not surprising that respondents easily make impulsive purchases of netflix products because of the stimulus from electronic word of mouth. conclusion the results showed that situational factor and electronic word of mouth significantly influence impulse buying behavior. meanwhile, visual merchandising has no influence on impulse buying behavior. although respondents agree that netflix has a high aesthetic value in presenting its products as well as being easy and comfortable to consume. but that doesn't mean that visual merchandising makes respondents behave in making purchases on netflix products impulsively. when compared with others, the electronic word of mouth variable is the most influential variable than visual merchandising and situational factors. this means that electronic word of mouth marketing can be a marketing technique that is very intensified considering its large impact on impulse purchases of netflix products. meanwhile, there are quite a lot of situational factor affecting impulse buying behavior. so it helps netflix to take advantage of the existing circumstances to increase impulse buying. such as situations of religious holidays, seasonal holidays, regional quarantine, etc. the limitation in this study is that there are still many countries affected by the covid-19 pandemic and cannot be reached by researchers so that respondents do not get respondents from that country, for the next researchers are expected to be able to reach all countries to support research. then the next research is also expected to use independent variables other than those used in this study, considering that there are still 58.9% other variables that can influence impulse buying behavior. as well as hedonic shopping motivation variables, website quality, sales promotion, etc. references ananda, a. s., hernández-garcía, á., acquila-natale, e., & lamberti, l. 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(2018). does visual merchandising, store atmosphere and private label product influence impulse buying? evidence in jakarta. journal of business and retail management research, 12(3), 140–148. https://doi.org/10.24052/jbrmr/ v12is03/art-12 the effect of situational factor, visual merchandising, and electronic word of mouth on impulsive buying behavior on video on demand services current the covid-19 pandemic crisis. https://doi.org/10.21009/jobbe.005.1.05 abdullah, m.s.f., artanti, y. journal of business and behavioural entrepreneurship, 5(1), 78-91 https://doi.org/10.21009/jobbe.004.2.01 69 training and career development: why and when related to job satisfaction and its impact on employee performance diana 1*, nor lailla2, mitsalina tantri3 , sampor ali4, muhammad farras ramadhan 5 1,2,3,4management, muhammadiyah university of jakarta, cireundeu, east ciputat, south tangerang, 15419 * diana.hasan@umj.ac.id abstract this study analyzes the main factors of employee performance, thereby finding a new model as a reference for islamic banking practitioners in indonesia. the aim of this research is to measure the effect of training and career development on job satisfaction and its impact on employee performance. quantitative research methods are used to analyze research variables consisting of training, career development, job satisfaction and employee performance through questionnaires distributed to respondents who are the object of research. research stages are carried out by distributing questionnaires through techniquespurposive sampling was carried out on the population at 7 islamic banks in the dki jakarta area,to determine the object of research, then the questionnaire was distributed using the google form. the collected questionnaires were then tabulated and processed with amos 25.0 structural equation modeling (sem). which resulted in training, career development and training having an influence on job satisfaction, although training turned out to have no significant effect on job satisfaction and also had an impact on employee performance. the results of this study serve as a reference for the directors of islamic banking in improving employee and banking performance, so that they pay attention to career development and training factors without neglecting job satisfaction factors.. keywords: training, career development, job satisfaction, employee performance received: 12 november 2022 ; accepted: 29 december 2022 ; how to cite: diana, et.al. (2022). training and career development: why and when related to job satisfaction and its impact on employee performance. journal of business and behavioural entrepreneurship, 6(2), 69-81. https://doi.org/10.21009/jobbe.006.2.06 70 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 introduction the development of islamic banking in indonesia based on sharia banking statistics 2016-2019 has increased every year in terms of assets increasing 31%, dpk increasing 46%, number of offices increasing 2.4% and number of offices increasing to 14 banks. developments continued, marked by the announcement of the government's plan in february 2021 to merge bumn syariah banks into bank syariah indonesia (bsi), which is a merger of several government-owned islamic banks, namely bri syariah, bank syariah mandiri, btn syariah and bni syariah. the assets and capital of sharia state-owned banks resulting from this merger will of course increase dramatically. quoting the young islamic bankers report, if the four sharia state-owned banks are merged, the assets and capital owned will be idr 236 trillion and idr 25 trillion, respectively. this is enough for the merged state-owned sharia bank to rank seventh in the 10 largest banks in indonesia and become the largest sharia bank in indonesia. with strong financial capabilities, the ability to expand islamic state-owned banks is higher and more stable. with this merger, the acceleration of the development of islamic banking will be pushed more quickly in the medium and long term another impact is the expansion of office network coverage and digital services that are more reliable to reach a wider market. then the development of this organization must of course be supported by the best talents and be more adaptive to the latest millennial developments. one aspect that needs attention, of course, is the quality of human resources. in the current development of islamic banking, it turns out that not all of them have been matched by adequate quality human resources (akob, 2018). the 2015-2019 financial services authority (ojk) roadmap explains that the rapid development of islamic banking is not without problems with national islamic banking, one of which is the quantity and quality of islamic banking human resources. according to widodo (2015) human resources (hr) is an important factor in an organization. the success of an organization is strongly influenced by the quality of human resources which has an impact on performance achievement. performance is very substantial in achieving company goals, performance as a potential that can be used to predict the level of success for the long term. performance is "job performance or actual performance" namely the achievement of work performance by employees both in quality and quantity in carrying out duties and responsibilities. mangkunegara (2008). performance, according to armstrong and baron (widodo, 2015: 99) is influenced by several factors including: personal factors which are indicated by competence, motivation and commitment, leadership factors are indicated by the guidance of leadership encouragement, team factors are indicated by the support of colleagues, system factors are indicated by work systems and infrastructure facilities and situation factors are shown the level of pressure and changes in the work environment. furthermore, indicators for measuring employee performance can be seen 71 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 from work quality, ability, initiative, timeliness and communication (bintoro & daryanto, 2017). the main challenge that occurs in the development of indonesian islamic banking is the professionalism of human resources in islamic banking. the inadequacy of formal and non-formal education in fulfilling islamic banking human resources in indonesia, resulting in a gap between demand and supply, partly due to the capacity and number of graduates not sufficient to meet the demand for human resources in the islamic banking industry (munthe, 2012). efforts to improve the quality of hr solutions that need to be carried out by islamic banking are by holding job training. job training is one of the factors that affect employee performance. training is a learning process to increase knowledge and expertise, so as to be able to achieve professional performance according to the field and company standards (widodo, 2015: 82). this also supports the company's efforts to improve the competence of its employees. according to tagala (2018) competence is a characteristic that underlies the nature of an individual associated with referenced criteria for superior or effective performance in a job or situation. based on the reference sources above, of course it is important for companies to increase the competence of islamic banking hr in addressing the lack of hr with an educational background and expertise in islamic finance and banking. another important thing in improving employee performance is for the company to also make career development efforts. career development is something that should not be ignored, ignoring career development is tantamount to ignoring the development of institutions/companies. when a human resource career in an organization does not develop, it means that there are serious problems that need attention in that organization. career development is an effort made by organizations in planning the careers of their employees, which is referred to as career management, including planning, implementing, and supervising careers (sinambela, 2016: 260). every company will always try to improve employee performance in the hope that the company's goals will be achieved. various ways will be taken by the company in improving the performance of its employees, for example by paying attention to employee job satisfaction and providing motivation to these employees. discussing job satisfaction cannot be separated from the existence of factors that can affect one's job satisfaction. the problem of job satisfaction will be carried out and fulfilled if several variables including the variables mentioned above can influence it. job satisfaction (priansa, 2014) is an employee's feelings towards his work, happy/like or not happy/disliked as a result of employee interaction with his work environment or as a mental attitude achievement, also as a result of an employee's assessment of his work. in general, an increase in performance is desirable from both the employer and the workers. employers want the performance of their employees both for the benefit of 72 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 increasing work results and company profits. on the other hand, workers have an interest in developing themselves and promoting workers. and, it can be said that good employee performance aims to increase productivity. therefore, strategy and work system improvements need to be carried out by each component in the company. this study examines several previous research journal articles, several variables from previous research related to performance. based on these research journal articles, job performance is widely discussed and associated with the work environment, organizational culture and leadership style, gcg, organizational motivation and commitment. but it seems that research related to work competency, career training and development, job satisfaction and job performance has not been widely studied and needs to be studied as a research contribution related to good human resource management strategies, especially in the islamic banking industry. in this case the researcher takes the object in islamic banks. on the basis of the previous explanation, the purpose of this study is to measure the performance of islamic bank employees by using variables for training and career development to analyze the relationship and its effect empirically on employee performance and its impact on work. formulation of the problem: 1) is there anythe influence of career development on job satisfaction at islamic banks in dki jakarta? 2) is there anythe influence of career development on job satisfaction at islamic banks in dki jakarta? 3) is there anythe influence of job satisfaction on employee performance at islamic banks in dki jakarta? 4) is there anythe influence of career development on employee performance at islamic banks in dki jakarta mediated by job satisfaction? 5) is there anyeffect of training on employee performance at islamic banks in dki jakarta with job satisfaction mediation? literature review public sector challenges are translated into more complex job demands that require individual innovation. to deal with these demands, many public organizations have implemented employee performance management. therefore performance is the responsibility of each individual for his work, and is an affirmation of performance expectations, namely in order to create a framework for supervisors and their subordinates to communicate (audenaert et al., 2019). another opinion (fogaça et al., 2018) explains 73 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 that employee performance is a comparison of the achievement of someone's activities in an organization against the achievements that are assigned as duties and responsibilities. in the development of the islamic banking industry, there are several inhibiting factors (chazi et al., 2018), namely the lack of sufficient educated and professional human resources (g. chen et al., 2013), differences in views between the concept of bank management as a whole sharia principles with operational pract ices in the field (nomran & haron, 2019), a low level of trust from muslims (shawtari, 2018), and through academic research it turns out that they have not been formulated and systemized perfectly and proportionately in the development of islamic financial institutions (basheer et al. al., 2019). and this causes the impact of public trust in the existence of islamic banks among conventional financial institutions which is one of the problems that arise and becomes the complexity of the existing problems (mateev & bachvarov, (diamantidis & chatzoglou, 2019) in his research stated that by increasing employee performance, positively and significantly to improve organizational performance, and supported by other researchers (apalia, 2017), (pradhan & jena, 2017) and (pang & lu, 2018 ) which states that the main factor in improving organizational performance is employee performance. based on this background, this study will analyze the factors that influence the performance of islamic banking organizations. training of banking employees has attracted research attention for academic writers (kutlay & safakli, 2019). this has resulted in various definitions of training. (cohen, 2017) defines training as a planned activity aimed at improving employee performance by providing skills. (armstrong-stassen & cattaneo, 2010) states that training is behavior modification through experience, transfer of skills and knowledge from those who have it to those who don't. investing in a training program is not a cheap investment. investment in the training program was not only in the form of material only. the results of research (devaro et al., 2017) state that the main thing in training is that it is consistent with investment spending which tends to be excessive. the design of the training program needs to be developed. research (guan & frenkel, 2019) confirms a positive relationship between employee perceptions of training and job involvement. furthermore, work involvement can ultimately directly improve their task performance. for this reason, the company must examine and study further how the training program has been developed. career development is the preparation of individuals to assume different or higher responsibilities in the organization. development is usually related to increasing the intellectual or emotional abilities needed to do a better job (siagian, 2015). according to siagian (2015: 207) career development indicators are as follows: a) fair treatment in career treatment is realized if the promotion criteria are based on objective, rational considerations and are widely known among the company's employees. b) concern for direct superiors involvement of direct superiors in the career planning of each company employee. c) information about various promotion opportunities access to information about various opportunities for company employees to be promoted. this access is very 74 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 important especially if the available vacancies are filled through a competitive internal selection process d) there is an interest in being promoted the right approach to use in terms of growing the interest of the company's employees for career development is a flexible and proactive approach. according to robbins and judge (2015) job satisfaction is a general attitude toward one's work that shows the difference between the amount of rewards workers receive and the amount they believe they should receive. the employee job satisfaction indicator is measured by: a) the work itself (work it self) each job requires a certain skill in accordance with their respective fields. b) superiors (supervision) a good boss means willing to appreciate the work of his subordinates. for subordinates, superiors can be seen as a father/mother/friend figure and at the same time their boss. c) worker (workers) is a factor related to the relationship between employees and their superiors and with other employees, both the same and different types of work. d) promotion is a factor related to whether there is an opportunity to obtain career advancement while working. e) salary/wage (pay) is a factor of meeting the needs of employees who are considered appropriate or not. research method this research is an associative quantitative research, where the writer tries to find out the effect between two variables, while the independent variables in this study are career development (x1), training (x2), while job satisfaction (y1) is mediation, and employee performance ( y2) is the dependent variable. respondents in this study were employees of bank syariah x who worked and lived in the dki jakarta area. sources of data used are primary data and secondary data. primary data is questionnaire data which is directly obtained from respondents while secondary data is in the form of literature, articles, journals and sites on the internet relating to the research being conducted. the sampling technique in this study was an online data instrument that was distributed through social media, using a sampling technique, namely non-probability purposive sampling, which is a collection technique based on predetermined criteria. . data collection was carried out using a questionnaire, namely google form by distributing the google form link through social media in the form of whatsapp which was distributed in the lecturer community, family community, community community. the total number of respondents who filled out the online questionnaire was 207 respondents, 75 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 and 207 met the criteria. then they were processed using data analysis techniques using amos 25.0 structural equation modeling (sem). minto, (2016) which states that the results of the model construct test can be seen from the results of the output data on the estimated critical value parameter (cr), if the cr is greater than 1.96 (cr > 1.96) then the hypothesis is accepted, if it is less than this value it is rejected. the higher the cr value, the more significant the effect, or vice versa. framework information: the research hypothesis is: 1. h1 career development influences job satisfaction. 2. h2 training has an effect on job satisfaction. 3. h3 job satisfaction affects employee performance. 4. h4 career development influences employee performance mediated by job satisfaction. 5. h5 training has an effect on employee performance mediated by job satisfaction results and discussion data collection was carried out from august to november 2022. the respondents from this study varied, both women and men, of different ages, and different levels of education and income. based on the criteria, respondents who are entitled to fill in are respondents who are still working or have worked for the last 3 months. data collection was carried out using a questionnaire, namely google form by distributing the google form link through social media in the form of whatsapp which was distributed in the lecturer community, family community, community community. the total number of respondents who filled out the online questionnaire was 207 respondents, and 207 met the criteria. the characteristics of the 207 respondents can be described in the table below. 76 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 table 1 respondent characteristics no profile description amount % 1 gender man 114 55.07% woman 93 44.93% amount 207 100% 2 age < 20 years 3 1.45% 20 24 years 47 22.71% 25 29 years 15 7.25% 30 34 years 31 14.98% 35 39 years 31 14.98% 40 44 years 33 15.94% 45 49 years 27 13.04% 50 and > 50 years 20 9.66% 3 level of education amount 207 100% high school 12 5.80% diploma 38 18.36% bachelor 119 57.49% masters / doctorate 38 18.36% amount 207 100% 4 marital status not married yet 66 31.88% marry 138 66.67% divorce 3 1.45% amount 207 100% 5 length of working < 1 yr 43 20.77% 1 < 2 yrs 17 8.21% 2 < 5 yrs 27 13.04% above 5 yrs 120 57.97% amount 207 100% based on the table above, data was obtained that out of 207 respondents, 55.07% were male respondents and 44.93% female respondents. based on age grouping, respondents aged between <20 years 1.45%, ages 20-24 years 22.71%, ages 25-29 years 7.25%, ages 30-34 years 14.98%, ages 35-39 years 14.98%, ages 40 44 years 15.94%, ages 45 49 years 13.04% and ages 50 and > years 9.66%. based on the level of education that has been completed, respondents graduated from high school 5.80%, diploma graduates 18.36%, undergraduate graduates 57.49%, masters/doctoral graduates 18.36%. based on their marital status, 31.88% of unmarried respondents, 66.67% married, 1.45% married and divorced. based on length of work, respondents who worked less than 1 year 20.77%, 1 < 2 years 8.21%, 2 < 5 years 13.04%, data collection was carried out using a questionnaire, developed with google forms, and disseminated through online social media. the purposive sampling technique 77 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 was carried out on a population of 7 islamic banks in indonesia, by distributing questionnaires following a likert scale from 1 to 6. validity test is an attempt to demonstrate the validity of the measuring device used. the test step is to correlate the scores obtained on each indicator (question item) with the individual's total score. the validity was tested with the help of a computer using the spss version 25 program. the validity test in this study was carried out on survey data of 392 respondents. it is declared valid if it has a component matrix or pattern matrix. to ensure that these indicators have met the construct validity test, a confirmatory factor analysis (cfa) was performed, using amos software version 25.0, to achieve a fit model with a minimum p (probability) value of 0.05 at cmin. berkut output results if the data: table 2 fit models model npar cmin df p cmin/df default models 38 480,628 98 ,020 4,904 saturated models 136 ,000 0 independence models 16 2024,297 120 ,000 16,869 figure 2. efa and reliability test after the cfa test is carried out and the results of the fit model are obtained, then the results of the structural equation modeling hypothesis test can be seen, with the results shown in the figure above and the table below: 78 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 table 3 structural equation model hypothesis estimates se cr p results job staisfaction <--career development . 262 062 4,227 *** accepted job satisfaction <--training . 250 .098 2,547 . 011 rejected employee_ performance <--job satisfaction . 521 .067 7,773 *** accepted employee_ performance <--career development . 386 063 6.157 *** accepted employee_ performance <--training . 614 061 10,086 *** accepted • hypothesis 1 (h1) is accepted cr = >1.96 and p<0.05 indicates that career development has a positive and significant effect on job satisfaction. • hypothesis 2 (h2) is rejected cr => 1.96 and p> 0.05 indicates that training has a positive but not significant effect on job satisfaction. • hypothesis 3 (h3) is accepted cr = >1.96 and p<0.05 indicates that job satisfaction has a positive and significant effect on employee performance • hypothesis 4 (h4) is accepted cr = <1.96 and p <0.05 indicate that career development has a significant and significant effect on employee performance mediated by job satisfaction • hypothesis 5 (h5) is accepted cr = 0<1.96 and p <0.05 indicate that training has a positive and significant effect on employee performance mediated by job satisfaction table 3 above concludes that hypothesis 1 is accepted because the cr value meets the minimum limit where career development affects job satisfaction (cr = 4.227). hypothesis 2 concludes that it is rejected because the cr value, although it meets the minimum threshold, is p > 0.05 so that training has an effect on job satisfaction but is not significant. hypothesis 3 is accepted because the cr value = 7.73 so that job satisfaction has a positive and significant effect on employee performance. hypothesis 4 is also accepted, which means that career development has a significant and positive effect on employee performance with a cr value of 6.157. hypothesis 5 is also accepted, with the highest cr value (10.086), conclusion the current research concludes that career development and training have an influence on job satisfaction, although training has an insignificant effect on job satisfaction and also has an impact on employee performance. this study can be a 79 diana, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 69-81 reference model for the board of directors of islamic banking in improving employee performance and banking performance which needs to pay attention to career development and training factors and not to ignore job satisfaction factors in islamic banks in indonesia. the current research limitation lies in the independent variables. it only includes 2 variables, namely career development and training. in addition, the research sample is still limited to only 207 employees from several islamic banks. therefore, it is suggested that further studies add variables and samples so that different results can occur. acknowledgments we would like to thank several parties so that this activity can be carried out smoothly, namely: 1. muhammadiyah university jakarta as the address and in particular the research service institute (lppm umj) and dean of the faculty of economics and business, university of muhammadiyah jakarta for his support of this research. 2. directors, managers and employees of 7 (seven) islamic banks for their cooperation and willingness to become respondents in this study. 3. all parties who provide assistance, cooperation, suggestions and input. references apalia, ea (2017). effects of discipline management on employee performance in an organization: the case of the county education office human resources department, turkana county. international academic journal of human resource and business administration, 2(3), 1-18. audenaert, m., decramer, a., george, b., verschuere, b., & van waeyenberg, t. 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(2020). exploring the mediating role of work engagement between the linkages of job characteristics with organizational engagement and job satisfaction. management research review (h index 47 q2). sharif, zm, obaid, tf, eneizan, bm, & abumandil, mss (2018). determine the process of training key factors and job performance in the higher education sector. international journal of engineering & technology, 7(4.15), 477-480. tuhumena fmb, kojo c, worang fg. 2017. effect of training and work motivation on employee performance at pt. pegadaian (persero) regional office v manado. emba journal 5(2): 2124–2133. 23 the influences of asset structure and asset growth toward capital structure hanifa nur fadhilla universitas islam indonesia email: hanifa.fadhilla@uii.ac.id abstract this research aims to look at how asset structure and asset growth affect capital structure. the factors that influence the capital structure of real estate and real estate companies are investigated in this study. from 2018 to 2020, he used a sample of 21 companies in sectors listed on the indonesian stock exchange (idx) for this study. the hypothesis is tested using two models that support factors influencing structure of a capital. according to the findings of this study, one of the two independent variables of asset structure has a positive impact on capital structure. the structural asset hypothesis has gained acceptance. however, another independent variable, asset growth, does not affect capital structure. as a result, the hypothesis is rejected. the t-test statistic produced this outcome. keywords: asset structure, asset growth, capital structure, real estate and property companies. received: 18 february 2023 ; accepted: 4 april 2023 ; published: june 2023. how to cite: fadhilla, h.n. (2023). the influences of asset structure and asset growth toward capital structure. journal of business and behavioural entrepreneurship, 7(1), 23-32. https://doi.org/10.21009/jobbe.007.1.02 24 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 introduction capital structure is one of the fundamental elements of running a business. based on myers' (1984) balance theory, firms are based on determining their optimal capital structure. one of the concerns when managing capital is the scale at which a company can operate and grow its business. the structure of a company’s capital is influenced by effective financial management. this boosts operational efficiency. a company’s capital structure and value are inextricably linked, as the optimal capital structure generates the most value for the company. a company's funding decisions determine its ability to operate. businesses also need to pay attention to tax issues. some experts argued that using excess capital reduces profitability. by using an optimal capital structure, firms can use debt to cover bankruptcy costs and achieve tax savings (myers, 1984). the use of receivables provides tax incentives and can reduce taxes. so, companies that finance with debt have cheaper taxes compared to equity. the wrong decision in determining the capital structure of a company can cause financial distress and even bankruptcy. this will happen if the company does not determine the capital structure properly. in addition, if the company pays little attention to making funding decisions, it will incur fixed costs and provide low profitability for the company. the goal of an optimal capital structure is the managers must achieve the lowest minimum cost of capital that must be achieved by the company to remain stable or even increase the value of the company through investment. if so, the company can maximize shareholder wealth. as a result, shareholders will be happier in obtaining more wealth with an optimal capital structure. financing issues affect all kinds of businesses. this has become even more important since the financial crisis of 1997, as many companies faced financial difficulties and bankruptcies. there are many problems with non-performing loans, such as the fact that banks have no upper limit on lending and the feasibility of loan approval. modigliani and miller's theory of capital structure determination is the most contentious (1958). they promoted the capital structure irrelevance theory. according to the assumptions, there are no taxes, transaction costs, bankruptcy costs, or asymmetric information. modigliani and miller's (1958) theory states that firm value cannot be increased by changes in capital structure. thus, there is no relationship with the portion of debt financing and equity financing. financial leverage increases the expected rate of return for shareholders. this would also result in their share risk increasing proportionately. they argue that there is no balance in extra return and extra risk. also, it does not affect shareholders to be richer or poorer. in addition, according to brealey et al (2008) sometimes financial managers consider debt as cheap funding because debt transaction costs are explicitly lower than equity transaction costs. however, a higher cost of debt implicitly results in more financial risk and a higher cost of equity. if we consider both, actually the cost of debt is more expensive than the cost of equity. many theories have also been developed by researchers who followed miller and modigliani. theory of trade-off, agency theory, pecking order theory, signaling theory, and asymmetric theory are among the various theories. according to joni and lina (2010), there are several determinants that influence capital structure. these determinants are asset structure and asset growth. first, the asset structure is a real asset that provides more effective guarantees to creditors in terms of borrowers tending to fixed assets and 25 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 total assets of the company. second, the growth of a company is measured by the growth rate of total assets. growth opportunities are also influential in determining the capital structure of a company. after financial crisis in 1997, one of the industries facing big effect is real estate and property industry because at that time there were many property companies funded debt of banking institutions. on the other hand, banking institutions also face liquidity crisis. this industry decreases due to many big entrepreneurs borrowed debt from foreign country using the us dollar. then, financial problems mounted. decision in defining capital structure will influence value of company. it is reflected on stock price. the shareholder does not want loss in investment competition. it is one of the industries that promise more profit. hence, many people want to invest in this industry. previous research by mayangsari (2001), saidi (2004), susetyo (2006), joni and lina (2010), and indrajaya et al. (2011) indicates structure of an asset has a significant positive impact on capital structure. furthermore, saidi (2004) and joni and lina (2010) have conducted several studies demonstrating that asset leverage significantly affects growth. on the other hand, previous research by fadhli (2010) and nugraha (2012) shows that asset growth has no effect on capital structure. mayangsari (2001), susetyo (2006), hasan (2011), indrajaya et al. (2011), and furi and saifudin (2012) all argue that size of a firm has a positive effect on capital structure. on the other hand, joni and lina (2010) demonstrated that size of a firm has nothing to do with the capital structure. literature review theory of modigliani and miller many studies describe the relationship between organizational behavior decisions and capital structure to determine the most optimal capital structure. according to musyafikin (2005), capital structure is a mixture of the proportion of external funds, namely long-term debt, and equity. the purpose of capital structure management is to combine long-term debt used by companies to maximize the company's stock price. in 1958, the modern capital structure theory started by franco modigliani and merton h. miller (mm) stated that the debt ratio is irrelevant and there is no optimal capital structure. the value of the company depends on the cash flow generated by the company and not on the ratio of debt and equity. the essence of this theory is that the debt ratio is not optimal, and the debt ratio does not describe the value of a company. however, this theory is considered less relevant because the reduction of income tax on the use of debt, market conditions with asymmetric information, and transaction costs in the capital market are not included in this theory. the positive side of debt is that it reduces the agency cost of equity. in addition, the use of debt will make the managers of a company more disciplined in using the company's assets properly. the reason is because supervision by creditors is generally much tighter and more effective than supervision by outside shareholders of the company with relatively limited information (hartono, 2004). trade-off theory the trade-off theory reveals that each company can determine the optimal target debt ratio or leverage. the optimal debt ratio is determined based on the balance between profits and bankruptcy costs due to a company's debt. a company in principle requires new equity funding if the company's debt ratio is above the target. conversely, a company 26 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 needs debt when its debt ratio is below the target. if all funding of a company uses debt or even without debt, the company will not achieve optimal value. indrawati and suhendro (2006) state that one way to increase firm value is to regulate the composition of capital and the decisions of financial managers in determining funding sources that will affect a company's stock price. siregar (2005) states that debt causes companies to gain tax advantages, while bankruptcy costs are administrative costs, legal fees, agency costs, and monitoring costs in anticipation of a company's bankruptcy. while the optimum value is the value that shows the tax advantage for each additional amount of debt equal to the increase in bankruptcy costs. however, the weakness of the trade-off theory is that it does not pay attention to asymmetric information and the high cost of substitution in the form of debt to equity and vice versa. the trade-off theory assumes that investors and management have the same information. this is unacceptable because it is difficult for investors to obtain the same information as management. thus, hampering the company's ability to raise funds by relying on the issuance of new shares. in addition to asymmetric information, taxes, and transaction costs of substitution from debt to equity and vice versa also have an impact on the behavior of managers in deciding the capital structure. an increase in new shares leads to an increase in dividend payments by the company. then, it leads to personal income tax costs and corporate commission fees. pecking order theory according to myers and majluf (1984), the pecking order theory (pot) states that funding decisions have a hierarchy. a company will tend to use internal funding sources such as retained earnings and depreciation in advance compared to external funding sources. when the company does not have sufficient internal funds, external funding will be selected as an alternative. siregar (2005) states that whenever external funding is required by companies, companies tend to use debt rather than equity. mayangsari (2001) applies several assumptions in this theory: first, companies tend to take internal funding, namely retained earnings and depreciation, so the last alternative is external funding such as debt and shares. second, companies should apply external funding, starting from the safest to the riskiest. for example, the sequence starts from debt, convertible bonds, preferred stock, and finally common stock. third, a strict dividend policy in which management will determine the amount of dividend payments, a constant target dividend payout ratio (dpr), and a fixed amount of dividend payments within a certain period regardless of the company's profits or losses. finally, the company will take a good investment portfolio that is available if it experiences a shortage or excess of cash flows caused by dividend policies and fluctuations in returns and investment opportunities. and the amount of dividend payments is fixed in certain periods regardless of the profit or loss of a company. finally, the company will take a good investment portfolio that is available if it experiences a shortage or excess of cash flows caused by dividend policies and fluctuations in returns and investment opportunities. and the amount of dividend payments is fixed in certain periods regardless of the profit or loss of a company. finally, the company will take a good investment portfolio that is available if it experiences a shortage or excess of cash flows caused by dividend policies and fluctuations in returns and investment opportunities. 27 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 siregar (2005) suggests four reasons for pot in forecasting companies that prioritize debt over their own equity when external funding is needed. first, the market suffers losses due to asymmetric information between managers and the market. management tends to issue new shares when the price is too high. thus, it leads to a depreciation of the share price. second, debt and stock incur transaction costs for the company. however, the transaction costs of debt are lower than those of stocks. third, companies gain tax advantages by issuing debentures. this advantage is obtained because the company has interest expenses that can be taken as a deduction from taxable income. finally, management control. agency theory mayangsari (2001) states that agency costs are costs related to management oversight to ensure that management acts consistently in accordance with the company's contractual agreements with creditors and shareholders. according to wahidahwati (2002), company management is the agent of shareholders as the owner of the company (principal). shareholders expect their agents to act on their behalf, so they accredit their authority to their agents. agency costs are costs incurred for supervision carried out by management. management oversight can be carried out by auditing financial statements and limiting management decision making. there are three ways to minimize agency costs: management increases shareholding. with external funding such as debt, shareholders hope that the costs incurred to supervise management can be reduced. this is because the creditor as a party that provides loans to the management of a company will monitor it so that it can be trusted that a company is able to pay its obligations. we can conclude that debt is able to reduce agency costs. signal theory signaling theory is a theory in which there is imperfect and asymmetric information among various corporate partners. there is a conflict of interest between the reasonably knowledgeable manager and other partners. the way to anticipate this is that managers must provide effective signals. according to leland and pyle (1977), firm value is positively related to managerial ownership. the higher the managerial ownership of a company, the greater the debt capacity of a company. ross (1977) argues that managers determine the actual distribution of company returns, but shareholders do not know for sure. managers can use higher financial leverage in the future. higher leverage in the capital structure means a good signal of manager optimism. research method this study was completed using multiple regression versions of spss. from 2018 to 2020, the observe populace became real estate and real estate groups indexed on the indonesian stock exchange (idx). selected random sampling is completed via way of means of focused random sampling. the pattern carries 21 groups. data sources are secondary facts from economic reports. some standards for taking samples are: cs = α + β1 ast + β2 ag + β3 size + ε 28 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 where: cs : capital structure α : constant coefficient β1, β2 : regression coefficient of each independent variable ast : asset structure ag : asset growth size : size of company (control variable) ε : standard error figure 1. research model source: author’s tabulation (2021) ho1: asset structure has no effect on capital structure. ha1: asset structure influences capital structure positively. ho2: the capital structure is unaffected by asset growth. ha2: asset growth influences capital structure positively. results and discussion classical assumption tests table 1 multicollinearity test variable coefficient regression (b) vif information ast 0.968 1.033 no multicollinearity ag 0.985 1.015 no multicollinearity size 0.978 1.022 no multicollinearity source: author’s tabulation (2021) according to table 1 the vif values for all independent variables, especially asset structure, asset growth, and company size are below 10. thus, the regression model proposed in this study has no multicollinearity. (+) h1 (+) h2 asset structure (x1) asset growth (x2) capital structure (y) 29 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 table 2 auto-correlation test model r r square adjusted r square std. error of the estimate durbin watson 1 386 149 106 117486 1.799 a. predictors (constant), ast, as, size b. dependent variable: cs source: author’s tabulation (2021) in this study, the writer obtained a durbin-watson score of 1,799. for the dl value from the durbin-watson table (α = 0.05; k = 3; n = 63) = 1.4943 and the du value from the durbin-watson table (α = 0.05; k = 3; n = 63) = 1.6932. this suggests that the durbinwatson values are du = = 1.6932 and 4-du = 2.3068. thus, there is no auto-correlation. figure 2. heteroscedasticity test according to the graph above, the points are scattered randomly above and below 0 on the y axis. thus, there is no heteroscedasticity. table 3 hypothesis testing result variable coefficient regression (b) t significance information (constant) -0.284 1.531 0.131 ast 0.452 2.517 0.015 significant ag -0.01 0.112 0.911 not significant 30 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 size 0.015 2.322 0.024 significant source: author’s tabulation (2021) multiple linear regression results on factors influencing real estate capital structure and real estate companies listed on the indonesian stock exchange (idx): cs = -0.284 + 0.452 ast 0.01 ag + 0.015 size + ε in this study, the authors used the t-test. a t-test is used to prove the second hypothesis. in this test, the author used her confidence level of 0.1. the asset structure has a t-score of 2.517 with a significant value of 0.015. therefore, the significance value is less than 0.1 (0.015 < 0.1). this means either asset or capital structure have a significant impact. the asset structure regression coefficient is 0.452. as a result, ha1 recognizes the positive impact of asset structure on the structure of a capital of both real estate and its companies listed on the indonesian stock exchange from 2018 to 2020. this study's findings support former research by joni and lina (2010), indrajaya et al. (2011), hardiningsih and oktaviani (2012), and finky et al. (2013), who discovered that the effect of an asset structure to the capital structure has a positive impact. the greater the proportion of fixed assets owned by the company, the greater the proportion of liabilities, and vice versa. companies with a higher proportion of fixed assets have more collateral and are thus more likely to borrow. the t-value for asset growth is -0.112 with a significant value of 0.911. therefore, the significance value is greater than 0.1. this means that the influence of both asset growth and capital structure is insignificant. as a result, ho2 acknowledges that asset growth does not impact the capital structure of real estate and companies of real estate listed on the indonesia stock exchange in 2018-2020. the findings of this study agree with those of previous studies, namely fadhli (2010) and nugraha (2012). asset growth reflects changes in the company's total assets and may be an indicator of the company's future development opportunities. the results of this study imply that changes in a firm's assets do not affect management when it comes to funding decisions to meet the firm's funding needs. the small effect of asset growth on capital structure can be explained by a 4% average asset growth and a 16.7% standard deviation of asset growth. as a result, companies do not have enough assets to guarantee if their liabilities are increased. as a result, increasing assets has nothing to do with the capital structure. the t-value for size is 2.322, and the significance level is 0.024. as a result, these variables have a significant impact. with a regression coefficient of 0.015, size positively correlates to the capital structure. such a context has a direct relationship between company size and the capital structure. the bigger the company, the bigger the leverage and vice versa. so, these variables clearly have a positive effect. there are several empirical studies published by fadhli (2010), hasan (2011), indrajaya et al. has been published. (2011) and furi and saifudin (2012) argue that the firm size positively affects capital structure. large corporations have more debt than small corporations. large corporations require a lot of money to run their businesses. borrowed funds can also be used as borrowed capital if the capital itself is insufficient. 31 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 conclusion according to the study’s findings, asset structure significantly positively impacted the capital structure of real estate and real estate companies listed on the indonesian stock exchange during the study period. the greater proportion of the fixed assets owned, the greater the proportion of liabilities, and vice versa. this is since it provides more guarantees. during the study period, asset growth did not affect the capital structure of real estate and real estate companies at the indonesia stock exchange. as a result, companies do not have enough assets to guarantee if their liabilities are increased. references brealey, r., myers. s., & marcus, a. (2008). fundamentals of corporate finance (6th ed). new york: mcgraw-hill. fadhli, a, w. (2010). faktor-faktor yang mempengaruhi struktur modal pada perusahaan manufactur go public di bei tahun 2005-2007. (skripsi). retrieved from http://eprints.undip.ac.id/24463/1/file_skripsi__full_text_.pdf finky, u, v., wijaya, l, i., & ernawati, e. (2013). faktor-faktor yang mempengaruhi struktur modal pada industri property dan real estate yang terdaftar di bei periode 2008-2011. jurnal ilmiah mahasiswa universitas surabaya, 2(2), 1-13. furi, v, r., & saifudin. (2012). faktor-faktor yang mempengaruhi struktur modal (studi empiris pada peusahaan manufaktur yang terdaftar di bei tahun 2009-2010. jurnal akuntansi, 1(2), 49-62. hardiningsih, p., & oktaviani, r.m. (2012). determinan kebijakan hutang dalam agency theory and pecking order theory. dinamika akuntansi, keuangan, dan perbankan, 1(1), 11-24. hartono. (2004). pengaruh profitabilitas, kesempatan investasi, dan defisit arus kas terhadap kebijakan pendanaan perusahaan: studi kasus pada perusahaan manufaktur yang tercatat di bej. perspektif, 9(2), 171-180. hasan, s. (2011). faktor-faktor yang mempengaruhi struktur modal pada perusahaan public sektor manufaktur. jurnal bisnis dan akuntansi, 13(1), 39-56. indrajaya, g., herlina., & setiadi, r. (2011). pengaruh struktur aktiva, ukuran perusahaan, tingkat pertumbuhan, profitabilitas, dan risiko bisnis terhadap strukur modal: studi empiris pada perusahaan sektor pertambangan yang listing di bei. indrawati, t., & suhendro. (2006). determinasi capital structure pada perusahaan manufaktur di bej periode 2000-2004. jurnal akuntansi & keuangan indonesia, 3(1), 77-105 joni., & lina. (2010). faktor-faktor yang mempengaruhi struktur modal. jurnal bisnis dan akuntansi, (4)2, 86-87. leland, h. e., & pyle, d. l. (1977). informational asymmetries, financial structure, and financial intermediation. journal of finance, 32(2), 371-387. mayangsari, s. (2001). analisis faktor-faktor yang mempengaruhi keputusan pendanaan perusahaan: pengujian pecking order theory hypothesis. media riset akuntansi, auditing, dan informasi, 1(3), 1-26. modigliani, f., & miller, m, h. (1958). the cost of capital, corporation finance and the theory of investment. american economics review, 48(3), 261-297. http://eprints.undip.ac.id/24463/1/file_skripsi__full_text_.pdf 32 fadhilla, h.n. (2023). journal of business and behavioural entrepreneurship, 7(1), 23-32 musyafikin. (2005). analisis pengaruh profitabilitas, leverage operasi, tingkat pertumbuhan, dan struktur aktiva terhadap struktur modal perusahaan industri properti yang go public di bes. jurnal ekonomi, bisnis, & sosial, 6(1), 42-61. myers, s.c. (1984). the capital structure puzzle. journal of finance, 39(3), 575-592. nugraha, p. (2012). pengaruh karakteristik perusahaan terhadap struktur modal (studi perusahaan manufaktur (food & beverage) di bei periode tahun 2009-2011. jurnal universitas maritim raja ali haji. retrieved from february 8, 2014, from http://jurnal.umrah.ac.id/?p=1260. prabansari, y., & kusuma, h. (2005). faktor-faktor yang mempengaruhi struktur modal perusahaan manufaktur go public di bej. sinergi:kajian bisnis dan manajemen,1(3), 1-15. ross, s. a. (1977). the determination of financial structure: the incentive-signaling approach. bell journal of economics, 8(1), 23-40. saidi. (2004). faktor-faktor yang mempengaruhi struktur modal pada industri manufaktur go public di bej tahun 1997-2002. jurnal bisnis dan ekonomi, 11(1), 44-58. siregar, b. (2005). hubungan antara dividen, leverage keuangan, dan investasi. jurnal akuntansi dan manajemen, 16(3), 219-230. susetyo, a. (2006). faktor-faktor yang mempengaruhi struktur modal pada perusahaan manufaktur yang go public di bej periode 2000-2003. (skripsi). universitas islam indonesia, yogyakarta. wahidahwati. (2002). pengaruh kepemilikan manajerial dan kepemilikan institusional pada kebijakan hutang perusahaan: sebuah perspektif teori agensi. jurnal riset akuntansi indonesia, 5(1), 1-16. http://jurnal.umrah.ac.id/?p=1260 12 the influence of teamwork, occupational safety and health on employee performance with compensation as a moderating variable in crew catering pt. xyz at the java sea offshore platform facility ranthy pancasasti ranthy@untirta.ac.id university of sultan ageng tirtayasa, indonesia mochamad alvin fikri alvikri2014@gmail.com university of sultan ageng tirtayasa, indonesia yopi ilham akbar putra yopiilham@gmail.com university of sultan ageng tirtayasa, indonesia risa pusvitasari pusvitarisa@gmail.com university of sultan ageng tirtayasa, indonesia abstract performance is the quality and quantity of an employee's work in fulfilling of employee primary responsibilities as an employee in accordance with the responsibilities assigned to them. good performance will produce satisfactory results, but poor performance will produce bad results. this is company concers, how to achieve effective company goals through good performance. teamwork, occupational safety and health and compensation some of the factors can affect employe performance. the purpose of this study was to examine the effect of teamwork, occupational health and safety affected by compensation as a moderating variable on employee performance. the novelty of this study is that no prior research has discussed teamwork, occupational health and safety affected by compensation as a moderating variable on employee performance on the performance of employee in the catering crew at pt.xyz on the offshore platform of the java sea. the limitation in this study is only to analyse the magnitude of the influence of teamwork, occupational health and safety affected by compensation as a moderating variable on employee performance on the performance of employee in the catering crew at pt.xyz on the offshore platform of the java sea. a questionnaire with a 10-point likert scale as an assistance tool is used in the quantitative research method, and random sampling is used for the sampling methods.the number of samples used to test four (4) hypotheses could have been as many as 90 pieces.path coefficients are examined for statistical significance using structural equation modeling. the results showed that teamwork had a positif and significant effect on employee performance, occupational health and safety had a positif 13 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 and significant effect on employee performance, compensation is positive and significant as a moderator of the relationship between teamwork and employee performance, while compensation is negative and insignificant as a moderator of the relationship between occupational health and safety and employee performance, according to the findings. keywords: teamwork; occupational health and safety; compensation; employee performance. received: 1 october 2022 ; accepted: 29 november 2022 ; published: december 2022 how to cite: pancasasti, r., et.al. (2022). the influence of teamwork, occupational safety and health on employee performance with compensation as a moderating variable in crew catering pt. xyz at the java sea offshore platform facilityjournal of business and behavioural entrepreneurship, 6(2), 12-29. https://doi.org/10.21009/jobbe.006.2.02 introduction every company wants to achieve satisfactory performance in achieving the company's vision and mission. this certainly requires creativity, integrity and commitment from the team within the company to maximize what they have to achieve company goals that have been mutually agreed upon. today's business world really needs the ability to create high-performing employees to achieve company growth. companies must be able to improve employee performance in the corporate environment. the success of a company can be influenced by several factors, one of which is the human resource factor, because human resources are actors at every level from planning to evaluation, and they are able to utilize other resources owned by the organization or company. performance is the ability of a person to carry out tasks and achieve the value standard of a success that has been set by the agency for its employees in line with the job description of each employee. according to mankunegara (2017: 67) performance is the result of qualitative and quantitative work performed by an employee in carrying out their duties in accordance with the responsibilities given. referring to the opinions of these experts regarding the definition of performance, it can be concluded that performance is an achievement that has been achieved by someone in carrying out their duties or responsibilities, according to the standard criteria that have been set in the job. decreasing employee performance or lack of improvement in employee performance can result in failure to achieve company goals which are influenced by teamwork, work motivation, work environment, and other factors. kasmir (2016:189) and 14 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 mahmudi (2015:21) employee performance can affect competence, knowledge, work discipline, work motivation, work environment, job satisfaction, teamwork or teamwork, leadership, organizational culture, and company performance which is stated to be influenced by several other factors. teamwork is a way to achieve company goals successfully and can be done through teamwork. teamwork can encourage employees to be more motivated in completing assigned tasks. with teamwork, besides being able to get work done quickly, ideas can be exchanged between employees. this study focuses on the performance of employees of pt. xyz as a catering crew who works for one of the companies at the java sea offshore platform facility. employee performance is very important for an organization to try to achieve its goals, so that an organization must carry out various activities to improve it. employee performance affects their contribution to the company. robin (2016: 260) defines performance as the result achieved by an employee at work in accordance with the specific standards that apply to that job. performance is the most important measure of success when companies evaluate their talent. in every company, all employees must perform well to achieve the company's vision and mission. the purpose of this study was to determine the effect of teamwork on employee performance and the effect of occupational safety and health on employee performance as well as the moderating effect of compensation on teamwork and occupational health and safety in employees of pt. xyz as a catering crew at the java sea offshore platform facility. business phenomena at present the phenomena that occur in the field indicate that there are indications of factors influencing the performance of crew catering employees at pt. xyz namely: teamwork and occupational health and safety. pt. xyz is a company engaged in the field of catering services and service crew services at one of the companies at the java sea offshore platform facility. pt. xyz itself has often provided catering services and services for oil and gas companies both offshore and onshore which have good credibility in providing services. can be trusted in providing services. in carrying out its business units, employees are employed in accordance with the positions and fields that have been determined. the number of employees working at the java sea offshore platform facility pt. xyz is as follows: table 1 client satisfaction data on crew catering performance at pt. xyz period 2019 – 2021 no categories score/ rating 2019 2020 2021 satisfie d average not satisfied satisfie d average not satisfied satisfie d average not satisfied % % % % % % % % % a. catering service 88,68 11,32 0,00 82,56 17,44 0,00 75,30 28,57 0,00 b. housekeeping service 87,36 12,64 0,00 85,75 14,25 0,00 82,14 19,05 0,00 15 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 source: primary data 2022 from table 1. above it can be seen that there are employee performance problems at pt. xyz with a decrease in the percentage value of client satisfaction from 2019 to 2021. in the catering service category, in 2019 it received a percentage of 88.68 percent for satisfaction and decreased in 2020 to 82.56 percent or decreased by 6.12 percent, and decreased again in 2021 by 75.30 percent compared to 2020 or decreased by 7.26 percent. in the category of housekeeping services, in 2019 there was a percentage of 87.36 percent for satisfaction and decreased in 2020 to 85.75 percent or decreased by 1.61 percent, and decreased again in 2021 by 82.14 percent compared to 2020 or decreased by 3.61 percent. in the laundry service category, in 2019 it received a percentage of 85.85 percent for satisfaction and decreased in 2020 to 86.00 percent or decreased by 1.85 percent, and decreased again in 2021 by 77.9 percent compared to 2020 or decreased by 8.02 percent. in the complaint handling category, in 2019 it received a percentage of 75.84 percent for satisfaction and decreased in 2020 to 72.97 percent or decreased by 2.87 percent, and decreased again in 2021 by 71.13 percent compared to 2020 or decreased by 1.84 percent. in this case the researcher conducted interviews with pt. xyz's catering crew as a pre-survey to get the right variables to be analyzed as the main factors that can affect the performance of employees. several variables were presented in the pre-survey including compensation, hr development, occupational safety and health, teamwork, organizational culture and emotional intelligence. the following is the data obtained from the interview results: table 2 recapitulation of pre-survey results of pt. xyz variable resp ond end perce ntag e compensation 12 40 % hr development 2 6,7 % occupational health and safety 7 23,3 % teamwork 9 30 % organizational culture 0 0 % emotional intelligence 0 0 % source: primary data 2022 based on the results from table 2 above, the highest percentage is in the compensation variable with a value of 40 percent with a total of 12 respondents. the second position with a percentage value of 30 percent is in the teamwork variable with a c. laundry service 85,85 14,15 0,00 86,00 14,00 0,00 77,98 19,05 0,00 e. handling of complaints 75,84 24,16 0,00 72,97 27,03 0,00 71,13 28,57 0,00 16 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 total of 9 respondents. in the third position is the variable occupational safety and health with a percentage value of 23.3 percent with a total of 7 respondents. from these results the researchers took the three highest variables that affected the performance of the pt. xyz catering crew including compensation, teamwork and occupational safety and health. based on the phenomena of the three variables of compensation, teamwork and occupational safety and health, the authors are interested in conducting research on the effect of teamwork, occupational safety and health on employee performance with compensation as a moderating variable in crew catering pt. xyz at the java sea offshore platform facility. the above concerns the decline in performance caused by the discovery of many cases of exposure to covid-19 in crew catering so that it has an impact on performance. this can be used as a parameter for a decrease in employee performance because there is a decrease in the percentage from year to year covering catering services, housekeeping services, laundry services and complaint handling. so that researchers are interested in conducting research on the factors causing the decline in employee performance at pt. xyz. literature review teamwork teamwork according to lawasi and triatmanto (2017) is a way that is considered very capable of being able to unite all employees in the company in carrying out their duties and obligations in order to achieve company goals properly. meanwhile, according to lussier and achua (2015) define teamwork as a unit consisting of two or more with skilled abilities that complement each other and have a commitment to expectations and goals, for which each employee is responsible for himself. priscilla & santika (2019) stated that teamwork is very important to improve the quality of performance and avoid misunderstandings that can arise between employees and managers. moreover, teamwork should be practiced on the side adapted to the company. a team is a group of skill-based people who work together and complement each other to achieve the same goal (hanafi, 2016). the work team forms coordination, so that they are able to make appropriate and effective contributions to organizations and companies (silvani & triatmanto, 2017). the idea put forward by pandelaki (2018) is that teamwork is carried out by several or a group of employees who both have strategies and goals to achieve organizational goals. kelemba et al., (2017) show that through teamwork, employees in an organization can share a lot in terms of knowledge and experience. teamwork is the activity of more than one person in an organization according to wulandari et al., (2020). in addition, adil & hamid (2020) said that teamwork is an opportunity for employees to share their best ideas. teamwork can be interpreted as an attitude in which employees try to compete fairly through experience and problem solving according to their expertise, widiyanti et al., (2017). according to hamiruddin et al., (2019: 142) teamwork is a combination of individuals working together to achieve the same goals, and these goals are sometimes easier to achieve by working together than individually. teams work very well in solving problems because working in teams makes it easier for members to deal with problems. according to hamiruddin et al., (2019: 142) there are 4 indicators in teamwork, namely: 1. focus on 17 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 team goals, 2. motivate each other in completing tasks, 3. establish cooperation among team members, 4. coordination in the process of completing tasks . occupational safety and health (k3) in an organization there are several aspects of employee protection, one of which is safety. employee protection aims to make employees feel safe in their daily work in order to increase company productivity. employees in an organization need to be protected from the problems that are around them and within themselves. these issues can overwhelm or affect the employees themselves and their job performance. according to kasmir (2018: 266) occupational health is an effort to keep employees healthy while working. the purpose of this definition is not to let factors in the working environment cause employees to become sick or unhealthy to work. sutrisno in abu nandir (2017: 13) states that work safety is all aspects of work safety starting from what the materials and work equipment are, how the processing methods are, the workplace and the environment, and how the employees themselves do their work. sopiah and etta mamang (2018: 324) health is the condition of workers who are free from mental and mental disorders due to the influence of work and environment interactions; occupational safety is a state of being safe and protected from pain and claiming to be in good health when carrying out work, both when using tools, materials, machines, processing, packaging technology, storage, maintenance and safety in the workplace and work environment. according to kasmir (2018), several indicators affect occupational safety and health, namely: 1. working conditions, 2. health services, 3. work environment. compensation the provision of remuneration for employees who work has been determined and known before the employee starts his work, so that the employee definitely and clearly knows the amount of compensation he will receive. furthermore, the company seeks to meet the needs of employees so that job satisfaction increases. therefore, compensation is important for company employees as sellers of labor (mind and physical). according to badriyah (2015: 164) compensation is a form of providing direct and indirect remuneration, which can be in the form of goods or money to employees as compensation provided by employees to the company. according to hasibuan (2017: 119) compensation is income in the form of money, direct or indirect goods received by employees after performing their work as a reward for services provided by employees to the company. according to marwansyah (2016: 269) compensation is a reward or award given to employees directly or indirectly, financially or non-financially in a fair and proper manner, as a form of remuneration for achieving company goals. following are some indicators to measure compensation according to badriyah (2015: 164) are: 1. salary/wages, 2. incentives, 3. bonuses, 4. allowances, 5. facilities, 6. insurance. performance etymologically, performance comes from the word performance. according to mangkunegara (2017), the word performance comes from the word actual performance or job performance (achievement achieved by an employee or called work performance) which can be interpreted as the result or output of an employee's work which is assessed both in quality and quantity achieved by an employee in carry out their duties and 18 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 obligations. according to sandy (2015: 11), performance is a manifestation achieved by employees while carrying out the assigned tasks. another understanding according to sutrisno (2016: 151) performance or work performance is a work product that has been achieved by someone based on their work behavior in carrying out their work. the success or failure of achieving tasks in an organization is closely related to the performance of its employees, and the achievement of organizational performance must be considered so that the company can be effective in achieving the targets and goals that have been set. according to mankunegara (2016: 9) he argues that the performance of an employee is the result of the quality and quantity of individual work completed by the employee in carrying out tasks in accordance with the responsibilities given. according to robbin (2016: 260) in nur aziz (2022: 169) performance is the result of the achievement of employees in carrying out their work according to certain criteria that apply in the company for a job. according to robbins (2016: 260), performance indicators are a measure of the extent to which employees achieve their best performance. the indicators to measure employee performance are: (1) quality of work; (2) quantity; (3) timeliness; (4) effectiveness; (5) independence. hypothesis development the effect of teamwork (x1) on performance (y) companies that have employees with good teamwork will affect the company's climate in carrying out its business activities. suppress horizontal and vertical conflicts so as to create a good work environment. with teamwork work will be completed more easily and quickly, so that the targets given will be achieved. research conducted states that teamwork has a positive and significant effect on performance (annisa ayu dira et al., 2020). thus, our hypothesis is as follows: h1: the better the teamwork (x1), the better the performance (y) effect of occupational safety and health (x2) on performance (y) companies that have good occupational health and safety (k3) will affect employees at work, because employees feel cared for by the company and will feel comfortable at work. comfortable at work will have a direct impact on employee performance. research that has been conducted shows that occupational health and safety (k3) has a positive and significant effect on performance (tatit diansari et al., 2019). thus, our hypothesis is as follows: h2: the better the occupational safety and health (x2), the better the performance (y) the effect of teamwork (x1) on performance (y) with compensation (z) as a moderating variable in carrying out its business units, companies often provide compensation for achievements to their employees. this will spur employees to work harder and form good teamwork so that the company's targets can be achieved and it is possible that the compensation will also be large. the research that has been done shows that compensation has a positive and significant effect on the performance of the moderating variable (joko setyawan et al., 2021). thus, our hypothesis is as follows: 19 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 h3: the better the teamwork (x1), the better the performance (y) which is influenced by compensation (z). the effect of occupational health and safety (x3) on performance (y) with compensation (z) as a moderating variable by maintaining occupational safety and health (k3) it will provide positive things for employees and the company, because by maintaining this, the company's assets are well maintained and no one is harmed either by employees or by the company. by maintaining occupational safety and health (k3) companies usually provide compensation as a way to improve employee performance. research that has been conducted shows that compensation has a positive and significant effect on performance (nurmalisa dwinati et al., 2019). thus, our hypothesis is as follows: h4: the better the occupational safety and health (x2), the better the performance (y) which is influenced by compensation (z) conceptual framework figure 2. research conceptual model source: processed in research, 2022 research method in this study, the authors used a quantitative theory approach to explain how to determine the relationship between variables. the term quantitative refers to methods based on data users, processes, hypotheses, fieldwork, data analysis, and data conclusions with the aim of improving aspects of measurement, calculation, formulas and certainty of numerical data. in this quantitative method the sample collection technique is carried out arbitrarily, using research instruments, and the information analyzed is quantitative or statistical in nature with the aim of testing the hypotheses that have been set. the research took the number of existing samples by random sampling method, namely a sample of 90 respondents taken from a random population group assisted by microsoft excel software, then processed using the smart pls ver 3.2.9 application. the data collection method used uses 2 methods including questionnaires or questionnaires via google form and conducting direct interviews. questionnaire is a type of process that is formed in a random way to get 20 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 many responses, and is usually used as the most successful alternative. the measurement uses an ordinal scale using a range of values from 1 to 10. the value of 1 indicates the answer strongly disagrees and the number 10 indicates the answer strongly agrees. gambar 3. ordinal scale results and discussion 1. outer model analysis results ghozali and latan (2015: 74) argue that an indicator is declared valid if it has a loading factor value > 0.60. in figure 4. below we see the value of the loading factor for the teamwork variable tw1, tw2 has a loading factor value of > 0.6 and is declared valid while tw3, tw4 has a loading factor value of <0.6, namely 0.581 and 0.593 and is declared invalid so that indicator should be removed. for k3 variables k31, k32, k33 have a loading factor value of > 0.6 and are declared valid. compensation variables kp1, kp2, kp3, kp4, kp5, kp6 have a loading factor value of > 0.6 and are declared valid. for performance variables ki1, ki2, ki3, ki4, ki5 have a loading factor value of > 0.6 and are declared valid. figure 4. validity test (initial outer model) source: processed in research, 2022 1 10 strongly disagree strongly agree 21 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 the next stage after removing the loading factor value which is <0.6, then the measurement model is obtained as follows: figure 5. validity test (initial outer model) source: processed in research, 2022 in figure 5 above, we can see the value of the loading factor of the teamwork variable tw1 has a loading factor value of > 0.6 and is stated to be valid, while tw2 has a loading factor value of <0.6, which is 0.555 and is declared invalid, so the indicator must be removed. for k3 variables k31, k32, k33 have a loading factor value of > 0.6 and are declared valid. compensation variables kpsi1, kpsi2, kpsi3, kpsi4, kpsi5, kpsi6 have a loading factor value of > 0.6 and are declared valid. for the performance variables krj1, krj2, krj3, krj4, krj5 have a loading factor value of > 0.6 and are declared valid. the next stage after removing the loading factor value which is <0.6, then the measurement model is obtained as follows: 22 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 figure 6. validity test (final outer model) source: processed in research, 2022 in figure 6. it can be seen that the loading factor value of each variable whose value is <0.6 is no longer there. after all the loading factor values for each variable are > 0.6, meaning that they have met the requirements for the validity test, the test can proceed to the next stage. 1. reliability test (cronbach's alpha value and composite reliability) construct validity and reliability table 3. reliability test (cronbach's alpha and composite reliability values) cronbach' s alpha rho_a reliabilitas komposit rata-rata varians diekstrak (ave) occupational health and safety (x2)compensation(z)performance(y) 1,00 1,00 1,00 1,00 23 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 occupational health and safety x2) 0,63 0,65 0,80 0,58 performance _(y) 0,86 0,87 0,90 0,63 compensation _(z) 0,88 0,89 0,90 0,61 teamwork(x1)compensation (z) performance (y) 1,00 1,00 1,00 1,00 teamwork_(x1) 1,00 1,00 1,00 1,00 source: processed in research, 2022 this reliability test is used to improve the accuracy, consistency, and quality of the instrument in measuring variables. it is said to be valid and reliable if the value of cronbach's alpha and composite reliability > 0.60. from the picture above, croncbach's alpha value for each variable is above 0.60. the ave value is declared valid because it indicates that each variable has a value greater than 0.5. because the value of the composite confidence score is greater than 0.7, this variable can be said to be very reliable and all variables pass the reliability test. coefficient of determination table 4. the coefficient of determination of r2 r square adjusted r square performa nce_(y) 0,71 0,69 source: processed in research, 2022 table 4 shows the r-square value of employee performance of 0.71. the higher the rsquare, the greater the independent variable can explain the dependent variable, so the better the structural equation. the r-square value of 0.71 means that the construct variability of employee performance can be influenced by the teamwork, k3 construct of 71.0 percent and the remaining 29.0 percent is influenced by other factors outside the variables tested. 24 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 hypothesis testing the hypothesis is accepted if the t statistic value > t table (1.960); or p values < 0.05. table 5 hypothesis testing (path coefficients) direct effect sampl e mean t p valu e cut of value evaluation hypotesi s statisti c signifikan teamwork  employe e performa nce 0,47 3,68 0,00 t-stat > 1,96 pvalue <0,05 positiv e significant h1 occupatio nal health and safety  employe e performa nce 0,21 2,10 0,04 t-stat > 1,96 pvalue <0,05 positiv e significant h2 teamwork * compensa tion  employe e performa nce 0,43 4,89 0,00 t-stat > 1,96 pvalue <0,05 positiv e significant h3 occupatio nal health and safety * compensa tion  employe e performa nce 0,09 0,97 0,33 t-stat > 1,96 pvalue <0,05 negativ e not significant h4 hypothesis testing 1 h1: the better the teamwork (x1), the more employee performance (y) the effect of teamwork on employee performance is 0.47. the tstatistics value is 3.68 > 1.967 and the pvalue is 0.00 > 0.05, so the null hypothesis is accepted and the alternative hypothesis is accepted. therefore, we can conclude that h1 is acceptable and that teamwork has a significant positive impact on employee performance. therefore, hypothesis 1 is supported. h2: the better the occupational safety and health (x2), the better the employee's performance (y) the effect of k3 on employee performance is 0.21. the tstatistics value is 2.1 > 1.967 and the pvalue is 0.04 <0.05, so the null hypothesis is accepted and the alternative hypothesis is accepted. therefore h2 is accepted and it can be concluded that occupational safety and health (k3) has a positive and significant effect on employee performance. therefore, hypothesis 2 is supported. h3: the better the teamwork (x1), the more employee performance (y) is influenced by compensation (z) the effect of teamwork on performance moderated by compensation is 0.43. statistical t value. of 4.89 > 1.967 or a pvalue of 0.00 <0.05, so the null hypothesis is accepted and the alternative hypothesis is accepted. therefore h3 is accepted and it can be concluded that compensation is positive and significant as a moderator of the relationship between teamwork and performance. therefore hypothesis 3 is supported. 25 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 h4: the better occupational safety and health (x2), the higher the employee performance (y) which is affected by compensation (z) the effect of occupational safety and health (k3) on performance moderated by compensation is 0.09. tstatistics value. of 0.97 <1.967 or a pvalue of 0.33 > 0.05, so the null hypothesis is rejected and the alternative hypothesis is rejected. therefore h4 is rejected and it can be concluded that compensation is not significant as a moderator of the relationship between k3 and performance. therefore hypothesis 4 is not supported. discussion 1) the effect of teamwork on employee performance at crew catering pt. xyz teamwork (x1) has a positive and significant or very large effect on employee performance (y). this hypothesis is supported statistically by empirical results. the mean sample value of 0.47 has a positive direction with a probability of 0.00 which means it is significant. according to the results of the researcher's analysis, this means that during the period from 2020 to 2021 there was an impact that was felt during the covid-19 pandemic which forced all catering crews to work in teamwork or all catering crews worked together to get good and maximum results for provide services to clients. in a long period of about 2 years, all catering crews were forced to experience this condition, so that the cohesiveness between the crews was well established which resulted in increased employee performance. 2) the effect of k3 on employee performance at pt. xyz crew catering occupational safety and health (x2) has a positive and significant or very large effect on employee performance (y). this hypothesis is supported statistically by empirical results. the mean sample value of 0.21 has a positive direction with a probability of 0.04 which means it is not significant. according to the results of the researcher's analysis, this means that the level of self-awareness about the safety and health of the pt. xyz catering crew is inherent in each person. working in conditions in a remote area requires that every employee has education and self-awareness about occupational health and safety, because in a confined area it will be more difficult for employees if something unexpected happens, such as illness or work accident due to limited facilities such as no transportation, big hospital. the use of proper tools, proper use of ppe (personal protective equipment), as well as very strict hse (health safety and environment) regulations form employees with high integrity towards occupational health and safety resulting in increased employee performance. 3) the effect of teamwork on employee performance is moderated by compensation at crew catering pt. xyz compensation (z) is positive and significant as a moderator of the relationship between teamwork (x1) and performance (y). this hypothesis is supported statistically by empirical results. the mean sample value of 0.43 has a positive direction with a probability of 0.00 which means it is significant. according to the results of the researcher's analysis, compensation given to improve employee performance in order to form good teamwork can be applied during the covid-19 pandemic in the 2020-2021 range because most of them work continuously with good teamwork, and the compensation given makes employees 26 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 feel that they are getting appreciation from the company and feeling cared for so that it has an impact on increased employee performance. 4) the influence of k3 on employee performance which is moderated by compensation at crew catering pt. xyz compensation (z) is negative and not significant as a moderator of the relationship between occupational safety and health (x2) on performance (y). this hypothesis is supported statistically by empirical results. the mean sample value of 0.09 has a negative direction with a probability of 0.33 which means it is not significant. according to the results of the researcher's analysis, the compensation given to improve employee performance in order to form good occupational safety and health does not have a positive and significant impact, because the occupational safety and health (k3) factor for employees who work in remote areas is inherent in the employee. the work environment or work culture offshore is very closely related to occupational safety and health (k3), this can influence why compensation does not have such a big impact that it does not have an impact on employee performance. conclusion the following is a comparison of the statistical analysis between the independent variables and the independent variables: 1) teamwork has a positive and significant influence on employee performance. from these conclusions based on the tstatistics value of 3.68 > 1.967 and the pvalue of 0.00 <0.05. this means that when teamwork increases, employee performance will increase. 2) occupational safety and health have a positive and significant effect on employee performance. from these conclusions based on the tstatistics value of 2.10 > 1.967 and a pvalue of 0.04 <0.05. this means that occupational safety and health increases, then employee performance increases. 3) compensation (z) is positive and significant as a moderator of the relationship between teamwork (x1) and performance (y). from these conclusions based on the value of tstatistics. of 4.89 > 1.967 or a pvalue of 0.00 <0.05. this means that good and significant compensation as a moderator of teamwork relationships increases employee performance. 4) compensation (z) is not significant as a moderator of the relationship between occupational safety and health (x2) on performance (y). from these conclusions based on the value of tstatistics. of 0.09 < 1.967 or a pvalue of 0.33 > 0.05. compensation is not significant as a moderator of the relationship between osh and performance, and has no impact on employee performance what are the efforts to improve employee performance with compensation as a moderation of occupational safety and health that compensation is not only material but also immaterial such as sharing rest time between crews, giving time off when a family is sick, providing good health insurance for families and employees , provision of completeness of work, as well as compensation that is adjusted to the level of existing needs so that the performance of employees will increase. recommendation based on the results of the research above, to further improve employee performance after going through the covid-19 pandemic, several important factors need to 27 pancasasti, r., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 12-29 be considered, including to form better teamwork, team building or gathering is needed to unify the crew's vision and mission and form cohesiveness between crews. review the feasibility of tools, ppe (personal protective equipment) and other supporting work. provision of good and equitable compensation can have a significant impact on pt. xyz's catering crew. so, when compensation is given to form teamwork, occupational safety and health, employee performance will increase. references a.a. anwar prabu mangkunegara. 2017. manajemen sumber daya manusia perusahaan. bandung: remaja rosdakarya. abdillah, w., hartono. 2015. partial least square (pls). yogyakarta: penerbit andi. achua, christopher f., and robert n. lussier.2015. effective leadership. canada: south-western. adil, m. s., & hamid, k. b. a. 2020. effect of teamwork on employee performance in high-tech engineering smes of pakistan: a moderating role of supervisor support. south asian journal of management sciences, 14(1), 122–141. https://doi.org/10.21621/sajms.2020141.07 agustina hanafi, johan gunady ony. 2016. the influence of competence, and teamwork on employees performance of agriculture, crops and horticulture service, south sumatera province. jurnal manajemen & bisnis sriwijaya vol. 14 no.2. arikunto, s. 2013. prosedur penelitian suatu pendekatan praktik. edisi revisi. jakarta: pt. rineka cipta. aviani, lulu., nuvriasari audita. 2022. pengaruh perilaku inovatif, motivasi kerja, dan teamwork terhadap kinerja karyawan yayasan lautan cendikia mulia. jurnal ekonomi dan bisnis, vol. 11 no. 1. aziz, nur., dewanto ignatius joko. 2022. model penilaiann kinerja karyawan dengan personal balanced scorecard (studi kasus universitas tangerang raya). journal. literasisains. id/index.php/mamen. vol. 1 no. 2 (april 2022) 168-177. badriyah, m. 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(2022). the role of work competence, motivation, and work environment in improving employee performance: a study at regional planning, research, and development board tabanan regency. journal of business and behavioural entrepreneurship, 6(1), 69-86. https://doi.org/10.21009/jobbe.006.1.07 mailto:ketutsetiasapta@unmas.ac.id mailto:wayangunantra452@gmail.com 70 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 introduction human resource cannot be replaced by technology especially employee because employee acts as the executor or the one who conducts the company operational system, thus it is necessary to share understanding point related to improving employee performance such as competence, motivation, environment or other aspect to encourage the quality of employee performance. performance itself is quality and quantity result balanced with time management. the organization needs to supervise the employee performance to achieve the target and the performance problem can be solved. working performance is the essential factor to attain the vision so that the executive management should consider it seriously. performance means the work progress achieved by an employee quality and quantity based on his/her responsibility (mangkunegara (2009). further, sedarmayanti (2009) defined performance as a result of people work, an entire management process of organization and performance must be proven by clear and measurable evidence. the problem raised related to working performance showed that the employee only can execute 85% document or work per year which meant quantity work target only reached 97,22% while the average work quality of each employee reached 81%. the target achievement is attached on employee performance target abbreviated skp in indonesian. the assessment of skp will be the parameter of work quantity. wibowo (2007) stated that personal factors such as skill, competence, motivation and commitment will influence the employee performance. there are also some factors such as leadership factor is supported by encouragement, supervision, and support given by the manager and team leader. system factors are shown by facility and work system. contextual / situational factors are shown by work pressure and externalinternal working environment. for this study, competence and environment were used as the influencing factors. the result of interview with 15 employees indicated the lowest working quality in the company due to lack of motivation supported by partner or management. moreover, the untidy and monotonous working environment cause boredom and stress especially in high pressure of work load. azmiu (2019) found that motivation, competence, and environment have positive and significant influence simultaneously towards employee performance at lalabata subdistrict, soppeng regency and partially motivation has dominant influence of employee performance there. government regulation number 46 in 2011 about the assestment of civil servant performance stated that the assestment is conducted periodically to investigate the success and failure of an employee and elicit the strength and weakness of the employee in finishing the work. as regulated in law number 5 of 2014 concerning state civil apparatus (asn) article 75 related to performance appraisal and article 76 (2) states that the “performance appraisal of civil servants is carried out in an objective, measurable, accountable, participatory, and transparent manner”. further, the regional planning, research and development board (bapedalitbang) as one of the work units within the local government of tabanan regency must be able to play a role in achieving the vision and mission of regional development. bapedalitbang carries out the duties and responsibilities as a regional development planner, research and development of 71 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 regional policies that oversee the direction of tabanan regency development so that it runs well, systematically arranged, synergistically, coordinative, participatory, comprehensive and sustainable to fully lead the tabanan regency vision and mission. this agency was established based on the needs, developments, progress and current technological advances of the government sector to assist local governments to develop especially in the government sector. wibowo (2012) states that competence is a person's ability to complete his work through his abilities and skills. competence thus indicates the skills and knowledge that are characterized by professionalism in a particular field as the priority and the most important in that field. besides, compensation is a very important factor in a company. the provision of compensation can be used to motivate employees and motivation is very important in improving employee performance. ulfatin and triwiyanto (2016) emphasized that compensation is an award or reward received by employees given by the organization based on contributions and better productive performance in an organization. additionally, wibowo (2009) stated that competence is an the ability possessed by a person in doing a job based on knowledge and skills and followed by a supportive work attitude for the work carried out. prasetiyo's research (2014) investigated the effect of working competence, motivation and environment on employee performance at pt. indonesian port iii (persero) pati kemas semarang and concluded that compensation, motivation and environment affect employee performance. in addition to the factors mentioned above, employee performance can be improved with work motivation. work motivation can be interpreted as an impulse that arises in a person so that he becomes more enthusiastic to do something in an effort to achieve a goal. success in achieving goals will make him more satisfied and more motivated to do something. the more precise the motivational effort, the higher the productivity of the workforce, as a result, it benefits both the company and the employees. the environment in which employees work will be able to affect their emotions. a comfortable environment will make employees feel more comfortable and productive at work so that the performance shown will optimistically be improved. the work environment in question is not only related to the physical environment but also the non-physical or emotional environment of employees. the working relationship between employees, both vertically and horizontally, is also included in the work environment that must be considered by the company to improve performance optimally. working environment is also important to improve employee performance. working environment is the material and psychological conditions that exist in the organization. according to supardi (2006), working environment is a state around the workplace both physically and non-physically that can give a pleasant, secure, reassuring impression and feel at home or work and so on. in general, employees want a safe and comfortable workplace, moreover it has good facilities, so that employees can work comfortably and can concentrate on doing their job. the performance of the employees determines the performance of the organization. the high and low results of the performance evaluation are theoretically appraised to determine the high and low performance of the organization. assessment of employee performance must be done; unfortunately the assessment of employee performance is still rarely done. for this reason, this research 72 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 was conducted to knowing the level of employee performance, this research was also expected to explain the aspects which support and at the same time hinder employee performance. dewi (2021) in her study found the results that working motivation and competence have no significant effect on employee performance, while working environment and organizational commitment have a significant effect on employee performance. based on data obtained from the planning and evaluation subsection, the results of the quantity of employee work in 2018 reached 88%, in 2019 reached 86%, while in 2020 reached 83% and the target value had been set at 100%. based on these data, it can be stated that the results of the quantity of employee performance have not reached the predetermined target and in 2018 decreased. due to the research gap, this study was conducted by the focus of the influence of competence, motivation and environment on employee performance at bapedalitbang tabanan regency which consisted of six chapters. the first chapter was an introduction and the second chapter focused the result of the literature review and the process of building a hypothesis. the third section elaborated a methodology, discussing the data and methodology, while section four presented the results of the analysis, chapter five discussed the research results and the sixth section was the final section providing recommendations for further practice and study. literature review employee performance performance shows the quality and quantity of work achieved by an employee in carrying out his/her duties commensurate with the responsibilities given to him/her (badrianto & ekhsan, 2019). performance is an achievement or result of work, both quality and quantity achieved by human resources for a period of time in carrying out their work in accordance with their responsibilities. according to nursaid et al., (2020), performance is the result of work in line with organizational goals, such as work quality, work quantity, efficiency, and other effectiveness criteria. employee performance means the work achieved by employees in an organization consistent with the authority and responsibility given by the organization in order to achieve the vision, mission, and goals of the organization, not violating the law and in obedience to morals and ethics. related to the definitions, the indicators concern such as a) work performance conforming to the company standard, b) discipline referring to employee compliance with the company regulations and timeline, c) work effectiveness and efficiency focusing on utilizing all company resources appropriately and maximally, d) responsibilities indicating the readiness of employees to carry out their duties and authorities in accordance with the position they hold, including the readiness to bear all the consequences, e) the level of employee absenteeism focuses on the level of employee attendance during work, both in and out of work, asking for permission not to attend, or not being present without any information which as a whole will greatly affect their performance, f) relationships among partners insisting the ability to maintain harmonious relationships with fellows, leaders and co-workers (sulistyanti, 2010) competence employee competence is a capability to carry out work based on skills and knowledge supported by the attitude required by the job. competence is a familiar term 73 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 in working circumstances. spencer in moeheriono (2014: 5) argues that competence is an ability or characteristic possessed by a person and is related to his effectiveness at work or a causal relationship that becomes a reference in determining an individual's ability in his work. in addition, spencer also emphasized that a person's competence lies within himself and also his personality which can be used as a predictive tool in strengthening his performance to complete the tasks assigned to him. meanwhile, palan (2007) found there are two terms arising from two different streams about the concept of suitability in work. the terms are competency (competence) which is a description of behavior and competence (skills) which is a description of tasks or work results. brian e. becher, mark huslid et al. (sudarmanto, 2009:47) defined competence as knowledge of skills, abilities, or individual personal characteristics that directly affect job performance. competence is mastery of the tasks, skills, attitudes, and appreciation needed to support success. competence, as defined by wibowo (2012), is the ability to perform a job or task based on the skills and knowledge supported by the work attitudes required for the job. competence can also be said to be a skill or ability possessed by a person to enable them to complete their duties and responsibilities during work so that they can work professionally by increasing performance to raise their work standards for the better. competence is a characteristic causing a person to be able to predict his/her surroundings in a job or situation. in addition, the dimensions and indicators are: a) knowledge, b) company, c) ability/skills, d) value and attitude, e) interest. the competencies possessed by human resources will make them able to survive in completing the vision and also the strategies implemented by the company to process its resources more effectively to achieve bigger goals (sutrisno, 2011). those are the dimensions of competence, but the dimensions of competence in this study included knowledge, skills, abilities and employee performance. according to hutapea and thoha (2008:28), human resource competence is the ability and willingness to perform work effectively and efficiently in order to achieve organizational goals. furthermore, hutapea and thoha stated that there are three indicators in the competence of human resources, a) knowledge, b) ability, c) attitude. motivation motivation is a concept used to describe the existence of impulses arising from an individual who ultimately moves or directs the behavior of the individual concerned (tohardi, 2008). meanwhile, mangkunegara (2010) states that to form motivation, it is necessary to have an attitude of employees who are ready to face all work situations in their company. this motivation becomes the impetus that directs employees to improve their ability to achieve company goals, so a positive work attitude is needed that can support them to achieve more optimal results. mangkunegara (2010) also defines work motivation as a process that starts from internal stimulation to meet needs so that they choose to do something to achieve that goal. therefore, leaders must give motivation by satisfying the needs of employees so that employees can devote their abilities, skills and expertise to the work for which they are responsible. in conclusion, work motivation is a condition that encourages or raises the moral of an employee to achieve company goals. the indicators of work motivation according to riduwan (2012:66) are a) selfactualization, b) awards, c) social needs, d) the need of a sense of security, e) physical needs. 74 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 environment the importance of the work environment in the company must be a concern that cannot be separated from management supervision. this is because the work environment will have a great influence on the emotions of employees which can affect their performance so that the company's production can be disrupted. the work environment can be said to be the atmosphere available in the company for employees while working. companies that are able to provide a conducive work environment will make their employees show more optimal results. employees will also feel more comfortable working in a positive environment so that the activities carried out can make the work time provided more efficient and the company's goals can be achieved. nitisemito and nuraini (2013) state that the work environment is everything that is in the place where employees work and can have an influence on employee performance to complete the tasks assigned to them. meanwhile, mardiana (2005) argues that the work environment is where employees do their work in the company. based on some of these definitions, it can be said that the work environment is a place where employees work in the company to complete their tasks optimally which can include work facilities and emotional relationships at work. the indicators of a good working environment are a) lighting in the workplace, b) room temperature, c) humidity in the workplace, d) air circulation, e) mechanical vibration, f) bad odor, g) color, h) decoration, i) music at work, and j) safety. hypothesis development employee competence will greatly determine the ability of employees to complete their work. competent employees will show better work results and can also complete their work more quickly and precisely. this ability will be able to help in improving performance better. aima et al., (2017), wahyudi (2018), lestari et al., (2018), parashakti et al., (2020) found that employee competence was able to improve performance positively and significantly. therefore, the proposed research hypothesis is: h1 : competence has positive influence on performance the motivation of employees will greatly affect the performance of employees in the company. employees with positive motivation will show positive performance in building maximum work results. employees will also become more responsible with their work so they must optimize their performance. turang et al., (2015), muogbo (2013), prayetno & ali (2020), nursaid et al., (2020) found that motivation was able to improve performance positively and significantly. related to those descriptions above the hypothesis created as follows: h2 : motivation has positive influence on performance employee competence in carrying out their duties in the company will foster a good work environment between employees. employees with the same skills can build a more synchronized work environment that will make every employee comfortable. a work environment that is built with competent employees will make the work done better. akbar (2017), chandra & priyono (2015), nursaid et al., (2020), esthi et al., (2020) found that employee competence was able to improve work environment 75 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 h3 h4 h5 h2 positively and significantly. related to those descriptions above the hypothesis created as follows: h3 : competence has positive influence on work environment employees who are motivated at work will show a positive work environment in the company. this motivation is very important because it will affect the willingness of employees during work so that it can affect the environment in which they work. employees who have high motivation during work will make their work environment more positive and can show more optimal results. noorizan et al., (2016), badrianto & ekhsan (2019), rozi & sunarsi (2020), parashakti et al., (2020) found that motivation was able to improve work environtment positively and significantly. related to those descriptions above the hypothesis created as follows: h4 : motivation has positive influence on work environment employee competence will greatly determine the ability of employees to complete their work. this ability will be able to help in improving performance better. badrianto & ekhsan (2019), nursaid et al., (2020), nguyen et al., (2020), chandra & priyono (2015) found that employee competence was able to improve performance positively and significantly. related to those descriptions above the hypothesis created as follows: h5 : work environment has positive influence on performance based on the theory and result of the previous studies, the mindmap of research is seen as the figure below: figure 1. research mindmap research method quantitative method was applied in this research to investigate data and theory by examining hypothesis and observing whether the competence and motivation influence the performance and whether the variables play important role in working competence and environment transformation at government board. data were processed by smartpls. samples were taken from government officers by census, all employees involved in filling out the questionnaire as many as 80 people as the respondents. the sampling technique used a saturated sample or census, which meant a sampling technique by making all employees as respondents (sugiyono, 2018). h1 competence environment performance motivation 76 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 data were collected from direct field observations, and also obtained from local governments. this study divided the questionnaire into four parts. the first section focused on the personal demographic characteristics of the population such as name, age, education. the second part was the information about the business such as the business legality, the length of the business establishment and the type of business field, the status of technology adoption and the status of the business sector for being formal or still informal. the third part was a question about the variables used in this study including social capital, information sharing, technology and technological transformation. a likert scale of 1 and 5 was used to measure (from 1 "strongly disagree" to 5 "strongly agree"). data processing in pls analysis can be done by evaluating structural equation models. this evaluation had two basic evaluations. first, an evaluation of measurement models (external models) to determine the validity and reliability of indicators that measure latent variables. the criteria used to test instrument validity and reliability in this study relate to discriminant validity, convergent validity, and combined reliability. we then evaluated the internal or structural model to examine the relationship between study model construction, significance and r-squared. testing of the internal model in pls analysis was done by bootstrap resampling. results and discussion the overall sample distributed only produced 140 data which met the requirements for testing, and respondents were 80 (57%) in the culinary sector, 30 (21.5%) in the clothing sector, 20 (14%) in the agricultural sector and 12 (7.5%) in other sectors. this proved that the creative industry in demand by entrepreneurs in bali was more in the culinary field. culinary is a product industry that will never die because it was the first time industry established in bali. culinary has become a lifetime industry because it is a basic need of every human being. in rural areas in bali, accommodation for culinary is abundant, as can be seen from the agricultural products of farmers in bedugul village, bali, which can be processed into a variety of productive food preparations. meanwhile, women have a higher desire to be creative industry role as seen from the number of female entrepreneurs which are about 86 (61.4%) and men only 54 (38.5%). women are the backbone of families in bali; many strong women were born in bali and substitute male job seekers, besides women also can play multiple roles when they become entrepreneurs compared to when they work. in addition, young adults are more creative in the industry and more committed to being 75 (54%) compared to millennials 40 (28.5%) or baby boomers 25 (17.8%). because the age is already established by life experience and generally has a family so that it becomes the greater demands to trigger entrepreneurship and remain productive. this is certainly interesting because there will be many young people with businesses and independent youth in denpasar, bali. the findings also showed that in denpasar, the majority respondents (80%) had bachelor degree, 10% were in masters, and 10% finished a high school education level and courses. the group of entrepreneurs with undergraduate education had a higher desire for time freedom. unfortunately, at the high school level, training or courses, there are more limited job vacancies for them and the master level 77 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 wants to get additional financial income. nearly 80% of respondents filled out that they had never been familiar with technology and it was not optimal due to the limited knowledge and they were from an 80% informal sector with a business span between 1-2 years. conversion of validity with reflective indicators can be seen from the correlation between indicator value and external loading variables. a score > ave 0.50 or more indicated the model was good and all constructs used in this study had adequate discriminant validity (). likewise, discriminant validity was used to assess the validity of the variables from the average variance extracted (ave) value. the model was said to be good if the ave of each variable was bigger than 0.50. in addition to the validity test, a variable reliability test was also carried out which was measured by two criteria, composite reliability and cronbach's alpha from the indicator block that measured the variable. cronbach's alpha value was required above 0.60 and the significance at the 5%-test (t-statistical value > 1.96 or p-value <0.5). the composite reliability values (cr) of each construct were all expected to be more than 0.7 to meet the construct reliability requirements. measurements showed that all indicators were valid and feasible to be used for analysis in the structural model (inner model). the result of the validity and reliability of the questionnaire was shown in table 1 below: table 1 validity examination recap and research instrument reliability n o v ariable s tatemen t validity reliability c oeficient correlat ion s tatus a lpha cron bach s tatus 1 c ompetenc e (x1) x 1.1 x 1.2 x 1.3 0 ,889 0 ,873 0 ,920 v alid v alid v alid 0 ,862 r eliable 2 m otivation (x2) x 2.1 x 2.2 x 2.3 x 2.4 x 2.5 0 ,919 0 ,884 0 ,896 0 ,896 0 ,787 v alid v alid v alid v alid v alid 0 ,822 r eliable 3 e nvironme nt ( x3) x 3.1 x 3.2 x 3.3 x 3.4 x 3.5 0 ,822 0 ,870 0 ,830 0 ,773 0 ,860 v alid v alid v alid v alid v alid 0 ,786 r eliable 78 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 x 3.5 x 3.5 x 3.5 x 3.5 x 3.5 0 ,850 0 ,824 0 .888 0 ,843 0 ,900 v alid v alid v alid v alid v alid 4 pe rformance (y) y 1 y 2 y 3 y 4 y 5 y 6 0 ,885 0 ,863 0 ,886 0 ,867 0 ,847 0 ,794 v alid v alid v alid v alid v alid v alid 0 ,806 r eliable source: processed data, 2022 tabel 5.1 showed the four indicators measuring the competence variable (x1) had more than 0,3 & 0.6 validity and reliabiliy; moreover, the outer loading value was bigger than 0.70 and t-statistic was higher than 1.96. it meant knowledge (x1.1), skills (x1.2), attitude (x1.3) were the valid indicator to measure competence variable (x1). besides, attitude (x1.3) was the strongest indicator of the competence variable (x1) because it had the biggest outer loading value, 0,913. from the result of motivation variable (x2) showed that self-actualization (x2.1); award (x2.2); social need (x2.3); the need of sense of security (x2.4); physical need (x2.5) had the bigger outer loading value than 0.50 and t-statistic was more than 1.96. meanwhile, self-actualization (x2.1) was the strongest indicator of work motivation (x2) with outer loading value of 0,912. in the result of environment examination (y1), there were ten indicators had outer loading value more than 0.70 and t-statistic was more than 1.96. this result showed lighting in the workplace (y1.1), room temperature (y1.2), humidity in the workplace (y1.3), air circulation (y1.4), mechanical vibration (y1.5), bad odor (y1.6), color (y1.7), decoration (y1.8), music at work (y1.9), safety (y1.10) were the valid indicator of measuring environment variable (y1) and room temperature (y1.2) was the strongest indicator of the satisfaction (y1) with outer loading value of 0,893. the result of performance examination (y2) showed all indicators had outer loading more than 0.70 and t-statistic was more than 1.96. it proved that quantity (y2.1), quality (y2.2), punctuality (y2.3), presence (y2.4), team work (y2.5), and responsibility (y2.6) were valid indicator in measuring employee performance (y2). quantity (y2.1) was the strongest indicator representing employee performance (y2) with outer loading value of 0.902. further, the reliability of the instrument in this study referred to the following examinations: discriminant validity: the recommended ave score was more than 0.50 as shown by the table below: 79 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 table 5.2 discriminant validity examination v ariable a ve √ ave correlation x 1 x 2 y 1 y 2 c ompeten ce (x1) 0 ,798 0 ,836 1 000 m otivation (x2) 0 ,769 0 ,843 0 ,530 1 000 e nvironm ent (y1) 0 ,715 0 ,837 0 ,682 0 ,596 1 000 p erforma nce (y2) 0 ,737 0 ,834 0 ,494 0 ,715 0 ,754 1 000 source: processed data, 2022 based on the result of discriminant validity (tabel 5.8), it showed that ave score was bigger than 0.50, and the four latent variables had square root of average variance extracted (√ave) score bigger than the other coefficient and correaltion variables. in conclusion, the discriminant validity was good. composite reliability aimed at evaluating the the value of reliability between the indicator blocks of the constructs that form it. the results of the composite reliability assessment in the measurement model (table 5.9) showed that the composite reliability value of the four latent variables was above 0.70, so that the indicator block was declared to be reliable in measuring the variable. cronbach alpha: the reliability test with high composite reliability can be strengthened by using the cronbach alpha value. a variable can be declared reliable or fulfills cronbach alpha if it had a cronbach alpha value > 0.6 (simamora, 2004). the results of the cronbach alpha assessment in the measurement model (table 5.9) showed that the cronbach alpha value of the four latent variables was > 0.6, so that the indicator block was declared reliable in measuring the variable. table 5.3 reability examination recap variable composite reliability cronbach alpha competence (x1) 0,922 0,874 motivation (x2) 0,943 0,924 environment (y1) 0,962 0,956 performance (y2) 0,944 0,929 source: processed data, 2022 80 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 based on the evaluation of convergent, discriminant validity of each indicators and composite reliability of gained block indicator, it can be concluded that each indicator of latent variable was valid and reliable. the next step was the analysis of inner model to investigate goodness of fit model in this research. structural model evaluation (inner model) after evaluating the measurement, the next step was evaluating the structural model by viewing r-square as the examination of goodness-fit model (to observe the value of exogenous variable together with endogenous variable). then, to investigate the significant influence (based on the hypothesis) is executed by coefficient parameter and significant value of t statistics. structural model of this research illustrated as follows: figure 2. inner model (structural model) structural model was evaluated by focusing on q2 predictive relevance model which measures the positivity of observation value produced by q2 based on coefficient determination of all dependent variables. q2 has range value 0 < q2 < 1, the closer score into range number 1, the better model can be. there are two endogenous (dependent) variables in structural model, they are organization commitment (y1) and work performance (y2), thus the two determination coefficient (r2) can be calculated and become the parameter of q2 predictive relevance model as shown in the tabel 5.4. table 5.4 structural model evaluation (inner model) structural model dependent variable q-square 1 environment (y1) 0,373 2 performance (y2) 0,484 𝑄2 = 1 − (1 − 𝑅12)(1 − 𝑅22) … . (1 − 𝑅𝑝2) 𝑄2 = 1 − (1 − 0,3732)(1 − 0,4842) 𝑄2 = 1 − (1 − 0,139)(1 − 0,234) 𝑄2 = 1 − (0,868)(0,766) = 0,336 81 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 source: processed data, 2022 the table showed q2 for y1 was 0,373. therefore, q 2 = 0,373 > 0, which meant x1 and x2 had relevancy for y1. if q 2 = 0,373 was higher than 0,35, it had strong prediction relevancy. meanwhile, q2 for y2 was 0,484. therefore, q 2 = 0,484 > 0, which meant x1, x2 and y1 had prediction relevancy for y2. if q 2 = 0,484 was higher than 0,35, it had strong prediction relevancy. the result of bootstrapping examination of pls analysis (figure 2) is described in table 5. figure 3. pls analysis table 5 the result of direct influence hypothesis examination n o variable connection co efficient line p values s tatus 1 competence (x1)  performance (y2) 0,139 0 ,202 i nsignific ant 2 motivation (x2)  performance (y2) 0,4 38 0 ,000 si gnificant 3 competence (x1)  envrionment (y1) 0,5 09 0 ,000 si gnificant 4 motivation (x2)  environment (y1) 0,3 26 0 ,000 si gnificant 5 envrionment (y1)  performance (y2) 0,5 87 0 ,000 si gnificant source: processed data, 2022 the negative coefficient means it has negative influence while positive coefficient means it has positive influence. if t statistics < 1,960 and p-value > 0,05 means insignificant, t statistics > 1,960 and p-value < 0,05 means significant. the explanation of table 3 related to the result of hypothesis 1 – 5 examinations described as follows: 82 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 1) competence (x1) has negative influence and insignificant towards performance (y2). the result showed negative coefficient line was -0,139 with p values = 0,202 (p values > 0,05), and meant hypothesis-3 (h3) : competence influences positively and significantly towards performance was not acceptable. this result means the better employee competence at regional planning, research, and development of tabanan regency, the worse employee performance in conducting the work. 2) motivation (x2) has significant influence towards performance (y2). the result showed the coefficient line was 0,438 with p values = 0,000 (p values < 0,05), and meant hypothesis-4 (h4) : motivation influences positively towards performance and improves the working performance. 3) competence (x1) has positive and significant influence towards environment (y1). the result showed positive value of coefficient line 0,509 with p values = 0,000 (p values < 0,05), and meant hypothesis-1 (h1) : competence has positive and significant influence towards environment. the better competence the better environment improved. 4) motivation (x2) has positive and significant influence towards environment (y1). the result showed positive coefficient line was 0,326 with p values = 0,000 (p values < 0,05) and meant hypothesis-2 (h2) : empirically motivation has positive and significant influence towards environment. the motivated employee will be able to build good working environment. 5) environment (y1) has positive and significant influence towards performance (y2). the result showed positive coefficient line was 0,587 with p values = 0,000 (p values < 0,05), and meant hypothesis-5 (h5) : working environment has positive and significant influence towards performance. table 6 direct, indirect, and total impacts n o. variabl e connection di rect impact ind irect impact to tal impact 1 compet ence (x1) → performance (y2) 0,139s 0,0 94s (0,160*0,5 87) 0, 045s 2 motivat ion (x2) → performance (y2) 0, 438s 0,3 70s (0,630*0,5 87) 0, 808s 3 compet ence (x1) → environment (y1) 0, 509s 0, 509s 4 motivat ion (x2) → environment (y1) 0, 326s 0, 326s 5 environ ment (y1) → performance (y2) 0, 587s 0, 587s 83 sapta, i.k.s, et.al. (2022). journal of business and behavioural entrepreneurship, 6(1), 69-86 source: processed data, 2022 motivation can improve the performance well and indirectly influence working satisfaction bigger than direct influence of motivation to the performance itself. moreover, direct influence is not truly significant which means the organization satisfaction is getting better although the employee does not have a good motivation. the clear illustration attached in the diagram below: figure 4. analysis result path chart conclusion competence has no effect on employee performance; the rise and fall of employee competence does not necessarily increase or decrease employee performance. work motivation has a positive and significant effect on employee performance. as a result, the higher motivation of employees in carrying out their work, the more they will be able to improve their performance. employee competence has a positive and significant effect on the employee's working environment. in other words, the higher competence of the employees, the better working environment conditions will be. the greater the level of their ability to complete their tasks, the level of difficulty also decreases and it can lead to a good environment. work motivation has a positive and significant effect on working environment. these results indicate that the more motivated employees are in carrying out their work, they are able to directly improve the working environment towards the organization which has an effect on employee performance. moreover, a good environment for the organization will improve employee performance in carrying out their duties and work. the findings of this study indicate that working environment of employees in carrying out work improved the performance due to wholeheartedly working performance and the employees realized about taking part in the work, thus it can affect the performance of the organization itself. meanwhile, good competence here meant the quality of building good working environment as positive and significant as the working motivation. taking into account, condusive working environment encourage employee performance in carrying out the work. the improvement of working motivation has environment (y1) performance (y2) 0,326s 0,438s [0,808 s] 0,509s -0,139s [0,045 s] motivation (x2) competence (x1) 0,587 s 84 sapta, i.k.s, et.al. 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(2018). the influence of emotional intelligence, competence and work environment on teacher performance of smp kemala bhayangkari jakarta. jurnal of reflection: economic, accounting, management and bussines, 1(2), 211–220. wibowo, 2014, manajemen kinerja, edisi keempat, penerbit pt raja grafindo persada jakarta. 59 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 gender roles against opportunities for entrepreneurship (case studies of students at the university of mh thamrin) khoirul umam faculty of education and social sciences, university indraprasta pgri khoirulumam77@yahoo.com abstract micro, small and medium business activities have a significant role in promoting the economy because this sector has been tested to have resistance to the economic crisis. micro, small and medium business provides ample employment opportunities that can improve people’s welfare. but the facts above are not as easy as micro, small and medium business also has some problems, where small businesses often face natural examinations with various difficulties, such as capital constraints, human resources, changing government policies, business locations, competition, technological development, etc, it is above the same set of money with entrepreneur. being a successful entrepreneur is not easy to manifest, many things that need to be studied to be able to open the horizon, not only with experience but also must be equipped with expertise, hard work without tenancy will be empty and include resistant to be difficult temptations in business activity. surely the above should have tricks or tips so that the goal in entrepreneurship to be successful. the above matter, of course, has an influence on others that want to advance in entrepreneurship certainly. students are the embryo that has a good potential for realizing entrepreneurial activities. successful entrepreneurial tips become the deciding factor in motivating students in entrepreneurship. sample case studies have been conducted at muhammad husni thamrin university keywords : entrepreneur, tips, entrepreneurship, micro small and medium business, introduction in the last five years, small businesses have received enormous attention. they had a very high survival power and proved able to cope with unemployment and a significant role in the economic development. data from the central bureau of statistics (bps) in 2012 concerning smes, the number of smes 56.5 million with the growth 2.41%, while the number of sme’s workers is 107.6 million with the growth 5.83%. sme’s provide gdp contribution around 1,504 billion with the growth of gdp contribution 9.90%. in addition, the value of sme export is 208 billion with the growth of export value of sme’s 11% micro-businesses and small businesses have a high survival power because they grow naturally. like the tree in the forest, its roots plunging deep into the ground and its trunk firmly rising skyward. although the business is overcrowded , these trees take root and co-exist with the surrounding ecosystem. they give each other life small businesses also face various problems, such as capital constraints, human resources, changing government attitudes, business locations, competition, technological developments, and so on.from these obstacles, step by step is run and traversed so that all obstacles can be passed and success is obtained; this is the part of the success of entrepreneurs. 60 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 table 1. the development of msme from bps data no indicator unit 2012 1 number of msmes unit 56 534 592 2 growth of msmes percent 2.41 3 number of sme’s workers person 107 657 509 4 growth of msme workers percent 5.83 5 msme gdp donation (constant price) rp.billion 1 504 928.20 6 growth contribution of sme’s gdp percent 9.90 7 export value of sme’s rp.billion 208 067.00 8 sme’s export value growth percent 11.00 source: central bureau of statistics (2016) framework for thinking and hypotheses gender is one of the determinants of the opportunities for being the entrepreneurship. in this study, it will examine which gender (male or female) has more significant opportunities for being the entrepreneur. the respondents are the students at m h thamrin university which already learn and have knowledge of successful entrepreneurship. the research hypotheses conducted on dependent and independent variables are as follows: h 0 : there is no difference in entrepreneurship opportunities between men and women h 1 : there is a difference in the opportunities for entrepreneurship between men and women literature review entrepreneurship the entrepreneurship, according to robert d. hisrich (2008: 10), is the process of creating something new at the value of the time used and effort required. it has some risk including financial, physical, and social risks, but it will generate monetary rewards generated, as well as personal satisfaction and freedom feeling in conducting business. principles and purposes of sme’s empowerment entrepreneurs must understand the principles and purposes of sme’s empowerment, which will assist in the entrepreneurial process so that there are no obstacles in achieving a goal, according to leonardus saiman (2014: 7-9) successful sme’s entrepreneurs rhenald kasali's opinion (2012: 17-22), the tips of a businessman who can be taken empirically are: the first, any attempt always cope with the changes that are evolutionary and revolutionary. what is often feared is a ridiculous change because it often happens suddenly. in fact, it is the revolutionary change that often opens our eyes. all entrepreneurs are afraid of revolutionary changes, that is, changes that are progressing little by little because they are not realized. the change happens from day to day, suddenly we find ourselves, our efforts, our lives, already lagging far behind for not adjusting. 61 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 according to hendro (2011: 28-29), there are several factors that stimulate the spirit of entrepreneurship , namely: a) product evolution, product change will give rise to changing needs that create a new opportunity. b) evolution of science, science change will inspire new products and so on. c) changes lifestyle, tastes, and hobbies, lifestyle changes will give rise to the desire for different products.d) technology changes, the development of technology and increasingly sophisticated technology will create different products, ambiance, and lifestyle.e) cultural change, development of lifestyle, income, tastes, technology and so will change a person’s culture, so this will affect the vi tu han different products in each place. f) changes in government and political structures, political change will affect changes in government structures that lead to changes in regulations, policies, and direction of the economy so that the emergence ofgap needs for past and post-change products. g) intrapreneurship is getting better and stronger will bring passion entrepreneur. this is due to creativity, innovation, tight competition, desire for more recent challenges, organizational change, and more. thus, the organization indirectly develops one’s entrepreneurial spirit . furthermore, justin g. longenecker (2001: 15 & 18) the changing context of small business, presents challenges include: a) growth superstore , if you have a small store and entered by a modern superstore , no need to think long to realize that you are in big trouble. although the changing world of business threatens corporate life and even destroys, smallscale businesses today have to face that challenge exist with an entrepreneurial spirit. many companies survive if they appear to compete.b) expansion of information technology and internet c) the emergence of the global economy. the second, the importance of regeneration. the perpetrators of smes are always relying on the family as the source of business successors. the family in the question, of course, open not only the vertical family relationship between parent and child but also between uncle and niece. this means that the resources for the development of family or small business are insufficient. this is similarly shared by dewi masitah and m. edwar (2013: 13) through quantitative empirical research, that the family role variables and employment practices are simultaneously and partially significant to entrepreneurship ( f test ) and the variables the most influential in entrepreneurial attitudes is the varied practice of entrepreneurial application (test t), so this makes the main point of importance for a) the role of family and entrepreneurship practices should be more intensively emphasized. b) the practice of entrepreneurship gives the most dominant influence and significant effect on entrepreneurial attitude. c) interaction and gain insight into the family's experience of what matters rambat lupiyoadi (2007: 48) things that affect the failure of small business, at least there are four factors that contributed to the failure of a small business. first, many small businesses are managed by poor and inexperienced managers in performing their duties. second, lack of support from related parties. often after the inauguration of the business done many entrepreneurs who get an offer to run a new business, so his attention is not focused on the business. third, the weakness of the control / supervision system, where weak control systems tend to cause losses and excessive use of resources. last is the lack of capital to run its business. according to tulus th tambunan (2002: 81) that the results of bps surveys of entrepreneurs show that the most commonly mentioned problems are limited capital and marketing difficulties. one of the highlights of the survey results is that the limitations of human resources and modern technology are not a severe problem for many entrepreneurs. the third, the importance of entrepreneurship. entrepreneurship is a way of thinking and acting based on the ability to see and seize opportunities. an opportunity can only be caught by those preparing for the field. the people who prepare are the people who work hard and build an extensive relationship. it is undeniable that small businesses in indonesia are experiencing capital constraints. however, this constraint is more due to the way of thinking and incomprehension in dealing with the financial sectors or the owners of capital. to manage the capital, the owner has to record returns 62 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 accountably and discipline. it is this misunderstanding that keeps many small businesses locked into a small, dark business space. in the opinion of kashmir (2006: 94-95), several considerations that is important in obtaining the capital as follows: a) company goal: companies need to consider the purpose of using the loan, whether for capital investment or working capital, whether as a primary capital or just an additional capital, whether for urgent needs or not b) payback period: within a specified period of time the loan must be returned to the creditor (bank). for the company, the investment payback period also needs to be considered, so it does not become the burden of the company and does not interfere with the cash flow of the company. we recommend that the loan period adjusted to the needs of the company.c) the cost incurred: cost factors that must be issued should be considered carefully, such as interest costs, administrative costs, fees and commissions or other fees. this is important because the cost of meruapakan production components that will be the company's burden in determining the selling price and profit. the magnitude of interest rates and other fees charged by banks over financial institutions to customers vary from one to another. it is best to choose a bank that is able to provide the lowest (competitive) cost (interest and another cost) to the company. again the cost will result in increased operating costs and ultimately reduced profits.d) estimated profit:the amount of profit to be gained in the future will need to be considered. profit estimates are derived from the difference in revenues with costs over a given period. a small profit is significant for the refund of business. the fourth, source of temptation. all need a little i ndonesia at the 21st century faces a big temptation from the political sector. they will get an offer to become members or administrators of political parties, participate in competitions to compete for office as public officials, both themselves and their descendants. businesses that have been pioneered very well should not be disturbed by the desire anada to mendaptakan honor in political positions both in the center and in remote areas. the fifth, the nature of the business that forms the cluster . everywhere in the world, business is gathering. like the sale of cassava tape (tape hanging) in purwakarta, fruits toy in cianjur, colenak in lembang market, shoes in cibaduyut, embroidery business in tasik, dodol in garut, know in sumedang, tile in jatiwangi, and so on. outside the country, too. the film industry in america is in hollywood while in india gathered in bollywood .similarly, information technology business, presence in silicon valley, while silk fabric in thailand.this is the same as revealed by mukhammad k. mawardi (2010: 1), the importance of cluster strategy in the development of smes, that with th e cluster system, smes will be able to operate efficiently and gain ease in strengthening the capital from banking and ultimately have high competitiveness, the strategic approach of clusters in boosting the value added smes in the market. the sixth, tenacity. the central capital of a small businessman in addition to honesty and integrity is tenacity and hard work. almost all the entrepreneurs we met had an extreme self-discipline, so they believed they had to wake up faster than the sun and rest after sunset. in some cases, this can be a source for business development, but at the same time can be a barrier to business progress. can be a source of progress, as it arises. but also dap a t become a bottleneck if it makes them engrossed with themselves so as to forget to work with resource development of personnel outside of himself. the seventh, entrepreneurial opportunity: often we face problems that sometimes we feel unable to carry them out. but actually when we review it further contemplated. behind these problems all there is convenience or opportunity. it's just what we have to do, whether we view a situation as a matter to be avoided and shunned or as an opportunity to be pursued and captured. research methods the variables of this research is an excellent opportunity for the students to entrepreneurship as its dependent variable and gender groups as independent variables. the variables were calculated using the analysis of shapiro-wilk data normality distribution, and t (t test ) test to prove the 63 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 hypothesis . the sample used is 30 students by using a simple random sampling method at mh thamrin university. the measurement scale used in the measurement of research variables is using likert scale using data interval assessment for each respondent answer is 1 to 5. interval answer n e respondents will be adjusted by the question posed by data collection methods using questionnaires and documentation analysis. results and discussion this study measured and tested two different gender groups (men and women) using the test statistic formula of two different average. the results of the data from this study aims to prove the different opportunities for entrepreneurship between a boy and girl a total of 30 ririskiky a questionnaire distributed randomly to the students of the university of mh thamrin jakarta. each r esponden filled the questionnaire correctly where the total collected for the questionnaire was 30according to the number of respondents. tabel 2 . shows the characteristics of student respondents mh thamrin university. table 2.characteristics of respondents college student mh thamrin university characteristics of respondents number of respondents male (l) 10 women (p) 2 0 based on the data obtained, the analysis can be presented as follows data normality table 3.normality test using shapiro-wilk tests of normality gender shapiro-wilk statistic df sig. opportunity man .681 10 .001 women .827 20 .002 source: data is processed using spss 21 data normality using shapiro-wilk test can be explained that based on the level of significance of both gender groups. it shows still below the significant level α = 0 , 05 or 5%. so, the data is not distributed normally. thus, the data can not be used as a predictive benchmark for subsequent analysis of this can be seen in table 4. table 4 significance of data normality valuesignificance 5% gender shapiro-wilk value 0.05 man 0.001 women 0.002 source: data processed 64 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 data homogeneity the level of data homogeneity can be seen in table 5 table 5.test of variance / homogeneity of data test of homogeneity of variances opportunity levene statistic df 1 df 2 sig. 1,073 1 28 .309 source: data in if with spss 21 criteria in homogeneity test data are as follows: if the value of sig. <0 , 05 , then the variance of 2 or more groups is not homogen . conversely, if the value of sig. > 0 , 05 , then the variance of 2 or more groups is homogen . so based on these provisions, the test results obtained significance value of 0.309. that is greater than the value of significance α = 0 , 05 or 5%. the conclusion obtained is that the data variance of both gender groups (men and women) is homogen. test t based on the results of the calculations that have been done, it can be presented in table 6: table 6 test t independent sample test t-test for equality of means mean difference std. error difference opportunity t df sig.(2-tailed) 1,500 1.492 equal variances assumed 1,005 28 .323 1,500 1.438 source: data processed with spss 21 based on t ab el 5. above, significant values obtained by sig. (2-tailed) = 0.323 with df = 28 and α = 5%. the results of the data show that t arithmetic <t table, i.e., 1.005 <1.701 . t test results showed that the acceptance of h 0. so the conclusion of the result of t test is there is no difference in the opportunity for entrepreneurship between male and female . conclusion on the basis of the results of research that has been done on the students of mh thamrin university on the opportunity of entrepreneurship, then obtained some conclusions as follows: the prospect of entrepreneur has a bright future in line with the current significant government support for the perpetrators of msmes each student has the same opportunity to have an entrepreneurial opportunity, regardless of the gender factor proven from the result of test t receiving h 0 . the sample data is not normally distributed so that the next research is conducted in a nonparametric research method useful for exploring the broader aspects of the existing research object. 