26 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java impact of education and health on the unemployment rate and economy of east java suyanto1), bambang purnomo2), rahmawati erma standsyah3) 1)faculty of economics and business university of dr. soetomo surabaya, indonesia e-mail: suyanto_fe@unitomo.ac.id 2)faculty of teacher education and educational sciences university of dr. soetomo surabaya, indonesia e-mail: bambang.purnomo@unitomo.ac.id 3)faculty of teacher education and educational sciences university of dr. soetomo surabaya, indonesia e-mail: rahmawati.erma@unitomo.ac.id submit : 22nd august 2019, revised : 25th august 2019, accepted :27th august 2019 abstract east java statistics indicate that the total population of east java province is increasing every year. the increase in the population is followed by an increase in social problems, including unemployment. the unemployment rate can affect the economy of the society. efforts must be made to reduce it by improving the quality of society through factors related to education and health. according to data from east java in 2017, east java’s education has a significant positive direct effect on the east java economy of 0.343%, while indirectly through unemployment has an insignificant effect increased by 0.0021%. in addition, health has no significant direct and indirect effect on the east java economy with coefficients of 0.078% and -0.0023%, respectively. keywords: east java, society economy, education, health, unemployment, sem pls i. introduction east java statistics indicate that the total population of east java province is increasing every year. the sharp increase over the past 7 years about 2 million more inhabitants[1], [2]. the increase was also followed by an increase in the new workforce, which shows that an increase in the population has resulted in an increase in the new labor force above employment so that the number of unemployed rose to 840,000[3]. it also affects the level of education and health of the people of east java. basic education data for 2017 in the province of east java indicate a position below 10% [4]. according to data from the 2017 statistics report for the east java, the population of east java over the age of 15 with a primary school education was only 30% [5]. infant mortality remains a challenge. out of 1,000 live births, 14 newborns die in the first month of life and 34 die before the age of five. most women can access childbirth services and 95% of births are attended by skilled birth attendants. however, reproductive health services still need to be improved, especially with regard to increased access to modern contraceptive methods [6]. in addition, east java’s economic growth, which reached 5.5% in the first quarter of 2018, represents a decrease compared to 27 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java the fourth quarter of 2017, which reached 5.7% [7]. the level of education and health of the population is a dominant factor that must be given priority to improve the quality of human resources. with a high level of education and health, people determine the capacity to absorb and manage sources of economic development, from technological elements to institutional elements. it is an effort to increase the level of well-being of the population, all from advanced economic activities[8]. in addition to indonesia, several foreign countries facing the same problems of economic development consider that the basic indicators of economic development are the level of unemployment and/or education [9]. unemployment can also be observed from several indicators such as education and health [10]. economic development research has been conducted on both indonesian data and other data related to foreign countries, including the strategy for poverty alleviation through local economic development in the era of decentralization [11] ; the effect of unemployment, economic growth and public spending on the human development districts / cities of central java province in 2007-2011 [8] and some constraints to poverty reduction in indonesia [12]. in europe, studies show the effect of education on unemployment and state income [13], the effect of education and health on unemployment [14], the effect of education, health and infrastructure on the labor force and poverty [15], as well as the increase in the labor force by optimizing education and unemployment [16]. so far, no research has been found on the economic improvements observed on the basis of education and health indicators with unemployment as an intermediate variable. sem pls will therefore quantitatively study the factors that influence the economic improvement of east java, based on the education and health variables, through the unemployment rate as an intermediate variable. it is hoped that this research shows that improving the education and health of the people of east java can reduce unemployment and increase the economy of the province of east java. ii.research methods a. research data source this research is a quantitative study using secondary data from the east java bps, resulting from the processing of data from the 2017 national socio-economic survey (susenas), the 2017 national labor force survey, projections for the east java population and east java health profile 2017 from east java health department sources. it was according to districts/cities up to 38 data. b. research variables the variable in this study uses 38 regencies/cities in east java in 2017, so this is cross-sectional data. with reference to [6], [18], [19]overall, the concepts / constructs used include four variables, namely: 1. education 2. health 3. unemployment rate 4. economic a measured variable is a latent variable, that is, a variable that can not be measured directly. it, therefore, requires measurable indicators. the analytical method used is the variant-based structural equation modeling approach, namely sem pls. sem pls has the advantage, compared to a covariantbased sem, of ignoring the initial assumptions of the process. the concept of constructing three latent variables and one manifest variable, as a whole, is as follows: 1. educational variables • school participation rate age group 16-18 years east java 2017 (percent) • literacy rate aged 10 years and over east java 2017 (percent) • highest level of education in east java in 2017 (percent) 2. health variable • percentage of east java population with health problems in 2017(percent) • percentage of young people in east java who have smoked tobacco in the last month of 2017(percent) • percentage of households with healthy and healthy living practices in east java in 2017(percent) 3. variable open unemployment rate for 2017 east java 4. economic variables • adhk grdp without east java oil and gas in 2017 rate (percent) • implicit adhk grdp without east java oil 28 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java and gas 2017 rate (percent) c. conceptual framework and hypothesis the conceptual framework of this study is the relationship between certain latent variables that want to be observed or measured by several indicators in the context of research conducted with the sem-pls approach or method. the hypothesis that forms the basis or the background of the conceptual framework used in this study is as follows. 1. education and health affect the unemployment rate 2. education, health, and unemployment have an influence on economic. 3. education and health influence the economy through unemployment as an intermediate variable. while the conceptual model used is as follows. fig. 1 the conceptual framework of research iii. result and discussion east java is one of the provinces of java with 38 regencies or cities and is the most populous province of java. before analyzing the influence model of the education and health variables on the economic variables, with the unemployment rate variable being used as an intermediate variable in east java, descriptive statistics were produced to show the characteristics of the data. the results of the descriptive statistics for the four variables of each indicator are as follows: table i descriptive statistics results 29 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java based on the descriptive data in table 1, which is then processed with smartpls software to determine the effect of endogenous variables on exogenous variables. in the sem analysis, there are 2 evaluation models, the inner model, and outer model an evaluation of the measurement model (outer model) by the loading factor is performed to determine the validity of the indicator which the measurement of latent variables, by examining the value of the reliability of the indicator, composite reliability, and convergent validity. while the evaluation of the structural model (innermodel) on sem-pls can be known from the value of r-square (r^2). theoretically explained that the value of r^2greater than 0.67 means that the contribution of exogenous variables to the endogenous is high, between 0.33 and 0.67, it then has a sufficient or moderate contribution and between 0.19 to 0.33,weak contribution. fig. 2 value of loading factor table 2 value of composite reliability, dan convergent validity the post-evaluation measurement model can then be continued by writing the model in the equation. the equation obtained as a function of the latent variables of the model is as follows: equation of outer model: education variables x_11= 0.822 education + δ_(x_11 ) x_12= 0.915 education + δ_(x_12 ) x_13= 0.947 education + δ_(x_13 ) (1) health variables x_21= 0.461 health + δ_(x_21 ) x_22= 0.708 health + δ_(x_22 ) x_23= -0.875 health + δ_(x_23 ) (2) economic variables y_21= 0.954 economic+ε_(y_11 ) y_22= 0.641 economic + ε_(y_22 ) (3) from equation (1) (3), it is known that each latent variable has a relationship with the indicator, with the exception of the latent health variable, where the indicator can not correctly measure the latent health variable. however, the largest contribution to the latent variable is the grdp (y_21) rate indicator with the trajectory coefficient of the latent variable of economic growth of 0.954, while the lowest contribution relates to the rate indicator. grdp implicit index (y_22) with a coefficient of 0.641.also to the latent variable of the economy. the hypothesis test is performed by examining the p-value relative to the significance level of the study (α). if the p-value is less than the significance level, reject h_0, which means significant parameters (latent exogenous has a significant influence on the endogenous latent) and besides that, if the pvalue is greater than the significance level than not to reject h_0, which means that the parameter is not significant (the exogenous latent has no significant effect on the endogenous latent). the results of the causality using smartpls software can be viewed as in the table below. 30 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java then write the structural model in the equation based on the results of the smartpls data processing in figure 2 is as follows: structural model: unemployment variables unemployment = 0.343 education-0.378 health + ζ_1 (4) economic variables economic =0.006 unemployment+0.678 education+0.078 health +ζ_2 (5) equation 4 shows that unemployment is proportional to the increase in education, as well as many unemployed people with formal education. the phenomenon is, therefore, being developed by many government programs of vocational training activities. while health is inversely proportional to unemployment, according to his theory that a healthy person can work well. whereas, according to equation 5, the increase in the economy is proportional to the increase in unemployment, which shows that the increase in the economy is not only affected by unemployment but can also be influenced by the consuming population of east java. economic improvement is also proportionate to education and health, the higher and healthier the population of east java, the higher the economy of east java. consistent with the assumptions discussed in this study, it can be argued that education has a direct and significant effect on the east java economy, but it will not have a significant effect if it is related to the unemployment rate. in addition, health has no significant effect, directly or indirectly, because of the unemployment rate in the east java economy. iv. conclusions education in east java has a significant positive effect on the unemployment rate and the economy of east java with a coefficient increased by 0.343% and 0.678%, respectively. the health of east java is not a significant negative effect with an increased coefficient of 0.378% on the east java unemployment rate and 0.078% on the east java economy. the unemployment rate in east java has a significant positive effect on the east java economy of 0.006%. east java education has a significant positive effect directly on the economic improvement of east java with a high growth coefficient compared indirectly with a very small coefficient increase of only 0.0021% due to the east java unemployment rate. but on the contrary, health has no significant positive effect. directly and without significant indirect negative effect on the economy of east java with a coefficient plus only 0.0023% references [1] bps jawa timur, indikator kesejahteraan rakyat provinsi jawa timur 2017. surabaya: bps provinsi jawa timur, 2017. [2] bps jawa timur, provinsi jawa timur dalam angka 2010. surabaya: bps provinsi jawa timur, 2010. [3] bps jawa timur, statistik pemuda provinsi jawa timur 2017. surabaya: bps provinsi jawa timur, 2017. [4] bps jawa timur, “laporan eksekutif pendidikan provinsi jawa timur 2017,” 2017. [5] z. effendi, “jenjang pendidikan di jatim masih rendah, ini kata khofifah,” detiknews. jan-2019. [6] dinkes jatim, profil kesehatan propinsi jawa timur 2017. surabaya, 2018. [7] j. t. bps, provinsi jawa timur dalam angka 2018. surabaya: bps provinsi jawa timur, 2018. [8] n. baeti, “pengaruh pengangguran, pertumbuhan ekonomi, dan pengeluaran pemerintah terhadap pembangunan manusia kabupaten/kota di provinsi jawa tengah tahun 2007-2011,” econ. dev. anal. j., vol. 2, no. 3, 2013. [9] v. snieska, g. valodkiene, a. daunoriene, and a. draksaite, “education and unemployment in european union economic cycles,” procedia soc. behav. sci., vol. 213, pp. 211–216, 2015. [10] z. pirim, w. a. owings, and l. s. kaplan, “the long-term impact of educational and health spending on unemployment rates,” vol. 7, pp. 49– 69, 2014. [11] s. suyanto, “strategi memerangi kemiskinan dengan pengembangan ekonomi lokal pada era desentralisasi,” j. el-ijtima, media komun. pengemb. masy. madani, vol. 8, no. 1, pp. 21–38, jan. 2007. [12] s. suyanto, “beberapa kendala dalam menanggulangi kemiskinan di indonesia,” j. huk. maksigama, vol. 10, no. 2, pp. 82–94, nov. 2007. [13] i. lavrinovicha, o. lavrinenko, and j. teivans-treinovskis, “influence of education on unem31 sinergi, volume 9 number 2 september 2019 suyanto 1), bambang purnomo 2), rahmawati erma standsyah 3) impact of education and health on the unemployment rate and economy of east java ployment rate and incomes of residents,” procedia soc. behav. sci., vol. 174, pp. 3824–3831, 2015. [14] s. k. r. van zon, s. a. reijneveld, c. f. mendes, and d. l. ute, “the impact of low education and poor health on unemployment varies by work life stage,” pp. 997–1006, 2017. [15] n. sulistyowati, “the effect of educational , health , infrastructure expenses on the workforce employment and poverty,” vol. 20, no. 3, 2013. [16] w. c. riddell, x. song, and w. c. riddell, “the impact of education on unemployment incidence the impact of education on unemployment incidence and re-employment success : evidence from the u . s . labour market,” no. 5572, 2011. [17] a. jonnadi, s. amar, and h. aimon, “analisis pertumbuhan ekonomi dan kemiskinan di indonesia,” j. kaji. ekon., vol. 1, no. 1, 2012. [18] f. amalia, “pengaruh pendidikan, pengangguran dan inflasi terhadap tingkat kemiskinan di kawasan timur indonesia (kti) periode 2001-2010,” j. ilm. econosains, vol. 10, no. 2, pp. 158–169, 2012. [19] nur baeti, “pengaruh pengangguran, pertumbuhan ekonomi, dan pengeluaran pemerintah terhadap pembangunan manusia kabupaten/kota di provinsi jawa tengah,” econ. dev. anal. j., vol. 2, no. 3, p. 94, 2013. [20] bps, statistik kesehatan provinsi jawa timur 2017. surabaya: bps, 2017. [21] bps jawa timur, laporan eksekutif keadaan angkatan kerja provinsi jawa timur 2017. surabaya: bps provinsi jawa timur, 2017. [22] bps jawa timur, produk domestik regional bruto kabupaten/kota di provinsi jawa timur menurut lapangan usaha 2013-2017. surabaya: bps provinsi jawa timur, 2018. 7abdul razzak hashmi faith marketing a theoretical article sinergi, volume 8 number 2 september 2018 faith marketing a theoretical article abdul razzak hashmi al baha university, kingdom of saudi arabia e-mail : drhashmisaar@hotmail.com submit : 25th july 2018 , revised : 6th september 2018 , accepted : 7th september 2018 abstract now a days in india there is a tremendous growth of those organizations which are connecting their consumable products with the religion. india is a country of multicultural, multifaith, a cluster of different customs, language etc. the purpose of this paper is to elucidate its reader in general and to the marketers and organizations as a whole on faith marketing. in a society overrun by commercial clutter, religion has become yet another product sold in the consumer market. faiths of all kinds must compete not only with each other, but with a uncountable of more enjoyable and more suitable leisure activities. the researcher tries to shows how religious branding has expanded over the past few decades in india to create a mixed world of commerce and faith where the holy becomes secular and the secular holy. organizations dealing in faith marketing are having a tremendous growth in few years. the paper is also an attempt to establish the theoretical demarcation of the term faith marketing. the term faith marketing has caused controversy. there are two streams: that of the theologians, on one hand and that of the marketers, on the other hand. marketers have their own view regarding the application of marketing into the faith sphere. the article tries to emphasise the necessity to adapt the religious organizations activities and the ways they must be presented to the society’s actual characteristics. this can be achieved by using appropriate marketing tools and methods; however, the particularities of religion must be taken into account in order not to alter its faith values. keywords: faith marketing, hinduism, christian, islam. i. introduction now a days in india there is a tremendous growth of those organizations which are connecting their consumable products with the religion. india is a country of multicultural, multifaith, a cluster of different customs, language etc. organizations dealing in faith marketing are having a tremendous growth in few a years. the term religious marketing has caused and is still causing controversy. religious marketing or faith marketing, which comes under the field of service marketing, namely non-profit marketing, emerged long after product marketing. we are entitled to believe that the earliness of the term is one of the reasons why light has not been turned upon this concept. in a society infested by moneymaking muddle, religion has become yet another merchandise sold in the consumer marketplace. faiths of all kinds must compete not only with each other, but with a countless of more amusing and more suitable leisure activities. religious branding has expanded rapidly over the past decades in india to create a combined world of commerce and faith where the holy becomes secular and the secular holy. some strappingly state that in the field of service marketing, particularly non-profit service marketing, people first experienced marketing and afterwards became aware of it and took it into consideration for theory. the term marketing was first mentioned in the ecclesiastic sphere by jay benson hamilton, in his paper empty churches and how to fill them (hamilton, 1879). ever since 1879, he presented the problems within churches and ways to counter them through marketing judgment. in india faith marketing has been around for thousands of years, in form of vendors selling their products in front of 8 abdul razzak hashmi faith marketing a theoretical article sinergi, volume 8 number 2 september 2018 religious places. it’s only now that faith marketing has caught the attention of big organizations. like the patanjali ayurved limited, international society for krishna consciousness (iskcon), dabur industries in form of miswak toothpaste, the halal products of the muslims organizations etc… why religious (faith) marketing has flourished in india there are two main reasons why religious marketing has infused our culture. first, millions of indians have been set free to choose their religion. the capability to choose has created the real open market for religion. yes, when the founding fathers of constitution chose not to force a specific religion on the country, they were endorsing the propagation of religious choices. however choice is no choice if the rest of society (and particularly your mother) makes you go to a specific religious institution. in addition to the abolition of familial pressure to attend religious services, there is no longer a social stigma attached to not attending church, temple or a dargah. second, in the last 20 years the level of broadcasting (especially news agencies) flood in general has reached a height never imagined. we now have digital cable, with the average home having the ability to receive more than 1600 channels, not to mention direct broadcast satellite with its capacity to deliver several hundred nationals channels to the home of anyone willing to pay for them. the internet has become a domestic item for many people and where this is not the case, people readily access cyberspace in their office or at their neighbourhood cybercafés. the media monster needs to be fed with content— all types of content. the simple fact that there is more media means that there is more religious media. these media houses have flared the religiousness in the average indian citizens. subject analysis faith marketing is a part of service marketing. service marketing numbers several fields, including non-profit marketing. faith marketing is included in this category. how is non-profit marketing different from classic marketing? there are a number of differences that evidently separate classic marketing from non-profit marketing; they are classified according to three standards: the economic standard, the legal standard and the social standard. the differences related to the economic standard refer to the specific features of non-profit marketing: in this case, we do not refer to material goods or financial services; the emphasis is laid on ideas, missions, causes and faith. the legal standard refers to the legal status of the organization and its responsibilities; in our case, the organization has a specific public or private status. the social character was cited in the last, but not least, whereas perhaps it is the most significant aspect: the aim is to satisfy the general interest, contrary to classic marketing, which is focused only on the particular interests. another specific element regarding non-profit marketing is exactly the way of measuring the results of the implementation of the marketing process. the pursued results usually regard the increase in the number of members, the retention and loyalty of the existing members, improving the organization’s image, collecting funds for numerous causes, raising aid within numerous programs, changing the attitudes towards different aspects, changing certain behavioural characteristics, raising the awareness regarding certain global, national, regional, local, problems, etc. non-profit organizations are divided into three categories, depending on the field of activity: • charitable, • specialised, • political. the aim of the first category is signified by charity acts and all the charitable actions from different sectors: health, education, culture, social work, church, temple or dargah etc. the professional organizations include leagues, clubs, foundations, associations, unions etc., and the political organizations include parties, lobbyist organizations, etc. according to adriana zait the marketing process within non-profit organizations (religious organizations in our case) includes 5 steps: 9abdul razzak hashmi faith marketing a theoretical article sinergi, volume 8 number 2 september 2018 1. the main step is identifying the goals, 2. placing the organization on the market, 3. 7p marketing mix 4. designing the marketing plan, implementing the marketing plan, 5. developing the message to be communicated; ( zaiț, 2004, p.230) in order to outline several differences between classic marketing and non-profit marketing, i will present the following parallel performed by adriana zaiţ regarding service marketing: table 1 parallel regarding service marketing source: zaiţ, a. marketingul serviciilor, editura sedcom libris , 2004, p.233 strâmbu presents the most common criticism regarding the implementation of religious marketing and provides answers (strâmbu-dima, 2008): 1. marketing wastes the money offered to god by the member parishioners 2. the marketing activity acts as an intrusion into the life of the individuals 3. marketing is manipulating 4. marketing militates against the spirit of leadership 5. marketing desacralizes religion 6. in romania, people are still interested in the religious message 7. larger churches have a greater need for communication 8. in marketing the win-lose principle is practised 9. customer orientation a little awareness of faith marketing organization: patanjali ayurved limited is an indian fmcg company. manufacturing units and headquarters are located in the industrial area of haridwar while the registered office is located at delhi. the company manufactures mineral and herbal products. it also has manufacturing units in nepal under the trademark nepal gramudhyog and imports majority of herbs in india from himalayas of nepal. according to clsa and hsbc, patanjali is the fastest growing fmcg company in india. it is valued at ₹30 billion (us$460 million) and some predict revenues of ₹5,000 crore (us$770 million) for the fiscal 2015–16. patanjali declared its annual turnover of the year 2016-17 to be estimated ₹10,216 crore (us$1.6 billion). baba ramdev has stated in his interview with cnnnews18 that profit from patanjali products goes to charity. the international society for krishna consciousness (iskcon), known colloquially as the hare krishna movement or hare krishnas, is a gaudiya vaishnava hindu religious organisation. iskcon was founded in 1966 in new york city by a. c. bhaktivedanta swami prabhupada who is worshipped by followers as guru and spiritual master. its core beliefs are based on select traditional scriptures, particularly the bhagavad-gītā and the śrīmad bhāgavatam. iskcon is a direct descendant of brahma-madhva-gaudiya vaishnava sampradaya. the appearance of the movement and its culture come from the gaudiya vaishnava tradition, which has had adherents in india since the late 15th century and american and european converts since the early 1900s in north america, and in england in the 1930s. in west virginia, the praphupada’s palace of gold, built to be a home for swami, is now a shrine for the founder, who died in 1977. iskcon was formed to spread the practice of bhakti yoga, in which those involved (bhaktas) dedicate their thoughts and actions towards pleasing the supreme lord, krishna. iskcon as of 2017 is a worldwide confederation of more than 850 temples and centres, including 60 farm communities, some aiming for self-sufficiency, 50 schools, and 90 restaurants. its most rapid expansions in membership as of 2007 have been within india 10 abdul razzak hashmi faith marketing a theoretical article sinergi, volume 8 number 2 september 2018 and, especially after the collapse of the soviet union, eastern europe. dabur (dabur india ltd. derived from daktar burman is india’s largest ayurvedic medicine & natural consumer products manufacturer. dabur demerged its pharma business in 2003 and hived it off into a separate company, dabur pharma ltd. german company fresenius se bought a 73.27% equity stake in dabur pharma in june 2008 at rs 76.50 a share. dabur’s healthcare division has over 260 products for treating a range of ailments and body conditions, from common cold to chronic paralysis. dabur international, a fully owned subsidiary of dabur india formerly held shares in the uae based weikfield international, which it sold in june 2012. dabour experts explain the power of dabur meswak meswak is a scientifically formulated herbal toothpaste with pure extract of the miswak plant ‘salvadora persica’, the famous ‘toothbrush tree’ used for centuries. the astringent and anti-bacterial properties of meswak help reduce tooth decay, fight plaque and prevent gum diseases. this product was launched keeping in site the religious affiliation of the hindus and the muslims both. in promotions campaigns they have tried to capture the ayurveda concepts for the hindus and the miswak concept for the muslims. ii.conclusions in the current conditions, in which society is in a continuous change worldwide and especially in india, but not necessarily in a good way, there are a series of particularities that must be taken into account when we establish our future steps. it is of vital importance to keep up with the modern society or more correctly, the postmodern o n e , a n d , i f we don’t know its characteristics, the results will definitely be disastrous. the world doesn’t wait for us, and the contemporary phenomena conquer our lives. the temple, dargah and the church must realise that there have appeared fundamental changes and it has the duty to try to acknowledge, discover and find a solution to them. stefan iloaie, in his book “christian morality and post-modern ethics”, page 14, sees the process of globalization as being “characterized by the universality of economic, social, cultural, social values, religious mutations and the speed of the exchange between value-nonvalue” (iloaie, 2009, p.14). the temples, dargah, churches and all those similar organizations dealing in faith marketing must quickly adapt to these changes and to try to counteract the negative effects that will surely come out. in the process of globalization, there are a lot of negative effects, affecting religion too and in what follows, i will mention only some of them: the relativity of faith, the disappearance of the feeling of belonging to an authentic religious tradition, syncretism, the relativity of spiritual values, individualisation, the increasingly less knowledge of reality and the interest in it, the ignoring of man’s spiritual problems, the issue of integrating the religious villagers in urban life, the ignoring of our conscience and its disappearance. in this process of globalization, man suffers from a disease that is inherent to the society we are living in: loneliness. man is alone because he is cornered from every angle, he focuses on the near future and necessity, he hasn’t developed a defence system against the economic and technical manipulations; therefore, due to the lack of religious values, he falls prey to his instincts, hedonism, aggressiveness and entertainment. if we consider faith, values are of utter importance and all these changes create a state of mystery around them, but the marketing organizations must act as quickly as possible and to use means that are adapted to the society we are living in; the industry of marketing can be very useful from this point of view. the mass-media presents and the people consume what they are being offered. we as marketers can easily manipulate, but we don’t create ourselves a defence system, a battlefield. marketing can act in different directions in religion. using religious marketing is a way to counteract some of the negative effects of progress with its own weapons. but it must be adapted to nowadays society and its characteristics; if not, some of them previously presented, the church, faith have no chance of winning this war. we are too easily manipulated and all the information around us is not helpful. after a period of restrictions, we got into too much freedom. not a real one, one misunderstood, one that limits and ties us up into a chain in which 11abdul razzak hashmi faith marketing a theoretical article sinergi, volume 8 number 2 september 2018 every ring means selfishness, hedonism, nihilism, relativism... the production is unrestricted, but the needs have also become unlimited. the expectations know no limit and so we have the tendency to bury ourselves in today, lonely and sad. our only chance is to identify moral values to respect and grow on a fertile soil. but we need help and the church is entitled to offer it to us. i would emphasize that it must be offered through modern methods because we are bombed by information, colours, images and the church has to use marketing as a tool adapted to our needs and characteristics. from this point of view, the theologians and marketers must work together. a marketer without solid religious knowledge will never be able to carry into effect an efficient marketing process, whilst a theologian without knowledge in marketing will share the same fate too. all that will be done from now on must respect the dogmas and the holy tradition. reference [1] angheluta, a. v., strâmbu-dima, a., zaharia, r. church marketing concept and utility. journal for the study of religions and ideologies, 8(22), 2009, 171. [2] cescon, b globalizarea – perspective spirituale şi teologice, biserica în era globalizării, ed. reîntregirea, alba iulia, 2003, [3] florescu, c. et. al., marketing – dicţionar explicativ, editura economică, 2003, bucuresti [4] hamilton, j.b. “empty churches and how to fill them”, new york phillips& hunt, 1879; [5] ifan d. h. sh. religious marketing: reflections from the other side of politics journal of public affairs, vol.4 , nr.3, 2004; [6] iloaie, st. morala creştină şi etica postmodernă o întâlnire necesară, presa universitară clujeană 2009; [7] momin, m. m., ph.d. (2014). the 2nd dubai international conference in higher education sustaining success through innovation by michigan state university in dubai (pp. 214222). brownwalker press [8] shepherd, i. d. religious marketing: reflections from the other side of politics. journal of public affairs, 4(3), 2004, 317s-341s. [9] stevens, r., loudon, d., wrenn, b., cole, h., “concise encyclopedia of church and religious organization marketing”, haworth reference press, new york, sua, 2006; [10] strambu-dima, a. “aplicativitate amarketingului in organizatiile religioase.” revista de marketing online (journal of online marketing) 2.1, 2008, 65-74; 1 sinergi, volume 9 number 2 september 2019 fibry jati nugroho1), steaven octavianus2), yusup rogo yuono3), dwi novita sari4) sangkakala theological seminary religious service paradigm in managing theological seminary it will be mentioned as sttis one form of higher education organization in indonesia. stt is under the auspices of the directorate general of christian education, but is also still connected with the ministry of higher education technology research (kemenristekdikti). this is because stt is one of the formal higher education organizations in indonesia. stt was built as a place to prepare prospective christian religious leaders, both pastors and religious teachers with legal diplomas. based on these objectives, stt has a different understanding and philosophy than other formal universities in indonesia. as in the above understanding, the meaning of an organization will influence the organizational culture of the organization. the understanding and philosophy of stt is the basis of the effect of the enactment of organizational culture in the university religious service paradigm in managing theological seminary fibry jati nugroho1), steaven octavianus 2), yusup rogo yuono 3), dwi novita sari 4) sangkakala theological seminary email : fibryjatinugroho@gmail.com submit : 14thfebruary 2019, revised : 25th september 2019, accepted :27th september 2019 abstract stt is one of the formal higher education organizations in indonesia which was built as a place to prepare prospective christian religious leaders, both pastors and religious teachers with legal diplomas. stt has a different understanding and philosophy than other formal universities in indonesia. based on this phenomenon, this research will show how the religious service paradigm affects organizational behaviour in indonesian’s theological seminary (stt). this research is designing only to map the phenomena that occur in the field, in this case how the service paradigm influences organizational behaviour in stt institutions through observation and interview. it is found that the service organizational culture in the stt environment has a significant influence on the performance of its employees. keywords: religious service paradigm, organizational culture, higher education management i. introduction every organization has its own culture in it. this organizational culture is a driving force that drives the organization. furthermore this organizational culture has an impact and influence on each individual in it (cameron & quinn, 2006). this also applies to educational organizations, because educational organizations are essentially an organization. as with other educational organizations the higher education organization must also have an organizational culture that moves it (indrajit & djokopranoto, 2006). each organization will have its own organizational culture in accordance with the philosophy it adheres to. the philosophy and ideology that is adhered to certainly is the basis of the formation of culture in educational organizations (usman, 2009). theological college -in indonesia called as stt (sekolah tinggi teologi), further more in this article 2 sinergi, volume 9 number 2 september 2019 fibry jati nugroho1), steaven octavianus2), yusup rogo yuono3), dwi novita sari4) sangkakala theological seminary religious service paradigm in managing theological seminary looking at its purpose as a forum for preparing christian religious leaders, stt has a basic understanding which is also certainly related to that idea. based on this, stt makes the religious paradigm in this case christianity the driving culture of its organization. the phenomena and reality that researchers have observed, stt has a paradigm of service to god that is in accordance with the christian faith as the basis for managing its organization. this paradigm becoming a basic idea for managing this organization, it is deemed appropriate to be implemented at stt in accordance with the aim of the institution to produce leaders of christianity in the community. the service paradigm that forms the basis of stt management is a differentiator key with other tertiary institutions. this difference paradigm will of course be a differentiator between public universities and stt in terms of the management of the organization and the organizational culture in it. as stated by cameron & quinn (2006) organizational culture can influence each individual in the organization. based on this phenomenon, a research question was revealed which underlies this research, namely: how does the service paradigm affect organizational behaviour in indonesian’s theological seminary (stt)? this research is expected to reveal how the service paradigm used by stt institutions in indonesia can influence individual organizational behaviour within it. so when it has been obtained how the influence will be designed according to the appropriate management model and can improve and develop service performance in the organization. important role as an organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders. the traditional view of marketing is that a firm makes something, and then sells it. the smart competitor must design and deliver offerings for well-defined target markets, and companies should see themselves as a value delivering process (kotler 2011). ii.research methods this study uses a qualitative approach, while the type is descriptive research. this research only looks at phenomena that occur in the field and only describes it (sugiyono, 2013). this research is designing only to map the phenomena that occur in the field, in this case how the service paradigm influences organizational behaviour in stt institutions. data collection techniques used were observation, interviews and documentation studies. observation is carried out by active participatory techniques, namely researchers as active participants in the organization. with this, researchers are expected to be able to collect as much and as detailed as possible the research material needed. whereas the interview technique used is semi-structured interviews with in-depth interview methods. through this technique the interview will be carried out in a semi-structured manner, so that researchers can dig deeper and broader information from the informants. the informants who will be interviewed are from stt leaders, stt lecturers, stt employees and stt students. that way it is expected to get various inputs both from the user’s view as external customers and employees as internal customers. the data analysis used is descriptive analysis, which only describes it. the data will first be displayed and then analysed to determine the extent of its effect. motivation is one of the driving forces for an individual to carry out his duties in any organization; motivation even determines one’s organizational behaviour (george & jones, 2012). looking at the notion of motivation as a driver in organizational life for individuals, it can be seen that motivation holds an important role related to one’s psychology in organizational behaviour. furthermore, george & jones (2012) states that one of the key elements possessed by motivation is a direction of behaviour. motivation can direct or determine a person’s behaviour in organization. based on his motivation, someone will decide to carry out an action within the organization. a study conducted by rose et al (2016) found that the character of an educational institution is a very important part of the success of the institution. speaking of character then what controls the character of an organization is of course the individuals in it. for the meaning of organization is a group of people in it. in the final results of his research, rose et al. (2016) stated that a higher education institution will succeed or not, it all depends on the organizers of the institution. what were meant by the organizers 3 sinergi, volume 9 number 2 september 2019 fibry jati nugroho1), steaven octavianus2), yusup rogo yuono3), dwi novita sari4) sangkakala theological seminary religious service paradigm in managing theological seminary in this case are the people who manage and become determinants of their attitude or behaviour. through the above explanation it was found that motivation contributes an important role in a person’s behaviour in the organization (george & jones, 2012). furthermore, based on his research, rose et al. (2016) found that the behaviour of individuals who run higher education organizations is a determining factor in the success of their organizations. when looking at it, it can be said that motivation has something to do with the organization. this can be seen simply from the following description: motivation driving motor organizational behaviour defining factor organizational success chart 1.1 although it does not have a direct connection, but when viewed from the chart above, indirect motivation has a role in the success of an organization. cultural value in organizational when talking about motivation, this cannot be separated from one element called value. values are often referred to as ethics (mclean, 2006), seeing in this regard the value is something that is held firmly and reflected in organizational behaviour in an organization. that way, every organizational behaviour is a result of the value held by the organization. the value held by each individual in the organization has a close relationship with the culture contained in the organization. culture in an organization develops very strongly based on values that have been held firmly by every individual in the organization (robbins & judge, 2014). this means that the value held by both individuals and organizations is a strong forming element for an organizational culture. if so, any value held firmly by each individual is the forerunner to the formation of the organization’s culture. good values of humanity, religion, politics, social and culture itself. so it is not surprising if the religious values or beliefs of individuals will influence or become the basis of the organization. iii. result and discussion in indonesia there are many religious organizations, ranging from religious community organizations to religious based education organizations. religiousbased education organizations are quite developed in indonesia. with the aim of educating adherents of the religion according to the prevailing religious norms, various religious-based schools were established, both those that were private (belonging to certain religious institutions) and also the state (governmentowned). this religion-based school was established both from the most basic level of education (even pre-school) to higher education. all religions have these educational institutions. likewise, christianity, one of the educational institutions under the auspices of the christian ministry of guidance of the christian community is the theology college (stt). although there are several stts that are under the ministry of higher education, most stts in indonesia are under the ministry of religion. stt in indonesia all goes by holding the christian values that are the basis of their organization. these christian values are the driving force for stt in its management system. one of the christian values that are characteristic of stt management is the value of service. the value or understanding of the service referred to here is service to god. this value is a description of the christian faith held by every member of stt. based on this value, every worker or academic community in stt makes their work as a service and not just ordinary work. like mclean’s (2006) explanation that the existing values are also ethics in the organization, this also applies to stt organizations. the value of service inherent in each individual in the stt is an ethic for them to organize and carry out their duties. in this study to obtain data on perceptions on the basis of service in the management of stt, interviews and observations were carried out. interviews were carried out on 7 different people consisting of different work backgrounds. the seven informants were leaders, staff and lecturers of stt from 4 different stts in indonesia. with the distribution area there are 2 stts in medan, north sumatra, and 2 stts from the central java region. interviews are 4 sinergi, volume 9 number 2 september 2019 fibry jati nugroho1), steaven octavianus2), yusup rogo yuono3), dwi novita sari4) sangkakala theological seminary religious service paradigm in managing theological seminary conducted with in-depth interview techniques in order to obtain in-depth data from perceptions held by informants on existing research problems. the observation was conducted by the researcher with direct observation and participative observation. to reduce subjectivity in this study the results of observations obtained were compared and confirmed against other informants through semi-structured interviews conducted. through interviews conducted by researchers towards leaders, stt staff and lecturers it was found that they have the same paradigm in carrying out their duties. this paradigm is a service paradigm in its work. the informants stated that they worked at stt by having the main motivation to serve god based on the belief in the christian faith. in fact, some lecturers are also willing to do work even though the fees obtained are not in accordance with the effort that was issued. this mind-set of service is a driving force for them. furthermore, in the interview conducted by the informants stated that this motivation motivated them to work in stt. but even though they have this motivation it is found that the existing work cannot be maximal and professional. because from several informants stated that for reasons of this service becomes a tolerance in carrying out their daily tasks. the workers in stt consider that what they do in stt is like social work that is not professional; as a result the work carried out tends to be far from the expected standard. as for an example the complaints from several education staff for the delay of some lecturers in collecting grades to school. when checked directly into the lecturer they consider teaching at stt as a casual job and additional services so that they don’t consider it to be the focus. based on direct observations, it was also found that some of the lecturers and staff working at stt were more concerned with outside work; in this case the church service was compared to the work at stt. for some parties this becomes a separate tolerance for what is done. if there is a discrepancy with the achievements, this service becomes the reason and justification for that. through the data obtained, it is found that the service organizational culture in the stt environment has a significant influence on the performance of its employees. although stt is also a higher education institution, but with this organizational culture, the existing management is of course also different from other universities. service-based management is a dilemma, but also a peculiarity of service in the scope of stt. furthermore, based on field findings, the stt leaders were also not 100% from pure academics. some leaders are mostly theological practitioners who are pastors or evangelists. of course the influence of leadership on the direction of the organization is also quite strong. as in his research (heuvel, 2016) found that no matter how a practitioner could lead a higher education organization, it still needed time for adjustments. through interview findings and observations, it is found that the service paradigm is a paradigm that drives stt organizations in their daily management. one positive thing that can be drawn is that all staff and lecturers have a spiritual motivation that moves them to work. this motivation makes the academics more possessive of existing institutions. as is known, this spiritual motivation encourages the civitas to continue to work even without the appropriate selfrespect. the impact obtained is also the practice of applying positive spiritual values in his work. the negative impact that is generated also exists through this paradigm. with service-based management, it is found that service management in stt has a less professional impression compared to other universities. for example, some employees, both lecturers and education staff, do not see the professionalism in their performance. they are inclined to assume that private matters which also have elements of ecclesiastical activity or service are more important than work in stt. the leadership element that comes from senior practitioners in the church is also one of the things that deserves attention. on the one hand when this senior leader can be an advisor or protector for its members. but on the other hand the negative is that many members do not dare to rebuke their superiors when they are wrong because of this element of seniority. from the results of interviews, it was also found that not only reprimanding, giving input to the leadership sometimes became a difficult task for members who were actually more junior. the members of the civitas were not afraid because of the threat of being fired, but because they were reluctant with seniority. as in the theory of cameron & quinn, (2006) leadership has an important element in organizational culture. 5 sinergi, volume 9 number 2 september 2019 fibry jati nugroho1), steaven octavianus2), yusup rogo yuono3), dwi novita sari4) sangkakala theological seminary religious service paradigm in managing theological seminary because the leader will organize the organization. this theory also applies in stt, where leaders hold the main control in running the organization. when leaders in stt have a service paradigm, this is what ultimately becomes the driving paradigm of stt organizations and service-based management. iv. conclusion based on the explanation above, it is found that management in stt institutions has a service base based on christian faith. this service base starts from the stt leadership and is supported by all academics at stt. meaningful management of education is a mix between the management of tertiary institutions according to the standards of the higher education but also based on services that are in accordance with the christian faith. this management has its own advantages and disadvantages. the advantage is that employees have a strong motivation in their work and do not really care about the returns from what they get. but on the other hand, employees tend to underestimate the work in stt by considering it as a side job and seem to be less professional in its management. like two sides of a coin that goes hand in hand, these advantages and disadvantages run and stick together. suggestion for stt leaders, it would be better to include elements of professional management as well as members of the organization. because the development of the world of higher education which also includes various quality policies implies that a university should have guaranteed quality and have excellent and professional services. this professionalism can be instilled by providing professional work and management paradigms to its members. although members do not think about the returns on their work, it would be better if it was also thought and given according to their work. for the appropriate yields will give a perception of the management of higher education institutions that are professional and in accordance with the quality standards of the higher education. this study only looks at the perception of service-based management but has not touched on management strategies that are in accordance with the needs of stt. in further research it will be better when an analysis of service-based management needs is carried out in stt. after that, a development strategy was developed for appropriate service-based stt management. references [1]cameron, k. s., & quinn, r. e. (2006). diagnosing and changing organizational culture. san fancisco: jossey-bass. [2]george, j. m., & jones, g. r. (2012). understanding and managing organizational behaviour. new jersey: pearson education, inc. [3]heuvel, s. m. (2016). terry sanford at duke university: a leadership efficacy model for nontraditional college presidents in adjusting to academic culture. journal of higher education management, 98-118. [4]indrajit, r. e., & djokopranoto, r. (2006). manajemen perguruan tinggi modern. yogyakarta: andi. [5]mclean, g. n. (2006). organizational development. san francisco: berrett-koehler publishers, inc. [6]robbins, s. p., & judge, t. a. (2014). essentials of organizational behaviour: twelfth edition. new jersey: pearson education, inc. [7]rose, k., miller, m. t., & kacirek, k. (2016). organizational citizenship behaviour in higher education: examining the relationship between behaviours and institutional performance. journal of higher education management 31, 14-27. [8]sugiyono. (2013). metode penelitian kuantitatif, kualitatif dan kombinasi (mixed methods). bandung: alfabeta. [9]usman, h. (2009). manajemen: teori, praktik dan riset pendidikan. jakarta: pt bumi aksara. sinergi, volume 1 0 number 1 maret 2020 46 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange analysis intellectual capital of corporate value at indonesia stock exchange eni wuryani faculty of economics, universitas negeri surabaya, surabaya, indonesia eniwuryani@unesa.ac.id submit : 04th august 2018, revised : 05th march 2020, accepted : 25th march 2020 abstract this study looks at the impact that intellectual capital has on firm interest. data collection methods of reporting data in financial reporting companies listed on the indonesian stock exchange from 2014 to 2016. data processed was 84 companies. analysis of research data using quantitative with linear regression. intellectual assets are estimated with the value added variable, the market interest assessed by tobins q. the consequence of this intellectual capital research is having an effect on the company's value. keywords: intellectual capital, corporate value, stock exchange, tobins q i. introduction meijerink and bondarouk (2018) resource management is a source of intellectual capital. intellectual money isn't just about on the value of human resource management services, but needs to increase knowledge and skills. intellectual capital is the resource, ability and competence that drives organizational efficiency and creates value. nuryaman (2015) intellectual capital have a positive impact on firm interest, the productivity has a positive impact on intellectual capital. romero et al. (2017) gender diversity is a mechanism of corporate governance which has a positive impact on the level of information disclosure of intellectual capital. lee and lin (2018) companies with young employees have better operating performance. overall, humans, processes and customers are the main dimensions which influence the industry in maintaining good performance and operations. performance evaluation of the company's accounting operations, and the establishment of established structure of management, will bring positive results for the quality of service and the company's operating efficiency. intellectual capital is an intangible asset, generated from three pillars: individual, institutional and consumer resources. kianto et al. (2018), defining that intellectual capital is calculated must review the basics of knowledge to increase the intensity of work knowledge, organisation, and the production of value. knowledge-based intellectual capital perspectives include multi-dimensional, human agency and behavior, contextuality, dynamics and temporality. bontis et.al. (2000) intellectual resources can be used to create richness. ic is a set of efficient knowledge. weiling and xin, (2017) firm value is positively correlated with information disclosure and company value. sajid and afza (2018) manager's opportunistic behavior towards managing the earnings would kill the company's value and manipulate reported accounting earnings. the opportunistic behavior of managers to manipulate profits negatively affects corporate governance and corporate value. research conducted by aida and rahmawati, (2015) shows the intellectual capital has a beneficial effect on firm interest, while research conducted by wergiyanto and nining, (2016) shows that intellectual capital has adverse effects on firm interest. aida and rahmawati, (2015) examined the impact of and disclosure of intellectual capital on corporate value: the effect of intervening corporate performance. the results of this study show positive effects of intellectual capital on corporate values indirectly through the mailto:eniwuryani@unesa.ac.id sinergi, volume 1 0 number 1 maret 2020 47 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange performance of the company as intermediary variable. sayyidah and saifi (2017) state that the results show that the intellectual capital exerts a significant influence on firm interest. wergiyanto and nining (2016) show that the research into intellectual capital have negative effects on firm interest. outreach of intellectual capital is a signal given by the company to shareholders. this is because intellectual capital disclosure will reflect how much human capital owned by the enterprise. the company's intellectual capital, the easier it will be for companies to achieve good financial performance using their human resources. managers are parties who know full information from within the company. if so, then the choice of giving incentives to managers on a scheduled basis and the components revealed in the financial statements will give a signal to the stock market (ross, 1977). in a competitive market equilibrium condition, the signal that emerges will bring up a conclusion that will later be used as a basis for investors' decision making on the stock market. the interest of the firm to study is calculated using the tobin's q formula. the tobin's q model is seen as providing the best knowledge. the research is based on the companies listed on the idx and included in lq45, because 45 are selected stocks that meet the criteria of having liquidity, high market capitalization, high trading frequency and high trade growth prospects and have a growth process and financial conditions good enough. with these criteria, the lq 45 group is a stock group of companies that are of interest and are the focus of investor attention. this condition is the main consideration for choosing shares in the lq 45 group to be the object of research a. intellectual capital the definition of intellectual capital is a community of acquired knowledge that are organizational attributes and contribute significantly to improving the position by adding value to competition interested parties (widarjo, 2011). psak no. 19 revised edition, written that non-monetary assets: intangible assets that do not have a form that is used to finance activities of the business where the assets are stored must have the nature, identification, control and economic benefits. psak no. 19 before the study, based on the presence of intangible assets divided into two categories: intangible assets whose life is restricted by certain circumstances, such as trademarks, copyrights, leases, restricted franchises, licenses and intangible assets of infinite useful life that can not be determined from the date of expiry, such as logos, proprietary processes and formulas, perpetual deductibles and goodwill. in psak 19 the definition of intangible assets is non-monetary assets that does not have a method used to finance the activities of the company where the assets are stored must have the nature, identification, control and economic benefits. intangible assets or resources are mentioned science, technology, development and implementation of new technologies or procedures, licenses, intellectual property rights, market knowledge and trademarks (including product names or brand names). definitions of intangible assets include: computer software, trademarks, copyrights, live photos, client lists, debt tenure rights, import quotas, deductibles, supplier relationships, customer relations, customer loyalty, promotion and market share protection. intellectual capital consists of several elements which can be used as a framework to execute their strategies for businesses. knowing intellectual capital components is expected to help companies build added value and improve competitiveness. woodcock and whithing, (2009) state that the portion of intellectual is made of three main components principal elements, namely internal capital, external capital, and human capital. the three elements are very closely related. the organization will pay attention to the three elements of intellectual capital, so they can be used to boost the company's performance and profitability. the business won't achieve its optimum intellectual efficiency if good corporate processes and procedures don't help its intellectual capital. effective cooperation between human capital and domestic capital should build productive external capital. the company pays attention to the external environment around it. by establishing a good cooperative relationship, it will enhance business cooperation that can sinergi, volume 1 0 number 1 maret 2020 48 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange provide benefits for all parties so as to boost the performance and reputation. b. the value of the company company value is a number that can be used to measure the amount that an organization has "level of interest" is seen from the point of view of several parties such as investors who associate the value of a company from its stock price (gultom et al., 2013). increasing the company's value is the same as increasing the stock price and that is what the owner wants, because the company's high value implies strong shareholder prosperity. a company's value will offer full shareholder satisfaction if its stock price increases, because shareholders can directly enjoy the profit from the sale of shares when the shareholders sell their shares. investors typically turn over management to professionals attaining high corporate worth. professionals are known as executives or commissars. an important concept for investors is enterprise value (ev), or also known as firm value, since measuring the business as a whole is a proxy for the market (fauzia and amanah 2016). the value of the company is the sum the prospective buyer is willing to pay if the company is sold. in the company's estimation there were elements of prediction, compensation, forecasts and judgment. there are several basic research principles, namely the value calculated for a given period of time, the value must be determined at a reasonable price, the determination shall not be affected by a specific group of buyers. in analysis the company's worth was calculated using tobin's q. ii. methodology methods of data collection with documentation of data in the listed as financial reporting companies on the indonesian stock exchange, 2014 to 2016. data processed by 84 companies. analysis of research data using quantitative with linear regression. in this analysis calculation of intellectual capital uses idea about added value which is calculated the differences between output and input (pulic, 1999). next, the vaict m formulation of calculations based on the pulic opinion: va is output-input vaca is va/ce vahu is va/hc stva is (va-hc)/va vahu is vaca + vahu + stva keterangan: vaict m is valus added intellectual capital va is value added vaca is value added capital coefficient vahu is value added human capital stva is structural capital value added output is total sales and income input is expenses and costs, other than expenses employee ce is capital employed hc is human capital the value creation cycle is calculated by the hc productivity, capital employed (ce), and structural capital (sc): 1. value added of capital employed (vaca) the definition of value added from employed capital (vaca) is a measure of va generated for one unit of physical capital. pulic (1999) claims that if 1 unit of the capital employed produces more returns than other units, then it is easier for the business to use the capital employed. 2. value added human capital (vahu) the definition value added human capital (vahu) represents the number of va generated using spent labor funds. the relationship between va and hc shows how hc can create value within the company. 3. structural capital value added (stva) the definition structural capital value added (stva) represents structural capital (sc) contribution to value development. stva measures the amount of sc required for the production of 1 va rupiah and is an indicator of sc's success in value creation. sc is not a discrete measure as hc is in the process of value creation. that is to say, the greater hc's contribution to value creation, in this respect, the smaller the sc contribution will be. pulic further said sc is va minus hc. the process of value creation is determined by the productivity of human capital (hc), working capital (ce), and systemic capital (sc). company value is a value that can be used to measure how much a company's "level of sinergi, volume 1 0 number 1 maret 2020 49 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange interest" is seen from the point of view of several parties such as investors who associate the value of a company from its stock price (gultom et al., 2013). the business value was evaluated using tobin's q in this analysis. formula of book value as follows: 𝑄 = (𝐸𝑀𝑉 + 𝐷) (𝐸𝐵𝑉 + 𝐷) where : q is company value emv or equity market value (emv = preis closure x number of outstanding shares) d is book value overall debt ebv is the gross book value of the properties iii. results and discussion table 1 descriptive statistics ---------------------------------------------------------------------------------------- information n minimum maximum mean std deviation ic 84 1,20 14.96 5,3601 2,61762 cv 84 0,60 18,64 2,4553 3,23912 --------------------------------------------------------------------------------------- in table 1 data were processed as many as 84 of the companies that went public in 2014-2016. tabel 2 anova --------------------------------------------------------------------------------------- model sum of squares df mean square f sig ---------------------------------------------------------------------------------------- regresion 38,188 1 38,188 5,902 0,017 1 regresion 530,522 82 6,470 total 568,709 83 a. dependent variable: ic b. predictors: (constant), cv table 3 coefficients ------------------------------------------------------------------------------------------ model unstandardized standardized t sig coefficients coefficients b std. error beta ---------------------------------------------------------------------------------------- (constant) 4,846 0,349 13,885 0,000 1 cv 0, 209 0, 086 0,259 2,429 0,017 -------------------------------------------------------------------------------------------------------------------------------------- a. dependent variable: ic intellectual capital affects firm desires positively, the results are based on the of linear regression. p interest yields a value of 0.017 less than 0.05. this result means that the greater the value of intellectual capital will have a greater influence on enterprise value. intellectual capital components which include employee competencies, internal structures and external relations should impact the corporate quality. employee competencies include all the capabilities, expertise, skills, knowledge and business performance of employees (human capital). some of the basic features that can be evaluated are educational courses, qualifications, knowledge, expertise, recruiting, mentoring, learning programs, human ability and personality. the "internal" framework of the organization including the expertise, abilities, knowledge, experience and business performance of the company (structural capital). an person may have a high level of intellectuality, but if the company has inadequate processes and procedures, it is difficult for intellectual capital to achieve optimum performance and capacity that is not optimally exploited. "external" relationships include consumers, suppliers and government (customer capital). intellectual capital is one of the variables that in the eyes of investors decides the high value of businesses. this is because intellectual capital is a corporate intelligence tool that businesses use to counter business competition. companies that have high knowledge assets can more easily overcome business competition, so that the enterprise value rises. intellectual capital consists of several components that can be used as a basis for the implementation of their business strategies. good management of human resources can enhance efficiency and effectiveness at work. the organization should use human capital and the importance of employee expertise to generate wealth for the company, so this can minimize work errors. competent, committed, creative and loyal employees can work efficiently, without wasting time or incurring unnecessary costs facilities and infrastructure owned by the company, such as databases, software, and organizational structures are expected to support the performance of all employees in order to be more optimal and able to provide added value for the firm in the eyes of investors. based on signaling theory, having high intellectual capital is expected to attract investors' attention because high intellectual capital will help companies build sinergi, volume 1 0 number 1 maret 2020 50 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange added value and improve competitiveness. the results of this study match the analysis carried out by nuryaman (2015), weiling and xin, (2017), aida and rahmawati (2015), fauzia and amanah (2016), sayyidah and saifi (2017). research says intellectual capital positively impacts firm worth. iv. conclusion intellectual capital has a positive impact in 2014-2016 on the valuation of the listed manufacturing companies in lq45. human capital represents the organization's collective capacity to produce the best solution, based on the knowledge that individuals in the enterprise possess. human capital will improve if the organization can leverage the expertise that its workers possess. structural capital is the capacity of an entity or corporation to fulfill the routine cycle and structure of the company that helps workplace efforts to achieve maximum intellectual efficiency and overall business results, such as: operating system of the company, the manufacturing process, the organizational culture, the management philosophy, and kinds of intellectual property owned by a company. relation capital is a harmonious partnership/association network owned by the company and its partners, both from reputable, and efficient suppliers, originating from the relationship between the company and the government and the society around it. relation capital can come from different sections outside the corporate environment which can add value to the organization. references connelly, j. t., p. limpaphayom, h. t. nguyen, and t. d. tran, 2017. “research in international business and finance a tale of two cities : economic development , corporate governance and fi rm value in vietnam,” research in international business and finance., vol. 42, no. april, pp. 102–123. fauzia, n., & amanah, l. 2016. "pengaruh intellectual capital , karakteristik perusahaan, dan corporate social responsibility terhadap nilai perusahaan". jurnal ilmu dan riset akuntansi. vol.5: hal. 1–22. gultom, r., wijaya, s. w., & agustina. 2013. "analisis faktor-faktor yang mempengaruhi nilai perusahaan pada perusahaan farmasi di bursa efek indonesia". jurnal wira ekonomi mikroskil. vol.3: pp. 51–60. kianto, a., p. ritala, m. vanhala, and h. hussinki, 2018. “critical perspectives on accounting reflections on the criteria for the sound measurement of intellectual capital : a knowledge-based perspective,” critical perspectives on accounting, xxx. lee, c. and c. lin, 2018. “the major determinants of in fl uencing the operating performance from the perspective of intellectual capital : evidence on cpa industry”, asia pacific management. review.xxx, 1-16. mo, j., l. zhu, and y. fan, 2012. “the impact of the eu ets on the corporate value of european electricity corporations,” energy, vol. 45, no. 1, pp. 3–11. nasir, m. sajid and t. afza, 2018. “does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value ? evidence from an emerging market,” future business journal., vol. 4, no. 1, pp. 139–156. nuryaman, 2015. “the influence of intellectual capital on the firm ’ s value with the financial performance as intervening variable,” procedia social and behavioral sciences vol. 211, no. september, pp. 292– 298. romero, f. tejedo, l. lima, and r. craig, 2017.“women directors and disclosure of intellectual capital information,” european research on management and business economics , vol. 23, no. 3, pp. 123–131. sayyidah, u., & saifi, m. 2017. "pengaruh intellectual capital terhadap nilai perusahaan variabel moderasi". jurnal administrasi bisnis. vol.46 (1): hal. 163–171. sinergi, volume 1 0 number 1 maret 2020 51 eni wuryani analysis intellectual capital of corporate value at indonesia stock exchange suda, h. and j. miyabe, “practitioners ’ efforts to communicate corporate values in,” public relations review., vol. 42, no. 2, pp. 369– 371, 2016. weiling, su, and fang xin i, 2017. the correlation research between voluntary information disclosure and corporate value of listed companies of internet of things, procedia computer science 112 (2017) 1692–1700. walasek, d., robert latas,2016.”intellectual capital within the project management," procedia engineering vol. 153, pp. 384– 391, 2016. references 1 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo i.a. nuh kartini1), dwi jayanthi syarief2) 1)2)university of 17 august 1945 surabaya, indonesia 1) e-mail : ida.ayu.aries@gmail.com 2) e-mail : dwijayayanthi@gmail.com submit : 30th july 2018 , revised : 7th september 2018 , accepted : 8th september 2018 abstract companies need to maintain and improve the quality of products derived by applying a good quality control, because quality is an important factor in improving satisfaction and loyalityas consumers, as well as pt. pg .gorontalo ; six sigma methods that have high discipline can help develop and deliver near-perfect products. the purpose of this study was to determine how the value of sigma pt .pg . gorontalo and what factors of product defects. in this analyzis , researchers took 3 months of data production and analyze the six sigma dmaic method. researchers examined / analyzed using a questionnaire and the report of production to help get the material of analyzis. from this research , it has been showed that the presence of defects of products in the production process ofpt. pg. gorontalo at 5.664, 72 dpmo. it is also known that the cause is the human factor , machines, methods, materials, and environment. based on these results , we can conclude that the value of sigma pt. pg. gorontalo is located at 4 to 4.5 sigma, the factor most dominant cause of disability is due to lack of proper vacuum pressure. keywords : quality , six sigma , and the cause of disability i. introduction in order to improve the quality of its production, the company undertook various steps with attention to various sides such as technology, management, raw materials and others. basically the success of a company is the acceptability of the company’s products is accompanied by high consumer satisfaction as well.therefore, quality control is needed by the company in order to maintain and improve the quality of products produced, because quality is an important factor in increasing customer satisfaction and loyality pande, et al (prayisno, 2009) six sigma is a way of measuring the process, the goal is near perfect, presented with 3,4 defect per million opportunities (dpmo), an approach to changing organizational culture, one of the methodologies in an effort to improve towards six sigma targets is dmaic (define, measure, analyze, improve, dan control)which provides a step in finding the problem, identifying the cause of the problem until finally finding a solution to fix it. as a step in using this dmaic method, it is necessary to describe the performance of a process, namely through process control chart (process control chart) and fishbone diagram. pt. pg. gorontalo is one of the companies producing sugar crystal and drops. crystal sugar is a sugar produced from sugarcane juice mixed with water imbibisi and other chemicals through several stages and processes so ready to be marketed or sold. while the drops are the remaining water from the sugar crystals after washing thick sap with chemicals. pt. pg. gorontalo implements high quality standards in its production activities. to produce a quality 2 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo product, various production planning and production system is done with high technology and also need to be done high supervision also so that the quality of the sugar is maintained and defective product not reaches the hands of consumers.however, after 3 months of observation before the start of the study, there has been an increase in the number of product defects.this is the background of the analysis of the results of sugar production at pt. pg. gorontalo to prevent the increase in the number of defective products. the study of amalia nurullah, lisye fitria, r. dayari adianto (2014) gives results from where the sigma value changes by 0.185, dpmo change of 15742.926 and copq change by 30%. the change of number in this research shows that dmaic stage can give better suggestion in improving yarn quality20s. the research of shabrina rahma permatasari, nasir widha setyanto, l. tri wijaya nata kusuma (2013) gives result that dmaic analysis, got 5 ctq (critical to quality) that is cracked, broken, gopel, burnt and porous. setting optimal levels of taguchi experiments, 8 hours of drying time, 9 hours of combustion time, clay composition: sand (80%: 20%) and milling 3 times. by using the optimum level setting, the sigma level value increases at each ctq, a decrease in the percentage of defects from 11.96% to 6.88%, and the qlf value decreases from the actual condition. anupama prashar (2014) gave results that after defining, measuring and analyzing stages, it was found that the use of extreme tolerances and cross-fitment of the root cushion causes failure of the cooling fan assembly. a recommendation made in the most important period is to improve the phase to design a suitable software bearing against the increased cross-fitment of the pads and to obtain a hydraulic jig with an electronic jig instead of a manual jig. the value in carrying out recommending this solution deviates from the truth for the assurance of continuity of inr lacs 34 per year. because it is a chronic problem, the company estimates this to be a recurring savings. based on this background then the main problems in this study are: (1) what is the value of sigma at pt. pg. gorontalo? and (2) what is the most dominant factor causing disability in production? research methods population and sample the population in this study are all products produced from the sugar production process for 1 year. while the sample in this research is the result of sugar production on for 3 months variabel dan operasional variable 1. process control measurements on a continuous scale and are the most sensitive measure to identify the causes of reduced sugar quality. generally, the quality criteria of sugar (gkp) that we follow include water content, polarization, color solution, crystal color, so2 content, conductivity ash and large grain types. in particular, the quality control of sugar in this study is the process of controlling the large type of sugar grains at pt. pg. gorontalo 2. six sigma six sigma is a calculation to classify companies to a certain level to improve the quality of sugar production 3. product defects the product is said to be defective if the point on the control process graph is outside the ucl and lcl limits, so there is a need for follow-up to reduce the number of defects in sugar production process analysis method statistical quality control.to know the process deviation that occurs through xbar-r chart ii. results and discussion define sugar size is an important component in the production of sugar so that the resulting size will determine the quality of sugar production. based on the identification of the problem done before, it was identified that the size of the sugar produced was not in accordance with the company standard so that the main cause of the product is said to be defective. measure at this stage performed performance calculations of dpmo (defect per million opportunities) and converted into sigma level. the calculations performed are as follows: d (amount of defect) = 1.123,5 u (number of units) = 198.333 o (number of opportunities) = 1 (1 production per 3 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo day) dpmo = ? dpmo = (d / (u x o)) x 1,000,000 dpmo = (1.123,5 / (198.333 x 1)) x 1,000,000 = 0.005664715 = 5.664, 72 dpmo from the calculation can be seen that the dpmo value is equal to 5.664, 72 so obtained sigma value between 4 sigma 4.5 sigma. analyze at this stage the product defect analysis is performed by making a control map for the production of sugar. from r chart and x chart can be seen graph of defect of production result and how development of stability of production result. 1) r chart uclr = d4r-bar = 1,541 x 2,88 = 4,44 cl = r-bar = 86,5/30 = 2,88 lclr = d3r-bar = 0.459 x 2.88 = 1,32 graph r bar chart in experimental subgroups 7, 17, and 21 there has been a production defect for the range of sugar products where r mean number17 has values below the lcl r bar chart and r mean numbers 7 and 21 have values above the ucl r bar so it can be concluded that there were 3 defects in production of 30 trials indicated by the mean r being outside the boundary of the r bar chart. 2) x chart uclx = x-doublebar + a2r-bar = 12,48 +(0.153 x 2,88) = 12,92 cl = x-doublebar = 374,50 / 30 = 12,48 lclx = x-doublebar – a2r-bar = 12.48 (0.153 x 2.88) = 12,04 graphx bar chart in experimental subgroups 5, 17, and 26 there has been a production defect for the average yield of sugar production where x mean number 17 has a value below the lcl x bar chart and x mean numbers 5 and 26 have values above the ucl x bar finished it can be concluded that there were 3 defects in production of 30 trials indicated by the x value of the mean being outside the x bar bar chart. 3) fishbone diagram after the analysis of product defects, then will be discussed the cause of the unstable parameters. therefore, fishbone diagram is formed or causeeffect diagram which is a diagram that serves to identify the causes of the problem that occurs in this case is the instability of sugar production process. here is a fishbone diagram that maps the cause of the disability of the sugar production. causes are categorized by 4 m 1 l or human, methods, machine, material, and environment. 4 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo a) man it is a resource that is strong enough but lacks awareness of tasks and responsibilities, this is what makes human resources into one part that often became a significant constraint. pt. pg. gorontalo enforces a policy of training when employees are recruited and no followup the next day, this policy that causes less trained and underprivileged workers. employee saturation due to the monotonous work cycle and lack of supervision on employee performance during the production process affect the employee one of them decreasing the level of discipline in carrying out production activities that will affect the resulting product. b) work method / process pt. pg. gorontalo has a standard written work procedure to minimize errors and damage. however in practice, employees often do not follow established procedures, such as employees are not careful in giving the composition of water on the sugar so that the sugar becomes mixed by water and water content is too high. in addition, sometimes the cooking time also exceeds the company’s specified standards resulting in a product defect c) raw material decreasing the level of raw materials becomes an obstacle because the storage process is too long from the age of raw materials come to enter the production process, the next obstacle where the storage of raw materials that exceed the standard capacity makes the age of raw materials to be shorter, this problem leads from the process of supervision minimal on every human resources in charge so that the quality of raw materials is not maintained or experiencing damage d) machinery and equipment pt. pg. gorontalo has a decrease in the maintenance process of the machine periodically, this resulted in many production process failures and make system errors. basically pt. pg. gorontalo already has a fairly clear sop, but the field application is less adhered e) environment irregular air cycle makes the environment of pt. pg. gorontalo become hot so disturbing the production process, the volume of engine noise is too high it should be able to be responded by the management so as not to mengganggu production process 4) failure mode and effect analysis (fmea) fmea is a procedure used to identify and prevent potential consequences that can be generated from the causes and failure modes that occur. fea is formed to provide recommendations for failures that have occurred so that later can be done an improvement so that the results obtained can be in accordance with the desired. through fmea also can know the biggest failure mode in process that can be caused so that in the end can be more attention in process of its quality improvement. based on the identification of factors through the diagram fishbone penyebab, then fmea made to know the causes of potential stability of production. here fmea is formed to find the biggest potential cause that can arise from process instability and recommendations that can be given to the value of stable production. table rpn from the following fmea table it can be seen that the potential cause with the highest rpn value is 278,256. the value of rpn owned comes from pressure, so it can be said that the most influential factor in the production especially the size of sugar is the pressure vacuum. 5 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo improve at this stage, will be planned improvements in the production process to improve quality. the method used is 5 w 1 h. metode ini dibuat untuk memperjelas pelaksanaan rekomendasi yang akan dilakukan yang mencakup tujuan rekomendasi, orang-orang yang melakukan rekomendasi, kapan rekomendasi akan dilakukan, dan lain-lain. melalui pertanyaan what, why, where, when, who, dan how. based on the recommendation from fmea and the making of 5w 1h, there are three recommendations proposed in order to achieve stability of production result by improving the quality of process stability, that is: a. make a checklist sheet, to ensure the operator performs the procedures that should be done b. add standard sugar production information followed on work order c. giving response of sugar production to operators so that operators know the results of work that he has done and can be a meaningful input for the next production process. control next at this stage, documentation is made for matters relating to the proposed recommendations for continuous quality improvement a. create checklist sheet with new concept, including for machine check and quality of human resources b. designing a communication flow diagram between production managers and operators c. make a report of the production of sugar to be evaluated periodically. iii. conclusions and suggestions from the discussion, it can be concluded that pt. pg. gorontal has a sigma value between 4 sigma up to 4.5 sigma. this is evidenced from the dpmo value of 5,664.72 and the control chart r bar has a upper limit (ucl) of 4.44 and the lower limit (lcl) of 1.32 with three times the point indicating the existence of a product defect. it is proved that r mean numbers 7, 17, and 21 have a production defect for the range of sugar products where r mean number 17 has values below the lcl r bar chart and r mean numbers 7 and 21 have values above the ucl r bar so it can be concluded that there is 3 times the production defect of 30 experiments shown by the mean value r being outside the boundary of the r bar chart. while for the x bar control chart has the upper limit (ucl) of 12.92 and the lower limit (lcl) of 12.04 with three dots indicating a product defect. it is proven that x number 5, 17, and 26 have a production defect for the average yield of sugar production where x mean no 17 has a value below the lcl x bar chart and x mean no 5 and 26 has a value above the ucl x bar so it can be concluded that there is 3 times the production defect of 30 experiments indicated by the x value of the mean being outside the bar x bar. based on the fishbone diagram, it is known there are several factors causing product defect, that is human factor, work method / process, raw material, machine and equipment, and environment. from the fmea method, it can be known to bring the highest rpn value of 278,256 which is owned by the pressure factor, so it can be concluded that the most dominant factor causing disability in sugar production is the lack of proper vacuum pressure. as for suggestions that can be given to pt. pg. gorontalo, namely: (1) the supervision and selection of sugarcane raw materials should be further improved so as to minimize defects in the production, (2) it is necessary to supervise the operators so that the operator works carefully and maximally; (3) needs skill training on the operator and employees others who directly work in the field during the production process to avoid lack of machine information. references [1] anonim. goesth dan davis.1994. http:// carapedia.com/pengertian_definisi_kualitas_ info2173.html. di aksestanggal 15 oktober 2014 [2] anonim. philip kotler. http://.shvoong.com/ busines-management/technology-operationsmanagement/2071971-sejarah-sigma/diakses pada tanggal 15 oktober 2014 [3] ariani, dorothea w. 2004. pengendalian kualita sstatistik (pendekatan kuantitatif dalam manajemen kualitas). yogyakarta: penerbit andi. [4] daryanto, sidik.2009. usulan perbaikan kualitas produk dudukan magnet dengan 6 sinergi, volume 8 number 2 september 2018 i.a. nuh kartini1), dwi jayanthi syarief2) quality control analysis with six sigma-dmaic method in effort reduce number of sugar products at pt. pg. gorontalo metode enam sigma. di akses pada tanggal 20 oktober 2014 [5] gaspersz, vincent. 