65 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.06 reference dewi masitah and m. edwar, (2013), influence of family role and entrepreneurship practice in shaping entrepreneurship attitude of a student of economic education class of 2009-2010 faculty of economics, universitas negeri surabaya . journal of marketing education , (jptn), vol 1. no.3 hendro, (2011), the basics of entrepreneurship , jakarta, erland justin g. longenecker, carlos w. moore and j. william petty, (2001), entrepreneurship, small business management , jakarta, salemba four kasmir se, mm, (2011) entrepreneurship , jakarta, rajagrafindo pesada leonardus saiman, (2014) entrepreneurship: theory, practice, and cases , issue 2, jakarta, salemba four mukhammad k. mawardi , (2010) , small medium business cluster (ukm) in indonesia , [online] available: http://emkamawardi.blogspot.com/2010/12/kluster-usaha-kecil-menengah-ukmdi.html (march 3, 2016) robert d. hisrich, michael p. peters, dean a. shepherd, (2008), entrepreneurship entrepreneurship , 7th edition , jakarta, salemba four rambat lupiyoadi, (2007), entrepreneurship, form mindset to strategy , jakarta, fe ui rhenald kasali, (2012), cracking entrepreneurs, this is the local crackers with no death , jakarta, gramedia tulus th tambunan, (2002), small and medium enterprises in indonesia, several important issues , jakarta, salemba four. 127 abstract this study further examines the influence of entrepreneurship in the innovation of the non-formal english language education industry (english course) that is oriented towards the achievement of competitive advantage. entrepreneurship is characterized by entrepreneurial leadership, entrepreneurial culture, and an entrepreneurial mindset. this research approach is undertaken with strategic entrepreneurship. the method used is a quantitative method that begins with an explorative study of the english course industry in dki jakarta. the results of the discussion of institutional course data using a franchise system in which entrepreneurial mindset has no significant effect on entrepreneurial leadership and innovation strategy, as well as entrepreneurial culture, has no significant impact on innovation strategy. on the other side, institutional course data using a non-franchise system found that entrepreneurial leadership has no significant effect and is inversely proportional to innovation strategy. this research provides a new repertoire of entrepreneurial fusion and its impact on organizational innovation so that competitive advantage can be achieved. the entrepreneurial typology and innovation of the research results are given in managerial implications as the contribution of this study. keywords: entrepreneurial mindset, entrepreneurial culture, entrepreneurial leadership, innovation strategy, competitive advantage, strategic entrepreneurship, franchise, non-franchise, non-formal english education industry, jakarta received: 25 march 2021; accepted: 4 june 2021 ; publish: june 2021 how to cite: wulandari, r., herlina, m.g. (2021). application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. journal of business and behavioural entrepreneurship, 5(1), 127141. https://doi.org/10.21009/jobbe.005.1.08 application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia respati wulandari bina nusantara university, jakarta indonesia email: respati.wulandari@binus.edu maria grace herlina bina nusantara university, jakarta indonesia email: herlina01@binus.edu https://doi.org/10.21009/jobbe.004.2.01 mailto:respati.wulandari@binus.edu mailto:herlina01@binus.edu 128 introduction to deepen the subjects and improve learning achievement, many students attend non-formal education institute programs, including the english language. not only students of childhood and adolescence, but even the early age was also already included to learn english. those interested in learning english are not only students but also college students, adults and groups of workers. the public interest to learn english is so excellent that it encourages the establishment of no formal english institutions in indonesia in general, as well as in jakarta in particular. asean economic community 2015 states that english defined as the official language of asean countries (aring, 2015). english language skills become the demands of educational programs and the world of work of the future. asean economic community 2015 also recommends english education to be a basic lesson in primary and secondary education to produce highly competitive skills and expertise. the governments of asean countries declare the use of english in the fields of science, education, and business as a means of increasing competitive advantage to meet market demands (hallet, 2005). education was included in the flow of free trade as a service field that can freely penetrate the national market through the boundaries of the country. for that reason, english should be used throughout education from preschool to post-graduate levels to be ready to engage in an inevitable free trade flows. it assumed that higher education in indonesia is still on the long road, good management quality becomes possible to manage the risk of the impact of free trade and create profitable opportunities (wijatno and gunadi, 2014). free trade flows and the asean economic community (aec) drew the attention of indonesian workers. the current requires the mastery of english in the market participants to get involved in the arrangement. that's why the indonesian workers as market participants free trade and the aec are trying really to master the english language so as not to lose in the free market competition. in the global rankings, the english mastery of indonesian workers is at a score of 52.74. it is under malaysia and singapore, above thailand and vietnam, even superior to france (amirio, 2015). non-formal english educational institutions in indonesia have been going on for more than four decades. in that time span, the numbers are up and down. the survivors until now include lbpp lia, bbc, oxford, ilp, and english first (e.f.). these institutions can be categorized into two models, namely, franchise model and non-franchise or independent. they develop themselves and innovate according to the challenges, demands and expectations of market share. the growing market share of english mastery enthusiasts, both among students, as well as workers, is a great opportunity for non-formal english educational institutions. this non-formal educational institution then becomes a lucrative new business field. thus, these non-formal educational institutions became the business of the english course industry. the business of english course industry is influenced by several factors, namely macro pointing global economic condition; a social lifestyle that demands mastery of the english language; technology that provides the ease of learning english independently and encouraging innovation; as well as the role of managers or leaders of the institution itself who must dare to innovate. innovation is a key factor in enhancing competitive advantage in the business of the english course industry. innovation targets three categories, namely product categories, services, and business models (deschamp, 2005). to develop the business of the english course industry, a special study is needed in this business. indeed, it has been presented a lot of research in various business wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 https://doi.org/10.21009/jobbe.004.2.01 129 fields. however, research on the business of the english course industry in the perspective of strategic entrepreneurship is still very limited. this study is very significant and relevant, given the importance and high demands of mastery of english as well as the magnitude of the role of managers or leaders of institutions to innovate. this strategic entrepreneurial perspective study will make a valuable contribution to the development of the english course industry business. strategic entrepreneurship focuses on how "the behavior of seeking opportunity and the behavior of seeking advantage" in order to create wealth. it applied in small and big companies. they need to be entrepreneurial and strategic at the same time. this is mandatory for them to learn how to position the integration of strategic entrepreneurship and cooperative innovation to create wealth (monsen & boss, 2009 in dogan, 2015). this approach is crucial for this industry, considering they face fierce competition to survive and grow in a very dynamic environment. studies on strategic entrepreneurship show that the entrepreneurial spirit of the manager or agency leader determines the development of an industrial business agency. entrepreneurship utilization contributes greatly to the creation of innovation and the achievement of competitive advantage. entrepreneurship has three essential elements, namely entrepreneurial leadership, culture, and mindset (ireland et al., 2003). the study is about the impact of these 3 essential factors in this industry. this research provides two outcomes from our model, which is the result of a franchise and a nonfranchise system. franchise system in the education business is widespread, particularly english courses institution. falbe et al. (1998) once said that franchising is an entrepreneurial activity in creating economic development (salar & salar, 2014). this situation encourages practitioners to recommend franchise business as a method in entrepreneurship (michael, s.c, 2003 in salar & salar, 2014). however, the non-franchise system for english courses business remains the profitable choice for those who run this business. based on the essential elements of entrepreneurship, the following questions are asked for the research: how does the influence of entrepreneurial mindset, culture and leadership towards innovation strategy and competitive advantage for english courses that use the franchise and non-franchise system. a study conducted by ireland et al. (2003) describes strategic entrepreneurship as a way to gain a competitive advantage supported by creativity and innovation. company innovation realized with the ability of managers to manage resources supported by entrepreneurial leadership, entrepreneurial culture, and an entrepreneurial mindset. the strategic entrepreneurial theory is a combination of profit and opportunity seeking. this study of ireland et al. (2003) is a conceptual study, not a result of empirical studies. therefore, there is an opportunity to work on empirical research on the non-formal education industry of english. the variables used in this study were inspired by the study of ireland et al. (2003) with modifications tailored to the industry context under study. research in the realm of strategic entrepreneurship rarely discusses the effects of entrepreneurial factors, namely: entrepreneurial leadership, entrepreneurial culture and entrepreneurial leadership, towards the innovation strategy of the franchise and non-franchise businesses. only a few references can use to answer this research. here are some recommendations that applied, and there are still many research gaps in this research topic: salar & salar (2014) find the advantages and disadvantages of the franchise business. the benefits are brand recognition, lower risk of failure, ready customer portfolio, easy setup and easy to find financial support. the disadvantages are high application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 130 cost, dependency, strict rules, initial and ongoing cost. the researchers examine whether these business characteristics suitable for strategic entrepreneurship approach to creating competitive advantage. research by olav sorensen and jesper b. sørensen (2001) discusses a fast-food chain business strategy in the united states that uses a franchise system and a company-owned unit from the perspective of entrepreneurship owned by franchisees and company-owned unit managers. in this study, english course managers at each institution or centre considered as franchisees. the business owner does not exclusively own the term franchisee, but the manager who manages the business is also considered a franchisee. it is because of the involvement of business management done and known by the manager rather than the owner itself. research by jolene lim and lorelle frazer (2004) discusses the franchisor expects attitudes of the franchisee in running the franchise business. research by dianne h.b welsh et al. (2009) discusses the entrepreneurial traits of the executive franchise and managers, as well as the franchisee and franchisor to determine the different levels of entrepreneurship in each individual. research by olufunmilola (lola) dada, anna watson and david a.kirby (2011) in-depth the relevance of entrepreneurial phenomena to the franchisee context. it is due to the debate that the franchisee is not an entrepreneur. all of these references do not address specifically the importance of entrepreneurial factors like entrepreneurial leadership, culture and mindset in the manager's capability in innovation strategy to obtain a competitive advantage. study in the realm of franchise business rarely discuss the approach of strategic entrepreneurship franchise study tends to discuss entrepreneurship in general. research method this research use both qualitative and quantitative methods. exploration studies are used to deepen the state of business in the english language course industry. interviews with managers were conducted before and after the distribution of questionnaires to answer research questions. questionnaires were distributed to 61 courses in jakarta. we select indonesia capital city, jakarta due of the fierce competition that have been faced by english courses. compare to other big cities in indonesia, jakarta has the largest amount of english courses. there are 30 institutions that use the franchise system and 31 institutions using non-franchise system. the study uses smartpls to process questionnaires that have been filled by managers. the study was conducted from january 2014 to january 2017 started from collecting news articles, articles journal and explorations to several courses. interviews were also conducted with 100 course participants to deepen the research. application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 131 figure 1: research model respondents' profiles. the study conducted in 61 courses. based on gender, there were 32 female managers. thirty-six managers were 36 years old or older. most of the managers, 37 of them, served their courses for 1 to 5 years. most of them, 42 managers, had bachelor degrees. based on this data, they were highly-educated and had sufficient knowledge to become managers. also, their working experience supported their performance. before working as managers, most of them had already worked in each of the institutions, so they understood the state of the business industry. results and discussions the results of outer and inner models. the result of the loading factor on each variable has a minimum value of 0.5, so it is considered sufficient to meet the requirement to be a determining loading factor (hammad et al., 2013). the minimum ave (average variance extracted) value is 0.5. the ave value in this study, which is either processed as a franchise and nonfranchise data, is above 0.5. therefore, this value is valid. the value of composite reliability and cronbach alpha is above 0.6. consequently, it can be concluded that this value is reliable. the value of r-squares, which is a result of overall or combined data, is above 0.33. according to chin's view (1998) in hammad et al. (2013), this r-squares value indicates that the research model is moderate. in other words, the influence of exogenous latent variables (entrepreneurial way of thinking and entrepreneurial culture towards entrepreneurial leadership; entrepreneurial thought, entrepreneurial culture and entrepreneurial leadership towards innovation; innovation towards competitive advantages) has a substantial influence on endogenous latent variables. table 1. results of outer and inner models of english courses institute using franchise system variables ave composite reliability cronbach's α r 2 entrepreneurial mindset 0,570 0,754 0,788 entrepreneurial culture 0,528 0,824 0,767 entrepreneurial leadership 0,770 0,840 0,805 0,498 innovation strategy 0,650 0,857 0,835 0,547 competitive advantage 0,543 0,670 0,597 0,511 application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 132 table 2. results of outer and inner models of english courses institute using non-franchise system figure 2. path coefficient result for franchise system english course figure 3. path coefficient result for non-franchise system english course interesting findings found in the sample institute course with the franchise system. entrepreneurship leadership plays an important role to create innovations that ultimately create a competitive advantage. the entrepreneurial culture also requires entrepreneurial leadership mediation and innovation strategies to create competitive advantages of course institutions with franchise systems. in other words, the role of innovation as a mediation of entrepreneurial culture does not mean without intervention variables ave composite reliability cronbach's α r 2 entrepreneurial mindset 0,672 0,838 0,768 entrepreneurial culture 0,681 0,612 0,604 entrepreneurial leadership 0,563 0,921 0,914 0,752 innovation strategy 0,780 0,953 0,942 0,763 competitive advantage 0,644 0,748 0,679 0,772 application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 133 from entrepreneurial leadership. an analysis of these findings is that the rigid franchise system has created a "box" that limits institutions to develop innovation. for that, it takes entrepreneurial leadership when thinking or applying in the "box". in this study, the so-called franchise is not just a business owner, but also a manager. because managers are always in the course institutions to operate the business every day and who more often make contact with the head office or franchisor. on the contrary, findings on non-franchise samples indicate that innovation strategy mediation becomes important for the entrepreneurial mindset and culture to a competitive advantage. what is interesting is that entrepreneurial leadership does not portray itself as a mediation of the entrepreneurial mindset and culture to innovation strategy that ultimately creates a competitive advantage. in this study, non-formal english educational institutions that use non-franchise systems are course institutions that are branches of head offices and independent course institutions that stand under their brand. the analogy is that these findings further clarify the role of innovation strategy as mediating competitive advantage. when a course institution uses a franchise system, the role of entrepreneurship leadership becomes essential because it negotiates the entrepreneurial mindset and culture in realizing competitive advantage. however, this does not apply to non-franchise courses. as long as managers have an entrepreneurial mindset and culture, innovation strategy will mediate the creation of competitive advantage. what is interesting is that leadership factors are not relevant here. it can interpret that in non-franchise course institutions, the mindset and entrepreneurial culture is spreading within the institution and may be so strong that it does not necessarily require entrepreneurial leadership to create innovation. in contrast, in a franchise system, the rules, sops, and guidelines are so rigid it takes an entrepreneurial leadership that drives the company to create a competitive advantage through innovation. in other words, they are too obedient to the rules, so do not dare to get out of the "box" of the franchise system. the entrepreneurial mindset is positively insignificant to entrepreneurial leadership in the franchise system. however, it is significant in the non-franchise order. the results of non-formal interviews in exploratory studies conducted by researchers on some managers' show that the head office always does control. supervision completed periodically to find out how far the development of business in each franchise or course institution. monitoring by the franchisor tends to discourage managers from giving their opinions about business opportunities. excessive head office controls make managers less able to analyze the uncertainty of the course business in the future. the above is in line with the sorenson and sørensen (2001) studies which suggest that behavior control by franchisees by means of monitoring leads managers to think inflexibly. differences or ideas that are released will result in irregularities on how to lead managers' leadership. research by dada et al. (2011) citing hoy (2008) also supports this statement, namely having a franchise is the antithesis of entrepreneurship as the franchisee follows a business model developed by the franchisor and loses his freedom with entrepreneurship due to franchise agreements or contracts. therefore, the manager's free behavior is judged to inhibit the development of general standards and the transfer of knowledge by the head office. the result is that entrepreneurial mindset behavior has no significant influence on its leadership. according to research by lim and frazer (2004), franchisees choose to join the application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 134 franchise business because they see the benefits of service support provided by the franchisor. this is interesting because the entrepreneurial orientation of managers does not have to be honed or highlighted in terms of leadership. this statement becomes argumentation support on the results of this research in which course institution managers on the franchise system does not need to be skilled in the entrepreneurial mindset. it was also stated in this study that managers should be able to work with predetermined rules, just as employees work with organizational rules and policies. this is consistent with the results of interviews saying that everything is governed by the centre of how to think and act. for the non-franchise system, the entrepreneurial mindset is positively significant to entrepreneurial leadership. according to research by lim and frazer (2004), independent managers who run their businesses have more independence in entrepreneurship than managers who run a franchise business. this research is in line with lim and frazer research. this research revealed that branch office managers bound by the way business operations from head offices, so that entrepreneurial mindset has formed and influence leadership. conversely, managers who run independent businesses must have an entrepreneurial spirit and an innovative mind in developing their institutions internally. entrepreneurial culture is positively significant to entrepreneurial leadership for both the franchise and non-franchise system. interviews with some managers indicate that the entrepreneurial culture contains ideas and creativity devoted to their work as leaders. managers conduct weekly or regular meetings with teams/staff at the course to discuss products, jobs, events and marketing to get more course participants. some managers said that they sometimes do things or new activities that have never been done before by the head office. it is in line with welsh et al. (2009), even though the franchisor exercises strict control, most franchisees still have to commit to several risk-taking and proactive conduct of their business to ensure their business is thriving. burke and posselt (2008) in dada et al. (2011) also said that the franchisee embarked on ideas for innovation as proximity to the customer to provide more benefits to the customer. therefore, as a leader of a course institution, managers need to create ideas for developing a course institution. sorenson and sørensen (2001) argue that the entrepreneurial culture owned by managers and franchisees emphasizes more on exploration. trying to do things that are new and never done before is often done to grow the business. course institution managers also add the role of business owners who provide leeway in administering and managing the management system at the course institution. based on interviews with some managers in non-franchise system, the entrepreneurial culture they apply is to listen to new ideas from teams/staff in pursuit of business opportunities; holding training for teachers and employees regularly; capturing the influence of democratic business owners; staff is given space so that the manager does not regulate it; as well as developing a culture of listening and asking for opinions. besides, business owners and head office provide the freedom to develop their own entrepreneurial culture in each course institution. this situation is supported by the statement of lim and frazer (2004), which says that managers managing an independent business should have technical or operational skills or skills. the entrepreneurial mindset is positively insignificant to innovation strategy. however, it is significant in the non-franchise system. in interviews, some managers in franchise system say that for product innovation application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 135 and business model they are so tied to the rules of the head office. although they have changes that have been designed, these innovations may not necessarily be implemented as a business strategy because of the control of the head office. as an individual who has an entrepreneurial mindset in a state that is always supervised or controlled by the headquarters, managers will ignore his entrepreneurial mindset if he/she feels his innovation is less critical and takes a long time to implement. this long time is consistent with the sorenson and sørensen (2001) research which states that entrepreneurs who run a franchise unit must show greater willingness to invest in innovations that may take a long time to make it happen. it takes a long time. according to research by lim and frazer (2004), the franchisor or head office runs very strict supervision on the franchisee. the manager is always dealing with head office and daily business. this results in a lack of flexibility in innovating. innovation can be done internally or only within the institution. some things are revealed by some managers in non-franchise systems, such as the loss on innovation is not a problem as long as it has tried. the loss is a useful evaluation material for further development. in addition, feedback collection from customers and staff is required. furthermore, it should be oriented to innovation. interviews also found innovations by these managers more on exploitation or incremental/ sustaining innovation, developing existing and existing innovations. the approval process from head offices is faster because it is not too wordy in its implementation. this situation is in line with sorenson & sørensen (2001) remarks that managers in branch offices will direct their attention to improvements from existing activities rather than exploring new resources and discovering new activities. innovations at branch office courses are more internal to the institution itself, such as regular meetings, improvements to payment services, and off-course activities. as with the independent course institution, this institution can run innovations more flexible and adapted to the circumstances of the business environment to meet the needs of course participants. entrepreneurial culture is positively insignificant to innovation strategy. however, it is significant in the non-franchise system. the results of the questionnaire indicate a lack of risk-boosting impetus for teams/staff in reaching the business opportunities of the course and the lack of tolerance for failure of the decision-making opportunities made by the team/staff within the institution in the franchise system. it is also supported by the influence of business owners who are less supportive of risk-taking to innovate. this helps the statement of sorenson & sørensen (2000), managers who run the franchise business have a fear of taking risks because innovation is always synonymous with money capital. indeed, the risk of decision-making on innovation could be reaping success. according to lim and frazer (2004) research, managers managing franchise businesses are more interested in profitable business activities for their units, and managers can decide to reduce the quantity or quality to increase profits in their business. according to interview results, managers tend to benefit their units by focusing on their groups because other centres of the same brand are considered competitors. in an interview with branch offices managers in non-franchise system, the entrepreneurial culture applied is to accept innovative ideas from the team/staff within the institution. before the ideas were applied in the development of innovation, budget calculations have been made so that risks can be minimized. another example is open and free to express opinions. the kinship culture developed within the institution concerned encourages the team/staff to give a maximum contribution in innovating. head application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 136 offices are open with innovation from branches as long as it does not require much financial cost. innovation can be run immediately without waiting for approval from business owners. besides, staff are encouraged and taught to be innovative. these factors make the entrepreneurial culture of managers powerfully influential on the development of internal innovation within the institutions it leads. here, it can be concluded that the entrepreneurial mindset and culture that influences innovation is only limited to the internal institutions of each and more of an exploitative or incremental innovation. explorations or radical innovations such as changing course types or changing existing business systems, though advised, are undermined by branch office managers because of the risks that may threaten the system from headquarters. this situation is the same as stated by sorenson & sørensen (2001), i.e. if the manager is daring to innovate and the result fails, the manager may be subject to sanction by the head office. managers who have a risk-averse tendency prefer to improve existing operations. entrepreneurial leadership is positively significant to innovation strategy in the franchise system. on the contrary, it is negatively insignificant in the non-franchise system. some course institute managers say that their position as manager allows them to innovate to develop a course institution. they are given leeway by business owners to lead and manage institutions. they also revealed that the owner is just an investor. managers manage everything, so manager leadership is at stake in institutional performance. in several interviews, managers often say the importance of entrepreneurial leadership. their position in the franchise chain requires them to provide high performance to the headquarters. therefore, as the leader, they are in charge of maintaining entrepreneurial skills, conveying information openly about innovations that have good prospects with team/staff, pursuing opportunities in developing business courses, questioning dominant logic, such as evaluating agency positions with competitors and conducting new activities. this is in line with the results of sorenson and sørensen (2001) research, which states that franchisees or managers who run a franchise business are more devoted to exploitation as well as managers in company-owned units. here, the difficulty is transferring knowledge among franchise units. this situation occurs in the non-formal english education industry. if the franchisee is different, despite standing in the same brand, it is considered a competitor. welsh et al. (2009) found entrepreneurial leadership factors in managers who run the franchise business are initiator and aggressive. the initiator is initiating, rather than reacting to, and competitive action. energetic is aggressive behaviour, competitive and quick nature to seize new opportunities. based on the interview results, these leadership factors often arise. although the headquarters has limited space for innovation, managers feel they have to do more with the institutions they lead. managers say they have higher entrepreneurial values than business owners because they are dealing with day-to-day business activities, knowing the circumstances and needs in their business environment, and listening to innovative ideas from their team/staff. the results of this study are supported by welsh et al. (2009) which states that managers who manage the franchise business have greater entrepreneurial traits than their business owners so that innovation can be more developed. the results of entrepreneurial leadership that have a strong influence on innovation in the franchise system are supported by bradach (1997) in dada et al. (2011). they state that in order to ensure business sustainability, the franchise system must be able to adapt new opportunities, threats every time, and situations that will involve the application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 137 display of entrepreneurial behavior within local outlets. therefore, managers who manage the franchise business are more familiar with local market conditions than the head office or franchisor (cox & mason, 2007 in dada et al., 2011). this may affect the entrepreneurial behavioral requirements as a result of local market adaptations in franchise outlets. interviews show that although managers in the non-franchise system have an entrepreneurial mindset and culture that influence entrepreneurial leadership and also influence internal innovation, a unique finding is found, that entrepreneurial leadership has no effect on innovation strategy. some managers disclose the following points leading to the absence of entrepreneurial leadership influences on innovation creation, namely internal changes (management and head offices) and external (environmental circumstances) of the business scope; more transformational or autocratic leaders; the head office intervenes so that the entire program is held by the head office; branch offices are only allowed to develop and collaborate to achieve the satisfaction of course participants in order to attract more course participants; budget from head offices is limited so that branch offices are difficult to develop; there are dictatorial managers to ensure smooth business processes and targets are achieved, and managers only follow directions from head office. these make managers feel as leaders who are treated as employees with strict rules from head offices. the impact is that the creative thinking that emerges to innovate and the drive to take risks in implementing new ideas does not work out. managers feel they cannot explore new things because of the limits and direction of the head offices. this is what resulted in applied leadership is not entrepreneurial. leadership is limited to the implementation of the work system from the head office. however, managers can still make small innovations in the internal environment of their institutions, for example: establishing forum sharing, as well as creating marketing activities and outdoor activities for course participants. conversely, managers of independent course institutions are less willing to take risks in investing. managers reveal that innovation always requires a lot of capital. the managers are afraid of failure, so for this new independent course institution, radical innovation has not been done. this result is unique because it is inversely proportional. this happens in the non -formal education industry of english, especially those using non-franchise systems. according to sorenson and sørensen (2001), rewards given to managers prevent them from innovating. because of these circumstances, managers assume that even if the innovations are successful, the success will only benefit the head office. managers will not reap the full benefits of successful innovation. this statement is also expressed by one of the managers who feel that the salary given makes them not enthusiastic in innovating, so it is better to follow the direction and innovation of head offices. monitoring activities conducted by the head office also made him reluctant to innovate. due to attachment to head offices, managers are sometimes worried about their positions that may not be viable for the long term if managers do things that are not approved by the head offices. fulfilling what has been mandated by the head office is considered to increase the chances of promotion. branch offices usually do not have much innovation than franchise (sorenson & sørensen, 2001). this is due to procedures that already exist and applied by the head office to the branch office. exploitation is more emphasized than exploration. exploration conducted by branch offices has a high risk if not successful on local conditions or the environment in which the office operates. therefore, the application of existing rules and innovations tends to take precedence over innovative ideas from managers. application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 138 during interviews, some managers expressed their non-entrepreneurial leadership. it is normal because some of the courses are new and the team/staff needs a lot of direction and firm rules from the boss. it is in line with paul zijlstra's (2014) statement on his research which reveals that not all businesses can implement entrepreneurial leadership. it happens because the company is new, and the team/staff do not yet have a high independent sense of work. in this condition, the manager's leadership style is more autocratic. innovation strategy is positively significant to competitive advantage for both franchise and non-franchise system. these results complement the study of mary m. crossan and marina apaydin (2010) who have not tested innovation areas in all sectors, especially the non-formal education sector. other innovations include opening online courses, working with others to complement and support courses, empower digital media, improve curriculum, open non-english classes, and conduct outdoor course activities. in non-franchise system, an innovation that has been done is a profit-sharing system with teachers; opening a class outside of an already running term; organize programs other than english courses such as school support; collaboration with other parties such as banks, fast food restaurants and modern convenience stores; promotion at each centre; improve facilities and institutional decoration; routinely engage in activities involving course participants and the general public, and open online classes. typology of entrepreneurial leadership, culture, and mindset with innovation strategy in english non-formal english education industry. this study makes typology as a contribution to this study. this typology is composed of two elements. the first element is the application of entrepreneurial leadership skills, culture, and mindset by managers to the non-formal english language education industry. the second element is the innovation created. based on the result of the study on non-formal english education industry on entrepreneurship ability of manager and innovation, the following results are illustrated with the type of sport: figure 4. typology of entrepreneurial leadership, culture, and mindset with innovation strategy in english non-formal english education industry. source: wulandari & mursitama, 2017 application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 139 ice skater type. this sports area is limited to arena or ice skating rings. if interpreted in this study, managers who manage the course institutions have the entrepreneurial leadership, culture, and mindset that is still low so that the innovations created are still very less. it happens to a new and independent course institution. managers are still groping their business and the environment. his or her experience in entrepreneurship is also still not developed. the oarsman type. this sport is not done alone. there is an important figure in it, namely drummers or instructors in the ship. oarsmen follow the rhythm and instructor's instructions in wading through the river. if interpreted in this study, managers are like rowers who must listen and obey directions from the head office. the entrepreneurial leadership, culture, and mindset are owned by managers, but not in a high degree. innovations in course institutions that use franchise systems and branch offices are usually governed by them. managers are heavily controlled by head offices in innovating and making them reluctant to explore more even if there are innovations made, only the internal nature of the institution. parachuter type. this sport tends to extremes. parachuting players love challenges and risks. parachuting expertise can control the parachute with the wind that drives it. in this study, managers of this type have a high degree of entrepreneurial leadership, culture, and mindset, are willing to take risks and like to explore new things to develop institutional innovation. however, his of her creative ideas are sometimes constrained by the rules of the head office or owner (franchisor) so that not all innovative ideas can be realized. constraints that often faced is the head office resistance to make changes to the program or business owners who are less willing to take risks in investing. in this study, the study found managers who have high entrepreneurial behavior with the support of business owners who allow or liberate managers to innovate. innovation can be in the form of conducting marketing activities, cooperating with other parties to support the course program, so that course participants are more interested, changing the room decoration so as not to be boring, making outdoor activities to increase the public's awareness of the identity of this course institution. managers make regular meetings with the team/staff to discuss the course business activities. course institutions that have managers of the type of parachuter have a high performance both in terms of innovation and have more course participants. this type of manager can still innovate, but still controlled by the head office so that for some programs that have been set by the head offices even can not be changed. from the side of head offices, resistance is so strong against ideas and buzz from managers. surfer type. this type of sport is only favoured by people who love challenges, dangers, love to see opportunities, and have the nature of never giving up. the surfer does not have an instructor who has to control where he has to manoeuvre. coaches and supporters give themselves the freedom to conquer the rolling waves. it fits perfectly with the strategic entrepreneurial approach, namely the search for opportunities and excellence. linked to this study, managers have a high degree of entrepreneurial leadership, culture, and mindset. the difference between the three previous types is that managers are not in control of business owners or head offices. managers do have superior qualities in managerial and entrepreneurship and are supported by a business system and support that frees itself to innovate. a good innovation can attract more course participants. not only attract the course participants, but the participants become aroused to finish the level of the course up to the latest standard in the institution of this course. thus, course institutions that have resources and support systems like this will gain a competitive advantage. application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 140 conclusions the research obtained three hypotheses that are not significant in english courses institution using the franchise system, namely: entrepreneurial mindset does have a substantial impact to entrepreneurial leadership and innovation strategy, also entrepreneurial culture to innovation strategy. on the other side, entrepreneurial leadership has a significant effect on innovation strategy. in a non-franchise system, we found out entrepreneurial leadership did not affect line with innovation. managerial implication this study produces practical contributions to managers as well as head offices or franchisors to be more sensitive and open to the development of entrepreneurial behavior within managers. the limitations provided by head offices and business owners can hinder the innovations that actually provide a breakthrough and maybe successful and superior to other competitors. a lot of research in the franchise topic is debating whether the franchisee is an entrepreneur or not. this study shows that entrepreneurial behavior exists in managers. entrepreneurship in this study is divided into three essential variables in managers who have the potential to become leaders that are difficult to imitate by competitors. as stated by kuratko (2007), this leadership process is difficult to understand by competitors. the consequence is that leadership cannot be replicated so that the course institution can create a competitive advantage. for the non-franchise system, the results of the analysis show that these managers have obstacles in fully applicable as a leader or manager. it happens because the head office still holds its leadership control. from interviews with some branch office course managers, an entrepreneurial mindset and entrepreneurial culture have great potential in creating and developing innovations. therefore, the head office needs to review the possibility of its human resources by creating a discussion forum of branch office managers. from the research result of the learning model of english course can be added with life experience learning. the learning model of this program gives more value, that is a life experience for the participants through various activities. by running a life experience program, the course institution not only performs its function for business alone. the program also makes a useful contribution to indonesian youth and employees, namely english fluency and the development of life values that enable students and employees to compete in the global era. simple things like life values, social groups and games in leadership training are an oasis that can be enjoyed by students, college students, and employees as a channel of expression and the originator of innovative ideas in their working groups. this program is exciting to try out by the participants amid the pressures, demands of schools, jobs, and lifestyle in big cities. a holistic life experience innovation program initiated by a manager who has a qualified entrepreneurial leadership, culture, and mindset will create a competitive advantage that competitors can not imitate. thus, the english course institution not only benefits financially but also have human resource assets that can not be imitated by competitors. this combination of strategic entrepreneurship approach application in non-formal english education in particular and other non-formal education, in general, will enhance the asean people competitiveness. the long term impact of the product and service innovation of non-formal education institution will generate competitive, tolerant and broad-minded people. application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 https://doi.org/10.21009/jobbe.004.2.01 141 references amirio, d (2015) "r.i. records third-highest english language proficiency in se asia" 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(2014). w hen is entrepreneurial leadership most effective?. master thesis. university of twente. application of strategic entrepreneurship approach in franchise and non-franchise business: a study in non-formal english education in indonesia. https://doi.org/10.21009/jobbe.005.1.08 wulandari, r., herlina, m.g. journal of business and behavioural entrepreneurship, 5(1), 127-141 http://www.thejakartapost.com/news/2015/01/30/ri-%09records-third-highest-%09english-%09language-proficiency-se-asia.html http://www.thejakartapost.com/news/2015/01/30/ri-%09records-third-highest-%09english-%09language-proficiency-se-asia.html http://www.thejakartapost.com/news/2015/01/30/ri-%09records-third-highest-%09english-%09language-proficiency-se-asia.html http://m.thejakartapost.com/news/2005/01/31/it039s-time-standardize-%09bilingual-education.html http://m.thejakartapost.com/news/2005/01/31/it039s-time-standardize-%09bilingual-education.html http://www.thejakartapost.com/news/2014/09/13/risks-opportunities-indonesian-higher-education-amid-free-trade.html http://www.thejakartapost.com/news/2014/09/13/risks-opportunities-indonesian-higher-education-amid-free-trade.html http://www.thejakartapost.com/news/2014/09/13/risks-opportunities-indonesian-higher-education-amid-free-trade.html https://doi.org/10.21009/jobbe.004.2.01 92 abstract the research in business clusters (bc) system of entrepreneurship development has increased in the recent year. a plethora of research has explored; entrepreneurship and urban growth, the entrepreneurial attitudes on the structure of support for entrepreneurship in an ecosystem, the effect of business clusters on firm performance and more recently, the dimension of agglomeration, institution and environment on business clusters. with the aid of systematic qualitative assessment techniques (sqat), we review 79 business cluster journal articles published over the last 11 years (2010 – 2020) that sought to provide bc antecedent and impact on entrepreneurship and economy growth to provide a point for future research. also, the review provides the geographic distribution, time distribution, underlying drivers of previous research, types and method of data collection used by these bc articles. our findings shed light on the key themes including the evolution of bc, the impact of bc on the economy, application of bcs and the public policy maker roles. furthermore, there is a dearth of bc research in africa, south america and australasia with most bc research are empirical and this represents gaps for future researchers to explore. keywords: business cluster, entrepreneurship, systematic review received: 27 april 2021; accepted: 2 june 2021 ; publish: june 2021 how to cite: mustapha, i.k., zubairu, u.m., & sakariyau, o.b. (2021). business cluster and entrepreneurship growth in nigeria: a systematic review. journal of business and behavioural entrepreneurship, 5(1), 92-108. https://doi.org/10.21009/jobbe.005.1.06 business cluster and entrepreneurship growth in nigeria: a systematic review isiaka kolawole mustapha federal university of technology, minna nigeria email: mikola0507@yahoo.com umaru mustapha zubairu federal university of technology, minna nigeria email: uzubairu@gmail.com olalekan busra sakariyau federal university of technology, minna nigeria email: zaksconsults@gmail.com https://doi.org/10.21009/jobbe.004.2.01 mailto:mikola0507@yahoo.com mailto:uzubairu@gmail.com mailto:zaksconsults@gmail.com 93 introduction the concept of cluster or agglomeration of business is not a new theory and has received global interest in the last few years. the recognition and attention given to the concept of business formation are closely related to small and medium enterprises (smes) and economic growth in a country. the inherent benefits of business cluster formation have manifested in many fields of endeavour including information technology in silicon valley, the automobile in germany, the wristwatch in switzerland and the financial sector on wall street. this assertion explains why other country or group of people are using the initiative of clustering. from a historical point of view, porter (1998) first use the word “clusters” to mean a geographic concentration of interrelated entrepreneur and/or companies in a particular region to foster the development of their trade (sword, 2013). there is no gainsaying that researches on business clusters has been carried out from various perspectives such as, being strongly linked to entrepreneurship development and entrepreneurial skill innovation (bourletidis, 2014; lalzuitluani and ramswamy, 2019). several other studies demonstrate that geographical agglomeration of businesses provides enabling environment for public policy makers and government agencies in terms of formulating sustainable and longer-term policy that is considered to have a positive impact on regional growth (yu et al., 2013; njos and jakobsen, 2016; vernay, et. al., 2018) and it also creates enterprises competitive advantage leading to innovation and growth (rocha, 2015; ferras-hernandez and nylund, 2019). although, there is consensus towards the importance of business clusters for regional and economic growth (xue and liu, 2015; herliana, 2015). however, the reason why businesses in close proximity are not creating the necessary expected benefits or opportunities is still a point of discussion. hence, empirical researches are being carried out on business clusters as it affects – tourism industry (fundeanu, 2015), the fashion industry (ganzaroli and noni, 2017), digital and multimedia industry (adebanjo and roula, 2010; mitra and thorpe, 2010), organization research and development (nishimura and okamuro, 2010). also research on how business clusters can be used to survive any economic crisis and reduce the poverty rate (fowler and keit, 2013; wardhana and heijman, 2017). works of literature on the applicability and public policy on business clusters is still emerging especially in africa and south america. as regards the sustainability of business clusters set up through public initiation, the research gap is clearly shown. thus, there is a need to appropriately investigate the positive relationship between public policy formulation and business cluster concept in recent literature. against the foregoing, this systematic review intends to focus on business clusters and entrepreneurial development, drawing strength from policy initiation and implementation by various institutions and agencies of the nigeria government saddled with such responsibilities. this deliberate action is geared towards assessing the impacts government policies has made thus far on business clusters and entrepreneurial development. the exploratory work will also enable us to segment component of each cluster under discourse. thus, research publications on business clusters in the last ten years (2010 – 2020) were analysed. papers in the review were sourced from seven databases: elsevier, emerald, inderscience, sage, springer, taylor & francis and wiley. these databases were chosen based on the quality of their peer-reviewed paper publication. to achieve the aim of this study, the business clusters concept was analysed with its different dimensions and its relation to other aspects of entrepreneurial development. this mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 https://doi.org/10.21009/jobbe.004.2.01 94 was done by analysing the downloaded papers on the following factors: geographical distribution, time distribution, type of articles (empirical vs. conceptual), theories used, theme and the data collection methods. the systematic review enables us to develop a proper perspective of the previous research and to identify research gaps in business clusters that will set the agenda for future research. this paper is divided into four sections and structured as follows: besides this first section – introduction, the second section discusses the methodology used in conducting this systematic review. the third section presented the findings and proposes agenda for future research based on the research result. the fourth and final section presented an area of discussion on limitations and conclusion. research method this systematic review of bc over the last eleven years (2010 – 2020) is conducted using the systematic quantitative assessment technique (sqat) developed in 2014 by pickering and byrne. a systematic review is said to be “a review using a systematic method to summarize evidence on questions with a detailed and comprehensive plan of study” (tawfik, et al., 2019, p.1). the sqat enable researchers to apply a filtering process in the selection process of peer-reviewed journals publication to maintain a high standard of articles. the technique provides easy analysis, usage and easily replicated systematic review which is a very important component of research of this nature (zubairu, 2019). the basic five steps recommended by sqat in conducting an effective systematic review was described how it was applied in this review is described in table 1. table 1 description of systematic review steps s/n step application in current study define topic business cluster (bc) articles published between 2010 and 2020. framing research questions six research questions were formulated on the topic business cluster: what is the time distribution of business cluster articles? what are the geographical distribution of the articles? what type of business cluster articles were published? (conceptual vs. empirical) what theories were discussed or developed in articles downloaded? what are the themes of article reviewed and major findings? what method of data collection were employed by the researchers? identify key words “business cluster” + “entrepreneurship” identifying relevant publications and search database. seven databases were used: elsevier, emerald, inderscience, sage, springer, taylor & francis, and wiley. “all in title” and “anywhere in the article” search criteria. “business cluster” + “entrepreneur” summarize the result and interpret the findings abstract of the downloaded articles were read to understand their findings on business clusters findings were presented and research gap analysed. also, agenda for future research was presented. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 95 a total of 79 peer-reviewed articles on business clusters were selected from seven databases. literature reviews, books chapters and conference papers were not included in this review. table 2 presents the total number of articles downloaded from each database. table 2 number of articles downloaded in database sources: author s’ review (2021) result and discussions time distribution of articles on business clusters the analysis of the bc articles review shows that the highest number of articles was published in the year 2014 (17) followed by 2015 (11) and 2010 (11) respectively. 2018 (2) and 2020 (2) had the fewest number of business cluster articles published, whilst business clusters articles were published in each of the eleven years (20102020) covered by this systematic review (figure 1). the 2014 spike in the researched published could be due to economic recovery activities around the world, over 50% of bc articles for 2014 reviewed discussed initiatives, developmental policies and models developed by the government or institutional organisation to increase the bc’s impact on the economic development (e.g. alberti, et al., 2014; fundeanu and badele, 2014; garone, et al., 2014; and wolman and hincapie, 2014). s/n publishers numbers of papers 1 elsevier 17 2 emerald 12 3 inderscience 11 4 sage 14 5 springer 3 6 taylors & francis 12 7 wiley 10 total 79 business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 96 figure 1: time distribution of bc articles source: authors’ review (2021) it can be observed that the number of bc articles published decrease significantly in the year 2020 (2), this could be due to the impact of covid 19 on businesses. lockdown of business concentration and the practice of social distancing. a future research area could be the impact of a pandemic on business cluster performance. geographic distribution of articles on business cluster analysis of the 79 bc articles showed that 34 countries were represented in the systematic review of 79 bc articles reviewed. the top three countries from which these are articles originated were presented in figure 2. figure 2: countr ies with highest bc ar ticles source: authors’ review (2021) the united states of america (18), followed by the united kingdom with distant nine and then china with six bc articles. the remaining 32 countries and the number of articles published on bc are presented in table 3. to provide more insight into the geographical distribution of the 79 bc articles reviewed in the study, figure 3 show a breakdown of the continent of origin. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 97 figure figure 3: geogr aphic distr ibution of bc ar ticles source: authors’ review (2021) based on the analysis of the 79 reviewed articles, europe has the highest number of published articles (38), followed by both north america (22) and asia (17). other continents had africa (4), and south america (3) and australasia (1) has the least. this clearly shows geographical gaps in business cluster research in africa, south america and australasia. a significant amount of research has shown that entrepreneurship is an important engine for economic growth through; innovation and productivity (islam, 2010; nishimura and okamuro, 2010; carlino and kerr, 2015); generating employment, (glaeser, et al, 2010); increase competitive advantage, (mitra and thorpe, 2010, fundeanu, 2015); and through the development of technological park and business clusters (rocha, 2015). business clusters have also been identified as an important mechanism through which entrepreneurs can improve their value creation potentials by sharing resources and ideas (e.g. selvarajah and masli, 2011; champenois, 2012; dilaver, et al. 2014; kim, 2014; huggins, et al. 2015; herliana, 2015; lalzuitluangi and ramswamy, 2019). for these reasons, more research must be done to investigate the role of business clusters in entrepreneurship development in australasia, africa and south america. table 3. 32 remaining countries and the bc articles associated with them sources: authors’ review (2021) country analysis of the 79 articles reviewed shows 35 countries had business clusters research published. according to worldometers.info, there are 197 independent sovereign states in the world. the review shows that less than 20% had business s/ no. country number of articles 1 italy 5 2 netherland 4 3 canada 4 4 romania 3 5 spain 3 6 sweden 3 7 france 2 8 norway 2 9 india 2 10 malaysia 2 11 brazil 2 12 ethiopia 2 13 australia 1 14 czech 1 15 denmark 1 16 germany 1 s/ no. country number of articles 17 greece 1 18 lithuania 1 19 poland 1 20 serbia 1 21 switzerland 1 22 latvia 1 23 ireland 1 24 uae 1 25 indonesia 1 26 japan 1 27 pakistan 1 28 singapore 1 29 taiwan 1 30 thailand 1 31 nigeria 1 32 ghana 1 business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 98 cluster research published, this is rather too low on a concept that is likely to contribute to the innovation and productivity growth of each country (islam, 2010). it is important to also state that some researches were carried out in multiple countries, nonetheless, many countries are not represented in the business clusters research. therefore, there is a need for researchers in all countries to research business clusters. this will help identify the impact of successful business clusters and how policy makers can utilize the concept of business clusters in growing their economy. article type the 79 articles used for the systematic review was further analysed based on research type: empirical or conceptual. empirical articles are those research conducted through investigation or observation, and the findings are based on a collection of data evidence while conceptual articles focus on the development of a theory that explains a phenomenon or event. figure 4 shows the analysis of the 79 articles based on the empirical vs conceptual classification. figure 4: ar ticle type br eakdown sources: authors’ review (2021) the articles reviewed indicates significant numbers were empirical (71%, 56 out of 79). articles that are based on conceptual research are 23 out of 79 (29%). empirical research help in testing the postulated theories and give more meanings to abstract ideas through practical and experimental observation. conceptual research, on the other hand, is important as it helps in developing new ideas in solving real-world identified problems and also providing the direction for future empirical research. (zina, 2021). therefore, there is a need for more conceptual research to be carried out on business clusters. theory breakdown of business clusters research the analysis of theories used in the 79 bc journals reviewed is shown in figure 5 below. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 99 figure 5: analysis of theor y used. sources: authors’ review (2021) the analysis of the 79 journal articles shows that 35 theories were utilized. although, a significant number of the articles did not utilize any theory in their analysis (30%) of business clusters. the most utilized theory is the business cluster theory (15.38%) followed by the economic theory (5.13%), then life cycle theory (3.42%) and grounded theory (3.42%). some articles used more than one theory (e.g. de sordi et al., 2013; rocha, 2015; and hervas-oliver et al., 2017) – knowledge spill-over theory, organization theory, peer learning theory and agency theory are among other theory used. the business cluster theory provides insights on how the concentration of entrepreneurial innovation within a region helps in economic development (hill and mudambi, 2010; alberti et al., 2011). it also provides information on the availability of abundant capital which facilitates business co-operation and the formation of a new firm (hervas-oliver, et al. 2017). economic theory is used in identifying the impact of entrepreneurship and business cluster on the rate of economic growth and the increase in quality of public policymaking (huggins, et al., 2017). life cycle theory reveals the basis for developing business clusters on each stage of the economic cycle: growth, decline and stagnation (wang, et al. 2014). a business cluster is stated to be an important part of entrepreneurship theory dynamics. the entrepreneurship theory is used to describe how clusters foster entrepreneurship (yan, et al., 2011). grounded theory is employed to build a framework that explains the process of cluster development (kim, 2014). institutional theory is used to demonstrate the dynamic process for institutional change in business clusters (rocha, 2015). several theories were used in the articles analysed, this may mean the need to have more empirical research to test the interrelationship of these theories with business clusters. empirical research helps in investigating the developed theories (zina, 2021). though most articles reviewed did not use any theory to support their research. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 100 business cluster research themes the analysis of the 79 articles on business clusters indicates four main themes of research which are presented in figure 6. figure 6: business cluster themes sources: authors’ review (2021) the most common business clusters theme explored by the articles reviewed was the impact of bc on the economy (37%, 29 out of 79). these articles highlighted opportunities and benefits that a region with a business cluster enjoys. the presence of business clusters in the region is noted to help in reducing poverty rate; increases employment rate especially where there is diverse industry cluster; enhances firm performances, create international business links and entrepreneurial growth (e.g. kukalis, 2010; islam, 2010; alberti, et al., 2011 ali and peerlings, 2012; fowler and keit, 2013; rocha, 2015). geographical concentration of small business also promotes entrepreneurship innovation and increases tacit knowledge (richardson, et al., 2012), this is because of attributes related to business clusters such as face-to-face communication, business attitude, attractions, rivalry – developing a competitive advantage, and social factors (ferras-hernandez and nylund, 2019). however, letaifa and rabeau, (2013) noted that business cluster created through entrepreneurship spontaneous ecosystem are more prone to innovation that those driven by government policy. the second common theme among the business cluster article reviewed (27%) discussed the “business cluster formation” (21 out of 79). bc formation was explored by the journal reviewed to presents details of its evolution (e.g. guisard, et al., 2010; hill and mudambi, 2010; wang, et al., 2013). kukalis, (2010); constantin et al., (2011) and wang, et al., (2013), used the theory of industry life cycle to explain the process of business cluster formation which depicts the stages of how businesses operate from conception to maturity before it reaches declining stage. spatial concentration of entrepreneurship activities within a region is another way by which business clusters are formed. integration network services, social connection and marketing brought about through entrepreneurs innovation, human capacity or spin-off of existing business by a bigger firm to explore a new potentials (e.g. dilaver, et al., 2014; huggins et business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 101 al., 2015; hervas-oliver, et al., 2017). the 21 articles analysed under the bc formation theme revealed that business cluster can emerge from any region based on such regions’ social factors that create the enabling environment (e.g. rosiello, et al., 2015; gordon and kourtit, 2019). for example, the resources needed by financial industry cluster – such as access to security, proximity to high net worth clients and skilled labour may differ (in some aspect) from that of farmers’ cluster that have may have interest in good road network and presence of off-takers or access to a market for their produce. challenges in the development of business clusters may be addressed through favourable government policy initiatives. the third theme of the business cluster articles reviewed was government policy role (17 out of 79%). these articles provide information on how government agency create enabling environment (good infrastructure, access to finance, technical expertise, and training) for the sustainability of business clusters through a moderating role (steiner and ali, 2011; casper, 2013; wolman and hincapie, 2014). however, the government agency role should only be to facilitate or in form of intervention to reinforce established clusters, this is because a business cluster established by the government through public policy may not simulate the development needed like spontaneous or informal business network (richardson, et al., 2012; yu, et al., 2013; vernay, et al., 2018). de sordi, et al. (2013) noted the need for classification of business clusters to understand their workings to determine the type of policy intervention or government role needed to create the value envisioned. such intervention is expected to impact positively on innovative activities, increase regional competitive advantage, increase employment, improve knowledge sharing; eliminate international barriers and promotion of cluster growth (steiner and ali, 2011). therefore, the research theme indicates a gap in the application of the business cluster concept, as well as the role of policymakers in making business cluster sustainable. hence, the need for research in these areas. especially in africa, south america and australasia that have fewer researches as indicated in the analysis of the geographical distribution of business cluster articles. this will be beneficial to society and lead to business growth. the last theme from the business cluster research reviewed was the applicability of business clusters (15%, 12 out of 79). these articles provide insights into how business clusters can be used to create the needed opportunities for regional growth. the applicability of the business cluster has the potential to facilitate individual/firm participation and increase connectivity among firm in the digitally clustered business (adebanjo and roula, 2010), the tourism industry – to create competitiveness (fundeau, 2015), as well as in fashion industry (ganzaroli and noni, 2017). the reasons for adopting the business clusters by region were revealed as it helps to maximize firm growth, create longer-term sustainability, enhances innovation and create a soft landing for the economy during an economic crisis (schmiedeberg, 2010; kassai, et al., 2018;). these articles identified that business clusters play an important role in developing entrepreneurship especially among the small agricultural enterprises (lalzuitluani and ramswamy, 2019). therefore, more cities need to embrace the cluster concept in other to improve their economic growth and competitiveness albeit with support policies from a government agency. data collection methods in this section, the data collection methods used by empirical bc journal articles rebusiness cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 102 viewed are identified and discussed. as can be recalled from the “article type” section of this study, 56 out of the 79 bc articles reviewed were empirical studies. the breakdown of the data collection methods utilized by these 52 journal articles is presented in figure 7. figure 7: data collection methods sources: authors’ review (2021) six different data collection methods were utilized by the 52 empirical bc articles reviewed for this study. it can be observed from figure 7 that the most used data collection method was a reliance on document analysis method. 33% of the bc articles (38 out of 115) indicating the most utilized method (e.g. xue and liu, 2015; huang et al., 2017; vernay et al., 2018; ma and liu, 2019; pereira et al., 2020). interviews were the next most common method of data collection (22 out of 115) (e.g. rauch et al., 2014; hervas-oliver et al., 2017; kassai et al., 2018). this is closely followed by survey (19 out of 115) (e.g. negrușa et al., 2014; rosiello et al., 2015; ayakwah et al., 2020) and secondary data (17 out of 115) (e.g.; alberti et al., 2014;; foley et al., 2017; lalzuitluani and ramswamy, 2019). fifteen articles collected data using observation method (e.g. (e.g. alberti and gusti, 2012; kim, 2014; negrușa et al., 2014) while four articles organized focus groups (adebanjo and roula, 2010; madichie and nkamnebe, 2010; selvarajah and masli, 2011; letaifa et al., 2013). it is worthy to mention that some articles employ more than one data collection method in their analysis. two articles, alberti and giusti (2012) and letaifa et al., (2013) employed four methods to collect data. four articles reviewed adopted a combination of three data collection methods (e.g. islam, 2010; richardson, et al., 2012; kim, 2014; negrușa et al., 2014), while several articles combined two data collection methods (e.g. alberti, et al., 2011; ganzaroli and noni, 2017; pereira et al., 2020; ayakwah et al., 2020). the majority of the empirical research on business clusters used documentary analysis data collection. this method of data collection is used mainly to review qualitative documents to assess an appraisal theme, it requires data be examined and interbusiness cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 103 preted in order to gain in-depth knowledge of subject matters. this method is often used with other data collection methods as a means of triangulation. there is the need to seek for collaboration through other data source to have credible information. (zina, 2021). by reviewing data collected from different source, the researcher can corroborate findings which reduces the potential biases that can exist in a single-source study. however, the data collection method is not without its drawback as there may be concealed errors in documentary data (zina, 2021). also, data collected may not fully fit in answering research questions (zina, 20217). these limitations may be the reason why several of the bc empirical studies reviewed did not rely on documentary analysis as single data collection method but obtained data through other means to corroborate information therefore, to have a good test of reliability and accuracy, future business cluster research should combine data collection methods. table 4 present the key findings of this systematic review of 79 bc articles published in the last 11 years (2010 – 2020). table 4 summary of findings of review of 79 bc articles s/ n heading key findings implications 1 time distribution (2010 2020) > bc articles were published every year from 2010 to 2020 > increased interest in the bc concept by policy makers to cope with the economic crisis > 2014 witness the highest publication of bc with 17 articles published. 2 geographic distribution > 35 countries had at least one bc article. > there is need for research in bc in australasia, south america and africa as they had the least of published bc articles. > us had the highest number of bc articles with 18 amount contributing countries. > europe had the largest number of bc articles among the continents, while australasia had the least (2). 3 article type > more than 70% of the bc articles reviewed were based on empirical research (56 out of 79), while 23 articles were conceptual in nature. > there is need for more conceptual research to be carried out on business clusters. 4 theory used > 35 theories were used in bc articles reviewed, though significant number (30%) of articles did not use any theory. > high number of theories available for use indicate the need for more empirical research to test all these theories. > business cluster theory (15.38%) had the highest usage in the bc articles reviewed. 5 bc theme > four bc themes was identified. > future research should focus on the role of government agency in building a resilient economy through business clusters. > 37% investigated the opportunities and benefit of bc, while 27% explore the evolution and development of bc. > the applicability of bc concept in other areas had the least bc articles (12%) 6 data collection methods > six data collection were the focus of this review. > future bc research should adopt combination of data collection methods to provide more insight into the bc concept. > document analysis was the most common method adopted (38). business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 104 conclusion there is an increasing awareness of the opportunities and benefits of business clusters in socioeconomic development of local and regional economy. guidelines must be drawn up by the bc stakeholders with the aim of replicating successful bc strategies in one region to the other developing regions. research have shown that bc not only provide enabling environment for msmes to grow and perform better but also support businesses during economic crisis (pereira et a., 2020) through the use of shared facilities. there is increase in the global unemployment rate, thus leading to high poverty especially in sub-sahara africa. hence, the need for a framework to be drawn up (not a one-size-fit-all system) that will guide each government policy in establishing a vibrant business clusters that will contribute to the economic development (vernay et al., 2018). perhaps there is no enough evidence to conclude yet, as letaifa and rabeau (2013) suggest, close geographic proximity can impede social development. this is provide the need for more empirical research; as we focus on socioeconomic development, to better understand the impact of bc on msmes development. this study – to this endconducted a systematic review of business clusters over the last eleven years (2010 – 2020), this provide the initial goal of establishing the status of the subject matter. 79 bc articles were review across six headings – time distribution, geographical distribution, article type, theory used, article theme, and data collection. major findings and implications for research for each headings were analysed and discussed. the highlight of this study shows that significant empirical exists that suggest that there is greater opportunities and benefits in business clusters development. it provides sustainable socioeconomic growth through the entrepreneur development, poverty reduction, employment opportunities and household support, which in turn enhances organizational and regional growth. major implication for public policy makers to provide the enabling environment where business clusters will thrive, especially the critical resources that will facilitate the entrepreneurial activities in the business cluster. despite this study’s contribution to the body of knowledge, there exist some limitations that need to be addressed by future bc research. our findings might have been different if our search criteria is widened. in order to ensure the quality of the articles reviewed, we relied only on journal articles published by seven of the most popular publishers: emerald, elsevier, inderscience, sage, springer, taylor and francis and wiley. other valuable articles not published by this published have been excluded. another limitation is the time bound, only articles published in 2010 to 2020 were reviewed. future research may include early years as it may provide more useful insight. however, this study provide a clear picture of the current status of business clusters research and shows a prospect for future research area that need to be addressed in order to achieve the needed benefits of business clusters for regional development by policy makers. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 105 references adebanjo, d., & michaelides, r. 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(2019). servant leadership in the last decade: a systematic review. journal of corporate responsibility and leadership, 6(1), 53-76. business cluster and entrepreneurship growth in nigeria: a systematic review https://doi.org/10.21009/jobbe.005.1.06 mustapha, i.k., zubairu, u.m., & sakariyau, o.b. journal of business and behavioural entrepreneurship, 5(1), 92-108 https://doi.org/10.21009/jobbe.004.2.01 37 the influence of digital marketing public relations of menantea products on the purchase interest of youtube users muhammad junaid kamaruddin universitas 17 agustus 1945 jakarta jalan sunter permai raya, sunter agung podomoro, jakarta utara 14350 email: mjk@uta45jakarta.ac.id fauziah yanis universitas 17 agustus 1945 jakarta jalan sunter permai raya, sunter agung podomoro, jakarta utara 14350 email: fauziah.yanis72@gmail.com abstract this study aims to find out how much influence pr and mpr have on menantea's consumer buying interest on youtube, to find out what is the influence of pr and mpr on buying interest of ueu students, and to analyze whether there is a digital influence of mpr on buying interest of youtube users. this research is a survey research. the population of this research is youtube users. the sampling method used in this study was accidental sampling with 22 respondents. the collected questionnaire data has been tested using validity and reliability. the data analysis technique in this research is multiple linear regression. the results show that there is a public relationship related to buying interest which is positively influenced by a t-test significance value smaller than the specified significance level, digital mpr is positively influenced by purchasing decisions with a t-test significant value smaller than the specified significance level and public relations and digital mpr together with buying interest which is positively influenced by the f-test significant value smaller than the specified significance level. keywords: marketing public relations; digital marketing; buying interest received: 10 october 2022 ; accepted: 25 december 2022 ; how to cite: kamaruddin, m.j., & yanis, f. (2022). the influence of digital marketing public relations of menantea products on the purchase interest of youtube users. journal of business and behavioural entrepreneurship, 6(2), 37-50. https://doi.org/10.21009/jobbe.006.2.04 mailto:mjk@uta45jakarta.ac.id mailto:fauziah.yanis72@gmail.com 38 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 introduction technology in today's world is very important for every individual. with the existence of developing technology, everything can be solved easily and practically, for example, smartphones and the internet. with these two things, many people make up to millions of rupiah just from modern technology, namely becoming a youtuber. youtuber is a profession that is very interested in today's youth, they are even willing to spend a day just watching their favorite channels. according to nielsen's survey summarized in beritagar.id, the activities most gen z do with the internet are interacting via social media, browsing the internet, watching videos or movies, and listening to music. seeing these conditions, it is not uncommon for youtubers to promote or advertise a product brand on their channel account. the current development of social media allows companies or business owners to market their products/services with a new approach, namely social media marketing (hidayat, 2018). besides that, industrial development is no less competitive so that entrepreneurs in the industrial sector also increase, many of them compete with various aspects in order to attract consumer buying interest. if we look at the latest business developments, the tea industry is one of the business ventures that grows so rapidly every year. table 1 sales of packaged tea sales of packaged tea no year sales total 1 2017 11, 81 t 2 2018 11, 96 t 3 2019 12, 37 t based on data from nielsen indonesia, in early 2017 packaged tea sales reached rp. 11.81 trillion. furthermore, in 2018 sales reached rp. 11.96 trillion and in 2019, tea sales reached rp. 12.37 trillion. even though the data on tea packaging products is increasing every year, we cannot use this as a benchmark to help our business improve even more. because, there is a lot of similar competition in this industry. for this reason, the role of marketing public relations is needed to increase public buying interest. according to ferdinand (2014) states that buying interest can be identified through the following indicators: 1. transactional interest, namely a person's tendency to buy a product. 2. referential interest, namely the tendency of someone to refer products to others. 3. preferential interest, namely interest that describes the behavior of someone who has a primary preference for the product. this preference can only be replaced if something happens to the product of his preference. 4. explorative interest, namely interest that describes the behavior of someone who is always looking for information to support the positive properties of the product. 39 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 the influence of digital marketing public relations in attracting consumer buying interest tends to be successful. one of them is a content creator from indonesia, namely “jerome polin”, who recently launched a product brand called “menantea”. this product is able to attract consumer buying interest among students in a short time. in fact, this business just started in april 2021. and already has 68 shops in 16 provinces. in developing this business jerome and jehian were assisted by experts in the culinary field such as slyvia surya, the founder of kopisoe which now has more than 200 branches in indonesia. apart from that, there is bisma adi putra, an f&b consultant who has handled more than 200 f&b outlets in indonesia, as well as hendy setiono, the founder of baba rafi enterprise, who has successfully built various viral brands. to be able to attract consumer buying interest is not an instant thing. there needs to be high knowledge and techniques of a public relations in it. this is unique because it combines marketing and public relations. according to durianto (2013) purchase intention is the desire to buy a product, buying interest will arise if a consumer has been influenced by the quality and quality of a product, information about products such as prices and product advantages. therefore, with this background, research is needed on the influence of public relations and digital marketing public relations on purchase interests of youtube users. literature review public relations in essence, public relations is a profession in which activities are related to establishing good relations with the target public, both internally and externally. effendy (1992) says that public relations is a distinctive management function that supports and maintains common channels for communication, understanding, acceptance and cooperation between an organization and its audience, involves management in issues or concerns, assists management in obtaining information about and responsiveness to public opinion. , defining and confirming management's responsibilities in serving the public interest, supporting management in keeping abreast of and effectively leveraging change in its application as an early warning system to help anticipate trends, and using research and sound and ethical communication techniques as a key activity. the most important function of public relations, especially through one of the communication tools in the campaign is "makes a corporate image and identity". whereas when public relations becomes a tool in the marketing department (the pr as a tool of marketing) it does not only do pencils, but combines the "marketing mix" (4-ps)product, price, promotions, and place and "promotion mix" (pasp). )-publicity, advertising, sales promotions, and personal selling. then the combined mix (internal related mix marketing) in an integrated manner in marketing communications creates a new synergy, which is known as marketing public relations (ruslan, 2005). digital marketing digital marketing or digital marketing is a new approach to marketing, not just traditional marketing driven by digital elements. digital marketing has its own 40 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 characteristics and dynamics, which must be understood in order to choose effective marketing tactics and strategies (himawan, 2019). looking at today's modern era, many sectors of life have begun to change. as is the case with the current world economy, it is no longer surprising if we hear that trade has appeared in the digital world, even now the marketplace is the most profitable place for online sellers, especially during the covid-19 pandemic to the post-covid-19 pandemic. businesses never run out of ideas to come up with innovations related to the marketing they use. digital marketing according to prabowo (2018) is a way for a company to market and promote the products or services they have. digital marketing is one of the marketing media that is currently in great demand by the public to support various activities carried out. they are gradually starting to leave the conventional/traditional marketing model and switch to modern marketing, namely digital marketing. digital marketing is a type of activity in marketing that is used to promote or market a product or service and to reach potential consumers using digital media saputra, ardani (2020). marketing public relations marketing public relations is different from an advertisement, in which marketing public relations is more about providing information, education, and efforts to provide an understanding of a product or service. in this case marketing public relations is at the highest level of a promotion or advertisement usually. here are some definitions that we can use as a reference: according to ruslan (2010), marketing public relations is the process of planning, implementing and evaluating programs that stimulate consumer purchases and satisfaction through communication of reliable information and through impressions that link company and its products in accordance with the needs, desires, concerns and interests of consumers. according to kasali (2005), marketing public relations is part of marketing activities, the person in charge is the marketing manager, and the objective of marketing public relations activities is to support marketing objectives. according to anggoro (2002), marketing public relations is the process of planning, implementing, and evaluating communication programs as a liaison between the company and its consumers and the wider community, as well as part of the marketing strategy and overall corporate strategy. according to elvirano (2008), marketing public relations is a process of planning, implementing, and evaluating programs that encourage buying interest and consumer satisfaction, through the delivery of information and a convincing impression, in an effort to show that the company and its products are in accordance with the needs. , desires, interests and interests of consumers. looking at the definition above, it can be concluded that marketing public relations is a planned process that is carried out to achieve a target in terms of marketing a product. however, marketing public relations has a higher level than marketing scope. the direction is more towards the level of persuasion by educating, so that it is not just promotion but information and knowledge about products will be wider. knowledge is known as a characteristic that influences all phases in the decisionmaking process. specifically, knowledge is a relevant and important construct that influences how consumers collect and organize information, how much information is 41 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 used for decision making and how consumers evaluate products and services (haryadi, 2009). purchase interest purchase intention is the possibility that consumers will make purchases by seeking information from various sources. consumers have an interest in a product or service but it is not certain that consumers will purchase the product or service. syahnaz, wahyono (2016). super and crites (lidyawatie, 1998) explains that there are several factors that influence interest, namely: 1. differences in work, which means that with differences in work one can estimate interest in the level of consumption to be achieved, the activities carried out, the use of free time, and others. 2. socio-economic differences, meaning that someone who has a high socio-economic status will more easily achieve what he wants than someone who has a low socioeconomic status. 3. differences in hobbies or hobbies, meaning how a person uses his free time. 4. gender differences, meaning that women's interests will differ fro m men's interests, for example in spending patterns. 5. differences in age, meaning that the ages of children, adolescents, adults and parents will have different interests in an item, object activity and a person. then, buying interest according to kwek (2010) in setiawan (2015), states that buying interest can be classified as part of consumer cognitive behavior regarding consumer intentions in buying something. this is in line with the statement of lefa and laroche (2006) in setiawan (2015), who said that interest is one of the judgments about individuals who want to buy certain brands. madahi and sukati (2012) also said that buying interest occurs when someone needs a certain product after evaluating or perceiving the product whether it is feasible or not to buy previous research as a reference in writing is research conducted by angela michelle setiawan1 and daru purnomo in 2021 entitled "analysis of the influence of ecommerce promotion on youtube on brand awareness and its impact on purchase intention (explanative survey on shopee version 10.10 brands festival among students in salatiga city) "this research is different from other studies because there is an additional variable that becomes a barrier between the independent and dependent variables, namely brand awareness variable, so the researcher wants to see whether the intervening variables in the study have an influence on the independent and dependent variables. the purpose of this study is to prove that there are other variables besides buying interest that can affect promotions. the theory used is aidca's theory which is considered as a reference in effective promotion. data analysis technique using path analysis. and based on the results, the indirect effect is greater than the direct effect, so that many variables outside of buying interest have an effect on promotion. obtain an indirect effect value of 0.391 which is greater than the direct effect value of 0.275. (setiawan et al., 2021) the second research was conducted by entitled "youtube ads and brand awareness and their influence on purchase intention" conducted by m. th. anitawati and aldi apriliano in 2020. digital technology currently allows sellers to carry out all 42 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 their marketing activities online. one way to introduce their products is to advertise on youtube with the intention of growing brand awareness so as to generate buying interest. the purpose of this research is to see the effect of advertising on youtube and brand awareness on buying interest on tiket.com products. the research population is people who know and see tiket.com advertisements on youtube. a sample of 100 people was selected based on the purposive sampling method. the path analysis method was chosen because the research model uses brand awareness as an intervening variable. the results of the study show that advertising has a significant effect on brand awareness. furthermore, brand awareness and advertising partially have a significant effect on purchase intention. the direct effect of advertising on purchase intention is greater when compared to the indirect effect, which means that brand awareness in this case is unable to act as an intervening variable. (anitawati & apriliano, 2020) research method to analyze the sample, the researcher used the multiple regression analysis method. multiple linear regression is an analysis used to find out how far the relationship between independent variables and dependent variables is (supranto, 2011). this analysis technique aims to determine how much influence the public relations and digital marketing public relations variables have on the buying interest of youtube users. after calculating the quantitative data processing questionnaire (setiaji, 2009). furthermore, multiple linear regression testing was carried out using spss v 20. this analysis is considered appropriate as a research analysis method because it can be seen the relationship that occurs between the two variables, namely the independent variable and the dependent variable. the general equation of multiple linear regression is as follows: y = a + b1x1+ b2x2 +e information: y = subject in dependent variable (user purchase interest youtube). a = constant (fixed value) when the value of the independent variable. b = directional number or regression coefficient, which shows the rate of increase or decrease in the dependent variable based on the independent variable, if b(+) then it increases, and if b(-) then there is a decrease. x1 = public relations x2 = digital marketing public relations e = residual error (error) using the formula above, it will be easier to assist in the implementation of this research, where research sampling must be in accordance with the criteria set by the researcher as follows: 1. all respondents are youtube users 2. all respondents are active youtube users 3. can read and write data processing techniques 43 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 the data obtained is then processed so that it can be analyzed, the stages of data processing include editing, coding, entry, cleaning, and processing. data processing is carried out as follows: a. editing, an activity where the researcher will check the completeness of the data obtained and examined, this stage is the stage of being corrected, checked and selected. editing of the data obtained from the field starting from the completeness of the number and filling out of the questionnaire. where the data is checked and corrected first before being processed to make it easier when processing data. b. coding, this activity is carried out by classifying answers by giving codes or numbers to the data, so that it is easier for researchers to process data. c. data entry, data entry is also called data tabulation. at this stage, the process of entering data in the form of answer codes into the columns that have been made before is carried out. at this stage accuracy is required so that there are no errors when entering data or double entry. d. cleaning, re-checking the data that has been entered with the aim of ensuring that there is no mistake in the data in coding, typing, and other errors so that the data can be processed. e. processing, with this stage it can be done by processing data into a computer program so that data is obtained which will be analyzed further. data analysis data analysis techniques after the data has been collected using spss version 20 software, the stages are as follows: a. univariate analysis, univariate analysis is describing the characteristics of each research variable expressed by describing and summarizing the data in a scientific way in the form of tables or graphs. univariate analysis was performed to see the frequency distribution of each independent and dependent variable. this analysis is used to obtain an overview of each variable, the independent variables include the influence of public relations and digital marketing public relations, while the dependent variable is the buying interest of youtube users. b. bivariate analysis, all questionnaire data will be processed using a statistical program on the computer with the spss version 20 application. then the data will be presented in the form of a frequency distribution table. before testing the hypothesis, a normality test is carried out using the sample dependent statistical test t-test if the data is normally distributed and data that is not normally distributed uses the mann-whitney test. results and discussion this study aims to determine the effect of digital marketing public relations on purchasing decisions for menantea products among youtube users, either partially or simultaneously. the number of samples in this study were 120 respondents. the research results from the questionnaires that have been collected are then processed and analyzed. 44 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 tabel 2 results of descriptive statistical analysis ______________________________________________ statistic x y ______________________________________________ sample 50 50 maximum point 34 32 minimum point 15 15 mean 22,25 23,80 deviation standard 3,402 4,620 ______________________________________________ source: processing data, spss (2020) based on the table of descriptive statistical analysis results, the results of the questionnaire obtained through the digital marketing variable (x) which were distributed to 50 respondents obtained the highest value of 34 and the lowest value of 15. the average or mean of the respondents' answers was 22.25, with a standard deviation 4.62. the mean value is greater than the standard deviation indicating that the results of the data distribution are quite good. the results of the buying interest questionnaire (y) obtained the highest score of 32 and the lowest score of 15. the average or mean of the respondents' answers was 23.80, with a standard deviation of 4.620. the mean value is greater than the standard deviation indicating that the results of the data distribution are quite good. table 2 description of digital marketing variables _________________________________________________________________ item mean description _______________________________________________________________________ x.1 3,30 consumers can access information about menantea products via youtube x.2 3,40 menante's official website makes it very easy consumers in search of information x.3 3,40 consumers are very easy to find products that sold menantea when doing a quest through internet search engines x.4 3,00 menantea menu is quite complete shown in youtube x.5 2,75 promotion of menantea products via e-mail is lacking assist consumers in obtaining information effectively x.6 3,20 youtube is one of the means in looking for information about menantea products x.7 3,20 consumers are quite interested in buying the product menantea because the promotion is done through youtube digital 3,18 digital marketing is quite helpful for consumers marketing in obtaining information about products waiting __________________________________________________________________ source: data processed in 2022 45 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 based on the table above, it shows that the digital marketing variable (x) has an average value of 3.18 and is categorized at a moderate level. this shows that digital marketing is quite helpful for consumers in obtaining information about menantea products obtained from websites, search engines, and social media. of the 7 digital marketing variable question items, there are 2 items categorized at a high level (x.2 and x.3), 4 items are categorized at a moderate level (x.1, x.4, x.6 and x7), and 1 item categorized at low level (x.5) table 3 variable description of purchase intention item mean description ____________________________________________________________ y.1 3,10 consumers pay attention to products offered by menantea. y.2 2,90 consumers are quite interested in have a product to offer by menantea y.3 3,08 consumers are willing to give recommendation to others for buy menantea products. y.4 2,98 consumers are willing to suggest for others to see menantea youtube account. y.5 2,60 consumers are less interested buy menantea products y.6 2,75. menantea products offered at youtube is quite interesting consumer. y.7 3,05 consumers are quite interested in looking for product information menantea via youtube. y.8 3,35 consumers are always looking for information the latest about menantea products such as free shipping vouchers, discount, etc. buying interest 2,98 consumers have enough interest buy on menantea products ____________________________________________________________ source: data processed in 2022 based on the table above, it shows that the variable interest in buying (y) has an average value of 2.98 and is categorized at a moderate level. this shows that consumers have enough interest in buying menantea products. of the 8 items of buying interest variable questions, there was 1 item categorized at a high level (y.8), 6 items were categorized at a moderate level (y.1, y.2, y.3, y.4, and y.7), and 1 item is categorized at a low level (y.5). validity test and reliability test the validity test was carried out using spss 22 and using 50 respondents. so that the value of 𝑟𝑡𝑎𝑏𝑒𝑙 is obtained with a significance of 5% which is equal to 0.312. 46 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 table 4 digital marketing variable validity test results (x) ________________________________________ no item 𝒓-stat 𝒓 𝒕𝒂𝒃𝒆𝒍 5% (50) desc. ____________________________________________ x_1 0,682 0,312 valid x_2 0,667 0,312 valid x_3 0,663 0,312 valid x_4 0,705 0,312 valid x_5 0,740 0,312 valid x_6 0,729 0,312 valid x_7 0,696 0,312 valid ____________________________________________ source: data processed in 2022 based on table above, the digital marketing variable uses 7 question indicators, has a value of 𝑟ℎ𝑖𝑡𝑢𝑛𝑔 > 0.312. these results indicate that the question items contained in the digital marketing variable are valid. table 5 validity test results of buying interest variable (y) ____________________________________________________ no item 𝒓-stat 𝒓 𝒕𝒂𝒃𝒆𝒍 5% (50) desc _________________________________________________________ y_1 0,692 0,312 valid y_2 0,830 0,312 valid y_3 0,841 0,312 valid y_4 0,842 0,312 valid y_5 0,806 0,312 valid y_6 0,867 0,312 valid y_7 0,888 0,312 valid y_8 0,711 0,312 valid ____________________________________________________ source: data processed with spss 22 in 2022 based on table 5, the purchase intention variable uses 8 questions, has a value of 𝑟ℎ𝑖𝑡𝑢𝑛𝑔 > 0.312 meaning that the items contained in the purchase interest variable are valid. 47 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 table 4 reliability test results _______________________________________________ variable cronbach's alpha desc. _________________________________________________________ digital marketing 0,821 reliabel buying interest 0,922 reliabel _______________________________________________ source: data processed with spss 22 in 2022 based on the table above, the cronbach's alpha value for digital marketing variables and consumer buying interest is good. judging from the cronbach's alpha value for digital marketing, it is 0.821 > 0.60, and the buying interest variable is 0.922 > 0.60. these results indicate that the items in the digital marketing variable and consumer buying interest are reliable. normality test table 6 normality test results one-sample kolmogorov-smirnov test unstandardiz ed residual n normal parameters a,b mean std deviation most extreme absolute differences positif negatif test statistic asymp. sig. (2-tailed) 50 ,0000000 3,59524410 ,125 ,125 ,111 ,125 ,115c a. test distribution is normal. b. calculated from data. c. lilliefors significance correction. based on the results of the normality test using standardized residuals, the results of the kolmogorov-smirnov significance value were 0.115 > 0.05, it can be concluded that the data of the two variables are normally distributed. 48 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 table 7 linearity test results anova table sum of squares df mean square f sig. minat between groups (combined) beli° linierity digital deviation from marketing_ linearity within groups total 604.407 329.491 275.772 228.333 832.400 13 1 12 26 39 46.467 328.295 22.981 8.782 5.291 37.382 2.617 .000 .000 .019 source: data processed with spss 22 in 2022 linearity test the linearity test is used to determine whether the digital marketing variable and product purchase intention have a linear relationship or not with the purchase intention variable. from the results of the anova test or f test, it was found that there were 37,382 with a significance level (α) = 0.00 less than 0.05, so it can be concluded that the relationship between the independent data and the dependent variable has a linear relationship. heteroscedasticity test the heroscedasticity test appears when the errors or residuals of the observed model do not have a constant variance from one observation to another. to find out the presence of these symptoms, it can be done using the glejser test technique. the results show that the significant value of the digital marketing variable ( ) is 1,000, interest in buying products () is 1,000. in this heteroscedasticity test it is known that digital marketing and product purchases are significant ≤ 0.05. so it can be concluded that in the regression model there is no heteroscedasticity problem. simple linear regression analysis 49 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 based on the results of simple linear regression, the simple linear regression equation is obtained as follows: y = 4.827 β + 0.853 x. the regression equation means: 1) constant = 4.827. if the digital marketing variable is considered equal to zero, then the digital marketing variable is 4.827. 2) coefficient x = 0.853 this value indicates that the influence of digital marketing is positive, and if the digital marketing variable increases by 1%, it will cause an increase in consumer buying interest by 0.853. t test analysis based on the results of statistical testing with spss on the digital marketing variable (x) the value is 𝑡ℎ𝑖𝑡𝑢𝑛𝑔 > 𝑡𝑡𝑎𝑏𝑒𝑙 or 4.975 > 2.024, and sig 0.000 <0.05, so that the digital marketing variable has a positive and significant effect on the consumer buying interest variable using youtube.analisis koefisien determinasi table 8 results of the analysis of the coefficient of determination model r r square adjusted r square std. error of the estimate 1 ,628a ,394 ,378 3,642 source: data processed with spss 22 in 2022 from the results of the calculations in the table of the results of the analysis of the coefficient of determination above, a 𝑅 2 value of 0.394 or 39.4% is obtained, indicating that 39.4% of consumer buying interest is influenced by digital marketing, the remaining 60.6% is influenced by other variables that are not included in the this research. however, the influence of digital marketing on consumer buying interest is low because the 𝑅 2 value is 0.394 or 39.4% (sugiyono, 2014 in mewoh et al., 2019) conclusion based on the research results from the data analysis test on digital marketing public relations variables on buying interest in youtube users, the following conclusions are drawn: 1) effect of digital marketing on purchase intention based on the results of the partial test (t-count) on purchase intention, it shows that the significant value of the t test is smaller than the specified significance value. it can be concluded that digital marketing has a positive and significant effect on purchase intention of menantea products, even though the effect is low because the rest is influenced by other variables not included in this study. 50 kamaruddin, m.j., & yanis, f. (2022). journal of business and behavioural entrepreneurship, 6(2), 37-50 2) with youtube, consumers can easily access and obtain information about the products they sell. menantea also needs to pay attention to, develop and evaluate the implementation of other digital marketing strategies such as e-mail and websites in order to increase consumer buying interest. this can be done by maximizing marketing, especially through search engine marketing, e-mail and other social media. furthermore, menantea also needs to evaluate what are the weaknesses or deficiencies in marketing via youtube. menantea must also be able to manage digital marketing well by carrying out creative and innovative marketing regarding product information to make it easier to understand and more attractive to consumers, so as to increase consumer buying interest. references aaker, a. david. 2008. “manajemen ekuitas merek”, alih bahasa oleh aris ananda, jakarta: mitra utama. anitawati, m. t., & apriliano, a. (2020). iklan youtube dan brand awareness serta pengaruhnya terhadap minat beli. institutional repository universitas bakrie, 2010, 1–10. http://repository.bakrie.ac.id/id/eprint/3556 cutlip, scott m., allen h. center dan glen m. broom. 2006. “effective public relations”, edisi 9 cetakan kedua. kencana. jakarta. ghozali, imam. 2011. “aplikasi analisis multivariate dengan program ibm spss 19. edisi kelima”. semarang: universitas diponegoro. kotler, philip dan kevin lane keller. 2009. “manajemen pemasaran, edisi 13 jilid 1”. erlangga. jakarta. setiawan, a. m., purnomo, d., & harnita, p. c. (2021). analisis pengaruh promosi ecommerce di youtube terhadap brand awareness dan dampaknya terhadap minat beli. jurnal cakrawala, 55–80. file:///c:/users/user/downloads/4774article text-22424-3-10-20210818.pdf 60 abstract bubble drink products are one of the beverage trends that have developed this year, even during the covid 19 pandemic. one of the bubble drink brands that is in demand by the public especially teenagers in indonesia is chatime, in which consumers do not buy chatime just once. the purpose of this paper is to study the effect of corporate social responsibility, food quality, customer satisfaction, on repurchase intention, through customer satisfaction. the research sampling techniques used are nonprobability sampling by judgmental sampling. this study focuses on chatime consumers who bought chatime products during a pandemic covid-19. the data analysis technique is used path analysis. the results show that csr has a negative effect on repurchase intention and customer satisfaction, food quality has a positive effect on repurchase intention and customer satisfaction, perceived value has a negative effect on repurchase intention, but has a positive effect on customer satisfaction. keywords: corporate social responsibility, customer satisfaction, food quality;perceived value, repurchase intention received: 28 april 2021; accepted: 2 june 2021 ; publish: june 2021 how to cite: muhajir, m.v., indarwati, t.a. (2021). the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). journal of business and behavioural entrepreneurship, 5(1), 60-77. https://doi.org/10.21009/jobbe.005.1.04 the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products) mohc. velian muhajir faculty of economics and business, state university of surabaya, indonesia email: velian.17080574006@mhs.unesa.ac.id tias andarini indarwati faculty of economics and business, state university of surabaya, indonesia email: tiasindarwati@unesa.ac.id https://doi.org/10.21009/jobbe.004.2.01 61 introduction the culinary industry is the most resilient field in the pandemic era. referring to data from the badan pusat statistik (bps), the contribution of the processing industry to gdp reached 19.87% in the second quarter of 2020. the above phenomenon is due to the fact that food and drink are primary needs for humans, as well as the emergence of various trends and innovations from culinary business actors that are currently on the rise. one of the businesses in the culinary field that is currently trending is bubble drink products. bubble drink is a contemporary drink that is popular in various countries. this drink comes from taiwan which is made from tapioca flour, and served with syrup, tea, and milk (detik.com, 2018). chatime is one of the bubble drink brands that is in demand by the public, especially teenagers in indonesia. chatime was able to stay in the first place in the top brand index for three consecutive years, from 2018 to 2020. this shows that the chatime brand has good mind share, market share, and commitment share according to consumers. this measurement is in accordance with the criteria used to measure a brand to occupy a position in the top brand index by considering these three things (top brand award, 2019). chatime created a movement with the theme "chatime berbagi" which was carried out during a pandemic. this activity is a csr program by distributing more than 100 thousand glasses of chatime products to medical personnel on duty at the covid19 referral hospital in the city of jakarta. this activity continues by targeting hospitals and health centers in 10 other areas in indonesia, including surabaya, medan, batam, semarang, yogyakarta, bali, balikpapan, banjarmasin, makassar and manado (timesindonesia.co.id, 2020). the chatime sharing program also involves consumers where consumers can use chatime product sharing services to online motorcycle taxi drivers when purchasing chatime products (harianbirawa.co.id, 2020). in this study, the csr variable is derived from external factors that influence consumer behavior. research conducted by thi & le van, (2016) states that companies in the consumer industry must develop marketing based on a social responsibility component to strengthen trademarks in consumer perceptions, and change consumers' thoughts into purchasing interests. in addition to examining the csr variable, this study also measures consumer satisfaction and repurchase intentions based on the food quality of chatime products. the food quality variable in this study is derived from the internal factors of consumer behavior, namely from the management of information and perceptions that also play an important role in encouraging consumer satisfaction, as well as consumer repurchase intentions. kotler & armstrong (2012: 142) said that product quality is the ability of a product, both goods and services, to show its function. the results of research conducted by muliawan & m, (2018) state that companies must be able to improve and maintain the quality of their products based on the various dimensions in them to be able to increase consumer repurchase intentions. this study not only uses the csr variable and food quality to measure consumer satisfaction and repurchase intention, but a further and in-depth study using the variable perceived value. perceived value is the next thing which is also derived from information management and perception factors, which are also a driving factor for consumer satisfaction and consumer repurchase intentions. according to pham et al., (2018) perceived value is a comparison between what consumers issue and what consumers can feel from the products they have purchased. chatime is considered capable of providing excellent quality to consumers both in terms of service and in terms of products, bemuhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 https://doi.org/10.21009/jobbe.004.2.01 62 sides that chatime is also able to provide added value to consumers which is a separate reason for consumers to make repeat purchases. this study aims to determine the direct effect of csr, food quality, and perceived value on customer satisfaction and repurchase intention, as well as the direct effect of customer satisfaction on repurchase intention. therefore, it is hoped that this research will be able to make an important contribution to chatime in developing its products and services, in order to be able to make consumers satisfied and have the intention to make repeat purchases. literature review repurchase intention repeat purchase is a condition in which consumers are willing to repurchase products from certain brands after use (chiang 2016) in (ling-chuan huang, et al, 2019). this opinion is also supported by erkan & evans (2016) which states that repurchase intention is considered as the customer's intention to repurchase a product from a certain brand, namely the customer's psychological commitment to service. the indicators used in this study refer to chiang's (2016) research in ling-chuan huang ,. et al (2019) for measuring the repurchase intention variable that has been adjusted to the research needs, namely there are 2 indicators, namely repeated purchase, and willingness to recommend. corporate social responsibility (csr) csr is a commitment to improving people's welfare through discretionary business practices and the contribution of company resources (kotler & lee, 2005) in (chung et al., 2015). this study defines csr as programs, activities, processes, and perceived social obligations that are made as a form of business commitment to contribute to sustainable economic development, improve people's welfare, and improve the quality of life of the community by using company-owned resources (wood, 1991; sen and bhattacharya, 2001) in (nareeman & hassan, 2013). there is 1 indicator used to measure the csr variable in this study by referring to the research of thi & le van, (2016), and chung et al., (2015) which has been adjusted to the needs of this study, namely philanthropic responsibility. food quality food quality refers to the overall performance of the food itself to meet consumer needs and is considered an important element of the customer experience with a restaurant that offers such food (ha & jang, 2010) on (dwi suhartanto, et al, 2019). food quality which in this study is used to measure the quality of drinks is an important element of the customer experience of the products consumed, and quality drinks are drinks that are able to meet all consumer needs for these drinks (ha & jang, 2010) on (dwi suhartanto, et al., 2019). there are 2 indicators used to measure the food quality variable and it has been adjusted to the needs of this study, which refers to the opinion of west, wood and harger (2006, p. 39), gaman and sherrington (1996, p.132) and jones (2000, p. .109-110) in (margaretha fiani s. and edwin japarianto, se, 2012). the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 63 perceived value perceived value is an overall consumer assessment of the function or usefulness of a product based on perceptions of what is received with what is given (zeithaml, 1988) in (nguyen xuan nhi, 2019). in this study, perceived value is defined as the difference that consumers perceive between what is sacrificed and what is obtained in the product they buy (zeitham, 1988) in (xuan phuc tran, et al, 2019). the indicator used to measure the perceived value variable refers to research conducted by konuk (2018) and kuo et al., (2009), and it has been adjusted to this study that there are 2 indicators, namely the price of this product is economical, and the product and service is a good buy. customer satisfaction customer satisfaction is an emotional response felt by consumers on the evaluation of a product that is consumed (tjiptono, 2012: 301). there are 5 factors that influence consumer satisfaction according to lupiyoadi (2001: 122), among others, product quality, service quality, emotion, price, cost. every company will definitely use the measurement of customer satisfaction with the products they offer, this aims to evaluate product performance and to find out future product development plans. the indicator used to measure the customer satisfaction variable in this study refers to the research of ha & jang (2010), which is that there are 3 indicators. the effect of corporate social responsibility (x1) on repurchase intention (y) the results of research by thi & le van, (2016) state that csr (economic responsibility, legal responsibility, philanthropic responsibility, environmental responsibility) has a positive and significant effect on repurchase intention. the study explains that companies in the consumer industry must develop marketing based on a social responsibility component to strengthen trademarks in consumer perceptions, and change consumers' thoughts into purchasing interests. customers tend to increase interest in repeat purchases at companies that are considered responsible to society. another study that states the same thing is a study conducted by saju jose nilesh khare f. robert buchanan, (2015), this study explains that the perceptions presented by csr activities can reduce the negative effects of consumer dissatisfaction on their next purchase. another study that states the same thing is by tsai et al., (2016) which states that csr (csr to employee, csr to customer) has an effect on repurchase intention. the results of this study identify that there are 3 csr issues that are very important to customers, namely compliance with consumer rights, compliance with laws and regulations, and provision of accurate information. this study is also corroborated by the results of research by bello et al., (2020). the effect of food quality (x2) on repurchase intention (y) research conducted by muliawan & m, (2018) states that food quality has an influence on repurchase intention. the company has been able to improve and maintain the quality of its products based on various dimensions in it. the relationship between food quality and repurchase intention can also be proven to have a significant the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 64 relationship. research that states the same thing is by faradiba & astuti, (2013), hermanto & cahyadi, (2015), and harfania, (2018), which states that there is a positive and significant effect on product quality (food) on repurchase intention. a different opinion is conveyed by bahar & sjahruddin, (2017) which states that food quality has no effect on repurchase intention. this study explains that the product of the object of research has low durability, this is due to several factors, one of which is the product packaging which cannot maintain the maximum durability of the product. this causes consumer perceptions of product quality to decline, so that in this study the results show that product quality has no effect on repurchase interest. the effect of perceived value (x3) on impulse buying behavior (y) research by pham et al., (2018) states that perceived value has a positive and significant effect on repurchase intention. the research explains that perceived value is a comparison between what consumers spend and what consumers can feel from the products they have purchased. companies are required to be able to increase convenience and reduce non-monetary costs incurred by consumers such as time and energy which aim to increase the perceived value of customers, which if the perceived value increases, the intention of consumers to make repeat purchases will also increase. a similar opinion was also conveyed by tresna et al., (2019) in their research stating that perceived value has an influence on repurchase intention. the study also explained that the variable perceived value also included functional, social and emotional values in it. this opinion also supports other research conducted by huang et al., (2019), nhi et al., (2019), and frendy (2013). the effect of corporate social responsibility (x1) on customer satisfaction (z) the results of research by loureiro et al., (2012) show that the perception of csr according to buyers will affect their satisfaction with these products, but not all csr problems have a big impact on consumer satisfaction, there are several types of csr that have a big impact on consumer satisfaction, namely csr. in the environmental field. a similar opinion was stated by chung et al., (2015) that csr affects customer satisfaction. this study explains that csr to customer which aims to protect customers is more important than csr to the contribution to the environment. the results of the above research are also supported by research conducted by nareeman & hassan, (2013). another study that states the same thing is research conducted by pérez & del bosque, (2015). the effect of food quality (x2) on customer satisfaction (z) research by hidayat et al., (2020) states that there is a positive effect of food quality on customer satisfaction. in this study, it is explained that company management must be able to provide innovation in the variants of beverage products offered, maintain and control the temperature of the food when it is served, and increase the portion size of the food served. this is an effort made to maintain consumer satisfaction with food quality. a similar opinion is also expressed by berliansyah & suroso (2018), and ha & jang (2010), that there is a significant relationship and influence between food quality and customer satisfaction. other studies that state the same thing are research conducted by weliani (2017) and research conducted by muliawan & m the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 65 (2018) which states that there is a positive and significant effect of food quality on customer satisfaction. another opinion was conveyed by nancy et al., (2020) stating that food quality has no effect on customer satisfaction. consumers of restaurants with open kitchens feel satisfaction not from the quality of the food served but from other factors that cannot be explained explicitly in this study because they are not examined more deeply on this matter. the researcher also explained that in this study there were no restrictions on the objects used, so that the respondent is anyone who has ever visited an open kitchen restaurant with any brand, so there is a possibility that the respondent has visited an open kitchen restaurant that offers food quality that does not match the respondent's expectations. resulting in food quality being seen as a variable that has no effect on customer satisfaction. the effect of perceived value (x3) on customer satisfaction (z) leonnard (2018) states that there is a positive and significant effect of perceived value on customer satisfaction. a similar opinion was conveyed by abdul raji & mohd nazri et al., (2016) which stated that there are 3 sub-hypothesis of perceived value used, namely emotional responses, behavioral price, and reputation, all of which state a positive and significant relationship to customer satisfaction. the opinion above is also corroborated by the opinion of research conducted by frendy (2013) which states the same thing. the effect of customer satisfaction (z) on repurchase intention (y) research by berliansyah & suroso, (2018) states that to increase consumer repurchase intention, upper-level management must pay attention to consumer satisfaction, this can be realized by improving the quality of food and beverages, and considering the appropriate price for the products offered. a similar opinion was conveyed by hidayat et al., (2020) which in order to increase repurchase intention, businesses must prioritize consumer satisfaction above all else. other studies that support the above statement include research conducted by weliani (2017), leonnard (2018), frendy (2013). a different opinion was conveyed by vigripat & chan (2007) which stated that there was no effect of customer satisfaction on repurchase intention. in this study, it is explained that consumers who are satisfied with previously purchased car products have a small or even impossible possibility to repurchase a car with the same brand or type. the study also revealed that satisfied consumers are more likely to repurchase fancier products if they have enough money. hypothesis h1 : cor por ate social responsibility has a significant effect on repur chase intention. h2 : food quality has a significant effect on repur chase intention. h3 : per ceived value has a significant effect on repur chase intention. h4 : cor por ate social responsibility has a significant effect on customer satisfaction. h5 : food quality has a significant effect on customer satisfaction. h6 : per ceived value has a significant effect on customer satisfaction. the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 66 h7 : customer satisfaction has a significant effect on repur chase intention. figure 1. conceptual framework source: data processed (2021) research methods this research belongs to the type of quantitative research. the population used is an unknown number of chatime consumers (infinnite), with the characteristics of having bought chatime products since november 2020, knowing chatime's csr program, namely the “chatime berbagi” program, and with an age range of 15-50 years. the sampling technique used in this study is non-probability sampling by relying on the judgment or personal judgment of the researcher. the number of respondents in this study was 200 respondents. the research was conducted by distributing questionnaires online to respondents according to the characteristics that had been determined by measuring using the likert scale. the data analysis technique uses path analysis using the ibm spss amos (analysis of moment structure) version 24 application. an explanation of the statement items used to measure the csr variable, food quality, perceived value, repurchase intention, and customer satisfaction that have been adjusted to the research needs is as shown in table 1 below customer repurchase corporate social responsibility food quality perceived value h2 h5 h7 the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 67 table 1 measurement of research variables source: data processed (2021) results and discussion respondent characteristics demographic characteristics based on the age of the respondents can be seen that most respondents are in the 21-25 years age range as many as 87 (43%), and the least respondents are those with the age range 46-50 years with a total of 2 (1%) respondents. demographic characteristics based on gender, there are 149 (74%) female respondents, and 51 (25%) male respondents. characteristics of respondents when viewed from the characteristics of the work there are, 131 (65%) are students, 7 (3%) have jobs as civil servants, 34 (17%) of respondents are private employees, then 14 respondents (7%) work as entrepreneurs, followed by respondents with a profession as housewives as many as 9 (4%) of respondents, and 5 (2%) of respondents with other professions, among others, as social media influencers, and several others were job variabel indikator item pernyataan corporate social responsibility (x1) phylantropic responsibility (x1.1) chatime shows its concern for medical personnel by distributing its products for free during the pandemic era (x1.1.1) chatime is able to invite the public to share with online motorcycle taxi drivers (x1.1.2) food quality (x2) color (x2.1) the variant of the chatime drink has an interesting color combination (x2.1.1) the color combination of the drinks that chatime offers is able to make me more appetizing to consume these products (x2.1.2) taste (x2.2) the taste of the drink is the main thing that affects the quality of the drink (x2.2.1) each drink variant in chatime products has a fresh taste (x2.2.2) perceived value (x3) the price of this product is economical (x3.1) the chatime products and services that i received match the sacrifices (time, energy, price) that i spent (x3.1.1) the product and service is a good buy (x3.2) the products and services provided by chatime are worth buying even during the covid-19 pandemic (x3.2.1) customer satisfaction (z) happiness (z.1) i had a wonderful experience while consuming chatime products (z.1.1) contentedness (z.2) i feel that consuming chatime bubble drink products can meet my needs (z.2.1) overall satisfaction (z.3) overall, i am always satisfied with chatime's bubble drink products and services even during the covid-19 pandemic (z.31) repurchase intention (y) repeated purchase (y.1) i plan to repurchase chatime products in the future (y.1.1) willingness to recommend (y.2) i will happily recommend chatime products to my family and friends (y.2.1) the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 68 seekers or in the stage of looking for work. demographic characteristics when viewed from monthly expenditure there are 88 (44%) respondents with expenses <rp. 1,000,000, the next respondents with expenses of rp. 1,000,001-rp. 1,500,000 are 42 (21%) respondents. the characteristics of respondents based on the location of buying chatime in this study were dominated by respondents who bought at outlets in east java province, namely 125 (60%) respondents, followed by respondents who made purchases in west java province as many as 28 (13%), followed by dki province. jakarta as many as 21 (10%), followed by respondents who bought in central java province as many as 10 (3%) respondents. pre analysis pre-requirement test results before conducting the path analysis test, the researcher first conducted a prerequisite analysis test, the results of the pre-requisite analysis test can be seen in table 2 below. table 2 analysis pre-requirement test results source: data processed (2021) path analysis results the structural model equation (1) (2) below will show the results of the path analysis, and can be illustrated in figure 2 below no pre requirement test result information 1 normality test the critical ratio of the skewness value of each variable shows a normal distribution because it is in the range of -2.58 to 2.58 (1,070, -2,191,1,607, -1,586, -2,233). the assumption of multivariate normality has been fulfilled and the data is suitable for use in the next stage. 2 linearity test the significance probability value of all independent variables on the dependent and intervening variables is 0,000. significance probability values that meet the criteria are those that have a value range of 0.000 <0.05. the terms of the relationship between variables have met the requirements and are linear. 3 outlier test mahalanobis distance value is less than 48.278 or there is no mahalanobis d-square data that exceeds 48.278. the p2 value, does not indicate a value less than 0.05. the data meet the outliers test assumptions and the data is suitable for use in the next estimation. 4 multicolinearity test the determinant covariance matrix is 46.659, which means that the determinant covariance matrix value is far from 0. in this study there was no multicollinearity relationship. the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 69 figure 2. path analysis results source: data processed (2021) z = b1 x1 + b2 x2 + b3 x3 + e1 = 0,07 x1 + 0,95 x2 + 0,08 x3 + 0,588..........................................................(1) y = b4 x1 + b5 x2 + b6 x3 + b7 z + e2 = -0,09 x1 + 0,22 + 0,22 + 0,32 + 0,658........................ .................................(2) hypothesis test results table 3 hypothesis test results source: data processed (2021) based on table 3, the results of the h1 hypothesis test obtained a significance probability value of 0.249 (p> 0.05) so it can be said to be insignificant or there is no effect. this means that corporate social responsibility has no effect on repurchase intention. this means that the first hypothesis (h1) is rejected. h2 hypothesis test results obtained a significance probability value of 0.000 (p <0.005). this means that food quality has a positive and significant effect on repurchase intention. this means that the second hypothesis (h2) is accepted. the results of hypothesis testing h3 obtained a hipotesi s variabel estimate c.r. p result h1 repurchase intention <-csr -0,68 1,152 0,249 not supported h2 repurchase intention <-food quality 0,424 7,431 0,000 supported h3 repurchase intention <-perceived value 0,078 0,992 0,321 not supported h4 customer satisfaction <-csr -0,067 1,273 0,203 not supported h5 customer satisfaction <-food quality 0,321 7,019 0,000 supported h6 customer satisfaction <-perceived value 0,687 13,45 6 0,000 supported h7 repurchase intention <-customer satisfaction 0,418 5,270 0,000 supported the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 70 significance probability value of 0.321 (p> 0.005) so it can be said that it is not significant or has no effect. this means that perceived value has no effect on repurchase intention. this means that the third hypothesis (h3) is rejected. the results of hypothesis testing h4 obtained a significance probability value of 0.203 (p> 0.005) so it can be said that it is not significant or has no effect. this means that corporate social responsibility has no effect on customer satisfaction. this means that the fourth hypothesis (h4) is rejected. the results of hypothesis testing h5 obtained a significance probability value of 0.000 (p <0.005). this means that food quality has a positive and significant effect on customer satisfaction. this means that the fifth hypothesis (h5) is accepted. the results of hypothesis testing h6 obtained a significance probability value of 0.000 (p <0.005). this means that perceived value has a positive and significant effect on repurchase intention. this means that the sixth hypothesis (h6) is accepted. the results of hypothesis testing h7 obtained a significance probability value of 0.000 (p <0.005). this means that customer satisfaction has a positive and significant effect on repurchase intention. this means that the seventh hypothesis (h7) is accepted. sobel test results based on the results of the sobel test in this study, it is known that the mediating variable, namely customer satisfaction, is not proven to mediate the relationship between the csr variable and the repurchase intention variable with the csr variable probability value of 0.21294723 (p> 0.05). different results are shown in the relationship between the food quality variable on repurchase intention which is proven to be mediated by the intervening variable, namely customer satisfaction with a probability value of the food quality variable of 0.00002581 (p <0.05). customer satisfaction (z) is also proven to be able to mediate the relationship between the perceived value variable on repurchase intention and the probability value of the perceived value variable of 0.00000087 (p <0.05). discussion the results of this study indicate that csr has no effect on repurchase intention. the theoretical concept of thi & le van, (2016) cannot be proven in this study, because it states that companies in the consumer industry must develop marketing based on the social responsibility component to strengthen trademarks in consumer perceptions, and change consumers' minds to purchase interests. the results of this study do not support the results of previous studies conducted by tsai et al., (2016), saju jose nilesh khare f. robert buchanan, (2015), and bello et al., (2020) which state that csr has a positive effect. and significant to repurchase intention. this happens because the objects in the previous research mentioned above do not only carry out philanthropic responsibility but there are several others such as legal responsibility, economic responsibility, and environmental responsibility, where the program is carried out in a sustainable manner and is used as a company marketing strategy so that the brand is attached to it. consumer memory that the company is responsible for other things around it. this is different from chatime, which during the pandemic only focused on carrying out philanthropic responsibility by sharing its products with medical personnel, and inviting consumers to share chatime products with online motorcycle taxi riders. chatime did not really show the csr activities carried out, but only a number of online news portals, and chatime's own social media that uploaded information about the program. the csr program carried out by chatime during the the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 71 pandemic also did not take place continuously, but only for a certain period, this made the program less likely to reach consumers 'memories, and made consumers' repurchase intentions of chatime products not caused by csr activities that were carried out. run. the majority of respondents in this study were 21-25 years old with an average expenditure of <rp. 1,000,000 per month. this shows that the majority of respondents do not have high income so they do not have the ability to participate in the csr program run by chatime by inviting consumers to share with online motorcycle taxi drivers. in addition, the majority of respondents only knew about the chatime sharing program without having any interest in participating in the program. seeing the above, if chatime targets its csr program as a means of corporate marketing strategy, chatime must develop a csr program that is run into a sustainable program, or not only for certain periods. chatime can also develop csr programs that are not only in the philanthropic field but also in other fields such as the environmental sector which is adjusted to the characteristics of chatime's target market, namely adolescents. according to czap, (2010) in kristando & indarwati, (2021) a group of young people or adolescents is a group with a low income level, where this group is more willing to carry out activities or activities in protecting the environment, rather than having to spend money to donate. young consumers or teenagers will be happy to participate in a company's csr program if the sacrifices made when buying a product include donating or participating in csr programs run by the company, but it is different from the “chatime berbagi” program which invites consumers to increase product purchases. chatime to share with online motorcycle taxi drivers, this makes consumers unwilling to join the program because they have to add sacrifices in the form of money. chatime can make the csr program run more attractive to consumers, and can lead to an increase in repeat purchase intentions if the program is implemented according to its target market, namely teenagers. next, the results of this study indicate that there is an effect of food quality on repurchase intention. these results are able to prove the theoretical concept of kotler (2009: 235) which states that high repurchase intentions represent a high level of consumer satisfaction based on the perception that the desired product or service is of good quality. this study supports the results of previous research conducted by muliawan (2018) which states that food quality has a positive influence on repurchase intention. chatime has been able to improve and maintain the quality of its products based on its various dimensions. research that states the same thing is that conducted by faradiba & astuti (2013), hermanto & cahyadi (2015), harfania (2018), which states that there is a positive and significant effect on product quality (food) on repurchase intention. the results of this study indicate that consumers consider chatime to be able to serve drinks with good or quality food quality, which makes consumers' repurchase intention to increase. in this study, chatime, which has a superior product in the form of tea drinks with toppings on it, can be measured for quality using indicators of color and taste. this is because the color combinations in chatime products are always interesting and different from one another and this is able to make consumers feel that these products are of good quality. next on the taste indicator, chatime with the characteristic of selling cold drinks is able to provide a fresh taste for consumers who consume its products, this indicates that the products offered by chatime are of good quality. the results of the analysis show that overall respondents agree that chatime is able to serve drinks with a fresh taste, this shows that chatime always serves quality drinks. the majority of respondents in this study were women aged 21-25 years. teens have a tendency to like to buy, or consume something based on a growing trend (cnnindonesia.com, 2018). women who are the the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 72 majority of respondents also support the results of this study, in which women have a high emotional side so it is very important for a woman to pay attention to the little things that will be consumed (marsellita, priska viani & veranita goenawan, 2008). the results of this study indicate that perceived value has no effect on repurchase intention. this cannot prove the theoretical concept of kotler (2009: 235) which states that high repurchase intentions represent a high level of satisfaction from consumers based on the perception that the desired product or service is of good quality. the results of this study do not support the results of previous studies by pham et al., (2018), tresna et al., (2019), huang et al., (2019), nhi et al., (2019), and frendy (2013) which states that perceived value has a positive and significant effect on repurchase intention. companies are required to be able to increase comfort and reduce non-monetary costs incurred by consumers such as time and energy which aim to increase the perceived value of the customer, which is in accordance with the results of the above research which states that if the perceived value increases, the consumer's intention to do repeat purchases will also increase. the results of the analysis show that the majority of respondents feel that the sacrifices issued are not in accordance with the perceived products and services. the majority of respondents in this study were adolescents with professions as students or college students. chatime carries the concept of a take away caffe, which makes consumers have to bring home products that have been purchased, or cannot consume them at the outlet where the purchase is made. most of chatime's outlets are located in malls and the size of the outlets is not too large, making chatime employ not too many staff at each of its outlets. this makes buyers have to queue for quite a long time. the company's operational management system must be paid more attention, given the endless queues of chatime buyers, and the relatively slow service process that makes consumers feel that the value received is not in accordance with the sacrifices made. responding to the above, the company must think about other things that can provide added value to customers, the company must pay attention to the operational system in serving consumers so that it is in accordance with the sacrifices issued by consumers. consumers will feel satisfied and have repeated purchase intentions if after the first purchase the consumer feels that the sacrifice incurred is proportional to the product received. the results of this study indicate that csr has no effect on customer satisfaction. this is able to prove the theory by lupiyoadi (2001: 122) which states that there are 5 driving factors for customer satisfaction, and csr is not one of them. this shows that the company's csr programs cannot affect customer satisfaction. the results of this study do not support previous research conducted by loureiro et al., (2012), chung et al., (2015), and by nareeman & hassan, (2013) showing that csr in the environmental sector has the highest impact on satisfaction. consumer. this is different from what happened in this study which used philanthropy responsibility as an indicator to measure the csr variable, which was adjusted to the csr program carried out by the object of research, namely chatime. in this research, chatime runs a csr program by distributing its products to people affected by the covid-19 pandemic, and inviting the public to share chatime products with online motorcycle taxi riders. this is of course not directly related to chatime products consumed by consumers, so that the csr program cannot increase consumer satisfaction. the majority of respondents in this study were aged 21-25 years, at which age the respondents were less interested in joining a program that had to spend a certain amount of money (czap, 2010) (kristando & indarwati, 2021). respondents in this study considered that their level of the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 73 satisfaction with chatime was not influenced by the csr program being implemented, but rather on the products and services that chatime provided to consumers. the results of this study indicate that food quality has an effect on customer satisfaction. this is able to prove the theory by lupiyoadi (2001: 122) that there are 5 factors driving customer satisfaction, and product quality is one of the factors driving customer satisfaction. in this study, consumers were satisfied with the food quality of the products served by chatime. this study also supports the results of previous studies by berliansyah & suroso (2018), ha & jang (2010), weliani (2017), and muliawan & m (2018) which stated that food quality has an effect on customer satisfaction. hidayat et al., (2020) stated that company management must be able to provide innovation in the beverage product variants offered, and increase the portion size of food served. this is an effort made to maintain consumer satisfaction with food quality. the results of research by hidayat et al., (2020) are in accordance with what chatime did in this study. chatime currently has more than 40 menu variants that are always increasing, and innovating according to consumer tastes and needs. the results of the analysis show that overall respondents feel that they agree with the expression that the taste of a drink can affect the quality of the drink. this is because taste is the main thing that influences consumer perceptions of the quality of a drink which in turn can provide consumer satisfaction with chatime products that have been consumed. the results of this study indicate that perceived value has an effect on customer satisfaction. this proves the theory by lupiyoadi (2001: 122) that there are 5 factors driving customer satisfaction, one of which is emotion. emotional factors are factors that contain things that consumers feel about the products they consume or the companies that make them. the results of this study support the results of previous studies conducted by abdul raji, mohd nazri et al., (2016), and frendy (2013) which state that there is a positive and significant relationship between perceived value and customer satisfaction. this shows that chatime consumers feel the value obtained from consuming chatime products can encourage consumer satisfaction. chatime is considered capable of providing a good emotion to consumers when consumers have consumed the product, thus leading to consumer satisfaction. overall respondents agree that the products and services provided by chatime are worth buying even during the covid-19 pandemic. this shows that chatime is able to maintain the quality of products and services that can provide value to the minds of consumers even during the covid-19 pandemic. chatime has succeeded in maintaining the value felt by consumers so that it is able to encourage consumer satisfaction with the products and services provided. chatime must be able to maintain and improve this, considering that during the pandemic, business competition is getting tighter and more difficult, so only products that can be consistent can survive. then the results show that customer satisfaction has an effect on repurchase intention. the results of this study are able to prove kotler's (2009: 235) theory states that high repurchase intentions represent a high level of satisfaction from consumers based on the perception that the desired product or service is of good quality. the results of this study support the results of previous research by berliansyah & suroso, (2018), hidayat et al., (2020), weliani (2017), leonnard (2018), and frendy (2013) which explain to increase consumer repurchase intention, management. the upper level must pay attention to consumer satisfaction, this can be realized by improving the quality of food and beverages, as well as considering appropriate prices for the products offered. respondents of this study felt that chatime as a producer of contemporary drinks was able to serve products that were in accordance with consumer expectations, and was able to meet their needs. consumers who feel their the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 74 needs are met will be satisfied with the products and services received from these producers. customers of chatime products are satisfied and have a higher intention to buy back chatime products in the future. the results of the analysis show that overall respondents agree that they are always satisfied with chatime's bubble drink products and services even during the covid-19 pandemic. this shows that the performance of chatime's products and services has not changed even during the pandemic, which is able to make consumers feel satisfied. in this study, the respondents used were chatime consumers who had purchased chatime products in the last three months (since november 2020) and some of the respondents had made purchases more than once during that time. this shows that chatime consumers are satisfied with the products and services provided by chatime, so they always make repeat purchases. conclusion based on the data and discussion above, it can be concluded that csr has no effect on repurchase intention or on customer satisfaction. the food quality variable in this study has an effect on repurchase intention, as well as on the customer satisfaction variable. the variable perceived value in this study has an effect on customer satisfaction, but has no effect on the repurchase intention variable. next, the customer satisfaction variable has an effect on repurchase intention. the role of customer satisfaction (z) as a mediating variable in this study is able to mediate the relationship between the food quality variable on repurchase intention, as well as the variable perceived value on repurchase intention. the results differ on the relationship between the csr variable on repurchase intention which cannot be proven by the influence of the mediating variable on this relationship. the csr variable in this study has no effect on repurchase intention and customer satisfaction. seeing the above, chatime must develop a csr program that is run into a sustainable program, or not only for certain periods. chatime can also develop csr programs that are not only in the philanthropic field but also in other fields such as the environmental sector which is adjusted to the characteristics of chatime's target market, namely adolescents. however, chatime was able to keep the quality of the products it sold at its prime during the pandemic. food quality is one of the driving factors for customer satisfaction that companies must pay attention to, in this case chatime has implemented it well. next, the value felt by chatime's customers is only able to encourage customer satisfaction, this is because of the quality of the products consumed. chatime consumers think that what is received is not worth the sacrifices spent to get chatime products. companies need to pay attention to consumer convenience when queuing when buying, as well as evaluate the company's operational management system so that consumers don't queue too long. this is in accordance with the opinion of kotler (2009: 235) which states that high repurchase intentions describe a high level of satisfaction from consumers based on the perception that the desired product or service is of good quality. the problem in this study is to find respondents in each area where chatime outlets are located, there are several provinces where chatime outlets are located in indonesia that are not accessible to researchers so that there are no respondents who come from these areas, for the next researchers are expected to be able to reach all areas where chatime outlets established in indonesia are needed to support research. the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.21009/jobbe.004.2.01 75 references arief, a. m. 