2001. total quality management. jakarta : pt. gramediapustaka utama. [6] gaspersz, vincent. 2002. pedoman implementasi six sigma terintegrasi dengan iso : 2000, mbnqa, dan haccp. jakarta : pt. gramedia pustaka utama. [7] muis, saludin. 2011. metode 6 sigma (menciptakan kualitas produk kelas dunia). yogyakarta : grahailmu. [8] nasution, arman hakim. 2006. manajemen industri. yogyakarta :penerbit andi [9] nurullah, amalia ( institut teknologi nasional bandung) ; fitria, lisye; adianto, hari (2014), perbaikan kualitas benang 20s dengan menggunakan penerapan metode six sigmadmaic di pt. supratex. reka integra vol 2, no 1 (2014): edisi kelima. publisher: reka integra [10] shabrina rahma permatasari, nasir widha setyanto, l. tri wijaya nata kusuma (2013), penerapan metode six sigma dengan pendekatan metode taguchi untuk menurunkan produk cacat (studikasus : sentra industri genteng tanah liat desa pacar peluk, kecamatan megaluh, kabupaten jombang) implementation of six sigma method with taguchi method approach to reducing product defects(a case study in the industrial centers of pacarpeluk clay tile, megaluh, jombang) [11] anupama prashar, (2014) “adoption of six sigma dmaic to reduce cost of poor quality”, international journal of productivity and performance management, vol. 63 issue: 1, pp.103-126, https://doi.org/10.1108/ ijppm-01-2013-0018 [12] heizer, jay & barry render (2011). manajemen operasi. edisi sembilan. buku dua. diterjemahkan oleh chriswan sungkono. jakarta: salemba empat [13] heizer, jay & barry render (2010). manajemen operasi. edisi ketujuh buku 1. jakarta: salemba empat 11 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya 1)muhammad anang firmansyah, 2)didin fatihudin faculty of economics and business, muhammadiyah university,surabaya-indonesia email : anangfirmansyah.61@gmail.com dienafdloka@gmail.com submit : 01st november 2018, revised : 12th march 2019, accepted : 20th march 2019 abstract packaging is one way to promote a product, attracting consumers to buy a product. in order for the packaging to perform its functions properly, the model view proposed by terence a. view here includes visibility, information, emotional appeal and workability variables. the purpose of this research is first to analyze the influence of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) on consumer purchasing decision (y) of fruit flavored drinks product in surabaya. data obtained from 100 respondents who were sampled by filling questionnaire. based on the analysis of multiple regretion known that the independent variables have a direct positive influence with the dependent variable. furthermore the result of data analysis obtained value r2 equal to 0,71. this can be interpreted that 71% of variables dependent variables are influenced by independent variables. while the rest (29%) is influenced by other variables outside the model. hypothesis test results both partial and simultaneous shows the analysis results that view model consisting of variables visibility (x1), information (x2), emotional appeal (x3) and workability (x4) have a significant influence both partially and simultaneously on consumer purchasing decision (y) of fruit flavored drinks product in surabaya. keywords: product packaging view model, purchase decision. i. introduction making the right product for the consumer needs to be supported by the consumer knowledge of the product to be purchased and also the convenience that will be felt by the consumer when enjoying the product. the technology that has grown rapidly has obviously helped in creating new products that fit the modern age. display product is very influential in attracting consumers to buy an item and consumers can simply buy goods that look interesting without knowing what goods it bought it. therefore, in advertising an item must be clear, because the display of the product is a “representative” of the products that inform the product to consumers. packaging materials are also very important role. sometimes packaging is what attracts consumers so that consumers come to the decision to buy the product in question. the developments occurring in the packaging industry certainly do not escape the use of science and technology appropriate in producing a packaging. one of the current packaging developments can be seen from the number of packaging made to make convenience for the consumer (convenience). for example, there has been a lot of packaging from cosmetic products that stand (can be disclosed) so that the product can be placed in every place. for bottle-shaped packaging, currently available pump sprayer that can be directly used. in addition to technological developments, the development of fast food also affects packaging. with the fast food that is usually not free from the use of 12 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya microwave, then made a pack that can be entered into the microwave. in the development of the packaging of course there are things that must be considered, among others, must know the target consumer company, consumer motivation in buying a product and the cost of provision for packaging materials. it should be remembered that good packaging is a packaging that can customize packaging with its function because packaging is one way to promote products, attract consumers to buy a product. in addition to targeted packaging improvements, display from supermarkets also affects purchases. research says 70% of purchases occur when consumers see their packaging. so in other words we have to create an eyecatching packaging for consumers because the packaging plays a role in the purchase in just 0.5 seconds. this means that in a very short time the packaging must be able to deliver the message to consumers clearly. in order for the packaging to perform its functions properly, the model view proposed by shimp (2014) is very helpful to consumers in purchasing decisions of a product. view here includes visibility, information, emotional appeal and workability variables. visibility, related to the ability of a packaging to draw attention to purchasing points. it aims to have prominent packaging from the others on the shelf, so that it can help the brand image. information, relating to the use of the product, the various benefits that are presented and additional information presented on or in the packaging. emotional appeal, packaging ability to induce feelings of want or mood support.awaken certain feelings (elegance, prestige, joy, pleasure, nostalgia, etc.) through the use of colors, shapes, materials and more. last workability, referring to the functionality of packaging is more than just a way of communicating. some of the workability issues are quite prominent, including: whether the packaging protects the content of the product, whether the packaging facilitates the ease of storing goods for both consumers and retailers, whether the packaging facilitates the work of consumers in accessing and using the product, whether the packaging protects the retailers against accidental damage to the hoop consumers from theft and whether the packaging is environmentally friendly. thus it can be said that packaging as one of the spearhead of marketing is not just a wrapper, but part of the consumer touching point that communicates the positioning and differentiation of the product and is able to create impulse buying. in the present, packaging is a potential marketing tool. good packaging design can create consumer comfort value and producer promotion value. based on the above matters, the research conducted sampling on fruit flavored drinks product consumer in surabaya by asking questions about fruit flavored drinks product packaging that influence consumer purchasing decision seen through view model consisting of visibility, information, emotional appeal and workability variables. 2. literature review packaging is a creative design that links form, structure, material, color, image, typography and design elements with product information to make the product marketable. packaging is used to wrap, protect, send, remove, store, identify and distinguish a product of batik (firmansyah & mahardhika, 2015). according to kotler & keller (2009), packaging is the activity of designing and producing container or wrap as a product. packaging is the activity of designing and producing packaging or wrapping for the product. usually the main function of the packaging is to keep the product. however, packaging now becomes a quite important factor as a marketing tool (rangkuti, 2014). well-designed packaging can build brand equity and drive sales. packaging is the first part of the product that buyers face and is able to attract or get rid of buyers. packaging a product is usually done by the manufacturer to be able to seize consumer interest in purchasing goods. manufacturers strive to give a good impression on the packaging of their products and create new packaging models that are different from other manufacturers that produce similar products in the same market.(simamora,2010) packaging as one of the cornerstones of marketing is not just a pack, but part of the consumer touching point that communicates the positioning and differentiation of the product and is able to create impulse buying. in the present, packaging is a potential marketing tool. good packaging design can create consumer comfort value and promoter’s promotional value (kotler, 13 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya 2010). according shimp (2010) in order that the packaging can perform its function well in the sense until the consumer purchase decision, the packaging must contain the following: 1. visibility. visibility is related to the ability of a pack to draw attention to point-purchase. the goal is to have a package that is stand out from the other on the shelf, until he cuts the brand image. packaging-packaging brightly colored, especially effective to gain consumer attention. 2. information. information relates to instructions on product utilization, various the so-called advantages, slogans, and additional information presented on or in the packaging. the goal is to provide the type and quantity of information precisely without stuffing the packaging with excessive and disturbing information the main information or even the appearance of packaging. 3. emotional appeal. emotional appeal is concerned with ability packaging to create feelings of want or mood support. packaging for some brands with no real emotional content, and emphasis in addition to information about the contents, while packaging other brands emphasize emotional content and contains very little information. 4. workability .workability refers to the function of a packaging is more than just a way of communicating. workability, of course, is relative problems. the goal is to design a package as much as possible workable for the economic side of retailers and consumers. emotional appeal dominate for some products, information is the most important thing for other products, while visibility and workability are generally important for the entire product. changes to a package should also be done carefully. some specific packing changes involve complex decisions, drastic actions and high risk costs. cost is an important consideration in packaging (nitisemito, 2012). the development of effective packaging for a product can cost enormous and takes a long time. companies should be able to compare packaging costs with consumer perceptions of the added value of the packaging. in addition, the packaging must also consider the role of packaging to achieve the target marketing company. buying decision is one of the main components of consumer behavior. consumer purchasing decisions are the step by step that consumers use when buying goods and services (marwan, 2013). purchasing decision is a problem solving approach on human activities to buy a good or service in fulfilling the desire and needs consisting of the recognition of needs and wants, information search, evaluation of alternative purchases, purchasing decisions and behavior after purchase (swastha, 2012). consumer behavior can be interpreted as an individual activities directly involved and use goods and services, including in the process of decision-making on the preparation and implementation of activities.consumer behavior will determine the decision-making process in their purchase. the process is a problem-solving approach consisting of several stages. the whole process is not always done by consumers in the purchase. in general, consumers will be easier to take decisions in repeated purchase or purchase of a continuous nature of the same product. the stages in the purchase decision process can be described in a model as below (kotler & amstrong, 2010). according to schiffman and kanuk (2009), the purchase decision is the choice of two or more alternative purchasing decision choices, meaning that one can make decisions, there must be several alternative options. the decision to buy can lead to how the process of decision-making is done. consumer purchasing decisions are influenced by consumer behavior. 3. statement of the problem based on the background described, formulations of the problem are as follows: 1. does the product packaging (visibility) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya? 2. does the product packaging (information) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya? 3. does the product packaging (emotional appeal) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya? 4. does the product packaging (workability) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya? 14 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya 4. objective of the study based on the background of the study and the formulation of the problem which has been described previously, the objectives to be achieved in this study are as follows: 1. testing and analyzing whether the product packaging (visibility) significant effect on consumer purchasing decision of fruit flavored drinks product in surabaya? 2. testing and analyzing whether the product packaging (information) significant effect on consumer purchasing decision of fruit flavored drinks product in surabaya? 3. testing and analyzing whether the product packaging (emotional appeal) significantly affects consumer purchasing decisions of fruit flavored drinks product in surabaya? 4. testing and analyzing whether the product packaging (workability) significant effect on consumer purchasing decision of fruit flavored drinks product in surabaya? 5. hypotheses based on the problem formulation proposed, theoretical foundation, framework of thinking process and the proposed conceptual framework, research hypotheses are formulated as follows: 1. the product packaging (visibility) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya 2. the product packaging (information) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya 3. the product packaging (emotional appeal) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya? 4. the product packaging (workability) significantly affect the consumer purchasing decision of fruit flavored drinks product in surabaya. 6. research method data obtained from research with 100 respondents then analyzed by using technical analysis as follows: 1. multiple regression analysis this analysis is used to know the influence of independent variable used in this research, that is product packaging function based on view model consist of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) to purchasing decision consumers on fruit flavored drinks product in surabaya. formula : y = a + b1x1 + b2x2 + b3x3 + b4x4 + e 2. determination coefficient analysis (r2) 3. hypothesis testing partial hypothesis test with t-test simultaneous hypothesis test with f-test conceptual framework 15 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya 7. results and discussions from the data estimation, it is known that the constant value (α) = 7,685, the value of regression visibility coefficient (x1) = 0,675, information (x2) = 0,619, emotional appeal (x3) = 0,739 and workability (x4) = 0,587. based on the calculation of regression analysis, the value of constant (α) = 7,685, coefficient of regression visibility (x1) = 0,675, information (x2) = 0,619, emotional appeal (x3) = 0,739 and workability (x4) = 0,587. the regression equation means: a. the purchase decision (y) = 7,685 means that if the variable visibility (x1), information (x2), emotional appeal (x3) and workability (x4) does not exist then the value of product purchase decision (y) is fixed at 7.685. thus, it can be seen that consumer purchasing decision (y) on cigarette product in surabaya is not only influenced by visibility (x1), information (x2), emotional appeal (x3) and workability (x4) only but other variables influence it. b. the visibility coefficient (x1) = 0.675 and is positive. this means that if there is an increase in the value of consumer responses on the variable visibility (x1) of one unit while the variable information (x2), emotional appeal (x3) and workability (x4) fixed then consumer purchasing decisions (y) consumers on fruit flavored drinks product in surabaya increased 0.675. c. the coefficient of information (x2) = 0.619 and marked positive. this means that if there is an increase in the value of consumer responses on the variable information (x2) for one unit while the visibility (x1), emotional appeal (x3) and workability (x4) variables, then consumer based on table 2 it is known that the magnitude of the coefficient of determination or r2 is 0.710 or 71 percent. so it is said that 71% variation of the dependent variable that is consumer purchase decision (y) variable on fruit flavored drinks product in surabaya can be explained by free variable that is visibilty variable (x1), information (x2), emotional appeal (x3) and workability (x4). while the rest (29%) is influenced by other variables outside the model under study. purchasing decisions (y) on fruit flavored drinks product in surabaya increased by 0.619 d. coefficient of emotional appeal (x3) = 0,739 and marked positive. this means that if there is an increase in the value of consumer responses on the variable of emotional appeal (x3) of one unit while the visibility (x1), information (x2) and workability (x4) variables remain, then the decision of purchasing (y) consumers on fruit flavored drinks product in surabaya increased 0.739. e. workability coefficient (x4) = 0.587 and positive sign. this means that if there is an increase in the value of consumer responses to the variable workability (x4) for one unit while the visibility (x1), information (x2) and emotional appeal (x3) variables remain, the consumer purchasing decision (y) on fruit flavored drinks product in surabaya has increased by 0.587. 16 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya using level of significant α = 95% in the twotailed table, with n = 100 and and df-k = 96, the value of t-table = 1.67. based on partial hypothesis test with t-test is known all variables have t-count greater than t-table = 1.67 and all variables have p-value smaller than 0.05. therefore, the ho1 hypothesis is rejected and this is accepted because it is proven that the product packaging function based on the view model consisting of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) variables partially significant effect on purchasing decision (y) consumers of fruit flavored drinks product in surabaya. the result of f-test shows that independent variables together have significant effect on dependent variable because it has p-value = 0,00 <level of significance which is determined equal to 0,05 and value f-count = 192,855> f-table = 5,675 . based on these results, it can be said that the ho2 hypothesis is rejected and ha2 is accepted, so the hypothesis which sounds is supposed to be product packaging function based on view model consisting of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) simultaneously significant effect on consumer purchasing decisions (y) of fruit flavored drinks product in surabaya proved true. 8. conclusion some conclusions that can be drawn from the results of research that has been done is as follows: 1. regression equation: y = 7,685 + 0,675 x1 + 0,619 x2 + 0,739 x3 + 0,587 x4 + e constant value (α) = 7,685, regression coefficient value of independent variable in the form of visibility (x1) = 0,675, information (x2) = 0,619, emotional appeal (x3) = 0,739 and workability (x4) = 0,587. all values of free variable coefficients are positive. thus it can be said that the four independent variables have a direct effect on the change of dependent variable that is consumer purchasing decision (y) of fruit flavored drinks product in surabaya. the higher or better the customer response to the independent variables the higher their loyalty. 2. 2the magnitude of the coefficient of determination or r2 of 0.710 or 71 percent. so it is said that 71% variation of the dependent variable that is consumer purchasing decision (y) variable of fruit flavored drinks product in surabaya can be explained by free variable that is visibilty variable (x1), information (x2), emotional appeal (x3) and workability (x4). while the rest (29%) is influenced by other variables outside the model under study. 3. 2partial test of hypothesis with t-test is known all variables have t-count value greater than t-table = 1.67 and all variables have p-value smaller than 0.05. therefore, the ho1 hypothesis is rejected and ha1 is accepted because it is proven that the product packaging function based on the view model consisting of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) variables partially significant effect of fruit flavored drinks product in surabaya. 4. the f-test results show that independent variables together have significant effect on the dependent variable because it has p-value = 0.00 <level of significance determined at 0.05 and f-count = 192.855> f-table = 5.675. based on this result, it can be said that the ho2 hypothesis is rejected and ha2 is accepted, so the hypothesis which sounds is supposed to be product packaging function based on view model consisting of visibility (x1), information (x2), emotional appeal (x3) and workability (x4) simultaneously significant effect on consumer purchasing decisions (y) of fruit flavored drinks product in surabaya proved true. 17 sinergi, volume 9 number 1 march 2019 muhammad anang firmansyah1), didin fatihudin2) product packaging analysis using view model on consumer purchasing decision of fruit flavored drinks product in surabaya references [1] arikunto. 2006. metode penelitian suatu tujuan praktek. penerbit rineka cipta. jakarta [2] djarwanto & subagyo, 2012, statistik induktif, edisi keempat, bpfe universitas gadjah mada, yogyakarta. [3] firmansyah, m. a., & mahardhika, b. w., 2015. pengaruh strategi marketing mix (produk, harga, promosi dan distribusi) terhadap keputusan pembelian konsumen batik di surabaya. jurnal balance, 12(02). [4] kotler, phillip., 2010, manajemen pemasaran (terj), edisi ketiga, jilid i dan ii, penerbit erlangga, jakarta. [5] kotler, philip, amstrong, garry 2010, priciple of marketing, ninth edition, prenticehall, inc. upper saddle river, new jersey. [6] kotler, philip & keller, jonathan, 2009, marketing insight : experiential marketing, marketing management, pearson education, inc. upper, saddle river, new jersey [7] marwan asri., 2013, marketing, edisi kedua, amp.ykpn, yogyakarta. [8] masri singarimbun, 2010, metode penelitian survey, edisi revisi, liberty, yogyakarta. [9] nitisemito, alex., 2012, manajemen pemasaran, edisi kedua, cetakan keempat, penerbit ghalia, jakarta. [10] rangkuti, freddy, 2014, the power of brands, pt. gramedia pustaka utama, j jakarta [11] schiffman, leon g. & kanuk, leslie l., 2009, consumer behavior (9th edition), prentice hall inc. upper saddle river, new jersey. [12] simamora, 2010, aura merek (7) langkah membangun merek yang kuat, pt. gramedia pustaka utama, jakarta [13] shimp 2014. komunikasi pemasaran terpadu dalam periklanan dan promosi. jakarta: salemba empat [14] shimp, 2010, experiential marketing, magazine management, vol.1, united kingdom [15] swastha, 2012, manajemen pemasaran modern, edisi kedua, cetakan keempat, liberty, yogyakarta [16] tjiptono, f, 2000, “strategi pemasaran”, penerbit andi offset, yogyakarta. [17] zainal mustafa,2012, pengantar statistik terapan untuk ekonomi, uii, yogyakarta. 28 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management community involvement for surabaya’s public transport management 1)mega primatama building and urban design in development, the bartlett development planning unit, university college london, united kingdom e-mail: mega.primatama.16@alumni.ucl.ac.uk submit : 26th february 2019, revised : 01st march 2019, accepted : 10th march 2019 abstract this paper will examine the correlation between theories and researches on community involvement with the planning for surabaya’s public transport network. this departs from the idea of including affected community to join in the planning and designing process and one of the decision maker, rather than just a passive consumer, using researches related to participatory development on urban design practices. this paper will start from the idea of engaging communities in urban planning and development process to create a more resilient community and look for its examples in the city of surabaya, indonesia. afterwards, this paper will observe the importance of effective and efficient transport management and the conditions of surabaya’s recent transit network and the efforts to improve it by implementing reports on rail-based transport. these two aspects, community involvement and provision of new public transport system then merged. the expected results are that the development of urban areas should be taking into account its surrounding neighbourhood, district, or corridor. in the end, this paper will generally recommend what steps should be taken, either for the transport management or the community involvement effort. keywords: community involvement; participatory design; transport management; surabaya i. introduction transport as an important and vital aspect for the accelerator of economic and regional development [1], [2] should be taking into account its surrounding affected areas to ensure the effectivity and efficiency [2]. transport development in the urban areas in developing countries on the few last decades has been focused on mostly expanding the automobile network, which leads to the use of private motorised transport as the main travel choice. this type of travel choice then leads to unequal and unsustainable transport provision. reviewing on the transport management, with taking the perspective on developing countries, it is important that planning and constructing a transport infrastructure have to fulfil people and/or communities that were affected by it. social, political, and civil rights movements in the 1960s and 1970s triggers the emergence of community consciousness that the community itself should be involved in the process of making decisions in a planning process that affect them, because of the beliefs that the environment will work better if those citizens are active and involved in its creation and management, rather than just being passive consumers [3], [4]. the observed area for this article is in surabaya, indonesia. with the population of more than 2.9 million, about half of its populations are live in informal settlements called kampung [5]. looking at the context of urban life in indonesia with the existence of kampungs, it is important to recognise kampung as an inseparable part of the city. kampungs located in the centre of surabaya, indonesia have been existed for centuries and integrated with the city life itself so it can be directly affected by transport development. 29 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management this paper will discuss the importance of community involvement in transport management in surabaya. it is also will interrogate on how transport planning and management is or will be working in surabaya, regarding its future planning on transport provision. afterwards, this paper will look for the slice between the community involvement and its role in the existing transport planning and management for surabaya. this slice itself can be turned into recommendations on how surabaya should plan its transport development, without setting aside the community’s importance. ii. literature review a. community involvement in urban development involving the community in the decision-making process has been happening in a long time, mainly in the united states, where it has been a democratic tradition [6]. in the united states, historically, it has been rooted deep in the minds of americans as the right to make the decision, but due to the increase of the population and there were difficulties to involve all of the decision maker elements, the system then turned into delegation, by electing representatives of each region. but the implementation in this contemporary era did not emerge until the social, political, and economic change in the mid of the 20th century that brings community consciousness, which leads to more direct involvement from the public that demanding increased saying in the decision-making process by collective action through shared interest and values, which will increase citizen empowerment, social capital, and sense of community. [3][4]. in the context of urban design, it has historically been exclusively a domain for the professionals in the field of design and planning due to the belief that it is very complex projects and policies to construct that it requires special knowledge so that it should not be consulted to the public [6]. the development then sparks criticism and debates on the designer and planner, mainly towards the impacts it generates, mostly on the large-scale developments such as city centre demolition for freeway construction. planner-designer-centric development did not take into account the impacts experienced by affected communities, such as gentrification and displacement of the vulnerable. there are also proofs that using community participation approach can generate improved designs or policies that provide multiple needs and/or interest. otherwise, the poorly managed public process can result in dissent, protests, legal challenges, project delays, and rising construction cost [6]. today, participation is seen as a necessary and unavoidable part of urban design practice today. according to [6] and [7], there are various practices that commonly run for community involvement of urban development, such as legal mandates and process (proposition, initiative, and civic leadership), public review (invitation to public places for hearing, reviews, and comment), visioning exercises (widescale invitation of a certain project), simulations (modelling activity to explore implications of policy and decision-making processes), advocacy (creating a neighbourhood agency to influence and shape decision making), and direct actions (influencing design neighbourhood and urban spaces). b. public transport management in developing countries most urban transport mode in the developing countries are still depended on private motorised transport, as a result of decades of automobilefavoured transport management. on the early postcolonial era, due to the strict budgeting, most spending usually went to the aspects deemed as immediate and essential. this made the development of new formal, rail-based urban public transport network at that time unnecessary [8]. but the demand for new road increasing as the automobile become less expensive and more affordable, which then leads to the extensive road network and create a city sprawl. this type of “new normal” then leads to the negative effect such as the deterioration of existing public transit network, leading some network to be closed due to poor maintenance and little refurbishment [9]. although proper transport management, even the automobile-based one, helps to trigger economic growth and supporting developments [2], the automobile-based transport system and management brings the negative side, mainly for the disadvantaged groups (physically, socially, and economically disabled) such as: • reduction of social interaction and racial segregation [10][11] • displacement and gentrification that leads to 30 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management environmental injustice [12] • lack of accessibility and mobility to the opportunities [12][13] • health problems, due to less physical activities, traffic incidents, and air pollution [11][14] • severe oil dependency that contributes to global warming [11] by the end of the 20th century, the problems of delivering effective public transport management for the developing countries started to find a light. the mass rapid transit in the form of the bus (bus rapid transit, brt) was introduced in curitiba in 1974, as the cheaper alternative to rail-based transport infrastructure. it did not directly gain interest until the same system was launched in bogota in the year 2000. in indonesia, the development of public transport was merely the same as other developing countries, which dominated by cars and motorcycles. on the case of jakarta, the city was heavily depended mostly on road-based public transport such as buses and informal transport dubbed as paratransit, which has a more extensive network mainly at the narrower streets unreachable by bus [15][16]. despite many studies on mass rapid transit has been conducted since the 1970s, only little of it was implemented [17]. due to the significant interest in brt, jakarta started to construct its system in 2003 and inaugurated the first phase on the next year. today, jakarta has one of the largest brt systems in the world and served 370,000 daily passengers [18]. iii. methodology this paper adopts secondary data and mostly employs qualitative analysis rather than quantitative analysis. the qualitative analysis consists of the literature review that related on community involvement in the form of participatory design, transport management and its implementations on developing countries, the importance of kampung in surabaya from its formation, characterisation, and the example of community-led designs, and the transport planning for surabaya. quantitative analysis of this paper consists of statistics on population and transport usage. besides discussing participatory design, this paper will also take the light on the recent condition of the urban public transport system in developing countries. afterwards, this paper then will describe the cases of community involvement in designing and transport management in developing countries. surabaya as the centre of attention will employ its kampung and its transport conditions and planning. based on theoretical approach on participatory design and existing transport situation, it will look for what type of participatory approach on transport planning, and then interrogate it with the existing situation and planning for surabaya’s kampung so that the recommendation can be gathered to improve the planning for surabaya’s transport in the future. iv. reflections on surabaya a. state of the kampungs kampung, which is a major urban agglomeration of the rural village has been a vital asset for surabaya’s urban poor. it serves as the informal settlements with mixed social economic groups of low and middle income, although its inhabitants are primarily from low-income group. it basically formed as a rural village that experienced transformation, gradual expansion, and consolidation through the self-build process. it is also strategically located in the city centre and generates home industries, providing access to opportunities for mixed skills and knowledge [5]. the involvement of kampung’s community in their neighbourhood development has been run since 1968 on various programmes as explained by [19]: • kampung improvement programme (kip), 1968-1993, a government programme on upgrading community level basic infrastructure to enhance physical and socioeconomic conditions, expanding productive capacity, and reducing socio-economic life disruption • comprehensive kip (c-kip), 1995-2008, a continuation of kip that focused on physical environment improvement, community development, housing improvement, and land management • surabaya green and clean, 2005 onwards, a competition held by the city government to encourage kampung community to improve their own neighbourhood on its garbage and waste management, sanitation, and greenery and the winning neighbourhood will get 31 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management incentives to initiate further improvement. despite the outcome of kip and c-kip are smudged by negative evaluation such as unsatisfactory cost recovery, maintenance, conflict resolution, and lack of creativity [19][20], those programmes have prevented gentrification, preserved liability, and strengthen community empowerment for development implementation [5]. b. surabaya’s transport: its management and plans surabaya’s recent transport management is still heavily depended on road-based transport that dominated by private transport mode, mainly motorcycle and cars. there are also public transport options such as bus, taxis, and paratransit such as ojek and bemo, which all managed by different companies. the result of this dependency is the same as other major cities in developing countries that in the end favours road development and expansion over public transport improvement that leads to frequent traffic in the city centre, despite the effort to ease up the existing road and extending road network throughout the city. recently, the government have utilised a plan to improve the public transport condition by reintroducing rail-based transport of trams, once one of surabaya’s main transport mode, and monorails, which later altered into overhead light rail transit (lrt). this trams will follow most of the old tram’s route, with some adjustments. the report that published in 2014 [21] involved various stakeholders, civic leaders, academicians, and professionals in delivering mass rapid transit for the cities. using the approach of transit-oriented development, trams involves surabaya’s kampungs as an integrated part of its development. the report then delivers plans of kampung improvement that being affected by tram development and specify some focal recommendations, such as: • encouraging further incremental growth and development • enabling small public space and low rise mixed use edifices • working with kampung communities • generating feeder pathways to tram stations and improve it, such as bike network, street furniture, and façade improvements • building the kampung market as the socioeconomic centre of the neighbourhood v. analysis the approach of transit-oriented development in the urban public transport development and planning should encompass the entire neighbourhood, district, or corridor surrounding a station due to its radical physical change in the form of construction of new transit system and expectation of a private development, which is immediate and may be intrusive [22]. polyzoides expects that the design of the station itself must be put through a community process so that the affected neighbourhood community can discern the mobility, economic development, and other benefits. this process has to be transparent, participatory, and engaging all constituents, either public or private sectors to create a specific area master plan for the neighbourhood [22]. relating back to [6] and [7], common practices are the key to ensure the active community involvement in the development process (in this term, transport development). if this stage really goes well, it should bring positive impact, such as improved decisions quality, minimizing cost and delays, consensus building, avoiding “worst case” confrontations, and developing public expertise and creativity [3]. this will surely improve the transport system to make it more efficient and effective to grow the economy and supporting developments [2]. from the analysis of six common practices that correspond (or not correspond) to the report’s recommendations for surabaya’s kampungs, two practices are available on the report, which is the project design and direct actions. regarding the project design practice, the report has been publicly published so that everyone can gather the information to observe steps and design ideas in transit planning. on the direct actions, the report already encourages community to improve the streets or pathways leading towards the station to ease access and walkability. one of them is the art project to beautify the facades of the pathway. vi. recommendations this part will be divided into two: recommendations for transport management and community involvement. for transport management in today’s state, it is required to introduce a new mode of transport that can carry more people efficiently. the most inexpensive mode of transport is should be brt, just like what other cities in indonesia have 32 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management been implemented. the government estimates the brt system can carry up to 3800 people per hour per way [23]. but this article was published in 2012, two years before the 2014 report. in the 2014 report, there is no mention on the brt system, but only states on how the bus and bemo should be improved. the brt system should be the first to implement since it is less expensive and can be executed as a trigger for people to use public transport mode. there is also the concern of disintegrated companies on transport usage. it should be integrated into one authority board to minimise conflict and creating an effective and efficient network of transport. on community involvement, it shows that there are already recommendations being mentioned on this tram and lrt project, but since it is only recommendations of the experts, it goes back to the government as the last decision maker on how to execute the project. the steps on acknowledging kampung and its potentials and the effort to publish the report for the public are highly appreciated, but it needs to be ensured that if the government wants to construct this, they have to engage with kampung’s community as a part of the participatory design. there are also concerns on this project if the government does not intend to include the public on this transport project, as follows: • budget issues will always be a highlight when constructing new public transit network so perhaps, due to the strict budget, the only thing being built is the station infrastructure without taking into account the surrounding impacted neighbourhood, especially the kampungs. • there might be some dissents or protests if the development proved does nothing to the community or if the plan does not concern the community affected • gentrification, due to the increase of private developers that wants to build properties adjacent to the station that can increase land values around their neighbourhood. • recommendations for community involvement are as follows: • publish the project to the public and give a specific period to gather public reviews and comments on how it should be executed or what details should be added or altered. • on the early steps of designing, engage affected communities, public and private, to a communal meeting to expressing preferences through some options, either its public forum, simulations, workshops, focus groups, or workshops to ensure all inputs for the project to generate ideas and bring public consensus. • direct actions from the public, which already stated in the report, should be implemented to make the transport mode runs effectively and minimising gentrification effects. vii. conclusions surabaya’s recent transport management that still relies on a private mode of transport should be altered by using policies to encourage people to use public transport more rather than private ones. implementation of rail-based transport, as done in the 2014 report also should take into account the importance of kampung community that will be affected by the new transport system and treating them as an integrated part of surabaya’s transport system, rather than being mere passive consumers. common practices on participatory design seem fit with the social character of kampung community. by integrating them into the system through participatory processes, the neighbourhood will strengthen its initiative, creativity, and independence. references [1] d. l. greene and m. wegener, “sustainable transport,” j. transp. geogr., vol. 5, no. 3, pp. 177–190, 1997. [2] m. kadarisman, a. gunawan, and i. ismiyati, “kebijakan manajemen transportasi darat dan dampaknya terhadap perekonomian masyarakat di kota depok,” j. manaj. transp. dan logistik, vol. 3, no. 1, p. 41, 2016. [3] h. sanoff, “multiple views of participatory design,” int. j. archit. res., vol. 2, no. 1, pp. 57–69, 2008. [4] t. robertson and j. simonsen, routledge handbook of participatory design. london and new york: routledge, 2013. [5] h. r. santosa, “linking open building and sustainable livelihoods in the kampung– informal settlement,” in proceeding of the joint 33 sinergi, volume 9 number 1 march 2019 mega primatama1) community involvement for surabaya’s public transport management conference of cib w 104 and w110, 13 october 2008, 2008, pp. 205–208. [6] j. hou, “citizen design: participation and beyond,” in companion to urban design, t. banerjee and a. loukaitou-sideris, eds. london and new york: routledge, 2011, pp. 329–340. [7] p. bosselmann, “simulation as a decision making tool,” in companion to urban design, t. banerjee and a. loukaitou-sideris, eds. london and new york: routledge, 2011, pp. 249–260. [8] m. primatama, “tipping points on transport and behaviour: examining bus rapid transit system in jakarta, indonesia,” adv. soc. sci. educ. humanit. res., vol. 165, pp. 51–55, 2018. [9] h. w. dick, surabaya, city of work: a socioeconomic history, 1900-2000. ohio: ohio university press, 2002. [10] j. mercier, “equity , social justice , and sustainable urban transportation in the twentyfirst century transportation in the twenty-first century,” adm. theory prax., vol. 31, no. 2, pp. 145–163, 2009. [11] r. ewing, k. bartholomew, and a. c. nelson, “compactness vs. sprawl,” in companion to urban design, t. banerjee and a. loukaitousideris, eds. london and new york: routledge, 2011, pp. 467–483. [12] t. sanchez, r. stolz, and j. s. ma, “moving to equity: addressing inequitable effects of transportation policies on minorities,” cambridge, ma, 2004. [13] a. m. ricciardi, j. c. xia, and g. currie, “exploring public transport equity between separate disadvantaged cohorts: a case study in perth, australia,” j. transp. geogr., vol. 43, pp. 111–122, 2015. [14] v. m. nantulya and m. r. reich, “equity dimensions of road traffic injuries in lowand middle-income countries,” inj. control saf. promot., vol. 10, no. 1–2, pp. 13–20, 2003. [15] j. p. ernst, “initiating bus rapid transit in jakarta , indonesia,” transp. res. rec. j. transp. res. board, no. 1903, pp. 20–26, 2005. [16] r. cervero, “paratransit in southeast asia: a market response to poor roads?,” rev. urban reg. dev. stud., vol. 3, no. 1, pp. 3–27, 1991. [17] f. a. arif, “transport planning in jakarta,” urban policy res., vol. 20, no. 4, pp. 371–389, 2002. [18] s. angelina, d. vallée, and c. louen, “the barriers in the implementation process and the operation of innovative urban transport: the case of brt jakarta,” wit trans. built environ., vol. 176, pp. 69–80, 2018. [19] d. s. mintorogo, l. s. arifin, w. k. widigdo, and a. juniwati, “historical old ‘ kampung ’ toward sustainable green and clean habitat,” int. jt. conf. senvar-inta-avan 2015. wisdom trop. past, present. 24 novemb. 2015., 2015. [20] a. das, “a city of two tales,” environ. urban. asia, vol. 8, no. 1, pp. 1–21, 2017. [21]hansen partnership and sutd city form lab, “surabaya urban corridor development program: final report, june 2014,” singapore and melbourne, 2014. [22]s. polyzoides, “notes on transit-oriented development,” in companion to urban design, t. banerjee and a. loukaitou-sideris, eds. london and new york: routledge, 2011, pp. 644–653. [23] a. b. m. s. rahman, a. fujiwara, j. zhang, s. nugroho, and t. silaban, “investigating travelers’ stated mode choice preferences considering the influences of choice contexts on brt system in surabaya city,” j. int. dev. coop., vol. 18, no. 3, pp. 1–16, 2012. sinergi, volume 1 0 number 1 maret 2020 22 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution perception of quality in a philippine private academic institution jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) 1)college of business, management and accountancy, de la salle araneta university, malabon, philippines; 2)ramon v. del rosario college of business, de la salle university *corresponding author: jerico.dalangin@dlsau.edu.ph submit : 22nd august 2019, revised : 03rd march 2020, accepted : 24th march 2020 abstract this work is aimed at obtaining information and assessing the quality of service experience in a philippine private academic institution. this study used quantitative descriptive research method utilizing individual level data through adapted researc h instrument from pamatmat et. al. (2018) utilizing the service quality dimension. percentage, mean score, frequency distribution, t-test and anova were used for data analysis. the study sought the participation of 290 parents from a private academic institution in north metro manila. using sampling process on snowball, 290 parents’ respondents were derived using the slovin’s formula based form the total student population of 1,061 admitted during school year 2018-2019 from the private institution. the service quality experience instrument was found to be highly reliable (38 items; α = .873). the result highlights the five dimensions of service quality experience where place of resident and civil status was significant with the five dimension of service quality. sex was significant to responsiveness. educational attainment was significant to assurance. monthly income was significant to assurance, empathy, reliability, and responsiveness. sex was significant to assurance, reliability and responsiveness. tangible scored lowest possibly due to the concern on available parking spaces which might have impact the totality of the raw score for the tangible service quality dimension. assurance scored the highest wherein the item that got the highest score was pertaining to the community involvement of the private academic institution. keywords: service quality, education, academic institution, private school, quality perception 1. introduction the concept of service quality to remains to be constant and imperative in all aspect of business. companies contribute great significance to living up to clients' desires and expectations. notwithstanding the effort of these companies to be mindful to its client’s desire, still there are personnel in the organization that lacks customer service orientation (kanji, abdul malek and wallace, 1999). eshghi (2008) defined quality of service as a general assessment to meet customers’ expectations. improving service quality would provide survival and growth of businesses to become competitive by satisfying their customers. in the educational services industry, service quality made private academic institution to be keen and conscious of their customers’ perception on the value and the kind of service received. these private academic institutions continuously explore in making their services more appealing to students and parents as well (mohamad yusof, hassan, abdul rahman, & ghouri, 2012). it is innate that customers have their own perception of the kind of service. thus, this should define the standards of the company of which it must adhere to the perceived quality of service of its customers, in order to obtain high satisfaction from and retain its customers. private academic institution, those who want to achieve competitive edge will start looking for innovative and imaginative ways to attract, maintain and promote greater strength relationships with its clients, both for students and parents. teo (2001) suggests that the firms have to be dependent on business interaction and mechanism. the position of quality of service is very important in a private academic institution as they are expected to be more courteous, service orientated and provides a good environment for their learners. proper decorum of personnel in the mailto:jerico.dalangin@dlsau.edu.ph sinergi, volume 1 0 number 1 maret 2020 23 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution offices as well as faculty members should make an ideal representation as this will set the impression of the institution that they belong to. this work aimed at exploring the understanding of parents regarding the quality of service observed in a private academic institution and the critical factors in the quality of service which contribute significantly to the satisfaction of the servqual model of parasuraman et al (1988). a. parent’s perception of school services parents’ involvement in a child's education was consistently linked to the academic performance of a child. in order to learn, the learning environment should be safe amongst the learners, but little research has been done into the mechanisms that explain this association (gobiga, 2017). oliver (1997) defined loyalty as a commitment of parents to subscribe their youngster in an institution that will induce behavioral change that can be used for their advancement. skallerud (2011) stated that decision making and the evaluative processes allows underwriting parents to the institution, thus instilling loyalty towards the institution. parents who are loyal to an institution continuously send their children to that institution. having a strong connection with institution parents serve as advocates building a good school reputation. this in turn, provides opportunity for the institution to grow attracting new students as mentioned in the study of li and hung (2009). good reputation correlates to quality and reduces the risk of loosing parents’ loyalty. the study of helgesen and nesset (2007) provides a positive link between reputation and loyalty. managing reputation is an important factor for attracting and retaining students whose influence might have significant because of their parents (bush et al., 1998). b. service quality businesses utilizes service quality as a unique selling proposition by understanding the underlying service quality dimensions perceived by its immediate clientele. tam (2004) recognizes the consensus that service quality has always been in a form of customers’ perspective. lovelock and wirtz (2011) quality of service characterized as reliably surpassing clients’ desire. perceived service quality subsequently interpreted as a degree to which clients see that services meet expectations. according to lovelock and wirtz (2011) quality of service is composed of five dimensions, tangibility, reliability, responsiveness, assurance and empathy. tangibility pertains for physical structures and general appearance of the work force in an organization. reliability conveys an accurate and guaranteed delivery of service to clients in which its content is highly dependable. responsiveness prompts the readiness of an organization to help clients in a swift manner. assurance depicts the politeness and knowledge ability of staff can affect customers of a confident decision or outcome out of the service received. empathy refers to the organization’s capacity to provide personalized care to customer. service-oriented firms highly depends on the improvements of service quality as this serves as a metric for measuring success. business organizations involved in the service industry must met at least the minimum requirements of their customer while being able to sustain competitiveness in the field. according to aghdaie and faghani (2012) service quality provision is a factor needed in planning marketing programs. coetzee (2013) recognizes that superior service quality provides bearing in creating a more valuable business that essentially, ensures customer satisfaction, repetitive purchases and get customer loyalty. a firm’s superior service quality provides competitive advantage that would highly be recognizable in the globalized and industrialized competitive market while the reverse of quality service place one’s business to a more disadvantage position that can drive away customers. c. service quality in private academic institution the applicability of servqual is very universal. this means that in the setup of the academic institution there is a suitability of applying the service quality model. several studies were conducted by different researchers, who measured sinergi, volume 1 0 number 1 maret 2020 24 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution the quality of service at the academic institution. several studies give different opinions regarding the importance of tangibility on service quality. smith and ennew (2001) the selection of experience of fulfillment between affective indignation and technological functionality was emphasized. a specific service used by a person could be measured by how effective they are based on age, appearance, courtesy and empathy-based technological functionality. a facility that is not up-to-date but still able to perform tasks can be considered negative if the individual expects an institution to provide updated facilities. a private academic institution's studies on service quality highlight academics more than administration considering the effectiveness of course delivery and mechanism in relation to teaching quality. earlier research on service quality at private academic institutions often stressed academics more than resources, focusing mechanisms for the successful delivery of courses and the standard of training and courses. the quality of service explains nearly 43 percent of the change in satisfaction of customers. other hand, service quality is directly related to loyalty, and changes in level of service: can explain nearly 45 percent of changes in loyalty. another such point is that the resultant indices of determination will be higher than other instances if the level of satisfaction factor enters the model. this test means that almost 80 percent of improvements in loyalty the satisfaction and the quality of service can be explained, though satisfaction plays a more essential role in this regard (mosahab et al., 2010) the contribution of this research enables the private academic institution to determine their strengths as well as those areas that needs further improvement. this also provides the institution a concrete evaluations of the kind of service quality that they have been providing to their customers for one year. furthermore, the research output can be capitalized by the institution to address areas that needs to be improved. ii. methodology this study used quantitative descriptive research method utilizing individual level data through adapted research instrument from pamatmat et. al. (2018). the researchers made minor modification in the research instrument wherein in the reliability service quality dimension, the question “instructors, professors & lecturers do not cancel classes” was removed since class cancelation is not an option in the institution otherwise, substitution should be made while the problem "the overall cleanliness of the university is evident" was omitted in the tangible service quality dimension since it is similar and encompasses to the questions “the university buildings and grounds are well-maintained” and “the university atmosphere and decorations have visual appeal.” the research instrument comprised of two parts – first is the respondents’ profile and the second part deals with the observed service quality containing 38 statements with regards to the observed level of perception on reliability, assurance, tangibles, empathy and responsiveness dimension of service quality. the tangible subscale consisted of 9 items (α = .875), the subscale response consisted of seven things (α = .892), the subscale response consisted of seven things (α = .965), the insurance subscale was composed of 6 products (α = .901), and the empathy subscale consisted of 7 items (α = .924). the research instrument it was found to be very accurate (38 items; α = .873). the study sought the participation of 290 parents from a private academic institution in north metro manila. using sampling method for snowball, 290 parents replied were derived using the slovin’s formula based form the total student population of 1,061 admitted during school year 2018-2019 from the private institution. iii. results and discussion the respondents mostly are from 41 to 50 years old. the majority of those who replied were women (69%) and resided mostly in malabon (29%) and caloocan city (28%). the measures revealed that the respondents have high inclination towards assurance among the service quality dimension. the result showed that amongst the dimensions of service quality, tangible sinergi, volume 1 0 number 1 maret 2020 25 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution scored the lowest expectation score (m=3.96, sd=0.73) which may be attributed to the “parking spaces are available” item, which got the lowest score amongst the questions under tangible. table 1 descriptive statistics of variables measures mean sd tangible 3.96 0.73 reliability 4.12 0.62 responsiveness 4.03 0.69 assurance 4.23 0.63 empathy 4.08 2.66 table 2 shows the significant difference of service quality experience which highlights, civil status was significant at five levels of service quality tangible, assurance, empathy, reliability, and responsiveness. age was significant to responsiveness. educational attainment was significant to assurance. monthly income was significant to assurance, empathy, reliability, and responsiveness. sex was significant to assurance, reliability and responsiveness. table 2 significant difference of service quality experience variable variable t p sex tangible 2.487 0.116 reliability 8.037 0.005 * responsiveness 5.714 0.018 * assurance 5.942 0.015 * empathy 3.288 0.071 age tangible 1.656 0.160 reliability 0.991 0.413 responsiveness 5.67 0.000 * assurance 0.639 0.635 empathy 1.721 0.145 civil status tangible 5.671 0.003 * reliability 4.556 0.011 * responsiveness 9.365 0.000 * assurance 10.74 0.000 * empathy 7.693 0.001 * educational attainment tangible 0.346 0.792 reliability 1.577 0.195 responsiveness 1.647 0.179 assurance 3.632 0.013 * empathy 0.646 0.586 monthly income tangible 1.337 0.210 reliability 2.814 0.002 * responsiveness 2.637 0.004 * assurance 2.652 0.004 * empathy 2.106 0.024 * a. age was significant to responsiveness the role of parents who are professional investors for an institution considering that they are whoever subscribes their children to the institution (apostoleris, 2010). the behaviors which includes ensuring children to have breakfast, volunteering in school works, and holding local office roles determines the involvement of parents. parents who participated in educating their children with the goal of supporting their academic and social success is functions being carried out depending on the maturity of parents as professional adults having a high degree of understanding. b. sex was significant to assurance, reliability and responsiveness blake (2010) highlighted that parenthood is an important contributor in a child’s education and overall development. it is significant that parents interact with their children on school related concerns. involvement at home of parents which is highly attributed to a mother in particular, is vital for parents who are quite a lot of people on of their children. this involvement helps children plan that positively strikes the overall academic achievement of a child. c. civil status was significant with the five dimension of service quality civil status of the parent was found to be significant. effective communication between home and school and vice-versa was a key factor for increasing students’ performance. the participation of family really is a must to achieve the institution goal. wedding couple that supports their children’s performance can be tagged that it creates impact to the result and decision of the proponents. sinergi, volume 1 0 number 1 maret 2020 26 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution d. educational attainment was significant to assurance parent’s educational level is a good indicator to achieve good student. parents who volunteer in school are sending a strong message that school is important for their children. parents who are involved in school should probably be attributed to a better school performance for students, better attendance, and increase motivation towards schools and good behavior. this in return, parents who have high level of educational attainment may have a better understanding of what is happening in school and may be more compassionate for the short comings of the institution. e. monthly income was significant to assurance, empathy, reliability, and responsiveness families enroll their children in different nursery schools. nonetheless, demand for private education in the philippines is growing, due to increased parental frustration with public education. in a study, it was mentioned that parents chose private institution to enroll their children indicated a number of differences in service delivery in terms of management, teacher qualifications and conduct between public and private schools, indicating a higher quality of education in private institutions. iv. conclusion the goal of this study is to use the service quality model to investigate the impact of the perception of quality in a philippine private academic institution. the following suggestions are given, based on the findings that would further improve the quality of academic institution following the service quality model: 1. reliability subscribe to parent their children to an educational institution because of the quality of education. in order to sustain parent’s loyalty, it is important that the institution has a reliable reputation in terms of quality instruction. teacher factor is also important for the institution as they are the communicator that provides positive and helpful environment for the parents and students. 2. assurance it is important that qualified employees (teaching and non-teaching) have the acquired knowledge to that will adhere to make sure that the institution provides courteous and friendly services. in addition, parents who entrust their children to the institution would like to feel assured that these school personnel would properly take care of their children. the school has an influence on the strength and quality of their involvement. 3. tangible institution must work on improving school facilities to increase the appeal of the physical facilities and availability of access either online or through flexible office hours and dialogue with the teachers. education environments also reflects the perception of parents towards safety. a wellmaintained institution with adequate facility would likely be conducive to teaching and learning. 4. responsiveness being responsive to all parents regardless of their status and concern is very significant that translate how an institution value time and quality with their clients. an institution with delay response would likely make the client or parent detached from the institution, feeling isolated. thus being responsive addresses this ensuring that parents can rely on the institution should need arises expecting return of inquiry they made for whatever reason. 5. empathy the school should provide polite and positive responses to the parents and other individuals who visited the school. it is important that understanding the customer’s needs and providing them with empathetic responses would be beneficial in maintaining a good relationship with the university in order to show that the university provides what is for the best interests for these students prior to getting them in the university. overall, the private academic institution concerned in this study may further improve their services in the light of discussed dimensions of servqual according to the experience of the parents and to be able to do a yearly service quality survey that will continuously improve the services of the institution, considering this process as one of the important monitoring and review to sinergi, volume 1 0 number 1 maret 2020 27 jerico john g. dalangin1), 2)*, alexander c. bareno1), nora mae e. bico1) and xiomara nina m. de castro1) perception of quality in a philippine private academic institution continuously improve the quality of service. further study may be conducted that will involve school personnel, students and possible non institution member using the same instrument and to create a comparative analysis of the three respondents to determine as to what perceived quality each group of respondents is looking for in a private academic institution. references aghdaie, s.f.a. & faghani, f. 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(2012) service marketing: integrating customer focus across the firm, 6th ed. mcgraw-hill education, new york, n.y. sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 30 okky wahyudha nur susanto 1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees in the south surabaya region the impact of discipline and integrity on the performance of telkom employees in the south surabaya region okky wahyudha nur susanto1*), slamet riyadi2, abdul halik3 123*) university 17 agustus 1945, surabaya, indonesia email: 1*)1262100003@surel.untag-sby.ac.id, 2)slametriyadi10@untag-sby.ac.id, 3)halik@untag-sby.ac.id abstract discipline and integrity possessed by employees is a reflection of the company's performance, both of which will be able to affect employee performance. maintaining the discipline and integrity of employees is one of the important functions of operational human resource management because the better the level of discipline and integrity of employees, it will simultaneously affect the company's performance. this study aims to determine the impact of discipline and integrity on employee performance. discipline is tested through example, waskat (attached supervision), firmness. integrity is tested through honesty, consistency, commitment. performance is tested through the quality of work, responsibility, cooperation. the research method is quantitative with a sample taken of 110 telkom employees in the south surabaya region. the data analysis technique uses the structural equation modeling (sem) method using ibm spss statistics and amos version 24 software. the results of this study indicate that discipline and integrity have a significant influence on the performance of telkom employees in the south surabaya region keywords: discipline, integrity, performance i. introduction employees are the most important resource owned by a company, of course the performance of an employee is positive, the performance of the company will also be positive. therefore, to maintain or even improve the performance of employees who are disciplined and with integrity are needed. discipline and integrity possessed by employees is a reflection of the company's performance, both of which will be able to affect employee performance. maintaining the discipline and integrity of employees is one of the important functions of operational human resource management because the better the level of discipline and integrity of employees, it will simultaneously affect the company's performance. telkom is a state-owned information and communication company. telkom itself has received anti-bribery management system (smap) certification. this certification was obtained due to the commitment and implementation of good corporate governance (gcg). with the implementation of smap, of course telkom regional employees are required to always be disciplined, have integrity and maximize their work. therefore, employees who are disciplined and have integrity are needed. according to tarigan & priyanto (2021) work discipline is very important for agencies or companies to determine a company's ability to carry out its mission and achieve certain goals. employee performance can be seen from the ability, skill, quality of work, quantity of work, time spent by employees to work, and work discipline. work discipline determines the success of a company in achieving its goals. therefore, every company has the hope that the company's employees can comply with the regulations that have been set so that they are able to have a competitive advantage in facing the era of globalization, the information age in entering the industrial revolution. according to sujiyanto (2017) defines integrity as moral excellence and equates integrity as "identity". integrity is also defined as acting consistently in accordance with the values and code of ethics, in other words integrity is defined as "only words with deeds. according to becker et al in rani sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 31 okky wahyudha nur susanto1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees et al. (2018) defines integrity as something related to a person's trust and honesty. integrity is expected to create a common goal to achieve what is aspired to. according to hasibuan (2010: 21) human resource management (human resources management) is a series of activities in a company for the purpose of directing and developing the workforce so that they can work effectively and efficiently. human resource management functions include planning, organizing, directing, controlling, procurement, development, compensation, integration, maintenance, discipline. based on the background and empirical research above, it shows that discipline and integrity can have a significant influence on an employee's performance. therefore this study aims to answer this statement empirically. in accordance with the background above, the title of this study is "the impact of discipline and integrity on the performance of telkom employees in the south surabaya region". employee discipline according to siagian in kumarawati et al. (2017) stated that discipline is a management action to encourage members of the organization to meet the demands of various conditions that must be obeyed and standards that must be met. according to hasibuan (2010: 194) indicators to measure employee discipline are as follows: 1. exemplary 2. supervision 3. firmness employee integrity integrity is the concept of consistency in actions, values, methods, steps, principles, expectations and results. in ethics, integrity is considered as honesty and truth or accuracy of one's actions masram & mu'ah (2017:41). according to abdullah in eprianti et al. (2020) indicators to measure employee integrity are as follows: 1. honesty 2. consistency 3. commitment employee performance performance or performance according to rivai in tarigan & priyanto (2021) is an illustration of the level of achievement of implementing a program of activities or policies in realizing the goals, objectives, vision and mission of the organization as outlined through the strategic planning of an organization. according to mangkunegara in tania (2017) indicators for measuring employee performance are as follows: 1. quality 2. responsibilities 3. cooperation ii. literature review the conceptual framework is a link between the theories or concepts that support the research used as a guide in compiling a systematic research. the conceptual framework will serve as a guideline for researchers to systematically explain the theory used in the research. this research has a conceptual framework that will be explained in the figure below and more details will be explained in the following discussion as follows: figure 1. conceptual framework information : 1 variabel independen : x1 discipline x2 integrity 2 variabel dependen : y performance iii research hypothesis based on the conceptual framework that has been described, the following hypothesis is formulated: sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 32 okky wahyudha nur susanto 1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees in the south surabaya region hypothesis 1 according to siagian in kumarawati et al. (2017) stated that discipline is a management action to encourage members of the organization to meet the demands of various conditions that must be obeyed and standards that must be met. research conducted by e. m. putri et al. (2019) with the research title "the effect of work environment on employee performance through work discipline" proves that shows that work discipline is able to mediate the influence of the work environment on employee performance. h1: discipline has a significant influence on the performance of telkom employees in the south surabaya region. hypothesis 2 according to sujiyanto (2017) defines integrity as moral excellence and equates integrity as identity. research conducted by febrina & syamsir (2020) in a study entitled "the influence of integrity and organizational commitment on employee performance" proves that organizational integrity and commitment simultaneously have a positive and significant effect on the performance of asn office secretariat city sawahlunto, west sumatra province. h2: integrity has a significant influence on the performance of telkom employees in the south surabaya region. iv. research methods quantitative research model. this study departs from a theoretical framework, previous research and understanding of researchers based on field experience, then develops problems to be proposed in order to obtain justification for empirical data in accordance with conditions in the field. the data collection method was carried out by distributing questionnaires to employees who work in the telkom environment in the south surabaya region using the google form media. the questionnaire data is used to find out the empirical data of the discipline, integrity and employee performance variables. the analysis in this study was conducted to describe the answers from the respondents to the variables tested. data analysis in this study used quantitative analysis using structural equation modeling (sem) analysis techniques using ibm spss statistics and amos version 24 software. measurement of the variables of discipline (x1), integrity (x2), employee performance (y) uses a likert scale which consists of five answer scales. answers from respondents will be given a score as follows: 1 strongly agree : 5 2 agree : 4 3 neutral : 3 4 disagree : 2 5 strongly disagree : 1 population and sample population is a generalized area consisting of objects/subjects that have certain qualities and characteristics determined by researchers to be studied and then conclusions drawn in sugiyono (2013). due to the unknown population size, it was determined using the hair et al. formula. (2017:100) are as follows: 𝑛 = (5 − 20) 𝑥 𝑘 𝑜𝑟 10: 1 𝑛 = 10 𝑥 16 𝑛 = 160 n=(5-20) x k or you can use a 10:1 ratio n=10 x 16 n=160 information 𝑛 : total 𝑘 : number of research variables (5 − 20) : number of observers according hair et al. (2017:100) based on the results of calculations using the formula hair et al. (2017: 100) then determined the total population of 160 employees. sujarweni in widodo et al. (2018) the sample is part of a number of characteristics possessed by the population used for research. according to sugiyono stated that the sample is part of the number and characteristics sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 33 okky wahyudha nur susanto1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees possessed by the population sugiyono (2013: 215). based on the qualifications of the respondent profile data that had been determined in the questionnaire, 112 respondents received data feedback, but there were 2 respondents who did not meet the research requirements and criteria so they were not included in the study. this study used a saturated sampling technique, with a total sample of 110 respondents. v. results and discussion measurement measurement model figure 2. measurement model 1 figure 2 shows the results of factor loading calculations on the discipline, integrity and performance variables. from the results of factor loading can be seen as follows: table 1. measurement model of fit 1 measureme nt model of fit cut off hasil result s chi-square expecte d small 722.35 2 bad probabilitas ≥ 0,05 0.000 bad gfi ≥ 0,90 0.672 bad agfi ≥ 0,90 0.614 bad cfi ≥ 0,95 0.793 bad tli ≥ 0,95 0.744 bad rmsea ≤ 0,08 0.107 bad cmin/df ≤ 2.00 2.250 bad table 1 shows the results of the calculation of the factor loading showing that the measurement model is inappropriate or less than the expected value. therefore, the model was modified according to the recommendations in the modification indices for amos. the modified results of amos' recommendations are as follows: figure 3. measurement model 3 figure 3 shows the results of factor loading on discipline, integrity and performance formed by indicators that have been modified following the recommendations on modification indices on amos. from the calculation of factor loading can be seen as follows: table 2. measurement model of fit 2 measurement model of fit cut off hasil results chi-square expected small 83.099 fit probabilitas ≥ 0,05 0.038 fit gfi ≥ 0,90 0.896 moderate agfi ≥ 0,90 0.847 moderate cfi ≥ 0,95 0.971 fit tli ≥ 0,95 0.963 fit rmsea ≤ 0,08 0.056 fit cmin/df ≤ 2.00 1.340 fit table 2 shows the results of factor loading calculations showing the measurement model on the discipline, integrity and employee performance variables formed by the indicators in it are appropriate or the model can be said to be (fit) with the data. the results of calculating the factor loading on each indicator can be seen as follows: sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 34 okky wahyudha nur susanto 1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees in the south surabaya region table 3. factor loading value variable indic ator loading factor results discipline (x1) z1.1 0.598 fit z1.5 0.672 fit z1.7 0.672 fit z1.8 0.849 fit integrity (x2) z2.2 0.744 fit z2.3 0.770 fit z2.4 0.795 fit z2.5 0.656 fit performan ce (y) y2 0.813 fit y3 0.841 fit y4 0.921 fit y5 0.601 fit y7 0.616 fit table 3 shows that the indicators on the discipline, integrity and employee performance variables have a loading factor value greater than 0.50. so that these indicators can be declared valid in forming the variables of transformational leadership, transactional leadership, discipline, integrity and employee performance and can be used to build the next model. validity test validity test is a way to see the probability of each indicator. validity test is useful to determine the validity of the indicator. an indicator can be said to be valid if the probability (p) value is less than ≤ 0.05. the results of the validity test on each variable are as follows: table 4. validity test table esti mat e s. e . c. r. p re sul ts z1. 5 ← disci pline 1.000 valid z1 .7 ← disci pline .961 .1 6 2 5. 95 1 * * * val id z1 .8 ← disci pline 1.13 4 .1 6 7 6. 79 9 * * * val id esti mat e s. e . c. r. p re sul ts z1 .1 ← disci pline 1.19 0 .2 2 6 5. 26 9 * * * val id z2 .3 ← integ rity 1.00 0 valid z2 .4 ← integ rity .903 .1 1 0 8. 20 4 * * * val id z2 .5 ← integ rity .891 .1 3 5 6. 60 3 * * * val id z2 .2 ← integ rity .949 .1 2 3 7. 69 9 * * * val id y3 ← perfo rman ce 1.00 0 valid y4 ← perfo rman ce 1.21 6 .0 9 9 12 .3 09 * * * val id y5 ← perfo rman ce 1.08 8 .1 6 1 6. 75 2 * * * val id y2 ← perfo rman ce 1.02 6 .1 0 0 10 .2 68 * * * val id y7 ← perfo rman ce .858 .1 2 2 7. 00 2 * * * val id table 4 shows the value (p) of each variable that has a value smaller than ≤ 0.05 or close to 0 (zero). thus it can be concluded that the indicator value is valid (legitimate) for further testing. reliability test the results of the reliability test are used to see whether each questionnaire tested has consistency and can be trusted or not. a questionnaire can be said to be reliable if the cronbach alpha value is > 0.60. the results of the reliability test can be seen as follows: sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 35 okky wahyudha nur susanto1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees table 5. reliability test variabel item cronbach alpha results discipline (x1) 4 0.766 reliable integrity (x2) 4 0.826 reliable performance (y) 5 0.854 reliable table 5 shows that the discipline, integrity and performance variables have a cronbach alpha value of more than > 0.60. by having it can be concluded that the variable is reliable. normality test the results of the normality test are used to see the effect relationship on each research variable. the normality test results can be seen as follows: table 6. normality test vari able m in m ax sk ew c.r . kur tosi s c.r . y7 3. 00 0 5. 00 0 .44 1 1.8 87 .66 3 1.4 19 y2 3. 00 0 5. 00 0 .24 3 1.0 42 .99 2 2.1 23 y5 2. 00 0 5. 00 0 .30 5 1.3 06 .55 5 1.1 88 y4 3. 00 0 5. 00 0 .29 0 1.2 40 .76 2 1.6 31 y3 3. 00 0 5. 00 0 .05 2 .22 4 1.5 29 3.2 72 z2.2 2. 00 0 5. 00 0 .58 5 2.5 06 .55 8 1.1 94 z2.5 2. 00 0 5. 00 0 .55 0 2.3 57 .12 6 .27 0 z2.4 3. 00 5. 00 .38 1.6 .93 2.0 vari able m in m ax sk ew c.r . kur tosi s c.r . 0 0 1 30 5 03 z2.3 2. 00 0 5. 00 0 .92 8 3.9 74 1.7 52 3.7 52 z1.1 1. 00 0 5. 00 0 1.2 45 5.3 29 2.0 36 4.3 58 z1.8 3. 00 0 5. 00 0 .58 0 2.4 82 .91 5 1.9 60 z1.7 3. 00 0 5. 00 0 1.2 46 5.3 36 .56 0 1.1 99 z1.5 2. 00 0 5. 00 0 1.5 78 6.7 55 3.2 10 6.8 72 multi variat e 75. 957 20. 17 0 table 6 shows that the c.r value is 20,170, which means that the research data is not normally distributed. then the sem estimation can use the boostrapping approach. structural model analysis structural model analysis is used to ensure that the model is (fit) with the data and to test the hypothesis of the influence of the variables studied. the estimate used in the structural model analysis is the maximum likelihood estimation (mle). the results of the structural model analysis with amos can be seen in figure 5.2 as follows: figure 3. structural research model sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 36 okky wahyudha nur susanto 1*), slamet riyadi2, abdul halik3 the impact of discipline and integrity on the performance of telkom employees in the south surabaya region the results of the model suitability test ensure that the model is fit with the data, so that the model can be used to test hypotheses. following are the results of the measurement model of fit test resulting from the structural model as follows: table 7. measurement model of fit measureme nt model of fit cut off hasil results chi-square expecte d small 127.30 6 fit probabilitas ≥ 0,05 0.000 moderat e gfi ≥ 0,90 0.868 moderat e agfi ≥ 0,90 0.810 moderat e cfi ≥ 0,95 0.906 fit tli ≥ 0,95 0.884 fit rmsea ≤ 0,08 0.097 fit cmin/df ≤ 2.00 2.021 moderat e table 7 shows that the test results show the suitability of the model. from the table above after testing the probability value, cfi, tli, rmsea and cmin/df show good results or the index can be said (fit). but in testing the value of gfi, agfi shows results that are critical but still acceptable. therefore it can be concluded that the structural model is feasible for further testing. hypothesis testing hypothesis testing is used to determine the causality relationship in each research variable. the results of hypothesis testing can be seen as follows: table 8. hypothesis test results relationship between variables esti mat e s. e c. r p resu lts h 1 disci pline (x1) → perfor mance (y) 0.55 0 0. 09 5 5. 76 6 * * * signi ficant h 2 integ rity → perfor mance 0.35 8 0. 07 5. 25 * * signi ficant relationship between variables esti mat e s. e c. r p resu lts (x2) (y) 4 8 * hypothesis test results 1 the test results on h1 show the relationship between the discipline variable and the performance variable. the h1 test shows that the value of c.r = 5,766 meets the requirements > 1.96 and the value of p = *** meets the requirements < 0.05. it can be concluded that h1 is accepted because discipline has a significant influence on the performance of telkom employees in the south surabaya region. hypothesis test results 2 the test results on h2 show the relationship between integrity variables and performance variables. the h2 test shows that the value of c.r = 5,258 meets the requirements > 1.96 and the value of p = *** meets the requirements < 0.05. it can be concluded that h2 is accepted because discipline has a significant influence on the performance of telkom employees in the south surabaya region. v. conclusions and limitations based on the presentation of research data that has been carried out under the title impact of discipline and integrity on the performance of telkom employees in the south surabaya region, the authors can draw conclusions and suggestions related to the research that the authors conducted. the conclusions and suggestions that the authors found are as follows: 1. simultaneous discipline and integrity have a significant influence on the performance of telkom employees in the south surabaya region. 2. simultaneous discipline and integrity have a significant influence on the performance of telkom employees in the south surabaya region. 37 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java sinergi : jur n al il miah il mu man ajemen , volume 11 number 2 september 2021 reference eprianti, yuli et al. 2020. “performance analysis of class iia lubuklinggau narcotics correctional institution officers.” emba journal 8(4): 69– 78. hasibuan. 2010. human resource management. jakarta: pt bumi aksara. kumarawati, raka et al. 2017. 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"analysis of the influence of leadership style, work discipline and job training on employee performance at pt telkom indonesia batam branch." creative industry journal (jik) 2(1): 97. 