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(2017). analisa pengaruh food quality, service person customer orientation, dan physical environment, terhadap repurchase intention, melalui customer satisfaction. ultima management, 7(1), 39–61. https://doi.org/10.31937/manajemen.v7i1.923 the effect of corporate social responsibility (csr), food quality, and perceived value on repurchase intention through customer satisfaction as intervening variables in the pandemi covid-19 era (study on "chatime" bubble drink products). https://doi.org/10.21009/jobbe.005.1.04 muhajir, m.v., indarwati, t.a. journal of business and behavioural entrepreneurship, 5(1), 60-77 https://doi.org/10.7232/iems.2016.15.2.173 https://doi.org/10.1504/ijtgm.2019.101560 https://doi.org/10.1504/ijtgm.2019.101560 https://doi.org/10.1007/s10660-015-9207-2 https://doi.org/10.1007/s10660-015-9207-2 https://doi.org/10.31937/manajemen.v7i1.923 https://doi.org/10.21009/jobbe.004.2.01 109 abstract pt bank pembangunan daerah jawa timur tbk or bank jatim, bank jatim was establised on august 17, 1961 in surabaya. as a bumd, bank jatim is the largest bank in east java. the goal of this research is to examine and analyze the impact of employee’s perceived organizational support on work engagement through job crafting at the general division in bank jatim surabaya. this study is a causal research of quantitative approach. a total of 56 respondent are used for the sampling technique. with the support of smartpls v.3.6.2 software, the statistical analysis used in this research is partial least square (pls). the analysis outcomes indicate that perceived organizational support has a significant positive effect on work engagement, perceived organizational support has a significant positive effect on job crafting, job crafting has a significant positive effect on work engagement, and job crafting has successfully mediated the effect of perceived organizational support on work engagement. keywords: job crafting, perceived organizational support, work engagement received: 27 april 2021; accepted: 2 june 2021 ; publish: june 2021 how to cite: alfatekha, l.o., budiono. (2021). the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). journal of business and behavioural entrepreneurship, 5(1), 109-126. https://doi.org/10.21009/jobbe.005.1.07 the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya) lady oktafia alfatekha w faculty of economics and business, state university of surabaya, indonesia email: lady.17080574061@mhs.unesa.ac.id budiono faculty of economics and business, state university of surabaya, indonesia email: ec.budiono@unesa.ac.id https://doi.org/10.21009/jobbe.004.2.01 110 introduction experts agree that the level success of a company is measured by the quality of its human resources. the development of advanced technology is so fast that makes employees are required to be able to recognize their competencies, this is useful to support their performance because it can have a significant impact on the performance of daily tasks (leni, 2018). a study conducted by gallup on "the relationship between engagement at work and organizational outcomes" in 2020 explains that a business with the highest level of employee engagement in all businesses contained in the database gallup has an 83% chance of having the highest performance above average. this, when compared with the 17% chance for those with the lowest level of employee involvement (harter et al., 2020). that research is also supported by rahman (2016) which states that engagement focuses on ways of working that have an impact on employees (individual results) and the long-term sustainability of the organization. based on this research, it can be seen if work engagement at the company is a very meaningful matter. employees who are involved in their work will feel excited, feel proud of what they are doing, time at work passes quickly and they have a sense of personal satisfaction (fazlurrahman et al., 2020). there are three factors that can influence work engagement according to rakhim's research (2020) namely job demands, job resources, and personal resources. this opinion can be understood that the three factors mentioned have something to do with job crafting and the perceptions that employees feel about organizational support. personal resources refer to behavior job crafting and job resources related to pos. job crafting itself is an attitude that can inspire employees to be more dedicated to their work with high attention and energy (park et al., 2020). this can be interpreted that job crafting has an influence on work engagement (park et al., 2020). this statement is supported by research from ogbuanya & chukwuedo (2017), monita (2020), albana (2018), and syah (2020) where job crafting has a significant positive effect on work engagement. however, this statement is different from research from aldrin & merdiaty (2019) which states that there is no proven effect of work craft on work engagement. this proactive attitude is intended to better align work with personal characteristics (saragih.s et al., 2020). when employees face their work positively, they feel their work is personally meaningful, feel they can manage their workload well, and have a good future (lely & dwiarko, 2020). thus, pos is considered as one of the factors influencing job crafting because pos encourages employees to be more creative, obtain more resources and change the meaning of their work (saragih.s et al., 2020). this expression is in line with research by mallick (2018), and park et al. (2020) which explains if there is a positive influence between perceived organizational support on job crafting. however, it is inversely proportional to the research of saragih.s et al., (2020) which states that there is no statistically significant relationship between pos and job crafting. not only job craftingis able to influence work engagement, pos focusing on a universal belief that the company contributes and ignores the welfare of its employees also affects work engagement (saragih & margaretha, 2013). the pos leads to positive results for work engagement because employees with a large pos allow them to feel enthusiastic and give full dedication to helping achieve organizational goals (saragih & margaretha, 2013). in line with this research, other research that supports the pos statement has a positive influence on work engagement, including research alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 https://doi.org/10.21009/jobbe.004.2.01 111 from alfajar (2020), imran et al. (2020), showkat (2020), tan et al. (2020), and mustika & rahardjo (2017). however, in contrast to research from sulistyo (2017), it has no significant positive results on the effect of perceptions of organizational support on work engagement. the research results above are in accordance with the phenomenon that occurred at bank jatim surabaya head office which is the object of this research. bank jatim surabaya head office is the largest bumd in east java. in managing its employees, bank jatim surabaya revitalizes employees to become superior, independent, competitive and professional employees. employee competence is improved through the provision of seminars/training/workshops and socialization in accordance with employee needs in order to produce human resources who are able to seek business opportunities and are able to execute well so that employees can provide support in order to achieve the vision and mission of bank jatim. bank jatim employees are given the same career opportunities in selecting career programs in accordance with the conditions imposed (https://bankjatim.co.id/en, 2021). a different opinion was conveyed by one of theemployees business partner in thedivision, human capital explaining that based on the employee assessment in 2020, especially regarding employee engagement, there are still employees who havestatus dissengaged. the following are the results of employee engagement in 2020 as a whole, namely there are 53% of employees withstatus actively engaged (employees who contribute fully and have great satisfaction in their work) 25% withstatus potentially engaged (employees who tend to lower their performance if they are still not satisfied with the organization),7% have astatus passively engaged (employees who have not fully contributed to the company's success), and 7% have astatus disengaged (employees who feel underutilized, and do not get what they need from work). the cause of employees with thestatus disengaged highestis due to the lack of support felt by employees regarding the provision of training from companies that are carried out online due to the pandemic so that employees feel less benefit from the training. however, the 7% figure has shown a decrease compared to 2019 where 16% of employees havestatus disenggaged. this shows that bank jatim surabaya head office has done a good job of improving the quality of its employees. meanwhile, the general division also has several employees whosehas decreased work engagementdue to retirement age and the factor of saturation with their work because they have been working on the same job for too long for many years. however, bank jatim continues to improve the quality of employee performance continuously so as to create employees who contribute and are fully committed to the company. the bank provides support, one of which includes periodic salary evaluations, promotions and transfers if needed, improvement of facilities including health facilities, providing interesting training related to the job desk, and creating creative corner rooms. everything is intended to create a staffing program that is as current as possible to make it easier for employees to do their jobs. this research has a purpose to test and analyze the effect of perceived organizational support onvariables work engagement for employees of the general division of bank jatim surabaya head office, test and analyze how the influence of perceived organizational support onvariables for job crafting general division employees of bank jatim surabaya head office, to test and analyze the effect of the job crafting variable on thevariable engagement employeeof the general division of bank jatim surabaya head office, as well as to test and analyze the effect of perceived organizational support on work engagement through job crafting for employees of the general division of bank jatim surabaya office center. job crafting itself is an attitude that can the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 112 inspire employees to be more dedicated to their work with high attention and energy (park et al., 2020). this can be interpreted that job crafting has an influence on work engagement (park et al., 2020). this statement is supported by research from ogbuanya & chukwuedo (2017), monita (2020), albana (2018), and syah (2020) where job crafting has a significant positive effect on work engagement. however, this statement is different from research from aldrin & merdiaty (2019) which states that there is no proven effect of work craft on work engagement. this proactive attitude is intended to better align work with personal characteristics (saragih.s et al., 2020). when employees face their work positively, they feel their work is personally meaningful, feel they can manage their workload well, and have a good future (lely & dwiarko, 2020). thus, pos is considered as one of the factors influencing job crafting because pos encourages employees to be more creative, obtain more resources and change the meaning of their work (saragih.s et al., 2020). this expression is in line with research by mallick (2018), and park et al. (2020) which explains if there is a positive influence between perceived organizational support on job crafting. however, it is inversely proportional to the research of saragih.s et al., (2020) which states that there is no statistically significant relationship between pos and job crafting. not only job craftingis able to influence work engagement, pos focusing on a universal belief that the company contributes and ignores the welfare of its employees also affects work engagement (saragih & margaretha, 2013). the pos leads to positive results for work engagement because employees with a large pos allow them to feel enthusiastic and give full dedication to helping achieve organizational goals (saragih & margaretha, 2013). in line with this research, other research that supports the pos statement has a positive influence on work engagement, including research from alfajar (2020), imran et al. (2020), showkat (2020), tan et al. (2020), and mustika & rahardjo (2017). however, in contrast to research from sulistyo (2017), it has no significant positive results on the effect of perceptions of organizational support on work engagement. the research results above are in accordance with the phenomenon that occurred at bank jatim surabaya head office which is the object of this research. bank jatim surabaya head office is the largest bumd in east java. in managing its employees, bank jatim surabaya revitalizes employees to become superior, independent, competitive and professional employees. employee competence is improved through the provision of seminars/training/workshops and socialization in accordance with employee needs in order to produce human resources who are able to seek business opportunities and are able to execute well so that employees can provide support in order to achieve the vision and mission of bank jatim. bank jatim employees are given the same career opportunities in selecting career programs in accordance with the conditions imposed (https://bankjatim.co.id/en, 2021). a different opinion was conveyed by one of theemployees business partner in thedivision, human capital explaining that based on the employee assessment in 2020, especially regarding employee engagement, there are still employees who havestatus dissengaged. the following are the results of employee engagement in 2020 as a whole, namely there are 53% of employees withstatus actively engaged (employees who contribute fully and have great satisfaction in their work) 25% withstatus potentially engaged (employees who tend to lower their performance if they are still not satisfied with the organization),7% have astatus passively engaged (employees who have not fully contributed to the company's success), and 7% have astatus disengaged (employees who feel underutilized, and do not get what they need from work). the the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 113 cause of employees with thestatus disengaged highestis due to the lack of support felt by employees regarding the provision of training from companies that are carried out online due to the pandemic so that employees feel less benefit from the training. however, the 7% figure has shown a decrease compared to 2019 where 16% of employees havestatus disenggaged. this shows that bank jatim surabaya head office has done a good job of improving the quality of its employees. meanwhile, the general division also has several employees whosehas decreased work engagementdue to retirement age and the factor of saturation with their work because they have been working on the same job for too long for many years. however, bank jatim continues to improve the quality of employee performance continuously so as to create employees who contribute and are fully committed to the company. the bank provides support, one of which includes periodic salary evaluations, promotions and transfers if needed, improvement of facilities including health facilities, providing interesting training related to the job desk, and creating creative corner rooms. everything is intended to create a staffing program that is as current as possible to make it easier for employees to do their jobs. this research has a purpose to test and analyze the effect of perceived organizational support onvariables work engagement for employees of the general division of bank jatim surabaya head office, test and analyze how the influence of perceived organizational support onvariables for job crafting general division employees of bank jatim surabaya head office, to test and analyze the effect of the job crafting variable on thevariable for work engagement employees of the general division of bank jatim surabaya head office, as well as to test and analyze the effect of perceived organizational support on work engagement through job crafting for employees of the general division of bank jatim surabaya office center. literature review perceived organizational support rhoades & eisenberger (2002) define organizational support experienced by employees as a whole as a belief about the extent to which the company is able to appreciate the contribution and concern for the welfare of its employees. afzali et al., (2014) argue that perceived organizational support (pos) basically refers to a reciprocal social exchange relationship between employers and employees, which emphasizes the quality of the relationship. demir, (2015) argues that organizational support refers to workers' perceptions of whether an organization cares about the welfare and contributions of its employees. perceived organizational support means the need for social affection, effort, commitment, and individual loyalty recognized by that organization (hoa et al., 2020). pos according to stinglhamber et al (2020) is a social exchange process in which employees feel obliged to help the organization achieve its goals and expect their increased performance or efforts on behalf of the organization to be rewarded. pos is also known as an important feature to increase personnel self-initiation and positive behavior for work (chiang & hsieh, 2012). in tjandra's research, hans. et al., (2018) explained that there are 8 indicators used to measure the level of thevariable pos, namely (1) the company is able to appreciate employee contributions, (2) the company is able to appreciate the extra effort that employees have given, (3) the company has paid attention to everything complaints from employees, (4) the company is very concerned about the welfare of employees, (5) the company will notify employees if they do not do a good job, (6) the the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 114 company cares about the general satisfaction of employees' work, (7) the company shows great concern towards employees, and (8) the company feels proud of the success of employees at work. job crafting tims & bakker (2010) describe job crafting as an adjustment made by employees in equating work demands and resources according to the needs, abilities, and individual preferences of employees. job crafting means a process when employees take part in changing the cognitive, social and physical tasks of their work according to slemp & vella-brodrick (2014). tims & parker (2020) assumes job crafting as an individual-level process driven by individual motives to maintain a positive self-image, increase the meaning of work, or improve one's well-being and performance. job crafting is rooted in the theory of self-determination, in which autonomous self-regulation creates a link between craft work and fulfillment of needs, namely feelings of value and meaning (hu et al., 2020). petrou et al., (2015) define job crafting as the initiative and willingness of employees to reconstruct aspects of their work, with the aim of improving their working conditions. job crafting is also defined as an effort to change work boundaries, work relationships and the meaning of work for the benefit or convenience of the employees themselves (kanten, 2014). work craft describes behavior that involves employees, on their own initiative, where they change aspects of their work and work environment (demerouti, 2014). the indicator job crafting in nguyenresearch et al (2019)'shas 3 indicators, namely task crafting related to modifying tasks given by superiors, relational crafting involving with whom, when and how employees interact with coworkers, and cognitive crafting related to modifying the way employees view of their work. work engagement crawford et al (2010) argue that work engagement is about how an employee exploits themselves in an organizational role by converting their energy into emotional, cognitive and physical work. work engagement is a motivational concept, because employees allocate personal resources for their work tasks (decuypere & schaufeli, 2020). truss et al (2011) suggested that work engagement is a positive reaction of employees when carrying out their work, which consists of: willingness to contribute intellectual effort, experience positive emotions and have a meaningful relationship with others. work engagement is an important feature that emphasizes employee insight into their work regarding how employees pay attention to their work, the end result obtained will increase their creativity and can provide more dynamic results in their workplace (mubarak & noor, 2018). in sitorus' research (2018), he defines work engagement as a condition in which a person feels satisfied and thinks positively in his work which is characterized by enthusiasm (vigour) related to the level of enthusiasm and enthusiasm in doing work and facing difficulties, dedication (dedication) related to a sense of pride and enthusiasm. inspired by their work, and high absorption in doing work (absorption) related to employees who drift and find it difficult to break away from their work. the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 115 relationship between variable figure 1 conceptual research data processed (2021) the effect of perceived organizational support (x) on work engagement (y) pos can push companies towards positive results for work engagement because employees with large pos allow them to feel enthusiastic and able to give full dedication to helping achieve organizational goals (saragih and margaretha, 2013). other research that supports pos statements that have a positive influence on work engagement includes research from alfajar (2020), imran et al (2020), showkat (2020), mufarrikhah et al (2020), sitorus (2018), a. dwitasari et al. al (2015), tan et al (2020), and mustika & rahardjo (2017). however, in contrast to research from (yulivianto, 2019) and sulistyo (2017), the results were not significantly positive on the effect of perceptions of organizational support on work engagement. h1: it is suspected that perceived organizational support has a positive influence on work engagement. positive treatment at work can create positive employee emotions that support employees to carry out positive voluntary behavior (for example, work craft or job crafting) for the organization (saragih, susanti. et al, 2020). this is supported by the results of research from (kim et al., 2017), mallick (2018), cheng & o-yang (2018), park et al. (2020), and zhang & zhang (2021), who explained that there was a significant positive effect between perceived organizational support on job crafting. research conducted by kim et al., (2018) states that pos has a positive effect on cognitive crafting but has no effect on task crafting and relational crafting. furthermore, in the study of saragih.s, et al. (2020) and kanten (2014) which state that there is no statistically significant relationship between pos and job crafting. h2: it is suspected that perceived organizational support positively affects job crafting. job crafting is also one of the behaviors that can inspire employees to be more dedicated to their work with increased attention and energy (park et al., 2020). this means that job crafting has a positive influence on work engagement (park et al., the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 116 2020). this statement is supported by research from ogbuanya & chukwuedo (2017), monita (2020), albana (2018), frederick & vanderweele (2020), stephani & kurniawan (2018), sharma & nambudiri (2020), azizah & ratnaningsih (2018) , and shah (2020) that job crafting has a significant positive effect on work engagement. research from aldrin and merdiaty (2019), setyawati & nugrohoseno (2019) and fazriati & budiono (2017) states that there is no proven effect of work craft on work engagement. h3: it is suspected that job crafting has a positive influence on work engagement. when employees view the organization's efforts positively including support for career development, employees will tend to respond by being deeply involved in their work (showkat, 2020). employees with high pos are motivated to do better and achieve more (tan et al., 2020). this is part of the reciprocal norm to assist the organization in achieving its goals (imran et al., 2020). in addition, pos also plays a role in determining employee attitudes and behaviors such as strengthening cognitive and emotional evaluations of their work (cheng & o-yang, 2018). pos encourages employees to get additional resources by utilizing job crafting (mallick, 2018). positive treatment at work can also create positive emotions for employees to carry out positive voluntary behavior (job crafting) for the organization (saragih, susanti et al, 2020). in addition, job crafting is also one way that might increase work engagement, namely by involving employees on their own initiative, where they change aspects of their work and work environment (frederick & vanderweele, 2020). the findings of park et al., (2020) state that when workers feel that their organization supports their work and well -being, their perception of organizational support increases their willingness to find more resources and modify the cognitive boundaries of their work. thus, the job crafting behavior inspires employees to be more dedicated to their work with increased attention and energy (park et al., 2020). h4: it is suspected that job crafting mediates the effect of perceived organizational support on work engagement research methods this research belongs to the type of quantitative research. the research was carried out by the general division of bank jatim surabaya. the head office is located at jl. basuki rahmat no. 98-104. the system for collecting information or data by distributing research questionnaires with answers using a likert scale from 1 to 5 as a measurement scale, structured and unstructured interviews, and using the results of observations. the study population consisted of general division employees as many as 56 respondents. the sampling technique used saturated samples, which involved the entire number of employees of the general division of bank jatim headquarters with a sample size of 56 samples. this research was supported with the help of smartplssoftware version 3.0as a data analysis technique using partial least square (pls). the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 117 results and discussion following the description along with information based on the characteristics of the respondent including gender, years of service, and education to support this research. this study has a total sample size of 56 respondents, more specifically for men the number is 28 employees (50%) and 28 female employees (50%). employees with slta education are 11 employees (19.6%), s1 are 35 employees (62.5%), and s2 are 10 employees (17.9%). furthermore, for tenure, as many as 26 employees have worked in a range of 1-5 years (46.4%), 26 employees have worked in a range of 6-10 years (46.4%), and 4 employees who work in ranges above 10. years (7,1%). the calculation of the respondents 'average answers was assisted by the three box method in assessing the respondents' answers (mean), where number 1 means the low value and number 5 means the highest value. this the mean description for the pos indicator, namely 4.11 for the first indicator, 3.83 for the second indicator, 3.75 for the third indicator, 3.99 for the fourth indicator, 3.98 for the fifth indicator, as many as 3.91. on the sixth indicator, and as much as 3.84 on the seventh indicator, and 3.87 on the last indicator which is the eighth. the pos variable has a mean of 3.91 which is in the high category. then, the mean of respondents' answers to the indicators job crafting has a value of 3.77 on the indicator task crafting, 3.98 on the indicator relational crafting, and 3.96 on the indicator cognitive crafting. the variable job crafting itself has a mean of 3.91 which is in the high category. meanwhile, the indicator work engagement has a value of mean 3.89 on the indicator vigour, a mean of 3.98 on the indicator dedication, as much as 3.81 on the indicator absorption. work engagement has a mean of 3.89 where the value is high. convergent validity figure 2 shows the results of the validity test per item, showing that all indicators have an outer loading of more than 0.70. thus, each indicator has met the requirements and it declared effective or valid due to the value loading the factor is greater than 0.5. source: output of smartpls v.3.2.6 (2021) figure 2 measurement test model cronbach’s alpha & composite reliability the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 118 table 1 shows the reliability test values of the three variables using cronbach's alpha & composite reliability. the table shows that the variable pos has a cronbach's alpha 0.815 and a composite reliability 0.890, where the value is > 0.70. this means that the construct / variable has high reliability. the variable job crafting has a cronbach's alpha 0.955 then a composite reliability 0.963, greater than 0.70, which means that the variable has high reliability. work engagement has cronbach's alpha 0.937 and composite reliability 0.960, which is greater than 0.7. this means that these variables have high reliability. the explanation above can be understood that all variables / constructs have excellent composite reliability. table 1 cronbach’s alpha & composite reliability source: output of smartpls v.3.2.6 (2021) r-square analysis table 2 shows the value of r square on the effect of perceived organizational support on job crafting is 0.710. the value of the construct variable job crafting believed to be able to be explained by 71% of the variable, perceived organizational support while 29% of the causes can be interpreted by other variables which are not included in this research. furthermore, work engagement is influenced by perceived organizational support which has an r square value of 0.866 which can be interpreted if work engagement can be explained by 87% of the variables perceived organizational support and 13% explained by other variables not described in this study table 2 r square source: output of smartpls v.3.2.6 (2021) causality test can be seen in table 3, the effect of pos on work engagement has a statistical value of 4.699 ≥ 1.96. regarding this, explaining if pos has a significant effect on work engagement. in addition, the original sample has a value of 0.721 which means a positive sign and means that high pos action causes work engagement as well, and vice versa. cronbach’s alpha composite reliability perceived organizational support 0,815 0,890 job crafting 0,955 0,963 work engagement 0,937 0,960 r square job crafting 0,710 work engagement 0,866 the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 119 then, the impact of the pos on job crafting got a statistical value of 3,762 ≥ 1.96. this value shows if the pos has a significant positive effect on job crafting. while the original sample value is positive, which means that the better the pos, the better the job crafting is, and vice versa. furthermore, t statistics on the effect of job crafting on work engagement is 2.145, ≥ 1.96. regarding that, it can be interpreted if the job crafting positively affects work engagement. meanwhile, the value of the original sample was 0.235, meaning that if employees do a good job crafting , the better the work engagement. likewise about the opposite. meanwhile, related to the effect of pos on work engagement through job crafting, it has a t statistic of 2.465, greater than 1.96. this explains if the variable job crafting succeeds in mediating the influence of the pos variable on work engagement. sources: output of smartpls v.3.6.2 (2021) figure 3 measurement test boostraping model table 3 path coefficients & indirect effect diagram path original sample tstatistics information perceived organizational support → work engagement 0,721 4,699 ≥ 1,96 (significant) hypothesis is accepted perceived organizational support → job crafting 0,843 3,762 ≥ 1,96 (significant) hypothesis is accepted job crafting → work engagement 0,235 2,145 ≥ 1,96 (significant) hypothesis is accepted perceived organizational support → job crafting → work engagement 0,198 2,465 ≥ 1,96 (significant) hypothesis is accepted the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 120 the effect of perceived organizational support on work engagement at general division employee of bank jatim head office surabaya the results of the analysis conducted on pls show that pos has a positive influence on work engagement. from the results of observations and interviews at the general division of bank jatim surabaya head office conducted with one of the household staff explained that the leadership has given full trust and support to its employees to handle their respective jobs. in addition, a support program in the form ofhas been implemented rewards. this makes employees feel that they are given trust so that when doing work they become more comfortable, enthusiastic and enthusiastic. the results of this study are convincing if work engagement affected by perceived organizational support is significantly. that is, the higher the pos, the higher the work engagement. these results are in line with research from alfajar (2020) which proves that there is a significant positive correlation between pos and work engagement. research conducted by imran et al (2020) also shows that when employees feel valued and fully supported by their organization, employees feel a psychological, social, and emotional well-being which then leads them to high dedication to their work. furthermore, research from showkat (2020) also explains that there is a positive relationship between appreciation and recognition, perceived organizational support, work culture and work engagement. in addition, the research of tan et al (2020), (saragih and margaretha, 2013), a. dwitasari et al (2015), mufarrikhah et al (2020), sitorus (2018) and mustika & rahardjo (2017) also proves that pos has a significant and positive influence on work engagement. the effect of perceived organizational support on job crafting at general division employee of bank jatim head office surabaya hypothesis testing gives results that show that job crafting is positively influenced by pos. in this case, it means that if the crafting job has a good level, the pos will also be good. this research is in line with research that has been carried out by mallick (2018), park et al (2020), (kim et al., 2017), cheng & o-yang (2018), and research by zhang & zhang (2021) also explains that when if employees have a feeling that they have been supported by the company or superiors, thewill increase job crafting . research conducted by kim et al., (2018) states that pos has a positive effect on cognitive crafting but has no effect on task crafting and relational crafting. in contrast to the research of saragih.s et al., (2020) and kanten (2014) which state that there is no statistically significant relationship between pos and job crafting. if it is associated with the phenomenon of general division employees of bank jatim surabaya head office, based on the results of observations and interviews conducted on one of the household sub-division employees explained that all employees have implemented job crafting to modify their work to make it easier to work on. for example, in the print inventory section, there are nominative assignments once a month. so that employees record the nominative every day so that at the end of the month there is no need to write or record the nominative from the beginning again. this shows that employees modify the way they work according to the convenience of employees to make it easier to work. of course, employees get full support from the company to free their employees from work as long as their actions are in accordance with the rules and regulations imposed by the bank. the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 121 effect of job crafting on work engagement at general division employee of bank jatim head office surabaya based on the results of the pls hypothesis test, it shows that work engagement is positively influenced by job crafting. this means that the better the level of job crafting , the better the work engagement. as explained by one of the employees of the general division of bank jatim surabaya headquarters, employees feel these three indicators are very influential on work engagement, one of which was the working environment such as a friend or co-worker is important in the sustainability work is one which affects the ease of work and passion employee. when you haveco-workers supportive in one division, you can divide your work evenly and don't feel burdened by one of them. by dividing the tasks, it will be more cheerful and enthusiastic in completing the work because the work done is not done alone but is handled by all employees. the following research results explain thatvariables job crafting have a significant and positive influence on work engagement. the following are research results that support research (park et al., 2020), ogbuanya & chukwuedo (2017), monita (2020), albana (2018), frederick & vanderweele (2020), stephani & kurniawan (2018), sharma & nambudiri (2020), azizah & ratnaningsih (2018) and shah (2020) which state that job crafting has a significant and positive effect on work engagement. while, research from setyawati & nugrohoseno (2019) states that there is no influence between job crafting on work engagement because the application of job crafting is still not evenly distributed in all parts. the results of this study are supported by research from aldrin and merdiaty (2019), and fazriati and budiono (2017) which also states that there is no proven effect of work craft on work engagement. effect of perceived organizational support through job crafting against work engagement on employees are encouraged general division bank jatim surabaya head office the the results of the pls analysis show that job crafting is successful in mediating the effect of pos on work engagement. this is supported by research conducted by showkat (2020) when employees view the organization's efforts positively including support for career development, employees will tend to respond by being deeply involved in their work. this is part of the norm of reciprocity to assist the organization in achieving its goals (imran et al., 2020). in addition, pos also plays a role in determining employee attitudes and behaviors such as strengthening cognitive and emotional evaluations of their work (cheng & o-yang, 2018). positive treatment in the workplace can also create positive emotions for employees to carry out positive voluntary behavior (job crafting) for the organization (saragih, susanti et al, 2020). in addition, job crafting is also one way that might increase work engagement, namely by involving employees on their own initiative, where they change aspects of their work and work environment (frederick & vanderweele, 2020). then, research conducted by park et al (2020) states thatbehavior job crafting that arises because of feelings of support inspires employees to be more dedicated to their work. the same thing has happened to employees of the general division of bank jatim surabaya head office who explained that support from the company or superiors in the form of periodic salary evaluations, improvement of facilities including health facilities, providing interesting training related to their job desks, and creating creative the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 122 corner rooms that will make employees more comfortable at work. in addition, with the support of co-workers and doing tasks or making decisions by oneself also has an influence on comfort and enthusiasm to work for the company. the rewards provided by bank jatim have also been very good, so that employees are increasingly motivated to work and become more enthusiastic and enthusiastic. it can be proven by the number of employees who have worked for more than five years, it can be seen that general division employees have good work engagement . however, if you work too long and do the same thing every day, the employee will experience a saturation phase. when employees feel that their performance has decreased or are less enthusiastic when working, one of the methods the bank has taken to prevent its employees from being bored is by doing work rotations, both internal and external mutations. conclusion the results of the analysis in this study indicate that the four hypotheses are accepted, namely (1) perceived organizational support has a significant positive effect work engagement on researchon employees of the general division of bank jatim surabaya head office so that h1 is accepted, (2) perceived organizational support significantly positively influences job crafting. for employees of the general division of bank jatim surabaya head office so that h2 is accepted, (3) job crafting has a significant positive effect on work engagement for employees of the general division of bank jatim surabaya head office so that h3 is accepted, and (4) job crafting successfully mediates the effect of perceived organizational support for work engagement for employees of the general division of bank jatim surabaya head office so that h4 is accepted. recommendations that can be given based on the results of questionnaire analysis, interviews and observations are the need to improve the form of support companythat will be given to employees so that employees feel they have support in their work, one of which is by improving training programs that are deemed less useful because they are only carried out online. therefore, to meet the indicator that has a lower value than other indicators, namely "the organization has paid attention to complaints from employees" on the pos variable, the training program can be carried out as attractively as possible such as triggering employee activities to be more actively involved in training activities. themethod blended learning is one of the training that can be applied where this method combines elements of internet information technology with a class system. training participants can access the material and study it as if they were attending conventional training in general. materials can be accessed regardless of place or time, making them suitable for employees who have a personal agenda after work. this method is of course followed by a discussion forum to conduct a question and answer session if it is felt that they do not understand the content of the material. then, for the pos variable on the indicator "the organization shows great concern for employees" which has a lower average response value than other indicators, that can be done by increasing the provision of facilities for employees with the aim of supporting the convenience and comfort of employees in working so that they can improvebehavior job crafting and work engagement. examples of facilities that can be applied include providing comfortable work space layout facilities such as changing the layout of the work desk that can affect interaction between employees, improving the quality of work equipment such as computers and other work tools so that employees get the best quality at work. the provision of these facilities can create the effect of perceived organizational support on work engagement through job crafting (study at general division employees of bank jatim head office surabaya). https://doi.org/10.21009/jobbe.005.1.07 alfatekha, l.o., budiono. journal of business and behavioural entrepreneurship, 5(1), 109-126 https://doi.org/10.21009/jobbe.004.2.01 123 work effectiveness from employees so that employees feel comfortable and the spirit or work engagement itself will increase. further research is expected to be carried out on the object of bumn companies so that the research has a wider generalization area and can be developed to be more perfect. references afzali, a., amir arash, m., & loghman, h.-s. 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(2020) averred that micro, small and medium enterprises (msmes) requires to be financial literate in order to have the required information for sustainable business. this is not just accounting information, but financial education for all aspect of business value chain including marketing and sales, transport and logistics, production and warehousing. the concept of entrepreneur accounting explores the relationships between entrepreneurship activities and accounting skills taking into consideration of the behavioural patterns of entrepreneurs in financial literacy (hanif et al., 2019). the concept, therefore, emphasises the importance of financial capabilities in the aspect of planning, business control, cash management, budgeting and forecast, and taxation in business ventures, especially e small and medium enterprises. sernett (2014) noted that the survival or failure of an enterprise is hinged on the accounting or financial literacy of the entrepreneurs. founders of new businesses seem to always focus on the innovation and marketing of new products, and slightly forget the financial management aspect of a business. this is played out in most agtechs crowdfunded schemes in nigeria where founders unexpectedly received overwhelming investment funds that were eventually mismanaged due to in most part entrepreneurial accounting skills inadequate. how can eliminate such monumental loss of more than n200 billion (olaoluwa, 2021) is the main reason to understand the importance of basic financial information to both entrepreneurs and investors. hence, the need for business owners/entrepreneurs to develop the necessary 3 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 management and cost accounting skills for business sustainability (okoye et al., 2017; hanif et al., 2019; wogboroma & amesi, 2021). given the importance of entrepreneurial accounting (ea) skills for the sustainability of smes in the project of growth and development of society, this research conducted a systematic literature review of the past ten years of this vital business management concept towards understanding the relationship between entrepreneurs and accounting skills which is central to business survival. six research questions were posed to address the impact of financial literacy or lack of it in business ventures for sustainability. the rest of this paper is divided into four sections. the next section described the method adopted by this paper in conducting the systematic review. this is followed by the result and discussion of the review as it relates to the 79 articles reviewed by answering all the questions posed. this research ends with a conclusion section which summarises the findings of the ea systematic review. literature review financial literacy theory: rationale for business sustainability the concept of financial literacy provides a theoretical foundation that informs our understanding of entrepreneurial accounting. empirical literature has shown that many smes owners or manager have little knowledge concerning basic accounting concepts like inflation rate, foreign exchange and interest rate, therefore, lack good financial decision making (grohmann, et al., 2015). kovács and terták (2019), ghasarma et al, (2017), henager and cade (2016) and grohmann, et al. (2015) described financial literacy as the knowledge and ability of an individual to manage finances for effective decision making. in a bid to provide more meaningful definition that incorporate dynamic global environment, in swiecka (2018), bechetti et al. (2013, pp. 817-836) defines financial literacy as “the process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of the financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being". the definitions can be divided into two important parts that underpin this research. first is that entrepreneur’s behaviour, culture and character regarding the financial knowledge and secondly the skills and ability to deploy this financial knowledge for sustainability of his/her enterprise. globalization has created many challenges and opportunities for smes, such as competition, international market, human resources, investors and increase social network. lack of or inadequate knowledge of basic accounting information therefore may pose threat to the life span or the sustainability of businesses (cho and lee, 2018; naradda et al., 2020; domi and domi, 2021). financial literacy or financial education is said to play a significant role in improving investment decisions (deepak et al., 2015), reducing financial crisis in a nation (kovács and terták, 2019) and provide improved wellbeing of entrepreneurs (thomas and gupta, 2021). the financial literacy concept has been measured in different dimensions by researchers. for example, henager and cude (2016) measured the concept 4 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 in three ways: (1) objective knowledge, (2) subjective knowledge and (3) management ability. while zait and bertea (2014) view financial literacy in five dimensions, namely: (1) financial knowledge, (2) financial communication, (3) financial ability, (4) financial behaviour and (5) experiences and confidences. given the role of this important concept in relation to entrepreneurial accounting, an understanding of basic accounting information will help entrepreneurs as well as investors alike to creating sustainable businesses. research method this empirical study utilized the systematic quantitative assessment technique (sqat) as developed by pickering & byne (2014) to conduct a systematic review of scholarly articles on entrepreneurial accounting (ea) over a decade (2012 – 2022). the sqat method allows researchers to use recommended five steps process in systematically reviewing published journals and producing a quantitative summary of a subject matter. the five steps are: 1) define your topic scope, 2) articulate research questions, 3) recognise the keywords or combination of words, 4) identify and search the right database and 5) review and synthesize journal publications. following these steps in this research, first, we identify keyword combinations of “entrepreneurial accounting”, “entrepreneurial financial literacy” and “sme financial literacy”. then the following research questions were posed: 1) when were the ea articles published? 2) has there been scholars’ interest in ea across the geographical location of the world? 3) what has been the focus of scholars in ea articles, theory development (conceptual) or empirical testing? 4) what are the different types of data collection methods employed? 5) are there new theories developed and which are discussed? 6) what subject matters (themes) were explored by these articles and their findings? in collecting the articles used in this systematic review, the keywords (“allintitle: entrepreneurial accounting”; “allintitle: entrepreneurial financial literacy”; and “allintitle: sme financial literacy”) were searched on google scholars. we then proceed to browse the title and abstract of these articles for relevance to ea. a total of 131 ea articles were collected and reviewed. however, some inclusion criteria were applied: first, the study excluded book chapter, working papers and reports. to increase the sample size, journal articles were not categorized by publishers. all the searches and reviews were concluded on april 25, 2022. the next section of this paper provides detailed findings of the systematic review to answer each research question. results and discussion when were the ea articles published? figure 1 presents the time distribution of the published articles in 79 ea journals reviewed for this study. it can be observed that scholarly interest started waxing strong from 2016 to 2020, even though previous years witness four publications in 2012 and 2014. also, two publications in 2013. by 2015, it seemed that scholarly attention has 5 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 moved with no publication. 2018 witnessed a surge from seven to 18 publications and a spiked in 2020 to 20 published articles. but the publication took a dip in 2021 to just 9 articles. the number of published articles in 2022 cannot be considered as the only publication for the year as only the journals published during the first quarter of the year are considered. table 1 provide the general perspective of the research interest. figure 1: time distribution of ea articles over a decade. source: authors’ review (2022) table 1: general perspective of the ea article. research work objective database bratland (2012) the paper examines the divergence view in the respective calculation of capital and income by entrepreneurs and accountants in business enterprise. the need for entrepreneurs and investors to be well grounded in financial terms. laitinen (2014), abdullah et al. (2014) developing accounting graduates using simulation model to teach entrepreneurs traits and values in their mindset thus encouraging entrepreneurship. provide a basis for planning, developing and implement strategies to improve financial literacy. dragan et al. (2018) insights into the relationship between university curriculum and student’s entrepreneurial skills development as a predictor of innovative activities. the importance of creating a great university curriculum to 6 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 improve financial literacy. jean-claude et al. (2018) provide overview of how entrepreneurial skills and ability can utilized to improve the assess to capital. proper documentation of intangible assets of smes. ahmed et al. (2019) examine the role of social medial on entrepreneurial activities by providing required information and knowledge required for business sustainability. the importance of the availability of information and proper communication cannot be over emphasized. agyei (2018), ni’matulhoiro et al. (2020), wijayanto et al. (2020) investigate the effect of financial literacy on sme performance. the influence of the accounting information and human resources on sme performance. there exists a significant influence on performance of enterprises by financial literacy and accounting information usage. augustina et al. (2021) evaluate the effect of entrepreneurial attitudes of accounting students towards entrepreneurial intentions. entrepreneurial training sharpens the entrepreneurial intentions. source: authors’ review (2022) has there been scholars’ interest in ea across the geographical location of the world? in this part of the study, the geographical distribution of ea scholarly articles is presented in two groupings; 1) continent distribution and 2) countries distribution of the entrepreneurial accounting articles reviewed in this study. a review of the 79 ea articles revealed that asia has the highest representation with 32 (40%) articles as presented in figure 2. the closest to this is africa with 24 (30%) journal articles in the second position. europe came at a distant third with 12 (15%) ea articles, followed by north america with 8 (10%) and south america with 3 (4%). oceania had one (1%) published article within the reviewed period. there are 14 countries in oceania, and it is surprising to see that only one ea article reviewed in this study originated from these countries. also, the ea articles reviewed from south america (3) are rather too small for a developing continent with 13 countries. the obvious recommendation from this study for the future researcher is that more ea research needs to be conducted to provide perspectives on how important small businesses and entrepreneurs view accounting knowledge and financial literacy in these continents. 7 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 figure 2: distribution of journals by continent source: authors’ review (2022) another revelation from the review shows that asia and africa’s continent increased contributions to ea research significantly from 2018 to 2022. asia had 29 ea articles within this period which represent 48% (29) of ea articles published within the decade (2012 -2022). the same trend is noticed in the ea publications in africa, 40% of articles were published in the most recent period. this research finding (figure 3) is particularly of interest because, since the emergence of covid-19 global pandemic in 2020, 14 ea articles were published in asia alone and three ea articles were published in 2020 in africa. could there be a nexus between pandemic and entrepreneurial accounting? this could be a research gap that needs investigation. figure 3: ea publications between 2018 – 2022 source: authors’ review (2022) 8 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 geographical distribution based on country; 28 different countries were represented with at least a journal publication on ea. figure 4 presents the top eight countries with the most ea articles in this study. indonesia had the most published articles in this review with 16 published journals. nigeria came second with 10 ea articles, followed by the united state of america and malaysia with six ea articles each, followed by ghana with 4, brazil, tanzania and egypt rounded up the top eight with 3 ea articles each. figure 4: country distributions of ea articles. source: authors’ review (2022) table 2 shows the remaining 20 countries arranged based on the number of ea articles published in the country. table 2: remaining 20 countries with at least one ea article. s/ no. countr y num ber of ea articl es s/ no. count ry num ber of ea articl es 1 italy 2 11 canada 1 2 sweden 2 12 philipp ine 1 3 romani a 2 13 china 1 4 kenya 2 14 sri lanka 1 5 bahrain 2 15 iraq 1 6 finland 1 16 saudi arabia 1 7 france 1 17 tunisia 1 8 netherl and 1 18 south africa 1 9 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 9 ukraine 1 19 turkey 1 10 mexico 1 20 poland 1 source: authors’ review (2022) empirical findings from this review show that only 28 countries were represented which is quite low considering the number of countries on this planet earth. considering the number of countries in the world is stated to be 195 by worldometer. this presents an 85% research gap based on countries that need to be filled by future scholars as all these countries have entrepreneurs and/or small businesses for economic development. another intriguing finding is the dominance (79%) of the developing countries in the ea articles reviewed by this study over the last decade. one might argue that the developed nations have passed the stage of entrepreneurs learning the intricacies of accounting in starting a business or that the countries’ system takes care of small businesses regarding ea. these and more need to be explored to understand the wide disparity. what has been the focus of scholars in ea articles, theory development (conceptual) or empirical testing? for this study, all journal articles that discuss the fundamental building blocks for the understanding of the ea concept and/or develop new ideas to support the principle of financial literacy in entrepreneurial ventures are termed conceptual. while all ea articles that collect and process any form of data in their research were grouped as empirical papers. based on this arrangement, 79 articles used for this systematic review were divided into either empirical or conceptual as presented in figure5. figure 5: article types source: authors’ review (2022) figure 5 shows that the majority (82%, 65 articles) of the 79 ea articles reviewed were based on empirical research. these articles sought to test most underlying principles of ea in start-ups and small and medium enterprises. for example, ziatul & ilona (2022) 10 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 investigated the impact of financial literacy on the sustainability of smes; wogboroma & amesi (2021) explore the relationship between student self-sustainability and acquisition of entrepreneurial accounting skills. others investigated the impact of ea on marketing (putulowskki et al., 2021); entrepreneur behaviour (mudasih et al., 2021); women entrepreneurs (yasin et al., 2020) and self-employment (reyad et al., 2020).on the other hand, 18% of the ea article reviewed were based on conceptual research with authors providing background to the ea concepts (hanif et al, 2019; krisanto, 2020) and documenting recommendations as to the importance of ea to the sustainability of smes (e.g. al-sanafawy, 2021). figure 5 depicts the inequity in the reviewed ea journals in the last decade that just suggested the need for more concept development to form the basis for a better understanding of the significant importance of ea to entrepreneurship. what are the different types of data collection methods employed? the empirical study employs the use of data in research analysis, hence in answering this question only 65 empirical articles were considered. the seven different types of data collection methods used by the authors of these 65 empirical articles are presented in figure 6. figure 6: data collection method source: authors’ review (2022) figure 6 shows the obvious bias for the use of a survey in data collection methods for the 65 empirical journals reviewed. although some articles used a combination of these methods in their empirical analysis (e.g. anisuba, 2017; owusu et al., 2019; azim et al., 2020), the review indicates that the majority of the 65 articles (51 out of 65) employ survey as a means of data collection (e.g. mukhtar & envy, 2017; mabula & dongping, 2019; radianto et al., 2020; lizote et al., 2021; document analysis follow in a distant second with 18 articles, followed by secondary data with 10 ea articles. six ea articles 11 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 used the interview as a method of data collection, however, only 33% (2 out of 6) employed only interview as a method of data collection (mouritsen & pflueger, 2018; almeda et al., 2020). three articles rely on the strength of the observation method (situmorang et al., 2018; hanif et al., 2019; and krisanto, 2020), while one article employ the use of experimental learning (moreira et al., 2020) and ethnography (hanif et al., 2019). several ea articles reviewed combined two or more methods of data collection. for example, chen et al., (2016); anisuba (2017); nohong et al. (2019) combined survey and secondary data, while laux & stocken (2016) and owusu et al. (2019) combined both secondary and document analysis methods. one article combined interview, secondary data and document analysis (akroyd et al., 2019), while another one combined interview, observation, document analysis and ethnography to collect ea data (hanif et al., 2019). ea scholarly articles review depicted that majority of the 65 empirical studies use only survey (51 out of 65) as the method of data collection, that is over 78% of the ea articles. this method of data collection may often take a qualitative, quantitative and mixed approach to research analysis, however, there is a need to seek the use of combining different data collection methods in order to obtain an in-depth understanding of the subject matter being explored. the use of different sources of data collection reduces the potential biases that may occur in a mono-source study (zina, 2021). therefore, future research on ea should adopt the use of a combination of different data sources following the example of hanif et al. (2019) who employ four different sources. are there new theories developed and which were discussed? the analysis of the 79 ea scholarly articles revealed several theories used. a total of 32 theories formed the underlying discussion of 37 (46%) ea articles reviewed. although a significant number (54%, 54 out of 79) of the journal did not employ any theory in their analysis of entrepreneurial financial literacy. figure 7 presents the analysis of the topmost used theory. 12 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 figure 7: analysis of theory used. source: authors’ review (2022) the most used theory is the resource based theory (rbv) (7 out of 37) followed by the theory of planned behaviour (5 out of 37), then social theory (3 out of 37). institutional theory, socioeconomic theory and self-determination theory have 2 ea articles each. some other theories used in supporting the entrepreneurial accounting concepts are experiential learning theory (okafor & onwumere, 2012), mental accounting theory (ramesh et al. 2014), entrepreneurial orientation (andersen & samuelsson, 2016), complementarity theory (akroyd et al., 2019), contingency theory (dewi & widhiyani, 2020) and knowledge-based view (kbv) (kulathunga et al., 2020). the resource-based theory or view (rbv) was used to show emphasis the use of resources by an enterprise to improve performance and establish business sustenance (eniola & entebang, 2016; eniola & entebang, 2017) through a ‘complex financial’ decision-making process (utomo et al., 2020). the rbv postulates that efficient use of resources as input gives rise to an output that is influenced by decision making. that an enterprise with the capability to manage resources that are inimitable, rare, valuable and with no close subtitle will enjoy high growth and performance (agyei et al., 2019; utomo et al., 2020; zaitul and ilona, 2022). owusu et al. (2019) and kanaan-jebna et al. (2022) therefore noted that there exists a relationship between sme financial literacy and business performance that will enhance the sustainability of the business. the theory of planned behaviour (tpb) was used to describe the behaviour of an entrepreneur as a purposeful intention or desire to execute certain investment decisions using accounting information (bidin et al., 2012; rahmiyanti et al., 2020). these behaviours identify three dimensions: personal desire, social perception and behavioural control, towards entrepreneurial accounting and education (passoni & glavan, 2018; widjaja & dermawan, 2020). the social theory was used in identifying the activity and influence of the cultural and social practice within the society in the building and learning 13 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 process of an entrepreneur (mabula & dongping, 2019; ademilua et al., 2020; kistyanto et al., 2020). the institutional theory was used to explain the creation of business and entrepreneurship (delgado et al., 2017) as well as the importance of planning, a branch of management accounting, in smes (samuelsson et al. 2016). innovation is noted to be the key element in the development of smes, this represents how economic theory anchored ea in enterprises (anisiuba, 2017: ya, 2020). self-determination theory describes the individual motivation to succeed in business taking into consideration the internal and external (cultural and social) environment (almeda et al., 2020; ademilua et al., 2020). although several other theories were employed in the articles reviewed by this author. for example: agency theory and signal theory (shehab et al., 2021), perceived risk perception theory (kusumastuti et al., 2018), financial aliteracy theory (mwangi and cheluget, 2018) and person-environment fit theory (massaro et al., 2013). however, more than 50% of these reviewed articles did not employ any known theory as the basis of their research. see for example szafrańska and matysik-pejas (2012), duman et al. (2013), affes et al. (2014), lyons and bandura (2016), lam et al. (2016), khoza et al. (2017), oshi et al. (2018), reyad et al. (2019), razak et al. (2020) and mohammed (2021). hence, the need to postulate and test more theories in support of the importance of entrepreneurial accounting in smes. what subject matters (themes) were explored by these articles and their findings? five different ea themes were explored by the 79 articles reviewed in this study: 1) the ea impact on smes, 2) ea education/awareness, 3) ea and professional practices, 4) ea views on business issues and 5) factors affecting ea or financial literacy. figure 8 presents how the articles reviewed relate to each theme. figure 8: ea themes explored by 79 articles reviewed. source: authors’ review (2022) figure 8 shows that 39% (31 out of 79) of the articles reviewed explored the impact of ea on entrepreneurship particularly the importance of financial literacy and 14 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 accounting experience and practices on the performance and growth of business ventures (for example purwidianti & tubastuvi, 2019; oppi et al., 2020; kistyanto et al., 2020). the contribution of accounting skills and experiences are said to have a sustainable impact on the growth of an enterprise. these articles noted that there is a positive relationship between accounting knowledge or financial literacy and entrepreneur behaviour that influence the growth of smes (mudasih et al., 2021), enhances the economic status of smes managers and provides sustainable business (okoye et al., 2017). the second most discussed theme was entrepreneurship accounting education (eae), 33% (26 out of 79) of the articles reviewed found the contributory benefit of ea to developing knowledge and skills (e.g. hanif et al. (2019); reyad et al. (2020); fasae & adeosun (2021); wogboroma & amesi (2021). okoye et al. (2017) and mudasih et al. (2021) noted that eae is an important tool for smes growth and development in the face of a dynamic environment. especially cost accounting due to its usefulness in planning, controlling and decision-making process of businesses (salako & aremu, 2016). however, with the need to focus on the customer management aspect of business, al-sanafawy (2021) expatiate on the importance of management accounting for entrepreneurs. “techno-finance literacy” was noted by kulathunga et al. (2020) and mabula & dongping (2018b) to be very crucial in the business start-up due to the rapid digitalization of processes across business ventures, especially in the area of food security and sustainability (mustapha et al., 2022) . the 26 articles reviewed under the eae theme revealed that most challenges in the establishment of business enterprise can be addressed properly through entrepreneurship accounting education. the growth, development and sustainability of business are hinged on the financial literacy of the business owners. the third themes of the ea articles reviewed were ea professional practices and ea views on issues. both themes have 10 articles (13%) each. ea professional practice articles provide information on entrepreneurial accounting competencies of professional service providers in the area of planning, decision making and management (lizote et al., 2021), the factors that contributed to being a successful entrepreneurial accountant (almeda et al., 2020) and chen et al. (2016) provide an understanding of how a change in accounting standards and procedures impact entrepreneurs. regarding ea views on issues, agyei et al. (2019), explained the ea’s role in cultural values and the financial well-being of business owners. the effect of management accounting on competition, financial performance and entrepreneurial orientation were analysed (tanui, 2020) and the accounting valuation of smes (mouritsen & pflueger, 2018). the 79 articles revealed the important roles of ea in smes in preparing business owners against business and environmental uncertainties. several enterprises were affected by the covid-19 pandemic, however, very few that are grounded in cash management and management accounting practices survived the crisis. therefore, the ea research, education and knowledge sharing within entrepreneurs’ space is a continuous activity for smes to attain their economic potential. however, the ea knowledge gap can significantly be reduced through business cluster policy that seek to create networking opportunities among enterprises (jegede, 2020, ibidunni et al., 2020) which can lead to individual firm growth through innovation (mustapha, et al., 2021). 15 mustapha, i.k., et. al (2023). journal of business and behavioural entrepreneurship, 7(1), 1-22 conclusion this research provided a comprehensive review of the 79 ea and financial literacy articles published in the last decade to provide understanding regarding six research questions, in area of the time distribution, geographical location, conceptual development, method of data collection, adoption of existing theory and the theme explored by the authors. findings show that interest in ea has been growing over the last ten years with a giant spike in 2020 and that asia has been the most productive continent in terms of ea research, especially in indonesia. this review also revealed that empirical research was adopted by most of the ea articles, with the survey method understandably being the most used data collection method. although most of the 79 articles reviewed did not adopt any theory, however, rbv is the most underpinning theory adopted by a few articles. four subject matters were explored by the 79 ea articles reviewed establishing the important role of ea education being the most discussed theme. although this review tried to widen the search years for the ea article published, it is still limited to a decade in order to accommodate recent happening. also, books, working papers and reports were excluded from this review. the future reviewer may consider their inclusion and adopt a different approach to provide an all-inclusive representation of the research interest in ea by scholars. the review of ea articles has revealed that for smes to achieve growth, development and sustainability of businesses or entrepreneur ventures, the principle of entrepreneurial accounting education must be taken seriously with a deliberate effort by business owners. references abdullah, a., danila, r., & ibrahim, m. 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(2022). systematic literature review: an overview of digital agriculture for food sustainability. international journal of entrepreneurship and business development, 5(3) 430-446. 35 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 do performance appraisal, compensation andjob satisfaction influence employees’ loyalty of generation y? neela osman master of management program, faculty of economics, universitas negeri jakarta neelaosman@gmail.com dedi purwana faculty of economics, universitas negeri jakarta dpurwana@unj.ac.id ari saptono faculty of economics, universitas negeri jakarta saptono.fe@gmail.com abstract generationy is the work force of the future and now the number is dominating the industry.the increasing number of employees of generation y becomes a separate problem for the company in meeting the availability of young professional workforce. the research aims to investigate effect of performance appraisal, compensation and job satisfaction to loyalty of generation y.method used in this study was quantitative. the research sample was 117 students. data was anaysed using structural equation modeling (sem). this study reveals there are a positive relationship between performance appraisal with job satisfaction, compensation with job satisfaction and job satisfaction on loyalty. keywords: performance appraisal, compensation, job satisfaction,loyalty, and generation y introduction the future direction of companies in indonesia in the next few years will be in the hands of generation y, also known as millennial generation. by the year 2020 (next three years), this generation will dominate the industry with the number of productive age population reaches 70 percent of the total population, with an estimated population of about 262 million (bps 2013). the dominance of productive age or also known as demographic bonus (2020) can be a double-edged knife. if managed properly, demographic bonuses can bring indonesia into a brilliant future. conversely, demographic bonuses can also turn into a demographic disaster. especially if the millennia generation is not properly managed. the number of millennials in indonesia has reached 84 million people (data bps 2015) or 50 percent of the productive age population. behind the potential of human resources owned, companies in indonesia face the challenge to be able to manage human resources, especially generation y. according to antonius (chief product officer jobplanet), millennial generation or y generation has a negative stigma attached "prominent is free to choose a job and choose the business run, and often move the job". this is evidenced by the results of the jobplanet research related to generation y in the period august 2015 to january 2017, the results reinforce the stigma that the y generation totals over 90 thousand respondents, opting out after working one and two years. a study conducted by pwc (2011) through an online survey of 4,364 graduates in 75 countries revealed that 38% of millennia currently working say they are actively seeking different roles and 43% say they are open to offer. only 18% are looking forward to staying with their current 36 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 company for the long term. generationy or millennials look for new opportunities, even if they are not actively looking for new jobs. y generations’ unfaithfulness are also revealed by some of an earlier research by queiri et al. (2015), which explains why y-generation workers often change jobs, and finding work-life balance to be their goals, the survey shows that y's employees have the shortest working life compared to the generation x workforce and baby boomers. according to howe and strauss (1991) y generation (born 1980-1994), the current presumption of y genes is lacking in high commitment and loyalty in the workplace. according to research by othman and lembang (2017), shows that compensation can encourage employees' commitment to the organization, increase productivity and employees are willing to remain in the organization. in addition, effective performance appraisal and planning systems contribute to employee fairness perceptions and this greatly affects employees. employees who feel treated fairly by their employers are more likely to stay on their jobs than those who do not. so performance appraisal can not only improve employee performance but also influence employees' intention to stay in organization. however, other research results from queiri et al. (2015), says that there is no relation between earned income and job satisfaction with the desire of generation y to survive in the organization. according to research waqas et al. (2014) says there is a very strong relationship of giving fair compensation and in accordance with the desired employee in forming job satisfaction and from job satisfaction that created results with a relationship that is also large in the form of work loyalty. while research from ibrahim et al. (2016), there is a substantial effect of providing compensation to employees 'willingness to stay and loyal to the organization, while performance appraisals do not have an impact on employees' willingness to stay with the organization they work for.departing from the above, in this study, the authors will test the influence of performance appraisal factors and compensation in creating job satisfaction to further create the work loyalty of generation y. literature review loyalty generation y employees’ loyalty tends to remain if the value of the firm matches their value (deal, 2007). for example, how companies deal with organizational change and manage it and whether the organization will create opportunities for better quality of life, better communications, and improvements such as more specific jobs. generation y is also likely to stick with the organization if the organization respects young people, at least for their expertise. smola and sutton (2002) also argue that y-generation employees are more self-oriented. they want to be promoted quicker than older workers, tend to feel that work should be an important part of their lives and have a higher intention to quit their jobs if they get a bid for a greater amount of rewards elsewhere. according to waqas et al. (2014) loyalty is the employee's loyalty to his organization, when he demonstrates his commitment and believes that it is the best option for him to work for the organization. mccrindle (2006) argues that if the y generation is in a new workplace and see that they will get a lot of lessons, there is a chance they will survive, and loyalty is also about lifestyle changes. job satisfaction job satisfaction is an employee attitude towards work related to work situation, cooperation between employees, rewards received in work, and matters concerning physical and psychological factors (sutrisno, 2014: 74). another opinion, job satisfaction is as an individual's general attitude towards his work, also explained that a person with high job satisfaction shows a positive attitude towards the job, otherwise someone who is not satisfied with his work shows a negative attitude towards the job (robbins & judge, 2009: 105).furthermore, job satisfaction is essentially something that is individual, each individual has a different level of satisfaction in accordance with the system of prevailing values (rivai&sagala, 2013: 856). another opinion about job satisfaction is that those who are satisfied with their work will be more productive, creative and committed to companies where organizations with more satisfied employees tend to be more effective than organizations with fewer satisfied employees (mcshane &glinow, 2009: 108). many factors affect employee job satisfaction. the factors themselves in the role of giving satisfaction to employees depend on the personalities of each employee. the factors that give satisfaction according to sutrisno (2014: 77) are:a) individual factors; including age, health, character, and hope; b) social 37 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 factors; including familial relations, employment views, political freedom, and community relations; and c) the main factor in the work; including wages, supervision, work tranquility, work conditions and opportunities to move forward. according to robbins and judge (2009: 106), there are 5 factors that affect job satisfaction; which are a) satisfaction with the job itself, this satisfaction is achieved when an employee's work is consistent with his or her interests and abilities; b) satisfaction with the rewards of the job,where the employee feels the salary or wages he received is in accordance with his workload and balanced with other employees working in the organization; c) satisfaction with supervision from superiors, when employees feel they have a boss who is able to provide technical assistance and motivation; d. satisfaction with co-workers, when employees are satisfied with their colleagues who are able to provide technical assistance and social encouragement; and e) promotional opportunities,the opportunity to improve the position of the position on the organizational structure. performance appraisal performance appraisal is a system used to assess and know whether an employee has performed his or her overall work (sedarmayanti, 2015: 260). performance appraisal means evaluating the performance of current and past employees relative to its performance standards, assuming that employees understand what their performance standards are, and the supervisor also gives employees the necessary feedback, development, and incentives to continue their good performance (dessler, 2013: 284). performance appraisal is the process by which the organization evaluates employee performance, this activity can improve personnel decisions and provide feedback to employees about their work (handoko, 2014: 135). according to rivai and sagala (2013: 549) the main purpose of performance appraisal is to motivate individual employees to achieve organizational goals and in meeting predetermined standards of behavior, resulting in actions and results desired by the organization. some of the assumptions underlying the importance of performance appraisal by sedarmayanti (2015: 265) are a) everyone wants to have the opportunity to develop their work ability as much as possible; b) everyone wants to be rewarded when he or she is judged to be doing a good job; c) everyone wants to know what career they will achieve when they do their job well; and d) everyone wants to get objective treatment and judgment based on performance. compensation compensation is all income in the form of money, goods directly or indirectly received by employees in return for services rendered to the company (hasibuan, 2014: 118). compensation is important to employees as individuals because the amount of compensation reflects the size of the value of their work among the employees themselves, their families and society (handoko, 2014: 155). according to dessler (2013: 352) employee compensation is any form of payment or compensation paid to employees and arises from the employee's employment. sedarmayanti (2015: 239) states that the objectives of the management of the compensation system are: a. appreciate performance. b. ensure justice. c. retain employees. d. get qualified employees. e. controlling costs. f. meet the rules. 38 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 research method this research uses quantitative approach. based on data collection techniques, this study uses primary data. primary data was obtained through questionnaires. in this study, the target population is students at the master of management study program faculty of economics, universitas negeri jakarta. the size of the sample is adjusted to the analysis model used is structural equation modeling (sem). the number of respondents were 117 students. sampling is done by using probability sampling method, ie students who meet the criteria to be selected as research sample. in this study, the variables are performance appraisal, compensation, job satisfaction and employee loyalty. the measurement of variables will be based on the indicators. this research used likert scale measurement, where the answer of available statement ranges from number 1 to number 5. the research model can be seen in figure 1. figure 1. conceptual framework the hypotheses formulated in this study are: h1: performance appraisal affectsjob satisfaction. h2: compensationaffects job satisfaction. h3: job satisfaction affectsemployee loyalty. h4: performance appraisal affects loyalty through job satisfaction. h5: compensationaffects loyalty through job satisfaction. result and discussion this research used structural equation modeling (sem) analysis. the software used for this research is spss amos 21. the theoretical model that has been described in the path diagram will be analyzed based on the data obtained. full model analysis-structural equation model analysis of data processing result at full stage of sem model is done by applying conformity test and statistical test. results of data processing for the analysis of full sem model shown in figure 2. p erformance appraisal compensa tion job satisfaction loyalty 39 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 figure 2. full model-structural equation model (sem) caption: pa (performance appraisal) cp (compensation) js (job satisfaction) ly (loyalty) confirmatory factor analysis the measurement model with confirmatory factor analysis (cfa) is an analysis that aims to identify the relationship between variables with indicators and perform correlation test to confirm whether the measurement model built in accordance with the hypothesized. (haryono &wardoyo, 2013: 106). cfa processing is done with amos 21 software. here is the test result based on the data obtained. table 1. standardized loading factor no indicator standardized loading factor information 1 pa1 0,531 valid 2 pa2 0,537 valid 3 pa3 0,846 valid 4 pa4 0,722 valid 5 cp1 0,770 valid 6 cp2 0,668 valid 7 cp3 0,726 valid 8 cp4 0,630 valid 9 js1 0,549 valid 40 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 10 js2 0,717 valid 11 js3 0,677 valid 12 js4 0,670 valid 13 js5 0,624 valid 14 ly1 0,767 valid 15 ly2 0,599 valid 16 ly3 0,775 valid 17 ly4 0,767 valid 18 ly5 0,603 valid based on table 1,it can be seen that allstandarized loading factor value ≥ 0,5. therefore it can be deduced that all indicators of each variable are valid. furthermore, it can be concluded that all indicators can be used for the calculation in the next stage. test of goodness of fit model the test results of goodness of fit model are described in table 2. table 2. test result of goodness of fit model size (gof) match target the calculation results match rate statistic chisquare (x2) small value 169,33 299,812 poor fit p p ≤ 0,05 p=0,000 gfi gfi ≥ 0,90 0,781 marginal fit 0,80 ≤ gfi < 0,90 gfi ≤ 0,80 rmsea rmsea ≤ 0,08 0,105 marginal fit 0,08 ≤ rmsea < 0,10 rmsea ≥ 0,10 tli tli ≥ 0,90 0,785 marginal fit 0,80 ≤ tli < 0,90 tli ≤ 0,80 ifi ifi ≥ 0,90 0,820 marginal fit 0,80 ≤ ifi < 0,90 ifi ≤ 0,80 cfi cfi ≥ 0,90 0,90 good fit 41 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 0,80 ≤ cfi < 0,90 cfi ≤ 0,80 norm chi-square cmin/df ≤ 2 atau cmin/df ≤ 5 2,288 marginal fit pnfi pnfi 0,50 0,598 good fit pcfi pcfi 0,50 0,767 good fit these results indicate that the model used is acceptable, with a good fit cfi value. although some criteria are slightly beyond the recommended value or marginal fit. however, the size of the other fit parsimony shows that the results is fit. the value of pnfi = 0.598 and pcfi = 0.767 is above 0.50 indicating that this model is received at the fit level. normality test normality test data is done by using the value ratio of critical skewness and kurtosis value of ± 2.58. the data is said to be normal distribution if the value of ratio of critical skewness and kurtosis value under ± 2.58 (santoso, 2015: 81). table 3. assessment of normality vrbl min max skw c.r. kurts c.r. ly1 3,0 5,00 -,124 -,548 -,559 -1,234 ly2 2,0 5,00 -,415 -1,832 -,320 -,708 ly3 2,0 5,00 -,292 -1,290 -,355 -,785 ly4 3,0 5,00 ,042 ,185 -,829 -1,831 ly5 1,0 5,00 -,440 -1,942 ,377 ,831 js5 2,0 5,00 -,015 -,064 -,918 -2,026 js4 2,0 5,00 -,400 -1,765 -,660 -1,458 js3 2,0 5,00 -,144 -,636 -,246 -,544 js2 1,0 5,00 -,350 -1,544 -,216 -,478 js1 2,0 5,00 -,364 -1,607 -,349 -,770 cp1 2,0 5,00 -,195 -,859 -,545 -1,204 cp2 2,0 5,00 -,192 -,850 -,312 -,689 cp3 2,0 5,00 ,069 ,303 -,519 -1,146 cp4 2,0 5,00 ,057 ,251 -,453 -1,001 pa4 2,0 5,00 -,363 -1,603 -,198 -,438 pa3 2,0 5,00 -,387 -1,711 -,356 -,786 pa2 2,0 5,00 -,252 -1,111 ,118 ,259 pa1 2,0 5,00 -,102 -,450 -,197 -,434 mltvr 32,660 6,583 42 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 from the table 3 above, it can be concluded that based on the test of normality the multivariate is not normally distributed. the results of the calculations shown in table 3 indicates that all the indicator values of critical ratio skewness and kurtosis value is below ± 2.58. it can be said data is univariate normal distribution and feasible to use. outlier data evaluation evaluation of outliers according to santoso (2015: 73), is done to observe the observational conditions of a data having unique characteristics that look very different from other observations and appear in extreme form, whether for a single variable or combination variables. outlier detection is done by looking at the value of mahalanobis distance. the result of outlier evaluation can be seen in table 4. table 4. testing of multivariate outliers observation number mahalanobis d-squared p1 p2 11 37,293 ,005 ,430 43 37,219 ,005 ,113 101 36,866 ,005 ,027 67 33,842 ,013 ,070 62 33,417 ,015 ,031 . . . . . . . . . . . . 27 11,084 ,891 ,996 36 10,894 ,899 ,997 55 10,493 ,915 ,999 17 10,325 ,921 ,999 74 10,250 ,923 ,999 106 10,250 ,923 ,997 the distance of mahalanobis for each observation will show the distance of an observation data to the average value (centroid) it. observation of data that is far from its centroid value is considered outlier and must be discarded (in drop) from the analysis (haryono&wardoyo, 2013: 309). the criteria used are based on the value of chi-squares on degrees of freedom (degree of freedom) 18 that is the number of indicators in the fit model of this study at the level of significance p <0.001. mahalanobis distance or x2 (18; 0.001) = 42.312. this means all cases(observation number) which has a dalanquant value of d-squared greater than 42.312 is multivariate outliers. the results of the calculation of mahalanobis distance calculation shown in table 4 above it can be seen that all data observations have dalanquant value d-squared under 42,312 which means that the research data used has met the requirements there are no multivariate outliers. according to santoso (2015: 82) no matter how biased a data remains a fact that must be taken into account as a finding. because in behavioral research using ordinal scale, normality testing should not be necessary, because naturally, ordinal data is not quantitative data that must 43 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 meet the assumption of normality. yet another requirement requires sem assumption is the fulfillment of normality test. the following will be tested for normality by using bootstrap. 343,918 361,243 378,568 |------------------- |* |*** |****** 395,893 413,218 430,543 447,868 465,193 482,518 499,842 517,167 |****** |********** |*********** |**************** |************ |*********** |*********** |******* n = 200 mean = 456,899 s. e. = 3,501 534,492 551,817 569,142 586,467 |**** |*** |* |* |------------------- figure 3. bootstrap distributions after bootstrappingit can be seen that the curve forms a symmetrical bell pattern, indicating that the data of the bootstrap result is normal distribution. it can be concluded that the model has fulfilled normal multivariate assumptions and can be continued on the next analysis. reliability test reliability is the consistency of a measurement, high reliability indicates that the indicators have a high consistency in measuring its latent construct (haryono& wardoyo, 2013: 144). the minimum reliability value of an acceptable latent variable forming indicator is 0.70. to obtain the value of the reliability level of the latent variable forming indicator used the formula: (∑standardloading)2 44 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 ∫ constreliability = (∑standardloading) 2 +∑εj the results of data processing are shown in table 5. table 5. reliability test variable reliability performance appraisal 0,760 compensation 0,793 job satisfaction 0,784 loyalty 0,831 the calculation results show that all reliability values are above 0.7. this means that the measurement of the latent variable formator is acceptable and has already qualified for reliability. hypothesis testing and interpretation the next stage is testingthe research hypothesis. the test is conducted on 5 hypotheses that have been proposed. regression value of data processing results can be seen in table 6 below: table 6. regression estimate s.e. c.r. p label js <- pa ,369 ,156 2,364 ,018 par_15 js <- cp ,639 ,158 4,036 *** par_16 ly <- js ,750 ,173 4,321 *** par_17 based on table 6, all hypotheses proposed in this study can be discussed as follows: h1: performance appraisal affects job satisfaction. with a critical ratio (c.r.) = 2,364 ≥ 1.967 and probability = 0,018 (p <0,05), it can be concluded that the performance appraisal has a positive effect on job satisfaction. the results of this study support previous researches conducted by malik and hussain (2011); ahmed et al. (2010); january et al. (2015) and ibeogu and ozturen (2015) where the results of this study also prove that there is a relationship between performance appraisal and job satisfaction. similar to the results of the study from darehzereshki (2013), it is revealed that there is a relatively strong relationship between high-quality performance appraisal and job satisfaction, this study shows that that a performance appraisal process which result in low assessment level will negatively affect job satisfaction. in the contrary, a high and objective assessment will positively result in a high job satisfaction. performance appraisal is a basic component of human resource management, assessment results can be used as the basis of many hr decisions. the results of this study are also supported by hasibuan's opinion (2014: 88) that the reason for performing performance appraisal is to increase employee satisfaction level by giving recognition to their work result. h2: compensation affects job satisfaction 45 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 with a critical ratio (c.r.) = 4.036 ≥ 1.967 and with probability = 0,000 (p> 0,05), it can be concluded that the compensation has a positive effect on job satisfaction. the results of this study supporta research conducted by salisu, chinyio and suresh (2015). it is also similarity shown in researches of gelard and rezaei (2016); queiri et al. (2015) and daud (2016) where it is concluded that there is an effect of the size of the compensation received with the level of job satisfaction of employees in the place of work. it is also similar to ngirande's (2014) research, it is critical for management to develop strategies that address employee compensation and job satisfaction as a major factor; this means that management must be able to create a total reward structure that includes more than compensation. the compensation received must be profitable in order to attract valuable employees to remain in the company. this is in line with the opinions of rivai and sagala (2013: 858), in the work of satisfaction one of which may refer to the compensation given by the entrepreneur, the individual will be satisfied if one experiences things like results or rewards that can be more than expected, the results achieved greater than the standard set and if the obtained by the employee in accordance with the requested conditions. h3: job satisfaction affects loyalty with a critical ratio (c.r.) = 4.321 ≥ 1.967 and with probability = 0,000 (p <0.05), it can be concluded that there is a positive correlation between job satisfaction with loyalty. the results of this study support the previous researches by waqas et al. (2014); pandey and khare (2012) as well as javed et al. (2014) proving that there is an influence between job satisfaction in shaping the y-generation work loyalty in the workplace. based on the results of research singh et el. (2011), most employees easily agree to the concept that they can easily resign from their current employment once being offered a more promising package. therefore, the general goal is to obtain job satisfaction. an increase in employees’ satisfaction will make them more committed and loyal to their organization. this is also in line with the opinion of mcshane and glinow (2009: 108) which states that those who are satisfied with their work will be more productive, creative and committed to companies in which organizations with more satisfied employees tend to be more effective than organizations with fewer satisfied employees. it can be concluded from the results of research that satisfaction of salary, valued work and opportunity to be promoted to measure how much employees enjoy his job and is the attitude of employees related to the psychological condition, where if employees feel fulfilled the level of job satisfaction there is a tendency will be more loyal to the organization where he works now. to test h4 and h5, then the calculation used sobel test. the calculation results can be seen in table 7 below: table 7. sobel test hypothesis path sobel test probability h4 performance appraisal→ job satisfaction → loyalty 2,076 0, 038 h5 compensation→ job satisfaction → loyalty 2,957 0, 003 h4: performance appraisal affects loyalty through job satisfaction. the result of calculation of sobel test value is 2,076 ≥ 1,967 with probability = 0,038 (p <0,05). thus hypothesis 4 accepted because there is a positive correlation between performance appraisal through job satisfaction in shaping employee loyalty work. the results of this study are in line with johari et al. (2012); brown and heywood (2005) and othman and lembang (2017), that there is the effect of performance evaluation that can be done justly to form the work satisfaction of generation y so as to generate y generation's 46 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 desire to stay at the organization where they work. in accordance with the opinion of handoko (2014: 135), performance appraisal is the process by which the organization evaluates employee performance, this activity can improve personnel decisions and provide feedback to employees about the implementation of their work. handoko (2014: 196) argues thatemployees who get job satisfaction usually have a better attendance and regulatory record, but are less active in union activities and usually perform better than employees who do not get job satisfaction. can be said by the fulfillment of high employee performance of course along with the high performance appraisal also, it is certainly influential with the high job satisfaction perceived by employees. so the creation of high job satisfaction will be accompanied by more loyalty to the organization where the y generation works. h5: compensationaffects loyalty through job satisfaction the result of calculation of sobel test value is 2,957 ≥ 1,967 with probability = 0,003 (p <0,05). thus hypothesis 5 is accepted because there is a positive correlation between compensation through job satisfaction in shaping employee loyalty. the results of this study support researches by milman and ricci (2004); ibrahim et al. (2015) and david (2015), proving that appropriate compensation can create job satisfaction that can make y generation to stay longer in their current organization. the results of paul and sharma (2016) recommend that the benefits of compensation will increase employee job satisfaction which in turn will make employees more committed and loyal to their company. according to sinha and sinha (2012), offering high compensation is expected to increase the loyalty of generation y employees because of job satisfaction in a form of benefits received. compensation is only able to attract employees at an early stage but is unable to retain y generation in generals. at some point, compensation can not guarantee the loyalty of the y generation because at some point they will have the intention of leaving the company. thus, the company must be more creative in handling the y generation loyalty. analysis of direct effect, indirect effect, and total effect the calculation results are shown in table 8. table 8. direct effects cp pa js ly js ,639 ,369 ,000 ,000 ly ,000 ,000 ,750 ,000 in this study there are two variables that have a direct influence on job satisfaction variables and one variable that has a direct influence on work loyalty variables. the result of measurement shows that performance appraisal has an effect on job satisfaction with a coefficient of 0.369 and compensation has a direct effect on job satisfaction with a coefficient of 0,639 and job satisfaction has a direct effect on work loyalty with a coefficient of 0,750. the indirect effect is the effect that arises through an intermediate variable. the calculation results are shown in table 9. table 9. indirect effects cp pa js ly ly ,479 ,277 ,000 ,000 this research model also measured indirect influence between variables. there are two variables that have indirect effect to work loyalty. performance appraisal has an indirect effect on work loyalty with a coefficient of 0.277 and compensation has an indirect effect on work loyalty with a 47 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.04 coefficient of 0.479.because of the direct influence and indirect influence between variables and models of this study, it is necessary to measure the total effect. the total effect is the effect of the overall variable relationship.the calculation results are shown in table 10. table 10. total effects cp pa js ly js ,639 ,369 ,000 ,000 ly ,479 ,277 ,750 ,000 table 10 above shows the impact of the relationship between constructs as a whole. it is very useful for companies to identify the focus factors of the company when dealing with employees behavior in order to improve loyalty and can also help identify factors to enhance company performance. as seen in table 10,it is known that the variable that have the greatest impact to increase employee loyalty generation y is the job satisfaction of 0.750. whereas the most efficient variable to improve job satisfaction is compensation; an increased compensation will be followed by an increased level of work satisfaction of generation y employees. analysis of influence is intended to see how strong the influence of a variable on other variables either directly, or indirectly. interpretation of these results will have significance to determine a clear strategy in improving job loyalty of generation y. the calculation of direct, indirect, or total influence between exogenous variables on endogenous variables in this study was conducted to find right variables to improve work loyalty of generation y for more optimized results. conclusion the results show that compensation greatly affects generation y employees’ job satisfaction by 0.64%. whereas performance appraisal at 0.37% has a lesser effect on employees’ job satisfaction.job satisfaction affects work loyalty of generation y at 0.75%, while the rest of .25% are influenced by other variables outside of job satisfaction. bibliography ahmed, a., hussain, i., ahmed, s., & akbar, m. f. 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(2014). factors influencing job satisfaction and its impact on job loyalty. learning & development, 4 (2), 141-161. 62 abstract this study aims to examine the correlation between interest in etrepreneurship and student’s self esteem. some books and journals is used to be examined in this study. the findings found that interest in entrepreneurship is a willingness and interest of one in building a business in order to fulfill his requirement encouraged by braveness in taking risks. factors influencing the interest in entrepreneurship were (1) intrinsic factors (achievement motivation, self-esteem, and happiness), and (2) extrinsic factors (family, society, and opportunity). self-esteem is both positive and negative valuation by a student toward her/his self and others. keywords: interest in entrepreneurship, students’ self-esteem. received: 08 may 2019 ; accepted: 08 may 2019; publish; december 2018 how to cite: puluhulawa, m., pautina, m., & djibran, m.. (2018). the correlation between interest in entrepreneurship and students’ self-esteem. journal of business and behavioural entrepreneurship, 2(2), 62-67. https://doi.org/10.21009/jobbe.002.2.02 the correlation between interest in entrepreneurship and students’ self-esteem meiske puluhulawa department of guidance and counseling, faculty of education, state university of gorontalo email: meiske310183@gmail.com mohamad rizal pautina department of guidance and counseling, faculty of education, state university of gorontalo email: isal.pautina@gmail.com moh. rizki djibran department of guidance and counseling, faculty of education, state university of gorontalo email: rmu_djibran@yahoo.com mailto:meiske310183@gmail.com mailto:isal.pautina@gmail.com mailto:rmu_djibran@yahoo.com 63 introduction these days, unemployed workforces come from various backgrounds of education. based on the data of statistical central bureau, out of 133,94 million of the workforce, 6,87 million are unemployed. it is due to many individuals who only wait for job vacancy offered by either government or private institution. they do not have any willingness to create their own enterprise. a way to create a job is by entrepreneurship. according to drucker (kasmir, 2007), entrepreneurship is an ability in creating something new and different, in which an entrepreneur is able to create something new and different from others or different from what has been existed before. to be an entrepreneur, one should have an interest in entrepreneurship. it is a desire, interest, and willingness working hard to be independent or trying to fulfill his life requirement without having any fear with risks to be faced and always learning from his failures. interest in entrepreneurship should be instilled as early as possible particularly in students. by having an interest in entrepreneurship, the students can change their dependency on others to be more independent, the students will reduce their demanding attitude, the students will not be inferiority, and they will try to work based on quality and have confidence as well as they can grow their dreams to have their own enterprises. interest in the enterprise should be comprehended by both teachers and students considering that this interest leads students to determine their choices in selecting their dreams. dreams are the creations of interest in the relationship with the process or future reach of the students in planning and determining their choices toward education and the position or desired job. according to anshori (wulandari, 2013), the strategic step to sharpening the interest in entrepreneurship can be done through an education process that prioritizes not only the degree or the certificate but also ability and skill. self-esteem is one of the characteristics required by the students to develop their interest in entrepreneurship. by having good self-esteem, students are more confident and able to actualize their selves; thus it will increase their interests in entrepreneurship. in line with what has been stated by maslow (baihaqi, 2008), self-esteem is a requirement that should be fulfilled by an individual. an individual that has fulfilled his self-esteem requirement will be easy to fulfill his/her self actualization. self-esteem is related to an individual’s assessment to either his/her own self or others. robert (2008) says that people who believe in their abilities and beliefs will show better achievement. it indicates that self-esteem determines the success of one’s achievement. by considering the condition, the students’ interest in entrepreneurship will grow well if they have good self-esteem. the following explanation is going to discuss the correlation between interest in entrepreneurship with students’ self-esteem. research methodology this study explore the correlation between interest in etrepreneurship and student’s self esteem. some books and journals is used to be examined in this study. puluhulawa, m., pautina, m., & djibran, m.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (62-67)  the correlation between interest in entrepreneurship and students’ self-esteem.  https://doi.org/10.21009/jobbe.002.2.02 64 discussion interest in entrepreneurship interest in entrepreneurship is a desire, interest, and willingness working hard or having a strong will to try maximally in order to fulfill the life requirement without having fear toward the risks and to learn from failures (rano, 2012). however, lee and wong (2004) define it as an ability to dare people’s selves in fulfilling the life requirement, advancing their business, and creating new enterprises with the strength they have. besides, sumaryo (2004) states that interest in entrepreneurship is a psychic symptom to centering the attention and doing something to the enterprise happily because it brings advantages to someone. according to some definitions, what is defined as an interest in entrepreneurship is a willingness and interest of someone to build an enterprise. therefore, it can fulfill his requirements that will be supported by braveness to take risks. factors influencing the interest in entrepreneurship according to david c. mcclelland (suryana, 2006), entrepreneurship is very determined by achievement motive, optimism, value, attitude, and entrepreneurship or achievement status. entrepreneurship behavior is influenced by both internal and external factors. the internal factors include ownership right, ability or competence, and incentive, while the external factor was the environment. bnoe soedjono (suryana, 2006) states that the affective ability involves the attitude, value, aspiration, feeling, and emotion in which all of them depend on the environmental condition so that the dimension of affective ability and cognitive ability are parts of entrepreneurship approach. based on the combination of the two previous ideas, it can be concluded that the components of entrepreneurship consist of cognitive, emotion (feeling), and conation or willingness. broadly speaking, it can be categorized into intrinsic and extrinsic factors. 1. intrinsic factors intrinsic factors are factors coming from the individual’s self. the intrinsic factors that can influence the interest in entrepreneurship are achievement motive, self-esteem, happiness. 2. extrinsic factors extrinsic factors appeared due to stimulation or encouragement from the outer self of an individual or the environment. the extrinsic factors that influence the interest in entrepreneurship are family, society, and opportunity. the definition of self-esteem self-esteem is the whole ways to use in evaluating self in which it is a comparison between ideal-self and real-self (santrock, 2012). purwanto (2010) states that self-esteem is an individual’s feeling when she/he values the high and low of his/her own self to other people in daily interaction. further, deaux, dane, and wrightsman (sarwono and meinarno, 2009) say that self-esteem is an assessment or evaluation either positively or negatively toward our selves. puluhulawa, m., pautina, m., & djibran, m.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (62-67)  the correlation between interest in entrepreneurship and students’ self-esteem.  https://doi.org/10.21009/jobbe.002.2.02 65 along with that, harper (dariuzky, 2004) declares that self-esteem is an assessment of an individual’s self-influenced by attitude, interaction, award, and acceptance of other people toward that individual. therefore, it can be concluded that self-esteem is an assessment of students toward their selves and others either positively or negatively. the importance of students to have self-esteem self-esteem is an important factor in influencing someone’s success. by the self-esteem, someone will be able to understand and to accept his weaknesses and strengths that further can maximize his strengths to be a success. self-esteem can also optimize someone’s characteristic and effort. the most important thing is that self-esteem can call out the ability to achieve life goals and to respond positively to the hindrances to be faced. if someone has positive self-esteem, indirectly it makes someone easily establish a good interpersonal relationship. the conclusion is that individuals with high self-esteem tend to be a success. they also have prepared their selves to encounter the problem that might be appeared positively and always been convinced as well as getting trust from others. the general characteristics of individuals with high selfesteem are (1) worth to live, (2) believing in their selves, (3) respecting their selves, (4) trying to advancing their selves, (5) feeling peaceful or harmonic, (6) having good interpersonal relationship, (7) being responsible, (8) being patient in facing disappointment friendly, (9) friendly, (10) assertive, (11) merciful and easily loved, and (12) having direct behavior. (yahaya, boon, ramli, latif, yahya, and abdul, 2004) therefore, self-esteem is very crucial to be owned by each individual, particularly student. students who have good self-esteem will have better emotional control because they feel enough acceptances to their selves. as stated by coopersmith (burns, 1993), students with high self-esteem expose their selves being active and success either in society or in the academic field. they are willing to express their opinions in a discussion and will not be satisfied by only being listeners. they do not have any anxiety or psychosomatic problems that will make them experience difficulties. besides, they will be more confident and consider their self-valuable, important and must be respected, able to influence others with creative ideas, become more optimistic, love new and challenging tasks, expect for success. wibowo (2016) through his research also proves the influence of self-esteem toward students’ academic achievement. students who have high self-esteem have high academic achievement. therefore, it can be concluded that self-esteem should be owned by each student. students with good self-esteem will be able to place their selves in various situations because they are emotionally secured. students are effortless to say their opinion, but still respect others, and they are free from fear of others’ views. thus they will be motivated to improve their achievement. the correlation between interest in entrepreneurship and students’ self-esteem students need to develop their interest in entrepreneurship in order to be able to survive in the future. the interest in entrepreneurship is closely related to the positive value of the self-ability or known as positive self-esteem. the correlation between self-esteem with interest in entrepreneurship is if individuals believe in their ability. if individuals consider themselves as people who have enough skill puluhulawa, m., pautina, m., & djibran, m.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (62-67)  the correlation between interest in entrepreneurship and students’ self-esteem.  https://doi.org/10.21009/jobbe.002.2.02 66 to do enterprise, those individuals will show success attitude in running their interests in entrepreneurship. however, if those individuals consider themselves as ones who are lack of skill in entrepreneurship, they will show their incapability in doing their interests in entrepreneurship. it is supported by the research conducted by campo (2011) which states that an entrepreneur chooses to do entrepreneurship because that person believes in his/her self thus she/he can be a success in doing business. it reveals that the evaluation toward our selves is important in doing entrepreneurship. the research conducted by koranti (2013) about factors influencing the interest in entrepreneurship reveals that both internal and external factors significantly influence the interest in entrepreneurship. the internal factors are achievement motive, self-esteem, and happiness. hence, it can be stated that individuals’ self-esteem influences interest in entrepreneurship. the higher or the more positive an individual’s self-esteem leads to the higher or the more positive that an individual’s interest in entrepreneurship, and vice versa. conclusion interest in entrepreneurship is a willingness and interest of one in building a business in order to fulfill his requirement encouraged by braveness in taking risks. factors influencing the interest in entrepreneurship were (1) intrinsic factors (achievement motivation, self-esteem, and happiness), and (2) extrinsic factors (family, society, and opportunity). self-esteem is both positive and negative valuation by a student toward her/his self and others. self-esteem needs to be possessed by each student. a student with good self-esteem can facilitate her/ his self to be engaged in various situations because she/he is emotionally secured. the correlation between self-esteem and interest in entrepreneurship is when an individual believes in his ability. if an individual considers himself as someone who has enough capability to do entrepreneurship, that individual will show success in running his interest in entrepreneurship. in contrast, if somebody thinks that he lacks ability in doing entrepreneurship, he will show his incapability in running the entrepreneurship. bibliography baihaqi, m. (2008). psikologi pertumbuhan. bandung: rosdakarya. burns. 1993. konsep diri teori, pengukuran, perkembangan dan perilaku. alih bahasa: eddy. jakarta: penerbit arcan. campo, j. l. m. (2011). analysis of the influence of self efficacy and bussiness start-up: developing a multi dimensional definition. international journal of enterpreneurial behaviour & research. vol. 16, no. 04. dariuszky, d. (2004). membangun harga diri. bandung : cv. pionir jaya. puluhulawa, m., pautina, m., & djibran, m.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (62-67)  the correlation between interest in entrepreneurship and students’ self-esteem.  https://doi.org/10.21009/jobbe.002.2.02 67 puluhulawa, m., pautina, m., & djibran, m.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (62-67)  the correlation between interest in entrepreneurship and students’ self-esteem.  https://doi.org/10.21009/jobbe.002.2.02 kasmir, (2007). kewirausahaan. jakarta: pt raja grafindo persada koranti, k. (2013). analisis pengaruh faktor internal dan faktor eksternal terhadap minat berwirausaha. proceeding pesa t . vol. 5, oktober 2013. lee, s.h.,& wong, p.k. (2004). an exploratory study of technopreneurial intentions: a career anchorperspective. journal of businessv enturing. vol. 19, no. 1 purwanto, n. (2010). psikologi pendidikan. bandung: pt remaja rosdakarya. rano, ap. (2012). faktor–faktor penentu minat mahasiswa managemen untuk berwirausaha fe universitas negeri padang. jurnal, vol 1, no. 1 padang. robert, m & shepherd. (2008). entrepreneurship edition 7. newyork: mcgraw hill copmpany. santrock, j. w. (2012). life-span development. 13 th edition. university of texas, dallas : mc grawhill. sarwono & meinarno. (2009). psikologi sosial. jakarta: salemba humantika. sumaryo. 2004. membuka usaha kecil untuk smk tingkat i. jakarta: yudistira. suryana. 2006. kewirausahaan. jakarta: salemba empat. wibowo, s. b. (2016). benarkah self-esteem mempengaruhi prestasi akademik?. jurnal humanitas. vol. 13, no. 1. hlm. 72-83. wulandari, s. (2013). pengaruh efikasi diri terhadap minat berwirausaha pada siswa kelas xii di smk negeri 1 surabaya. jurnal pendidikan tata niaga unesa. vol. 1, no. 1. yahaya, a, boon, y, ramli, j, latif, j. s, yahya, f dan abdul, a. h. (2004). psikologi sosial. malaysia: universiti teknologi malaysia skudai johor darul ta’zim. 50 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 geo-service industry analysis: scanning challenges and opportunities for sustainable asiapacific tamer zaki fouad mohamed phd student, college of business, southern taiwan university of science and technology, taiwan email: da51g206@stust.edu.tw ; hard_pilot45@hotmail.com abstract global environmental risks resulted mainly from irresponsible industrial policies and polution, have a destructive impact on economies and societal wellbeing, especially in the asia-pacific. the geoservice industry is increasingly contributing to global sustainability and welfare by providing many solutions to environmental and socio-economic issues. the industry is growing fast in the asia-pacific, yet there are various issues hindering industry and technology diffusion as well as many opportunities which can be harvested for better industry growth. there is much confusion and lack of studies on this new growing industry, therefore the paper attempts to simplify and clarify the structure and interdeciplinary concept of geoservices. the purpose of this study is to explore and assess the opportunities and threats influencing geoservice industry growth and diffusion in the asia-pacific. methodology of such analytical descriptive study relied on secondary data and baseline information to examine and understand the industry issues and characteristics in the region. the paper also adopted various industry analysis and assessment tools such as pestle, porter and strategic grouping analysis to support decision makers in considering the challenges and opportunities for investment and engagement in that industry. the key contribution and significance is to promote and raise awareness among general public, government and non government stakeholders on the issues hindering geospatial industry diffusion as prerequisite for sustainability in the asia-pacific. the paper also suggested solutions and recommendations for decisionmakers to foster industry diffusion and understand opportunities for investment. keywords: pestle, strategic grouping, porter 5-forces, geospatial, aerospace, asia-pacific industry background according to recent un report, the asia-pacific (apac) is still the world’s most natural disasterprone area with over 60% of the world’s hungry people due to the significant disasters reaching 1690 incidents between 2004 and 2013, over 41% of worldwide incidents. during this period disaster-induced deaths reached 713,956 while economic damages were over $560 billion. although the report shows that the region is achieving slow economic growth, on the other hand there is a high potentiality for a faster and higher economic take off, if apac countries would work and collaborate harder in dealing with sustainability issues (unescap, 2014).sustainability is the process and science which relies on the management and diffusion of knowledge and innovation to handle the issues and needs of current and future generations, while considering the integrity and security of nature, economy and social systems. (lankauskienė & tvaronavičienė, 2012), (choucri, 2007; kumazawa et al., 2014). geospatial technologies and aerospace information services do not only have societal and environmental benefits, but also sustainable economic impact worldwide (kerski, 2014;oxera, 2013a;oxera, 2013b;ball, 2013;duboff, potin, & rodrigo, 2013). geoservice or geospatial industry is up to 10 times larger than the vedio games industry and up to one third the size of the global airline industry. this rappidly booming and expanding industry draws upon the upstream commercial applications of aerospace spatial technologies and the downstream business applications of location based services (lbs) including but not limited to resource management, supply chain logistics, infrastructure design, telecommunications, national defense, satellite, space and manufacturing industries. geoservices can be defined as „interactive digital mapping and lbs that include satellite imagery, satellite positioning signals, navigation devices, and digital maps“ (oxera, 2013a). this paper focus on the upstream sector of geoservice and aerospace industry, especially remote sensing, navagational and geospatial. 51 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 industry analysis methodology and tools industry analysis is the use of analytical tools to help corporations and organizations understand the forces within the industry that affect profitability. in line with porter‘ forces, industry can be influenced by entry and exit barriers as well as suppliers and buyers whom are affected by substitutes and other influencers. however, a more holistic approach analyzing those forces in alignment with business environment factors such as political, demographics, economic, legal, technological, infrastructure, ecological and social. (jenster & hussey, 2001). the key industry analysis factors of external business environment can be represented in pest or step analysis including political factors analyzing the political progress and regulatory framework shaping the code of conduct; the economics factors and conditions affecting society and industry; social demographics, life style and values triggering shifts and trends of social transition and development; and the technological advancements and trends of new products, materials, processes, research and developments in the industry. a more comprehensive view of understanding and analyzing industry and business environment is through the iceburge model in which the structure factors including pest and others (i.e. ecology) are the base of analysis in which trends and patterns are based on. then comes the events at the top of iceburge as a consequence of such trends and patterns (jansson, 2007). pest analysis is applicable for geospatial industry, where political factors would include investment and taxation policy, prestige, international conflict or cooperation, administrative& governance and civil-military relations. the economic factors would include unemployment, new business models, public private partnership& business cycle. sociocultural factors would include standard of living, lifestyle changes and level of education and training. technological factors would include new discoveries, ict developments, as well as technology transfer and obsolescence rate. the extended version of pest adds two more dimensions, the legal and environmental for deeper analysis. recently it has been further extended to include ethics and demographics i.e. steepled. those factors represent the changes, trends and future expected scenarios in each context. after identifying those factors in the organizational related context or industry, the next step is to identify implications for each of those factor groups and priorities them based on assessment rating such as: high or significant impact \low or insignificant impact, short term impact\ long term impact, positive\ negative impact as well as the low\high likelihood of happening and the dynamic nature of impact if its unchanged, increasing or decreasing. (trodd, 2007). external business environment involve general, industry and competitor environments. the general environment involves the dimensions in the broader society influencing the industry and companies within, such as demographic, economic, physical\natural, socio-cultural, global, technological, and political\legal factors. the industry and competitor environment is a deeper level analysis involving factors directly influencing companies and competitiveness in the market such as porter 5 forces, benchmarking and competitor intelligence. external environment analysis tries to highlight the opportunities or the conditions in the general environment which can be exploited to help companies become more competitive as well as threats in the general environment hindering the company’ efforts in achieving strategic competitiveness. table 1. components of external environment analysis (hitt, ireland, & hoskisson, 2017). scanning identifying early signals of environmental changes and trends. monitoring detecting meaning through ongoing observations of environmental changes and trends forecasting developing projections of anticipated outcomes based on monitored changes and trends assessing determining the timing and importance of environmental changes and trends for firms’ strategies and their management the key components of external environment are the economic, technical, political-legal, ecological and socio-cultural factors as represented in steep or pestle analysis. on the other hand, task environment‘ stakeholders include governments, local communities, suppliers, competitors, customers, creditors, employees, labor unions, special interest groups, and trade associations. industry analysis considers the dynamic and task environment‘ factors as they negatively or positively affect the business (i.e. resource availability and cost) as well as the 52 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 industry (i.e. growth and decline). michael porter popularized industry analysis especially by introducing the 5 forces as follows: leveraging the bargaining power of suppliers, superior or lower cost substitute products, competition among existing companies, openess to new competitiors or entrants, and the bargaining power of buyers and their influence. another key industry analysis is strategic grouping in which two broad dimensions or variables which are independent but related such as price, product-line breadth, quality and vertical integration. consequently, companies can be grouped in circles within the x and y variables according to their close or similar characteristics (wheelen & hunger, 2015). mapping strategic groups was initiated by porter to help organizations categorize different groups of companies and competitors with similar strategic characteristics within two axis of variables such as specialization and vertical integration (jenster & hussey, 2001). other variables of strategic group analysis include technological leadership and distribution channels, while other benefits invlude helping members of each group to understand market positioning, easily identify suitable business models and strategies as well as structuring, analysing and diagnosing corporate and industry competitiveness. competition within one group circle of similar companies are more intensive than with those outside group circle. (hitt et al., 2017). this paper focus on the scanning phase of analysis. however, future research can also focus on competitor and stakeholder analysis, bcg, value chain and value network analysis as well as monitoring, forecasting and assessing geo-service industry in the apac. scanning geoservice challenges and opportunities in the asia-pacific the following strategic group map shows key apac countries competing in the aerospace and geospatial industry. the grouping is based on specialization and vertical integration to understand the general position of key players and their competitiveness in the global market. there is a great opportunity for coopetition not within each group but among different groups through multinational alliances and consortia, in which the more advanced groups in vertical integration and specialization can offer upstream products and services as tier1 and tier2, while less advanced groups can support with downstream tier 3 and tier 4 products and services. however, establishing, managing and sustaining such alliances constitute a great challenge. figure 1. strategic group map for asia and pacific geo-service industry the following table summarizes key factors of porter 5 forces industry analysis table 2. porter 5 forces analysis for asia-pacific geoservice industry 53 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 suppliers power (medium-high) the high switching cost and lack of competitive suppliers makes the leading companies have high bargaining powers especially for high-end products and services, while suppliers from emerging markets still can negotiate with buyers for low end products and services. for instance, chinese beidou navigational satellite system is becoming competitive against gps in asia buyers power (low) demand from buyers is still not promising due to the lack of marketing and diffusion efforts in which societies are not prepared or aware regarding the potential of geospatial applications and extended benefits, in addition to the high price of geo-services for end-users in many developing countries. however, the bargaining power is low because they don’t have many alternatives of suppliers when they need geo-services. industry rivalry (low-medium) high competition among leading companies from china, japan, singapore, india, australia and russia while other emerging competition arises from new zealand, south korea, malaysia, turkey, iran, taiwan, pakistan, iran, and kazakhstan. however, low competition is from beginners such as indonesia, uae, qatar, philippines, thailand, kyrgyzstan, bangladesh and vietnam. new entrants (low) the industry still has high entry barriers due to the high risk and investment cost as well as technology sophistication and competitiveness of leading companies. however, establishing and sustaining industry alliance could expand the market and open opportunities for smaller companies substitutes (medium) drones are becoming more reliable, effective and efficient as enabling technology for remote sensing business and applications while future technologies such as high-altitude balloons (i.e. stratobus) can be more reliable, effective and efficient substitute to many satellite services. industry challenges and opportunities are mainly focusing on external environment factors (i.e. pestle) rather than corporate factors (i.e. swot), therefore the following baseline information is collected from literature and reports to outline the following key factors: political key policy barriers and threats for aerospace and geospatial industry diffusion can be outlined as the lack of clear vision and understanding of establishing aerospace innovation system and business model to acquire and develop the technology and industry resulting issues in safety, quality and labor. moreover, lack of legal, organizational, and financial backing as well as trust and collaboration issues due to policy barriers, security control, monopoly and corruption. another key factor is western hegemony and control over the global aerospace market either by controlling the technologies i.e. limiting gps services or through unfair export control policies i.e. itar (fouad, cheng, & su, 2015). on the other hand, the unstable political and security situation in apac due to environmental and man-made disasters, potential terrorism, boarder disputes (i.e. south china sea), over fishing and sea resources as well as the north korean intimidation creates opportunities out of threats for business and commercial sector, especially by initiating an arms race and fierce competition on developing aerospace capabilities for situational awareness and defense (stokes & easton, 2012). economic this paper affected by the scarcity and high cost for accessing aerospace industry data and reports. however, it is possible to understand the general trend of aerospace industry growth in the region based on available data. for instance,one report indicates that the top asian countries among the top 15 global lists for exporting aerospace products in 2015 are singapore with $6.4 billion (1.8%), japan with $5.17 billion (1.47%), india with $3.78 billion (1.07%), and china with $3.5 billion (1%). although such figures are too general since the aerospace industry include aeronautics and astronautics, but in general both technologies complement and support each other indicating strong aerospace capabilities and business potential. (workman, 2016). according to 2013 report, the annual revenues of global aerospace manufacturing industry exceeded $700 54 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 billion in which the largest markets for aerospace product sales were north america and europe followed by the emerging economies in the apac region which expected to provide the greatest growth opportunities in the future(first-research, 2013). moreover,apac region is the fastest growing market for uavs mainly for security applications. however, some countries adopting uavs for commercial purposes such as taiwan and pakistan. the whole region is interested in uavs while key investing countries are australia, china, japan, north korea, south korea, singapore, indonesia, malaysia, philippines and thailand. in 2011 apac was the second largest region after the united states, spending us $590 million on uavs and estimated to reach us $1.4 billion per year by 2017 (sanindu, 2013). geo-service industry has a global value reaching $270 billion in which $90 billion of that paid in wages to workers, and making up roughly 0.2% of global gross domestic product (gdp). the diffusion of geo services is growing globally with 30% increases per year, while 50% of internet users accessing maps online, and 35% using maps on smartphones. the industry has a high demand potential for skills with job growth of 22% for cartographers, 16% for survey/ mapping technicians, and 35% for geographers. moreover, the apac in the nascent stage of growth in terms of growing jobs and growing value of services, bypassing other more developed parts of the world. such diffusion is expected to increase as digital maps get better and more accessible. to sustain this diffusion growth, a broader awareness and promotion is needed as well as more investment from governments and companies to foster open data policies, more geographic education, and product innovation especially in earth observation (ball, 2013). furthermore, the western model of public private partnership for aerospace industry growth is followed successfully by asian growing aerospace powers in which civilian space program funded by the government through tax collection and implemented in collaboration with private and research entities (angelis, 2013). developing a stable business model for space industry may take long time to achieve profitable success, however it may have short term achievements if outer space is to serve the immediate ends of sustainability. in order to achieve industry growth, policies are recently pushing towards furthering competition towards increased timely access and availability as a priority then raising the importance of copyright protection and licensing management. issues such as pricing, revenues and balancing supply with demand according to different users and needs should be handled within an integrated value-added products and services or within alliance collaborative structures and not only relying on economic copyrights. both up and down streams are looking to develop space markets and products where a successful model requires both creativity and collaboration between the public and the private sectors (smith, 2011). socio-cultural another factor required for lbs diffusion in the apac is the social factor triggered by lifestyle and consumer behavioral patterns that should be considered by lbs providers in order to provide tailored applications and services to their needs and environment. for instance, japan and south korea supported innovative lbs applications for community creation, child-locator services and crime-prevention (frost & sullivan, 2008).asia is one of the most promising regions in the diffusion of remote sensing and earth observation applications. on the other hand, western countries have more government support and funding but less interest from students compared to apac(noort, 2011).lbs have promising future especially in the apac. one study examined cell phone users among 48,000 people in 58 countries indicatinga growing global societal awareness and interest about the benefits and applications offered by lbs especially where almost one third of world populations are using smart phones while in developed apac countries such as japan, korea, australia, singapore, taiwan, malaysia and new zealand, the percentage is also high making the region’ customers eager to adopt lbs(coordinates, 2012). technological some of the related lbs technological barriers that service operators find difficulty to get the best deal from lbs provider in terms of cost and complex choices of lbs offerings which also create interoperability issues. other issues include privacy, service quality, fair access and use of lbs data, and technology\service standardization. however, some markets in europe and asia are successfully developing lbs such as sweden and japan. the trend is showing a great potential for lbs diffusion with the development of information and communication technologies if the technical and policy issues have been dealt with (steinfield, 2004).lbs market growth and 55 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 diffusion in the apacis improving in which related technologies and infrastructure i.e. 4g and gps is getting widely available at lower cost. other drivers leading diffusion in the region the advancement of cell-id, e-otd, otdoa, a-gps, e-gps, and hybrid technology as well as the strong competition of enterprises trying to attract customers by providing them suitable services such as cisco, microsoft, esri, blackberry, facebook, and masternaut. moreover, the customer base of lbs is also increasing as they are getting more interested in benefiting from lbs opportunities and extended applications such as navigation, mobile advertisements, tourism, and consumer tracking. (prweb, 2014).gps and related lbs for the apac region. singapore with 150% mobile penetration rate is becoming a leader market in lbs and its apps became one of the most fundamental for smartphone and tablet users. although gps is enabled by satellite requiring a line of sight under the sky, both companies are now developing a wireless based gps like system to expand lbs capabilities as an effort for technology diffusion with the possibility to expand its commercial applications indoors such as tracking for foot traffic, thereby deducing customer behavior from movement. this could be useful in malls, retail establishments and airports, among others. adding indoor lbs marketing and advertising can significantly increase lbs business opportunities with new innovative applications such as “showrooming”. singapore based lbs companies are working hard to diffuse such innovative solutions and apps across apac as part of its recent raising $590,000 to expand its presence in the region(racoma, 2013). a growing geoservice technology trend is the use of drones or uavs for commercial applications and lbs. this emerging trend has a growing potential business opportunity. the technology is quiet cheap and had promising results in europe and asia (gulf-times.com, 2013). small satellites technology has already been adopted by academic and business communities in asian countries such as some indian universities which successfully developed and even lunched satellites by local indian students in cooperation with russian students. small satellites are the leading technology in the near future after smartphones and tablets in which it composes of similar functions and features such as imaging optics, radio communication, battery power systems as well as processing ics and other sensors. however, high processing power microcontrollers are still not widely available and affordable for commercial diffusion. (john, schingler, & edgar, 2013). such small satellites can be even more reliable and successful than traditional satellites if they are integrated and utilized in a fleet of small satellite constellation. on the other hand, privacy issues raise security concerns for the misuse of such capability. yet, some asian countries try to legalize, control and monitor aerospace business activities such as the indian space authorities (john et al., 2013). r&d collaboration between sprooki and yfind in singapore is one example to enable indoor. legal india and japan are developing regulatory system to support their ambitious aerospace policies for commercial growth and investment. yet, it remains a global challenge to effectively integrate aerospace and related geospatial activities into civil regulations due to safety, security and privacy issues among others, especially regarding the commercial use of drones. other legal issues include the use of open gis standards and intellectual property as well as the impact of viewing certain areas on digital maps in which boarders disputed by different countries (deogawanka, 2015). other legal issues related to spatial information include the protection of data privacy and confidentiality for individuals or organizations. considering and complying with national laws and corporate contracting for the exchange of spatial data and information products and managing its liability terms and conditions (smith, 2011). ecological the study referred to huge environmental and socioeconomic benefits relying on remote sensing and earth observation applications and expected to have greater potential for growth in the future especially if technology developers provide more practical capacity building support to less developed markets. such worldwide diffusion will have significant impact in solving global sustainability issues (noort, 2011). on the other hand, the role of aerospace industry players in observing and abiding by social, economic and environmental dimensions of sustainability with reference has great benefits even to the company itself. bae systems company in the uk followed corporate sustainability practices very effectivelyresulting a better corporate image and reputation 56 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 among the company stakeholders and consequently driving more success and revenues (gopalakrishnan, yusuf, musa, abubakar, & ambursa, 2012). table 3. pestle analysis for geo-service industry in asia-pacific industrialized countries political factors apac geo-analysis factors importance likelihood continuity overall impact civil-military relations medium high low-med high investment and taxation policies high med-high low-med medium international conflict\ political unstability high high low-med high international cooperation high med-high low-med medium administrative\ governance high med-high low-med medium prestige& leadership power high high low-med high economic factors unemployment high med-high low medium business model innovation high medium low medium public-private-partnership medium med-high med-high medium business cycle: growth\decline high med-high low medium roi& profitability high med-high low medium sociocultural factors standard of living high high low medium technology lifestyle changes high high low-med high education and user capacity high med-high low medium privacy& socio-cultural values medium med-high low medium credible diffusion leaders medium med-high low medium technical factors new discoveries\ innovativeness high medium low medium ict developments high high low-med medium infrastructure high high low-med medium technology transfer and capability building high medium low-med medium technological obsolescence medium medium low-med medium legal factors national governing regulations high medium med-high high intellectual property issues high medium med-high high ecological factors contribution for sustainability med-high medium high high sustainable production& operation medium medium med-high medium conclusion and recommendations in general, satellites, uavs and aerospace systems are very useful and important for countless geoservice applications and has great commercial opportunities, especially for apac region which has promising growth indicators for more competitive diffusion in the future. on the other hand, apac societies still need more marketing and awareness by governments, geoservice companies, and ngos. on the other hand, policy legal, technical, privacy and economic issues should be carefully adressed to insure a wide diffusion and faster growth. however, one key barrier is the lack of strong connection and coopetition between upstream and down stream industry members, as well as the political hostilities and firce competition among major aerospace powers in the region. therefore industry consortia of companies and industry members is more suitable than government-based aerospace alliances. such regional industry consortia, alliance or association can rely on internet platform or spin offs to handle geoservice various issues more effectively. references 57 available at http://journal.unj.ac.id/unj/index.php/jobbe/ journal of business & behavioural entrepreneurship vol. 1 no. 1,december 1, 2017 e-issn: 2580-0272 doi: doi.org/10.21009/jobbe.001.1.05 angelis, a. d. 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(2016, october 13). aerospace exports by country. retrieved from http://www.worldstopexports.com/aerospace-exports-by-country/ 9 abstract this study aims to analyze the abnormal returns before and after the announcement of mergers and acquisitions in the companies listed on the idx 2018. in this study, the observation period taken was three days before and after the announcement of mergers and acquisitions with the number of samples observed were 9 companies. the method for calculating abnormal returns used is the market adjusted return by using an intraday stock price of 15 minutes. based on testing hypotheses conducted by paired sample t-test, it was found that there were no significant differences in abnormal returns before and after the announcement of mergers and acquisitions in each 15 minute period. keywords: merger, acquisition, abnormal return, intraday received: 03 september 2018 ; accepted: 20 september 2018; publish; october 2018 how to cite: haryanto, s., mardiyati, u., buchdadi, a.. (2018).analyzing abnormal return before and after the announcement of merger and acquisition in 2018.journal of business and behavioural entrepreneurship, 2(1), 9-17. https://doi.org/10.21009/jobbe.002.1.02 analyzing abnormal return before and after the announcement of merger and acquisition in 2018 umi mardiyati universitas negeri jakarta email: umi.mardiyati@gmail.com sonny haryanto universitas negeri jakarta email: sonnyharyanto09@gmail.com agung dharmawan buchdadi universitas negeri jakarta email: agungdharmawan@feunj.ac.id 10 introduction in general, a company in its development experiences various conditions such as dynamic growth and development, static conditions, and bankruptcy conditions (ramadhariyansyah & suwitho, 2013). these conditions are not only influenced by intense competition, but also by other factors such as the economic crisis, deregulation changes, technological progress, and other factors. so, the companies that do not have enough capital will fail to continue their operations and experience bankruptcy, and vice versa. therefore, companies need to develop and take the right strategies to maintain their existence in order to grow and develop in the long run. there are various alternatives in preparing the company's strategy to maintain existence, increase efficiency and improve performance in order to become a large company, one of which is to expand. according to suad and emy (in as'ari, 2017), expansion is divided into two, namely internal expansion and external expansion. internal expansion can occur if the division of a company experiences normal growth through capital budgeting. moreover, external expansion occurs when the company conducts business mergers or acquisitions of other companies. acquisition activities in indonesia have started since the 1970s and are still far compared to developed countries that are more active. the business competition supervisory commission (kppu) as a healthy competition monitoring company in indonesia has data on the announcement of company acquisitions in 2018 from january to april 2018 both companies going public, private in indonesia as in table i. table 1. number of acquisition announcements in 2018 january – april source: http://kppu.go.id (2018) based on the table, the number of announcements of acquisitions in indonesia in 2018 from january to april amounted to 24 announcements where the number consisted of 15 acquisitions made by private companies and 9 public companies. the announcement of mergers and acquisitions made by companies can be used by investors as a consideration in investing. this event will affect the reaction of investors to make the right decision. reactions that occur in the capital market to events such as mergers and acquisitions can be measured using abnormal returns, namely the difference between the actual return and the expected return (jogiyanto in astria and sumiati, 2013). the profit generated from the event is the result of the time and risk that the investor carries out. then, this study examines the differences in abnormal returns before and after the announcement of mergers and acquisitions. literature review market efficiency gitman (2012) says efficient-market hypothesis (emh) is a theory that explains "perfect" market behavior where (1) securities are in equilibrium, (2) the price of securities fully reflects all available information and reacts quickly to new information, and (3) because the stock shows the price fully and fairly, investors do not need to waste time looking for securities that are undervalued / overvalued. this concept is important for investment management because it serves as a guide to expectations about profitable trading potential, the possibility of finding investment managers who can beat the market, and the limits of predictability in the capital market (elton et al, 2014). based on this concept, investors will always include information factors to make their decisions so that the effects of decision making can be seen from the prices of shares traded. fama (in elad & bongbee, 2017) divides market efficiency into three forms, namely weak form, describing the state of the capital market where all stock prices are formed from full historical information. semi strong form, describing the state of the capital market where stock prices are not only formed from historical information but also published information. strong form, describes the state of the capital market, where the stock price reflects all information including published and private information. haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 type of company number of m&a event non-go-publik 15 go-publik 9 total 24 11 signal theory signaling theory is a form of policy carried out by an issuer, government or investor which gives a signal or a sign to the market about the trends or trends to come (husnan in astria and sumiati, 2013). pratama and sudhiarta (2014) noted that an announcement can be considered positive if the company manager provides a good corporate perspective to the public in the future. according to hartono (in pratama and sudhiarta, 2014) a signal can be said to be valid and trustworthy if the company has conditions that are matching to the signals so that it gets a reaction from the parties concerned. these signals can cause positive or negative reactions; positive reactions can occur when a signal has good or beneficial information by interested parties such as investors who want to make benefits of the opportunities to get more profits. conversely, a negative reaction can occur if a signal is considered to have information that is not good or bad so investors will take action to protect their assets from the risks that can be generated from the information. mergers and acquisitions merger is a form of absorption of a company against other companies. most of the cases of mergers are generally large-sized companies that are kept alive and still maintain their name and legal status (surviving firm), while small-scale companies (merged firm) stop activities and their legal status are dissolved. the acquisition is a form of acquisition of company ownership by the acquirer resulting in a transfer of control/ownership of the company taken over. the control is the power in the form of power to: (1) regulate the financial policies and operations of the company, (2) appoint and terminate management (3) obtain majority voting rights at the board of directors meeting. motives of mergers and acquisitions every company that conducts mergers and acquisitions has different reasons or motives behind the decision making. according to moin (2010) the motives of companies to do mergers and acquisitions are economic motives, to achieve an increase in the value of the company in the long run by directing activities and decision making to achieve its goals using concrete steps such as through production efficiency, increasing sales, empowering and increasing resource productivity human. synergy motives, resulting from the assumption that a combination of simultaneous activities of two or more elements of a company such as operational, financial, managerial, technology and marketing merge so that the activity can produce a greater effect than the company's activities when working separately. diversification motives, business diversity strategies that are intended to support business activities and company operations to secure competitive positions. non-economic motives, arise from considerations such as wealth and ambition alone. this motive comes from the personal interests of both the management of the company and the owner of the company. previous research results research conducted by astria and sumiati (2013) shows that there are positive and significant differences in the period before and after that can be seen from the average abnormal return after a higher than before the announcement. this indicates that one of the objectives of the company is to carry out mergers and acquisitions, namely the creation of synergy has been achieved. in addition, from the research of elad and bongbee (2017) it was found that there were significant abnormal return changes in the three days leading up to the announcement of mergers and acquisitions which could occur by the possibility of leakage of information or a sign of transactions conducted by "insiders" at the company, which gave they are opportunities for profit. darlis and zirman (in tarigan, 2015) stated that changes in stock prices indicate a change in the level of shareholder prosperity as measured by a positive abnormal return. another study conducted by sundari (2016) also shows that there are differences in abnormal returns before and after mergers and acquisitions. in the research of shah & arora (2016), there is no significant difference in the abnormal return bidder firm. whereas in target firms results in a significant difference in abnormal returns. this is because investors are aware of the high amount of premium that will be paid to the target company when the negotiations are closed. thus, this announcement will attract investors to buy target shares in hopes of getting a high return in the future. rusnanda and pardi (2013), show that there is no significant difference between abnormal returns before and after acquisition. these results occur because most likely due to non-economic reasons such as saving other companies from the threat of bankruptcy and personal reasons so that the economic objectives of the company cannot be achieved. lim and wiyoto (2015), show that there is no difference between abnormal returns before and after the announcement of mergers and acquisitions. as'ari (2017), shows that empirically there has been a decrease in abnormal stock returns after the haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 12 announcement of mergers and acquisitions but overall there is no significant difference between abnormal returns before and after the announcement. the absence of these differences is due to information leakage because in general information regarding mergers and acquisitions has entered the agenda of the company's general meeting of shareholders (gms) so that market response has occurred before the publication is carried out. surianto & yustiani (2015), shows that there is not enough evidence that there is a significant effect between the announcement before and after the merger and acquisition on abnormal returns. this can occur because of the factors of the global economic crisis which resulted in the absence of market response. purposes based on the description above as for the purpose of this study is to determine differences in abnormal returns between before and after the announcement of mergers and acquisitions. what distinguishes this research with previous research is the observation period which is carried out 3 days before and 3 days after the announcement of acquisition to prevent other information that can affect, and the stock price used to obtain abnormal returns is to use intraday stock prices every 15 minutes so that the frequency of abnormal return observed are more greater. the research hypothesis is as follows: ho: there is no difference in abnormal returns before and after the announcement of mergers and acquisitions ha: there are differences in abnormal returns before and after the announcement of mergers and acquisitions research methods this study also uses the 7-day event window around the announcement date which is divided into 3 days before (t-3) and 3 days after (t + 3) while (t, 0) is the announcement day of mergers and acquisitions. the stock price used in this study is intraday closing price in 15 minutes. the variable used is abnormal return. abnormal return calculation in this study uses the market adjusted return model method with the following stages: calculating actual stock returns actual return is the return that has occurred which is calculated based on the current price relative to the previous price and can be calculated from historical data. according to elad & bongbee (2017) in conducting event studies, sometimes it needs to be seen from its returns and not from the stock price directly. therefore, the stock price is changed to return natural logarithms. the formula for calculating actual return is as follows: rit = actual stock return i for a period of 15 minutes t ln = natural logarithm pt = price of stock i for a period of 15 minutes t pt-1 = share price i before the period of 15 minutes t calculating the expected return value expected return or e (rit) is the expected profit if an event does not occur. in the market adjusted return model, the expected return of individual stocks is considered the same as the market return because the formulation on this model assumes that α = 0 and β = 1. this is based on the assumption that the α value is usually very small while the average β of the entire company is close to 1. in indonesia to calculate market returns can use jakarta composite index (jci). here's the equation for finding market returns: rmt = market return for a period of 15 minutes t jcit = jakarta composite index for a period of 15 minutes t jcit-1 = jakarta composite index before the 15-minute period t calculate abnormal returns abnormal returns can be obtained by comparing the expected return with the actual return. abnorharyanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 13 mal return is searched with the following equation: data collection technique this study uses secondary data collection methods as sources. that is the announcement date obtained from the kppu database (www.kppu.go.id), the data of publicly listed companies listed on the idx from the www.sahamok.com site and the idx database (www.idx.co.id), corporate action data obtained from the idx database (www.idx.co.id), a 15-minute share price obtained from pt. imq multimedia utama and jsxpro. the sample in this study was determined using purposive sampling technique, where the sample was chosen based on the criteria that have been determined, (1) the company for each type of industry that conducts mergers & acquisitions in 2018 (january-april), (2) status public before the merger & acquisition, (3) do not make other announcements such as dividend announcements (shares, cash, or bonuses) or split stock (observation stock), (4) completed 15 minutes stock price data. the number of samples taken in this study are 9 companies. tabel 3. list of public companies that conduct mergers & acquisitions used as sample source: kppu.go.id (2018) analyzing technique descriptive statistics, the use of descriptive statistics in this study was conducted to describe the data in the form of mean (mean), maximum, minimum and standard deviation. normality, based on the central limit theorem data can be assumed to be normally distributed if the amount of data is more than 30 (n> 30) without regard to population distribution. because the observation data of each sample company uses 15 minutes of data and the number is more than 30 according to the central limit theorem data can be considered normal distribution. paired sample t-test is a parametric test to test the difference between two paired samples, namely the before and after abnormal returns. the use of paired sample t-tests was conducted to test hypotheses to analyze whether there were significant differences in abnormal returns before and after the announcement of company mergers and acquisitions. 1) sig (2-tailed) value <0.05 can be said there are differences in abnormal returns before and after the announcement of mergers and acquisitions. 2) sig value. (2-tailed)> 0.05 it can be said that there are differences in abnormal returns before and after the announcement of mergers and acquisitions. results and discussion descriptive statistics results descriptive statistics are used to display an overview of the data samples used in this study. table 4 presents the abnormal return descriptive statistics before the announcement of the acquisition during the haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 no. code acquisitor target date 1 masa pt multistrada arah sarana tbk pt penta artha impressi 01/16/2018 2 indy pt indika energy pt kideco kaya agung 01/19/2018 3 eraa pt erajaya swasembada tbk pt indonesia orisinil teknologi 02/27/2018 sril pt sri rejeki isman tbk pt. primayudha mandirijaya 03/26/2018 4 pt. bitratex industries 5 kbli pt kmi wire and cable tbk pt langgeng bajapratama 03/29/2018 6 roti pt nippon indosari corporindo tbk pt prima top boga 03/29/2018 7 itmg pt indo tambangraya megah tbk pt energi batubara perkasa 04/19/2018 8 icbp pt indofood cbp sukses makmur tbk pt anugerah indofood barokah makmur 04/27/2018 9 medc pt medco energi international lundin indonesia holding bv 04/27/2018 14 observation period which is a 15-minute period three days before the announcement. table 4. descriptive statistics results of pre-abnormal return source: data processed by researchers (2018) from the results of table 4 it can be seen that the standard deviation of all sample companies at the time before the announcement of mergers and acquisitions is more than the average value of abnormal returns. this result indicates the variability of abnormal returns during observation periods are high. in addition, 3 out of 9 companies have an average negative abnormal return consisting of pt. multistrada arah sarana tbk. -0.02%, pt. sri rejeki isman tbk. -0.026%, and pt. indo tambangraya megah tbk. -0.019%. while the other 6 samples have an average abnormal return before a positive announcement. the minimum and maximum columns in the table show the minimum and maximum abnormal return values obtained before the announcement of mergers and acquisitions. based on the table, the minimum abnormal return value obtained before the merger and acquisition is -5.13% by pt. multistrada arah sarana tbk. while pt. eraajaya swasembada is a company that has a maximum abnormal return value of 2.92%. table 5. descriptive statistics of post-abnormal return source: data processed by researchers (2018) table 5, shows the results of descriptive statistics of abnormal returns after the announcement of mergers and acquisitions. the results in the table show the standard deviation of all samples that are greater than the mean value which indicates high sample data variability. other results indicate that 4 sample companies have a negative average abnormal return after the announcement of mergers and acquisitions. in contrast, the other 5 companies have positive average abnormal returns after the announcement of mergers and acquisitions. haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 minimum maximum mean std. deviation masa -.05134 .02155 -.00022 .00823 indy -.01249 .02833 .00018 .00505 eraa -.01495 .02926 .00102 .00778 sril -.01022 .00690 -.00026 .00375 kbli -.00999 .01720 .00011 .00467 roti -.01280 .00873 .00017 .00325 itmg -.00966 .01075 -.00019 .00390 icbp -.00866 .01368 .00047 .00361 medc -.02681 .01894 .00001 .00565 minimum maximum mean std. deviation postmasa -.03178 .06474 .00074 .01159 postindy -.01431 .01177 -.00013 .00442 posteraa -.01150 .06027 .00208 .01094 postsril -.01128 .01880 .00002 .00497 postkbli -.01579 .02590 -.00028 .00564 postroti -.02840 .02040 .00034 .00694 postitmg -.01382 .01198 -.00035 .00353 posticbp -.02548 .01434 .00012 .00572 postmedc -.03383 .03847 -.00020 .00757 15 table 6. the comparison of cumulative abnormal return source: data processed by researchers (2018) in table 6 shows the cumulative abnormal return comparison before and after acquisition acquisition. cumulative abnormal return increase occurred in 4 research sample companies which are pt. multistrada arah sarana tbk. (6.82%), pt. erajaya swasembada tbk. (7.48%), pt. sri rejeki isman tbk. (2.03%), and pt. nippon indosari corpindo tbk. (1.31%). the cause of the positive response to the market was due to the acquisition of pt. indonesia original technology (pt. iot) aims to develop business by registering pt. iot to obtain information technology-based lending and borrowing service licenses from the financial services authority so as to get good sentiment. decrease cumulative abnormal return occurred in 5 companies in this study sample which are namely pt. indika energy tbk. (-2.31%), pt. kmi wire and cable tbk. (-2.95%), pt. indo tambangraya megah tbk. (-1.03%), pt. indofood cbp sukses makmur tbk. (-2.63%), and pt. medco energi international tbk. (-1.62%). the biggest cumulative decrease in abnormal return occurred at pt. kmi wire and cable tbk. with the cumulative value of abnormal return of -2.95%. the decrease was due to the takeover of shares of pt. langgeng bajapratama as a supporter of the development plan for the transmission and power generation sector has received a negative response from investors. hypothesis test this test was carried out using parametric analysis techniques that is paired sample t-test with a significance level of 0.05. table 7. results of paired sample t-test source: data processed by researchers (2018) based on the paired sample t-test in table 7 sig (2-tailed) value in all company samples, there are masa of 0.568, indy 0.676, eraa 0.516, sril 0.524, kbli 0.641, roti 0.851, itmg 0.773, icbp 0.660 and medc 0.837 shows > 0.05, which means ha is rejected and h0 is accepted. these results indicate that there is not enough evidence that there is a significant difference in abnormal returns in the observation period of this study, that is 3 days before and after the announcement in the 15-minute period. haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 pre post differ masa -.01584 .05237 0.06821 increase indy .01347 -.00966 -0.02313 decrease eraa .07253 .14736 0.07483 increase sril -.01859 .00168 0.02027 increase kbli .00815 -.02131 -0.02946 decrease roti .01248 .02561 0.01313 increase itmg -.01462 -.02491 -0.01029 decrease icbp .03514 .00889 -0.02625 decrease medc .00092 -.01532 -0.01624 decrease t sig. (2tailed) postmasa – premasa .574 .568 insignificant postindy – preindy -.420 .676 insignificant posteraa – preeraa .653 .516 insignificant postsril – presril .641 .524 insignificant postkbli – prekbli -.468 .641 insignificant postroti – preroti .188 .851 insignificant postitmg – preitmg -.289 .773 insignificant. posticbp – preicbp -.442 .660 insignificant postmedc – premedc -.206 .837 insignificant 16 this result is consistent with research conducted by rusnanda & pardi (2013), as'ari (2017), lim & wiyoto (2015), surianto & triyani (2015) and shah & arora (2014). the insignificant test results prove that although there are abnormal return changes after the announcement of various acquisitions in each company, it has not been proven that there is a statistically significant difference in the response of the market. there may be no response to the market due to several factors, including:(1) announcement of mergers and acquisitions is not a shocking event or signal and is normal so that market expectations before and after the announcement are not much different, according to as'ari (2017) in general information on mergers and acquisitions is included in the agenda of the general meeting of holders shares (gms) resulting in information leakage. (2) the global economic crisis, in early january 2018 to mid-year, the rupiah underwent pressure so that the value of the rupiah decreased. this can have an impact on the decision making of investors to resist the desire to invest until the economic situation stabilizes. (3) lack of active shares traded on the stock exchange. this causes actual return to not change and cause the value to be zero. the results of this study are not in line with the research conducted by astria & sumiati (2013) and sundari (2016) which shows that there are differences in abnormal returns before and after the announcement of mergers and acquisitions. conclusion based on the results of this study, in conclusion there are no abnormal returns before and after mergers and acquisitions. the absence of these differences is caused by a variety of things, namely the market response to mergers and acquisitions as usual so that they do not have expectations that differ significantly between abnormal returns before and after the announcement of mergers and acquisitions, the global economic crisis that causes investors to withhold investment until the economy is stable, and company shares are less actively traded on the stock exchange suggestion for the next research can (1) use samples of companies that are actively traded on the capital market. (2) adding other variables such as trading volume in 15 minutes so that the results of the research obtained are more varied, (3) making observations on abnormal returns for each stock trading session. bibiliography as’ari, l, amin, m, and mawardi, m.c. (2017). analisis dampak pengumuman merger dan akuisisi terhadap abnormal return saham pada perusahaan akuisitor yang terdaftar di bei tahun 2013-2015. jurnal ilmiah riset manajemen, vol.6, pp.1-11. astria, nike and sumiati. (2013). analisis dampak pengumuman merger dan akuisisi terhadap abnormal return saham perusahaan akuisitor yang terdaftar di bei tahun 2006 – 2008. jurnal ilmiah mahasiswa universitas brawijaya, vol.1, no.2 elad, f. l. and bongbee, n. s. (2017). event study on the reaction of stock returns to acquisition news. international finance and banking, vol. 4, no. 1, pp. 33-43 elton, e. j, gruber, m. j, brown, s. j and goetzman, w. n. (2014). modern portofolio theory and investment analysis. united states of america: wiley gitman, l. j and zutter, c. j. (2012). principles of managerial finance. united states of america: pearson. lim, s.a. and wiyoto, s. (2014). analisis perbedaan abnormal return dan kinerja keuangan perusahaan sebelum dan sesudah merger atau akuisisi. ultima accounting, vol. 6, no. 2, pp. 18-38. moin, abdul. (2010). merger, akuisisi dan divestasi. jakarta: ekonisi. pratama, i.g.s and sudhiarta, g.m. 2014. analisis perbandingan abnormal return saham sebelum dan sesudah pengumuman right issue. e-jurnal manajemen universitas udayana [s.l.], vol.3, no.1, pp. 243-257. ramadhariyansyah, h and suwitho. (2013). dampak pengumuman akuisisi terhadap abnormal return saham akuisitor dan target. jurnal ilmu & riset manajemen, vol. 2, no. 5, pp. 1-20 rusnanda, e. w and pardi. (2013). analisa pengaruh pengumuman merger dan akuisisi terhadap abnormal return saham bank umum di bursa efek indonesia, graduasi, vol.29, pp. 89-101. shah, p and arora. p. (2014). m&a announcements and their effect on return to shareholders: an event study, accounting and finance research, vol. 3, no. 2, pp. 170-190. sundari, r. i. (2016). kinerja merger dan akuisisi pada perusahaan go public. telaah bisnis, vol.17, no.1. pp. 51-64. surianto, k and triyani, y. (2015). analisis merger dan akuisisi terhadap kinerja keuangan dan abharyanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 17 normal return pada perusahaan yang terdaftar di bursa efek indonesia periode 2009-2012. jurnal ekonomi perusahaan, vol 22, no. 2, pp.142-159 tarigan, p. p. and pratomo, w. a. (2015). analisis dampak merger dan akuisisi terhadap abnormal return dan kinerja keuangan pada perusahaan yang terdaftar di bursa efek indonesia. jurnal ekonomi dan keuangan, vol.3, no 3, pp. 200-212 haryanto, s., mardiyati, u., buchdadi, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (9-17)  analyzing abnormal return before and after the announcement of merger and acquisition in 2018.  https://doi.org/10.21009/jobbe.002.1.02 68 abstract this study aims to explore the effects of organizational culture on organizational commitment of civil servants in an indonesia context. the sample comprised of 71 civil servants working at cilegon city government in indonesia which were selected by a multistage stratified sampling method. a scale that aimed to measure the civil servants’ organizational culture and their organizational commitment was used to collect data. mean scores, pearson moment correlation coefficients, and simple linear regression analyses were carried out to analyze data. the result of this study is positive relationships between organizational culture and organizational commitment. the results indicated that organizational culture was a significant predictor of organizational commitment. keywords: civil servants, organizational culture, organizational commitment. received: 15 may 2019 ; accepted: 15 may 2019; publish; december 2018 how to cite: hkualizaman, t., hamidah , h., & handaru, a.. (2018). investigating organizational culture among civil servants organizational commitment. journal of business and behavioural entrepreneurship, 2(2), 68-74. https://doi.org/10.21009/jobbe.002.2.03 investigating organizational culture among civil servants organizational commitment tubagus hkualizaman universitas negeri jakarta email: tubagushkualizaman_im15s3@mahasiswa.unj.ac.id hamidah universitas negeri jakarta email: hamidah@unj.ac.id agung wahyu handaru universitas negeri jakarta email: agung_1178@yahoo.com 69 introduction currently, human resources are the most effective important factors in the growth and improvement of organizational productivity. the topics between the commitment of the organization and the success and progress of an organization are very interesting for a more in-depth discussion (dicky hida syahchari & kurnia, 2019). the unique nature of service to the community influences the need to conduct research that focuses on civil servants. organizational commitment is an emotional attachment of individuals with organizational vision, mission, goals and values. employees with high organizational commitment will be more enthusiastic to work and support the organization's vision, mission and goals. in addition, organizational commitment is an attribute that employees need for great loyalty and intention for a shared organization and exert more effort in their work (hamidi et al., 2017). employees or civil servants (pns) who are committed are considered as assets for any organization. civil servants are the most valuable assets in government organizations civil servants have a position and play an important role because it is an element of the state apparatus tasked with carrying out development and government as an effort to achieve national goals. usually, civil servants will remain in the organization if they have a feeling of commitment to the organization. civil servants who are committed are motivated workforce that provides functional excellence and good performance (rahman, kusuma, & utomo, 2016). organizational culture as a basic philosophy that provides direction for organizational policies in the management of organizational members and a shared system of meanings is formed by its members which at the same time becomes a differentiator from one organization to another. one specific outcome of a strong culture is creating high agreement among members about what the organization believes. the harmony of objectives fosters cohesion, loyalty, organizational commitment and, most importantly, avoids conflicts (d h syahchari, suryasaputera, & yahya, 2015). but when in an embedded cultural organization environment are cultures that have negative values, then the influence that can be generated will be worrying for the development of the organization itself in the future.(paranoan, d. b., & djumlani, 2017). several studies have shown the relationship between culture and organizational commitment. several factors shape organizational commitment including motivation, job satisfaction and emotional intelligence. hence, one of the important factors affecting the establishment of organizational commitment is organizational culture organizational culture, as the most important factor affecting life and identity of an organization, has always been of particular interest to all scholars of management. organizational culture consists of ideas, values, and attitudes that are shared by individuals in organizations; it also refers to perceptions or notions employees have toward an organization. in human-centered organizations such as service to the community, organizational culture plays an important role in creating organizational commitment and its success. to strengthen and promote the existing organizational culture in these organizations,various aspects of dominating culture available must be first examined. civil servants in the government of the city of cilegon in indonesia can play an important role in facilitating the system's objectives for the community by monitoring their culture of work and commitment, so that this research refers to the relationship between cultural organization and the commitment of civil servants' organizations working in the government of the city of cilegon in indonesia is very important and this is a novelty in terms of the research object. hkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 70 literature review organizational commitment the relationship between organizational success and organizational commitment is very important to discuss. many highly committed employees are employed and maintained by companies or organizations as an important part of their human resource management strategy. organizational commitment in the workplace can take various forms and may be concluded, potentially affecting organizational effectiveness and employee welfare. although there is increasing attention given to the study of organizational commitment in the workplace, it seems that there is still a lot of confusion and disagreement about it, where it is directed, how it develops, and how it affects employee behavior. kinicki, a and kreitner, r argue organizational commitment reflects how strongly someone identifies himself with an organization and is committed to its goals. this is influenced by a number of factors in the organizing framework, including personality, leader behavior, organizational culture, courage, organizational climate, and psychological contracts. committed individuals tend to display two results. a) the possibility of continuing their work with their organization, b) having greater motivation to pursue organizational goals and decisions.(kinicki, a., & kreitner, 2018). furthermore, steven l mcshane and von glinow said that organizational commitment represents what some experts call work attitude as a whole. affective organizational commitment is the emotional attachment of employees to, involvement and identification with an organization. affective commitment is a psychological bond in which a person chooses to be dedicated and responsible to the organization. affective commitment is different from continuance commitment or continuous commitment, which is a calculative attachment to the organization (mcshane, s. l., von glinow, m. a. y., & von glinow, 2018). organizational culture the collection of members in the organization is unique to each other. these differences come from family backgrounds, environment, education, diverse economics. this situation must be taken seriously by the organization when the organization wants to equalize perceptions and shared goals within the organization. organizational culture will be formed with the fusion of individuals who are rich in differences that will form a different organizational culture than others. before stepping into the nature of organizational culture in more detail, it is better to understand what an organization is from the perspective of experts so that there is no mistake in understanding the culture as a whole. jennifer m. george, gareth jones stated; the organization is a collection of people who work together and coordinate their actions to achieve various goals. the goal is what individuals try to achieve as members of an organization. in organizations there is an organizational culture that applies in it. organizational culture can support or can also hinder the progress of the organization in achieving its goalsn (jennifer m. george, 2012). kinicki, a and kreitner, r stated organizational culture is a set of values of mutual agreement that organizational members hold control and determine how to view, think about and react to the dynamics faced by organizations in various conditions and environments (kinicki, a., & kreitner, 2018). organizational culture and organizational commitment organizational culture is an important variable of employee organizational comhkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 71 mitment. an important aspect of organizational commitment is motivating employees to be able to contribute to achieving organizational performance. furthermore, organizational culture is an important factor in increasing the level of organizational commitment of employees. the reason why organizational culture influences employee commitment is because culture requires basic values, norms and behavior patterns that are also relevant in the organizational context. in addition, organizational culture is needed for the success or failure of an organization. in particular, positive organizational culture builds employee commitment to the organization. in addition, organizational culture can also increase employee commitment to achieving organizational goals. the results of research by sulakshna dwivedi, sanjay kaushik, and luxmi are employees of small-scale outsourcing business process outsourcing (bpo) companies who consider their organizational culture to be better than medium or large scale bpo (dwivedi, kaushik, & luxmi, 2013). and, with regard to organizational commitment, small-scale bpo employees have a much higher level of commitment than medium or larger bpo employees. because organizational culture is better in smallscale bpos and so is their commitment, the results of the research give us a signal that organizational culture has a definite impact on employee commitment. furthermore, the results of these studies indicate that employee commitment is very sensitive to the six dimensions of organizational culture, namely pro-action, confrontation, trust, authenticity, experimentation, and collaboration. furthermore, the results of the study indicate that the focal point in developing any strategy must be directed at influencing employee commitment to the organization. in line with these these arguments, it is hypothesized as follows. hypothesis 1: organizational culture affects significantly towards organizational commitment. methodology this study uses a quantitative approach through survey methods with path analysis techniques (path analysis). the analysis is used to facilitate the influence or causal of exogenous variables on endogenous variables. this quantitative research approach explains statistically in answering hypothesis testing. in this cross-sectional study, 71 civil servants at cilegon city government in indonesia were selected by a stratified sampling method.then, different units of each class were considered as a cluster by which the study sample was randomly selected according to the list of personnel, and then the questionnaires were distributed for completion by individuals. as for the instrument grid the variable organizational commitment and organizational culture is as follow: table 1 : indicator and number of questions of organizational commitment variable source: hamidi, y., et al (2017) hkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 no organizational commitment indicator number of item questions 1 civil servants engagement to cilegon city government 9 2 dedication and responsibility for the target of cilegon city government 8 3 moral understanding based on the feeling of obligation and responsibility in cilegon city government 7 amount 24 72 table 2 : indicator and number of questions of organizational culture variable source: dwivedi, s., kaushik, s., & luxmi. (2013) research results and discussion description of data organizational commitment organizational commitment variables have a valid number of items as many as 18 valid statements with a rating scale measurement consisting of five alternative answers (rating scale 1 to 5). the total score of organizational commitment is in the interval between 30 and 93. the smallest difference in the number of scores with the largest number of scores has a range of 60. the distribution of research data shows an average score of 61. other statistical values show median = 60, mode = 56, standard deviation = 12.68 and variants of 160.76. the highest score in the organizational commitment variable is a moral understanding based on the feeling of obligation and responsibility in the cilegon city government while the lowest is the civil servants engagement towards the cilegon city government organizational culture organizational culture variables have a number of valid items as many as 25 valid statements with a rating scale measurement consisting of five alternative answers (scale values 1 to 5). number of scores organizational culture is at intervals between 38 and 89. the smallest difference in the number of scores with the largest number of scores has a range of 51. the distribution of research data shows an average score of 62. other statistical values show median = 64, mode = 66, standard deviation = 12.37 and variants of 153.02. the highest score in the variable organizational culture is cooperation while the lowest value each other tabel 3: result of research hkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 no organizational culture indicator number of item questions 1 values of life 4 2 the stability of a conducive atmosphere 6 3 respect each other 6 4 result orientation 6 5 cooperation 6 amount 28 no path path coefficient tcount ttable 0,05 0,01 result 1 x1 to y py2=0,219 2,102 1,997 2,650 significant 73 many research and reference theories state that organizational culture is one of the factors that are thought to be able to influence organizational commitment. in a research written by van den broek, k. f. a., moningka, c., & angkawijaya in 2018 said that, “organizational culture is important variable that could effect taxi drivers organizational commitment regardless of their generational differences” (febrina et al., 2017). the opinion confirms that there is an influence of organizational culture on organizational commitment. conclusions, implications, and recommendations conclusion based on the description of the analysis in this study there is a positive direct influence of organizational culture on organizational commitment. the findings of this study illustrate that a strong increase in organizational culture will lead to an increase in civil servants organizational commitment in cilegon city government. implications based on the results of the study, the following implications were formulated: the results of this study found that there was a positive direct effect of organizational culture on civil servants organizational commitments in cilegon city government. the implication is that the stronger the organizational culture, the higher the organizational commitment held by pns in cilegon city government. efforts to improve organizational culture can be done by improving the values of life, stabilizing a conducive atmosphere, mutual respect, results orientation and cooperation. thus organizational culture is one of the important factors that must be considered to improve organizational commitment recomendation based on the conclusions and implications of the description above, the suggestions put forward by the researcher are as follows: the organizational culture conditions should be improved because it is proven to have a positive effect on pns organizational motivation and commitment in the cilegon city government. the weakest aspect in organizational culture is how to interpret the values of life in carrying out tasks. for this reason, improvements can be made to organizational culture, including: 1). leaders should care about the problems that exist in employees in the context of organizational and unitary interests; 2). leaders should be sensitive to every situation that will affect the reputation of the organization; 3). the unit where we work should uphold religious values, a sense of togetherness and mutual respect; 4). strengthening organizational culture by civil servants in cilegon city government who have similarities in beliefs and values that are of concern to the organization. bibiliography dwivedi, s., kaushik, s., & luxmi. (2013). impact of organizational culture on turnover intentions in bpo sector in india. indian journal of industrial relations, 48 (4), 77–92. retrieved from http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer? sid=fd6c35a1-bccd-4775-ac5c-9c6d141ac439% 40sessionmgr4002&vid=4&hid=4105 hkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 74 hamidi, y., mohammadibakhsh, r., soltanian, a., behzadifar, m., management, h., sciences, m., & management, h. (2017). relationship between organizational culture and commitment of employees in health care centers in west iran. electronic physician, (january), 3646–3652. jennifer m. george, g. r. j. (2012). understanding and managing organizational behavior. in pearson hill (sixth). https://doi.org/10.2307/30040635 kinicki, a., & kreitner, r. (2018). organizational behavior: key concepts, skills & best practices.second. mcgraw-hill/irwin. mcshane, s. l., von glinow, m. a. y., & von glinow, m. a. (2018). organizational behavior, emerging knowledge global reality (8, ed.). mcgraw-hill education. paranoan, d. b., & djumlani, a. (2017). hubungan budaya kerja dengan komitmen pegawai negeri sipil di lingkungan rumah sakit jiwa daerah atma husada mahakam. jurnal a dministrative reform (ja r), 2(2), 138–148. rahman, m. g., kusuma, a. r., & utomo, h. s. (2016). studi tentang a nalisis jabatan pada dinas kehutanan provinsi kalimantan timur. 4(4), 761–772. syahchari, d h, suryasaputera, r., & yahya, b. a. m. (2015). impact of partner fit and conflict management on alliance performance in indonesian construction companies. journal of business and social review in emerging economies, 1(1), 17–26. https://doi.org/10.26710/jbsee.v1i1.4 syahchari, dicky hida, & kurnia, l. h. (2019). the effect of leadership style and compensation on organizational commitment of babinsa in jakarta. jurnal pertahanan, 4(2), 70. https://doi.org/10.33172/jp.v4i2.402 hkualizaman, t., hamidah , h., & handaru, a.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (68-74)  investigating organizational culture among civil servants organizational commitment.  https://doi.org/10.21009/jobbe.002.2.03 18 abstract the aim of this study is to determine the effect of financial performance toward firm value with ownership structure as moderating variable on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016. independent variable of this study is financial performance with return on assets as a proxy. dependent variable of this study is firm value with tobin’s q as a proxy. while moderating variable used in this study is a mechanism of corporate governance in the form of ownership structure with managerial ownership and institutional ownership as the proxy. then control variable in this study are firm size and leverage. the research model of this study employs panel data analysis with fixed effect model approach. the empirical result shows that financial performance has positive significant effect on firm value. managerial ownership and institutional ownership can’t moderate the relation between financial performance on firm value. firm size has negative significant effect on firm value. and leverage has insignificant effect on firm value. keywords: firm value, financial performance, ownership structure. received: 03 september 2018 ; accepted: 20 september 2018; publish; oktober 2018 how to cite: luthfiah,a,a., suherman. (2018).the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).journal of business and behavioural entrepreneurship, 2 (1), 18-27. https://doi.org/10.21009/jobbe.002.1.03 the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016) anida amalia luthfiah faculty of economics, state university of jakarta email: amaliaanida96@yahoo.com suherman faculty of economics, state university of jakarta email: suherman@feunj.ac.id 19 introduction one of the main objectives of the companies that have gone public is to increase prosperity for the owners of the company or shareholders. because the shareholders (investors) who have invested their wealth in a company certainly want the maximum return from the company. with the increase in stock prices owned by the company, it will have a positive impact on the company's prosperity and return for shareholders. the company's stock price can be affected by the condition and financial position of the company which are described in the financial statements or the company's annual report. because through the financial statements or the company's annual report there is a description of information about the achievements and performance of the company during a period that can affect the decision making made by investors. if the company's operations run well, then the value of the company also increases and will have a good influence on the company. in addition, there are many factors that can affect the value of the company and research on factors that can affect the value of the company has also been carried out, including a company's financial performance, corporate governance, and so on. if a company's financial performance shows good prospects, then the company's shares will be increasingly in demand by many investors and can affect the selling value of the shares. financial performance assessment can be done using financial ratio analysis. and one of the ratios that will be used to measure financial performance is return on assets (roa). roa itself is one part of the profitability ratio to measure the company's ability to generate profits by using total assets. high roa shows that the total assets used for operating activities of the company is able to generate greater profits for the company. and low roa shows that the total assets used generate small profits for the company. so it can be said that the higher the roa value, the better the company's financial performance will be followed by the increase in the stock price of the company. miller and modigliani (1961) stated that the firm's value was determined by earnings power of the company's assets. marsha and murtaqi (2017) also found that roa has a positive effect on firm value. however, different results were obtained by munawaroh (2014) who found that roa had a negative effect on firm value. this shows the possibility of other factors that affect the relationship between roa and company value. in the process of maximizing the firm value, there may be a conflict of interest between the manager or management and shareholders. the management may prioritize their personal interests that are not in line with the company's main objectives and ignore the interests of shareholders. differences in interests between management (agent) and shareholders (principal) are known as agency conflict. asmawati and amanah (2013) found a positive relationship between managerial ownership and firm value, this is because managerial ownership is considered capable of reducing agency problems arising from differences in managerial interests with shareholders or company owners, which would have a positive impact on company value. wijaya and linawati (2015) also stated that managerial ownership is able to moderate the relationship between financial performance and corporate value, which means that higher managerial ownership makes the management try as much as possible for the benefit of shareholders. sukirni (2012) precisely states that managerial ownership has a negative effect on firm value. this is because there are not many management who have a significant number of company shares and because of the low number of managerial ownership, managers are more concerned with their own goals as managers rather than the interests of the company or shareholders. however, pertiwi and pratama (2012) revealed that managerial ownership cannot moderate the relationship between financial performance and firm value. sukirni (2012) found a positive relationship between institutional ownership and company value, this means that the greater the institutional ownership, the more efficient for company to use their assets and is expected to also act as a prevention of waste and manipulation of earnings that may be carried out by management so that it will increase the value of the company. in addition, dewi and tarnia (2011) stated that institutional ownership was considered to be able to moderate the relationship between financial performance and firm value. different research results were revealed by dewi and sanica (2017) who assumed that institutional ownership or share ownership by parties outside the company did not affect the value of the company. heder and priyadi (2017) state that institutional ownership cannot moderate the relationship between financial performance and firm value. research on financial performance towards firm value, which is moderated by ownership structures, has not been done too much in indonesia. most of the related research only took too few samples and the majority focused on companies in the food and beverage sector in indonesia. based on these reasons luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 20 the researcher was interested in conducting research with the title: "the effect of financial performance toward firm value with ownership structure as moderating variables in manufacturing companies listed in indonesia stock exchange from 2012 to 2016". research purposes the purpose of this research are to examine the impact oof financial performance, managerial ownership as a moderating variable, and institutional ownership as a moderating variable on firm value in manufacturing companies that listed in indonesia stock exchange in the period of 2012-2016. theoritical review agency theory jensen and meckling (1976) propose an agency theory which describes agency relations as contracts where one or more people (principals) employ other people (agents) to provide a service and then delegate decision-making authority to the agent. thus a good work contract between the principal and agent is a work contract that explains what the manager must do in managing the invested funds and the profit sharing mechanism in the form of profits, returns and risks that have been agreed by both parties. the essence of the agency relationship is the separation of functions between investor ownership and control on the part of management. signaling theory signaling theory emphasizes the importance of information issued by companies to investment decisions of parties outside the company. according to sharpe (1997) the announcement of accounting information gives a signal that the company has good prospects in the future so investors are interested in trading shares, thus the market will react which is reflected through changes in stock trading volume. thus the relationship between the publication of information on financial statements, financial conditions, or socio-politics on stock trading fluctuations can be seen in market efficiency. good corporate governance according to sutedi (2012) corporate governance is a process and structure used by corporate organs to increase business success and corporate accountability in order to realize long-term shareholder value while still paying attention to other stakeholders, based on legislation and ethical values. good corporate governance as a form of good corporate management has five important elements that must always be a reference in corporate governance, namely: a. transparency b. accountability c. responsibility d. independence e. fairness firm value according to nurlela and islahudin (2008) the firm value can be defined as market value. the reason is because the value of the company can provide prosperity or profit for the shareholders to the maximum if the company's stock price increases. the higher the stock price, the higher the profit for the shareholders. company value can be calculated by comparing the market value of equity and total corporate debt with total company assets, which can be formulated as follows: tobin’s q = financial performance according to munawir (1998) performance is an illustration of the level of achievement of the implementation of a company's activities in realizing the goals, objectives, mission, and vision of an organization contained in the strategic planning of a company. while financial performance is work performance that has been achieved by the company in a certain period and contained in the financial statements of the company concerned. financial performance is used as a reflection of the company's ability to allocate sources of funds owned by the company. financial performance in this study is measured using return on assets, which can be formulated as follows: roa = x 100% luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 21 managerial ownership according to christiawan and tarigan (2007) managerial ownership is a condition in which the manager has a share of the company or in other words the manager is at the same time as a shareholder. while wahidahwati (2002) defines managerial ownership as the level of ownership of company shares by directors and commissioners who actively participate in decision making in the company. managerial ownership can be formulated as follows: km = x 100% institutional ownership according to tarjo (2008) institutional ownership is the ownership of shares of companies owned by institutions such as insurance companies, banks, investment companies, and other institutional ownership. meanwhile, according to widiastuti, et al. (2003) institutional ownership is ownership of shares by external institutions. institutional ownership can be formulated as follows: ki = x 100% firm size firm size is seen from the total assets owned by the company that can be used for the company's operating activities. if the company has a large total assets, the management will be more free to use the assets in the company. if viewed from the management side, the ease with which it controls the company will increase the value of the company (suharli, 2006). company size can be formulated as follows: size = ln (total assets) debt ratio (leverage) jannati, et al. (2014) states that funds derived from debt are needed by companies because the financing of a company's operational activities cannot be closed only with funds from within the company. kasmir (2014) states that leverage ratio measures the amount of debt used to finance business activities when compared to its own capital, and how much the debt is allocated to finance company assets. leverage can be formulated as follows: leverage = hypothesis h1: financial performance has a positive effect on firm value. h2: managerial ownership is able to moderate the relationship of financial performance to firm value. h3: institutional ownership is able to moderate the relationship between financial performance and firm value figure 1. research model source: data processed by the author (2018) luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 22 research methods the sample of this study was determined through purposive sampling method. the purposive sampling method is a method of determining the sample in which the selected sample is in accordance with the criteria set and selected with certain considerations in accordance with the research objectives in order to obtain a representative sample. the criteria for samples in manufacturing companies are: a. all companies included in the manufacturing industry group that listed in indonesia stock exchange and publish consecutive annual reports or financial statements from 2012 to 2016. b. manufacturing companies that issue financial statements in rupiah. c. the sample used in this study is a manufacturing company that has managerial ownership and institutional ownership during the period 2012-2016. the company displays data and information needed by researchers about the variables in this study in full. based on these criteria found about 42 manufacturing companies listed in the indonesia stock exchange during the period 2012-2016 and have complete information regarding variables of managerial ownership and institutional ownership. the number of observations used for this study were 210 data using balanced data. results and discussion descriptive statistics table 1. descriptive statistics of research variables source: data processed by the author using eviews 9 (2018) based on the results in table 1, the average value of the firm value variable is proxied by the tq ratio of 1.349129 and the standard deviation value of the tq ratio is 1.009640. the average tq ratio that is greater than the standard deviation value of the tq ratio indicates the low variability of the tq ratio in the sample of manufacturing companies listed on the idx during the study period. financial performance variables proxied by roa have an average value of 0.050528. the average value indicates that the total net income in the sample of manufacturing companies listed on the stock exchange during the study period was 5.05% of the total assets owned by the company. the average value of roa is 0.050528 smaller than the standard deviation roa value of 0.065981 which indicates that the roa ratio experienced a fluctuating movement and had a high variability during the study period in samples of manufacturing companies listed on the idx. the average value of managerial ownership variables (km) is 0.052104 which indicates that the total managerial shareholding in the sample of manufacturing companies listed on the stock exchange during the study period was 5.21% of the total number of shares in the company in circulation. the variable average value of 0.052104 is smaller than the standard deviation of 0.075675 which indicates that managerial ownership in the sample of manufacturing companies listed on the stock exchange during the study period has a high variability. the average value of institutional ownership variable (ki) is 0.688505 which indicates that the total institutional share ownership in the sample of manufacturing companies listed on the stock exchange during the study period amounted to 68.85% of the total number of shares outstanding. the variable average value is 0.688505 far greater than the standard deviation of 0.228849 indicating the low variability of institutional ownership in the sample of manufacturing companies listed on the stock exchange during the study period. the firm size variable (fsize) has an average value of rp10,546 trillion and a standard deviation of rp37,309 trillion. this indicates that the size of the manufacturing company during the study period has a high variability because the standard deviation value is much higher than the average value. leverage variable (lev) has an average value of 0.453906. the average value indicates that the total leverage in the sample of manufacturing companies listed on the stock exchange during the study period was 45.39% of the total assets owned by the company. the standard deviation value of 0.193943 luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 tq roa km ki fsize (juta) lev mean 1.349129 0.050528 0.052104 0.688505 10,546,069 0.453906 median 0.999786 0.038206 0.016206 0.730449 1,178,661 0.476873 maximum 7.111081 0.321145 0.365991 0.992417 261,855,000 0.863772 minimum 0.304145 -0.097143 0.000023 0.018059 94,956 0.073823 std. dev. 1.009640 0.065981 0.075675 0.228849 37,309,053 0.193943 observations 210 210 210 210 210 210 23 is much smaller than the average value of 0.453906 which indicates the low variability of leverage in the sample of manufacturing companies listed on the stock exchange during the study period. multicollinearity test table 2. research variable multicollinearity test results source: data processed by the author using eviews 9 (2018) based on table 2 it can be seen that there is no correlation coefficient between variables greater than 0.90, so it can be said that there is no correlation between the independent variables and the control variables used in this study. estimation method table 3. chow test results source: data processed by the author using eviews 9 (2018) table 4.hausman test results source: data processed by the author using eviews 9 (2018) based on the results of the chow test in table 3, the probability values on models 1, 2, 3, 4, 5, and 6 of 0,000 are smaller than 0.05 so the test must proceed to the hausman test. based on table 4 the probability values obtained from the hausman test on models 1, 2, 3, 4, 5, and 6 are smaller than 0.05. so, the results show that the best model for this research is to use the fixed effect model approach. t-test (hypothesis) hypothesis testing is done to find out whether the independent variables partially or individually can affect the dependent variable. determination of acceptance or rejection of hypotheses is carried out in the following ways: 1. if the significance level ≤0.01; 0.05; and 0.10, ha is accepted and ho is rejected (hypothesis is accepted). this means that partially independent variables have a significant effect on the dependent variable or moderating variables are able to moderate the relationship between the independent variable and the dependent variable. 2. if the significance level is> 0.10, ha is rejected and ho is accepted (hypothesis is rejected). this means partially the independent variable does not have a significant influence on the dependent variable or the moderating variable is not able to moderate the relationship between the independent variable and the dependent variable. luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 roa fsize lev roa 1.000000 0.148855 -0.497457 fsize 0.148855 1.000000 0.188459 lev -0.497457 0.188459 1.000000 model 1 model 2 model 3 model 4 model 5 model 6 cross-section chi-square 375.30787 7 360.44236 8 366.078709 358.769025 351.842155 344.271151 probability 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 model 1 model 2 model 3 model 4 model 5 model 6 cross-section random 18.76699 1 34.778133 20.936407 34.351081 23.506166 35.406268 probability 0.0000 0.0000 0.0001 0.0000 0.0000 0.0000 24 table 5. t-test (partial) source: data processed by the author using eviews 9 (2018) influence of financial performance on firm value based on table 5 the value of financial performance coefficient (roa) without the control variable is 1.7021 with a probability value of 0.0204 smaller than 0.05. in table 5 also shows the coefficient of financial performance with the inclusion of control variables, namely company size (fsize) and leverage (lev) is 1.5271 with a probability value of 0.0373 smaller than 0.05. it can be concluded that the independent variables of financial performance have a positive and significant effect at a significance level of 5% with or without a control variable. thus, the first hypothesis (h1) states that financial performance has a positive effect on firm value. this is in line with the research of alghifari, et al. (2013) and marsha and murtaqi (2017) which state that financial performance has a positive and significant effect on firm value. they argue that the value of the company will increase along with the financial performance of a company. while the results of the research by suranta and merdistuti (2004) and munawaroh (2014) precisely state that financial performance has a significant negative effect on firm value. the influence of firm size and leverage as control variables on firm value based on table 5 shows that the firm size as a control variable (fsize) has a coefficient value of 0.3971 with a probability value of 0.0029 smaller than 0.01. it can be concluded that firm size has a negative and significant effect on the 1% significance level. this is in line with research conducted by kausar, et al. (2014) and khan (2012) which states that firm size has a negative effect on firm value. kausar, et al. (2014) stated that the size of a company that has a negative effect on firm value indicates that the larger the size of a company, the more inefficient the company is in using its assets to increase the value of the company. while the research of rudangga and sudiarta (2016) and obradovich and gill (2012) precisely states that firm size has a significant positive effect on firm value. based on table 5 shows that the leverage as a control variable (lev) has a coefficient value of 0.8545 with a probability value greater than 0.1. this illustrates that leverage does not have an influence on the value of the company. the size of the leverage ratio cannot affect the value of the company. these results are in line with research conducted by manurung, et al. (2016) and prasetyorini (2013) which states that leverage does not have a significant relationship to firm value. prasetyorini (2013) assumes that leverage has no significant effect on the value of the company because the company in financing its assets tends to use its own capital derived from retained earnings and share capital rather than using debt. whereas dewi and tarnia (2011) and cahyanto, et al. (2014) precisely states that leverage has a positive and significant effect on firm value. luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 fixed effect model variables model 1 model 2 model 3 model 4 model 5 model 6 c 0,0000 0,0011 0,0000 0,0009 0,0000 0,0016 (1,2631) (11,9673) (1,1976) (12,2248) (1,6184) (11,6452) roa 0,0204** 0,0373** 0,0219** 0,0349** 0,9018 0,8688 (1,7021) (1,5271) (2,2140) (2,0566) (0,2456) (0,3227) roa*km 0,4488 0,4406 (-5,5190) (-5,5667) roa*ki 0,3856 0,4621 (2,5953) (2,1636) fsize 0,0029*** 0,0023*** 0,0052*** (-0,3971) (-0,4102) (-0,3749) lev 0,1416 0,1193 0,1550 (0,8545) (0,9155) (0,8279) number of firms 42 42 42 42 42 42 number of observation 210 210 210 210 210 210 adjusted r 2 0,8513 0,8576 0,8509 0,8579 0,8522 0,8577 * ***sig. ≤ 1%; **sig. ≤ 5%; *sig. ≤ 10% 25 the effect of managerial ownership in moderating the relationship of financial performance on firm value based on table 5 the interaction coefficient value between financial performance (roa) and managerial ownership (km) without the control variable is -5.5190 with a probability value of 0.4488 greater than 0.1. in table 5 also shows the interaction coefficient between financial performance (roa) and managerial ownership (km) with the control variable of -5.5667 with a probability value of 0.4406 greater than 0.1. it can be concluded that the interaction between financial performance and managerial ownership with or without a control variable has a probability value of more than 0.1. this illustrates that managerial ownership is not able to moderate the relationship of financial performance on firm value. these results are in line with research conducted by yuniasih and wirakusuma (2009) and pertiwi and pratama (2012) which state that managerial ownership is not able to moderate the effect of financial performance on firm value. contrary to the results of research by wijaya and linawati (2015) and heder and priyadi (2017) which stated that managerial ownership was able to moderate the effect of financial performance on firm value. yuniasih and wirakusuma (2009) assume this is possible because the structure of managerial ownership in indonesia is still very small and dominated by family ownership. the results also indicate that the market does not use information regarding managerial ownership in conducting investment assessments. in addition, pertiwi and pratama (2012) stated that shareholders have not been able to give full confidence in the company's operations to company management. this proves that the ownership of shares by managers in manufacturing companies listed on the idx for the period 2012-2016 has not been able to harmonize the interests between agents and principals so that agency problems cannot be resolved and the management has not made policies that can enrich shareholders. the influence of institutional ownership in moderating the relationship of financial performance on firm value based on table 5 the interaction coefficient value between financial performance (roa) and institutional ownership (ki) without the control variable is 2.5952 with a probability value of 0.3856 greater than 0.1. in table 5 also shows the interaction coefficient value between financial performance (roa) and institutional ownership (ki) with the control variable of 2.1636 with a probability value of 0.4621 greater than 0.1. it can be concluded that the interaction between financial performance and institutional ownership with or without a control variable has a probability value of more than 0.1. from these results indicate that institutional ownership cannot moderate the relationship between financial performance variables and firm value. this is in line with research conducted by wijaya and linawati (2015) and heder and priyadi (2017) which state that institutional ownership is not able to moderate the relationship of financial performance on firm value. contrary to the research of dewi and tarnia (2011) and sunarwijaya (2016) which states that institutional ownership is able to moderate the effect of financial performance on firm value. heder and priyadi (2017) assume this is likely to occur because of a familial relationship between institutional investors and top management of the company, such as directors and commissioners, so the market tends to assume that the company issues its policies in accordance with the interests of institutional investors. in addition, wijaya and linawati (2015) assume that high institutional ownership will not necessarily improve control within the company because existing institutions tend to cooperate with management to achieve personal interests so that financial performance does not increase and impact on company value. this proves that when institutions act as the majority and the public as minority shareholders, the majority does not address agency problems between managers and investors. the majority in this case institutional investors control the company and make decisions that are not profitable or detrimental to minority investors so that the public considers institutional investors to have no significant impact. determination coefficient the determination coefficient (r2) is useful for measuring how far the model's ability to explain the dependent variable or the dependent variable. this r2 value ranges from 0 to 1. a small value indicates that the ability of the independent variable to explain the dependent variable is very limited. conversely, the value that approaches one means that the independent variable provides almost all the information needed to predict the dependent variable or can be said to be near perfect. model 4 regression with financial performance variables (roa), managerial ownership (km), firm size (fsize), and leverage (lev) is the best model because it has the largest adjusted r2 value compared to other regression models, which is 85.79%. luthfiah,a,a., suherman. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 26 conclusion and suggestion in conclusion, the results show that financial performance has a positive impact on the value of the firm proxied by tobin’s q. so, it will confirm the argument that the value of the company will increase along with the financial performance of a company the moderation effect of ownership structure variables could not be found in this study. finally, for the next research we suggest to clasify the samples into two categories; namely large companies and small companies to avoid data gaps among them. we also suggest to use other variables such as price to book value for company value and return on equity for financial performance variable to confirm the findings in this study. bibiliography alghifari, e. s., triharjono, s., and juhaeni, y. s. 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(2018). journal of business and behavioural entrepreneurship volume.2 nomor.1 2018 p (18-27)  the effects of financial performance toward firm value with ownership structure as moderating variable (the study on manufacturing companies listed in indonesia stock exchange in the period of 2012-2016).  https://doi.org/10.21009/jobbe.001.2.03 1 abstract small and medium-sized enterprises (smes) in indonesia have essential role in economy. their existence was appearing significantly when the financial crisis in asian 1997 and the world economic crisis in 2008. therefore, the existence of smes for business and society is essential, so their sustainability should be maintained through creating value and improving productivity. however, unlike the large companies that typically have resources to maintain information and their knowledge extensively, smes fall into lack of resources that driving them on amnesia consistently (s j hall & de raffaele, 2013) and it will influence the ability to create value and increase their performance. the paper aim is to describe the existence of organizational amnesia (oa) as the failure of organizations to learn reliably at the organizational level (kransdorff, 1998). this indication is proposed will affect smes to create value and improve organizational performance. some conclusion and future research have been recommended. keywords: organizational amnesia, value creation, organizational performance, small and medium-sized enterprise received: 07 september 2018 ; accepted: 20 september 2018; publish; oktober 2018 how to cite: sadat, a., lin, m.. (2018).organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.journal of business and behavioural entrepreneurship, 1(2), 1-13. https://doi.org/https://doi.org/10.21009/jobbe.001.2.01 organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise andi muhammad sadat department of business management southern taiwan university of science and technology e-mail: andims@unj.ac.id mei-lan lin department of hospitality management southern taiwan university of science and technology e-mail: mllin@stust.edu.tw mailto:andims@unj.ac.id mailto:mllin@stust.edu.tw 2 introduction the importance of small and medium-sized enterprise (sme) to world economies is well documented (birch, 1989; storey, 1994). sme with hundreds of employees make up the largest business sector in every world economy (culkin & smith, 2006), and governments entire the world are increasingly promoting and supporting smes growth as part of their overall national development strategy due to their important role in gdp growth and driving socio-economic development (karadag, 2016). in literature, there are some criteria and approaches to define sme, and it should be noted that there is not a global standard definition and it could define in a different way across countries, because the dimension of “small” and “medium” of a firm is relative to the size of the domestic economy (oecd, 2017). for instance, the oecd defines an sme as the firms employing up to 249 employers, and it can be breakdown into three levels, namely: micro firm (1 to 9), small firm (10 to 49) and medium firm (50-249). while, uk government was adding some criteria about smes such as the balance sheet total not more than £11.4 million, little or no previous experience of developing new products and struggling to survive or compete purely on manufacturing because of low-cost rivalry. furthermore, airaksinen, et al. (2018) noted that the role of smes in world is very important, as they represent around 99 % of all enterprises and absorb the amount of significant employees. based on oecd report 2017, the increasing number of sme can help governments escaping from low productivity traps, improving the quality of jobs for low-skilled employee stimulate economic growth, and social inclusion objectives. therefore, the existence of sme is pivotal and should obtain more roles in business and society. however, many smes enable to utilize their knowledge optimally due to some weaknesses, so it will decrease their ability to creating value and increasing performance. raising this problem allows the author to do some investigation and discussion in the existing literatures. previous studies in knowledge management tend to analyse the processes of dissemination of knowledge and utilize information in large companies rather than the micro sized organization (cerchione, esposito, & spadaro, 2016). only in recent year literature has been focusing knowledge management in sme (frey, 2001; mcadam & sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 3 reid, 2001; wong & aspinwall, 2005; pillania, 2008). indeed, there are some gaps that should be fulfilled by researchers to contribute and support sme, particularly why micro enterprises tend to be failure to utilize their knowledge as the source of information. inability to capture and diffuse learning in the organization due to the inaccessibility of the knowledge generated from the learning called organizational amnesia (oa) (kransdorff, 1998). in micro-sized enterprises the influence of oa will be felt even if only one member departs within a certain time (hall & de raffaele, 2013). another causes are a high level of turnover, shift-work rotation, downsizing staff level and perceive the benefit of knowledge management itself. furthermore, the limited financial and human resources present within smes make them difficult to implement knowledge management as a part of their strategy. edvardsson(2006) noted that only 24 percent of icelandic micro firms have a knowledge management programme in place, while mostly sme in indonesia do not put knowledge management as priority (lpppi & bi, 2015). research motivations and questions there are several motivations to perform this research: first, since still few researches described the existence of oa in the context of sme, so it would be very valuable to fill this gap. next, the presence of this paper will make a significant contribution, particularly in the knowledge management literature extensively. last, investigating the existence of oa will assist the business owner to understand clearly that an organization needs to be able to use the knowledge generated from their learning to create business value and competitive advantage (tiwana, 2000). based on the background above the framework can be draw as figure 1 and allow this paper to focus on the questions: does oa exist in sme? moreover, how does the effect of oa on creating value and performance? regarding those question, this paper will discuss based on literature how oa will influence value creation and performance in sme. sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 4 figure 1: the relationship between organizational amnesia, value creation and organizational performance what is organizational amnesia the author believes that the ultimate objective of enterprises is to be more competitive in the market place that is why they need to optimize the potential knowledge. however, in spite of the tendency to build knowledge management and organizational learning capability in sme, the studies have shown that it is not effortless for an organization to learn (othman & hashim, 2004), also not all organizations able to develop learning capabilities even most of them have natural propensity to forget (conklin, 2001). the notion of organization memory lost had been mentioned around more than a couple decades (stein, 1995) with many definitions have been proposed. this phenomenon in knowledge management literature is named organizational amnesia (oa) (kransdorff, 1998). oa indicated enterprises have either lost their organizational memory or incapable of recalling their past experience and also inability to communicate lessons from one part of the organization to other parts. this situation means that an organization fail to benefit from its experiences due to lack of ability to effectively transmit the knowledge to the places in the organization where the lessons learned are absorbed and used. related to this situation othman & hashim (2004) divided oa to be two types. the first is named “time-based oa”, reflect the failure to utilize learning that has taken place to make the necessary adaptation or create value, and second is “space-based oa” that related to the inability to move or diffuse lessons learned at one place to other places in the organization (figure 2). in smes context this kind of phenomenon are normal and always happen in sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 5 daily smes activities and it would affect the way organizations behave, in turn will influence their overall decision. storey & kahn (2010) noted the critical position of corporate memory in decision making process also some researchers have explored the extent to which memory affects how managers make decisions. figure 2: the types of organizational amnesia furthermore, the lack of resources originate in the micro enterprise results in the excessive reliance on tacit knowledge, thus implies that a micro-sized company is consistently on the threshold of corporate amnesia and practically will affect various corporate activities. conversely, large companies typically have the resources to manage information extensively whereas sme has difficulties in implementing it. hall & de raffaele (2013) emphasized several barriers such as due to cost and not apply a proper method, encouraging smes to collect primary or secondary information from organizational stakeholders either personal or impersonal (keh, nguyen, & ng, 2007) and used them in the decision-making process (menon & varadarajan, 1992). however, relying largely on information from external sources is not favourable in the long term. contrarily the companies should have their own and store essential information that they need to respond the business environment to survive. causes of organizational amnesia to understand the causes of organizational amnesia are cannot be separated with sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 6 the organization learning process. according to easterby-smith (1997) learning organization is action-oriented processes by creating and expanding organizational capacity to learn, while birdthistle (2008) emphasised that organizational learning can be used as a heuristic tool to explain and quantify learning process. there were some scholars also tried to explain the dimension of an organization learning process entire organisation such as örtenblad (2002) that described four aspects of the learning organization construct. first, knowledge is stored in the organizational memory. second, learning activity is seen as an implementation of knowledge at dissimilar stages. third, learning environment perspective looks organization as a place to facilitate the learning activities for employees. the last is the learning formation perspective that looked learning organization as a flexible component. watkins & marsick (1993) also mentioned seven elements of a learning organization, namely continuous learning opportunities, inquiry and dialogue, collaboration and team learning, systems to capture and share learning, a collective vision, connection to the company’s environment, and strategic leadership for learning. meanwhile, crossan, lane, & white (1999) present a structure of organizational learning into four processes those covering individual, group and organizational level. the first is intuiting that happen in individual level. it representing that each person is unique with own cognitive map that will affects recognition process, the higher degree of personal expertise, the higher his ability to perceive patterns than others. this kind of process does not influence organization unless it is shared to all parts of organization. the second is interpreting that refers to as social activity that allows individual learning with group level that generates a common language and develops convergence of meaning. the third process is integrating which is enlargement of shared thoughtful and taking coherent collective action by members of the group. the best achievement of this stage is when actions repeated and accepted as regular process and tend to be made as the organization standard. it means that the learning process that takes place at the group level is linked to the organization level. finally, institutionalizing is the process whereby the learning activities are becoming embedded in the systems, structures, strategy, and the culture of the organization. the accumulation of those activities can create a new knowledge that is stored in organization’s memory. in sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 7 other word institutionalizing ensures that what had been learned embedded in organisation system and no longer based on the person who was the drive of the learning process. from perspectives about organizational learning it can be proposed that oa can happen in entire stages since learning is principally as a process of knowledge acquisition (bahra, 2001), also knowledge is an abstract thing that cover individual experience, values, intuition, personal expertise, social background that provides a context and framework for incorporating new experiences and information, so knowledge should appear not only in organizations’ files but it also been reflected in organization daily activities. so, it can be argued that the appearance of oa will make difficult of all organization to build up organizational learning because the nature of knowledge itself. another explanation why knowledge will lose in a certain process because quite often it must be understood based on the background that was generated and it has explicit and tacit bases. for explicit knowledge can be bit easier to be transferred become formal language within organization but the problem always happen when tacit knowledge need to be articulated since it lies on personal perspectives and value system (bahra, 2001). therefore, ensuring that tacit knowledge stored properly, kogut & zander (1992) argued that knowledge has had a set of identifiable rules and relationship so make it easier to be communicated, failure to converse tacit knowledge makes knowledge difficult to be transferred entire organization. in addition kransdorff (1998) added that both person and group level tend to avoid lesson, then the learning process can be rather distorted and misplaced. for a simple case even though an organisation already installed certain software to support the knowledge storage within organization there are still possible fail to access properly by all of organizational member due to knowledge has a tacit aspect, so using and replicating them in other parts of organization may not easy because still need a specific skill (othman & hashim, 2004), and everyone also has different intelligence (kogut & zander, 1992). deal with the human factor cohen & levinthal (1990) mentioned that previous knowledge of human being will affect the way they utilize the new knowledge. long term experience and the accumulation of knowledge in memory will increase the person ability to sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 8 absorb and implement a specific knowledge. schulz (2001) described that in term of utilize the knowledge among members of organization, a regular training to increase the personal capacity is needed to make it more reflective unless organizational learning will be a vicious cycle that restricting further learning and give more space for organizational amnesia. all elements that mentioned above are very susceptible in micro enterprises that can influence their daily business activities. organizational amnesia and smes’ value creation to become competitive in the market place a company must be creating value better than his competitors. edwards, battisti, & neely (2004) mentioned that there are three strategic choices for organization in prospecting excellent value creation, namely: 1) organizations can convey high level of value by rising their efficiency and effectiveness. this situation can be attained through the adoption of the better ways during production process, 2) organizations can initiate the innovation breakthrough into their production line of either products or services so that engenders more income; 3) implementing an essential change in value chain process consistently with the better techniques than previous. however, in those perspectives remain unclear specifically for sme in term of how those options can be manifested into practice in creating and sustaining the long term value. as explained by lepak, smith, & taylor (2007), value creation is the relative amount of value quality that perceived by the target user whether individual, organization, or society which the assessment is subjective and should be translatable into the willingness to pay for the value received. this perspective has two aspects that mentioned by bowman & ambrosini (2000), namely use value and exchange value. use value refers to the specific quality of a job, task, product, or service those could be perceived directly by the user such as additional new features to improve product performance, while exchange value is the amount paid by the user to the seller for the use value of the certain task, job, product, or service. in order creating value successfully, the companies must be able to explore the knowledge that they belong to, so they can be more innovative in delivering the most valuable product or service. march (1991) also emphasised that organization need exsadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 9 plorative efforts by utilizing the existing knowledge that can be use to enrich customer value. thus the knowledge it possesses will support the creation of customer value. however, as the author mentioned above, smes have many limitations related to their learning capability. hall & de raffaele (2013) noted that comparing with the big company, in the certain situation smes have lack of resource. for example, if big companies can maintain their knowledge and business environment through their strong research department. conversely, sme may only sets up by a single person to handle the whole things. consequently the organization will face difficulty when the person in charge decides left the company. it means that it is difficult for smes to accumulate their knowledge and learning process in response of market or business changes. so rather than dealing with creating value that required firms invested resources, many smes are just struggling with internal problems that never get done whereas success is determined by ability to maintain learning and knowledge regularly. schulz (2001) argued that learning is a kind of organization exploitative activity that usually more certain in process and outcomes, while dewar & dutton (1986) stated that it is more incremental, more regular and more relevant to the current firm’s process. so as the opposite of organizational learning activities, it can be argued that oa is consistently appearing in sme daily activities and it will influence negatively the value creation process. organizational amnesia and smes’ performance oa indicated that firms lost their memory so they are incapable of recalling their past knowledge and inability to communicate lessons within organization. this situation will influence the overall organizational performance, particularly in responding the change of market preference and business landscape. common perspectives said that in order to response the uncertainty of business environment, the firms need listening carefully their customers, develop product and service excellent, while at the same time also preparing internal proper system to optimizing their knowledge to face competition, unless the traditional management style of sme is never sufficient as weapon to response changes. therefore, participation of all the member of organization in the development and maintaining the business process will be fundamental aspect for fusadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 10 ture organisational (choueke & armstrong, 1998). as known, it is very often found in sme that the absence one of member for a certain period will influence all the organization process. some scholar also argued that sme always living with amnesia which knowledge management and organisational learning are nice to have but it really hard to justify. there are some problems to install learning system entire organization such as limited of incentive makes member of organization reluctant to share his knowledge, building knowledge system also needs some cost and a good administration to maintain knowledge resources. in sum, smes is consistently on the threshold of corporate amnesia and it will directly influence their performance. according to deshpandé, farley, & webster (1993) and (drew, 1997) organizational performance the degree to which companies attained its business goals and it can be measures from several factors, such as overall success, market share, growth rate, profitability and also innovativeness compare with their competitors. while keh et al. (2007) divided organizational performance in two dimensions such as financial performance and nonfinancial performance. so, it is able to argue that the existence of oa in smes will directly influence their performance. conclusion and future research dissimilar with the large companies that typically have resources to maintain essential information and knowledge extensively, sme always faces weaknesses of sources that driving them on the threshold of amnesia consistently. this situation would influence directly value creation process and organization performance. the barriers such as cost (kimble, 2013) and require a good administration (hall & de raffaele, 2013) to maintain knowledge resources makes difficulty to acquire and utilize the information that fundamentally will affect firm performance (keh et al., 2007). also sme has a nature for the high level of staff turning over, shift-work, outsourcing process until downsizing that can cause organizational amnesia. an organization needs to continuously gather knowledge and information in order to deliver consistently high-quality products or services as well as to create superior customer value (slater & narver, 1998). brockman & morgan (2003) argued that companies with more information about the products and services tend to benefit in a sadat, a., lin, m.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13)  organizational amnesia: the barrier of value creation and organizational performance in small and medium sized enterprise.  https://doi.org/10.21009/jobbe.001.2.01 11 higher level of performance. the authors could argue that the more organisation maintaining and acquiring knowledge the more possibility to utilize it as source of value creation and also will increase their performance. therefore, to be more precise an empirical assessment of the nature relation among variables proposed should be test to get more explanation and to prove the level of generalizability. also, since the concept of oa is still being developed the researchers should contribute to fill this gap. finding a clear concept, possible dimensions and some indicators to identify the existence of oa within smes would enrich the knowledge management literature extensively. references airaksinen, a., & luomaranta, henri alajääskö, pekka roodhuijzen, a. statistics on small and medium-sized enterprises (2018). bahra, n. 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(2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (1-13) 51 perceived quality, trust, satisfaction on student loyalty in private universities elistia universitas esa unggul email: elistia@esaunggul.ac.id jovita nathania universitas esa unggul email: vitanathania26@student.esaunggul.ac.id rojuaniah universitas esa unggul email: rojuaniah@esaunggul.ac.id lista meria universitas esa unggul email: lista.meria@esaunggul.ac.id mitsalina tantri universitas negeri jakarta email: mitsalinatantriningyasri_9917920030@mhs.unj.ac.id abstract the best universities certainly have advantages which are their competitiveness. these are essential studies conducted at private universities in west jakarta, indonesia, about the effect of perceived quality, trust, and student satisfaction on student loyalty. this study aims to examine the effect of perceived quality on students, student satisfaction, and student confidence in student loyalty. the population of this research is the five best universities in west jakarta, with a total sample of 150 students. the research design used in this study is a causal descriptive research design and uses a quantitative method approach that is processed and tested using sem-pls. the findings of this study indicate that the perceived quality of students, student trust, and student satisfaction is proven to increase student loyalty, and the perceived quality of students will affect student loyalty through student satisfaction. these findings have also provided a better understanding of how each factor affects student loyalty. this research contributes to the theoretical and practical levels, as well as contribute knowledge to the determinants of student loyalty at the 5 best private universities in west jakarta, indonesia. keywords: perceived quality, trust, satisfaction, loyalty, private universities 52 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 received: 15 october 2022 ; accepted: 27 december 2022 ; how to cite: elistia, et.al. (2022). perceived quality, trust, satisfaction on student loyalty in private universities. journal of business and behavioural entrepreneurship, 6(2), 51-68. https://doi.org/10.21009/jobbe.006.2.05 introduction in today's business world, more than measuring customer satisfaction is essential because there is a greater need for customer loyalty that can predict purchase intentions and the level of consumer purchase intentions, thus having an impact on increasing company revenues and profits. therefore, maintaining or even increasing student loyalty by focusing on aspects such as the quality of university services, satisfaction with the university, and high student confidence in participating in programs organized by the university will provide a competitive advantage for the university itself. if the university can serve students well, students will be satisfied and loyal and then provide recommendations to others. some universities also want student loyalty so that the university can compete with other universities. west jakarta has several best campuses, including bina nusantara university (binus), which is ranked 20th in the qs world university ranking version of the ministry of research, technology, and higher education. trisakti university, mercu buana university, and tarumanagara university (untar) have received the latest awards, namely certificates and medals from the asean federation of engineering organizations and esa unggul university (aku pintar.id, 2021; viva.co.id, 2022). a university is a type of further education institution called a college and has faculties that have various majors or study programs. colleges seek to prepare students for the process of continuing higher education and prepare students to function in a rapidly changing environment. significant changes in higher education in recent years, including both global and global (maringe & gibbs, 2009), (altbach et al., 2019), the level of internationalization that allows the free movement of students (altbach, 2004), increased competition from the private sector, and reduced funding (hemsley-brown et al., 2016; verčič et al., 2016). these changes have caused the university to sink into a highly competitive, global, and changing market, competing for students, resources (human and financial), and reputation/image. in this context, students are the focus of higher education, and strengthening relationships with students is the key to future success (fernández et al., 2007). to compete effectively, institutions are consequently adopting a marketing concept that portrays students as customers and ensures all strategies are targeted toward increasing student enrollment. students are looking for institutions that can provide an outstanding, individualized educational experience and an educational platform that will develop the capacities needed for a lucrative career (conefrey, 2018). 53 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 thus, the college is reengineering its operations to focus more on competitive educational activities centered on quality evaluation (de jager & gbadamosi, 2013). helgesen & nesset (helgesen & nesset, 2007b) suggested that student loyalty depends on the period during and after education. in the current business era, maintaining student loyalty is a necessity that must be done because only by maintaining student loyalty can survival be maintained. loyal students will tend to reuse educational services and provide referrals to others. customer loyalty is an action or strategy that can win the competition in the long term by considering how to acquire, retain and increase the number of customers (de jager & gbadamosi, 2013; wilson et al., 2016). according to (douglas et al., 2006) said, loyal customers are reflected in their repurchase behavior over time, and these customers have a solid emotional connection with the product or company. oliver (oliver, 1999) explains the concept of loyalty as maintaining a deep commitment to repurchase or repurchase products and services on an ongoing basis despite marketing efforts and status effects having the potential to change customer behavior. through services that meet student expectations, that student loyalty can develop because loyal students are valuable assets to the university. therefore, considering that the university is engaged in services, it is necessary to improve the quality of university services, considering the quality of service to satisfy student trust and satisfaction. service quality is the difference between customer service expectations and perceived service (anantharanthan parasuraman et al., 1985). service quality also satisfies user expectations (juran, 1988). zeithaml (zeithaml, 1981) explains service quality as excellence in providing services. parasuraman et al. (a parasuraman et al., 1988) state that perceived quality is an international judgment or attitude regarding service supremacy. the quality felt by students from an institution can provide satisfaction to students (sumaedi et al., 2011). good service impresses students with their services and becomes a source of reference information for other students and prospective students. following a relational marketing strategy to survive in a competitive environment is the key to college success (helgesen, 2008), (curth et al., 2019). for many universities, achieving student satisfaction is a competitive advantage (elliott & shin, 2002). sapri et al. (babin & griffin, 1998) emphasize that customer satisfaction plays an essential role in determining the loyalty and promptness of the recommended service. the claim is verified by barnett (barnett, 2010); he considers student satisfaction an essential factor as it is the only measure of the quality of services offered in the higher education sector. the importance of trust in educational institutions will impact the formation of student loyalty, and several empirical studies show that trust has a positive impact on student loyalty. in their research, akbar & parvez (akbar & parvez, 2009) and malau (malau, 2017) found that trust affects student loyalty. increased customer trust will make customers more loyal, and customer loyalty will lead the company to achieve excellence in corporate profits. a high level of loyalty will make the position of education with better facilities, good relations with students, and the creation of innovative leaders (khan et al., 2012). satisfaction is a consumer's assessment of the pleasure obtained from the level of utilization provided (oliver, 1981) and the extent to which customers are happy or unhappy after using a product or service (churchill jr & surprenant, 1982). oliver richard (oliver richard, 1997) states that satisfaction with an entity, such as a product or service, is based on experience. babin & griffin (babin & 54 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 griffin, 1998) emphasizes that someone's satisfaction with a product will affect subsequent behavior. research on the antecedents of student loyalty has been investigated. previous studies examined the role of service quality, satisfaction, and student loyalty in higher education institutions. the findings of previous research revealed that there was a significant relationship between service quality and student loyalty mediated by student satisfaction. furthermore, the researcher developed a different research model from previous researchers as a research gap, including adding student confidence variables. therefore, this research is essential to determine the factors that influence student loyalty from the five best universities in west jakarta, considering that there are still few studies conducted at universities in west jakarta regarding the influence of perceived quality, trust, and satisfaction. students on student loyalty. this study aims to determine and analyze the effects of perceived quality, student trust, student satisfaction, and student loyalty. this research will contribute to the theoretical and practical levels and contribute knowledge to the determinants of student loyalty in universities in west jakarta. literature review student loyalty in higher education, student loyalty has been defined as the intention to advise one's friends and acquaintances to enroll in the same university, the desire to speak positively about the institution, and the desire to return for further education (webb & jagun, 1997). according to hennig-thurau et al. (2001), loyal students may decide to support their academics and the institution financially and positively. an additional definition refers to a student's willingness to say positive things about the university and inform new candidates about the university. loyalty is related to an institution's ability to attract new and retain existing students (helgesen & nesset, 2007a, p. 39). student loyalty is essential for competitive advantage (yu & kim, 2008; thomas, 2011). according to dehghan et al. (2014) student loyalty is essential for academics and has become a strategic concern for higher education institutions. loyalty can maintain current student enrollment rates and encourage them to continue their education at the university. much like customer loyalty to a product, student loyalty to the university may be a determining factor in the university's continued growth and has been a recurring theme in higher education marketing research (hennig-thurau et al., 2001; helgesen & nesset, 2007a, 2007b; rojas-méndez et al., 2009). perceived quality perceived quality refers to students' and graduates' assessments of the overall excellence of the university institution (zeithaml, 1988), so perceived quality is undoubtedly one of the strongest influences on student choices. quality of service has been recognized as a performance measure for excellence in education and a critical strategic variable for universities as service providers (donaldson & runciman, 1995). service quality within universities has become a hot topic. it has attracted much attention 55 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 due to the need for universities to participate in intense competition and meet the increasing demands of stakeholders to improve service quality (pariseau & mcdaniel, 1997). as a result, this dimension has been part of most empirical investigations related to higher education marketing and remains a crucial construct in investigations. successful university and higher education policies develop to improve service quality for sustainable progress. according to poole et al. (2000) institutions facing intense competition and trade often turn to strategies that address the quality of services provided and related factors to gain a competitive advantage in today's increasingly challenging environment. in a prominent contribution, damme (2001) has remained vocal about the need for quality assurance in universities. this notion has now been recognized and used in many universities research questions. the definition proposed by elliott & healy (2001), is attitudes in the short-term resulting from an assessment of their experiences with services received related to education. furthermore, explained by elliott & shin (2002, p. 197) is a student's subjective evaluation of results and experiences related to education, and they further explain that continuous satisfaction is formed from repeated experiences felt by students. parasuraman et al. (1988) developed various components that organizations can use to assess service quality, most of which have been cited by researchers in service quality assessments. measurements based on parasuraman et al. (1988) and (zeithaml, 2013) include tangible physical characteristics, including the exterior or appearance of structures, equipment and tools, and employees during service delivery. reliability is the organization's capacity to provide suitably and reliably as guaranteed. responsiveness is the speed and readiness to provide services to consumers. assurance of service providers' capacity to be wellmannered, well-informed, and the capacity to generate confidence in consumers. empathy is the ability of the organization to see itself as a customer, give personal attention to consumers, and show a particular interest in consumers. therefore, higher education institutions must embrace and manage service quality to be relevant in a competitive environment. in this study, the student's point of view was considered to evaluate the perceived quality, and the student's opinion was identified as a factor in assessing the perceived quality. student trust trust is defined as consumer belief in brand intentions and reliability as well as contributing to and resulting in a better description of the company (delgado‐ballester & munuera‐alemán, 2005). trust also provides the necessary assurance that corporate brands are not exploiting consumers. trust helps reduce fear and increases hope for a positive outcome. another definition of trust is a person's willingness to act based on decisions, words, actions, and other people (thomas, 2011). in particular, student trust has been shown to play an essential role in marketing the university's corporate brand and its programs and the perception of university performance (sultan & wong, 2012, 2014). according to newell et al. (2016) trust plays an essential role in developing loyalty because it is the belief that individuals, groups, or organizations can be trusted to fulfill their promises. a brand that consumers can trust is a strong brand, especially when consumers are considering a long-term relationship with the brand, such as applying to a 56 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 university or participating in a research program. also, trust is important when recommending the university to others. student satisfaction customer satisfaction is the perspective of consumer experience after consuming or using a product or service (oliver, 1993). according to borden (1995), student satisfaction depends on the extent to which priorities and university facilities are aligned. elliott & shin (2002) described student satisfaction from educational outcomes and student experiences, and other experiences were prominent in predicting satisfaction. j. douglas et al. (2006) investigated the intertwined concepts of quality and satisfaction and described four overall satisfaction components, firstly "satisfiers", which relate to characteristics or aspects which, if any, give rise to satisfaction, but their absence does not cause dissatisfaction, secondly "dissatisfiers", relating to characteristics, if present does not lead to satisfaction, but its absence causes dissatisfaction. likewise, "critical" relates to features whose presence creates satisfaction, and dissatisfaction in their absence, and finally "neutral" relates to aspects or features that have no impact on satisfaction even though they are present or absent. j. douglas et al. (2006) emphasizes the achievement of student satisfaction which is based on the quality of all management and administration at the university. gibson (2010) review of the attributes that result in student satisfaction indicates that there are several predictors of satisfaction or dissatisfaction in the literature. its contribution is also significant because it provides a starting point for researchers to study the factors that influence satisfaction. using a qualitative approach j. a. douglas et al. (2015) used narratives to gather responses from students who were and determine critical quality areas that needed attention. in the context of customer satisfaction, expectations are assumptions or customer beliefs about what is received and then develops as more information and experience is received (chairil, 2018). hypotesis review and research model quality of service is often considered essential to building and maintaining satisfying relationships with valued customers. in increasingly fierce competition, service quality is a must for universities to maintain their existence (ghobehei et al., 2019). improving service quality will increase student satisfaction and vice versa (ali et al., 2016). previous studies have shown a significant relationship between perceived quality and student satisfaction (bakrie et al., 2019; chandra et al., 2019; indriyarti et al., 2019). based on relevant research, then the following hypothesis is: h1: perceived quality has a positive effect on student satisfaction. it is essential to improve the quality of service due to the interaction between the university and students. moreover, the service quality aspect is a precursor to the overall service quality assessment as it affects the strength of customer relationships and their behavioral intentions. research conducted by (bakrie et al., 2019; chandra et al., 2019; indriyarti et al., 2019) said that service quality had no positive or significant effect on student loyalty. in university education, some studies strengthen the positive relationship between perceived quality and student loyalty (martha-martha & priyono, 2018), 57 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 (martha-martha & priyono, 2018; cahyono et al., 2020). based on relevant research, then the following hypothesis is: h2: perceived quality has a positive effect on student loyalty. loyalty is a crucial variable influenced by various exogenous constructs, including satisfaction and perceived quality. supports the relationship between satisfaction and loyalty, some studies study student satisfaction with the perceived quality of educational institutions (alves & raposo, 2007, 2010), (helgesen & nesset, 2007a). according to hsu et al. (hsu et al., 2008), customer satisfaction can mediate the relationship between quality and customer loyalty. studies said that satisfaction mediates the relationship between loyalty (lam et al., 2004); the results of research support this by kunanusorn & puttawong (kunanusorn & puttawong, 2015), which says that student satisfaction is the mediating variable, and it implies that student satisfaction is the primary driver of student loyalty. based on relevant research, then the following is: h3: perceived quality has a positive effect on student loyalty mediated by student satisfaction. student satisfaction is a function of the relative experience and level of perceived educational service performance during the education period. satisfaction acts as an antecedent of loyalty (bitner, 1990); greater satisfaction leads to increased loyalty (fornell, 1992) in order to attract new students caused by word-of-mouth communication (clemes et al., 2008, 2013) and retaining current students (kunanusorn & puttawong, 2015), (wiers-jenssen, n.d.). many previous studies say that student satisfaction has a positive relationship with student (chandra et al., 2019), (wiers-jenssen, n.d.), (cahyono et al., 2020). based on relevant research, then the following hypothesis is: h4: student satisfaction has a positive effect on student loyalty. trust in educational institutions will have an impact on the creation of student loyalty, and several studies have proven that there is a positive effect of trust on student loyalty. in their research, aydin & zer (2005) found that trust is an essential factor of customer loyalty. in their research, akbar & parvez (akbar & parvez, 2009) found that trust in personnel and management proved to have a significant positive effect on student loyalty. the same thing was found by chinomona & sandada (chinomona & sandada, 2013) and malau (malau, 2017) in his research found a positive and significant relationship between customer trust and customer loyalty. based on relevant research, then the following hypothesis is: h5: student trust has a positive effect on student loyalty. based on the theoretical review and research relevant above, this research proposed model is described in figure 1 below. 58 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 figure 1. research framework research method the research design used in this study is a descriptive causality research design. causal research design aims to analyze the relationship between variables in a study or to find out how one variable can affect changes in other variables (joe f hair et al., 2019). there are exogenous (independent) variables in this study, namely perceived quality, and student trust, as well as one mediating variable, which also acts as an exogenous variable, namely student satisfaction, and an endogenous (dependent) variable, namely student loyalty. research questionnaires were filled out online for data collection. the research population is students from the five best universities in west jakarta, indonesia, including bina nusantara university, trisakti university, mercu buana university, tarumanagara university, and esa unggul university. data collection, processing, and analysis were carried out from august to september 2022. the sampling method used non-probability sampling with stratified random sampling. the number of respondents in this study was 150 people, the sampling size was derived based on joe f hair et al. (joe f hair et al., 2019). from 5 universities, each sample took as many as 30 respondents; they are currently studying undergraduate programs for undergraduate academic education management study programs and have completed at least three years of studying. the measurement of the perceived quality consists of 6 statements (hemsleybrown et al., 2016), student trust consists of 4 statements (jillapalli & jillapalli, 2014), student satisfaction consists of 5 statements (ali et al., 2016), student loyalty consists of 5 statements (stokburger-sauer et al., 2012), (annamdevula & bellamkonda, 2016). this study uses the structural equation model partial least square (sem-pls) analysis tool with two measurement models (joseph f hair et al., 2013; wong, 2019), namely outer model analysis with five parameters, inner model analysis with four parameters, as well as analyzing the model and testing hypotheses. the evaluation of the measurement model (outer model analysis) uses five parameters, including the convergent validity value, where the loading factor value must be above 0.70, then it is said to be valid. the second is the average variance extracted (ave) with the expected ave value above 0.50, which means that the higher the ave value, the variance caused by errors in model measurement is smaller than the variance caused by each in the construct captured by the model. the third is discriminant validity, the loading factor value is greater than the cross-loading 59 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 value or can also use the fornell-lacker criterion value, where the criterion value is greater than the correlation value to other constructs. the fourth is reliability analysis using the composite reliability (cr) value, and the expected value is cr greater than 0.70, so the latency is said to be reliable. moreover, lastly, cronbach's alpha with the expected value is cronbach's alpha greater than 0.60, so that used to measure latency is said to be reliable. then the hypothesis test involving the relationship between the constructs will only be reliable or valid if the measurement model explains how this construct is measured (joe f hair et al., 2019). significance testing is the process of testing whether specific results occur by chance. the critical values for this significance level and the one-sided test are 1.65, respectively. the significance test uses the t-statistic value (t value) for the one-sided test is 1.65. for the significance level, the p-value is 5% (0.05), meaning it is said to be significant if the p-value is less than 0.05. results and discussion respondents are students from undergraduate management study from the five best campuses in west jakarta, namely bina nusantara university, trisakti university, mercu buana university, tarumanagara university, and esa unggul university with a total of 150 respondents consisting of 75 people (50%) are women, and 75 people (50%) are men. the number of respondents from each university is 30 people. furthermore, most respondents were taking semester seven which amounted to 71 people (47.3%), in addition to semester six students totaling 17 people (11.3%), and semester five students amounting to 62 people (41.3%). in this study, if each construct has an ave > 0.50, the minimum acceptable loading factor size is 0.70. therefore, the convergent validity of the model in this study has met the requirements. the values of loadings, cronbach's alpha, composite reliability, and ave for each complete construct are in table 1. table 1. convergent validity construct indicator s factor loadings cronbach's alpha composite reliability ave perceived quality pq1 0.839 0.905 0.927 0.680 pq2 0.807 pq3 0.747 pq4 0.871 pq5 0.846 pq6 0.832 trust tr1 0.892 0.865 0.909 0.714 tr2 0.871 tr3 0.773 tr4 0.839 60 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 construct indicator s factor loadings cronbach's alpha composite reliability ave satisfaction sat1 0.886 0.915 0.936 0.746 sat2 0.878 sat3 0.892 sat4 0.817 sat5 0.844 loyalty loy1 0.751 0.858 0.897 0.636 loy2 0.804 loy3 0.770 loy4 0.859 loy5 0.801 the discriminant validity test was carried out to ensure that each latent variable's concept differed from the other latent variables. the model has good discriminant validity if the ave value for each exogenous construct exceeds the correlation between the constructs and other constructs. the results of the validity discriminant test using the ave value are by looking at the fornell-larcker criterion value, which is in table 2. the results of the validity discriminant test in table 2 show that the ave value for all constructs is higher than the correlation with other potential constructs (according to the fornelllarcker criterion). therefore, it can be concluded that the model has met the discriminant validity. table 2. validity discriminant (fornell-larcker criterion) trust satisfaction perceived quality loyalty trust 0.845 satisfaction 0.728 0.864 perceived quality 0.744 0.728 0.825 loyalty 0.697 0.742 0.724 0.798 the hypothesis testing by looking at the path coefficient bootstrapping analysis results, namely by comparing the t-statistic with the t-table. the hypothesis accepted the t-statistic value > t-table (1.65). the path coefficient value indicated by the t-statistic must be higher than the t-table value with an alpha significance level of 5% (0.05) and a t-value above 1.65. the t-statistical values for all paths in the studied structural model. in summary, the results of the t-test analysis of the path coefficients are shown in table 3. the t-test analysis of the path coefficients (table 3) indicates that the perceived quality has a direct and significant effect on student satisfaction (h1: accepted, t=12.150, p=0.000). perceived quality has a direct and significant effect on student loyalty (h2: accepted, t=1.890, p=0.002). the satisfaction variable directly and significantly affects student loyalty (h4: accepted, t=3.590, p=0.002). trust directly and significantly affects student loyalty (h5: accepted, t=2.053, p=0.020). 61 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 table 3. results of direct effect coefficient coefficient t-value p-value hypothesis h1 perceived quality -> satisfaction 0.728 12,150 0.000*** accepted h2 perceived quality -> loyalty 0.301 2,890 0.002** accepted h4 satisfaction -> loyalty 0.379 3,590 0.000*** accepted h5 trust -> loyalty 0.198 2.053 0.020* accepted t-value > 1.645, *p-value < 0.05, **p-value < 0.01, *p-value < 0.001 furthermore, the fifth hypothesis indicates a positive and significant effect of perceived quality on student loyalty (h3: accepted, t=3.271, p=0.000), so h5 is also accepted. student satisfaction partially mediates loyalty, which is shown in table 4. table 4. the result of indirect effect coefficient coefficient t-value pvalue results hypothesis h3 perceived quality -> satisfaction -> loyalty 0.276 3,721 0.000 significant accepted t-value > 1.645, *p-value < 0.05, **p-value < 0.01, *p-value < 0.001 the subsequent analysis measures the value of r-square (r2) in the structural model for each endogenous latent as 0.67, 0.33-0.66, and 0.19-0.32, which can be interpreted as strong, moderate, and weak (chin et al., 2013). table 5 presents the r2 value for the satisfaction and loyalty variables. from table 5, the r2 value of satisfaction is 0.527, and loyalty is 0.629, which indicates that the perceived quality variable can moderately explain the diversity of student satisfaction by 52.7%. furthermore, the perceived quality, trust, and satisfaction variables can moderately explain the diversity of loyalty variables by 62.9%. table 5. coefficient of determinant score (r-square) r-square r-square adjusted result satisfaction 0.531 0.527 moderate loyalty 0.637 0.629 moderate f-square (f2) was calculated to measure the significance of the partial effect of exogenous variables on endogenous variables, the estimated value of f2 is 0.02; 0.15; 0.35 indicates that the influence value is weak, moderate, and strong (cohen, 1988). based on the results in table 6, f2 value of the trust variable to loyalty of 0.04 (weak), the satisfaction variable to loyalty is 0.155 (moderate), then for the perceived quality on satisfaction is 1.13 (moderate). and then for the perceived quality on loyalty is 0.093 (weak). 62 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 table 6. assessing the level of effect size (f2) relationship f2 conclusion pq  sat 1,13 moderate pq  loy 0,093 weak sat  loy 0,155 moderate trust  loy 0,04 weak finally, the q-square (q2) measures how well the model produces the observed and estimated parameters. if the value of q2 is greater than 0 (zero), then the model is considered to have a relevant predictive value. in this study, the results of the q2 calculation are 0.522 for satisfaction and 0.555 for loyalty, which means the variables in this study have a good predictive correlation because the q2 value exceeds zero; the results are shown in table 7. table 7. q-square model fit results q²predict satisfaction 0.522 loyalty 0.555 discussion based on the results of our research, students' perceived quality can increase student satisfaction, which means that the higher the quality perceived by students, the higher the satisfaction that students tend to feel. the strengthening of perceived quality dimensions in increasing student satisfaction includes physical aspects (tangible) such as the completeness of supporting consistently good infrastructure facilities; aspects of certainty (assurance) at identically high quality; aspects of reliability in service quality and excellent and skilled staff; aspects of empathy such as professionalism for all students, as well as a service system that makes it easier for students also play a role in increasing student satisfaction. in addition, responsiveness aspects such as the responsiveness of the university in responding to problems. in this study, empathy is the most substantial aspect that influences achieving student satisfaction. based on the results of our research, students' perceived quality can increase student satisfaction, which means that the higher the quality perceived by students, the higher the satisfaction that students tend to feel. the strengthening of perceived quality dimensions in increasing student satisfaction includes physical aspects (tangible) such as the completeness of supporting consistently good infrastructure facilities; aspects of certainty (assurance) at identically high quality; aspects of reliability in service quality and excellent and skilled staff; aspects of empathy such as professionalism for all students, as well as a service system that makes it easier for students also play a role in increasing student satisfaction. in addition, responsiveness aspects such as the responsiveness of the university in responding to problems. in this study, empathy is the most substantial aspect influencing student satisfaction. 63 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 from the questionnaire results, students feel that the university they have chosen is valuable and professional; the higher the benefits and professionalism provided by the university will increase satisfaction with the university where students study. as said by ali et al. (ali et al., 2016) that improving service quality will increase student satisfaction, it can also be concluded that satisfaction is an essential factor of loyalty by supporting the results reported by rojas-méndez et al. (rojas-méndez et al., 2009) and akbar & parvez (akbar & parvez, 2009). furthermore, this research proves that students' perceived quality affects student loyalty, which means that the higher the quality perceived by students, the greater the tendency of student loyalty. in addition, the questionnaire results also stated that universities are expected to improve the skills of existing staff at the university so that student satisfaction and loyalty can be improved again. this is in line with the statement of martha-martha & priyono (martha-martha & priyono, 2018) and cahyono et al. (cahyono et al., 2020), which strengthens the positive relationship between perceived quality and student loyalty. this research also studied the indirect effect of perceived quality on loyalty through student satisfaction to support the explanatory capacity of the proposed theoretical model. the results of this study prove that the perceived quality of students affects loyalty indirectly through intermediary variables that are positively significant. the indirect effect of perceived quality on loyalty is through the application of satisfaction. it can be explained that when students are satisfied with the perceived quality, it will increase student loyalty; this is important because continued satisfaction will lead to student loyalty, indicating that student satisfaction mediates between perceived quality and student loyalty. this result is in line with what was said by kunanusorn & puttawong (kunanusorn & puttawong, 2015) in previous studies that student satisfaction is a mediating variable, implying that student satisfaction is the primary driver of student loyalty. the higher student satisfaction increasing student loyalty, the more students believe they have chosen the right university to study. so, the higher the trust of students, the higher the loyalty of students. it is evidenced by the value of the questionnaire results, which states that students believe in their university. so, the student's trust in the university during their education will affect their loyalty. the universities' management must also have high integrity so that student trust increases; empirical studies prove the positive influence of trust on student loyalty; akbar & parvez (akbar & parvez, 2009) also found that trust in personnel and management proved to have a significant positive effect on student loyalty. however, the university must also improve the pleasant experience of students during their education so that student satisfaction can increase even more; this is in line with previous research, which says that student satisfaction has a positive relationship with student loyalty. conclusion in this research results, all the hypotheses proposed were significant and accepted as relevant to the research model because they were related. students perceived quality is one of the keys to achieving loyalty and satisfaction. the structural model proposed and empirically validated in this study confirms that the key variables to increase student loyalty and influence their behavior regarding students' pride in continuing to relate to 64 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 their university are perceived quality and student satisfaction. thus, the better the quality of students from their university, the greater the perceived satisfaction and, ultimately, increased student loyalty. this research has provided a deeper understanding of how each factor affects student loyalty. this study allows us to understand the relationship between perceived quality, trust, and satisfaction with loyalty, as well as to obtain evidence of the importance of satisfaction in the model for the formation of quality and perceived satisfaction of students. achieving student loyalty and retaining current students can be a positive communication channel to attract new students are beneficial for the university by continuously maintaining and improving the essential factors in students' perceived quality, student satisfaction, and student trust, so student loyalty increases. therefore, universities must focus their efforts and implement the necessary strategies to increase student confidence in the quality of education, services, and facilities provided by the university to increase student satisfaction and loyalty on an ongoing basis to achieve the vision, mission, and reputation of the university. implications this study reveals that student loyalty is achieved only when the services provided by the university satisfy the students. to build student loyalty, what must be a concern for higher education management is to maintain and improve the institution's reputation as well as continue and improve service quality to provide student satisfaction and form better student loyalty. through this research, several actions must be taken to follow up on the following supported hypotheses; the university can improve that student satisfaction to continue to provide good quality to students. then also for the university to maintain the students' trust in the university that they felt during their lectures, in the end, achieving the final goal of loyal students to the university. thus, it can continuously increase the number of students and good quality of graduates. then also for the university to maintain the students' trust in the university that they felt during their lectures, achieving the final goal of loyal students to the university. thus, it can continuously increase the number of students and good quality of graduates. in an increasingly competitive higher education environment, universities are encouraged to pay attention to the quality of educational services to increase student satisfaction and loyalty. the importance of institutional image in universities needs to allocate some of their resources to communication and marketing strategies in maintaining service quality and student trust to impact student satisfaction and loyalty; in the end, the university's image and market position gain a competitive advantage. college administrators can determine the factors that enable them to observe which variables are most important to achieving the university's goals in retaining current students, considering that students can serve as a positive communication channel to attract new students. in this regard, they should focus their efforts and implement the necessary strategies to match expectations with service quality, especially regarding the attitudes and behavior of faculty and student service units, as well as improve skills. it is also essential to inform their students about career opportunities after graduation. focusing on increasing the satisfaction felt by students and meeting student expectations will affect the perceived quality of students and their satisfaction in a very 65 elistia, et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 51-68 significant way and, in return, is student loyalty. they should focus their efforts and implement the necessary strategies to match expectations with service quality, particularly regarding the attitudes and behavior of faculty and student services units, as well as improve skills. they must also inform their students about career opportunities once they graduate. research limitations & future research this research has limitations; it is carried out at a particular time, the population and sample refer to only one study program management, and only at the five best universities in west jakarta. this limitation can be overcome by expanding the research to other study programs in the best private universities, which allows new models with extended structural characteristics. further improvements studies are suggested to create a new research model by incorporating additional construct that was not used in this study, as well as expanding the scope and identifying other possible factors for student loyalty, besides investigating perceived quality factors, trustworthiness, and student satisfaction on loyalty. future research will examine more constructs and indicators using a comparative study to determine student loyalty at public and private universit ies. references akbar, m. m., & parvez, n. 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(1996). the behavioral consequences of service quality. journal of marketing, 60(2), 31–46. 58 abstract it was important for indonesian national police organizations to be able to managed their human resources through good management by giving employees or members the opportunity to advance. human resources in one organization had an important role of indonesian national police experiences a surplus of members with the position of police grand commissioner. as of the beginning of 2019, this institution had around 1,400 members serving as middle officers. most of these officers did not get any positions. the development system of the right police career pattern was able to provide direction for individual police officers to developed themselves. the purposed of this research was to analyzed case studies related to the career development of the police grand commissioner ranked that took place at the institution of indonesian national police. this research used a qualitative approach with a case study method. this study concluded that career development was an police's efforts to achieve a career plan. in this case, there were organizational efforts in the form of programs and activities to assisted the career development of police grand commissioner personnel. another important thing was related to education and training provided to police grand commissioner personnel must be in accordance with the requirements needed, so that the quality improvement of police grand commissioner personnel would be truly fulfilled and aimed to developing police competencies and careers in accordanced with the needs and challenges of grand commissioner police personnel performance. keywords: career, career development, police, indonesian national police, grand commissioner police received: 8 november 2019 ; accepted: 16 december 2019 ; publish; december 2019. how to cite: kuncoro, m.h., tunas, b., & wibowo. (2019). career development of indonesian national police: the case study analysis of police grand comissioner rank. journal of business and behavioural entrepreneurship, 3(2), 58-71. https://doi.org/10.21009/ jobbe.003.2.04 career development of indonesian national police: the case study analysis of police grand comissioner rank mustafa hari kuncoro doctoral program of hrm department, jakarta state university, indonesia email: mustafahari_im12s3@mahasiswa.unj.ac.id billy tunas doctorate program of jakarta state university, indonesia wibowo doctorate program of jakarta state university, indonesia 59 introduction in this era of changing industrial revolution 4.0 rapidly, the main challenges in guarding an organization so that it can continue to excel and survive in achieving its goals is how the organization can be more flexible and adaptive to face any changes that occur (nurmadi, et. al., 2016:241). at the end of this decade, the flow of globalization which is supported by advances in information and communication technology has an impact on changes in the social, economic and political environment that is accelerating (schlesinger, nagi, & kremnitzer, 2017:72). according to marnoch, topping, & boyd (2014), along with the demands of this organizational change, the concepts of organizational change and development (organizational change and development) as part of organizational behavioral science (behavioral science) began to be developed because it was considered as one of the strategic change management approaches which is needed for every organization that has the desire to continue to survive, move forward and excel. indonesian national police reform began to be rolled out since the enactment of law no. 2 of 2002 on indonesian national police to oversee the change from an institution based on command and militarism to an independent civilian based police institution and expected to be more professional in creating security and order for the community. indonesian national police is a large organization, whose existence is spread from the police headquarter level to the police sector level. indonesian national police has as many as 443,000 officers. indonesian national police is one of the government institutions that is implementing changes in national life order towards a democratic, safe, orderly, just and prosperous civil society. it is important for indonesian national police institutions to be able to manage their human resources through good management by giving employees or members the opportunity to advance. human resources in one organization has an important role. success in an organization can be determined from the quality of the people in the organization. human resources whose abilities, skills and skills have the desire to work actively in an effort to achieve optimal work results are important capital in a police unit (sanders, 2003:316; gunawan, et. al., 2016:320). indonesian national police headquarters said that currently there are 400 officers with the rank of police grand commissioner is not included in the indonesian national police structure. the reason for not having a position is because most of them have just graduated from education and have not a position yet or are still unemployed of structure. according to police brigadier general dedi prasetyo, head of public relations bureau of civil relations of indonesian national police, there are currently 1,400 officers in the composition of officers. of the 1,400 members of the national police commission with the rank of the kombes, there are 400 kombes who have just finished their education and have not been accommodated. indonesian national police experiences a surplus of members with the position of police grand commissioner. in early of 2019, indonesian the national police had around 1,400 officers serving as middle rank officers. most of the officers did not get outside structural positions. however, the indonesian national police must implement a merit system and have not increase the rank of its members just because of the length of its term of office. the large number of middle-ranking officers (police grand commissioner) who become policy analysts is not only show the phenomenon of weak career development management within the indonesian national police, but also have led to inefficiency and ineffectiveness in human resource management clearly. in fact, gunawan, et. al. (2016:323) said that these conditions had led to psychological condikuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71)  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 60 tions that were less conducive to the police grand commissioner who were stranded or forced to become a policy analyst, from feelings of disappointment, demotivation to stress. the condition is uncertainly without cause, but there are obstacles that prevent it, so it is necessary to find appropriate solutions and strategies to anticipate it (jeffrey & soleman, 2017:110; nurmadi, et. al., 2016:250). career development has a future existence that depends on human resources because it must carry out career guidance for workers that is carried out in a planned and sustainable manner every year (dik, sargent, & steger, 2008:27). junjunan & suwanda (2019:97) stated that career development has a very large existence for an organization in the field of government because career development is a benchmark for individuals in conducting career coaching. career development as a human resource management activity basically has a goal to be able to improve and improve the effectiveness of the work carried out by workers so that they are increasingly able to provide the best contribution in realizing organizational goals (patrick & kumar, 2011:25). in 2016, this rank control was carried out with the regulation of the head of the republic of indonesia national police number 3 of 2016 concerning the administration of members of the republic of indonesia national police. the term of office of an officer who wants to become a police commissioner is at least 21 years, two years longer than before. to meet the first -level officers in the republic of indonesia national police, there are four pathways, namely transfer of education, police inspector school, police source inspector school, and police academy. from the alih golongan education school, members who graduate only have a term of service of eight years until retirement with the final rank of adjunct police commissioner. for the police inspector school, the official service term reaches 14 years with the maximum rank of adjunct senior commissioner of police. for undergraduate police inspector schools, they work in the fields of scholarship such as medicine, psychologists, and the like without limitations. as for the police academy, they can reach up to the level of the senior commissioner of police (middle officers) to general (high officers). therefore, to prevent a build-up at the level of the police chief commissioner, it is necessary to limit the police academy graduates who can reach the rank of chief commissioner. each year the number of graduate officers and the police inspector school is above 3,000, while the police academy has only 250 people and the police inspector school has 50 people. according to prenzler & sinclair (2013:115), the system of developing the right police’s career pattern is able to provide direction for individual police officers to develop themselves. an appropriate career pattern development system can accelerate the achievement of organizational goals (junjunan & suwanda (2019:100). effective career development is a living process and a process that develops and changes following increasingly flexible organizations (wilson, 2014:79). career development is not something that is static and permanent, and therefore must be studied continuously and developed continuously (campbell & armstrong, 2013:242). indonesian national police should be able to play a role in providing police career and competency development facilities in accordance with the principles of human resource management, such as: (1) job requirements, (2) career paths and pathways, (3) employee competency development, (4) employee performance management, (5) career development counseling, (6) assessment and evaluation, and (7) human resource management information systems. the purpose of this research is to analyze case studies related to the career development of the police grand commissioner that took place at the institution of indonesian national police.  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 61 literature review 1. human resource management : description and role framework filstad & gottschalk (2011:488) said that human resource management refers to the policies and practices involved in carrying out 'people' or aspects of human resources from management positions, including, recruitment, screening, training, appreciation, and assessment. resource management is the design of formal systems in an organization to ensure effective use of employee knowledge, skills, abilities, and other characteristics to achieve organizational goals (campbell & armstrong, 2013:250). resource management concerns the recruitment, selection, training and development, compensation and benefits, retention, evaluation, and promotion of employees, and employee relations with management in an organization (gunawan, et. al., 2016:329) resource management is a function that displayed the organization in facilitating employees to be more effective in achieving organizational and individual goals (marnoch, topping, & boyd, 2014:311). resource management is defined as a strategic and coherent approach to the management of the most valuable assets in an organization that is the people who work on it individually and collectively who contribute to the achievement of its objectives. human resource management is built when the organization systematically understands, creates, coordinates, aligns (maintains) and integrates all policies and practices (ivancevich, konopaske, & matteson, 2013). resource management in the sense of a broader management function and specific approach can be understood as a comprehensive set of managerial activities and the tasks concerned by developing and maintaining quality human resources that can contribute to organizational effectiveness (banfield & kay in kathimba & anyieni, 2018:160). this model is summarized in the following chart (banfield & kay in kathimba & anyieni, 2018:161): figure 1. framework for understanding the role of human resources (source: banfield & kay dalam kathimba & anyieni, 2018:161) 2. organizational behavor theory : the principle and scope organizational behavior theory basically bases its study on behavioral science itself (the root of psychology), which was developed with its focus on human behavior in organizations (wibowo, 2015). individual behavior is a reaction that is owned by an individual to everything that is seen, felt, and understood to further form in actions and attitudes (griffin & moorhead, 2014). in the context of behavioral science it is explained that each person has different views in assessing and understanding each situa career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 62 tion, especially if it is set forth in the background (background) that he had lived. this understanding is in accordance with the formula kelly explains that organizational behavior in which there are interactions and relationships between organizations on the one hand and individual behavior on the other hand (campbell & armstrong, 2013:244). colquitt in jeffrey & soleman (2017:109), organizational behavior is a study used to understand, explain and improve the attitudes and behavior of individuals and groups in organizations. according to robbins in robinson (2013: 4), organizational behavior is a field of study that invests the influence of individuals, groups and structures on behavior in organizations for the purpose of applying knowledge to increase organizational effectiveness. organizational behavior studies three determinants of behavior in organizations, namely individuals, groups, and structures (filstad & gottschalk, 2011:490). organizational behavior also applies knowledge gained about individuals, groups and the effects of structure on behavior to make organizations work more effectively (sanders, 2003:323). 3. career development : definition, planning, path, and strategy according to patrick & kumar (2011:25), career is the scope of work which is what people do for their lives. careers related to one's life, therefore there is a need for career planning (wibowo, 2015). a similar opinion was conveyed by wilson (2012:329) that a career is a scope and pursuit of work that includes what people do to make a living. an understanding of career development can be explained by patton & mcmahon in junjunan & suwanda (2019:101) that career development is the total constellation of psychological, sociological, educational, physical, economic and chance factors that combine to shape the career of an individual over the individual life span. career development is a total constellation of psychological, sociological, educational, physical, economic and opportunity factors that combine to shape an individual's career over the life span (marnoch, topping, & boyd, 2014:312). mondy in trofymowych (2007:422) argues that career development is a formal approach taken by the organization to ensure that people with the proper qualifications and experiences are available when needed. according to white (2008:123), career planning is a sequence of activities related to the life of an individual and his work or sequential patterns of work. on the other hand, malthis & jackson in wibowo (2015) revealed that although career goals and perspectives in career planning may differ for institutions / organizations and employees, there are three problems for both, namely stable career periods, technical workers and professional workers, and dual career. flippo in griffin & moorhead (2014) identified several aspects in the steps of developing career development, as follows: (1) career need assessment; (2) career opportunities; (3) need opportunity alignment. the study of the stages of a career has found the needs and expectations in order to change individuals to move through the stages. career stages are very important and are needed when someone wants to develop his career in an organization. career path is a pattern of work sequence that employees must go through to achieve a career goal that is always ideal and normative (dik, sargent, & steger, 2008:28). career development in an organization means connecting organizational needs with individual needs (jeffrey & soleman, 2017:111). the stages can be described as shown in the following chart:  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 63 figure 2. career path and important needs (source: ivancevich, konopaske, & matteson, 2013:436) ivancevich, konopaske & matteson (2013) mentioned several activities in career development strategies, namely: (1) a policy of promoting from within wherever possible; (2) career routes enabling talented people to move from bottom to top of the organization, or laterally in the firm, as their development and job opportunities take them; (3) personal development planning as a major part of the performance management process, in order to develop each individual's knowledge and skills; (4) systems and processes to achieve sharing and development of knowledge (especially tacit) across the firm; (5) multi-disciplinary project teams with a shifting membership in order to offer development opportunities for as wide a range of employees as possible. 4. national indonesian police : laws and functions indonesian national police is the national police in indonesia, which is directly responsible under the president. indonesian national police has police duties throughout indonesia. according to law no. 2 of 2002 concerning indonesian national police, the definition of police is all matters relating to the functions and institutions of the police in accordance with statutory regulations (sethi, 2013: 56). duties, functions, and authority are carried out on the obligation to conduct intensive supervision and if necessary by coercion carried out by carrying out public obligations with the intermediaries of the court, and forcing the governed to carry out general obligations without court intermediaries (white & escobar, 2008:36) . in connection with the duties and authorities of the police, this must be carried out properly so that the objectives of the police as set out in the articles are useful, the police law aims to ensure orderly and upholding the law and the establishment of public peace in the context of maintaining state security, the maintenance of the defense and security functions. the state, the achievement of national goals by upholding the function of human rights is accomplished (wilson & heinonen, 2012:285). research methodology this study uses a qualitative approach and concentrates intensively on one particular object that studies it as a case. case study data can be obtained from all parties concerned, in other words in this study collected from various sources (sugiyono, 2014). according to yin (2014), the case study method is a suitable strategy if the research question concerns "how" or "why", if the researcher has few opportunities to control the events being investigated, and if the focus of his  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 64 research lies in contemporary phenomena in the context of real life . determination of informants in this study uses purposive techniques with certain considerations which constitute 7 people with the position of police grand commissioner, among others as follows: table 1. profile identity of informant (source: primary data, 2019) qualitative research generally relies on self-reports, often in the form of indepth interviews, open ended interviews, or visual techniques (yin, 2014), so the techniques and procedures used for data collection include: interviews, observation and documentation. this study uses a qualitative data analysis model of miles and huberman, which divides qualitative data analysis into three activities, namely: data reduction, data presentation, and drawing conclusions / verification (sugiyono, 2014). informant status age gender position rank (active / code pension) kbp-01 59 male analis kebijakan madya police grand active rolemtala srena polri commissioner kbp-02 49 male analis kebijakan madya police grand active bidang pjr korlantas commissioner polri kbp-03 52 male analis kebijakan madya police grand active sops polri commissioner kbp-04 52 male kabaginfopers ro binkar police grand active ssdm polri (ps) commissioner kbp-05 52 male analis kebijakan madya police grand active bidang nbc / interpol commissioner informant status age gender position rank (active / code pension) divhubinter setncbinterpolindonesia kbp-06 56 female kabagprodiklat bindiklat police grand active lemdiklat polri commissioner kbp-07 52 male analis kebijakan madya police grand active pusdokkes polri commissioner  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 65 results and discussions the problem case analysis of career development of grand commissioner police in the indonesian national police the current police paradigm has changed its doctrine, becoming "friends partners and dependers of citizens", in the sense that the police are an inseparable part of society rather than the affairs of state power (schlesinger, nagi, & kremnitzer, 2017:77). in order to achieve the professionalism goals of the indonesian national police, human resources are needed as the main drivers in an organization. one of the development of human resources is career development. in the opinion of kbp-01 and kbp-02 informants: "in the context of career development at the institution of the indonesian national police has a structured pattern through education and training and motivational measures for members." (kbp-01, 2019) "... as for education and training (diklat) located at the indonesian national police education and training institution (lemdiklat) is an educational institution under the chief of indonesian national police in charge of organizing educational and training activities that function to form intelligent, skilled and qualified indonesian national police personnel in competence. "(kbp-02, 2019) the purpose of conducting training organized by the national police is to improve the ability and skills of personnel within the indonesian national police. therefore the institution makes special regulations regarding the implementation of indonesian national police training as stipulated in regulation number 19 of 2010 concerning the implementation of indonesian national police training with the principles of legality, accountability, transparency, humanism, gradual, and continuing. planning and new career development are policies in the form of direction of the top leadership to the management of human resources, especially the staffing section (filstad & gottschalk, 2011:492). according to junjunan & suwanda (2019:104), these policies are then followed by practical steps that are administrative in nature: such as the issuance of an appointment decree, mutations in the form of promotion or demotion, job assignments or horizontal land transfers, pensions , etc. but with observant observations, basically the policies that apply from time to time are very visible certain patterns that lead to a career planning. as stated by informants kbp-03, kbp-04, and kbp-05: ... in developing career and career development, adequate and professional human resources are needed and there is a clear career pattern for police grand commissioner personnel who hold positions both structural and functional, which in each position has its own characteristics and weights, so that stakeholders / prospective office holders, required to have certain qualifications according to their fields, think broadly, motivatively,  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 66 able to work together, have good attitudes and behavior. "(kbp03, 2019) "the importance of planned and targeted human resources" the right man on the right place "is undoubtedly a very urgent need, this is given the role of a police grand commissioner as the backbone of the government in carrying out government tasks and implementation of development, then the development and utilization of these personnel become a very important part in improving performance. "(kbp-04, 2019) "for the sake of ensuring future certainty and the quality of professional resources, it is necessary to develop employee career patterns so that employees can devote all their services in a calm and sincere manner. career patterns are concrete forms and efforts to provide opportunities to develop their talents, interests, expertise, and experience in the position, based on the requirements that have been determined. "(kbp-05, 2019) but on the other hand, there are several problems that occur related to the career development of police grand commissioner personnel, including: 1.) lack of regulations that support the implementation of police personnel programs; 2.) lack of direction assistance from relevant agencies to support strategy implementation; 3.) lack of budget and funding to run career development programs for police grand commissioner personnel; 4.) there is no specific review related to the problems of occupation as a result of not absorbing the police commissioner personnel who have not held structural or functional positions and sometimes even not in accordance with their competence. regarding the problems in career planning for police grand commissioner personnel, they also need to focus on psychological achievements which do not necessarily require promotion. also explained by dik, sargent, & steger (2008:35) that there are two main elements of career planning, namely organizational career planning and individual career planning. organizational career planning integrates human resource requirements and a number of career activities, focusing more on career paths. individual career planning differs philosophically and procedurally from organizational career planning. in other words, there are two different points of view related to career planning, that is, career planning can be centered on the organization, on individuals, or on both. there are four individual characteristics that influence how people make career choices according to patrick & kumar (2011: 28), including: 1.) career (people tend to pursue careers that are believed to be suitable to their interests); 2.) identity (career is an extension of one's identity, also as things that shape identity); 3.) personality (this factor includes personal orientation and requires other individuals in terms of affiliation, power, and achievement needs); 4.) social background (socioeconomic status and the level of education and employment of parents in employees are factors that fall into this category. from the description above, it states that individual and organizational careers are not separate and different. for this reason, organizations need to assist police grand commissioner personnel in planning careers so that they can meet each other's needs. the career path is a flexible line of progressions through which police grand  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 67 commissioner personnel move throughout their careers with an organization. following career paths arranged to be able to develop careers with the help of organizations. career development is a formal approach taken by organizations to ensure that people with the right qualifications and experience are available when needed. problem solving identification of career development of grand commissioner police in the indonesian national police the grand strategy of the indonesian national police 2005-2025 was prepared to be used as a guideline for all members of the national police so that in carrying out their duties more directed, but in reality the performance of the national police is still considered not in accordance with the expectations of the community, where the results of building trust (trust building) are not showing optimal results, even though the national police has begun to face work programs in the form of partnership building. with this condition, it is certain that the challenges and workload of the indonesian national police in achieving strives for excellence will be increasingly severe. this condition is in line with the process of regional autonomy which began since the enactment of law number 22 year 1999 to law number 34 year 2008, resulting in consequences for each region. each region is demanded to be able to regulate and carry out its own government affairs in the hope that it will be able to improve the quality of public services in the context of regional development without dependence from the central government. the low quality of public services in the police is certainly closely related to the condition of human resources (wilson, 2012:340). historically, there have been many attempts by the government to improve the quality of apparatus resources, for example through education education. basically, there are three foundations underlying the discussion on the empowerment of the government apparatus, namely theoretical basis, pragmatic foundation, and normative foundation (nurmadi, et. al., 2016:261). the theoretical foundation demands that regions look for innovations and tips as well as new breakthroughs so that the empowerment of the government apparatus can be optimized so that it can support the creation of efficient and fast public services. pragmatic foundation requires regions to manage and utilize apparatus resources optimally. while the normative foundation requires regions to explore the potential of human resources in order to improve public services through a realistic and integrated policy. as stated by kbp-06 and kbp-07 informants: "the importance of such education and training for police grand commissioner personnel as human investment must be carried out. development is not only intended to increase the effectiveness and efficiency of work, but also in order to accelerate the establishment of desired behavioral embodiments. "(kbp-06, 2019) "in addition, no less important is through education and training, police grand commissioner personnel are expected to be better adjusted or can anticipate various kinds of problems, needs and progress of the community, and fully realize the obligations in carrying out the tasks assigned to them. this condition is expected to improve the quality of public services for the better. "(kbp-07, 2019)  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 68 the function of the police that carries out community security and order, law enforcement, protection, protection and service to the community is aimed at maintaining and maintaining the validity and obedience of the norms that exist in the community, so that life in society is safe, orderly, peaceful, peaceful and peaceful. prosperity (kathimba & anyieni, 2018:164). if it is observed that the task of the police in any country is directed to the interests of the state or the government and the community, so that the state or government has the responsibility for maintaining, maintaining and maintaining public safety and order (wilson & heinonen, 2012:304). in any country in the world, the people want to have a good police force, which means that in carrying out the functions of the police must be in accordance with the demands and needs of the community, so that the ideal police requirements are needed. in forming an ideal police force and oriented to the needs of the community served there are several conditions and formulations that have been agreed upon by the world according to jeffrey & soleman (2017:112), including: 1.) well motivated (meaning to get good quality police candidates for cadets the police must have good motivation when a police candidate chooses to become a police officer, this motivation will give a policing color to a police officer in developing his career, and this is monitored from the beginning of his recruitment); 2.) well educated (meaning to get a good police candidate must be educated to be a good police officer which in this case touches on the education system, curriculum and teaching and learning process which is quite complex and complex); 3.) well trainned (meaning to get a good police officer there needs to be training which goes through rigorous managerial processes so that synchronous education and training is able to answer various actual police challenges and challenges in the future); 4.) well equipment (this concerns the problem of police equipment which includes facilities and infrastructure as well as police technology); 5.) wellfare (i.e. reasonably adequate welfare of police personnel). because the police in each country are confronted with different cultures, national ideologies and community characteristics, in addition to the five ideal police formulations, it is necessary to add especially those relating to police organization and supervision. various development programs for police personnel have been implemented at indonesian national police. from the results of the previous analysis, it can be seen that the career development strategies of the police grand commissioner personnel that have been implemented at indonesian national police include through various training, coaching and development, as well as rewards for outstanding personnel. the results of the development of the police grand commissioner personnel that have been implemented include the following: 1.) through training programs, seminars and workshops an increase in work ability of the police personnel by mastering various skills and specific work implementation techniques; 2.) an increase in theoretical, conceptual and moral abilities that can be known from the results of the competency test; 3.) an increase in motivation and performance of police personnel as a result of the police grand commissioner's guidance and career development program; 4.) placement of positions in accordance with the competencies of the police grand commissioner personnel. conclusions this study concludes that career development is an police's efforts to achieve a career plan. these activities may be supported by the organization or not at all. however good a career plan that has been made by an employee is accompanied by a reasonable and realistic career goal, the plan will not become a reality without systematic  career development of indonesian national police: the case study analysis of police grand comissioner rank.  https://doi.org/10.21009/jobbe.003.2.04 kuncoro, m.h., tunas, b., & wibowo. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 69 and programmatic career development. this includes organizational efforts in the form of programs and activities to assist the career planning of police grand commissioner personnel. it is hard to find a universal pattern about everyone's career because what happens is very diverse. there are people who make progress in a career based on a particular career plan. but even without planning, there are people who make progress in their careers, so that progress is associated with "good fortune". regardless of whether or not fate is linked to one's career, what is clear is that work performance, experience, training and development, in fact play an important role in taking various career paths of someone even within the institution of the indonesian national police. another important thing is related to education and training provided to police grand commissioner personnel must be in accordance with the requirements needed, so that the quality improvement of police grand commissioner personnel will be truly fulfilled. it is also based that the level of education and knowledge influences the choice of position obtained. the higher the level of education and the more extensive one's knowledge, the desire to do work with a high level of challenge is getting stronger. education and training here is aimed at developing police competencies and careers in accordance with the needs and challenges of the performance of police grand commissioner personnel. acknowledgement praise for the presence of almighty god, because of his blessing and blessing, the author is able to complete this research journal. not to forget, the authors express their gratitude to the institution of indonesian national police, the police grand commissioners who were informants in the research, and exclusive guidance from the supervising professors. hopefully this article can bring benefits both practically and academically. references campbell, t. t. & armstrong, s. j. 