34 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul (hand catch operation kpk -“ott’s face”) ricouer analysis social interpretation of “wajah ott” in political communication management context of paul ricouer analysis (hand catch operation kpk -“ott’s face”) suwandi sumartias1), nurtyasih wibawanti ratna amina2) 1 ) faculty of communication sciences padjadjaran university bandung, indonesia e-mail : suwandi.sumartias@unpad.ac.id 2) surabaya high school of communication science, indonesia e-mail : dutaratna@gmail.com submit : 3rd august 2018 , revised : 8th september 2018 , accepted : 9th september 2018 abstract the writing purpose to understand and criticize social text “facial ott (the face of hand catch operation “kpk (corruption eradication commission). using research method “hermeneutic analysis of paul ricouer”, it seeks to understand behind the text as representation and multi-interpretation. the results showed that two heads of areas whose got the kpk ‘s hand catch operation (ott), jambi governor and west bandung regent were “smiling” in front of journalists coverage. facial expression (non-verbal communication) of human has a very closely related with its attitude, thoughts and behavior. body language (especially, facial expression) is an inseparable representation of what is in the mind and heart. “wajah ott” as an important part of language, signs, and symbols and representations require fundamental and comprehensive interpretation. the social interpretation of the smiling of “ott’s face” is increasingly asserted as a representation of the existence of space-time, experience and reference (history) and culture of society, which are mutually related and inseparable. recommendation, as long as we do not intend or dare to open the meaning behind the social “mask” on the text of “ott’s face” itself through understanding as “the way “ and or the “being” of the whole human being as dasein (its history, ideals and habits), so corruption will forever be part of the culture of society. keyword: social interpretation; face expression; hermeneutic; culture of society i. introduction management and leadership are important for the delivery of good services. although the two are similar in some respects, they may involve different types of outlook, skills, and behavior. good managers should strive to be good leaders and good leaders, need management skills to be effective (wajdi, 2017). leadership and management entail a unique set of activities or functions. while leaders and managers share some similarities because they both influence others by using specific powers to achieve certain goals, there are also some prominent differences (northouse in wajdi, 2017 ). while, managers maintain a smoothly functioning workplace, leaders test the current position and encourage new functions, so they are looking for long-term goals (yukl in wajdi, 2017). the massive bureaucrats and/or politicians who were hand catch operation (ott kpk) become a main problem for the indonesian citizen are currently not free from corrupt practices, and tends to increase every year. within 6 months from january¹ till june³º, 2017, indonesia corruption watch (icw) recorded 226 cases of corruption. the case with the number of the 587 suspects had cost the 35 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul ricouer analysis (hand catch operation kpk -“ott’s face”) state 1.83 trillion rupiah and the bribe 118.1 billion rupiah. (detiknews, august 30, 2017). most unique from the case of corruption from the perspective of communication, the majority of suspects spread smile when caught by the kpk. and the phenomenon of smiling and relaxed faces, became an important part to be examined, especially through the hermeneutic analysis over paul ricouer (1981). in the middle of scientific headache and conscientiousness of the massive corruption practices, it becomes part of the dark history of the nation, that is very disturbing the development, especially in realizing a prosperous and equitable society equally. the practice of corruption also shows the failure of leadership in managing the state. and for citizens who are still hoping the liberation of this country from corrupt practices, hopefully not hopeless. one interesting phenomenon, from the aspect of non-verbal communication (facial expression) of ott kpk, often showing the “smile and relax” face. for example the case of tegal’s mayor siti masitha soeparno; regent of purbalingga tasdi and member of musi banyuasin (muba) dprd who got kpk operation arrest (ott), they were “smiling” in front of journalists covering it. facial expression (non-verbal communication) a person has a very close relationship with their attitude, thoughts and behavior. body language (facial expression) is an inseparable representation of what is in the mind and heart. ii. literature review kotler (2006) introduces the concept of “promotion mix” in marketing management, now understood as “integrated marketing communication”, as in political communication science is known as the term political marketing communications. nugroho in ahmad (2012), with the entry of “management” discourse, more specifically “marketing management”, into the “communication” discourse, more specifically “political communication”, not without cost. the usual discourse in relation to the “market” way of life is more often heard in terms of “politics”. politics, which is duly related to policy making in state administration, is increasingly spelled with the usual vocabulary in the “market”. in the context of indonesian politics alone it at least raises two problems or, say, excesses. one, the politics of imaging. two, money politics. in the management of political communication, it is known that the face is the body language (face) is a representation of soul and mind that is very loaded with meaning. and through a paradigm of the (social) text it is conceived by hermeneutic philosophers who seek to “dismantle” the social texts (the ott face) that are essential to language, signs and symbols and representations that require fundamental and comprehensive interpretation. rooted in the understanding and awareness that the corrupt practices and or smile face of the ott, can only be understood through an adequate and multiinterpretive epistem (thinking), not just the reality of language as a means of communication. the public officials involved consist of both executive and legislative officials. the corruption crime data in 2007 even shows the head of the region as the dominant actors of corruption. of the 143 cases in the center of anti-corruption (trawl) study of legal faculty of gadjah mada university, 69 cases of which involve regional heads. the heads of the regions are seven governors/ex-governors, 47 regents / ex-district heads, six mayors / former mayors, six vice regents, and three deputy mayors. in addition, 31 local government officials were involved in corruption. eight of them are heads of service and two regional secretaries. dpr / dprd members involved in corruption are as many as 27 people. one interesting thing is that decentralization has triggered the birth of unaccountable and nontransparent behavior. “there are many studies available that show that decentralization promises to bring more accountability and transparency in the political process is hard to fulfill” (ionita 2005). thus, corruption is no longer seen as a crime of political elites at the central and large-scale levels, but must also have begun to be seen as a local threat on a small scale. (indiahono, 2010). paul ricoeur in saidi (2008), says “hermeneutics is the theory of the operations of understanding in their relations to the interpretation of text”. so, the key idea will be the realization of discourse as a text; and elaboration of the categories of the text will be the concern of subsequent study”. in this case ricoeur alludes to ferdinand de saussure’s linguistic theory which is compared with the hjemslev concept. saussure, in course in linguistic general (1974) distinguishes the language in the dichotomy of individual speech (parole) with the language 36 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul (hand catch operation kpk -“ott’s face”) ricouer analysis system (langue). whereas hjemslev categorizes it in scheme and usage. from this duality, according to ricoeur, the theory of discourse (discourse) was born. in the perspective of ricoeur, individual parole or speech is identical with discourse. according ricoeur, discourse is different from the language as a system (langue). discourse was born because of the exchange of meaning in speech events. the character of the event itself refers to the person who is speaking. ricoeur writes, “the eventful character is now linked to the person who speaks; the event consists in the fact that someone speaks, someone expresses himself in taking up speech” (1981). further explained that there are four elements of discourse, namely the existence of the subject that states, the content or proposition which is the world depicted, the address, and the existence of context (space and time). in the discourse there is a very complex traffic meaning. the importance of the media has been reviewed by several authors, in terms of their role in election, the reflection of power, to democracy and politics (chairiyah 2009, siahaan 2002, subiyakto 2001, subiyakto 2005). the press became one of the media for the public to oversee the running of government toward good governance. one of the actions that contra with good governance is corruption that makes government become bad governance, unaccountable and not transparent. the press is a powerful medium in the fight against corruption. “another fundamental characteristic of critics is their independence from the producers of cultural goods. critics are expected to be free to choose which work to review and to evaluate them on the basis of merit. the critic therefore has been seen as the “ideal-type” of independent actor – resistant to all forms of economic, political and religious influence” (bera in debenedetti 2006; indiahono, 2010). the reporting of corruption cases in radar banyumas was in fact still hesitant in reporting corruption cases. thus, the language used also tends to be biased and can result as if the news is pro to the corruptor. (indiahono, 2010). susan phaar in aminah ( 2006) presents four views on media politics: the media as spectators; watch-dogs; servant and as a trickster. media as a fraud, is an active participant in the political process. its main impact as a community builder, and transformed as a fraudster into a positive yaki vocabulary reflects the behavior of media that is full of goodness. frequent media behavior featuring ambiguous, hypocritical and inconsistent sides, is slippery and deceptive. many media literature in developing countries emphasizes the dominance or hegemony of state power, in which the media is used as a means of state propaganda. (phaar, 1996) iii. methods the research method used in this research is hermeneutics paul ricoeur (1981) which seeks to explore meaning and social interpretation by considering the horizon surrounding the text or picture, context and contextualization from the photo of ott kpk. by observing the horizon, it is desirable that an understanding or interpretation effort be the activity of reconstruction and reproduction of the meaning of the text, which in addition to tracing how a text is raised by its author and what content is entered and wants to be entered by the author into the text, also attempts to regenerate meaning according to situations and conditions when the text is read or understood. iii. result and discussion in this study, researchers observed 3 photographs of the many photos of the ott kpk, all of whom, relatively similarly displays a photo of a “smile and relaxed” face. language psychologists agree that a person’s facial expression (non-verbal communication) is understood to have very close relevance to the representation of his attitudes, thoughts and behaviors. body language (facial expression) is an inseparable representation of what is in the mind and heart. but in the context of the kpk otts, smiling and casual faces become attractive, because of their social situation in opposite circumstances (negative / suspect). in figures 1.2, da 3, photos of ott faces in orange clothing from kpk appear with a relaxed and smile, it is clear these photographs lead to multiple interpretations. from these pictures, you can ditasirkan various understandings and meanings, including the research informants who are experts in photo and visual as follows: (1) a relaxed smile really represents the pride and happiness of being a suspect. (2) adaya engineering or manipulation of symbols 37 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul ricouer analysis (hand catch operation kpk -“ott’s face”) that deliberately, because the media will be covered (3) it is against resistance that kpk capture is not new and “disgrace”, and it is common in bureaucracy. (4) for figure 2, the symbol of “metal”, because the urge of the situation to be more famous. because in the brain many emotions and fears, then the movement of his body is not aligned such gestures are usually demonstrated to show courage because he is right. perhaps that is the impression that tasdi wants to get from people who see his metallic gesture. (5) media ‘ politics, which deliberately build a particular opinion and is very situational. (6) the form of self-defense mechanisms of suspects, who do not want to show an expression of inferiority and shame. figure 1: mayor tegal siti masitha soeparno (wearing orange vest) finally officially detained kpk, in jakarta, wednesday (08/30/2017). kpk arrested siti masitha who was netted in a handcatching operation related to the procurement of health equipment in rsud. warta kota/henry lopulalan ( source : tribunnews.com) figure 2: regent purbalingga tasdi (center) wearing a prisoner vest after undergoing inspection at kpk building, jakarta, tuesday (5/6/2018). kpk officially arrested tasdi after netted a hand-catching operation related to alleged bribery of purbalingga islamic center project in 2018. ( source: http://pontianak.tribunnews. com/2018/06/06/kena-ott-kpk-pdip-pecatbupati-tasdi-dari-keanggotaan-partai) figure3: suspects of alleged bribery cases to dprd musi banyuasin (muba) related to lkpj report 2014 and approval of apbd of muba regency 2015 lucianty pahri (center) with riamon iskandar (left) and pachri azhari after undergoing inspection at kpk building. (jakarta, february11, 2016. source: tempo /eko siswono toyudho) facial expression (non-verbal communication) a person has a very close relationship with his attitude, thoughts and behavior. body language (facial expression) is an inseparable representation of what is in the mind and heart. even if there is an inconsistency between the words (verbal language) conveyed with body language (face), then the reader or audience will choose the real and truthful reality through expression. in the contemporary context, it turns out that the society began to be permissive and the corruption prisoners began to realize that the thermony of convicts, prisons and sentences meant with a smile. the expression of the smile of a convicted corruptor certainly gives a variety of meanings, where corruption practices in the realm of bureaucracy have occurred such a habituation. so it is considered normal and need not be sad. anecdotes that flourished in the community about the difference of officials in the era of independence with the era of reform, that officials now in power first then in prison, officials in the era of independence, imprisoned ago in power “. a happy facial expression and a shift in 38 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul (hand catch operation kpk -“ott’s face”) ricouer analysis meaning in corruption convicted cases, seems to be the case only in indonesia, where corrupt practices are not behaviors that need to be warned or feared anymore. even some people judge that corruption has been entrenched in such a way as the lifestyle of bureaucrats. even if proven and caught only considered a “bad luck” only. it is sad and apprehensive the emergence of public opinion in the contemporary context. and this sitruation seems to have social legitimacy, where the smiling figure of corrupt officials is welcomed like a hero from the battlefield. photographs are human nonverbal languages, through photo language, humans represent and reveal reality, experience, feeling, and simultaneously as a means of managing reality. the communicators, languages and psychology of languages (eg gilbert austin, francois delserte, aristotle, little john) agree that body language is the agent of one’s mind, heart and behavior. even albert mehrabian through his famous legal findings of 7% -38% -55% in faceto-face communication (7 percent writing; 38 percent of voice and 55 percent of body language), non-verbal elements (body expressions, faces) are essential to communicate feelings and attitudes, especially when there is an inconsistency: if words and body language do not fit, then people will be more inclined to believe in the language. photographs are human nonverbal languages, through photo language, humans represent and reveal reality, experience, feeling, and simultaneously as a means of managing reality. the communicators, languages and psychology of languages (eg gilbert austin, francois delserte, aristotle, little john) agree that body language is the agent of one’s mind, heart and behavior. even albert mehrabian through his famous legal findings of 7% -38% -55% in faceto-face communication (7 percent writing; 38 percent of voice and 55 percent of body language), non-verbal elements (body expressions, faces) are essential to communicate feelings and attitudes, especially when there is an inconsistency: if words and body language do not fit, then people will be more inclined to believe in the language. along with the existence of ott kpk, the suspect must wear the color “orange” which seems to be “branding” (brand) ott, and the smile that accompanies it. nothing strange or new with this ott appearance. there is no ‘fear, sadness, regret’ that there is only a “casual smile”. this is what the hermeneutics want to “dismantle”. of the seven popular hermeneutical figures (schleirmacher, wilhelm dilthey, gadamer, emilio bettie, paul ricouer and jorge j.e gracia), the author borrows paul ricouer’s mind to interpret the symbol of the “ott face” language. the social interpretation of the smiling face of ott’s face further underscores the need for a deep understanding of the existence of non-verbal communication (the face of ott) as a representation of the presence of space-time, experience and reference (history) and culture of society, become interrelated and inseparable. the positivist assumption places the “face of the ott” as a single phenomenon separate from the reader or the wider community. and often labeling (labeling theory) as a bureaucratic disease and or social disease that has causality (causality). unfortunately, it does not touch the root of the problem why the “ott face” remains massive and exists (being). positivism, seeing law as a language product (set of rules) seem to have no strength, and are no longer sufficient to be an important and central part in building human consciousness as subject to obeying it. even considered to be a single “lump” on paper alone that is far apart from the real reality. the law is no longer able to reach the full depth of human behavior (as a mere object). actually, it is now evolving into a social discourse that the higher knowledge and experience of various dictions (narratives) of law are increasingly synonymous with the naivete contained therein. instead of people who are far and away from the understanding and awareness of the importance of the law. and the other is the opposite, where the social “social” ott face, which gains social legitimacy as well. then an anecdote emerges that the law is made to be “engineered and / or violated”; in some cases, the law is identical to a single transaction “direct economic value” (a certain amount of rupiah or position). the capitalization and / or commercialization of the law is inevitable as a social phenomenon. and the “ott face” is increasingly asserted as part of multiple interpretations and / or into the practice of symbiotic mutualism between the parties involved. and the real meaning of “ott face” is increasingly hidden behind the language text as 39 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul ricouer analysis (hand catch operation kpk -“ott’s face”) a collective representation. it is now evolving into a social discourse that the higher knowledge and experience of various dictions (narratives) of law are increasingly synonymous with the naivete contained therein. instead of people who are far and away from the understanding and awareness of the importance of the law. and the other is the opposite, where the social “social” ott face, which gains social legitimacy as well. then an anecdote emerges that the law is made to be “engineered and / or violated”; in some cases, the law is identical to a single transaction “direct economic value” (a certain amount of rupiah or position). the capitalization and/or commercialization of the law is inevitable as a social phenomenon. and the “ott face” is increasingly asserted as part of multiple interpretations and / or into the practice of symbiotic mutualism between the parties involved. and the real meaning of “ott face” is increasingly hidden behind the language text as a collective representation. in this case, paul ricoeur’s thoughts become relevant, that in a cooler and clearer way, ricoeur attempts to reflect back on fundamental issues in the text and context of “ott face” as part of a social text that requires various approaches from phenomenology, linguistic theory, semiotics, theory of discourse, and psychoanalysis. and at some point, the smiling face of “ott” becomes a social praxis and/or a symbol of power/biocracy no longer strange and ordinary as a pragmatic reality in society, which is historic and / or entrenched, is increasingly inevitable. iv. conclusions getting out of failure the failure of a single interpretation of the “ott face”, a comprehensive epistem (tradition of thought) is needed that breaks down the root of the problem. the smiling “ott face” is not just a series of “happy” and or “ordinary” words or signs, but requires a conscious and moralbased interpretation of power. and what is needed as a solution, not just an approach to legal formalities, but how law becomes a fundamental need as a symbol of a language of truth that is understood. agreed and shared equitably and perceived by all human subjects. not just the level of discourse, but the need for adequate dialectical thinking space, because “ott face” is a representation of a society that has a plurality of meaning as part of the expression of human life and experience. history records that the tradition of tribute, bribes, commissions, lubricants, etc., still becoming important part in the social formula of human life. as long as we do not intend or dare to open the meaning behind the social “mask” over the text of “ott’s face” itself through understanding as the “way of being” and or the “being” of the whole human being as dasein (its history, ideals and style of appearance). references [1] ahmad, nyarwi (2012). manajemen komunikasi politik dan marketing politik. yogyakarta: pustaka zaman [2] aminah, siti (2006). politik media, demokrasi dan media politik. masyarakat, kebudayaan dan politik. jurnal unair. tahun xix, no.3 juli 2006: 35-46 [3] dwiyanto indiahono (2010). media pers lokal melawan korupsi. masyarakat, kebudayaan dan politik 23 (2). 95-101 [4] kotler, phillip & kevin lane keller (2006). marketing management, 12th edition. prentice hall [5] chairiyah, s (2009) hubungan antara jenis media yang digunakan dalam pemilu 2004 dengan perilaku memilih. masyarakat, kebudayaan dan politik 22(1):67–75. [6] debenedetti, s (2006).the role of media critics in the cultural industries. international journal of arts management. abi/inform global 8 (3):30. [7] ionita, s (2005). money for our people? decentralisation and corruption in romania: the cases of the equalisation, infrastructure and pre-university education funds. public administration and development. public admin. dev 25:251–267. [8] ricoeur, p. (1981). hermeneutics and the human sciences, essays on language, action and interpretation. cambridge. cambridge university press. [9] saidi, acep iwan (2008). hermeneutika, sebuah cara untuk memahami teks. jurnal sosioteknologi. 13(7):376-382 [10] siahaan, h (2002) refleksi kekuasaan dalam pemberitaan media cetak: analisis isi berita 40 sinergi, volume 8 number 2 september 2018 suwandi sumartias1), nurtyasih wibawanti ratna amina2) social interpretation of “wajah ott” in political communication management context of paul (hand catch operation kpk -“ott’s face”) ricouer analysis utama [11] pemilu 1999. masyarakat, kebudayaan dan politik 15(3):1–10. [12] subiyakto, h (2001) sistem media yang demokratis untuk indonesia baru. masyarakat, kebudayaan dan politik 14(1):61–80. [13] subiyakto, h (2005) konsentrasi media massa dan melemahnya demokrasi. masyarakat, kebudayaan dan politik 18(1):93–104. [14] wajdi, moh. barid nizarudin (2017). the differences between management and leadership. sinergi 7 (2): 75-84 [15] http://www.suaramerdeka.com/harian/0712/29/ nas09. htm. (2008). diakses tanggal 27 maret 2008. [16] http://pontianak.tribunnews.com/2018/06/06/ kena-ott-kpk-pdip-pecat-bupati-tasdi-dari keanggotaan-partai) [17] http://radarbanyumas.indonetwork.co.id/profile/ harianradar-banyumas.htm (2008). diakses tanggal 23 juni 2009 43 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan 1)antoni bastian, 2)sugito, 3)kerinus hati wau, 4)nastiti wahyuningsih, 5)lincaria sutismawati sirait abdi gusti theological seminary, nganjuk email : antoni@sttabdigusti.ac.id sugito@sttabdigusti.ac.id kerinus@sttabdigusti.ac.id nastiti@sttabdigusti.ac.id lincaria@sttabdigusti.ac.id submit : 05th march 2019, revised : 10th march 2019, accepted : 25th march 2019 abstract this study examines the influence of advertising stars, brand image, and brand awareness against intention to buy honda vario motor in pasuruan. the purpose of this research is to know the direct and indirect correlation between the influence of advertisement star to brand image and brand awareness. the results show that the indirect effect on brand awareness is mediated by brand image. honda vario brand image is so strong that it can increase the value contained in the product. companies must use variables and do different strategies so that their products become more desirable in the market. keywords: ad stars, brand image, brand awareness background msuccess and failure in sales can be seen from product purchases made by consumers in pasuruan. if the number of sales increases, there are many consumers in pasuruan who purchase these products, and vice versa if there is a decrease in sales, the purchasing decisions made by consumers in pasuruan also decline. from sales data obtained from adira finance, vario’s products experienced a decline in sales from several periods. this indicates problems occur in the process of purchasing decisions made by consumers in indonesia. although honda became the market leader for motorized vehicles in pasuruan, it turned out that it was not followed by vario products. as well as data on sales of honda matic motorcycles in pasuruan in 2016 as follows: from the phenomenon that occurred, where the honda vario index is still below the average, of course there are factors that cause it. therefore, pt. astra honda motor (ahm) as the company that became the owner of honda motorcycles tried to do promotions through advertisements by “attracting” famous artists agnes monica and daniel mananta. these advertisements are intended to increase the sales of vario motorbikes, with the existence of advertising messages that are closely related to the brand or company intimacy, imaging itself is related to the consumer aspects in the consumer understanding structure. imaging also relates to the concept of positioning 44 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan about how a particular impression or certain image of the product, or company, so it must be able to get a place in the structure of memory. based on the background above, a problem can be formulated that can be used as a research, namely: 1. is there a significant influence on the advertising star on the purchase intention of honda vario motorcycle consumers in pasuruan? 2. is there a significant effect of brand image on the purchase intention of honda vario motorcycle consumers in pasuruan? 3. is there a significant effect of brand awareness on the purchase intention of honda vario motorcycle consumers in pasuruan. literature review marketing management according to suparyanto & rosad (2015: 1) marketing management is the process of analyzing, planning, managing, and managing programs that include conceptualization, pricing, promotion and distribution of products, services and ideas that are designed to create and maintain profitable products with target market to achieve company goals. kotler & keller (2009: 5) defines marketing management as the art and science of choosing market targets and achieving, maintaining, and growing customers by creating, delivering and communicating superior customer value. marketing management is a process carried out to analyze, plan, coordinate programs that benefit the company, and can also be interpreted as the science of choosing market share in order to create superior customer value. marketing mix according to kotler in situmorang (2011: 158) defining a marketing mix is a tactic in integrating offers, logistics, and communication of products or services of a company. marketing mix can be grouped again into two parts, namely offerings in the form of product and price, as well as access in the form of placement promotion. in general, the marketing strategy of education services is applied in the context of education institutions as a whole, not only requires external marketing, but also internal marketing to motivate lecturers / teachers or employees of interactive marketing and marketing to create service provider expertise. marketing in education produces student satisfaction and welfare stakeholders of education institutions in the long run as the key to profit. (kotler and keller, 2009,96). product products are an important element in a marketing program. product strategies can influence other marketing strategies. purchasing a product is not just to own the product, but also to meet the needs and desires of consumers (buchari alma and ratih hurriyati, 2008, 153-154). service products consist of core products and a series of additional elements. core products that address customers’ primary needs, and a series of supplementary service elements that simultaneously strengthen product value-added, to help customers use core products more effectively. (christopher lovelock et al., 2010, 25) to plan offers or products, marketers need to understand the product level, which is as follows: 1) the main / core product, which is the actual benefit needed and will be consumed by the customer of each product. 2) generic products, which are basic products that are able to fulfill the most basic product functions (minimal product design to function). 3) expected products, which are formal products offered with various attributes and conditions that are reasonably expected and agreed to be purchased. 4) complementary products (augmented product), namely various product attributes that are equipped or supplemented by various benefits and services, so that they can provide additional satisfaction and can be distinguished from competing products. 5) potential products, which are all kinds of additions and changes that might be developed for a product in the future. (alma and hurriyati, 2008, 156). price according to sumarni and soeprihanto (2010: 281) prices are, “the amount of money (plus several products if possible) is needed to get a number of combinations of goods and their services”. after the product is ready to be marketed, the company will determine the price of the product. 45 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan place according to (kotler in raturi & parekh, 2012) “consumer behavior occurs when consumers are stimulated by external factors based on their personal characteristics”, which means consumer behavior occurs when consumers are influenced by external factors and subsequently purchasing decisions based on characteristics consumers and decision making processes. factors that influence purchasing decisions include the selection of products, brands, sellers, time and amount. several factors form purchase intention and consumer purchasing decisions according to kotler and keller (2009: 189), namely: 1. the attitude of others, the extent to which the attitudes of others reduce a person’s preferred alternative will depend on two things, namely, the negative attitude of others towards alternatives that are preferred by consumers and the motivation of consumers to comply with the wishes of others. 2. factors that are not anticipated, this factor will later be able to change the customer’s position. this depends on the customer’s own thoughts, whether he is confident in deciding whether to buy an item or not. effect of using stars in ads on buying intention according to tatik suryani (2013: 171) using artists to promote products is seen as having a strong influence due to their popularity in society. marketers usually choose artists who are popular and admired by the target audience who are the target market. still in his book, tatik suryani explains that celebrity credibility has an important role in creating a good perception of the product or brand advertised, so that it has an impact on purchase intention on a product. based on the purpose of the research conducted by sushil raturi and vikram parekh (2012), that is to know the effect of national brand attributes on consumer purchase intentions. this quantitative study focused on the influence of quality, celebrity support, price, and national brand prestige on consumer purchase intentions. also indicates that the use of celebrity support can influence consumers’ intention to buy a product. effect of brand image on buying intention in the study of mohammad reza jalilvand and neda samiei (2012), it was explained that brand image is strongly influenced by e-wom which then as a result will affect consumers’ intention to buy. the purpose of the study was to find out the direct effect of e-wom on consumer purchase intentions and also the direct influence of brand image which would also influence consumer purchase intentions. attributes are descriptive features that characterize a brand, like what consumers think about the brand and what is involved with the purchase. bian and moutinho in reza (2015) examined the impact of brand images that influence product involvement and knowledge of products directly or indirectly on consumer purchase intentions of counterfeit goods. the results of these studies indicate that brand image is not a mediation that influences involvement or knowledge about the product in the consumer’s intention to buy. effect of brand awareness on buying intention in mariam’s research tahira et al. (2011) shows that there is a significant relationship between brand awareness and consumer intention to buy a product. amir gulzar et al. (2011) argue that “high brand awareness can influence the retailer or reseller purchase decision” which means that high brand awareness will affect retailers or resellers to decide to buy. the research examined the relationship between the brand awareness, perceived quality and loyalty to purchase intentions. the results showed a non-significant effect between brand awareness and loyalty, while a significant impact was perceived quality towards profitability. framework based on the background, problem formulation, and research objectives, the flow of relationship quality that will be examined, can be described through a framework as follows: research hypothesis 46 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan based on the formulation of the problem, previous research, and the theoretical basis, the hypotheses raised in this study are as follows: h1 : there is a significant influence on the use of advertising stars on the intention to buy a honda vario motorbike in pasuruan. h2 : there is a significant effect of brand image on the intention to buy a honda vario motorbike in pasuruan. h3 : there is a significant effect of brand awareness on the intention to buy a honda vario motorbike in pasuruan. research methods research design the research objective in this research design is to test the hypothesis. according to uma sekaran (2011: 154) hypothesis testing explains the nature of a particular relationship, or determines differences between groups or independence two or more factors in a situation. this research is a cross sectional study. according to maholtra (2009: 95), cross sectional is the collection of data about a predetermined sample of population elements only once. based on the method of data collection, this study uses a questionnaire method. the questionnaire method is a list of written questions that have been formulated previously that the respondent will answer, usually in clearly defined alternatives. operational definition and variable measurement based on the identification of the above variables, the operational definitions of advertising stars, brand image, brand awareness and purchase intention are as follows: operational definition the operational definitions of the variables analyzed in this study include the independent variables (x) and the dependent variable (y) which have a causal relationship as follows: a. independent variables 1. advertising star (x1) advertising stars are the use of people who have high attraction and are known in the community through their appearance in the media, in this case television to become an icon of the company in an effort to introduce its products. 2. brand image (x2) brand image is a collection of perceptions and beliefs held by consumers of a brand that are interrelated and inherent in the minds of consumers. 3. brand awareness (x3) brand awareness is the ability of consumers to recognize and recall a brand in various conditions in a particular product category. b. dependent variables 1. buy intention (y) buying intention is a thought process that forms a perception of the consumer’s desire to reflect on the plan to buy a product with a particular brand when it will meet their needs. samples and sampling techniques the sample in this study was motorcycle consumers in pasuruan, while the sampling technique in this study used nonprobability sampling using judgment sampling techniques. the judgment sampling technique is that researchers use considerations based on certain criteria to be truly in accordance with the research conducted. population members will be selected by the researcher. thus, no other population to be sampled is beyond the consideration of the researcher. respondents must have certain criteria, while the sample criteria in this study are: 1. minimum age 17 – 45 years. 2. consumers who buy honda vario motorbikes. 3. residing in pasuruan. according to rosady ruslan (2010: 149) the larger the sample is taken, the smaller the possibility of wrong conclusions occurs about the population, and rusady ruslan said that for research that uses data analysis with statistics, the smallest sample size is 30 subjects / objects, but other research experts assume that the minimum sample size is 100 of the most appropriate subjects / objects. based on these considerations, the questionnaire to be distributed is 100 questionnaires. data analysis technique descriptive analysis is an analysis carried out by a researcher in the field that relates directly to the respondents under study. this analysis is useful to describe the results of research related to the 47 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan respondents of the study with the variables studied. descriptive analysis in this study was carried out using spss19 software. analysis of multiple linear regression according to ghozali (2011: 144) multiple regression equations are regression equations using two or more independent variables. the general form of multiple regression equations can be formulated as follows: y = α + β1x1 + β2x2 + β3x3 + e information: 1. y is the dependent variable 2. α is a constant coefficient 3. x1 is the first independent variable 4. x2 is the second independent variable 5. x3 is the third independent variable 6. e is an error hypothesis testing simultaneous test (test f) according to imam ghozali (2011: 98) the f test is used to show whether all the independent or independent variables included in the model together have an influence on the dependent or dependent variable. the null hypothesis (h0) that is to be tested is whether all parameters in the model are zero, or: h0 : b1 = b2 = …………... = bk = 0 that is, whether all independent variables are not significant explanations of the dependent variable. the alternative hypothesis (ha) is not all parameters simultaneously equal to zero, or: ha : b1 ≠ b2 ≠ ……..….. ≠ bk ≠ 0 this means that all independent variables simultaneously are significant explanations of the dependent variable. to test this hypothesis f statistics are used with the following decision-making criteria: 1. if the value of f is greater than 4 then h0 can be rejected at a significant level α = 5% or 0.05. in other words accept the alternative hypothesis, which states that all independent variables simultaneously and significantly affect the dependent variable 2. comparing the value of f count with f table. if f count is greater than f table, then h0 is rejected and accepts ha. partial test (t test) according to imam ghozali (2011: 98) t test is used to see or test whether the independent variables partially (individually) have an influence on the dependent variable. the null hypothesis (h0) to be tested is whether a parameter (bi) equals zero, or: h0 :bi = 0 this means whether an independent variable is not a significant explanation of the dependent variable. the alternative hypothesis (ha) parameter of a variable is not equal to zero, or: ha : bi ≠ 0 that is, the variable is a significant explanation of the dependent variable. the way to do the t test is as follows: 1. if the degree of freedom (df) is 20 or more, and a significant level of α = 5% or 0.05, then h0 which states bi = 0 can be rejected if the value of t is greater than 2 (in absolute value). in other words accept the alternative hypothesis, which states that an independent variable individually affects the dependent variable. 2. comparing the value of t statistics with the critical point according to the table. if t count is greater than t table, it means accepting the alternative hypothesis which states that an independent variable individually affects the dependent variable. analysis and discussion statistical data analysis based on the results of calculations that have been obtained using the spss 20 for windows program, the following data are obtained: results of analysis of regression determination the coefficient of determination (r2) in the study is used to measure and identify how strong the influence of the use of celebrities in advertising, brand image, and brand awareness has a positive influence on the intention to buy (y) honda vario motorcycle consumers. for more details, can be seen in table 4.5 below: results of analysis of the determination coefficient (r2) 48 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan based on the calculation results with the help of the spss program, it can be seen that the r2 obtained is 0.765 or 76.5%. this number means that the intention to buy honda vario motorcycle consumers is influenced by factors of the use of celebrities in advertising (x1), brand image (x2), and brand awareness (x3) of 76.5%, while the remaining 23.5% is influenced by other factors or variables outside of this study. hypothesis testing in testing the hypothesis this research is done by testing both simultaneously (f test) and partially (t test): test f in the f test, it is stated simultaneously that the variable use of celebrities in advertising (x1), brand image (x2), and brand awareness (x3), has a simultaneous and significant positive influence on the purchase intention (y) of honda vario motorcycle consumers. this can be seen from fcount 46,648 which has a value greater than ftable 2, 46. t test from the table above can be explained as follows: 1. value tcount the use of celebrities in advertising (x1) against purchase intentions (y) of 1.762, greater than ttable 1.66, this indicates acceptance of h1 which states there is a positive and significant influence of the use of celebrities in advertising (x1) on intentions buy (y) honda vario motorcycle consumers. 2. at the tcount value of the brand image (x2) against the purchase intention (y) of 2.611, greater than ttable 1.66, this indicates the acceptance of h1 which states there is a positive and significant influence of brand image (x2) on purchase intention (y) honda vario motorcycle consumers. 3. value of tcount brand awareness (x3) to purchase intention (y) of 2.524, greater than ttable 1.66, this indicates h1 acceptance which states that there is a positive and significant influence of the brand awareness dimension (x3) on the purchase intention (y) of honda vario motorcycle consumers. discussion 1. with the significance value of the use of celebrities in advertisements (x1) of 0.048 smaller than the predetermined level of significance of 0.05, it can be concluded that the variable usage of celebrities in advertising (x1) has a significant effect on consumer intention (y) of motorcycle consumers honda vario, because the public’s response to the advertisement stars that were used as icons on honda vario motorbikes could attract consumers to buy honda vario motorbikes. these results are not in accordance with previous studies (sushil raturi and vikram parekh, 2012) which state that there is no influence of stars on consumer purchase intention. this indicates that the purchase intention of consumers by looking at honda variom motorcycle advertising stars has contributed to the promotion of honda vario motorcycle products. 2. with brand image significance value (x2) of 0.010 smaller than the predetermined level of significance of 0.05, it can be concluded that the brand image variable (x2) has a significant influence on the purchase intention (y) of honda vario motorcycle consumers, because honda vario motorcycles have a good brand image model and are strong on engine parts 49 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan and not easily damaged. these results support previous research (mohammad reza jalilvand, nedasamiei, 2012) which states that there is a positive effect of e-wom on brand image, e-wom has a strong positive influence on consumer purchase intentions, and brand image can influence consumer purchase intentions. this indicates that consumers have an interest in distinguishing honda vario motorcycles from other brands so that the impression of a strong brand image in the minds of consumers about honda vario motorcycles tends to have good products and better quality. 3. with a significance value of brand awareness (x3) of 0.013 smaller than the predetermined level of significance of 0.05, it can be concluded that the variable brand awareness (x3) has a significant influence on the intention to buy (y) honda vario motorcycle consumers, because honda vario motorbike has more speed, selling power is still good if it will be sold again. these results support previous research (nazia yaseen, mariam tahira, 2011) which states that brand awareness can affect consumers’ purchase intentions. this indicates that consumers have an interest in differentiating honda vario motorcycles from other brands so that the impression of strong brand awareness in the minds of consumers arises about the assessment of honda vario motorcycle consumers who tend to have better quality. conclusion 1. analysis of regression coefficients can be concluded that the independent variable has a positive relationship to the dependent variable. while the coefficient of determination (r2) concluded that the intention to buy (y) consumers of honda vario motorbikes was influenced by ad star factors, brand image, and brand awareness. 2. distribution of data for independent variables in the f test can be concluded that has a simultaneous influence on the intention to buy (y) honda vario motorcycle consumers. 3. then from the results of the hypothesis by using the t test stated that the independent variables such as bintang ad (x1), brand image (x2), brand awareness (x3) each have a partial and significant influence on the buyer’s intention (y) of motorcycle consumers honda vario. research limitations 1. factors that influence purchase intention in this study only consist of three variables namely ad star, brand image, and brand awareness, while there are still many other factors that influence purchase intention (y) honda vario motorcycle consumers. 2. the limitations of research by using samples that have been chosen by researchers and not choosing other samples are beyond the consideration of researchers. suggestion 1. from the brand imaging process made by the owner company regarding honda vario motorcycles to consumers, it is expected to improve imaging in addition to through celebrities displayed in the advertisement, it is also expected to be able to provide imaging in terms of products owned. 2. regarding the brand image and those given by the owner company, it is expected that consumers really get a product that fits consumer expectations of honda vario motorbikes. 3. regarding brand awareness possessed by consumers is a desire of consumers so consumers can enjoy the excess value of honda vario motorbikes. 4. then the intention of buying consumers is expected to be truly realized so that honda motorcycle consumers can use honda vario motorcycle products comfortably. aaker, david. 2011. managing brand equity: capitalizing on the value of a brand name. the free press. new york. davis, d. 2009. corporate reputation and competitiveness, routledge, london. imam ghozali. 2011. aplikasi analisis multivaliate dengan program ibm spss 19 (edisi kelima). semarang. universitas diponegoro. aditya typewritten text references 50 sinergi, volume 9 number 1 march 2019 antoni bastian1, sugito2, kerinus hati wau3, nastiti wahyuningsih4, lincaria sutismawati sirait5 the influence of advertising stars, brand image, and brand awareness on the intention to buy honda vario motorcycles in pasuruan hossien, emari. 2011. determinant of brand equity : offering a model to chocolate industry. journal word academy of science. vol. 59. jalilvand, m reza dan neda samiei, 2012, ’the effect of electronic word of mouth on brand image and purchase intention (an empirical study in the automobile industry in iran)’, journal marketing intellegence & planning, vol. 30, no. 4, hal. 460 – 476. jogiyanto, h.m. 2011. metodologi penelitian bisnis. edisi keempat. bpfe. yogyakarta. kasmir, 2008. bank dan lembaga keuangan lainya, jakarta: pt. raja grafindo persada kotler. philip dan keller, kevin lane. 2009. “manajemen pemasaran, jilid satu edisi 13”, erlangga, jakarta. kotler, philip dan armstrong, gary. (2011). 10th edition. “marketing an introduction”. indonesia: perason. khan, et al. 2012. determinant of customer satisfaction in fast food industry. international journal of management and strategy. 3, 1-15. malhotra, n.k., 2009, riset pemasaran, edisi keempat, jilid 1, pt indeks, jakarta. pratama, aldino reza. 2015. pengaruh international citra merek dan kualitas produk terhadap keputusan pembelian (studi terhadap pengguna laptop macbook merek apple di jakarta, bandung, semarang, surabaya, dan malang). jurnal administrasi bisnis (jab)|vol. 23 no. 1 juni 2015. semarang: universitas brawijaya raturi, sushil dan vikram parekh, 2012, ’the impact of national apparel brand attributes on customer purchase intention’, sies journal of management, vol. 8, issue 2. ruslan, rosady. 2010. manajemen public relations&media komunikasi. jakarta: pt raja grafindo persada. shukla, s.p. 2011. investigation in to tribo potential of rice husk (rh) char reinforced epoxy composite. thesis. rourkela: national institute of technology rourkela. sekaran, uma. 2011. research methods for business. edisi i and 2. jakarta: salemba empat. suryani, tatik. 2013. perilaku konsumen di era internet. yogyakarta : graha ilmu. tjiptono fandy. 2011.” pemasaran jasa”, bayu media, jakarta. tjiptono,fandy dan chandra, g. 2011. “service, qualitiy satisfaction”. yogyakarta : andi offet. xiao tong and jana hawley. 2009. measuring customer-based brand equity : empirical evidence from the sport wear market in china. jurnal of product & brand management. 18/4 (2009) 262-271. yaseen, nazia., tahira, mariam., gulzar, amir., anwar, ayesha. 2011. impact of brand awareness, perceived quality and customer loyalty on brand profitability and purchase intention: a resellers’ view. interdiciplinary journal of contemporary research business. vol. 3, no. 8. 1 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java 1)sri handini, 2)sukesi, 3)hartati kanty astuti economics and business faculty dr. soetomo university surabaya email : sruhandini321@gmail.com submit : 20th october 2018, revised : 22nd february 2019, accepted : 15th march 2019 abstract the purpose of this study is to depict the effectiveness of umkm center management model in coastal areas in east java. it is eventually hoped that the model can be applied by umkm players and other parties involved in the development of umkm centers to improve the effectiveness of management application. this management model is related to human resource management, production management, marketing management, financial management, and business legality. the measurement uses a likert scale based on the results of the scores to determine whether or not the umkm center management model is effective. this study is a descriptive one by combining quantitative methods. the sample technique used is purposive sampling. this study uses a survey method that aims to obtain information about the number of respondents who are considered to represent a particular population. two main types of data collection techniques are employed: questionnaires and interviews. keywords: umkm center, coastal community, umkm management model i. introduction the eastern and northern coastal areas in east java are coastal areas having enormous economic potential. however, they are unfortunately still not optimal in their contribution to the welfare of their citizens. this is caused by various obstacles related to the characteristics of the community. open business opportunities are very broad, yet the role is still not optimal in leveraging the economy of the citizens located in the coastal areas. five cities that have coastal areas to the east and north of east java include the cities of sidoarjo, surabaya, gresik, lamongan, and tuban with stretches of coasts from the eastern tip of sidoarjo to the northern end of the cities of lamongan and tuban. managing coastal areas that have been regulated by both the central and regional governments requires us to provide a solution for community empowerment and to increase welfare for coastal communities by forming umkm centers in coastal areas. improving a community welfare requires a management that is in accordance with the characteristics of the community. good management of business functionalities will have an impact on business effectiveness. umkm business actors need to have management skills so that they have broad insight in their business management. factors determining the success of the development of umkm in coastal areas include human resources, production, marketing, finance and legality, and technology and information enabling more wide access. so far the quality of human resources in the umkm business sector in coastal areas is still very low. this is indicated by the products produced, product quality, ability to develop 2 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java products, market products, capital in business, and the legality of the business carried out. several studies on umkm have not touched the local government, academics, or other institutions, even though umkm business actors are one element of the economy that needs support from all parties, and the results of research should be applied to promote the economy, and empower the surrounding communities which can in the long run improve welfare. 2. literature review 2.1 umkm umkm is defined based on criteria and characteristics that can be in the form of the number of workers employed, the amount of capital and turnover of the activities produced. umkm can also be defined based on its characteristics, such as business scale, technology used, organization and management, market orientation, and so on. after the enactment of law number 20 of 2008, the definition of umkm has been changed as presented below: 1. micro businesses are productive businesses owned by individuals and/or individual business entities that meet the criteria for micro-enterprises. 2. small business is a productive economic business that is independent, carried out by individuals or business entities that are not subsidiaries or not branches of companies owned and controlled directly or indirectly by part of a medium or large business. 3. medium business is a productive economic enterprise that is independent, carried out by individuals or business entities that are not subsidiaries or branches of companies owned, controlled, or become part of small businesses or large businesses with a net wealth or results either directly or indirectly. 2.2 umkm management some of the main components of management in umkm include the followongs: 1. management generally, umkm (especially micro or small businesses) does not distinguish various problems existing wit hin the company with a variety of personal problems, especially those involving ownership, financing, and company profits. both are often mixed up so various management functions in running a company are not carried out properly with regards to planning, organizing, activating, and controlling. with these conditions, it is certain that business activities do not go as expected. 2. production and marketing in addition to the inability to manage the company (namely, low management skills), the problem that often prevents umkm from developing is the limited functions of the company, especially in production and marketing. commonly, the problems faced by umkm regarding production and marketing include the followings: a. there is no continous access to quality sources of raw materials. sometimes, umkm use quality raw materials, but often they also use raw materials that do not meet production standards. b. the production process is simple and does not meet the standards. it therefore has an impact on low quality. the bread production process which for example uses hands (not a machine) has an impact on unhygienic products so the products do not last long. c. lack of attention to values that can provide a sense of satisfaction for customers. for example, it is tasteless, and it has unusual size, unattractive color, no brand, and so on. d. limited ability to promote so the products are not known in the market. this has an impact on the low ability of umkm to compete in the market. consumers who are already interested in certain umkm products eventually have interest in other products that are able to meet their needs and expectations. e. the tendency to control a limited market as a result of the weak ability to compete with large companies that have better production and distribution systems. f. umkm is less able to read market opportunities because of the tendency 3 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java of consumers to know more complete information about products and companies. as a consequence, the products offered are frequently not in accordance with the wishes and expectations of consumers in the market. g. product stability and continuity for market demand fulfillment is not well maintained, so when consumers are in need of the products, the products are not available on the market. 3. finance besides production and marketing, the problem in a company’s function is associated with finance. the problem most often faced by umkm concerns finance which includes the following four main issues: a. lack of working capital to support company activities, especially to increase production volume and marketing costs. b. lack of knowledge about ways to access financial resources, especially kur channeled by banks, while microfinance institutions (mfis) and people’s credit banks are not available in their working areas. in addition, banks are generally not willing to increase the loaning for small amounts because there are no assets that can be used as guarantee for loans to the banks. c. lack of financial records, so profits in business are often not taken into account. if the business is profitable, the profit is often consumed. in fact, it is not uncommon for the income earned to be considered as an advantage even though among the intended benefits, there is capital used for consumption. if this happens, the company’s activities will be disrupted and not infrequently, the volume of business activities will eventually decrease or there are fewer activites. the consequences are quite fatal – it can later affect the termination of the company’s activities. 4. law the most basic legal aspect for umkm is the legality of business entities. most umkm in indonesia, especially small and micro enterprises, is not legal entities. under these conditions various matters relating to third parties will be difficult to implement. for example, the relationship to the bank to obtain a capital loan and patent rights on the packaging product brand and so on will not go on smoothly. indeed, umkm business development must be supported by institutional establishment. if this is not done, it will be difficult for umkm to expand its businesses, one of which is the aspect of market capital. umkm in the city or village often does not have the elements of business planning. it even carries out something just by chance because there was no formal work done so there was absolutely no knowledge. there was no understanding of running the business, either. according to sutrisno (2006), umkm business actors need to have management knowledge in order to possess the flexibility of insight in their business management. the factors required for the successful implementation of management knowledge strategies are pointed out below: a. scanning. this is related to the company’s environment. b. business conditions and practices. this is the issue of whether the company collects information and knowledge about business conditions and practices outside the company. c. operations of its competitors. this concerns the strategy whether the company understands the internal workings or operations of the company compared to its competitors. d. considerion on taking knowledge as assets. e. corporate culture oriented knowledge. a typical issue is that corporate culture needs to be created so that innovation becomes entrenched in the company. f. management of assets. companies face the fact that they need management of assets knowledge for important investments in the form of labor, networks, and information and systems knowledge. tambunan (2002 in bismala, 2016) points out that the characteristics a remarkable umkm include 4 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java the followings: good quality human resources, optimal use of technology, ability to perform efficiency, increased productivity, ability to improve structured quality, adequate capital resources, broad business networks, and entrepreneurial spirit. basically managing umkm requires high creativity, a great spirit of not giving up quickly, taking risks, and always trying to expand its business. the umkm business has a very large opportunity and has high competitiveness; therefore, umkm business actors are required to have a solid management skill in running their business. thus, a coastal zone-oriented management center model is in need. 3. research method 3.1 research design this research used a descriptive approach by combining quantitative methods. wirartha (2006) states that descriptive research is a research that attempts to reveal a problem, situation, or event and that it is fact finding. while sugioyono (2016) puts forward that descriptive research is a type of research that seeks to describe phenomena or relationships between phenomena that are systematically and accurately examined. this study used a survey method which aims to obtain information from the number of respondents who were considered to represent a particular population. there were two main types of data collection, namely questionnaires and interviews, which are as argued by silalahi (2009:293) used for survey methods. this study engaged samples from one population and used questionnaires as the main data collection tool. questionnaire or questionnaire method is a series of questions that are arranged systematically, and sent to be filled in by respondents (bungin, 2005:133). the sampling technique used in this study was purposive sampling. in purposive sampling, it is only based on the consideration of the researchers who take the desired elements that are already available in the sample involved. the consideration of researchers using purposive sampling in this study includes the followings: 1) the respondents in this study were considered to have almost the same characteristics; 2) the respondents in this study had an average of over 5 year business experience; 3) the respondents in this study were taken from several umkm centers in five regions in east java province. 3.2 research location the research locations cover five sub-districts, namely: tuban, lamongan, gersik, sidoarja, and surabaya. of the five research locations, the researchers took one sub-district each. to be precise, the following locations are covered: 1) lerang kulon village of palang tuban sub-district, 2) brondong village, brondong sub-district of lamongan, 3) mud village of gersik subdistrict, 4) bulak village, kenjeran, sub-district of surabaya, 5) tambak cemandi village, waru sidoarjo district. 3.3 data collection technique the following techniques of collecting the research data are employed: 1. a closed questionnaire. it is a questionnaire that is designed in such a way to record data about the situation experienced by the respondents. then all alternative answers that must be answered by the respondents are listed in the questionnaire (bungin, 2005:133). 2. in-depth interview. it is conducted to obtain a complete picture of the various economic potentials, opportunities and challenges faced by women in carrying out their activities in productive business groups. 3. focus group discussion. this technique is carried out by involving informants cognitively and emotionally in a discussion forum. in this study focus group discussion was directed to provide opportunities for obtaining perception with the consideration that women’s productive business groups had unique characteristics. most often they had to be able to work together among members to conduct business while they were still required to carry out their duties as housewives – the condition which could relatively reduce their chance for doing business to the maximum. this technique was used to obtain data about their views, perceptions, and attitudes as women entrepreneurs, as well as the obstacles they faced in running a productive and independent business group independently. this discussion was carried out with the chairman and members of productive business groups, community self7 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java the object of the research – amounting to 90.52%. the perception value of this effective management model is very high. therefore, programs related to management development and other related aspects on business managerial are very appropriate. they need to be implemented in the umkm center for the development of umkm in coastal areas in order to improve the competence of business people to carry out their business activities independently. the management models are carried out very precisely and needed by umkm business actors in coastal areas in those five cities or regencies in east java by considering the aspects of human resource management, aspects of production management, aspects of marketing management, aspects of financial management, and aspects business legality. training method, location of training, delivery of training, training material, training participants, training orientation involving the participation of stakeholders in order to collaborate and synergize the training program activities have been available to them. all of these elements are needed so that the benefits for umkm in coastal areas will be great as a result of carrying out their business or business activities. we need to know that each stakeholder (college, department of cooperatives and umkm, local government and other related agencies in the bureaucracy, business circles, banking institutions, other formal institutions, as well as business groups and associations) has different training program activities with different orientations. in addition, if we can synergize this together, the existing training programs will become more beneficial for umkm business actors in coastal areas. the analysis on item number nine in the questionnaire shows a score of 95.6% (see table 2 above). this indicates that the method of direct assistance at the business location of umkm entrepreneurs in the management training program is very desirable. the direct assistance method is perceived necessary for umkm entrepreneurs in the umkm centers in those five cities or regencies in east java. based on table 3 above, it can be interpreted that the formulation of the management model – which is physical oriented – of umkm in the coastal areas in east java is necessary for improvement. their physical condition ought to be made better in the management of umkm business operators in those five cities or districts in east java (surabaya city, sidoarjo district, gresik district, lamongan district, and tuban district). the perception of the respondents as business actors in the umkm centers which become the object of this study is feasible enough to be implemented. it is indicated by 89,09% – the average value of the respondents’ perception. the perception value of this effective management model is quite high; therefore, the management programs and other physical development among others infrastructure, place and location of business in each location of the research objects need considering. the development of a coastal-oriented umkm management model in order to improve competencies related to the development of physical management needs to 8 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java be directed to bring about comfort. in addition, all infrastructure facilities should be secured to meet the expectations of business people and visitors. 4.1. evaluation on the effektiveness of model formulation having been examined more deeply through focus group discussions from academics, research teams and umkm activists to obtain constructive and massive input to produce a “model of umkm center management” which is expected to be effective and more applicable for coastal areas, the perception of 28 umkm respondents in five study locations that have been sampled in testing the formulation of management models is further analysed. it brings about some recommendations. the following recommendations are presented regarding the implementation of umkm center management in coastal areas: 1. it is necessary to design management clinics related to human resource management, production management, marketing management, financial management, and business legality in each location that is the object of this study. 2. there needs to be a clinic from stakeholders, umkm activists, and academics in business locations. the personels are needed at any time to be ready to serve. 3. there should be a design of training programs related to management needs for umkm players, so that the community can adequately improve both hardskills and soft skills related to human resource management aspects, production management, marketing management, financial management, and business legality. in the long run, the community as the subject and the object of umkm can have more competencies to manage businesses that have been run so far. this will hopefuly result in better economic support for their families’ lives. in the future, umkm centers in the coastal areas are expected to become a structured and independent economic system. 4. the local government ought to redesign the business location that is more adequate by relocating the current place to a new place outside the area presently occupied. the current area does not have a design that matches the expectations of umkm for the convenience of visitors and business people. besides, it is necessary to redesign the place of business to be more spacious and modern, and to have clean facilities and infrastructure that are in line with the standards expected. since this requires a new adaptation process and takes a while, especially with regard to old visitors and new visitors, socialization is certainly required. 5. conclusions and implications 5.1. conclusion referring to the stages of formulating the umkm center management model, some recommendations are presented as follows: 1. the development of community businesses and umkm centers in the coastal areas in east java needs to be addressed by making improvements to the management of umkm centers and businesses. what matters is the implementation of an effective and integrated management model by redesigning the management models of umkm centers. 2. umkm centers management which is nonphysical oriented can be performed by using a model that includes: a) the redesign phase of the umkm center management model. b) the implementation phase of the umkm center management model, and c) the development stage of the management model. this stage must be carried out in an integrated manner so that the management of the umkm center facilities can support services to visitors for the sake of safety and more comfort touch. 3. umkm center management which is physicaloriented can be done by using models that include location or place of business and infrastructure. this model is oriented towards developing human resource competencies in advance with the hope that it will soon be able to improve its business management from the aspects of local wisdom values, managerial aspects and legal aspects. the ultimate goal is that the ability of competence obtained can improve business and welfare for the community. 4. implementation of an effective umkm center management model takes eighteen months. it is divided into three periods, namely: a) the first six 9 sinergi, volume 9 number 1 march 2019 sri handini1), sukesi2), hartati kanty astuti3) model of umkm centre management to improve the effectiveness of business actors in the coastal areas in east java months for implementing the new model, b) the second six months for monitoring or mentoring, and c) the last six months for developing the model. the umkm center management model will run effectively if its implementation is able to synergize stakeholder resources optimally involving academics, business people, bureaucracy and empowerment of local communities who will contribute according to their respective domains. 5. there should be optimization of the role of academics, business people and bureaucracy in the framework of developing a management model of umkm centers. conducting training programs, mentoring programs, and development programs cannot be done individually by each umkm activist; it must be integrated from these three elements which are often called a triple helix. through the synergy of the three elements, it is expected that the result is an effective, efficient and applicable formulation of the management model of umkm centers. 6. the need for community empowerment through optimizing ownership of local resources. hopefully, there will be productive, integrated, and independent umkm development. community resources that have been neglected so far must be optimized so that the process of economic acceleration can be realized in accordance with the economic identity of a nation, through empowering resources in the form of values of wisdom and local culture, optimism for progress and skills. 5.2 implications the implementation of an effective umkm center management model will have implications for the following aspects: 1. the realization of the synergy of the three stakeholder pillars in the development of the economic concept of umkm sector. the three pillars in the triple helix are required to develop integrated and applicable character programs in accordance to the nation’s economic identity, namely an independent people’s economy. 2. the realization of a higher education program that is integrated with global aspects as well as local issues. all of these require the ability of local higher education institutions to capture community problems as inspiration in developing the three key programs of university (tridarma perguruan tinggi), especially research programs and community service. 3. the realization of coastal areas for umkm centers and integrated umkm actors. involving stakeholders who have practical synergy in the formulation of effective development and management models of umkm centers, and making each umkm center as the center of economic activities of citizens will contribute significantly to improve community welfare. references adnan husada putra, 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(2009). metode penelitian sosial. bandung: refika aditama. sugiono, 2013, metode penelitian manajemen pendekatan kunitatif, kualitatif,kombinasi (mixed methods) penelitian tindakan, penelitian evauasi, penerbit alfabeta taufik mokhamad, hartono , 2011, model pengembangan usaha kecil menengah berbasis potensi ekonomi masyarakat, jurnal wiga, vol.1 no.1 maret 2011 issn n0. 20880944. undang-undang republik indonesia nomer 27 tahun 2007 tentang pengelolaan wilayah pesisir dan pulau-pulau kecil yuli rahmini suci, 2017, perkembangan umkm (usaha mikro kecil dan menengah) di indonesia, jurnal ilmiah cano ekonomos, vol. 6 no.1 januari 2017. 1-dikompresi_1.pdf (p.1) 1-dikompresi_2.pdf (p.2) 1-dikompresi_3.pdf (p.3) 1-dikompresi_4.pdf (p.4) 1-dikompresi_5_001.pdf (p.5) 1-dikompresi_6_001.pdf (p.6) 1-dikompresi_7.pdf (p.7) 1-dikompresi_8.pdf (p.8) 1-dikompresi_9.pdf (p.9) 1-dikompresi_10.pdf (p.10) sinergi : jurn al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 49 49 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) inggrit dewi sartika1*), sri lestari yuli prastyatini2) 1,2) accounting, universitas sarjanawiyata tamansiswa, yogyakarta, indonesia e-mail: 1) inggritsartika@gmail.com, 2)srilestari_yp@ustjogja.ac.id abstract this study aims to prove empirically thst leverage, inventory intensity, fixed asset intensity, and political connections have an effect on tax aggressiveness. the population of this study are multinational companies listed on the indonesia stock exchange between 2017 and 2021. this survey relied on quantitative research and a variety of secondary data sources. in the population, there are 85 businesses. the sampling technique is 25 companies x 5 years = 125 financial report data from companies. in this case, the analytical method used is multiple linear regression analysis. testing outcomes of the multiple linear regression coefficients show that leverage does not affect tax aggressiveness. inventory intensity influences tax aggressiveness positively. the power of fixed assets has a positive effect on tax aggressiveness. the political connections have no bearing on tax evasion. keywords: leverage, inventory intensity, fixed asset intensity, political connections, tax aggressiveness. i. introduction global economic growth requires very tight competition in today's business world. marketers compete to meet the company's match in every way. as non-profit organizations, corporations naturally seek to maximize profits in several ways. one method for a company to increase profits is to develop a strategy to push down the tax burden for the company can get the maximum profit. according to purba and kuncahyo (2020) in law no. 28 of 2007, taxes are mandatory payments to the state owed by legal individuals or entities without receiving direct compensation. they are intended to be used for the benefit of the state and distributed as widely as possible to promote people's welfare and further regulate the drafting of law no—36 of 2008 article 2 paragraph (1), which explains the regulations relating to taxpayers. in indonesia, taxes are divided into two parts, namely central taxes and regional taxes. the central tax is divided into personal income tax, value added tax, sales tax on luxury goods, stamp duty, and land and building tax, especially for rural and urban areas. it is based on sector activities business, and tax revenue is divided into industrial, commercial, mining, trade, et cetera. in 2019, pt adaro energy tbk was suspected of carrying out tax avoidance practices through transfer pricing, namely by transferring large amounts of profits from indonesia to companies in tax-free countries or with lower tax rates. pt adaro energy tbk is accused of engaging in this practice to pay idr 1.75 trillion, or us$ 125 million, less in taxes than is required in indonesia. transfer pricing was used to commit tax evasion in this case. ii. literature review positive accounting theory company management's behavior while preparing financial reports is referred to as positive accounting theory. this theory explains that actual accounting practices are viewed from a management perspective, using accounting methods along with accounting rules that change mailto:srilestari_yp@ustjogja.ac.id sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 50 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) periodically (andhari & sukartha, 2019). in positive accounting theory, there are three hypotheses, as the bonus plan hypothesis. the bonus plan hypothesis states that business leaders grow with the business bonuses they receive. in the debt-equity theory, the closer the company is to the limit specified in the debt agreement, the closer the company is to the limit set in the debt agreement will be violated, and technical failure will occur if the company's debt increases. third, the political cost hypothesis, in which large and small companies tend to choose accounting to reduce reported profits. legitimacy theory legitimacy theory is so closely related to stakeholder theory. this theory explains that organizations should always find ways to ensure that their activities are within the boundaries and rules of society (rokhlinasari, 2016). legitimacy theory assumes a social contract between corporations and society. this social contract is a way of explaining many of society's social expectations of organizational activities. stakeholder theory stakeholders are groups or individuals that influence or may be affected by the achievement of corporate goals (rokhlinasari, 2016). the fact that any person/group with interest in the organization is the same as the shareholder mechanism with an interest or ties in the organization drives stakeholders. in other words, running a business requires external assistance, which includes support from society and the environment. leverage leverage is a company’s ability to meet long-term and short-term financial obligations. third-party funding sources are very promising sources of capital for businesses looking to expand or explore profitably (andhari & sukartha, 2019). leverage uses long-term debt as capital to grow a business and avoid future losses. companies can also reduce their profit and tax burden by increasing their leverage ratio. inventory intensity inventory intensity is the asset component that is compared by comparing the total inventory to the asset total of the company. companies that invest in warehouse stock will incur maintenance and inventory storage expenses, increasing the overall burden on the company and reducing profits. companies with a high inventory intensity use pretax billing more aggressively (andhari & sukartha, 2019). fixed asset intensity fixed assets are tangible assets that can be used or made ahead of time and used during the company's operations but are not intended to be sold during the company's regular operations and have an economic life (psak no. 16 of 2015). the intensity of fixed assets indicates the proportion of the company's fixed assets measured to total ownership. fixed asset intensity is calculated by comparing total fixed assets to total assets (rizky & puspitasari, 2020). political connections political connection is required to form relationships between certain parties and parties with political interests to achieve specific goals that benefit both parties (purwanti & sugiyarti, 2017). companies with political ties have a political connection or wish to be close to politicians or the government (purwoto, 2011 in purwanti & sugiyarti, 2017). tax aggressiveness corporate tax aggressiveness is defined as planned tax revenue generated through tax planning that is both legal (tax avoidance) and illegal (tax evasion) (rohman & octaviana, 2014 in amalia, 2021). although not all tax planning activities are illegal, the more loopholes are used, the more aggressive the company is perceived to be. the reason for corporate tax evasion is that taxes impose an additional burden on businesses, which can reduce profits. formulation of the problem the background above, the authors formulate the main problem in this study are: 1. does leverage have a positive effect on tax aggressiveness? 2. does inventory intensity have a positive impact on tax aggressiveness? 3. does fixed asset intensity have a positive effect sinergi : jurn al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 51 51 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) on tax aggressiveness? 4. does political connection have a positive impact on tax aggressiveness? purpose the aim of this research is: 1. to prove the impact of leverage on the tax aggressiveness of multinational companies listed on the bursa efek indonesia 2. to prove the impact of inventory intensity on the tax aggressiveness of multinational companies listed on the bursa efek indonesia 3. to prove the impact of fixed asset intensity on the tax aggressiveness of multinational companies listed on the bursa efek indonesia 4. to prove the impact of political connections on the tax aggressiveness of multinational companies listed on the bursa efek indonesia research framework figure 1. research framework hypothesis effect of leverage on tax aggressiveness previous research by purba & kuncahyo, (2020) and fahrani et al., (2018) showed that leverage has a negative effect on tax aggressiveness. based on agency theory and positive accounting theory, leverage does not affect tax aggressiveness because the work system method involves two parties, namely the owner and management. agents can change or manipulate financial reports to lower tax payments in tax aggressiveness. according to positive accounting theory, accounting practices can be viewed from the perspective of time management using standard accounting procedures in the future, as well as management giving freedom to choose ways that can be applied in several accounting procedures. h1 = leverage harms tax aggressiveness effect of inventory intensity on tax aggressiveness the result of previous research andhari & sukartha, (2019) stated that inventory intensity has a negative effect on tax aggressiveness, in contrast to the result of research by fahrani et al., (2018) and savitri & rahmawati, (2017) which showed inventory intensity has a positive effect on tax aggressiveness. based on positive accounting theory, inventory intensity positively affects tax aggressiveness, which gives management behavior in preparing financial reports. managers of companies with the inventory method will have great opportunities and increase profits in the income statement for the current period. h2 = inventory intensity has a positive effect on tax aggressiveness effect of fixed asset intensity on tax aggressiveness research by (rizky & puspitasari, (2020) and (rahmawati & savitri, (2017) shows that the fixed asset intensity has a positive effect on tax aggressiveness. fixed asset intensity has no impact on tax aggressiveness based on positive accounting theory. managers will manipulate financial statements in the current period to realize the bonus plans. this theory is based on activities carried out by managers to apply accounting behavior that can enable companies to cover the company's actual performance. h3 = fixed asset intensity has a positive effect on tax aggressiveness effect of political conditions on tax aggressiveness pevious research by lestari & asalam, (2019) said that political connections have a negative effect on tax aggressiveness. political connections have no effect on tax aggressiveness based on legitimacy theory and stakeholder theory because sustainable organizations seek ways to ensure their operation is within the limits of the leverage (x1) inventory intensity (x2) fixed asset intensity (x3) tax aggressiveness (y) political connections (x4) h1 h2 h3 h4 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 52 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) prevailing rule in society. stakeholder theory states that organizations must be socially responsible, requiring consideration of the interests of all parties affected by their operating activities. h4 = political connection harms tax aggressiveness iii. research methods in the study, quantitative methods will be used to examine the data. the data source is secondary data gathered from the financial and annual reports of multinational corporations on the indonesian stock exchange. this study's population comprises multinational corporations, precisely 85 companies listed on the indonesian stock exchange. the sample size is 25 multinational corporations, with an estimated observation period of 2017 to 2021. the data used is sourced from the indonesia stock exchange at http://www.idx.co.id and websites that the company legally owns. the strategy for collecting data is using the documentation study method, as well as purposive sampling as a method for selecting the sample for this study. multiple linear regression analysis is the data analysis method used. the criteria used methods for determining the samples used in this study are as follows: 1. multinational corporations registered on the indonesia stock exchange (idx) between 2017 and 2021. 2. businesses with a minimum of 20% foreign ownership. 3. businesses that did not incur losses during the observation period. 4. multinational corporations that provide complete data on all required variables. variable definitions in this study, the tax aggressiveness variable is the dependent variable, and there are leverage variables, inventory intensity, fixed asset intensity, and political connections. tax aggressiveness tax aggressiveness (etr) is a situation where a company has the authority to apply tax policies that cannot be examined or challenged from a legal perspective. the effective tax rate (etr) is the formula for measuring tax aggressiveness. according to, the effective tax rate (etr) is a proxy that has been widely used in previous studies. a low etr value can be an indication of tax aggressiveness. 𝐸𝑇𝑅 = 𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑎𝑥 𝐸𝑥𝑝𝑎𝑛𝑠𝑒𝑠 𝐼𝑛𝑐𝑜𝑚𝑒 𝐵𝑒𝑓𝑜𝑟𝑒 𝑇𝑎𝑥 leverage leverage (lv) is a financial ratio that depicts the connection between a company's debt and capital and its assets and capital. according to fahrani et al. research, leverage can measure long-term, and short-term obligations used to finance company assets (2018). 𝐿𝑉 = 𝑇𝑜𝑡𝑎𝑙 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 total asset inventory intensity inventory intensity (in) describes how much the company has invested in available companies. the inventory intensity ratio can be calculated by comparing the inventory value and total company assets. 𝐼𝑁 = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑡𝑜𝑟𝑦 total asset fixed asset intensity capital intensity (ca) illustrates the amount of company investment in fixed assets. the intensity of fixed assets results from comparing total fixed assets with tangible assets in the study. 𝐶𝐴 = 𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑒𝑡 political connections a dummy variable measures political connections. this variable is coded 1 (one) if the company has political connections and 0 (zero) otherwise. companies that can be interpreted as having political connections if it meets the following criteria: 1. a director or commissioner who is also a member sinergi : jurn al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 53 53 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) of the house of representatives, an executive cabinet member, an official in a government agency, including the military, or a political party member; 2. a director or commissioner who was previously a member of the house of representatives or a former executive cabinet member in a government agency, including the military; 3. a more than 10% owner/shareholder is a political party member or has a relationship with top politicians, officials, or former officials. iv. results and discussion research result table 1 normality test the leverage variable has a minimum value of 362,031 from pt bank negara indonesia (persero) tbk in 2017. the maximum value of the dependent variable is 72,753,282, owned by pt xl axiata tbk in 2021. leverage has an average ( mean ) of 16,943. 