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(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (58-71) 28 abstract this study aims to determine the effect of dividend policy, managerial ownership and institutional ownership on the capital structure of manufacturing companies listed on the idx for the 2012-2016 period. the data used in this study is an annual report of the manufacturing sector listed on the idx for the period 2012-2016. by using purposive sampling method, 56 companies were obtained and consisted of 280 observations. the model used in this research is panel data analysis using the random effect model approach. the results of this study indicate that the dividend policy has a positive but not significant effect on der, but has a significant positive effect on dar. moreover, managerial ownership is influential but not significantly negative on the capital structure (der and dar). institutional ownership has a significant negative effect on der, but has a negative but not significant effect on dar. profitability has a significant negative effect on the capital structure (der and dar), while the structure of assets and company size does not have a significant effect on the capital structure. (der and dar). keywords: capital structure, dividend policy, corporate governance received: 03 september 2018 ; accepted: 20 september 2018; publish; oktober 2018 how to cite: puspita, r,p,i., suherman. (2018).the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016. journal of business and behavioural entrepreneurship, 1(2), 28-39. https://doi.org/10.21009/jobbe.001.2.04 the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016 ratna putri indah puspita economic faculty state jakarta university email : ratna.putriindahpuspita@gmail.com suherman economic faculty state jakarta university email : suherman@feunj.ac.id mailto:ratna.putriindahpuspita@gmail.com mailto:suherman@feunj.ac.id 29 introduction the company's goal is to maximize the prosperity of shareholders or shareholders. for companies that have gone public, the higher the share price, the better the welfare of the company owner. in a company, shareholders and managers have different goals. the difference between these objectives can occur between shareholders and managers, managers and creditors and creditors with shareholders, so in this difference in objectives can cause agency problems. there are several methods used to reduce agency problems and reduce costs associated with agencies. first, by increasing the dividend payout ratio, there will not be enough net cash flow available so that management is forced to seek outside funding to finance its investment. second, by aligning the interests of management and shareholders by increasing managerial ownership in the company. third, ownership of institutional investors will encourage more optimal supervision of management performance. agency problems are the ownership and management functions of the company which are separated so that they cause conflict. therefore, to overcome the agency problem, corporate governance is also needed. good corporate governance and capital structure are two basic components in the company's economic stability. both of these components must be well maintained because if they are not properly maintained, it can cause the company's performance to decline and can cause bankruptcy. in order for these factors not to occur, the company must be controlled by competent people who can manage and take company policies appropriately. there are two measurement patterns used in capital structure testing. first is the debt to equity ratio (der) which means that the ratio of the ratio between total debt and equity. second, the debt to assets ratio (dar) is the ratio of the ratio between total debt and total assets. dividend policy is one of the factors that influence the capital structure because the greater the company's ability to borrow, the greater the dividends paid to shareholders (sudana, 2011: 170). in a study conducted by wisnu et al. (2014), laksana and widyawati (2016), eviani (2015), atiqoh and asyik (2016) said that dividend policy has a significant negative effect on capital structure. according to wahyuni and ardini (2017), nainggolan (2017) and sari (2014) say that dividend policy does not significantly influence the capital structure. managerial ownership is also one of the factors that can affect the capital structure. maftukhah research (2013), nuraini et al. (2017) states that managerial ownership has a significant negative effect on capital structure. research by laksana and widyawati (2016), atiqoh and asyik (2016), bernice et al., (2015) stated that managerial ownership does not have a significant effect on capital structure. institutional ownership is the proportion of shares held by institutions at the end of the year which are measured in percentages (cahyani and handayani, 2017). the results of the research are maftukhah (2013), laksana and widyawati (2016), cahyani and handayani (2017), atiqoh and asyik (2016), agyei and owusu (2014), and bernice et al. (2015) which states that institutional ownership has a significant positive effect on capital structure. anindhita (2017) states that institutional ownership has no significant effect on the capital structure. in addition to dividend policy, managerial ownership, and institutional ownership, there are several variables that influence the capital structure; these variables are used as control variables. profitability affects the capital structure; if the company has high profitability, then the company has retained earnings which can be used as a source of internal funds for the company. if the company uses retained earnings as additional capital, it can reduce the debt held by the company (eviani, 2015). the structure of assets or tangibility also influences the capital structure. companies that have large fixed assets can be used as collateral to be used as a loan in large amounts (putri, 2012). firm size is also one of the factors that must be considered in the capital structure decision. companies that have a large company size will use substantial external funds because funding needs will increase along with the growth of the company (andika and fitria, 2016). based on the explanation above, the researcher is interested in conducting research entitled "the effect of dividend policy, managerial ownership, institutional ownership to capital structure in manufacturing companies listed on indonesia stock exchange (idx) period 2012-2016." purposes based on the formulation of the problem above, the purpose of this study is to examine empirically the impact of dividen policy, managerial ownership, and intitutional ownership on capital structure of the listed company in indonesia stock exchange for the period 2012-2016. puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 30 theoritical framework good corporate governance good corporate governance is a principle that directs and controls the company to achieve a balance between the strength and authority of the company in giving its accountability to its stakeholders and stakeholders in general. there are four main components of the concept of good corporate governance, namely fairness, transparency, accountability and responsibility. these components are important because the application of the principles of good corporate governance is consistently proven to improve the quality of financial statements and can also be a barrier to performance engineering activities that result in financial statements not describing the company's fundamental value. trade-off theory the general approach to understanding capital structure decision making is known as the static tradeoff theory by following the intrinsic form label and the model is the present value of tax utilization derived from the increase in leverage is increased by the increase in the cost of possible financial difficulties and the increase in agency costs associated with increased debt. the trade-off theory explains the relationship between the tax risk of bankruptcy and the use of debt caused by the decision of the capital structure taken by the company. in accordance with the essence where the present value of the benefits of tax savings (tax shield) arising from increased use of financial leverage has a trade-off dilemma (atiqoh and asyik, 2016). pecking order theory an alternative view to predicting how managers fund a company's capital budget in the financial literature is now known as the pecking order theory. in myer's opinion, he summarizes the pecking order theory of capital structure in four points: (a) the company adjusts dividend policy with investment opportunities; (b) the company prefers to fund investment opportunities with the first funds generated internally, then external funds are sought; (c) when external funds are needed, the company first chooses to issue debt securities and the issuance of the securities type will be the last; (d) when more external funds are needed to fund projects with a positive npv, pecking orders will be followed. this means preferring new-risk debt to convertible, preferred equity and ordinary equity as a last resort (keown, 2010: 162). signal theory signals are instructions directed at investors regarding the management's perspective on the company's development. signal theory here is the step of management in giving explicit instructions to management about the development of the company. if the company is profitable, then the company will try to avoid selling shares and choosing to get funds in other ways (wahyuni and ardini, 2017). capital structure the capital structure is related to the long-term expenditure of a company which is measured by the comparison of long-term debt with own capital. an optimal capital structure is a capital structure that maximizes the company's stock price. companies will usually study the situation and draw conclusions about the optimal capital structure and will determine the target capital structure which is a combination of debt, preferred stock and ordinary equity which will be the basis for capital accumulation by the company. capital structure can be measured using financial ratios of debt to equity ratio and debt to assets ratio with the following formula: der = dan dar = dividend policy dividend policy is related to the determination of the amount of the dividend payout ratio, which is the percentage of net profit after tax distributed as dividends to shareholders. dividend decisions are part of the company's spending decisions, especially internal corporate expenditures, because the size of the dividends distributed will affect the size of retained earnings. dividend payout ratio has a relationship with capital structure. if the dividend payout ratio is high, then the net cash flow will be small and management will look for external funds through debt financing (anindita, 2017) the dividend payout ratio formula can be described as follows: dividend payout ratio (dpr) = puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 31 managerial ownership managerial ownership is explained through an agency approach that considers managerial ownership as a tool used to reduce agency conflicts among several claims of a company and an explanation of managerial ownership through an imbalance approach which means that with increased managerial ownership, managers will be motivated to improve their performance so that they will have a good impact on company and fulfill the wishes of shareholders (laksana and widyawati, 2016). managerial ownership can be formulated as follows: managerial ownership = institutional ownership institutional ownership is the ownership of a company's shares owned by institutions or institutions such as insurance companies, investment companies and other institutional ownership. institutional ownership acts as the party that monitors the company. companies that have profitable profits will borrow external financing less like debt issuance, because they do not need money from external parties. conversely, companies that are less profitable will issue their debt because they do not have enough funds for their capital investment. mathematically institutional ownership can be formulated: institutional ownership = profitability profitability ratios can be calculated using return on assets (roa) which shows the company's ability to use all assets owned to generate profit after tax. this ratio is important for managers to evaluate the effectiveness and efficiency of company management in managing all company assets. returns on low assets can be caused by deliberate decisions to use large amounts of debt, high interest expenses cause net income to be relatively low. debt is the cause of low roa (brigham and houston, 2011: 148). roa is formulated asfollows: roa = assets structure asset structure is a wealth owned by a company that is expected to provide benefits in the future. the company will choose external funding by using debt as collateral for the company's creditors to guarantee fixed assets to obtain debt. the greater the fixed assets owned by the company, the higher the company's debt. therefore, the structure of assets has an influence on the capital structure. the greater the assets owned by the company, the greater the debt used by the company (cahyani and handayani, 2017). the asset structure formula can be stated as follows: asset structure = firm size the firm size has an influence on the capital structure, because the size of a large company is easier to get loan funds from outside the company with the tendency of companies that grow quickly must rely on external loans to meet the operational funding needs of the company (atiqoh and asyik, 2016). mathematically, the firm size can be formulated as follows: size = independent variables figure 1. research model source : data processed by reseachers (2018) puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 32 hypothesis h1: dividend policy has a significant negative effect on capital structure in manufacturing companies for the 2012-2016 period h2: managerial ownership has a significant negative effect on the structure capital for manufacturing companies for the 2012-2016 period h3: institutional ownership has a significant positive effect on capital structure in manufacturing companies for the period 2012-2016 research methods the population in this study are manufacturing companies listed on the indonesia stock exchange (idx) for the period 2012-2016. determination of company samples is done by purposive sampling method. the following criteria must be owned to be included in this study: manufacturing companies listed on the indonesia stock exchange for the period 2012-2016; manufacturing companies that report consecutive annual financial statements for the period 2012-2016; manufacturing companies that conduct maximum ipos in 2012; manufacturing companies that pay dividends of at least one year during the 2012-2016 observation period. based on these criteria, 56 manufacturing companies paid a minimum dividend policy of one year. the number of samples used for this study were 56 companies. furthermore, the analytical method used in this study is panel data regression analysis using the chow test and the hausman test to analyze the effect of independent variables on the dependent variable proxied by debt to equity ratio (der) and debt to asset ratio (dar). results and discussion descriptive statistics table 1. descriptive statistics manufacturing companies on the indonesia stock exchange source : data processed by researchers (output eviews 10 results)(2018) based on the results in table 1 which shows descriptive statistics of manufacturing companies as much as 280 units of analysis with der and dar as a proxy of the capital structure, shows the average value of der is 0.7656 or equal to 76.56% standard deviation is 0.5900 or 59%. this shows that the manufacturing companies on the idx have low variability because the average der value is higher than the standard deviation. the debt to assets ratio (dar) variable has an average dar value is 0.3792 or 37.92% with a standard deviation value is 0.1725 or 17.25%. smaller standard deviation values indicate companies that are observations have low dar variability. this means that the total assets exceed the total equity owned by the company. the dividend payout ratio (dpr) variable has a mean value is 0.3275 or 32.75% with a standard deviation is 0.2656 or 26.56%. the standard deviation value smaller than the average value indicates that the variability of dividend payout ratio (dpr) is low in the sample of manufacturing companies during the study period. managerial ownership (km) variables show the average value of managerial share ownership is 0.0270 or 2.7%. this means that the managerial shares owned by the manufacturing company are less than the number of shares outstanding by the company in other sectors listed on the puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 der dar dpr km ki roa sa size (in million rupiah ) mean 0.7656 0.3792 0.3275 0.0270 0.6895 0.0995 0.3568 12.194.096 median 0.5932 0.3723 0.2904 0.000024 0.7075 0.0837 0.3165 2.208.313 maximum 2.7257 0.7315 1.1012 0.3732 0.9974 0.4037 0.8431 261.855.000 minimum 0.0224 0.0184 0 0 0.0180 -0.1584 0.0402 128.547 std. dev 0.5900 0.1725 0.2656 0.0634 0.2036 0.0932 0.1862 32.748.090 observation 280 280 280 280 280 280 280 280 33 idx. the standard deviation of the km variable is 0.0634 or 6.34%, greater than the mean value during the study period, manufacturing companies have high km variability. the average value of institutional ownership (ki) in a manufacturing company is 0.6895 or 68.95%, the standard deviation of the ki variable is 0.2036 or by 20.36%. the standard deviation value smaller than the average value indicates that the low variability of institutional ownership (ki) in the sample of manufacturing companies during the study period. the average value of return on assets (roa) in manufacturing companies is 0.0995 or 9.95%, the standard deviation of the roa variable is 0.093 or 9.3%. the standard deviation value smaller than the average value indicates that the low variability of return on assets (roa) in the sample of manufacturing companies during the study period. the average value of asset structure (sa) in a manufacturing company is 0.3568 or 3.56%, the sa standard deviation is 0.1862 or 18.62%. the standard deviation value smaller than the average value indicates that the asset structure (sa) variability is low in the sample of manufacturing companies during the study period. the average value of the company size (size) in a manufacturing company is rp. 12,194,096, the standard deviation of the size variable is rp. 32,748,090. the standard deviation value greater than the mean value indicates that the variability of firm size (size) in the sample of manufacturing companies during the study period. estimation model based on the chow test results in table 2 and table 3 produce a probability value of 0.000 smaller than 0.05. in tables 4 and 5 produce a probability value of 0.000 smaller than 0.05. so, the results show that the best model for this research is to use the fixed effect model approach. table 2. chow test results with control variables (der) source : data processed by researchers (output eviews 10 results)(2018) table 3. chow test results without control variables (der) source : data processed by researchers (output eviews 10 results)(2018) table 4. chow test results with control variables (dar) source : data processed by researchers (output eviews 10 results)(2018) table 5. chow test results without control variables (dar) source : data processed by researchers (output eviews 10 results)(2018) puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 effectd test statistic d.f. prob. cross-sectio f 31.447001 (55.218) 0.0000 cross-section chi-square 613.158110 55 0.0000 effectd test statistic d.f. prob. cross-sectio f 33.548099 (55.221) 0.0000 cross-section chi-square 625.877658 55 0.0000 effectd test statistic d.f. prob. cross-sectio f 34.456293 (55.218) 0.0000 cross-section chi-square 635.996043 55 0.0000 effectd test statistic d.f. prob. cross-sectio f 40.428365 (55.221) 0.0000 cross-section chi-square 672.968171 55 0.0000 34 the hausman test are then carried out to determine the exact estimation model table 6. hausman test results with control variables (der) source : data processed by researchers (output eviews 10 results)(2018) table 7. hausman test results without control variables (der) source : data processed by researchers (output eviews 10 results)(2018) table 8. hausman test results with control variables (dar) source : data processed by researchers (output eviews 10 results)(2018) table 9. hausman test results without control variables (dar) source : data processed by researchers (output eviews 10 results)(2018) based on the results of the hausman test in tables 6 and 7 produce probability values of 0.2080 and 0.1376 so that the best model is a random effect model and based on tables 8 and 9 produce probability values of 0.1916 and 0.0975 also found the random effect model is the best model. multicollinearity test in table 10, there is no correlation coefficient between variables that is more than 0.80, which indicates that there is no correlation between independent variables or free from multicollinearity. tabel 10. multicollinearity test results source : data processed by researchers (output eviews 10 results)(2018) puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 test summary chi-sq. statistic chi-sq. d.f. prob. cross-section random 8.434685 6 0.2080 test summary chi-sq. statistic chi-sq. d.f. prob. cross-section random 5.517843 3 0.1376 test summary chi-sq. statistic chi-sq. d.f. prob. cross-section random 8.693650 6 0.1916 test summary chi-sq. statistic chi-sq. d.f. prob. cross-section random 6.310018 3 0.0975 dpr km ki roa sa size dpr 1.000000 -0.238838 0.336626 0.563359 -0.097132 0.290223 km -0.238838 1.000000 -0.496941 -0.102810 0.008661 -0.257519 ki 0.336626 -0.496941 1.000000 0.240729 -0.079818 -0.003573 roa 0.563359 -0.102810 0.240729 1.000000 -0.277456 0.065656 sa -0.097132 0.008661 -0.079818 -0.277456 1.000000 0.281891 size 0.290223 -0.257519 -0.00357 0.065656 0.281891 1.000000 35 table 11. recapitulation t-test results source : data processed by researchers (output eviews 10 results)(2018) hypothesis testing results the effect of dividend policy to capital structure table 11 in the der column shows that the coefficient of dividend policy is 0.04856 and the probability value is 0.5655 greater than 0.05, while in table 11 in the der column without the control variable states that the dividend policy coefficient is 0.024 and the probability value is 0.7793 greater than 0.05. this means that the dividend policy has a non-significant positive relationship to the capital structure (der) in manufacturing companies listed on the stock exchange in 2012-2016. this indicates that the size of the dividend policy does not affect the capital structure decision, so the first hypothesis (h1) states that the dividend policy has a significant negative effect on the capital structure. this is in line with the results of research conducted by sari (2014) which states that dividend policy has a positive and not significant effect on the capital structure. this shows that the companies sampled in this study do not distribute dividends every year even though the company has an advantage, they prefer to use their profits for the needs and development of the company as well as retained earnings rather than paid as dividends. in table 11 in the dar column shows that the coefficient value is 0.048377 and the probability value is 0.0411 smaller than 0.05, whereas in table 11 in the dar column without the control variable states that the dividend policy coefficient is 0.0453 and the probability value is 0.05 equal to 0.05. this means that the dividend policy has a significant positive effect on the capital structure (dar) in manufacturing companies listed on the stock exchange in 2012-2016 so that the first hypothesis (h1) states that dividend policy has a significant negative effect on capital structure rejected. this is in line with the results of research conducted by maftukhah (2013) which states that the existence of dividend payments that continue to cause a fixed need for funds every year so that the company's funding needs will increase. companies that distribute large amounts of dividends in financing their investments require additional funds through debt to total assets because the internal funds owned by the company are insufficient so the dividend policy affects the capital structure. puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 (y= der) (y=der with control variables) (y = dar) (y = dar withaout control variables) coeff. prob. coeff. prob. coeff. prob. coeff. prob. c 0.2276 0.8314 1.176 0 0.044743 0.8841 0.4029 0 dpr 0.048566 0.5655 0.024 0.7793 0.048337 0.0411 0.0453 0.0569 km -0.386654 0.2658 -0.308 0.3897 -0.058324 0.547 -0.0398 0.6826 ki -0.499612 0.0239 -0.595 0.0089 -0.037323 0.5484 -0.0543 0.3896 roa -1.305214 0 0 0 -0.22942 0.0061 0 0 sa -0.03373 0.888 0 0 0.047271 0.4844 0 0 size 0.035592 0.3428 0 0 0.012292 0.254 0 0 adjusted rsquared 0.07702 0.014202 0.03692 0.004999 observation 280 280 280 280 regression model random effect random effect random effect random effect 36 the effect of managerial ownership to capital structure table 11 in the der column shows that the coefficient of managerial ownership is -0.38665 and the probability value of 0.2658 is greater than 0.05, whereas in table 11 in the der column without the control variable states that the coefficient of managerial ownership is -0.308 and a probability value of 0.3897 is greater from 0.05. in table 11 in the dar column shows that the coefficient of managerial ownership is -0.05832 and the probability value is 0.5470 greater than 0.05, whereas in table 11 in the dar column without the control variable states that the coefficient of managerial ownership is -0.0398 and the probability value is 0.6826 more large from 0.05. indicates that managerial ownership has a significant negative effect on the capital structure (der and dar). this indicates that the managerial ownership or size will not affect the company's capital structure, so the second hypothesis (h2) which states that managerial ownership has a significant negative effect on capital structure is rejected. this is in line with the results of research conducted by atiqoh and asyik (2016), bernice et al. (2015) which states that managerial ownership has no significant negative effect on capital structure, this indicates that the ownership of shares by insider in manufacturing companies in indonesia is still low compared to other share ownership, so managerial ownership of manufacturing companies in indonesia is not a factor determinants in capital structure policy. the effect of institutional ownership to capital structure table 11 in the der column shows that the institutional ownership coefficient is -0.49961 and the probability value is 0.0239 less than 0.05, whereas in table 11 in the der column without the control variable states that the institutional ownership coefficient is -0.595 and the probability value is 0.0089 smaller from 0.05. this means that institutional ownership has a significant negative effect on capital structure (der) in manufacturing companies listed on the stock exchange in 2012-2016. this indicates that the size of institutional ownership has an effect on the company's capital structure, so the third hypothesis (h3) which states that institutional ownership has a significant positive effect on capital structure is rejected. this is in line with the results of research conducted by nuraini et al. (2017). the greater proportion of the company's shareholding by the institution indicates that there will be an agency from the monitoring institution to see the management's performance so that management will be more careful in placing its investment activities to use its debt policy and cause the company's debt to decline. institutional investors play a role but are not actively involved in making decisions regarding debt to total equity. furthermore in table 11 column dar shows that the coefficient value of -0.03732 and the probability value of 0.5484 is greater than 0.05, while in table 11 in the dar column without the control variable states that the institutional ownership coefficient is -0.054 and the probability value is 0.3896 greater than 0.05 . this means that institutional ownership has no significant negative effect on the capital structure (dar) in manufacturing companies listed on the stock exchange in 2012-2016. this indicates that the size of institutional ownership does not affect the company's capital structure, so the third hypothesis (h3) which states that institutional ownership has a significant positive effect on capital structure is rejected. this is in line with the results of research conducted by anindhita (2017) which states that institutional ownership has a significant negative effect on the capital structure. this is because the institutional side is not actively involved in the company's operational activities. the capital structure decision becomes the right of the managerial in deciding the use of funds for company operations so that an institutional shareholder does not have the right to make decisions on the use of the company's operational funds in the form of debt to total assets. the effect of profitability as control variables to capital structure in table 11 of the der column shows the coefficient of return on assets (roa) of -1.3052 with a probability value of 0, while in table 11 column dar shows the coefficient of return on assets (roa) of -0.22942 with a probability value of 0.0061. this means that return on assets has a significant negative effect on the capital structure, the greater the roa, the lower the company's capital structure. these results are consistent with the results of research conducted by maftukhah (2013), laksana and widyawati (2016), eviani (2015), cahyani and handayani (2017), atiqoh and asyik (2016), agyei and owusu (2014) which state that profitability has negative and significant influence on the company's capital structure. significant negative relations on profitability of the capital structure indicate that companies with a high level of profitability will reduce capital dependence from outside parties, because with a high level of profit, the company will obtain funding generated internally in the form of retained earnings before the company uses debt. puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 37 the effect of asset structure as control variables to capital structure table 11 in the der column shows that the asset structure (sa) coefficient is -0.0337 and the probability value is 0.888 greater than 0.05. this means that the asset structure (sa) has no significant negative effect on capital structure (der) in manufacturing companies listed on the stock exchange in 2012 -2016. this indicates that the size or size of the asset structure does not affect the capital structure decision. these results are consistent with the results of a study conducted by kartika (2016) which states that the asset structure has no significant negative effect on the capital structure, this is because the asset structure of a manufacturing company is capital intensive so that the priority in corporate funding is equity financing or financing with own capital, meaning that loan capital is only a supplement, especially to meet the funding needs for working capital. table 11 in the dar column shows that the asset structure (sa) coefficient is 0.04727 and the probability value is 0.4844 greater than 0.05. this means that the asset structure (sa) has no significant positive effect on the capital structure (dar) in manufacturing companies listed on the stock exchange in 2012-2016. this indicates that the size or size of the asset structure does not affect the capital structure decision. this is in line with the results of research conducted by kanita (2014) which argued that the structure of assets that have a positive relationship with the capital structure but does not have a significant effect due to the possibility of the company using its own capital to fund the needs of its assets. the effect of firm size as control variables to capital structure table 11 in the der column shows that the coefficient of firm size is 0.03559 and the probability value is 0.3428 greater than 0.05. in table 11 in the dar column also shows that the coefficient of company size is 0.01229 and the probability value of 0.2540 is greater than 0.05. indicates that the size of the firm has a positive and not significant effect on the capital structure (der and dar). this indicates that the size or size of the company will not affect the company's capital structure. this result is in accordance with the results of research conducted by atiqoh and asyik (2016) and nainggolan (2017) which states that the size of the company has no significant positive effect on the capital structure. the size of the company in this study is not a determining factor in the rise of the company's capital structure because large companies and small companies will take careful consideration if they want to make loans. large loans in the company will provide future expenses in the form of loan interest. therefore, large companies and small companies will prioritize using internal funds rather than borrowing funds from external parties. determination coefficient in table 11 in column a shows the results of adjusted r2 from der that is 0.07702 with the success rate of the regression model that is equal to 7.71%, the meaning is that by 7.71% the dependent variable capital structure proxied by der can be explained by the independent variables dpr, km, ki and control variables, namely profitability, asset structure and company size. while the remaining 92.3% is explained by other factors. the adjusted r2 results from dar in table 11 column c are 0.03697, the success rate of the regression model is 3.7%, meaning that 3.7% of the dependent variable capital structure proxied by dar can be explained by the independent variables dpr, km, ki and the control variables namely profitability, asset structure and company size. while the remaining 96.3% is explained by other factors. in table 11 in column b, the adjusted r2 der results without the control variable is 0.014, the regression model level of 1.4% means that 1.4% of the dependent variable capital structure proxied by der can be explained by the independent variable dpr, km, ki. while the remaining 98.6% is explained by other factors. in table 11 in column d, the adjusted r2 dar results without a control variable of 0.004, the regression model level of 0.4% mean that as much as 0.4% the dependent variable capital structure proxied by dar can be explained by the independent variable dpr, km, ki. while the remaining 99.6% is explained by other factors. the results of this study indicate that if you do not use a control variable consisting of variables roa, sa, size then the adjusted r2 value produces a smaller value than using the control variable. therefore, in this study it is better to use the control variable roa, sa, size rather than not using the control variable. conclusions and recommendations in conclusion, the study finds the impact of institutional ownership on capital structure proxied by debt to equity ratio (der). the greater proportion of the institutional ownership indicates that there will be more monitoring role on the management's performance. so that management will be more careful in placing its investment activities to use its debt policy and cause the company's debt to decline. in addition, some suggestions for the future research are including: build the model that put some corporate governance variables such as board of directors, audit committee; the liquidity risk variable as well puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 38 as the variation of debt period are also interesting to explore regarding both liquidity and profitability are crucial factor for the survival firms. bibliography agyei, a. dan owusu, a. r. (2014). the effect of ownership structure and corporate governance on capital structure of ghanaian listed manufacturing companies, international journal of academic research in accounting, finance and management sciences : volume 4, nomor 1, pp. 109–118. andika dan fitria. (2016). pengaruh struktur aktiva, ukuran perusahaan, profitabilitas dan risiko bisnis terhadap struktur modal. jurnal ilmu dan riset akuntansi, vol 5, nomor 9. anindhita, niken. (2017). pengaruh kepemilikan saham institusi, kepemilikan saham publik, kebijakan dividen, struktur aset, dan profitabilitas terhadap kebijakan utang perushaan manufaktur di bursa efek indonesia tahun 2012-2014. jom fekom vol. 1 no. 2. atiqoh, z. dan asyik, n. f. (2016). pengaruh kinerja keuangan, size, pertumbuhan penjualan, dan kepemilikan saham terhadap struktur modal, sekolah tinggi ilmu ekonomi indonesia (stiesia) surabaya : volume 5, nomor 5, 5(5). bernice, y., nugrahanti, y. w. dan mahastanti, l. a. (2015). the impact of managerial ownership, institutional ownership and company size towards debt policy, the 3rd ibea international conference on business, economics and accounting, (april). brigham, eugene f. dan joel houston. (2011). dasar-dasar manajemen keuangan. diterjemahkan oleh ali akbar yulianto. edisi kesebelas. buku kedua. jakarta: salemba empat cahyani, n. i. dan handayani, n. (2017). pengaruh profitabilitas , likuiditas , size, kepemilikan institusional dan tangibility terhadap struktur modal, jurnal ilmu dan riset akuntansi : volume 6, nomor 2, pp. 614–630. eviani, a. d. (2015). pengaruh struktur aktiva, pertumbuhan penjualan, devidend payout ratio, likuiditas dan profitabilitas terhadap struktur modal, akuntansi dan sistem teknologi informasi: vol. 11, no.2, pp. 194–202. kanita, g. g. (2014). pengaruh struktur aktiva dan profitabilitas terhadap struktur modal perusahaan makanan dan minuman, trikonomika: volume 13, no. 2, 13(2), 127–135. kartika, andi. (2016). pengaruh profitabilitas, struktur aset, pertumbuhan penjualan dan ukuran perusahaan terhadap struktur modal perusahaan manufaktur di bursa efek indonesia. infokam nomor i th. xii/maret/ 2016. keown, arthur j. et al. (2010). manajemen keuangan. edisi kesepuluh. jilid dua. jakarta: indeks. laksana, intan fitria dan widyawati, d. 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(2012).pengaruh profitabilitas, struktur aktiva dan ukuran perusahaan terhadap struktur modal pada perusahaan manufaktur sektor industri makanan dan minuman yang terdaftar di bursa efek indonesia (bei), jurnal manajemen : volume 1, nomor 1, 1(1), pp. 1–7. puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 39 sari, ni putu ayu pundak. (2014). faktor faktor yang mempengaruhi struktur modal pada perusahaan non keuangan yang terdaftar di bursa efek indonesia tahun 2008-2012, e-jurnal akuntansi universitas udayana : vol. 7, 1, 33–47. sudana, i made. (2011). manajemen keuangan perusahaan: teori dan praktik. jakarta: erlangga. wahyuni, irma dan lilis ardini. (2017). pengaruh growth oppurtunity, profitabilitas dan kebijakan dividen terhadap struktur modal. jurnal ilmu dan riset akuntasi: volume 6. no. 4. wisnu, andika, sofia rahman dan ni nyoman alit triani. (2014). pengaruh arus kas bebas, kebijakan dividen dan ukuran perusahaan terhadap struktur modal perusahaan manufaktur yang terdaftar di bursa efek indonesia periode 2008-2012. jurnal ilmu manajemen: volume dua. puspita, r,p,i., suherman. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (28-39)  the impact of dividend policy, managerial ownership, institutional ownership to capital structure on manufacturing company in indonesia stock exchange (idx) period 2012-2016.  https://doi.org/10.21009/jobbe.001.2.04 94 abstract this study aims to analyze the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta. this study shall be focused on the variables of entrepreneurial education, namely attitude and self efficacy, to mediate the effect of entrepreneurship education on entrepreneurial intention. the object of the study was 400 students from private islamic universities in jakarta with accreditation a and b, entrepreneurial curriculum as faculty and university subjects, and entrepreneurial concentration in major. this study applied a multivariate analysis using structural equation modeling (sem) method. the findings suggest that entrepreneurship education does not have a positive direct effect on entrepreneurial intention, yet has a considerable effect on entrepreneurial self-efficacy and attitude. however, entrepreneurial self-efficacy has no effect on entrepreneurial intention. entrepreneurship intention is influenced by entrepreneurship attitude. furthermore, this study obtained a noteworthy finding, namely the effect of entrepreneurial self-efficacy on entrepreneurship attitude. keywords: self-efficacy, entrepreneurship intention, entrepreneurship education, entrepreneurship attitude. received: 15 may 2019 ; accepted: 21 may 2019; publish; december 2018 how to cite: samiono, b., akbar, m., & hamidah, h.. (2018). the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta. journal of business and behavioural entrepreneurship, 2(2), 94-102. https:// doi.org/10.21009/jobbe.002.2.05 the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta bambang eko samiono doctoral student of human resource management, state university of jakarta email: bambangeko_im07s3@mahasiswa.unj.ac.id ma’ruf akbar pascasarjana, state university of jakarta email: makrufakbar@unj.ac.id hamidah pascasarjana, state university of jakarta email: hamidah@unj.ac.id 95 introduction entrepreneurship is a program intensified by the government of indonesia to overcome the unemployment issue, whose main focus is aimed at micro, small and medium enterprises (msmes). this sector contributes 99% of the total existing business units, able to increase employment up to 97% of the total labor. it is a highly vital program considering that the number of entrepreneurs in indonesia is below 1% of the total population. this figure indicates that indonesia is lagging behind malaysia and singapore whose number of entrepreneurs reaches 3% and 7.2% respectively. in addition, the quality and competence of entrepreneurship in indonesia regionally and globally is lagging far behind. according to the 2018 global entrepreneur index data, indonesia regionally ranks 7th out of 10 countries in southeast asia. globally, indonesia ranks 90th among 137 countries surveyed. there are 450 private islamic colleges in indonesia managed by the private islamic higher education cooperation agency (bks-ptis). higher education database (pddikti) reveals 52 universities under the supervision of higher education service institutions (ll dikti) region iii, among which are seven islamic universities, and five of which are private islamic universities registered with accreditation a and b. there are merely two private islamic universities that have special attention to entrepreneurship by opening a special concentration of entrepreneurship. the issues regarding the development of entrepreneurship in private islamic tertiary institutions have become interesting to study, due to not merely the large number of universities and students in them, but also the fact that indonesia is the largest muslim country in the world unable to develop muslimpreneur. a number of studies have been carried out as approaches to identify various aspects of the problems related to the effect of entrepreneurship education on entrepreneurial intention in indonesia and several third world countries, specifically in universities. studies of entrepreneurial intention were conducted in several universities in indonesia, for instance by adnyana and purnami (2016: p. 60) studying the effect of entrepreneurship education on entrepreneurial intensity of students of udayana university as well as wibowo and pramudana (2016, p. 87) examining entrepreneurship intention of extension students of economics and business faculty of udayana university, bali. both studies discovered similar findings. studies of entrepreneurial intention carried out in foreign universities are comparatively diverse. a study was carried out in asean countries by rengiah and sentosa (2014, p. 68), examining the entrepreneurial intention of final level students having studied entrepreneurship courses from four universities. a similar study was conducted by küttim et al (2014, p. 658) on students from 17 european countries. oyugi (2015, p. 31) examined entrepreneurial intention of students studying entrepreneurship in their third year from three universities in uganda. several aforementioned studies have similarities in applying the variables of theory of planned behavior (tpb), using a cross-sectional study and the variables of entrepreneurship education to measure entrepreneurial intention. the findings disclosed that entrepreneurial intention was influenced by entrepreneurship education, entrepreneurial attitudes and self-efficacy. this research was conducted to study entrepreneurial intentions on the basis of the theory used was theory of planned behavior (tpb) with the assumption that tpb clearly distinguishes attitudes related to personal interests regarding entrepreneurial behavior (personal level), and attitudes due to social influence (social level). this samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 96 study will focus on entrepreneurial education variable and their influence on entrepreneurial intentions. attitude and self efficacy as individual perceptions are used to mediate the influence of entrepreneurship education on entrepreneurial intentions. attitude and self-efficacy variables is an important indicator in measuring competencies and perceptions. objective this study seeks to examine entrepreneurial intention of students of private islamic universities in jakarta on the basis of ajzen's theory of planned behavior (tpb) with the assumption that tpb clearly distinguishes attitudes related to personal interests regarding entrepreneurial behavior (personal level), and attitudes due to social influence (social levelthe study shall be focused on analyzing the effect of entrepreneurship education, specifically referring to the perceptions of students in curriculum, teaching methods and the support provided by universities for entrepreneurship towards entrepreneurial intention. attitude and self-efficacy as individual perceptions are the variables selected to mediate the effect of entrepreneurship education on entrepreneurial intention. the method of the st udy this study applied the method of self-administered survey and associative causal quantitative approach, observing the direct and indirect effects of independent variables on the dependent variable. the structural equation modeling (sem) method was selected in the analysis of the study. the variables measured in this study were the endogenous variable: entrepreneurial intention/ei (z) by lee (2012, p.5) and exogenous variable: entrepreneurship education/ee (x) by rengiah and sentosa (2014,p.53), and intermediate variables: entrepreneurship attitude/ate (y1) developed by robison (1991, p.2), and entrepreneurial self-efficacy/ese (y2) by mcgee (2009, p.965). a multivariate analysis with structural equation modeling (sem) method is used with 1-5 linkert scale. the object of the study was students of private islamic universities in jakarta under the guidance of ll dikti iii with accreditation a and b as well as entrepreneurial curriculum and concentration in their major. these private islamic universities are muhammadiyah university of prof. dr. hamka (uhamka) and al-azhar university of indonesia (uai). the sample of this study was determined to be 400 active students having attended entrepreneurship lectures as the faculty and university subjects. result and discussion based on sem analysis, after obtaining exogenous and endogenous variables that have been fit with the empirical data in the measurement model and analysis of the overall structural model, a combination of all latent variables is obtained. the path diagram of the equation to be estimated is presented in the following figure: 1. samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 97 figure 1: overall structural model fit the data of the study have obtained a modification of the index to meet the goodness of fit, the results of which are presented in table 1. this model reveals the "minimum was achieved" result (chi-square = 2667.556), degrees of freedom = 1313 and probability level = 0.000. despite zero probability, this result shows that the overall model is in accordance with the sample data. the results of the goodness of fit full model of this study are presented in the following figure. table 1: gof full model samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 goodness of fit full model result note absolute fit model root mean square error of approximation (rmsea) 0.051 ≤ 0.08 good of fit goodness of fit index (gfi) 0.804 ≥ 0.90 marginal good incremental fit model comparative fit index (cfi) 0.922 ≥ 0.90 good of fit normed fit index (nfi) 0.858 ≥ 0.90 marginal good incremental fit index (ifi) 0.922 ≥ 0.90 good of fit parsimonious fit model adjusted goodness of fit index (agfi) 0.779 ≥ 0.90 not good 98 the results of the model fit test in table 1 show the measurement of the absolute fit model, in which rmsea = 0.051 and gfi = 0.804. thus, it indicates that the model has good category. the calculation of incremental compatibility model reveals that cfi = 0.922, nfi = 0.858 and ifi = 0.922, meaning that the model has good criteria. meanwhile, the measurement of the parsimonious fit model shows agfi of 0.779, implying that the model has good category. overall, it is stated that the analysis of the goodness of fit full model has been fit. mostly, test parameters have been fulfilled according to the empirical data. in this study, it is concluded that the structural analysis of the model is possible. to test the magnitude of the influence of constructs, constructs on dimensions, and dimensions of the indicator, the standardized regression weight is applied as follows. table 2: standardized regression weight based on figure 3, it is concluded that the correlation between constructs is particularly good, specifically more than 0.50 of the following three variables: namely the correlation between entrepreneurship education and entrepreneurial self-efficacy, entrepreneurial self-efficacy and entrepreneurial attitude, and entrepreneurial attitude and intention. meanwhile, the remaining variables are below 0.50. according to the estimate from the aforementioned table, sub structural and structural regression modeling is arranged as follows: sub structural equations: entrepreneurial self efficacy (y2) = 0.589 * entrepreneurship education + 0.21 entrepreneurship attitude (y1) = 0.601 * entrepreneurial self-efficacy + 0.589 * entrepreneurship education + 0.08 structural equations: entrepreneurship intention (x) = 0.670 * entrepreneurship attitude + 0.113 * entrepreneurial self-efficacy + (-0.024) * entrepreneurship education + 0.08 the evaluation of the effect of exogenous variables on endogenous variables is presented in the table 3. samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 estimate estimate ese <--ee 0.589 ese1 <--ese 0.828 ate <--ee 0.312 ese2 <--ese 0.928 ate <--ese 0.601 ese3 <--ese 0.994 ei <--ate 0.67 ese4 <--ese 0.868 ei <--ese 0.113 ese5 <--ese 0.849 ei <--ee -0.024 ei1 <--ei 0.799 ate1 <--ate 0.905 ei 4 <--ei 0.957 ate 4 <--ate 0.946 ei 3 <--ei 0.986 ate 3 <--ate 0.745 ei 2 <--ei 0.825 ate 2 <--ate 0.925 ee 1 <--ee 0.89 ese1 <--ese 0.828 ee 2 <--ee 0.933 ese2 <--ese 0.928 ee 3 <--ee 0.954 ese3 <--ese 0.994 ee 4 <--ee 0.76 ese4 <--ese 0.868 99 table 3: squared multiple correlations it is evident that entrepreneurial self-efficacy is explained by entrepreneurship education by 0.375 or 37.5%, entrepreneurship attitude is explained by entrepreneurial self-efficacy and entrepreneurship education by 0.68 or 68% and entrepreneurship intention is explained by entrepreneurship attitude, entrepreneurial self-efficacy, and entrepreneurship education by 0.558 or 55.8%. in terms of the analysis, it is concluded that entrepreneurship education has no effect on entrepreneurial intention (-0,024 attitude subscales). this result evidently contradicts several previous studies including those conducted by lee wei, (2012, p. 15); hamidi (2008, p. 304); oyugi (2011, p. 31); muofhe (2011, p. 1); karali (2013, p. 48); küttim (2014, p. 658) and malebana (2017, p. 1). however, this study has the similar findings to the study by bae (2014, p. 217) and patricia (2016, p. 72),that entrepreneurship education has no effect on entrepreneurial intention. further analyzing this phenomenon reveals that the highest positive response of entrepreneurship education is entrepreneurial support activities (ee3) of 0.954, primarily in the indicator of the entrepreneurship competition held by the campus (x.3.2) of 0.846. meanwhile, the lack of focus is discovered precisely in the support provided by the university (ee4) (0.76), particularly the entrepreneurial facilities available on campus (x.4.1) (0.876) as well as the support provided by outside partners for entrepreneurship development on campus (x.4.3). it implies that students of private islamic universities in jakarta recognize entrepreneurial support activities (ee2) in entrepreneurship education as highly crucial, in particular various activities in the form of competitions, allowing them to test a business concept into a real business as the results of their education, for instance, student creativity programs or other entrepreneurial competitions. on the other hand, the students notice the lack of support of the universities for entrepreneurial activities (ee4), particularly in the form of entrepreneurial support facilities such as entrepreneurship labs and business incubators as well as in establishing partnerships with outside parties. however, it appears that entrepreneurship education has so far not been able to directly influence entrepreneurial intention of the students. ` the findings of this study indicate the reality of the issue in developing entrepreneurial education, including the inability of the culture of education in indonesia to support the development of entrepreneurial spirit of their students, as highlighted by ferbiyanto (2013, p. 43). similar expression is conveyed by wibowo and pramudana (2011, p. 67), that entrepreneurship education in indonesia is inadequate. furthermore, the success of education process and its output is the benchmark for the success of entrepreneurship education in indonesia. entrepreneurship education is able to take place effectively should it is supported by a number of aspects, whether internal or external aspects in the university. the internal aspects are further emphasized on the need for designing an effective learning curriculum able to be delivered through an appropriate teaching method. complete facilities, both physical and non-physical, to support the course of the education process is also a demand to be fulfilled by universities (suci et al, 2015, p. 1). samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 estimate ese 0.347 ate 0.68 ie 0.558 100 this study discovered an interesting finding where entrepreneurial self-efficacy has a considerable effect on entrepreneurship attitude (0.601). evidently, self-efficacy has no effect on entrepreneurship intention (0.113). a significant effect of entrepreneurial self-efficacy on entrepreneurship attitude is identified when the data analysis is conducted on the amos program, hence the need for further study and discussion. the applied theory of planned behavior (tpb) reveals no correlation, thus the hypothesis and assumption is not discussed beforehand. this phenomenon is identified in several studies by saptono (2018, p.50), matinez (2011, p.14), izquirdo (2011, p.75), that attitudes mediate the correlation between entrepreneurial self-efficacy and intention. the analysis of this issue ascertains that the self-efficacy of students is rather high for the ability to manage a business (ese3) (0.994), primarily in opening a new business (y2.3.1) (0.855). they tend to be risk-taking (0.828). the ability to overcome risk (ese1) is mainly to rise from failure (y2.1.3) (0.769). it implies that entrtepreneurial self-efficacy of students of private islamic tertiary education in jakarta is sufficient to manage new businesses as a result of entrepreneurship education on campus. however, they are constrained in terms of self-efficacy involving failure to deal with business risks. certainly, they have not been able to deal with risk, specifically to be able to rise from failure in business. it is a reason why the effect of self-efficacy is not obtained on their entrepreneurial intention. in terms of entrepreneurship attitude, the respondents have high positive attitude of innovation in business (ate2) (0.946), particularly the attitude to support innovation in a business (y1.2.3) (0.806). the study found the lack in perceived personal control of business results (sk3) (0.745), mainly related to optimism to control a business venture (y1.3.1) (0.718). it implies that students of private islamic tertiary institutions in jakarta have an attitude of supporting innovation in a business, yet they appear to have personal control, mainly on the results of a business. apparently, learning about the uncertainties of the results of a business contributes negatively to their attitude concerning entrepreneurship. therefore, it is obvious that entrepreneurial self-efficacy of the students of private islamic universities in jakarta, particularly in managing business, has a considerable effect on their entrepreneurship attitude in being positive and optimistic in perceiving business as innovation. nevertheless, their low ability to overcome business failure due to a variety of risks renders them more pessimistic concerning the results of their effort. this effect is rather substantial on entrepreneurship attitude rather than on entrepreneurial intention. it is concluded that a positive entrepreneurial attitude is the key for students of islamic universities in jakarta to be able to increase their entrepreneurial intentions. the entrepreneurial intentions shall not necessarily increase. the essence is for the efficacy to increase. however, entrepreneurial attitude is necessary as an intermediary. the role of entrepreneurship education is highly important to improve and develop supportive entrepreneurship attitude since positive entrepreneurship attitude shall be a mediation affecting entrepreneurship intention of students of private islamic universities in jakarta. it is possible to develop positive entrepreneurship attitude by adopting them in the curriculum and teaching methods and practicing them in entrepreneurial support activities, one of which is by including motivational materials regarding the entrepreneurial mindset where islam strongly encourages entrepreneurship exemplified by prophet muhammad s.a.w. in his daily life. samiono, b., akbar, m., & hamidah, h.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 101 conclusion it is concluded that entrepreneurial intention of the students of private islamic tertiary institutions in jakarta is strongly influenced by entrepreneurial attitude they have instead of entrepreneurship education or entrepreneurial self-efficacy. entrepreneurship education and entrepreneurial self-efficiency are important variables in the formation of entrepreneurship attitude. eventually, it is essential for private islamic university to have a special curriculum or teaching method able to improve the entrepreneurship attitude and intention. they need to focus on several improvements aspects which are weaknesses in building entrepreneurial intentions. such as lack of business model material, theoretical exposures and teaching method that are less desirable, and lack of supporting facilities. universities must be able to change the curriculum not only emphasizing the improvement of hard skills purpose but also soft skills to build motivation, partnership, creativity and innovation aspects. in the end, not only student’s self-efficiency will increase but also their attitude. bibliography adnyana, i. g. l. a., & purnami, n. m. 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(2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2019 p (94-102)  the effect of entrepreneurship education on entrepreneurship intention of students of private islamic universities in jakarta.  https://doi.org/10.21009/jobbe.002.2.05 https://doi.org/10.1111/j.1540-6520.2009.00304.x https://doi.org/10.1111/j.1540-6520.2009.00304.x https://doi.org/10.4102/sajhrm.v9i1.345 https://doi.org/10.4102/sajhrm.v9i1.345 https://doi.org/10.7341/20151122 https://doi.org/10.1177/104225879101500405 https://doi.org/10.1177/104225879101500405 https://doi.org/10.1108/03090590910939049 https://doi.org/10.1108/03090590910939049 51 abstract losing members due to death in battle or desertion from their units is detrimental to the military unit. both will interfere with the implementation of the overall task. killed in battle were recorded as a hero and desertion were classified as an unlawful act. the desires of desertion of soldiers must be sought to be prevented, and become part of the task of the unit commander. likewise, the work environment must be improved so that soldiers become comfortable in working or esprit de corps as a spirit of unity must be maintained and enhanced as the pride of the corps that is able to bind members in a single unit. keywords: leadership, quality of work life, esprit de corps, desertion intentions. received: 07 may 2019 ; accepted: 08 may 2019; publish; december 2018 how to cite: affandi, l., akbar, m., & purwana, d.. (2018). esprit de corps and desertion intention in indonesian navy. journal of business and behavioural entrepreneurship, 2(2), 51-61. https://doi.org/10.21009/jobbe.002.2.01 esprit de corps and desertion intention in indonesian navy lutfi adin affandi department of human resource management, ph.d. candidate of pascasarjana, state university of jakarta email: lutfiadin_im15s3@mahasiswa.unj.ac.id ma’ruf akbar pascasarjana, state university of jakarta email: makrufakbar@unj.ac.id dedi purwana faculty of economics , state university of jakarta email: dpurwana@unj.ac.id 52 introduction soldiers, as armed forces have the main task of maintaining and upholding the sovereignty of the state, in carrying out their duties to hold the slogan does not recognize surrender. members of the army or soldiers must be professionals as capital in winning every task they carry out. professionals need an intense physical presence as part of the process of improving skills in their duties. in military life, the absence of permission at a place and the time determined for him where he is supposed to be in service is a crime. crimes which constitute a criminal offense contain legal consequences with the threat of imprisonment or imprisonment. the threat of punishment is more severe if carried out during the war. deserters, defined as cowards in wartime, are often judged by their units with executions (newstrom, 2007). handling desertion is very important because soldiers who separate themselves from the unit are not only detrimental to the unit but can also destroy the unit if the deserters run away and join the opposing unit (coward). criminal acts of desertion within the indonesian national armed forces often occur too, with the reason that they vary from unit internal problems to the influence of outside development of the environment. likewise, in the navy environment, desertion intentions always appear, this can be seen from the number of desertion cases from 2012 to 2016 which tend to increase. on the one hand, recruitment was carried out very tightly and transparently with very high interest, no more than 5% (five percent) of the number of applicants who passed were accepted as soldiers, but after being educated as soldiers and active service in units, their desertion intention was quite high. countries in a peaceful situation with deserters have an invisible impact, but in a situation where domestic security is not conducive (armed conflict occurs), desertion can endanger national security. colombia's internal security is an illustration, a long-standing conflict as one of the reasons for the existence of defectors (rebels) from the escape of their armed forces. the conflict from 1958 to 2012 claimed victims of no less than 220,000 died (80% of civilians), 5 million were displaced. thus placing colombia as the highest country in the country due to the internal conflict under syria (oppenheim, 2015). this research was conducted in the indonesian navy with a sample of 302 soldiers, focusing on the emergence of desertion intentions. this is also the contribution of this research as only few research conducted in military regarding esprit de corps in indonesia. how strong the influence of leadership, quality of work life and esprit de corps on desertion intentions in peacetime is the purpose of this study, so that the problem of desertion intention to find answers and high public interest in becoming a soldier does suit interests and talents. the strong leadership character of a leader and a supportive work environment can encourage a soldier to be loyal to the union (esprit de corps). a strong sense of togetherness can reduce the potential for desertion. theoretical framework and hypotheses 1. desertion intention. the existence of social influence as a reference and an intense learning process that influences the speed of intention becomes an action (juarrero, 2002). a person's intention is influenced by a certain motive, which can come from within themselves and the surrounding environment, which ultimately affects a person's performance (dwivedula, credillet, & ruiz, 2007). the intention is something that is related to the tendency of a person to take an action or behave in a certain way (schiffman, 2008). affandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 53 desertion is defined as the loss or departure of a person or soldier or military official from his military duties without permission (ohl, albrecht, & koehler, 2015). the main characteristic of this crime of desertion is the absence without permission carried out by the military at a place and time determined for him where he should be in order to carry out official obligations. so the indicator is the desire mentally and intentionally to separate themselves. 2. leadership at its most basic, leadership can be understood as a social process for generating the direction, alignment, and commitment needed for individuals to work together productively toward the collective outcome (mccauley, 2010), inspiring people to do their best to achieve the desired result (mcshane & glinow, 2010). it involves developing and communicating a vision for the future, motivating people and securing their engagement (armstrong, 2012). the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives (yukl, 2013), of organizationally relevant goals (ivancevich, 2014). military leadership, in general, is the same as civil leadership, which includes: influencing, motivation and making decisions for organizational mission success (horn & wr, 2008). the commander must be a visionary officer who is able to deliver his unit to success and answer the challenges of the future. indicators of all of these include ideal influences, individual attention, decision making, and inspirational motivation. 3. quality of work life quality of work life is job participation and satisfaction, opportunities to develop and opportunities for career advancement in organizations and welfare guarantees (korunka & hoonakker, 2014), gender equality, balance, non-discrimination and overall performance (reilly, 2012). individual evaluative reactions to satisfaction with work and total work environment (sinha, 2012). it involves giving opportunities to design jobs and workplaces, and what they need to make products to deliver services most effective (wayne, 2013). the work environment is basically closely related to the work satisfaction of organizational members (sharma & verma, 2013). an extent to which an employee is satisfied with personal and working needs through workplace participation while achieving the goals of the organization (swamy, swamy, & rashmy, 2015). the key to qwl is an active role in increasing productivity, a commitment of workers to achieving high performance (wibowo, 2016). the condition of a good working environment, attractive and valued work that is able to produce maximum performance, is measured by using indicators: opportunities to develop, communication and participation, a conducive work environment, and the member welfare. 4. esprit de corps the term esprit de corps was first introduced by the general and emperor of france napoleon bonaparte, where at the time of war, fellow soldiers must help each other, protect, protect, and defend the honor of fellow members of the army. a spirit that inspires enthusiasm, dedication, and a strong respect for group honor/group pride (dunkelman, 2004). achieving common goals and each other are interrelated in organizations (william, swee-lim, & cesar, 2005). the ranking above makes you feel difaffandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 54 ferent, better than others, and organizations are more important than individuals (houston, 2006). esprit de corps will make leaders aware that there is a relationship between leadership and work morale (afiff, 2013), as a group phenomenon (moradzadeh et al, 2015). major general john a. lejeune of the legendary united states marine corps (usmc) described esprit as "the spirit, the human soul cannot be felt by the five senses, however, every leader knows it is the most powerful force (raab, 2016). everything is measured by indicators: pride, the team works effectively and values the organization more. 5. leadership and desertion intention maneuvered leadership in the treatment of leaders towards subordinates directly affects the level of intention to desert subordinates. previous research stated that unit morale was high so soldier retention was also high, unit morale was built by strong leadership (randall, 2006), strong control of the commander and distance of original residence affected the desertion rate, the farther the area of origin of the soldier also caused a tendency to desertion intention(mclauchlin, 2014). the main motives for desertion intentions include disciplinary aspects, characteristics/characteristics of members, dissatisfaction with the prevailing treatment in the military, dissatisfaction with the military environment (unity), lack of loyalty, problems of poverty, and dependence on beverages and drugs (woodbury, 2017). 6. quality of work life and desertion intention the quality of work life has a direct negative effect on turnover intentions occurring in indonesian army pilots (rahadyan & nurtjahjanti, 2013), 2013). the negative influence of work-life quality (prosperity), leadership and the spirit of patriotism on desertion intentions, this happened in the canadian war between america and great britain (england) in 1812 (whitehead, 2016). unfair treatment within the military also triggers considerable desertion in the body of military organizations, in other ways the quality of work life and leadership is crucial (lyall, 2016). 7. esprit de corps and desertion intention the mental attitude of the soldier maintains himself in close unity with his organization and is willing to sacrifice with all the resources available to achieve organizational/unitary goals to make desertion intentions recede from the soldier's mind. in the period of 2013 2015, saa (syrian arab army) had experienced chaos by the high rate of military desertion caused by the low esprit de corps of soldiers due to stress and mental stress (ripley, 2017). emotional attachment as an indicator of esprit de corps has a strong influence on the level of desertion intention of soldiers (charbonneau & wood, 2018). in the civil war in syria, there were many desertions due to psychological social factors, more because of morality. also because of fears, concerns about self-safety and finally some due to defecting opposition forces (albrecht & koehler, 2018). 8. leadership and quality of work life one of the tasks of the leader is to create a conducive work environment so that the relationship of leaders with subordinates is effective. the main concern of the leadaffandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 55 ers in each unit is to provide mental recovery with the help of medical treatment support in order to prevent post-war desertion (mcbreen, 2012). leadership tends to trigger stronger on quality of work life (mafini, 2015). the leadership style will produce a work atmosphere, the final results affect the level of turnover of members (elci, m et al, 2012). 9. leadership and esprit de corps leadership that unites with members and their units will provide strong cohesion for all members to create a strong esprit de corps as well. leadership influences performance both directly and through increasing esprit de corps (bass, bm et al, 2003). spiritual leadership directly influences spiritual well-being or esprit de corps (fry, w et al, 2011). the high quality of leadership will encourage an increase in soldier's mentality and loyalty. high spirits and hearts as strong as steel then make warriors win the war (fennell, 2011). 10. quality of work life and esprit de corps the low esprit de corps is due to the low level of welfare, so this encourages individuals to be disloyal to the organization (ryan, 2000) (ryan, 2000). the higher the quality of work life the higher the commitment of iranian customs officials (sajjad & abbasi, 2014), correlation of ethical work environment has a positive direct effect on member commitment to taiwanese military unit organizations (hung & tsai, 2016). the importance of the issue of desertion crime encourages academics to scientifically explain what facts can influence desertion intentions. from the description of the results of previous studies and theoretical studies and current conditions that the leadership variables, quality of work life and esprit de corps as independent variables that may influence the intention of deserting indonesian navy members, the following hypotheses can be arranged: h1. leadership has a direct negative effect on desertion intention h2. quality of work life has a direct negative effect on desertion intention h3. esprit de corps has a negative direct effect on desertion intention h4. leadership has a positive direct effect on the quality of work life h5. leadership has a direct positive effect on the esprit de corps h6. quality of work life has a positive direct effect on the esprit de corps the research hypothesis above is illustrated in the theoretical model as shown below: affandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 56 figure 1. research model source: author’s tabulation (2019) method the estimation technique used in this study is structural equation modeling (sem). in this study, testing of factor loads or better known as construct validity in the measurement model was carried out using the lisrel 8.8 software. validity test is done by calculating the t-value with a significance level of 5% (the benchmark p-value is smaller than 5%, or the t-value is greater than 1.96). the questionnaire items in this study adopted from the synthesis of theory and previous research. list of the number of the questionnaire is listed in the table below. table 1. questionnaire items a pre-test was carried out to ensure that the factors used could be indicators of each variable using 30 respondents. the data used in this study are primary data, with a sample size of 302 enlisted obtained through calculation of slovin formula. the profile of respondents is presented in the table below. affandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 construct item adopted from leadership ideal influences 7 (horn & wr, 2008), (yukl, 2013) individual attention 6 decision making 6 inspirational motivation 6 quality of work life opportunities to develop 5 (sharma & verma, 2013) (woodbury, 2017) communication and participation 4 conducive work environment 7 member welfare 4 esprit de corps pride 5 (sajjad & abbasi, 2014) (houston, 2006) the team works effectively 5 values the organization more 5 desertion intention desire mentally 6 (fennell, 2011) intentionally to separate themselves 9 total 75 57 table 2. characteristics of respondents source: processed data (2018) after the questionnaire was declared valid and reliable through validity and reliability testing in the pre-test process, then the next sem estimation technique was used, by testing the suitability of the model, including validity and reliability of the construct. after conducting a model match test, then analyze the causal relationship (bollen & noble, 2011). result and discussion the first step in processing data is to pre-test the questionnaire to make sure the data is valid and reliable. the pre-test was carried out on 30 respondents who were randomly selected to test item questions which were indicators of all constructs, the total number of items was 77 questions. the results of the validity and reliability test on 77 questions there are two questions that are invalid and must be dropped, namely one item on the variable quality of work life and one item on the esprit de corps variable. furthermore, 75 valid and reliable items were used as questionnaires for the actual sample, which was 302 enlisted. data collected as primary data will be processed using the lisrel 8.8 application, the results for the model compatibility test or confirmatory factor analysis are goodness of fit (gfi) = 0.37, adjusted goodness of fit (agfi) = 0.32, root mean square residual (rmsr) = 0.0034, normed fit index (nfi) = 0.81, incremental fit index (ifi) = 0.83. in general, the suitability of the model is marginal, except rmsr shows good fit. analysis of the coefficient of determination to show how much the ability of exogenous latent variables explains changes in endogenous latent variables. the processed products using the lisrel 8.8 application show the coefficient of determination as follows: q = 0.65*l, errorvar.= 0.58 , r² = 0.42 (0.061) (0.074) 10.58 7.87 e = 0.21*q + 0.49*l, errorvar.= 0.58 , r² = 0.42 (0.068) (0.077) (0.10) 3.15 6.33 5.59 affandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 1 age amount percentage < 21 years 46 15 21 – 30 years 33 11 31 – 40 years 124 41 41 – 50 years 90 30 > 50 years 9 3 total 302 100 2 marriage status marriage 229 76 not married 67 22 widower 6 2 total 302 100 3 education junior high school 12 4 high school 287 95 bachelor (s1) 3 1 total 302 100 4 service period < 4 years 45 15 5 – 8 years 11 4 9 – 16 years 142 47 17 – 24 years 89 29 > 24 years 15 5 total 302 100 58 d = 0.085*q 0.29*e 0.22*l, errorvar.= 0.73 , r² = 0.27 (0.073) (0.075) (0.080) (0.10) -1.18 -3.92 -2.73 7.05 the effect of leadership on quality of work life shows a coefficient of 0.65 and a coefficient of determination (r2) of 0.42. the effect of leadership and quality of work life on esprit de corps shows a coefficient (0.21; 0.49) with a coefficient of determination (r2) of 0.42. while the influence of leadership, quality of work life, and esprit de corps on internship decline coefficient value (-0.085; 0.29; -0.22) with its determination coefficient (r2) of 0.27. to test the hypothesis, the significance of the relationship between variables looks like the processed lisrel 8.8 below. figure 2. output of tvalue source: lisrel 8.8 output data in this study used a significance test on six hypotheses, where the analysis of hypothesis testing affandi, l., akbar, m., & purwana, d.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 59 uses a significance level of 5% or equivalent t-value of + 1.96. a summary of the results of data processing results is presented in the table below. table 3. hypothesis testing result source: author’s tabulation (2019) h1 states that leadership has a direct negative and significant effect on desertion intentions, in a 95% confidence level (t = -2.73> -1.96), h2 states that quality of work life has a negative direct effect but not significant to desertion intention, in a 95% confidence level (t = -1.18 <-1.96), h3 states that esprit de corps has a negative and significant direct effect on desertion intention, in a 95% confidence level (t = 3.92> -1.96), h4 states that leadership has a positive and significant direct effect on quality of work life, in a 95% confidence level (t = 10.58> 1.96), h5 states that leadership has a positive and significant direct effect on esprit de corps, in a 95% confidence level (t = 6.33> 1.96), h6 states that quality of work life has a positive direct effect and significant to esprit de corps, in a 95% confidence level (t = 3.15> 1.96). the value of the organization is the strongest indicator (slf = 0.79) in explaining the construct of esprit de corps. esprit de corps as a unit spirit is built from the souls of members who feel that units are part of their lives (e13 = 11.77), so the unit of self-confidence is higher (e14 = 11.20), and in the unit members find solutions to each member problem (e15 = 11.28), feel different, better than others, and organizations are more important than individuals (houston, 2006). appreciating and accepting differences in the desires of subordinates (l9 = 16.68), and often communicating with subordinates directly (l13 = 16.51) is the strongest indicator of leadership. the importance of individual attention that leaders are asked to engage socially across cultures, build self-confidence, make alliances, read intentions, influence and understand and motivate members (laurence, 2011). the strongest quality of work life indicator is the opportunity to develop and it turns out that the welfare demands have the smallest contribution in explaining the construct. conclusion the conclusion is that esprit de corps plays a very strategic role to directly reduce soldiers desertion intentions. leadership has a positive and significant impact on esprit de corps, where esprit de corps is what will ultimately reduce the potential for criminal acts of desertion in the future. the importance of this aspect of leadership is also seen in the direct impact of leadership and desertion intentions, where the higher leadership qualities of a leader in a unit will significantly impact the decline in the potential for desertion (desertion intention). some efforts to realize effective leadership with individual attention from superiors, create inspirational motivation, effective decision making and ideal or role models from leaders. individual attention in the sense of respecting and accepting differences in the desires of subordinates and direct communication to subordinates. thus leadership as a factor that is able to create strong esprit de corps is needed in order to suppress the desire of soldiers to desert. variables hypothesis statement t-value significance h1 leadership influences desertion intention. -2.73 significant h2 quality of work life influences desertion intention -1.18 not significant h3 esprit de corps influences desertion intention -3.92 significant h4 leadership influences quality of work life 10.58 significant h5 leadership influences esprit de corps 6.33 significant h6 quality of work life influences esprit de corps 3.15 significant affandi, l., akbar, m., & purwana, d.. 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(2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (51-61)  esprit de corps and desertion intention in indonesian navy.  https://doi.org/10.21009/jobbe.002.2.01 40 abstract this study aims to determine the effect of working capital management proxied by 5 independent variables, namely working capital turnover (wct), cash ratio (csh r), cash conversion cycle (ccc), account receivable turnover (arto), and inventory turnover (ito) on the company's financial performance in the 2013-2016 period. the research method used is panel data regression using random effects model and fixed effects model. the results showed that only csh r and ccc had a significant positive effect on financial performance with roa. also, the results show that (ito) have a significant positive effect impact on financial performance regarding tobin'sq. moreover, the model without control variables found that (arto) and (ito) also had a significant positive effect on financial performance manufacturing companies in the 2013-2016 period. keywords: working capital management, financial performance received: 03 september 2018 ; accepted: 20 september 2018; publish; october 2018 how to cite: maysuri, s., dalimunthe, s.. (2018).the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013 -2016.journal of business and behavioural entrepreneurship, 1(2), 40-50. https://doi.org/10.21009/jobbe.001.2.05 the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016 sarah maysuri faculty of economics, jakarta state university email:sarahmaysuri@gmail.com sholatia dalimunthe faculty of economics, jakarta state university email: tiadalimunthe@unj.ac.id mailto:sarahmaysuri@gmail.com mailto:hamidahsam@gmail.com 41 introduction various business activities carried out by companies require funds, both to finance daily operational activities and to fund the company's long-term investment needs. funds needed to finance the day-today operational activities of the company are called working capital. the requirements for daily operational activities include purchasing raw materials, paying wages for employee salaries, and the costs of other variables where the funds are expected to return to the company's cash as a result of the company's sales activities where the funds will be played back for activities subsequent operations and so on. managing working capital in a company is called working capital management. working capital management is an activity that covers the overall management functions of current assets and current liabilities of the company. according to esra and apriweni in rahma (2011) found 3 important elements in working capital management, namely cash, accounts receivable and inventory where the three elements of working capital can describe the level of capital efficiency. therefore, this study has 5 independent variables that reflect the rotation of the three important elements, namely working capital turnover (wct), cash ratio (csh r), cash conversion cycle (ccc), account receivable turnover (arto), and inventory turnover (ito). based on previous research, there were diferent results of research. according to research conducted by desnerita (2015) and yanuarta (2013 ) the results show that there is a significant positive influence between working capital turnover on the company's financial performance. meanwhile, according to research conducted by shahzad (2015) states that working capital turnover does not have a significant relationship to the company's financial performance. furthermore, the financial ratios of cash ratio and cash conversion cycle have consistent research results, namely shahzad (2015), and tsagem (2015) show the results that cash ratio has a significant positive effect on corporate roa. the results of the study according to julnine (2013), padachi (2006), and tsagem (2015) noted that the cash conversion cycle also has a significant positive effect on the company's roa. there are conflicting results on the account receivable turnover variable on the company's financial performance. the research conducted by yanuarta (2013) and widyasari (2014) which states that account receivable turnover does not have a significant effect on the company's roa. meanwhile, according to padachi (2006), there is a significant positive effect between account receivable turnover and corporate roa. moreover, inventory turnover variables have many different finding in previous studies. regarding the effect of inventory turnover on the compay's financial performance, shahzad (2015) found that inventory turnover does not affect the company's roa, while the results of research conducted by widyasari (2014) show that there is a significant negative between inventory turnover and company roa. in manufacturing companies, operational activities are the most critical part that greatly affects the survival of the company, because if proven operational activities do not run effectively and efficiently, this will directly affect the amount of profit the company receives. as previously explained that the dayto-day operational activities of the company are financed by funds called working capital, then working capital management is an activity that is very important in determining the survival of a company. therefore, this study was conducted to find out how much influence the working capital management has on the company's financial performance in the manufacturing industry. purposes the purpose of this study is to examine the effect of working capital turnover, cash ratio, cash conversion cycle, account receivable turnover, and inventory turnover on the company's financial performance empirically in the manufacturing sector listed on the indonesia stock exchange (bei) for the 2013-2016 period. theoretical study financial performance financial performance is the determination of certain measures that can measure the success of an organization or company in generating profits. financial reports provide a variety of financial information that can reflect the company's financial performance in various aspects, namely aspects of liquidity, activity, solvency, profitability, and market value. which can be analyzed through various financial ratios in it (hanafi and halim, 2009). this research was conducted to reveal how much influence the management of working capital in a company on its financial performance is assessed from the aspect of profitability and market value of the company. this study measures the company's financial performance through profitability ratios in maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 42 particular by using the roa (return on total asset) ratio to see the company's ability to generate profits at the level of a particular asset with the following formula: roa = in addition, this study also uses the ratio of market value to see the development of corporate value based on how the market assesses the company, namely by using a ratio called tobin's q. tobin's q is a measure of company performance using market value. that way, the formula for measuring tobin's q q value in this study is: working capital turnover working capital turnover is a ratio that measures how quickly current assets are invested in working capital for a company's operating activities, re-enter the company through the sale of its products. referring to previous research conducted by desnerita (2015) and ambarwati (2015) the formula of working capital turnover is: wct= cash ratio cash ratio is a comparison between cash and cash equivalents with current debt, so that in other words this ratio measures how much cash and cash equivalents to cover 1 rupiah of current debt owned by the company. based on previous research conducted by tsagem (2015) and shah (2015) it can be seen that the formula of the cash ratio is: cash ratio= cash conversion cycle the cash conversion cycle is a financial ratio to measure the time needed by a company to convert cash to generate cash back into the company. that way, the shorter the time it takes for the company to convert its cash back into the company, the better and more profitable it will be for the company. in measuring ccc there are 3 components that need to be calculated first, namely dio (average time needed to sell inventory), dso (average time needed to collect receivables), and dpo (average time the company repays the debt). based on previous research conducted by julnine (2013) and padachi (2006) it can be seen that the formula of the cash conversion cycle is: cash conversion cycle = dso + dio – dpo dso = 365 dio = 365 dpo = 365 account receivable turnover account receivable turnover is a ratio that measures how often receivables of a spinning company in a period are used as estimates of the average collection time of accounts receivable from debtors. based on previous research conducted by yanuarta (2013) and widyasari (2014), the account receivable turnover ratio formula used in this study is: acc.receivable turnover= maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 43 inventory turnover inventory turnover is a ratio that measures the level of inventory activity ranging from being produced to sold to consumers in a certain period. based on previous research conducted by shahzad (2015) it can be seen that the formula of inventory turnover is: inventory turnover= firm size in this study, only one control variable was used, namely firm's size or company size. company size is the scale or size of assets owned by a company. the proxy used for the company size control variables in this study in accordance with previous researches by ambarwati (2015) and widaryanti (2009) are: firm size= ln (total aktiva) hypothesis based on the literature review, the following hypothesis is formulated: h1 = working capital turnover affects the company's financial performance. h2 = the cash ratio affects the company's financial performance. h3 = the cash conversion cycle affects the company's financial performance. h4 = accounts receivable turnover affects the company's financial performance. h5 = inventory turnover affects the company's financial performance. research methods population and sampling in this study the population used is all manufacturing companies listed on the indonesia stock exchange in the 2013-2016 period. based on the sample selection process with the purposive sampling method, it was found a total sample of 71 manufacturing companies that met these criteria. the number of observation data in this study was 284 data because 71 manufacturing companies were studied for 4 years, from 2013 to 2016. result and findings descriptive statistics descriptive statistics in this study describe a data that is seen from the average (mean), minimum (minimum) and maximum (maximum) values and standard deviation (standard deviation) for each manufacturing company listed on the idx in the 2013-2016 period as many as 71 companies so that the total observation data in this study were 284 data. table 1. descriptive statistics manufacturing companies on the indonesia stock exchange sources: data analyzed by the researcher the average value of roa ratio is 0.035926 while the standard deviation roa ratio is 0.077600 which means that the average value is smaller than the standard deviation value and this indicates that the roa ratio experiences fluctuating movements with high variability during the period research. the average value of roa in the sample of manufacturing companies during this study period was 0.0359, maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 roa tobin_s_q wct (rp) csh_r ccc(days) arto (times) ito (times) fsize mean 0.0359 1.382 24.603 0.944 -117.41 8.079097 5.217876 9,226,485 median 0.0289 1.014 3.6656 0.160 -34.77 5.926129 4.123350 1,348,167 maximum 0.2660 7.111 1894.0 89.60 497.0 60.00000 70.00000 261,855,0 minimum -0.5484 0.300 -224.00 0.001180 -3340.1 0.280249 1.023102 98,295,72 std. dev. 0.0776 1.001 157.85 5.49 383.57 7.418750 6.930803 30,709,72 44 which means that in general the proportion of net income that can be obtained by manufacturing companies during the study period was 3.5% of the total assets owned by each manufacturing company. the average tobin’s q ratio is 1.382081 which is greater than the standard deviation value of 1.00108. this indicates that the level of variability in tobin's q ratio tends to be low in the sample of manufacturing companies. the average value of tobin's q ratio in the sample of manufacturing companies during this study period was 1.382081 which means that in general the market assesses the performance of manufacturing companies sampled in this study is 1.38 times greater than the value of the company or book value assets owned by the company itself. working capital turnover (wct) has an average value of 24,603 and a standard deviation value of 157,858 which means that the value of wct experiences fluctuating movement and high variability. the average value of wct in the sample of manufacturing companies during this research period was rp. 24,603 which indicated that the company was able to obtain sales of rp. 24,603 from every 1 rupiah issued by the company as working capital. cash ratio (csh_r) has an average value of 0.944 and a standard deviation value of 5.49 which indicates that the cash ratio values experience fluctuating movements and have high variability during the study period. the average value of cash ratio in the sample of manufacturing companies during this study period was 0.944, which means that in general, manufacturing companies in this study were able to cover their current liabilities with cash and cash equivalents of 94.4% of the total current debt during the study period. cash conversion cycle (ccc) which has an average value of -117.41 and a standard deviation value of 383.57 which indicates that the value of the cash conversion cycle (ccc) experiences fluctuating movements and has a high variability during the study period. the average cash conversion cycle value in the sample of manufacturing companies during this study period was -117.41, which means that in general the manufacturing companies in this study had a debt repayment age that was relatively longer than the payout age which was shown by the large ccc value. negative. the negative ccc value indicates that the majority of manufacturing companies sampled in this study tend to use an aggressive working capital policy, which uses short-term debt as a source of corporate funding. account receivable turnover (arto) has an average value of 8.079 and a standard deviation of 7.418 this indicates that the level of variability in the account receivable turnover (arto) value tends to be low in the sample of manufacturing companies. the average value of account receivable turnover in the sample of manufacturing companies during this research period is 8.079 which means that in general the receivables of manufacturing companies in this study rotate as much as 8.079 times from accounts receivable due to credit sales and then cash into receivables that have been collected during one company accounting period. inventory turnover (ito) has an average value of 5.217 and a standard deviation of 6.930 which indicates that the value of inventory turnover (ito) experiences fluctuating movements and has a high variability during the study period. the average value of inventory turnover in the sample of manufacturing companies during this research period is 5.217, which means that in general, the company's inventory rotates out and in the company, from being produced to sold to consumers as much as 5.217 times during the accounting period. this industry average can be a benchmark for the most effective and efficient inventory turnover value for manufacturing companies to obtain optimal profit. the control variables in this study are firm size (fsize) which has an average value of rp9226 billion and a standard deviation of rp30709 billion which indicates that the firm size (fsize) values experience fluctuating movements and high variability. the firm size average value in the sample of manufacturing companies during this research period was rp9226 billion, which means that the majority of manufacturing companies sampled in this study had total assets of rp9226 billion. multicollinearity test in table 2 there is no correlation between variables or free from multicollinearity problems in the sample of this study indicated by the absence of correlation coefficients between independent variables that are more than 0.90. maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 45 table2 research variable multicollinearity test results source: data processed by researcher using eviews 9 estimation method this study uses 4 regression equation models, that are: 1. effect of working capital management on financial performance in terms of profitability with roa proxy without firm size control variables 2. effect of working capital management on financial performance in terms of market value with tobin's q proxy without firm size control variables 3. effect of working capital management on financial performance in terms of profitability with roa proxy using firm size control variables 4. effect of working capital management on financial performance in terms of market value with tobin's q proxy using firm size control variables table 3. chow test result source: data processed by researcher using eviews 9 based on the results of the chow test on models 1 to 4 it can be seen that the probability value is 0.0000 or 0.00 <0.05, which means that h0 is rejected and h1 is accepted. so it can be interpreted that the common effect model is not a model that is suitable for all 4 regression models in this study so that a thirst test is needed to determine the best model between the fixed effect model or random effect model. table 4. hausman test result source: data processed by researcher using eviews 9 based on the results of the hausman test on models 1 and 3, it can be seen that the probability value of the regression model the influence of working capital management on financial performance with roa proxy without or with firm size control variables is more than 0.05, it can be concluded that the random effect model is a model which is most suitable to be used as a panel data regression model in the two regression models. whereas for the results of thirst test on models 2 and 4, the probability value is less than 0.05, it can be concluded that the fixed effect model is the most suitable model to be used as a panel data regression model in the two regression models. maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 wct csh_r ccc arto ito fsize wct 1.0000 (0.0241) (0.0030) (0.0526) 0.0550 0.0170 csh_r (0.0241) 1.0000 0.0870 (0.0637) (0.0129) (0.0757) ccc (0.0030) 0.0870 1.0000 0.1058 0.0556 (0.0058) arto (0.0526) (0.0637) 0.1058 1.0000 0.1699 0.1047 ito 0.0550 (0.0129) 0.0556 0.1699 1.0000 (0.1287) fsize 0.0170 (0.0757) (0.0058) 0.1047 (0.1287) 1.0000 model 1 model 2 model 3 model 4 cross-section chi-square 333.830206 499.476266 316.969849 530.558294 probability 0.0000 0.0000 0.0000 0.0000 model 1 model 2 model 3 model 4 cross-section chi-square 4.218656 11.872111 3.853529 49.152331 probability 0.5184 0.0366 0.6965 0.0000 46 table5.t test result source: data processed by researcher using eviews 9 hypothesis testing results effect of working capital turnover on financial performance the wct coefficient value on roa with the fsize control variable is 0.000000945 and the probability value is 0.6922 which is greater than 0.1. in table 7 also shows the wct coefficient without the fsize control variable is 0.00000101 with a probability value of 0.6713 which is also greater than 0.1. it can be concluded that the independent variable working capital turnover or working capital turnover has no significant effect on the company's financial performance, especially roa with or without firm size control variables. this is in line with previous research conducted by shahzad (2015), shafwati (2015) and widyasari (2014). this means that the addition of working capital to manufacturing companies is a good thing, but if it is not followed by an increase in production capacity and an increase in sales, it will be a burden for the company which directly influences the net income obtained by the company. the wct coefficient on tobin's q with the fsize control variable is 0.000351 and the probability value is 0.1476 which is greater than 0.1. in table 7 also shows the wct coefficient without the fsize control variable is 0.000286 with a probability value of 0.2722 which is also greater than 0.1. it can be concluded that the independent variable working capital turnover or working capital turnover has no significant effect on the company's financial performance, especially in terms of tobin's q value with or without firm size control variables. this is in line with previous research by warouw, et al. (2016). the insignificant relationship between working capital turnover and market value shows that an increase in working capital turnover is not information that can increase investor confidence in the company. effect of cash ratio on corporate financial performance csh_r coefficient value on roa with the fsize control variable is 0.001251 with a probability value of 0.0351 smaller than 0.05. in table 7 also shows csh_r coefficient value without the fsize control variable is 0.001252 with a probability value of 0.0346 which is also smaller than 0.05. it can be concluded that the independent variable cash ratio has a positive and significant effect at a 5% significance level with or without firm size control variables on financial performance, especially roa as a proxy. this is in line with previous research conducted by shah (2015), widyasari (2014) and tsagem, et al. (2015). they argue that the greater the cash and equivalent presence of the company to cover the amount of the company's short-term liabilities, the greater the amount of roa obtained by the company. csh_r coefficient value to tobin's q with the fsize control variable is 0.001944 and the probability value is 0.7453 which is greater than 0.1. in table 7 also shows csh_r coefficient value without the fsize control variable is 0.001797 with a probability value of 0.7798 which is also greater than 0.1. it can be concluded that the independent variable cash ratio or the cash ratio has no significant effect on maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 financial performance (y) return on asset (y1) tobin's q (y2) without fsize with fsize without fsize with fsize coefficient prob. coefficient prob. coefficient prob. coefficient prob. c 0.032742 0.0052 -0.237487 0.6108 0.862074 0.0000 28.00011 0.0000 wct 1.01e-05 0.6713 9.45e-06 0.6922 0.000286 0.2722 0.000351 0.1476 csh_r 0.001252 0.0346 0.001251 0.0351 0.001797 0.7798 0.001944 0.7453 ccc 7.77e-05 0.0000 7.77e-05 0.0000 -0.000104 0.4283 -9.48e-05 0.4382 arto 0.000748 0.3600 0.000819 0.3224 0.018078 0.0433 0.010923 0.1934 ito 0.000916 0.5045 0.000944 0.4925 0.067639 0.0000 0.064823 0.0000 fsize 0.009593 0.5624 -0.963407 0.0000 adjusted rsquared observation regression model 0.763741 atau 76,37% 284 random effect 0.764124 atau 76,41% 284 random effect 0.831135 atau 83,11% 284 fixed effect 0.854378 atau 85,43% 284 fixed effect 47 the company's financial performance, especially the tobin ‟s q ratio with or without the firm size control variable. this is in line with previous research conducted by mahardhika (2016) and yosephine and tjun (2016). this is because the large market value of the company is more influenced by information that benefits investors, so the amount of the cash ratio does not affect the market value of the company (mahardhika, 2016). effect of cash conversion cycle on corporate financial performance ccc coefficient value on roa with the existence of fsize control variable is 0.00000777 with a probability value of 0.0000 smaller than 0.01. in table 7 also shows the ccc coefficient without the fsize control variable is 0.00000777 with the same probability value that is equal to 0.0000 smaller than 0.01. it can be concluded that the independent variable cash conversion cycle has a positive and significant effect on the 1% significance level with or without firm size control variables on financial performance, namely roa as a proxy. this is in line with previous research by julnine (2013), iqra (2016) and tsagem, et al. (2015). they argue that the greater the cash cycle time needed by the company to convert its cash, the greater the company's internal funds available to finance its operating activities without having to find external funds that contain a burden, so this will increase the company's net profit. the ccc coefficient value on tobin's q with the fsize control variable is 0.00000948 and the probability value is 0.4382 which is greater than 0.1. in table 7 also shows the ccc coefficient without the fsize control variable is -0.000104 with a probability value of 0.4283 which is also greater than 0.1. it can be concluded that the independent variable cash conversion cycle has a negative but not significant effect on the company's financial performance, especially in terms of tobin ’s q market value as a proxy with or without a firm size control variable. this is in line with previous research conducted by wijaya and tjun (2013). the absence of a significant relationship between ccc's value and the company's market value is because the cash conversion cycle is not valuable information for investors to invest in a company. effect of account receivable turnover on corporate financial performance the arto coefficient value on roa with the fsize control variable is 0.000819 with a probability value of 0.3224 greater than 0.1. in table 7 also shows the arto coefficient value without the fsize control variable is 0.000748 with a probability value of 0.3600 which is also greater than 0.1. it can be concluded that the account receivable turnover variable has no significant effect on the company's financial performance, especially roa as proxies with or without firm size control variables. this is in line with previous research conducted by wijaya and tjun (2017) and widyasari (2014). the high turnover of accounts receivable indicates the short age of accounts receivable which tends to reduce the interest of consumers, especially debtors to transact with companies on credit. this can reduce the value of the company's sales which indirectly affect the company's profitability, but the number of sales expenses, operating expenses and tax expenses have more direct effect on the amount of net income earned by the company. the arto coefficient value for tobin's q with the fsize control variable is 0.010923 and the probability value is 0.1934 which is greater than 0.1. in table 7 shows the arto coefficient value without the fsize control variable is 0.018078 with a probability value of 0.0433 which is less than 0.05. it can be concluded that the account receivable turnover variable has no significant effect on the company's financial performance based on tobin ’s q market value as a proxy if it is with firm size control variables, in line with the research conducted by lestari (2016). however, it has a positive and significant effect on the 5% significance level without firm size control variables, in line with the research conducted by ernawati (2016) and wahyuati (2017). this is because the more often the receivables rotate in a period, then it indicates that the level of liquidity of the company is high in value, which gives a positive information signal to the market that the company has a high ability to cover its short-term liabilities. effect of inventory turnover on company financial performance the coefficient of ito on roa with the fsize control variable is 0.000944 with a probability value of 0.4925 greater than 0.1. in table 7 also shows the coefficient of ito without the fsize control variable is 0.000916 with a probability value of 0.5045 which is also greater than 0.1. it can be concluded that the independent variable inventory turnover has no significant effect on the financial performance of roa as a proxy with or without a firm size control variable. this is in line with previous research conducted by widyasari (2014), shahzad (2015), and diana (2016). this is caused by several samples in this study are manufacturing companies engaged in the automotive sector where the company is not dependent on the value of its inventory, especially for finished goods inventory. like car supplies at pt. maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 48 astra internasional tbk and pt. indomobil international success tbk which uses the indent system in its sales. the coefficient of ito to tobin's q with the fsize control variable is 0.064823 and the probability value is 0.0000 which is smaller than 0.01. in table 7 shows the coefficient of ito without the fsize control variable is 0.067639 with a probability value which is also 0.0000 smaller than 0.01. it can be concluded that the independent variable inventory turnover has a significant effect on the 1% significance level of the company's financial performance, especially the tobin's q market value with or without the firm size control variable. this is in line with previous research conducted by siswoyo (2012), and wahyuati (2017). they argue that the faster the inventory rotates within a company, this indicates that the company has been able to manage its assets effectively and efficiently and is able to reduce the burdens caused by it, so that it is positive information for the market. effect of firm size on company financial performance the company size control variable (fsize) has a coefficient value of 0.009593 with a probability value of 0.5624 greater than 0.1. it can be concluded that the firm size control variable or company size does not significantly influence the company's financial performance, especially in terms of the profitability of the company by using roa as a proxy. this is in line with previous research conducted by febria (2013), rikalmi, et al. (2014) and ratnasari (2016). this is because the size of the company is not a guarantee that the company has been able to maximize its assets to achieve profits. the company size control variable (fsize) has a coefficient value of -0.963407 with a probability value of 0.0000 smaller than 0.01. it can be concluded that the firm size control variable or company size has a negative and significant effect on the 1% significance level of the company's financial performance, especially in terms of the company's market value by using the tobin's q ratio as a proxy. this is in line with previous research conducted by kausar, et al. (2014), khan (2012) and alkasinda (2012). this is because large-sized companies do not rely heavily on external funds from the public through the sale of shares and bonds, but they tend to prioritize privacy or focus on managing internal funds in order to increase ownership of the company. determination coefficient based on the regression results in the first equation without using firm size as a control variable shows the adjusted r2 value is 0.7637 which means 76.37% dependent variable financial performance roa can be explained by the five working capital management variables. regression results in the second equation without using firm size as a control variable shows adjusted r2 value of 0.8311, which means 83.11% dependent variable financial performance of market value (tobin's q) can be explained by the five working capital management variables. based on the regression results in the third equation using firm size as a control variable shows the adjusted r2 value of 0.7641 which means 76.41% dependent variable financial performance roa can be explained by the five working capital management variables. the magnitude of this effect proved to be greater than the regression equation without using the firm size control variable to the roa profitability ratio. while the regression results in the fourth equation using firm size as the control variable shows adjusted r2 value of 0.8543 which means 85.43% dependent variable financial performance of market value (tobin's q) can be explained by the five capital management variables. the magnitude of the influence on this model is the highest value compared to all other regression equations in this study. conclusions and suggestions in conclusion, it is noted that working capital turnover has no significant effect on financial performance. cash ratio has a significant effect on the company's financial performance, especially regarding profitability (roa) both with or without the firm size control variable. however, the cash ratio does not have a significant effect on the company's financial performance regarding market value. moreover, the cash conversion cycle has a significant effect on the company's financial performance, especially regarding profitability (roa) both with or without the firm size control variables. however, the ccc does not have a significant effect on the company's financial performance regarding market value. furthermore, account receivable turnover has no significant effect on the company's financial performance, especially regarding profitability (roa). in contrast to the results of the company's financial performance regarding market value, there was a significant influence without using firm size but no significant effect if there was a firm size control variable. finaly, inventory turnover does not significantly affect the company's financial performance, especially regarding profitability (roa). however, there was a significant influence on the company's financial performance regarding market value either with or without the control variable. maysuri, s., dalimunthe, s.. (2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 49 to sum up, as the results show the crucial role of cash ratio and cash conversion cycle in the manufacturing industry in indonesia, it is noted that the investor in indonesia cares on the ability of the firm to fullfil its liabilities. suggestions some suggestions implied from the research are: it is expected that the company can pay more attention and manage working capital elements effectively and efficiently. secondly, expanding research samples, not only manufacturing on companies. furthermore, the usage of firm size control variables should be more classified into a more specific company scale. bibliography alkasinda, a. 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(2018). journal of business and behavioural entrepreneurship volume.1 nomor.2 2018 p (40-50)  the effect of working capital management to financial performance of the company in manufacturing sector listed in indonesia stock exchange (idx) period 2013-2016.  https://doi.org/10.21009/jobbe.001.2.05 25 abstract empirical evidence confirms that brand loyalty is broadly understood in the context of positive side i.e. supportive loyalty compared to negative side i.e. oppositional loyalty. however, theoretically positive (supportive) loyalty cannot be explained exclusively without considering negative (oppositional) loyalty. this study, therefore, examines brand loyalty using a triadic approach combining both negative and positive loyalty in the cycle of love and hate relationship. specifically, the study examined the influence of fan and brand community identification on oppositional brand loyalty towards sponsors of a rival team in sports industry. a survey cross-sectional research design was adopted, through collecting data using semi-structured questionnaire from 228 highly identified fans of two giant sports teams in tanzania namely simba sports club and young africans sports club. the collected data were analyzed using structural equation modelling (sem), and findings revealed that fan and brand community identification have a strong positive significant influence on oppositional brand loyalty towards sponsors of a rival team when mediated with schadenfreude. therefore, business firms should take precautions when embarking on sponsorship of highly competing sports teams. finally, this study adopted a quantitative approach, hence further studies that adopt a qualitative approach is recommended to get a naturalistic picture of subject under the study. additionally, a comparative study is recommended to compare level of resistance loyalty exhibited by fans of each team. keywords: fan identification, brand community identification, schadenfreude, brand loyalty, oppositional brand loyalty received: 11 november 2019 ; accepted: 18 november 2019 ; publish : december 2019 how to cite: david, a..(2019). fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania. journal of business and behavioural entrepreneurship, 3(2), 25-40. https://doi.org/10.21009/ jobbe.003.2.02 fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania amani david university of dodoma, tanzania email: amani.david@udom.ac.tz mailto:amani.david@udom.ac.tz 26 introduction globally, loyalty is perceived as the core dimension of brand capital and hence attracts the special attention of scholars in marketing (amani, 2019). evidence confirms that loyalty minimizing intention to switch, increase prince insensitivity, patronage, etc. theoretically, two major streams or schools of thought exist regarding loyalty namely behaviorist school of thought (tucker, 1964), and cognitivist school of thought (day, 1969). these two schools of thought gave birth to behavioral and cognitive loyalty respectively (frisou, 2010). behaviorists define loyalty as an observable or visible behavior in the form of repetitive buying or purchase. likewise, to cognitivism, the term loyalty represents a positive attitude that a consumer has regarding a particular brand. in view of this, cognitivism perceives behavioral loyalty as false loyalty with arguments that examining loyalty based on repetitive purchase is inadequacy as there are several determinants of repetitive buying including price level, distance from the point of purchase, availability of products, etc. (frisou, 2010). in contrary they argue that true loyalty must emanate from an individual internal disposition which stimulates willingness to buy and consume a given brand (bristow and sebastian, 2001). in this regard, both cognitive and behavioral streams concentrate on the behaviors of consumers on the chosen brand while ignoring competing brands that always exist in the market (djedidi, 2013). however, while both cognitive and behavioral streams have been admired to be vital in building a theoretical foundation of loyalty, yet in modern business settings both have failed to provide theoretical explanations in the framework of dual behavior exhibited by consumers in the course of building loyalty (djedidi, 2013). in the context of consumer psychology, consumers exhibit a dual behavior by consuming the chosen brand which heightens their self-image while rejecting or avoiding competing brands that might add or signify deadly meaning to their life (white and dahl, 2006; hogg et al., 2008). in addition, consumers of the chosen brand do not only demonstrate their opposition to the competing brand, but they tend to develop an ironic rivalry to the consumer of the competing brands. they have a habit of criticizing competing brands through challenging their consumers as a means to defend and to support the chosen brand. this means consumers of a given brand tend to define or describe themselves by the chosen brand they usually buy and consume as well as the competing brand that they do not buy and they do not consume (djedidi, 2013). technically this is known as oppositional brand loyalty (muniz and hamer, 2001). ideally, this behavior can be well conceptualized through identification theory which advocates that an individual develops self-identification with a brand that has characteristics similar to his/her internal disposition. therefore, basing on the above arguments a triadic conception of the term loyalty is propounded as it conceptualize loyalty in the framework of relations between the consumer and his/her preferred brand, the existing relationship between the consumer and the discarded or rejected brand, and finally the relationship between the preferred brand and the rejected brand. the triadic conception describes loyalty beyond observable behavior e.g. repetitive purchase or positive attitude towards brands. it suggests an idea that a consumer uses his/her preferred brand as a central dimension for defining who he/she is as opposed to the way the competing brand and its consumers know. however, the study of loyalty in the context of a triadic conception which created thedavid, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 27 oretical base for the emergence of oppositional brand loyalty is in infancy and hence calls for more empirical studies (djedidi, 2013; kuo and huo, 2017). this study, therefore, intends to explore the influence of fan and brand community identification on oppositional brand loyalty when mediated with schadenfreude in the context of sports industry. review of literature oppositional brand loyalty (obl) the concept of oppositional (resistance) brand loyalty is very new in the literature and body of knowledge regarding branding. given its infancy, scholars suggest that a triadic approach that is different from contemporary approach proposed by both cognitivists and behaviorists could provide the most useful way for examining oppositional brand loyalty (djedidi, 2013). in the view of djedidi, (2013); kuo and huo, (2017) the triadic approach provides a new and holistic framework for examining loyalty which has not been much popular in literature regarding brand loyalty. in the context of triadic approach, loyalty should be well examined by looking relationship that a consumer develops with his/her chosen brand, relationship which exists between the consumer and avoided brand, as well as the relationship which prevails between the chosen brand and avoided brand. in the view of ewing et al., (2013) consumers do not only define themselves by things they like most, or in terms of “who are they”, but they prefer to be known by things they dislike most or in terms of “who they are not”. in this regard, competing brands serve as a subject for making comparison (kuo and huo, 2017). hence, oppositional brand loyalty is psychological behavior whereby an individual expressing appraising behavior on his/her favorite brand and at the same time exhibits adversarial behavior on rival brands or competing brands. a person who expresses opposition towards competing brands may decide intentionally to degrade the competing brands, and more than that, he/she may challenge consumers, adopters, or followers of competing brands. thus, in the context of oppositional brand loyalty feelings of love towards preferred brand and feelings of hate towards competing brands coexist concurrently. this implies that feelings of love and hate falling under the socalled “a cycle of love-hate relationship” in which one form of feeling always creates the base for another form of feeling to occur (zarantonello et al., 2016). it further implies that an individual cannot develop positive loyalty towards preferred brands, without developing negative loyalty towards competing brands. in fact, oppositional brand loyalty is more intensified by the presence of competing brand which seems to threaten the survival of chosen brands. fan identification (fi) fan identification has the power to influence an individual to be loyal to the extent of being fanatics to his/her favorite or preferred team, raise purchase intention of sponsor brands, and to minimize intention to switch to fans of sponsored team (thorne and bruner, 2006; ramírez et al., 2019). fan identification is situation in which a person feels that he/she is emotionally attached to, or being part of his/her favorite sports team. it is a person's self-image constituting a personal (individual) identity and a social (group) identity both defines individual distinctive personal characteristics and specific social group classification which the individual belongs or attached to. in this david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 28 regard, high identification with a certain social group in this case sports team is influenced by the extent to which the sports team replicates the peculiar characteristics of an individual person (bristow and sebastian, 2001). it can be said that fan identification with a particular sports team involves an attempt of a person to define a team identity as an integral part of the person’s self-identity (madrigal, 2000; kelley and tian, 2004). furthermore, fan identification can influence transfer of images between fans of sponsored teams and sponsor’s brands (grohs et al., 2015). this means, highly identified fans do not only develop emotional connection with their team, but this goes further to anybody who supports the team notably sponsors and their brands. despite its contribution on prosperous of the sports industry, fan identification has been the source of undesirable, deadly, and detrimental outcomes for fans in sports industry (wann et al., 2003; wakefield and wann, 2006). wann and wilson (2001) pointed out that, highly identified fans tend to be “dysfunctional” and demonstrate illegal and immoral behaviors to both rival sports teams and their sponsors. according to wann et al., (2005), some of highly identified fans are ready to support their favorite team be victorious through illegal practices such as corruption or any form of cheating if at all their anonymity would be guaranteed. it is necessary to note that, highly identified fans consider their favorite team victories as something which augment their own self-prestige and self-esteem through basking in the reflective glory (birging) of the favorite team (dalakas et al., 2004). experience shows that many sports fans know and acknowledge that some of these behaviors are improper or socially unacceptable, however they consider them as what a real fan should do to support or to help his/her favorite team be victorious (ramírez et al., 2019). h1: fan identification (fi) has a positive significant influence on oppositional brand loyalty (obl) brand community identification (bci) recently, consumers consider brand communities as the most reliable, quick, and efficient way of accessing information about different brands. as a matter of fact, consumers respond quickly to information shared and accessed through brand communities compared to information delivered and accessed through advertising (amani, 2019). muniz and o’guinn (2001) describe a brand community as a specialized and non-geographically restricted social community built on a well-defined structured set or settings of community relationships among fanatics or admirers of a given brand. in fact, group of consumers creates community or social relationships basing on specific social identifications and commonalities (mcalexander et al., 2002). according to muniz and o’guinn (2001) these two dimensions i.e. commonalities or social identification with other members spark behavior that is in line with the key characteristics of a community namely consciousness of kind, rituals and traditions, as well as a sense of moral responsibility. muniz and o’guinn (2001) described these dimensions as follows: the concept of consciousness of kind is intrinsic feelings related to the connection that a person has with other members of the community (in-group members) and the shared sense of being different from others who are not members of the community (out-group members). in other words, consciousness of kind develops a sense that consumers of a certain brand (a chosen brand) are to some extent different and distinct from consumers of a rival brand. according to kuo and feng (2013), members of group who have such david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 29 consciousness develop common understanding of belonging, and usually differentiate and sometimes discard or abandon those who are not members of a given community. on the other side, rituals and traditions consist of behavior such as sharing of stories, experiences on using the brand, reflecting the history of the brand, or sometimes demonstrating specific behavior e.g. way of greeting to fellow brand users. lastly, a sense of moral responsibility includes actions such as encourage other users of the brand to continue being loyal to the brand, sharing information with others nonmembers to recruit them in the community, and finally make them purchase the brand. therefore, brand community identification is described as the person's consciousness or realization that he/she belongs to a certain brand community which makes this person perceive him/herself as a symbolic or an actual member of the brand community (scarpi, 2010). the person develops identification towards the brand community when he/she perceive mutual ground between his/her own value, and specific value of the brand community in the course of identifying him/herself with other members of the group (zhou et al., 2012). in this view, brand community identification involves consumers, brands, and members of the community. in order for brand community identification to occur, there must be congruity between these three entities. in this regard, a brand acts as a central to brand community identification, due to the fact that, in-group members are brought together due to their love towards the brand (zhou et al., 2012). the moment in-group members come together, they find to have similar interests, personalities, etc., which replicate the brand personalities. h2: brand community identification (bci) has a positive significant influence on oppositional brand loyalty (obl) schadenfreude (se) the term schadenfreude is a german word that is used to describe an undesirable socially emotion behavior expressed by an individual in the form of being happy due to misfortune or failure of another person (ouwerkerk and van dijk, 2014; leach et al., 2015). it exists in situation where there is antagonistic relationship between two parties. for instance, popp et al., (2016) divulge that the majority of fans of sports teams they would miss something if antagonisms between sports teams would have not been there, as there would be no sports team to hate, meaning that no reason to feel and express schadenfreude. based on this, schadenfreude is attributed by negative responses, and therefore it is technically perceived by the majority of people as undesirable, unacceptable, distasteful (hoogland et al., 2015), and malicious or hateful (leach et al., 2014). in sports industry, schadenfreude is behavior that emerges slowly extending from minor propensities such as feeling pleasure when a rival team fails or loses to more severe behavior such as celebrating severe or serious injuries of disliked players (dalakas and melancon, 2012). in this regard, schadenfreude goes beyond feeling enjoyment due to victorious of favorite team rather it goes together with feelings of pleasure as the results of defeat or failure of opposing or competing teams. (leach et al., 2003; cikara et al., 2011). in addition, in the sports industry schadenfreude exist when fans of favorite team feel hurt and anger at a competing team’s achievement or success (cikara et al., 2011). it can take form of feelings of joy at the adversity of a rival team, its followers/fans, and its sponsors (dalakas and phillips-melancon, 2012; dalakas et al., 2015). on the other side, schadenfreude to a great extent surfaced due to in-group behavior within a david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 30 given social community (cikara et al., 2011; dalakas and melancon, 2012; popp et al., 2016). therefore, individuals who highly identified themselves with a given social group (in-group members) has great possibility of expressing schadenfreude compared to non-members of the social communities (hickman and ward, 2007; popp et al., 2016). on some occasions, in-group members develop schadenfreude to out-group members as a means position themselves as very special group within the society (cikara et al., 2011). in this view, this study used schadenfreude as a mediated variable due to its ability to provide explanation regarding how and why fans of favorite teams develop oppositional brand loyalty towards rival teams, their fans, and more specifically their sponsors. as a matter of fact, theoretically schadenfreude is very popular in sports industry, though has not been well examined in studies related to sponsorship while concentrating on negative customer reaction (oppositional brand loyalty) (angell et al., 2016). therefore, it is hypothesized that, h3: fan identification (fi) has a positive significant influence on schadenfreude (se) h4: brand community identification (bci) has a positive influence on schadenfreude (se) h5: schadenfreude (se) has a positive significant influence on oppositional brand loyalty (obl). conceptual framework this study is hypothesized a four-factor model that is fan identification (fi), brand community identification (bci), schadenfreude (se), and oppositional brand loyalty (obl). the model is explained by using a social identity theory which is based on theoretical understanding that, an individual seeks to categorize him/herself within a given social categorization as a means to differentiate him/herself with other individuals outside the social category. figure 1: conceptual framework sources: constructed by a researcher from theoretical and empirical review, 2019 david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 31 theoretical base social identity theory this study built its theoretical foundation on social identity theory propounded by tajfel (1974) and tajfel and turner, (1985). the theory advocates that an individual develop self-categorization through creating an emotional connection with members of the society as a means to build social identity. a social identity should be defined as an individual understanding that he/she belongs to a given social group or category (hogg and abrams, 1988). the social group or category is a group of individuals who have a shared social identification or perceive themselves as important members of the same social category through differentiating themselves with others who are not in the given social category (stets and burke, 2000). thus, the theory is based on the idea of intergroup relations consisting how individuals come to consider themselves as important members of a given social group(the in-group) in comparison with other groups (the out-group) which the results of this categorization are ethno-centrism (hogg and turner, 1987). thus, social identity theory suggests that individuals prefer to be defined in the context of who are they in the given social groups (in-group members) which creates the bases for contrasting with outgroup members. theoretically, in-group members’ favoritism, as explained by social identity theory is expected to offer in-depth theoretical explanations of how brand community identification and fan identification trigger oppositional brand loyalty. thus, this study is theoretically grounded in the social identity theory by explaining how fan and brand community identification influence oppositional brand loyalty on sponsor of rival sports teams. methodology area of study the study was conducted in dar-es-salaam region in tanzania. this area of study was selected because the two selected teams i.e. simba sports club and young africans sports club have very strong fans base in dar-es-salaam compared to other regions in tanzania. the study employed a cross-sectional survey research design due to the reasons that, the main intention of the study was not to monitor any change that occurs after intervention, and data were collected at one point of time and place so as to examine the subject under the study during particular period of time and place. finally, sports industry was selected because is the most attractive industry for investment in the form of sponsorship in the world (see. jense and cornwell, 2017). sampling procedures population the population of the study was all fans of simba sports club and young africans sports club resided in tanzania. sample size and sampling technique given the nature of the sports industry in tanzania, it was very difficult to establish sample size, and therefore, previous studies of this nature were consulted to establish reasonable sample size that could fit the study objective and other methodological issues. previous studies of this nature had sample size ranging from 100 – 500 (see. dadavid, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 32 lakas and melancon, 2012; shoham et al., 2015; grohs et al., 2015; cho et al., 2019). therefore, this study adopted a total sample of 228 respondents which are within the sample size adopted by the majority of previous studies of this nature. in addition, this sample size is slightly above the recommended sample size when deploying multivariate analysis techniques which are above 200 (see hoe, 2008; hair et al., 2006). data collection procedures in order to achieve the objective of this study, data were to be collected to fans who are highly identified with either of the teams. in view of this, it was necessary to adopt purposive sampling technique to get respondents who can provide detailed, enriched, and reliable information about the subject matter. thus, data were collected using semi -structured questionnaire which was self-administered to selected respondents. data analysis structural equation modelling (sem) found in the statistical package for social sciences (spss) software version 21 was used to analyze data. sem has the power to estimate accurately indirect effects of specific exogenous variables on given endogenous variables (hair et al., 2006). in addition, sem as a multivariate statistical model is more useful in dealing with multiple constructs defined and measured by using a set of measurement items. in this study, sem was suitable because all study variables are latent variables, and are properly defined and measured by using multiple items. operationalization of variables in operationalizing study variables, measurement scales were adopted from previous studies with some minor adjustments while considering context, setting and social background of the place where the study was conducted. measurement scales for fan identification were adopted from dalakas and melancon, (2012), brand community identification was adopted from zhou et al., (2012) and kuo and huo (2017), and schadenfreude were adopted from dalakas and melancon, (2012). furthermore, measurement scales for oppositional brand loyalty were adopted from kuo and feng (2013) and kuo and huo (2017). all variables were captured by using a five-point likert scale, 5-agree to 1-disagree. results and discussion respondents characteristics from a total of 228 respondents, males were 139 which is 61% and females were 89 which is 39%. in addition, respondents who are fans of simba sports club were 115 (50.4%), and young africans sports club was 113 (49.6%). maritual status indicates that married was 181 (79.4%) and single was 47 (20.6%). age categories indicate that, 10-20 were 3 (1.3%), 21-30 were 88(38.6%), 3140 were 52 (22.8%), 41-50 were 25 (11%), 51-60 were 8 (3.5%) and > 60 were 52 (22.8%). respondents' level of education shows that primary education was 18 (7.9%), secondary education was 12 (5.3%), certificate was 93 (40.8%), diploma was 98 (43%), degree was 7 (3.1%). occupational status indicates that students were 17 (7.5%), self-employed were 81 (35.5%), employed were 95 (41.7%), retired were 34 (14.9%), and others were 1 (4%). david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 33 goodness of fit of the models in assessing goodness of fit of both measurement model and structural model, the following goodness of fit index was used: normed fit index (nfi), incremental fit index (ifi), tucker-lewis coefficient (tli), comparative fit index (cfi), goodness of fit index (gfi), root mean square error of approximation (rmsea) and  2 /df. measurement model for the intention of assessing goodness of fit of the hypothesized model, confirmatory factor analysis (cfa) was conducted (see holtzman, and vezzu, 2011). precisely, all goodness of fit index was within acceptable range, implying that, the hypothesized model fit well the data and hence the model was accepted (see hooper et al., 2008). table 1 below shows goodness of fit index, their recommended values, and actual value of each index. table 1: goodness of fit for measurement model source: data analysis, 2019 additionally, factor loadings of all measurement items for both fan identification and brand community identification were above the cutoff point which is > 0.60 (see. kline, 2005; tabachnick and fidell, 2007). furthermore, composite reliability (cr) for fan identification and brand community identification were 0.88 and 0.88 respectively (see fornell and larcker, 1981). likewise, cronbach alpha coefficient ( for fan identification (5 items) = 0.877, and brand community identification (5 items) = 0.877, and cutoff point is   (see tavakol and dennick, 2011). thus, measurement items for fan and brand community identification were the good measure of the constructs. again, average variance extracted (ave) for fun identification, brand community identification were 0.591 and 0.588 respectively, and the threshold is > 0.50 (see fornell and larcker, 1981). this indicates good convergent validity of measurement scales. in addition; discriminant validity was good because the value of squared correlation (0.386) was less than average variance extracted (ave) of each construct (i.e. 0.591 and 0.588 for fi and bci respectively). structural model the goodness of fit of the structural model indicates that all goodness of fit index falls within the acceptable range, and hence the model was accepted (see hooper et al., 2008). table 2 below shows goodness of fit index, their recommended values, and actual value of each index. david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 goodness of fit index acceptable value value of index gfi close to 1 0.926 nfi close to 1 0.927 ifi close to 1 0.953 tli close to 1 0.937 cfi close to 1 0.953 x 2 /df 1 ≤ x 2 /df ≤ 3 2.662 rmsea 0 ≤ rmsea ≤ 0.1 0.086 34 table 2: goodness of fit for structural model source: data analysis, 2019 additionally, factor loadings of all measurement items used to measure variables i.e. fan identification and brand community identification, schadenfreude, and oppositional brand loyalty were above the threshold which is > 0.60 (see. kline, 2005; tabachnick and fidell, 2007). furthermore, cronbach alpha coefficient ( for schadenfreude (5 items) = 0.939, and oppositional brand loyalty (5 items) = 0.916, and cutoff point is   composite reliability (cr) for schadenfreude, and oppositional brand loyalty were 0.936 and 0.916 respectively. this implies that all measurement scales were good measures of the constructs. regression analysis statistically, regression analysis was performed through regressing exogenous variables and endogenous variables to establish their statistical relationship. the results revealed that fan identification and brand community identification influence significantly oppositional brand loyalty when mediated with schadenfreude. it can be revealed from table 1 below that, fan identification has significant influence on oppositional brand loyalty with p-value = 0.009 below cutoff point i.e. < 0.05, and β = 0.214 and hence hypothesis 1 was supported. in addition, brand community identification influence significantly oppositional brand loyalty with p-value < 0.05 and β = 0.461, implies hypothesis 2 was supported. furthermore, fan identification has positive influence on schadenfreude with p-value < 0.05 and β = 0.320, meaning that hypothesis 3 was supported. again, brand community identification has positive influence on schadenfreude with p-value < 0.05 and β = 0.429, hence hypothesis 4 was supported. lastly, schadenfreude influence positively oppositional brand loyalty with p-value < 0.05 and β = 0.551, which implies that hypothesis 5 was supported. table 3: regression analysis source: data analysis, 2019 david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 goodness of fit index acceptable value value of index nfi close to 1 0.869 ifi close to 1 0.913 tli close to 1 0.901 cfi close to 1 0.913 gfi close to 1 0.846 x 2 /df 1 ≤ x 2 /df ≤ 3 2.699 rmsea 0 ≤ rmsea ≤ 0.1 0.087 proposed hypothesis p-value standardized regression weight (β) standard error (se) critical ratio (cr) decision hypothesis 1 0.009 0.214 0.082 2.621 supported hypothesis 2 *** 0.461 0.084 5.499 supported hypothesis 3 *** 0.320 0.093 3.456 supported hypothesis 4 *** 0.429 0.091 4.741 supported hypothesis 5 *** 0.551 0.067 8.232 supported 35 in addition, the sobel test was conducted to test the strength of mediated variable. statistically, complete mediation occurs when mediated variable reduce the effect between exogenous and endogenous variables to zero. furthermore, partial mediation occurs when mediated variable cause a nontrivial decrease of effect between exogenous and endogenous variables (see preacher and hayes, 2004). the results indicate that, with the inclusion of mediated variable (schadenfreude), the effect between fan identification and oppositional brand loyalty decrease significantly but not to zero. likewise, when the mediated variable (schadenfreude) is introduced the effect between brand community identification and oppositional brand loyalty decrease slightly. these results imply that partial mediation occurs when schadenfreude is introduced in both relationships. tables 4 and 5 below show sobel test output of both fan identification, brand community identification, schadenfreude, and oppositional brand loyalty. table 4: sobel test for fi, se, and obl source: data analysis, 2019 table 5: sobel test for bci, se, and obl source: data analysis, 2019 discussion the findings of the study have uncovered a new insight that has not been given attention by scholars and practitioners about sponsorship and brand loyalty. it has been revealed that sponsorship which for decades has been popularized to be very crucial in building sponsors' competitive edge may have detrimental effects on the sponsors and its brands. specifically, though sports industry in the world has been the most attractive area for investment through sponsorship, precaution is necessary before embarking on sponsoring highly competing or opposing teams. to a large extent, highly identified fans of a chosen team may demonstrate brutality behavior to brands that spondavid, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 variables coeff s.e. t sig(two) fi→obl .2755 .0539 5.1102 .0000 fi→se .4240 .0748 5.6714 .0000 se→obl .3667 .0414 8.8606 .0000 fi→se→obl .1200 .0497 2.4133 .0166 variables coeff s.e. t sig(two) bci→obl .3719 .0581 6.4021 .0000 bci→se .5087 .0819 6.2105 .0000 se→obl .3457 .0413 8.3752 .0000 bci→se→obl .1960 .0550 3.5641 .0004 36 sored a rival team. furthermore, brand community identification has confirmed to be the paramount source for building oppositional brand loyalty to sponsors of a rival team among members of the brand community (in-group members). through brand community identification, in-group members differentiate themselves with outgroup members especially fans of a rival team, and users of brands of sponsors of a rival team. in addition, brand community identification has been confirmed to be the most powerful catalyst in prompting schadenfreude to in-group members (fans of a favorite team) toward outgroup members (fans of a rival team). usually, in-group members develop oppositional brand loyalty as a means to defend their favorite team against a rival team, and anybody who supports the rival team including fans and more specifically sponsors. in fact, by viewing these findings in the context of tanzania it can be explained that, although there are no serious brutality behaviors or actions that have been reported in sports industry, yet there are feelings of hatred between fans of highly competing teams. the findings confirm that, fans of highly competing teams will feel happy if key players of rival team get serious injuries, they will feel joy if fans of a rival team get social challenge, they will be happy if sponsors of a rival team found in legal trouble, undergo bankruptcy, or get any serious social problems. in view of this, schadenfreude is the issue of concern to majority of fans in sports industry in tanzania. the results have shed light on the idea that highly identified fans usually feel happy due to misfortune of a rival team, its fans, and eventually its sponsors. furthermore, when feelings of happiness due to misfortune of the rival team, its fan, and its sponsors continue over time may give birth to hostility behavior which is exhibited in the form of oppositional brand loyalty. however, the fact that they cannot be able to exhibit these behaviors openly, they usually engage in serious sabotage actions such as social media -based anti-brand communities’ techniques such as negative wom, negative brand referral, etc. through both online and offline brand communities. generally, the results demonstrate that if highly identified fans are exposed to environments that give them room to exhibit their brutality behavior, detrimental effects may occur to sponsors of the teams. the study findings are in the line with popp et al., (2016) who investigated media-based anti-brand communities in professional football. it was revealed in this study that, fans of professional football teams use social media as a forum to express their positive and negative feelings on their favorite and rival teams. in addition, schadenfreude has been surfaced in this study as a tool for expressing joy and happiness when the opposing team fails. on top of that, dalakas and melancon, (2012), uncovered that the importance of winning among highly identified fans trigger schadenfreude to rival teams and their fans. in other words, highly identified fans who are basking in reflective glory (birging) of their preferred team, consider winning as very crucial aspects, and hence develop schadenfreude to rivals team to ensure their team victory. on the other side, grohs et al., (2015); angell et al., (2016) discovered that, though sponsorship has been viewed as an important tool for building competitive edge, highly identified fans may respond negatively when sponsorship is offered to an opposing team. this, means, when sponsorship is offered to a rival team, highly identified fans of a chosen team may develop hostility behavior to the sponsor and its brands. david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 37 conclusion and recommendations conclusion the major intention of this study was to examine the influence of fan identification, brand identification on oppositional brand loyalty when mediated with schadenfreude. it seeks to examine the power of fans at an individual level (fan identification) and group level (brand community identification) on oppositional brand loyalty towards sponsors of rival teams. the findings divulged that both fan identification and brand community identification have significant influence on oppositional brand loyalty towards sponsors of a rival sports team. basing on these findings it can be concluded that it is necessary to assess the nature of industry before embarking on sponsorship. in other words, marketers should carry out industry analysis in order to make prudent decisions on either to invest in sponsorship or otherwise, given the fact that the effects of sponsorship can be manifested in both positive and negative responses. specifically, it can be concluded that the decision to sponsor a sports team may elicit negative responses to highly identified fans of a rival team. the propensity of these negative responses may start from very light negative actions to serious and complex responses such as disparaging or disapproving sponsor’s brands. in addition, these responses may exhibited by an individual person as a fan of a given sports team, but serious detrimental effects can be seen when negative responses are expressed by members of brand community. recommendations following the findings of this study, it is recommended that business firms should view sponsorship in both positive and negative responses. in this regard, business firms have to take in-depth analysis before engaging in any form of sponsorship program. this can be done through intensive industry analysis which seeks to explore the nature of competition, which dominates the industry. this may be helpful in deciding which form of sponsorship is suitable given the nature of competition and competitors prevailing in the industry. it is very crucial for business firms to design sponsorship program focusing on reducing negative effects while strengthening positive responses. this is possible through minimizing direct connection between the business firm and its brands with sponsored teams, particularly during mass advertising. this recommendation is based on the evidence from previous studies that, the majority of fans of rival teams feel unhappy when sponsors associate their success with sponsored teams. they dislike any mass communication which tries to convince the public that success of the sponsors and its brand is due to popularity or strength of sponsored team. in view of this, a hybrid sponsorship program focusing on sponsoring the most competing teams collectively can be adopted as a means to avoid negative effects on sponsors and their brands. limitations and future study despite the findings of the study, this study is not free from limitations. this study adopted a quantitative approach that does not provide room for exploring indepth understanding of the phenomena under the study. therefore, further studies should employ a qualitative approach for exploring a naturalistic picture of topic under the study. in addition, a comparative study should be conducted to compare level of resistance loyalty exhibited by fans of each team, and fans at individual level (fan identification) in comparison with fans at group level (brand community identification). david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community 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(2012). how do brand communities generate brand relationships? intermediate mechanisms. journal of business research, 65(7), 890-895. david, a..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (25-40)  fan identification, brand community identification, and oppositional brand loyalty towards sponsors of a rival sports team: the mediating role of schadenfreude the case study of selected sports team in tanzania.  