487 .19 means that the moderate leverage listed on the idx during the observation period was 16,943,487.2%. the standard deviation of the leverage of multinational companies is 17,704,642.652. the standard deviation exceeds the mean ( mean ). these results indicate that the leverage variable data highly varied during observation. inventory intensity variable results show a minimum value of 355,022 from pt bank negara indonesia (persero) tbk in 2017. the maximum value of the inventory intensity variable is 53,901,660, obtained from pt united tractors tbk in 2020. inventory intensity has an average value average ( mean ) of 13,408,489.15. the standard deviation of the inventory intensity of multinational companies is 12,070,123 .133. the standard deviation exceeds the mean. ( mean ). these results indicate that the inventory intensity variable data highly varied during observation. fixed asset intensity variable obtained results showing a minimum value of 354,782 from pt bank negara indonesia (persero) tbk in 2017. in 2021, the maximum value of the variable intensity of fixed assets obtained from pt xl axiata tbk was 72,753,282. the power of fixed assets has an average (mean) value of 18,983,931.18 for multinational companies. the standard deviation of global companies' fixed asset intensity is 19,463,592.984. the standard deviation exceeds the mean ( mean ). these results indicate that the fixed asset intensity variable data is highly varied. the political connections variable has a value of 0 is the minimum, and a value of 1 is the maximum, with an average value (mean) of 0.53 and a standard deviation of 0.502, indicating that the average value (mean) has a lower value than the standard deviation and that the data distribution shows expected results. in 2018, pt xl axiata tbk had a tax aggressiveness variable with a minimum value of 16,48,445. the maximum value of the tax aggressiveness variable obtained from pt indosat tbk in 2021 is 3,430,061. the average (mean) tax aggressiveness of multinational corporations is 478,634.90. the global company's tax aggressiveness has a standard deviation of 782,444.976. the standard deviation exceeds the mean (mean). these findings suggest that the tax aggressiveness variable data has a high standard deviation. descriptive statistics n minimum maximum mean std. deviation leverage 79 362031 7275328 2 16943487,1 9 17704642,65 2 intensitas persediaan 79 355022 5390166 0 13408489,1 5 12070123,13 3 intensitas aset tetap 79 354782 7275328 2 18983931,1 8 19463592,98 4 koneksi politik 79 0 1 ,53 ,502 agresivitas pajak 79 1648445 3430061 478634,90 782444,976 valid n (listwise) 79 sumber: data sekunder, 2022, diolah sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 54 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) table 2 hypothesis test result according to the information in the table above, the f value is 8.927 and is significant at 0.000. it can be concluded that sig < 0.05, then the hypothesis is accepted. the results explained below can be simplified in that the independent variables, namely leverage, inventory intensity, fixed asset intensity, and political connections, significantly influence tax aggressiveness as independent variables. the adjusted r square value is 0.289, meaning that the independent variable influences the dependent variable with a magnitude of 0.289 or 28.9% and the remaining 71.1%, which is explained by other variables or other factors not included in this study. based on the table above, the results of the t-test (partial test), the first hypothesis (h1) obtained a significance value of 0.111. it can be concluded that the value contained in the significant α ( 0.05 ), namely 0.111> 0.05, means that leverage does not affect tax aggressiveness. therefore h1, which describes that leverage (lv) affects tax aggressiveness, is not supported or rejected. in the second hypothesis test (h2), where the significant value is 0.001, of course, this value, when juxtaposed with α ( 0.05 ), is 0.001 <0.05. so, it can be concluded that inventory intensity influences tax aggressiveness. therefore, h2, which reveals if inventory intensity (in) affects tax aggressiveness, is supported or accepted. in the third hypothesis test (h3), where the significance value obtained is 0.020, it will be smaller when compared to the significant value in the provisions, namely 0.05. therefore, it is concluded that the intensity of fixed assets (ca) influences tax aggressiveness. then h3, which reveals that company size affects tax aggressiveness, is accepted or supported. the fourth hypothesis test (h4) has a significance value of 0.880. of course, it will be greater when compared with a significant value in the provisions, namely 0.05. therefore, it is concluded that political connections (kp) do not influence tax aggressiveness. thus, h4, which reveals if political connections influence tax aggressiveness, is rejected or not supported. discussion effect of leverage (lv) on tax aggressiveness in the first hypothesis, leverage (lv) harms tax aggressiveness. the hypothesis testing results show that leverage (lv) does not affect taxes. this result is proven by a significance value of 0.111 > 0.05. therefore it can be concluded that h1 is not supported or rejected. companies with high leverage rely heavily on external loans to fund their assets. on the contrary, companies with low leverage finance their assets more with their capital. (fahrani et al., 2018). it is also consistent with positive accounting theory, which explains accounting practices from the perspective of management, who adopt them voluntarily, and through conventional accounting rules, which change over time. so that the relationship between existing earnings management in the company and the existing theory, earnings management uses actual accounting practices, so that reasonable accounting procedures are obtained and with the standards given to the company. the results of this study are supported and in line with the research of purba & kuncahyo (2020) and fahrani et al. (2018). effect of inventory intensity (in) on tax aggressiveness in the second hypothesis, inventory intensity (in) positively affects tax aggressiveness. the hypothesis test results show that taxes affect inventory intensity (in). these results are proven by a significance value of 0.001 <0.05. therefore it can be concluded that h1 is supported or accepted. companies with a high inventory intensity increase profits because they can manage inventory sinergi : jurn al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 55 55 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) costs efficiently. the company will then increase its ending inventory to reduce its ending inventory intensity and increase its internal costs to relieve net income and tax burden. as a result, the higher the inventory turnover, the more efficient the company is in inventory management. (fahrani et al., 2018) . it refers to the positive accounting theory that explains company management in preparing financial reports. suppose company managers with inventory plans have an excellent opportunity to use the accounting method. in that case, they can increase the profit in the income statement in the current period and increase the bonus amount percentage if the company adjusts the selected method. the results of this study are supported and in line with the research of fahrani et al. (2018) and savitri & rahmawati (2017). effect of fixed asset intensity (ca) on tax aggressiveness in the third hypothesis, fixed asset intensity (ca) positively affects tax aggressiveness. the hypothesis test results show that taxes affect the power of fixed assets (ca). these results are proven by a significance value of 0.020 <0.05. therefore it can be concluded that h1 is supported or accepted. the level of fixed assets owned by the company cannot guarantee that it can carry out aggressive tax practices. that is because companies do not want to keep large amounts of assets to avoid or reduce the tax burden but have enough for business and the needs and operations of the company. positive accounting theory supports this theory, where managers try beautifying the company's financial statements by manipulating financial reports to implement bonus plans. positive accounting theory is based on activities carried out by company managers to apply accounting treatment that can enable companies to cover company performance. the results of this study are supported by rizky & puspitasari (2020) and savitri & rahmawati (2017). the effect of political connection (kp) on tax aggressiveness in the fourth hypothesis, political connections (kp) harm tax aggressiveness. the hypothesis test results show that political connections do not influence taxes (kp). this result is proven by a significance value of 0.880 > 0.05. therefore it can be concluded that h1 is not supported or rejected. companies that have a close relationship with the government will try to minimize tax payments and are less likely to be audited, which will cause companies to practice tax avoidance. still, companies will practice tax avoidance if they want to maintain their good name and image in the eyes of stakeholders such as the government, investors, or the public. (herdianti, 2014) this theory is supported by legitimacy theory and stakeholder theory. at the same time, legitimacy theory states that sustainable organizations can find ways to ensure company operations within society's limits and norms. meanwhile, stakeholder theory holds that companies must have a social responsibility that requires them to consider the interests of those impacted by their operations. v. conclusion and suggestion conclusion based on data analysis regarding research objectives, hypotheses, and data analysis performed, found the following conclusions: 1. leverage does not affect tax aggressiveness. that is because companies rely on debt to finance their operations which have low-interest expenses. low-interest expenses can add to the high burden of taxable income. 2. inventory intensity influences tax aggressiveness positively. that is because the company increases the ending inventory and increases the costs contained in the company to reduce net income and reduce the tax burden. 3. fixed asset intensity has a positive effect on tax aggressiveness. that is because the company has a lot of fixed assets, and the depreciation of fixed assets is also significant, so the profit earned is small and can reduce the tax burden. 4. political connection does not affect tax sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 56 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) aggressiveness. that is because companies with political connections and close ties with the government or politicians do not necessarily mean that these companies take advantage of their closeness to reduce tax payments. 5. leverage, inventory intensity, fixed asset intensity, and political connections can influence tax aggressiveness by 28.9 %. suggestion future research can add to or replace the independent variables studied, such as earnings management, audit committees, independent commissioners, et cetera, which can be placed as independent, moderating, or intervening variables using different methods and populations. it is suggested that the research period be extended beyond five (5) years to ensure that the data can better reflect the company's current state and reduce data outliers. the government is then expected to make recommendations to deal with tax evasion by tightening oversight of companies so that there are no loopholes for this tax evasion practice. references amalia, d. 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(2016). resensi buku: hukum perusahaan multinasional. 1(september), 97–99. ghozali, i. (2011). aplikasi analisis multivariate dengan program spss. universitas diponegoro. ghozali, i. (2016). aplikasi analisis multivariate dengan program spss. badan penerbit universitas diponegoro. ghozali, i. (2018). aplikasi analisis multivariate dengan program ibm spss 25. badan penenrbit universitas diponegoro. herdianti, e. p. (2014). analisis tindakan penghindaran pajak pada perusahaan yang mempunyai koneksi politik. core view metadata, 2(2), 35–43. hotang, k. b. (2022). analisis determinan harga saham perusahaan perbankan di bursa efek indonesia. 6(2), 118–129. lestari, p. a. (2019). pengaruh koneksi politik dan capital intensity terhadap agresivitas pajak. global finance journal, 50(1), 41–53. https://doi.org/10.1016/j.gfj.2021.100667 lestari yuli prastyatini, s., & yesti trivita, m. (2022). pengaruh capital intensity, kepemilikan institusional dan ukuran perusahaan terhadap agresivitas pajak. al-kharaj : jurnal ekonomi, keuangan & bisnis syariah, 5(3), 943–959. https://doi.org/10.47467/alkharaj.v5i3.1419 nurminda, a., isynuwardhana, d., & nurbaiti, a. (2017). the influence of profitability, leverage, and firm size toward firm value ( study of manufacture companies goods and foods sub sector listed in indonesia stock exchange 20122015 ). e-proceeding of management, 4(1), 542– 549. purba, c. v. j., & kuncahyo, h. d. (2020). pengaruh profitabilitas, likuiditas, dan leverage terhadap agresivitas pajak pada perusahaan manufaktur sektor lainnya yang terdaftar di bei. bisnis-net jurnal ekonomi dan bisnis, 3(2), 158–174. purwanti, s. m., & sugiyarti, l. (2017). pengaruh intensitas aset tetap, pertumbuhan penjualan dan koneksi politik terhadap tax avoidance. jurnal riset akuntansi & keuangan, 5(3), 1625–1641. rahmawati, s. &. (2017). p-issn 2086-3748. 8(november), 64–79. rizky, m., & puspitasari, w. (2020). pengaruh risiko perusahaan, intensitas aset tetap dan ukuran perusahaan terhadap aggressive tax avoidance. jurnal akuntansi trisakti, 7(1), 111–126. https://doi.org/10.25105/jat.v7i1.6325 https://doi.org/10.22225/kr.12.2.1596.232-240 https://doi.org/10.1016/j.gfj.2021.100667 https://doi.org/10.47467/alkharaj.v5i3.1419 https://doi.org/10.25105/jat.v7i1.6325 sinergi : jurn al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 57 57 sri lestari yuli prastyatini, inggrit dewi sartika effect of leverage, inventory intensity, fixed asset intensity, and political connections on tax aggressiveness (empirical study of multinational companies listing on the indonesia stock exchange 2017-2021) rokhlinasari, s. (2016). teori-teori dalam pengungkapan informasi corporate social responbility perbankan. วารสารวชิาการมหาวทิยาลัยอสีเทริน์เอเชยี, 4(1), 88–100. sidik, p., & suhono, s. 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(2020). pengaruh leverage, intensitas persediaan, aset tetap, ukuran perusahaan, komisaris independen terhadap asgresivitas pajak https://doi.org/10.24843/eeb.2020.v09.i11.p02 sinergi, volume 1 0 number 1 maret 2020 13 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses internal factor effects in forming the success of small businesses achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) 1), 2)fakultas ekonomi universitas 45 surabaya, indonesia 1)e-mail: bumigora80@gmail.com 2)e-mail: rinadewisoesyra@yahoo.com 3)universitas kahuripan pare, kediri, indonesia e-mail: ypyaniarkomp@gmail.com 4)sekolah tinggi ilmu ekonomi walisongo gempol, pasuruan, indonesia e-mail: hjnur30@yahoo.com submit : 14th march 2019, revised : 05th march 2020, accepted : 25th march 2020 abstract this research aims to look at the effects of entrepreneurial competence, marketing ability, financial resources, technological usage, knowledge sharing to business success on small-micro enterprises established by surabaya industrial and trade agency. this study employs explanatory study type. technique of collection data that used is model structural equation (sem) with smart least square (pls) aided tools. the results of this research indicate that: (1) entrepreneurial competency does have significant effect to business success, (2) marketing capacity has a major impact on business success; (3) financial resources has not significant to business success; (4) technology usage has enormous effect on business success; (5) knowledge sharing has a huge impact on business performance. keywords: entrepreneurial abilities, communication capacity, financial resources, use of technology, knowledge sharing i. introduction community-based micro, small and medium enterprises (msmes) economic activities that are autonomous and small scale and managed by community groups or families. msmes greatly affect national economy, because it able to absorb a grossly number of unemployment and make too much contribution to gross domestic product (gdp). msmes are the economy backbone in east java as evidenced by the processing industry performance during the nation's share has risen over the last five years, from 19.91 percent in 2013 to 21.70 percent in 2017 [12]. msme development has also been seen in surabaya, with the number of msmes growing rapidly each year. based on data from the cooperative and micro business office in surabaya, the number of msmes has now reached more than 4,800 companies [37]. the number is predicted to continue to grow, but along with this, the msme sector continues to face challenges as msmes are adapting changes in environmental factors, such as increased competition and global demands for higher product quality, faster delivery times and stronger business partnerships [30]. therefore, msme actors need to understand these challenges. in understanding various challenges that exist, each msme needs to pay attention to its internal factors. internal factors can be considered as unique factors that include the company's resources and capabilities that can be controlled [7]. on the other side internal factors, demonstrate how the goals of management and characteristics of enterprise effect kind of decision needed to be made the resolution of the company's problems or expansion plans for the company's goods and/or services [15]. this research is intended to analyze the internal factors that consist of entrepreneurial skills, marketing power, financial resources, technology use and knowledge-sharing on sinergi, volume 1 0 number 1 maret 2020 14 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses business success in umkm guided by the surabaya ministry of industry and trade. a. entrepreneurial competency successful entrepreneurship is someone with know-how, expertise and values of individuals which includes attitudes, values, and behaviors needed for the process of completing work and assignments. according to [33] competence is the intelligence, skills and abilities of individuals who can directly influence performance; entrepreneurial success is the aim they want to achieve. entrepreneurial competence refers to knowledge, the skills and competencies of small business owners (bought through schooling, training and experience), success of interpersonal relations, impacts on the network and communication skills [22]. entrepreneurial competency is identified as the context features of specific knowledge, motivations, characteristics, self-image, personal positions and know-how stimulate conception, survival and/or business development. [17]. commonly, [14] clarify the characteristics which give rise to competence can be in the form of motives, traits, aspects of self-image, or the role, ability or body in society of information that it uses. specifically with respect to entrepreneurial skills, business experience, employment, schooling, family background and other demographic variables that influence entrepreneurial competence. there are several factors that influence the competencies possessed by entrepreneurs [33]: 1. managerial skill managerial skills are provisions that entrepreneurs must have. an entrepreneur must be able to take on the planning, organization, mobilization and control functions so that the business he runs can achieve the desired goals. in order to become a successful entrepreneur, the ability to analyze and grow markets, the ability to manage human capital, inventory, assets, resources and all business resources is an absolute must. 2. conceptual skill ability to formulate goals, policies and management plans is the main foundation for successful entrepreneurship. it's not easy to get this ability. we must learn extra hard from various sources and continue to learn from our own experiences and experiences of others in entrepreneurship. 3. human skills (skills of understanding, understanding, communicating and relating) easy, sociable, sympathetic and empathetic to others is a skill capital that strongly supports us towards business success. with skills like this, we will have many opportunities in pioneering and developing businesses. efforts can be made to improve this ability, for example that we teach ourselves in various organizations, joining hobby clubs and training our personalities so that they behave appropriately for others 4. decision making skills (skills to formulate problems and make decisions) as an entrepreneur, we are often faced with conditions of uncertainty. various problems usually arise in situations like this. entrepreneurship is required to be able to analyze the situation and formulate various problems to find various alternative solutions. 5. time managerial skill (skill set and use time) psychologists say that one of the causes or sources of stress is a person's inability to regulate time and work. the inability to manage time makes the work pile up or never finish so it makes his soul upset and not calm. an entrepreneur must continue to learn to manage time. time management skills can facilitate the implementation of the work and plans outlined. b. marketing capability marketing capabilities are a company's marketing aspect that deals with managing client relationships and managing their expectations. the marketing capability criteria must be met to produce superior performance from the resources owned [2]. marketing capability refers to skill of the organization use of tangible and intangible instruments complex needs understanding of customers and eventually attain a better brand recognition [18]. marketing capability also includes skills in the business and competencies related to market information collection, sharing, and distribution to all organizations; starting new products and customer relationships effectively, and sinergi, volume 1 0 number 1 maret 2020 15 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses establishing supplier’s relationships to achieve business success (26). increased marketing capability by using customers and relevant business intelligence, better consumer research and/or market analysis and increased marketing and procedures for lead distribution to the company's innovation performance in the market [26]. [24] he added that a strong marketing capability would allow companies to make themselves more productive use of limited resources and can also enhance customer collaboration. market-oriented companies align their processes, capability performance metrics, and customer-related programs aimed at engaging consumers and establishing to closer ties with the consumers a sort of global market success [20]. c. financial resources for businesses to operate profitably, the financial resources are very necessary. smes have relatively limited capital and more difficulties accessing sources of finance, are more dependent on one product, lack budgetary control systems and less economies of scale. according to [34] financial resources, namely resources in the form of funds/financial capital owned. d. technology usage technology is the creation and application of instruments, devices, materials and processes that enable people to solve their problems. assets in technology, in any business success is one of the most important elements. organizations use cutting-edge technology to attract more consumers than their rivals. though technology does have its costs, essentially businesses do usually recover these costs when they operate [11]. technology plays an important part in msme growth. technology has a close relationship with increasing production processes [11]. e. knowledge sharing collection of processes from knowledge transfer, manufacture, incorporation, composite and use activities [27]. knowledge sharing refers to assigning tasks and knowledge information by helping others and work solve problems with others, formulate new concepts or implement policies or procedures [5]. knowledge sharing knowledge is an intentional action which makes information reusable by others by passing information [10]. then lumbantobing in [3] explains that knowledge sharing is a systematic process in sending, distributing, and disseminating knowledge and multidimensional contexts between individuals or organizations through various methods or media. knowledge sharing according to dyer and nobeoka in [16] is an activity that facilitates the exchange of knowledge, helps people work together, increases the ability to achieve organizational goals, and others. whereas according to hoof & hendrix in [16] suggested that the sharing of information is a mechanism in which the individuals involved share knowledge in implicit and clear forms and awareness formation. knowledge sharing is more than just sharing, and is also "working together". f. business success business success is about achieving business targets and objectives that are not clearly set [22]. this could also be defined as the willingness of the company to achieve acceptable results and actions. according to islam, [9], there are at least two facets of business success: (1) finance versus non-financial, and (2) short-term outcomes versus long-term success. there are different ways of measuring business success in this context including profitability, revenues, return on investment, growth in revenue, staff numbers, productivity, renowned of the company and others [20]. different factors affect small business success stories. the business success of the company is one of the goals of every entrepreneur. small business success industry could be interpreted as the success level in achieving the intended goals/objectives. an organization's effectiveness check can be seen from different aspects such as: financial performance, corporate image and others [21] sinergi, volume 1 0 number 1 maret 2020 16 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses ii. methodology every research has an explanatory aspect to it. explanatory research is used in conjunction with the hypothesis test to assess the relation between variables [31]. tools used are quantitative. according to [32] quantitative methods are methods which use a variety of samples and percentages or as numbers. operational variables 1. entrepreneurial competency (x1) 2. marketing capability (x2) 3. financial resources (x3) 4. technology usage (x4) 5. knowledge sharing (x5) 6. business success (y) data analysis technique the research methodology chosen in this analysis use the structural equation model (sem) for analyzing the data and checking the assumption. to answer the question of the partial least square (pls). according to [8] the calculation is carried out using the smart partial least square (pls) process, since it is multi-lane and the model used is a reflective.the calculation model is carried out using smart pls methods, since it has a multilayered partnership, and this work is formative and reflective. iii. results and discussion inner model evaluation inner model test or structural model test the evaluation of internal model is used to assess the relationship between the latent buildings on the basis of pls results as expected in the study: figure 1 pls system analysis the internal weight value of figure 3 above indicates that entrepreneurial ability affects business success, marketing and financial resources, use of technology and sharing of knowledge as shown in the below equation: y = 0.160 x1 + 0.206 x2 + 0.025 x3 + 0.343 x4 + 0.290 x5 hypothesis checking see t-statistics in table 1 below for a response to the study hypothesis: table 1 hypothesis testing results original sample estimate mean of subsamp les standard deviation tstatistic business success (y) entrepreneuria l competency (x1) marketing capability (x2) financial resources (x3) technology usage (x4) knowledge sharing (x5) b = 0,025 t = 0,330 b = 0,160 t = 2,332 b = 0,343 t = 3,839 b = 0,206 t = 2,576 b = 0,290 t = 3,026 sinergi, volume 1 0 number 1 maret 2020 17 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses entrepreneur ial competency (x1) -> business success (y) 0,160z 0,151 0,069 2,332 marketing capability (x2) -> business success (y) 0,206 0,201 0,080 2,576 financial resources (x3) -> business success (y) 0,025 0,029 0,076 0,330 technology usage (x4) -> business success (y) 0,343 0,340 0,089 3,839 knowledge sharing (x5) -> business success (y) 0,290 0,302 0,096 3,026 test results: a. entrepreneurial competency has considerable influence on business successes declared to be acceptable. b. marketing capability has an important influence on business success, has been declared acceptable. c. financial resources influence business success significantly, declared unacceptable. d. technology usage has an important influence on business success, has been declared acceptable. e. knowledge sharing has considerable influence on business success, has been declared acceptable. testing of structural models (inner model) taking a look at the r-square in evaluating pls model for every latent dependent variable. you can use the r-square shift value to evaluate whether certain independent latent variables impact major on dependent latent variables. in a configuration with a defined structure r2 value of 0.67 that the "strong" model, r2 of 0.33 specifies the "bad" model is 0.19 indicates that the model is "poor" [8]. as explained below, the pls output is: table 2 r-square value r-square entrepreneurial competency (x1) marketing capability (x2) financial resources (x3) technology usage (x4) knowledge sharing (x5) business success (y) 0,980 the independent variables include industry experience, marketing skills, financial resources, using technology and sharing of knowledge that affects the structural model's business success variable r2 value of 0.980 that indicates "good" model. discussion the effect of entrepreneurial competency on business success in msmes guided by surabaya ministry of industry and trade based on results from partial testing of hypotheses that entrepreneurial competency has an effect on business success in msmes guided by the surabaya ministry of industry and trade. this is evident from the t-statistical value of 2.332, meaning it is larger than 1.96. the effect of both variables is positive, shown by the estimation or the vector of regression 0.160, it ensures that the business success will also increase if the entrepreneurial competence increases. this shows that msme entrepreneurs ' greater entrepreneurial capacities are increasingly capable of shaping business success. the presence of impact of entrepreneurial skills relevant and positive on business success and proves in msmes guided by ministry of industry and commerce of surabaya can be improved through an increase in good entrepreneurial competencies. therefore, if the msmes assisted by the surabaya ministry of industry and trade want to improve their business success, it is crucial to pay attention to the entrepreneurial competency they have. some researchers have linked entrepreneurial competence with business success [6]. so it can be explained that business owners act as business leaders, in particular in relation to small businesses. this business owner enables optimization of external capital of the company sinergi, volume 1 0 number 1 maret 2020 18 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses to achieve commercial success [1], through its enterprise competencies. findings from this review indicate that entrepreneurship has had an important and positive effects on company performance, in accordance with research findings undertaken by [22] with regard to federal agency for land development (felda), which examined small businesses, information the entrepreneurial skills affected business success. this shows the prominent role of entrepreneurial competence in forming a successful business. this entrepreneurial competency can help companies become proactive in terms of gaining profits as the first movers that may enable companies to obtain premium market segments and forecast markets to rivals. this is especially important with an increasingly competitive global market, thus improving business success. the influence of marketing capability on business success in msmes guided by surabaya industry and trade ministry the analysis results show that marketing capability the impact on client success is immense. the statistical significance can be seen from of 2.576 t which means more than 1.96. marketing impact on business success is positive, shown by the 0.206 estimate or regression coefficient, indicating that when there is an increase in marketing capacity will also increase business performance. this point out that the higher the marketing capability, the more business success will be. in other words, the better the marketing capabilities possessed by entrepreneurs in msmes guided by the surabaya industry and trade ministry, the more they will be able to shape business success in these msmes. marketing capability influences significantly and positively on business success denote that business success in msmes guided by the surabaya industry and trade ministry can be established through good marketing capability. therefore, if the msmes assisted by the surabaya industry and trade ministry want to form business success, it is very important to consider the magnitude of their marketing capabilities. the findings of this study comply with the results of the report from [11] examining small and medium-sized enterprises (smes) in pakistan, it was found that marketing strategies have big impact on business performance. these proceeds also support the research findings [25] which prove the necessity influence of competence in strategy for business success. therefore, demonstrate the effect of marketing skills on client success in attracting more companies to speed up its internationalization cycle. marketing capability contributes to the expansion of new international businesses by influencing corporate decisions to choose modes of entry, including greater involvement of resources in foreign markets [23]. the influence of financial resources on business success in msmes guided by the surabaya ministry of industry and trade based on the study outcome, it is understood that business success does not affect financial resources. the statistical value of 0.330 t can be seen from, that is, it is less than 1.96. the findings that business success in msmes led by surabaya city's ministry of industry and trade cannot be formed through the financial resources. the finding is correspond to the results of the report [22] small businesses was investigated federal land development authority (felda) scheme to ensure that financial resources have no impact on business success. it shows that business success cannot be shaped automatically by the help of sufficient financial resources. the findings do not match the research findings of the [11] in pakistan, which analyzed small and medium-sized enterprises (smes) found that financial resources had a significant impact on the performance of companies. this study found financial resources to be the critical factors influencing sme success. financial resources are key factors underpinning the entire enterprise. they face many problems due to the lack of government financial support to the entrepreneurs. because of a lack of financial capital, businessmen are not satisfied with their product's marketing activities. the influence of technology usage on business success in msmes guided by surabaya ministry of industry and trade it is known that technology use has an effect on business success based on the study's sinergi, volume 1 0 number 1 maret 2020 19 achmad daengs gs1), rina dewi2), khusniyah3), nur qomariah4) internal factor effects in forming the success of small businesses output. it can be seen from the t-statistical value of 3,839, which means it is greater than 1,96. it means that better use of technology would allow business success to be increased. those two factors have a positive influence, which means the stronger the use of technology, the higher the business success. in other words, the better utilization and use of technology in msmes guided by surabaya ministry of industry and trade, the higher the possibility of shaping business success in these msmes. the essence of the important and positive effect of technology use on business success indicates that business success can be shaped by the use and use of improving technology, so that if the msmes led by surabaya ministry of industry and trade wishes to shape business success, very important to beware of the degree to which technology use reflects technological resources as one of the most important elements for the performance of any firm. enterprises take advanced technology tend to attract consumers than their rivals. although technology has costs, companies eventually recover those costs when they are running. the findings are consistent with research conducted by [11] which examined small and medium enterprises (smes) in pakistan found that technology usage has a major influence on progress. the findings of this study also support research performed by [22] which examined small businesses under the federal land development authority (felda) schedule proving that technology usage the impact on business success is important and optimistic. the effect of knowledge sharing on business success in msmes guided by the surabaya ministry of industry and trade posit from the study finding it is known that knowledge sharing affects the business success. it can be seen from the statistical value of 3,026 t, meaning it is more than 1,96. the influence of these two variables is positive, indicated by the coefficient of estimation or regression of 0.290, which means that, if there is an increase in knowledge sharing, business success will increase as well. this shows that the higher the knowledge sharing activities carried out within the msmes guided by the ministry of industry and trade of surabaya, the greater the potential to shape the business success. the existence of considerable and positive effects of entrepreneurship skills on business success indicates success in msmes led by ministry of industry and commerce of surabaya can be strengthened by good entrepreneurial skills. therefore, if the msmes assisted the ministry of industry and trade of surabaya wants to improve its business success, the entrepreneurial skills they possess are really important. company management, for the financial company’s management report it is useful to measures the owners or shareholders responsible for the business as follows (zuhroh, daengs, 2018:399). iv. conclusion entrepreneurial competence, advertising capability, software usage, knowledge sharing, guided by the ministry of industry and trade in surabaya, has a major impact on the business success of msmes. the impact of both variables is positive, 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management and accountancy, de la salle araneta university email : carolina.ditan@dlsau.edu.ph submit : 8th august 2019, revised : 19th august 2019, accepted : 27th august 2019 abstract the study was conducted to determine the effective marketing strategies in terms of promotion, product, pricing and place, and services in terms of availability, reliability, responsiveness, completeness and professionalism rendered of a pharmaceutical company in china as perceived by the two groups of respondents, employees and customers/clients. the four marketing strategies obtained a very effective descriptive rating by the employee and client-respondents. among the four marketing strategies, pricing gained an effective rating from employee-respondents and place has a significant difference in the perceptions of the two groups of respondents. in terms of services rendered a very effective descriptive ratings were given by the employee-respondents; whereas, client-respondents only obtained an effective descriptive rating. among the five services rendered, only professionalism was perceived as very effective and was tagged as no significant difference by the two groups of respondents. high relationship between the marketing strategies and services rendered by the pharmaceutical company to its clients in the obtained r value of 0.74 which means that the marketing strategies of employees directly affect the clients’ services. at 0.05 alpha, it was concluded that if the marketing strategies of the employees improved, so as their services to the clients. it is recommended that a successful pharmaceutical company must build customer knowledge competence through improvement of the current processes that include customer data acquisition and data interpretation. key words: pharmaceutical company, marketing strategies, services i. introduction in today’s changing business, the challenge for pharmaceutical companies is how to become customer-centric companies, as it is obvious that product-centricity can no longer be sufficient for the success of a company (hazboun, 2010).with this environment, there is new pressure on the pharmaceutical industry to evaluate and implement better ways of doing business and to find new ways to build competences which can be considered meaningful and challenging to the industry. it is therefore a very important issue for pharmaceutical companies to make their clients satisfied not only with their marketing strategies but also their services. there are certain situations like after receiving a service, clients would usually describe the service 17 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company provider as fast, always available when needed and polite. these descriptions represent different aspects of the service like responsiveness, availability, and professionalism. another situational concern of pharmaceutical company is: should they spend more on marketing activities (advertising, offers, sales, promotional activities of market research, competitors’ analysis) or should they just spend more money on their sales force or maybe lower the price a little bit to sell more (kotler, 2011). delivering quality to customers in a competitive market place dictates the need to continually enhance a customer’s experience and satisfaction. however, evidence indicates that satisfying customers would still defect at a high rate in many industries. this suggests that businesses must strive for 100% effective marketing strategies and services rendered by the company. a client’s model adapted from wassemfarouqmasroujeh (2010) consisted of five satisfaction factors on services rendered by the company such as availability, responsiveness, reliability, completeness and professionalism were tested on achieving customer satisfaction in the pharmaceutical market. on the other hand, marketing plays an important role as an organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders. the traditional view of marketing is that a firm makes something, and then sells it. the smart competitor must design and deliver offerings for well-defined target markets, and companies should see themselves as a value delivering process (kotler 2011). today, marketing is recognized as the vital process that binds the organization together. it is marketing sales in china in 2016 that hit $ 139 billion surpassing japan to take the number two position globally contributing to a number of factors for china to continue its drive-in expanding demand for pharmaceuticals (wang, 2018). such dynamics have led pharmaceutical companies to move aggressively into china and efforts until now have been largely successful. the major priority of the chinese government is the reform of the health care system so as to make the development, production and marketing of medication significantly visible in the global market. one of these chinese pharmaceutical enterprises was established in april 2011, and the first “gsp” and “iso9000” double certification unit in hebei province. the sales tax of 2016 is 14.2 billion yuan. the company has various pharmaceutical products, ranging from antibiotics formulations and bulks, nutrition and vitamins, immune/suppressant, biotech and pesticide for veterinary drugs. at present, the company’s business scope includes: chinese and western medicine, traditional chinese medicine, biological products, anesthesia psychotropic drugs, toxic drugs for medical use, pharmaceuticals, health food, medical equipment, chemical reagents, glass apparatus andvarious categories of goods more than 28000 specifications of varieties. the sales network covers 100% of the third and second grade hospitals in hebei province; 80% of county-level medical institutions; 60% of the pharmacies, community outpatients and township hospitals have more than 10,000 other end customers. with more than 4100 domestic and outside suppliers at the same time, more than 3600 distributors maintain close business cooperation; become the domestic well-known enterprise with more than 85% of the products, imports 100% of the level 1 agent for the sale of the enterprise in hebei province (chinese pharmaceutical company, annual report, 2018). china accounts for 20% of the world’s population but only 1.5% of the global drug market exist. healthcare reform and changes done are designed to extend or expand basic health insurance to a larger portion of the population and give individuals greater access to products and services (hazboun, 2010). as of 2009, has around 2,000 to 5,000 domestic pharmaceutical manufacturers and around 12,000 domestic pharmaceutical distributors. most often cited adverse factors include a lack of marketing strategies and satisfaction of customers with regard 18 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company to services rendered through their pharma staff, staff representatives, and employees.following this period of change coupled with cited adverse factors, the pharmaceutical industry still has continued its expansion. the researcher, seeks to determine the relationship between marketing strategies and services offered by the chinese pharmaceutical company to their clients and suggest suitable recommendations for improving the customer care based on the study results. china’s pharmaceutical industry the chinese biopharmaceutical market has huge opportunities for growth. this industry will significantly affect the international healthcare market and has enormous potential for investment. china’s healthcare sector continues to develop at an astonishing rate. the nation’s healthcare spending is projected to grow from $357 billion in 2011 to $1 trillion in 2020. across key categories, from pharmaceuticals to medical products and consumer health, china remains one of the world’s most attractive markets, and is by far the fastest growing of all the large emerging markets. it is not surprising that multinationals are flocking to take advantage of the opportunities, but long-term success for all participants is by no means assured but still optimistic about the overall outlook for the healthcare market in china. at a high level of analysis, three themes will shape china’s healthcare market in the coming years: the continuation of economic and demographic trends, further healthcare reform, and the policies articulated in the government’s 12th five-year plan (fyp). some of these forces will have positive implications for multinational companies, for example, improvements in infrastructure, the broadening of insurance coverage, and significant support for innovation. some of them will have negative implications, for example, pressures on pricing, and the rise of local champions. in some situations, the forces come into direct opposition, for example, in the bid to reconcile universal healthcare coverage at low cost with rewarding innovation. marketing is everyone’s business. traditionally, marketing has been labeled as one of the four key functional areas of a business. however, with marketing’s role changing in the late 1990’s to building customer relationships, there has been a subsequent change in the way the overall function is regarded internally within corporations. in the early 1950s, neil borden redefined the position of the marketing manager by introducing “marketing mix” as an integrated set of marketing “tactics” to realize organizational objectives and create a closer, higher value relationship with customers. in the late 1950s, jerome mccarthy condensed the number of variables in a marketing mix into four principal categories: 1. product: select the tangible and intangible benefits of the product; 2. price: determine an appropriate product pricing structure; 3. promotion: create awareness of the product among the target audience; 4. place: make the product available to the customer. mccarthy (2015) stated the importance that the four p’s be regularly reviewed to take into account changes in customer needs and other external influences and that marketing managers adapt their set of controllable variables to face the new conditions. he further advised that promotion and price be adjusted in the short term, neither the product itself nor its place of distribution. to get the most out of marketing and bring some real advantages to business there’s nothing better than reviewing the principle concepts from the mind of the most renowned scholar in marketing, no less than the father of marketing, philip kotler.kotler (2011) states that “marketing is an administrative and social process through which individuals and groups obtain what they need and desire by the generation, offering and exchange of valuable products with their equals”. business is focusing on people, so as marketing. marketing is about people’s need, and then provides customers the appropriate price, which can bring 19 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company handsome profit to the company (sexton, 2011). following kotler and keller’s (2011) words, it manages customer and satisfies customers’ needs, the way to bring the exchanged relationships through creating value and satisfying needs and wants.johnson and scholes (2010) define the strategy as follows: “strategy is the direction and scope of the organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations.” changing consumer needs and business environment has necessitated pharmaceutical companies to adopt marketing mix strategies to gain competitive edge hence attracting and retaining customers. product, price, place, promotion, people, process and physical evidence strategies have remained as the key roadmap of any successful pharmaceutical company. adoption of effective marketing mix strategies promotes customer loyalty hence social economic developments in china can be achieved. marketing strategy is needed by any organization that is faced with intelligent opposition that can affect the organizations’ desired outcome. most firms operate in environments that are potentially vulnerable to competitive actions and so they need effective marketing strategies to determine the way in which they intend to compete in the market place. due to dynamic business environment, both small and large organizations need to adopt marketing strategies to survive by attracting and retaining customers hence increased productivity (woodward, 2011). woodward argues that marketing strategy is a process by which one can envision the future and develop the necessary procedures and operations to influence and achieve the future. pharmaceutical companies invest billions of dollars annually on marketing drugs they manufacture. they use direct methods to consumer marketing, physician speakers, representatives and catered foods while introducing products to a target audience (kotler, 2011). an appropriate marketing strategy for any pharmaceutical company would be to build on proven strategic marketing principles, along with a focus on changing customer behavior. use of digital media through internet marketing plan is the best marketing strategy that can provide the basis for a changed business model. to formulate a marketing strategy, it is also crucial to know the existing markets as well as emerging markets of pharmaceutical drugs as stated by (ganey, 2012). pharmaceutical companies in the world engage in providing more than one service to its customers. the companies identify gaps, which must be filled in order to meet customers’ needs and they endeavor to fill these gaps by offering a range of services to them. they identify weakness in the market segment that are emerging, neglected or poorly served by competitors after which they select a strategy using the marketing mix as a resource (kotler, 2010). any competitive pharmaceutical company that wants to dominate a larger market share in china should adopt effective marketing strategies in order to survive. marketing strategy therefore, is a longterm response to the changing environment and involves fundamental decisions about how to match resources to that changing environment (kotler and keller, 2013). to survive, pharmaceutical companies have to differentiate themselves mainly by being as close to the customer as possible. product marketing strategies have been developed in response to the tremendous increase of competitors in the pharmaceutical industry. the strategy that an organization implements is an attempt to match the skills and resources of the organization to the opportunities found in the external environment. kotler (2011) argued that decisions and actions taken would lead to the development of an effective marketing strategy that will help to achieve organizational objectives. the concept of strategy scholes and whittington (2010), strategy is what a company does and how it actually positions itself commercially and conducts the competitive 20 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company battle. any organization cannot operate without a strategy because strategy formulation is vital to the well-being of an organization. a strategy is needed by any organization that is faced with intelligent opposition that can affect the organizations desired outcome. most firms operate in environments that are potentially vulnerable to competitive actions and so they need a strategy to determine the way in which they intend to compete in the market place (hisrich, 2010). marketing plays a pivotal role in strategy development. in its strategic role, marketing consists of establishing a match between the firm and its environment. it seeks solutions to problems of deciding; what business the firm is in and what kinds of business it may enter in the future and how the chosen fields of endeavor may be successfully run in a competitive environment by pursuing product, price, promotion, and distribution perspectives to serve target markets (pearce, 2012). because pharmaceutical companies can directly contact wholesaler, in order to enable wholesalers to make bulk purchase from them, pharmaceutical companies have developed a lot of new methods to attract wholesalers. and they establish a mutual benefit relationship between them over time, that is, wholesalers buy pharmaceuticals from the pharmaceutical company and the company guarantees the wholesalers certain benefit. sometimes, bribery is one method the pharmaceutical companies use to attract wholesalers. although pharmaceutical companies do not directly contact customers, customers are the direct user of their products and the importance of customers is well known. so, attracting customers’ attention or promotion is considered to be another important marketing strategy for pharmaceutical companies. many companies use advertisements to attract customers and improve the popularity and reputation of their brand. chen, (2011) summarized china’s top 5 industries which put the most advertisement on tv in 2008. they are: cosmetics / bathroom products, medical product, commercial and service industry, food and drink. china’s pharmaceutical companies have paid a lot attention to attract wholesalers and customers, but they are ignoring the retail pharmacies in their marketing activities. because the pharmaceutical companies put lots of money into advertising/promotion, their prices are increased. the advertising effect made some brands more famous among customers, so, the companies of these products do not worry about their sale in retail pharmacies, and they took most of the profits. increased cost and little profit made retail pharmacies dissatisfied (li, 2013). so, the relationship between pharmaceutical companies and retail pharmacies are not very well established. the battle between them broke out on 2013. several retail pharmacies combined together to resist purchase from one famous pharmaceutical company. ii.research methods the study aims to address the effectiveness of marketing strategies and services in a chinese pharmaceutical company. the following research question is intended for this study: 1. what are the perceptions of the two groups of respondents on the marketing strategies of the chinese pharmaceutical company in terms of promotion, product, pricing and place? 2. how do the two groups of respondents perceive the services quality offered to clients by the chinese pharmaceutical company in terms of availability, responsiveness, reliability, completeness and professionalism? framework as shown in figure 1, kotler’s marketing theory using 4 ps in the marketing mix was utilized to examine the marketing effectiveness of chinese pharmaceutical company, . china. thus, to resort in the effectiveness of services rendered in this pharmaceutical company, commitment trust theory was also taken into consideration to determine the effects of the key services rendered as perceived by the respondents. commitment and trust are “key” because they encourage marketers to (1) work at preserving relationship investments by cooperating with exchange partners, (2) resist attractive short-term alternatives in favor of the expected long-term 21 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company benefits of staying with existing partners, and (3) view potentially high-risk actions as being prudent because of the belief that their partners will not act opportunistically. therefore, when both commitment and trust not just one or the other is present; they produce outcomes that promote efficiency, productivity, and effectiveness. in short, commitment and trust lead directly to cooperative behaviors that are conducive to relationship marketing success. figure 1. theories on marketing strategies and services this study covered the period from june 2018 to september 2018. specific methods of data gathering, such as interview and the survey questionnaires were employed. it covered the pharmaceutical company in hebei, china. the respondents of the study include the customers and employees. the researcher used the mixed method of investigation. the utilization of the quantitative data required the use of statistical treatment procedures to assure a valid result. the descriptive survey is deemed to be appropriate since its purpose is to determine the marketing strategies and services rendered in the pharmaceutical company.one hundred (100) questionnaires were given to 50 customers and 50 personnel of the pharmaceutical company. interview–protocol was used and answered by selected customers and employee respondents, their responses of which were integrated in the findings, conclusions and recommendations. the employees and customers in the chinese pharmaceutical company understudy were the respondents during the data gathering. the study was made carefully by using likert-type survey analysis approach to bring substantial outcome. this analysis was used to get competitive customer satisfaction on the effective marketing strategies of the chinese pharmaceutical company. several questions could have been introduced when probing further into the detail of the entire specific problem in this study. in spite of the study being taken up about competitive customer satisfaction with its effective marketability of the health-related products and it concentrated only on the marketability effects of the health-related products and critical satisfaction factors to achieve customer satisfaction. cronbach's alpha ranges between 0.817 and 0.937. this range is considered high; the result ensures the reliability of each field of the questionnaire. cronbach's alpha equals 0.937 for the entire questionnaire, which indicates an excellent reliability of the entire questionnaire. thereby, it can be said that the researcher proved that the questionnaire was valid, reliable, and ready for distributionfor the population sample. 22 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company iii. result and discussion the perceptions of employees and client-respondents on the marketing strategies of chinese pharmaceutical company as to promotion, product, and place was very effective as revealed in the general means of 4.53, 4.54, and 4.57 respectively. meanwhile, pricing was rated effective with general means of 4.49 in the perceptions of the two groups of respondents. table 1 perceptions of two groups of respondents on marketing strategies of chinese pharmaceutical company legend: 1.00-1.49 (vi); 1.50-2.49 (i); 2.50-3.49 (me); 3.50-4.49 (e); 4.50-5.00 (ve) the significant differences in the perceptions of the two groups of respondents were revealed as no significant difference in terms of promotion where the t stat value obtained is 0.39. in terms of product, there was no significant difference where t stat value obtained of 0.81 or + 0.81. in terms of pricing there was no significant difference where the t stat value obtained is 0.15 or + 0.15. in terms of place, there was a significant difference where the t stat value obtained is – 4.78 or + 4.78 in the perceptions of the two groups of respondents. legend: t stat value >t -crit two tail value (reject h_0 / significant);t stat value <t crit two tail value (accept h_0 / not significant) table 2 significant differences in the perceptions of two groups of respondents on marketing strategies of chinese pharmaceutical company the perceptions of employees and client-respondents on the services rendered by chinese pharmaceutical company, were revealed as effective in terms of availability, responsiveness, reliability and completeness as revealed in the general means of 4.62, 4.54, 4.55 and 4.60 respectively. professionalism earned very effective as revealed in the general means of 4.55 on the perceptions of the two groups of respondents on the services rendered by chinese pharmaceutical company. table 3 perceptions of two groups of respondents on services rendered by chinese pharmaceutical company there are significant differences in the perceptions of the two groups of respondents on the service rendered to clients by chinese pharmaceutical company, in terms of availability, responsiveness, reliability and completeness as reflected in the table where the t stat values of 2.44, 2.55, 2.85 and 3.83 were all greater than the t – critical two – tail values of 2.20, 2.23, 2.26 and 2.45 that led to 23 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company the rejection of null hypotheses at 0.05 alpha. on the other hand, there was no significant difference in terms of professionalism as seen in the t stat value obtained of – 0.33 or + 0.33 which is less than the t – critical two – tail value of 2.23 that led to the acceptance of null hypothesis at 0.05 alpha. table 4 significant differences in the perceptions of two groups of respondents on services rendered by chinese pharmaceutical company legend: t stat value >t -crit two tail value (reject h_0 / significant);t stat value <t crit two tail value (accept h_0 / not significant) table 5 t.o.w.s analysis on the perceptions of the employees and customers on marketing strategies of chinese pharmaceutical company after conducting the tows analysis and since this study used and is limited only to the 4ps (product, price, promotion and place) in marketing strategy, the 7ps framework in marketing mix model by mccarthy (1960) is adapted and modified to help the chinese pharmaceutical company in china to review and define key issues that affect the marketing of its products and services. figure 2 below shows the perceived marketing strategy using 4ps in the study and perceived services are placed on the sides of the framework. here the company will use the results to evaluate needs of the company. the 7ps supplemented in this study are people, process, physical, place evidence to improve marketing strategies and services of the company. under the determinant people, the company needs to train the skills of the employees of the marketing department, for process, the company need to focus on customer using it-supported research and development to facilitate the necessities of the company. in physical evidence, wherein the company addressed the innovation sales/staff contact online experience of brand and product packaging. in determinant place, the company needs to focus on a well-defined niche. meanwhile in pricing, the company can use market-skimming pricing to get the most from those willing to pay higher prices by setting higher prices for new drug products. then for promotion, the company must use merchandise promotions and displays to help resell the company's brand or generic drug line to distributors or pharmacies using social media platforms. they can select price level and continuously study pricing policies and profit margins. finally, for product, the company designs, develops and delivers products that meet consumer needs, and expectations. thus, offer a wide range of products. 24 sinergi, volume 9 number 2 september 2019 carolina ditan retrospect of the marketing strategis and services in a chinee pharmaceutical company there is high relationship between the marketing strategies and services rendered by chinese pharmaceutical company, to its clients as seen in the table where the obtained r value of 0.74 is within the range of ± 0.71 to ± 0.90 that is verbally interpreted as high relationship. iv. conclussion the perceptions of employees and clients on the marketing strategies of chinese pharmaceutical company were very effective in terms of promotion, product, pricing and place. there were no significant differences in the perceptions of employees and clients on the marketing strategies of chinese pharmaceutical company in terms of promotion, product and pricing. thus, there was a significant difference in the perceptions of employees and clients on the marketing strategies of chinese pharmaceutical company in terms of place. the perceptions of the two groups of respondents on the services rendered by chinese pharmaceutical company was effective in terms of availability, responsiveness, reliability, completeness and professionalism. there were significant differences in the perceptions of the two groups of respondents on the service rendered to clients by chinese pharmaceutical company in terms of availability, responsiveness, reliability and completeness. hence, there was no significant difference in the perceptions of the two groups of respondents on the services rendered by the employees in terms of professionalism. finally, high relationship between the marketing strategies and services rendered was observed by chinese pharmaceutical company to its clients. the following recommendation were drawn based on the outcome of the study: 1. inclusion of 7ps in marketing mix strategy in further studies would enhance the marketing strategy of the pharmaceutical company. 2. the marketing campaigns of the chinese pharmaceutical company.,need to shift choice away from the incumbent, educate those at the upper end of the knowledge chain, build brand loyalty and value above just price, and remain within the confines of the company. 3.employees of chinese pharmaceutical company should maintain their very good status with regard their marketing strategies in terms of promotion, product, pricing, place, selling, and buying as their clients perceived these strategies very effective. employees of chinese pharmaceutical company may continue serving their clients in the aspects of availability, responsiveness, reliability, completeness and professionalism since their clients perceived the services rendered to them effectively. 4. since the present study proved that there is a significant relationship that exist between the marketing strategies of employees and their services rendered to clients, the administration of chinese pharmaceutical company may look at other strategies on how to improve the services they render to their clients from effective to very effective in the aspect of availability, responsiveness, reliability and completeness since the clients perceived the variables as 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(2011). creating the customerdriven academic library. chicago. a.l.a. p.8 [30]xu, d.（2010). experience marketing is analyzed. journal of hunan business school.(10):90-95 bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya 46 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 happier on the job: a pleasant experience by logistic employee of logistics surabaya bisma arianto 1*) , siti samsiyah 2) , laila arkadia 3) 1,2,3) management, universitas pgri adi buana, surabaya, indonesia e-mail: 1) bismaarianto@unipasby.ac.id*, 2) sitisamsiyah@unipasby.ac.id, 3) larkadialaila99@gmail.com abstract. this is a quantitative study happier on the job is the feeling and attitude of employees towards the work they are currently engaged in. apm logistics firm of the surabaya branch is a company in the field of services that provides package delivery, documents, moving, and warehousing services that were founded in 1990. this study to describe the level of satisfaction obtained by pt. apm logistik surabaya branch in terms of financial compensation, work discipline, and work loyalty. respondents for this study used a sample of 60 employees. the instrument collected in data collection is a questionnaire consisting of 51 statement items that must be answered by the respondent. the data analysis used is assumption test, multiple linear regression, t test and f test. this study has some variables such as financial compensation, discipline and loyalty as independent variables; and job satisfaction as the dependent variable. this study concluded that financial compensation has got a positive and meaningful effect on employee job satisfaction, work discipline have got a positive and significant effect on job satisfaction, loyalty has a significant effect on job satisfaction. meanwhile, financial compensation, work discipline, and work loyalty simultaneously have a effect on job satisfaction. the authors suggestion companies need to take notice to the provision of proper and fair financial compensation to their employees on their workload. keywords: compensation, discipline, loyalty, satisfaction, employees. i. introduction happier on the job is the feeling and attitude of employees towards the work they are currently engaged in. plimmer et al. (2020) explains that employee’s positive attitudes indicates happier on the job, while hostile and negative attitudes indicate unhappier on the job. furthermore, odunlade (2012) the more pleased people are in their work, the more content they are. of course, being happier on the job is very meaningful for organizations, customers, managers, and employees. pt. apm logistics firm of the surabaya branch is a company in the field of services that provides package delivery, documents, moving, and warehousing services that were founded in 1990. this company provides total service guarantee support that prioritizes fast, safe, and timely service to make this company credible for customers as well as partners. this is what makes the company create a branch in surabaya to provide the best service for its customers at competitive prices, and on time in delivery. so, being happier on the job while serving customers is the success of this company. happier job studies are an interesting topic to be researched and carried out by hidayati et al. (2018), yulandri & onsardi (2020), mahri (2021), astiti et al. (2019), eriksson et al. (2020), shahid et al. (2018), and many other researchers. research on happier on the job in terms of financial compensation has been carried out (hidayati et al., 2018; mahri, 2021), discipline (astiti et al., 2019; hidayati et al., 2018; mahri, 2021), happier on the job (hidayati et al., 2018; shahid et al., 2018), and loyalty (astiti et al., 2019; hidayati et al., 2018). the several studies above show that there is a gap in job satisfaction in terms of financial compensation, loyalty, and discipline. the results of the researcher's interview with the manager of apm logistics firm of surabaya branch there are obstacles in the company there is discipline and a lack of productivity which affects the time spent at work. in addition, the wages received by employees are still below which resulted in an impact towards employee performance satisfaction. the situation presented above prompted researchers to explore these factors associated with employee job satisfaction. this study deals in the exploration of some factors that influence the employee’s job satisfaction in apm logistics firm of the surabaya branch. from the company's perspective, it is necessary to have rules and regulations that regulate or limit each activity and behavior. this is manifested in work discipline behavior so that employees obey the given behavior (hidayati et al., 2018). it is different from the loyalty obtained from himself which has implications for the company as a sense of mutual need (astiti et al., 2019; hidayati et al., 2018). from the description of the background of the problems faced by apm logistics firm of the surabaya, it can be formulated that the aims of this research is to explain the mailto:1)bismaarianto@unipasby.ac.id mailto:sitisamsiyah@unipasby.ac.id mailto:larkadialaila99@gmail.com sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 47 bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya satisfaction obtained by apm logistik firm of the surabaya branch in terms of financial compensation, work discipline, and work loyalty. so that this research provides benefits for the company apm logistik firm of the surabaya branch in taking the right policies and decisions in determining wage compensation, employee work discipline, and loyalty. financial compensation financial compensation is a form of money remuneration obtained by employees as a consequence of their status as an employee who contributes to achieve company goals (hidayati et al., 2018; yupastha et al., 2021). another language of the sentence above is as a fixed payment, money received by an employee of his position in the company. the amount of financial compensation of course depends on the company's ability to provide the amount of compensation. furthermore, hasibuan (2016), also stated that financial compensation is an act of remuneration that is paid periodically to permanent employees and has a definite guarantee. financial compensation is a form of the consequence of services or labor provided by employees to the company. or it can also be said that financial compensation is several rewards from the company for the use of its workforce. from the opinions above, financial compensation is a reward or money or service remuneration. money or services are a form of reward in exchange of someone's performance on the results of employee performance as a reward for achieving company goals. the financial compensation payment system will be different for each company because it is adjusted to the company's ability to provide the amount of compensation and the level of performance of its employees. in this study, indicators of financial compensation in terms of feasibility, work motivation, and job satisfaction. work discipline sinambela (2016) explains the concept of work discipline as the inclination of someone who prepare their readiness to submit to the rules applied in the company. the existence of acceptance with "orders" and taking the initiative to get the necessary consequences if there are no "orders" is a form of discipline that must be carried out by employees. the concept of discipline requires rewards and punishments for every action taken by employees. the concept of discipline, many people say discipline according to easy actions, but in fact, disciplinary action is not only the task of the leader ekhsan (2019) and sinambela (2016) describes work discipline as a procedure that make rights or measures employee for violating regulations or procedures. discipline is a means of self-judgment of employees and carrying out regularly and appeared in the level of seriousness in a teamwork in an organization. discipline must be enforced within the organization, meaning that it is impossible for the company to acomplish its objectives without the support of good employee discipline. so, work discipline is the key to the success of an organization in achieving the goals set by the company. discipline indicators used in this study are the frequency of attendance, level of vigilance, adherence to work standards, compliance with work regulations, and work obedience. work loyalty work loyalty is an employee's mental attitude that is shown to the company's existence so that employees will stay loyal in the company, even though it is advancing or retreating (vionita et al., 2017). this mental attitude shows employee’s loyalty to the company which can lead to a sense of responsibility. employees who have high loyalty will certainly survive in the company regardless of the conditions. furthermore, arianto (2022) states that a person's loyalty to something is not only in the form of physical loyalty but rather non-physical loyalty such as thoughts and attention. the employee’s loyalty in an organization is necessary for the success of the organization itself. the higher the employee’s loyalty in the company, the easier it will be to enhance performance and achieve the goals set by the company. from the statements above, work loyalty is an employee's loyalty to the organization shown by the employee's willingness to carry out and carry out company duties with full awareness and responsibility. the hope is that through employee‘s loyalty, the company's goals can be maximally successful. in this study, work loyalty is viewed from knowledge in work, initiative in work, work creativity, obedience, and obedience. happier on the job happier on the job is defined as the perceived correlation between what employees want in their jobs and what the company has to offer (irawanto et al., 2021). happier on the job is described through the emotional state of employees when facing a pleasant and beneficial emotional situation due to an assessment of performance. the happier on the job is adjusted by both the quality and the quantity of work achieved by employees in performing their functions following their responsibilities. the indicators used in this study were adapted from previous study (schriesheim, 1980) using 5 (five) items, (1) tasks, (2) colleagues, (3) supervisors, (4) income, and (5) overall job satisfaction. formulation the problem based on the background above, the problems in this study are: 1. does financial compensation affect the happier job of apm logistics firm of the surabaya branch? 2. does work discipline affect the happier job of apm logistics firm of the surabaya branch? 3. does work loyalty affect the happier job of employees of apm logistics firm of the surabaya branch? 4. do financial compensation, work discipline, and work loyalty affect the happier job of apm logistics firm of the surabaya branch? bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya 48 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 direct influence indirect influence purpose the purpose of this study are as follows: 1. testing and analyzing financial compensation has an effect on employee happier on the job at apm logistics firm of the surabaya branch. 2. testing and analyzing work discipline has an effect on employee happier on the job at apm logistics firm of the surabaya branch. 3. testing and analyzing job loyalty has an effect on employee happier on the job at apm logistics firm of the surabaya branch. 4. testing and analyzing financial compensation, work discipline, and job loyalty affect the happier on the job of apm logistics firm of the surabaya branch. conceptual framework conceptual framework this study describes below financial compensation 1. eligibility 2. work motivation 3. facilities provided h1 work discipline 1. the frequency happier on the job of attendance 1. task 2. alertness level 3. adherence to h2 2. colleagues 3. supervisors work standards 4. income 4. compliance with work 5. overall job regulations satisfaction 5. work ethic h3 work loyalty 1. knowledge of work 2. initiative at work 3. work creativity 4. obedience h4 fig. 1 conceptual framework this study hypothesis the hypothesis is a short-term answer to the formulation of the research problem stated in the form of a question sentence through data collection (sugiyono, 2017). grounded by the theoretical study developed above, the following hypotheses can be proposed. hypothesis 1 ho : financial compensation does not hold partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. h1 : financial compensation resulted in a partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. hypothesis 2 ho : work discipline does not hold partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. h2 : work discipline resulted in a partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. hypothesis 3 ho : job loyalty does not hold partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. h3 : job loyalty partially significant effect on the happier on the job of employees of apm logistics firm of the surabaya branch. hypothesis 4 ho : financial compensation, discipline, and work loyalty have no simultaneous significant effect on the happier job of apm logistics firm of the surabaya branch. h4 : financial compensation, work discipline, and work loyalty have a significant effect simultaneously in the happier the job from the employee of apm logistics firm in surabaya branch. ii. research methods research design this is a quantitative research involving quantitative data. the population and samples involved in this research are employees of apm logistics firm of the surabaya branch totaling 60 employees. as a representative, the researchers used a saturated sampling, the sample is carried of from the entire population. quantitative study is a process of finding knowledge involving data in the numbers as a tools for analyzing the explanation you want to know then interpret them correctly. research limits this study is limited to employees of apm logistics firm of the surabaya branch with some of the variables like financial compensation, work discipline, and work loyalty as the independent variables. while job satisfaction is the dependent variable in this study. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 49 bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya variable identification in this study, the independent variables are described as financial compensation, work discipline, and work loyalty. however a dependent variable is a variable that changes when it relates to the independent variable. in this study, the dependent variable is happier of the job. operational definition and measurement of variables the operational definitions of variables discussed in this study are described. 1. financial compensation is money received by employees as a consequence of their status as an employee who contributes for achieving company goals. the indicators used in financial compensation are feasibility, work motivation, and facilities provided. 2. work discipline is the awareness and willingness of employees to obey all organizational rules and applicable social norms. work discipline is a tool used by leaders to communicate with their employees so that they are willing to change their behavior following the established rules of the game. the indicators of work discipline used in this study are the frequency of attendance, level of vigilance, adherence to work standards, compliance with work regulations, and work ethics. 3. work loyalty is a form of one's loyalty to something that is not only in the form of physical loyalty but rather nonphysical loyalty such as thoughts and attention. indicators of work loyalty in this study include knowledge about work, an initiative in work, work creativity, and obedience and compliance. 4. happier on the job is a form of quality and quantity of work results achieved by employees in carrying out their functions following their responsibilities. the indicators of employee happier on the job used in the study are tasks, colleagues, supervisors, income, and overall job satisfaction. population, sample, and data collection technique the population and samples involved in this study were employees of apm logistics firm surabaya branch, total of 60 employees. the sampling method used is a saturated sampling, with the sample taken from the entire population. data and data type data collection done through a questionnaire involving a likert scale as a measurement scale involving five categories: strongly agree, agree, neutral, disagree, and strongly disagree. question items used in this study amounted to 51 items consisting of 9 financial compensation questions, 15 work discipline compensation items, 12 work loyalty items, and 15 job satisfaction items. data collection the research instrument used was tested before being used in data collection. the instrument was analyzed for validity and reliability tests. valid and reliable question items made by the reasearchers were used to collect research data through questionnaires. after collecting data, the researcher distributed questionnaires to 60 employees of apm logistics firm of the surabaya branch. data analysis the data gathered is then examined based on the answers given by the respondents in the form of percentage of each response given. then the data were tested for normality using kolmogorov smirnov comparing the value of the 2tailed symp with the alpha value (0.05) if the alpha symp was 2tailed. then the multicollinearity test was held to find out the correlation between the independent variables. the heterosdexity test is used to test the inequality of variance from one observation to another. after that an autocorrelation test was conducted to test the connection between the confounding errors using the durbin-watson test. after all four are fulfilled, then proceed with performing multiple linear tests, the t-test to test one independent variable on the dependent variable. meanwhile, the simultaneous test of all independent variables on the dependent variable uses the goodness of fit test. finally, the researchers would describe the outcome of the data analysis. iii. result and discussion the respondents in this study in terms of gender and age is presented in table 1 below. based on table 1 above, the majority of respondents in this study were male 44 people (73.33%) and female by 16 people (26.67%). respondents aged 26-31 years are the largest respondents with a total of 48 people (80%) and others the age 12 peoples (20%). furthermore, the outcome of data analysis conducted by researchers are presented as follows. normality test the normality test in this study using the kolmogorov smirnov test use of spss version 24.0 resulting in the data presented in table 2, it is known the value of asymp.sig. (2 tailed) that is 0.998 > 0.05. this could be concluded from the test results above asymp. sig. (2-tailed) meet the requirements so that the data could be stated that the data is normally distributed. bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya 50 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 multicollinearity test a good relapsed model ought not give a correlation between the independent variables. one way to see the existence of multicollinearity is by looking at the tolerance and variance inflation factor (vif). the cut-off value often used to show the presence of multicollinearity is the tolerance value > 0.10 or equal to vif < 10.00. the results of spss version 24.0 were obtained the results as shown in table 3 below. based on table 3, it is known that the vif value for financial compensation (x1) is 2.557, the work discipline variable (x2) is 3.767, and the work loyalty variable (x3) is 2.777. each variable has a value (vif < 10.00) so that it could be deduced that multiple regression is free from multicollinearity disorders. autocorrelation test the objective is to see the linear regression model has a connection between confounding errors in period t (t-1). if there is a connection, it shows an autocorrelation problem. the results of of spss version 24.0 were obtained results as shown in table 4 below. from table 4 it is known that the dw value is 1.744. where the value of dw is in the middle between the values of du and 4du (1,689 among 2,311), so that the multiple regression model in this study is not affected by autocorrelation. multiple linear regression the objective to determine influence the independent variables: financial compensation (x1), work discipline (x2), and work loyalty (x3) have on the dependent variable of the happier on the job (y). in this analysis of spss version 24.0 as shown in table 5 below. from table 5 above, the magnitude of the constant and the magnitude of the regression coefficient for each variable is obtained and the regression equation is resulted as follows: y =1,011 + 0,793 x1 + 0,358 x2 +1,173 x3 + e proof of hypothesis 1 the test results with spss version 24.0 to prove hypothesis 1 resulting in this following results. based on table 6, the t-value for the financial compensation variable (x1) is 3.090 with a significant value of 0.003 so 0.003 <0.05. from the result, it can be stated that the hypothesis is accepted, in the sense that there is a significant influence between the financial compensation variable (x1) partially in employee happier on the job (y) apm logistics firm of the surabaya branch. proof of hypothesis 2 the results of the test spss version 24 to prove hypothesis 2 were obtained the following results. based on table 7, the t-count value for the work discipline variable (x2) is 1.973 with a significant value of 0.008 so 0.008 <0.05. from the result above, it is stated that the hypothesis is accepted, meaning that there is a significant influence between work discipline variables (x2) partially on employee happier on the job (y) apm logistics firm of the surabaya branch. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 51 bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya proof of hypothesis 3 the results of the test with spss version 24 to prove hypothesis 3 obtained the following result. based on table 4.14, the tvalue is 6.715 with a significant value of 0.000 so 0.000 <0.05. from this result, it can be stated that the hypothesis is true, meaning that there is a significant influence between the job loyalty variables partially on happier on the job of apm logistics firm of the surabaya branch. proof of hypothesis 4 the results of the test with spss version 24 to prove hypothesis 4 obtained the following results. based on table 9, the fvalue is 47.625 with a significant value of 0.000 so 0.000 <0.05. from the result above, it can be said that the hypothesis is accepted. this result signify that there is a significant influence between the variables of financial compensation (x1), work discipline (x2), work loyalty (x3) simultaneously on employee happier on the job (y) apm logistics firm of th surabaya branch. discussion financial compensation has a significant and positive effect on employee job satisfaction. the path coefficient on the financial compensation variable seen from the standardized coefficients b value shows that on the condition that the employee's financial compensation increases it will influence the job satisfaction of apm logistics firm of the surabaya branch. this is following the statement from hasibuan (2016) which explains financial compensation as a form of remuneration that is paid periodically to permanent employees and has definite guarantees that employees have worked well if financial compensation is paid following the nominal provisions and paid on time, it will create a maximum performance. as also reinforced by the opinion of subianto (2016) and parimita et al. (2018) that financial compensation affects employee job satisfaction. moreover, work discipline has a significant effect on employee performance. the path coefficient on the work discipline variable can be seen from the standardized coefficients b value which shows that if the work discipline variable increases it will affect the job satisfaction of apm logistics firm of the surabaya branch. this is a line to the statement from rivai & sagala (2011) which explains that a work discipline is a tool to communicate with employees so that employees are ready to change their manner as well as an atempt to level up their understanding. in addition, the more the readiness of an employee to comply with all company order, the better the employee's work discipline which at the end can create maximum job satisfaction (ekhsan, 2019). work loyalty has an important and an effect on employee performance. the path coefficient of the work loyalty variable seen from the standardized coefficients b value shows that, if the work loyalty variable increases it will affect the job satisfaction of apm logistics firm of the surabaya branch. this is in line with the statements of sari & arianto (2022) and madarip & tajib (2022) which state that the loyalty to work is pictured in the attitude of employees who devote their abilities and expertise. this is carry out the tasks with responsibility, discipline, and honesty at work, the more loyal they are. employees to the company will be able to create maximum job satisfaction. this is also in accordance with the study by letsoin & ratnasari (2020) and arianto (2022) that work loyalty is influenced by many things, such as motivation and prevailing organizational culture. financial compensation, work discipline, and work loyalty have got a significant and an effect simultaneously on the job satisfaction of pt. apm logistics surabaya branch. this is shows that the financial compensation, work discipline, and work loyalty simultaneously significant effect on employee job satisfaction (vionita et al., 2017). this is indicated that all three aspects affect employee job satisfaction of a company because it depends on the established policies (permana & pracoyo, 2021; plimmer et al., 2020; rene & wahyuni, 2018; shahid et al., 2018). iv. conclusions based on the analysis of the data concerning the study goals, hypothesis, and data analysis carried out, the conclusions are as follows. 1. financial compensation has a significant effect on employee job satisfaction at apm logistics firm of the surabaya branch. the results using the t-test show a meaning that if financial compensation increases, employee’s happier on the job also increases. 2. work discipline has a significant effect on employee job satisfaction at apm logistics firm of the surabaya branch. the results using the t-test shows that the better the level of work discipline, the employee's happier on the job also increases. 3. job loyalty has a significant effect on employee job satisfaction at apm logistics firm of the surabaya branch. the results using the t-test show that the more bisma arianto, siti syamsiyah, laila arkadia happier on the job: a pleasant experience by logistic employee of logistics surabaya 52 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 loyal employees to the company can create maximum employee’s happier on the job. 4. financial compensation, work discipline, and work loyalty simultaneously significant effect on employee happier on the job at apm logistics firm of the surabaya branch. the results obtained using the f-test tells that the results of financial compensation, work discipline, and work loyalty have a relationship to affect employee job satisfaction at apm logistics firm of the surabaya branch. if the determination of financial compensation is commensurate with the employee's work, the employee will also try to improve work discipline and loyalty to the company, for it also has an effect in increasing job satisfaction. suggestion companies need to take notice to the provision of proper and fair financial compensation to their employees on their workload. in addition, it is also necessary to have written rules set by the company where these rules must be obeyed by all employees, and an adequate work environment needs to be created to form employee loyalty to the company. the hope is that if these three components are met, then job satisfaction can be achieved. for future studies, we need other companies to compare this study that has been done. bibliography [1.] arianto, b. 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(2017). metode penelitian kuantitatif, kualitatif, dan r&d. pt alfabeta. [26.] vionita, g., sitepu, m., & panjaitan, f. (2017). analisis pengaruh disiplin kerja, loyalitas dan pengalaman kerja terhadap kinerja kerja karyawan pada pt. bank tabungan negara (persero), tbk cabang …. jurnal ilmiah progresif manajemen bisnis (jipmb), 18(2), 13– 29. https://e-jurnal.stie ibek.ac.id/index.php/jipmb/article/view/284 [27.] yulandri, y., & onsardi, o. (2020). pengaruh kompensasi dan disiplin kerja terhadap kinerja karyawan warung padang upik. budgeting: journal of business, management and accounting, 1(2), 203– 213. https://doi.org/10.37531/ecotal.v2i2.86 [28.] yupastha, g., syawaluddin, & putra, a. (2021). pengaruh gaji dan kinerja terhadap disiplin kerja karyawan pada pt. lancar abadi medan. jurnal bisnis kolega, 7(1), 20–32. 32 sinergi, volume 9 number 2 september 2019 galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) galuh setiowati harsono1), b. yuliarto nugroho2) business administration department, faculty of administrative science, universitas indonesia, kampus ui depok, jawa barat kode pos 16424, indonesia email: galuhsetiowati7@gmail.com submit : 13rd august 2019, revised : 20thaugust 2019, accepted :27th august 2019 abstract the purpose of this paper is to examine the relation between dividend payout, firm size, roa, leverage, earnings yield, past earnings growth and annual growth in total assets towards future earnings growth when the periode in one, three, and five years ahead. the study sample was taken from non-financial firms that listed on the indonesia stock exchange in the period 2002-2016. the research method used in this research was multivariate regression. the proxy used for variable dividend payout is dividend payout ratio and proxy used for variable earnings growth is compounded annual earnings per share. the result show that high dividends signal high earnings growth, so that the study weakens the point of view of previous market observers who argue that dividend has negative relations to future earnings growth. the results of this study can help investors in considering options in choosing companies to invest by choosing companies who have high dividends. keywords dividend payout; size; future earnings growth; past earnings growth i. introduction investors in doing various investments certainly have an expectation to get a return in accordance with what is invested. the objective of investor’s in making the investments is to obtain income and return on investment, where the higher the risk taken, the higher possibility to get a return. the expected return on investment is in the form of shares, dividend and capital gains. in further discussion related to the dividend itself, the dividend policy applied by the company will certainly provide information related to the performance of the company (kusuma, 2012) [1]. in paying dividends, the company indubitably should pay attention to the profits it gained. similarly, in analyzing financial statements, earnings will be the main focus of the investors in investing. in paying the dividends, the company indubitably should pay attention to the profits earned, thus the dividend payout of each company has a different policy. some companies routinely give dividends with various amounts every year, meanwhile there are some companies that do not pay dividends at all. different dividends assuredly are also based on the company's conditions or strategies it used. the difference in the amount of dividends paid by the company becomes an interesting thing to be observed by market observers. plenty of prior researchers (conventional wisdom) argue that low dividends represent a high profit signal in the future, logically the companies that paying low dividends or adding retained earnings indicate the company is having a high growth opportunity (zhou and ruland, 2006) [2]. in addition, the theory that supports this view is pecking order theory (myers, 1984) [3] galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) 33 sinergi, volume 9 number 2 september 2019 which states that companies with high growth will prefer internal cash first, before external funding. this indicates that companies with high growth rates will have low dividends, and high retained earnings. in contrast to the results of previous studies, namely research conducted by arnott and asness (2003) [4] and [2]who investigated the relationship between dividend payout and future earnings growth which is contrary to conventional wisdom(former market observers). both studies have found that high earnings growth is correlated with higher dividend rates rather than low dividend, which means that current dividend payouts have a correlation that is directly proportional to future earnings of the company. the two researchers noted that their findings offer a challenge for conventional market observer who thought that low dividend payout is a sign of stronger future earnings growth. research conducted by tong and miao (2011) [5] examined the relationship of dividend payments to earnings quality. as a result, companies that pay dividends at certain periods have earnings quality that tends to be better than companies that do not distribute dividends.thanatawee (2011) [6] concludes that companies that earn large amounts of profits will tend to pay dividends to shareholders. this strengthens the research conducted by [2]. the research results from sirait and siregar (2014) [7] show that the dividend payments, dividend increases, and consistency in dividend payments have a significant effect on earnings quality given previous studiesproduced different findings, this made researcher get interested in investigating further and study more deeply about various points of view from dividend to earnings of company in the future in case it is linked to phenomenon that currently exist in indonesia. in addition, since dividend is one of the things that become the center of attention from investors in investing, then the results of this study can provide benefits such adding knowledge for academics and provide direction and consideration for the practitioners in shares investing. the proxy uses in this research for dividend payout is dividend payout ratio (dpr), while for proxy variable that will be used for earnings growth is compounded annual earnings per share. the research data taken from non-financial companies listed on indonesia stock exchange. the reason for taking non-financial is because the financial companies have different regulations and characteristics from non-financial companies. in addition, financial companies are indubitably highly influenced by interest rates, thus this thing inevitably distinguishes it with non-financial companies including the income of respective bank. the research was conducted from the beginning of 2007 until 2011 as it adjusted to the required data from the past earnings growth and also the future earnings growth, which is five years before and five years after the base year so that the data required is data from 20022016, this study also adjusted to the period of prior research(zhou and ruland, 2006)[2]. this is the first study in indonesia that examines the effect of dividend payout towards future earnings growth with cut off period by looking at one, three and five years in the past and in the future. dividend payout is measured by dividend payout ratio (dpr) calculated by comparison between dividend per share (dps) and earnings per share (eps) whilegrowth future earnings measured by compounded annual earnings per share from year 0 to year t. the control variables used in the research are return on asset, size, earning yield, leverage, past earnings growth, and annual grant of total assets. the objective of this study is to analyze the impact of dividend payout, size, return on assets, leverage, earnings yield, past earnings yield, and annual growth in total assets and to future earnings growth in all non-financial companies listed in indonesia stock exchange period 2002 -2016. 2.literature review and theoritical concept theory of “signaling hypothesis” various empirical evidences say that the increase of dividends is followed by a rise in stock prices, and vice versa. this indicates that investors prefer increasing dividends compared to capital gains. however, mm argues that a high dividend indicates that investors are forecasting good returns in the future. on the other hand, if the dividend decreasing or dividend increase above the normal level, then it signals that the company will experience difficult times in the future (atmaja, 2001) [8]. pecking order theory based on the perspective of capital structure “ pecking order theory “ (myers, 1984) [3] explains that firms with good growth opportunities will prefer funding through internal cash first, then next 34 sinergi, volume 9 number 2 september 2019 galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) to external funding sources. based on the research conducted(myers, 1984) [3] funding structure based on pecking order theory is as follows: 1. companies will prefer internal funding first 2. companies tend to set targets against the amount of dividends paid for investment opportunities and strive to maintain the stability of dividends. 3. when internal cash exceed capital expenditure, then external funding is required 4. companies that require external funding will choose the source of funding from the low risk level, retained earnings foremost, to the highest risk. external funding starts from debt, securities, and mixed securities. in addition, it is also explained that in pecking order theory the company will make funding to the company’s activities starting from funding sources that have the least cost. however, if internal funding sources are not allowed, then external funding will start from the lowest cost or cost. when the cash flow can cover the investment required by the company, it means the company has sufficient cash and can make dividend payments (al-najjar and belghitar, 2011) [9]. earnings growthor profit growth paton and lottleton((1967) in suwardjono (2013)) [10] provide an explanation of profit,where earnings or earnings can be interpreted as a return on the business done by the company in producing products either goods or services. based on the concept, it can be explained that the profit growth or earnings growth is when the company has been through more than one period. another period is intended as a comparison or difference which represents the growth that has occurred in the company. profit obtained by the company is the center of attention for many parties both internal and external companies ii.research methods the data used in this research is secondary data. secondary data is primary data that has been processed before. the data in the study were obtained through icamel, indonesia stock exchange (bursa efek indonesia) [11], kustodian sentral efek indonesia (ksei) [12], and rti. the population in this study is all non-financial companies listed in indonesia stock exchange (bei) in 2002-2016 period, all of the companies are the object to be selected by purposive sampling in representing the population. the sample selection is based on research(zhou and ruland, 2006)[2], the sampling criteria are as follows: non-financial companies listed on the indonesia stock exchange in the period 2002-2016, companies that have a complete financial statements respectively during the observation period, companies with positive profit in the base year or year 0, the companies that have the complete data for each variable. a mature company is measured by its size using total assets and also market value of equity at a certain size to be able to be included into the sample. the analysis technique in this research is quantitative statistical analysis. data analysis technique is used in processing data in the form of numbers or quantitative. this research used multivariate regression analysis model with panel data to analyze dpr as independent variable, roa, size, leverage, earnings yield, past earnings growth and also annual growth in total asset as control variable, and also future earnings growth as the dependent variable (dependent variable). data processing begins with sorting the secondary data that has been collected in microsoft excel for the next data analysis. the data analysis is descriptive to analyze the data to be more informative. furthermore, the data process has been done by using e views 9 software. model to examine the hypothesis in this study are as follows gujarati (2009) [13]: where: eg 0, t= future earning growth which is compounded annualearning growth from year 0 to year t, growth was calculated over 1, 3, and 5 year periods payout= the amount of dividends paid at current time which is the amount of dividends in the year-0 size= company size measured by market value of equity roa= return on assets in year 0 e / p = earning yield in year 0 lev = level of debt of the company in the year-0 peg –t, 0 = past earnings growth, measured as compounded annual earnings growth from year -t to year 0, with t = 1, 3, or 5 (the basic procedure was the same as for the eg variable) ag 0, t= asset growth over a period of time t years in the future ( t =1, 3, 5) in this study, it has the same dependent, independent, galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) 35 sinergi, volume 9 number 2 september 2019 and control variables with previous studies (zhou and ruland, 2006)[2]. the dependent variable of future earnings growth is measured in 1.3, and 5 years ahead to represent short, intermediate, and long term. the independent variable is dividend payout. the negative coefficient on the dividend payout will support the conventional wisdom, where the assumption in this study will resulting in a significant correlation and a positive coefficient on the dividend payout that will support the previous research of zhou and ruland. in the size control variable, assuming that large and mature companies will not experience rapid growth such startup companies, thus it is expected from this study that there is a negative correlation between earnings growth and firm size. another control variable is roa as profitability has reached the highest level, the company will have difficulty to keep increasing the earnings (for other factors are considered equal) thus it is expected to have a negative correlation between future earnings growth and roa. furthermore, the control variable used is leverage, assuming that firms with high leverage rates tend to have high investments (fama and french, 2002) [14], and also high earnings growth, so it is expected to have a positive impact between leverage and earnings growth. this study also controls the earnings yield variable earnings yield signifies how much the company’s earnings are valued by investors. in an efficient market assumption when p / e is high, it means that e / p is low in valuing high corporate earnings growth. through the above assumptions, the expected impact through the earnings yield control variable on earnings growth is negative. in the past earnings growth control variables, if the mean reversion occurs then the company with high earnings growth in the past will be followed by low profit growth, therefore it is assumed there is a negative correlation between past earnings growth with future earnings growth. the last control variable is asset growth which is a control variable. companies with larger asset growth will experience high profit growth as well. this will provide a positive correlation between annual growths in total assets with the futureearnings growth.table 1 below shows research variables and measurement used in this study. table 1. research variables and measurement source: processed by author 36 sinergi, volume 9 number 2 september 2019 galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) hypothesis development dividend payout is independent variable which part of the earnings that will be given by the company to shareholders. dividend payouts using a dividend payout ratio that may affect future earnings growth (zhou and ruland, 2006)[2]. the results of research by zhou and ruland show that dividend payout has a positive effect on future earnings growth. dependent variable of the research by zhou and ruland is earnings growth. in their research there are also several control variables such as return on asset, size, leverage, earnings yield, past earnings growth, and annual growth in total assets. based on the research conducted by (zhou and ruland, 2006)[2] using company data registered in the nyse, amex, and nasdaq and paying dividends in year t, except those listed in the insurance and financial industry, concluded that the companiesthat pay dividends have a good future earnings growth. it means there is relationship between dividend payout and future earnings growth of the company. based on the explanation, the first hypothesis in this study is: h1: positive dividend payout for future earnings growth (zhou and ruland, 2006)[2] found that large firms are usually more mature and less likely to experience high growth, so the predicted influence of variable size is negative against earnings growth. therefore, this study propose hypothesis: h2: company size has a negative effect on future earnings growth according to zhou and ruland (2006)[2], return on assets is a control variable, where high return on assets indicates a company with high profitability as well. this indicates that the company’s growth will be small, so the predicted influence of the variable return on assetss on the variable is negative. with this explanation, the next hypothesis in this research is: h3: return on assets (roa) has a negative effect on future earnings growth leverage indicates that if the company has large debts, it is assumed that the company has cash used for investment(zhou and ruland, 2006)[2]. this provides an opportunity for the company to grow, so it is expected to have a positive relationship between leverage and earnings growth with the preparation of the following hypothesis: h4: leverage has a positive effect on future earnings growth earnings yield signifies how much the company’s earnings are valued by investors. in an efficient market assumption when p / e is high, it means that e / p is low in valuing high corporate earnings growth(zhou and ruland, 2006)[2]. through the above assumptions, the expected effect through the earnings yield control variable on earnings growth is negative, and the propose hypothesis as follows: h5: earnings yield has negative effect on future earnings growth based on research conducted by zhou and ruland (2006)[2], past earnings growth is used as a control variable with consideration of mean reversion on future profit growth. if the mean reversion occurs then firms with high earnings growth in the past will be followed by low profit growth. this occurs when holding on to the basis of the mean reversion, so it is assumed that there is a negative relationship between past earnings growth and future earnings growth. the next hypothesis is: h6: past earnings growth has negative effect on future earnings growth companies with larger asset growth will experience high profit growth as well(zhou and ruland, 2006) [2]. this will provide a positive relationship between annual growth in total assets with future earnings growth. therefore, the propose hypothesis is: h7: asset growth has a positive effect on future earnings growth iii. result and discussion in this study, the object is a non-financial company listed on the indonesia stock exchange period 2002-2016. non-financial companies are selected by picking the issuers that have positive earnings as well as total assets below 250 billion idr (ojk regulation no. 53 / pojk.04 / 2017). the sample is then selected by selecting the issuer paying the dividend and having the market value of equity in quartile 1 and not enlisted in the bourse during the observation period (25% top) . the reason for choosing 25 % of the largest market value of equity is because the companies in the top 10 market capital holding almost 50% of shares in indonesia stock exchange with high dividend, assuming that the top 25% have the largest capitalization and can be categorized as galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) 37 sinergi, volume 9 number 2 september 2019 mature. due to criteria samples collected, then the study obtained 107 samples that meet the criteria. in the table 2 below presented the results of sample selection with purposive sampling method: table 2. selection of samples or observation data source: author processed data table 3 gives an overview of the overall characteristics of the sample. viewed from median of the above growth earnings variable, it can be seen that the median of earnings growth(eg) alone is in the 17% range (for one year of growth), 33% (for three years of profit growth), and around 7% (for five years of profit growth). it is seen that the largest profit growth occurs in the third year, it is also in line with the highest average of the period eg1, eg3, and eg5 where the highest position is in eg3 with a mean value of 0.40330. the dividend payout variable has an average value of 0.69765 but has a maximum value that is seen very high compared with the average value as 23.2177. the highest value is emerged by the existence of several companies that indeed have earnings growth 1. 3, and 5 are considered good, and pay dividends in large numbers. descriptive statistics table 3. statistic descriptive hypothesis examination the examination variable of dividend payout, size, return on asset, leverage, earnings yield, past earnings growth (1,3,5) and annual growth (1.3,5) to future earnings growth (1,3,5) using multivariate regression model (panel data). the summary of data results of the regression is shown in the following table 4: 38 sinergi, volume 9 number 2 september 2019 galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) based on the table 4 above, the panel data regression result from the non-financial company that has been sampled can be explained as follows: hypothesis 1 the result of analysis started from independent variable where the impact of dividend payout to the future earnings growth in regression which done three times is significantly positive, this means hypothesis 1 (h1) in this research accepted. it can be seen that there is a significant value from dividend payout probability variable and there is positive value coefficient from three dependent variables that are eg1, eg3, and eg5. it can be seen that the results from the table above, the earnings growth 1 has a positive coefficient and significant at the value of 0.0479 or has a significance level of 5%. in the regression done in earnings growth 3, there is also a similar result where the coefficient is positive with significance of 0.0011 or has a significance level of 1%, and the last for earnings growth 5, there is also the same result where the coefficient is positive with a significance of 0.0002 or has a 1% significance level. based on the results of the regression of the main variable, dividend payout , the hypothesis described previously has the same result or supports the previous research done by zhou and ruland, 2006 [2] and the theory of signaling hypothesis hypothesis 2 in the second hypothesis, it is assumed that size has negative impact toward future earnings growth. observed from the regression results, for earnings growth 1 there is a significant negative result with a probability value of 0.0030 or has a significance of 1%. furthermore, on earnings growth regression 3 shows that there is still a significant negative correlation of size to future earnings growth in the third year, with a probability value of 0.0569 or significant at 10%. finally, on the regression result for earnings growth 5, there is a significant negative correlation as well, where the magnitude of probability is 0.0369 or has a significance level of 5%. based on the above explanation, from the three regressions that have been done, it shows significant results in accordance with the proposed hypothesis two (h2) in this study. hypothesis 3 based on the third hypothesis in this study there is a significant negative correlation of roa toward future earnings growth. regression results that have been done for eg1, there is a negative correlation but it is not significant. however, in analyzing eg3 obtained different results where there is a significant negative correlation, the coefficient is negative with a probability value of 0.0524 or significant at 10%. in contrast to the results of regression from eg5 which has similar results with eg1, where there is a negative correlation but not to significant correlation. as being analyzed h3 applies to regression that occurs in eg3, thus h3 is accepted at eg 3. why does this happen? through descriptive statistics it can be viewed on the average of highest growth in earnings growth to 3, it indicates the impact is greater than the increase in earnings growth that occurred on 1 period and earnings growth 5 so that it can be significant. roa is one of indicators of profitability by dividing profit of total assets owned by the company. hypothesis 4 the fourth hypothesis in this study, stated that leverage has a positive impact on future earnings growth. the research results found that in eg1, leverage variables have a positive coefficient but not significant. the regression results for eg3 show different results, where there is a positive and significant correlation. the significance level at eg3 is galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) 39 sinergi, volume 9 number 2 september 2019 0.0147 or significant at 5%. however, eg5 has the same result with eg1, where there is a positive yet insignificant correlation. based on the result of panel data regression on table 4, it can be said that hypothesis 4 (h4) can apply to eg3 so that hypothesis is accepted on eg3. companies with high leverage will certainly have more cash which will be used for expansion or other investments (zhou and ruland, 2006). in contrast to companies with low debt levels, it could be because the company does not have the ability to pay it viewed from the negative side, but viewed from the positive side of the company with low leverage, usually the company basically has more cash and no need to perform debt transactions. in this study eg1 and eg5 are not significantly assumed because the average growth of the profits is still below the average of eg3, and still considerate as having no effect although it has the same coefficient as a positive coefficient. hypothesis 5 the fifth hypothesis (h5) in this study stated that earnings yield has negative impact toward future earnings growth. based on the research results, it is found that in eg1, the variable earnings yield has a negative coefficient and significant with probability value of 0.0000 which means the level of significance is 1%. the regression results of eg3 show the same result, where there is a negative and significant correlation. the significance level of eg3 is 0.096 or significant at 10%. in order to substantiate previous results, the same regression results for eg5 has the same result with eg3 and eg1, where there is a significant positive correlation with a probability value of 0.0795 or a significance of 10%. regression results have shown that h5 is acceptable. the rationale for this hypothesis is the earnings yield essentially the inverse or inverse of p / e. where when p / e is high, then it will be difficult to increase the price, thus the value of e / p will experience the opposite condition (zhou and ruland, 2006) [2] hypothesis 6 hypothesis six (h6) stated that past earnings growth has a negative impact on future earnings growth. based on the research results found that in eg1, past earnings growth 1 variable has a negative coefficient and significant with probability value of 0.0267 which means the significance level is 5%. in the regression result for past earnings growth 3 shows the same result, where there is a negative and significant correlation. the significance level in past earnings growth 3 is 0.0000 or significant at 1%. however, the difference occurs in the last regression, ie earnings growth 5 where there is a negative correlation but not significant. based on the results of two similar regressions to h6, it can be said that h6 is acceptable. the rationale is the occurrence of the mean reversion, or the conditions which will return to the average level. thus, if there is a high past earnings growth, then one day its value will revert to a lower which means returning to its average value according to previous research (zhou and ruland, 2006) [2]. however, for a period of five years after the year of observation, past earnings growth is no longer a factor impacting future earnings growth in the long term means that over the longer period of time the variable of past earnings growth has a lesser impact. hypothesis7 the last hypothesis or h7 in this study, stated annual growth in total assets has a positive impact on future earnings growth. the result of this research shows that in eg1, variable ag1 has a positive and significant coefficient with a probability value of 0.0014 which means the level of significance is 1%. the regression result for ag3 also shows similar results, where there is a positive yet insignificant correlation. however, differences occur in the third regression results, where there is a positive and significant correlation. the significance level is 5% with probability value 0.0299. the results of research can be said that h7 is acceptable on eg1 and eg 5. the rationale is a company with high growth indubitably will be followed by high asset growth as well (zhou and ruland, 2006) [2]. based on the explanation of the hypothesis test above, the following is a concluding table 5 as a summary of the exposure of regression examination results and hypotheses. 40 sinergi, volume 9 number 2 september 2019 galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) based on the table 5 above, it can be concluded that the main variables (independent variables) dividend payout positively significant affect on future earnings growth in the next 1.3, and 5 years in future. however, to analyze the control variables through the above table, generally, the longer period of observation of earnings growth, then the variable control will be less easy to predict, or in other words there are other variables that may affecting other than the variable control mentioned in above. iv. conclusion based on the results of research conducted by researcher related to the impact of dividendpayout on future earnings growth and control variables that have been discussed previously (size, roa , leverage, e / p.peg, and also ag in total assets ), it can be concluded in this study, are: 1.the results of this study indicate that the independent variable dividend payout has a positive impact on future earnings growth in the next 1, 3, and 5 years. 2. it is proven that the size of the company (size) measured based on those values of total assets and market value of equity have a significant negative impact on future earnings growth in the next 1.3, and 5 years. 3. there is a significant negative correlation of roa on future earnings growth 3, but not in future earnings growth 1 and 5. 4. there is a significant positive correlation on leverage variable to future earnings growth 3, but not in future earnings growth 1 and 5. 5. there is a significant negative correlation on the earnings-yieldonearnings growth of 1, 3 and 5 years. 6. there is a negative significant correlation of variable earnings growth past on future earnings growth 1 and 3, but not in future earnings growth 5. 7. there is positive significant correlation of variable annual growth in total assets on future earnings growth 1 and 5, but not in the 3rd year’s future earnings growth . based on the explanation to seven hypotheses that have been proven in the research, it can be seen that the control variables used in this study there are different results on eg1, eg3, and eg5. the results showed that control variables were highly impacting during early eg with coefficients corresponding to the hypothesis, but for eg 3, and eg 5 had fewer or even in a longer period impact the control variables can be insignificant. the results and implications of this study can be extended in three ways. in order to strengthen the results of the study, this study suggests the recommendation for investors, companies and areas for future research.first, investors in investing should choose a company that pays dividends in large amount and constant in recent years and also pay attention to always positive eps of the company in each year (1.3, and 5 years earlier). second, companies should be very attentive to earnings of the company and also the amount of dividends paid since the dividend itself is the center of attention and consideration for investors to invest and measure the company’s ability to generate profits in the future. third, adding other control variables that has another impact other than variables in this research such as the impact of capital structure to company profitability by using control variable such roe so that if it is examined in long term there will be more variable control with significant result (rosyadah, faizatur , at al., 2013) [16] references [1] kusuma, i putu andika artha. 2012. analisis faktorfaktor yang mempengaruhi dividend payout ratio pada perusahaan manufaktur yang terdaftar di bursa efek indonesia. skripsi fakultas ekonomi universitas warmadewa [2] zhou, ping and william ruland.2006. dividend payout and future earnings growth. financial analysts journal, vol.62 (3), 58-69. cfa institute.thesis: [3] myers, stewart. 1984. the capital structure puzzle, journal of finance, vol. 39 (3),575-592. [4] arnott r.d., & asness c.s. 2003. surprise! higher dividends = higher earnings growth. financial analysts journal, 59(1), 70-87 [5] tong, y. h., dan b. miao.2011. are dividends associated with the quality of earnings?. accounting horizons .vol 25: 183 – 205, https://doi.org/10.2308/ acch.2011.25.1.183. [6] thanatawee, yordying. 2011. life-cycle theory and free cash flow hypothesis: evdence from dividend policy in thailand. international journal of finance research,. vol.2 (2), 52-60, https://doi. galuh setiowati harsono1, b. yuliarto nugroho2 the impact ofdividend payout on fututre earnings growth in indonesia stock market (idx) 41 sinergi, volume 9 number 2 september 2019 org/10.5430/ijfr.v2n2p52 [7] sirait, febriela dan siregar, sylvia veronica.2014. dividend payment and earnings quality: evidence from indonesia. international journal of acoounting and information management, vol.22 , 103-117 [8] atmaja, lukas setia. 2001. manajemen keuangan. yogyakarta:andi [9] al-najjar, basil dan belghitar, yacine. 2011. corporate cash holdings and dividend payment: evidene from simultaneous analysis, managerial and decision economics, vol 32, (4), 231-241 [10] suwardjono. 2013. teori akuntansi: perekayasaan pelaporan keuangan. edisi ketiga. yogyakarta: bpfe [11] bursa efek indonesia http://www.idx.co.id [12] kustodian sentral efek indonesia http://web. ksei.co.id [13] gujarati,d.n.,porter,.d.c. (2009). basic econometrics. (5th ed.), mcgraw-hill/irwin, [14] fama, e.f and french, k. the equity premium, the journal of finance, vol 57, no 2, 637-659 [15] mahfoedz, mas’ud.1994. financial ratio analysis and the predictionof earning change in indonesia. .kelola no 7/iii/1994. 114-137 [16] rosyadah, faizatur, et al.,2013. pengaruh struktur modal terhadap profitabilitas (studi pada perusahaan real estate and property yang terdaftar di bursa efek indonesia (bei) periode 2009-2011. fakultas ilmu administrasi. universitas brawijaya malang 21 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city martinus buulolo1*), yanto2), kepi kusumayanti3) 1, 2) sme accounting, akademi komunitas dharma bhakti bangka, bangka, indonesia 3) sharia business management, institut agama islam abdullah said batam, indonesia e-mail: 1*) martinakdbb.ac.id, 2) yantoakd@gmail.com, 3) kepikusmayantibatam@gmail.com abstract organizations have quite serious challenges, namely managing, developing in achieving the end results of employee performance. creative resources bring renewal, contribution to the interests of modern organizations at work. this study aims to determine the involvement of work discipline, motivation, organizational culture, and leadership style on employee performance. the approach used in research uses a quantitative descriptive approach. 69 respondents as data sources in this study were employees of galang district, batam city. the alternative method used to analyze this research is the statistical package for the social sciences (spss). each variable is tested for validity, reliability test at the initial stage. furthermore, the variables of work discipline, motivation, organizational culture, and leadership style will be tested on employee performance which is the second stage of testing. work discipline is proven to have a positive and significant effect on employee performance in research, and organizational culture shows positive results and has a significant effect on employee performance, and leadership style shows positive and significant results on performance. then work discipline has a negative and significant effect. lastly, other findings about the relationship between work discipline, motivation, organizational culture, and leadership style show positive and significant results on their involvement in employee performance. keywords: work discipline, motivation, organizational culture, leadership style, employee performance i. introduction sutrisno (2019), interprets that the main assets with sentiment, desire, ability, information, support, strength and work (proportion, taste and purpose) are human resources. authoritative efforts to achieve goals are influenced by every possibility of these human assets. it is difficult for a company to achieve its goals without human resources, regardless of how up-to-date the innovation is, how much data is generated, how much capital is available, or the amount of materials available. according to bintoro (2017), states that the human resource council is a science or technique about how to control the relationships and work of human resources or workforce owned by individuals in a capable and sincere way and can be used to achieve common goals. from associations, delegations and the public to improve. leader human resources depend on the possibility that each delegate is a human, not a machine and in addition to a business resource. affiliates are compartments or places where affiliates accumulate to work together in an appropriate, controlled and directed goal and method to achieve certain goals by utilizing existing assets. quality worker execution brings restoration and makes commitments that benefit society. efforts to further encourage performance drawing are the most serious managerial test because the results in achieving definite goals depend on the concept of human resources presented in them. estimated execution in an association is an activity related to mailto:yantoakd@gmail.com 22 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 various exercises that have been completed by the association to be used as a critique in obtaining data on the effectiveness of the execution of an authoritative exercise. this is done to achieve hierarchical goals that are both current and long term. good work discipline when the procedures that have been made are carried out jointly by all agency employees. to achieve quality employee performance according to agency targets cannot be separated from work time discipline that has been carried out by employee personnel. discipline in working time and work that is completed on time can change the way the agency itself works to be better and of higher quality. work completed on time will generate encouragement for other employees as a role mode at work. discipline is to be carried out as a basis for obedience and obedience in work. in addition to work discipline, inspiration is the main catalyst that exists in representatives to work and try to achieve normal work results. inspiration as expected is in the representative staff in completing work according to office targets. motivation is inseparable from human effort to strive optimally. motivation is not something that is expected from other parties but rather as a self-image and maximizing existing potential. in addition, when someone has work experience, they can use it to tend to support the achievement of the agency's final goals. organizational culture is a culture that has existed since the family environment, and continues to be developed within the organizational environment. organizational culture is an opportunity to show how to socialize to individual employees within the internal and wider community or external to the organization. providing a very valuable culture to be integrated into the real world of work. an attractive organizational culture will be reflected in each individual combined by the employee's personal work team, forms of cooperation and interaction between individuals will produce innovative and creative work. leadership style is a leadership style in directing an organization that cannot be separated from the policies and decisions made. the leadership style tends to prefer to focus on the development and goals of the agency. good institutions can be determined by the style of leadership to direct and advance through the policies that have been made. the leadership style needs to evaluate the results achieved by the agency as a whole by paying attention to other parts that are less supportive, or not optimal in their achievements for repairs and rearrangements. employee performance can be measured from the success of the institution as a whole in one period. the results of the agency's achievements are a matter of pride for all employee personnel to continue to be diligent, obedient, and motivated in providing the best for the organization. organizational success as a form of cooperation in working so as to produce value as measured by the value of success. keeping in mind the previous explorations, much research has been directed at the performance of workers with various factors influencing the autonomous factors and the dependent variable. research directed by muslimat and wahid, (2021), that work discipline affects representative implementation. nasrul, et al., (2021), motivation positively and significantly affects worker performance. jamaluddin, et al., (2017), agency culture has an impact on worker execution. another focus by tolu, et al., (2021), states that leadership style basically influences the performance of workers positively and significantly. this study aims to see and dissect the impact of work discipline, motivation, organizational culture, and leadership style on employee performance. therefore, this study is entitled the effect of work discipline, motivation, organizational culture, and leadership style on employee performance in galang district, batam city. ii. literature review work discipline shows a condition or activity that exists in representatives to comply with guidelines as submission to work in associations. assuming the standards that exist in the association are ignored, or repeatedly abused, the representatives have poor discipline. on the other 23 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 hand, assuming the worker adheres to authoritative discipline, it would represent a state of intense discipline. sutrisno (2016), reveals that discipline is a preparatory mindset and a single desire to obey and agree to the guiding principles that apply around it. hasibuan (2015), discipline is the consideration and desire of people to comply with all important authoritative rules and typical practices. sutrisno (2016), discipline is the way individuals behave according to rules, methods or work discipline that exist are mindsets, approaches to action, and exercises that are according to progressive rules, both organized and unwritten. from some of the above understandings, discipline is a mindset or individual desire to continue to agree with the standards that apply in an affiliate. sutrisno (2019), reveals that inspiration is an element that encourages individuals to complete a certain movement, inspiration is often interpreted as a driving variable for the way individuals behave. every move completed by a high priority individual is an element that drives the action. as a result, the factors that induce a person to carry out certain movements are generally the needs and desires of the individual. sulistiyani (2018:), states that inspiration is a way of providing consolation to subordinates so that subordinates can work within the limits given to ideally achieve hierarchical goals. the most common way of providing support is a series of exercises that must be completed or performed to foster representative comfort to work according to hierarchical goals. mangkunegara (2015), revealed that inspiration is a condition or energy that drives coordinated or coordinated representatives to achieve organizational hierarchical goals. associations are characterized as social units of a collection of people (individuals), who work together with each other according to an organized pattern with a specific purpose, so that each individual from the association has their own obligations and abilities, and as a unit has a specific purpose, and furthermore has boundaries. clear boundaries, with the aim that the association can be completely separated from its current state. sutrisno (2019), describes progressive culture as a game plan of values, beliefs, doubts, or principles that have been valid for some time, set and followed by people from a relationship as a set of rules that are concluded and manage definite problems. progressive culture is also called corporate culture, which is a set of values or norms that have been in force for a long time, embraced by people from affiliates (workers) as a guideline for behavior in managing various tiered (hierarchical) issues. robbins (2015), argues that hierarchical culture or hierarchical culture is a collection of values, standards, habits, and approaches to work together and influence the way individuals behave and activities from associations. these qualities and common practices have developed over time and really have an impact on how an association is run. sofyan et al., (2018), revealed that administration is a cycle in which an individual can turn into a pioneer through continuous action so that he can influence the people he leads (supporters) to achieve hierarchical goals. the relationship between the pioneers and those who are moved is a cycle of initiative because pioneers need enthusiasts and supporters need pioneers. although pioneers and adherents are interrelated, pioneers often enhance and elaborate connections, transmit and follow connections so that authoritative goals as envisioned in the vision, mission, plans, and hierarchical methodologies can be achieved. sofyan et al., (2018), revealed that driving style is a standard that becomes a person's goal when individuals try to influence the way other people act according to their perspective. the style of authority is the typical way the pioneer acts while influencing his subordinates, what the pioneer chooses, the way the pioneer acts in influencing various people to issue power. driving style is a set of ways used by pioneers to influence subordinates so that progressive goals are achieved or it can also be said that driving style is a description of behavior and techniques that are preferred and often applied by a pioneer. widodo (2018), argues that driving is a science that looks outside and inside how to direct, influence, and supervise others to complete work as indicated by the orders made. regulatory checks are made simultaneously with the developing components of human life. execution is a 24 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 consequence of the work in terms of quality and quantity carried out by a delegation in completing its commitments in accordance with the commitments given to it. edison (2016), states that shows are the result of cycles that are hostile and are anticipated for a certain period of time considering predetermined conditions or plans. in general, execution can be interpreted as the overall pattern of a person's work whose results can be used as motivation to conclude whether a work is good or not. sutrisno (2019), revealed that implementation or work performance is the result of work that has been done by someone from their work behavior in carrying out work training. execution is the implementation of plans that have been prepared. execution is completed by human resources who have the capacity, ability, inspiration and interest. how the association values and treats its hr will have an impact on its attitude and behavior in carrying out its obligations. judging from the assessment of these experts, the notion of implementation as a result of work carried out by a person is adjusted to the work or duties of that person in an association associated with a proportion of certain characteristics or principles of the association where a single work is held. the framework for thinking about the relationship between work discipline, motivation, organizational culture, and leadership style with employee performance is explained in figure 1, both partially and simultaneously, based on a literature review that has been explained and supported by several previous studies. figure 1. research framework this research framework can be used to formulate research hypotheses that are supported by previous studies and reads as follows: employee performance is thought to be influenced by work discipline, h2: employee performance is thought to be influenced by motivation, h3: the possibility that employee performance is influenced by organizational culture, h4: performance employees are thought to be influenced by leadership style, h5: employee performance can be influenced by work discipline, motivation, organizational culture, and leadership style. iii. research methods the type of examination that is determined precisely, orderly, and clearly arranged from the start to the creation of the exploratory configuration is the quantitative methodology used in this review. this research uses primary data, namely information from people who know about the research subject. sugiyono (2015) defines primary data as a data source that provides data directly to data collectors. data collection techniques include closed questionnaires made using the google form and observation interviews. the participants in this study were 69 batam city employees from galang district. saturated sampling technique (census) was used for sampling, with 43 male informants and 26 female informants so that the total population became 69 people. the level of education of senior high school employees is equal to 22 people, 43 people for bachelors, and 4 masters, so it is very suitable to be used as an object of research because it is an institution that has procedures and rules for working, with the hope of being able to make a big contribution to the institution. the likert scale is used to measure research instruments, and indicators on research variables are used to explain questions. validity and reliability tests are used in instrument analysis techniques (measuring instruments), and inferential statistics are used in data analysis techniques. with normality, multicollinearity, and heteroscedasticity tests, the classical assumption test is performed as a condition of linear regression analysis to ensure that the test results are not biased. to find out how much influence the independent variables have on the dependent variable, multiple linear regression is used. hypothesis testing consists of partial and simultaneous testing to determine the relationship between the independent and dependent variables. by using spss 23.0 software, we tested the coefficient of 25 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 determination to determine the extent to which the model can positively influence the dependent variable. iv. results & discussion galang district office in batam city, riau archipelago province, became the location of this research. based on population information, the eight districts that are members of the galang district will reach 18,130 people in 2021 with an area of 351.00 km2. compliance with work discipline, building a good organizational culture, maximizing self-motivation, and a leadership style that directs organizational activities so that they run smoothly and achieve the best results, all of which are needed to achieve optimal organizational performance results. collaboration between employees is needed to work according to procedures and cannot be separated from adherence to work discipline. table 1 hypothesis testing results value of t count hyp. variable coefficients t-value desc. h1 wd 647 8.175 sig. h2 m -410 -4.827 sig. h3 oc .414 5.199 sig. h4 ls .383 4.652 sig. source: output spss 23.0 the impact of the independent factors on the dependent variable is somewhat resolved by exploiting the follow-up effect of the t-test investigation of the factual test. the goal is to analyze the t table and determine the value of t. this test is considered critical with the assumption that the value of the t test results is not appropriate at the 0.05% level of importance. if t count > t table, the independent factor produces a positive difference. the size for this test is df = n-2 (69-2), and the coefficient in table t is 0.05 at df 67 of 1.667. the incentive t specified for speculation on the principle of work discipline is more prominent than the t table, and the importance value is below 0.05%, indicating that ha is recognized and ho is rejected. this shows that the principal's speculation affects the representative's execution. based on table 1 for the second speculation about inspiration, the specified t value is in the negative range and the critical value is below 0.05%. subsequently, ha disbanded and ho was recognized, indicating that subsequent speculation influenced representative executions but greatly. the third speculation about hierarchical culture is supported in the way that the t value is more important than the t table and the importance value is below 0.05%, indicating that the third speculation affects the execution of representatives. judging from table 1, the fourth speculation is that the style of initiative significantly influences the implementation of representation on the grounds that t count is more important than t table and the importance value is below 0.05%. therefore, ha is recognized and ho is discarded. table 2 hypothesis testing results value of f count source: output spss 23.0 table 2 tests the fifth speculation at once on the dependent variable, showing that the specified f value of 27.008 is greater than f table 2.51, and the large value of 0.000 is below 0.05%, then at that time ha is recognized, and ho is rejected, so it is very it might be considered that speculation testing meanwhile has a positive and tremendous impact on worker performance. 26 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 effect of work discipline on employee performance given the consequences of examining information, the t-count value of 8.175 is more important than the t-table of 1.667, and the critical value of 0.000 is not a 0.05% error rate. in accordance with the dynamic model in this study ho was rejected and ha was acknowledged, the work discipline completion variable had an effect on representative implementation. the impact of this variable of work discipline is closely related to the stability of the organization's administration so that the representatives can show consistency and standard work discipline. these results are in accordance with the research of ichsan, et al., (2020), that work discipline affects the implementation of representation within the assistant general for the regional military (ajendam)-i bukitbarisan medan. the effect of motivation on employee performance considering the consequences of examining and handling information, the inspiration variable shows a tcount of 4.827 which is lower than the t-table of 1.667. it should be cheaper because the values are short, and the critical value of 0.000 is below 0.05%. as per the dynamic measures in this review, ho is recognized and ha is dismissed. an ending that doesn't make a positive difference, but is invaluable to worker performance. in addition to inspiration from representatives, various parties are also expected to continue to provide inspiration to representatives, especially superiors who have important expertise in empowering workers to work with high enthusiasm. these results are not in accordance with the insights of sutanjar, t., and saryono, o. (2019), where persuasive variables affect the implementation of representation in satpol pp kota banjar. the influence of organizational culture on employee performance given the ramifications of checking information on hierarchical cultural factors, it shows that t arithmetic 5.199 is more important than t table 1.667, and a large value of 0.000 is smaller than a standard error of 0.05%. as shown by the dynamic measures that ho is removed and ha is recognized, completion of hierarchical culture significantly affects worker performance. a pleasant hierarchical culture can affect the consequences of authoritative implementation, work in groups, build a work culture that is for all representatives, remind each other, regarding individual workers, then create a different culture and be recognized by all representatives at work. these results are in accordance with the research of dunggio, s. (2020), where a hierarchical culture influences the presentation of dungingi village office workers, gorontalo city. the influence of leadership style on employee performance considering the side effect of checking information on the authority style variable, it shows that the t-value of 4.652 is more important than the t-table of 1.667, and the critical value of 0.000 is not exactly 0.05% error rate. as shown by the dynamic model, ho is rejected, and ha is acknowledged. finally the initiative style variable influences worker execution. each representative expects a pioneer who provides solid support and can provide arrangements assuming there are obstacles in tasks, as well as acceptance to all subordinates, implementing information-based administration that is proficient in conveying data, titles, to make it easier for workers at lower levels to be able to understand, all approaches and techniques from superiors so that subordinate execution activities produce ideal values. these results are in accordance with the research of batubara, s.s. (2020), that the initiative style has a significant effect on the exhibition of pt. inalum acquisition division employees. the effect of work discipline, motivation, organizational culture, and leadership style on employee performance given the ramifications of checking the information, concurrent tests show that the determined f value of 27.008 is more prominent than the f table of 2.51, and the large value of 0.000b is lower than the 0.05% error rate. according to the 27 martinus buulolo 1*), yanto2), kepi kusumayanti3 the influence of work discipline, motivation, organizational culture, and leadership style on employee performance galang district, batam city sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 dynamic standard that temporary independent factors make a positive difference, and a very large or very high relationship, finally ho is omitted, and ha is recognized. to achieve better representative performance, work discipline provides decent results for the organization, inspiration continues to be created through self-development to be able to strive to complete work well, create a hierarchical culture so that there is harmonization, provide good guidance in administrative style, expert in human resources man. v. conclusion work discipline significantly affects the implementation of representation. that, every standard that has been made must be carried out according to material guidelines. inspiration doesn't make a definite difference, but it does make a huge difference in vicarious execution. furthermore, to inspire workers, they must be integrated, involved with hierarchical exercises, and given appreciation as an increase in inspiration. organizational culture fundamentally influences rep execution. various circles of society, and united in one association, assume, to harmonize work. leadership style greatly influences the execution of workers. proficient initiative provides convenience to all representatives, consequently having a favorable effect on hierarchical execution outcomes. work discipline, inspiration, organizational culture, and leadership style have a significant effect on the performance of employees in galang district, batam city. reference aji, t. 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(2015). the impact of inspiration on representative work discipline at the business and exchange office of jambi region, logical diary of financial matters and business vol.6 no.1, 49 50. sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 92 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 sutarmin 1), saibat 2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: sutarmin2415@gmail.com1), ssaibat14@gmail.com2) abstract. this research was conducted at the investment and one-stop services office / dinas penanaman modal dan pelayanan terpadu satu pintu (dpmptsp) of east java province. this research aims to provide information related to promoting strategy and policy, expanding the spread of investment and building the investment climate in east java. this study uses a qualitative method with a descriptive approach. data collection techniques can be done by observation, questionnaire, documentation and a combination of all. the data sources used in this study are primary data and secondary data. the informants in the study were the office in the east java provincial government, regency / city dpmptsp in east java, internal affairs in the east java province dpmptsp. while the sampling used in this study is saturated sampling. based on the results of the study it was concluded that 1. improved coordination between the central government, provincial government and regency / city governments of east java, 2. designing an online-based market place that sells investment project ready to offer (ipro) projects 3. improving the investment climate to make it more conducive and overlapping regulations, increasing bureaucratic efficiency through simplifying business licensing procedures, regulations and law enforcement. 4. encouraging the creation of a one-door integrated licensing service institution in the regency/city. 5. encouraging investment in businesses that are less attractive to investors. 6. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 7. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. improving the investment climate so that it is more conducive and regulations are overlapping, increasing bureaucratic efficiency through simplifying business licensing procedures, regulations and law enforcement. 4. encouraging the creation of a one-door integrated licensing service institution in the regency/city. 5. encouraging investment in businesses that are less attractive to investors. 6. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 7. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. improving the investment climate so that it is more conducive and regulations are overlapping, increasing bureaucratic efficiency through simplifying business licensing procedures, regulations and law enforcement. 4. encouraging the creation of a one-door integrated licensing service institution in the regency/city. 5. encouraging investment in businesses that are less attractive to investors. 6. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 7. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. encouraging the creation of a one-door integrated licensing service institution in the regency/city. 5. encouraging investment in businesses that are less attractive to investors. 6. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 7. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. encouraging the creation of a one-door integrated licensing service institution in the regency/city. 5. encouraging investment in businesses that are less attractive to investors. 6. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 7. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. keywords: investment; equity; development. sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 93 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 i. introduction one of the important variables driving economic growth is investment. investment can be influenced by foreign and domestic investment. factors that can affect investment that are taken into consideration by investors in investing their capital include: first, natural resources factors, second, human resources factors, third, political and economic stability factors, to ensure certainty in doing business, fourth, government policy factors, fifth, convenience factors in licensing. investment development is a policy that has an economic impact such as an increase in the number of goods and services, added value creation, use of labor and other economic resources (use of labor and other economic resources), investment development in the regions can increase the economic capacity of the local community which will directly improve the welfare of the community in general, and will also have a positive impact on increasing the financial capacity of the region. according to the law of the republic of indonesia number 25 of 2007 concerning investment says that. the purpose of organizing investment, among others, is to: (a). increasing national economic growth; (b). creating jobs; (c). promote sustainable economic development; (d). increasing the competitiveness of the national business world; (e). increase national technological capacity and capability; (f). encourage the development of the people's economy; (g). processing economic potential into real economic strength by using funds originating, both from within the country and from abroad; and (h). improve community welfare. therefore the government establishes basic investment policies (capital investment) for: (a). encourage the creation of a conducive national business climate for investment (capital investment) to strengthen the competitiveness of the national economy; and (b). accelerating the increase in investment. therefore the government establishes basic investment policies (capital investment) for: (a). encouraging the creation of a conducive national business climate for investment to strengthen the competitiveness of the national economy; and (b). accelerating increase in investment. encourage the creation of a conducive national business climate for investment (capital investment) to strengthen the competitiveness of the national economy; and (b). accelerating the increase in investment. therefore the government establishes basic investment policies (capital investment) for: (a). encouraging the creation of a conducive national business climate for investment to strengthen the competitiveness of the national economy; and (b). accelerating increase in investment. encourage the creation of a conducive national business climate for investment (capital investment) to strengthen the competitiveness of the national economy; and (b). accelerating the increase in investment. therefore the government establishes basic investment policies (capital investment) for: (a). encouraging the creation of a conducive national business climate for investment to strengthen the competitiveness of the national economy; and (b). accelerating increase in investment. encouraging the creation of a conducive national business climate for investment to strengthen the competitiveness of the national economy; and (b). accelerating increase in investment. encouraging the creation of a conducive national business climate for investment to strengthen the competitiveness of the national economy; and (b). accelerating increase in investment. the development of interest in foreign investment and interest in domestic investment in east java in 2014-2022 is presented in the following figure which is presented with the principle permit value and investment realization value shown in the following figure figure 1: east java foreign investment performance 2014-2022 source: primary data processed sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 94 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 figure 2: east java pmdn performance 2014-2022 source: primary data processed the achievements of the realization of foreign investment and domestic investment in east java in 2014-2022 continue to show fluctuations up and down. for example, based on existing data, foreign investment from 2015 to 2019 has continued to decline. the decline in foreign investment as well as domestic investment actually stems from many factors that become problems such as the inefficient licensing service process, the still high gap between investment interest and investment realization, the low investment competitiveness, the investment climate that is still not conducive, the lack of availability adequate investment data and information, inadequate investment promotion and cooperation, weak control of investment implementation, lack of utilization of information technology that supports ease of investment. based on the data and description above, the researcher is interested in conducting research related tostrategy and policymaintaining, encouraging, expanding the distribution of investment and building the investment climate in east java. formulation of the problem "how strategy and policy maintaining, encouraging, expanding the spread of investment and building the investment climate in east java?" research objectives and benefits research purposes: based on the formulation of the problem above, the purpose of this research is: "to provide information related to strategies and policies to encourage, expand the spread of investment and build an investment climate in east java. benefit: a. by knowing the fluctuations in the investment value of both fdi and pmdn, it can increase the conducivity of investing in east java, so that in the future investment services will be better, easier and transparent which will impact on the growth of investment realization in east java. b. provide input in an effort to inventory changes in investment permits that are able to create a conducive foreign investment climate in east java. ii. literature review 2.1. strategy according to david (2015) strategy is a way to achieve long-term goals, business strategies can be in the form of geographical expansion, diversification, acquisitions, product development, market penetration, employee rationalization, divestments, liquidations, and joint ventures. meanwhile, according to tjiptono (2019) says that strategy is a set of related overall waysby implementing an idea, a plan within a predetermined time (strategy is a set of overall ways related to the implementation of an idea, a plan within a predetermined time). according to johnson and scholes (2005), strategy is the long term direction and scope of an organization that achieves benefits for the organization through the configuration of resources in a challenging environment, to meet market needs and meet stakeholder expectations. which means strategy is the long-term direction and scope of the organization that achieves benefits for the organization through the configuration of resources in a challenging environment, to meet market needs and meet stakeholder expectations. stephanie k. marrus (2022) said strategy is a process of determining top management plans that focus on the long-term goals of the organization, accompanied by the preparation of methods or efforts on how to achieve these goals. according to(anthony)anthony, parrewe, and kacmar (2013) strategy is the formulation of organizational missions and goals, including action plans to achieve goals by explicitly considering the conditionscompetition and the influence of forces from outside the organization that directly or indirectly affect the continuity of the organization. sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 95 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 4.2 investment according to fitz gerald (1981), investment as an activity related to efforts to withdraw the resources used to procure capital goods at the present time which will then generate a flow of new products in the future. which means investment as an activity related to efforts to withdraw the resources used for the procurement of capital goods at this time which will then generate a flow of new products in the future. james c. van horn (2014) defines the notion of investment as an activity carried out by utilizing current cash with the aim of obtaining goods in the future (investment as an activity carried out by utilizing current cash with the aimof obtaining goods in the future come). according to sadono sukirno (2016),. sunariah (2011) says investment is an investment for one or more assets that are owned and also usually for a long time with the hope of getting profits in the future. 4.3 foreign investment foreign investment is a flow of capital flows originating from abroad that flow to the private sector either through foreign direct investment or indirect foreign investment in the form of a portofolio. according to the law of the republic of indonesia number 25 of 2007 concerning foreign investment, it states that "foreign investment is an investment activity to conduct business in the territory of the republic of indonesia carried out by foreign investors, both those using foreign capital wholly (completely foreign capital) or joint foreign capital with domestic investors (domestic investors). the meaning of foreign investment in this law only includes direct foreign investment which is carried out based on the provisions of the law and which is used to run companies in indonesia, in the sense that the owner of the capital directly bears the risk of the investment. krugman & obsfeld (2012) states that what is meant by foreign investment is an international capital flow where companies from one country establish or expand their companies in other countries. the salient feature of this foreign investment is that foreign investment does not only involve the transfer of resources but is also related to control. foreign investment can be in the form of opening new factories or company branches in other countries, merging with foreign companies or by acquiring foreign or domestic companies that already exist in other countries foreign investment does not only involve the transfer of resources but is also related to control. foreign investment can take the form of opening a new factory or branch company in another country, merging with a foreign company or acquiring an existing foreign or domestic company in another country). according to salvatore (2011) foreign investment includes investment into real assets in the form of building factories, procuring various types of capital goods, purchasing land for production purposes, purchasing various inventory equipment, and so on. the procurement of foreign capital is usually accompanied by the implementation of management functions, and the investors themselves retain control over the funds they have invested production needs, purchase of various inventory equipment, and so on. procurement of foreign capital is usually accompanied by the implementation of management functions, and investors themselves are in control of the funds invested). 4.4 domestic investment according to the law of the republic of indonesia number 25 of 2007 concerning investment, domestic capital is capital owned by the republic of indonesia, individual indonesian citizens, or business entities in the form of legal entities or non-legal entities. domestic investment can be made in the form of a business entity in the form of a legal entity, not a legal entity or an individual business, in accordance with statutory provisions.domestic and foreign investors who invest in the form of a limited liability company are carried out by: (a). taking shares at the time of establishment of the limited liability company; buying shares; and take other ways in accordance with the provisions of the legislation. iii. research methodology 3.1. research approach. the type of research used is descriptive qualitative, namely a method or technique for collecting, processing, presenting and analyzing data so that it can provide a systematic, factual and accurate description of the facts, nature and relationships between the phenomena investigated. the reason for using a qualitative method with a descriptive approach has the reason that researchers can look more deeply and know the strategies used sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 96 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 by dpmptsp in increasing investment in east java. descriptive qualitative research is a research method used in research by looking at natural objective conditions and based on the philosophy of postpositivism where in this case the researcher plays the role of the key instrument (sugiyono, 2017). 3.2. data types and sources the types of data used in this study are primary data and secondary data and the data sources used are the offices/skpd in the east java provincial government, district/city dpmptsp in east java, internal field in east java province dpmptsp and sources officially published by the national single window for investment (nswi) investment coordinating board. the core question underlying this study focuses on trend analysis of the development of foreign investment in east java. the data used as a reference for measuring the above criteria comes from the national single window for investment (nswi) of the investment coordinating board. 3.3. method of collecting data the data collection technique used was distributing questionnaires through an online application system, distributing instruments, and studying documentation. this technique is a study of references related to research problem factors. the documents referred to include books, articles containing pmdn & pma investments in east java with sources from the national single window for investment (nswi) issued by the investment coordinating board. 3.4. analysis techniques data analysis was carried out in a descriptive quantitative and qualitative way a. qualitative analysis was carried out by describing the trend of investment development in east java. description of the investment movement rate for the period 2014 to 2022 based on the business sector and area carried out in east java. thus, it can be seen the level of distribution of investment by district/city and business sector in east java. data is collected through documentation, then data display is carried out, namely compiling data, then simplification is carried out according to data needs; the next step is presenting the data in the form of images. then interpreting the comparative data and the final step is formulating conclusions and finally providing recommendations according to(sugiyono 2017)carried out by presenting information from various relevant sources, both in the form of literature figure 3: descriptive data analysis steps iv results and discussion 4.1. development of east java fdi and pmdn contribution to national investment performance 2014-2022 table 1: contribution of east java fdi to national fdi year 2014-2022 pma jawa timur (juta $) 1.802.505,9 2.593.377,3 1.941.034,5 1.566.657,0 1.333.380,3 866.281,6 1.575.459, 8 1.849.172, 6 2.171.006, 1 pma nasional (juta $) 28.529.698,5 29.275.940,8 28.964.074,8 32.239.751,8 29.307.907,7 28.208.760,7 28.666.272,2 31.093.069,0 33.398.318,2 kontribusi terhadap pma nasional 6,32% 8,86% 6,70% 4,86% 4,55% 3,07% 5,50% 5,95% 6,50% source: primary data processed figure 4: contribution of east java fdi to national fdi based on figure 4 above, it shows that east java's fdi performance against national fdi shows that in 2015 it experienced an increase compared to 2014, namely from 6.32% to 8.86%. meanwhile, starting in 2014-2019 it showed a downward trend from 8.86% to the lowest point of 3.07%. however, starting in 2019-2022 foreign investors in east java have started to show a positive trend, where starting at 3.07%, they have continued to increase until in the third quarter of 2022 they have been able to achieve an increase to 6.50%. table 2: contribution of east java pmdn sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 97 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 to national pmdn year 2014-2022 keterangan 2014 2015 2016 2017 2018 2019 2020 2021 2022 pmdn ja wa timu r (juta rp ) 38. 131.964,7 35. 489.794,2 46.331.573,4 45.044.540,4 33. 333.129,8 45. 452.714,1 55. 660.575,2 52. 552.238,5 48.301.738,9 pmdn na sio n al (juta rp ) 156. 126. 157, 0 179. 465. 867, 2 216. 230.848,1 262. 350.546,9 328. 604. 916, 4 386. 498. 388, 9 413. 535. 523, 5 447. 063. 646, 4 413. 152.003,0 ko ntrib usi ja wa timur 24,42% 19,78% 21,43% 17,17% 10,14% 11,76% 13,46% 11,75% 11,69% figure 5: contribution of east java pmdn to nationa l pmdn based on the illustration in figure 5 above, it shows that the performance of east java pmdn to national pmdn shows that in 2015 it has decreased compared to 2014, namely from 24.42% to 19.78%. meanwhile, in 2016 there was an increase compared to 2015, namely from 19.78 to 21.43%. however, in 2016-2018 there was a decreasing trend, namely in 2016 21.43% to 10.14% in 2018. in 2018-2020 there was an increasing trend from 10.14% in 2018 to 13.46% in 2020. and for two consecutive years from 2020 to the third quarter of 2022, contribution developments tend to decrease from 13.46% in 2020 to 11.69% in 2022. 4.1. distribution of east java foreign investment by country of origin 2021-2022 figure 6: east java foreign investment value distribution 2021-2022 (000$) based on figure 6, during the 2021-2022 period it shows investment performance based on country of origin. the ten largest countries are the united states, which is the country that has the most investment in east java with a contribution of 34% of the total fdi in east java or the investment value that awarded in the amount of 1,377,444.6 (thousand $). followed by hong kong, prc with a contribution of 15% of the total fdi in east java or an investment value of 589,909.8 (thousand $). the order of the ten countries is the united states, hong kong, china, singapore, japan, switzerland, the netherlands, south korea, china, malaysia. other countries with potential for promotion and investment cooperation in east java are taiwan, australia, cayman islands, west samoa, germany, denmark, belgium, england, brazil, british virgin islands, luxemburg. 4.1. distribution of foreign investment in east java regencies/cities 2021-2022 figure 7: distribution of value and percentage of fdi in east sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 98 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 java regencies/cities 2021-2022 based on figure 7, during the 2021-2022 period it shows the performance of fdi based on district/city area, ten districts/cities are gresik regency and is the largest district in east java with a contribution of 41% of the total fdi in east java or the investment value provided of 1,638,271.7 (thousand $). followed by sidoarjo regency with a contribution value of 17% of the total fdi in east java or an investment value of 696,234.3(thousand$). third place is pasuruan regency with a contribution value of 13% of the total fdi in east java or an investment value of 538,450.8 (thousand $), fourth place is the city of surabaya with a contribution value of 7% of the total fdi in east java or an investment value of 269,769.5(thousand $), fifth place is malang regency with a contribution value of 5% of the total pma in east java or an investment value of 212,918.5(thousand $). the ten urban regencies, if sorted by the amount of foreign investment value, are gresik regency, sidoarjo regency, pasuruan regency, surabaya city, malang regency, tuban regency, mojokerto regency, lamongan regency, jember regency, jombang regency. another regency/city which still has potential for fdi in east java is a. probolinggo regency (electricity, gas and water sector, other industrial sector, wood industry sector, food crop, plantation and livestock sector, fishery sector, food industry sector, trade and repair sector) b. bondowoso regency (mining sector, food industry sector, trade and repair sector, food crops, plantation and livestock sector). c. madiun regency (potential sectors that need to be developed in madiun regency are leather goods and footwear industry, food industry, food crops, plantation and livestock, housing, industrial and office areas, transportation, warehouses and telecommunications); d. situbondo regency (food industry sector, other industry sector, trade and repair sector, fisheries sector, food crops sector, plantation and livestock). e. blitar regency (food crops, plantation and livestock sector, food industry sector, trade and repair sector). 