https://doi.org/10.21009/jobbe.003.2.02 organizational culture, management accounting information, innovation capability and smes performance mitsalina tantri jakarta muhammadiyah university e-mail: mitsalina.tantri@gmail.com andry priharta jakarta muhammadiyah university e-mail: andry.priharta@umj.ac.id siti hamidah rustiana jakarta muhammadiyah university e-mail: sitirustiana@gmail.com luqman hakim jakarta muhammadiyah university e-mail: luqman.hakim@umj.ac.id m nur a. birton jakarta muhammadiyah university e-mail: nur_birton@yahoo.com abstract in accordance with the theories of organizational culture, innovation diffusion and tam, this study examines the relationship between organizational culture, management accounting information, innovation capability and company performance in small and medium enterprises (smes) in the city of south tangerang. data for the study were collected through a questionnaire survey of a sample of 160 top and middle level managers in smes. the results obtained reveal that organizational culture has a significant positive effect on company performance. in addition, the results show that the use of management accounting information and innovation capability has no significant effect on firm performance. keywords: organizational culture, management accounting information, innovation capability, smes performance received: 10 october 2022; accepted: 29 december 2022 how to cite: tantri, m., et.al. (2022). organizational culture, management accounting information, innovation capability and smes performance. journal of business and behavioural entrepreneurship, 6(2), 82-103. https://doi.org/10.21009/jobbe.006.2.07 82 mailto:mitsalina.tantri@gmail.com mailto:andry.priharta@umj.ac.id mailto:sitirustiana@gmail.com mailto:luqman.hakim@umj.ac.id mailto:nur_birton@yahoo.com https://doi.org/10.21009/jobbe.006.2.07 tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 83 introduction performance is an important element that must be achieved, a reflection of the ability to allocate and manage the resources of each company (truong, 2020). according to demir (2020) achievement as an illustration of the achievement of activities to realize company goals, rapid economic development in various countries has an impact on the business environment in indonesia from the financial and non-financial sectors. these conditions encourage us to compete with each other to gain the trust of investors and the public (teanpitthayamas, 2021). determining the success of company performance requires measuring whether these results meet company goals (elzahaby, 2021). performance is generally measured through financial and non-financial information (gunduz & al-naimi, 2021). small and medium enterprises have an important meaning. small and medium enterprises are one of the engines of modern economic life and are seen as engines o f economic growth and employment (modak, 2017). small and medium enterprises continue to face challenges responding to changing environmental factors, such as developing markets and higher product quality standards worldwide, the need for shorter delivery times and closer business partnerships (córdova-aguirre, 2021). in addition, small and medium-sized companies have unique selling points that differentiate them from the marketing activities of large companies (michnik, 2019). these characteristics can be determined by the characteristics and behavior attached to the entrepreneur or owner/manager, or it can be dictated by inherent limitations and the size and sophistication of the firm. this limitation may be due to limited resources such as finance, time and marketing, as well as the lack of specific skills and limited market influence of the general owner or manager. according to dahooie (2021) that it is qualitatively difficult for small and medium enterprises in indonesia to develop in the market because they have some internal problems such as poor quality human resources, such as a lack of qualified personnel, lack of cultural alignment of management, control and inadequate technology management. weak, lack of knowledge and innovation skills. two internal problems of many small and medium enterprises, namely cultural orientation of management and ability to innovate, have become central themes in much of the current research. small and medium enterprises are businesses that seek profit as the end result of their business activities, therefore the management of small and medium enterprises must try to achieve the expected goals properly. however, when carrying out their activities, problems often arise that have an impact on performance, one of the small and medium-sized businesses that has problems in the target area of the south tangerang sub-dept. in east ciputat subdistrict, namely small and medium-sized businesses wakalumi serving cash and credit sales services. based on preliminary research, there are problems that relating to sales accounting information and cash receipts namely customers not filling out credit forms, to issue guarantee letters and customer delays, if you have filled it out, a guarantee letter will be given which is a payment system for small and medium businesses with special conditions being applied to customers, in other words, there must be an agreement first. small and medium businesses will take a letter of guarantee and bill other companies that work together, this happens because sales marketing does not follow up on the form for fear of offending and burdening customers with credit forms, so that bills pile up the accounting department will not be able tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 84 to bill because there is no customer data (putri & parameswara, 2019). in addition to the problem of management accounting information, several companies in indonesia, including small and medium enterprises, are unable to carry out good corporate management cultural orientation practices so they are unable to run their business (putri & parameswara, 2019). differences in the cultural orientation of management in small and medium enterprise industrial companies compared to micro enterprises, namely structure, regulations, and higher levels of debt financing in small and medium enterprise industries. this causes small and medium businesses to have lower control and have higher corporate performance than micro businesses (pratiwi et al., 2020). syofyan & putra (2020) states that management cultural orientation in indonesia is still low, so not all small and medium businesses are able to improve a good management cultural orientation. another problem that occurs in small and medium-sized businesses is that their ability to innovate has not been optimal in developing products and services (parameswara, 2021). in addition to management accounting information and management cultural orientation, innovation capability is a development effort carried out by the company as an effort to reach opportunities so as to increase company profits (naek & lauw, 2020). the ability to innovate has become part of the activities of every company, this is because product development management is included as one of the company's strategies for the development of companies that have greater innovation can gain reputation and better performance than other static companies (suttipun & phd, 2018). innovation is not only to comply with the rules but commitment to innovation can increase product sales but there are companies that use innovation as a strategy to deceive the company's image (ida et al., 2019). research on company performance has been investigated. previous studies examined the influence of management's cultural orientation, innovation capability and management accounting information on company performance. previous research findings reveal that there is a significant relationship between the influence of management's cultural orientation, innovation ability and management accounting information on company performance. on the other hand, researchers found that organizational culture has an effect on company performance. meanwhile, the ability of innovation and management accounting information has no effect on company performance. because researchers found research results that were different from previous researchers, the results of this study were state of the art. therefore, this research is important to find out the reasons for the non-influence of innovation ability and management accounting information on company performance in south tangerang. this study aims to determine and analyze the influence of management's cultural orientation, innovation ability and management accounting information on company performance. this research will contribute at the theoretical and practical levels as well as contribute knowledge on the determinants of company performance in smes in south tangerang. literature review organizational culture theory organizational culture theory is a communication theory that includes all communication symbols (actions, routines, and conversations) and the meanings attached to these symbols (turner & west, 2011). in the corporate environment, organizational culture is considered as one of the company's strategies to achieve its goals and strengths. organizational members create and maintain a common sense of organizational reality, which tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 85 leads to a better understanding of organizational values. the core of this assumption is the values that belong to the organization. values are the norms and principles embedded in culture. in this study, the use of organizational culture theory becomes the theoretical basis for analyzing the influence of management cultural alignment on organizational effectiveness. organizational culture theory is one of the company's strategies in achieving goals and strengths. organizational members create and maintain a common sense of organizational reality, which leads to a better understanding of organizational values. organizational culture theory is a communication theory that includes all symbols of communication (functions, routines, and conversations) and the meanings that people give to these symbols (turner & west, 2011). the theory discussed above strengthens research conducted by (sakrabani, 2021), demir (2020) and llach (2017) the higher management's belief in innovative and creative approaches to work, management's cultural orientation significantly improves company performance. based on previous theory and research, personnel development indicators are developed, innovative, take advantage of opportunities quickly, have a willingness to experiment with new ideas, are willing to take risks, are careful, and are rule oriented. innovation diffusion theory the innovation diffusion theory developed by everett m rogers is widely known as a theory that discusses innovation decisions. through the book diffusion of innovation (doi). rogers (1962) it provides the concept of the diffusion of innovations and the speed at which social systems accept new ideas for innovation. so far, rogers' theory has been widely cited by researchers, especially regarding the diffusion of innovations. rogers describes the three main concepts of doi: innovation, diffusion and adoption. innovation is an idea, practice or object that someone experiences as something new. diffusion is the process by which an innovation is communicated through a particular medium to members of a social system at a given time. implementation occurs when individuals maximize the innovation as the true best choice (rogers, 1962). the theory of innovation diffusion is a theory that discusses innovation decisions (rogers, 1962). the concepts of innovation diffusion and the speed with which a social system accepts new ideas offered by an innovation have been widely referred to by researchers, especially when discussing the issue of the diffusion of innovations. the theory discussed above strengthens research conducted by (osunsanwo, 2020), (valmohammadi, 2019), (gama, 2019) and (sarraf & nejad, 2020) strategically innovation capabilities are very important for businesses to be able to compete, so that innovation capabilities very important. strategically affect the company's performance significantly. based on theory and previous research, indicators are built: research companies often try new ideas, research companies look for new ways to do things, tam theory (technology acceptance model) this theory was introduced by davis (1989) which explains how users receive a technology in the system. tam is a development of the theory of reasoned action introduced by (ajzen & fishbein, 1980) and (putri et al., 2020). this theory explains the causal relationship between beliefs about the benefits of usability and information systems. in addition, tam information system user behavior, needs/goals, and trusted users influence their acceptance and use of the technology. both are ease of use and user youth (putu et al., 2021). in this study, the use of tam theory is the theoretical basis for analyzing the effect of tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 86 accounting information systems on company performance according to tam. based on previous research using this theory to analyze the relationship between management cultural orientation, the ability to innovate, and management accounting information on company performance. the tam (technology acceptance model) theory states that the use of computers can be trusted to improve individual performance which will be discussed later which explains that the use or utilization of accounting information systems will lead to user satisfaction which will have an impact on individual performance and company performance. the theory discussed earlier strengthens research conducted by (yoshikuni, 2017), (alsyouf, 2021) and (hájek, 2020) the better the use of management accounting information, the better the company's performance, so that management accounting information has a significant effect on company performance. organizational culture organizational culture (with six cultural factors: innovation, result orientation, attention to detail, team orientation, respect for people, and stability) was proposed by o'reilly et al. (1991) and developed and finalized by chatman and jehn (1994) and windsor and ashkanasy (1996). among the six factors of organizational culture, innovative culture (also known as management's value orientation towards innovation) has received particular attention from organizational culture research (baird et al., 2018). management's value orientation towards innovation reflects management's belief in innovative and creative approaches to work (o'reilly et al., 1991); and management's value orientation towards innovation influences their attitudes and behavior towards innovation and innovative activities in their companies (chia & koh, 2007; russel & russel, 1992). management accounting information chenhall and morris (1986) first formalized the four main information characteristics of management accounting information. this definition is widely adopted in research (agbejule, 2005; bouwens & abernethy, 2000; soobaroyen & poorundersing, 2008). the four characteristics of information are: broad coverage, aggregation, integration, and timeliness. first, the scope of information refers to the dimensions of focus, quantification and time horizon. this includes non-financial information, forward-looking information and external environmental information. second, aggregation refers to the aggregation of information according to different functional parts of the organization over time. third, integration refers to the interaction between parts and departments within the company through information sharing. innovation capability the literature conceptualizes innovation in various ways (jiménez-jiménez & sanzvalle, 2011; thang & tuan, 2020). however, most definitions share the two perspectives. the first is that innovation is a behavioral variable. the second is the capacity of the organization to change (calantone et al., 2002). this study focuses on the capacity of organizations to be willing to implement change. following hult et al. (2004) innovation capability is related to the company's capacity to engage in innovation including the introduction of new processes, products, or ideas within the organization. tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 87 research hypothesis and model review the influence of management's cultural orientation on company performance. organizational culture theory is one of the company's strategies in achieving goals and strengths. organizational members create and maintain a common sense of organizational reality, which leads to a better understanding of organizational values. organizational culture theory is a communication theory that includes all symbols of communication (functions, routines, and conversations) and the meanings that people give to these symbols (turner & west, 2011). the theory discussed above strengthens research conducted by (sakrabani, 2021), (demir, 2020) and (llach, 2017) the higher management's belief in innovative and creative approaches to work, management's cultural orientation significantly improves company performance. based on previous theory and research, the following hypotheses were built: h1: management's cultural orientation has a positive effect on company performance. the effect of innovation capability on company performance. the theory of innovation diffusion is a theory that discusses innovation decisions (rogers, 1962). the concepts of innovation diffusion and the speed with which a social system accepts new ideas offered by an innovation have been widely referred to by researchers, especially when discussing the issue of the diffusion of innovations. the theory discussed above strengthens research conducted by (osunsanwo, 2020), (valmohammadi, 2019), (gama, 2019) and (sarraf & nejad, 2020) strategically innovation capabilities are very important for businesses to be able to compete, so that innovation capabilities very important. strategically affect the company's performance significantly. based on previous theory and research, the following hypotheses were built: h2: innovation capability has a positive effect on company performance. the effect of management accounting information on company performance. the tam (technology acceptance model) theory states that the use of computers can be trusted to improve individual performance which will be discussed later which explains that the use or utilization of accounting information systems will lead to user satisfaction which will have an impact on individual performance and company performance. the theory discussed earlier strengthens research conducted by (yoshikuni, 2017), (alsyouf, 2021) and (hájek, 2020) the better the use of management accounting information, the better the company's performance, so that management accounting information has a significant effect on company performance. based on previous theory and research, the following hypotheses were built: h3: management accounting information has a positive effect on company performance. based on the review of relevant theory and research above, the proposed research model is described in figure 1 below. tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 88 figure 1. research framework research methods the research design used in this study is a causality descriptive research design. causal research design aims to analyze the relationship between variables in a study or to find out how a variable can affect changes in other variables (joe f hair et al., 2019). in this study there are exogenous (independent) variables, namely management cultural orientation, innovation capability and management accounting information and endogenous (dependent) variables, namely company performance. the research questionnaire was filled out online for data collection. the research population is smes in south tangerang, indonesia. data collection, processing and analysis will be carried out in 2022. the sampling method uses non-probability sampling with stratified random sampling. the number of respondents in this study was 160 people, the sample size was taken based on joe f hair et al. (2019). tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 89 table 1. demographics of respondents this study uses the structural equation model partial least square (sem-pls) analysis tool with two measurement models (joseph f hair et al., 2013; wong, 2019), namely outer model analysis with five parameters, inner model analysis with four parameters, as well as analyzing models and testing hypotheses. evaluation of the measurement model (outer model analysis) uses five parameters, including convergent validity value, where the loading factor value must be above 0.70, then it is said to be valid. the second is average variance extracted (ave) with an expected ave value above 0.50, meaning that the higher the ave value, the variance caused by errors in model measurement is smaller than the variance caused by each construct captured by the model. third is discriminant validity, the total percentage male 90 56,3% female 70 43,8% < 25 years 10 6,2% 26 35 years 30 18,8% 36 45 years 120 75,0% culinary 60 37,5% fashion 20 12,5% otomotif 10 6,3% creatif 10 6,3% internet 10 6,3% others 50 31,1% owner 150 93,8% manager 10 6,3% < 1 year 10 6,3% 1 5 years 80 50,0% 6 10 years 60 37,5% > 10 years 10 6,3% < rp.300.000.000 100 62,5% rp.300.000.000 rp.2.500.000.000 40 25,0% rp.2.500.000.000 rp. 50.000.000.000 10 6,3% > rp.50.000.000.001 10 6,3% < 5 person 90 56,3% 6 10 person 20 12,5% 11 19 person 40 25,0% 20 99 person 10 6,3% > 100 person 0 0,0% respondens characteristics firm age omzet employees gender age product position tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 90 loading factor value is greater than the cross-loading value or you can also use the fornelllacker criterion value, where the criterion value is greater than the correlation value to other constructs. the fourth is reliability analysis using the composite reliability (cr) value, and it is expected that the cr value is greater than 0.70, so the latency is said to be reliable. in addition, finally, cronbach's alpha with the expected value is cronbach's alpha greater than 0.60. so, hypothesis testing involving relationships between constructs will only be reliable or valid if the measurement model explains how these constructs are measured (joe f hair et al., 2019). significance testing is the process of testing whether a particular outcome occurs by chance. the critical values for this level of significance and the one-tailed test are 1.65, respectively. the significance test using the t-statistic value (t value) for a one-tailed test is 1.65. for the significance level of the p-value is 5% (0.05), it means that it is said to be significant if the p-value is less than 0.05. results and discussion results respondents were owners and managers of smes in south tangerang, with a total of 160 respondents consisting of 90 people (56.3%) men, and 70 people (43.8%) were women. furthermore, the most respondents aged 36-45 years were 120 people (75%), besides that, there were 30 people aged 26-35 years (18.8%), and those aged under 25 years were 10 people (6.2%). . the number of respondents who did business in the culinary field was 60 people (37.5%), fashion consisted of 20 people (12.5%), each of 10 people (6.3%) were in the automotive, creative and internet businesses. while the remaining 50 people (31.1%) in other fields. for the owner position who filled out this questionnaire there were 150 people (93.8%) and 10 people (6.3%) as managers. the ages of smes since their establishment until now were studied consisted of 80 smes aged less than 1 year as many as 10 smes (6.3%), the number of smes aged 1-5 years was 80 smes (50%), and those aged 610 years consisted of 60 smes (37.5%), and those who were more than 10 years old consisted of 10 smes (6.3%). for smes with a turnover of less than rp. 300 million, there are 100 smes (62.5%), then those with an turnover of idr 300 million – idr 2.5 billion are 40 smes (25%), and smes with an turnover of idr 2.5 billion – idr 50 billion are 10 smes (6.3%) and smes with a turnover of more than idr 50 billion are 10 smes (6.3%). of the total 160 smes studied, 90 smes (56.3%) had employees under 5 people, 20 smes had 6-10 employees (12,5%), 11-19 employees have 40 person (25%) and 20-99 employees have 10 smes (6,3%). in this study, if each construct has an ave > 0.50, the minimum acceptable loading factor size is 0.70. based on the processing results of smartpls 4.0 shown in figure 2, the loading factor values for all indicators are above 0.70. therefore, the convergent validity model in this study meets the requirements. loadings, cronbach's alpha, composite reliability, and ave values for each complete construct are in table 2. tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 91 figure 2. outer model analysis results table 2. convergent validity construct indicators factor loadings cronbach's alpha composite reliability ave per_f1 0.883 per_f2 0.905 per_f3 0.839 per_nf1 0.866 per_nf2 0.858 per_nf3 0.935 per_nf4 0.879 per_nf5 0.882 voi_1 0.959 voi_2 0.905 voi_3 0.917 voi_4 0.955 voi_5 0.900 voi_6 0.911 inno_1 0.899 inno_2 0.938 inno_3 0.928 inno_4 0.940 inno_5 0.962 0.965 0.973 0.971 0.777 0.855 0.872 sme's performance organizational culture innovation capabilities 0.959 0.966 0.963 tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 92 discriminant validity tests are conducted to ensure that the concept of each latent variable is different from other latent variables. the model is said to have good discriminant validity if the ave value for each exogenous construct exceeds the correlation between constructs and other constructs. the results of the discriminant validity test using the ave value by looking at the fornell-larcker criterion value, namely in table 2. the results of the discriminant validity test in table 2 show that the ave value for all constructs is higher than the correlation with other potential constructs (according to the fornell-larcker criteria). therefore, it can be concluded that the model has met discriminant validity. table 3. discriminant validity (fornell-larcker criterion) testing the hypothesis by looking at the path coefficient of the bootstrapping analysis results by comparing the t-statistics with the t-table. the hypothesis accepts the t-statistic value > t-table (1.65). the results of the complete bootstrapping analysis on the path coefficient with a 78% confidence level are shown in figure 3. the path coefficient value indicated by the t-statistic must be higher than the t-table value with an alpha significance level of 5% (0.05) and the t value above 1.65. the t-statistic values for all paths in the studied structural model. in summary, the results of the path coefficient t-test analysis are shown in table 3. analysis of the path coefficient t-test (table 3) shows that perceptions of organizational culture have a direct and significant effect on firm performance (h1: accepted, t=3.342, p=0.001). innovation capability has no direct and significant effect on firm performance (h2: rejected, t=0.241, p=0.809). management accounting information variables do not directly and significantly affect company performance (h3: rejected, t=0.9723, p=0.332). construct indicators factor loadings cronbach's alpha composite reliability ave broa_1 0.927 broa_2 0.868 broa_3 0.891 time_1 0.936 time_2 0.919 inte_1 0.919 inte_2 0.927 inte_3 0.979 inte_4 0.928 0.981 0.850information accounting management 0.978 x3 x2 x1 y organizational culture (x1) 0.925 innovation capabilities (x2) 0.905 0.934 information accounting management (x3) 0.435 0.541 0.922 smes performance (y) 0.927 0.882 0.592 0.881 tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 93 figure 3. results of deep model analysis table 4. direct effect coefficient results t-value > 1.645, p-value <0.05 subsequent analysis measured the r-square (r2) value in the structural model for endogenous latency of 0.904 (90.4%) and adjusted r-square of 0.880 (88.0%) which can be interpreted as strong(chin et al., 2013). table 5 presents the r2 value for the smes performance variable. from table 5, an r2 value of 0.904 is obtained indicating that organizational culture variables, innovation capabilities and management accounting information are strong in explaining the performance of smes by 90.4%. table 5. determinant coefficient value (r-square) f-square (f2) is calculated to measure the significance of the partial effect of exogenous variables on endogenous variables, the estimated value of f2 is 0.005; 0.354; 1.116 indicates that the effect value is weak, moderate, and strong (cohen, 1988). based on the results of table 6, the f2 value of the organizational culture variable on smes performance is 0.005 (weak), the innovation ability variable on smes performance is 0.354 (moderate), then coefficient t-value p-value hypothesis h1 x1 -> y 0.780 3.342 0.001 accepted h2 x2 -> y 0.056 0.241 0.809 rejected h3 x3 -> y 0.222 0.972 0.332 rejected r square r square adjusted result smes performance 0.904 0.880 strong tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 94 for management accounting information on smes performance is 1.116 (strong). table 6. assessment of the level of effect size (f2) finally, q-square (q2) measures how well the model produces the observed and estimated parameters. if the q2 value is greater than 0 (zero), then the model is considered to have a relevant predictive value. in this study, the results of the q2 calculation were 0.339 for smes performance, which means that the variables in this study have a good predictive correlation because the q2 value exceeds zero; the results are shown in table 7. table 7. q-square model fit results discussion first, the results of this study reveal that organizational culture has a positive direct effect on sme performance, which in turn leads to higher firm performance. consequently, this study contributes to rbv-based management accounting research, in particular: the authors' research provides empirical evidence to strengthen the literature on the relationship of organizational culture to firm performance in smes. furthermore, the ability to innovate does not affect company performance, which is certainly contrary to the results of research by chia & koh (2007) and subramaniam & mia (2001). in addition, the results of management accounting information are also not significant to company performance. the results of this study provide empirical evidence that contradicts that stated by chenhall (2006). the author concludes that organizational culture is able to improve company performance through increased maintenance and development of sophisticated management accounting information systems that support managers' decision making, companies must also try harder with regard to corporate innovation. in such a way, this research has contributed to the management accounting literature by offering a more complete explanation of the antecedents and consequences of using management accounting information (chenhall, 2006; luft & perisai, 2003). second, the authors' results provide empirical evidence finding innovation capability has no effect on firm performance (financial and non-financial) for smes in south tangerang. under competitive pressure, companies must continuously innovate to satisfy customers and respond to competitors (calantone et al., 2002; helfat et al., 2007; keskin, 2006). currently, smes in south tangerang are not only competing with each other and with large companies, but also with powerful multinational companies, with no industry or sector that can escape these competitive pressures (otley, 2016). thus, the ability to innovate is one of the key drivers of the successful performance of smes (keskin, 2006), implying that smes must smes performance results information accounting management 0.005 weak innovation capabilities 0.354 middle organizational culture 1.116 strong q square results smes performance 0.339 > 0 fit tantri, m., et.al. (2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 95 increase continuous efforts to improve the quality and variety of their products and services, third, the results provide empirical evidence to support the effect of organizational culture on firm performance. these results imply that smes in south tangerang should improve their management accounting information systems to provide broad, timeless, aggregated, and integrated information to implement successful innovative strategies. in addition to traditional management accounting practices, smes must learn and adopt strategic management accounting practices such as activity-based costing and total quality management (cadez & guilding, 2008). in addition, companies also need to develop and maintain an organizational culture towards innovation that supports innovative and creative ideas (subramaniam & mia, 2001). conclusion this study has revealed a positive influence between organizational culture on company performance. meanwhile, the ability of innovation and management accounting information has no effect on company performance. this research has limitations. first, the sample size is quite small (n = 160) and may not be very representative of the population. second, this study does not include all control variables that can affect company performance. thus, further studies are requested to examine the impact of control variables such as size, company age, sector, ownership structure, and so on (see nguyen, 2018; nguyen & doan, 2016). third, this study uses cross-sectional data, which has the inevitable shortcoming of reflecting the evolution of management accounting information use and firm performance. the use of longitudinal data might also provide future directions for studies (luu, 2017). finally, although the authors have examined common method bias according to consistency with podsakoff et al. 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(2022). journal of business and behavioural entrepreneurship, 6(2), 82-103 103 introduction literature review results and discussion conclusion references 26 abstract this study aims to analyze the influence of integrity, professionalism, and innovation in order to encourage the achievement of good service performance. this study involved 207 people from 384 employees in seven kantor pelayanan perbendaharaan negara (kppn) in the regional office of the directorate general of treasury, jakarta province. the seven kppns were chosen because they have the same service user characteristics as other kppns and can represent kppns throughout indonesia. nationally, in terms of the budget managed and the number of work units served, more than half are served by the seven kppns. the average amount of the state budget managed by the seven kppns is 75.5% of all funds nationally. the technical analysis used is descriptive statistics and inferential statistics, with hypothesis testing tools using path analysis. the results of the study show that integrity has a positive and significant effect on service performance, professionalism has a positive and significant effect on service performance, innovation has a positive and significant effect on service performance, integrity positive and significant effect on innovation, professionalism positive and significant effect on innovation and integrity, professionalism, and innovation together have a positive and significant effect on service performance. this research provides evidence that integrity, professionalism, and innovation as elements of the ministry of finance values can create a bureaucracy that has good public service performance, so it needs to be continuously socialized and internalized to all employees of the ministry of finance. keywords: integrity, professionalism, innovation, service performance received: 26 november 2019 ; accepted: 31 january 2020 ; publish; june 2020. how to cite: suparjo., yohana, c., & akbar, m. (2020). the effect of integrity, professionalism, and innovation on service performance. journal of business and behavioural entrepreneurship, 4(1), 26-42. https://doi.org/10.21009/jobbe.004.1.03 the effect of integrity, professionalism, and innovation on service performance suparjo universitas negeri jakarta email: suparjo_im16s3@mahasiswa.unj.ac.id corry yohana universitas negeri jakarta email: corryyohana@unj.ac.id ma’ruf akbar universitas negeri jakarta email: maruf.akbar@unj.ac.id 27 introduction based on 2017 corruption perceptions index data released by transparency international, indonesia's score and ranking is still very low, even when compared to countries in the asean region. scores are calculated in the range 0-100, from highly corrupt to very clean. the greater the score obtained, the cleaner the country. indonesia is ranked 96th in the world with a score of 37, this shows that corruption in indonesia is still very high ("corruption perceptions index 2017," 2018). another institution, political & economic risk consultancy ltd (perc) conducted a survey of perceptions of corruption in asia plus the united states and australia. from the perc survey, indonesia has an index of 8.00 ("political and economic risk consultancy, ltd. data time series index," 2018). the closer the number 1 is, the cleaner the country is from corruption, while the closer it is to 10, the country is perceived as a country with a very high level of corruption. this shows that our country is still perceived as a country that has a very high level of corruption. this means that the institutional capacity of government in indonesia is still ineffective in providing services to the community. government is said to be effective if it is able to provide good quality services to the community and is supported by the quality of apparatus resources and good government policies. according to the world bank's definition, government effectiveness captures the perception of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the commitment to such policies ("wgi 2017 interactive> home," 2018). based on world bank releases, indonesia is among countries with weak government effectiveness, with a government effectiveness index of 0.04. indonesia ranks 84th in the world ("government effectiveness by country, around the world | theglobaleconomy.com," 2018). from the 3 surveys conducted by international institutions above, it indicates that indonesia has a problem with its government apparatus. the survey conducted by domestic institutions, the ombudsman of the republic of indonesia (ori) also produced similar conclusions. based on the compliance assessment report of the 2017 public service standards, of the 14 ministries surveyed, only 5 ministries or 35.17% entered with the title of high compliance, where the ministry of finance was ranked in the medium or yellow zone with a value of 75.25 ("indonesian ombudsman report research, "2018). even though the organizational unit surveyed by the ombudsman of the republic of indonesia is only 1 out of hundreds of organizational units in the ministry of finance, but it has become a warning for the ministry of finance to improve the quality of services as mandated by the bureaucratic reform. grand design of bureaucratic reform 2010-2025, mandated that bureaucratic reform ought to be able to support for the enhancement and work development of government bureaucratic. bureaucratic reform is expected to be able to realize public services in accordance with the expectations of the community. within the framework of bureaucratic reform, the ministry of finance has a strong commitment in improving public services. therefore, the ministry of finance has strengthened and improved the quality of public services, in order to increase public satisfaction with the services provided. to encourage improvements in the quality of public services, the ministry of finance improves employee attitudes and behavior by establishsuparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 28 ing organizational values. john r. schermerhorn (2010: 40) states that values can be defined as broad preferences concerning appropriate courses of action or outcomes. as such, values reflect a person's sense of right and wrong or what "ought" to be. according to edgar h. schein (2010: 13) in the managerial literature, there is often the implication that having a culture is necessary for effective performance, and that the stronger the culture, the more effective the organization. mcshane and von glinow (2010: 423) say that corporate culture strengths refer to how widely and deeply employees hold the company's dominant values and assumptions. in a strong organizational culture, most employees across all subunits understand and embrace the dominant values. these values and assumptions are also institutionalized through well-established artifacts, making it difficult to change the culture. organizational values can affect organizational performance in several categories (gorenak and kosir 2012). if employees are committed and have the same norms and values as those owned by the organization, it will improve performance to achieve organizational goals (shahzad et al. 2012). awadh and saad's research shows that the values and norms of an organization can influence employee performance (awadh and saad 2013). this study intends to analyze whether the application of the ministry of finance's values influences the achievement of the targets of bureaucratic reform, namely the performance of quality public services. ministry of finance values that will be used as research variables are integrity, professionalism, and innovation. integrity will encourage individuals and organizations to work based on ethics in order to maintain customer service, trust and satisfaction (betchoo, 2016: 125). professionalism is defined as we provide high quality professional advice and support services (armstrong, 2006: 54). service innovation and product innovation positively influences customer orientation (wang, zhao, & voss, 2016: 221-230). thus, this study will analyze the effect of integrity, professionalism, and innovation on service performance at the ministry of finance, with 7 kppn research sites in jakarta province. literature review kotler and lee (2008: 6) states that every community needs government, which has a very important role, namely determining community service standards, providing public services that are very important for the interests of the community. halley (2010: 109) says that now the government has pushed and introduced techniques and marketed in all aspects of public service. understanding service performance according to fitz-ens (2000: 74) is an effort to satisfy people's needs. according to kotler and keller (2012: 356), service is any action or performance that can be offered by one party to another party. according to parasuraman, zeitaml and berry (1985) in the book of operation strategy by james (2011: 25), service performance has 5 (five) dimensions, namely (1) reliabilitydelivery ok every time, (2) responsiveness-delivery quick service and respond quickly to problems, (3) assurance-employees delivering services should show competence, (4) empathy-employees demonstrate an effort to understand customer needs, and (5) tangiblephysical surroundings must be appropriate. organizations must be encouraged to always anticipate customer needs, recognize customer needs, and then meet what is needed by customers (cameron and green, 2009: suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 29 164). another way for service providers to successfully retain customers is by providing consistently high quality services compared to their competitors and by exceeding customer expectations (kotler, 2002: 206). according to rothmann and cooper (2008: 89), employees must have skills in service to customers needed to interact effectively with customers. organizations need the type of resources that will give them such advantages, namely employees who have high quality in providing services needed by customers (noe et al., 2014: 5). wagner and hollenbeck (2010: 50) say that companies increasingly compete on the dimensions of service quality. in the united states, employees who deal directly with customers become one of the fastest growing segments of the workforce. according to cameron and quinn (2006: 121) companies must manage customer service through maximum orientation on service to customers by involving them in developing services and trying to exceed the expectations and desires they ask for. according to ritson (2012: 59), there are 8 key characteristics of excellent organizations, one of which is closeness to customers. according to mcmanus (2006: 188), integrity comes from the same latin root (integrity) as the word integer, referring to a notion of completeness, wholeness, and uniqueness. tullberg (2012: 89-121), says that the word "integrity" comes from integer, meaning wholeness in latin. this wholeness can be described as internal consistency, combining beliefs, words, and actions. forster (2005: 45) says that the word 'honesty' comes from the latin honesty, meaning 'quality' or 'honor', and 'integrity' is derived from integra, meaning 'wholeness'. according to robbins and judge (2013: 389), integrity refers to honesty and truthfulness. integrity also means having consistency between what you do and say. mcshane and von glinow (2010: 362) states that integrity involves truthfulness and consistency of words and actions, qualities that are related to honesty and ethicality. according to schermerhorn et al. (2010: 307), integrity is a consistent behavior with espoused values; honest, ethical, trustworthy. according to hellriegel and slocum (2011: 36) integrity is acting consistently with principles, values, and beliefs; telling the truth; standing up for what is right; and keeping promises. luthan (2011: 421) states that integrity, which includes truthfulness and the will to translate words into de man. mcmanus (2006: 188) says that integrity, a moral virtue that encompasses the sum of a person's set of values and moral code. mondy and martocchio (2016: 162) states that integrity refers to being honest and ethical. according to betchoo (2016: 125), integrity and honesty are above all. if everyone in an organization has integrity and honesty, then there will be no room for corruption. integrity will encourage individuals and organizations to work based on ethics in order to maintain customer service, trust and satisfaction. pynes (2009: 331) defines integrity as an act that instills mutual trust and confidence, creates a culture that fosters high ethical standards, behaves fairly, and is ethical towards others and shows a sense of responsibility and corporate commitment to public services. employee integrity is one of the personal behaviors that can be measured and felt through interactions between employees and customers. according to mccarthy (2016: 118) most services require direct personal interaction with customers. this interaction greatly affects customer satisfaction and customer perceptions of service quality. the findings of paul m. heywood's study state that we can no longer depend on oldfashioned public service values, ethical values and traditions in the public sector in the uk suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 30 must be institutionalized. (heywood, 2012: 474-493). similarly, the results of jan tullberg's research concluded that integrity can be a useful concept for a number of problems in business ethics and organizational theory. integrity is not only about following norms and values but also about deciding which norms and values to follow (tullberg, 2012: 89121). yusnaena and syahril's research concluded that there was a significant influence between employee integrity on employee performance (yusnaena & syahril, 2013 : 186191). professionalism comes from the words profession and professional. profession is defined as a job that requires an advanced skill, skill, and knowledge, whereas, professionals relate to any person or job carried out by a profession that requires expertise, skills, and knowledge (naagarazan, 2006: 29). according to armstrong and taylor (2014: 50) professionalism, is the status of a professional which implies certain attitudes or typical qualities that are expected of a professional. according to macintyre, professionalism is defined as the service related to achieving the public good, in addition to the practices of the knowledge of moral ideals. armstrong (2007: 87) states that a broader definition of professionalism is a specific skill set in accordance with standards recognized behavior. professionalism demands high performance standards that are demonstrated by enforcing performance standards and adhering to established values and codes of conduct. noe et al. (2014: 21) says that professionalism requires skills and knowledge in decision making. according to snell and bohlander (2013: 7) corporate leaders increasingly understand that professional employees can help them increase not only company profits, but also predict trends, design new ways, and help managers enter new markets. polynes (2009: 272 ) states that professional employees carry out work of a predominantly intellectual nature. professional employees perform tasks that require advanced knowledge obtained through specialized training. burnham and bradbury (2003: 2) say that one of the characteristics of professionalism is a commitment to work of the very highest stands. professionalism is also applied in the public service sector. professional bureaucracy is expected to provide good services for the community. according to griffin and moorhead (2014: 476) professional bureaucracy is characterized by horizontal specialization according to the area of professional expertise, small formalization, and decentralized decision making. according to daft (2010: 29), the main purpose of professional bureaucracy is in order to improve quality and effectiveness. according to schermerhorn et al. (2010: 408), professional bureaucracy emphasizes horizontal specialization, extensive use of personal coordination, with looser rules, policies, and procedures. professionalism in the public service sector is expected to improve good services for the community and all stakeholders. according to james (2011: 41), the emphasis on professional services is services that operate with high variations, characterized by high levels of adjustment, where each service will be adjusted to meet customer needs and tastes. noe et al. (2014: 38) states that employees who have responsibility for the final service must be able to listen to customers, adapt to changing needs, and creatively solve various problems. thus, a professional must be able to demonstrate expertise and high quality in providing services. not a few organizations that put professionalism as one of their values. armstrong (2006: 54) explains that one of the values of the scottish parliament is professionalism. professionalism is defined as we provide high quality professional advice and support services. suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 31 moreover, idrissova aliya shegenovna's research led to the conclusion that professionalism of public service employees is a major and important factor in the modernization process in kazakhstan (shegenovna, 2014: 247-250). saalami issa afegbua's research in nigeria has concluded that the root causes of inefficiency and bureaucratic ineffectiveness are manifested in bad public services to the community because of the absence of professional public officials (afegbua, 2015: 104). the results of kyoung joo lee's research present practical implications regarding the values of professionalism to improve service quality and ability of frontline employees (lee, 2014: 140-148). the research conducted by (kustianingsih, karim, & zulfiani, 2018: 7239-7252), ( mandey, mandey, & tulusan, 2015: 1-11), (dewi, wasiati, & azhari, 2013: 1-8), (tamrin, rumapea, & mambo, 2017: 1 -9), and (ilahuhe, pesoth, & tampongangoy, 2015: 1-13) concluded that professionalism has a strong and significant relationship to public services. according to robbins and judge (2013: 593) innovation is a new idea applied to initiating or improving a product, process, or service. schermerhorn et al. (2010: 376) says that innovation is the process of creating new ideas and putting them into practice. innovation is a means for creative ideas to find their way into daily practice. according to griffin and moorhead (2014: 507-508), innovation is the process of creating and doing new things. according to armstrong (2007: 357) innovation is always associated with continuous improvement, through the development of new ideas and approaches to deal with the problems and needs that are needed. armstrong and taylor (2014: 161) states that in innovation, organizations encourage change and creativity, including taking risks to new things even though members of the organization do not have or have little prior experience. according to kenny (2005: 118) innovation is to develop a breakthrough approach. according to engelbrecht (2016: 21), in an environment where companies are unable to compete solely on price, organizations need creativity and innovation to compete. according to axson (2010: 12), the combination of savings and rapid growth in services encourages innovation. according to whalley (2010: 21), at the most fundamental level, companies create competitive advantage by understanding or finding new and better ways to compete. furthermore, innovation is a business process that must be passed by the organization. innovation is intended to develop new business models or change existing ones and aims to get an overview of the business problems facing organizations, which lead to plans to deal with these problems (armstrong and taylor, 2014: 162). why innovation is important, schermerhorn et al. (2010: 384), conveyed the reason for the importance of innovation, innovation is the process of creating new ideas and then applying them in practical applications. innovations produce better goods or services. innovations produce better methods and work operations. according to robbins and judge (2013: 497) to realize a successful innovation process, it is necessary to develop an innovation strategy that emphasizes the introduction of new products or services. so that organizations can provide maximum service to customers, then leaders are required to have an innovative spirit. according to pynes (2009: 330) organizational leaders must develop new insights to deal with various situations and implement innovative solutions to make organizational improvements. according to cameron and quinn (2006: 121) managing innovation is encouraging individuals to innovate, expanding alternatives, becoming more creative, and facilitating the discovery of new ideas.  building competitiveness by building convergence of business strategy and hr strategy.  https://doi.org/10.21009/jobbe.004.1.02 suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42) 32 daft (2010: 412) said that organizations are required to always be open to sustainable innovation, not just looking for profits, even to survive in the midst of change and intense competition. according to berman (2006: 89) in the quality paradigm, organizations invite managers to think broadly about customer service and needs, and thinking ahead to develop innovative approaches to improve service delivery. according to noe et al. (2014: 42) to improve quality, organizations need an environment that supports innovation, creativity, and risk taking to meet customer demand. schermerhorn et al. (2010: 377) stated that basically innovation is to produce new or better goods or services to better meet customer needs and improve service. research by qiang wang, xiande zhao, and chris voss, concludes that customer orientation positively influences service innovation and product innovation (wang, zhao, & voss, 2016: 221-230). research by yen hao hsieh and yun hsuan chou concluded that service innovation can improve business performance, facilitate the creation of new business value, and increase competitive strength (hsieh & chou, 2018: 84-102). research on public transport in zurich and singapore proves the relationship between service innovation and value creation in service systems (sebhatu, johnson, & enquist, 2016: 269275). the research of putu sukarmen, andi sularso, and deasy wulandari proved that product innovation has an influence on consumer satisfaction and competitive advantage (sukarmen, sularso, & wulandari, 2013: 64-79). research method the study was conducted from march 2018 to may 2019. the research method used was an associative quantitative method using survey instruments. lancaster (2005: 146) states that collecting data through questionnaires is the main method used in survey research. some circles consider that survey research is a research methodology that is close to the truth. populations used as sample frame are all employees in seven kppns in jakarta province. employees' data as of 1 april 2019 were 343 employees. based on the isaac and michael formula, samples of 182 people were obtained. employees who filled out the questionnaire only 177 people plus 30 employees who filled the instrument test questionnaire, then the entire study sample was 207 people. the analytical tool used in this research is path analysis. it was chosen because it is in accordance with the problems and objectives of the study, which is to find out the influence of the variables studied. kadir (2016: 239) explains that path analysis is a statistical technical used to test the causal relationship between two or more variable. the data analysis technique used is technical analysis in the form of descriptive statistics and inferential statistics. descriptive statistics aim to obtain information about the characteristics of the variables studied. the analysis produced the data on average scores, mode, median, standard deviation, and frequency distribution. inferential statistics are used to test analysis requirements and hypotheses. before testing hypotheses, testing of analysis requirements is first performed, such as normality test, linearity test and homogeneity test. based on the framework of thinking developed by the exogenous variables in this study are integrity and professionalism while endogenous variables are innovative and service performance. to measure and examine variables, indicators are needed as insuparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 33 termediaries that can be represented as measurement instruments. based on the various literatures, indicators of these variables are compiled as in table 1. table 1 research variables and indicator results and discussions the study involved 207 respondents from 7 kppns in jakarta province, which consisted of 123 male and 84 female employees. the highest education level of respondents is graduate as many as 33 people. educated under-graduate are as many as 94 people, bachelor is as many as 42 people and senior high school/diploma is as many as 38 people. the most respondents work period is the group of 16-25 years with 75 respondents, followed by the group of 5-15 years with 72 respondents, over 25 years is as many as 52 respondents and less than 5 years is as many as 8 people. on average, the respondent's working period is 17.1 years. from this position, 41 respondents were structural officials and 166 respondents were staff. before testing hypotheses, three testing requirements of the analysis are carried out first, namely the normality test of the estimated error distribution, linearity analysis of regression equations, and analysis of significance. testing of the analysis requirements must be met so that path analysis can be applied to hypothesis testing. path analysis requires samples in the study to be taken from populations with a normal distribution and have a significant and linear relationship between variables. the normality error distribution test is used to prove the estimated error (error) has a normal distribution. significance analysis proves that the relationship between variables has been significant. linearity analysis to prove the regression equation between variables has been linear. after testing, it is proven that the normality error disvariabel indicator sources service performance customer satisfaction, proactive, and fast response (cameron and green, 2009:164), (kotler, 2002:206), rothmann and cooper (2008:89), cameron and quinn (2006:121), ritson (2012:59) integrity be honest, sincere, trustworthy, maintain dignity and don't do despicable things mcshane and von glinow (2010:362), hellriegel and slocum (2011:36), luthan (2011:421), mcmanus (2006:188), mondy and martocchio (2016:162), betchoo (2016:125) professionalism have extensive expertise and knowledge, work with high commitment, full responsibility armstrong and taylor (2014:50), naagarazan, (2006:29), noe et al. (2014:21), burnham and bradbury (2003:2), armstrong (2007:87), pynes (2009:272), james (2011:41) innovative continuous improvement and developing creativity griffin and moorhead (2014:507-508), armstrong (2007:357),kenny (2005:118), engelbrecht (2016:21), armstrong and taylor (2014:161), robbins and judge (2013:497), cameron and quinn (2006:121), daft (2010:412) suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 34 tribution requirements have been fulfilled. after the significance test has been proven, the relationship between variables has been significant. likewise, after the linearity test has been proven, the regression equation between variables has been linear. after all the testing requirements of the analysis have been completed and have fulfilled the requirements, testing the research hypothesis using path analysis. according to ghozali & fuad (2014: 145), there are two fundamental and important issues that must be considered in social research and behavior. the first problem is related to measurement, namely the validity and reliability of measurement instruments, the second problem is the relationship between one variable with another variable. almost all research models in social science and behavior are formulated in the form of hypotheses or constructs or variables that cannot be measured directly. to measure and examine constructs or latent variables that cannot be done directly, we need indicators as intermediaries that are expected to represent as measurement instruments for latent variables. to illustrate how well these indicators can be used as instruments for testing hypotheses, avoiding estimates that exceed acceptable limits, and for assessing the suitability and feasibility of the model made, it is necessary to conduct several analyzes, namely confirmatory factor analysis, offending estimate analysis, goodness analysis of fit, and structural model analysis. confirmatory factor analysis is a measurement model used to test whether the indicator used is a valid indicator as a measure of latent variables. the indicators used are as in table 2. table 2 indicators of latent variables observation variables or manifest variables or indicators that are feasible to be used as operational on constructs or latent variables must have a loading factor greater than 0.5 so that the model used has a good fit. (hair, black, babin, & anderson, 2014: 618). according to latan (2012: 46-47), the rule of thumb that is usually used to assess convergent validity is the factor loading value must be more than 0.7 for confirmatory research and factor loading values between 0.6 0.7 for the research that is exploratory nature is still acceptable and the value of average variance extracted (ave) must be greater than 0.5. to complete our measurement of manifest variables as good indicators, which have good compatibility and validity, it is necessary to test using t-values latent variable indicator (manifest variable) (y) service performance (y11) orientation on customer satisfaction (y12) proactive quick response (x1) integrity (x11) be sincere, honest, trustworthy (x12) maintaining self-dignity, not doing despicable thing (x2) professionalism (x21) having extensive expertise and knowledge (x22) work with high commitment, full responsibility (x3) innovative (x31) continual improvement (x32) develop creativity suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 35 measurements. to get a good measurement, t-count must have a value greater than the critical value of 1.96. based on data processing using lisrel 8.80, the cfa test results are as in table 3. table 3 cfa measurement results based on table 3, it can be concluded that all manifest variables have good compatibility and validity as indicators to describe latent variables. all questionnaires from all variables, integrity, professionalism, innovation, and service performance, are acceptable or valid because they have a good match. all loading factor values above 0.70 are even close to 1.00 and the t-value is greater than t-table (1.96). to test the reliability and feasibility of a model, it is tested by construct reliability and variance extracted calculations. according to latan (2012: 47-48), the rule of thumb used to assess construct reliability is that the composite reliability value is greater than 0.7 for confirmatory research and 0.6 0.7 values are still acceptable for research that is exploratory. the results of calculations using lisrel 8.80, can be seen the value of structural reliability and variance extracts as table 4. table 4 results of construct reliability and variance extracted calculations variable indicator loading factor t value explanation integrity (x2) x11 0.96 18.09 accepted x12 0.79 13.46 accepted professionalism (x3) x21 0.95 17.99 accepted x22 0.87 15.64 accepted innovative (x4) x31 0.97 18.77 accepted x32 0.88 15.99 accepted service performance (y) y11 0.92 16.77 accepted y12 0.87 15.52 accepted suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 variable standard loading error construct reliability variance extracted ∑ std. loading (∑ std. loading)² ∑ error nil ai c r standard loading² ∑ (std. loading)² ve value integrity (x2) x21 0.96 0.07 1.75 3.06 0.4 4 0.87 0.92 1.55 0.78 x22 0.79 0.37 0.62 professionalism (x3) x31 0.95 0.10 1.82 3.31 0.3 4 0.91 0.90 1.66 0.83 x32 0.87 0.24 0.76 innovative (x4) x41 0.97 0.06 1.85 3.42 0.2 8 0.92 0.94 1.72 0.86 x42 0.88 0.22 0.77 service performance (y) y11 0.92 0.16 1.79 3.20 0.4 0.89 0.85 1.60 0.80 y12 0.87 0.24 0.76 36 based on the table above, the indicators of all latent variables have the above calculated value t, which means all indicators are valid, so there is no need to remove indicators. from the reliability calculation, all measurement models have construct reliability (cr) above 0.70 and variance extracted (ve) values above 0.50. so it was concluded that all variables were good. offending estimation analysis is needed to avoid estimation values that exceed acceptable limits. two criteria are used, namely there are no negative error variances and standardized loading factor values which is from 0.5 to 1. based on processing using lisrel 8.80, all error variances have positive values. all loading factor values have values from 0.5 to 1. so it is concluded that the model has avoided estimation values that exceed the acceptable limits (offending estimates), thus testing can proceed. the results of the examination of the offending estimates are explained in table 5. table 5 results of examination of offending estimates to see the suitability between theoretical and empirical data and to test the extent of the relationship model between variables arranged based on theoretical basis has been supported by reality, a goodness of fit (gof) test was conducted. goodness of fit is an indication of the comparison between models and covariance between indicators. if the goodness of fit produced by a model is good, then the model can be accepted, while if the resulting goodness of fit is not good, then the model must be rejected. the results of processing using lisrel 8.80 are presented in table 6. indicator standard error >0.00 standard loading 0.5-1.0 x11 0.07 0.96 x12 0.37 0.79 x21 0.10 0.95 x22 0.24 0.87 x31 0.06 0.97 x32 0.22 0.88 y11 0.16 0.92 y12 0.24 0.87 suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 37 table 6 goodness of fit testing research models based on the table, 13 of the 15 criteria have met the criteria for goodness of fit. to assess the feasibility of a model, we can only use 4-5 goodness of fit criteria. that many criteria are considered sufficient to meet the eligibility requirements of a model. the use of 4-5 goodness of fit criteria is considered sufficient to assess the feasibility of a model, provided that each criterion of goodness of fit namely absolute fit indices, incremental fit indices and parsimony fit indices are represented (hair et al. in latan, 2012: 49) . after all testing of the analysis requirements, the suitability and feasibility of the model is done with the results that meet the requirements, continued testing of the structural model. testing is done to assess the relationship between variables arranged in the research hypothesis. the results of calculations using lisrel 8.80 generate path diagrams as figure 1. no goodness of fit measure critical value (cut off value) results evaluation 1 chi square (x 2 ) small value 66.98 marginal fit 2 p-values p ≥ 0,05 0.00 3 ncp small value 41.98 good fit 4 interval narrow interval 21.43 ; 70.18 5 rmsea ≤ 0,08 0.08 marginal fit 6 ecvi small value approaching ecvi saturated value m* =0.62 s* =0.53 i*=21.37 good fit 7 nfi ≥ 0,90 0.98 good fit 8 nnfi ≥ 0,90 0.98 good fit 9 cfi ≥ 0,90 0.99 good fit 10 ifi ≥ 0,90 0.99 good fit 11 rfi ≥ 0,90 0.97 good fit 12 cn ≥ 200 124.03 not fit 13 srmr ≥ 0,05 0.022 not fit 14 gfi approaching 1 0.94 good fit 15 agfi approaching 1 0.87 marginal fit suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 38 figure 1 structural model (estimates) based on the picture above, all coefficients have a positive value, which means all variables have a positive correlation. the coefficient of the relationship between variables appears in table 7. table 7 correlation coefficient values between variables studied while the results of testing the model using t-values through the lisrel 8.80 application in the diagram are drawn as figure 2. no variable relationship coefficient value explanation 1 integrity in service performance 0,46 positive 2 professionalism in service performance 0,25 positive 3 innovative towards service performance 0,28 positive 4 integrity towards innovation 0,10 positive 5 professionalism towards innovation 0,73 positive suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 39 figure 2 structural model (t-values) figure 2 shows that all path coefficients have significant values; with t-values greater than t-tables (1.96). the lisrel 8.80 application summarizes figure 1 and figure 2 in the following output: the first structural equation shows that integrity has an influence on innovation of 0.10 with a standard error of 0.050. the effect is significant, because t-test has a value of 2.03. the t-value is greater than t-table 1.96. the variable professionalism has an influence on innovation by 0.73 with a standard error of 0.068. the effect is significant, because t-test has a value of 10.74. the t-value is greater than t-table 1.96. based on the structural equation, the effect of integrity and professionalism on innovation is 84%, while the remaining 16% is influenced by other factors, as seen from the determinant coefficient (r2) of 0.84. the second structural equation shows that integrity has an influence on service performance of 0.46 with a standard error of 0.063. the effect is significant, because ttest has a value of 7.34. the t-value is greater than t-table 1.96. the variable professionalism has an influence on service performance by 0.25 with a standard error of 0.12. the effect is significant, because t-test has a value of 2.03. the t-value is greater than t-table 1.96. the innovative variable has an effect on service performance of 0.28 with a standard error of 0.13. the effect is significant, because t-test has a value of 2.15. the t-value is greater than t-table 1.96. based on the equation, the effect of inov = 0.10*intg + 0.73*profe, errorvar.= 0.18 , r² = 0.84 (0.050) (0.068) (0.033) 2.03 10.74 5.36 kp = 0.46*intg + 0.25*profe + 0.28*inov, errorvar.= 0.24 , r² = 0.77 (0.063) (0.12) (0.13) (0.045) 7.34 2.03 2.15 5.37 suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 40 integrity, professionalism, and innovation on service performance is 77%, while the remaining 23% is influenced by other factors, as seen from the determinant coefficient (r2) of 0.77. summary of the results of hypothesis testing using the lisrel 8.80 application is shown as in table 8. table 8 results of testing the hypothesis of research models the sixth hypotheses test (h6), whether there is a joint effect of integrity, professionalism and innovation on service performance, using multiple linear regressions through the f test. table 9 simultaneous f test the significant test results above show the sig. of 0,000. this means that for a significance level of 0.05 two tailed the effect is significant. while, for testing with the f test is carried out by comparing the values of f table with f count. based on the test results, the fcount value of 147,550 is greater than the ftable value of 2,649. so it can be concluded that the integrity, professionalism, and innovation variables simultaneously affect the service performance. conclusion based on the analysis conducted, it can be concluded, first, integrity has a significant influence on service performance. this result proves the theory that employees who have integrity will always have a great responsibility and commitment in providhypothesis hypothesis statement t-value explanation h1 the direct influence of integrity on service performance 7,34 data supports the hypothesis h2 the direct influence of professionalism on service performance 2,03 data supports the hypothesis h3 the direct influence of innovation on service performance 2,15 data supports the hypothesis h4 the direct influence of integrity on innovation 2,03 data supports the hypothesis h5 the direct influence of professionalism on innovation 10,74 data supports the hypothesis anova b model sum of squares df mean square f sig. 1 regression 7080.290 3 2360.097 147.550 .000 a residual 3247.024 203 15.995 total 10327.314 206 a. predictors: (constant), innovation, integrity, professionalism b. dependent variable: service performance suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 41 ing public services (pynes, 2009: 331). yusnaena and syahril's research concluded that there was a significant influence between employee integrity on employee performance (yusnaena & syahril, 2013 : 186-191). second, professionalism has a significant influence on service performance. this result proves the theory which states that professionalism is an employee who is able to demonstrate expertise and high quality in providing services (armstrong, 2006: 54). the results of kyoung joo lee's research present practical implications regarding the values of professionalism to improve service quality and ability of frontline employees (lee, 2014: 140-148). third, innovation has a significant influence on service performance. this result proves the theory that states that innovation is used by organizations in improving service quality (berman, 2006: 89). research by yen hao hsieh and yun hsuan chou concluded that service innovation can improve service satisfaction, business performance, facilitate the creation of new business value, and increase competitive strength (hsieh & chou, 2018: 84 -102). fourth, integrity has a significant influence on innovation. this result proves the theory that employees with integrity are employees who have high commitment and can be relied upon, which always make improvements continuously through various innovations to improve optimal service to its customers (folkman, 2006: 36) and (armstrong, 2006: 54). fifth, professionalism has a significant influence on innovation. this result proves the theory that employees who have high professionalism will improve their skills and abilities at work. tight competition and very high demands from customers encourage employees to make various innovations in order to improve optimal service to their customers (noe et al., 2014: 38). sixth, integrity, professionalism, and innovation simultaneously have an influence on service performance. this means that when integrity, professionalism, and innovation change, it causes a significant change in service performance. recommendation based on the conclusion of the study, the researcher recommends first, integration is proven to have a positive and significant effect on service performance and innovation. the results of the research questionnaire were also proven to be in accordance with the results of a service user satisfaction survey conducted by gajah mada university which showed that the integrity of the ministry of finance employees was very good. ministry of finance employees always face a high temptation to violate the law, so integrity must remain a concern. organizations must continue to internalize and disseminate the importance of integrity to all employees. internal control systems must be able to easily detect possible violations. second, professionalism is proven to provide positive and significant influence on service performance and innovation. to maintain these conditions, employees of the ministry of finance must always maintain and improve professionalism. educating and developing training to improve employee competencies and capabilities must be adjusted to the development and best practices. knowledge management of experience and best practice must be developed to enhance professionalism. secondment programs at similar agencies can be carried out. third, innovation is proven to have a positive and significant influence on service performance. organizations must encourage and facilitate employees to carry out various innovations, both in the form of creativity and improvements for the organization. the main task of the government apparatus is provide the best service for the satisfaction of stakeholders, then innovation to improve services needs to be encouraged. the ministry of finance needs to design an award that appeals to organizations and employees that produce innovation. fourth, values of the ministry of finance are proven to ensuparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 42 courage the achievement of bureaucratic reform targets, namely creating a bureaucracy that is able to serve the public in high quality must continue to be socialized and internalized to all employees. values that have been translated into everyday practical policies as stipulated in the minister of finance regulation number 190 2018, it must be carried out consistently as standards and code of conduct for all employees and periodically must be evaluated. references afegbua, s. i. (2015). professionalization and innovations in nigerian public service: how far the dream of success? africa’s public service delivery and performance review, 3(2), 104. https://doi.org/10.4102/apsdpr.v3i2.82 armstrong, m. (2006). performance management: key strategies and practical guidelines (3rd ed). london: kogan page. armstrong, m. (2008). strategic human resource management: a guide to action (4. ed). london: kogan page. armstrong, m. (2012). armstrong’s handbook of reward management practice improving performance through reward (4th ed.). london: kogan page. armstrong, m., & taylor, s. (2014). armstrong’s handbook of human resource management practice (13. ed). london: kogan page. arundel, a., bloch, c., & ferguson, b. (2019). advancing innovation in the public sector: aligning innovation measurement with policy goals. research policy, 48(3), 789– 798. https://doi.org/10.1016/j.respol.2018.12.001 awadh, a. m., & saad, a. m. (2013). impact of organizational culture on employee performance. international review of management and business research, 2(1), 168– 175. axson, d. a. j. (2010). best practices in planning and performance management: radically rethinking management for a volatile world (3rd ed.). new jersey: john wiley & sons. berman, e., m. (2006). performance and productivity in public and nonprofit organizations (2nd ed.). https://doi.org/10.4324/9781315701820 betchoo, n. k. (2016). public sector management: a millenial insight. bookboon.com. bhagat, r. s., & steers, r. m. (eds.). (2009). cambridge handbook of culture, organizations, and work. cambridge: cambridge univ. press. bianchini, s., & pellegrino, g. (2019). innovation persistence and employment dynamics. research policy, 48(5), 1171–1186. https://doi.org/10.1016/j.respol.2018.12.008 burnham, j. b., & bradbury, i. (2003). performance management manual creating a culture for sustainable high performance. london: pearson education limited. cameron, e., & green, m. (2009). making sense of change management: a complete guide to the models, tools & techniques of organizational change (2nd ed.). philadelphia: kogan page limited. cameron, k. s., & quinn, r. e. (2006). diagnosing and changing organizational culture: based on the competing values framework (revised). retrieved from http:// doi.wiley.com/10.1111/j.1744-6570.2006.00052_5.x corruption perceptions index 2017 transparency international. (2018, february 22). retrieved february 22, 2018, from https://www.transparency.org/news/feature/ corruption_perceptions_index_2017#table daft, r. l. (2010). organization theory and design (10th ed.). natorp boulevard, mason: south-western cengage learning. dessler, g., & huat, t. c. (2009). human resource management: an asian perspective (2nd ed.). singapore: pearson education south asia. suparjo., yohana, c., & akbar, m. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (26-42)  the effect of integrity, professionalism, and innovation on service performance  https://doi.org/10.21009/jobbe.004.1.03 https://doi.org/10.4102/apsdpr.v3i2.82 https://doi.org/10.1016/j.respol.2018.12.001 https://doi.org/10.4324/9781315701820 https://doi.org/10.1016/j.respol.2018.12.008 http://doi.wiley.com/10.1111/j.1744-6570.2006.00052_5.x http://doi.wiley.com/10.1111/j.1744-6570.2006.00052_5.x https://www.transparency.org/news/feature/corruption_perceptions_index_2017#table https://www.transparency.org/news/feature/corruption_perceptions_index_2017#table 27 abstract every government internal supervisory apparatus aims to improve performance through organizational culture. the purpose of this study is analyzing the influence of organizational culture on the performance of government internal supervisors in the national indonesian navy. this research use quantitative study by using the path analysis method with a sample of 96 government internal supervisors. the results of the study show that there is a direct influence of organizational culture on performance. thus, the national indonesian navy should put more attention regarding the organizational culture including discipline, efficiency, ethics, scope of work, work orientation and work implementation instructions. keywords: organizational culture, performance national indonesian navy received: 19 july 2019 ; accepted: 1 august 2019 ; publish: october 2019. how to cite: harijono, s. n. t., tunas, b., hamidah, h.. (2019). the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy. journal of business and behavioural entrepreneurship, 3(1), 27-32. https://doi.org/10.21009/jobbe.003.1.03 the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy soetjahjo niti tisno harijono universitas negeri jakarta, indonesia e-mail: soetjahjoniti_im12s3@mahasiswa.unj.ac.id billy tunas universitas negeri jakarta, indonesia e-mail: tunas.billy@gmail.com hamidah universitas negeri jakarta, indonesia e-mail: hamidah@unj.ac.id 28 introduction today's demands by filling in various sources of disciplines that have been owned, reflecting on the experience that has been carried out and the dense schedule of supervision and the extent of performance in carrying out tasks. government internal supervisory apparatus (apip) is a government agency that has the main task and function of carrying out supervision. the study sample used 96 apip personnel to first use 30 apip personnel to test the data questionnaire, the results obtained as follows: 1. assessment that did not change as many as 15 apip personnel or 50%; 2. the judgments that experienced changes were 15 apip personnel or 50%. facing these conditions, apip is required to be able to overcome the mismatch of daily tasks by prioritizing the main tasks and functions that can improve performance with organizational culture, job satisfaction, motivating, and trust. according sarmaz and iiic (2016), organizational culture should be cultivated, set in the fuction of company’s success, but its negative impact should be avoided. identification of the problem, nothing the potential factors for the existing performance in the navy's apip. these factors include internal and external factors, by prioritizing basic tasks and functions. based on the identification of the problem, this research can be formulated, whether the organizational culture has a direct effect on performance. theoretical description performance is a value of a set of employee behaviours given to the agency where they work. according to colquit, lepine, and wesson, (2009), performance is the value of a set of employee behaviours that have been contributed positively and negatively to meet organizational goals. organizational culture, organizational culture grows because it was created and developed by individuals who work in an organization that is accepted as values that must be maintained and passed on to each new member. luthan (2011), some of the important characteristics of organizational culture are observed behavioural regularities, norms, dominant values, philosophy, rules, and organizational climate. although everyone in an organization will share the organization’s culture, not all may do so to the same degree. relevant research, to be able to support this research by reflecting on previous relevant research. according to amin nikpour (2017), it shows that organizational culture has a positive and significant impact on organizational performance. theoretical framework, organizational culture grows because it was created and developed by individuals who work in an organization that is accepted as values that must be maintained and passed on to each new member. according to luthans (2011), ethics is involved with moral issues and choices and deals with right and wrong behaviour. a number of cultural (family, friends, neighbours, education, religion, and the media), organizational (ethical codes, role models, policies and practices, and reward and punishment systems), and external forces (political, legal, economic, and international developments) help determine ethical behaviour. these influences, act interdependently, serve to help identify and shape ethical behaviour in today’s organizations. there is increasing evidence of the positive impact that ethical behaviour and corporate social responsibility programs have on “bottom-line” performance. performance of individual performance that has been contributed positively to complete the organizational goals, namely: the implementation of routine and additionharijono, s. n. t., tunas, b., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (27-32)  the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy.  https://doi.org/10.21009/jobbe.003.1.03 29 al tasks, efforts to improve the organization, willingness to exceed the assigned tasks, the ability to provide a positive image of the organization, the willingness to provide relevant information, the ability to maintain good behaviour. according to salihu, adam jiddah, salihu, muhammad bello rayyan & musa idris umar (2016), management must focus more on adherence to the organization's mission by ensuring that they are in leadership positions that are well versed in the organization's mission so that they can pass on to their subordinates, likewise, management must work on ethical practices from organizations such as credibility and integrity that promote a highperformance culture. based on the description above, it is suspected that there is a direct influence of organizational culture on performance. based on the theoretical study that underlies the variables of this study and the thinking framework described above, the hypothesis can be proposed namely: h1: it is assumed that there is a direct influence of organizational culture on performance. this study aims to obtain empirical data, facts, valid and reliable information about the influence of organizational culture, the internal control officer. this study specifically aims to find out about the direct influence of organizational culture on performance. research takes place at the inspectorate of the navy headquarters. research methods using quantitative approaches with survey methods. aim to find out and find the momentary position of the variable (qua status variable) based on the data at the time (qua status data) and the relationship between the variables studied. population and sampling. the sample used in the study was taken randomly and the sample size was taken proportionally. data collection techniques, as long as the research is conducted with observations and questionnaire methods used quantitatively, the data needed for this study include primary data and secondary data. primary data is obtained by distributing questionnaires to qualified personnel on material about organizational culture and performance. research instruments; 1. performance variables; a. conceptual definition, performance is the performance of a set of workforce behaviours that have been positively contributed; b. operational definition, performance is a work set of labor behaviors that have been positively contributed by the navy's apip to be assessed by the leader. with performance indicators, namely: a routine task implementation; b additional assignment; c discuss the improvement of the organization and the willingness to carry out tasks more than specified; d willingness to give a positive image of the organization; e willingness to help; f willingness to inform relevant matters; and g the ability to maintain good behavior; c. grid of performance instruments, item questions with 5 alternative answers: a = always; o = often; s = sometimes, r = rarely; n = never. the statement is worth a = 5; o = 4; s = 3, r = 2; n = 1.; d. validation testing and instrument reliability calculations performance variables. test the validity of the instrument, pearson product moment correlation test and reliability test instrument performance research, by looking at the alpha coefficient (cronbach alpha), using spss software version 22. 2. organizational culture variable; a. conceptual definition, organizational culture is a system of values that are believed, understood, agreed upon, and applied to all employees / personnel to know the relationship between rules, norms, and shared values; b. operational definition, organizational culture is the perception of apip on harijono, s. n. t., tunas, b., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (27-32)  the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy.  https://doi.org/10.21009/jobbe.003.1.03 30 organizational cultural values closely related to the rules, norms, and values shared by the navy's apip. with indicators of organizational culture: a main value of the agency (discipline and efficiency); b agency norms (ethics and scope of work); c agency regulations (job orientation and work implementation instructions); c. instrument grid, item questions with 5 alternative answers: sa = strongly agree; a = agree; no = no opinion, d = disagree; sd = strongly disagree. statements worth sa = 5; a = 4; no = 3, d = 2; sd = 1.; d. validation testing and instrument reliability calculations performance variables. test the validity of the instrument, pearson product moment correlation test and reliability test instrument performance research, by looking at the alpha coefficient (cronbach alpha), using spss software version 22. analysis techniques, using data analysis with descriptive statistical analysis and inferential statistics. statistical hypothesis. based on the research hypothesis, statistical hypotheses can be formulated, namely, organizational culture (x) has a direct effect on performance (y). h0 : βy1 ≤ 0 ; h1 : βy1 > 0 analysis the results of research which includes a description of the data in each research variable, testing requirements analysis, testing the research hypothesis, and discussing the results of the study and the limitations of the study. descriptions of research data, data collected in this study are data from four variables, including performance (y) as endogenous variable, organizational culture (x), as exogenous variables.; 1. performance (y), using 96 respondents of the study, before the research was carried out the test items were first conducted to 30 respondents by giving 30 questions, but 28 valid results were obtained.; 2. organizational culture (x), using 96 respondents, before the research was carried out the test items were first conducted to 30 respondents by giving 30 questions, but there were 27 valid questions. analysis requirements, before the data is analyzed further, to test hypotheses based on existing data, several test requirements for analysis need to be conducted. testing the analysis requirements for path analysis is the relationship between variables in the model must be linear, so that the regression equation meets the analysis requirements.; 1. normalization test, regression estimation error test y over x produces the maximum lcount price of 0.0864 while ltable at the level of α = 0.05 obtained at 0.0904 turns out that lcount < ltable or 0.0864 < 0.0904. thus, it can be concluded that the estimation error y on x is normally distributed. ;2. regression significance test and linearity and correlation test, produced as follows: a. regression equations performance of organizational culture y = 60.758 + 0.545 x, obtained fcount = 59.564. while ftable at α = 0.05 and dk = 1/94 obtained 6.90, so fcount > ftable or 59.564 > 6.90 thus, it can be stated that the regression coefficient is very significant; b. linear test results, obtained fcount = 1.160 after confirming the ftable at α = 0.05 with dk = 32/62 obtained 1.58 it turns out fcount < ftable or. 1.160 < 1.58 thus, it can be concluded that the regression equation is linear. c. correlation coefficient ry1 = 0.623, ttest obtained tcount = 7.722 while ttable at α = 0.01 and dk = 94 obtained 2.367 thus tcount > ttable or 7.722 > 2.367, so that the correlation coefficient is significant. path coefficient calculations, conduct path analysis, by explaining in advance explained about the relationship between variables in diagrammatic (path diagram) whose shape is determined by theoretical propositions derived from a particular frame of mind and the formulation of research hypotheses. hypothesis testing, effect of organizational culture on performance, hypothesis states that organizational culture has a direct effect on perforharijono, s. n. t., tunas, b., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (27-32)  the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy.  https://doi.org/10.21009/jobbe.003.1.03 31 mance. statistical hypothesis: ho: βy1 ≤ 0; h1: βy1 > 0 the organizational culture path coefficient has a direct effect on performance of ρy1 = 0.430, then a significance test is performed with the t test. the ttest calculation results obtained tcount = 4.892 while ttable = 2.367 at α = 0.01 for dk = 94 so that tcount > ttable or 4.892> 2.367, then reject h0 or accept h1, path coefficient ρ1 significant. thus organizational culture has a positive effect on performance. according amin nikpour, international journal of organizational leadership 6 (2017). the impact of organizational culture on organizational performance: the mediating role of employee’s organizational commitment. indicated that organizational culture has a positive and significant impact on organizational performance in education office of kerman province. results direct effect of organizational culture on apip performance. based on the results of statistical verification research that organizational culture contributes to performance. from the statistics it is known that tcount > ttable, expressed a positive and significant direct effect. in this case the organizational culture will have a greater influence on performance, by improving the indicators of discipline, efficient, and ethics, implementation of work, the scope of work, and work orientation. this research is supported by theory colquitt jason a, etc. (2009), organizational culture is closely related to rules, norms, and values adopted by employees. this research is supported by theory luthan (2011), some important characteristics of organizational culture are the regularity of observed behaviour, norms, dominant values, philosophy, rules, and organizational climate. this research is supported by theory robin stuart kotze (2006), in what has to be seen as bad news for instructors in business studies programmes around the world, they found that none of these management practices had any direct causal relationship to superior business performance. but what they did find was that there were a small number of basic management practices that, without exception, characterized companies that consistently outperformed their industry. among these were culture and execution. to word, continuous performance improvement has to become part of an organization's culture one of its strongly held values and it has to be consistently applied. research supported slocum & hellriegel (2009), organizational culture has the potential to change organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled, and so on. however, if an organizational culture gets out of step with the changing expectations of internal and/ or external stakeholders, the organization's effectiveness can decline. organizational culture and performances are clearly related, although the evidence regarding the exact nature of this relationship is mixed. studies show that the relationship between many cultural attributes (featured in the popular press as being important for performance) and high performance hasn't been consistent over time. this research is also supported from the journal by amin nikpour (2017), indicated that organizational culture has a positive and significant impact on organizational performance. in line with that sunday i. efanga explain in, caroline o. ifejiagwe (2014), that organization with strong culture would lead to high performance. some recommendations were preferred among which, that management should adopt the values, norms to support teacher and this performance in organizations. this research is also supported from the journal by walid el laeithy (2017), relationship with organizational culture from one side and organizational performance from the other. in the meantime, the study's findings eliminate the role of corporate culture in financial perharijono, s. n. t., tunas, b., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (27-32)  the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy.  https://doi.org/10.21009/jobbe.003.1.03 32 formance's difference between multinational companies and local one operating in the egytian market. this research is also supported from the journal by m. shakil ahmad (2012), organizational performance management system create career paths for employees as well as groupings of people who remain in the firm for a long enough time for a company culture to form. based on the above explanation, it can be concluded that the results of this study support previous research about the positive direct influence of organizational culture on performance. conclusion organizational culture has a direct effect on performance. this shows that the organizational culture is well run so it will lead to increased performance. implications, organizational culture is enhanced by spurring discipline, efficiency, ethics, scope of work, work orientation and work implementation instructions. it will result in improved apip performance in the navy, suggestion. in order to increase apip performance in the navy. the leader conducts selection of apip candidates. after being apip refresher is needed in the form of training to determine the extent of the development of rules and references used. the opportunity is adjusted to the schedule to avoid the same time as supervisory activities. reference amin nikpuour, the impact of organizational culture on organizational performance: the mediating role of employee’s organizational commitment. international journal of organizational leadership 6 (2017) 65-72, colquitt, jason a, jeffery a. lepine & micchael j. wesson. organizational behavior. improving performance and commitment in the workplace. new york: mcgraw hill, 2009. fred luthans. organizational behavior. 12th edition. mcgraw-hill companies, 2011. gavric, g., sormaz, g., & ilic,d (2016). the impact of organizational culture on the ultimate performance of company, international review, (3-4), 25-30. m. shakil ahmad., impact of organizational culture on performance management practices in pakistan., business intelegence journaljanuary, 2012 vol. 5 no.1. robbin stuart-kotze, performance the secret of successful behavior.2006, fist published in gread britain in 2006, isbn13.978.0.273-70798-1; isbn-10-0-27370798-1. salihu, adam jiddah, salihu, muhammad bello rayyan & musa idris umar. impact of organizational culture on employee performance in negeria. international journal 0f novel research in marketing maganenet and economics. vol.3, issue 3, pp (48-65), month: september-december 2016. slocum, john w, jr & don hellriegel, principles of organizational behavior, twelth edition, usa: south western, cengage learning. 2009. sunday i. efanga, & caroline o. ifejiagwa., influence of organizational culture on performance management practices in secondary schools in akwa ibom state, negeria., international journal of humanities and social science. vol. 4. no.6: april 2014 walid el laeithy,international journal of economics & managemens sciences , organizational culture and organizational performance. vo. 6. issue 4, 2017, 1000442. harijono, s. n. t., tunas, b., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (27-32)  the effect of organizational culture on performance of government internal supervisory apparatus (apip) in the national indonesian navy.  https://doi.org/10.21009/jobbe.003.1.03 57 abstract this study aims to determine how customer satisfaction in the field of online business. the research method used was descriptive qualitative research method to describe or analyze the results of the research. website characteristics are defined as attributes that consumers consider when evaluating an online site. website characteristics are measured using five dimensions shopping convenience, design, informative, security, communication. online business is an important tool for consumers to find products, the purchase intention of consumers through online stores tends to be high. consumer satisfaction is greatly influenced by the transaction process and trust. and, based on the result of the research, that ease, security, site design, informative and communication as well as features of an online business affect customer satisfaction. keywords: online business, website characteristics, customer satisfaction. received: 1 april 2021 ; accepted: 5 november 2021 ; publish: december 2021 how to cite: supriyati., harahap, s.p. (2021). website characteristics on customer satisfaction. journal of business and behavioural entrepreneurship, 5(2), 57-63. https:// doi.org/10.21009/jobbe.005.2.08 website characteristics on customer satisfaction supriyati department of computerized accounting, universitas komputer indonesia email: timkonferensi4@gmail.com s p harahap department of information system, universitas komputer indonesia https://doi.org/10.21009/jobbe.004.2.01 https://doi.org/10.21009/jobbe.004.2.01 58 introduction the industrial revolution 4.0 shows that the digital economy era makes various mechanical automations in running the pace of the economy. the digital revolution is a process of computer proliferation and the automation of recording processes in various fields (supriyati et al., 2019). trading problems can be overcome by using the internet. with the internet, all items, price lists and payment methods can be accessed by all buyers from all over the world in a short time. a common thing today if someone wants to buy and sell goods without face to face but it can be done via the internet, and all these conveniences are only possible because of the increasingly sophisticated services in the technology. almost all business companies have websites. at this time, companies, institutions, organizations, and individuals give information, conduct negotiations or business agreements through the internet (mohseni, et al., 2018). almost all types of services can be searched via the internet, starting from the services of a helper provider making an appointment with a doctor. and retail store services. the internet is the most perfect market because information is obtained quickly and buyers can compare offers from sellers around the world but the internet also has a negative impact that should be able to influence the development of human character that is rich in morals in the context of ukhrawi life, where the content on the internet must have content and appearance that has useful value (agnihotri, et al., 2016; zablah, et al., 2016; chao, et al., 2019; soegoto & eliana, 2018)(supriyati & bahri, 2020). there is some previous research related to the study, soegoto researching that aims to develop the presence of digital applications such as online shops to offer many new opportunities, especially the opportunity to expand the area of the market share with cheaper operating costs and business transactions that are easier to do anywhere. in making this system, the steps to be taken include the study design, type and method of data collection, methods of approach, and the development of the system (soegoto & pratama, 2018). hurt researched antecedents and consequences of customer satisfaction (hult, et al., 2019). different from the previous research, this research aims to find out how customer satisfaction in the field of online business and make consumers easier to shop because of the convenience provided by online business. this research used a descriptive qualitative method, where the method used to describe or analyze a study. research methods in conducting this research, the research method used was descriptive qualitative research method. a descriptive qualitative method is a method used to describe or analyze a research result. the aims of the descriptive qualitative method is make a systematic, factual, and accurate description, picture, or painting of the facts, properties, and relationships of the phenomenon under investigation. this method also explains the relationship, tests hypotheses, makes predictions, and gets the meaning of a problem to solve. then the theoretical concepts of various methods. to support the research results, the necessary data collection is derived demand the literature and other research related to the issues discussed. the type of reference used in international literature and local references, namely scientific journals. the data collected is analyzed and the research is systematically arranged. supriyati., harahap, s.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 57-63 website characteristics on customer satisfaction https://doi.org/10.21009/jobbe.005.2.08 https://doi.org/10.21009/jobbe.004.2.01 59 results and discussions online shopping is the process by which consumers buy a product or service online. online shopping is also referred to as e-commerce is the distribution, purchase, sale, marketing of goods and services electronically such as the internet, television, computer networks. e-commerce can involve electronic transfers, electronic data exchange, automated inventory management systems, and automated data collection systems (soegoto & eliana, 2018). e-commerce is a global phenomenon that affects economic and social life throughout the world (hult, et al., 2019). by using the search feature on google we can map how many websites are based on their types from e-commerce, education, and others. table 1. website data analysis source: google (accessed on: 5-11-2021) if you look at the search results data on google above, it can be seen that the most data related to advertising websites with 7.8 billion results in 0.66 seconds, followed by e-services websites, education websites and e-commerce websites. with so many websites, every part of website development must make or make the website easy to access, clear, uncomplicated and can meet customer satisfaction or people who access the website. entrepreneurship is a creative business that is built on innovation to produce something new, have added value, provide benefits, create jobs and the results are useful for others, and the ability to see new opportunities. this recognition and seizure of opportunities will tend to fix the market and bring it back to balance. (kaul, 2017; soegoto, 2013). website characteristics are defined as attributes that consumers consider when evaluating the website of an online store. website characteristics are measured using five dimensions shopping convenience, site design, informative, security, communication. shopping convenience when shopping through online media such as e-commerce, consumers expect the shopping or purchasing process to be much easier. this convenience causes consumers to feel comfortable shopping through websites from certain online stores. number key search amount of data why people make websites 1 e-commerce website 1.010.000.000 result (0,73 s) very interesting user experience 2 education website 4.600.000.000 result (0,55 s) allows for a customized learning experience 3 e-services website 6.290.000.000 result (0,55 s) improving service to consumers 4 ads website 7.800.000.000 result (0,66 s) can be inserted anywhere, and accessed anytime supriyati., harahap, s.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 57-63 website characteristics on customer satisfaction https://doi.org/10.21009/jobbe.005.2.08 https://doi.org/10.21009/jobbe.004.2.01 60 site design the site must have an attractive design so that it can be liked by consumers. therefore the company must be able to design the company's website more attractively. informative the information presented on a website must be able to provide detailed information about the product being sold and how to use it. security when making transactions in e-commerce, some consumer data can be known by the seller. therefore, the seller is obliged to maintain the confidentiality of the consumer's identity. also, the seller must provide guarantees that the purchase transaction takes place safely. communication in the purchase process, consumers sometimes need information directly with the seller. based on this, the seller's address or telephone number should be easy to contact (soegoto, 2013). figure 1. dimensions of website characteristics they found 4 new dimensions from 12 dimensions that had been revealed; that is, user friendly, good design (multi-media creativity and color graphic site), fast processing (accuracy of the interactive and responsive online process to consumer demand), personal security, and financial information. customer satisfaction is the best measure of relationship quality. customer satisfaction is very important for their personal experience in establishing a good relationship between buyer and seller. customers who are dissatisfied with the service or website design cannot be expected to produce a good relationship, because satisfaction is a customer's need that is important in the transaction. in this context, customer satisfaction is used in the sense of cumulative satisfaction (as opposed to transactions), this shows that customer supriyati., harahap, s.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 57-63 website characteristics on customer satisfaction https://doi.org/10.21009/jobbe.005.2.08 https://doi.org/10.21009/jobbe.004.2.01 61 satisfaction is a measure to evaluate the quality of all interactions related to the website in doing something that results in an expectation of the quality of future interactions. in this case, it was found that satisfied buyers have a better quality relationship with their vendors. also, buyers are more broadly satisfied with the roles taken and performed by the seller. several main factors need to be considered in customer satisfaction, namely, product quality, service quality, emotional, price, and cost. these five factors will affect customer satisfaction if they get good service as they expected. satisfied customers will show the possibility of buying the same product again. quality of service to customers cannot always satisfy customers. many service failures cause dissatisfaction. customers after buying a product or service they buy will feel satisfied or dissatisfied depending on the quality of service received from the seller. furthermore, customers will feel satisfied or dissatisfied with the consumption of products or services they have done. customer satisfaction can provide several benefits, namely the relationship between the company and customers becomes harmonious, provides a good basis for repeat purchases, creates customer loyalty to certain products and forms profitable word of mouth recommendations for the company (rahimi & kozak, 2017). more specifically, fourteen variables affect customer satisfaction. the top three of these variables are security, integration and ease and suitability (related to needs) that can be seenin the following figure: figure 2. reports from sap about statistic factors that influence satisfaction trust is the most important thing between seller and buyer. it is very difficult if the consumers do the transaction with online retail without trust. consumer trust in a product can be created by giving deliver the product according to the specifications advertised on the website company. when consumers receive goods or services that match the advertising company on the website, it will foster consumer confidence in the company. consumer trust can also be created with the honesty of the producers or marketers in conveying the characteristics of the product or service being sold in details to consumers. also, the provision of guarantees from company or marketer (such as exchanging or replacing goods because they are damaged, service for damaged products) to consumers after the purchase of the product will contribute to the level of consumer confidence (soegoto & eliana, 2018) (can be seen in the figure below). supriyati., harahap, s.p. (2021). journal of business and behavioural entrepreneurship, 5(2), 57-63 website characteristics on customer satisfaction https://doi.org/10.21009/jobbe.005.2.08 https://doi.org/10.21009/jobbe.004.2.01 62 figure 3. the characteristics of the website as customer satisfaction and trust in online stores. conclusion online business is an important tool for consumers to find products, the purchase intention of consumers through online stores tends to be high. consumer satisfaction is greatly influenced by the transaction process and trust. and based on the result of the research, that ease, security, site design, informative and communication as well as features of an online business affect customer satisfaction so that it allows loyal customers to e-commerce and will return to visit the website. reference agnihotri, r., dingus, r., hu, m. y., & krush, m. t. 2016. social media: influencing customer satisfaction in b2b sales. industrial marketing management, 53, pp. 172-180. chao, p. h., yu, c. p., chang, j. p., & chueh, h. c. 2019. effectiveness of familyoriented interpretive media with different design characteristics: a study of family visitors’ satisfaction on the worksheets of a botanical garden. applied environmental education & communication, 18(4), pp. 331-349. hult, g. t. m., sharma, p. n., morgeson iii, f. v., & zhang, y. 2019. antecedents and consequences of customer satisfaction: do they differ across online and offline purchases? journal of retailing, 95(1), pp. 10-23. kaul, d. 2017. customer relationship management (crm), customer satisfaction and customer lifetime value in retail. review of professional management, 15 (2), pp. 55-60. mohseni, s., jayashree, s., rezaei, s., kasim, a., & okumus, f. 2018. attracting tourists to travel companies’ websites: the structural relationship between website brand, personal value, shopping experience, perceived risk, and purchase intention. current issues in tourism, 21(6), pp. 616-645. rahimi, r., & kozak, m. 2017. impact of customer relationship management on cussupriyati., harahap, s.p. 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(2021). journal of business and behavioural entrepreneurship, 5(2), 57-63 website characteristics on customer satisfaction https://doi.org/10.21009/jobbe.005.2.08 https://doi.org/10.21009/jobbe.004.2.01 62 abstract the research is conduted to find the relationship between organizational culture, ob statistifaction, and the attitude of lecturers who were not serving in leadership, both structural and functional positions toward women’s leadership on organizational commitment in ‘aisyiyah university (unisa) yogyakarta. the population of the research was 153 people, then the number of samples was determined by following the slovin formula and obtained 111 respondents. samples used as respondents from each faculty and study program were determined randomly. so the sampling technique is included in the category of random sampling. the research method uses a quantitative approach with survey data collection methods, and uses path analysis techniques. the findings of this research are 1) there is a positive direct effect of organizational culture on organizational commitment, 2) there is a direct negative effect on organizational culture on job satisfaction, 3) there is a positive direct effect of attitudes on women's leadership on job satisfaction, 4) there is a positive direct effect of organizational culture on organizational commitment, 5) there is a positive direct effect of attitudes on women's leadership on organizational commitment, 6) there is a direct positive direct effect on job satisfaction on organizational commitment, 7) there is an indirect direct negative effect on women's organizational culture on organizational commitment through job satisfaction, 8) there is a direct indirect effect of positive attitudes towards women's leadership on organizational commitment through job satisfaction. keywords: : job satisfaction, organizational commitment, attiude toward women’s leadership, ‘aisyiyah university yogyakarta received: 22 november 2019; accepted: 17 march 2020; publish; june 2020. how to cite: setyawati, r., akbar, m., & luddin, m.r. (2020). the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction on organizational commitment in the „aisyiyah university yogyakarta. journal of business and behavioural entrepreneurship, 4(1), 62-80. https:// doi.org/10.21009/jobbe.004.1.05 the influence of organizational culture, the attitude of the lecturer toward women’s leadership, and job satisfaction on organizational commitment in the ‘aisyiyah university yogyakarta rufaida setyawati universitas negeri jakarta email: rufaida_s@yahoo.com ma’ruf akbar universitas negeri jakarta email: maruf.akbar@unj.ac.id muchlis r. luddin universitas negeri jakarta email: muchlisrluddin@unj.ac.id 63 introduction to build up the competitiveness of the nation through education system is a must to creating a high quality of human resources to encounter the global competition which is increasingly competitive. if a higher education institution wants to be existing in global competition between the countries, it is necessary to build up the strong and dynamic leadership in sustainable way to perform an inovation based on the evolving technological adoption which is growing rapidly. generally, the leadership of the higher education is still dominated by men, and women are being a part of it. thus for, it becomes interesting when there is any higher education institution not only entrusted to the women lecturers temporarily, but it is entrusted to preserve sustainable living as a "spirit of university existence" itself. the dynamics of higher education in the information era brings contemporary challenges to the college (lukito, 2013). one of the interesting things in this field is the phenomena of women‟s leadership in university. however, women who are performing and take a role on the high positions in higher education management to leading are still the rare case, especially in developing countries whose development is actually quite advanced (celikten in savitri kristiyanti, suharnomo and mahfudz, 2016). basically, women have capabilities to manage and thus for it, women have be able to be leaders in colleges. miller et al. in wolfman states that when women have superiority, it is their ability to preserve relationship. women are interested in preserving a relationship with others to develop and reveal themselves also to help them gain the satisfaction. women have an interpersonal style to preserve as their biological body and have the ability to create, preserve and grow together with others moreover, the key factor to achieve succesfull women, according to steel and thornton (1994) is the ability to recognize, create and take opportunities, in addition to realizing the needs of people in the workplace, the need of support at any levels, qualifications and has a sensitivity to be more expressive. male and female have a different personal style in leadership. males have a tendency to use the norm of justice, while females sometimes have a tendency to use the norm of togetherness. male leadership also uses more positive strategies, and management differences will not be noticeable, and while the women have high self-esteem (annisa, 2015). boerstein et al. in nguyen (2013) reveals the fact about the representation of women in leadership and management positions is still lacking at higher levels of education. meanwhile, the leadership in structural positions was revealed by rachim in ovie (2015) that female workers increased, but not in the structural positions. the explanation above shows that even though the number of female workers increases because women have special abilities that can be used in leadership, but in reality there is still a lot of women that doesn‟t have a structural position basically, every substance of the academic civitas provides certain contribution to the growth of university. as for university of „aisyiyah (unisa) yogyakarta, the role of lecturers is more determining, because they would take on role of leadership at the university. the leadership at the university of „aisyiyah had a differential system with another university which is giving the same opportunities for both women and men to lead the college. the background of the birth of the university of „aisyiyah and its distinctive character is the soul of women leadership who become "the spirit of the „aisyiyah university", which is the strategic and important position in the university mandated specifically to women. the „aisyiyah is an organization to embracing women, and its one of the autonomous organizations of muhammadiyah that established almost a century ago in yogsetyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 64 yakarta. mrs. walidah, also known as nyai ahmad dahlan, who has been crowned as a national hero is the founder of the „aisyiyah organization. from the very beginning of his birth until now, the mission of empowering women to come to the lead in all aspects of the home and society formed an existence from time to time developing continously. behind the facts develoment of unisa which is growing rapidly, it has turns out of serious problem about the soul as well as "the spirit of unisa existences" itself which is threatened to fade, even disappear, its the sustainability of female leaderships. the leader of „aisyiyah center has been striving and persistent to give birth to unisa by overcoming various internal and external barriers. the external barrier in terms of establishing a university that is so complex has been addressed by the head of „aisyiyah center well. internal barriers in the form of coordination of the higher education council of muhammadiyah's center for nearly two hundred universities in indonesia, where unisa should be fully under its control, but could be resolved by sharing authority with the „aisyiyah center higher education council. external and internal barriers are resolved to achieve the goal of creating a "sustainable living monument" of women's leadership, which is proofing continuity that women are able to lead a university that is increasingly and existing continously on the enhance of higher education thats increasingly more interactive globally among the countries. the development of unisa lately shows many facts that "the spirit of unisa's existence as a sustainable monument" is the preservation of women's leadership to be threatened to fade, evenwhile at the time the university being more advanced and enlarged, thus it will be endangered. the background of this fact is the changing scale of the management of college resources from high school to the university, where there is a growing number of lecturers, which is caused an impact to management, its covering three things. firstly, the increase in the number of lecturers with social background is diverse from the perspective of muhammadiyah understanding, especially the idea of „aisyiyah organization that is determined to enhance the leadership paradigm of women. secondly, the background data of the new lecturers as newcomer who had never contact directly with the value of the muhammadiyah which has reached 65%. thirdly, the university's internal analysis mentions a decline in positive sense and a lecturer's support of women's leadership. the values of the muhammadiyah‟s value, including the „aisyiyah‟s values, is assumed to leading acceptances of the paradigm of women's leadership as "the spirit of unisa's existence". the lecturer's background involves three things above showing the lacking of the lecturer's attitude toward women's leadership. the obscurity of the lecturer on this woman's leadership for unisa became a major problem. in order to maintain the continuity of women's leadership as a "spirit of unisa existence", it is necessary to be ensured through a scientific study: "how far a lecturer's attitude is in line or opposite with the female leadership paradigm". thus, the organizational commitment become dependent variables in this research, there are some dependent variables which influenced, these are: work satisfaction, cultural organization, and the attitude of the lecturer towards the leadership of women in unisa. setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 65 literature review organizational commitment commitment determines a habit or agreement between members of the organization with the leadership of a rule that gives hope to a set of agreements, beliefs, values, and norms that have been jointly used by members in an organization, (newstrom, 2007). from this opinion, it has been obtained that the word commitment is related to the results of the target people who internally agree with a decision or request from a particular party and try their best to implement it, there is acceptance or implementation of that decision. from the sense of belonging and living the goals of the organization and the awareness of carrying out the policies of the leadership, manifesting high dedication in the work. according to luthans (1992) in edy (2010) clarifying the meaning and role of organizational commitment, other researchers put forward 4 factors as follows: a) personal factors, such as age, gender, education level, work experience and personality, b) job characteristics such as scope position, challenges at work, role conflict, level of difficulty at work, c) characteristics of the structure, for example, the size of the organization, the shape of the organization, the presence of trade unions, and the level of control exercised by the organization of employees. a highly committed individual will see himself as a true member of the organization, and to be a long-term himself of the organization. conversely, an individual who has a lower commitment is more likely to see himself as an outsider, and they do not want to see themselves long term as part of the organization, according to luthans in abdul khalik & hadijah (2011). from the description above raises the following indicators: (1) affective commitment includes having the pride of being part of the organization, (2) continuing commitment includes strong willingness to enter or be bound by the organization, a high business will for the organization, loyal to the organization, and (3) normative commitment includes a strong willingness to be part of the organization, wanting to continue work because it feels part of its obligations. individuals who are highly committed are likely to see themselves as true members of the organization and to be themselves long -term members of the organization. commitment is seen as a consequence or socialization of the organization, so that workplace ties that are deeper than this type can take more processing time, workplace commitments have been dominantly studied as a state without the time and therefore, we know very little about how commitments develop overtime time. (yvonne gerald theodore van rosensberg et.all, 2018). based on the description above, it can be synthesized that organizational commitment is the desire to keep working and taking sides and participating to be actively involved in parading. and the vision of the organization, the desire to continue working in the organization and the desire to remain accountable to the organization. the lecturer's attitude the lecturer's attitude towards women's at unisa include thoughts and feelings and the desire to follow certain behaviours in a conducive campus organizational condition, mutual respect with interpersonal relation as the climate and influence of women‟s leadership. the ideal reflection of the organization‟s members is the harmonious condition of the campus in order to operate academic activities that glorify all academic community and university stakeholder, which is characterized by highly competitive setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 66 campus management as result of women‟s leadership that is characterized by persuasion, is more communicative and consistent, gentle in applying vision, mission, and organizational programs. the attitude has 3 (three) components: (a) this involve an identifying, understanding; (b) the afection involve the feeling of accepting or not accepting, supporting or not supporting (c) the conative including the tendency to act or not act and the tendency to performing well or ot well on their job, wanting to work seriously or completely. components of cognition relate to belief an ideas and concepts including the source of inspiration, wail organization, have an intelligence, oriented to the aiming of the organization. the affection component concerning a person's emotional life includes a source of inspiration, respect, human relationship attitudes, self-motivation, having a high accountability for organizational change, daring to face challenges. the conation component is a tendency to behave, includes giving suggestion, influence others, support the goal, fair, be a catalyst, has the social maturity and freedom of social views, encouragement to achieving, to directs, openly receives innovative ideas for build relation, building strength without ignoring side flaws, proactive to take an opportunities. the lecturer‟s attitude towards women‟s leadership considered as concepts and attitude theory. attitudes can define as a tendency which is conseptualized in different factors and definitions. firstly, attitudes are determined by the cognitive components (belief or beliefs), affective components or the emotional (feelings), conative components or behavioral tendency component (behavior), according to konthandapani in middlebrook (1974). meanwhile, mar'at (1982) said that attitudes have 3 (three) components, those are: cognition component refers to the belief, thought and concepts, the afection component that concerns the person's emotional life, and the conation component that is a tendency to behave. these positive or negative factors will determine the support or rejection of women's leadership. and eagly and chaiken (1993) in (rahman, abdul, 2014) inferred from the discussion, divide the two models from the definition of the attitude, the model of cognition and conation attitude and the second model is a positive attitude and negative. thereafter, a different opinion, attitudes are beliefs that can be define into an action in a certain way toward an object (schwartz, 1992). meanwhile, attitude in social psychology, defined as evaluations of people can be positive or negative as a reaction to an object, people, situation or another aspect, and allows us to predefine and changing a social behavior (atkinson et al. 1996:606 in ( ugulu, sahin, & baslar, 2013). overall, we can inferred a conclusion from the opinion above, attitudes to the female leadership can be defined as a group of interpretation lecturers who have a tendency to act like or dislike of an object, in this case the leadership of women referring to the organization of the higher education and what to be achieving in thats organization . in this case, it is a readiness for someone to refusing or accepting an object based on an assessment of the object whether it is meaningful or not for himself or for the lecturer. that is why attitudes relate to the science and feelings towards objects. job satisfaction job satisfaction are individual where each of individual has a different level of satisfaction. the satisfaction felt by each lecturer is a comparison of what has been received from the resulting of their work with an expectation. job satisfaction should be retained to improve the organizational performance by guiding the job descriptive insetyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 67 dex (jdi). job satisfaction is defined as a positive attitude toward the resulting of of person's work and it is an individual thing. individuals who have a high level of job satisfaction will have a positive value on the job, while individuals with low or dissatisfied of satisfaction levels will have a negative value to the job. robbins and jugde (2009) define that work satisfaction is an individually it reffers to an individual general attitude toward his work, which the individual's work is required to interact with colleagues and superiors, following the discretion and organizational rules and fulfill the performance standards. definition of job satisfaction by locke (in maulana, 2011) is a pleasurable or positive emotion state resulting from the appraisal of one‟s job or experiences. this definition is formed as two things that are cognitive and affective. cognitive or assessment of a person's work that concludes something based the experience and information obtained. the affective or emotional state, influenced by two factors, is the cognitive scheme and the emotional feelings. cognitive schemes indicate a positive or negative sense of their work, while an emotional atmospheres is a condition where a person is heavily influenced by the mood at the time. malthis (2006) states that job satisfaction as positif emotional state that is formed by the evaluation toward a person‟s job. dissatisfaction will appear if these expectations are not met or exceeded. job descriptive according to this index that work satisfaction is built on the basis of five dimensions which include working on the right place, appropriate payment, organization and management, supervisor and social relationship with colleagues (rivai, 2004). high job satisfaction affects good quality and dynamic work so that it can benefit the company as well as the employees themselves, in addition to the job satisfaction is the first aspect in shaping organizational commitments. the employee with a job satisfaction and has a high organizational commitment will do the best perform as well as providing good service to all the part. similarly, if they do not experience a job satisfaction and a low organisational commitment, the services provided to the customer will be less satisfactory. kuruzum et al. (2009) suggests that companies who provides in services should be more sensitive to the needs of their employees so that employees feel satisfied and have high organizational commitments, because of the great contribution given by the employees will have an impact on the company's objectives in delivering profits quality services. smith in the luthans (2009) suggests that there are five dimensions that can affect job satisfaction, such: 1). working conditions, how to provide an interesting task, provide an opportunity to learn and provide the opportunity to receive responsibilities; 2). friendly co-workers and cooperative will provide job satisfaction because it is comfortable in doing the job; 3). a salary had significantly influence to job satisfaction and describes the dimensions of job satisfaction widely; 4). promotional opportunities to attain higher positions or career development opportunities; 5). the ability of supervisors in providing direction in establishing positive attitudes and technical guidance jobs. organizational culture as an organization's personality, organizational culture has a system, the patterns, value of symbols of the practice that develop throughout the age of the organizatio. if the organizational culture developed in the management process it will grow an attitude oriented to group responsibilities, willingness of participation/coordination, setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 68 and mutual respect, awareness and commitment of the organization (rev, 2019). greenberg and baron (1998:313) define the organizational culture as the foundation of fundamental support for workers in delivering framework to the attitudes, values, behavioral norms and share common wishes for members of the organization. and other words it is defined to that the organizational culture is represents employees perceive and how the perception collective to belief, values and principal, greenbeerg and baron (1998: 509). in different dimensions, organizational culture is defined as a the pattern of such base assumptions, which have been created, have been discovered or developed through a group's learning system with various problems with external adaptations and internal integration, where they work well based on the prevailing rules (edgar schein, 2005:4). organizational culture will be effectively and right on the target for leadership if the management of cultural organization is maximized. it refers to the intentions of trust and understanding referring to certain organizations or groups about the problems, practices and goals of the organization (kropp, 2005). the conclusion for organizational culture based on the explanation, the key to the organizational culture is the values, norms and references in an organization that can direct the perception, way of thinking and the acts of its members, with each of the organizational cultural indicators: the rules of action, the prevailing norms, values and beliefs, views of life and rules (ivancevich at el, 2005:4). so in principle, from the description above the researcher concluded the organizational culture can be conditioned by the organization so that it embodies a renewed or entirely new organizational culture that is appropriate and effective to improve the positive attitude of members organization. there is a real manifestation of the organizational culture seen in organizations that, when optimised, will attribute to a positive structured and scalable habit, i.e. organizational behaviour, idiology and organizational philosophy, group/organizational norms, values of the organization's visibility, policies, procedures and socialization rules (kropp, 2005). and according to miller (1988:105), in terms of managing the culture of its organization, the fundamental value and spirit in how to manage and organize. these values and spirits are a basis of organizational for answering challenges. while the organizational culture in the research, this leadership attitude can be interpreted as the values with the indicators below: empowering co-workers, help to solve the problems, delegate authority, guiding, directing and decision making. from the theoretical review of organizational culture variables above should be inputed in the context of this research is to build a framework, feeling, acting that is formed because the internalization of the value system thats adopted and as a guidelines to organization in higer education. the values and norms of the organization become references in the organizer to achieve the organizational objectives in the form of administrative setup and campus management. despite of an intrinsically of its value, the slogan and identity formed in the organizational culture become a differentiator with other groups of organizations, so it is also extrinsic. the organizational culture is based on common shared, views, idea, beliefs, feelings, principles, hopes, attitudes, norms, values from all members of the organization. organizational cultural indicators also contain meaning to empower their subordinates, help solve problems, delegate authority, guide, direct their subordinates, and make decision-making. setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 69 hypothesis research from the previous description, the hypothesis can be drawn as follows: 1. organizational culture has a direct effect on attitudes towards women's leadership. 2. organizational culture has a direct effect influences job satisfaction 3. attitudes towards women‟sleadership has a direct effect work satisfaction 4. organizational culture has a direct effect organizational commitment 5. attitudes towards women's leadership has a direct effect organizational commitment. 6. job satisfaction has a direct effect organizational commitment. 7. organizational culture has indirect effect on commitment mediated by job satisfaction 8. attitudes towards women‟s leadership has indirect effect on organizational commitment mediated by job satisfaction based on the formulation of the hypotheses outlined, the conceptual framework of the research can be described as follows: figure 1. research model besides that, the novelty or novelty of this research, namely: 1) the organizational commitment variable is not an ordinary commitment variable because it is associated with the special goals of unisa tertiary institutions as aisyiyah cadre colleges. and in research, according to the knowledge of researchers, the unification of special commitments as cadres of founding organizations is not yet there. 2) to the best of the researchers' knowledge, research on the role of women in individual college leadership related to emancipation or gender already exists, but there is no lecturer attitude towards female leadership in universities 3) there is no research on attitudes towards higher education leadership that in teamwork is dominated by all women and legalized by their foundations or owner. organizational culture (x1) attitudes towards women‟s leadership (x2) job satisfaction (x3) organizational commitment (y) setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 70 research method this research will be conducted at the unisa campus on jl. ring road barat yogyakarta. unisa yogyakarta was chosen as a place of research because of consideration of suitability with a very specific research title that is about attitudes towards women's leadership. as for the number of unisa lecturers, there were 212 people, while the number of female lecturers under the leadership of the head of the women's study program was 184, the head of the study program and the representatives of the women's study program were 27 people, the dean was 3 people, and the rector was 1 person, the population of the research was 153 people. the number of samples was determined by following the slovin formula and obtained 111 respondents. samples used as respondents from each faculty and study program were determined randomly. so the sampling technique is included in the category of random sampling. the research method uses a quantitative approach with survey data collection methods, and uses path analysis techniques. result and discussion path analysis is a further part of regression analysis. if in general regression is used to test whether there is a direct influence given by the independent variable on the dependent variable. meanwhile, path analysis not only tests the direct effect but also explains the indirect effect given by the independent variable through intervening variables to the dependent variable. the path analysis picture is presented as follows: figure 2. path analysis based on the figure above can be seen the direct effect and indirect effect as follows: table 1. path analysis result based on the results of the path analysis above, it is known that the organizational culture variable has a direct effect of 0.339 while the indirect effect of 0.048. then the lecturer's attitude towards women's leadership has a direct effect of 0.269 and an indirect effect of 0.169. this means that the direct effect of organizational culture varivariable direct indirect total organizational culture 0,339 0,156 x 0,307 = 0,048 0,339 + 0,048= 0,387 attitudes towards women‟s leadership 0,269 0,550 x 0,307 = 0,169 0,269 + 0,169 =0,438 job satisfaction 0,307 setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 71 ables and lecturers' attitudes toward women's leadership towards organizational commitment is greater than the indirect effect through job satisfaction variables. the summary of hypothesis testing in this research is presented as follows: table 2. summary hypothesis result discussion 1. the influence of organizational culture on attitudes towards women’s leadership the results have proven that organizational culture has a direct positive effect on attitudes towards women's leadership. this reinforces that the level of attitudes towards women's leadership is determined by organizational culture. if organizational culture is applied well, it will increase attitudes towards women's leadership. vice versa, attitudes toward female lecturer leadership will decrease if the organizational culture is not well implemented. based on the results of the hypothesis test, it can be seen that the first hypothesis in this research is supported by the results of empirical research. this is indicated by the calculated t value of 7.118 which is greater than t table (1.983) and a significance value of 0.000 which is smaller than 0.05 and a regression coefficient of 0.680 > 0 with a positive direction. so it can be said that organizational culture has a positive and significant effect on the attitudes of lecturers towards women's leadership. this can be understood because organizational culture is needed by the organizahypothesis t-stat & ttabel ho decision conclusion organizational culture —> attitudes towards women‟s leadership 7,118 > 1,983 ignored has a positive direct effect organizational culture —> job satisfaction 1,848 < 1,983 accepted has no positive direct effect attitudes towards women‟s leadership —> job satisfaction 6,534 > 1,983 ignored has a positive direct effect organizational culture —> organizational commitment 4,501 > 1,983 ignored has a positive direct effect attitudes towards women‟s leadership —> organizational commitment 3,055 > 1,983 ignored has a positive direct effect job satisfaction —> organizational commitment 3,545 > 1,983 ignored has a positive direct effect organizational culture —> job satisfaction —> organizational commitment 1,591 > 1,983 accepted has no positive indirect effect attitudes towards women‟s leadership —> job satisfaction —> organizational commitment 3,087 > 1,983 ignored has positive indirect effect setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 72 tion. in organizational culture embodied values, norms, and basic beliefs that are shared by members of the organization in order to achieve common goals. confidence and optimism will emerge if the dimensions of organizational culture are in accordance with the wishes, expectations, and needs of the lecturer. an organizational culture that is appropriate and in line with the wants and needs of lecturers will be perceived and felt positively by the lecturer so that its existence is accepted and even fully supported by its realization and development. 2. the influence of organizational culture on job satisfaction test results have proven that organizational culture has a direct negative effect on job satisfaction. this does not reinforce the theory that the level of job satisfaction is determined by organizational culture. in reality in the field, if organizational culture is implemented well, it will not necessarily increase job satisfaction. vice versa, lecturer job satisfaction will not necessarily decrease if the organizational culture is well implemented. this is due to the lack of readiness of institutions to manage organizational culture in accordance with the conditions and desires of members of the organization so that it does not correlate to job satisfaction of lecturers. the negative effect of organizational culture on job satisfaction is shown by empirical data from research results. this shows that most of the lecturers (44.2% of 100%) score less than the middle class of organizational culture. on the other hand, some respondents (55.7% of 100%) lecturer satisfaction in the middle interval class (class interval 90.6-96.4). based on the results of the hypothesis test conducted, it can be seen that the second hypothesis in this research is not supported by the results of empirical research. this is indicated by the t value of 1.848 which is smaller than t table (1.983) and a significance value of 0.068 which is greater than 0.05 and a regression coefficient of 0.137> 0 with a positive direction. so it can be said that organizational culture does not have a positive and significant effect on job satisfaction. this means that most lecturers under the leadership of the chairperson of the female study program lack understanding of organizational culture, and have low job satisfaction. the data shows that unisa lecturers lack understanding, are less able to accept the existing organizational culture so that it affects the lack of fulfillment of job satisfaction of lecturers in carrying out their work assignments. 3. the influence of attitudes towards women's leadership on job satisfaction the results have proven that attitudes towards women's leadership have a direct positive effect on job satisfaction. this reinforces that the level of job satisfaction is determined by attitudes towards women's leadership. if the attitude towards women's leadership is implemented well it will increase job satisfaction. vice versa, lecturers' job satisfaction will decrease if attitudes towards female leadership are not implemented properly. this is indicated by the calculated t value of 6.534 which is greater t table (1.983) and a significance value of 0.000 which is smaller than 0.05 and a coefficient value of 0.709> 0 with a positive direction. this means that the lecturers' attitude towards women's leadership has a positive and significant effect on job satisfaction. this means that most lecturers under the leadership of the chairperson of the female study program lack understanding of attitudes towards female leadership, and have low job satisfaction. the data shows that unisa lecturers lack understanding, are less able to accept attitudes towards the existing female leadership so that it affects the lack of setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 73 fulfillment of job satisfaction of lecturers in carrying out their work duties. 4.the influence of organizational culture on organizational commitment the results have proven that organizational culture has a direct positive effect on organizational commitment. this is empirical evidence that the higher the organizational culture, the higher the organizational commitment of unisa yogyakarta lecturers. then it will further strengthen the evidence that the level of organizational commitment is determined by organizational culture. if organizational culture is implemented well, it will increase organizational commitment. vice versa, the lecturer organizational commitment will decrease if the organizational culture is not implemented properly. this is indicated by the t value of 4.501 which is greater than t table (1.983) and a significance value of 0.000 which is smaller than 0.05 and a regression coefficient of 0.364> 0 with a positive direction. so it can be said that the fourth hypothesis in this research is supported by empirical research. evidence in the field shows that the success of organizational culture in increasing work commitment, one of which lecturers are willing to work hard has commitment and loyalty and gives their best efforts to achieving good accreditation in 2018-2019. 5. the influence of attitudes towards women's leadership on organizational commitment the results have proven that attitudes towards women's leadership have a direct positive effect on organizational commitment. this reinforces that the level of organizational commitment is determined by attitudes towards women's leadership. if the attitude towards women's leadership is implemented well, it will increase organizational commitment. vice versa, lecturers' organizational commitment will decrease if attitudes towards women's leadership are not implemented properly. in table 1 above shows the variable attitude of lecturers towards female leadership has a value of t arithmetic of 3.055 which is greater than t table (1.983) and a significance value of 0.003 which is smaller than 0.05 and a significance value of 0.423> 0 with a positive direction. this means that the fifth hypothesis which states that the attitude of lecturers towards women's leadership has a positive and significant effect on organizational commitment supported by the results of empirical research. this means that most lecturers under the leadership of the chairperson of the female study program lack understanding of attitudes towards female leadership, and have low organizational commitment. the data shows that unisa lecturers lack understanding, are less able to accept attitudes towards the existing female leadership so that it influences the lack of fulfillment of the commitment of lecturer organizations in carrying out their work assignments. 6. the influence of job satisfaction on organizational commitment test results have shown that job satisfaction has a direct positive effect on organizational commitment. this reinforces that the level of organizational commitment is determined by job satisfaction. if job satisfaction is implemented well, it will increase organizational commitment. vice versa, the work commitment of lecturers will decrease if job satisfaction is not implemented properly. the sixth hypothesis in this study which states that job satisfaction has a positive setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 74 and significant effect on organizational commitment is supported by the results of empirical research. this is indicated by the calculated t value of 3.545 which is greater than t table (1.983) and a significance value of 0.001 which is smaller than 0.05 and a regression coefficient of 0.375> 0 with a positive direction. these results are in line with the research conducted, the results prove a significant correlation of organizational culture to organizational commitment. the results of other research conducted by colquit showed that job satisfaction is positively related to organizational commitment, such as the statement "job satisfaction is the strongly correlative affective commitment, so satisfied employers are more liable to want the organization". job satisfaction is highly correlated with affective commitment, satisfied workers tend to want to remain silent in the organization. experts say that people who experience high levels of satisfaction tend to feel high levels of affective and affective commitment even though 'job satisfaction has no relationship with continuum commitment'. in one scientific literary written by caravallo, c.r.s.p., castro, m.a.r., silva, 2018). the results of their research can help organizations verify through empirical findings. how personal management actions reflect organizational commitment and work satisfaction. it is also expected that work will bring the company to develop and practice that can be linked to organizational culture that most influences organizational commitment and job satisfaction. 7. the influence of organizational culture on organizational commitment through job satisfaction based on the results of the path analysis in the table above it is known that the organizational culture variable has a direct effect of 0.339 while an indirect effect of 0.048. thus it is very clear that organizational culture has an indirect negative effect on organizational commitment mediated by job satisfaction. robbins and judge (2015) states there are some employee responses to dissatisfaction, namely; outgoing, voice, loyalty, and neglect. employee job satisfaction is very influential in their desire to commit and provide the best performance for the organization where they work (robbins and judge, 2008). job satisfaction must be maintained to improve organizational performance based on the job descriptive index. according to this descriptive job index that job satisfaction is built on five dimensions including working in the right place, appropriate payment, organization and management, providers and relationships with colleagues (rivai, 2004). so job satisfaction will affect good and dynamic work quality so that it benefits the company and the employees themselves. job satisfaction is also the first aspect achieved in organizational commitment where according to genlu et.al (2010), job satisfaction has a significant influence on organizational commitment. thus the organizational culture variables, job satisfaction, and organizational commitment theoretically have a close relationship in influencing employee performance. the seventh hypothesis is that organizational culture has a positive and significant effect on organizational commitment at unisa through job satisfaction. however, due to the analysis of research results on the hypotheses about organizational culture a positive correlation with job satisfaction is not proven, thus the relationship between organizational culture and organizational commitment is mediated by job satisfaction logically and negatively factually. setyawati, r., akbar, m., & luddin, m.r. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-80)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 75 8. the influence of attitudes on leadership on organizational commitment thorughjob satisfaction whereas the commitment variable has an attitude towards female leadership with a direct effect of 0.269 and an indirect effect of 0.169. this means that the direct effect of attitude variables on women's leadership is in line with lutans research, commitment is smaller than the indirect effect through job satisfaction variables. for this reason, attitudes towards female leadership have a positive correlation with organizational commitment mediated by job satisfaction. thus the discussion of the results of this research that explains the factual findings that are proven in the field. according to gary dessler, there are several steps that can be taken to build or grow one's organizational commitment, namely as follows (sopiah, 2008); 1) make it charismatic, 2) build the tradition, 3) have comprehensive gievance procedures, 4) provide extensive two way communications 5) create sense of community, 6) build value homogeneity, 7) share and share alike, 8) emphasize bramaising cross utilization, and team work, 9) get together, 10) support employee development, 11) commit to actualiazing, and 12) provide first year job challenge. conclusion and recommendation based on the results of the statistical calculations described in the previous chapter, the findings of this research are 1) there is a positive direct effect of organizational culture on organizational commitment, 2) there is a direct negative effect on organizational culture on job satisfaction, 3) there is a positive direct effect of attitudes on women's leadership on job satisfaction, 4) there is a positive direct effect of organizational culture on organizational commitment, 5) there is a positive direct effect of attitudes on women's leadership on organizational commitment, 6) there is a direct positive direct effect on job satisfaction on organizational commitment, 7) there is an indirect direct negative effect on women's organizational culture on organizational commitment through job satisfaction, 8) there is a direct indirect effect of positive attitudes towards women's leadership on organizational commitment through job satisfaction for further researcher, to explore the effectiveness of the use of intelligence in women's academic practice also provides a great clarification of how spiritual intelligence can be translated through training practices and contribute to a balanced and harmonious work environment at university. encourage research that concentrates on investigating the role of attitudes towards women's leadership on organizational commitment at different organizational culture levels. the focus explores whether gender impacts organizational commitment to leadership in education by examining the level of women's participation in leadership at all levels of education in indonesia, highlighting their differences and similarities. further research needs to be encouraged that use the post modern feminist theory framework and feminist qualitative design to explore unique and individual leadership and women's teams to higher structural positions to the rector to make meaning and influence in mentoring and as role models during a career from the influence of mentors and role models during their careers. setyawati, r., akbar, m., & luddin, m.r. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (62-81)  the influence of organizational culture, the attitude of the lecturer toward women‟s leadership, and job satisfaction, on organizational commitment in the „aisyiyah university yogyakarta.  https://doi.org/10.21009/jobbe.004.1.05 91 abstract this research aimed to examine the relationship between executives compensation toward shareholder wealth with company performance as a moderating variable. the first is to examine whether executives compensation influences company performance. secondly, it examines whether executives compensation influences shareholder wealth. thirdly, it examines whether company performance influences shareholder wealth. lastly is to examine whether executives compensation influences shareholder wealth with company performance as moderating variable. the populations in this research are using the company that listed in indonesia stock exchange (idx) and categorized as lq45 index that falls from 2013-2015. this research uses a purposive sampling method to collect a sample. the sample selected was analyzed using pls (partial least square) analysis which is an outer model and inner model. the results of this study show that executives compensation does not have a role to determine company performance. the second result shows that executives compensation has positive and influence shareholder wealth significantly. another result shows that company performance has positive and influence shareholder wealth significantly. the last result shows that company performance is not a moderating variable in the relationship between executives compensation and shareholder wealth. company performance is an independent variable that has a positive and significant relationship with shareholder wealth. keywords: : executives compensation, shareholder wealth, company performance, moderating variable received: 28 november 2019; accepted: 9 june 2020; publish; june 2020. how to cite: prabowo, a., sari, d.p.i. (2020). executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index). journal of business and behavioural entrepreneurship, 4(1), 91-111. https://doi.org/10.21009/jobbe.004.1.07 executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index) ananto prabowo tanri abeng university email: ananto.prabowo@gmail.com devinta palupi indah sari tanri abeng university 92 introduction the company was established to generate profit and expected to live going concern. one of the key elements in strategic to live going concern. one of the key elements in strategic to live going concern is goal setting (beggs & lane, 1989). goals are resolutions to achieve the desired result, where they provide a clear understanding of what the company is striving to accomplish based on the organizational mission and strategic objectives (aziz & fady, 2013). the success of a business will depend on its long-range goals for sales, profits, competitive position, development of personnel and industrial relations that require improvements on a regular basis (aziz & fady, 2013). to make these goals achievable, the most important things for the company is the contribution of human capital. the positive impact of human capital in economic terms is reflected in contributing to faster economic growth, increasing employee productivity and lowering unemployment (krstić, stanojević, 2013: đekić, 2015). people who have better education could avoid the risk of unemployment and poverty (đekić, 2015). especially in the economic side, the company that has a high quality of human capital can be regarded as a competitive company (gu¨nther et al, 2003: gamerschlag, 2012). organizational structure can be divided into two models which are the one-tier model and two-tier model (rezaee, 2009). hereby, the researcher is more focused on the boards model. the one-tier model consists of directors are considered as the decision managers and have the power and duty to monitor those decisions (rezaee, 2009). the two-tier model consists of a supervisory board and a management board, better known as the german board model, establishes different authorities and responsibilities for members of each board (rezaee, 2009). based on the researcher’s findings in indonesia use two-tier model for the public company which consists of the shareholder, board of commissioners and board of directors. furthermore, the company which has high quality and competent human capital within the company will be able for the company to achieve the goals. there is the main factor that make the company have a good performance called compensations toward employees (conyon and lerong he, 2011). compensation is an effective way to stimulate management to improve company performance (guo, 2013). based on dessler 1998:45 and khasanah 2013, there are two types of compensation as follow: direct financial payments in the form of salaries, wages, incentives and for the payment is not directly in the form of benefits such as insurance and vacation. compensation is deemed as one of the important aspects for the company, it reflects the company in doing business by maintaining the prosperity of the employees and ability to drive the stability and economic growth of the company (banghǿj et al, 2010; barontini and bozzi, 2011; rashid, 2013). basically, every company has a different amount of compensation, it depends on the position or level for each person and the type of jobs. there is no provision about the amount of top-level management compensation because of the compensation earned by top-level management base on the size of the company (i.e. embryonic, intermediate or big company), the economic growth and complexity of the top-level management jobs (sigler, 2011). in this research choose to focus more on executives compensation. top-level management compensation is the most debated and controversial topics in corporate governance literature (banghǿj et al, 2010; barontini and bozzi, 2011; rashid, 2013). in indonesia, the research of top-level management compensation is not being exposed as much as in other countries. this top-level management compensation controversy is becoming the main topic in the business environment that reported in mass media such as magazine and newspaper (otten, 2008). the factors might include for top-level prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 93 management compensation are company performance, executive productivity, and management. in contrarily, top-level management compensation also might lead “culture of gamesmanship” in the business environment in the accent on gaining short term results such as exceeding financial earnings expectations or future company performance (levitt, 1998). the example of a culture of gamesmanship is earning management. earning management is the action of manager or executive by increasing or decreasing some accounts or earnings that reported at this period without decreasing or increasing the value of that accounts and not giving an impact to the long-term profitability. additionally, it would like to research whether executives compensation also giving an impact to the shareholder’s wealth or neither. based on the studies of compensation in stock have shown that distribution of stock is positively having a linkage to the top-level management compensation of increasing shareholder’s wealth (costa, 2000; baker, 1992; banker and datar, 1989). the disclosure of compensation makes it fairly easy to calculate the standard measurement of incentive strength which has a high percentage of pay to create shareholder’s wealth (stephen f, david y, 2010). based on the introduction above, this research tries to answer the problem or research question as follows about how are the relationship of executives compensation and performance towards company performance, shareholder’s wealth and also how is the relationship of executives compensation towards shareholder’s wealth that moderated by company performance. from this research expected to provide some benefits to various parties; provide the information to management about how to improve and exceed the company performance in order to push the shareholder’s value being up, exceeding the goals and expectations or below goals and expectations, and provide the information to shareholders in order to make the regulation of executive compensation and contract management are being decided in annual general meeting for the future. we develop our hypothesis in the next section. following this research describes the method, including our sample and design. then this research presents the analyses, result, and the test of its hypotheses. in the last section is the conclusion. literature review the relationship of executives compensation towards company performance the implementation of good and fair compensation system of executives is expected to improve each executives performance. additionally, executives are also expected to be able to lead and encourage the company to achieve good performance targets. hence the roles and responsibilities of executives are to represent shareholders, define company’s mission and vision, establish and approve strategic plans and decisions to achieve the goals, oversee the company performance and approve major business transactions and corporate plans, decisions and actions (rezaee, 2009). hereby, it can be said that executives have a big role over the company. if the implementation of the good and fair compensation system for executives is to succeed, thus the highly performed executives will be paid higher (rashid, 2013). rashid (2013) found that regression analysis shows there is a positive relationship between executive pay and firm performance with roa as the measurement of firm performance in bangladesh. martin et al (2015) found that top-level management compensation is positively correlated to firm performance. the study said that firm with more independent directors on the board has a higher pay-for-performance link. prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 94 h1: executives compensation has relationship with company performance the relationship of executives compensation towards shareholder wealth byrne and young (2010) there is sensitivity about changes in top-level management wealth to changes in shareholders wealth. it means that if there are 1% changes in top-level management wealth will be equal with changes in shareholders wealth. hence executives compensation has a role to determine the shareholder wealth. it is supported by previous research that there is a high sensitivity relationship between toplevel management compensation and shareholder wealth maximization (tarus et al, 2014). h2: executives compensation has relationship with shareholder wealth the relationship of company performance towards shareholder wealth company performance is the results of business activities that have been done over the current year. the measurement of company performance can use financial ratios such as roa, roe, npm, revenue, profit and productivity (twairesh, 2014). the better company performance achieved, thus the better return that shareholder get. hence, the higher the profit that the company earned, then the shareholder will get also a high dividend payment. the dividend payment in indonesia usually around 25% 30% of the company’s profit. this based on the researcher findings in the sample selected. the measurement of shareholder wealth is using dividend (kieso & weygant, 2011), total shareholder return or it can be called as tsr (byrne and young, 2014) and dpr (dividend payout ratio). previous research stated that company which achieves good social performance and good financial performance have higher relation with shareholder wealth (pamela, 2014). h3: company performance has relationship with shareholder wealth the relationship of executives compensation towards shareholder wealth with company performance as moderating variable shareholder wealth can be influenced by several factors, one of the factors is executives compensation. additionally, there is another factor that will influence the shareholder wealth namely company performance. based on the previous research done by satria (2013) which stated that there is a positive result of compensation for company performance in the 1st hypothesis. secondly, based on the regression analysis said that work motivation cannot be as moderating variable. lastly, the researcher did the 3rd hypothesis about the relationship between work motivation and employee performance. from the 3rd regression analysis stated that the moderating variable in this study serves as an independent variable that directly affects the employee performance. h4: company performance has an impact on executives compensation and shareholder wealth. research method population and sample the disclosure of executives compensation is a summation of salary, bonus, stock, facilities and post-employment benefits. in this study, the information data about compensation are not compulsory to get all or part of 5 components (salary, bonus, stock, facilities and post-employment benefits), hence every company has a different kind of compensation package that is discussed in annual general meeting. the prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 95 data on 3 years of executives compensation, the dividend paid, roa, roe, npm, tsr, dpr 2013-2015, were collected from 24 listed companies in indonesia stock exchange website from lq45 index that listed 3 years in a row. the sample is determined using purposive sampling technique in order to obtain a representative sample. the sample have common criteria such as: the sample must have the financial statement for 3 years and categorized in lq45 index that listed 3 years in a row from 2013-2015. the financial statement must provide information about executives compensation. compensation information has to be included board of directors and commissioners. the financial statement must provide information about earning per share (eps) in 3 years. the financial statement must provide information about dividend and stock price for 3 years (2013-2015). for the company that does not do dividend payment and has inconsistent financial information, it should be taken out from the sample list. the financial statement in lq45 index has to be audited. models this research is used pls (partial least square) analysis. pls is used to determine the complexity of the relationship of a variable with other variables and the relationship of a variable with the indicators. pls is a research method typically used to explain or predict the behavior of variables, especially when variables are highly redundant (queen, 2014). to answer the problems or questions of this research, the data analysis technique used are: outer model the outer model can also be called a measurement model. this model aims to measure the relationship between indicators and the construct. the indicators can be valid if the score or loading factor is above 0.5. if the score or loading factor is below 0.5, the indicator should be taken out and it can be called as indicator modification (hussein, 2015). discriminant validity test with cross loading discriminant validity is a validation testing of an indicator towards the different construct. the indicator can be stated as valid if having a high loading factor to addressed construct rather than a different construct. the result of discriminant validity is cross-shaped which called as cross-loading (hussein, 2015). cross loading shows how strong each construct that contains other (non-target) indicator. usually, the main indicator has a higher loading factor on the addressed constructor main construct, so the result will be cross-shaped (hussein, 2015). reliability testing reliability testing is used to determine whether the indicators are really valid and reliable to be tested to reflect each main construct. there are three components to test the reliability of indicators are as follow: ave (average variance extracted) ave is used to measure an average variance value of indicators to the same construct. the higher value of ave means that the data have variation and there is no the same data with suggested value is above 0.5 (hussein, 2015). cronbach’s alpha prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 96 cronbach’s alpha shows about the average correlation value of indicator that measures the same construct. the suggested value of cronbach’s alpha is above 0.7 (hussein, 2015). r square (coefficient of determination) r square or coefficient of determination is to determine how strong all the indicator explain the variance data of the dependent variable. for r square, there is no suggested value (hussein, 2015). composite reliability composite reliability is to measure or examine the indicator of each construct whether the indicator really has a strong impact to analyze or reflect the addressed construct. the suggested value of composite reliability is above 0.7 (hussein, 2015). inner model the inner model can also be called a structural model. this model aims to measure the significant or insignificant relationship between construct and it can be seen in t-statistics and p-value. if the result of t-statistics is above 1.96 (t-statistics > 1.96) and the result of p-value is below 0.05 (p value < 0.05) mean that the result is giving a positive impact significantly. contrarily, if the result of t-statistics is below 1.96 and the result of p-value is above 0.05 mean that the result is giving a negative impact or there is no relationship between variable (hussein, 2015). results and discussions the relationship of executives compensation toward company performance t he 1st hypothesis testing has completed testing about the impact of executives on company performance. the output of smartly for the modified loading factor can be viewed in table 1: table 1. construct outer loading of executives compensation and company performance source: the results of data processing with smartly 3.0 executives compensation company performance y1 0.990 y2 0.998 y3 0.990 x1 0.854 x2 0.855 x3 0.912 x4 0.931 x5 0.937 x6 0.906 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 97 as shown on table 1, it can be known that the loading factor for the construct of executives compensation involve: 2013 compensation is 0.990, 2014 compensation is 0.998 and 2015 compensation is 0.990. while the construct of company performance involves: 2013 roa is 0.854, 2014 roa is 0.855, 2015 roa is 0.912, 2013 roe is 0.931, 2014 roe is 0.937 and 2015 roe is 0.906. the greater value of loading factor can determine the indicator’s ability to reflect the construct tested in the diagram. base on table 1 above, it stated that 2014 compensation is the indicator of executives compensation that has a big impact then followed with 2013 compensation and 2015 compensation. whereas, for an indicator of company performance that has a big impact is 2014 roe then followed with 2013 roe, 2015 roa, and roe. while 2013 and 2014 roa have a small impact than the other four indicators. in this research, the reflective indicator also needs to be tested to determine the discriminant validity with cross loading as follow: table 2. cross loading of executives compensation and company performance construct source: the results of data processing with smartpls 3.0 an indicator can be declared as valid if having the higher loading factor to addressed construct rather than loading factor to another construct. the table above shows that loading factor to compensation indicator (y1 until y3) have the higher value to addressed construct than another construct. for the illustration: loading factor of y1 to executives compensation is 0.990 rather than loading factor to company performance (0.086). similarly, the other indicators also have a small impact on the different construct. therefore, the construct predicts that indicator from their group is better than the indicator from another group. reliability testing can be strengthened using cronbach’s alpha with a suggested value above 0.7, average variance extracted (ave) above 0.5 and composite reliability above 0.7. it has analyzed and fulfills the criteria of the outer model, the next testing is using inner model (structural model). this inner model is aimed to look for the significant and insignificant result of each hypothesis. the results of validity and reliability testing of ave, cronbach’s alpha and composite reliability can be seen in table 3. executives compensation company performance y1 0.990 0.086 y2 0.998 0.060 y3 0.990 0.080 x1 0.216 0.854 x2 0.248 0.855 x3 0.100 0.912 x4 0.121 0.931 x5 0.101 0.937 x6 0.293 0.906 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 98 table 3. the results of ave, cronbach’s alpha and composite reliability testing source: the results of data processing with smartpls 3.0 table 3 showed that the information that is gathered in this research are: 1. the results of ave from the variable of executives compensation and company performance are valid and reliable. because the results are above 0.5 as suggested value of ave. the result of ave in executives compensation is 0.985. it means that the average variance value of executives compensation’s indicators is 98.5% and statistically, the collected data is really having a high variation. the result of ave in company performance is 0.810. it means that the average variance value of company performance’s indicators is 81% and statistically, the collected data is really having a high variation. 