4.2. distribution of domestic investment in east java regencies/cities 2021-2022 figure 8: distribution of pmdn by regency/city of east java 2021-2022 based on figure 8, during the 2021-2022 period it shows pmdn performance in districts/cities, ten districts/cities are surabaya city, which is the largest district in east java with a contribution of 43% of the total pmdn in east java or the investment value provided of 43,875,280.8 (rp). followed by gresik regency with a contribution value of 14% of the total pmdn in east java or an investment value of 13,893,060.4 (rp). third place is sidoarjo regency with a contribution value of 12% of the total pmdn in east java or an investment value of 11,871,817.4 (rp), fourth place is pasuruan regency with a contribution value of 5% of the total pmdn in east java or investment value of 5,225,182.6 (rp), fifth place is kediri regency with a contribution value of 4% of the total pmdn in east java or an investment value of 3,807,626.6 (rp). the ten city regencies, if sorted by the amount of foreign investment value, are the city of surabaya, gresik regency, sidoarjo regency, kab. pasuruan, kab. kediri, malang regency, mojokerto regency, banyuwangi regency, kediri city, kab. jombang. another city district that still has the potential for pmdn in east java is a. tuban regency. several sectors that have the potential to be developed in the city of malang: the non-metallic mineral sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 99 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 industry sector, the housing sector, industrial and office areas, the transportation, warehouse and telecommunications sector, the trade and repair sector, the other services sector, the food industry sector, the mining sector, the industrial sector timber, forestry sector. b. malang city. several sectors that have the potential to be developed in malang city: trade and repair sector, food industry sector, hotel and restaurant sector, construction sector, motor vehicle industry and other transportation equipment sector, transportation, warehouse and telecommunications, housing sector, industrial and office areas . c. lamongan regency. several sectors that have the potential to be developed in lamongan regency: the timber industry sector, the non-metallic mineral industry sector, the basic metal industry sector, metal goods, non-machinery, the mining sector, the fisheries sector. d. probolinggo regency. several sectors that have the potential to be developed in probolinggo regency: construction sector, transportation sector, warehouse and telecommunications, transportation, warehouse and telecommunications sector, food industry sector, food industry sector, wood industry sector, fishery sector. e. ngawi regency. several sectors that have the potential to be developed in ngawi regency: the food industry sector, the food industry sector, the trade and repair sector, the transportation, warehouse and telecommunications sector, the non-metal mineral industry sector. f. lumajang district. several sectors that have the potential to be developed in lumajang regency: the timber industry sector, the housing sector, industrial and office areas, the fisheries sector, the transportation sector, warehouses and telecommunications. v. conclusions and recommendations conclusion 5.1. conclusion a. ten orders of distribution of east java foreign investment during 2021-2022 are gresik regency, sidoarjo regency, pasuruan regency, surabaya city, malang regency, tuban regency, mojokerto regency, lamongan regency, jember regency, jombang regency. b. ten in order of distribution of east java domestic investment during 2021-2022 are the city of surabaya, gresik regency, sidoarjo regency, kab. pasuruan, kab. kediri, malang regency, mojokerto regency, banyuwangi regency, kediri city, kab. jombang. 5.2. strategy & policy recommendations in encouraging diversity of investment distribution and improving the east java investment climate 5.2.1 strategies and policies encouraging spread of investment: a. improved coordination between the central government, provincial government and east java district/city government, this is to reduce legal uncertainty and encourage transparency, especially with regard to the interest of respecting business contracts. b. designing an online-based market place that sells investment project ready to offer (ipro) projects. this market place is designed for indonesia as well as for east java. this onlinebased market place will be an efficient and effective tool for selling investments in indonesia in general and east java in particular c. inventory of policies at the provincial, as well as regency/city levels related to retribution, especially those that still conflict with higher regulations and are no longer in accordance with current conditions. d. encouraging the creation of one-door integrated licensing service institutions in regencies/cities in accordance with applicable rules. especially for regencies/cities whose licensing service institutions sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 100 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 are not yet optimal. licensing services with a one-stop integrated system (one-stop service) make the time for making permits shorter. with the existence of a one-door integrated service institution, all permits and nonlicensing that are the authority of the regency/city can be served in one institution. e. encouraging the availability of quality sops at one-stop integrated licensing service institutions in regencies/cities, and conducting periodic evaluations, especially those related to simplification of licensing processes and requirements. f. encouraging the improvement of facilities and infrastructure of licensing service institutions in accordance with the level of their needs. especially with regard to the use of information technology. the reason is, with information technology-based administrative arrangements, data input is only done once, and administration can be done simultaneously. g. expand the destination countries for investment promotion, especially outside the countries that currently dominate investment in east java province. 5.2.2 strategies and policies encouraging spread of investment: 1. encouraging investment into businesses that are less attractive to investors. these business fields include investment in the agricultural sector (on farm), mining, manufacturing industry, and infrastructure, especially related to connectivity. 2. encouraging the availability of district/municipality regional potential maps accompanied by a prefeasibility study of the investment development. 3. encouraging investment in areas that have so far had minimal investment, such as the central and southern regions of east java. 4. encouraging the opening of new industrial areas, especially outside the surabaya, gresik, sidoarjo and mojokerto areas. 5. initiate and revitalize industrial clusters that have and will emerge in east java province, such as the footwear industry cluster, the jewelry industry cluster, the shipping industry cluster, the sugar cane/sugar industry cluster, the food and beverage industry cluster, the oil and gas and condensate industry cluster. 6. in realizing the connectedness of inter regional development, synergy and integration of intermodal transportation is required. in order to support regional development, it is necessary to increase access to potential areas and growth centers such as maritime and logistics areas, agroindustry, megapolitan, medium-sized city development, and tourism, which requires the support of good road infrastructure. good. in the construction and development of the south coast area, there are still obstacles to the incomplete construction of the east java southern route (jls) and the not yet optimal development of ports on the south coast and access to ports. bibliography [1] law of the republic of indonesia number 25 of 2007 concerning investment [2] anthony, wp, parrewe, p.l, and kacmar. 2013. strategic human resource management. orlando: harcourt brace and company [3] david fred r., forest r. david. 2015. strategic management: a competitive advantage apporach, concepts, and cases, edition -15, new jersey: pearson education. sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 101 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 [4] james c. van horne, and john m. wachowicz, jr. 2014. principles of financial management (fundamentals of financial management). edition 13 book 2. publisher: salemba empat. jakarta. [5] jerry fitzgerald, andra f. fitzgerald, warren d. stalling. jr. 1981. fundamentals of system analysis, john willey & sons, new york. [6] johnson, g., scholes, k., & whittington, r. 2005. exploring corporate strategy (7nd ed.). london: prentice hall. [7] krugman, pr, obstfeld, m., & melitz, mj 2012. international economics: theory and policy, 9/e. boston: pearson education. [8] grab it, freddy. 2017. techniques for dissecting swot analysis business cases. publisher: pt. main library gramedia. jakarta. [9] salvatore, d. 2011. managerial economics. (5th ed). singapore: thomson learning. [10] sugiyono. 2019. business research research methods (quantitative, qualitative, and r&d approaches). publisher: alphabet. bandung. [11] sukurno, sadono. 2016. introductory macroeconomic theory. publisher: pt. rajawali press. jakarta. [12] sunariyah. 2011. introduction to capital market knowledge, fourth edition. publisher: amp ykpn publishing and printing unit. yogyakarta. [13] stephanie & k. marrus. 2002. strategic management research design. publisher: rajawali press. jakarta. [14] tjiptono, fandy. 2019. marketing strategy principles & application. issue 1. publisher: andy. yogyakarta. sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 102 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 103 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 104 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 105 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 sutarmin, saibat strategies and policies of east java regional government in encouraging the spread of investment and building the investment climate 2021-2025 106 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 10 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) bibliometric analysis toward to intellectual capital on small medium enterprises (smes) nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 1*) ,3 faculty of economics, stie mahardhika jl. ahmad yani no.86, ketintang, surabaya 2faculty of economics and business, airlangga university pqh5+c3f, airlangga, kec. gubeng, surabaya 4faculty of economics, universitas negeri gorontalo jl. jend. sudirman no.6, kec. kota tengah, gorontalo, indonesia 5faculty of business studies, arab open university prince faisal ibn abdulrahman, hittin, riyadh 11681, arab saudi 1*)email: nanik@stiemahardhika.ac.id, 2)ardianto@feb.unair.ac.id, 3)rifda@stiemahardhika.ac.id, 4)irawaty.abdul@ung.ac.id, 5)m.altarawneh@arabou.edu.sa abstract this study determines the development trend of intellectual capital research in smes published by leading journals indexed by scopus by identifying key authors, keywords, journals that publish in ic and msmes and countries that write a lot of research related to it. the data analyzed consisted of 266 research publications from 1998-2020 using the vos viewer application to discover the intellectual capital research development bibliometric map. the findings suggest that there are two major theories related to intellectual capital in technology-based smes, namely resource-based view and knowledge base view, which support and complement each other keywords: intellectual capital, customer capital, structural capital, human capital, smes, bibliometrics, vos viewer i. introduction the advancement in knowledge based economy means physical resources alone cannot be considered as competitive advantage (fathi et al., 2013). many large companies have run a knowledge-based business. according to ernst & young (2006), 60% of the workers are knowledge workers in developed countries like the us. it is proven by increasing this knowledge capability. companies can carry out activities more effectively and efficiently (hernandez and nurozi, 2010). however, the obstacle is that a clear identification does not match the importance of this knowledge in the traditional financial statements that exist today. according to rahardian and meiranto (2011), many company investments in intangible assets cannot be found on the balance sheet due to limitations in the accounting criteria for the recognition and valuation of these assets. one approach in valuating intangible assets that is important for companies is intellectual capital (intellectual capital / ic). small and medium enterprises are an interesting topic to study, considering their strategic role in driving the national economy, especially from job opportunities and sources of income for the poor (tambunan, 2014). according to data (bps, 2018), the contribution of smes to gdp reaches 60.34%m while the number of small and medium-sized enterprises reaches approximately 99.88% of the total business units in indonesia and can absorb around 96.66% of the workforce. smes have also proven to be more resilient than medium and large enterprises mailto:nanik@stiemahardhika.ac.id mailto:ardianto@feb.unair.ac.id mailto:rifda@stiemahardhika.ac.id mailto:irawaty.abdul@ung.ac.id mailto:m.altarawneh@arabou.edu.sa sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 11 nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) in the face of the indonesian economic crisis in 1998. looking at the condition of smes (small and medium enterprises) in indonesia, it seems that not many people are aware of the importance of knowledge-based business by optimizing their intellectual capital, even though the existence of smes is expected to exist in growing the economy have high competitiveness. this is because smes are one of the industrial sectors that provide the largest contribution to the economic growth. likewise, the existence of smes in indonesia as a sector with an important role and can survive the crisis that hit the indonesian economy. by optimizing the existing intellectual capital, smes are expected to face competition and be able to develop over time along with the development of science and technology (widiastuti, 2013). intellectual capital is not visible in the company’s financial statements (balance sheet) but is considered a strategic asset (investment) and is seen as important for companies in increasing the value and performance of the company on an ongoing basis. smes need to understand their management strategy as the main asset that can build a company’s competitiveness. bataineh and al zoaby (2011) regard intellectual capital as skills, knowledge, and technology that offer companies competitive advantage. smes need knowledge and information to improve company performance to participate in today’s competitive market. intellectual capital is also knowledge gained from value of firm (fathi et al., 2013). according to shiddiq (2013), intellectual capital is not a replacable asset because it cannot be imitated, producing a lasting competitive advantage and improving company performance. meanwhile, intellectual capital (ic), according to pramudita (2012), is useful knowledge that is packaged as “packaged useful knowledge”. it is explained that it includes organizational processes, technology, patents, employees, skills, expertise and information about customers, suppliers and stakeholders. intellectual capital consists of the company’s main elements, which include human capital, structural capital and relational capital, which are considered to be able to improve the company’s business performance (cerrato & viva, 2012; hejazi et al., 2016; onkelinx et al., 2016; marvel et al., 2016; jogaratnam, 2017; chowdhuri et al., 2019; kalique et al., 2020) and maintain competitive stability with other companies (shiddiq, 2013). therefore, intellectual capital is considered a competitive advantage that is difficult to imitate by its competitors and irreplaceable (barney, 1991) and can increase the value and financial performance of the company. the bibliometric provides a consistent, and objective research with strong quantitative analysis that makes it more reliable (farrukh et al., 2020). it has expanded the ways of doing research in many fields with the help by offering a systematic approach to locate themes and changes in ongoing areas of research. additionally, it helps identifying popular authors, institutions and countries of respective research fields (farrukh et al., 2020; zupic & cater, 2015). bibliometric techniques are used in this study to determine how the intellectual capital literature in the msme sector continues to develop. this technique also allows providing direction, structure and form of research that is increasingly advanced and developing. research using bibliometrics can also be used to analyze articles and citations used by previous researchers. this study aims to identify and evaluate the impact of articles, relationships and significant contributions related to intellectual capital in the msme sector. this research analyzes research papers to identify popular issues, research trends and developments using 266 research publications published during the period 1998-2020. it has used the vos viewer to discover the intellectual capital research development bibliometric map. the next arrangement in this study consists of section 2, discussing a comprehensive review of intellectual capital literaturey. section 3 describes the methods used to carry out bibliometric studies, while section 4 describes the analysis and discussion. section 5 is the findings of the results. section 6 is the conclusion and limitations. sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 12 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) ii. literature review intellectual capital many other authors have documented and described the importance of ic as a major intangible assets (carlucci et al., 2004; sharabati et al., 2010). ferreira and franco (2017) narrate that intellectual capital is human, structural and relational capital. the model developed by lowendahl (1997) in hong (2007) develops the previous model with several modifications and divides competence and relationships into two sub-groups, namely individual and collective. stewart (1997) categorizes intellectual capital into human, structural and customer capital. hong (2007) revealed the danish confederation of trade unions (1999), which grouped intellectual capital into people, system and market resources. intellectual capital is briefly described as follows: a) human capital intellectual capital is actually the human resource (edvinsson and malone, 1997; stewart, 1997; bontis, 1998; choo and bontis, 2002; nazarpoori, 2016). roos et al. (1997) narrates that intellectual capital is generated by employees through their competencies, agility, attitude and creativity in the company. competence is actually education, ability and skill, while attitude consists of portions of behavior of an employee towards work. higher intellectual agility means higher ability of employees to solve problems. the skandia model identifies how important human capital is towards the growth of an organization. what this model actually refers is the intellectual capital that depends on capability to seek knowledge collectivity. in other words human capital actually means intellectual capital (schultz, 1961). this makes intellectual capital an important resource and a capability to act on knowledge. abdol mohammadi (2005) identifies positive relationship between disclosure of intellectual capital and market capitalization in 53 fortune 500 companies. drucker (1993) argues land, labor and capital the organizational resources that matter for organizational success. but now, intellectual capital resources are also important resources. even without intellectual capital, existing resources will be more meaningful. hence, an organization must be encouraged to change its strategy from labor to knowledge based. b) structural capital according to bontis (1998) limited systems preclude full potential of intellectual capital. strong structural capital urges organisations for innovations in their work. structural capital is actually a set of tools and architecture (cabrita and bontis, 2008). structural capital is sometimes protected by laws and functions as intellectual property rights (starovic and marr, 2004 in astuti, 2005). in this regard, structural capital has two objectives that must be achieved. first, codify transferable knowledge. this is done so that the system is not lost. second, connecting employees with data, experts and expertise (sugeng, 2000). structural capital capital is a system inside an organization that helps employees learn from each other in the best possible way for the betterment of an organisation. in the modern age oraganisation means value stemming from physical and non physical resources possessed by an organization. c) customer capital customer capital is actually knowledge from business betworks flowing into the organisations (nahapiet and ghosal, 1998 in bataineh and zoaby, 2011; delgado-verde et al., 2011; subramaniam and youndt). , 2005; ferenhof et al., 2015; inkinen, 2015). customer capital also includes knowledge stemming from stakeholders of organization. therefore, customer capital is knowledge about marketing and customer relations. it improves relationships that brings new customers (montequin et al., 2006 in alipour, 2012). sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 13 nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) iii. research methods use of bibliometric techniques is getting popular in business studies in the present era (wu et al., 2021). this is because it summarizes the contributions of authors, journals and publishers in a particular area of interest. therefore in order to meet its objectives, this research collects manuscripts from various journals published between 1998 to 2020 on the theme of intellectual capital in smes. collection of data has been carried out by collecting manuscripts that are published in journals indexed in scopus database. the manuscripts have been collected using the keywords “intellectual capital’ and smes that yielded 294 upto 2021. the academic year data was collected from january to december, so the authors processed only 266 articles from 1998-2020. data has been analyzed using microsoft excel 2010 and vosviewer software. the process of data collection and processing were explained below: figure 1. diagram of data collection and processing using bibliometric iv. results and discussion intellectual capital literature has developed from year to year. the highest point for international publications was in 2019 with 33 articles and slightly down in 2020 with the number of articles of 31 documents. publications related to intellectual capital have been started since 1998. number of types of intellectual capital literature documents table 1 hereunder shows documents used in research with the theme of intellectual capital in accounting and management research. table 1: document types no type number 1 journal 170 3 conference paper 63 3 book chapter 15 4 conference review 7 5 review 6 6 book & editorial 4 7 erratum 1 total 266 the pie chart details are based on a grouping by type figure 2. presentation of intellectual capital literature document types figure 2. states that journal articles are widely used for research on intellectual capital. sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 14 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) bibliometric graph analysis this section presents visual mapping of 266 manuscripts published on the theme of intellectual capital. mapping helps identify knowledge elements, their configuration, interactions, dynamics and interdependencies by developing a landscape of topics (royani et al., 2013). network visualization from 266 articles on various aspects of intellectual capital have been given hereunder: figure 3. bibliometric author mapping in the figure 3 cluster density is determined from the brightness of yellow light. the density of yellow color depends on item to item association. the map identifies the authors that have the most number of publications. figure identified khalique m., as the most published author on intellectual capital. here are the results of article categorization based on the top 10 names that often appear. bibliometric institutions mapping figure 4 identifies the most popular institution that has contributed on the topic of intellectual capital during the period under review of this bibliometric analysis. figure 4. bibliometric institutions mapping the figure has been calculated based on the publications produced and links established. the bigger circles in the figure shows the institutions that have contributed most on intellectual capital in smes. the figure shows that degroote school of business, mcmaster university, hamilton, canada are the leading institutions in this regard. figure 5. document by affiliation bibliometric country mapping visualization of country has been explained in figure 6 hereunder. the figure shows several clusters how the most prominent cluster is lead by spain and malaysia who have produced research papers on intellectual capital in smes. the same information has been explained in figures 7 as well. sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 15 nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) figure 6. bibliometric country mapping figure 7. document by country bibliometric keyword mapping figure 8 displays visualization of widely used keywords in research on intellectual capital in smes. figure 8. bibliometric keyword mapping the cluster of keywords has been explained hereunder:  cluster 1 in red consists of 28 keywords: ability, action, assessment, benefit, change, critical success factor, development, economic growth, government, human resource, implementation, integration, intellectual capital management, intellectual capital statement, intellectual property, interest, interview, market, nation, opportunity, organization, product, productivity, quality, requirement, service, skill, technology.  green cluster 2 consists of 17 keywords: business performance, capital, effectiveness, film performance, green intellectual capital, human capital, influence, mediating role, performance, positive relationship, profitability, relational capital, relationship, significant impact, smes performance, structural capital, sustainable competitiveness.  cluster 3 in blue consists of 16 keywords: confirmatory factor analysis, customer capital, electronic, empirical study, existence, financial performance, future research, multiple regression analysis, organizational performance, policy maker, practitioner, reliability, small, smes operating, social capital, structured questionnaire.  cluster 4 yellow consists of 9 keywords: business success, effort, empirical investigation, entrepreneurship, individual, innovation capability, intellectual capital perspective, medium, organization capital. bibliometric index mapping figure 9 shows bibliometric index that shows relationship between intellectual capital and its relation to management accounting. where the same color of two indices means close relationship. figure 9. bibliometric index mapping sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 16 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) figure 9 shows that intellectual capital related to management accounting, several words are most widely used, namely knowledge management, followed by the word intellectual capital. findings the importance of intellectual capital can not be ignored for gaining competitive advantage in smes based on khalique’s research. it can be achieved by utilizing knowledge efficiently (jardon & martos, 2012; massaro et al., 2015; mertins et al., 2006). performance-based on intellectual capital is a determinant of competitive advantage in msme companies. companies can achieve significant competitive advantage by mobilizing ic through knowledge, technological skills, experience and strategic competencies ( kamukama & sulait 2017). based on previous studies, at least 2 major theories related to intellectual capital, namely resource-based view (rbv) and knowledge-based view or knowledge-based theory (kbt). the first theory was developed by penrose (1959), while the second theory was widely developed by grant (1996). these two theories have become the basis for research and studies on intellectual capital both in the smes industry and other industries in general. the theoretical basis for the resourcebased view (rbv) for companies is based on resource development (penrose, 1959). the development of these resources includes skills and abilities that contribute to competitive advantage. this theory was then continued by wernerfelt (1984) and reinforced by barney (1991), stating that companies can create competitive advantages in the market through their internal resources. in understanding the sources of sustainable competitive advantages, building a theoretical model that starts from an assumption is necessary. this assumption explains that the company’s resources are heterogeneous and immobile (barney, 1991). further, to become a potential resource in sustained competitive advantages, the company’s resources must have 4 attributes, including (a) valuable resources, (b) rare resources, (c) imperfectly imitable resources), (d) unavailability of substitute resources (non-substitutability resources). company resources are declared valuable when they are used for strategy implementation to produce effectiveness and efficiency. meanwhile, resources are said to be rare if these resources are not owned by other companies, especially competing companies. the company will be able to implement its strategy by having resources with these 4 attributes. competitor companies will not do the same because they do not have the resources to implement the strategy. this shows that scarce and valuable resources will be a source of sustainable competitive advantage. competitors cannot achieve a competitive advantage if they do not have and cannot obtain these resources. in other words, competing companies cannot imitate the strategy and cannot imitate the resources needed to implement the strategy. three important factors make companies a difficult resource to imitate: unique historical conditions, casual ambiguity, and complex social systems. in addition to being valuable, rare, and difficult to imitate, resources that produce competitive and sustainable advantages must also have characteristics that cannot be substituted. this means that competing companies do not have equivalent resources as substitutes in implementing their strategies, even though companies have valuable, unique and difficult to imitate resources. still, if competitors have equivalent substitutes, these resources are no longer a source of competitive and sustainable advantage. the second major theory that underlies the development of the concept of intellectual capital is knowledge-based theory or known as kbt. in this theory, grant (1996) and spender (1996) argue that alliances are formed as a source of learning. kale & singh (2007) argue that previous alliances help form future alliances. knowledge-based theory (grant, 1996; nonaka, 1994; grant and baden-fuller, 2004) considers strategic alliances & intellectual capital as the most capable resource to generate sustainable competitive advantage. strategic alliances enhance learning and knowledge sharing (jiang et al., 2016). this theory identifies mutual trust and commitment to success (muthusamy & white, 2005). in addition sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 17 nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) (ngah, 2011) argues that knowledge sharing is strongly influenced by the dimensions of intellectual capital consisting of relational capital, human capital and structural capital. among the three dimensions, it shows that human capital as the dimension of intellectual capital most influences knowledge acquisition and knowledge transfer. (seleim, 2011). indeed, based on the literature that the author has reviewed, the first theory (rbv) is relatively early and is more widely used as the basis for developing theories related to intellectual capital. meanwhile, the second theory (kbt), which is based on learning, tends to be less used to develop theories related to intellectual capital. however, in its development, this second theory is even more relevant lately, especially concerning the growth of industry 4.0, which increasingly requires a lot of knowledge, so that industrial development becomes mature and full of innovation. based on the data processing results, the following is a summary of research findings related to keywords, the most prolific authors and institutions that have researched a lot on intellectual capital. table 2. summary of research findings ran k keyword by occurrence authors with the highest publication affiliation 1. intellectual capital khalique m. degroote school of business, mcmaster university, hamilton, canada 2. knowledege managemen t will m. fraunhofer ipk, berlin, germany 3. smes mertins k. faculty of economics and business, universiti malaysia sarawak, sarawak, malaysia 4. competition bontis n. business administratio n deparatment, national yunlin university of science and technology, taiwan 5. innovation ciambotti m. accounting and finance department, athens university of economics and business, athens, greece 6. human capital sgro f. management and engineering departmenet, university of padua, vicenza, italy 7. small and mediumsized enterprise crema m. department of business management, polytechnic university of cartagena, cartagena, spain 8. relational capital martos ms. nottingham trent university, nottingham, united kingdom 9. structural capital matos f. business school, sichuan university, chengdu, china 10. sustainable developmen t jardon c.m. intangible assets consulting, graz, austria sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 18 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) v. conclusions and limitations using 266 research papers published between 1998 to 2021 this study endeavors to determine the development of the concept of intellectual capital in sme’s. bibliometric mapping visualization shows that it is khalique m. who writes the most about intellectual capital in smes. the institution with the most publications on intellectual capital are the degroote school of business, mcmaster university, hamilton, canada. the with the most publications on intellectual capital is spain. this study suffers from the limitation that it only analyzes manuscripts based on bibliometric information from articles, not on the in-depth content of each research. even so, the author assumes that the keywords already represent the content of the entire article. implications from this study are for academics that intellectual capital requires more research in the area of smes in such a way that human capital of an organization have deep roots in intellectual capital. intellectual capital is in fact an asset that has roots in education, personality, experience, exposure, training and interactions of an employee during the course of his employment. this requires academics to extend their researches encompassing the job experiences of the employees. still more implications are for smes to convert their organisatons from labor based to knowledge based. reference abdolmohammadi, m.j., 2005, “intellectual capital disclosure and market capitalization”, journal of intellectual capital, vol. 6 no. 3. pp. 397-416. ahlgren, p., jarneving, b., & rousseau, r. 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(2011). the effect of intellectual capital on organizational competitive advantage: jordanian commercial banks (irbid district) an empirical study. euro journals, inc.-international bulletin of business administration. bontis, n. 1998. “intellectual capital: an exploratory study that develops measures and models”. management decision, vol. 36 no. 2, p. 63. börner, k., chen, c., & boyack, k. w. (2003). visualizing knowledge domains. annual review of information science and technology, 37(1), 179-255. boyack, k. w., klavans, r., & börner, k. (2005). mapping the backbone of science. scientometrics, 64(3), 351-374. brown, wo, helland, e., & smith, jk (2006). corporate philanthropic practices. journal of corporate finance, 12(5), 855–877. https://doi.org/10.1016/j. jcorpfin.2006.02.001 budiman, ma (2011). the role of waqf for environmental protection in indonesia. aceh development international conference 2011, may 2011, 880–889. chen, c., & xi, h. (2003). meta-programming through typeful code representation. acm sigplan notices, 38(9), 275-286. drucker, p. f. (1993). the rise of the knowledge society. the wilson quarterly, 17(2), 52-72. fathi saeed, dr., farahmand shekoofeh, dr., https://doi.org/10.1177/014920639101700108 https://doi.org/10.1016/j.%20jcorpfin.2006.02.001 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 19 nanik kustiningsih1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) khorasani mahnaz. (2013). impact of intellectual capital on financial performance. international journal of academic research in economics and management sciences, vol. 2, no. 1, issn: 2226-3624. grant, r. m. 1996. toward a knowledge-based theory of the firm. strategic management journal, 17(s2): 109-122. https://doi.org/10.1002/smj.4250171110 . grant, r. m., & baden‐fuller, c. (2004). a knowledge accessing theory of strategic alliances. journal of management studies, 41(1), 61-84. hernandez, josé g. vargas and noruzi, mohammad reza. (2010). how intellectual capital and learning organization can foster organizational competitiveness?. international journal of business and management, vol.5, no. 4. hidayah, b. n., safitri, g. s. d., rochmah, s., ferdiansyah, m. b., & kustiningsih, n. (2022). optimization of online marketing strategies in the middle of the covid-19 pandemic in improving msme’s sales. international journal of economics, management, business, and social science (ijembis), 2(3), 449-459. hong, pew tan, david plowman dan phil hancock. (2007). “intellectual capital and financial returns of companies.” journal of intellectual capital. vol 8, no. 1, 76-95. jiang, x., bao, y., xie, y., & gao, s., 2016. partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: a contingency perspective. journal of business research, 69(2): 804-814. https://doi.org/10.1016/j.jbusres.2015.0 7.009 jogaratnam, g. (2017). the effect of market orientation, entrepreneurial orientation and human capital on positional advantage: evidence from the restaurant industry. international journal of hospitality management, 60(1), 104-113. kale, p., & singh, h., 2007. building firm capabilities through learning: the role of the alliance learning process in alliance capability and firmlevel alliance success. strategic management journal, 28(10): 981-1000. https://doi.org/10.1002/smj.616 kamukama, n., & sulait, t. (2017). intellectual capital and competitive advantage in uganda’s microfinance industry. african journal of economic and management studies. kustiningsih, n., tjahjadi, b., & soewarno, n. (2022). projecting experience of technologybased msmes in indonesia: role of absorptive capacity matter in strategic alliances and organizational performance relationship. sustainability, 14(19), 12025. lowendahl,b.. (1997), strategic managemement of professional service firms, handelshojskolens forlag, copenhagen. gah, r. and ibrahim, a. (2011) the influence of intellectual capital on knowledge sharing: small and medium enterprises. perspective. communications of the ibima, 2011, article id: 444770. nonaka, i. (1994). a dynamic theory of organizational knowledge creation. organization science, 5(1), 14-37. onkelinx, j., manolova, t. s., & edelman, l. f. (2016). human capital and sme internationalization: empirical evidence from belgium. international small business journal, 34(6), 818-837. penrose, e., & penrose, e. t. (2009). the theory of the growth of the firm. oxford university press. pramudita gema. (2012). pengaruh intellectual capital terhadap nilai pasar dan kinerja keuangan perbankan yang terdaftardi bursa efek indonesia (bei) tahun 2008 2010. feb universitas diponegoro semarang. rahardian, a. a., & meiranto, w. (2011). analisis pengaruh intellectual capital terhadap kinerja perusahaan; suatu analisis dengan pendekatan partial least squares (studi pada perusahaan yang terdaftar di bursa efek indonesia tahun 20072010) (doctoral dissertation, universitas diponegoro). https://doi.org/10.1002/smj.4250171110 https://doi.org/10.1002/smj.4250171110 https://doi.org/10.1016/j.jbusres.2015.07.009 https://doi.org/10.1016/j.jbusres.2015.07.009 https://doi.org/10.1002/smj.616 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 20 nanik kustiningsih 1, ardianto2, rifda fitrianti3, irawat abdul4; marwan altarawneh5 bibliometric analysis toward to intellectual capital on small medium enterprises (smes) roos,n.c. rooagonetts,j.,g.dragonetti,and l.edvinson. (1997). intellectual capital: navigating in the new business landscape. macmillan business, houndsmills. royani, yupi; mulni a. bachtar; kamariah tambunan; tupan; dan sugiharto. 2013. pemetaan karya tulis ilmiah lpnk: studi kasus lipi dan bppt (2004-2008). seleim, a. and khalil, o. (2011) understanding the knowledge management -intellectual captial relationship: a two-way analysis. journal of intellectual capital, 12, 286614. https://doi.org/10.1108/1469193111118 1742 setiarso, bambang, (2005), knowledge sharing in indonesia research centre: models and mechanism. proceedings on the 9th world multi conference on systemics, cybernetics and informatics, usa: orlando, florida, july 10-13: pp.14. dapat dilihat di: http://www.iiisci.org/ sci2005 shiddiq, candra ha. (2013). pengaruh modal intelektual terhadap kinerja keuangan perusahaan dengan keunggulan kompetitifv sebagai variabel intervening. skripsi. feb universitas diponegoro semarang. stewart, t.a. (1997). intellectual capital: the wealth of new organisations, nicholas brealey publishing, london. sugeng, imam. 2000. “mengukur dan mengelola intellectual capital.” jurnal ekonomi dan bisnis indonesia. vol 15, no.2, 247-256. tambunan, t. (2014). ukuran daya saing koperasi dan umk. background studi rpjm nasional tahun 2010-2014 bidang pemberdayaan koperasi dan umk bapenas. pusat studi industri dan umk, universitas trisakti-kadin indonesia. wernerfelt, b. (1984). a resource‐based view of the firm. strategic management journal, 5(2), 171180. widiastuti, e. (2013). peningkatan daya saing ukm melalui peran modal intelektual dan kinerja keuangan. sustainable competitive advantage (sca), 3(1). https://doi.org/10.1108/14691931111181742 https://doi.org/10.1108/14691931111181742 http://www.iiisci.org/ 6 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember internal factor analysis in management control system design with organizational objectives as intervening variables in blood transfusion unitpmi jember suwignyo widagdo1), erica ratnasari 2) stie mandala, jember, indonesia email : suwignyo@stie-mandala.ac.id submit : 16th august 2019, revised : 20th august 2019, accepted : 27th august 2019 abstract this study aims to analyze the structure of the organization, program structure, information structure, administrative factors, behavioral factors and cultural factors in the design of control system management with organizational goals as an intervening variable. data is taken from questionnaires that have been filled out by several respondents. determination of the sample is done using the slovin formula. the overall sample consisted of 30 respondents who were employees of utd pmi jember branch in 2018. the results showed that the organizational structure showed a significant influence on organizational goals. while the variable program structure, information structure, administrative factors, behavioral factors and cultural factors do not show a significant effect on organizational goals. variable organizational structure, program structure, information structure, administrative factors, behavioral factors and cultural factors show no significant effect on partial. management control system design but simultaneously influenced. organizational goals can be intervening variables between program structure, information structure, behavioral factors and cultural factors in the design of management control systems.whereas organizational goals cannot be intervening variables between organizational structure and administrative factors in the management control system design. keywords:information structure, management control system design, organizational objectives i. introduction every public or private organization has a goal to be achieved. to achieve the goals of the organization requires a qualified management control system. management control system focuses on how to implement strategies effectively and efficiently so that organizational goals can be achieved. according to simons (1987) spm is seen as a formal procedure and system that uses information to achieve or change various patterns in an organization's activities. related to this definition, simons (1987) says that spm includes planning systems, reporting systems, and monitoring procedures based on the use of information. meanwhile, according to flamholtz, et al. (1985), spm is a process for influencing organizations. the purpose of spm is to provide useful information in decision making, planning, controlling, and evaluating (widener, 2007). therefore, spm is basically a system composed of complementary components (widener, 2007). this means that the use of each spm element must be used together in order to have strength in its implementation. the management control system can run optimally if it is run together. this is in accordance with the statement of otley (1980) spm basically consists of various control systems that work together. on the other hand simons (1995) also asserts that the control system will have power if the control is carried out together. 7 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember regarding internal factors in the organization there are several opinions about it. one of them is bastian (2013: 12) said, internal factors that affect the public sector organizational system, namely: organizational structure, program structure, information structure, administrative factors, behavioral factors and cultural factors. government organizations have a goal to meet the needs and rights of the public. the entire development process and the services provided are aimed at realizing prosperity for the community. therefore, public sector management control is focused on achieving community welfare. management control systems have an important role in the success of achieving organizational goals (bastian, 2014). as stated by anthony and young (2003) management control accepts the goals and strategies decided upon by the previous process, and will focus on implementing the strategies and achieving those goals. the structure and process of management control must be designed to facilitate strategic planning and implementation to motivate managers to achieve organizational goals and to develop information to evaluate performance in achieving goals. based on the background outlined above can formulate the problem to be examined as follows:1. does the internal factors of the organization (organizational structure, program structure, information structure, administrative factors, behavioral factors, and cultural factors) directly influence the management control system design at utd pmi jember branch; 2. does the internal factors of the organization (organizational structure, program structure, information structure, administrative factors, behavioral factors and cultural factors) directly influence the organizational goals of the utd pmi jember branch; 3. does the purpose of the organization directly influence the design of the management control system utd pmi jember branch; 4. do internal organizational factors (organizational structure, program structure, information structure, administrative factors, behavioral factors, and cultural factors) influence the design of management control systems at utd pmi jember branch through organizational goals? ii.research methods population and samples the population in this study were all employees who worked utd pmi jember branch totaling 42 people in 2018. the sample in this study was determined randomly using the slovin sampling method (sujarweni, 2014: 16). where to use the error tolerance level (e) as much as 0.1 or 10%. data collection method type of data used in this study is primary data. primary data is data obtained directly from respondents and obtained through survey respondents to answer questions in research. the survey method itself is a questionnaire technique, where the questionnaire is submitted and collected directly by researchers to respondents (indriantoro and supomo, 1999). this study uses primary data from the collection of questionnaires that have been filled out by respondents from utd pmi branch jember. definition of operational variables independent (exogenous) (x) exogenous variables are influencing variables (arikunto, 2002 in dimyati 2009: 78) or variables that are not predicted by other variables in the model (ferdinand, 2002 in looked at 2009: 78). this variable is also called an independent variable or an independent variable. in this research, exogenous variables are the organizational structure (x1), information structure (x2), program structure (x3), administrative factors (x4), behavior factors (x5), and cultural factors (x6). organizational structure (x1) according to prajudi atmosudirdjo in adam (2000: 4) argues that, “the organization is the structure of the division of labor and the structure of work relations between groups of position holders who work together to achieve a certain goal”. according to koontz & donnel in malayu sp (2010: 25) argues that, “the organization is fostering the relationship of authority and is intended to achieve structural coordination, both vertically, and horizontally between positions that have been assigned specific tasks needed to achieve common goals. so the organization is a structural relationship that binds / unifies the company and the basic framework in which individuals try, coordinated. “ the items used 8 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember in the measurement of organizational structure were adopted from stephen robbins (2007), namely: 1. specialization of work. 2. departmentalization. 3. command chain. 4. control range. 5. centralized and decentralized. 6. formalization. program structure (x2) saifutdin anshari (1978), according to him, the program is a detailed list of events and businesses to be carried out. sunarto (2006) said that the program is a set of instructions which is realized in the form of language, schema code, or other forms, which when combined with media that can be read by a computer will be able to make the computer work to perform special functions, including preparation in designing these instructions. according to wiryanto dewobroto, the program is the result of compiling detailed steps of the solution (algorithm) of the problem. the items used in measuring the structure of the program were adopted from (bastian, 2013), namely: 1. type of program 2. mission support program 3. administration 4 development 5. program elements information stucture (x3) this information needs to be related to the program structure and organizational structure of the public sector. the program structure is designed to meet the needs of planners and analysts, as well as emphasizing overall program costs (bastian, 2013). the items used in the measurement of this information structure were adopted from gordon b. davis in bob widyahartono (1991: 60), namely: 1. hardware (hardware). 2. software (software). 3. database / file. 4. procedure. 5. brain ware (operating personnel). 6. network. administration factor (x4) items used in the measurement of administrative factors are adopted from (pepak, 2002), namely: 1. planning / work plan / program 2. organization for organizations 3. delegating 4. personnel / staff 5. coordinating. 6. reporting the 7. budget behavior factor(x5) the items used in the measurement of these behavioral factors were adopted from according to thoha (2010: 36), namely: 1. humans differ in their behavior, because their abilities are not the same. 2. humans have different needs. 3. people think about the future, and make choices about how to act. 4. someone understands their environment in relation to past experiences and needs. 5. a person has happy or unhappy reactions 6. many factors determine a person’s attitude and behavior. cultural factors (x6) organizational culture is a cognitive framework that includes attitudes, values, norms and expectations possessed by members of the organization (greenberg & baron, 2000) in (kusumawati, 2008). another opinion proposed by (furnham & gunter, 1993) in (sunarto, 2005), organizational culture is defined as beliefs, attitudes and general values. items used in measuring cultural factors are adopted from by desmond graves (1986: 126): 1. guarantee yourself (self-assurance) 2. firmness in the act (decisiveness) 3. ability to control (supervisory ability) 4. emotional intelligence (intelligence) 5. initiative (initiative) 6.the need for achievement(needforachievement) 7. the need for self-actualization(needforself-actualization) 8. need for position / positions(needforpower) 9. the need for appreciation (needfor reward) 10. need for security. dependent variables (endogenous) (y) endogenous variables are variables that are predicted by one or several other variables in the model (ferdinand, 2002 in dimyati 2009: 78). this variable is an effect variable called an independent variable or a dependent variable or dependent variable (arikunto, 2002 in dimyati 2009: 78). in this research, an endogenous variable is the design of management control systems. the items used in the measurement of the management control system design were adopted 9 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember from thomas sumarsan (2010: 7), namely: 1. obtained reliability and integration of information 2. compliance with policies, plans, procedures, regulations, and applicable provisions 3. protect company assets 4. 4 achievement of economical and efficient activities. there are 4 items used to measure the measurement system of management control system design by using 4 (four) scale points adopted from the likert scale, where point 1 (one) shows very inappropriate, 2 (two) shows less suitable, 3 (three) shows appropriate, and 4 (four) shows very appropriate. intervening variable (z) intervening variable is a variable that has a strong contingent influence on the relationship of dependent and independent variables into direct and indirect relationships that can be observed and measured (now, 2003 in dimyati 2009: 78). in this study the intervening variable is the organization’s goals. according to suraja (2011) organizational goals are needs that need to be met within a certain period. vision is a long-term desire, which is realized through efforts to achieve short-term goals / mission (annual). this goal is to be achieved by the people who make up the organization. the items used in measuring organizational goals are 2. good communication between members of the organization 3. good performance 4. alignment of goals among members of the organization data analysis method path analysis is used to testing the effect of intervening variables. path analysis is an extension of multiple linear regression analysis, or path analysis is used to analyze the pattern of relationships between variables in order to determine the direct or indirect influence of a set of independent (exogenous) variables on the dependent variable (endogenous) (ghozali, 2005: 160). the analysis activities were carried out using the help of the spss program20.0 for windows. the regression equation can be formulated as follows(ghozali, 2007: 150): z = β1x1 + β 2x2 + β 3x3+ β 4x4+ β 5x5 + β6x6+ ε1equation............1) y = β6x1 + β7x2 + β8x3+ β9x4+ β10x5+ β11x6+ β12z + ε2 equation ……. (2) iii. result and discussion based on a questionnaire that has been distributed by researchers, each statement stated will be described in advance which will then be assessed on the quality of each item as a whole by making a rating category. calculation of the score of each component studied is to multiply all data frequencies with their weight values, then look for a scale range. from the results of these calculations the rating scale can be made with the category of very inappropriate, less appropriate, appropriate and very appropriate. the rating scale of this category is: table1 rating scale figure 1. path analysis results diagram source: http://naufansapoetra.blogspot. co.id/2015/11/ 10 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember based on the path analysis model as in figure 1 there are two paths formed, namely: (1). z with variable paths x1,x2, x3, x4,x5 and x6, with the path equation z = ρzx1 + ρzx2+ ρzx3 + ρzx4 + ρzx5 + ρzx6 + + e1 (subs rural path 1) (2). y with variable paths x1, x2, d x3, x4,x5, x6 and z, with the path equation y = ρyx1 + ρyx2 + ρyx3 + ρyx4 + ρyx5 + ρyx6 + ρyz + e2 (subs rural path 2) description: x1 = organizational structure variable x2 = program structure variable x3 = information structure variable x4 = administrative factor variable x5 = behavior factor variable x6 = cultural factor variable z = organizational objective variable y = spm design variable. ρ = magnitude of the influence of variables in the causal path model e= influence of variables outside the model table 2 calculation of direct and indirect effects in the correlations table, the variable z has to do with x1, x2, x3, x4, x5, and x6 indicating the existence the relationship is indicated by a probability (sig) that is smaller than α (0.05 or 0.10). likewise with the y variable, it also shows a significant relationship with the variables x1, x2, x3, x4, x5, and x6, and z. furthermore, calculate the subs rural path 1 and subs rural 2 pathways. effect of organizational structure on organizational goals testing the effect of organizational structure on organizational goals on the t test results, which shows that the count is 2,207 with a significance level of 0.054 <0.10. that means that the organizational structure has a positive relationship and has a significant effect on organizational goals. so the hypothesis which states the organizational structure affects the organizational goals is accepted. this result is supported by the theory of kusdi (2009: 176) which states that the organizational structure is essentially a way to organize the elements in the organization as well as possible in order to achieve various goals that have been set. the effect of program structure on organizational goals testing the analysis of the effect of program structure on organizational goals is seen in the results of the t test, which shows that the t count is -1.332 with a significance level of 0.196> 0.10. this means that the program structure has a negative relationship and does not have a significant effect on organizational goals. so for the hypothesis which states that the structure of the program affect the objectives of the organization is rejected. this result is supported by the acquisition of questionnaire results where many score of indicator items below the average number of scores proves that many elements of the program structure have not been supported to achieve organizational goals. sunarto (2006) said that the program is a set of instructions which is realized in the form of language, schema code, or other forms, which when combined with media that can be read by a computer will be able to make the computer work to perform special functions, including preparation in designing these instructions. the program structure has a negative and not significant relationship to organizational goals, because the program structure is run by hr in the organization, if the hr does not have sufficient ability to operate the program structure, then any sophisticated program structure owned by an organization, will not help it in achieve the goals of the organization. 11 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember effect of information structure on organizational goals. testing the analysis of the influence of information structure on organizational goals seen in the results of the t test, which shows that the t-value is 0.597 with a significance level of 0.556> 0.10. this means that the information structure has a positive relationship and does not have a significant effect on organizational goals. so for the hypothesis which states that the information structure affects the organizational goals is rejected. this is supported by the results of the questionnaire items which state that the part of the organization members that processes the information is not appropriate and it hinders the achievement of organizational goals. obtained information reliability and integration in this era of globalization, information systems are very important for organizations in order to respond to changes that are fast paced to changes in existing conditions and the environment and the increasing sophistication of information technology facilities to make decisions (sumarsan, 2010). effect of administrative factors on organizational goals. testing analysis of influence of administrative factors to organizational goals seen on t test results, which showed that value of 0.137 with a significance level of 0.892> 0.10. this means that administrative factors have a positive relationship and do not have a significant effect on organizational goals. so for the hypothesis which states that administrative factors influencing organizational goals is rejected. this is supported by the results of a questionnaire where the administrative factors indicate that the budget owned is unable to run the existing administrative system so that it can slow down the achievement of organizational goals. effect of behavior factors on organizational goals. testing the analysis of the influence of cultural factors on organizational goals seen in the results of the t test, which shows that the t-count is 0.2589 with a significance level of 0.016> 0.10. this means that cultural factors have a positive relationship and have a significant effect on organizational goals. so for the hypothesis which states that behavioral factors affect organizational goals is accepted. this is due to the many other factors that influence the behavior of organizational members and that affect the performance of organizational members and indirectly affect the achievement of organizational goals. effects of cultural factors on organizational goals. testing the analysis of the influence of cultural factors on organizational goals seen in the results of the t test, which shows that the t-count is -0.092 with a significance level of 0.927> 0.10. this means that cultural factors have a negative relationship and do not have a significant effect on organizational goals. so that the hypothesis stating that cultural factors influence organizational goals is rejected. this is supported by the results of a questionnaire in which items from cultural factors indicate that the sense of security and welfare of members of the organization in terms of financial are not yet fulfilled even though that is one of the reasons for the formation of the organization. effect of organizational structure on control system designmanagement testing the analysis of the effect of organizational structure on the design of management control systems is seen in the results of the t test, which shows that the tcount is 0.402 with a significance level of 0.691> 0.10. this means that the organizational structure has a positive relationship and does not significantly influence the design of management control systems. so for the hypothesis which states that the organizational structure influences the design of management control systems is rejected. this is supported by the results of the questionnaire items which state that the existing organizational structure design is not appropriate if based on the ability of each member and the lack of staff below each staff level. the two items show the inaccurate spm design in the organization.effect of program structure on control system designmanagement testing the analysis of the effect of program structure on the design of management control systems is seen in the results of the t test, which shows that the t-count is 1.002 with a significance level of 0.327> 0.10. this means that the program structure has a positive relationship and does not significantly influence the design of management control systems. so for the hypothesis which states that the structure of the program affect the design of management control systems is rejected. this is supported by the re12 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember sults of a questionnaire stating indicator items where the program is not in accordance with the design of the existing management control system. effect of information structure on control system designmanagement testing the analysis of the influence of information structure on the design of management control systems is seen in the results of the t test, which shows that the tcount is -0.834 with a significance level of 0.413> 0.10. this means that the information structure has a positive relationship and does not significantly influence the design of management control systems. so for the hypothesis which states that the information structure influences the design of the management control system is rejected. this is supported by the results of the questionnaire items that mention the part of the members who manage the information that is less precise which indicates that the lack of the management section that manages the hr section in placing organizational members in the right position or position. effect of administrative factors on control system designmanagement testing the analysis of the influence of administrative factors on the design of management control systems is seen in the results of the t test, which shows that the t-count is -0.943 with a significance level of 0.356> 0.10. this means that administrative factors have a positive relationship and do not significantly influence the management control system design. so for the hypothesis which states that administrative factors influence the design of management control systems is rejected. this is supported by a questionnaire item which states that the existing administration system is not in accordance with the work program owned by the organization and it shows a lack of management ability to determine the right system design. effect of behavior factors on management control system design. testing the analysis of the effect of behavioral factors on management control system design seen in the results of the t test, which showed that the t-count was 0.975 with a significance level of 0.340> 0.10. this means that behavioral factors have a positive relationship and do not have a significant effect on the design of management control systems. so for the hypothesis which states that behavioral factors affect the design of management control systems is rejected. this is supported by the results of questionnaire items which state that there is a mismatch between the work systems desired by members of the organization against the existing work systems which will negatively affect the organization's management control system. effect of cultural factors on control system designmanagement testing the analysis of the influence of cultural factors on the management control system design seen in the results of the t test, which showed that the t-count was 0.818 with a significance level of 0.422> 0.10. this means that cultural factors have a positive relationship and do not significantly influence the management control system design. so for the hypothesis that the organizational structure influences the design of the management control system is rejected. this is supported by the results of the questionnaire item which states that there are still many rules that are violated and leaders who do not act decisively in carrying out their duties. effect of organizational goals on control system designmanagement testing the analysis of the influence of organizational objectives on the design of management control systems seen in the results of the t test, which shows that the t-count is 2.734 with a significance level of 0.012> 0.10. this means that organizational goals have a positive relationship and have a significant influence on the design of management control systems. so for the hypothesis which states that organizational goals influence the management control system design is rejected. therefore, organizations that have good organizational goals help an organization in designing management control systems that are suitable for an organization. effect of organizational structure on control system designmanagement and organizational goals as intervening variables. from the calculation of direct influence (direct) and indirect (indirect) in table 4:38, show that the value of indirect<direct. so it can be interpreted that organizational goals are not able to become 13 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember a mediating variable (intervening) on the influence of organizational structure on the design of management control systems. in table 4.38, it can be seen the value direct of 0.637 and indirect value of 0.514 so that the indirect <direct, which means that the goals of the organization are not able to meet the requirements to be intervening variables. effect of program structure on control system designmanagement and organizational goals as intervening variables. from the calculation of direct influence (direct) and indirect (indirect) at 4:38 table shows that the value of indirect>direct. so it can be interpreted that organizational goals are able to become a mediating variable (intervening) of the influence of program structures on the design of management control systems. in table 4.38, it can be seen the value direct of -0.501 and indirect value of 0.514 so that indirect> direct, which means that organizational goals are not able to meet the requirements to be intervening variables. effect of information structure on control system designmanagement and organizational goals as intervening variables. from the calculation of direct influence (direct) and indirect (indirect) in table 4:38, show that the value of indirect>direct. so it can be interpreted that organizational goals are able to become a mediating variable (intervening) on the influence of information structure on the design of management control systems. in table 4.38, it can be seen the value direct of 0.147 and indirect value of -0.514 so that indirect> direct, which means that organizational goals are not able to meet the requirements to be intervening variables. effect of administrative factors on control system designmanagement and organizational goals as intervening variables. from the calculation of direct influence (direct) and indirect (indirect) in table 4.37, show that the value of indirect>direct. so it can be interpreted that organizational goals are able to become a mediating variable (intervening) on the influence of administrative factors on the design of management control systems. in table 4.37, it can be seen the value direct of 0.048 and indirect value of 0.514 so that indirect> direct, which means that the goals of the organization are able to meet the requirements to be intervening variables. effect of behavior factors on control system designmanagement and organizational goals as intervening variables. from the calculation of direct influence (direct) and indirect (indirect) in table 4:38, show that the value of indirect<direct. so it can be interpreted that the purpose of the organization is not able to be a mediating variable (intervening) on the influence of behavioral factors on the design of management control systems. on table 4.38, it can be seen that the direct value is 0.603 and indirect is 0.514 so that it is indirect <direct, which means that the organizational goals are not able to meet the requirements to be intervening variables. effect of cultural factors on management control system design and organizational objectives as intervening variables. from the calculation of direct and indirect effects in table 4.38, it shows that the value of indirect> direct. so it can be interpreted that organizational goals are able to become a mediating variable (intervening) on the influence of organizational goals on the design of management control systems. in table 4.38, it can be seen the direct value of -0.019 and indirect value of 0.514 so that indirect> direct, which means that organizational goals are able to meet the requirements to be intervening variables. iv. conclusion this research was conducted to determine the effect of organizational structure (x1), program structure (x2), information structure (x3), performance of administrative factors (x4), behavior factors (x5) and cultural factors (x6) on the design of management control systems (y) with organizational goals (z) as intervening variables in the utd pmi jember organization. below this is the conclusion of the results of this study: 1. variable organizational structure, program structure, information structure, administrative factors, behavioral factors and cultural factors show no significant effect on the design of management control systems seen in the results of the t test but simultaneously affect the f test 2. organizational structure and behavioral factors show a significant direct effect on organizational goals. while the variable program structure, infor14 sinergi, volume 9 number 2 september 2019 suwignyo widagdo1), erica ratnasari2) internal factor analysis in management control system design with organizational objective as intervening variables in blood transfusion unit pmj jember mation structure, administrative factors, and cultural factors show no significant direct effect on organizational goals. this can be seen in the results of the t test. 3. the variable organizational goals show a significant influence on the design of management control systems seen partially. 4. organizational goals can be intervening variables between program structure, information structure, behavioral factors and cultural factors on the design of management control systems. while organizational goals are not able to be an intervening variable between organizational structure and administrative factors on the design of management control systems. suggestion 1. trying other exogenous variables in subsequent studies. 2. looking for research objects that have a greater level of respondents. 3. comparing between influence partially and simultaneously more specifically. references [1]adel, jack febrian.2012. pengaruh pemahaman struktur organisasi terhadap adhitama,satria.2017.analisis penerapan sistempengendalian manajemen dengan model four levels of control di pusat pendidikan dan pelatihan bea 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[42]wicaksono,widi cahyo .2013.faktorfaktor mempengaruhi efektivitaspengendalian intern di sektor pemerintahan. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 63 analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya satrio sudarso1*), susanto sukiman2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: satrio_sudarso@yahoo.com1*), susanto_ega@yahoo.com2) abstract. every entrepreneur in the culinary field is required to compete competitively in terms of improving product quality and managing price factors to be able to create consumer satisfaction which can affect loyalty. the research location was conducted at one of the hisana fried chicken outlets in the surabaya area. the criteria for the consumer sample are those who are over 17 years of age and also have at least become hisana customers, with a minimum of 2 (two) previous purchases in the last 1 (one) month. the number of samples is 100 respondents. the statistical analysis calculation method uses the spss program in processing and evaluating the results of the questionnaire to test the quality of the data, while to process and evaluate the results of the path analysis test, hypothesis to evaluate the 'goodness of fit indices' model using the structural equation modeling (sem) method with the amos program. the results of data processing show (1) product quality has a positive and significant effect on consumer satisfaction (2) product quality has a positive and significant effect on consumer loyalty (3) price has a significant negative effect (opposite) on customer satisfaction (4) price has a significant effect negatively (contrary) to consumer loyalty (5) customer satisfaction is positive but does not have a significant effect on customer loyalty. keywords: product quality; price; satisfaction; loyalty i. introduction along with the times, more and more catering businesses have sprung up, both old 'players' and new businesses. thus, it can be seen that the business world sector has become an arena of fierce and neverending competition for the companies that play a role in it, including restaurants. in general, customers like a product because of the benefits provided by the product (customer value) as explained by christina ariadne (2017: 134), which consists of the following: 1. the importance of the use situation 2. product category effectiveness in related situations 3. the relative effectiveness of the brand in the situation concerned product quality is a vital factor that influences the creation of customer satisfaction. product quality is a determinant of consumer satisfaction after purchasing and using a product. product quality is a form with a complex satisfaction value (hidayat, 2009). price is also a vital factor in determining whether consumers will buy or not. according to research conducted by dapkevilius, melnikas (2009: 19) states that price and product quality greatly affect the level of customer satisfaction. customer satisfaction will be the main factor as the company's goal to maintain the viability of the company in the business market and be able to increase excellence in competition. if you want to get customer loyalty, the first thing you need to do is create satisfaction. satisfaction is a fulfillment response from customers (umar, 2008: 14). customers are said to be satisfied if their expectations are met or will be very satisfied if customer expectations are exceeded (tjiptono, 2008). customer loyalty has a causal relationship with product quality. the occurrence of brand loyalty to consumers is due to the influence of customer satisfaction or dissatisfaction with the brand which accumulates continuously in addition to the perception of product quality. rewards of loyalty, long term and cumulative. so that the longer the loyalty of a customer, the greater the profit the company gets from one related customer (griffin, 2005:11). this study aims to determine the effect of product quality and price on consumer loyalty through customer satisfaction as an intervening variable at the hisana fried chicken surabaya restaurant chain. referring to the description of the background of the problem above, the problems that can be formulated are: 1. will product quality have a significant effect on customer satisfaction? 2. will product quality have a significant effect on consumer loyalty? 3. 3. what is the price will have a significant effect on consumer satisfaction? mailto:satrio_sudarso@yahoo.com1 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 64 4. what will the price be significant effect on consumer loyalty? 5. will customer satisfaction have a significant effect on consumer loyalty? ii. theoretical framework product quality product quality is a potential strategic tool to beat competitors. so, only companies with the best product quality will grow rapidly and in the long term these companies will be more successful than other companies. product quality according to suharno and sutarso (2010: 160) is a means to position the product in the market. quality is the performance of a product in meeting the needs and desires of consumers. meanwhile, according to kotler and armstrong (2005: 283) product quality is the ability of a product to perform its functions, this includes overall durability, reliability, accuracy, ease of operation, and product repair as well as other product attributes. kotler and keller (2009: 143) define product quality as the totality of features and characteristics of a product or service that depend on its ability to satisfy stated or implied needs. according to research by dita amanah (2010), product quality is the product's ability to carry out its functions with indicators as follows: 1. shape 2. privileges 3. reliability 4. quality of performance 5. durability 6. ministry 7. beauty price price is also an important factor in an effort to attract the attention of consumers, if the price that has been set is not too expensive or not too cheap then the customer can conclude that the price is appropriate or reaches a reasonable limit with the previously expected price. price communicates the intended value positioning of the company's product to the market. products that are well designed and marketed can be sold at high prices and generate large profits (kotler and keller, 2009: 12). according to peter and olson (2000: 232) the pricing strategy becomes something that needs attention when entering the following three situations, including: 1. when the price of a new product is being set. 2. when considering making long-term changes to an established product. 3. when considering making short-term price changes. factors to consider in setting prices include costs, profits, competitive practices and changes in market demand. there are at least six steps in pricing, namely choosing a pricing objective, determining demand, cost estimates, cost analysis, competitor prices and bids, selecting a pricing method and selecting a final price. (kotler and keller, 2007:84). according to prasastono et al. (2017), the condition of the cheap or high price of a product is very relative depending on the perception of each customer, for that the company must always monitor the prices set by competitors, so that the prices set by the company are not too high, so as to create customer loyalty. consumer satisfaction according to kotler and keller (2009: 138) satisfaction is a person's feeling of pleasure or disappointment that arises after comparing perceptions or impressions of the performance (or results) of a product and their expectations. this statement implies a subjective assessment of each individual in viewing and feeling a related product. meanwhile, according to tjiptono & chandra (2011: 292) the word satisfaction comes from the latin "satis" (meaning sufficient enough) and 'facio' (to do or make). so it can be concluded that satisfaction is an effort to fulfill something or make something adequate. satisfaction itself is a picture or a person's feelings about what has been achieved or obtained. the existence of a sense of satisfaction experienced by customers will produce a good meaning, namely customers will make repeat purchases. customer satisfaction will be the main factor as the company's goal to maintain the viability of the company in the business market and be able to increase excellence in competition. if you want to get customer loyalty, the first thing you need to do is create satisfaction. the creation of customer satisfaction will provide important benefits, namely the relationship between companies and customers is good and customer loyalty is created. this is supported by research by edward makwei (2014) which states that customer satisfaction can increase customer loyalty. after consuming a product, customers will have feelings of satisfaction or dissatisfaction with the product or service they consume (sangadji and sopiah, 2013: 190). indicators of customer satisfaction that refer to the research of deng, lu, wei, and zhang (2010), include: 1. the choice of a service provider is a wise one. 2. do the right thing by subscribing to a service provider. 3. overall, the service provided is satisfactory. consumer loyalty according to tjiptono (2008: 77) loyalty is a customer's commitment to brands, services, suppliers which is reflected in the form of consistent repeated purchases. to increase company loyalty, it must increase customer satisfaction and maintain the level of satisfaction for each customer in the long term, so the company can add value to what is offered. griffin (2005:5) further states that the concept of customer loyalty is more associated with behavior than with attitudes. if someone is a loyal customer, he or she exhibits buying behavior which is defined as a non sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 65 random purchase expressed from time to time by several purchasing decision-making units. benefits derived from consumer loyalty to the company according to (kotler, hayes and bloom, 1998 in buchari alma, 2002: 217) there are six reasons why companies must maintain and retain existing customers, including the following: 1. existing customers have greater prospects of providing benefits to the company. 2. the costs incurred by the company in maintaining and maintaining existing customers are much smaller than finding new customers. 3. customers who trust an institution in a business matter tend to also trust in other business matters. 4. if an old company has many old customers, then the company will benefit because of efficiency. old customers are used to it, of course there are no more demands, the company just takes care of and maintains them. 5. old customers certainly have had many positive experiences related to the company, thereby reducing psychological and socialization costs. 6. old customers will try to defend the company related to friends and the environment. griffin (2005) in sangadji & sopiah (2013: 105) states that loyal customers have the following characteristics: 1. make purchases regularly 2. make purchases across all product lines 3. recommend products to other parties 4. demonstrate immunity from the attractiveness of similar products from competitors research by tjiptono (2000: 107-108) suggests several characteristics of loyal consumers, including: 1. make consistent repeat purchases; consumers buy back the same product offered by the company. 2. recommend company products to others; consumers communicate by word of mouth regarding the product to others. 3. consumers do not easily switch to competitor products; consumers are not interested in offering similar products from competitors. iii. research methodology conceptual framework this study aims to answer the research problem, namely to analyze the significant effect of product quality on consumer satisfaction, to analyze the significant effect of product quality on consumer loyalty, to analyze the significant effect of price on consumer satisfaction, to analyze the significant effect of price on consumer loyalty, to analyze the significant influence between consumer satisfaction on consumer loyalty. figure 1. conceptual framework research hypothesis h1 : there is a positive relationship between product quality and customer satisfaction h2 : there is a positive relationship between product quality and loyaltyconsumer h3 : there is a positive relationship between price andconsumer satisfaction h4 : there is a positive relationship between price andconsumer loyalty h5 : there is a positive relationship between customer satisfaction and customer loyalty variable identification 1) independent variables are variables that cause changes in the dependent variable. in this study, the independent variables are product quality (x1) and price (x2). 2) the dependent variable is the variable which is the impact of the dependent variable. in this study, the dependent variable is consumer loyalty (y) 3) the intervening variable is an intermediary variable that mediates the dependent and independent variables. in this study, the intervening variable is consumer satisfaction (z). variable operational definitions 1. product quality (x1) product quality is a set of characteristics of goods and services that have the ability to meet needs which is an understanding of the combination of durability, reliability, accuracy, ease of maintenance and care and other attributes of a product. the indicators for product quality used in this study refer to the theory of gaspersz (2008: 119) which explains that the dimensions of product quality include 8 dimensions, including the following: a. product performance (x1,1) is the main operating characteristic of the core product and can be defined as the appearance of an actual product. b. reliability (x1,2), namely the level of consistency of the reliability of a product in its operational processes in the minds of consumers. the reliability of a product is also a measure of the probability that a sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 66 product will not be damaged or fail within a certain period of time. c. additional features (x1,3) are secondary or complementary characteristics which can be defined as the level of completeness of the attributes that exist in a product. d. conformance with specifications (x1, 4) namely the extent to which the design and operating characteristics meet predetermined standards and can be defined as the level at which all units produced are identical and meet the promised target specifications. e. durability (x1,5) relates to how long the product can continue to be used and can be defined as a measure of the expected operating life of the product under normal and/or severe conditions. f. service capability (x1,6) includes speed, competence, comfort, ease of repair and satisfactory complaint handling and can be defined as a measure of the ease of repairing a damaged or failed product. g. product beauty (x1,7) to the five senses and can be defined as the attributes attached to a product, such as color, model or design, shape, taste, aroma and others. h. perceived quality (x1.8), namely perceived quality. when applied to measuring the quality of food and beverages, perceived quality is the basic quality of food and beverages. 2. price (x2) fair prices are an ideal form of product prices that are acceptable and satisfying to consumers on average. the indicators regarding price in this study refer to research by dita amanah (2010), namely as follows: a. the price level of products sold (x2,1) b. product price discounts in various promotional programs (x2,2) 3. consumer satisfaction (z) consumer satisfaction is defined as an assessment and evaluation by consumers of a product or service with the assumption that what is received is in accordance with what is needed and expected. the customer satisfaction indicators used in this study refer to research by tjiptono (2012: 453) where the important aspects that need to be examined in the customer satisfaction measurement framework are: a. general or overall satisfaction (z,1) b. confirmation of expectations (z,2) c. comparison with the ideal situation (z,3) 4. consumer loyalty (y) consumer loyalty is a deeply held commitment to re-patronize or re-purchase a product consistently in the future, even though situational influences and marketing efforts from competing companies have the potential to cause behavior change. the loyalty indicators used in this study refer to the research of deng, lu, wei, and zhang (2010), which consists of: a. continuous use of a particular service provider (y, 1) b. recommend a particular service provider to others (y, 2) c. loyalty to a particular service provider; if other people are recommended by other services, the customer's preferences will not change (y,3) sampling procedure in this study, the population is consumers of hisana fried chicken whose average number is not estimated or infinite. where the selected consumer criteria are as follows: 1. male/female over 17 years of age 2. have at least become a hisana customer, with a previous purchase intensity of at least 2 (two) times in the last 1 (one) month. the sample is part or representative of the population being studied (rusiadi, 2014: 31). determining the number of samples is determined by using several methods, including using the formula proposed by djarwanto and subagyo (2005: 139) that is, if the population is large and the number is unknown. then the minimum number of samples taken is 100 respondents. the method used in determining the sample of this study is using nonprobability sampling and sampling technique, namely by using accidental sampling which is a sampling technique based on the factor of spontaneity, meaning anyone who accidentally meets the researcher and according to predetermined characteristics, then this person can be used as a sample (respondent) at the related hisana fried chicken restaurant. data collection procedures data collection in this study was obtained in the following way: a. read the literature and previous research related to the problem under study. b. observation. namely a technique or way of collecting data that is carried out by making direct observations of phenomena that appear in the problems studied. c. distribution of questionnaires, this technique is carried out by asking questions to respondents to be answered according to the level of acceptance of respondents. the nature of the questions is closed, meaning that the sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 67 answers have been provided by the researcher, the respondent only has to choose the available answers. d. interview, through this technique data is obtained by conducting direct interviews with oral or face-to-face data sources. data analysis technique the procedure carried out is to assess the results of the questionnaire to process them with the main statistical system analysis, namely path analysis. in this study, two methods of calculating statistical analysis (combine) were used, namely processing and evaluating the results of the questionnaires to testing the quality of the data using the statistical program spss (statistical program for social science). meanwhile, to process and evaluate the results of the path test, the hypothesis to the evaluation of the 'goodness of fit indices' model uses the structural equation modeling (sem) method based on variance with the amos statistical program. 1. data quality test a. reliability; reliability measurement uses a numerical index called the coefficient. the concept of reliability can be measured through three approaches, namely: the stability coefficient, the equivalence coefficient and internal consistency reliability. b. validity; a measuring instrument is said to be valid if the instrument measures what it is supposed to measure. validity testing in this study will be carried out using the spss program using construct validity. c. evaluation of outliers; outliers are observations or data that have unique characteristics that look very different from other observations and appear in the form of extreme values for a single variable or combination variable (hair, 2010). the first step is to observe the value of the z-score test where the range of values must be between ± 3.0 is said to be a non-outlier. after that, do the mahalanobis distance test for the validity of the data to ensure that the data really does not have multivariate outliers. 2. path analysis this test is intended to explain the direct and indirect effects of a set of variables, as causal variables, on effect variables which are based on standardized regression coefficients (al-rasyid, 2000: 3). if based on the calculation results there are variables that are not partially significant, then based on the triming theory these variables can be discarded to produce a fit model. the statistical model analysis technique in this study used the structural equation modeling (sem) method with the amos v.24 statistical program tool. quoted from sarwono (2010: 173) sem is a statistical technique used to build and test statistical models in the form of causal models which are hybrid techniques that have affirming aspects of factor analysis, path analysis and regression. the main application of sem in path analysis is to hypothesize causal relationships between variables and test causal models using a system of linear equations that can include manifest variables (indicators) or latent variables and even both variables. 3. hypothesis testing hypothesis testing is useful for examining or testing the significance of the regression coefficient obtained. the hypothesis testing carried out in the data processing function of this path analysis uses the basis of multiple linear regression analysis which is used to see the direct effect between constructs based on the hypotheses that have been disclosed and the structural equation model hypothesizes that changes in latent constructs will affect changes in indicators. 4. model evaluation hair et al., (2010) explained that the "confirmatory" pattern indicates a procedure designed to evaluate the utility of hypotheses by testing the fit between theoretical models and empirical data. if the theoretical model describes a "good fit" with the data, then the model is considered as strengthened. conversely, a theoretical model is not strengthened if the theory has a "poor fit" with the data. the amos statistical program can test whether the model is "good fit" or "poor fit". so, the "good fit" model being tested is very important in the use of path analysis. iv. discussion stages of model analysis and proof of hypothesis 1. data quality testing a. data validity test based on the results of the data validity test, it was found that there was no correlation coefficient whose significance was assessed to be greater than 5% (sugiono, 2007: 70), so that the items concerned were valid as forming indicators and were excluded from the items forming variables. b. data reliability test the test results show that the cronbach alpha value for each construct or variable is greater than 0.60 so that it can be concluded that all items in each variable are said to be reliable, so that the existing data can be processed further. c. outlier test detection of multivariate outliers was carried out using the mahalanobis distance criterion at the p level <0.001. the mahalanobis distance was evaluated using 2 in degrees of freedom equal to the number of variables used in the study. if the case has a mahalanobis distance greater than the chi-square value at a significance level of 0.001, a multivariate outlier occurs. mark 2 0,001with the number of variables 4 is 18.4668. the results of the mahalanobis analysis obtained 26,384 values which were greater than 2 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 68 table 18.4668, thus it is said that there are multivariate outliers. the point where the outlier occurred was in the 16th respondent's response, so for the respondent's answer no. 16 must be omitted and cannot be included as sample data, in order to achieve the criteria of not having multivariate outliers on the grounds that the requirements of subsequent statistical tests can be fulfilled where the variables can be normally distributed in the absence of confounding variables. the results of the revised outlier test with mahalanobis analysis after deleting the outlier items in respondent's item no. 16 obtained a value of 14.796 where the value is smaller than 2 table worth 18.4668, so with that, it can be said that there are no multivariate outliers. 2. model fitment analysis it can be seen from the goodness of fit indices test in general that it produces a fit model because the chisquare value = 1,650,135 is at the criterion value 1 5. besides that, other fit model sizes based on the results of amos v.24 data processing give a text output value of probability = 0.263, tli = 0.973, gfi = 0.959, agfi = 0.928, rmsea = 0.047, and cfi = 0.968 with the probability of each being on the threshold of the normal critical value, so that the overall model is fit to meet the criteria. overall, the data model is accepted and the next step is to analyze the estimated parameters. 3. proving the hypothesis hipotesis pengujian hasil penerimaan ustd std prob pengujian estimate estimate hipotesis h1 kualitas berpengaruh diterima/ 0,773 0,813 0,001 produkkepuasan positif konsumen signifikan signifikan h2 kualitas berpengaruh diterima/ 0,846 0,841 0,007 produkloyalitas positif konsumen signifikan signifikan h3 hargakepuasan berpengaruh diterima/ -0,200 -0,353 0,001 konsumen negatif signifikan signifikan h4 hargaloyalitas berpengaruh diterima/ -0,502 -0,417 0,015 konsumen negatif signifikan signifikan h5 kepuasan berpengaruh ditolak/ 0,260 0,246 0,433 konsumenloyalitas positif / konsumen tidak tidak signifikan signifikan sumber: pengolahan data amos – lampiran 11 picture 1. proving the hypothesis 4. path analysis diagram the theoretical model along with data structure analysis will be described in the path diagram. path analysis diagrams will make it easier to see the relationships between variables. to see the causality made by several models tested using sem to require a model that fits the criteria goodness of fit. based on the theory of the structure of the model that is made then determine each variable and make directions along with the causality relationship. the path analysis diagram model shown in this study is shown as follows: figure 2. the path analysis diagram model v. conclusions and suggestion conclusion based on the test results using path analysis to test product quality and price factors on consumer loyalty by using customer satisfaction as an intervening variable at hisana fried chicken in the surabaya area, the following conclusions can be drawn: 1. the results of the study reveal that product quality has a positive and significant effect on customer satisfaction for hisana fried chicken customers in the surabaya area. this shows that if the quality of the product is higher or better, the consumer's level of satisfaction with the company will increase 2. the results of the study reveal that product quality has a positive and significant effect on consumer loyalty to hisana fried chicken customers in the surabaya area, this shows that if the product quality is higher or better, consumers will increase their level of loyalty to the company. 3. the results of the study reveal that price has a negative and significant effect on hisana surabaya customer satisfaction. this shows that if the price is changed from what is currently set, for example if the product price is lowered, the consumer's level of satisfaction will increase. 4. the results of the study reveal that price has a negative and significant effect on consumer loyalty to hisana fried chicken customers in the surabaya area, this shows that if prices are changed from those currently set, for example if product prices are lowered, consumers will increase their level of loyalty to the company. 5. the results of the study reveal that consumer satisfaction has a positive but not significant effect on consumer loyalty to hisana fried chicken customers in the surabaya area. this shows that if customer satisfaction is sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satrio sudarso, susanto sukiman analysis of the influence of product quality and price on customer loyalty through customer satisfaction as an intervening variable in restaurants hisana fried chicken surabaya 69 increased, consumer loyalty will potentially increase the level of loyalty to the company, but the increase is not significant. suggestion from the results of this study several suggestions can be put forward that can be considered or used as material in decision making, including the following: 1. in terms of product quality on hisana fried chicken customer satisfaction, with one of the best average values for product performance and service capabilities, this means that consumers are satisfied with the quality of hisana fried chicken products. for this reason, it is hoped that the product quality factor to service quality can always be maintained and strived to be improved on an ongoing basis so that the business that has been built can always excel in competition with other similar businesses. especially regarding the strategy to always increase product diversification that is adjusted to culinary trends to the latest (up to date) consumer desires. 2. in terms of product quality and its relationship with consumer loyalty, one of the best average scores is in the 'recommend others to buy hisana products' sub-indicator. this can be interpreted that consumers are loyal to hisana products and it can be interpreted that consumers have become brand minded. therefore, consumer trust must always be maintained and continuously improved. especially regarding the taste of hisana's main product which is hisana's mainstay key where it has survived to this day, so that it can always be maintained even more so the quality of the taste can be improved with the intention of being a differentiator and superior compared to competing companies. 3. in terms of price and customer satisfaction hisana fried chicken, with the highest average score on the 'product price level' indicator, this can provide satisfaction to consumers. however, because the price coefficient is negative, it means that the average customer wants the product price to fall, with the product price falling, customer satisfaction will increase. so it is necessary to reconsider the optimization of product prices so that the average consumer states that the price is reasonable, adjusted for the quality of the product and the quality of the services provided. 4. for the price variable and its relationship with consumer loyalty, the loyalty variable indicators that have been assessed show that the prices set by the company can be said to be reasonable and provide loyalty to consumers. however, because the negative price coefficient means that the average customer wants the price of the product to fall, the lower the price of the product, the customer loyalty will increase. so it is necessary to rearrange the level of reasonable product prices that can be accepted by most consumers in order to remain loyal as hisana loyal customers. 5. for the variable consumer satisfaction and its relationship to customer loyalty, the satisfaction indicator with the highest average score is 'confirmation of expectations' and when it is associated with loyalty, this means that customer satisfaction has positively provided a loyal attitude towards hisana products, although it has no effect significantly. therefore it must be able to give the impression of creating harmony between the important elements in service management at restaurants, especially regarding product quality which is getting better 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philippine 1)keiichi yamada nakamura gakuen university email : yamakei2626jp@gmail.com submit : 13th march 2019, revised : 15th march 2019, accepted : 20th march 2019 abstract the poor accounts for larger part of the population. despite long-term and energetic effort of supporting institution (si) including ngos, most of the middleclass poor who occupy the major part of the poor are still staying in poverty. for the fundamental solution, the individual efforts of self-reliant and endogenous development for their independence are indispensable, by those marginalized people themselves who cannot access enough supports of si. for those who need to become independent, they need to recognize who they are, where they are from (past history) and where they would like to go (goal of their life). however, for their self-independent, motivation for independent and self-development of their own career seem to be useful. such motivation and career development have close relationship with maturity and self-determination, self-efficacy and personal-causation of the said person, and kind of motivation. namely, person who has high maturity has high self-determination, hi self-efficacy, hi-personal-causation, and intrinsic motivations are effective, and who has low maturity has low self-determination, low self-efficacy, low personal-causation and extrinsic motivations are effective. in this paper, we proposed a method of ‘role model’ and ‘career profile’ for self-independence through the literature reviews and discussions. firstly, we present macro vs micro approach of solving poverty issue, then focus on micro approach – we review about motivation, time-perspectives, and career development. secondly, on role models, we discuss about its definition and functions, role models and mentor, four types of role models. thirdly, on career profile, we discuss about its definition and functions, self-analysis, structure and elements, life history analysis, and goal setting and roadmap. finally, we show result of our preliminary questionnaire and discuss about problems and future issues. i. introduction reduction of poverty is one of indispensable issues to be tackled with both in developing and developed countries, and it is now sdg1. despite supporting institution’s (si) including national governments, local governments, ngos, people organizations (po), private enterprises and individuals, long time and great effort for this issue, fundamental solution of poverty is still far beyond our reach. although, in accordance with economic development, unemployment ratio is decreasing and it is little more than 5 percent (as of 2018) in philippines, poverty still seems to account for more than 2/3 of its populations including potential poor. depending on where we draw the line divided poor and non-poor, people who lead unstable daily life under the informal economy (hart 1973) are still categorized as the poor even if they are not unemployed. aditya typewritten text reduction of the poverty is one of the sdgs and one of the major issues in the developing countries where 35 sinergi, volume 9 number 1 march 2019 keiichi yamada1) role model and career profile for career development of the poor in philippine their income is small, irregular, and unpredictable, and they have to manage basics, to cope with risk, and to raise lump sum, in order to stabilize their family life (collins et al. 2009). however, it is not easy for them to do so, and once they suffer ad hoc problems such as accident, incident and disease, etc., they have to pay a huge amount of money. as the result, they cannot manage their family economy, and their life become unstable and even go bankrupt. yet sis have been supporting the poor, they cannot cover those huge number of the non-extreme poor. therefore, in order to solve or at least reduce the poverty, these non-extreme poor have to become independent by their self-reliant and endogenous development. in this paper, based on field of the business administration such as management, marketing and industrial/organizational psychology, etc., we study about macro approach vs micro approach of poverty issue, and then in the stand point of micro approach, we study about how to motivate the poor, how to support them to set their goal, and draw picture of their future in their work and life. ii. macro approach vs. micro approach it is effective that poverty issue is firstly examined both in macro and in micro approach, and then to be integrated (yamada 2017a). macro approach is that si plans and implements uniformly by a specific supporting program to a specific class or specific group in a specific area. major arenas of supporting programs are 1) refugee/ extreme poor assistance for survival, 2) housing, 3) education, 4) finance, 5) health care and medical support, and 6) business and entrepreneurship (chart 3)(yamada 2017b). micro approach is that, in supportee’s point of view, sis support the poor for the purpose of satisfying real needs/wants of each supportee in order for him to make his life stable, develop his skills and abilities, become independent, and get out of the poverty (yamada 2017a) depending on his will. as macro approach, we firstly classified the poor to 5 categories in accordance with living status, 1) refugee/extreme poor, 2) lower poor, 3) middle poor, 4) upper poor, and 5) post poor (chart 1). then we secondly proposed a stage model (spi model) of becoming independent – 1) survival, 2) participation, and 3) independence (chart 2). then we thirdly plotted possible supporting program(s) in the major arenas stated in the above (chart 3) (yamada 2017b). although sis can support a certain area or group – usually refugees/extreme poor and partly lower poor – in these macro approach, they cannot cover major part of the poor – rest of lower poor, middle and upper. grasping real needs and wants of the poor are becoming very difficult, as their needs and wants differ and are changeable by person and situation or life scene even in the same categories of the poor. especially in considering marketing paradigm shift 36 sinergi, volume 9 number 1 march 2019 keiichi yamada1)) role model and career profile for career development of the poor in philippine from content-orientation to context-orientation, to meet these diversified and changeable needs/wants are impossible only by uniform program in macro approach. in order to satisfy real needs/wants of the poor, supporting program should be order-made, or selection in assortment of products/services which should be furnished through networking of sis (yamada 2017b). there proposed several measures trying to solve the poverty problem, such as micro-finance (card mri), inclusive business (pbsp), entrepreneurships and new venture (pcef), etc. by sis. in these cases, how to motivate poor people and support them to be independent is important issue. iii. micro approach – from motivation to career development (1) motivation according to chart 4, as maturity becoming higher, motivation factors could change from deficiency needs to growth needs, hygienes to motivators, extrinsic rewards to intrinsic rewards. and self-determination, selfefficacy, and self-causation could be higher. 1) maturity we introduce the term “maturity” here. maturity is degree of being matured which consists of three dimensions, 1) learning (learning from experience) and kinds of experience (work experience, life experience, etc.), 2) time-length, width, and density of learning/experience are related to maturity, and 3) awareness (or consciousness) and motivation. 2) deficiency needs vs. growth needs maslow (1962) wrote that neurosis “to be a deficiency disease” and “it was born out of being deprived of certain satisfaction which i call needs in the same sense that water and amino acids and calcium are needs, namely that their absence produces illness”. although he stated that “no good behavioral definition of motivation has yet been found”, “i am motivated when i feel desire or want or yearning or wish or lack.” thus, the lack of satisfaction of needs motivates us to obtain shortage or deficit. on the other hand, he stated that “healthy people have sufficiently gratified their basic needs for safety, belongingness, love, respect and selfesteem so that they are motivated primarily by trends to self-actualization.” he defined self-actualization as “ongoingactualization of potentials, capacities and talents, as fulfilment of mission (or call, fate, destiny, or vocation), as a fuller knowledge of, and acceptance or, the person’s own intrinsic nature, as an unceasing trend toward unity, integration or synergy within the person.” growth motivation is motivation of pursuing self-actualization 3) factors of hygienes vs. factors of motivation herzberg et al. (1966) proposed factors of hygienes and factors of motivation. factors of hygines are job-dissatisfaction caused by supervision, interpersonal relations, physical working conditions, salary, company policies, and administrative practices, benefits, and job security, etc. on the other hand, factors of motivation are job-satisfaction brought by recognition, achievement, possibility of growth, the nature of work, responsibility, promotion, and personal growth, etc. 4) intrinsic vs. extrinsic motivation intrinsic motivation is derived from intrinsic rewards which is not given from outside such as sense of accomplishment, sense of growth, 1 we divided 2nd stage (participation) and 3rd-stage (independence) into 2 sub-stages each; 2a (security of daily life and social participation) and 2b (preparation of independence), and 3a (implementation of independence) and 3b (continuation of independence). 37 sinergi, volume 9 number 1 march 2019 keiichi yamada1) role model and career profile for career development of the poor in philippine sense of competence, pleasure of work, and self-actualization. etc. deci & flaste (1995) stated that intrinsic motivation is “the process of doing an activity for its own sake,” and is “doing an activity for the reward that is inherent in the activity itself”– which is similar to “flow” experience that csikszentmihalyi (1990) proposed. on the other hand, extrinsic motivation is derived from extrinsic rewards which is given from outside such as pecuniary rewards (salary, bonus, etc.), non-pecuniary rewards (promotion, award, praise/approval, acceptance, consideration, etc.), etc. on the problem of extrinsic rewards, deci & flaste (1995) stated that “once people started getting paid, they lost interest in the activity” and “then, when the rewards stopped, they did not perform as well.” in addition, deci & flaste (1995) referred that “not only do controls undermine intrinsic motivation and engagement with activities but – and here is a bit of bad news for people focused on the bottom line – they have clearly determinantal effects on performance of any tasks that require creativity, conceptual understanding, or flexible problem solving”. 5) self-determination, personal causation, selfefficacy deci & flaste (1995) referred that “people need to feel that their behavior is truly chosen by them rather than imposed by some external source – that the locus of initiation of their behavior is within themselves rather than in some external control”. personal causation is defined as “the intention by an individual of behavior intended to produce a change in his environment” (de charms 1986). kanai (2016) explained that it is better for a person to become a player than be a piece in chess. he must be motivated by his personal causation. it means that a person would be more motivated by doing something by himself than by being controlled by someone. bandura (1994) defined “perceived selfefficacy” as people’s beliefs about their capabilities to produce designated levels of performance that exercise influence over events that affect their lives. he added that self-efficacy beliefs determine how people feel, think, motivate themselves and behave, and such beliefs produce these diverse effects through four major processes – including cognitive, motivational, affective and selection processes. bandura (1994) stated that “a strong sense of efficacy enhances human accomplishment and personal well-being in many ways”. (2) time perspectives 1) 1) time perspectives lewin (1951) defined time perspectives (tp) as “the totality of the individual’s views of his psychological future and his psychological past existing in a given time.” tp has cognitive feature – what sort of events a person would remember or expect, and emotional or behavioral feature – what sort of emotion or view about his past and future (tsuzuki 1982). zimbardo & boyd (1999) developed ztpi (the zimbardo time perspective inventory) scale and classified tp into 5 categories, including past-negative, pastpositive, present-hedonistic, present-fatalistic, and future. in each term, past, present and future show time orientation of a person, and negative, positive, hedonistic, and fatalistic show cognitive orientation. according to this categorization, time-orientation and cognitive orientation differ by each type, and as a result tp of a person can be different. as tp has a close relationship with a person’s thought, behavior and action in his past, present and future, it is very important to study a person’s present status, and his cognition about his present status, past events and his cognition about them, and his thought about his future (chart 5). 38 sinergi, volume 9 number 1 march 2019 keiichi yamada1)) role model and career profile for career development of the poor in philippine 2) life stage/life cycle levinson (1978) introduced “seasons of a man’s life” as 1) childhood and adolescence, 2) ealy adult transition, 3) entering the adult world, 4) age 30 transition, 5) settling down, 6) mid-life transition, 7) entering middle adulthood, 8) age 50 transition, 9) culmination of middle adulthood, 10) late adult transition, and 11) late adulthood. he categorized 2) to 5) as early adulthood (up to 40), 6) to 9) as middle adulthood (up to 60), and 10) and 11) as late adulthood (over 61 years old). erikson (1982) wrote a life stage as 1) infancy, 2) early childhood, 3) play age, 4) school age, 5) adolescence, 6) young adulthood, 7) adulthood, and 8) old age 3) transition – when should we design/redesign our career? kanai (2002) proposed that career design should be made at the time of “transition”. bridges (2004) distinguished “change” and “transition”, and defined “transition is psychological” while “change is situational”, and “transition are the inner re-orientation and self-redefinition that you have to go through in order to incorporate any of those changes into your life.” bridges (2004) introduced transition process as ending, the neutral zone, and new beginning. causes of ending include disengagement, dismantling, disidentification, disenchantment, and disorientation. a) design and drift – state of career development kanai (2002) proposed that cycle of career design and career drift are effective for good career. career design even if it may not be a detailed planning, we need to have rough orientations, dreams, or ambitions, etc., to carry out reality-testing of dreams, and to have rough orientation about how we would like to lead our life and what kind of career we would like to have (kanai 2002). in order not to drift our life, and in order to utilize career drift it is necessary for us to make career design at the time of transition. career drift in order to find something good incidentally, and enjoy serendipity, it had better not to design career completely. in addition, career should be formed in the process of drifting. therefore, it is better for us to drift other than transition time (kanai 2002). burt if we do not design at all, our life would be completely drifted, it is important to design our career at the period of transitions. b) signs of transitions kanai (2002) took up signs of transitions as following 4 cases; 1) facing certain crisis; 2) opportunity of mentor’s suggestions; 3) affluent and fulfilled; and 4) specific time of calendar or age. c) questions in transition kanai (2002) recommended that we should respond to following 3 questions at the period of transitions; 1) what are you good at? (skills and competencies); 2) what do you really desire? (motives and wants); and 3) what do you value in the context of what your occupation organization considers important, what your colleagues value, and how the kind of organization culture you encounter fits with those value? (meanings and values). kanai (2002) stated that it is effective to respond to 3 questions at the period of transitions; 1) what are your advantages (knowing how); 2) why do you want to do something? (knowing why); 3) with whom have you had relationship and how have you utilized those relationships? (knowing whom). (3) career development 1) critical tasks for career development and changes life patterns hansen (1997) proposed 6 critical tasks for career development and change life patterns; 1) finding work that needs doing in changing global contexts; 2) weaving out lives into a meaningful whole; 3) connecting family and work; 4) valuing pluralism and inclusivity; 5) exploring spirituality and life purpose; and 6) managing personal transitions and organizational change. 39 sinergi, volume 9 number 1 march 2019 keiichi yamada1) role model and career profile for career development of the poor in philippine 2) career development career development is “process that an independent individual actualizes his own needs and expectations optimally by harmonizing with those of organizations in his work life during his life stage,” and “he should have self-responsibility in selecting and deciding his career (hirano 1994)”. in considering career development, it is helpful to use 2 elements of career dynamics; selection of individual career or individual hope, and request of society which needs talented person who has ability of carrying out required work or needs of society. career counseling plays a role of matching both individual needs and society’s needs, of which point is “how to match talented person whom society needs and individual career and his life” (schein, et al. 2017). they presented elements for improving matching process as 1) process which individual finds his own need (career anchor), 2) process which organization finds their own needs (career survival), and 3) better interactive communication (schein, et al. 2017). iv. proposal of role model(s) and career profile as we showed in chart 4, persons who have lower maturity, especially people in adolescence or even college students, are considered not easily and correctly able to analysis their present and recall their past, and set their future goal and how to pave the way, and thus it is helpful to have assist of counselors or mentors, and tools such as role model as reference model and career profile. (1) role model 1) role model and mentor hurd, et al. (2011) stated that “in some studies role model and mentor have been used interchangeably”. a role model is a person who is perceived by others as worthy of imitation and who may or may not have personal contact with the people who perceive him/her as a role model (pleiss & feldhusen 1995). a mentor is someone who guides, encourages, supports and interacts closely with his or her mentee (zimmerman, et al. 2002). hurd, et al. (2011) mentioned that “mentors may often be role models, but role models are not necessarily mentors”. in addition, “mentors have patterns of regular contact with mentees and also have relationships with mentees that occur over period of time,” while “role models can vary in the amount of personal contact and interaction they have with youth” (hurd, et al. 2011). they concluded that “pertaining to adolescent development, the most important function of role model is to model attitudes, values, and behavior that the adolescent may incorporate into his/her own attitudes, values, and behavior (hurd, et al. 2011). 2) 4 types of role model role models are classified into 4 types; charismatic, occupational, way-of-life, and religious (especially in religious countries such as philippines). charismatic or person model role model by using specific person as desirable model with his life stories, etc. ex.) president duterte, a boxing super star manny pacquiao, etc. occupational model role model of specific occupation – ex. nurse, flight attendant, professional teacher, etc. in the form of career guidance or reference books/manuals of specific type of occupation, etc. way-of-life model role model of specific way of life in the form of career guidance or reference books/ manuals of specific type of way of life, etc. this model can be categorized further 4 types; work-centric; family-centric; pleasurecentric; and hybrid type. religious model role model based on tenets in scripture and/or sermon of priest, etc. (2) career profile 1) what is career profile? making a career profile, firstly, person who would like to make his career profile (object person) shall write his own life story (from the 40 sinergi, volume 9 number 1 march 2019 keiichi yamada1)) role model and career profile for career development of the poor in philippine past to the present) and analyzes it and make a life story analysis through dialogue with counselor. process of making career profile is 1) object person shall imagine his desirable future by referring role model, 2) object person shall relate his present to his past by referring life story analysis, 3) object person shall write a scenario from the present to the future (including a roadmap). it is the most important that object person himself become aware of his life from the past to the future by making it by himself. in addition, as working life and his life have close relationship, a career profile shall include one’s life itself (not only working life but also daily life and after retirement, etc.). 2) self-analysis career profile is a kind of self-analysis which objectives is to know oneself. horney (1942) stated that “self-analysis is an attempt to be patient and analyst at the same time.” she point out three main tasks to confront the patient as 1) to express himself as completely and frankly as possible, 2) to become aware of his unconscious driving forces and their influence on his life, and 3) to develop the capacity to change those attitudes that are disturbing his relation with himself and the world around him (horney 1942). horney (1942) wrote that “complete selfexpression is achieved by means of free association” and “to associate freely means an endeavor on the part of the patient to express without reserve, and in the sequence in which it emerges, everything that comes into his mind, regardless of whether it is or appears trivial, off the point, incoherent, irrational, indiscreet, tactless, embarrassing, humiliating.” in addition, horney (1942) stated the analyst’s general task is “to help the patient to recognize himself and to reorient his life as far as the patient himself deems it necessary.” she divided the analyst’s task into five main divisions; 1) observation; 2) understanding; 3) interpretation; 4) help in resistance; and 5) general human help. 3) structure and elements of career profile career profile should consist of 1) present status, 2) human environment, 3) past history and analysis, and 4) future goals and roadmap. 4) life history analysis for past a person in question shall describe brief past history of events, incidents and accidents, etc. in accordance with 5w1h. then he shall add brief episodes, view, influence in present self, etc. in free style. 5). goal setting for future and drawing a roadmap at first, in order to draw a picture for his future, he had better set goals of his life. if he cannot easily set his goals, he can utilize role models as reference model. and then he shall set milestone by considering practical time span – say 20 years, 10 years, 5 years, 2 years, and 1 year. for instance, if an entire time span of human life is 80 years, we can divide it into 4 parts 20 years each. 1st 20 years is the stage of growing up, 2nd 20 years is the stage of young adult, 3rd 20 years is stage of middle age, 4th 20 years is the stage of old age. usually working life is mainly in 2nd and 3rd stages, and sometimes extended to 4th stage. he shall imagine final goal of his working life – what kind of work and what kind of status, or how he lives in accordance with role models, if he cannot image his final goal easily. v. discussions (1) result of preliminary questionnaire according to our preliminary questionnaire , compared students who have their dreams/goals (haves) and who do not have (have-nots), 69 percent of haves replied they think they are active, while 22 percent of have-nots replied active. on self-determination such as “would you like to decide your own future by yourself?”, 60 percent of haves replied “yes, i think so very much”, while 25 percent of have-nots replied “yes, i think so very much ”. on self-efficacy such as “can you decide you’re 2 we carried out it on january 8, 2019, towards 137 3rd year students (male 40, female 97) in our undergraduate school. 3 although 92 percent of haves replied “yes”, while 82 percent of have-nots replied “yes”, “i think so very much” is 60 percent vs, 25 percent. this means, both haves and have-nots would like to decide their own future, but have-nots are weaker than haves. 41 sinergi, volume 9 number 1 march 2019 keiichi yamada1) role model and career profile for career development of the poor in philippine your own future by yourself?”, 74 percent of haves replied “yes” while 45 percent of have-nots replied “yes”. on future course after graduation, 80 percent of haves replied “yes”, while have-nots were 45 percent. on effectiveness of role model, 62 percent of haves replied “yes”, while have-nots were 30 percent. on effectiveness of self-analysis, 82 percent of haves were “yes”, while have-nots were 74 percent. in summary, students who have their dreams and/ or goals are active, and have already decided his future course after graduation, have high self-determination and high self-efficacy, and appreciate effectiveness of role model and selfanalysis positively. in other words, active students appreciate role model and self-analysis, and cope with their future actively, while many non-active students are skeptical about role model and are nonactive about their future. (2) issues to be discussed the first issue is what kind of approach is effective for non-active persons to think about their future by using role models and career profile. in our research, 37 percent of respondents think themselves active, while 63 percent is not active. considering effect of intrinsic motivation, making career profile with role models should be intrinsic and voluntary, not be forced extrinsically. these issues are matter of good counseling or mentoring. the second issue is optimism/pessimism and learned helplessness, or resilience. we did not ask about these issues in our preliminary questionnaire, decision of future and/or goal setting would be affected by whether they recognize their situation optimistic or pessimistic, or positive or negative, or challenging or not. vi.conclusion reduction of poverty is still significant issue to be tackled with. in this issue there are 2 approaches, macro and micro. in macro approach, based on a specific program, sis plan and implement a specific unified support to a specific group. however, for fundamental solution of poverty problem, raising the living standard of the poor by self-reliant, endogenous and self-helping effort are necessary. in micro approach, we focus on this stand point and studied about motivation and career development, and proposed role models and career profiles. in our preliminary questionnaire, non-active students account little less than 2/3, and they are not active towards their future plan, goal setting and career development, and do not appreciate role models. however, it is significant to motivate these nonactive students intrinsically and voluntarily. we should design effective methods for encouraging these non-active students to be able to do it. this must be one of next issue. in addition, our future issues other than stated in discussions are 1) attitude survey towards their future course in philippine – same questionnaire as we did in our university; 2) to make proto type of role models and career profile, shall be tested and modified through experiment, and verified their effectiveness accordingly. vi. references bridges, william (2004). transitions: making sense of life’s changes, second edition, cambridge, ma., da capo press. bandura, albert (1994). “self-efficacy,” in v. s. ramachaudran (ed.), encyclopedia of human bhavior, vo.4, new york, academic press, pp.71-81. csikszentmihalyi, mihaly (1990). flow: the psychology of optimal experience, new york, harper & row. collins, daryl, jonathan morduch, stuart rutherford, and orlanda ruthven (2009). portfolios of the poor: how the world’s poor live on $2 a day, princeton, nj., princeton university press. deci, edward l., and richard flaste (1995). why we do what we do: the dynamics of personal autonomy, new york, g. p. putnam’s sons. de charms, richard (1968). personal causation: the internal affective determinants of behavior, new 42 sinergi, volume 9 number 1 march 2019 keiichi yamada1)) role model and career profile for career development of the poor in philippine york, academic press. erikson, erik h. (1982). the life cycle completed, a review, new york, norton. hansen, l. sunny (1997). integrative life planning: critical tasks for career development and changing life patterns, san francisco, ca. jossey-bass. hart, keith (1973). “informal income opportunities and urban employment of ghana,” the journal of modern african studies, i , i (1973), pp. 61-89. herzberg, fredrick, bernard mausner, and barbara b. snyderman (1959). the motivation to work, new york, wiley. hirano, mitsutoshi (1994). career development, tokyo, japan, bunshindo (in japanese). horney, karen (1942). self-analysis, new york, w. w. norton. hurd, noelle m., audrey wittrup, and marc a. zmmerman (2011). “role models in adolescent development,” in levesque, roger j. r. (ed.) encyclopedia of adolescence, new york, springer, pp.2399-2404. kanai, toshihiro (2002). hataraku hito no kyaria dezain, tokyo, japan, php (in japanese). kanai, toshihiro (2016). hataraku minna no motivation, tokyo, japan, nikkei shinbun (in japanese). lewin, kurt (1951). resolving social conflicts and field theory in social science, washington dc, american psychological association. levinson, daniel j. (1978). the season of a man’s life, new york, ballentine books. maslow, abraham h. (1962). toward a psychology of being, princeton, nj., d. van nostrand. pleiss, mary k., and john f. feldhusen (1995). “mentors, role models, and heroes in the lives of gifted children,” educational psychologist, 30(3), pp.159-169. schein, edger h., joichi ogawa, and taiga ishikawa (2017). career counseling progress, tokyo, hakuto shobo (in japanese). tsuzuki, manabu (1982), “jikanteki tenbou ni kansuru bunkenteki kenkyu, (literature research on time perspectives),” journal of educational psychology, vol. xxx, no.1, pp.73-86. (in japanese). yamada, keiichi (2017a). “research on the stage model for self development of the poor (spi model) in south east asia: through the field survey in philippines, nakamura gakuen university journal of distribution science, vo.17, no.1, pp.73-85 (in japanse). yamada, keiichi (2017b). ”supporting the poor: ngos/npos and their networks of services,” nakamura gakuen university journal of distribution science, vol.16, no.2, pp.17-25. zimbardo, philip g. and john n. boyd (1999). “putting time in perspective: a valid, reliable individual-differences metric,” journal of personality and social psychology, 1999, vol. 77, no. 6, pp.1271-1288. zimmerman, marc. a., jeffery b. bingenheimer, and paul c. notaro (2002). “natural mentors and adolescent resiliency: a study with urban youth,” american journal of community psychology, 30, pp.221-243. dr. keiichi yamada nakamura gakuen university 2-50-5-803, hoshiguma, jonan-ku, fukuoka city, 814-0132, japan +81-92-834-2710 (home) +81-90-59396134 (mobile) untitled untitled 42 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry digital technology andthe real estate industry mohd lizam faculty of technology management and business, universiti tun hussein onn malaysia email : lizam@uthm.edu.my submit : 8th august 2019, revised :19th august 2019, accepted : 27thaugust 2019 abstract . this paper briefly summarises the extent of the technological impact on the real estate industry, in particular,digital technology. as real estate industry is naturally characterized by several disadvantages in comparison to other industry, understanding the impact ofdigital technology is crucial to the industry on whether this technology will distrust the industry or complement the business process. the emergence of proptech start-ups has made the industry players to re-evaluate its organisational strategy toalign the business process to a possible threat to the present business model.prior studies suggest that proptech comes in there waves in which each waveis characterized by the respective period advancement in digital technology. several studies also indicate that digital technology may not entirely disrupt the industry but do have a significant potential to act as a complement to the industry in improving its productivity and efficiency. keywords: digital technologies; proptech; disruptive innovation; real estate i. introduction technology is the element that disrupts almost every facet of the industry and changing the traditional business model. real estate industry is no exception to this new element and it starting to change the conduct of how business process being implemented in the whole supply chain of the industry. it may become a threat to the present industry player who failed to adapt to the new business model and at the same time create opportunities for the startupthat are innovating new technology that is efficient and at a fraction of the cost. as the emergence of fintech is currently disrupting the financial sector, so do real estate industry. recently thereal estate industries have witnessed the adventof digital technology that promisesefficiency and value-added to the industry players. for example, proptech companies as in [1], offer their technologies often in the form of ‘dashboard’ software product offering real estate players services that mainly to reduce the searching as well as administrative costs using. most of these ‘dashboard’ solutions often accompanied by other supplementary products that promise to fixed problems relating to real estate investment through the application of digital technology. nevertheless, do these proptech innovations can solve problems in the real estate market remain a question. despite criticism that the digital innovation may only address the industry problems temporarily, [2] pointed out that in 2017 alone,the total investment made into proptech was at $12.1bn.this fact is also supported through a survey by [3] which stated 93 per cent agree that real estate business organisation must engage proptech companies to stay relevant despite on 30 per cent on the real estate companies are currently invest or plan to invest in proptech start-ups. considering that other industries that have been disrupted by the computerisation of business process – 43 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry amazon in logistic, grab in taxi services, upwork in outsourcing, and many more – it is about time for the players in the real estate industries to consider threat or opportunity by the proptech more seriously. understanding of form of and how future real estate markets operate is crucial in this trillion-dollar market. proptech is considered a challenge to the traditional setting of the real estate business,andtherefore, it is possible to disrupt the activity of many industry players. this paper is expected to provide a brief overview of the proptech and whetherit could disruptthe real estate industry or merely a tool to make the industry more efficient. through the lens of disruptive innovation theoryproposed by christensen in his work in [4], [5] and [6]the idea technological disruption may be proposed if there is clear evidence ofdisruption digital technology is the impetus that propels the development of proptech. advancement in the information and communication technology (ict) in the late 1990s is the beginning of the structural change in the business process. in the early age, the scope for internet use was simply for marketing purposes and product awareness. as technology grows, the internet function goes beyond what would imagine in those days. today’s advancement in mobile technology made it possible for automated data collection and analysis that can provide users with accurate information. therefore, technology is a gamechanger that differentiates players in the real estate industry. it is likely to disrupt the traditional business model in the real estate industry. ii.research methods real estate industry is an industry that is highly regulated.essentially, it is a business that mediating the transaction in the form of sale or rental of property asset from one person or organisation to another.nevertheless, it is not a simple transactionprocessinvolving two parties. take an example of a housing transaction, in a highly regulated market, the transaction typically involves more parties other than buyer and seller,and it can becomecomplicated when the transaction value involve millions usually as in commercial real estate transaction. to put into perspective on the global real estate investment value, savills, the global real estate consultant, reported that the volume of capital injected into real estate had increased from $600 billion in 2008 to $1.8 trillion in 2018. it is expected that the asia-pacific countries will dominate most of the future real estate capital investment due to the increase in consumer demand. fig. 1 comparison of global real estate value (source: savills world research). fig. 1 shows the comparison of the transaction value of different investment asset at the end of 2017. it indicates the total value of the global real estate market is about $280 trillion with residential real estate accounts for the largest share of the transaction value. there isaspecific characteristic of the real estate market that makes the value of property asset proportionally higher to that of other investment markets. [7] explain the main characteristics of the real estate market. the characteristics of the market include heterogeneity and fixed location, large unit value, high leverage, long term holding nature, require active management, supply depends on the development cycle, depreciation, government intervention, psychological factor determine purchase decision, high opacity, illiquidity, consist of different property types and controlledsupply. there are specific characteristics that make real estate market inefficient and requiring the involvement of many players to complete a transaction. real estate market is inherently inefficient. comparing to the stock market where price adjustment to new information is relatively instantaneously, it is 44 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry not for the real estate market [8]. the critical characteristic that leads to such generalisation is market opacity. the opacity nature of the real estate market data resultsin most of the criticalmarket informationbeing held by specific players. in the case of malaysia’s real estate market, the information typically held by real estate surveyors and estate agent. this has contributed to significant search time and cost to determine the market value as well as to match buyers and sellers. this is partly the basis that forms the traditional model in the real estate business process. leverage is another part that defines real estate industry,and the role of financial institutions is significant for real estate to work without disruption. considering the large sum of money needed to purchase a property asset, the majority of the investors or homeowner depends on the financial institution for liquidity. prior studies such as [9] suggest that leverage may contribute to improving the property market value. [10] also point out that real estate investors prefer debt to enhance the return on equity. the theoretical explanation for the increase in market value is two folds. as demand for leverage continues, demand for property will also increase if the cost for leverage not exceeding the expected rate of return. since the supply for real estate is constrained due to development lag, it will increase the asset value, at least for a short term.on the return on equity, as shown by [11], within the context of the discounted cash-flow model, the use of leverage will lower the amount equity needed for the real estate investment and increase the size of tax shelter only if the investment’scash-flowshow positive leverage. for investment class real estate, mainly commercial real estate market – office and retail market, the property value is attachedto its ability to produce positive cash-flow for the whole investment holding period. positive cash-flow is directly related to the tenant quality and lease structure. the reason being that rent is the main building block for the income returns in commercial real estate that results from the economic activity of the tenants [12]. therefore, any change in occupant requirements will have an impact on the stability of rental income. [12] further explain, any proposal towards a flexible pattern of space occupation or shorter leases requirements will increase the risk to the real estate investment to all parties involves. as will be explained later in the following section, this is the sector in the real estate industry that will be affected the most as a result of technological advancement. as pointed out in the earlier discussion, the real estate industry involves many parties or players. it has been shown that the market is also complicated. with the advancement in ict as well as mobile technology, all parties will be affected in one way or another. the market players that may be affected by this new development includes the real estate surveyor, estate agent, property and facilities managers, real estate investors, financial institutions, land administrators and legal practitioners. equip with knowledge in advance digital and mobile technology, the traditional conduct of real estate business is on the verge of fierce competition from a new business organization known as proptech. the following section will further clarify the proptech business model and how it may or may not disrupt the traditional model of real estate industry. iii. result and discussion proptech is an acronym that combines property and technologywords. rics define proptech as a ‘term that refers to all aspects of innovation and how this affects the built environment’. this broad definition includes software, hardware, material or manufacturing that is produced by the small start-ups companies. these start-ups companies create innovation using available technology to solve limitations in the real estate industry as what has been discussed in the preceding section. it has been noted that the real estate industry is slow in adopting technology in the business operation. even in present-day, there are services in real estate is manually conducted with minimal assistance from technology. digital technology set the foundation for proptech development. proptech would not be possible without the technological evolution in computing technology. alongside with technological development, data is the foundation of the real estate industry. data is needed to decide on various key issues. data on real estate transaction is needed by property valuer to estimate the most likely the market value of a property that normally a prerequisite by the financial institution prior to approving mortgage financing. performance data is needed by real estate investors to decide on worthiness on real real estate investment opportunities. data also needed to con45 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry duct market analysis as well as to create a property market index forperformance measurement. in the field of property management, rental and lease data is required to negotiate the renewal of the leaseperiod and rental rate.therefore, the real estate industry is data-driven,and the primary concern of the industry is that most of the real estate data is not publicly available [13]. thetechnological evolution in the real estate industry beginsin the same period when the business organisation is being introduced with personal computer and database management system. as pointed by [2], proptech is introduced into the real estate industry in the three waves. the first wave started in the us in the middle of the 1980sas a result of an increase in computing power and database management system.in this period of time, the advancement in computing power, inline with the development in indirect real estate investment as an alternative to direct real estate investment such as debt and assetbacked securitization, reits, and growth in derivative markets has created demand for the quantitative analysis which is the main focus is on the performance measurements real estate investment. due to the development in alternative real estate investment market, it makes data that is previously proprietary owned become public and readily available for public consumption. with increasing in computing power, this has providedthe opportunity for sophisticated quantitative modelling being introduce in property market analysis that previously rather impossible. consequently, the industry being introducedwith valuation software and property and portfolio management start to depends on computer and technology, this has made argus become the leading provider of software and solutions for real estate investment management. proptech in the first wave is characterized by the advancement in computing power, the availability of data and the development of software for the advanced market analysis. icthasadvanced another step in the 1990sdue to the introduction of internet technology such asthe world wide web and e-mail service at the end of the 1990s.in this period,many international real estate firms introducing internet marketing as strategic tools of their corporate strategies [14]. the link between first wave proptech and second wave proptech is the adoption of online advertisement through the internet by the residential sector of the real estate industry. [15] shows that in march 2003,close to 10 per cent of the active online population in the us accessed real estate web page. the record also shows several web pages achieve around 700,000visitseach month.the presence of on-line estate agency service started i uk in which rightmove was established in the year 2000. it is a joint effort of four uk’s top real estate agencies –countrywide, connells, halifax and royal and sun alliance.it then followed by zoopla in 2007 and onthemarket in 2015. while in the us it started with trulia which was launched in 2005 then followed by zillow in 2006 in which acquired trulia for $2.5bn in 2015. following first wave proptech, second proptech produces an unprecedented growth in innovation, investment and entrepreneurial activity in startups. the inherent limitation in the real estate industry provides opportunities to this growth –large, immobile, illiquid and vested interest of the market players that control market information. another contributing factor that leads to this growth is the technological breakthrough. advancement in computing and networking technologies spur innovations such as cloud computing, leaner coding, mobile devices and sensors. the economy of scale helps in lowering cost of consuming mobile technology. this has made it possible for ubiquitous connectivity propelled by broadband, wi-fi and 4gmobile telephony,which in turn increases the internet penetration rate at a global scale. as pointed, second wave proptech sees significant investment into start-ups by the venture capitalist. these investments include venture capitalist such as venture scanner, crunchbase, pitchbook and angelist; accelerators such as 500 startups, y combinator, pilabs and metaprop nyc. cb insights reported that since 2012, proptech start-ups had raised funding close to $6.4 billion covering 817 deals. figure 2: proptech investors by category (source: venture scanner, 2019) 46 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry figure 3: proptech average funding size (source: venture scanner, 2019) figure 2 and 3 shows proptech investors by categories of real estate services and average funding size between 2013 and 2019, respectively. this show that the venture capitalist has a broadened definition of what is being considered as the real estate industry. for example, traditionally home sensor is not being considered as real estate but appropriately categorized as electronic. nevertheless, this particular category – iot home, receive investors attention the most followed by home services. looking at the funding size, the amount of liquidity the goes into proptech start-ups in the increasing trend from 2013 up to the first quarter of 2019. thisindicates two possibilities. first, start-ups with a good idea may not be able to materializewithout any funding and proper guidance by the venture capitalist. second, venture capitalist or accelerators may see that there is use potential behind proptech idea that akin to what has fueled the dot.com bubble.as pointed by [2], by 2017 the evidence has shown that funding for proptech has going mainstream that captured the interest of real estate professionals and traditional real estate firms. example for such organization that have venture into funding proptech start-ups includes hines, lasalle, cushman, british land, cbre and others.proptech second wave is mainly characterized by start-ups innovations and investment into it. this is made possible due to technological advancement that was first introduced in the first wave proptech. in other word, the first wave proptech simply lay out the foundation and the second wave proptech use the tools that have been provided to create innovations to solve the industry problems. while the third wave proptech may not arrive but the technology requires for it has been available recently. the next proptech will be characterized by two technologies – blockchain and artificial intelligence [2]. blockchain is the technology behind the cryptocurrency. many may have heard about bitcoin but never been exposed to the technology that made it possible. [16] make a connection on blockchain to the cryptoeconomy. taking the definition of crypto-economy by [17] as “economic system, which is not defined by geographic location, political structure, or legal system, but which uses cryptographic techniques to constrain behaviour in place of using trusted third parties”.through the definition, the crypto economy is truly a cross border economy. ideally,a cross border transaction could take place with minimal or noconstraint with a payment system that is accepted by all parties seamlessly at no transaction cost. the key concept of blockchain technology lies in the payment system that is recognized globally known as cryptocurrency. prior to the introduction of blockchain technology, the digital payment system was conceptualizedthrough digital cash using a central server to overcome the double-spending problem [18]. however, the concept faces issues of compatibility, anonymity and double-spending prevention that has compromised the idea. the introduction of bitcoin is a result of improvement based on [18],which is the decentralisednature of the payment system that is possible in the blockchain technology. this technology ensures the elimination of the double-spend problem through public-key cryptography. in this public-key cryptography, each agent is assigned a private key and public key shared with other agents in the system.the coins can be transferred to other partiesby the digital signature of hash. the transaction is secure such a waypublic key generated addressescryptographically stored in the blockchain. each coin is assigned with addressand the transaction in the crypto-economy is a transaction of coin from one address to another. an important feature of the blockchain is the public key are not associated with the real-world identity. although all transactions are traceable, it enables47 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry thetransaction to occur without disclosing the agent’s identity. the transactionis considered final once it has been recorded in the blockchain and simultaneously verifiable by many sources [19].it is important to note that bitcoin was a firstdecentralised public ledger,and the success of bitcoin is due to the blockchain innovation. in this sense, blockchain is a platform for the public ledger that is recorded by parties involved in a transaction through the internet. this, in turn,resultsin removing the need for a trusted third party or agent to guarantee a transaction. thus could make a transaction process simple and reduce transaction cost. [20] assert that the application of blockchain ranging from cryptocurrency, financial services, risk management, internet of things, public and social services.thisindicatesthe vast potential of blockchain technology in eliminating the third party in any transaction process that is usuallypart of the process in the real estate industry. another technology that will become the core foundation for the third wave proptech is artificial intelligence (ai). ai is a technology known for its association in a computer science discipline and has become a significant technology in supporting social life and economic activities. ai refers to the ability of a computer system to perform the intelligent function of the human brain.[21] pointed, recent advances in ai arecontributedby the significant improvement in the processing capability of computer and the production of data at a global scale by sensing devices, social media and web application also contributed to the rise of ai.these massive amounts of data can then be manipulated using various machineand deeplearning techniques to conduct analytical analysis. the essence of ai is that it allowsfor automateddecision making based on a given input(s). [22] noted that most ai system that is currently being developedis a form of an expert system that relies on a database of knowledge to make a decision. ai has many real-world applications in various discipline such as medical, engineering, finance and many others. in the real estate industry many studies that observe the ai application focus on the automated determination of property value. the main reason for such emergence is due to a critic on the subjectivity nature of manual valuation process. since the real estate industry is a data-intensive industry, it seems that the ai has its specific potential in the industry and may some days disrupt some of the profession. as human are more connected than ever,andthis has ultimately changed the nature of work and lifestyle. a new business process is now created that demand flexibility.numerous studies investigate the impact of technology has on various sectors in the real estate industry.based on the prior discussion, is it really proptech has a disruptive potential to the industry or is just a tool to complement the business process to make the industry much more flexible and efficient. this is the main question that the industry player needs to answer to determine the potential of proptech start-ups to disrupt the industry. as pointed earlier, proptech is characterized by start-ups that use present technology to create innovation to solve an industry problem. nevertheless, most of the studies look into the effect of technology on the industry. for example, [23] study the impact that ict has on the commercial property based on what it is believedas “death of real estate” and “productivity means job loss” within the context of the office property market as a result of technological change. his studyemphasises that real estate “has not and will not disappear” and concludes that the ict will continue to create a shiftand impose transformation but subtly and will likely to change the needs and preferences of the industrial players cause by change in the occupant needs. in another study by [13] investigatethe interaction between industry structure and ict on the residential sector of the real estate industry. based on structuration theory, the research shows that the pervasive use of ict in the business process has concurrently altered the industry structure through reducing estate agents control over information while reinforcing the present contract-based structures. anotherimportant pointthat affectsprofessionals in the us real estate industry isthe pervasiveness of the internet has resulted to the eroding position of the real estate professionals due to their exclusive excess to the multiple listing service (mls). the listing of such information on the web provides access to everyone thus reducing the need for agent service and interpretation. however, the finding also shows that agent do have control on other valuable resourceand their role can now focus on the process or transaction supporter. another study by [24]looks at the impact of internet usage on the real estate brokerage firm fi48 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry nancial performance. their research is motivated by the erosion of the estate agent position as a result of mls become publicly available that they hypothesisethis will have a negative impact on the firm financial performance. the finding, however,shows that it is not the case. it shows that the use of the internet, in fact, improve the firm financial performance indicating the role of ict is, in fact, to complement the business process rather than disrupting. this finding is further reinforced through a study by [25] that conclude in today business environment that uses ict pervasively; real estate professional is still required to act as an intermediary between seller and buyer. the study suggests two key reasons for such findings, first relates to the time-consuming information searchand the assistance provided by the agent onthe considerably time-consuming transaction process. in the investment sector of real estate industry, [26] coined the concept “automated landlord” to highlight the waydigital technologies improvethe investors’ capabilities as well as reshape the realities of what it means to be a renter. the study arguedthe ict act as an enabler for investors in the housing market to aggregate the ownership of resources, extract income flow, and convey these flows to the market securely. these can be done through the management of tenant and properties that is increasingly governed by smartphones, digital platforms and apps, and the data and analytics gather and enable by these devices and infrastructures. in the end, the study concludes that full automation to take the investors role is unlikely to take place due to the peculiaritiesof the tenant and the properties. some example given as for tenant some may insist to made payment physically rather than through an onlinesystem or would speak to human over the phone instead of the chatbot. while for properties, some instant and urgent maintenance require human intervention instead of automatically repaired. on the retail sector or the industry, e-commercedoes have a significant impact on the demand on retail space as well asvalue implications to the commercial property owner. [26] try to clarify the linkage between e-commerce and the demand for retail space in china real estate market. the finding suggests that between 2009 to 2013, there was a pattern of slowing growth in retail property sales and accelerating vacancy rate of the retail space is associated with the dramatic growthin e-commerce sales. however, the study asserts that due to the respective advantage and disadvantage link to the online and offline shopping, physical retail stores will not be completely overshadowed by the online shopping portal. a study by [27] examinesthe impact of technology and e-commerce has on traditional retail sales, commercial property values and percentage rents. the paper argued that e-commerce activity occurs at the physical retail location but recorded as online salesthat result to the loss of on-site sales information, reducing tabulation of gross sale per square foot recorded in the property owners account and potential loss of percentage rents.the finding, based on those surveyed, most retail owners do not include the online sales provision in the lease contract,and this has value implications to the owners. the study also suggeststhat such provision must be included in the lease contract to capture some percentage of e-commerce sales. in a much recent study by [28], suggest that although internet sales are in increasing pattern in the netherlands, the same is also true for sales inthe supermarket. usinga qualitative approach, the study interview real estate and e-commerce manager of eight dutch supermarket chain. the study concludes that the effect of online sales on physical sales is rather minimal. nevertheless, traditional supermarket chains continue their online strategy and this is evident through the launch of online initiatives. the purpose of pursuing such a strategy is mainly due to defensive motives in preventing potential loss in sales to the competitors. iv. conclusion three main themeshavebeen explored in this paper on the impact of technology onthe real estate industry. these are the possibleimpact of ict and emerging digital technology, the indirect impact of ict to real estate industry as a result of a change in other industry structure due to ictthat alter demand to real estate industry and finally the potential future technology that may change the structure of the industry such as blockchain and ai. as has been highlighted, proptech comes in three waves and based on prior studies; it may not completely disrupt the real estate industry due to the natural characteristics of the industry. however, the innovation created by the proptech start-ups may act as a complement to the 49 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry current business process. this may helpto solvespecific issues that have been associated with the industry and make the industry more efficient and productive. the main purpose of this paper is to provide a brief overview of the impact of digital technology on the real estate industry based on prior research. a more comprehensive study is required across different real estate market on a global scale. real estate market is generally influenced by the local market condition in which the property is located. therefore, there will be no one size fits all when evaluating the impact that digital technology has on the global real estate industry. due to different legal structure impose in various real estate market, the outcome may differ from one country to another. references [1] shaw, j., “platform real estate: theory and practice of new urban real estate markets,” urban geography [2] baum, a., “proptech3 – the future of real estate” [3] kpmg. bridging the gap: how real estate sector can engage with proptech to bring the built and digital environments together. tech. rep. 2017. [4] christensen cm, bower jl. customer power, strategic investment, and the failure of leading firms. strategic management journal. 1996 mar;17(3):197218. [5] christensen cm. the innovator's dilemma: when new technologies cause great firms to fail. harvard business review press; 2013 oct 22. [6] christensen cm, rosenbloom rs. explaining the attacker's advantage: technological paradigms, organizational dynamics, and the value network. research policy. 1995 mar 1;24(2):233-57. [7] hoesli m, macgregor bd. property investment: principles and practice of portfolio management. routledge; 2000. [8] fu y, ng lk. market efficiency and return statistics: evidence from real estate and stock markets using a present（value approach. real estate economics. 2001;29(2):227-50. [9] mcdonald jf. optimal leverage in real estate investment. the journal of real estate finance and economics. 1999 mar 1;18(2):239-52. [10] brueggeman wb, fisher jd. real estate finance and investments. new york, ny: mcgrawhill irwin; 2011. [11] cannaday re, yang tt. optimal leverage strategy: capital structure in real estate investments. the journal of real estate finance and economics. 1996 nov 1;13(3):263-71. [12] lizieri cm. occupier requirements in commercial real estate markets. urban studies. 2003 may;40(5-6):1151-69. [13] crowston k, sawyer s, wigand r. investigating the interplay between structure and information and communications technology in the real estate industry. information technology & people. 2001 jun 1;14(2):163-83 [14] kummerow m, lun jc. information and communication technology in the real estate industry: productivity, industry structure and market efficiency. telecommunications policy. 2005 mar 1;29(2-3):173-90. [15] kim g, heineman m. more than 12 million surfers turn to the web for home buying and rental research. new york: nielsen/net ratings. 2003. [16] pilkington m. 11 blockchain technology: principles and applications. research handbook on digital transformation. 2016 sep 30, 225. [17] babbitt d, dietz j. crypto-economic design: a proposed agent-based modelling effort. swarm fest 2014: 18th annual meeting on agent-based modelling & simulation. university of notre dame. usa. june 29–july 1. [18] chaum d. blind signatures for untraceable payments. inadvances in cryptology 1983 (pp. 199203). springer, boston, ma. [19] dwyer gp. the economics of bitcoin and similar private digital currencies. journal of financial stability. 2015 apr 1;17:81-91. [20] zheng z, xie s, dai hn, chen x, wang h. blockchain challenges and opportunities: a survey. international journal of web and grid services. 2018;14(4):352-75. [21] koch m. artificial intelligence is becoming natural. cell. 2018 apr 19;173(3):533. [22] salah k, rehman mh, nizamuddin n, alfuqaha a. blockchain for ai: review and open research challenges. ieee access. 2019 jan 1;7:1012749. [23] dixon t. the impact of information and communications technology on commercial real estate in the new economy. journal of property investment & 50 sinergi, volume 9 number 2 september 2019 mohd lizam digital technology and the real estate industry finance. 2005 dec 1;23(6):480-93 [24] benjamin jd, chinloy p, jud gd, winkler dt. technology and real estate brokerage firm financial performance. the journal of real estate research. 2005 jan 1;27(4):409-26. [25] larceneux f, lefebvre t, simon a. what added value do estate agents offer compared to fsbo transactions? explanation from a perceived advantages model. journal of housing economics. 2015 sep 1;29:72-82. [26] zhang d, zhu p, ye y. the effects of e-commerce on the demand for commercial real estate. cities. 2016 jan 1;51:106-20. [27] baen j. the effects of technology on retail sales, commercial property values and percentage rents. journal of real estate portfolio management. 2000 jan 1;6(2):185-201. [28] gorczynski t, kooijman d. the real estate effects of e-commerce for supermarkets in the netherlands. the international review of retail, distribution and consumer research. 2015 aug 8;25(4):379406. 12 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 customer benchmarking analysis on brand image formation in brand nike rhegie nastiti ayungga1 airlangga university surabaya, indonesia e-mail : gierhegie@gmail.com submit : 16th july 2018 , revised : 5th september 2018 , accepted : 6th september 2018 abstract this study aims to analyze customer benchmarking through the effect of brand identity to the formation of brand image on the nike brand through brand awareness. samples were selected from respondents from athletes athletics, aquatic, football, basketball, and coaches in each branch, as well as those who have an awareness exercise encountered by researchers in the area of gor surabaya koni and sports clubs in east java. data collection techniques using primary data by distributing questionnaires to the respondents. data were analyzed using spss version 23.0 with path analysis. the results of this study indicate that the brand identity and brand awareness proven effect on simultaneously on the brand image of the brand nike. when viewed from the direct influence, brand identity diclared effect on brand awareness, and brand awareness is evident influence on brand image. meanwhile, if viewed from the indirect effect, stated that the brand identity can not affect the brand image through brand awareness. limitations in this research is the study population used is limited to several sports clubs in east java is the target population. keywords: brand identity, brand awareness, brand image, customer benchmarking, nike i. introduction along with advances in technology, the business world is now experiencing rapid change. because the company must adapt to the tastes, needs and purchasing power of consumers today. according to kotler and armstrong (2012: 135) there are various factors that can influence the consumer before deciding to choose one of the products broadly sourced to four factors, namely the cultural, social factors, personal factors and psychological factors. the size of the global athletic footwear market worth usd 64.30 billion in 2017 (grand view research, april 2018). it can be seen in the following table: source: global industry analysis inc. is estimated to continue to increase above 5% from 2018 to 2025. with the growing enthusiasm and awareness about the health benefits of exercise and fitness activities, as well as the consumer’s income level meningkanya that can be spent is expected to become a major trend that trigger market growth. peoples today are becoming increasingly aware of the need for a healthy physical, so that the consciousness of each individual exercise to be increased. awareness of the benefits of sport activities can help ensure good health and reduce the risk of chronic disorders such as depression, cardiovascular disease, and diabetes. it is characterized by the development of sports centers which can be used both in housing, shopping centers and certain other places. with their consumer behavior like that, company as a manufacturer of sports shoes, take advantage of favorable conditions through competitive competition with a wide range of selection of shoes available in the market. some big companies competing, such as nike, adidas, 13rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 reebok and others. nike, as one of the biggest sports shoe manufacturer in the world, understands the importance of usability shoes in sporting activities, good function that is devoted to the athletic, aquatic, as well as to individuals who have an awareness of the importance of exercise. nike was founded by phil knight, a middle-distance runner at the same time accounting student at the university of oregon coach bill bowerman phil together. his love of sports to make them understand that sports shoes become very major thing in the world of sport. for comfort and security is indispensable in the exercise. nike name was formed in 1971, which means after the greek goddess of victory. not out of the brand name that is memorable, but the logo has an important role in giving the sense of a product at a particular company. the brand identity is certainly worth noting because it will be the basis of public opinion formers. according to aaker et al., (2009) brand identity (brand identity) is a unique brand associations that show promise to consumers. brand identity could also be the basis of further brand strategy so as to become a brand differentiator with competitors. the brand identity of products nike sports shoes and clothes were easily identifiable because it has a distinctive corporate logo with the slogan “just do it”. initially in 1987, nike created various types of shoes for different types of sports activities, such as athletics, aquatic, soccer, basketball, tennis, and more. comfort, quality, and a variety of models to be a priority at present by nike. along with the increasing market demand, then nike issued a wide range of footwear products with the model, quality, and a variety of attractive colors. besides easily identified, nike shoe products have advantages compared to other products shoe. a material used in nike shoes and lunarlitefoam flyware form. this material has a function to reduce the burden of shoes so that these types of shoes produced will be light and make it convenient to consumers. nike footwear products shows that are considered by consumers to buy the product is the convenience in use. nike became an icon of durability pilhan consumers because the product is good and consumers are satisfied to use it (herman, 2011). consumers nike has its own assessment of the nike product, where consumers assume nike as a brand that is reliable and has a very high performance, good quality makes the nike growing rapidly in indonesia. although the price is relatively expensive nike products in various parts of the world due to nike shoes are manufactured using very high quality material and nike has a wide range of technology contained in each product shoes, for example lunarlitefoam technology which serves to increase comfort while wearing shoes. the design is so elegant make nike shoes look fancy so it can be said that the high price of this nike shoe products directly proportional to what is obtained by a consumer buying. consumers think that by buying nike products are expensive, fancy, popular, and latest as the development of lifestyle (herman, 2011). in the end, the brand image plays a role on consumer purchasing decisions. brand image is the public perception of the company or its products. effective image will affect the three cases, the product characteristics and proposed establishing values, and then convey the character in a different way so as not to be confused with the character of a competitor, then give emotional strength that is more than just a mental image. in order to function, the images must be submitted through any means of communication available and contact the brand. the reputation of the company nike no doubt. nike has built its brand image, one of them by sponsoring world sporting athletes such as tiger woods world class players, leborn james, kobe bryant and michael jordan the basketball player from the united states to footballer cristiano ronaldo of real madrid. with this nike wants to remind consumers that figure as they are the one who will they get when buying nike products. in addition, nike also sponsors the indonesian national team. this is a step to build a very strong image in indonesia. affection of the peoples of indonesia on the indonesia national team will build a good brand image in the eyes of the peoples of indonesia. nike company choose its main consumer target athletes. this is due to the company nike judge that an athlete is someone who is proficient in sports and other forms of physical exercise which is required in various sports. in fact, an athlete must have the physical ability higher than average, especially athletes who often follow the race or match. therefore the athletes will be put quality afforded by 14 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 a brand that is used that can later be reflected in his mind. researchers expect the study carried out can be used as a material consideration and contribute ideas, especially for companies in improving customer benchmarking to the brand image through the establishment of brand awareness. this may be the dominant influence on the buying decision a good product. theoretically, these factors can be accounted for truth, but needs to be proven empirically. based on the description above explanation, in this study will be discussed about the influence on the formation of brand identity brand image on the nike brand through brand awareness is ultimately formed a perception in the minds of consumers who called the brand image of the nike brand in the footwear market. the goal is that finding empirical evidence on the effect of brand identity on the formation of the brand nike brand awareness, and find empirical evidence on the effect of brand image on brand nike. ii. theoretical and development hypothesis in research conducted by shenda aprilia christanti (2017) which saw the influence of variables brand identity, product quality, brand ambassador on consumer purchasing decisions back to cosmetic products in surakarta conducted by random sampling of 100 respondents. the results show a positive influence on the variable quality of the product to the consumer purchasing decision back to cosmetic products in surakarta. it is inversely proportional to the variable of brand identity and brand ambassadors who do not have an influence on consumer purchase decisions back to cosmetic products in surakarta. elbedweihyet al., (2016) in his research who want to see the customer relationship established by the rules of interest in the brand and the consumerbrand identification. this study was conducted using questionnaires as many as 293 respondents in one of the malls in the uk in two categories of products, namely mobile phones and televisions. the results showed that the identification of the brand both in itself and mass consumption can be set by the company. then why customers are interested in these products is not with the others because of the relationship customer-to-customer strongly to consumer brand identification. aditya hendrajati (2016) conducted a study to see the effect on brand loyalty brand identity through brand image and brand trust yamaha. using a questionnaire of 125 respondents by purposive sampling to yogyakarta peoples owning and using yamaha motorcycles. the results obtained showed that the brand identity positive effect on the brand image of yamaha motorcycles. while brand identity and brand image positively affects brand trust yamaha motorcycle. similarly, the brand image and brand trust has a positive effect on brand loyalty yamaha motorcycle. research sasmita et al., (2015) examines the effect of brand association, brand loyalty, brand awareness and brand image on brand equity among young consumers. analysis was conducted on 200 young consumers who were students at the state university in malaysia through spss 21.0. the results showed that through multiple regression authenticates the brand awareness. a dominant influence on brand equity among young consumers because the young consumer advisory and awareness of a product or a particular brand of social media. they can clearly recognize a particular brand or product compared with competitors’ products or brands. as well as know how to look at the characteristics through the social media. wiratama and vault (2012) examined the link between the variables of product, price and brand image perceptions on purchase decisions of nike brand sports shoes in semarang. this study was conducted on 100 users of nike brand sports shoes in semarang obtained using accidential sampling techniques. the results showed that the variables of product, price perception, and brand image has a positive and significant impact on purchasing decisions of nike brand sports shoes. benchmarking benchmarking is a management technique for measuring performance or work, by comparing them with parameters or the size of the best known in the market and are usually indicated by market leader companies. customer benchmarking is an understanding of consumers and customers of the company compared to its peers. how do the views of consumers and the overall customer: product quality, price, customer service, delivery speed, and delivery 15rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 reliability. the higher level of customer satisfaction or customer in this area will make the company’s position in the eyes of the consumer or customer is getting stronger. brand the american marketing association (kotler & keller 2012) defines a brand as a name, sign, symbol, design, or a combination thereof, are used to identify products or services of one seller or group of sellers to distinguish it from competitors. based on the theoretical basis of the research hypothesis structured as follows: in establishing a brand image in the consumer’s mind takes several steps starting from the formation of brand identity by the manufacturer. in the early stages manufacturers establish brand identity as a form of marketing strategy in order to create brand awareness in consumers. brand awareness supposedly formed by the variable of brand identity, where the brand identity that has been set by the manufacturer nike is considered will make consumers aware of the nike brand. h1: brand identity affect the establishment of brand awareness brand image as the output variable is the end result of the strategy adopted by the manufacturer in brand building. through brand awareness, consumers will be interested in trying, so that the resulting brand image. h2: brand awareness affect the establishment of brand image brand identity allegedly a significant influence on the formation of brand image on brand nike. the author assumes that the brand identity specified by the manufacturer nike would immediately form an image in the minds of consumers to the nike. h3: brand identity affect the establishment of brand image iii. research methodology operational definition and measurement data independent variables the independent variable or independent variable in this study is the brand identity, where the brand identity established by the company was considered not influenced by other variables. these variables are denoted by an x. brand identity by wheeler (2013) is a factor that can be seen and felt. brand identity is divided into six dimensions, namely: physique, personality, culture, realtionship, reflection, self-image (kapferer, 2004) • physique is a feature that will soon be formed in consumers’ minds when thinking of a brand • personality is a depiction of a brand in the minds of consumers • culture is a set of values that became the inspiration of a brand • relationship a good relationship with the customers who tried guarded by each company in order to stay together with his brand • reflection a description of how consumers themselves when they want to be seen by other peoples while using the brand • self-image an internal reflection of target consumers intervening variable according sugiyono (2012) intervening variables are variables that affect the relationship between the independent variables and the dependent variable becomes an indirect relationship and can be observed and measured. in this study the intervening variables used are brand awareness symbolized by z. according to kotler and keller (2012) brand awareness is the ability of a consumer to identify our brand in a variety of different conditions that reflect the capacity and condition of the brand. brand awareness has several dimensions: brand recognition, brand recall, top of mind. (aaker and mcloughlin, 2009) • brand recognition can occur when consumers are given the names of a particular brand of product class, then the consumer can identify a brand and annotate 16 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 • brand recall can occur when consumers can immediately think of a brand in a market category • top of mind is the first brand that comes to mind in the minds of consumers in a particular product class dependent variables the dependent variable or dependent variable in this study is the brand image, where the brand image in the minds of consumers formed by the variable brand identity that is reinforced by the variable brand awareness that an intervening variable. the dependent variable is denoted by y, according to kotler and keller (2012) brand image is the perception and trust built by consumers as a reflection of the association in the minds of consumers. brand image is how to vote in the minds of consumers to the brand. there are several dimensions of brand image, namely: • mystery associated with the cognitive aspects of the brand image • sensuality formed from sight, sound, touch and taste • intimacy which is the emotional aspects of brand image resulting in feelings of consumers interact with a brand measurement data the questionnaire was designed in this study addressed to responder that every athlete athletics, aquatic, football, basketball, and coaches in each branch, as well as those who have an awareness exercise encountered by researchers in the area of gor surabaya koni and sports clubs in east java. using a likert scale of 1 to 5 in the assessment. starting from point (1) to “strongly disagree” to point (5) to “strongly agree” that is used to operate the construction of the research included in this study. the independent variable in this study is brand identity, while the dependent variable is the brand image, through the intervening variable that is brand awareness. data collection the data used in this study are primary data through data collection techniques using random sampling method, by spreading questionnaires to respondents, each athlete athletics, aquatic, football, basketball, and coaches in each branch, as well as those who have an awareness exercise encountered by researchers in the area of gor surabaya koni and sports clubs in east java, 250 respondents were selected. the independent variable in this study is the brand identity. while the dependent variable is the brand image, through the intervening variable that is brand awareness. based on the description above, it can be structured framework for relations between variables peneletian described as follows : the method of data analysis is a method used to process the results of research in order to obtain a conclusion. analysts techniques used in measuring the contribution or influence of independent variables on the dependent variable, either influence directly, or indirectly through the influence of the relationship between the independent variables using path analysis. data analysis technique the method of data analysis is a method used to process the results of research in order to obtain a conclusion. analysts technique used in this research is quantitative analysis with analysis tools such as path analysis. 