2. the results of cronbach’s alpha from the variable of executives compensation and company performance are valid and reliable. the average correlation result of all indicator that measures the same construct already meet the standard of 0.7. the cronbach’s alpha of executives compensation and company performance are 0.993 and 0.954. 3. the result of r square from company performance as the dependent variable is 0.006. it means that company performance is only influenced by 0.6% with the interaction of executives compensation and shareholder wealth variable. the remaining amount of 99.4% is influenced by other variables outside this research model. 4. the results of composite reliability from the variable of executives compensation and company performance are valid and reliable and fulfill the suggested value of 0.7. the composite reliability of executives compensation is 0.995 means that the indicator (i.e. compensation of 2013-2015) has a strong impact to reflect the executives' compensation construct. additionally, the composite reliability of company performance is 0.962 means that the indicator (i.e. roa and roe) has a strong impact to reflect the company performance construct. table 4. the value of tstatistics (outer model) for executives compensation and company performance source: the results of data processing with smartpls 3.0 ave cronbach’s alpha r square composite reliability executives compensation 0.985 0.993 0.995 company performance 0.810 0.954 0.006 0.962 original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/ sterr|) p value y1 <executives compensation 0.990 0.991 0.004 249.077 0.000 y2 <executives compensation 0.998 0.997 0.002 523.025 0.000 y3 <executives compensation 0.990 0.990 0.006 154.495 0.000 x1 <company performance 0.854 0.814 0.175 4.878 0.000 x2 <company performance 0.855 0.811 0.192 4.464 0.000 x3 <company performance 0.912 0.883 0.130 6.989 0.000 x4 <company performance 0.931 0.930 0.037 25.367 0.000 x5 <company performance 0.937 0.936 0.038 24.364 0.000 x6 <company performance 0.906 0.900 0.066 13.775 0.000 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 99 as shown table 4, all the indicators on each construct have a significant positive result. it can be seen in t-statistics is higher than 1.96 for all indicators. it means that all indicators are able to reflect the construct tested significantly. the original sample presents how the value of the loading factor can give an impact to one construct and another construct. the greater loading factor presents a big impact on one construct to another construct. the significant information about the relationship of executives compensation and company performance can be seen in tstatistics in the table below: table 5. the value of tstatistics about the relationship of executives compensation toward company performance source: the results of data processing with smartpls 3.0 as shown on table 5 is known that the impact of executives compensation towards company performance has a loading factor of 0.076 with t-statistics below 1.96 (0.323 < 1.96). additionally, the result of p-value is above 0.05 means that statistically, it is not acceptable. it can be significant if the t-statistics is above 1.96 and p-value is below 0.05. so, based on the findings above can be concluded that the 1st hypothesis states that executives compensation does not have a role to determine company performance. for the summary of 1st hypothesis analysis testing presented in the table below: table 6. summary of 1 st hypothesis analysis testing source: the results of data processing with smartpls 3.0 based on the findings can be concluded the 1 st hypothesis result states that executives compensation does not have a role to determine company performance. nourayi et al (2008) stated that the findings are negatively correlated between executives compensation and company performance. additionally, chiang et al (2011) stated that executives compensation is negatively associated with company performance as predicted. original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value executives compensation -> company performance 0.076 0.087 0.236 0.323 0.747 outer model inner model tstatistics explanation the impact of executives compensation towards company performance 0.076 0.323 negative result prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 100 table 7. construct outer loading of executives compensation and shareholder wealth source: the results of data processing with smartpls 3.0 as shown on table 7, it can be known that the loading factor for the construct of executives compensation involve: 2013 compensation is 0.990, 2014 compensation is 0.998 and 2015 compensation is 0.990. while the construct of shareholder wealth involves: 2013 dividend is 0.859, 2014 dividend is 0.876, 2015 dividend is 0.832, 2013 earning per share (eps) is 0.872, 2014 earning per share (eps) is 0.847 and 2015 earning per share (eps) is 0.868. the greater value of loading factor can determine the indicator’s ability to reflect the construct tested in the diagram. based on table 7, it stated that 2014 compensation is the indicator of executives compensation that has a big impact then followed with 2013 compensation and 2014 compensation. whereas, for an indicator of shareholder wealth that has a big impact is 2014 dividend then followed with 2013 eps, 2015 eps and 2013 dividend. while the 2015 dividend and 2014 eps have a small impact than the other four indicators. in this research, the reflective indicator also needs to be tested to determine the discriminant validity with cross loading as follow: table 8. cross loading of executives compensation and shareholder wealth construct source: the results of data processing with smartpls 3.0 an indicator can be declared as valid if having the higher loading factor to addressed construct rather than loading factor to another construct. the table above shows that loading factor to compensation indicator (y1 until y3) have the higher value to addressed construct than another construct and also show that loading factor to shareholder wealth indicators (x1 until x6) has the higher value to addressed construct than executives compensation shareholder wealth y1 0.990 y2 0.998 y3 0.990 x1 0.859 x2 0.876 x3 0.832 x4 0.872 x5 0.847 x6 0.868 executives compensation shareholder wealth y1 0.990 0.485 y2 0.998 0.439 y3 0.990 0.446 x1 0.597 0.859 x2 0.582 0.876 x3 0.293 0.832 x4 0.228 0.872 x5 0.200 0.847 x6 0.343 0.868 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 101 another construct. for the illustration: loading factor of x1 to shareholder wealth is 0.859 rather than loading factor to executives compensation (0.597). similarly, the other indicators also have a small impact on the different construct. therefore, the construct predicts that indicator from their group is better than the indicator from another group. reliability testing can be strengthened using cronbach’s alpha with the suggested value above 0.7, average variance extracted (ave) above 0.5 and composite reliability above 0.7. it has analyzed and fulfills the criteria of the outer model, the next testing is using inner model (structural model). this inner model is aimed to look for the significant and insignificant result of each hypothesis. the results of validity and reliability testing of ave, cronbach’s alpha and composite reliability can be seen in table 9. table 9. the results of ave, cronbach’s alpha and composite reliability testing source: the results of data processing with smartpls 3.0 table 9, explain that the information that are gathered in this research are: 1. the results of ave from the variable of executives compensation and shareholder wealth are valid and reliable. because the results are above 0.5 as suggested value of ave. the result of ave in executives compensation is 0.985. it means that the average variance value of executives compensation’s indicators is 98.5% and statistically, the collected data is really having a high variation. the result of ave in shareholder wealth is 0.738. it means that the average variance value of company performance’s indicators is 73.8% and statistically, the collected data is really having a high variation. 2. the results of cronbach’s alpha from the variable of executives compensation and shareholder wealth are valid and reliable. the average correlation result of all indicator that measures the same construct already meet the standard of 0.7. the cronbach’s alpha of executives compensation and shareholder wealth are 0.993 and 0.930. 3. the result of r square from shareholder wealth as the dependent variable is 0.629. it means that shareholder wealth is highly influenced by 62.9% with the interaction of executives compensation and company performance variable. the remaining amount of 37.1% is influenced by other variables outside this research model. 4. the results of composite reliability from the variable of executives compensation and shareholder wealth are valid and reliable and fulfill the suggested value of 0.7. the composite reliability of executives compensation is 0.995 means that the indicator (i.e. compensation of 2013-2015) has a strong impact to reflect the executives' compensation construct. additionally, the composite reliability of shareholder wealth is 0.944 means that the indicator (i.e. dividend and eps) has a strong impact to reflect the shareholder wealth construct. ave cronbach’s alpha r square composite reliability executives compensation 0.985 0.993 0.995 shareholder wealth 0.738 0.930 0.629 0.944 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 102 table 10. the value of tstatistics (outer model) for executives compensation and shareholder wealth source: the results of data processing with smartpls 3.0 as shown the table 10, all the indicators on each construct have a significant positive result. it can be seen in t-statistics is higher than 1.96 for all indicators. it means that all indicators are able to reflect the construct tested significantly. the original sample presents how the value of the loading factor can give an impact to one construct and another construct. the greater loading factor presents a big impact on one construct to another construct. the significant information about the relationship of executives compensation and shareholder wealth can be seen in tstatistics in table 11: table 11. the value of tstatistics about the relationship of executives compensation toward shareholder wealth source: the results of data processing with smartpls 3.0 as shown the table 11 explained that the impact of executives compensation towards shareholder wealth has a loading factor 0.500 with t-statistics above 1.96 (3.247 > 1.96) or giving a positive significant impact. in another side, the result of p-value is below 0.05 (0.001 < 0.05) means that statistically, it is acceptable. based on the findings above can be concluded that the 2nd hypothesis states that executives compensation has a role to determine shareholder wealth significantly. for the summary of 2nd hypothesis analysis testing presented in the table 12: original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/ sterr|) p value y1 <executives compensation 0.990 0.991 0.004 249.077 0.000 y2 <executives compensation 0.998 0.997 0.002 523.025 0.000 y3 <executives compensation 0.990 0.990 0.006 154.495 0.000 x1 <shareholder wealth 0.859 0.870 0.037 23.259 0.000 x2 <shareholder wealth 0.876 0.882 0.039 22.278 0.000 x3 <shareholder wealth 0.832 0.855 0.061 13.601 0.000 x4 <shareholder wealth 0.872 0.863 0.078 11.249 0.000 x5 <shareholder wealth 0.847 0.838 0.084 10.089 0.000 x6 <shareholder wealth 0.868 0.860 0.068 12.805 0.000 original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value executives compensation -> shareholder wealth 0.500 0.494 0.154 3.247 0.001 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 103 table 12. summary of 2 nd hypothesis analysis testing source: the results of data processing with smartpls 3.0 based on the findings can be concluded the 2nd hypothesis result states that executives compensation give an impact to shareholder wealth significantly and statistically, it is acceptable. this finding in accordance with previous research done by tarus et al (2014) which stated that there is a high sensitivity relationship between executives compensation and shareholder wealth maximization. the relationship of company performance toward shareholder wealth table 13. construct outer loading of company performance and shareholder wealth source: the results of data processing with smartpls 3.0 as shown in table 13 above, it can be known that the loading factor for the construct of company performance involve: 2013 roa is 0.854, 2014 roa is 0.855, 2015 roa is 0.912, 2013 roe is 0.931, 2014 roe is 0.937 and 2015 roe is 0.906. while the construct of shareholder wealth involves: 2013 dividend is 0.859, 2014 dividend is 0.876, 2015 dividend is 0.832, 2013 eps is 0.872, 2014 eps is 0.847 and 2015 eps is 0.868. the greater value of loading factor can determine the indicator’s ability to reflect the construct tested in the diagram. based on table 13 above, it stated that 2014 roe is the indicator of company performance that has a big impact then followed with 2013 roe, 2015 roa, and roe, while 2013 and 2014 roa has the smaller impact than the other four indicators. whereas, for an indicator of shareholder wealth that has a big impact is 2014 dividend then followed with 2013 eps, 2015 eps and 2013 dividend. while the 2015 dividend and 2014 eps have a small impact than the other four indicators. in this research, the reflective indicator also needs to be tested to determine the discriminant validity with cross loading as follow: outer model inner model tstatistics explanation the impact of executives compensation towards shareholder wealth 0.500 3.247 positive significant company performance shareholder wealth x1 0.854 x2 0.855 x3 0.912 x4 0.931 x5 0.937 x6 0.906 x1 0.859 x2 0.876 x3 0.832 x4 0.872 x5 0.847 x6 0.868 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 104 table 14. cross loading of company performance and shareholder wealth construct source: the results of data processing with smartpls 3.0 an indicator can be declared as valid if having the higher loading factor to addressed construct rather than loading factor to another construct. the table above shows that loading factor to company performance indicator (x1 until x6) has the higher value to addressed construct than another construct and also show that loading factor to shareholder wealth indicators (x1 until x6) has the higher value to addressed construct than another construct. for the illustration: loading factor of x1 to company performance is 0.854 rather than loading factor to shareholder wealth (0.401). similarly, the other indicators also have a small impact on the different construct. therefore, the construct predicts that indicator from their group is better than the indicator from another group. reliability testing can be strengthened using cronbach’s alpha with a suggested value above 0.7, average variance extracted (ave) above 0.5 and composite reliability above 0.7. it has analyzed and fulfills the criteria of the outer model, the next testing is using inner model (structural model). this inner model is aimed to look for the significant and insignificant result of each hypothesis. the results of validity and reliability testing of ave, cronbach’s alpha and composite reliability can be seen in table 15. table 15. the results of ave, cronbach’s alpha and composite reliability testing source: the results of data processing with smartpls 3.0 table 15 showed the information that are gathered in this research are: 1. the results of ave from variable of company performance and shareholder wealth are valid and reliable. because the results are above 0.5 as suggested value of ave. the result of ave in company performance is 0.810. it means that the average variance value of company performance’s indicators is 81% and statistically, the collected data is really having a high variation. the result of ave company performance shareholder wealth x1 0.854 0.401 x2 0.855 0.419 x3 0.912 0.584 x4 0.931 0.604 x5 0.937 0.642 x6 0.906 0.677 x1 0.550 0.859 x2 0.501 0.876 x3 0.628 0.832 x4 0.506 0.872 x5 0.464 0.847 x6 0.617 0.868 ave cronbach’s alpha composite reliability company performance 0.810 0.954 0.962 shareholder wealth 0.738 0.930 0.944 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 105 in shareholder wealth is 0.738. it means that the average variance value of company shareholder wealth’s indicators is 73.8% and statistically, the collected data is really having a high variation. 2. the results of cronbach’s alpha from variable of company performance and shareholder wealth are valid and reliable. the average correlation result of all indicator that measure the same construct already meet the standard of 0.7. the cronbach’s alpha of company performance and shareholder wealth are 0.954 and 0.930. 3. the results of composite reliability from variable of executives compensation and company performance are valid and reliable and fulfil the suggested value of 0.7. the composite reliability of executives compensation is 0.995 means that the indicator (i.e. compensation of 2013-2015) has a strong impact to reflect the executives compensation construct. additionally, the composite reliability of company performance is 0.962 means that the indicator (i.e. roa and roe) has a strong impact to reflect the company performance construct. table 16. the value of tstatistics (outer model) for company performance and shareholder wealth source: the results of data processing with smartpls 3.0 as shown in table 16 above, all the indicators on each construct have a significant positive result. it can be seen in t-statistics is higher than 1.96 to all indicators. it means that all indicators are able to reflect the construct tested significantly. the original sample presents how the value of the loading factor can give an impact to one construct and another construct. the greater loading factor presents a big impact on one construct to another construct. the significant information about the relationship between company performance and shareholder wealth can be seen in t-statistics in table 17: original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value x1 <company performance 0.854 0.814 0.175 4.878 0.000 x2 <company performance 0.855 0.811 0.192 4.464 0.000 x3 <company performance 0.912 0.883 0.130 6.989 0.000 x4 <company performance 0.931 0.930 0.037 25.367 0.000 x5 <company performance 0.937 0.936 0.038 24.364 0.000 x6 <company performance 0.906 0.900 0.066 13.775 0.000 x1 <shareholder wealth 0.859 0.870 0.037 23.259 0.000 x2 <shareholder wealth 0.876 0.882 0.039 22.278 0.000 x3 <shareholder wealth 0.832 0.855 0.061 13.601 0.000 x4 <shareholder wealth 0.872 0.863 0.078 11.249 0.000 x5 <shareholder wealth 0.847 0.838 0.084 10.089 0.000 x6 <shareholder wealth 0.868 0.860 0.068 12.805 0.000 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 106 table 17. the value of tstatistics about the relationship of company performance toward shareholder wealth source: the results of data processing with smartpls 3.0 as shown in table 17 above is known that the impact of company performance towards shareholder wealth has a loading factor of 0.770 with t-statistics above 1.96 (5.816 > 1.96) or giving a positive significant impact. in another side, the result of pvalue is below 0.05 (0.000 < 0.05) means that statistically, it is acceptable. based on the findings above can be concluded that the 3rd hypothesis states company performance has a role to determine shareholder wealth significantly. for the summary of 3rd hypothesis analysis testing presented in table 18: table 18. summary of 3 rd hypothesis analysis testing source: the results of data processing with smartpls 3.0 the findings explained that the 3rd hypothesis result states that company performance gives an impact to shareholder wealth significantly and statistically, it is acceptable. this finding in accordance to previous research done by queen (2014) which stated that company which achieves good social performance and good financial performance have higher relation with shareholder wealth. the relationship of executives compensation toward shareholder wealth and moderated by company performance the 4th hypothesis testing has completed testing about the impact of executives compensation towards shareholder wealth moderated by company performance. the picture below is showing the 4th hypothesis result diagram before and after doing the modification for all three hypotheses. table 19. construct outer loading of executives compensation and shareholder wealth with company performance as moderating variable source: the results of data processing with smartpls 3.0 note: *: two-way test original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value company performance -> shareholder wealth 0.736 0.720 0.127 5.816 0.000 outer model inner model tstatistics explanation the impact of company performance towards shareholder wealth 0.736 5.816 positive significant moderating effect executives compensation * company performance 0.988 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 107 as shown in table 19 above, it explained that the loading factor for the construct of executives compensation and company performance involve all the indicators of each construct such as roa, roe and executives compensation. the greater value of loading factor can determine the indicator’s ability to reflect the construct tested in the diagram. reliability testing can use cronbach’s alpha with the suggested value above 0.7, average variance extracted (ave) above 0.5 and composite reliability above 0.7. it has analyzed and fulfills the criteria of the outer model, the next testing is using inner model (structural model). the results of validity and reliability testing of ave, cronbach’s alpha and composite reliability can be seen in table 20. table 20. the results of ave, cronbach’s alpha and composite reliability testing source: the results of data processing with smartpls 3.0 table 20 showed that the information that are gathered in this research are: 1. the results of ave from executives compensation and shareholder wealth with company performance as moderating variable are valid and reliable. because the results are above 0.5 as suggested value of ave. the result of ave in this hypothesis is 1.000. it means that the average variance value of 4th hypothesis’s indicators in each construct and company performance as moderating variable is 100% and statistically, the collected data is really having a high variation. 2. the results of cronbach’s alpha from executives compensation and shareholder wealth with company performance as moderating variable are valid and reliable. the average correlation result of all indicator in the 4th hypothesis with company performance as moderating variable that measures each construct already meet the standard of 0.7. the cronbach’s alpha of 4th hypothesis is 1.000 or 100% valid to reflect each construct. 3. the results of composite reliability from executives compensation and shareholder wealth with company performance as moderating variable are valid and reliable and fulfill the suggested value of 0.7. the composite reliability of 4th hypothesis is 0.995 means that the indicator in each construct has a strong impact to reflect the 4th hypothesis which company performance as moderating variable. table 21. the value of tstatistics (outer model) for executives compensation and shareholder wealth with company performance as moderating variable ave cronbach’s alpha composite reliability executives compensation * company performance <moderating effect 1.000 1.000 1.000 original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value executives compensation * company performance <moderating effect 0.988 0.950 0.252 3.922 0.000 prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 108 as shown in table 21 above, all the indicators on executives compensation and company performance have a significant positive result. it can be seen in t-statistics is higher than 1.96 to all construct. it means that all indicators are able to reflect the construct tested significantly. the original sample presents how the value of the loading factor can give an impact to one construct and another construct. the greater loading factor presents a big impact on one construct to another construct. the significant information about the relationship of executives compensation towards shareholder wealth with company performance as moderating variable can be seen in t-statistics in table 22: table 22. the value of tstatistics about the relationship of executives compensation toward shareholder wealth with company performance as moderating variable source: the results of data processing with smartpls 3.0 as shown in table 22 above is known that the impact of executives compensation towards shareholder wealth with company performance as moderating variable has a loading factor of 0.278 with t-statistics below 1.96 (1.585 < 1.96). additionally, the result of p-value is above 0.05 (0.114 > 0.05) means that statistically, it is not acceptable. based on the findings above can be concluded that the 4th hypothesis states company performance as moderating variable does not have a role to determine the relationship between executives compensation and shareholder wealth. for the summary of 4th hypothesis analysis testing presented in table 23: table 23. summary of 4 th hypothesis analysis testing source: the results of data processing with smartpls 3.0 the findings conclude that the 4th hypothesis result is company performance as moderating variable does not have a role to determine the relationship between executives compensation and shareholder wealth and statistically, it is not acceptable. this finding in accordance with previous research done by satria (2013) which stated that there is a positive result of compensation towards company performance in the 1st hypothesis. but in the 2nd hypothesis, based on the regression analysis said that work motivation cannot be as moderating variable. thus, the researcher did the 3rd hypothesis about the relationship between work motivation and employee performance. from the 3rd regression analysis stated that the moderating variable in this study serves as an independent variable that directly affects the employee performance. original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/sterr|) p value moderating effect 1 -> shareholder wealth 0.278 0.245 0.176 1.585 0.114 outer model inner model tstatistics explanation the impact of executives compensation towards shareholder wealth moderated by company performance 0.278 1.585 negative result prabowo, a., sari, d.p.i. (2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 109 conclusion overall, this study about the relationship between executives compensation toward shareholder wealth with company performance as moderating variable is being rejected. company performance cannot be a moderating variable but serves as an independent variable that directly affects the shareholder wealth, it can be proved in the 3rd hypothesis. limitations this research contains the following limitations; executives compensation is only measured by the total amount of compensation. it is not measured separately for each item of executives compensation. it happens because some of the company does not give the detail information in the annual report. indicators that used to predict company performance is only roa (return on asset) and roe (return on equity). in another side, there are still many indicators can be used to measure the performance of the company such as productivity, the percentage of employee turnover, organizational culture, job satisfaction, and other financial ratios. some company that listed in lq45 in the year of 2013-2015 did not do dividend payment. this causes some company has to be taken out from the sample selected. the sample selected in this research is from lq45 index which should be listed in lq45 index 3 years in a row from 2013-2015. suggestion the author’s suggestion is better than executives compensation measure based on shareholder wealth rather than company performance. additionally, the measurement of executives compensation can be done by comparing the percentage of executives compensation of other company in the same industry. recommendations in further research can be done in more detail for each type of compensation that exists, so the results obtained will better describe the existing condition more clearly. for the next research, the measurement of company performance can use more indicators such as other financial ratios, revenue, employee turnover, and other indicators. references anonymous2009, apr 19. wealth and power are unlikely to come together. the sunday independent, 3. anonymous2015, jan 06. maximizing shareholder wealth. national post. issn 14868008. arancibia, j.c. 2013, return on equity helps define market's strongest companies, los angeles. aziz, a.e. and fady, r., 2013. business improvement using organisational goals, riva technique and e-business development stages. journal of enterprise information management, 26(5), pp. 577-595. basu, a., 2005. reported earnings, auditzor's opinion, and compensation: theory and evidence, syracuse university. beggs, j.m. and lane, m.s., 1989. corporate goal structures and business students: a comparat. journal of business ethics, 8(6), pp. 471. bebchuk, l.a. and fried, j.m., 2003. executive compensation as an agency problem. the journal of economic perspectives, 17(3), pp. 71-92. prabowo, a., sari, d.p.i. 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(2020). journal of business and behavioural entrepreneurship volume 4 number 1 2020 p (91-111)  executives compensation impact toward shareholder wealth: company performance (empirical study of listed companies in indonesia stock exchange and categorized as lq45 index).  https://doi.org/10.21009/jobbe.004.1.07 45 abstract organizational citizenship behavior was a part of the development concept in human resources management. this concept can support an organization’s progress in a positive direction. so the role of ocb becomes very important for the development of the organization. the research was aimed at finding out the information about the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi. a survey was used by involving 250 employees as a sample. data were analyzed by descriptive statistical analysis, inferential statistics for linearity test and path analysis. organizational citizenship behavior significantly affected directly by organizational culture. moreover, procedural justice directly significantly affected organizational citizenship behavior. based on those findings, it can be concluded that it was personality and teamwork only which should be considered if organizational citizenship behavior would be improved. it can be stated that considering those findings, personality and teamwork could not be neglected in enhancing organizational citizenship behavior. keywords: organizational culture, personality, teamwork, procedural justice, organizational citizenship behavior received: 9 september 2019 ; accepted: 26 september 2019 ; publish; july 2019 how to cite: farida, i., tippe, s., & tunas, b.. (2019). the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi. journal of business and behavioural entrepreneurship, 3(1), 45-53. https://doi.org/10.21009/jobbe.003.1.05 the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi ida farida doctoral student, state university of jakarta email: hj.idafaridase@gmail.com syarifudin tippe professor at state university of jakarta email: syarifudin.tippe@unj.ac.id billy tunas professor at state university of jakarta email: tunas.billy@gmail.com 46 introduction the organization is the most essential element in society and plays an important role in human life. this is because human resources are the most strategic assets in an organization. and one important factor determining the progress of the company is organizational citizenship behavior (ocb). where this approach is proof of responsibility of employees in an organization or company. thus, all behaviors, responsibilities, and commitments made are very important. if this is not implemented then what will happen is a failure in fostering the business of a company. that's why company employees are the most important assets in the organization. so that conflicts that occur in employees must be resolved fairly and professionally (jafari and bidarian, 2012). colquitt, et. al., (2014) also explained that ocb can be influenced by several components such as leadership, organizational culture, job satisfaction, trust, personality, justice, teamwork, corporate values, company commitment, and other organizational behavior components. iljins, et. al., (2015) stated that organizational culture has an impact on changes in the formation of ocb in an organization. and this is also influenced by the organizational climate based on increasingly dynamic globalization factors. therefore the development of the organizational culture is an important factor for determining the success of the goals of a company itself. allameh, et. al., (2011) also explained that culture greatly influences a person's behavior related to knowledge, people, groups, organizations, and the entire organization, besides that it has an important influence in deciding when, where and with various knowledge that must be given. thus, organizational culture plays an important role in the formation of ocb in the company. ahmad, et. al., (2014) states that there are five dimensions of personality that have a close relationship with company performance, where a positive personality will be able to create an increase in the performance of the company itself. therefore personality factors also determine the formation of ocb in a company or organization. lim, et. al., (2012) states that ocb is strongly influenced by perceptions of employee interpersonal justice in daily business transactions. online surveys conducted using equity theory, social exchange, and justice as many as 135 professional respondents in construction companies get results that participants' perceptions of procedures and fair rewards are positively influenced by their perceptions of information and interpersonal justice. where this is based on how employees or members view justice and how the perceptions of justice they do can interact and ultimately affect ocb's behavior in a better direction. so that the role of procedural justice becomes very important. therefore ocb is a prominent concept in the practice of human resource management if it can be applied to the target. so that many companies or organizations are trying to increase ocb from each employee member to the progress of the company itself. one of indonesia's largest oil and natural gas-based companies, pt pertamina tbk, is also one of the companies that seek to improve company performance in a better direction. so that in this study it is expected to increase ocb in a better direction, especially in the scope of company. with the existence of procedural justice as a mediating variable, it is expected that employees feel valued and accepted in the company, which in the end will be able to increase ocb for the progress of the company itself. it will then be able to avoid employee behaviors that hurt ocb from the company itself. based on these descriptions, quantitative research farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 47 is conducted on: the influence of organizational culture, teamwork, personality, and procedural justice on organizational citizenship behavior at pt job pertamina medco tomori sulawesi e & p. the concept of this research can be illustrated in the model below, namely; figure 1. integrative model of organizational behavior materials and methods the research was aimed at finding out the information about the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi. a survey was used by involving 250 employees as a sample. there were five instruments for measuring, organizational culture (31 items, rel .705, personality (25 items rel .969), teamwork (36 items rel .635), procedural justice (20 items rel .660), and organizational citizenship behavior (27 items rel .959). data were analyzed by descriptive statistical analysis, inferential statistics for linearity test and path analysis. results the following are the results of testing the substructure: table 1. correlations farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 correlations y x1 x2 x3 x4 y pearson correlation 1 .090 .439 ** -.186 ** .089 sig. (2-tailed) .155 .000 .003 .162 sum of squares and crossproducts 5853.476 544.820 3216.144 -859.536 400.492 48 discussion based on the results of the above analysis on the first hypothesis, h0 is rejected, so that there is an influence between organizational culture and organizational creativity behavior. a positive relationship is indicated by t count> t table and the strength of the relationship rx1y = 0.219 with a coefficient of determination of 0.065. this is following harwiki (2016) were based on the results of research conducted at female sex workers, it was found that there was a positive influence between organizational culture and ocb. so that it supports the performance of the company itself. farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 covariance 23.508 2.188 12.916 -3.452 1.608 n 250 250 250 250 250 x1 pearson correlation .090 1 .334** .108 .477** sig. (2-tailed) .155 .000 .089 .000 sum of squares and crossproducts 544.820 6216.900 2519.080 512.480 2218.940 covariance 2.188 24.967 10.117 2.058 8.911 n 250 250 250 250 250 x2 pearson correlation .439** .334** 1 -.093 .181** sig. (2-tailed) .000 .000 .142 .004 sum of squares and crossproducts 3216.144 2519.080 9165.136 -537.784 1024.048 covariance 12.916 10.117 36.808 -2.160 4.113 n 250 250 250 250 250 x3 pearson correlation -.186** .108 -.093 1 .129* sig. (2-tailed) .003 .089 .142 .041 sum of squares and crossproducts -859.536 512.480 -537.784 3631.696 459.488 covariance -3.452 2.058 -2.160 14.585 1.845 n 250 250 250 250 250 x4 pearson correlation .089 .477** .181** .129* 1 sig. (2-tailed) .162 .000 .004 .041 sum of squares and crossproducts 400.492 2218.940 1024.048 459.488 3484.164 covariance 1.608 8.911 4.113 1.845 13.993 n 250 250 250 250 250 **. correlation is significant at the 0.01 level (2-tailed). *. correlation is significant at the 0.05 level (2-tailed). 49 jo, et. al., (2011) stated that based on the results of the study, 452 korean workers showed that cultural learning was significantly related to organizational commitment, organizational motivation, and the purpose of sharing knowledge related to ocb. then, citizenship behaviour. ocb becomes very important for productivity but organizations cannot predict all the criteria needed to achieve goals through job descriptions. employees who are ready to accept their own goals for the collective value of an organization compiling strong group solidarity. so the role of ocb here is very important in increasing the other variables that follow. jeong, et. al. (2019) states that it is important to strengthen organizational culture and ocb. as research conducted by 606 employees from professional sports teams revealed the function of employee empowerment as mediating the relationship between organizational culture and ocb in improving the performance of the organization itself. in the second hypothesis, h0 is rejected, so that there is an influence between ocb and personality. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx2y = 0.193 with a coefficient of determination of 0.64. bourdage, et. al., (2018) also states that there is a positive influence between personality and ocb. where based on a sample of 182 and 206 people, it was found that honesty-humility and awareness related to equity sensitivity affected ocb. so, overall, the nature of personality itself can influence the increase in ocb itself, especially what happens in the workplace or the scope of the company itself. nandan and azim, (2015) stated that there is a positive relationship between the three dimensions of organizational justice, namely distributive justice, procedural justice and interactional justice towards organizational citizenship behaviour, a positive relationship between the three dimensions of organizational justice and psychological capital, and psychological capital to organizational citizenship behaviour. finally, psychological capital like personality mediates some of the relationships between distributive justice, procedural justice, interactional justice and organizational citizenship behaviour. this study makes a significant and unique contribution to the literature by showing the mediating effect of psychological capital in the relationship between organizational justice and organizational citizenship behavior. in the third hypothesis, h0 is rejected, so there is an influence between ocb and teamwork. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx3y = 0.035 with the coefficient of determination 0.73. this is following the opinion of nielsen, et. al. (2012) where it was found that ocb affected teamwork. thus, ocb is positively correlated with task group performance and interdependent with each other. harris, et. al. (2018) state that client-focused justice perceptions uniquely predict supervisory ratings of employee organizational citizenship behaviour towards clients and perceptions of fairness focused on workgroups. uniquely predicts organizational citizenship behaviour towards workgroups. thus, the perception of fairness is an important element in predicting ocb in employees because it can also predict employee turnover intentions. in the fourth hypothesis, h0 is rejected, so that there is an influence between ocb and pj. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx4y = 0.008 with a coefficient of determination 0.84. this is following the opinion of lim, et. al (2017) states that ocb influences procedural justice. where it was found that organizational behavior of organizational citizens is influenced by interpersonal justice felt in business transactions in the company. however, this finding also offers a more nuanced understanding of the complexity and relevance of how one type of justice between organizations acts on another in influencing farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 50 the citizenship behavior of the project organization. the results show that interpersonal justice is a key element in realizing positive organizational citizenship behavior in construction projects and that project performance can be improved if the project manager treats project participants politely, respectfully and with dignity. so that this component of justice is very important to be able to form ocb to be positive. tran, and choi (2019) state that the mediating role of organizational justice and organizational learning culture is positively related. whereas many as 268 employees from four service companies in vietnam found that inclusive leadership was positively related to ocb. also, organizational justice and organizational learning culture play a partial mediating role in inclusive ocb-leadership relationships. thus, these variable elements become very important in the formation of ocb. in the fifth hypothesis, h0 is rejected, so that there is an influence between organizational culture and personality. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx5y = 0.219 with a coefficient of determination 0.477. this is following the statement from emmerik, et. al., (2010), of 17,538 managers from 24 countries, this study explores the reciprocal relationship between mcclelland's motives and the cultural dimensions of specific aggregate levels and personality factors. the results revealed a significant relationship between achievement, affiliation, and power motives, and cultural dimensions of performance orientation, humane orientation, and power distance, respectively. support for the relationship proposed between manager motives and personality aggregate levels, measured by the big five factor, was also obtained. finally, the results show that the relationship between mcclelland's motives and big five aggregate managers' levels is moderated by the cultural dimensions of performance orientation, humane orientation, and power distance. so, it can be drawn from a hypothesis that organizational culture has a positive effect on personality. zerella, et. al., (2017) stated that 202 australian workers completed an online survey with structural equation modeling revealed that office layout features based on their personalities were significantly and positively related to organizational culture rankings. these findings indicate that perceptions of the positioning layout can influence employee perceptions about organizational culture and important employee attitudes. thus, personality can affect the office culture. in the sixth hypothesis, h0 is rejected, so that there is an influence between organizational culture and teamwork. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx6y = 0.193 with a coefficient of determination 0.108. this is following raz (2009) which states that organizational culture can be formed with teamwork based on mutual trust, cultural harmony, and leadership training. but cultural factors are an important component in the formation of good teamwork in the company. ahmadya, et. al. (2016) states that in the 21st decade, organizations are faced with change and must know how they learn and manage to learn to be strong in the comparative market. knowledge management is a way to improve the conditions of organizational stability. when this method is successfully applied in organizations, the appropriate field of culture has opened the way for this system. thus, the role of culture is very significant in managing the team in the company's management. there are two important factors namely the priority of the organization's manager's activities, and organizational stability is guaranteed by the organization's strategic planning. so, as a manager or leader can manage the flow of cultural change in the change of the existing team. farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 51 in the seventh hypothesis, h0 is rejected, so that there is influence between organizational culture and procedural justice. the form of a positive relationship is indicated by tcount> t table and the strength of the relationship rx7y = 0.193 with a coefficient of determination of 0.64. then this is following the results of research from erkutlu, (2010), namely the relationship of organizational justice and organizational culture can create successful leaders in companies or organizations. so, it is very important to foster an organizational culture to be able to create justice between these members. by continuing to treat employees with respect and fairness, it will support the creation of positive company performance. lucas, et. al., (2015) states that the tendency to believe in justice is multidimensional, and some beliefs in justice increase personal well-being. these characteristics show considerable potential but are largely ignored for the similarities and differences in the structure, support, and functions of beliefs of justice that promote cross-cultural welfare. so it is very important to improve fairness in the organization to be able to create good conditions about no unfair treatment for everyone through the organizational culture that is applied every day. in the eighth hypothesis, h0 is rejected, so that there is an influence between personality and teamwork. the form of a positive relationship is indicated by tcount> table and the strength of the relationship rx8y = 0.035 with the coefficient of determination 0.129. this is in line with the findings from tasa, et. al., (2011) which shows that collective efficacy influences the extent to which an individual is involved in both types of behavior, and also is a cross-level moderator of the relationship between conformity and interpersonal behavior with the team's collaboration. so, personality here can be formed positively with the support of the team's collaboration. torabi, (2016) states that the results of correlation and multiple regression analysis show that there is a positive and significant relationship between "team workgroup level factors" and their components namely "group structure, norms and size" and "human resource empowerment" (more significance level lower than 0.05), based on the personality of each individual. the intensity of the relationship between team workgroup level factors and human resource empowerment is equal to 0.669, which is directly and positively related to the coefficient. in addition, because the coefficient of determination is obtained, the variable levels of team workgroup factors and their components can predict changes in the variables of empowerment of human resources. thus, a common thread can be drawn that teamwork is influenced by each personality of the individuals in the organization. thus, based on the results of the overall calculation above it was found that, obtained a very significant correlation coefficient of the highest value between x1 and x4 is 0.477, the correlation between x1 and y is 0.439, the correlation coefficient between x1 and x2 is 0.334, and the lowest value of the correlation coefficient between x3 and x2 is 0.181. thus, it was found that organizational culture (x1) has an indirect effect on ocb through procedural justice (x4) which is a variable that has a very significant influence. conclusion the five variables studied the influence on organizational citizenship behavior, namely organizational culture, teamwork, personality, and procedural justice have a significant direct influence on organizational citizenship behavior. so from the results of the research and findings, it was concluded that organizational citizenship behavior (ocb) at pt job pertamina medco e & p tomori sulawesi had a direct effect on farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 52 the five variables above but personality variables with teamwork did not have a positive effect. then the results of this study can be used as the basis for the development and improvement of organizational citizenship behavior in companies by considering the procedural justice variable as mediation in improving other variables; such as organizational culture, personality, and teamwork. acknowledgment this research was supported by job tomori pertamina north sulawesi. references ahmadya, gholam ali, aghdas nikooravesh, and maryam mehrpour. 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(2019). effects of inclusive leadership on organizational citizenship behavior: the mediating roles of organizational justice and learning culture. journal of pacific rim psychology, 13, 1-11. zerella, sarah, kathryn von treuer, and simon albrecht. (2017). the influence of office layout features on employee perception of organizational culture. journal of environmental psychology, 1-44. farida, i., tippe, s., & tunas, b.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (45-53)  the effect of organizational culture, personality, teamwork, procedural justice, and organizational citizenship behavior on job tomori pertamina north sulawesi.  https://doi.org/10.21009/jobbe.003.1.05 14 abstract this study aims to analyze the direct and indirect effects of antecedent variables on employee engagement. the study involved 272 respondents from two regional companies in the water sector in the bogor area. the study took place from april 2018 to may 2019. analysis of the data used structural equation modeling partial least square (sempls) on employee engagement variables as the first endogenous variable, employee job satisfaction as the second endogenous variable and as mediating variables, as well as organizational culture variables and work environment as an exogenous variable. the results showed that the organizational culture variables, directly and indirectly, did not have a significant effect on the endogenous variables of employee engagement. exogenous variables of the work environment, directly and indirectly, have a positive and significant influence on the employee engagement variable. the implication of the results of this study is that the regional water supply company (pdam) in the bogor region needs to develop its work environment attributes that can improve employee job satisfaction. this needs to be done considering that employee job satisfaction will affect the degree of employee engagement. keywords: employee engagement, employee job satisfaction, organizational culture, work environment received: 19 juny 2019 ; accepted: 19 juny 2019 ; publish; julyi 2019 how to cite: firdaus, m. a., hamidah, h., sutanto, s.. (2019). antecedent direct and indirect of employee engagement. journal of business and behavioural entrepreneurship, 3(1), 14-26. https://doi.org/10.21009/jobbe.003.1.02 antecedent direct and indirect of employee engagement muhamad azis firdaus universitas negeri jakarta, indonesia e-mail: muhamadazisf_s3@mahasiswa.unj.ac.id hamidah universitas negeri jakarta, indonesia e-mail: hamidah@unj.ac.id slamet sutanto universitas negeri jakarta, indonesia 15 introduction sukmana and firmansyah's research (sukmana & firmansyah, 2014, pp. 48–69) shows the existence of bumd problems in several regions such as bekasi, bandung, and makassar where there are bumds with unhealthy conditions, even said that 40% of 1,113 bumds in indonesia has poor performance similarly, research on bumd in riau province shows that of the 4 regional companies, only two have audit commissions (darsa, andreas, & arifin, 2015, pp. 1–9). this shows that supervision of bumd operations is still minimal. the strategic role of regional bumds requires bumds to be able to do public services as well as possible and strive to be able to contribute to regional original income (pad). siswadi (2012, p. 9) said that the carrying capacity of asset ownership and large scale businesses owned by bumd such as regional water companies (pdams) and regional development banks (bpd) cannot fully contribute to pad significantly. this can be caused by the wrong viewpoint on bureaucratization in bumd so that bumd operations become less professional. in order to increase the professionalism of bumd employees, strategic policies are needed, especially in the field of human resources. one that can be developed is related to the degree of employees engagement. every employee has a different degree of employee engagement with the company/organization. employee engagement is a concept related to individuals (dajani, 2015). how employees have a commitment to their company, employee loyalty, how employees are responsible in carrying out their duties, how employees are involved in the company, how employees are involved in corporate activities outside working hours, how employee loyalty is part of indicators that can describe employees' attachment to their company. in truss et.al's conclusion that differences in 'doing' engagement and 'being' engaged show that employee engagement is a theme that needs to be implemented, it is necessary to do common perceptions, and need to be developed as a construction/concept (truss et al ., 2011). there are many factors that can influence the degree of employee engagement and the consequences of the degree of engagement such as participative leadership and organizational context factors (kim, 2011), self evaluation and perceive organizational support (chhetri, 2017), perceived supervisor support, perceived organizational support and organizational justice (rasheed, khan, & ramzan, 2013), distributive justice, absorptive capacity, and job design (handayani, anggraeni, & rahardja, 2017), reward system, job enrichment, leadership effective, scope of advancement & self-development , employment security, self-managed team & decision making authority (barik & kochar, 2017), employee perceptions of work and everything related to their work (david, 2016), organizational culture (kaliannan & adjovu, 2015), leadership (suharti & suliyanto, 2012) and corporate social responsibility (tariq, 2015). in addition to the antecedent variables of employee engagement, employee engagement variables can also influence organizational commitment variables (hanaysha, 2016). likewise, some variables that do not support increasing employee engagement are lack of understanding of the employee's engagement (davis, frolova, & callahan, 2016). based on these problems, the purpose of this study is to analyze the antecedent variables of employee engagement. with known antecedent variables, this study is significant with the needs of employees who have a high degree of employee engagement, so that it can improve the performance of bumd in general. firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 16 the antecedent variables used to predict the degree of employee engagement, namely organizational culture, work environment, and job satisfaction are new variables that are analyzed using structural equation modeling partial least square (sempls) in the analysis unit of permanent employees in public corporation. literature review high labor turns over in a company shows a problem related to the employee's engagement to the company, which causes employees to move to work or resign. labor turn over can also indicate the absence or lack of ownership of employees towards their organization/company. the lack of commitment of employees, in addition to impacting labor turn over (shuck, twyford, reio, & shuck, 2014), can further impact on company performance (anitha, 2014). with employee engagement have a significant role in a company or organization. employee engagement is a potential that can influence the performance of the company in general, including through the efficiency and effectiveness of the company's operations. employee engagement is a characteristic feeling of commitment, desire, and energy (holbeche & matthews, 2012, p. 7), a degree that shows a person's activeness in his work (thomas, 2009, p. 11), positive feelings, fulfilling, work in relation to the mind with the characteristics of vigor, dedication, absorption (kalia & verma, 2017), commitment, dedication and loyalty to the organization, to coworkers and to their supervisors (marciano, 2010, p. 40). alfes et al in armstrong (2014, p. 194) mention that employee attachments regarding intellectual engagement, affective engagement, and social engagement. noe (2011, p. 277) defines employee engagement is a degree of involvement of an employee in his work and is strongly committed to his work and his company. likewise kahn's definition in armstrong (2014, p. 194), in kahn's statement, can be interpreted that employee attachment as the utilization of organizational members for their own work roles is manifested in the form of physical, cognitive, and emotional involvement in their work. employee satisfaction is defined as a positive feeling towards a job as a result of the characteristics of the job itself (robbins & judge, 2013, p. 74), concerning employees' feelings for their work as a result of evaluating everything related to the work (locke, 2009, p. 107). armstrong and taylor (2014, p. 177) mention the effects on the level of satisfaction and dissatisfaction. saner (2015) in his research used the minnesota satisfaction questionnaire (msq) questionnaire. research gu and itoh (2015) used employee satisfaction variables arranged in 5 dimensions. the dimensions that determine job satisfaction are also analyzed in malaysia, four factors that determine job satisfaction are benefits, support from colleagues, managerial support and co-conditions supported by career development (munir & rahman, 2016). research using grounded theory published in 2016 shows that there are several variables that significantly influence job satisfaction (izvercian, potra, & ivascu, 2016). an organization in which there are groups of people can certainly have a culture that can be different from other organizations. culture in an organization needs to be formed and continue to be synchronized with environmental conditions, both internal and external. according to bavik and duncan (2014, pp. 55–66), the behavior of individuals in organizations depends on internal and external forces that influence individuals, namely values, beliefs, and assumptions. organizational culture is defined differently by several experts including organizational culture is a form of the basic assumptions that are shared and studied by a group and use it to solve problems in adaptation with external and internal integration, firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 17 which runs quite well to be considered and then taught to new members in things that are correct in perception, thinking and feeling related to problems (schein, 2010, p. 18), shared values, principles, traditions and ways of doing things that affect the way members of the organization act (robbins & coulter, 2012, p. 52), what employees perceive and how these perceptions shape trust, values and expectations (gibson, 2011, pp. 31–32), describe organizational culture as a set of assumptions that are implicitly shared in an organization, which with the culture they make perceptions, think, and react i for various environments (kinicki & fugate, 2016, p. 480), ways to share experiences and membership in organizations that bind members informally and influence what they think about themselves and their work (wagner & hollenbeck, 2010, p. 283), a set of values, norms and guidelines for shared trust and understanding / adopted by the members of the organization and taught to members as the right way of thinking, feeling and belonging to each other (daft, 2010, p. 374), and shared values and beliefs that are used by members of the organization to understand the roles within the organization and organizational norms (luthans, 2011, p. 169). based on the organizational culture assessment instrument (ocai), there are four types of organizational culture, namely hierarchic (bureaucratic) culture, market culture, clan culture, and adhocratic culture (zavyalova & kucherov, 2010). characteristics of organizational culture according to ghosh (2014) consist of seven characteristics, namely: trust, openness, freedom to experiment, individualism (versus collectivism), attitude towards constructive dissent, participation and result orientation. ali bavik (2014) conducted research in the field of the hospitality industry using qualitative methods with the development of definitions found based on the definition of organizational culture. the results of the study found that there are 9 factors that determine organizational culture. a hawthorne survey results show that the work environment can affect productivity through better lighting (entrekin & scott-ladd, 2014). meanwhile, armstrong (2009, p. 976) states that the work environment involves several things, namely the work system. working conditions and how they behave with each other and their managers. odedina et al. (2011) state that the work environment involves many variables that can significantly affect the organization. olukunle s. oludeyi (2015) that a work environment is a number of relationships that exist between employees and employers and the environment in which employees work including technical, human and organizational environments. meanwhile, jain and kaur (2014) define a work environment as the environment in which people work. jain and kaur categorize the work environment into three parts, namely the physical work environment, mental work environment, and social work environment. kafui (2017) divides the work environment into three parts, namely physical work environment, psychological work environment, and social work environment. jan dul & canan ceylan (2011) states that the work environment consists of two dimensions, namely the social-organizational work environment and the physical work environment. the organizational social work environment refers to the social role of employees and their organizations in the context of job design, work groups, reward systems, and leadership styles. the physical environment refers to the physical context around it such as the workplace and around the building where they work. foldspang, et. al (2014) describes the physical environment and social environment. abdul raziq (2015) states that the work environment consists of two dimensions, namely work (work) and context (context). firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 18 idaya husna mohd (2016) states that working environment conditions will be able to attract prospective employees to apply to certain work environment conditions. related to a positive work environment, a positive work environment such as a healthy workplace, a safe workplace, access to information needed for work completion can increase productivity and employee commitment to the company. one of the instruments used to measure the work environment is the copenhagen psychosocial questionnaire (copsoq ii) released in 2007. the instrument was by zabrodska et.al (2014). other instruments were also developed to measure quality work life in five malaysian multinational companies (razak, ma'amor, & hassan, 2016). research method the study took place from april 2018 until april 2019 involving 272 permanent employees in regional owned enterprises (bumd) in the bogor region. structural equation modeling (sem) analysis is used to analyze the relationship between variables and measure the influence of one variable with another variable. there are two types of sem, namely covariance base sem (cb-sem) and variance base sem (vb -sem). cb-sem is used to confirm or reject a theory, through an explanation of the theoretical model by estimating covariance matrices for a number of data (hair, 2014, p. 4). based on what is conveyed by hair related to the rule of thumb (hair, 2014, p. 19) then the vb-sem or partial least square sem method will be used in the next analysis phase. the collection of quantitative data is carried out directly from the respondents through the questionnaire instrument related to the variables in the study. the variables contained in the questionnaire are employee engagement variables, organizational culture, work environment, and employee satisfaction in unidimensional first-order constructs, where the direction of the relationship is reflective between latent variables and indicators where all relationships are recursive. the dimensions of the endogenous and exogenous variables used in this study were developed from several kinds of literature as in table 1. table 1 variable and dimension of research firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 variable dimension sources employee engagement intellectual engagement, social engagement, and affective engagement (isa) (soane et al., 2012), (armstrong & taylor, 2014, p. 194) job satisfaction hygien factors dan motivator factors, hertzberg (robbins & judge, 2013, pp. 204–205) organization culture visible culture, espouse values, core value (luis r. gomez-mejia & balkin b., 2012, pp. 106–108) work environment physical environment and social environment (bojadjiev, petkovska, misoska, & stojanovska, 2015) 19 result and discussion the number of respondents was 272 divided into 2 regions, namely pdam tirta pakuan, bogor city, as many as 127 respondents where 72 respondents were male and 55 respondents were female. the other respondents were 145 respondents from pdam tirta kahuripan, bogor regency, which consisted of 97 male respondents and 48 female respondents. last respondent's education, it can be seen that the highest education level of respondents is at the bachelor level, where as many as 72 undergraduate respondents are in pdam tirta pakuan, bogor city, and 74 undergraduate respondents are in pdam tirta kahuripan, bogor regency. there is 1 respondent with s3 education level, namely in pdam tirta pakuan, bogor city. the lowest level of education in junior high school and lower, located in pdam tirta kahuripan, bogor regency, as many as 2 respondents. the age group of respondents, it is known that the age group 20-26 years amounted to 73 respondents consisting of 45 respondents in pdam tirta pakuan, bogor city, and 28 respondents were in pdam tirta kahuripan regency. bogor. the age group of respondents, which is greater than 53 years, is in pdam tirta kahuripan, which is 5 respondents. the lowest age of respondents was 20 years and the oldest age was 59 years, with an average age of 33.04 years. the working period of the most respondents was in groups of 1-5 years, namely as many as 149 respondents, followed by groups of 6-10 years, namely 60 respondents. the average working period of respondents is 7.92 years (8 years), where the working period is lowest, namely 1 year and the longest working period is 31 years. the next analysis is testing the structural equation model (structural equation model) of exogenous variables and endogenous variables of the study. the structural analysis in question is based on the variance where the nature of predictive research. testing is done through two stages, namely measurement model (outer model) and structural equation testing (inner model). outer models include testing the outer loading, average variance extraced (ave), and composite reliability (cronbach alpha). inner model testing is done by looking at the r square value (goodness fit model), path coefficient, and significance two tail. convergent validity test is used to see the correlation between latent variables and indicators. the criteria in this test are the greater the correlation value (original sample) the better the relationship between the indicator and the latent variable. validity testing can also be done by analyzing the value of average variance extraced (ave), where the value of ave must be> 0.5. from table 1 it is known that all variable forming indicators are ave> 0.5. this shows that all indicators are valid and can be used for the next research phase. reliability (reliability) of the instrument is used to see the accuracy, consistency of the instrument in determining the contract/variable. measurement of reliability can be observed using cronbach alpha and composite reliability. table 2 validity and reliability test results variables cronbach's alpha composite reliability average variance extracted (ave) organization culture 0.875 0.896 0.501 job satisfaction 0.922 0.933 0.500 employee engagement 0.776 0.838 0.502 wor environment 0.903 0.917 0.511 firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 20 that all variables can be reliable, so that they can be used for the next research phase. reliability can also be used with composite reliability, where the value of composite reliability will be greater than cronbach alpha. table 1, shows that all variables have composite reliability> cronbach alpha value. thus, measurement with composite reliability shows all variables have high reliability and can be used for the next research stage. the inner model measurement is intended to see the suitability of the model and measure direct and indirect influences. to get the results of the inner model analysis, the research model needs to be bootstrapping. the inner model analysis uses r square (goodness fit model), path coefficient, and indirect effect. r square shows how much endogenous variables are affected by exogenous variables. the calculation results in table 3 show that the first endogenous variable is the variable employee job satisfaction influenced by organizational culture variables and work environment variables of 71.3%. endogenous variables employee engagement is influenced by organizational culture variables, work environment variables and variable job satisfaction of 39.5%. table 3 rsquare the path coefficient of structural equations can be found through the values of tstat and p values. table 4 shows that three paths have a positive and significant influence that has a value of tstat> 1.96, and p-value <0.05, which is the influence of job satisfaction on employee engagement, effect of work environment on employee satisfaction and effect of work environment on employee engagement. the original sample value (o) shows a positive value, meaning that the effect that occurs is proportional/positive. the effect of job satisfaction on work engagement has the original sample value (o) 0.31, and the effect of the work environment on employee entity the original sample value is 0.468 which falls into the moderate category. while the influence of the work environment on job satisfaction the original sample value of 0.753 is included in the strong influence. this is in line with previous studies (abraham, 2012; abualrub, el-jardali, jamal, & abu al-rub, 2016; bin, 2015; bojadjiev et al., 2015; chaudhry, jariko, mushtaque, mahesar, & ghani, 2017 ; dimitrios, kastanioti, maria, & dimitris, 2014; mohd et al., 2016; tio, 2014). there are 2 paths of insignificant influence, namely the effect of organizational culture on employee job satisfaction, and organizational culture with employee engagement. this insignificant influence is indicated by the value of tstat <1.96 and p value> 0.05. table 4 path coeficient firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 endogenous variables r square r square adjusted job satisfaction 0.713 0.711 employee engagement 0.395 0.388 variables original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/ stdev|) p values organization culture -> job satisfaction 0.108 0.120 0.076 1,417 0.157 organization culture -> employee engagement -0.156 -0.146 0.093 1,677 0.094 job satisfaction -> employee engagement 0.311 0.309 0.102 3,057 0.002 work environment-> job satisfaction 0.753 0.744 0.072 10,528 0.000 work environment -> employee engagement 0.468 0.467 0.119 3,944 0.000 21 the indirect effect of exogenous variables on endogenous variables employee attachments can be seen in table 5. the effect of exogenous variables on organizational culture on employee engagement variables through the mediating variable kepuassan kerja is not significant because of the value of tstat 1.162 <1.96 and p-value 0.246> 0.05. the results of this study are different from the results of other studies (bigliardi, ivo dormio, galati, & schiuma, 2012; biswas, 2015; dimitrios et al., 2014; jiony, tanakinjal, gom, & siganul, 2015; kalia & verma, 2017). table 5 indirect influences the influence of the work environment on employee engagement through mediation variables job satisfaction in table 5, shows a significant relationship where the value of tstat 3.095> 1.96 and the p value of 0.002 <0.05. the original sample value shows the strength of influence and the nature of the relationship of exogenous variables to endogenous variables. the original sample value of the variable linkgungan work towards employee engagement through job satisfaction of 0.235 shows that relations are directly proportional to the strength of the relationship included in the moderate category. conclusion conclusion of inference analysis for the whole sample using a confidence level of 95%. first, the influence of the organizational culture on the engagement of employees of pdams in the bogor region is not significant. second, the influence of the work environment on the engagement of employees of pdams in the bogor region is positive, moderate and significant. third, the influence of organizational culture on job satisfaction of pdam employees in the bogor region is not significant. fourth, the influence of the work environment on pdam job satisfaction in the bogor region is positive, strong and significant. fifth, the effect of job satisfaction on the engagement of employees of pdams in the bogor region is positive, moderate and significant. sixth, the effect of organizational culture on employee engagement through job satisfaction of pdams in the bogor region is insignificant. seventh, the effect of the work environment on employee engagement through job satisfaction of pdams in the bogor region is positive, weak and significant. recommendation based on the research conclusions, the researcher recommends several things, namely first, based on the conclusions and implications of the research results, where directly or indirectly (through employee job satisfaction), the work environment variable will influence positively and significantly the pdam employees' attitudes in the bogor area. for this reason, in order to increase the degree of engagement of pdam firdaus, m. a., hamidah, h., sutanto, s.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 variables original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values organization culture -> job satisfaction -> employee engagement 0.034 0.038 0.029 1,162 0.246 work environment -> job satisfaction -> employee engagement 0.235 0.229 0.076 3,095 0.002 22 employees, the pdam management needs to carry out activities that can create a conducive work environment, both in the physical environment and social environment. second, the creation of a work environment in the physical work environment and social environment will foster employee job satisfaction, which in turn fosters employee engagement with the company. the physical environment that can be improved is the environment outside the company building, the environment in the building, ventilation in the workspace, complete security in the workplace, lighting in the workspace, and equipment and equipment to work. the social environment that needs to be developed is recognition of employee achievements, the work itself, opportunities to grow and develop, relationships with coworkers, supervision of supervisors, reward systems, corporate values, responsibility for work, positive feelings towards the organization, justice in determination salary and core value of the company. third, organizational cultural variables that do not have an influence on employee attachments can be developed towards the formation of company image to gain stakeholder trust. as a regional government-owned company, pdams need to carry out strategic policies to build a corporate culture, especially on the visible dimension of culture, espoused values, and core values. fourth, pdam tirta pakuan, bogor and tirta kahuripan pdam, bogor regency, need to carry out operational strategies to improve the performance of the indicators that have the lowest mean value is to encourage employees to pay attention to their work when outside working hours (item number 5 variable employee engagement), compile a carrier path that matches the expertise (item number 17 variable employee job satisfaction), make policy compensation in accordance with employee performance (item number 9 organizational culture variables), as well as operational policies in employee career development (item number 10 work environment variables). fifth, the policy in maintaining and improving the performance of indicators that have the highest mean value needs to be done as well. these indicators are encouraging employees to have conformity of action with company objectives (item number 8 variable employee attachment), salary payment system / mechanism every month (item number 7 variable employee job satisfaction), synchronization of company vision with individual goals of employees working in pdam (item number 15 variable organizational culture), and maintain the cleanliness of places of worship (item number 3 variable work environment). bibliography abraham, s. 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(2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (14-26)  antecedent direct and indirect of employee engagement.  https://doi.org/10.21009/jobbe.003.1.02 75 abstract the present paper attempted to determine the factors that might affect turnover intention. although the research participants consisted of 234 employees of pt petrosea, only samples from 152 employees were used. the samples were derived by using the simple random sampling method and collected through a questionnaire. the collected data was then analyzed based on the structural equation modeling (sem) with an application software called lisrell. the results showed that the following variables, adversity quotient, job satisfaction, and job motivation, did not have a significant effect on turnover intention. however, the regression equation showed that the higher scores of adversity quotient, job satisfaction, and job motivation would make turnover intention lower. thus, to prevent staff or labor turnover, a company is advised to select those prospective employees that have a higher score of adversity quotient since it has a significant effect on job satisfaction and motivation. this might result in decreasing turnover intention. keywords: adversity quotient, turnover intention, structural equation modeling, lisrell. received: 07 may 2019 ; accepted: 08 may 2019; publish; december 2018 how to cite: prasetya, w., akbar, m., & tinas, b.. (2018). on identifying the factors that affect turnover intention. journal of business and behavioural entrepreneurship, 2(2), 7593. https://doi.org/10.21009/jobbe.002.2.04 on identifying the factors that affect turnover intention wibawa prasetya unika atma jaya email: wibawaprasetya_im08s3@mahasiswa.unj.ac.id ma’ruf akbar universitas negeri jakarta billy tunas universitas negeri jakarta 76 introduction human resources play a very important role in the smooth operation of companies. no matter how sophisticated the equipment owned by a company, the availability of human resources is much more important because they are the individuals that operate the equipment. some companies even state that their employees are their assets and they play a determinant role in the success of a company (robbins & coulter, 2015). because of this, a company will try its best to maintain its employees and to prevent staff or labor turnover. pt. petrosea. tbk is a company that is engaged in oil and coal businesses. its headquarter is located in tangerang, but its oil and coal businesses are located in kalimantan and papua. one of the big problems faced by this company at present is its labor turnover that reaches 28%, while the standard labor turnover for coal mining companies is approximately 9-17% (amma, 2013). thus, such a high level of labor turnover in this company is expected to have an effect on the employees’ performance. according to the performance report published in 2017 by the ministry of industry, labor productivity for the mining sector was, in general, decreasing from 9,83% (in 2014), to 7,65% (in 2015), and to 7,21% (in 2016). in addition, indonesian economic growth only reached 5,06%. in terms of growth, the mining sector (oil, gas, and coal) contributed only a small percentage, namely 0,74% (detik finance, 2018). to improve employee performance, a company should try its best to decrease the rate of labor turnover. there are several factors that might affect labor turnover. one of them is adversity quotient, which has proved to have a significant negative correlation with turnover intention (wirabrata, 2013). in addition, the adversity quotient has a significant relationship with job satisfaction (mirza, r & atrizka, d, 2018). therefore, the management should be concerned with the following question: have they given their employees suitable work that is motivating to improve their job satisfaction and job performance? if employees are given work that is motivating, this will improve their job satisfaction and will decrease turnover intention (ting-pang huang, 2011). research by sajjad, aseif., ghazanfar, hassan, and ramzan (2013) demonstrated the effect of motivation on the turnover intention of the employees of a telephone and communication company in pakistan. they showed that the higher the motivation was, the lower the turnover intention would be. in addition, a study conducted by chao-ying shen (2014) on the adversity quotient (aq), which measured how individuals responded to adversity, showed that the higher the aq score was, the higher the employees’ ability to respond to adversity would be. this means employees are able to manage job stress well and turn it into motivation. in other words, although such employees have higher stress related to their work, with a higher aq score they are able to turn the stress into motivation. according to previous research, aq has been shown to play an important role in reducing the rate of labor turnover. however, in hiring their new employees, many companies frequently take only intelligence quotient (iq) and emotional quotient (eq) into consideration. someone who has high iq and eq scores does not automatically lead to the high aq score. there are many cases in which people with the high iq and eq scores fail to overcome difficulties and obstacles in life, but there are people who are determined to overcome difficulties and obstacles they face and are successful in their lives. the aq seems to distinguish one individual from another (stoltz, 2000). thus, the present research attempted to determine the extent of the effects of aq, job satisfaction (js), and job motivation (jm) on the turnover intention (toi) of pt. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 77 petrosea employees. our study was based on previous research, but we argued for the existence of intervening variables. in previous research, many researchers only conducted partial studies, for example, the effect of adversity quotient on turnover intention, job motivation on turnover intention, job satisfaction on turnover intention, and they analyzed their data based on the regression equation with a mos. in our present research, we studied the effect of adversity quotient on turnover intention using two intervening variables, i.e., job satisfaction and job motivation, and we analyzed our data based on the structural equation modeling with lisrell. literature review adversity quotient (aq) according to stoltz (2005), aq refers to one’s ability and perseverance in dealing with challenges and obstacles in daily life and one’s adherence to his principle and dream no matter what happens to him. the definition of aq was also given by venkatesh and shivaranjani (2016) who stated that aq is the fundamental factor to success and is manifested in one’s ability and performance. according to madelin (2001), aq refers to an individual's ability to respond to adversity. a high score of aq shows someone’s exceptional ability to respond to adversity, while a low score of aq may indicate that the person gives up easily when facing adversity and obstacles. based on several definitions of aq above, we may conclude that aq refers to someone’s ability to handle a problem, to question why and how the problem occurs, to identify the effects that the problem causes, and someone’s ability and resilience to solve the problem. according to stoltz (2000), someone’s aq can be categorized into several types of score, as shown in table 1 below. table 1. types of aq score prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 score description 166 200 the individual has the ability to handle adversity and to move on with his life. 135 165 the individual is able to survive adversity by making use of the majority of his potential and can still improve himself by addressing several aspects of the aq. 95 134 the individual is able to handle adversity adequately because he thinks everything is relatively fine. 60 94 the individual appears not to be able to make use of his potential. the adversity may cause him severe and unnecessary damage and makes it even more difficult for him to move on. 59 below the individual tends not to make use of his potential and he experiences unnecessary misery because of his lack of motivation, energy, health, vitality, performance, and resilience. 78 aq has 4 dimensions (stoltz, 2000), namely: a. control this dimension refers to how much control the individual has over adversity. a score of 38-50 points indicates that someone has high control over adversity. high control has wide and positive implications and plays an important role in improving someone's performance, productivity, and health in the long term. a score of 24-37 points shows that someone is able to respond to adversity and have control over it. a score of 10-23 points indicates that someone does not have control over adversity and there is little he can do to prevent or limit the damage. low control makes someone less able to change the situation. b. origin and ownership this origin dimension explains who and what causes adversity, while the ownership dimension explains to what extent an individual recognizes the effects of the adversity. a score of 38-50 points reflects someone's ability to avoid blaming himself unnecessarily and places responsibility correctly to himself. a score of 24-37 points shows that someone responds to adversity as something that comes from outside and sometimes from within. the person will blame himself unnecessarily for the adversity. he will only be responsible for his faults and will not contribute any further. a score of 10-23 points indicates that the individual views adversity as his own fault and if something good happens, it is considered as luck caused by external forces. c. reach this dimension question to what extent adversity will affect certain aspects of an individual’s life. a score of 38-50 reflects someone's ability to respond to adversity as something specific and limited. if someone is able to limit the adversity, he will be more empowered and will feel less overwhelmed. this will make frustration as well as life difficulties and challenges easier for him to handle. for an individual with a high score in this dimension, a bad day is not a setback; a grueling meeting is not a failure, a conflict with someone close to him is just a misunderstanding, not a relationship breakdown. a score of 24-37 points indicates someone's ability to respond to adversity as something specific, but occasionally he lets adversity affect certain aspects of his life. when he is disappointed, he will consider adversity as a disaster and views adversity much larger than it is supposed to be. a score of 10-23 points indicates that the individual views adversity as something that destroys his life. criticism from his superior will be viewed as career breakdown and financial loss as financial bankruptcy. d. endurance this dimension questions how long the adversity and its causes will last. the lower the endurance is, the individual will feel that adversity will last long. a score of 38-50 points indicates that someone may consider success as something that lasts long or even permanently, while adversity is viewed as something temporary. a score of 24-37 points indicates that someone will respond to adversity and its causes as something bad and something that will last long. as a result, the person may delay making a constructive decision. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 79 his faith and the decision to move on may be fine, but on a certain occasion, he feels weakened, especially when he experiences a heavy setback. a score of 10-23 points shows someone’s feeling that adversity and obstacles will last long and something positive as a temporary thing. job satisfaction (js) robbins (2003) pointed out that js refers to employees’ perception and attitude towards the differences between the rewards that are gained and the rewards that are actually received. according to mathis (2006), js is the employees' good and positive emotional state based on their work experiences, while handoko (2004) stated that js refers to employees' opinions about their jobs, whether or not emotionally it is a pleasant one. based on the above definitions, js may be defined as the feeling or the emotional conditon experienced by employees when the extrinsic factor (e.g., supervision, advancement, security, policy, working condition, colleague, compensation, social status, and recognition) and the intrinsic factor (e.g., activity, creativity, achievement, authority, compentency use, responsibility, moral value, and social service) fall within the expectation of employees. the minnesota satisfaction questionnaire (msq) is a research instrument widely used to collect data on js. this instrument has been used by many researchers in their studies on js. according to gibson (1996), the main reason for the popularity of this instrument is that it has the criteria or the attributes of a good survey, namely validity (the instrument is able to measure what it is supposed to measure), reliability (the instrument shows consistency), content (the instrument contains factors that affect the working environment and organization effectiveness), language style (the instrument uses language that is easy to understand), norm (the instrument interprets the job satisfaction survey as absolute basis). below in table 2 are 20 aspects of js included in the msq. table 2. job satisfaction items in msq prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 no item scale 1. activity. the opportunity to keep busy all the time 1-5 2. freedom. the opportunity to do work in one’s own way 1-5 3. variation. the opportunity to do something different from time to time 1-5 4. social status. the opportunity to become part of the work environment 1-5 5. relationship with superior. the method used by superior to manage subordinates 1-5 6. technical supervision. the ability of superior to make correct decisions 1-5 7. moral value. the ability to do things that are not against one’s own conscience 1-5 8. security. the opportunity to feel securely employed 1-5 9. social service. the opportunity to do things for other people 1-5 10. authority. the opportunity to inform people about things to do 1-5 80 source (weiss et al. 1967) motivation according to robbins and judge (2011), motivation refers to a process that is concerned with the intensity, direction, and resilience shown by an individual in achieving his goal. in general, motivation is related to all kinds of goals. one of them, the organization goal, focuses on work behavior. according to colquit, lepine, and wesson (2011), motivation is defined as a group of energetic forces, both externally and internally, shown by employees in their work efforts viewed in terms of direction, intensity, and resilience. another definition was provided by greenberg and baron (2003) who stated that motivation is a series of processes that arouse, direct and maintain the human behavior in achieving a certain goal. based on the definitions by several scholars above, it can be concluded that job motivation (jm) refers to the internal push that encourages someone to do what he is assigned to do by using his authority and skills to make his work bear fruit and there is company transparency in acknowledging the results of his work. someone’s motivation data can be collected through an instrument called the job diagnostic survey (jds) proposed by lee and ross (2007) and then converted into the mps (motivation potential score), as seen below. mps = motivation potential score according to hackman and oldham (1980), the mps may reveal employees’ motivation and their motivation can be classified into three groups as follows: 1. low motivation group with an mps score of 1 – 16 points 2. medial motivation group with an mps score of 17 – 43 points 3. high motivation group with an mps score of 44 – 125 points prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 11. competency use. the opportunity to do one’s best in work 1-5 12. application of company policy. the company policy in practice 1-5 13. compensation. the opportunity of being compensated in accordance with one's achievement 1-5 14. advancement. the opportunity of advancement in one's work 1-5 15. responsibility. the freedom to make one’s own decision 1-5 16. creativity. the opportunity to use one’s own competency in work 1-5 17. working condition. the condition at work 1-5 18. colleague. the ability to get along well with colleagues 1-5 19 recognition. the possibility of getting the reward for best work completed 1-5 20. achievement. the opportunity for having a sense of achievement in one's work 1-5 81 turnover intention (toi) a number of scholars provided their own definitions for toi. for example, jen hung wang., et al (2016) referred to it as the cognitive process experienced by unsatisfied employees and has been viewed as a variable that may predict the actual staff or labor turnover. according to haggala and jayatilake (2017), toi is a voluntary intention to regard a company as a place of employment or to leave a company totally. another definition proposed by sager, et al (1998) argued that toi is a mental decision that has to be made by someone whether he should keep his job or leave his job. based on the definitions above, it can be concluded that toi is someone's wish to leave his current job in order to find a better new job. the wish to leave a company is shown by behaviors such as thinking of leaving, searching for other alternative jobs, having the intention to leave, being repeatedly absent from work, feeling lazy to work, complaining to superior, and other negative behaviors. methodology the research was conducted on the employees of pt. petrosea located in kelurahan kariangau, tanjung batu, balikpapan, east kalimantan timur, with a population consisting of 245 research participants. the number of samples was determined by applying the slovin formula shown below. in this work, we used questioner based on several parameters, i.e., adversity quotient, job satisfaction, job motivation, and turnover intention. the number of questioner’s statement for each variable was 40 items, 20 items, 10 items, 8 items, respectively. to measure the adversity quotient, we used stoltz’s method. meanwhile, the job satisfaction was based on minnesota satisfaction questionnaire and the job motivation was based on job diagnostic survey. (solvin’s equation) where n is the number of sample, n is the number of population, and d is the estimated error. the samples were selected by using the simple random sampling method. the data was collected by requesting the research participants to fill out the questionnaires. before it was administered, the questionnaires were tested for validity and reliability with a sample consisting of 30 respondents. after the questionnaires had been proved to be valid and reliable, they were administered to collect the research data, resulting in a sample consisting of 152 respondents. the collected data was later analyzed based on the structural equation modelling (sem) with an application software named lisrell. discussion respondent characteristics as stated earlier, a sample consisting of 152 respondents was collected from pt. petrosea is located in kelurahan kariangau, tanjung batu, balikpapan, east kalimantan. the sample has the characteristics shown in table 3 below. , 1 2   dn n n prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 82 table 3. respondent characteristics as we see in the above table, the majority of employees consisted of men (62%) and women (38%). the age of the employees was dominated by 21-35-year-old employees (73%), while the rest was more than 35 years old (27%). the length of the work consisted of 0 – 5 years (60%) and more than five years (40%). the adversity quotient (aq) measurement the results of the aq measurement from pt. petrosea are shown in table 4 below. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 characteristics number of respondents percentages gender male 94 62% female 58 38% total 152 100% age 21-25 24 16% 26-30 52 34% 31-35 35 23% 36-40 20 13% 41-45 13 9% 46-50 6 4% 51-55 2 1% total 152 100% length of work < 1 year 40 26% 1-5 years 51 34% 6-10 years 40 26% > 10 years 21 14% total 152 100% variable sub-variable questionnaire item score average total score aq control the fact that my colleagues at work did not accept my idea is something that … (c1) 3,18 31,26 the fact that i had a violent quarrel with my colleagues at work is something that … (c2) 2,94 the fact that my colleagues at work did not pay enough attention to me is something that … (c3) 3,20 the fact that my colleagues at work were seriously sick is something that … (c4) 3,08 the fact that i did not get picked up by the company bus is something that … (c5) 3,16 83 table 4. the aq scores of pt. petrosea employees prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 the fact that the company project that i was responsible for failed is something that … (c6) 3,05 the fact that i was forced to accept salary reduction is something that … (c7) 3,14 the fact that the doctor warned me about my health is something that … (c8) 3,16 the fact that i accepted the unfavorable results of my work evaluation is something that … (c9) 3,26 the fact that i was not promoted is something that … (c10) 3,07 origin the reason why my colleagues did not accept my idea is completely related to … (or1) 3,19 32,03 the reason why my colleagues did not pay enough attention to me is completely related to … (or2) 3,14 the reason why i did not get picked up by the company bus is completely related to … (or3) 3,31 the reason why i was forced to accept salary reduction is completely related to … (or4) 3,18 the reason why i was not promoted is completely related to … or5) 3,30 qwnership the fact that i had a violent quarrel with my colleagues at work is something that i feel … (ow1) 3,23 the fact that my colleagues at work were seriously sick is something that i feel … (ow2) 3,18 the fact that the company project that i was responsible for failed is something that i feel … (ow3). 3,26 the fact that the doctor warned me about my health is something that i feel … (ow4) 3,20 the fact that i accepted the unfavorable results of my work evaluation is something that i feel … (ow5) 3,04 reach the fact that people did not pay attention to my presentation is something that … (r1) 3,16 30,91 the fact that my relationship with colleagues at work and with family did not work well is something that … (r2) 3,07 the fact that i was asked to move if i still wanted to work is something that … (r3) 2,97 the fact that i was not approved to do something important is something that … (r4) 3,06 the fact that i had negative feedback from my close friend is something that … (r5) 3,07 84 as seen in table 4 above, the total score of control reached 31,26 points, which means it lies between 24-37 points. this score shows that the employees of pt. petrosea experienced adversity at work, but the adversity was still within their control. however, if the adversity got worse, they might not be able to maintain their control. the total score of both origin and ownership control reached 32,03 points, which means the score lies between 24-37 points. this score shows that on average the employees of pt. petrosea responded to adversity as something caused by external forces and sometimes brought about by their own faults. on average the employees of pt. petrosea blamed themselves unnecessarily for the unfavorable effects of adversity and they would be responsible only for the adversity brought about by their own faults. they also did not want to offer more contributions. the total score of reach was 30,91 points, which means it lies between 24-37 points. this score shows that the employees of pt. petrosea responded to adversity as something special or specific, but they sometimes embraced adversity and considered it part of their life. when they felt disappointed, they would consider adversity as a disaster and make it even worse than it was supposed to be. the total score of endurance reached 30,24 points, which means it lies between 24-37 points. this score indicates that the employees of pt. petrosea responded to adversity as something that would last long. this sometimes made the employees delay making constructive deciprasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 the fact that my colleagues at work were seriously ill is something that … (r6) 3,09 the fact that my investment strategy failed is something that … (r7). 3,20 the fact that my car broke down on a trip is something that … (r8) 3,03 the fact that my friends did not reply to my messages is something that … (r9) 3,22 the fact that my cholesterol level was too high is something that … (r10) 3,04 endurance the reason why people did not pay attention to my presentation ... (e1) 2,95 30,24 the reason why my relationship with someone i loved did not work well … (e2) 2,95 the reason why i was asked to move … (e3) 2,99 the reason why i was not approved to do something important … (e4) 2,95 the reason why i had negative feedback from my close friend … (e5) 3,16 the reason why my colleagues at work were seriously ill … (e6) 3,07 the reason why my investment strategy failed … (e7) 3,04 the reason why my car broke down … (e8) 2,95 the reason why my cholesterol level was too high … (e9) 3,11 the reason why my friends did not reply to my messages ... (e10) 3,06 85 sions. it was good for them to maintain their faith and to step forward, but on a certain occasion, their spirit and hope might decrease or even disappear, especially when suffering a severe setback. the score of aq in total reached 124,44 points, which lies between 95 – 134 points. this score indicates that the employees were quite good in their responding to all kinds of adversity at work because they thought everything seemed relatively fine. the job satisfaction (js) measurement js was measured based on the data collected from the minnesota satisfaction questionaire (msq). the questionnaire consists of 20 items with responses ranging from completely satisfied (5), satisfied (4), neither satisfied nor unsatisfied (3), unsatisfied (2), completely unsatisfied (1). the measurement results can be seen in table 5 below. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 no indicator average 1 activity. the ability to keep busy all the time 3,04 2 freedom. the opportunity to do work in one’s own way 3,14 3 variation. the opportunity to do something different from time to time 2,86 4 social status. the opportunity to become part of the work environment 2,63 5 relationship with superior. the method used by superior to manage subordinates 3,04 6 technical supervision. the ability of superior to make correct decisions 2,93 7 moral value. the ability to do things that are not against one’s own conscience 2,80 8 security. the opportunity to feel securely employed 3,12 9 social service. the opportunity to do things for other people 2,89 10 authority. the opportunity to inform people about things to do. 2,96 11 competency use. the opportunity to do one’s best in work 3,22 12 application of company policy. the company policy in practice 2,99 13 compensation. the opportunity of being compensated in accordance with one's achievement 2,86 14 advancement. the opportunity of advancement in one's work 3,14 15 responsibility. the freedom to make one’s own decision 3,08 16 creativity. the opportunity to use one’s own competency in work 2,88 17 working condition. the condition at work 2,64 18 colleague. the ability to get along well with colleagues 2,76 19 recognition. the possibility of getting a reward for the best work completed 2,70 20 achievement. the opportunity for having a sense of achievement in one's work 2,58 total score 58,26 total score average 2,913 86 table 5. js scores the classification of employees’ js can be measured by using the following formula: scale range (sr) = (max score-min score)/5 sr = (5-1)/5 = 0,8 based on the scale range above, we can write a table containing the classification of pt. petrosea employees' js, as shown below. table 6. classification of js the present research found that on average the score of pt. petrosea employees' js was above 2,913. this means the employees were fairly satisfied with their jobs. js was one of the variables investigated in this study because it has proved to be one of the important factors that can trigger turnover intention. the job motivation (jm) measurement to determine the motivation level of pt. petrosea employees, we measured it using the jds (job diagnostic survey). the jm measurement was done by totaling the score of each item and then counting the average score for the existing 5 aspects of motivation. the table below presents the average score of each aspect of jm. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 index js category 1 – 1.8 completely unsatisfied 1.8 – 2.6 unsatisfied 2.6 – 3.4 fairly satisfied 3.4 – 4.2 satisfied 4.2 5 completely satisfied indicator item the average score of the item average of indicator variation of skills i think the work i do is quite simple and does not vary. 3,17 3,06 i think the work i do requires complex/complicated skills and competence. 2,95 work identity i think i am able to do my work from the beginning to the end with good results. 2,86 2,875 i think i am given chances to do my work until it is completed. 2,89 work significance i think the results of my work can provide positive effects to my colleagues. 2,99 2,925 i think the results of my work can provide positive effects on the company's progress. 2,86 autonomy i think my work and my position at work do not restrict me when i make a decision or take an initiative. 2,76 2,69 87 table 7. the score of 5 aspects of jm to measure the employees’ jm, we used the jds method with the following formula: the jm level of employees was measured based on the mps (motivational potential score) in the jds (job design survey) with the following types of classification: i) low level of motivation with the jds scores of 1-16 points, ii) middle level of motivation with the jds scores of 17-43 points, iii) high level of motivation with the jds scores of 44-125 points (ramadhita, setiawan, ummi, 2017). the present research found that on average the score of pt. petrosea employees' jm was 24,54, which means in terms of jm level, pt. petrosea employees belonged to the middle level. it should be noted, however, that the company should not be satisfied with the employees' current level of jm. in other words, the company should keep improving the motivation of employees because the jm has proved to give a significant effect to the performance of employees (qadir, ghayyur., saeed, imran., khan, saif ullah, 2017). if the jm keeps decreasing, it might hamper the performance of the company. research conducted by sajjad, asif, ghazanfar, hassan, and ramzan (2013) showed that jm can be used as a predictor for decreasing the level of staff or labor turnover. the effects of the adversity quotient (aq), job satisfaction (js), and job motivation (jm) on turnover intention (toi) after all the variables (aq, js, and jm) had been measured, we needed to determine how the variables affected the toi of the employees. the measurement used in determining the correlation between the three variables and toi was based on the structural equation modeling that was generated by the application software lisrel 8.7. before the relationship between variables was measured, an evaluation on goodness of fit was conducted first. the modification process was done by adding covariants onto the variable that had the highest score of modification indices to improve the model. below is the diagram containing the output modification indices. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 i think my colleagues and superiors appreciate the decision i make or the initiative i take. 2,62 feedback i think my work enables me to interact well with my colleagues, superiors, and anyone involved with my work. 3,02 3,095 i think my superiors and colleagues provide positive feedback for the results of my work. 3,17 88 figure 1. path diagram model for t-value aq17.98 aq26.25 aq35.87 aq46.89 aq toi kk mo kk1 8.14 kk2 8.00 kk3 7.93 kk4 8.31 kk5 8.44 kk6 8.15 kk7 7.88 kk8 8.30 kk9 7.80 kk10 8.37 kk11 8.10 kk12 8.48 kk13 8.61 kk14 8.23 kk15 8.16 kk16 8.55 kk17 8.46 kk18 8.35 kk19 8.29 kk20 8.36 mo1 8.69 mo2 8.35 mo3 7.64 mo4 7.98 mo5 7.94 mo6 7.49 mo7 8.04 mo8 8.56 mo9 6.46 mo10 7.85 toi1 6.61 toi2 6.45 toi3 7.42 toi4 8.54 toi5 8.25 toi6 8.51 toi7 6.44 chi-square=801.26, df=759, p-value=0.13957, rmsea=0.019 5.34 5.66 6.11 4.56 3.70 5.26 6.25 4.58 6.65 4.37 5.48 3.67 2.22 4.74 5.26 2.90 3.56 4.51 4.54 4.78 -0.08 -3.59 -5.74 -4.92 -5.04 -6.00 -4.75 -2.32 -7.27 -5.27 5.65 5.04 2.70 3.59 2.45 5.78 3.54 5.70 5.95 5.17 -0.63 -0.39 2.91 -0.34 3.02 2.47 prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 89 a model is categorized fit if it has the p-value > 0,05 and the rmsea value < 0,08. the output modification yielded the p-value 0,13957 and the rmsea value 0,019. therefore, our constructed model could be categorized as fit. the path diagram for the standardized solution yielded the output below. figure 9. structural equation after output modification toi = turnover intention mo = motivation of employees kk = job satisfaction of employees table 8 below shows the recapitulation of the goodness of fit resulting from modification. table 8. recapitulation of goodness of fit after modification prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 category gof measurement fitness target estimation result fitness value 1 chi-square small value 801,26 not fit pvalue ≥ 0,05 0,14 fit ncp small value 42,26 fit 2 rmsea ≤ 0,05 0,019 fit pvalue ≥ 0,05 1 fit 3 ecvi ≤ saturated model and approximate model 6,66; saturated 11,40; independent 18,82 fit 4 aic ≤ saturated model and approximate model 1005,26; saturated 1722; independence 2841,27 fit caic ≤ saturated model and approximate model 1415,70; saturated 3006,45; independence 5186,56 fit 5 nfi ≥ 0,90 0,67 not fit nnfi ≥ 0,90 0,92 fit cfi ≥ 0,90 0,92 fit ifi ≥ 0,90 0,93 fit rfi ≥ 0,90 0,65 not fit 6 cn > 200 143,02 not fit 7 rmr ≤ 0,05 0,076 marginally fit agfi ≥ 0,90 0,77 marginally fit gfi ≥ 0,90 0,70 not fit 90 as seen in the table above, based on the 17 parameters of goodness of fit, there were 10 fit parameters and 2 marginally fit. parameters. therefore, our constructed model could be categorized as fit. based on the path diagram, if t-value > 1,96 or t-value < -1,96, it means there is a significant effect of the independent variable on the dependent variable. the results of the present research showed that there was a significant effect of the aq variable on the js variable shown by 3,02 t-value, which means t-value > 1,96. the present research supported the previous study by jung hee song and hae-young woo (2015) who argued that there was a correlation between the aq variable and the js variable. as for the effect of aq on toi, the results of the present research showed that the t-value was -0,34, which means it was larger than 1,96 and smaller than 1,96. this means there was no direct and negative effect of aq on toi. the structural equation, however, showed that the higher the score of aq is, the lower the toi will be, while the lower the score of aq is, the higher the toi will be. the present research supported the previous study by yan tian and xia zhen fan (2014) who argued that the aq has a positive relationship with the level of adaptation with the work environment. the ability to adapt would decrease toi. the aq had a positive and significant effect on job motivation (jm). as shown by the path diagram, in the present research the t-value yielded was 2,47, which means t-value > 1,96. the research results showed that the ability shown by the employees of pt. petrosea to control adversity, to identify the causes of adversity, and to solve adversity increased their jm. the aq indicates an individual’s ability to respond to adversity. a high aq score indicates someone's exceptional ability to respond to adversity. the stress at work that is well managed may be turned into jm. although employees have high stress at work, those who have high aq scores will be able to turn it into jm (chao-ying shen, 2014). there is a positive and significant effect of js on jm. this was shown by the tvalue in the path diagram that reached 2,91, which means it was higher than 1,96. the present research supported the previous study by prof. s.k. singh & vivek tiwari (2011) who argued that there was a positive correlation between js and jm. that is, the higher the js is, the higher the jm will be. js did not affect toi. this was shown in the path diagram with -0,63 t-value, which means this t-value was larger than – 1,96 and smaller than 1,96. therefore, the results of the present research showed that there was no significant effect of js on toi. using the data collected with the minnesota satisfaction questionaire, the js score of pt. petrosea employees reached 2,913, which means the employees were quite satisfied with the jobs they had and therefore did not have a significant effect on toi. it should be noted, however, that the structural equation toi = 0,077 kk 0,048 mo 0,052 aq showed that the higher the js of pt. petrosea employees was, the lower their toi would be. the present research supported the previous study by shields & ward (2001) who stated that the employees who reported their dissatisfaction at work had 65% higher possibility of quitting their jobs than those who reported their satisfaction. prasetya, w., akbar, m., & tinas, b.. (2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 91 the jm of pt. petrosea employees did not affect toi, as shown in the path diagram with -0,39 t-value. thus, this t-value was higher than -1,96 and smaller than 1,96, which means there was no significant effect of js on toi. it should be noted, however, that the structural equation toi = 0,077 kk 0,048 mo 0,052 aq showed that the higher the jm of pt. petrosea employees was, the lower their toi would be. the present research supported the previous study by anders dyvik & bard kuwaas (2008) who pointed out that jm is a predictor of toi. that is, the level of toi will increase if employees’ jm is low. conclusions and suggestions based on our research results, we concluded that there was a positive and significant effect of aq on js. furthermore, the aq of pt. petrosea employees did not have a significant effect on toi, but it should be noted that the higher the employees’ aq is, the lower the toi will be. the aq had a positive and significant effect on the jm of pt. petrosea employees. js had a positive and significant effect on the jm of pt. petrosea employees. js did not affect toi, but it should be noted that the higher the employees’ js is, the lower the toi will be. jm did not affect toi, but it should be noted that the higher the employees’ jm is, the lower the toi will be. when recruiting new employees, it is suggested that the company should not just prioritize iq and eq, but also aq. this is because aq may affect employees' js and jm. these two variables might improve their job performance, which in the end benefits the company. in this way, the possibility of staff or labor turnover can be decreased or even prevented. references amma. 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(2018). journal of business and behavioural entrepreneurship volume.2 nomor.2 2018 p (75-93)  on identifying the factors that affect turnover intention.  https://doi.org/10.21009/jobbe.002.2.04 72 abstract this research aims to identify the behavioural bias of gambler's fallacy of young investors in malang. this research was done by doing a survey method i.e. doing the dissemination of questionnaires to young investors in malang. the number of samples gained from questionnaires were 108 respondents. questionnaires were assessed using likert scale and analysed by using non-parametric test: chi square test and wilcoxon signed-rank test to answer the hypothesis and research questions. the results showed that behavioural bias of gambler’s fallacy on young investors in malang when they trade in uptrend and downtrend stock market with an equal probability. based on the results, this research concluded that in making trading decisions, young investors in malang are still very influenced by psychological factors and tend to follow their personal intuition. this shows that weak-form efficiency is inefficient. keywords: behavioural finance, behavioural bias, gambler’s fallacy, young investor received: 2 november 2019 ; accepted: 18 november 2019 ; publish : december 2019 how to cite: wijayanti, d., suganda, t. r., thewelis, f. s..(2019). gambler’s fallacy as behavioural bias of young investor. journal of business and behavioural entrepreneurship, 3(2), 72-80. https://doi.org/10.21009/jobbe.003.2.05 gambler’s fallacy as behavioural bias of young investor dian wijayanti dian.wijayanti@machung.ac.id universitas ma chung malang tarsisius renald suganda renald.suganda@machung.ac.id universitas ma chung malang feni sufuiana thewelis fenisufuiana@gmail.com universitas ma chung malang 73 introduction capital markets are identified as efficient markets if they can react quickly and accurately to achieve new equilibrium prices that fully reflect the information available. in fact, an efficient market is difficult to occur. new information that appears always has an impact on the high uncertainty and difficulty in interpreting the information. as a result, investors tend to be irrational in making investment decisions. an investor is named to be rational if he has the ability to manage various incoming information perfectly (djojopranoto and mahadwartha, 2016). the growth of idx composite was also accompanied by growth in the number of investors in indonesia. based on data from the indonesian central securities depository (ksei), as of march 2018 the number of investors in indonesia was 1.21 million single investor identification (sid), growing 36% from the realization in 2016 of 894,116 sid. the number of young investors in the age range of 18-30 years is the biggest sid contributor, which is 30.3% of the total investors. while investors with an age range of 31-40 are 20.05%, 41-50 years are 22.57%, 51-60 years are 14.45% and over 60 years are 8%. the majority of indonesian capital market investors come from college students, amounting to 52.8%. while investors with high school students as much as 29% and post graduate students only as much as 6.3% (www.tirto.id). according to pradikasari and isbanah (2018), investors with a young age have a higher level of risk tolerance compared to older investors. the older a person is, the more risk averse and more careful in making investment decisions. investors under the age of 30 will be more courageous in making investment decisions because of the high level of risk tolerance (evans, 2004). as a result, investors with a young age have a higher level of confidence (overconfidance) in investment decision making. the higher the level of self-confidence, the more often the person trades, while people with low levels of self-confidence will be more careful (pradikasari and isbanah, 2018). in investment decision making, an investor tends to involve emotions and is often influenced by psychological factors. emotional involvement and psychological factors often make decision making less rational (elster, 1998). rationality from an economic point of view can be assessed through a substantive rationality approach. psychological factors related to substantive rationality are limited to the formulation of goals, the greater an action provides beneficial results for the achievement of a goal, the more rational the action can be said (simon, 1978). behavioural finance is a concept for understanding investor behaviour patterns in decision making (puspitaningtyas, 2014). when making investment decisions, investors tend to use intuition and feelings rather than gathering enough information (djojopranoto and mahadwartha, 2016). humans often use heuristic patterns in investment decision making because of the limited time and information available (onsomu, 2014). the heuristic pattern is used because it can help investors to determine investment decisions in a short time and limited information (ackert and deaves, 2010). investment decision making which is only based on heuristic patterns will eventually lead to bias. behavioural bias that can influence an investor's decision making is gambler's fallacy, halo effect and familiarity effect (djojopranoto and mahadwartha, 2016). according to odean (1998), an investor will experience gambler's fallacy when making investment decisions the same as when doing gambling. gambler's fallacy is a false belief, if something happens more often than usual in some time, it will occur less frequently in the future, or if something happens less frequently than usual in some time, then it will be more frequent happen in the future. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 http://www.tirto.id 74 in the capital market there are various things that can cause behavioural bias, one of which is market conditions. there is an investor sentiment relationship that depends on the uptrend and downtrend market conditions. this study wants to examine the behaviour bias that occurs in young investors in malang during the uptrend and downtrend conditions. investors often behave irrationally in making investment decisions that cause behavioural bias. this research wants to correlate the existence of gambler's fallacy behaviour bias that occurs when market conditions are uptrend or downtrend. theoretical framework and hypothesis development substantive rationality the rationality of human behaviour can be studied from two points of view, namely psychological and economic perspectives. rationality based on a psychological point of view is created through a procedural rationality approach, while rationality based on an economic point of view is created through a substantive rationality approach. substantive rationality is an action that is measured from the point of view of achieving goals by noting the limitations that exist. psychological factors associated with substantive rationality are limited to the formulation of objectives, the greater an action provides beneficial results for the achievement of a goal, the more rational the action (simon, 1982). behavioural finance behavioural finance is a study of how psychological factors can influence individual decision making (bondt, et al., 2008). lintner (1998) argues that behavioural finance is a study that studies human interpretations and actions on information to determine investment decisions. behavioural finance is formed on assumptions made by economic actors. the involvement of traits, emotions, preferences and things inherent in human beings can influence the investment decision making process (ricciardi and simon, 2000). pompian (2006) divides behavioural finance into two forms, namely behavioural finance macros and behavioural finance micro. behavioural finance macros detect and describe anomalies that occur in efficient market hypotheses that might be explained by financial behaviour models. whereas behavioural finance micro examines the behaviour or bias of individual investors that distinguishes it from rational behaviour in classical economic theory. esther (1998) suggests that in making investment decisions, an investor tends to involve his emotions. emotional involvement is what makes investors act less rationally in making investment decisions. irrational investors are usually only guided by instincts, bandwagon, not accustomed to doing analysis, or even believe in mystical things (natapura, 2009). irrational decision-making produces irrational or biased results. behaviour bias then causes errors when predicting random events. according to djojopranoto and mahadwartha (2016), the prediction error can be described in the form of behaviour, one of which is gambler's fallacy. gambler’s fallacy as behavioural bias gambler's fallacy is the behaviour of investors who predict future events based on information from the past. investors believe that if something happens more often than usual in some time, it will occur less frequently in the future, or if something happens less frequently than usual in some time, then it will occur more frequently in the future. thought to interpret these opportunities allows an investor to act irrationally. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 75 thus, investors will determine their investment decisions based on observations of events from the past. from the results of research conducted by hopfensitz (2009), there is a bias in the behaviour of gambler's fallacy in investors in making the decision process. in addition, research conducted by amin, et al., (2009), also found that the behaviour of gambler's fallacy bias can affect investors' decision-making processes in the pakistani capital market. events from the past are often a reference for investors to determine their investment decisions. when an investor gets a return several times in the previous period, the investor tends to reduce the level of investment in the future. during an uptrend, investors with a gambler's fallacy bias will tend to avoid buying shares that have previously experienced price increases with the assumption that in the future periods there will be a greater price decline. conversely, when a downtrend occurs, investors with a gambler's fallacy bias will tend to buy shares that previously experienced a price decline assuming that in the future periods there will be a greater price increase (djojopranoto and mahadwartha, 2016). based on theoretical studies and some previous research, the appropriate hypothesis for the behavioural bias of gambler's fallacy is as follows. ha: gambler's fallacy behaviour bias occurs in the indonesian capital market research methods samples the population in this study are all domestic investors in the indonesian capital market. the sample used is taken from populations that meet the following criteria. 1. indonesian capital market domestic investors domiciled in malang. 2. respondents are young investors with age ranges between 18-30 years. 3. trade at least three times a week and have been actively trading in the past week. make your own decisions without the help of brokers when trading. respondents are said to make their own decisions when decisions are based on information sought by themselves or information obtained from investor groups, emails or suggestions from brokers on behalf of shares. while respondents are said to take decisions with the help of brokers is when in trading, transactions that occur are executed by the broker directly. variable definition the data collection technique in this study was a survey using a questionnaire. the instruments in this study use a likert scale that contains five levels of answer preference with the choice of scale used is strongly disagree (sts), disagree (ts), doubtful (r), agree (s) and strongly agree (ss). likert scale is used to measure the responses of respondents to see how strongly the respondents agree and disagree with the questions given so that it makes it easier for the writer to analyse the answers of respondents in quantitative terms (sekaran and bougie, 2017). there are 4 statement items in the questionnaire that researchers used in this study to identify gamble's fallacy behaviour bias. the four statements are further divided into two statements regarding the uptrend and downtrend conditions that occur in the capital market. each condition has two types of statements, the first statement about the condition of an uptrend with a positive sentence (a statement that states that the respondent experiences behavioural bias if he agrees to the statement) and a statement with a negative sentence (sentence statement stating that the respondent did not experience behaviour bias if agreed towards the statement). second, statements about wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 76 downtrend conditions are also grouped into statements with positive and negative sentences. statements with positive sentences will be given a value of 5 for the strongly agree (ss) answer and 1 for the strongly disagree answer (sts). while statements with negative sentences will be given 1 for the strongly agree (ss) answer and 5 for the strongly disagree answer (sts). data analysis technique one sample test t-test is used to test whether a certain value used as a comparison is significantly different or not with the average of a sample. the particular value here is generally a parameter value for measuring population (santoso, 2014). this test is used to test the average value of each statement that is able to provide the intended outcome. if the data are not normally distributed, the one sample t-test parametric statistical test is replaced with a non-parametric statistical test, the chi square test. this chi square test has the same usefulness and basis for decision making as the one sample t-test, if the asymp value. sig. less than 0.05, the statement in the questionnaire can provide the intended outcome. paired sample t-test paired sample test t-test is used to test two pairs of samples whether they have a significantly different average or not. paired sample is a sample with the same subject but undergoes two different treatments or measurements. this test is used to compare statements with positive sentences and statements with negative sentences to see the consistency of respondents in filling out questionnaires with different sentences. if the sig. less than 0.05 means that there are significant differences between statements with positive and negative sentences. this means that the respondent did not answer the statement consistently. conversely, if the value of sig. greater than 0.05 means there is no significant difference between statements with positive and negative sentences. this means that the respondent has consistently answered the statement. in addition, this test is also used to compare statements with uptrend and downtrend conditions. if the sig. less than 0.05 means that there are significant differences in the uptrend and downtrend conditions which indicate that the behaviour bias occurs is greater in one of the conditions namely uptrend or downtrend. conversely, if the value of sig. greater than 0.05 means that there are no significant differences in the uptrend and downtrend conditions which indicate that the behaviour bias occurs equally at the uptrend and downtrend conditions. if the data is not normally distributed, the paired sample t-test parametric statistical test is replaced by a non-parametric statistical test, the wilcoxon rank sum test. wilcoxon rank sum test this test has the same usefulness and basis for decision making as the paired sample t-test, if the asymp value. sig. (2-tailed) is less than 0.05, it means that there is a significant difference and if the asymp value. sig. (2-tailed) greater than 0.05 means that there are significant differences. result before distributing the questionnaire, a pilot test is carried out to ensure that the questionnaire is valid and reliable. distributing questionnaires to conduct a pilot test is done online by distributing questionnaire links to alumni and students of ma chung university who already have a stock account. the distribution was carried out in january 2019 with 40 incoming data. the process of collection, collection and pilot testing is completed on january 27, 2019. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 77 description of respondent demographics after the pilot test is conducted as an initial test of the questionnaire, then the valid and reliable questionnaire is distributed to young investors in the city of malang, both online and physical. questionnaires were distributed for 34 days, starting from february 1, 2019 to march 6, 2019. questionnaires were distributed as many as 250 questionnaires and 201 respondents obtained (80.4%), while questionnaires filled in online were 67 respondents. respondent data collected was then selected based on research inclusion criteria and data that can be used as many as 85 (42.28%) data from physical questionnaires and 23 (34.32%) data from online questionnaires, so that the data used in this study were 108 respondents. table 1. description of respondent demographics resource: data processed based on table 1 the number of male respondents in this study is greater when compared to the number of female respondents. the number of male respondents is 58 people (53.70%), while the number of female respondents is 50 people (46.30%). bogan et al., (2013) found an association between gender diversity and investment decision behaviour which states that the presence of male investors in an investment group increases the likelihood of choosing investments with higher risk. tauni et al., (2017) in their research also found that male investors would trade more often than female investors. uji chi square test chi square test is used to replace the one sample t-test with the aim to test whether each statement in the questionnaire can provide the intended outcome. chi square test results are as follows. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 gender quantity percentage experiences quantity percentage <1 34 58,62% male 58 53,70% 1—3 16 27,59% 3—5 5 8,62% >5 3 5,17% <1 35 70% female 50 46,30 1—3 12 24% 3—5 3 6% >5 0 0% total 108 100% total 108 100% 78 table 2. chi square test resource: data processed this chi square test confirms the qualitative analysis that has been done before. based on table 2 above, the value of asymp sig. (2-tailed) of all statement items in the questionnaire is less than 0.05. these results indicate that of the 12 items of statement answered by respondents have been able to provide the outcome that should be. from these results it has also answered the research hypothesis that respondents experienced a bias of gambler's fallacy behaviour in the uptrend and also downtrend conditions. discussion in testing hypothesis 1, the asymp value. sig. the gambler's fallacy variable in the chi square test is 0,000. the probability value is smaller than 0.05, so it can be said that ha is accepted and h0 is rejected, which means that the gambler's fallacy behaviour bias occurs on the respondent. this is also supported by the analysis of the frequency of respondents' answers which tend to choose to agree on a positive statement and disagree on a negative statement. consistency of respondents in answering statements with different sentences is reinforced by the existence of the wilcoxon rank sum test. asymp value sig. (2-tailed) from the wilcoxon rank sum test model 1 test is 0.204 for uptrend conditions and 0.768 for downtrend conditions. the probability value is greater than 0.05, so it can be said that there is no difference between positive and negative statements or in other words the respondents in this study have answered the statement consistently. table 3. wilcoxon rank sum test model 1 gambler's fallacy's behaviour bias influences respondents' decision making in investing in uptrend and downtrend conditions. this can be seen from the asymp value. sig. (2-tailed) from the wilcoxon rank sum test model 2 test is 0.819. the probability value is greater than 0.05, so it can be said that there is no difference between the uptrend or downtrend conditions or in other words the gambler's fallacy behaviour bias occurs in two conditions namely uptrend and downtrend. the results of this study differ from studies conducted by djojopranoto and mahadwartha (2016) who found that gambler's fallacy behaviour bias only occurs in an uptrend. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 variable n chi-square asymp sig. value gf uptrend positive 108 62,296 0,000 gf uptrend negative 108 57,926 0,000 gf downtrend positive 108 102,185 0,000 gf downtrend negative 108 78,296 0,000 variable n z asymp sig. (2tailed) gf uptrend positive dan negative 108 -1,271 0,204 gf downtrend positive dan negative 108 -0,295 0,768 79 table 4. wilcoxon rank sum test model 2 behavioural bias occurs in two conditions because during an uptrend, investors are more confident in trading because share prices will tend to rise gradually. in addition, according to djojopranoto and mahadwartha (2016), gambler's fallacy behaviour bias occurs during an uptrend because investors tend to avoid risk based on profits that have been obtained several times before. as a result, investors will be more careful and reduce their investment with the belief that if in some previous periods have experienced profits, then the possibility to get losses in the future will be greater. conversely, during a downtrend, stock prices will decline dramatically, and investors will suffer losses. gambler's fallacy behaviour bias occurs during downtrend conditions because investors will be more risk-seekers with the belief that if some previous periods have suffered losses, the probability of getting profits in the future will be greater. this is what makes investors less rational in making investment decisions that cause gambler's fallacy. besides that, younger investors are also more willing to take risks compared to older ages. this is what makes the results of this study different from the results obtained by djojopranoto and mahadwartha (2016). conclusion this research is a behavioural finance research that aims to identify gambler's fallacy behaviour bias on young investors in malang. the data used are primary data taken directly from respondents by distributing questionnaires in physical and online form. based on the results of tests conducted, it was found that the bias behaviour of gambler's fallacy occurs in young investors in malang in the uptrend and downtrend conditions with equal probability. the results of this study indicate that in making trading decisions, young investors in malang are still strongly influenced by psychological factors and tend to follow personal intuition. this indicates that young investors in malang are irrational investors. this research is in line with the concept of behavioural finance which states that in investment decision making, individuals are often influenced by psychological factors (bondt, et al., 2008). elster (1998) suggests that in making investment decisions, an investor tends to involve his emotions. emotional involvement is what makes investors act less rationally which in turn will lead to behaviour bias in investors. the results of this study provide implications that indicate the existence of gambler's fallacy's behavioural bias towards young investors in malang. this shows that young investors in malang are irrational investors because in investment decision making, investors are still strongly influenced by psychological factors and are also more inclined to follow personal intuition. this irrationality can be used by more rational investors to get returns. rational investors can get abnormal returns by trading on stocks that have a different probability of rising or decreasing than before. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 variable z asymp sig. 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(2013). how to identify and forecast bull and bear markets? journal economic, 32, 120-139. wijayanti, d., suganda, t. r., thewelis, f. s..(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (72-80)  gambler’s fallacy as behavioural bias of young investor.  https://doi.org/10.21009/jobbe.003.2.05 33 abstract the purpose of this study was to determine the effect of organizational culture, leadership style and job stress on turnover intention. this study uses a quantitative approach with survey method and path analysis to analyze the effect of organizational culture, leadership style and job stress on turnover intention. the sample for this reseach are 95 employees from 125 employees. the techniques analyzis data was descriptive statistics and inferential analysis that were tested using normality test error estimate a simple regression, linearity test and path analysis. the result shows that organizational culture gives negative direct effect on turnover intention, leadership style gives negative direct effect on turnover intention, job stress gives positive direct effect on turnover intention, organizational culture gives negative direct effect to job stress, leadership style gives negative direct effect to job strees and ledearship organization gives positive direct effect to leadership style. keywords: organizational culture, leadership style, job stress, turnover intention received: 15 july 2019 ; accepted: 2 september 2019 ; publish: october 2019. how to cite: priyowidodo, a., wibowo., hamidah, h.. (2019). influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta. journal of business and behavioural entrepreneurship, 3(1), 33-44 https://doi.org/10.21009/jobbe.003.1.04 influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta augustine priyowidodo universitas negeri jakarta, indonesia e-mail: agustinuspriyowidodo_im12s3@mahasiswa.unj.ac.id wibowo universitas negeri jakarta, indonesia e-mail: wibowo303@yahoo.co.id hamidah universitas negeri jakarta, indonesia e-mail: hamidah@unj.ac.id 34 introduction human resources in the organization are crucial aspects that determine the effectiveness of an organization. organizations need to constantly invest to recruit, select and retain the human resources. on the other hand, an organization needs to maintain a potential resource that does not have the effect of exit (turnover intention).turnover intention are not detected early will lead to the release of the employees of the agency that will impact the institution losses, especially if the exit is an employee who has a high competence and major contribution to the sustainability of the institution. many factors affect an employee has a desire to get out of work are:organizational structure, organizational culture, leadership, job characteristics, job stress, job satisfaction, rewards and performance evaluation systems, structures and mechanisms contained in the agency. to determine the influence of these factors on the desire out an employee, a researcher conducting research in institutions of private education providers stella maris jakarta education foundation. the institute is interesting to be the locus of research because of the agency employee data obtained resing increased from year to year. 2013 employees risign by 6.08%, amounting to 7.50% in 2014 and 2015 of 8.00%. prior to conducting the study, researchers gather information from employees conclusions from the information obtained, the dominant factors into employee reason to resign is organizational culture, leadership style and job stress occurring at the agency. as for some of the results of previous research on organizational culture, leadership style, job stress and turnover intention relevant to the study variables, among others: research conducted by kadiman, rr. dian indriana tl (2012: 57-72) on the effects of organizational culture, commitment and job satisfaction on employee turnover intention (case study at pt. nyonya meneer semarang). the results of this study is organizational culture directly influence turnover intention has t-value of 2.142 with a probability of 0.018 (<0.05) means that there is a significant influence of organizational culture on turnover intention. where the direction of regression coefficients that are negative, indicating that a good organizational culture affects employees to settle in company. research goddess and subudi (2015: 4219-4244) on the influence of transformational leadership style on job satisfaction and turnover intention at cv. gita persada denpasar work. the results of this study showed that transformational leadership style and significant negative direct effect on turnover intention by 3%. it can be concluded that the transformational leadership style gives negative direct effect on turnover intention. research conducted by wayan mega, adnyana, and ganesha (2016: 629-658) regarding bri employee turnover intention in denpasar, the research found that job stress significant positive effect on turnover intention of t = 6.348. this shows that job stress can affect directly to turnover intention. research conducted by galina (2016: 369-380) regarding the organizational culture and work stress on employees of pt pln ap2b minahasa system, from the research found that variable of organizational culture has a negative and significant impact on work stress variables. significance test value smaller than a predetermined limit declare a significant relationship between these two variables. research conducted by olulana (2015: 161) on the correlates of organizational culture, job stress and organizational commitment, of these studies found that there is a significant influence of organizational culture on job stress (β = 0.254, p <0.05). organizational culture has a negative effect on job priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44)  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... 35 stress. research on leadership style and the stress of the work done by angela (2016: 335-350), the research has found that the direct effect of leadership style negative and significant work stress variables. earned value t = -1.877 where ttable value of 1.66, so the value of t> t table then ho is rejected it means leadership style effect on work stress. reseacrh conducted by yudo (2015: 1-11) regarding the organizational culture and leadership style in universities private in jakarta, the results showed that organizational culture and leadership style has a positive and significant relationship with r = 0.835. thus there is influence between organizational culture and leadership style. research conducted by yafang tsai (2011: 7) on "relationship between organizational culture, leadeship behavior, and jobs satisfaction", found in the results that organizational culture has a significant and positive relationship to leadership (β = .55, p <.001) , culture in an organization is very important, played a big role in making a happy and healthy environment to work. when the interaction between leadership and employees is good, the second will provide a greater contribution to the team communication and collaboration, and will also be encouraged to achieve the mission and objectives assigned by the organization, thus improving individual and organizational performance. thus, there is influence between organizational culture and leadership. based on the problems described above, the researchers are interested in studying and assessing the factors affecting turnover intention and the extent to which these factors influence the emergence of turnover intention of employees in the education foundation of stella maris jakarta with the title influence of organizational culture, leadership style, and job stress on employee turnover intention stella maris jakarta education foundation. generally, this study aimed to determine the effect of organizational culture, leadership style, work stress on employee turnover intention in jakarta education foundation stella maris either direct or indirect influence. operationally purpose of this study to assess and determine, matters as follows: 1) existence of a direct influence of organizational culture on turnover intention. 2) the existence of a direct effect of leadership style on the desire to get out. 3) the direct effect of work stress on a desire to get out. 4) the existence of a direct influence of organizational culture on job stress. 5) there is a direct effect of leadership style on work stress. 6) the direct influence of organizational culture on leadership style. 7) the existence of indirect influence of organizational culture on a desire to get out through the stress of work. the novelty of this article from previous relevant studies is that the effect of variable organizational culture, leadership style, job stress and turnover intention together no one has studied, as well as the locus of this research is not no use for research. theoretical description 1) turnover intentions in his study, carmeli and weisberg's (2006) in cenkci and ötken (2014: 405) identifies three elements in the process of cognition resignation of an employee, namely: the mind stops, the intention of looking for another job elsewhere, and intention to quit. harnoto (2002) in prihartono (2013) says that "turnover intention is the level of intensity of the desire to get out of the institution." the attitude that often showed was a desire to move so they seek another job. also stated that the concept of desire to move this work can be measured using questionnaires that can consist of several questions as has been done by some previous investigators, namely: hom, griffeth, and  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 36 sellaro using two questions, namely: (1) i often thought of moving the work, and (2) how often do you think about moving work. jaros (1995) used three questions to measure the desire to move the work is; (1) how often they think about leaving the institution (2) how happy they are with the work now so that they do not want to look for positions with another employer, and (3) how happy they were for this, so they are not interested in changing jobs in come. according harnoto (2002: 92), argued also that the turnover intention can be characterized by a variety of matters relating to the behavior of employees, among others, attendance increased, from lazy to work, increasing the courage to violate work rules, increasing the courage to oppose or protest against the boss , as well as seriousness in resolving all employee responsibilities that looks very different from the usual. 2) organizational culture strong organizational culture plays a strong role and to guide the behavior of every member of the organization. as said by barney (1991) in the nazarian, et al (2017: 23) that organizational culture is the main source for the organization so that the organization must be able to maintain the advantage kompetetif which can impact on organizational performance. kreitner and kinicki (2008: 66) states that organizational culture is a set value of a mutual agreement that the members of the organization in control and determines how to look at, think about and react to the dynamics facing the organization in a variety of conditions and environments. robbins and judge (2013: 546) says that there are seven main characteristics essence of the culture of the organization, among others: 1) innovation and risk-taking that innovation and the degree of courage to take risks; 2) attention to detail, the attention to things that are deep or special; 3) outcome orientation, namely the management pays attention to the outcome rather than the techniques and processes used to achieve those results; 4) people orientation, management saw the effects of these results to humans or institutions; 5) team orientation, much work activities are done by teams rather than individuals; 6) agressiveness, person or employee aggressive and competitive than working with central; 7) stability, stability level of an organization's activities. 3) leadership style mullins (2005: 291) says that the style of leadership is a way in which a leader in implementing a leadership role in a unique way to direct members of the group he leads. dubrin (2010: 112) defines leadership style is a pattern of behavior is relatively consistent and is a characteristic of every leader. with this pattern, the leader can harness the power available to lead others.according to the law and glover (2000: 122), there are four styles of leadership, namely telling, selling, participating, delegating. means telling leadership style marked by the characteristics of high task orientation but high correlation. according to koontz, donnel and weihrich (2002: 617), the effective leader has the following characteristics: 1) to give direction and meaning of a leader; 2) build trust; 3) willing to take risks; 4) provide hope. it means that four characteristics useful for a leader to influence others to work enthusiastically to achieve their goals. 4) job stress rebber (1985) in khalatbari(2013: 860) said that "job stress is a state of psychological stress by means of that, all types of physical, mental and social forces and pressures are resulted." this means that job stress is a state of psychological stress in  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 37 various ways, all types of physical strength, mental and social and generated pressure. ivancevich and matteson (2002: 266) says about that job stressemphasizes that the work stress caused by the background to the difference of the individual, because of excessive psychological difference. it concluded that work stress due to the psychological burden / psychological overload. similarly, says richardson & rothstein, (2008) in sheraz, et al (2014) suggest that job stress is a situation where a work-related factors that influence employees to the extent that the psychological conditions deviate from the performance of an ordinary person. determinants of occupational stress require admiration and benefits, little support from management, an inadequate contribution in decision-making, work overload and bosses are not very good in training, and how to cope with stress. research methods this study uses a quantitative approach through survey method and technique of path analysis (path analysis). this research uses quantitative approach, survey method and path analysis technique. the dependent variable is y (turnover intention) and the independent variables are: x1 (organizational culture), x2 (leadership) and x3 (job stress) variables. tabel 1. operational variables no variable indicator reference 1 turnover intention increased attendance getting lazy to work the courage to carry out the violation of work rules increased protest against the leadership changes in employee behavior harnoto, 2002; http:// jurnalsdm.blokspot.co.id/20 09/08 2 organizational culture innovation and risk taking attention to detail outcome orientation people orientation team orientation aggressiveness stephen p. robins, 2003; edgar h. schein, 2004; jason a. colquitt, 2011; james l.gibson, 2009 3 leadership decision making supervisory responsibility power/authority discipline horald koontz, cyrill o.donnel, heinz wihrich, 2002; robert m. fulmer and marshal goldsmith, 2001; sue law and derek glover, 2000 4 job stress workload role conflict conflicting interpersonal demands invironmental change jamal, m., & baba,2000; triantoro safaria and nofrans eka saputra, 2009; alves, s, 2005; vigoda, eran, 2002  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 38 the influence between variables was analyzed by path analysis. figure 1. constellations of influence between variables information: x1 : organizational culture x2 : leadership style x3 : work stress y : intention turnover the population in this study were all employees of the education foundation of stella maris. affordable population are employees of the education foundation of stella maris which amounts to 125 employees. to determine how many samples are taken, the formula used slovin with a sampling technique that random sampling, the following calculation (umar, 2003: 108). based on the calculation formula slovin above, it was determined the study sample as many as 95 out of a population of 125 people. data analysis techniques used for this research is descriptive and inferential statistics. to test the research hypothesis by using test requirements analysis, test for normality is simple regression estimation error, linearity test, significance simple regression and path analysis. table 2. summary of research instrument test results p y1 p y2 p 31 p 32 p y3 x1 x3 y p 21 x2 variable validity item reliability coefficient amoun t item not valid amoun t item amoun t number turnover intention 30 1 11 29 0,847 organizational culture 30 3 2, 14, 28 27 0,865 leadership 30 3 6, 14, 20 27 0,823 job stress 20 2 10, 22 28 0,881  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 39 analysis the calculation of path coefficients using the spss 22.0 for windows program, and the coefficients for each path in the model of the structural relationships among variables depicted in the charts and figures below are calculated and tested by t test. the path diagram has 6 path coefficients: py1, py2, py3, p31, p32, p21 so as to obtain 3 structural models as shown below: from the results of analysis and calculation process done on the part of direct influence, can be summarized as follows: table 3. direct influence inter-variables ** = highly significant (tarithmetic> ttable at α = 0.01) positive influence ** = highly significant (tarithmetic<ttable at α = 0.01) negative influence result and discussion 1) negative direct influence of organizational culture (x1) on turnover intention (y) the hypothesis tested are: h0: βy1> 0; h1: βy1 <0. the path coefficient of organizational culture (x1) on turnover intention (y) of -0.338 with -tcount value of 4.54. therefore values of t less than the value -ttable at dk = 91 of -2.63 α = 0.01 then h0 rejected and h1 accepted, which means there is a negative direct influence organiturnover intentions job cultural organizations leadership py1 = -0.338 py3 = py2 = -0.333 no. direct impact coefficient line t t-table α = 0.05 α = 0.01 1. x1 to y -0.338 -4.54 ** -1.99 -2.63 2. x2 to y -0.333 -4.48 ** -1.99 -2.63 3. x3 to y .330 4.23 ** 1.99 2,63 4. x1 to x3-0.327 -3.50 ** -1.99 -2.63 5. x2 to x3 -0.321 -3.44 ** -1.99 -2.63 6. x1 to x2 0.314 3.19 ** 1.99 2,63  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 40 zational culture variable to variable significant turnover intention. the results of the analysis of the first hypothesis found that organizational culture directly affect negatively on turnover intention. this finding is consistent with research by kadiman and indriana (2012: 57) states that organizational culture directly influence turnover intention, in which direction the regression coefficient is negative indicating that good organizational culture affects employees to settle in companies that do not have the intention everything to leave or leaving work. the results of this study are supported by magfiroh (kurniawati, 2012) that the individual characteristics of the organizational culture will relate to job satisfaction, organizational commitment, and the possibility of changing jobs. if the employee is not able to follow the culture of the organization that has been formed within the organization, one of the things that the cause of the turnover intention. turnover intention is a form of intention or desire of individuals to move work and left the institute where he works now on his own. turnover intention is an early sign of turnover, therefore there is a significant relationship between turnover intention and turnover occur. on turnover intention is included understanding the individual's desire to leave the place he works now or desire of individuals to seek employment elsewhere. a similar opinion was expressed by munandar (2010) which states that the turnover intention is the tendency or intention of employees to stop work of the institution. intention to leave work correlated with leaving the actual work. based on the above, it can be presumed that organizational culture has a direct influence on turnover intention. 2) negative direct impact of leadership style (x2) on turnover intention (y) the hypothesis tested are: h0: βy2> 0; h1: βy2 <0. the leadership style (x2) to the path coefficient of -0.333 with turnover intention (y) -tcount value of -4.48. therefore -tcount value smaller than the value -ttable at dk = 91 of -2.63 α = 0.01 then h0 rejected and h1 accepted, which means there is a negative direct influence leadership style variable to variable significant turnover intention the results of the analysis of the second hypothesis shown that the leadership style directly affect negatively on turnover intention. based on these findings it can be concluded that the turnover intention directly negatively influenced by the style of leadership. increased leadership style will result in reduced turnover intention. the results of this study in line with the opinion of several experts whom are hom and griffeth in kurniawati (2012) describes one of the causes employees want to quit from his workplace leaders that leadership style.the leadership style is a means used by the leadership to interact and influence their subordinates so that the employee can contribute terhadapat achievement of organizational goals, if the employees are not comfortable with the style of leadership that can cause employees want to quit. the leadership style is used by the leadership to interact and influence their subordinates so that the employee can contribute terhadapat achievement of organizational goals. a leader who has a leadership style that is capable menyeseuaikan with the current era. as in previous studies mentioned that "their studies have generally shown that transformational leadership is the key factor in reducing and mitigating turnover intentions." (long, et al, 2012: 576) this means that transformational leadership is a key factor in reducing the turnover intention , thus, with a good leadership style, can make employees feel comfortable in the organization and work better. turnover lead to the final reality facing the organization in the form of total employees who left the organization at a certain period, whereas the desire to move from the results of the in influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 41 dividual evaluation of the continuation conjunction denganorganisasi and has not manifested in action certainly leaves the organization. in other words, a higher confidence in the organization will reduce the employee leaves / out of the organization. 3) positive direct impact of job stress (x3 ) on turnover intention (y) the hypothesis tested are: h0: βy3 <0; h1: βy3> 0. the coefficient of job stress (x3) pathways towards turnover intention (y) of .330 with tcount 4.23. therefore the value of t is greater than the value of dk = 91to ttable at α = 0.01 of 2.63 then h0 is rejected and h1 accepted, which means there is a positive direct effect of work stress variables to variable significant turnover intention. the results of the analysis of the third hypothesis shown that job stress positive direct effect on turnover intention. based on these findings it can be concluded that the turnover intention directly influenced positively by work stress. increased job stress lead to increased turnover intention. the results of this study in line with the opinion of several experts whom are wayan mega, adnyana, and ganesha (2016: 629) regarding bri employee turnover intention in denpasar, the research found that job stress significant positive effect on turnover intention. this shows that job stress can affect directly to turnover intention.work stress is a condition where an employee is psychologically and physically impaired in the face of a problem in the workplace resulting in inconvenience employees to work in the workplace. stress is a state of the individual when getting a problem and can not overcome or menyelesaikanya effectively and have yet to find a way out. stress can cause an individual to experience some disturbances, which are physiological or psychological disorder organism. when employees in an organization is not able to follow the dynamics that exist within the organization to the level of stress, turnover intention potentially emerge from the employees themselves. job stress can come from many sources and affect people in different ways. as said by applebaum, fowler, fiedler, osinubi, and robson (2010) in research arshadi (2013) that "job stress influence an employee's job satisfaction the which in turn leads to low performance and the intention to leave the job." so the more great stress levels of employees towards work and organization, the higher the employee's intention to leave the organization. therefore, when threatened by perceived stress, employees with low self esteem can be overcome more passive with negative stimuli than employees with high confidence, especially with increasing absenteeism, lower organizational commitment, and intrinsic motivation. excessive workload, lack of clear authority given no corresponding responsibilities, conflicts within the organization, their differences of perception in the work and little income received raises the workload of its own employees as well as the stress is high enough and the impact on keingian to leave the organization. 4) negative direct influence of cultural organization (x1) on job stress (x3) the hypothesis tested are: h0: β31> 0; h1: β31 <0. the path coefficient -0.327 job stress (x1) to culture organizational (x3) with -tcount value of -3.50. therefore tcount value smaller than the value -ttable at dk = 92 for α = 0.01 at -2.63 hence h0 refused and h1 accepted, which means there is a negative direct influence variable of organizational culture on work stress variables were highly significant. the results of the analysis of the fourth hypothesis shown that organizational culture directly affect negatively on work stress. based on these findings it can be concluded that work stress is directly affected negatively by the culture of the organization. increased organizational culture will result in decreased job stress. the study's  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 42 findings are also in line with research conducted by olulana (2015: 161), of these studies found that there is a significant influence of organizational culture on job stress (β = 0.254, p <0.05). organizational culture has a negative effect on job stress. thus, the organizational culture conducive atmosphere can reduce employee stress. the results of this study in line with the opinion of several experts whom are galina (2016: 369) regarding the organizational culture and work stress on employees of pt pln ap2b minahasa system, the research findings revealed that organizational culture has a negative and significant impact on work stress variables. an organizational culture that covers aspects of organizational structure, responsibilities (responsibility), and compensation (reward). organizational culture perceived as beneficial to individual needs. however, if the organizational culture that flourished in the corporate environment more dominanunsur negative, it will lead to job stress. (church, 2005)the purpose of organizational culture and work stress that no members of the organization who are not able to follow the organizational culture and the inability to climax, then the employee will experience job stress. 5) negative direct influence of leadership style (x2) on job stress (x3) the hypothesis tested are: h0: β32> 0; h1: β32 <0. the path coefficient leadership style (x2) to the work stress (x3) of -0.321 with -tcount value of -3.44. therefore -tcount value smaller than the value -ttable at dk = 92 for α = 0.01 at -2.63 hence h0 refused and h1 accepted, which means there is a negative direct effect on the leadership style variable work stress variables were highly significant. the results of the fifth hypothesis analysis shown that leadership style givies directly negatively influence to job stress. based on these findings, it can be concluded that work stress is directly affected negatively by the style of leadership. increasing leadership style will impact for reduced job stress. results of this research is similar to research on leadership style and the stress of the work done by angela (2016: 335), the research has found that the direct effect of leadership style negative and significant work stress variables. leadership style and work stress is believed thatthere are leaders who act as dictator of the group members, and mobilize and force the group to achieve its goals. this leadership is always giving orders. but the employees they lead not able to follow the style of the leader, then the employee is likely to experience job stress. the results of this study also in line with research conducted by ulfah nurul fadhilah (2016: 78), with the results of leadership style affects the stress on pt vonex, it is seen from the results of spearman rank correlation test in which the stress of work have a strong relationship with the leadership style of .650. while the test results determination coefficient of 43.25%. this is a variable influence leadership style on job stress. while the remaining 56.75% influenced by other variables not included in this study. the results of the above test statistic thit = 6.34 is greater than the table = 1.673, then ha ho accepted and rejected. this means that the authors put forward the hypothesis supported by facts on the ground. 6) positive direct influence of organizational culture (x1) on leadership styles (x2) the hypothesis tested are: h0: β21 <0; h1: β21> 0. the path coefficient of organizational culture (x1) on leadership style (x2) of 0.314 with tcount amounted to 3.19. therefore tcount greater than the value ttablepada dk = 93untuk of 2.63 α = 0.01 then h0 is rejected and h1 accepted, which means there is a positive direct influence  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 43 variable of organizational culture on leadership style variable is significant the results of the sixth hypothesis analysis shown that organizational culture is a positive direct effect on the style of leadership. based on the result, it can be concluded that leadership style directly influenced positively by the culture of the organization. increased organizational culture will lead to increased leadership style. results of this research is similar to research conducted by yudo (2015: 1-11) regarding the organizational culture and leadership style in colleges in dki jakarta, the results showed that organizational culture and leadership style has a positive relationship. thus there is influence between organizational culture and leadership style.leaders must have a certain style to be accepted by members of the organization in accordance berperilau members organizational culture both inside outside the organization.the findings of this study are consistent with the results of research conducted by yafang tsai (2011), found the results of research that organizational culture has a significant and positive relationship to leadership (β = .55, p <.001). culture in an organization is very important, played a big role in making a happy and healthy environment to work. when the interaction between leadership and employees is good, the second will provide a greater contribution to the team communication and collaboration, and will also be encouraged to achieve the mission and objectives assigned by the organization, thus improving individual and organizational performance. thus, there is influence between organizational culture and leadership. conclusion based on the analysis that has been done in the previous section, it can be shown that: 1). organizational culture gives negative direct effect on turnover intentions, which meant that the increasing organizational culture will give impact on declining employee turnover intention for education foundation stela maris jakarta. 2). the leadership style gives negative direct effect on turnover intentions, which meant that the improvement of leadership style impacts reduction in employee turnover intention of stela maris jakarta education foundation. 3). work stress gives positive direct effect on turnover intentions, which meant that the increase in job stress had an impact on the improvement of employee turnover intention of stela maris jakarta education foundation. 4). organizational culture gives negative direct effect on job stress, which meant that increasing organizational culture impact on employee job stress reduction of stela maris jakarta education foundation. 5). the leadership style gives negative directly affect to the stress of work, which meant that the improvement of leadership style had an impact on employee job stress reductionof stela maris jakarta education foundation. 6). organizational culture gives positive direct impact on leadership style, which gives the meaning of that by increasing organizational culture will give impact on employee improvement leadership style of stela maris jakarta education foundation. 7). organizational culture gives negative direct effect on turnover intention through the stress of work, which gives meaning an increase in organizational culture by reducing work stress thus decrease the impact on employee turnover intention of stela maris jakarta education foundation. 8). the leadership style gives direct impact negatively on turnover intention through the stress of work, which meant that the improvement of leadership style by lowering the stress of work so as to give effect reduction in employee turnover intention of stela maris jakarta education foundation.  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) 44 references cenkci, tuna, ayşe begüm ötken, organization-based self-esteem as a moderator of the relationship between employee dissent and turnover intention, procedia social and behavioral sciences, 150, 2014 durbin, andrew j. leadership: research findings, practice, and skills, 6 th edition. south western: cengage learning, 2010. harnoto, manajemen sumber daya manusia. jakarta: pt. prehallindo, 2002. harnoto, turnover intentions: definition, indications, impact of turnover for institutions and registration turnover.http://jurnal-sdm.blogspot.co.id/2009/08/turnover-intentions-definisiindikasi.html (accesed, mart 20 march 2016) ivancevich, john m. human resource management, tenth edition. boston: mcgrawhill, 2007. kreitner, robert dan angelo kinicki. organizational behavior, 8 th ed. new york: mcgraw – hill irwin, 2008. law, sue dan derek glover, educational leadership and learning practice, policy and research. buckingham: redwood books, 2000. robbins, stephen p., dan timothy a judge, organizational behavior. new jersey: prentice hall, 2009.  influencing of organizational culture, leadership style, and work stress to the turnover intention of employees stella maris education foundation jakarta  https://doi.org/……... priyowidodo, a., wibowo., hamidah, h.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (33-44) http://jurnal-sdm.blogspot.co.id/2009/08/turnover-intentions-definisi-indikasi.html http://jurnal-sdm.blogspot.co.id/2009/08/turnover-intentions-definisi-indikasi.html 1 abstract partai kebangkitan bangsa (pkb) a political party who carried the spirit of pluralism, democracy and has a long history of fighting for the rights of indonesian to live safely, peacefully and comfortably. pkb is one of political party in indonesia parliament faction in peoples representative council , partai kebangkitan bangsa (national awakening party) or pkb is indonesia‟s fifth largest party in the indonesian house of representatives (dpr). the respondents of this study are 47 members of dpr from pkb factio , had a big mandate but the performance is bad. commitment to an organization is an effective response (attitude) that results from evaluating work situations that connect or attach individuals to the organization. this study aims to determine the relationship between organizational commitments to their performance, especially in the pkb members‟. this study uses a quantitative approach, survey methods and regression analysis techniques. in organizational commitment to pkb dpr ri members, they should have what is associated with a sense of identification (trust in organizational values), involvement (willingness to do their best for the sake of the organization) and loyalty (the desire to remain a member of the organization concerned). the results of this study indicate that the relationship between organizational commitment and the performance of members of the pkb faction is significantly correlated, means that board members who have high organizational commitment will have a good the implication is an effort that can be made by the leadership by understanding and uniting the perceptions of fpkb dpr ri members who works in dpr to create a conducive working atmosphere. keywords: indonesia parliament, organizational commitment, performance, pkb. received: 14 october 2019 ; accepted: 14 october 2019 ; publish; july 2019 how to cite: fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament. journal of business and behavioural entrepreneurship, 3(1), 1-13. https://doi.org/10.21009/jobbe.003.1.01 the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament jazilul fawaid graduate program, state university of jakarta (unj), indonesia email: jazilul71@gmail.com yetti supriyati professor of faculty of mathematics and natural sciences, state university of jakarta (unj), indonesia r. madhakomala professor of faculty of education, jakarta state university, state university of jakarta (unj), indonesia zahera mega utama graduate program, state university of jakarta (unj), indonesia 2 introduction since the beginning of the reform era, every indonesian society member has an important role in determining indonesia's leadership in the next five years. election of president, vice president and legislative members is held every five years and plays an important role. the indonesian state that adhered to a democratic government system has three highest leaders. the position of the three leaders is equal and harmonious because the core of democracy is the absence of supreme power on one side and the people play an important role in every government policy. the republic of indonesia divides its politics into three branches, namely executive, legislative and judicial powers. the legislative power is among others vested in dewan perwakilan rakyat (dpr) or the house of representatives of the republic of indonesia which shoulders vital legislative, budgetary, and supervisory functions over the indonesian government system. the position of the three leaders is equal and harmonious because the core of democracy is the absence of supreme power on one side and the people play an important role in every government policy. this type of leadership is better known as trias politica, namely the separation of government power into three fields having an equal position. the executive body has the duty to implement the rules that have been made and which are in this function are the president, vice president and the ranks of the ministries. meanwhile, the judicial institution is tasked with maintaining the implementation of existing legislation and which is in this function is the supreme court, the constitutional court and the judicial commission. the last is the executive institution, the task of this institute is to make laws that include the house of representatives (dpr), the regional representative council (dpd) and the people's consultative assembly (mpr). members of the council or members of the dpr are directly elected by the people through legislative elections. this resulted in the community's demands on the performance of mps being very high, because they were considered as elected people who were entitled to represent the people to voice their aspirations towards the current government. the community thinks that the dpr ri has not been able to carry out its functions optimally as expected. this is reflected in the results of various surveys or polls conducted, both by the mass media and non-governmental organizations (ngos). in general, it is said that the performance of the dpr ri is poor and the community is not satisfied with the work of the mps in voicing their aspirations. the election of members of the council is drawn from various political parties participating in the election. this political party in writing is intended as a cadre of political generations who can educate their members so that they are aware of political issues which influence the people. one political party that has been established for a long time is partai kebangkitan bangsa (pkb). it has been 21 years since pkb accompanied indonesia's journey in becoming a democratic country. 47 seats out of 560 total seats of dpr members are filled by the best cadres of pkb to represent the people's aspirations. the performance of board members of the pkb party (or arguably the party faction) can also be interpreted as the performance of members who can be observed in terms of discipline and accuracy in work, cooperation in achieving productivity optimally. by showing optimal performance, fpkb members of the house of representatives will get stronger legitimacy from the community and constituents. with a functionally strong parliament, a quality check and balance system can be hopefully built between the council and the government. fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 3 so far, changes and improvements to the dpr ri rules of procedure have been carried out in order to improve the performance of the house of representatives, especially the legislative member of the fpkb dpr ri at this time. dpr members have highly strategic duties in legislative, budgetary, and supervisory functions. to that reason, pkb pays special attention to the performance of dpr members, particularly those from their faction, by benchmarking the output of their works. the benchmarking results are then used as future recommendation for assigning each of their cadres to the suitable position and commission. it is undeniable that the fpkb dpr ri candidate members are included in the provisional list of candidates who come from figures close to party leaders, or popular people, such as from the artist community, or from former national athletes. this will greatly affect the performance and competence and commitment of members of the fpkb dpr ri because they are of high quality. in general community assessment, there is a failure of political parties in conducting cadre, so that the phenomenon of nominating artists and former athletes (public figures) is expected to boost votes in the electoral process. while for artists and former athletes, becoming a candidate for legislative member is an opportunity to devote themselves to the nation in the political field by taking advantage of their popularity. the popularity of legislative candidates is often used by political parties to boost party votes, coupled with a pattern of recruitment that is open to public, a political party will attract a lot of cadres, which means a bigger chance to gain the party's victory in the election. based on that reason, the members of the fkpb of the house of representatives should not only rely on popularity but also have to include good performance. in an effort to encourage the performance of the apparatus, it is necessary to pay attention to factors that can influence it, namely humans as the main factor because humans have thoughts, feelings, self-esteem, social status and other needs. the success of an organization is not solely due to existing good and high competence members that the organization has, but it is also influenced by the commitment of the members themselves to work using their abilities to the fullest. with this commitment, a power will emerge to encourage members of the fpkb dpr ri to mobilize all their abilities. commitment is an important role in increasing performance as people with high commitment will do their best to complete their work the best they can. dpr ri fpkb members who have political commitment, in the process of implementing the constitution based on the creation of a system of supervision and balance between state institutions. commitment can increase a work activity because people who have high commitment will do their best to complete their work as well as possible. dpr ri fpkb members are expected to have political commitment, in the process of implementing the constitution based on the creation of a system of supervision and balance between state institutions. in organizational commitment to fkpb dpr ri members, they should have what is associated with a sense of identification (trust in organizational values), involvement (willingness to do their best for the sake of the organization) and loyalty (the desire to remain a member of the organization concerned). because there are three main elements in organizational commitment (a sense of identification, involvement and loyalty) that becomes a very important basis for employees to achieve success in carrying out their duties, so as to create good performance. thus employees who have a high commitment to the organization will show improvement in their performance. organizational commitment and competence play an important role in employee performance. (renyut et al, 2017). fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 4 based on the background of the problems that have been submitted, from the description above the performance of the dpr ri fpkb members is made as the dependent variable while the independent variable used is limited to the organizational commitment of the dpr ri board members. theoritical framework performance performance comes from the notion of performance, which is the result of work or work performance. but actually, the performance has a broader meaning, not only the results of work, but including how the work process takes place. according to armstrong and baron (2014) in wibowo (2015), performance is the result of work that has a strong relationship with organizational goals, customer satisfaction, and economic contribution. the concept of performance is expressed by dessler who defines performance as work performance, which is a comparison between actual work results and established work standards. thus, the performance focuses on the results of someone’s work. this means that the performance results from the function of a particular job or the results of an activity during a certain period of time. however, often the results shown from a performance are influenced by factors that are outside the employee's product quality control, competition, equipment, technology, budget constraints, coworkers, and supervision. if uncontrolled factors are less relevant in certain situations, there are other problems with performance-based results. therefore, the need for assessment and feedback, as information material to learn the need to change employee behavior, as an effort to improve performance. this view reveals that a person's performance in relation to the tasks of the organization for which they are responsible is influenced by various factors, including individual personality, organization, and the external environment of the organization. in addition, armstrong and baron suggest that a person's performance is influenced by four factors, namely; personal factors, including individual skills, competencies, motivation and recruitment, quality leadership factors and providing motivation, guidance and encouragement, factors of work systems and facilities provided by the organization, situational factors include changes and emphasis from internal and external factors. performance in carrying out its functions does not stand alone, but is related to job satisfaction and reward levels, influenced by the skills, abilities, and individual traits. in political parties there are several important functions that are carried out by parties as a means of applying their goals. one of the functions of political parties related to this is the recruitment of political parties. stoner in samsudin, defines recruitment as the process of gathering job title candidates in accordance with the human resource plan to occupy a certain position or occupation. basically, it is an attempt to fill vacant positions or jobs within an organization or company, for that there are two sources of labor, namely sources from outside (external) organizations or companies and sources from within (internal). partai kebangkitan bangsa faction (f-pkb) this party has been established since july 23, 1988 with the ideologies carried as pancasila, liberalism and pluralism. pkb was founded by the kiai of nadhatul ulama (nu) namely munasir ali, ilyas ruchiyat, abdurrahman wahid, a. mustofa bisri and fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 5 a. muhith muzadi. pkb first took part in the elections in 1999 and proposed a president, gus dur (kyai haji abdurahman wahid) in 1999-2001. in the 2004 elections pkb votes received 10.57% and 52 seats in the dpr-ri. whereas in 2008 the voice was reduced considerably by acquiring only 27 seats. in 2009, the increase in votes returned to get 47 seats, more than double the previous period. f-pkb until now is led by muhaimin (cak imin) who has a vision that all political parties in indonesia must have the same goal so that indonesia can create a just, prosperous and peaceful. even though f-pkb is dominant with a party based on the majority religion, namely islam, the party's vision is highly upholding indonesian pluralism and highly appreciating the diversity of culture, ethnicity, race and religion in indonesia without taking sides. f-pkb, from the beginning, declared itself as an open party even though the party was initiated by the pbnu, the f-pkb membership was not limited to islam. likewise in the recruitment of candidates for legislative members already have a standard procedure set by the party in terms of the recruitment mechanism for candidates. the mechanism was stated in party regulation no.2 of 2008. to become an f-pkb candidate in the 2009 election, the source of recruitment came from fpkb cadres and noncadres and nu. f-pkb as an open and inclusive party tries to accommodate various ethnicities and religions to become f-pkb candidates. as for the candidates for legislative members from the f-pkb can come from inside or outside the fpkb as stated in article 3 paragraph (1) points a and b of the party regulation that the source of recruitment comes from; a) pkb management, autonomy agency / fpkb institution, nu management, autonomy agency / nu institution at all levels with a percentage of 70%. b) professional and astute scholars with a percentage of 30%. organizational commitment commitment comes from the latin word "commit" which is "committer" which means to initiate an action, collect, combine, entrust, and do. commitment is not carried by a person from birth, but appears, grows and develops by the influence of various factors. for example, one's commitment to an organization is an effective response (attitude) that results from evaluating work situations that connect or attach individuals to the organization. darwish a organizational commitment is defined as a feeling of employee obligation to stay with the organization, this feeling results from the pressure of normative internalization that is given to an individual. based on its development there are several models of commitment, darwish a said organizational commitment can be divided into 3 namely affective commitment, ongoing commitment, and normative commitment. a description of the three commitments can be described as follows: 1. affective commitment: nelson defines affective commitment as a relationship between an employee and his organization that prevents the employee from leaving the organization because it is based on emotional attachment to the organization. research from english et al with the title moderator effect of organizational tenure on the relationship between psychological climate and affective commitment. in the study, affective commitment was found to be stronger for employees with longer service periods, in addition to the involvement of superiors, it was very important for affective commitment. meyer et.al, high affective commitment was found to be associated with low employee turnover, low absenteeism and better performance. 2. ongoing commitment: refers to commitments based on employee recognition relating to the cost of leaving the organization. thus, employees with strong onfawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 6 going commitment remain with the organization because of the high personal sacrifice associated with leaving the organization. english et.al said that ongoing commitment illustrates the need for individuals to remain with the organization as a result of the recognition of the costs associated with leaving the organization. in his research found that organizational support has a positive impact on ongoing commitment. 3. normative commitments: english in his research explains that normative commitments reflect the feelings of someone who is obliged to maintain organizational membership because he is loyal and will remain in the organization. jha argued that normative commitment is a natural tendency to be loyal and committed to institutions or organizations like family, marriage, country and religion. they are solely committed they believe it is indeed done. based on the analysis of some developing concepts, it can be synthesized that organizational commitment is the attachment of one's feelings to aspects of the organization with indicators (a) loyalty to the organization, (b). accepting organizational goals, (c). running the values of the organization, (d). comply with organizational regulations, and (e). responsible for the organization. research method this study uses a quantitative approach, survey methods. the selection of survey methods is used because it can describe phenomena or events that are happening to several variables that affect in a path diagram. research hypothesis testing is carried out using regression and correlation analysis techniques. regression analysis is used to predict the relationship model while correlation analysis is used to determine the degree of influence between research variables. the hypothesis tested in this study is that there is a positive and significant direct effect of organizational commitment on the performance of dpr ri members. this research was conducted on members of the f-pkb dpr ri, the number ranged from 47 member councils, where each member of the f-pkb dpr ri has duties in each commission and the apparatus of the council, which is assigned by the main political party, namely pkb. the relationship between organizational commitment and performance based on the above theoretical framework, it can be explained that the performance of members of the dpr ri as a work appearance, will increase if someone has loyalty to the organization, accepting organizational goals, living the organization's values, complying with organizational regulations, and having organizational responsibility. the above analysis shows that an increase in work performance can be improved by increasing a person's attachment to his organization. thus it is suspected that organizational commitment directly affects the performance of members of the dpr ri. there are several results of research that conducts research on the effect of organizational commitment on employee performance. dr. hueryren’s research shows organizational commitment will positively and significantly affect job performance (2012). according to zahra, dehnavi, heyrani (2014) namely organizational commitment has a significant positive effect on employee performance, normative commitment leaves the strongest effect on average performance, compared to affective comfawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 7 mitment and ongoing commitment. in this study, the influencing variables are called exogenous variables, and the affected variables are called endogenous variables. the variables studied in this study are variable x (organizational commitment) and y (performance) as the main endogenous variables. time of conducting research includes time tested and data collection. the time for the trial of the instrument was carried out starting in january 2018. data collection and processing activities were carried out in january to july 2018 at the dpr's office at the wisma nusantara building 1 and 2 jakarta. to determine the number of representative research samples used the taro yamane formula which aims to obtain the legitimacy of the generalization of the study population, with the formula (riduwan and akdon, 2006): the formula: thus the number of research samples is 47 members of the indonesian parliament. because the research population is homogeneous because they have an educational background and have the same status as members of the f-pkb dpr ri, the sampling technique used in this study is purposive random sampling. before testing the hypothesis, the path analysis requirements are tested first. according to murwani there are four characteristics or requirements, namely: 1. data of each variable is interval data. 2. the relationship between two variables is linear and additive. 3. the relationship between each of the two variables is recursive. 4. the residual variable does not correlate with each other and also not with the variable in the system (muwarni, 2004). thus, the test requirements performed before conducting hypothesis testing are normality and linearity testing. analysis the analysis used in this study is through several statistical test requirements. the analysis test that was carried out was the normality test of the estimated error of the regression data, the significance test and the linearity of the regression and model testing. the table below is a statistical summary of the basic data on the central tendency research produced. table 1. statistical data fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 n = n/(n x d 2 ) + 1) central tendency value x org. commitment y performance n valid 233 233 missing 0 0 mean 2.2803 2.1079 std. error of mean 4.55754 4.44002 median 2.2700 2.1500 mode 161.00 a 170.00 a std. deviation 6.95679 6.77740 variance 4.840 4.593 range 253.00 238.00 8 1. performance (y) performance data has a theoretical score range of 30 to 150, from data obtained in the field which are then processed statistically into a frequency distribution list, the number of classes is calculated according to sturges rules, obtained six classes with a maximum empirical score of 149 and a minimum score of 117, so the range of scores was 32. the results of data calculations obtained an average of 131.64; standard deviation of 8.57; variance of 73.45; a median of 134; and mode of 120. data grouping can be seen in the frequency distribution table as follows. figure 1 . frequency distribution of performance scores (y) based on the above figure, the histogram is then made. there are two axes needed in making the histogram, namely the vertical axis as the absolute frequency axis, and the horizontal axis as the performance score axis. in this case, on the horizontal axis, the limits of the interval class are from 116.5 to 152.5. these prices are obtained by subtracting the number 0.5 from the smallest data and adding the number 0.5 for each class boundary at the highest limit. histogram graph of the distribution of performance data as in the following figure. figure 2 . histogram of performance data (y) 2. organizational commitment (x) the organizational commitment data has a total score between 25 and 125, and the range of empirical scores is between 97 and 124, so the range of scores is 27. results of data calculation obtained an average of 112.38; standard deviation of 7.57; varfawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 minimum 94.00 90.00 maximum 347.00 328.00 sum 5.31e4 4.91e4 9 iance of 56.85; a median of 113; and mode of 111. the grouping data can be seen in the frequency distribution table as follows. figure 3. frequency distribution of organizational commitment scores (y) based on the above table, the histogram will then be made. there are two axes needed in making the histogram, namely the vertical axis as the absolute frequency axis, and the horizontal axis as the axis of organizational commitment score. in this case, on the horizontal axis, the limits of the interval class are from 96.5 to 126.5. these prices are obtained by subtracting the number 0.5 from the smallest data and adding the number 0.5 for each class boundary at the highest limit. histogram graph of the distribution of organizational commitment data as shown in the following figure. figure 4. histogram of organizational commitment data (x) 3. normality test data used in compiling the regression model must meet the assumption that the data comes from normally distributed populations. the normality assumption basically states that in a regression model it must be normally distributed. the assumption test in this study was carried out by testing the normality of data from the five error estimation of the research regression to be analyzed. the test results on the research sample are used to draw conclusions whether or not the observed population has a normal distribution. for normality testing, the lilliefors test is used. in this test the first error (sample) is arranged in the order of values, then determined the standard number (zi), the frequency s (zi), and the lowest frequency f (zi), which then subsequently determined the difference between the lowest frequency and the real frequency at each error value . the maximum absolute price of the difference is referred to as lhitung. the lhitung value is then compared with the ltable for the real level α = 0.05. if the calculated l value ≤ l table value then the estimated error y data for x comes from the normal distribution population, conversely if the lhitung value> ltable value then the estimated y error data for x does not come from the normal distribution population. fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 10 tabel 2. test results for regression estimation normality errors 4. test of significance and regression linearity research hypothesis testing is carried out using regression and correlation analysis techniques. regression analysis is used to predict the relationship model while correlation analysis is used to determine the degree of influence between research variables. in the initial stage of testing the hypothesis is to state the effect of each exogenous variable on endogenous variables in the form of a simple regression equation. the equation is determined using measurement data in the form of exogenous variable pairs with endogenous variables such that the regression equation model is the most suitable form of relationship. before using the regression equation in order to draw conclusions in hypothesis testing, the regression model obtained was tested for significance and continuity by using the f test in the anova table. the criteria for testing the significance and linearity of the regression model are set as follows: significant regression: fvalue> ftable in the regression line linear regression: fvalue <ftable on the tuna line matches from the calculation data for the preparation of the regression equation model between performance and organizational commitment in appendix 5 obtained a regression constant a = 53.96 and a regression coefficient b = 0.69. thus, the relationship of the simple regression equation model is ŷ = 53.96 + 0.69x3. before the regression equation model is further analysed and used in drawing conclusions, first the significance and linearity of the regression equation is tested. the results of the test of significance and linearity are arranged in the anava table as in the following table. figure 5. anova for test of significance and linearity of regression equations ŷ = 53.96 + 0.69x3 notes: **: significant regression (fvalue> f table) ns: regression is linear (fvalue <ftable) dk: degrees of freedom jk: the number of kudrat rjk: average number of squares fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 galat taksiran regresi n l value l table note α = 0,05 y for x 233 0.053 0.581 normal distribution 11 the next step is to conduct a correlational analysis by reviewing the levels and significance of the relationship between pairs of exogenous variables and endogenous variables. the overall significance and linearity regression results are summarized in the following table: figure 6. significance test results and regression linearity tests regression equation ŷ = 53.96 + 0.69x3, for the significance test obtained fcount26,400 is greater than ftable (0.05; 1: 45) 4.057 at α = 0.05. because fvalue> ftable, the regression equation is declared significant. for the linearity test, the fvalue is 0.626 smaller than the ftable (0.05; 23: 22) of 2.038 at α = 0.05. because fvalue <ftable, the estimated point distribution forming a linear line is acceptable. results the results obtained after analyzing the model are used as a basis for answering hypotheses and drawing conclusions in this study. the results of the analysis of research data on the effect of organizational commitment on the performance of members of the indonesian parliament have been tested that the hypotheses proposed and examined at a significance level of α = 0.05 or of α = 0.01. the pathway of exogenous variables to endogenous variables has been tested for positive direct effects. there is a direct and positive effect of the variable organizational commitment on performance. the results of the analysis of this hypothesis produce findings that organizational commitment has a direct positive effect on performance. based on these findings, it can be concluded that performance is directly affected positively by commitment. increased organizational commitment will result in improved performance. the results of this study are in accordance with previous studies (guridno and sinambela, 2018) which say that there is indeed a positive and significant correlation. an organization whose employees have high organizational commitment will get high performance results. organizational commitment in the republic of indonesia dpr is always maintained by the secretariat general of the secretariat general through various activities and regulations. for example in online attendance so that employees are more committed in improving performance and achieving their goals. watson and tharp mentioned similar theory that “commitment is not something you have, it is something you do”. although in defining a commitment, we need to be careful. the binding will make someone try to achieve the results of his work to the fullest. a person's loyalty to the organization, accepting organizational goals, living the values of the organization, complying with organizational rules, and being responsible for the organization for the work carried out will arouse his efforts to improve the quality of work plans, work implementation arrangements, personal discipline, providing motivation, conducting work relationships , work communication, building team work, supervising and evaluating work results. fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 12 the results of the analysis found that organizational commitment has direct positive impact on performance. based on these findings, it can be concluded that performance is directly and positively affected by commitment. this is strengthened by the notion that organizational commitment essentially measures the compatibility between individual values and organizational beliefs (boles, madupalli, rutherford, and wood, 2007). this means that organizational commitment denotes a relationship between individuals and organizations. individuals with high organizational commitment have devotion, trust, and loyalty to the organization where they work. conclusions based on the results of the analysis and discussion described previously, the conclusion of this study is that organizational commitment has a direct positive effect on performance. that is, increasing organizational commitment will result in improved performance. the performance of members of the dpr ri as a work appearance will increase if there is someone's loyalty to the organization, accepting organizational goals, living the organization's values, complying with organizational regulations, and organizational responsibilities. the above analysis shows that an increase in work performance can be improved by an increase in a person's attachment to his organization. thus, it is suspected that organizational commitment directly affects the performance of members of the dpr ri. organizational commitment has a direct positive effect on performance. it implies a need for a leadership skill which understand and has a unite perceptions about members of the dpr ri who really work in the dpr, so as to create a conducive working atmosphere for all elements. references asyifa, s. (2012). rekrutmen politik berdasarkan ikatan primordial. http://asyiepha.blogspot.co.id/2012/07/rekrutmen-politik.html. diakses 25 april 2017. bernard, c. renyut, h. et al. (2017). the effect of organizational commitment, competence on job satisfaction and employees performance in maluku governor's office. iosr journal of business and management (iosr-jbm). volume 19, issue 11. darwish, ya. (2000). organizational commitment and job satisfaction as predictors of attitudes toward organizational change in a non-western setting. personnel review, vol 29 iss: 5. david, lw. roland, gt. (1995). self-directed behavior: self-modification for personal ajustment, 4 th edition (california: books/cole publishing company. gary, d. (2002). manajemen sumber daya manusia. jakarta:pt. prenhal-indo. james, b. ramana, m. brian, r. et al. (2007) the relationship of facets of salesperson job satisfaction with affective organizational commitment. journal of business & industrial marketing. vol 22, iss 5. james, j.m. (2003). quantum leap thinking. surabaya: ikon teralitera. jex, sm. britt, tw. (2002) organizational psychology: a scientist-practitioner approach. new york: john wiley & sons, inc. moeheriono. (2012). pengukuran kinerja berbasis kompetensi, edisi revisi, cetakan pertama. jakarta: raja grafindo persada. fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 13 muhammad, rk. ziauddin. farooq, aj. (2010). the impacts of organizational commitment on employee job performance. european journal of social sciences. volume 15, number 3. negin, m, omid, m. ahmad, bm. (2013). the impact of organizational commitment on employees job performance. „a study of meli bank. interdisciplinary journal of contemporary research in business. vol 5, no. 5. riduwan and akdon. (2006). rumus dan data dalam aplikasi statistika dalam manajemen, bandung: alfabeta. robbins, sp.judge, ta. (2011). organization behavior. 14 th global edition. new jersey: pearson education, rowden, rw. (2000) the relationship between charismatic leadership behaviors and organizational commitment. leadership & organization development journal. vol 21, iss 1. santosa, rm. (2004) analisis jalur .jakarta: pps unj. sopiah. (2008). perilaku organisasional. yogyakarta: penerbit andi. wibowo. (2014) manajemen kinerja .jakarta: pt. raja grafindo persada. fawaid, j., supriyati, y., madhakomala, r., & utama, z. m.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.1 2019 p (1-13)  the effect of organization commitment to performance of partai kebangkitan bangsa (pkb) members of indonesian parliament.  https://doi.org/10.21009/jobbe.003.1.01 41 abstract the objectives of this research was to study the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of education department employees in province of dki jakarta. quantitative approach used in this research with survey method. the samples of this research were 120 employee selected randomly. the data were obtained by distributing questionnaire and analyzed by using path analysis. the first results of the research can be concluded that organizational climate and work motivation had a positive direct effect on ocb. second, organizational climate had a positive direct effect on work motivation. third, organizational climate had a positive indirect effect on ocb through work motivation as an intervening variable. therefore to improve ocb of education department employee in province of dki jakarta, organizational climate and work motivation should be improved. keywords: organizational climate, work motivation, organizational citizenship behavior (ocb) received: 14 august 2019 ; accepted: 15 november 2019 ; publish; december 2019. how to cite: sinaga, a., abdullah, t., & tunas, b. (2019). the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta. journal of business and behavioural entrepreneurship, 3(2), 41-57. https://doi.org/10.21009/jobbe.003.2.03 the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta arnest sinaga doctoral program of hrm department, jakarta state university, indonesia email: arnestsinaga_im09s3@mahasiswa.unj.ac.id thamrin abdullah doctorate program of jakarta state university, indonesia billy tunas doctorate program of jakarta state university, indonesia 42 introduction development of human resources is one of the priority of government work programs. people is very aware of the importance of education for the future of every citizen to achieve success in their lives. the people expectation is so high that‟s why public is pushing for the government to truly realize their expectetaions. but the reality there are several complaints is marked by the existence of problems that arise at the beginning of each school year. also problems related to teaching and learning guidebooks in schools that often change every turn of the ministry leadership. in the teaching-learning process, it is also felt to be unsatisfactory, where one indicator is that there are still many students who have to take courses outside of school for certain subjects taught in schools with the aim that these students can take classes. another indicator is that our education quality ratings are still relatively low compared to the quality of education in some asian countries especially at the international level. there are still other problems that can be revealed if thoroughly inventoried. the object of this research is the education department employee of the dki jakarta located at jalan gatot subroto, kav. 40-41, south jakarta, which is one of the institutions of the ministry of national education in this region to be able to implement the vision and mission of the ministry of national education in the education sector. it is undeniable that one of the sources of the problem described earlier occurred due to human resource factors where the prosocial behavior of employees was still low, as indicated by several indications, namely: employees who are still selfish only focus on their formal duties and do not have the initiative or volunteering to help workers who are unable to enter work, or workers who have completed their formal tasks even though there is still have time available but are not moved to help colleagues who have more workloads, fast complacency, and low employee productivity are reflected in the slow delivery of needed services and the low work discipline of some employees is reflected in the presence in the workplace which is often late and returns early. one effort to overcome this by increasing organizational performance because organizational performance is inseparable from the performance of each individual in the organization. if employee performance increases, it will directly result in organizational performance also increasing. one of the factors that can encourage an increase in employee performance is growing, generating and increasing ocb or what is called organizational citizenship behavior, abbreviated as ocb (spitzmuller, et. al., 2008: 107) education department employees. as a public organization, employees who are expected to work in the public service not only can work in accordance with the rules (in-role), but also individuals who have prosocial behavior, enjoy working together, helpful behavior, support a pleasant organizational atmosphere, provide positive contribution to the organization that exceeds the demands of the role at work (extra-role). in order for employee ocb to increase, it is very important for the organization to identify factors that can encourage or increase employee ocb. from various research studies conducted by experts there are various factors that can influence ocb, such as the results of smith's research in hassan khan et. al., (2017: 82) entitled "a review of the conceptualization of organizational citizenship behavior", states that the organizational environment and personality of employees have a significant contribution to job satisfaction and the results increase employee ocb. literature review organizational citizenship behavior (ocb) sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 43 in luthans (2011:149), organ which first introduced ocb, defines ocb as employee voluntary behavior that is not directly related to rewards, but contributes to the efficiency and effectiveness of the organization. so it is very important to make an organization effective and efficient. according to colquitt, et. al., (2015:40) which defines organizational citizenship behavior as voluntary employee activity that may be valued or may not be valued but contributes to the organization which has an impact on overall improvement. ivancevich, et. al., (2014:215) defines ocb as follows: all employee activities outside of their formal duties / jobs are called organizational citizen behavior (ocb) and this behavior is important for an organization. whereas according to schermerhorn, et. el., (2012:67) says about ocb as the behavior of employees who are free to make choices, which represent their desire to make a duty call beyond their formal job duties or work extra in their work assignments. whereas robin and judge (2016:65) define ocb as the behavior of employees who voluntarily work or do something that is not part of their formal work scope as an employee, but the employee is voluntary to do so with the intention / purpose that the organization can function effectively. newstrom and davis (2015:245) define ocb as voluntary employee spontaneous behavior, the constructive impact on outcomes, such as helping others, is prosocial behavior. while slocum and hellriegel (2009:153), defines that ocb refers to employees who perform tasks beyond their formal duties. from the description above, it can be synthesized that ocb is the behavior of individual members of the organization who want to perform tasks that exceed their formal duties and are carried out voluntarily without expecting compensation, which contributes positively to organizational performance. organizational climate an organization always tries to create dynamic and attractive conditions for its members. because generally workers need a conducive work climate so that they can do their jobs calmly, happily, passionately and full of enthusiasm. thus the results of their work will be better so that the company's goals can also be realized well. workers think the climate of the organization they work in is fun if they can do their jobs well and feel valued. according to mullins (2010:748), that the task of management of an organization, in addition to regulating the implementation of organizational processes, they also have the responsibility to create an organizational climate so that every worker is motivated to work effectively and with a sense of voluntary. whereas according to robbins and judges (2016:558) that organizational climates refer to the shared perceptions held by organizational members about the organization and its work environment. whereas owens in soetopo (2017:34) states that "the organization of the climate of perception that individuals have in the environment in the organization" thus the assessment of organizational climate can be done by digging data from the perceptions of individuals in the organization . according to keith devis in triatna (2017:37) which defines organizational climate as "the human environment within organizations' employees do their work". this definition refers to the work atmosphere felt by employees, based on their interactions when they are related to other personnel in their work environment. furthermore a. dale timpe in triatna, (2017:37), defines organizational climate as a series of environmental traits that can be measured based on the collective perception of organizations that live and work in their environment and can build their motivation and behavior. benjamin schneider in the riad (2016: 58), provides a definition of an organizational climate that is also widely adopted, that the organizational climate is a description of a mutually agreed internal environment about organizational practices and procedures. from the description above can be synthesized organizational climate is the perception of members of the organization about sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 44 the atmosphere of the internal environment of the organization that members feel that affects members directly or indirectly. work motivation motivation explains how to direct the power and potential to work towards the stated goals (hasibuan, 2006:141). richard l. daft (2012:466) defines that motivation refers to strength both from within or from outside a person who arouses enthusiasm and perseverance to pursue certain actions. employee motivation affects productivity, so it is the duty of a manager to channel motivation to achieve organizational goals. furthermore kreitner and kinicki (2011:212) define motivation as a psychological process that arouses passion, direction, and persistence of voluntary actions directed at goals. kreitner and kinicki also classify motivation into two general categories of motivation theory to explain the psychological processes that underlie workers' motivation, namely: content theory motivation or motivation of content theory and process theory motivation or process theory. according to suparyadi (2015:417) motivation is an impulse caused by a need (initiative) that moves and directs individual behavior to achieve certain goals or incentives. according to dewi anggraeni (2011:31) motvation is a process that explains the intensity, direction, and perseverance of an individual to achieve his goal. there are three main elements of motivation, namely intensity, direction and perseverance. according to sedarmayanti (2017:257), motivation is the emergence of behaviors that lead to certain goals with full commitment to achieve the intended purpose. so that motivation is the willingness to issue a high level of effort towards organizational goals that are conditioned by the ability of that effort to meet individual needs. from the description above it can be synthesized that motivation is a strong drive from someone to achieve success by doing work better than before in order to achieve a predetermined goal. in accordance with the purpose of this study, it is to prove the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of the education department employees, dki jakarta, the researcher formulated the statistical hypothesis as follows: 1. the direct effect of organizational climate on ocb of the dki jakarta education department office employees. h0 : βyx1 ≤ 0 h1 : βyx1 > 0 2. the direct effect of organizational climate on work motivation of dki jakarta education department office employees. h0 : βyx2 ≤ 0 h1 : βyx2 > 0 3. the direct effect of work motivation on ocb of dki jakarta education department office employees. h0 : βx2x1 ≤ 0 h1: βx2x1 > 0 4. the indirect effect of organizational climate on ocb of dki jakarta education department office employees through work motivation as intervening variable. h0 : βyx2x1 ≤ 0 h1 : βyx2x1 > 0 the novelty of this research : from the searches that have been carried out so far, have not found any previous research examining the direct influence of two independsinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 45 ent variables organizational climate and work motivation, together, on organizational citizenship behavior as the dependent variable, and the direct effect of the independent variable organizational climate on motivation work and its impact on organizational citizenship behavior using sobel-test to determine the effect of work motivation as an intervening variable (mediator) in the dki jakarta education department office. research methodology the research method uses quantitative methods with path analysis (sugiyono, 2010: 297). data collection was carried out by providing three sets of questionnaires. the first questionnaire is organizational citizenship behavior consist of 30 items of statements, the second questionnaire is organizational climate consist of 27 items of statements and the third questionnaire is work motivation consist of 26 items. all questionnaires were filled out by 120 employees as a sample who were randomly selected from 172 population employee in the dki jakarta education department office. all data collected was analyzed using excel and spss applications. results and discussions tables 3-1 through 3.4 show descriptive statistical results from data collected and analyzed using excel and spss applications. tabel 3.2 analysis of indicators of ocb variable tabel 3.1 descriptive statistics data n minimum maximum sum mean std. deviation variance statistic statistic statistic statistic statistic std. error statistic statistic x1 120 76 116 11424 95.20 .954 10.447 109.136 x2 120 77 117 11570 96.42 .875 9.582 91.808 y 120 84 120 12138 101.15 .813 8.906 79.322 valid n (listwise) 120 no. indicator total of items average score per indikacor 1. altruism : selfless behavior of employees 7 3,00 2. conscientiousness : the care of employees towards the rules and regulations 7 3,30 3. sportsmanship : enable them not wasting time complaining about small issues 5 3,52 4. courtesy : polite behavior of employees 5 3,46 5. civic virtue : to keep abreast with changes in the working environment 6 3,70 sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 46 tabel 3.3 analysis of indicators of organizational climate variable tabel 3.4 analysis of indicators of work motivation variable figure 3.1 is to show the design of the research model described in this study. figure 3.1 design of research model before the path analysis is carried out, the data obtained first must be carried out normalization tests and significance tests and linearity tests. with the help of excel application, the normality test results are obtained as follows : 1. normality test normality test with lilliefors test uses non parametric statistical concepts. the summarized results of calculations by using excel applications obtained in the table 3.5. no. indicator total of items average score per indikacor 1. structur : the rules, regulations, procedures applied in the organization 6 3,46 2. standard : to improve performance and the level of pride 4 3,75 3. responsibilty 4 3,85 4. reward and punishment 5 3,60 5. support : trust and mutual support among employees 5 3,24 6. pride as a member and loyal to the organization 3 3,26 no. indicator total of items average score perindikacor 1. encouragement to achieve 7 4 2. to be responsible 5 3,37 3. strong desire develop yourself 5 3,33 4. guided by organizational policy 3 3,34 5. appreciate the wage salary system 3 4,67 6. maintain interpersonal relations 3 3,62 work motivation organizational climate (x1) o c b sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 47 table 3.5 the summarize of normality test 2. significance test and linearity test significance test and linearity test using excel and spss applications and the results are shown in table 3.8 below. table 3.6 summary result of significant test and linearity test 3. m o d e l i n g t e s t modeling test is done to determine the existence of a significant correlation between the variables associated with calculating the correlation coefficient (sandjojo, 2011:97). by using spss application, significant correlation values are obtained between variables as shown in table 3.7. table 3.7 correlation coefisien of x1, x2, dan y no. normality test l count l table (=0.05) remark 1 y over x1 0,033 0,081 normal 2 y over x2 0,052 0,081 normal 3 x2 over x1 0,061 0,081 normal n o. regresi equation f count f table (=0.05) result f count f table (=0.05) result 1 ŷ=62,74+0,403x1 34,048 3,92 signifikan 1,109 1,76 linier 3 ŷ=62,74+0,403x2 45,04 3,92 signifikan 0,724 1,76 linier 4 x2=61,4+0,37x1 22,62 3,92 signifikan 0,938 1,76 linier x1 x2 y x1 pearson correlation 1 .401 ** .473 ** sig. (2-tailed) .000 .000 n 120 120 120 x2 pearson correlation .401 ** 1 .526 ** sig. (2-tailed) .000 .000 n 120 120 120 y pearson correlation .473 ** .526 ** 1 sig. (2-tailed) .000 .000 n 120 120 120 **. correlation is significant at the 0.01 level (2-tailed). sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 48 the structural model in this study is shown in figure 3.2. from the path diagram there are three path coefficients, namely ρyx1; ρyx2; ρx2x1 and three correlation coefficients namely ryx1; ryx2; ryx2x1 and the correlation coefficients are shown in table 3.5. figure 3.2 causal relations x1, and x2 towards y according to the stages of path analysis the path coefficient values are calculated and tested using statistical tests. if the path is tested the value of the t-count test > t-table (α = 0.05), the pathway is declared significant and can be used for the next process. a. path coefficient calculation (direct influence) 1. path coefficient calculation in sub-structure 1 the structural model in figure 3.2 consists of two sub-structures namely substructure-1 and sub-structure-2. causal hubs between variables in substructure-1 can be seen on figure 3.3, consists of one endogenous variable namely y and two exogenous variables namely x1 and x2 and the substructural-1 equation is as follows: y = ρyx1x1 + ρyx2x2 + ε1 figure 3.3 causal relations x1 and x2 on y in substructure-1 in table 3.7 can be seen the results of the calculation of the path coefficient using spss application obtained the path coefficient as follows: a) ρyx1 = beta = 0.313 (t-yx1 = 3.868 and probability (sig) = 0,000) b) ρyx2 = beta = 0.400 (t-yx2 = 4,950, and probability (sig) = 0,000) thus the results of the analysis prove that all path coefficients are significant, where both values of t-test > t-table = 1.980 (at α = 0.05) so that the model in figure 3.3 can be used. work motivation (x2) organizational climate (x1) o c b ( y ) ρyx1 ryx1 ρyx2 ryx2 ρx2x1 rx2x1 work motivation (x2) organizational climate (x1) o c b ( y ) ρyx1 ryx1 ρyx2 ryx2 sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 49 table 3.8 coefficients x1 and x2 towards y while the contribution of x1 and x2 to y or determinant coefficient (rsquare = r 2 yx2x1) results of calculations using spss application as shown in table 3.9 the value is = 0.358. this states that 35.8% of work motivation variables (y) are determined by organizational climate variables (x1) and work motivation variables (x2). the residual coefficient ε1 = √ (1 r2yx2x1) = √ (1 0.358) = 0.801, is the influence of other variables outside the variables x1 and x2. thus the equation for substructural-1 is: y = 0.313 x1 + 0.400 x2 + 0.801 and r 2 yx2x1 = 0.358 2. path coefficient calculation in substructure-2 causal hubs between variables in substructure-2 can be seen in figure 3.4, consisting of one endogenous variable, x2 and one exogenous variable, x1. figure 3.4 causal relationship x1 to x2 in substructure-2 the substructural-2 equations are as follows : x2 = ρx2x1x1 + ε2 in table 3.12 can be seen the results of the calculation of the path coefficient using model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 39.904 7.606 5.247 .000 x1 .267 .069 .313 3.868 .000 x2 .372 .075 .400 4.950 .000 a. dependent variable: y table 3.9 sub-struktur 1 model summary model r r square adjusted r square std. error of the estimate 1 .599 a .358 .347 7.195 predictors: (constant), x2, x1 work motivation (x2) organizational climate (x1) ρx2x1 rx2x1 sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 50 spss application obtained the path coefficient as follows : tabel 3.10 coefficients of x1 towards x2 ρx2x1= beta=0,401 (t-yx1=4,756 and probability (sig)=0,000) 3.11 substruktur-2 model whereas the contribution of x1, to y or the determinant coefficient (rsquare = r2yx2x1) results of calculations using spss application as shown in table 3.11 the value is = 0.161. this states that 16.1% of work motivation variables (x2) are determined by organizational climate variables (x1). the residual coefficient ε2 = √ (1 r 2 yx2x1) = √ (1 0.161) = 0.916, is the effect of other variables outside of variable x1. thus the equation for substructural-2 is : x2 = 0,401 x1 + 0.916 and r 2 yx2x1 = 0,161 based on the results of the sub-structure path coefficients 1 and 2, a causal relationship between variables x1 and x2 to y can be described as shown in figure 3.5. the results of the path coefficients in substructure-1 and substructure-2 are the following structural equations: y = 0.313 x1 + 0.400 x2 + 0.801 and r 2 yx2x1 = 0.358 x2 = 0.401 x1 + 0.916 and r 2 x2x1 = 0.161. thus the theoretical models tested in this study have represented or are in accordance with the structure of equations based on empirical data. furthermore, from the results of the calculation of the path coefficient above then analyzed to determine whether the hypotheses that have been formulated can be accepted or rejected. model r r square adjusted r square std. error of the estimate 1 .401 a .161 .154 8.815 a. predictors: (constant), x1 model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 61.400 7.407 8.289 .000 x1 .368 .077 .401 4.756 .000 a. dependent variable: x2 ρyx1=0,313 ryx1 work motivation (x2) organizational o c b ( y ) ρyx2=0,400 ryx2 ρx2x1=0,401 rx2x1 figure 3.5 causal relationship of variable x1 and x2 toward y sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 51 b. path coefficient calculation (indirect influence) to calculate how big the role of the work motivation variable (x3) mediates the influence of organizational climate (x1) on organizational citizenship behavior (y) the sobel test formula is used. to see how significant the indirect effect is, the product of coefficient strategy is used with the z value of the critical value = 1.96, where to calculate the z value the formula (bimo, 2017; mackinnon, 2008) is used as follows: legend : values of a and b as well as sea and seb are obtained using regression analysis with spss aplication conducted on the organizational climate as an independent variable, work motivation as a mediator variable and organizational citizenship behavior as the dependent variable. regression analysis was conducted twice, the first was an analysis of organizational climate regression on work motivation, the results seen in table 3.10, where the value of the climate regression coefficient was a = 0.368 with the standard error being sea = 0.077. then the second was analysis of organizational climate regression and work motivation on organizational citizenship behavior results are shown in table 3.8, where the regression coefficient value is b = 0.372 with an error standard of sea = 0.075. „a : the regression coefficient of the independent variable to the mediating variable „b : the regression coefficient of the mediating variable to the dependent variable sea : standard error of estimation from the influence of the independent variable on the mediating variable seb : standard error of estimation from the effect of mediating variables on the dependent work motivation b=0,372 a=0,368 organizational citizenship behavior organizational climate figure 3.6 work motivation as mediation of organizational climate towards ocb √ z = 0,368 x 0,372 z = 3,4415553 sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 52 thus the z value can be calculated using the sobel test formula using the regression coefficient and the standard error above, the results are as follows : tabel 3.12 summary of the hypothesis testing results. *) value t-calc is obtained by using the sobel test discussion based on the results of a review of the literature and the results of empirical research shows the effect of organizational climate and work motivation on ocb. this study also proves the hypothesis that has been made based on the study of the literature above that ocb is jointly influenced by organizational climate and work motivation. the results of this study state the importance of the role of human resources for the achievement of an organization's goals. ocb is one of the important and very decisive variables in the efforts of every organization to improve its performance. 1. direct and significant effect of organizational climate on ocb the results of the research that have been conducted prove that the organizational climate is one of the variables that positively influences ocb. this means that if the organizational climate is more conducive or better, it will have an impact on increasing employee ocb. in the table 3.3, indicators of support, mutual trust and mutual support among employees on organizational climate variable are the indicators with the lowest score, with an average score equal to: 3.24. while indicators of employee responsibility on organizational climate variable are indicators with the highest score, the average score per indicator: 3.85. thus what should be the concern of the leadership of an organization is to make the organizational climate always comfortable for all employees in the organization by increasing all indicators that are still low which will directly influence ocb improvement. this is in line with the results of research conducted by siroos ghanbari and asghar eskandari (2012:211) which show that there is a positive and significant correlation between organizational climate, work motivation and employee ocb. the results of multiple regression analysis indicate that the organizational climate component is the most effective in increasing work motivation and ocb in an organization. the results of this study are also in line with the results of previous studies conducted by gurpreet randhawa and kuldeep kuur (2015). research that focuses on the two most influential variables, namely organizational climate and ocb. where the results of the study indicate a strong positive correlation n o. hypothesis path coeffisient t-calc z calc t-table conclusions 1 h0 : βyx1 0 h1 : 0 0,313 3,868 1,96 0 reject h0, accept h1. there is a positive direct effect of organizational climate on ocb 2 h0 : βyx2 0 h1 : 0 0,400 4,950 1,96 0 reject h0, accept h1. there is a positive direct effect of work motivation on ocb. 3 h0 : βx2x1 0 h1 : βx2x1 0 0,401 4,756 1,96 0 reject h0, accept h1. there is a positive direct effect of organizational climate on work motivation 4 h0 : βyx2x1 0 h1 : βyx2x1 0 0,400 x 0,401 =0,1604 3,047 * 1,96 0 reject h0, accept h1. there is a positive direct effect of organizational climate on ocb trough work motivation sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 53 between organizational climate and ocb. this research has implications for managers to be actively involved in activities that improve the organization's climate to ensure that the desired ocb can be fulfilled. this study also strengthens the results of previous studies conducted by ali shaemi, et. al., who investigated the impact of organizational climate on ocb. the results obtained show that by establishing a conducive work environment, ocb can be improved. based on the description above and in accordance with the empirical evidence that has been carried out in this study and in line with the facts obtained in the field, it is evident that the organizational climate has a direct positive effect on ocb dki jakarta education department employees. 2. direct postive and significant effects of work motivation on ocb the research results show that employee work motivation is also one of the variables that has a direct positive effect on employee ocb. this means that if the work motivation is high, it will have an impact on increasing employee ocb. in the table 3.4 the lowest value is on the indicator of self-development on the work motivation variable, with an average score per indicator of 3.33. however, the highest indicator value is found in the indicator of rewarding services (salary and incentives) on the work motivation variable with an average score per indicator of: 4.67. this means that in general employees really appreciate the provision of service fees (salary and incentives) for the performance they have dedicated to the organization where they work. thus what should be the concern of the leadership of the organization makes the motivation of all employees in the organization to be high by increasing all indicators that are still low, this means that if work motivation increases, it will have an impact on increasing employee ocb. this research is in line with the research conducted by safaa shaaban (2018) with the research title "the impact of motivation on organizational citizenship behavior: the mediation effect of employees engagement" conducted at the egyptian ministry of civil aviation (moca). the study aims to examine the relationship between employee motivation, and organizational citizenship behaviors (ocb). the research method combines qualitative and quantitative methods applied through questionnaires, in-depth interviews and pla (participatory). the results of this study provide answers that motivation and ocb are interrelated where employees who show a higher level of motivation have a high ocb. this means, if employees are motivated, the percentage of ocb involvement is also high. this research is also in line with hemakumara et. al., (2018), entitled "effect of motivation on organizational citizenship behavior of administrative staff of state universities in sri lanka" aims to analyze the effect of motivation on the citizenship behavior of administrative staff organizations from 15 state universities in sri lanka. the results showed that both intrinsic motivation and extrinsic motivation had a significant positive effect on organizational citizenship behavior. this research is reinforced by luthans (2011: 149) in his book "organizational behavior: an evidence-based approach", stating that "motivational dimension, job satisfaction, and organizational commitment is clearly relate to ocbs" (motivation, job satisfaction, organizational commitment is closely related with ocb. based on the description above and in accordance with the empirical evidence carried out in this study and in line with the facts obtained in the field, it is evident that work motivation has a direct positive effect on ocb dki jakarta education department employees. 3. direct postive and significant effect of organizational climate on work motivation and its impact on ocb sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 54 the research results show that the organizational climate is one of the variables that has a positive direct effect on work motivation. this means, if the organizational climate is more conducive or better, it will have an impact on increasing employee motivation. in the table 3.3, indicators of support, mutual trust and mutual support among employees on organizational climate variable are the indicators with the lowest score, with an average score equal to: 3.24. while indicators of employee responsibility on organizational climate variable are indicators with the highest score, the average score per indicator: 3.85. thus what should be the concern of the leadership of an organization is to make the organizational climate always comfortable for all employees in the organization by increasing all indicators that are still low which will directly influence not only improve ocb but also improve work motivation employee. this research is in line with the results of previous studies conducted by bhawana saun, et. al., (2016), where the results of the study indicate that organizational climate has a significant and positive effect on motivation. this means that if the organizational climate increases, motivation will also increase. this study also strengthens the results of previous studies conducted by gabriela rusu and silvia avasilcai (2014). by analyzing the relationship between the dimensions of organizational climate and motivation, the results indicate the influence of organizational climate on employee motivation. so that from the results obtained, it is proposed to create an organizational climate that can increase employee motivation. this study also strengthens the results of previous studies conducted by bhattacharya and mukherjee (2013) which aimed to study the relationship between organizational climate and work motivation. the results revealed that there was a positive relationship between perceived organizational climate and work motivation. based on the description above and in accordance with the empirical evidence that has been carried out in this study and in line with the facts obtained in the field, it is evident that organizational climate has a direct positive effect on work motivation of dki jakarta education department employees 4. postive and significant indirect effects of organizational climate on ocb through work motivation as intervening the research results show that the organizational climate has a positive direct effect on work motivation. and the research results also show that employee work motivation has a direct positive effect on employee ocb. thus what should be the concern of the leadership of an organization is to make the organizational climate always comfortable for all employees in the organization by increasing all indicators that are still low which will directly influence ocb improvement. if the employee's work motivation increases, the employee's ocb will also increase. this is in line with the results of research above conducted by siroos ghanbari and asghar eskandari (2012:211) which show that there is a positive and significant correlation between organizational climate, work motivation and employee ocb. this is also in line with these two the results of previous studies above conducted by bhattacharya and mukherjee (2013) which aimed to study the relationship between organizational climate and work motivation. and also the results of previous studies conducted by ibrahim and aslinda (2014), to study the relationship between work motivation and ocb at telkom indonesia in makassar, show that work motivation has a positive direct effect on ocb. from these all studies mean, if the organizational climate is more conducive or better, then in addition to having a direct positive and significant effect on ocb, it will also have a positive indirect effect on ocb through work motivation that functions as an intervening variable. however, the results of the study prove that the influence of organizational climate on ocb is still sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 55 greater than indirect influence or through work motivation as intervening so that the intervening impact can be ignored. conclusion the organizational climate has a positive and significant direct effect on ocb employees of the dki jakarta education department office. this means that creating a conducive organizational climate will be able to provide a positive direct influence on the increase in ocb employees of the dki jakarta education department office. work motivation has a positive and significant direct effect on ocb employees of the dki jakarta education department office. this means that every effort to encourage employee work motivation will have a positive direct effect on increasing ocb employees of the dki jakarta education department office. the organizational climate has a positive and significant direct effect on the work motivation of employees of the dki jakarta education department office. this means that every effort to improve a more conducive organizational climate will also have a positive direct influence on increasing the work motivation employees of the dki jakarta education department office. the organizational climate has an indirect effect on the increase on ocb employees of the dki jakarta education department office through work motivation as intervening. this means that every effort to improve the organizational climate is more conducive and will also have a positive direct influence on increasing work motivation and will also have an impact on increasing the ocb employees of dki jakarta education department. implication the results showed that there was a positive direct effect of organizational climate on ocb. if the organizational climate is organized, socialized, well-planted and believed and used as a basis for behaving in work, it can increase ocb employees of dki jakarta education department. this can be done by the leaders through dialogue activities, meetings with subordinates to improve organizational climate factors or indicators which are considered to be less than optimal. the results of the study found that there was a positive direct effect of work motivation on ocb, indicating that encouraging employee motivation by providing responsibility, achievement, and recognition of the results of work done, progress, work climate, salary and good relations would increase ocb employee. employees with high work motivation will show a voluntary attitude to improve personal standards, competencies, values and beliefs in achieving common goals. therefore high work motivation can increase ocb employee of of dki jakarta education department. the results of the study found that there was a positive direct effect of organizational climate on work motivation, indicating that the organizational climate in the form of norms, governance and value systems possessed, organized, regulated, socialized well through training, exemplary, regulation and management systems for employees who are oriented towards achieving organizational goals to be subsequently believed by employees can lead to increasing employee motivation and subsequent impacts will also increase ocb employee of dki jakarta education department office. sinaga, a., abdullah, t., & tunas, b. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 56 suggestions the leadership needs to socialize ocb to all employees with the aim of providing a good understanding of ocb which will be reflected in altruism behavior (helping others), courtesy (respecting others), conscientiousness (helping the organization), civic resolving problems (taking the virtue role of the company ), and sportmanship (avoid counterproductive behavior) and its benefits to dki jakarta education department office. the socialization can be done directly by the leadership and also by giving an example about ocb and conducting training with an experts who truly master on the ocb. there is a direct and significant effect of the organizational climate on ocb so that leaders should always create a conducive work environment such as good interpersonal relations among employees, an atmosphere of intimacy between superiors and subordinates and fellow co-workers, transparent awards / sanctions, clear regulations and does not cause multiple interpretations. there is a direct and significant effect of work motivation on ocb so that leaders must pay attention to the work motivation of each employee and encourage employees to increase their enthusiasm to work and maintain jobs, like challenges, avoid failure, and strive for excellence. real efforts that can be made do a daily monitoring system on work morale, such as attendance rates, level of participation, level of completion of work, and level of achievement of targets. references ali, shaemi a.; naftchali j, shabani; pool j. khazaei, “analysis the impact of perceived organizational climate on organizational citizenship behavior” j holist nurs midwifery, 2014; 24(3):27-37url: http://hnmj.gums.ac.ir/article-1-316en.html angraeni, dewi, “perilaku organisasi”, 2011, 1 st , lembaga penerbit fakultas ekonom universitas indonesia, jakarta bhattacharya, swaha and mukherjee, monimala, “organizational climate and work motivation a study on private sector organization”, paripex (2013), indian journal of research. bhawana saun, sanjeevni gangwani, sangeeta jain, “impact of organizational climate on teacher’s motivation in madhya pradesh” international journal of management and social sciences research (ijmssr) issn: 2319-4421 volume 5, no. 9, september 2016. colquitt, jason a. and lepine jeffery a. dan wesson michael j. “organization behavior – improving performance and commitment in the workplace” 2009, mcgraw-hill – international edition. gabriela rusu dan silvia avasilcai, “linking human resources motivation to organizational climate” , published by elsevier ltd., 2014. ghanbari, siroos and eskandari, asghar, “organizational climate, job motivation and organizational citizenship behavior”, international journal of management perspective, vo.1, no.3, pp.1-14. hassan khan; muhammad yasir; halimah mohd yusof; mian mohammad saleem; abdul wali khan; noor ullah khan, “a review of the conceptualization of organizational citizenship behavior”, universiti teknologi malaysia, malaysia, city university research journal special issue: aic, malaysia pp 81-87. hemakumara, m.g.g., khatibi, a.a., md gapar md johar; “effect of motivation on sinaga, a., abdullah, t., & tunas, b. 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(2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (41-57)  the effect of organizational climate on work motivation and its impact on organizational citizenship behavior (ocb) of employees of education department in dki jakarta.  https://doi.org/10.21009/jobbe.003.2.03 http://sk.sagepub.com/reference/hdbk_orgbehavior1 http://sk.sagepub.com/reference/hdbk_orgbehavior1 http://dx.doi.org/10.4135/9781849200448.n7 1 abstract the aims of this study is to evaluate the implementation and regulations and legal policies regarding the "getting zero to halinar" program in the correctional institutions (lapas) of class 1 cipinang jakarta and the hrm approach are used as treatments to realize zero halinar as one of the conditions required for the implementation of vision vision and correctional mission the existence of the program has not yet had a positive impact in fostering inmates proven to still be the abuse of the use of mobile phones, extortion and narcotics so that it raises illegal costs (extortion) .this study uses a qualitative approach, a policy evaluation research method. interviews, observations, and literature studies analysis carried out by following the path determined in the difference evaluation model dem the evaluation results of the implementation of the program are relatively effective although they have not yet reached their ideal goals as the director circular correctional number: pas-54.pk.01.04.01 of 2013 concerning the program to get zero for halinar. based on primary data, there were still some problems found in almost every aspect evaluated. therefore, researchers offer a number of recommendations including increasing integrity by internalizing the contents of the getting zero to halinar program to officers / employees / officers and prisoners in each lapas in order to improve hr competencies through education and training, increasing mutual trust in institutions to reduce or eliminate negative excesses from the sectoral egos of each party, strengthening the employee internal control system spip in cipinang class ia laps by ensuring that the working mechanism of the spip team at lapas runs as it should, and periodic (2 years) evaluation and follow-up evaluation plans. keywords: evaluation, zero to halinar program, correctional institution (lapas), hrm. received: 11 october 2019 ; accepted: 11 october 2019 ; publish; december 2019. how to cite: ali, i. j., madhakomala, r., & yohana, c.. (2019). evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta. journal of business and behavioural entrepreneurship, 3(2), 1-24. https://doi.org/10.21009/jobbe.003.2.01 evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta indra jaya ali doctoral program of hrm department, jakarta state university, indonesia email: indrajayaali@yahoo.co.id r. madhakomala doctorate program of jakarta state university, indonesia corry yohana doctorate program of jakarta state university, indonesia mailto:indrajayaali@yahoo.co.id 2 introduction halinar is an abbreviation for the word; android, extortion and narcotics. the implementation of the "getting zero to halinar" program in correctional institutions (lapas) is only limited to coaching and has not been able to change the nature and attitude of officers who are immoral in fostering citizens. in the indonesian criminal law system known as the state detention house (rutan) and penitentiary (correctional institution). in other words, detention is part of a detention institution/ detention institution according to the regulation of the minister of law and human rights of the republic of indonesia number 33 year 2015 concerning security at institutions and detention centers in chapter 1 article 1 paragraph (1) penal institutions hereinafter referred to as lapas is a place to carry out the formation of prisoners and penitentiary students.then, article 1 paragraph (2) state detention house, hereinafter referred to as detention center, is the place where a suspect or defendant is detained during the process of investigation, prosecution, and examination at a court hearing. in article 1 paragraph (3), a convict is a convict who is a convict live a criminal lost independence in prison. furthermore, detainees in article 1 paragraph (4) are a suspect or defendant who is placed in the detention center. lapas is a formal institution that fosters perpetrators of crimes that have been decided through the justice system, court decisions with permanent legal force (in kracht van gewijsde) as regulated in article 270 of the criminal procedure code kuhap. in this context, the management of lapas operations is thought to tend to have a risk factor for large internal conflicts between prisoners and officers / guards. some of the factors that cause internal conflict within prisons and within state detention centers or detention centers (asnedi, 2016) and the implications of overpopulation and overcrowding experienced by most indonesian prisons are the main problems https://nasional.kompas.com/read/2017/07/07/12130041/.overcrowding.yang. menghantui. lapas.di.indonesia?page=all. accessed 3 october 2019). in general, it can be described that the current various problems relating to lapas or state detention centers or detention centers in indonesia are as follows: riots in the banda aceh class iia prison in january 2018, the escape of 113 inmates from the banda aceh class iia prison in november 2018; head of kalapas sukamskin, catching hands (ott operasi tangkap tangan), which occurred in july 2018, is a case of receiving gifts or promises relating to the provision of facilities, permits, or other gifts at sukamiskin prison since april 2018 (situmorang, 2019). in this context, the seriousness of the republic of indonesia's ministry of law and human rights to fundamentally improve the management of prisons and state detention centers or detention centers is a strategic, important and urgent agenda to be immediately addressed to overcome various problems related to prisons and state or detention centers in indonesia in general and in in particular. some of the problems that can be identified are: first, excess capacity in several prisons in indonesia resulting in inaccessibility of prisoners and detainees in prisons and detention centers and a lack of staff skills; second, prison/detention officers have not been equipped with professional expertise to deal with prisoners, are less careful and cautious when dealing with detainees; third, another problem that needs attention is the lack of adequate equipment to handle prisons / detention centers. ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 https://nasional.kompas.com/read/2017/07/07/12130041/.overcrowding.yang.%20menghantui.%20lapas.di.indonesia?page=all https://nasional.kompas.com/read/2017/07/07/12130041/.overcrowding.yang.%20menghantui.%20lapas.di.indonesia?page=all 3 figure.1: overcapacity in some correctional institutions (lapas) in indonesia source: directorate general of corrections of the republic of indonesia ministry of law and human rights, 2017. based on the table 1 above, it can be found that overcapacity in prisons has led to a very very alarming level. situations and conditions like this should not be allowed because lapas in indonesia is bound by this basic principle stipulated in international law, which treats all detainees based on human rights. in this regard, all international standards relating to the treatment of detainees must be humane and respect the rights inherent in accordance with the dignity of the human person (unodc, 2015: 3). on the other hand, several policies to reduce excess capacity appear to have been carried out by the government, among others by creating new rooms, rehabilitating buildings to building new prisons which have the primary goal of increasing prisoner capacity (angkasa, 2010; 217-218). however, this effort does not seem to be able to significantly overcome excess capacity, given that there are far more prisoners than there are additional rooms or detainees who are released. therefore, various problems have been identified so that lapas must be managed properly, both administratively or practically. so that the potential risk of conflict that will increase can be minimized so that it has implications for the success of the program "getting zero to halinar (mobile, extortion and narcotics)". then, some facts and problems are revealed and there are formal rules for the "getting zero to halinar" program, then the problem formulation is explained as follows: 1. what is the legal basis for an anti halinar program? 2. how is the implementation of the anti-light program network in the correctional institutions (lapas) of class 1 cipinang jakarta? 3. how is the implementation of performance in terms of program management and hr management of the anti-glare program in the correctional institutions (lapas) of class 1 cipinang jakarta? 4. what are the results or implementation of the anti -inar program in the correctional institutions (lapas) of class 1 cipinang jakarta? 5. what are the benefits of the halinar program for prison management institutions and prison inmates in the correctional institutions (lapas) of class 1 cipinang jakarta? thus, this research has a very strategic and important and urgent agenda because this research was conducted for the first time to identify the achievement of the halinar program carried out from 2013 to 2017. thus, the researcher tried to reveal and ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 4 describe the factors considered as background behind the real problem. this has become the latest phenomenon in prisons, and through this research, researchers focus on the actual root causes that can be identified so that new findings in the form of halinar practices in prisons can be eliminated. research methodology this study aims to evaluate the implementation or implementation of the getting zero to halinar program (mobile phones, illegal fees and drugs) in the correctional institutions (lapas) of class 1 cipinang jakarta. as an evaluative study, the writer wants to improve and increase the benefits (worth) and quality (merit) of the implementation of the policy so that it can be an input for policy improvement in the future. specifically, this paper aims to answer the research questions that have been raised by comparing the standard (s) of legislation related to the getting zero to halinar program in penitentiary with implementation in the field or process (p) where the previous objective components can be elaborated as follows: (1) improving the legal foundation through the design of the getting zero to halinar program planning in penitentiary, especially in the correctional institutions (lapas) of class 1 cipinang jakarta; (2) improve the implementation of the working network (installation) of the getting zero to halinar program in the correctional institutions (lapas) of class 1 cipinang jakarta; (3) improving the performance of the program management and hr management related to the getting zero to halinar program in the correctional institutions (lapas) of class 1 cipinang jakarta; (4) improving product results or implementation of the getting zero to halinar program in the correctional institutions (lapas) of class 1 cipinang jakarta class 1 cipinang jakarta; (5) increase the benefits of the getting zero to halinar program in the correctional institutions (lapas) of class 1 cipinang jakarta. departing from these things, it is expected that later it can reveal the suitability (adequacy) and the gap (discrepancy) between the standards or regulations that have been set with the implementation of the getting zero to halinar program for prisons or detention, especially in dki jakarta, so that it can be analyzed to provide an assessment and recommendations for action recommendations from results concluded using a combination of quantitative and qualitative approaches. results and discussions indications of the continued use of mobile phones, extortion and narcotics abuse (halinar) in correctional institutions (lapas), imply the emergence of illegal fees (extortion) in correctional institutions and have always been a major problem in society the existence of extortion and misuse of narcotics in the use of mobile phones, implies the emergence of illegal fees (extortion) in correctional institutions and has always been a major problem in the community. situations and conditions that need to get a solution immediately given the availability of regulations or policies to eliminate this problem, including the program, "get zero for the halinar". the implementation of the getting zero to halinar program in penitentiary is only limited to guidance and has not been able to change the nature and attitude of officers who are immoral in fostering residents and the existence of the program has not had a positive impact in fostering prisoners. then, the legal basis for the anti -inar program in lapas which is an action program of the realization of the law of the republic of indonesia number 12 of 1995 concerning corrections and their derivative regulations, presidential instruction number 17 of 2011 concerning corruption prevention acts, presidential instruction numali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 5 ber 1 of 2013 concerning actions to prevent and eradicate corruption, law number 35 year 2009 concerning narcotics; and presidential regulation number 23 year 2010 concerning the national narcotics agency, and director general of correctional circular letter number: pas-54.pk.01.04.01 of 2013 concerning guidelines for correctional institutions, detention centers, and detention centers free from mobile, extortion and drugs ( halinar). according to wirawan (2011:7), evaluation as research to collect, analyze, and present useful information about the object of evaluation, evaluate it and compare it with the evaluation indicators and the results are used to make decisions about the object of evaluation. according to newcomer, horry & wholey (2009), evaluation of program implementation is a series of limited activities in one complex set of activities carried out by a series of public, non-profit, and private event providers to achieve certain outcomes or results (van marris & king, 2006 in a guide to planning and conducting program evaluation, 2009: 10) and has an established theoretical and practical foundation (guyadeen & seasons, 2016). thus, the evaluation of the implementation of the halinar program in lapas can be interpreted as a series of resources and activities directed at one or more common goals to achieve certain results as the implementation of actions to prevent the widespread use of cellular telecommunications equipment (hp), the occurrence of extortion (extortion) to trade drugs in prisons or detention centers. according to asnedi (2016: 24), lapas operational management is suspected to have 4 (four) major risk factors as a potential for internal conflicts between prisoners and officers / guards. the four major risk factors are: first, there are several factors that cause internal conflict in the state detention and detention center because detainees are not properly accommodated, there are guarantees of comfort and security for detainees, are treated with respect because of the dignity and values inherent as humans (united nations office on druggs and crime, 2015: 8). the situation and conditions at the state detention and detention center were further exacerbated by the lack of skills of the officers; secondly, prison / prison staff are not yet equipped with professional expertise to deal with detainees, are less careful and alert in dealing with detainees; third, another problem to consider is the lack of adequate equipment to handle prisons; and fourth, the potential risk of conflict will increase if the management of the factors contributing to the conflict is not managed both administratively and practically. the dynamics of life in prisons caused by staff shortages, detainees manage themselves, maintain prison facilities, run their own rehabilitation programs, and carry out many administrative tasks normally carried out by prison officials (jones, 2014: 59), then according to jones ( 2014), in prisons like this, 'multi-occupancy' type accommodations and other environmental conditions encourage the growth and development of gangs in prisons, which raises growing concerns about criminal gang members' criminal activities, both in correctional facilities, and also their outreach to community (winterdyk & ruddell, 2010: 730). on the other hand, prison managers are prohibited from discriminating against prisoners, employees or any public member based on race, sex, creed, or national origin, staff prohibitions and penalties (code of ethics the nevada department of corrections, http://doc.nv.gov/inmates/home/. october 7, 2019). situations and conditions of prison life like this also occur in indonesia. based on the writer's observation, the actual situation and conditions of prison life are generally influenced by the social structure and culture of the population in prison. in this case, the writer's findings are that there are still gangs or groups of people who tend to control other prisoners to carry out their daily activities in prison. this ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 6 view is in line with narag & jones (2016: 1-24) which states that prisoners' leaders tend to share government with prison administrators. then, narag & jones (2016: 1), stated that the current prison management model strictly prohibits prisoners from assisting prison administration and management and the government must be able to provide adequate resources, security, personnel, and good and clean prison governance. therefore, the implementation of good and clean prison governance is the organization of prisoners and must be arranged in such a way as to run perfectly, starting from interpersonal relations, warders, relationships with people outside the prison (rumadan, 2013; 265-266) because prisoners have the same rights to health and well-being as others (unodc, 2013: 15) so that prison authorities must respect the human rights and dignity of prisoners (american bar association aba, 2011: 16). meanwhile, to ensure good and clean governance, the implementation of the getting zero to halinar program in penitentiaries, the government has provided a regulatory basis regarding the internal control of prison institutions through: 1. regulation of the minister of law and human rights of the republic of indonesia number m.hh-01.pw.01.01 2011 concerning internal control of corrections institutions; and 2. regulation of the minister of law and human rights of the republic of indonesia number m.hh-07.kp.05.02 2012 concerning the code of ethics of civil servants in the ministry of law and human rights. however, the facts show that there is still a contradiction between the existence of the legal basis / existing legal norms and the application of these legal norms as evidenced by the increasing number of cases that have occurred and for example is the practice of extortion (extortion). often the practice of extortion is found in prisons, detainees pay guards for special privileges by giving bribes to officers so as to put officers at risk and can damage the reputation of the institution (ross, 2013: 110). according to mahfud et.al. (december 2014: 540) extortion practices have an impact on at least 3 (three) things, first: the authority of the officer so that it will affect the equality of services with the population and there is no respect for officers because everything can be resolved with money; second, it has an impact on program implementation and rehabilitation of occupants where residents who are supposed to be required to attend certain programs have lost their obligations because they can be replaced with money; and third, illegal payments can affect security and lead to riots, for example: certain residents do not give money to citizens' coordinators or because of the uneven distribution of illegal payments. then, other problems that occur in prisons and detention centers, namely the existence of drug trafficking in prisons or detention centers, and drugs are an increasingly prominent problem in many prisons (kolind & duke, 2016: 89). according to polomarkakis (2017: 397), law enforcement is used to reduce the adverse effects of drugs on humans and society at large (taylor, buchanan, and ares (2016: 2). however, the authors' findings realiat that drug trafficking in prisons tends to be an economic attraction prisoners will feel that they have the respect of fellow prisoners because they can import drugs that symbolize "courage", ambition and can have connections to organized drug networks outside of prison transparency and accountability are very important (carstens, 2005). (2019), official business transparency is carried out in such a way that substantive and procedural information is available to, and is widely understood by, people and groups in society, subject to reasonable limits protecting security and privacy, while the notion of accountability according to johnston ( 2019), a procedure that requires officials and those who are trying to win guide them to follow the ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 7 established rules, processes and results and ensure that they have followed the procedure. referring to this understanding, the authors found that, the concepts of accountability and transparency of public officials in lapas tend to have been reduced. as a result, officials often use the power of their discretion which hinders the goals and objectives of the program implementing the getting zero to halinar program in penitentiary. furthermore, if it is associated with human resource management (hrm), the getting zero to halinar program in penitentiary does not run optimally. hrm is important to be implemented correctly in productive organizations, obtaining and applying human resources effectively and efficiently (hamid, maheen, cheem & yaseen, 2017: 1; pasban & nojedeh, 2016: 250) and can directly contribute to improving performance achieve organizational goals. according to okoye & ezejiofor (2013, 250), the greatest asset of any organization is its human resources that can ensure the achievement of the goals and objectives of the organization. according to hasibuan (2011: 14), human resource management can be interpreted as the core of an organization, both public and non-public organizations to achieve goals that depend on policies and operations and systems that affect the behavior, attitudes, and performance of staff (rafiei, n., & davari, f., 2015: 35-36). these goals will be realized if each organization uses and empowers all its resources because one of the main objectives of human resource management is to improve organizational performance (paauwe, guest, wright, 2013 in vermeeren, steijn, tummers, lankhaar, poerstamper, & van beek, 2014:1; al adresi, & darun, 2017:2). thus, improving the quality of human resources is a fact that must be present and implemented in a planned, intensive, focused and affective, and efficient development process. according to schuler and jackson (1987); danny et al., (2008) in gill, & meyer (2011: 5), the suitability between human resource management (hrm) and business strategy is important because business strategy is closely related to hrm strategy. according to mwaniki & gathenya (2015: 433), hrm aims to increase the effectiveness and capability of an organization's organizational capacity to achieve its goals by utilizing the resources available to it ... according to ekwoaba, ikeije, okpara, & ufoma (2015: 22), one of the most significant development in the field of organization today is the increasingly important role of hrm for organizations because hrm offers perspectives, values and attributes for organizational life. therefore, attention to human resources or human capital as one of the main production factors for most organizations, including those in prisons, must be made a very strategic agenda in the "getting zero to halinar" action program in prison (lapas) besides several other factors such as: regulation, budget and technology. the objectives of the "getting zero to halinar" action program include realizing prison and state detention centers that are free from misuse of cell phones, illegal fees and drugs must be done by creating synchronization and harmonization in the movement and steps in implementing it. this research is based on the desire to illustrate how evaluating the implementation of the "getting zero to halinar" action program can provide true and real solutions as constructive solutions for the future. then, this research is considered very important because in addition to for the first time identifying the achievement of the halinar program carried out from 2013 to 2017, researchers tried to reveal and describe the factors that were considered as the background of the occurrence of this phenomenon in prison, so that new findings were available. the root of the real problem. ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 8 prison management can be interpreted as human management that is closely related to the ethical framework and behavior of individual prison staff to detainees, humane treatment to avoid abuse of power. so that the prison management process can run from top to bottom, including emphasizing management by prison authorities on the processes and procedures correct (coyle, 2009: 11-12). the realization of zero halinar is one of the conditions needed for the implementation of correctional vision and mission. on a national scale the success of correctional practices in realizing its vision and mission is part of the implementation of national legal policies in the criminal justice system that involve elements of the police, prosecutors and judiciary and is very and related to the hrm. according to al adresi, & darun (2017: 1), managers from all levels are involved in hrm practices for scanning internal and external environments, staffing and recruitment, strategy formulation, strategy implementation, and evaluation and control and are effectively managed so that they can be of great benefit to organizations (ekwoaba, ikeije, okpara, & ufoma, 2015: 22). therefore, the hrm approach can be used as a treatment to realize zero halinar as one of the conditions needed for the implementation of correctional vision and mission. according to truss (2001) in veth, korzilius, van der heijden, emans, & de lange (2017: 2), hrm is aimed at increasing individual welfare, productivity and overall company performance. in this case, there are very important and strategic elements in hrm to improve organizational performance (du plessis, douangphichit, & dodd, 2016: 12) and at the same time can improve overall organizational competitiveness as follows: 1. recruitment: this is an hr manager's job that requires a lot of attention and resources to attract, hire, and maintain employee retention rates. according to shih, chiang, hsu (2006) in hamid, maheen, cheem, & yaseen (2017: 2) that part of the human resource development framework is retaining and recruiting employees. 2. training and development: training and development can be provided by companies for both new employees and old employees with the aim of gaining knowledge and / or learning new skills for current or future work (collin, van der heijden, & lewis, 2012: 155) in their respective fields, and ensure that trained workers will be able to adapt to the changing needs of the times (jagannathana, rab and maclean, 2019: 4). 3. professional development: this is a very important function of human resource management (hrm) which aims to enrich and improve employee competence in terms of learning at work (collin, van der heijden, & lewis, 2012: 157) to be more capable . includes skills, education and experience as well as behavior modification and improvement of working techniques that are better. 4. compensation and benefits: companies can achieve their goals and objectives if they can adapt to new ways of providing benefits to employees such as: flexibility in working hours, long holidays, insurance / medical costs, leave and others; according to darwish (2013) & holbeche (2012) in du plessis, douangphichit, & dodd (2016: 13), hr functions such as job analysis, employee selection, training and development, compensation management and motivational schemes are integrated with plans or strategic objectives in in order to improve organizational performance standards. 5. performance appraisal: performance appraisal by supervisors is one of the most important human resource management practices (murphy & cleveland, 1995 in kampkötter, 2016: 2) where employees will be evaluated and assessed by leaders according to their performance including feedback, setting goals, and trainali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 9 ing, and reward / compensation systems (denisi & murphy, 2017: 421). 6. ensuring legal compliance :. ensuring legal compliance is carried out through compliance management which aims to detect, prevent crime and corporate mistakes (benedek, 2012: 136) in carrying out its business activities.. research instruments instrument box data collection is a systematic and standard procedure of obtaining the required data. the data collection process in this study includes three activities, namely getting a location, associating with a location and getting data collection (recording data). the main instrument of this research is the researchers themselves. according to creswell (2007: 107), in qualitative research, researchers are key instruments. the function of the researcher is to determine the focus of the study, choose the informant as the source of the data, analyze the data, interpret the data, and make conclusions on their findings. then, creswell (2012: 225-227) states that data collection is done by interview, observation and documentation (supporting techniques) to conduct interviews, it is recommended to use a special design protocol. protocol data recording is a form designed and used to record information during interviews and observations. the evaluation model used is the discrepancy evaluation model (dem) which emphasizes gaps in program implementation. according to winkel (2004: 538) and baumgartner & jackson (1995: 179), the discrepancy evaluation model (dem) includes: (1) to generate organizational motivation, (2) provide feedback to the organization, (3) provide feedback to managers , (4) 5 provides information to institutions which in this case are faculties, (5) provides information on successful and unsuccessful activities, and (6) provides accountability for the implementation of program activities. according to arifin, zainal (2012: 71), the provus model includes: design, program operation, interim products, and terminal products ". according to eko (2010: 186-187), the descrepancy evaluation model is an evaluation model by comparing what is expected (standard) with what is happening in the field (performance) so that it can be found gaps / inequalities (descrepancy) which then from these results can improvements were made. according to sutarto (2014: 4), the provus-discrepancy model is the easiest model to do because it only compares the results and standards that have been determined. thus, it can be described about the difference between the two, called discrepancy. figure.2: description of the discrepancy evaluation model ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 10 in this paper, the purpose of the discrepancy evaluation model (dem) is to find out about the level of conformity between the standards set in the program and the actual appearance of the program. standards, criteria that have been developed and established with effective results. appearance, including resources, procedures, management and tangible results that are seen when the program is implemented. then, to implement dem in this writing, an action program is prepared, a design as follows: table 1. instrument grid stage design evaluation a. program cooperation network tabel 2. grid of installation evaluation instrument (network) instruments ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 evaluation problems component indicator data collection techniques instrument data source 1 2 3 4 5 6 standard design criteria policy foundation program suitability of the legal basis on which the getting zero to halinar program is based – study of documents interviews primary and secondary documents -directorate general of corrections head of cipinang ia class correctional institution jakarta program program objectives to realize the goal of the getting zero to halinar interviews study of documents -interviews primary and secondary documents guidelines for interviews : directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta the target of the program the realization of prisons, detention centers and branches of detention centers that are clean from misuse of mobile phones, illegal levies and drugs study of documents primary and secondary documents directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta program strategy implementation of the getting zero to halinar program strategy study of documents primary and secondary documents directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta problems evaluating components indicators technical data collecinstruments data source 1 2 3 4 5 6 correlation of program implementation collaborative program activities conformity of cooperation with stakeholders related to the getting zero to halinar program -study of documents -interviews primary and secondary documents guidelines for interviews directorate general of corrections : head of cipinang ia class correctional institution jakarta police bnn kpk ministry of communication and information private program coordination the realization of coordination between stakeholders related to the getting zero to halinar program -study of documents -interviews primary and secondary documents guidelines for interviews directorate general of corrections : head of cipinang ia class correctional institution jakarta police bnn kpk ministry of communication and information private program evaluation monitoring of the getting zero to halinar program -study of document s interviews primary and secondary documents guidelines for interviews directorate general of corrections: head of cipinang ia class correctional institution jakarta police bnn kpk ministry of communication and information private 11 b. anti halinar program process tabel 3. error! no text of specified style in document. c. product implementation program tabel 4. instrument grid stage of product evaluation ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 problems evaluating components indicators technical data collection instruments data source 1 2 3 4 5 6 program implementation program description implementation of the getting zero to halinar program operating procedure interviews -study of documents primary and secondary documents guidelines : -directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta implementation of monitoring in the getting zero to halinar program -interview -study of documents primary and secondary documents guidelines : directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta the implementation of the quality assurance program getting zero to halinar -interview s study of documents primary and secondary documents guidelines : directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta problems evaluating components indicators technical data collection instruments data source 1 2 3 4 5 6 results from program implementation program results conformity of the implementation of activities with a decrease in the number of violations at the cipinang class ia correctional institution in jakarta -study of documents interviews primary and secondary documents interview guidelines : -directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta conformity of the implementation of activities with changes in the behavior of the target program (inmates) at the cipinang class ia correctional institution in jakarta -study of documents interviews primary and secondary documents -directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta conformity of implementation of activities with changes in behavior of technical implementation units (officers) cipinang ia class correctional institution jakarta -study of documents interviews primary and secondary documents -directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta conformity of the implementation of activities with the improvement of program support facilities at the cipinang class ia correctional institution in jakarta -study of documents interviews primary and secondary documents -directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta 12 d. program benefits tabel 5. instrument grid phase benefit evaluation based on the various descriptions above, it can be interpreted that the superiority of the discrepancy evaluation model (dem) is able to show the occurrence of discrepancies in a program from various aspects, including regulations and program benefits. the findings from the evaluation results are basic values that are important for the ongoing improvement of the program to be more efficient and effective in achieving program objectives. evaluate standard design criteria based on the variant of the answers obtained from the informant, a description is obtained that explains the evaluation context in the design aspects. from the aspect of legality in the elements of program design, there are no problems that become obstacles in the implementation of the anti-halinar program in lapas. the author gets the impression that the legal basis that has been used, although only in the form of circular issued by the directorate general of corrections, is still adequate. in the field findings also revealed the fact that the directorate general of corrections issued another circular which also supports the implementation of the anti-halinar program, namely through the directorate general of corrections circular letter number: pas126.pk.02.10.01 of 2019 concerning progressive steps and serious eradication efforts drugs in the state detention centers / branches of state detention centers, corrections institutions, and special child development institutions aim at correctional institutions throughout indonesia to follow the intended progressive steps. based on the circular, the author's opinion that the truth can already be used as a legal basis in preventing the abuse of cell phone use, extortion and drug use in prison. however, the findings of the research result are that there is a perception from other informants that efforts to improve the degree of legality hierarchy from circular letter: pas-54.pk.01.04.01 2013 concerning guidelines for correctional institutions, detention centers and free detention centers from mobile, extortion and narcotics (halinar) issued by the director general of corrections, for a basic legal hierarchy, it can be upgraded to a regulation of the minister of law and human rights of the republic of indonesia. in this context, according to the author after seeing the existing situations and conditions related to the implementation of the anti-halinar program, and improvement of the legal basis hierarchy that the pas-54.pk.01.04.01 2013 circular letter does not significantly influence the achievement of anti-halinar. ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 problems evaluating components indicators technical data collection instruments data source 1 2 3 4 5 6 benefits of the program program benefits for all components there was an increase in awareness of the importance of the program by referring to the reduction in the number of violations significantly and improvement of existing supporting facilities interviews -study of documents interview primary and secondary documents guidelines: directorate general of corrections head of cipinang ia class correctional institution jakarta cipinang class ia lapas officer jakarta 13 then, the findings are based on program objectives, situations and conditions on the ground that reflect aspects of legality or the level of the hierarchy of regulations that constitute the legal umbrella of the anti-halinar program. informant perceptions tend to look at other elements, such as facilities and infrastructure as well as human resources. this can be logically accepted if seen from the work experience of each informant in his daily life that is directly related to the correctional institution led by correctional institutions (wbp). the informant positions the legal basis available only as a reference to the regulations that must be carried out in prison settings, and as the norm governing actions that can be taken or actions that should not be taken. if the rules are broken, there will be logical consequences that must be faced in the form of sanctions which are also listed in the rules. according to the author, there are other factors that are more significant in supporting the achievement of the anti-halinar program objectives in prison. these factors are in compliance with the law which states that the elements must be met so that people submit to the contents of the regulations. in this case, obedience to the law can be interpreted as awareness of the usefulness of the law which gives birth to a form of compliance with legal values and must be upheld in living together and manifested in the form of behavior that is clearly in accordance with the values of the law itself, can be seen and felt by fellow community members. furthermore, based on information conveyed by informants it can be seen that if evaluated from the design aspect, rules must be made in accordance with the program's objectives, namely realizing prisons, detention centers and detention branches that are clean from cellphone abuse, extortion and drugs and realizing harmony in movement and prison measures, detention centers and detention branches in implementing the anti-glare program. in this case, according to several informants, especially officers, it is also known that there is an obligation for each upt to make or make upt a corruption free zone (wbk) and the clean presentation bureaucracy region (wbbm) so that officers are required to always provide the best services to the citizens of correctional institutions and the community so that these obligations actually correlate with the anti-halinar program. the same thing can be seen in the program targets that are expected to achieve the program targets, namely to create security and order at the correctional upt through the application of security unit functions including the application of wbp security and order, law enforcement, protection, protection, and services to the public with uphold human rights; and overcoming conditions of overcapacity in prisons which have the potential to cause security and vulnerability, as well as giving birth to illegal levies practices both from fellow wbp and from officers to wbp. however, according to several informants, there are still difficulties in implementing the strategy for the anti-halinar program. the problem is as follows: first, constrained by the small number of human resources, especially officers, who carry out the program due to excess capacity of the correctional institutions (lapas) of class 1 cipinang jakarta so that supervision is less than optimal. secondly, the lack of socialization of anti-halinar program objectives, targets and strategies to the officers and wbp, made the strategies implemented ineffective. third, the main factor of the non-maximum strategy of this program and there are still many wbp in the correctional institutions (lapas) of class 1 cipinang jakarta that do not yet have the awareness and compliance with the rules that have been made. problems like this are the cause and serve as a gap for officers to provide opportunities for wbp who are not aware of their obligations while in prison. ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 14 correlation evaluation of program implementation there are two views that come from informants' answers related to the correlation of the anti-halinar program implementation. the first view states that the implementation of a network of cooperation with institutions outside penitentiary, such as the indonesian national police, kodim 0505 east jakarta under korem 051 wijayakarta and the national narcotics agency (bnn) has been effective in accordance with the objectives of the anti-halinar program. ia cipinang lapas klas, cannot work alone, in trying to implement the anti-halinar program. prisons require real support from outside parties such as the indonesian national police, kodim in accordance with upt and bnn penitentiary areas as mentioned earlier. effective collaboration is seen and measured by conducting joint attacks, urine tests and rehabilitation for wbp conducted by bnn to detect drug users and their distribution in prison. with the kodim as the command of fostering and operating the territory of the indonesian armed forces (tni), the army has formed an agreement or readiness to anticipate security in the event of a disturbance in order and security. synergic cooperation that has been carried out with several parties has been going well. the implementation of other collaborative networks can also be seen from the collaboration between the directorate of security and order development, the directorate general of corrections, the ministry of law and human rights of the republic of indonesia with pt pasopati nusantara on enhancing integrated wartelsus telecommunications and information technology (i-wartesus) and integrated cctv video (ivideo cctv) at the headquarters of the directorate general of corrections, correctional division, and correctional upt throughout indonesia. based on observations and answers obtained from informants, there are 10 units of closed circuit television (hereinafter referred to as cctv). there are several informants' views regarding the existence and effectiveness of cctv operations in cipinang first class prison. installation of cctv carried out to improve prison is considered a futile effort. this is because the use and supervision carried out through cctv media is not optimal. cctv in prisons is considered ineffective in reducing violations committed by wbp because of the limited number of units and human resources managing technology. there are interesting things related to the collaboration that has been carried out by the correctional institutions (lapas) of class 1 cipinang jakarta with bnn. this condition is considered as a negative excess that is felt unilaterally, namely from correction. the context, when there are arrests of narcotics cases in prison. which appears to the public level through mass media coverage seems to be a claim of success from the national narcotics agency (bnn) because the perpetrators of the arrest and negative excesses were dropped on the prison where the incident took place. another problem that became a challenge for corrections was also when there were other institutions such as bnn that did not provide data and information related to drug networks involving wbp. there are concerns from bnn "leakage" of information so that data and information are only allowed for internal bnn. to overcome this problem, in the future it is necessary to set up a mechanism to build "mutual trust" between the national narcotics agency and penitentiary related to information about drug networks in penitentiary. penitentiaries pay close attention to data and information in the drug network for the effectiveness of the anti-halinar program and to improve security and order in prisons. the author understands the argument that is built in collaboration must lead to mutual benefit of each party (mutual benefit), it should not be a cooperation that is built then it only benefits one party. the argument was built using a moral and ethical approach. this understanding is useful to ensure the sustainability of cooperation in a ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 15 long time (sustainable corporation) in realizing the shared goals between the parties. while cooperation with the indonesian national police is relatively going well. this is by referring to standard operating procedures (sop) for correctional findings on violations of cell phone use, extortion and drug trafficking in the anti-halinar program that get different treatment. findings on the misuse of cellphones by wbp will be confiscated which will be destroyed or returned to the family. findings on the existence of cases of alleged extortion will be examined by wbp who are victims of extortion and will be given internal sanctions for employees and or lapas officers involved. the findings of drug cases must be reported to the authorities, in this case the indonesian national police. the strategic step that can be taken is to hold periodic meetings as a coordinating movement and joint activities with related parties in conducting joint activities to prevent and crack down on narcotics trafficking violations in prisons, especially the correctional institutions (lapas) of class 1 cipinang jakarta facilities. evaluating the implementation of program management judging from the implementation of the program there are several aspects of the authors' attention. first, from the aspect of implementing standard operating procedure (sop), the findings can be seen that the officer has carried out in accordance with the specified sop. however, the sop in question is the sop issued from general rules, namely the sop on management of disorders of order and security originating from the penitentiary law due to the unavailability of sop specifically to support the anti-halinar program. sop corrections for findings of cell phone violations, extortion and drugs are treated differently. findings of cell phone violations by wbp, officers are required to confiscate which will be destroyed or returned to the family. with regard to the findings of alleged extortion cases, there will be an examination of wbp who are victims of extortion as well as individual officers suspected of being involved in extortion. if convicted of extortion then the officer will be given internal sanctions in accordance with applicable regulations. the sanctions include demotion that must be dismissed with no respect. in the case of drug trafficking, the existing sop states that the officer must report to the authorities, in this case the republic of indonesia police, for further processing which will then be given a recommendation or follow up on the case from the police. another issue that arises is the real condition of the employee's competence and / or officials directly related to wbp who have not met the competencies with the criteria set out in the correctional services standards. in the future, a strategic step that must be taken is to conduct training for employees and / or officers to meet the intended competency criteria as this is an important part in achieving the objectives of the anti-halinar program. other aspects that make a significant contribution are leadership in the lapas environment, cultural patterns that exist in indonesian society are still patriarchal, leaders are positioned as role models who carry good positive values that are considered to guide behavior patterns. all employees and/or officers in prisons. this has become a very strategic focal point in the effort to achieve the objectives of the anti-halinar program, without good leadership, it is difficult for implementers under leadership to carry out their duties and functions as carried out in accordance with the mandate of the lapas law. the role of the leader as the activator of the organization has an important responsibility to manage prisons based on professionalism and hrm treatment approaches. the correctional institutions (lapas) of class 1 cipinang jakarta in the future has great challenges in building character and developing the quality of the competence of employees and / or lapas officers. the existence of an organization is strongly supported by the existence of three main pillars ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 16 in order to run well, one of which is the existence of quality human resources that can be assessed from three main aspects namely knowledge, abilities, and attitudes or behaviors. therefore, it is very important to realize that whether an organization develops or not is greatly influenced by the presence and concern for the quality of human resources in moving the organization. thus, the process of capacity building and character building for hr is an absolute thing to do. in this process, it can be done in various ways, both through education and training based on competence and fostering career patterns to improve hr performance. evaluation of program implementation results related to the aspects of the results of the anti-halinar program implementation, the authors found various variants of the answers from the informants. what's interesting is that the answer is influenced by the capacity of the informant's position in the context of implementing the anti-halinar program. internally the penitentiary stated that the achievement of the anti-halinar program in quantitative terms had reached 90%. while the penitentiary's external view states that the program was not successful, the authors can understand the difference that occurs in conditions reflected in the reality on the ground that the ideal claim can only be said that the anti-halinar program is successful if cellphone violations, extortion and circulation of clean drugs up to 100% does not occur in the lapas environment. this condition is confirmed by internal claims that objectively the anti-halinar program has not been 100% successful but it cannot be denied that the achievement has been realized even though it has not been 100%. an external view is that the anti-halinar program has not been successful due to the fact that there are still many cases of cellphones, extortion and drugs. in this case the author holds that in carrying out correctional tasks tend to foster a process of "exchange" of interests between wbp with employees and or officers who are not moral. caused by the operation of the "supply and demand" principle. the effectiveness of the anti-halinar program is doubtful by external views because it is influenced by the principles of supply and demand as described above. when cell phone use (as well as drugs) is prohibited, while it is an important requirement for the lives of wbp, what happens is clandestine behavior in various ways so that they can meet those needs. this negative process has the potential to involve employees and / or officials who have low integrity quality. the author sees objectively from the two views above, there is a background of conditions that are not ideal, namely the condition of excess wbp capacity compared to the capacity of cell space available to accommodate wbp in prison. it is not possible to achieve the objectives of the anti halinar program with very inadequate facilities and infrastructure where the in the correctional institutions (lapas) of class 1 cipinang jakarta capacity is currently occupied by 4177 people so there is an excess capacity of 375%. in addition to the ratio of lapas officers to the number of occupants as wbp, with a total of 200 officers having to oversee 4177 wbp, this condition will not be effective in carrying out the supervisory function. based on the needs of the number of officers with the number of wbp to be monitored, it is estimated that the ideal number is 1 officer who oversees 20 (twenty) wbp people. ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 17 figure.3: recapitulation of sudden inspections in the correctional institutions (lapas) of class 1 cipinang jakarta within 2013 july 2019 source: security and order section (kamtib) the correctional institutions (lapas) of class 1 cipinang jakarta the author suspects there are several factors that cause the high violation of cellphone findings in lapas. one of these factors is the inability of wartelsuspa as a means of communication needed by wbp to communicate with their families. on the other hand, weakness of supervision and search by the main door officer (p2u) team should be suspected of visits made by officials, officers and visits to wbp. the results of interviews with informants showed that officers were reluctant to conduct surveillance and search when faced with fellow the correctional institutions (lapas) officers and employees. this has created opportunities for cellphones to enter lapas. seeing this condition, it becomes a joint challenge to improve the integrity of employees and / or officers in carrying out their duties, especially in supervising and searching to ensure the entry of mobile phones in the lapas environment. there is an interesting thing related to the presence of cellphones in the correctional institutions (lapas) of class 1 cipinang jakarta environment where the wbp admitted that they got a cellphone from another wbp who had finished serving his sentence by compensating for some money. other information obtained indicates the smuggling of cellphones from visitors to give to wbp who are in prison. evaluate program benefits from the aspect of beneficiaries of the "getting zero to halinar" program, it can be seen from two parties, first, officials / officers / employees as prison administrators; and second, in the case of the lapas guide as lapas subject. internal parties claim that the benefits of the "getting zero to halinar" program are obtained in the form of security and order in daily life at lapas. as explained by the informant, by suppressing the use of mobile phones in correctional facilities could have an impact on the decline in drug trafficking in indonesia given that most drug trafficking in indonesia is still controlled by elements behind bars. unfortunately, there are no numerical data that refer to a decrease in drug distribution. in the case of guidance corrections, the benefits of their "getting zero to halinar" program are fulfilling their rights as citizens guidance guidance (wbp). however, they are still experiencing things related to extortion imposed on the fulfillment of the rights of criminal citizens, both from room facilities to ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 18 the right to get conditional exemption (pb), mandatory leave (cb) and free leave to go (cmb). external parties have more or less the same view where they feel that if the program is successful, the penal guidance rights are fulfilled, from the variant of answers in the field that the halinar program is beneficial for all parties. on the other hand, lapas, which is the task force's unit (uptunit pelaksana tugas) from the ministry of law and human rights, does not seem to be able to do much with the real conditions where in terms of building infrastructure alone is very limited and inversely proportional to incoming supplies so this seems to cause no there are effective filters in the criminal justice system. for this reason, a paradigm needs to be built that imprisonment by including perpetrators of crimes in the penitentiary as a last resort that must be done is not an initial choice. the paradigm of the police institution will imprison as many drug offenses as possible, the prosecutor's office will prosecute as many suspects as the perpetrators of drug offenses while the justice institution will impose a more dominant prison sentence. penitentiary has no other effort than to accept. it's time to make corrections from the criminal system in indonesia. conclusions the getting zero to halinar program is an action program run by the director general of corrections in an effort to uphold security and order in the context of realizing the correctional vision and mission. this program is part of the directorate general of corrections policies that are implemented in every upt prison and detention center. based on the evaluation of the getting zero to halinar program in general, this shows relatively effective results based on a qualitative study of interviews with informants. the relatively effective purpose qualitatively means that the achievements reflected in field data have not yet been fully stated in circular. however, existing achievements have led to the expected conditions. based on the components in the inequality evaluation model, the results of the study revealed the main findings as follows: first, circular of the director general number: pas-54.pk.01 of 2013 concerning penitentiary guidelines, drug free detention centers and prisons and narcotics branch offices (halinar) become the legal basis for program technical regulations. in addition to referring to several laws and regulations that are hierarchical in it. the legal basis used is considered adequate as a guideline, there are no strong arguments for making changes to the legal basis higher in the legal and regulatory hierarchy. second, cooperation with institutions outside of prison is a must to support the realization of program objectives. negative excess that appears allegedly occurs due to misunderstanding in carrying out the duties and functions of each party. on the other hand there are no periodic and ongoing evaluations that contribute to this condition. third, there is no specific sop related to program implementation because technically it has been accommodated through sop security and order. inequality was found, namely the ineffectiveness of spip (government internal control system) as a system that supports the achievement of program objectives. another thing that arises is the unavailability of role models that can be role models in prison settings. apart from that one of the main determinants is the integrity of each individual in the correctional environment as a soft skill that becomes the modality to ensure the achievement of program objectives. fourth, there are conflicting views about the results of program implementation. in addition, findings from the field show that behavior change is unfortunately not permanent. fifth, the condition of hr in prisons is actually aware of the importance of the program, unfortunately it is not followed by a permanent change ali, i. j., madhakomala, r., & yohana, c.. (2019). journal of business and behavioural entrepreneurship volume.3 nomor.2 2019 p (1-24)  evaluation of the implementation of the "getting zero to halinar (handphone, pungli, narkoba)" program in the correctional institutions of the class i cipinang jakarta.  https://doi.org/10.21009/jobbe.003.2.01 19 in behavior in accordance with the program's objectives. without denying the achievements obtained from the anti-halinar program, it cannot be denied that there is still a difference between the success measures built from the legal basis of the anti-halinar program's legal documents and reported field findings and from informant statements. this condition can be understood in a program evaluation because at the level of program implementation there are so many factors that affect the achievement of program goals ideally. recommendations some strategic steps that can be taken immediately by the stakeholders related to the management of penitentiary with the getting zero to halinar program are as follows: 1. improve integrity through internalizing the contents of the getting zero to halinar program for officials / employees / officers and wbp in each correctional institution / detention to the level of compliance, namely internalization and competency enhancement for human resources in the prison system including officials, employees and officers through education and training. 2. increasing mutual trust towards related institutions that function to reduce or eliminate the negative excesses of each party's sectoral ego. 3. regarding the implementation of quality assurance, what is more needed is the strengthening of spip in the correctional institutions (lapas) of class 1 cipinang jakarta through the correctional institution whose job is to ensure that the spip team mechanism at the correctional institution really does as it should. 4. periodic evaluation (2 years) and a follow-up plan for evaluation references american bar association – aba (2011). aba standards for criminal justice third edition treatment of prisoners. library of congress control number: 2011927487 isbn: 978-1-61632-8900, https://www.americanbar.org/content/ dam/aba/publications/criminal_justice_standards/treatment_of_prisoners.pdf. accessed 4 october 2019 a guide to planning and conducting program evaluation (may 2009). research administration and development supported by the michael smith foundation for health research, https://www.fraserhealth.ca/-/media/project/ fraserhealth/ fraserhealth/health professionals/research-and-evaluation-services/20170601 _guide_to_planning_conducting_program_evaluation.pdf? la=en&hash=2b8872111be43b9de9e413b8 e6e46094544e9987. diakses 3 october 2019 al adresi, a., & darun, m. r. 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