1. validity and reliability the validity and reliability were used in this study are described as follows: a. validity test test validity can be achieved if there is a match between the parts of the instrument with the instrument as a whole piece. part of the validity test used in this study is through the analysis of grains, in which to test each item the total score is valid whether an item can be determined by comparing the number pearson product moment correlation (r count) at the level of 0.05 the critical value , the research instrument was considered valid if 17rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 valid where the correlation value is greater than 0.3 b. reliability test reliability test is intended to measure the level of consistency of the instruments used. measurement reliability using methods cronbatch’s alpha using a numerical index called the coefficient. instruments used in a variable is said to be reliable (reliable) if it has more alpha coefficient of 0.60 2. classic assumption test the use of regression analysis methods in testing the first hypothesis tested if the model meets classic asaumsi or not consisting of: a. heteroskidastity test heteroscedasticity test aims to test whether the regression model occurred inequality variants of residuals of the observations to other observations. if the residual variance from one observation to another observation fixed, then this is called homoskedastisitas and if different is called heteroskidastity. the detection is done by using a test park. done by regressing the residual value (lnei2) with each independent variable. if the value of t <t table regression equation is not statistically significant heteroscedasticity then there are no symptoms. b. normality test this test aims to determine whether in a regression model, the value of the regression residuals have a normal distribution. a good regression model is normal or nearly normal distribution. normality test will be conducted by kolmogorov smirnov. if the significance value> 0.05, then the normal distribution of data (ghozali, 2010: 147). c. autocorrelation test. autocorrelation test is used to determine whether the linear regression model occurred correlation between bullies error in period t with mistakes in period t-1 (previous). in practical terms, it can be said that there is no residual value correlated with one another. the detection is done by using the durbin-watson test. according ghozali (2010: 196) determining the presence or absence of autocorrelation can be seen as follows: a) there is no positive autocorrelation if 0 <d v d b) no negative autocorrelation if 4 dl <d <4 c) there is no positive or negative autocorrelation if du <d <4 du 3. path analysis ordinary path analysis or better known as path analysis is used to determine the direct dependency relationships between a set of variables. path analysis is a model similar to the model of multiple regression analysis, factor analysis, canonical correlation analysis, discriminant analysis and multivariate analysis group other more common as anova analysis, manova, anacova.testing of this study also used path analysis (path analysis) which is an extension of the multiple linear regression analysis. both models use equations regersi analysis simple and multiple regression analysis was conducted to determine the strength of the relationship of the independent variables (independent) to the mediating variables (intervening) danjuga strength of the relationship of the independent variables (indenpendent) on the dependent variable (dependent). the steps in the proof test of mediation (intervening) as follows: 1. regression independent mediator terhdapa 2. independent of the dependent 3. independent and mediator to the dependent after looking at the requirements for determining the influence of mediation statistically, to determine the influence of direct, indirect and total of each variable, required the calculation of the value of the standardized beta coefficient coefficient. iv. data analysis and discussion results profile of respondents identity of respondents in this study include sex, age, sport, work and the last education. based on the above table shows that the respondents consisted of 145 (58%) and 105 female respondents (42%) of male respondents. respondents aged <20 years 18 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 based on the above table shows that the respondents consisted of 145 (58%) and 105 female respondents (42%) of male respondents. respondents aged <20 years at 61 (24.4%) of peoples, 20-30 years amounted to 171 (68.4%) and the 31-40 years by 18 (7.2%). a total of 111 (44.4%) claimed to athletes, as many as 24 peopless (9.6%) claiming to be a former athlete, 6 peopless (2.4%) as a coach and as many as 109 peopless (43.6%) claimed to be someone who conscious exercise. aquatic sports as many as 97 peopless (38.8%), but as many as 61 peopless (24.4%) chose athletics, choose basketball as many as 45 peopless (18%) and as many as 47 peopless (18.8%) chose football. correspondent table correspondent table 19rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 based on the above table shows that the respondents consisted of 27 peoples (10.4%) worked as an athlete / former professional athlete and as many as 1 (0.4%) for the work of doctors, professors, teachers, the unemployed and civil servants. a total of 3 (1.2%) as housewives, employees as many as 59 peoples (23.6%), as many as 104 students (41.6%) and students were 17 (6.8%). a total of 21 peopless (8.4%) as a professional coach and as many as 14 peoples (5.6%) as self-employed. these respondents by last education diploma by 12 peopless (4.8%), masters and junior by 2 peoples (0.8%) as well as s3 and smp by 3 peopless (1.2%). a total of 1 (0.4%) admitted last educated kindergarten and s2, as many as 96 peoples (38.4%) as a scholar, as many as 12 peoples (4.8%) as primary schools and 117 peoples (46.8%) as sma / equal. future use of nike based on the above table shows that as many as 97 peoples (38.8%) wear nike <1 month ago, 40 peoples (16%) wear nike for 1 month and 113 peoples (45.2%) said it has put on the nike of 2 last month. 1. validity and reliability test results questionnaire testing research instruments in terms of both its validity and reliabelitasnya of the 250 respondents found that the results of the research instruments used are valid where the probability for the correlation value is less than 0.5 and a coefficient of reliability (cronbach alpha) greater than 0.6. for more details can be seen in the following table: a) validity and reliability variables brand identity (x) validity and reliability testing results x validity and reliability testing results z based on data from the above table shows all items brand identity questions for variables having a probability value less than 0.05 and has a 0743 alpha coefficient greater than 0.6. thus, it means that the item question for brand identity variable (x) is valid and reliable for further testing. b) validity and reliability variable brand awareness (z) 20 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 validity and reliability testing results y normality test results based on data from the above table shows all the items of questions for variables proof brand image (y) has a probability value less than 0.05 and has a coefficient of 0.824 alpha greater than 0.6. thus meaning that the question items for variable brand image (y) is valid and reliable for further testing. 2. classical assumption test results a) normality test normality test in this study was conducted to determine whether in a regression model, the value of the regression residuals have a normal distribution. normality test will be conducted by kolmogorov smirnov. if the significance value > 0.05, then the normal distribution of data. the normality test results in this study are as follows: based on the presentation of data in the table above, it can be seen that the value of normality showed with asymp. sig. (2-tailed) have been increased which becomes 0.200> 0.05. thus, with the acquisition of this outcome data in this study can already be stated that the research data had normal distribution. this statement is based on the acquisition value of kolmogorov smirnov is above or greater than 0.05. b) heterokedastisitas test heterokedastisitas test was conducted to test whether the regression model occurred inequality variants of residuals of the observations to other observations. to determine the presence or absence of symptoms heteroskedostisitas can use uj park. if the value of t <t table and regression equation is not statistically significant heteroscedasticity then there are no symptoms. 21rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 testing results heterokedastisitas autocorrelation testing results brand identity influencing brand awareness variable path analysis test results brand identity influenced brand awareness based on the above table it is known that the value of t <t table three variables: brand identity with t value of -0751 <1.6525 and brand awareness with t value of 1,071 <1.625 as well as the second independent variable is not significant so that it can be concluded that the regression model heteroskedostisitas symptom free. c) autocorrelation test autocorrelation test is performed to determine whether the linear regression model occurred correlation between bullies error in period t with an error in period t-1 (previous). the durbin watson values obtained are as follows: based on the above data, it can be seen durbin watson value obtained amounted to 1,822. the test is said to be free of autocorrelation if it is in the range du to 4 du. determining the value du is obtained from table durbin watson. at the level of 0.05 with a large observation error values obtained du amounted to 1.7156. so that free range autocorrelation is 1.7156 up to 2.2844. whereas in the calculation, the value of 1.822 which means the value of durbin watson still in the range of free area autocorrelation. 3. evidence hypothesis to determine whether the presence or absence of direct influence of independent variables to intervening and intervening against the dependent variable, and the indirect influence of independent variables on the dependent through intervening, test path analysis (path analysis) using spss 23.0. here are the test results of path analysis: based on the above table, the magnitude of the numbers r square (r2) is 0.277, which means that the effect of brand identity to brand awareness is 27.7%, while the remaining 72.3% influenced by other factors. in other words, the variability brand awareness can be explained by using the variable brand identity was 27.7%. 22 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 based on the above table varaibel brand identity is known to significantly affect brand awareness directly with sig 0.000 (<0.05) and the value t count> t-table (9.746> 1.98). next is a look at the influence of variables brand identity to brand image and brand awareness of the brand image that is presented in the table below: based on the above table it can be seen that the effect of brand identity, brand awareness to brand image simultaneously at .572 or variability brand image that can be explained by using variable brand identity and brand awareness was 57.2% and the remainder caused by other variables outside the model. based on the above table it can be seen that the value of f obtained in this study was 165 073 with significance level was 0.000. as for the value of f table obtained amounted to 3,884. so it can be seen that in this study fhitung> ftabel and sig smaller than the probability value of 0.05, or a value 0.000 <0.05, which means that in this study proved influential independent variables simultaneously on the dependent variable. according to the table above, are known to partial effect of variable brand identity by looking at the value t count> t-table (7.385> 1.652) and sig 0.000 (<0.005), then there is a direct influence of the brand identity of the brand image. there is the influence of brand awareness of the brand image it is evident based on the value t count> t-table (10.230> 1.652) and sig 0.000 (<0.05). a. direct impact to calculate the direct effect, use the following formula: 1) variables influence brand identity to brand awareness. x z = 0,526 2) variables influence brand awareness to brand image. z y = 0501 3) variables influence brand identity to brand image. x z = 0.361 brand identity, brand awareness affect brand image simultaneous (r2) path analysis test results variable path analysis brand identity, brand awareness influencing brand image f test results 23rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 figure 4.1 path analysis b. indirect influence variables influence on brand image brand identity through brand awareness: x z y = (0.526 x 0.501) = 0.264 c. effect of total the influence of the variable quality of the message of the level of preference by the level of knowledge: x z y = (0.526 + 0.501) = 1.027 based on the calculation above is known that direct pengeruh value of 0,361 and the indirect effect of 0.264, which means that the value of the indirect effect is smaller than the value of the direct effect, these results indicate that the brand identity can not affect the brand image, through brand awareness. influence on brand image brand identity through brand awareness above the track analysis can be seen in the image below: based on the above test results of path analysis, proving that it takes a medium of communication to establish a brand image in the minds of consumers starting from brand idenitity established by the manufacturer. jill ross rod harradine (2011) “fashion value brands: the relationship between identity and image”, has been conducting research relationship between brand identity with the brand image in the fashion industry. object using the tesco brand, that brand identity is proven positive effect on the brand image in the fashion industry. more information can be discussed for brand identity variables affect the brand image through brand awareness on brand nike. this is due to the brand identity will help the stability of relationships that have been built between the brand and the customer. this is reflected 24 rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 in the questionnaire are given from numbers 1 through 6 in test physique, personality, culture, realtionship, reflection, self-image is shown on the nike brand. the brand identity may be perceived differently by each person depend on the perception that their views on what they feel on the image of the company. therefore, the better the company’s brand identity created will better the brand image in the eyes of consumers. second, brand awareness showing the impact on the brand image of the nike brand. for brand awareness refers to how a particular brand or product appearance, so that consumers can quickly recall a symbol or logo specific products or brands that appear on social media. it can be seen from the questionnaire in the measurement of brand recognition that is reflected from the questionnaire from number 7 to 9. while brand recall is reflected from the questionnaire from number 10 to 12. as well as top-of-mind that is reflected from the questionnaire from number 13 to 14. these findings are consistent with previous research that pouromid and iranzadeh (2012) where the brand more inclined to be considered or selected based on consumer brand awareness. third, the brand image of this research was influenced by the brand identity through brand awareness of consumers. because consumers form brand perception through the information they get. then the consumer can determine whether to use the brand based on the information and experience that has been obtained while using the brand. for brand image that seeks shown by the company has its own personality and different from other competing products or brands. mystery related to cognitive aspects in brand image. can be seen from the questionnaire from number 15 to 17. sensuality form of sight and touch are perceived by consumers nike reflected in the questionnaire from number 18 to 20. v. conclusion this study investigates customer benchmarking through the effect of brand identity to the formation of brand image on the nike brand through brand awareness and ultimately formed a perception in the minds of consumers who called the brand image of the nike brand in the footwear market. results indicate that: 1. brand identity and brand awareness proven effect on simultaneously on the brand image. 2. based on the direct influence, brand identity expressed effect on brand awareness, brand awareness while proven effect on the brand image. 3. based on the indirect effect stated that the brand identity can not affect the brand image through brand awareness. vi. implications the practical implication of this study provide feedback on the effect of brand identity, brand awareness and brand image in the consumer primarily for the athletes and coaches in several sports, and peoples who have an awareness of the importance of exercise performed in this study will help marketers and practical to formulate strategies to improve their brand image to gain an advantage over the competition and business continuity, particularly in the consumer market among athletes in those sports. vii. limitations this study has limitations, the results of this study onlylimited to several sports clubs in east java is the target population, and thus only reflects an outcome for east java alone. as well as in this study using only one independent variable, namely brand identity and an intervening variable that is brand awareness, while there are variables that can be used to explain the variable of brand image. viii. suggestion research that might be done in the future based on the limitations and the results of this study are to add other variables in addition to brand awareness and brand identity that can affect the formation of brand image. in order to explain the relevance of brand image on a productbrand. 25rhegie nastiti ayungga customer benchmarking analysis on brand image formation in brand nike sinergi, volume 8 number 2 september 2018 references [1] aaker, david. a., mcloughin, damien. strategic market management: global perspectives. united kingdom: john wiley. 2009. [2] christanti, sa. analysis of effect of brand identity, product quality and brand ambassadors repurchase decision against consumer cosmetic products in surakarta. (doctoral dissertation, university of muhammadiyah surakarta). 2017. [3] elbedweihy, am, jayawardhena, c., elsharnouby, mh, & elsharnouby, th. customer relationship building: the role of brand and consumer-brand attractiveness identification. journal of business research, 2016, vol 69 (8), 2901-2910. [4] hendrajati, a. influence of brand identity brand loyalty through brand image and brand trust yamaha. (doctoral dissertation, faculty of economics). 2016. [5] jill ross rod harradine. fashion value brands: the relationship between identity and image. journal of fashion marketing and management: an international journal, 2011, vol. 15 iss 3 pp. 306-325. [6] jn kapferer.the new strategic brand management. london: kogan page. 2004. [7] kertajaya, hermawan. new wave marketing. jakarta. gramedia pustaka utama. 2011. [8] kotler, p., and keller, kl.global marketing management 14edition. harlow: pearson education limited. 2012. [9] ghozali, imam. multivariate analysis application with the fourth edition of the spss program. diponegoro university. new jersey: international inc. 2010. [10] grand view research. (april 2018). athletic footwear market size, share, & trends analysis report by category (running shoes, sports shoes, aerobic shoes, walking shoes, trekking shoes), by gender, by retail channel, segment and forecasts, 2018 2025. retrieved may 20, 2018, available : https://www.grandviewresearch.com/industryanalysis/athletic-footwear-market [11] pouromid, b. and iranzadeh, s. the evaluation of the factors affects on the brand equity of pars khazar household appliances based on the vision of female consumer. middleeast journal of scientific research, 2012, vol. 12, no. 8, pp. 1050-1055. [12] sasmita, j., & mohd suki, n. young consumers’ insights on brand equity: effects of brand association, brand loyalty, brand awareness, and brand image. international journal of retail & distribution management, 2015, vol 43 (3), 276-292. [13] sugiyono. educational research methods quantitative approach, qualitative and r & d. bandung: alfabeta. 2012. [14] wilson, lm, & khasanah, i. influence analysis of product, price perceptions and purchase decision against brand image brand nike sport shoes in semarang. (doctoral dissertation, faculty of economics and business). 2012. [15] wheeler, a. designing brand identity. new jersey: john wiley & sons, inc. 2013. awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 54 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services awali prasetya hanif 1*), sri utami ady2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: mazmbulpunyagawe@gmail.com 1*) , sri.utami@unitomo.ac.id 2) abstract. the formulation of the problem in this study is how the influence of work discipline, job satisfaction and work motivation on the performance of east java province construction services employees (east java lpjk). this research is to identify and analyze the effect of work discipline, job satisfaction and employee motivation on employee performance. meanwhile, the theory used in this study is the theory of work discipline, job satisfaction theory, motivation theory and performance theory. meanwhile, this research was conducted at the east java lpjk. this type of descriptive-quantitative research uses the census method, where the entire population of 50 people is used as a sample in the study. the nature of the research is explanatory research. testing the hypothesis using multiple linear regression analysis using a confidence level of 95 percent. the results showed that the independent variables (work discipline, job satisfaction and employee motivation) simultaneously had a significant and positive effect on employee performance at lpjk east java. meanwhile, partially each variable has a significant effect on employee performance. as for work discipline, it is the most dominant factor influencing employee performance at the east java lpjk, meaning that employee work discipline plays the most dominant role in determining employee performance at east java lpjk. the results of hypothesis testing show that the coefficient of determination is 0.618, so in this case it shows that 61.8% of the independent variables (work discipline, job satisfaction and work motivation) can be explained in the dependent variable (employee performance) at lpjk east java, keywords: work discipline; job satisfaction: work motivation; employee performance i. introduction human resources are an important factor capable of controlling the progress or decline of an organization. every organization wants and seeks to obtain human resources that can realize and achieve organizational goals (kalesaran, frans, mandey & mekel, 2014). according to ardana, mujiati, & sriathi (2012, p. 3) states that human resources are valuable and useful assets for the organization, because the success or failure of the organization is determined by the human element. meanwhile, notoatmodjo (2009) states that humans as one component of several components in the organization are the determining resources for achieving organizational goals such as the vision and mission of the organization. as for the performance of employees at this time has been considered to be able to influence, because it measures how much they give positive work results to the organization. positive employee performance can be achieved, if the work organization can know the factors that influence the performance of the employees themselves. meanwhile, employee performance is influenced by three main factors, namely work discipline, job satisfaction and motivation which are central factors in an organization based on the results of a number of studies which are the reference for these findings (baskoro & susanty 2012; sanjangbati, 2013; nisyak 2016). previous research has been conducted by ivonne (2013), states that work motivation, work discipline and job satisfaction have a significant effect on employee performance. another factor that can affect employee performance is job satisfaction. job satisfaction refers to an individual's attitude towards his work. according to sunyoto (2012, p. 26), defines job satisfaction as a form of expression of feelings in a person towards his work. job satisfaction is an emotional attitude in the form of feelings that originate in a person who likes and loves his work (hasibuan, 2014). job satisfaction will shape employee performance at work, so that by forming a good work culture through providing a sense of comfort in an environment that has a good quality of work life to be able to carry out their duties properly in accordance with the goals set by the organization. someone who has high job satisfaction will respond with a positive attitude towards his work, while someone who has low job satisfaction with his job will respond with a negative attitude towards his job. meanwhile, previous research has examined the effect of job satisfaction on employee performance by kristianto, suharnomo and ratnawati (2010), indicating that job satisfaction has an effect on employee performance. meanwhile, employee mailto:mazmbulpunyagawe@gmail.com mailto:sri.utami@unitomo.ac.id sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 55 performance can be influenced by work discipline. ardana, mujiati, and utama (2011, p. 134) states that work discipline is an attitude of positive action by individuals such as respecting, appreciating, obeying and obeying the regulations that apply to the organization, both written and unwritten and able to run it and accept any consequences that are done. as for turangan, reynolds, sifrid and maria (2016) state that work discipline is a factor in attitudes in acting that affects employee performance. good discipline shows how a person is responsible for the tasks assigned to him. previous research on the effect of work discipline on employee performance was conducted by azwar (2015) and pramana and sudharma (2013) which showed that work discipline has an effect on employee performance. meanwhile, the locus of this research is the east java provincial construction services development institute (lpjk jatim), which is an institution for the role of the construction services community in carrying out the development of construction services. while the authority of the east java lpjk is to form a business entity and labor certification unit at the provincial level. in addition, it can also provide sanctions to service providers for violations of institutional provisions in the east java region. lpjk east java in forming work motivation for employees by providing training, both training related to technical, management and administrative activities. leaders who provide broader views and insights, thus making employees aware of opportunities and challenges on how to overcome existing problems. the average age of lpjk east java employees is relatively young, their relatively young age makes them have difficulty working under pressure, so that in fostering employees, leaders always apply a comfortable atmosphere. the non-optimal work motivation of lpjk east java employees causes negligence and a decrease in work discipline as shown by the high rate of absenteeism and lateness in entering the office. lpjk east java prioritizes job satisfaction to its employees. employees who achieve targets in completing activities/projects, the organization will provide material and non-material rewards to employees. the organization provides intensive programs and other benefits for employee welfare. timely payment of salaries to employees in accordance with applicable laws and regulations. lpjk east java implements a humanist organizational system at work, so that relations with colleagues and superiors are quite good. based on the east java lpjk attendance data for january 2019october 2019 there was a fairly high increase. in addition, the high rate of lateness to work also proves that employee job satisfaction is not in accordance with what employees expect so that in carrying out organizational activities it becomes very unstable, and work programs can be disrupted in achieving the completion target. lpjk east java has relatively poor work discipline. the regulations for the east java lpjk are classified as using standard regulations, so employees at the east java lpjk do not prioritize high work discipline both in the regulations within the company. the system that must be carried out by employees before work is required to attend briefing activities which are held twice a week or as needed. while the training that was implemented was carried out to form work discipline for employees related to their respective work activities, they had not shown satisfactory results. research purposes 1. test and analyze the influence of factorswork discipline, job satisfaction and work motivation simultaneously on employee performancelpjk east java province. 2. test and analyzeinfluence of work disciplinepartiallyon employee performancelpjk east java province. 3. test and analyzeeffect of job satisfactionpartiallyon employee performance lpjk east java province. 4. test and analyzepartial influence motivation on performancelpjk east java province. 5. test and analyze which factors have the most dominant effect betweenwork discipline, job satisfaction and work motivation on employee performancelpjk east java province. relations between concepts and hypotheses factors affecting performance singodimedjo in sutrisno (2010) states that the factors that influence work discipline and affect the performance of work organizations are: 1. the size of the compensation, 2. whether there is an exemplary leader in the company, 3. are there definite rules that can be used as a guide, 4. the courage of leaders in taking action, 5. is there leadership oversight? 6. is there any attention to the employees. the size of the compensation can affect the upholding of discipline. employees will comply with all applicable regulations, if they feel that they are guaranteed compensation commensurate with their efforts that have been contributed to the company. if he receives adequate compensation, they will be able to work quietly and diligently, and always try to do their best. meanwhile, the job satisfaction factor is the impact of work implementation, indirectly job satisfaction will also affect employee discipline which can be seen from the level of absenteeism. employees who do not get job satisfaction will be lazy to work and tend to be absent more often so that the absentee level becomes high, and vice versa, employees who get job satisfaction become enthusiastic and the probability of being absent is very small so that absenteeism tends to be low. the interests of leaders or managers in job satisfaction tend to focus on the effect of the employee's own performance. researchers recognize this importance because many studies have been designed that show the impact of job awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 56 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 satisfaction on productivity, absenteeism and employee turnover (robbins, 2001, p. 182).work motivation itself is an encouragement to do a job. work motivation is closely related to one's performance or performance. basically, a person's work motivation is different, there is high work motivation and there is low work motivation. if work motivation is high, it will affect high performance and vice versa if motivation is low, it will cause someone's performance to be low. if employees have high work motivation, they will work hard, diligently, happily, and with high dedication so that the results are in accordance with the goals to be achieved.based on the relationship of work discipline, job satisfaction and motivation with employee performance and previous research, the following hypothesis is obtained: h1: work discipline, job satisfaction and work motivation simultaneouslypositive and significant effecton the performance of lpjk employees in east java province. relationship between work discipline and employee performance work discipline established by leaders to be applied by their subordinates so as to create a sense of responsibility for their work because employees are aware of their obligations and will certainly prioritize good work results in accordance with predetermined standards. based on ariana's research results (2013, p. 224) it is stated that companies can pay more attention to employee abilities, remuneration for employees, sanctions for disciplinary violations, tighter supervision in an effort to increase or improve employee performance. previous research on the effect of work discipline on employee performance was conducted by azwar (2015) and pramana and sudharma (2013) which resulted in work discipline having an effect on employee performance. based on research, the higher the work discipline of each employee, the higher the employee's performance. this research is in accordance with the results of research by apriani and hartoyo (2012) which states that work discipline has a significant effect on employee performance. based on the relationship between work discipline and employee performance and preliminary research, the following hypotheses are obtained: h2: work disciplinepartially positive and significant effecton the performance of lpjk employees in east java province. relationship between job satisfaction and employee performance job satisfaction received and felt by an employee will affect the results obtained from his work. previous research on the effect of job satisfaction on employee performance was conducted by kristianto et al. (2010) which results in job satisfaction affecting employee performance. in the research of suwardi and utomo (2011) stated that there is a positive and significant effect of job satisfaction on employee performance. based on the relationship between job satisfaction and employee performance and preliminary research, the following hypotheses are obtained: h3: job satisfactionpartially positive and significant effecton the performance of lpjk employees in east java province. relationship between motivation and employee performance motivation is a force that arises from within or outside a person and generates enthusiasm and perseverance to achieve something desired (daft, 2010, p. 373). kasmir (2016, p. 190) states that if employees have strong encouragement from within themselves or encouragement from outside themselves (for example from the company), then employees will be motivated to do something well. in the research of apriani and hartoyo (2012) stated that the better the employee's work motivation in working in the company, the higher the employee's performance will be. based on the relationship between work motivation and work performance and previous research, the following hypothesis is obtained: h4: work motivationpartially has a significant effecton the performance of employees of the east java province construction services development institute. of the three independent factors mentioned above namely; work discipline, job satisfaction, motivation and its influence on employee performance, then the following hypotheses can be arranged: h5: suspected work discipline is a factor the most influentialon the performance of lpjk employees in east java province. research conceptual framework figure 1. research framework sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 57 source: george and jones (2011, pp. 157-158), robbins and judge (2009, p. 119), hasibuan (2010, p. 194), and dessler (2009, p. 133) ii. research methods type/type of research this research is intended to find out how the influence of work discipline, job satisfaction, and motivation on the performance of lpjk east java employees, so this research is categorized as explanatory research, namely research that aims to explain the causal relationship between variables through hypothesis testing. the research method to be carried out is quantitative research. sugiyono (2017, p. 8), states that quantitative research is a quantitative research method that can be interpreted as a research method used to examine certain populations or samples. the sampling technique is generally carried out randomly, data collection uses research instruments, data analysis is quantitative/statistical in nature with the aim of testing the hypotheses that have been set. population and sample the population is a generalized area consisting of objects or subjects that have certain qualities and characteristics determined by researchers to be studied and then conclusions drawn (sugiyono, 2017, p. 80).the population in this study amounted to 50 employees with permanent employee status atlpjk east java province. the sample in the study is the entire population taken as a sample, thus, the total sample is equal to the total population (census or saturated sample). according to arikunto (2002), if the total population is less than 100, it is better to take all of them.as for data analysis techniques in quantitative research using statistics (sugiyono, 2016, p. 147) and in calculating data analysis using spss (statistical package for the social sciences) version 26.0. validity and reliability test the questionnaire given to the respondents is a research instrument, which is used to measure the variables to be studied. therefore, the questionnaire instrument must be used to obtain valid and reliable data, so before the questionnaire instrument is given to respondents, it is necessary to test its validity and reliability (sugiyono, 2010, p. 202). the validity test is used to measure whether a questionnaire is valid or not. the research results are valid if there are similarities between the data collected and the actual data that occurs in the object under study. a valid instrument means that the measuring instrument used to obtain (measure) data is valid. valid means that the instrument can be used to measure what should be measured (sugiyono, 2016, p. 168).based on data processing, the results of testing the research variable instruments as a whole have a corrected item total correlation value that is greater than 0.30. thus it can be concluded that all statement instruments of all research variables used are valid, and these instruments can be used in research, besides that this is also reinforced by a significance value (2-tailed) which all have a value below 0.05. the reliability test was carried out to find out how far the results of measuring two or more times for the same symptoms using the same measuring device. according to sugiyono (2017 p. 121) reliability is as follows: "instruments that, when used several times to measure the same object, will produce the same data."something is said to be reliable if the value of the cronbach alpha coefficient is > 0.6, whereas if it is the other way around, the data is said to be unreliable.reliability is to measure a questionnaire which is an indicator of the variable. a questionnaire is declared reliable or reliable if the answers from the respondents to the questions are consistent or stable from time to time. according to ghozali (2005), reliability measurement can be done in 2 (two) ways, namely: 1) repeated measurement by giving the same questionnaire at different times and then seeing whether the respondent remains consistent with the answer, and 2) measuring only once (one shot) by giving a questionnaire only once and the results are compared by measuring the correlation between the answers to the questions. testing the reliability of the questionnaire in this study used onetime measurement (one shot) and for testing the reliability used the cronbach alpha statistical test > 0.60. the result of the instrument reliability test was 0.691 which implies that the instrument used in this study is reliable. classic assumption test the classical assumption test must be carried out to test the feasibility of the regression analysis model used in the study. this test includes: normality test according to ghozali (2013, p. 160) a good regression model is a normally distributed regression model. the normality test is carried out to see whether our research data is normally distributed or not. the normality test uses the spss tool, namely by observing the normal probability plot graph and the kolmogorov-smirnov non-parametric statistical test. regression is said to have a normal distribution if the normal probability plot graph shows points that spread around the straight diagonal line and follow the normality line and are around and along line 45. in the kolmogorov-smirnov test the data is said to be normally distributed residual if its significance is > 0.05 (α=5%). awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 58 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 figure 2.normality test results figure 3.normality test results (pp plot) multicollinearity test according to ghozali (2013, p. 105) a multicollinearity test was conducted to determine whether or not there was a linear relationship between the independent variables in the regression model. if there is a correlation between the independent variables, this means that there is multicollinearity and the multiple regression equation that will be formed cannot be used for forecasting. therefore, a good regression model should not have correlations between the independent variables. whether there is multicollinearity is determined by looking at the tolerance value and the variance inflation factor (vif). if the tolerance value is greater than 0.1 and vif is less than 10, then there is no multicollinearity in the regression model. table 1. multicollinearity test results heteroscedasticity test according to ghozali (2013, p. 139) the heteroscedasticity test is useful to find out whether in the regression model there is an unequal variance of the residuals of one observation with other observations. to test whether there is a heteroscedasticity problem, it can be done by looking at whether there is a certain pattern on the scatterplot graph between sresid and zpred where the y axis is the residual and the x axis is the predicted x. if there is a certain regular pattern on the scatter plot graph then there is an indication that there is heteroscedasticity. if there is no clear pattern, then there is no heteroscedasticity. figure 4.heteroscedasticity test results research variable descriptive analysis descriptive analysis is intended to describe the frequency distribution of respondents' answers regarding the research variables, namely work motivation, job satisfaction, work discipline, and employee performance. in this study, the description of the respondents' answers was carried out by looking at the average value (mean) and standard deviation. the mean is the average value of all respondents, while the standard deviation is a variation of the respondents' answers. multiple linear regression multiple linear regression analysis is used to predict changes in the value of certain variables when other variables change. sugiyono (2010, p. 277), is said to be multiple regression because the number of independent variables is more than one. multiple regression analysis can be performed if there are at least 2 independent variables. hypothesis testing f test the f statistical test is used to determine whether the regression model can be used to predict the dependent variable (ghozali, 2011). if the value of fcount > ftable and the probability of significance <0.05, then the regression model can be used to predict the dependent variable. t test according to ghozali (2013, p. 98) the t statistical test basically shows how far the influence of one sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 59 independent variable individually in explaining the dependent variable. coefficient of determination (r) the coefficient of determination essentially measures how far the model's ability to explain the variation in the dependent variable. the value of the coefficient of determination is between zero and one. the small value of r2 means that the ability of the independent variables to explain the variation in the dependent variable is limited. the value of adjusted r2 which is getting bigger (closer to indicating the influence of the independent variable (x) on the dependent variable (y). conversely, if the adjusted r2 is getting smaller (closer to 0), it can be said that the influence of the independent variable (x) is small on the dependent variable (y) ). iii. results and discussion multiple linear regression analysis table 2. regression coefficient in the table above it can be seen that the regression equation formed is: y = 0.007 + 0.602 x1 + 0.104 x2 + 0.396 x3 based on the regression equation it can be explained that: α = constant = 0.007, indicating the magnitude of employee performance (y) which is not affected by work discipline (x1), job satisfaction (x2), and motivation (x3). this means that if work discipline (x1), job satisfaction (x2), and motivation (x3) = 0, then employee performance (y) will be 0.007. this shows that there are other factors that can affect the performance of lpjk east java employees, besides work discipline, job satisfaction, and motivation. b1 = regression coefficient for x1 = 0.602 indicating the direction of influence of work discipline (x1) on employee performance (y) lpjk east java. this means that if there is work discipline, then the performance of the east java lpjk employees will increase by 0.602 units, assuming the amount of work discipline is constant / does not change. b2 = regression coefficient for x2 = 0.104 indicating a direction of influence of job satisfaction (x2) on employee performance (y) lpjk east java. this means that if there is job satisfaction, then the performance of lpjk east java employees will increase by 0.104 units, assuming the level of job satisfaction is constant/unchanging. b3 = regression coefficient for x3 = 0.396 indicating that there is a direction of influence of motivation (x3) on the performance (y) of lpjk east java employees. this means that if the motivation, the employee's performance (y) will increase by 0.396 units, assuming the amount of work discipline is constant / does not change. based on table 2. the results of the t test analysis are obtained: 1. the significance value of work discipline (x1) is 0.000 less than α = 0.05 (0.000 <0.05), then h0 is rejected and ha is accepted. so it is proven that the work discipline variable (x1) has an effect on employee performance (y). table 2 shows the regression coefficient of work discipline with a positive value of 0.603, indicating that work discipline has a significant and positive influence on the performance of lpjk east java employees; 2. the significance value of job satisfaction (x2) is 0.009 which is less than α = 0.05 (0.009 <0.05), then h0 is rejected and ha is accepted. so it is proven that job satisfaction variable (x2) has an effect on employee performance (y). table 2 shows the regression coefficient of job satisfaction with a positive value of 0.104 indicating that job satisfaction has a significant and positive effect on the performance of lpjk east java employees; 3. the motivational significance value (x3) of 0.001 is less than α = 0.05 (0.001 <0.05), then h0 is rejected and ha is accepted. so it is proven that the motivational variable (x3) has an effect on employee performance (y). table 2 shows the regression coefficient of motivation with a positive value of 0.396 indicating that motivation has a significant and positive influence on the performance of lpjk east java employees. table 3. coefficient of determination (r2) based on the results of the f test in the table above it is known that the f value is 27.389 with a significance level of 0.000. the significance value is less than 0.05, so the regression model used is fit. table 4. adjusted r square value awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 60 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 based on the table above, the coefficient of determination (r2) can be seen from the adjusted r square value of 0.641. this shows that the variable ability of work discipline (x1), job satisfaction (x2), and work motivation (x3) simultaneously has a significant and positive effect on employee performance variable (y) of 61.8%, while the remaining 38.2% is the influence of other independent variables that are not examined. discussion work discipline affects employee performance the results of the study show that there is an influence between work discipline on employee performance. the results of the t test analysis obtained a significance value of t work discipline of 0.000 which is less than α = 0.05 (0.000 <0.05). in accordance with the statements of azwar (2015) and pramana and sudharma (2013) which results in work discipline having a positive and significant effect on employee performance. this research is in accordance with the results of research by apriani and hartoyo (2012) which states that work discipline has a significant effect on employee performance. this study supports previous research conducted by sitorus and ahmed (2014) who stated that work discipline has a positive effect on employee performance. wiratama and desak (2013) state that work discipline has a significant effect on performance. turangan et al. (2016) stated that work discipline is one of the factors that influence employee performance. zesbendri and anik (2009) state that discipline is the main capital that influences the level of performance. in the research results, it can be seen that the highest indicator of work discipline is time effectiveness. this shows discipline in the form of employee compliance with directions in improving performance. in addition, the lowest rated work discipline indicator is compliance with regulations. job satisfaction influences employee performance the results showed that there was an influence between job satisfaction on employee performance. the results of the t test analysis obtained a significance value of t job satisfaction 0.009 which is less than α = 0.05 (0.009 <0.05). in accordance with the statement of kristianto et al. (2010) stated that job satisfaction has a positive and significant effect on employee performance. in the research of suwardi and utomo (2011) stated that there is a positive and significant effect of job satisfaction on employee performance. the results of this study are consistent with research conducted by perera, khatibi, and navartana (2014) in sri lanka which showed a positive effect on the independent variable job satisfaction on the dependent variable on employee performance. research funmilola, sola, and olusola (2013) which states that the components in job satisfaction have a significant effect on employee performance. the results of multiple linear regression analysis with the regression coefficient value of the job satisfaction variable indicate that the effect of job satisfaction on employee performance. if there is a change in the job satisfaction of lpjk east java employees, it will affect employee performance. this means that even though the job satisfaction of lpjk east java employees has increased or decreased, it will have a lot of influence on increasing or decreasing the performance of lpjk east java employees. in the results of the study it can be seen that the highest indicator of job satisfaction is the level of supervision. this shows employee satisfaction with directions in improving performance. besides that, the lowest rated indicator of job satisfaction is co-worker relations. this shows that the job satisfaction of lpjk east java employees in building co-worker relationships is still low. motivation affects employee performance the results of the study show that there is an influence between work motivation on employee performance. the results of the t test analysis obtained a significance value of t work motivation 0.001 less than α = 0.05 (0.001 <0.05). in accordance with murty's statement (2012) states that work motivation has a positive and significant effect on employee performance. in the research of apriani and hartoyo (2012) stated that the better the employee's work motivation in working in a work organization, the higher the employee's performance will be. kasmir (2016, p. 190) states that if employees have strong encouragement from within themselves or encouragement from outside themselves (for example from the organization/company), then employees will be motivated to do something well. in the end this encouragement or stimulation from within and from outside a person will result in good performance, and vice versa. work motivation has 2 sources, namely intrinsic motivation and extrinsic motivation (george and jones, 2011, p.159). from the research results, it can be seen that the highest work motivation indicator is the level of employee effort. this shows the seriousness of employees in carrying out tasks and high work. in addition, the lowest rated work motivation indicator is the level of persistence. this shows that the work motivation of lpjk east java employees when faced with an unsupportive work environment is still low. iv. conclusions and suggestions conclusion 1. factors work discipline, job satisfaction and work motivation simultaneously have a significant and positive effect on employee performancelpjk east java province. 2. work disciplinepartially has a significant and positive effecton employee performancelpjk east java province? sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 awali prasetya h, sri utami ady the influence of work discipline, job satisfaction and work motivation on employee performance in development institutions east java province construction services 61 3. job satisfactionpartially has a significant and positive effecton employee performancelpjk east java province? 4. motivationpartially has a significant and positive effecton employee performancelpjk east java province? 5. work discipline is the most dominant factor influencingon employee performancelpjk east java province? suggestion 1. it is expected that the east java lpjk in terms of increasing compliance with regulations will be more emphasized to be implemented so that employees are more obedient and obedient at work. 2. it is hoped that the east java lpjk pays attention to work motivation in employees, especially in persistence in dealing with an unsupportive environment by means of supervisors having to be more frequent to support enthusiasm in employees; 3. it is hoped that the east java lpjk can pay attention to co-worker relations to build good cooperation, so the company should provide group training to build relationships between co workers. 4. it is hoped that further research can add leadership style and job training variables that affect employee performance in order to expand the research results obtained. bibliography arikunto, suharsimi, (2006), prosedur suatu penelitian: pendekatan praktek, edisi revisi v, penerbit rineka cipta, jakarta. as’ad, m, (2003). psikologi industri seri sumber daya manusia, cetakan kedua, penerbit liberty, yogyakarta. apriani, d., & hartoyo, w. e. 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(2012). manajemen sumber daya manusia. jakarta: pt buku seru. suwardi dan utomo, j. (2011). pengaruh motivasi kerja, kepuasan kerja, dan komitmen organisasional terhadap kinerja pegawai. jurnal analisis manajemen. 5(1). turangan, reynold b., sifrid, s. p., & maria, v. j. t. (2016). employee performance analysis through leadership style, motivation & work discpline at waroeng charity manado. jurnal emba, 4(1). 1068-1076. 18 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) 1)dr. mahjudin.mm, 2)ir. nurmawati.mm, 3)indriana kristiawati.se.mm university of muhammadiyah gersik email : mr.mahjudin@gmail.com submit : 20th november 2018, revised : 22nd february 2019, accepted : 01st march 2019 abstract since the beginning of the internet, individiuals have shown interest to the internet. according to internet world stats’ statistics (2012) today more than two billion people linked to the internet. this number shows that 30 percent of the world population use the internet. consequently, the internet can be used for the competitive advantage by organisations and actually it is a powerful source to use (hamill, 1997; 300). customer behaviours are influenced by different factors such as culture, social class, references group relation, family, salary level and salary independency, age, gender etc. and so they show different customer behaviours. these differences are seen more specific when it is considered between two different consumer groups from different countries this paper using online questioner, since the research was an online consumer behaviour study, online data collection methods were preferred. the link of the questionnaire has been sent online. 184 were responded and within the responded questionnaires 169 were usable for analysis (six incomplete responses have been eliminated). the sample consisted of individuals that live urban area which is jakarta and surabaya and rural cities which is klaten and madiun. the result of this study would contribute marketers who want to penetrate the market in 4 cities who is already present in the market and wants to maintain the loyalty of their customers. it can also be a part of the study on international consumer behaviour toward online shopping. i. introduction mnowadays, the internet is being widely used in daily life. the existence of the internet brought many advantages to individuals’ daily lives. with the help of the medium, people can communicate, learn, entertain, buy products and get services. of course the disadvantages of it have long been discussed; as the virus threat, the risk of personal information theft, spamming etc. however since the advantages outweigh the drawbacks, most of the people cannot resist bringing it to the centre of their lives. the internet have been using for several different purposes. besides that, it has also brought a different dimension to commercial activities. the internet has created a new market for both customers and organisations, and has been an alternative market to the traditional market. web sites provide a chance to search information about products/services, place a comment or give orders (hoffman and novak, 1996; 51). therefore, the previous experiences of marketing has turned into a different segment. now organisations are taking consider to provide different payment methods, different shipping alternatives and even different web interfaces for different geographics. today, with the rise of the technology, significant portion of commercial activities take place over the internet. since commercial activities’ main goal is to sale, sale can be realised by the purchase of a different party, as we know customers. therefore, for electronic commercial activities, it is important 19 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) to analyse online customers’ behaviour. furthermore, in order to develop and apply effective marketing strategies the factors that affect consumer behaviours should be investigated. online retailers can better understand customer needs and wants by directly analysing the interaction between a customer and the online shop. analysing consumer behaviour is not a new phenomenon for scholars. philip cotler, marketing expert, have studied on this topic. theories about consumer behaviour have been used to develop an effective marketing strategy. moreover, it is impossible to think marketing without the internet in today’s world. online marketing is the topic that have been researched and made applications many times by researcher from past to nowadays. studies on online shopping investigated the factors that influence online shopping as well as motives for, value of and antecedents of online buying behaviour. as a result, the academic researchers and the business world started to focus on the consumer side of the online purchasing behaviour and a lot of researches and articles were prepared to make guidance for the development of online shopping. being aware that customers are performing a major role in marketing, finding out how the factors that are essentially affecting the purchasing intentions are important. analysing the process of shopping activities, how consumer decide and make purchasing over the internet and what they buy need to be identified by online providers in order to satisfy and succeed in the competitive business environment. customer behaviours are influenced by different factors such as culture, social class, references group relation, family, salary level and salary independency, age, gender etc. and so they show different customer behaviours. these differences are seen more specific when it is considered between two different consumer groups from different countries. previous research streams on online shopping behaviour, investigated main factors influencing online shopping adoption. however there has been limited number of studies on comparison two different countries. in this study, research has been made comparative online buying behaviours of consumers that are located four different areas which are surabaya, jakarta representing urban areas, madiun and klaten representing rural areas studied on the findings of the research. ii. literature review a. the concept of e commerce the internet technology, appearing during the last quarter of the 20th century and having been used frequently for few years in daily lives, has influenced all parts of our lives in a short time. the changings in technological area all over the world have changed the concept of information and communication. the use of internet for commercial purposes gave rise to the existence of the electronic commerce (e-commerce) phenomenon. with the implementation of these information and communication technologies by commercial institutions in order to support business activities, electronic business concept was developed. the rise of these new information and communication technologies and of internet users, has introduced a new marketing reality’(xavier and pereira, 2006). this new presence change the relations between the players. furthermore businesses have realised and seen the importance of the internet and it has become that e-commerce in the business context, for most companies, can be seen as a complement (shaw, 2006; xv).the importance of the compatitive power and superiority has come to foreground and organisations’ understanding of competition has changed dramatically. in today’s world businesses use electronic commerce channels to communicate with customers and to increase competitive advantage (lee and lin, 2005; 161). b. ecommerce another type of transaction, business to consumer e-commerce activities also known as e-retailing, take place between between organisations and the customers. e-commerce is just another tool for retail companies selling products by using webbased technologies. www.gap.com is an example for this kind of companies which use a web site to reach their customers and also providing shipping services. the success of this area mainly based on trust issue (lee and turban, 2001 ; 75). situations such as; products can not be seen or touched by consumers or if customers do not have a previous experience, to reassure customers for companies have carried a critical importance. yet, trust is an important element for commercial activities (gefen 20 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) and straub, 2004; 407) it becomes more crucial for e-businesses. moreover, organisations should be customer-centric (gummesson, 2008c; cited in gummesson and polese, 2009; 342). it is because the success of ebusiness mostly depend on loyal customers (smith and merchant, 2001; cited in cao, et al., 2005; 645). individuals could find another provider anytime, anywhere on the internet (singh, 2002; 434). therefore, managing customer relations are important and especially in the e-business there is no face-to-face contact, e-services are important to satisfy customers. the third type is consumer to consumer e-commerce action which provides to consumers to put their goods on the market for other consumers ‘in auction format’ (korper and ellis, 2001; 11). ebay is the first and most popular consumer to consumer type of e-commerce company. if an individual wishes to sell its product, can simply register to a web-site and put the product on the market. after that a buyer can browse and search the product they interested in. later, if the buyer is willing to buy the product they can buy it directly from the seller. in this way, the organisation (ebay) acts as an interface between two players and generate revunue from this action. organisations usually charge fees from seller side, not from the buyer part in these kind of activities because of fees could discourage buyers from the purchasing activitiy (makelainen, 2006; 4). the final online marketing domain is consumer to business online marketing. with today’s internet environment consumers can reach companies easily. using the web, consumers can drive transactions with businesses, rather than the other way around. in this transaction, dominating factor is seen as price (muzumdar, 2011; 9). for instance, priceline.com provides to companies to buy airline tickets, hotel rooms etc which are put by consumers on the web site. consumers can also send requests and compaints via complaint web sites (kotler and armstrong, 2012; 536). people have started to generate content as a publisher on the internet and they have the opportunity to share them through the social networks. a new media has been emerged as a result of these developments and it is called as ‘social media’ through which consumers now are spending their time, and taking into consideration of this channel when making purchasing decisions. this evolution have deep effects on the marketing world. today, with the main concept of marketing, consumer is the king and marketers should have to get involved within the online world in order to be successful reaching and listening to the consumer. that is why, today’s businesses have also been forced to move their advertisement activities to this new media. there are many social media platforms those have different functions and features. one of the most popular social media platforms are the social networking sites such as facebook and twitter. ‘social commerce is an emerging and fast-growing trend in which online shops are able to connect with other shops in the same online marketplace’ (stephen and toubia, 2009; 262). companies also use facebook or twitter to reach more customers and inform them in that presence as well. c. e-buying behaviour in recent years, with the development of the internet, many entrepreneurs have tried to create and provide new online businesses to benefit the advantages of the internet. furthermore, the internet environment affected the businesses and have forced them to include themselves in this environment. one way of this happened with the emergence of group buying system and provide advantages both businesses and consumers. group buying web sites first appeared in 1998 (hackl, 2004; 2) and developed rapidly. the main idea is that, consumers can use their bargaining power to decrease the prices and on the other hand suppliers can ‘diminish their cost of recuiting customers’ (kauffman, et al., 2010; 250). with online group buying system individuals enable to purchase products or services with a daily deal and for many different types (erdogmus and cicek, 2011; 308). in here, price is the mainly element that affects and maybe changes a consumers’ decision. due to technological innovations, the traditional way of shopping has become insufficient for individuals. individuals now prefer easy ways to reach brands and stores and it can be said that that ‘the internet has fundamentally changed customer’s notions of convenience, speed, price, product information and service. as a result, it has given marketers a whole new way to create value for customers and build relationships with them’ (kotler and armstrong, 2012; 532). the e-commerce sector has continued its growth 21 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) in recent years. the numbers demonstrates that ‘e commerce is taking a bigger slice of the overall retail sales pie and is growing far faster than retail sales’ (internet retailer, 2011). moreover, in urban areas e-commerce take 10% of total sales and globally electronic reatiling reaches 15% to 20% of total sales (rigby, 2011; 2). therefore companies are taking internet based e-commerce seriously which gives rise to sales. d. online shopping and consumer behaviour with the emergence of the internet, internet-based electronic commerce developed and this environment provide individuals to reach information about products and services easily. moreover, commercial organisations have moved to incorporate the world wide web into their promotional campaigns, and by offering the facility of online purchasing and like many other innovations ‘online shopping’ has become a part of our live. it is no secret that businesses’ main goal is to sale and sale is provided for other party, consumers. therefore, for commercial activities , analysing consumers’ behaviours is crucial (deaton and muellbauer, 1980, solomon, 2006, wright and et al., 2008) and since there is no face to face interaction in online businesses, it becomes more important to understand key features of consumer behaviours. rogan (2007, cited in nazir, et al., 2012) indicates the importance of the relationship between the marketing strategy and the behaviour of consumer. he illustrates that ‘the strategy is about increasing the probability and frequency of buyer behaviour and requirements for succeeding in doing this are to know the customer and understand the consumer’s needs and wants’. rogan (2007, cited in nazir, et al., 2012) indicates the importance of the relationship between the marketing strategy and the behaviour of consumer. he illustrates that ‘the strategy is about increasing the probability and frequency of buyer behaviour and requirements for succeeding in doing this are to know the customer and understand the consumer’s needs and wants’. furthermore, the internet business have created more competitive environment, understanding features of online shoppers’ behaviours have been more important. moreover, it should be analysed by online sellers that ‘why some still prefer not to buy online’ (turan, 2011; 78). consequently analysing behaviours of online consumers have carried a crucial part for marketing science (uygun, et al., 2011; 373). furthermore, businesses and academics are aware of this issues critically therefore over years, increasingly many studies are represented. chang, et al. (2004) studied on categorisation of variables which drive online shopping activity. according to their study, features are divided into three main categories. first one is perceived characteristics of the web sale channel which include risk, advantage, online shopping experience, service quality, trust; second category is web site and product characteristics which are risk reduction measures, web site features and product charecteristics; and the last category clarified by authors is consumer characteristics. consumer characteristics are driven by various types of features., consumer shopping orientations, demographic variables, computer, internet knowledge and usage, consumer innovativeness and psychological variables. consumer’s characteristics are also studied by kotler and armstrong (2010) and they explains the way of the perception of the buyers, how they interpret and receive the stimuli from advertisements. according to kotler and armstrong (2010; 161) the decisions of consumers are influenced by several characteristics and these characteristics are linked with the needs of the consumers. e. behavioral factors that affecting in the online medium consumer behaviours can be explained in four dimensions which are personal characteristics, psychological characteristics, social characterstics and cultural characteristics (wu, 2003; 38, kotler and armstrong, 2010; 161). identifying these characteristics are crucial to decide marketing strategies and to target correct consumer groups. 1. personal characteristics characteristics of a person, is an important factor affecting the purchase decision process. personal factors include age, gender, occupation, income status, education, life style. in online shopping researchers, most of the studies are conducted on young adults 22 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) because of their familiarity with ict (lester et al., 2005). kau, et al. stated that (2003;150) traditional shopping mostly have been chosen by older individuals (40 years old and above). researches about young adults are also helpful to predict future consumer behaviour easier. young adult generation have more options with respect to other generations and they are more conscious, give their decision by themselves, they choose what they prefer easily. in addition, cross-shopping is more intense in this consumer group (vasquez and xu, 2009). younger individuals usulaay have interest in using new technologies to search for information and evaluate alrenatives (monsuwe, et al., 2004). internet is perceived as a risky environment by older individuals since older people have less knowledge about the internet and new technology and they also insist to try products before purchasing. furthermore, individiuals with lower income tend to approach online shopping activity more cautious and find this medium as a riskier place since their tolerance for financial loses are lower with respect to consumers with higher income. however, once users have an experience their attitude is not affected by their income (hernandez, et al, 2011; 117). part of the income are spent mandatory requirements of life and the remaining can be spent freely. individuals can only use this remaining part how they want to. moreover, it is also concluded by lohse et al. (2000) that households with higher income would have positive approach with the possession of the internet access. on the other hand it has found that ‘online shoppers are not necessarily more educated’ (zhou, et al., 2007; 46). online shopping has been considered as a easy activity, therefore education level has not a big effect on it. however educated people are more likely to accept innovations easily educated level may have an effect on decision process. demographic factors become important when individuals face with new things. hernandez et al. (2011)’s comprehensive study regarding socio-economic characteristics of consumers (age, gender and income) moderating effects on online shopping behavior reveals that these characteristics do no moderate experienced online shoppers’ behavior. when consumers become experienced in online shopping their behavior become more similar and socio-economic characteristics do not differ, their behavior differ significantly in initial purchases since it has been found that demographic factors such as gender and age are significant factors when people face new things. for example in some studies men are claimed to be more pragmatic whereas women are more anxious by the time they face with new things and affected more by their social environment, people with lower income regard online shopping as riskier since their tolerance for financial losses are lower with respect to consumers with higher income. therefore, since there is significant numbers of experienced online shoppers, it is claimed that instead of focusing on consumers’ demographic and socio-economic characteristics, researchers need to emphasize on behavioral dimensions in order to produce results that are more effective. 2. psychological characteristics smith and rupp (2003) argue psychological factors of consumer behaviours in the online shopping context. online consumers psychologically deal with themselves and they frequently questioning themselves. motivation make consumers to ask themselves, should they look a better price or should they shop online more often and these kind of questions. perception is one of the important factor and make consumers examine the security of the web site or the quality of the product. in this case the seller organisations have to be successful in terms of providing customers a confidence. another psychological aspect is personality. the personality factor may drive consumers to ask themselves what kind of web sites are best suited for their personal preferences. personal preferences manage consumers to decide. the fourth one is attitude and attitudes can change easily, therefore marketers are many interested in these features (wu, 2003; 38). consumers try 23 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) to find out what they like or not in respect to a particular situation. 3. social characteristics the social influence comes from the reference groups. for the online consumers reference groups are identified as virtual communities, consisting of discussion groups on a web site. other people’s experiences, opinions have shown in this medium and affect consumers (christopher and huarng, 2003). another one are contact links, web site links related to the product or the service, which make individuals ensure about the decision. according to kotler and armstrong (2007) the effects of the reference groups are mainly based on the belief that a person’s behaviour is influenced by many small groups. family is one of this reference group. there are different ways that reference groups influence an individual’s attitude, they may expose a new behaviour or life style or may create a pressure to accept the attitude. van raaij, (1997). by definition, culture is ‘a shared set of values that influence societal perceptions, attitudes, preferences and responses’ (zhou, dai and zhang, 2007: 46). in terms of the culture, there are basically five types of cultural diferences in literature: power distance, individualismcollectivism, masculinity-feminity, uncertainty avoidance long-term orientation (hofstede, 2001). however, zhou, dai and zhang (2007) assert that only two of these factors, individualismcollectivism and masculinityfemininity, are used for explaining online behavior of the consumer. collectivismindividualism is the member of a culture’s interpretation of the self in terms of dependency to the culture (zhou, dai and zhang, 2007). hence, it is demonstrated in many studies that western and eastern cultures are different from each other in terms of dependence and this leads to different consumer online shopping behaviour in western and eastern societies (chau et al. 2002; huang 2003; park and jun 2003; park, lee and ahn, 2004). in other words, in the individualistic societies, people are more likely to use the internet for personal use such as shopping and information seeking (chau et al. 2002; park and jun 2003), while in collectivist societies, people are more likely to use the internet for social communication purposes (wee and ramachandra, 2000). moreover, it is shown that in the collectivistic cultures, entertainment is important, while in the individualistic cultures convenience and variety seeking is the main aim (zhou, dai and zhang, 2007). 4. customer loyalty in the last century, technological advances leading to very large changes on marketing. consequently it offered new oppurtunuties and also led to even greater competition they are facing. this make businesses to leave classical management mentality and to adopt new business and market strategies. the internet, which becomes a part of daily lives, also become a part of everyday shopping. to retain customers, who are just a few keystrokes away from any web sites without any constraint, has become very difficult. in case of any dissatisfaction, these customers would prefer a high number of competitiors and the switching cost is almost absence, thus in online environment, e-stores is to make it even more important to ensure customer loyalty. products of technology and informatics start to change the customers’ shopping behaviour, as it changes many habits of them. in online shopping, customers have some expectations from companies before shopping, as in traditional shopping. to satisfy or dissatisfy this expectations or how extent of satisfaction is achieved create the perceived value of customers. satisfaction or dissatisfaction occur as depends on experiences which exist after online shopping. this situation affects the trust to company. customers’ loyalty or disloyalty depends on how much these factors are achieved. 5. trust park and kim (2003; 17) stated that consumers’ trust to a provider or supplier results with becoming committed to the company. trust issue is exceed with a few successful 24 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) transactions, after individiuals start feel safe and believe that this supplier answer their needs and wants. on the other hand provided information is another issue in terms of online shopping for park and kim (2003; 17). since online shopping is an activity which related to a computer-system, individuals cannot touch or feel products. therefore their decisions based on the information that provided by online retailer. information issue not only important in terms of availability situation, it is also important in convenience and personalisation concept. web site design, access to information, access time to information also influence on behaviours of comsumers. 6. cross-border online shopping with the entrance of internet to people’s daily lives, individuals began to carry on their commercial activities like searching information about products/services, placing consumer comments, or giving orders with the help of the medium. from this aspect, it brought a new dimension to consumers’ way of shopping. besides affecting the consumers’ shopping routine, businesses’ marketing practices, understanding they have no chance to ignore the medium, are also affected. as an outcome of the usage of internet in shopping activities of consumers, the issue of using internet in crossborder commercial activities came to stage. although individuals adopt purchasing goods and services from internet as the time passes, cross-border online shopping is still a concept that most of the consumers hesitate to engage. thus, this research aims to find out about the factors that prevent the consumers to engage in cross-border online shopping. iii. research methodology this chapter illustrates the way of the research has been conducted by presenting the methodologies and theories used. the technical details of the research are described and detailed. important issues such as, philosophy of the research, preparation of the research, the method and procedure of data collection, components of questionnaire, sampling decision are covered. the first process is topic selection. the knowledge, observations and interest on a topic help to finalyse the topic. after that, theories and literatures have been searched to support the research. next, the problem and the research question has been developed and research method has been selected. the next step is to collect data with using the methods planned. after the data is collected, i analyse the data with selected theories. at last, the conclusion is drawed. this research started with exploratory study however developed into an explanatory study since the first aim was gaining knowledge about consumer behaviour and following with being able to gain information toward online consumer behaviour. after that specific factors have been identified which are the important during the online purchase. this knowledge is then used to find relationship between these factors. there are two main research approaches have been using. a deductive approach have been chosen for this study. the deductive approach attempts to figure the theory first and then moving from the theory, the collected data is tested. moreover, the deductive approach is valid for quantitative data and since this study consists quantitative data, it is appropriate for this study. to investigate consumer behaviours and purchasing decisions, a quantitative approach is used to analyse the results from the survey. after the online questionnaire have been created, the questionnaire link was emailed to participants. at the same time, it is also asked them to forward the questionnaire to their cases. secondly, the questionnaire distributed through facebook. the respondents could easily click on the link which directly lead them to the questionnaire. to be a participant of this survey, respondents were expected to have minimum one online shopping experience. this limited participation and lowered response rates; however, this condition was necessary because of the topic of the study. quantitative research measures the data using descriptive statistics. the coding process is to transform the raw data from the results of questionnaires into numerical data. it is then followed by a calculation for each question by using an spss program. 25 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) iv. result according to the data analysis, cross-border online shopping is still a shopping type that individuals hesitate to engage. moreover, respondents from rural areas indicated that they had never made any purchases from foreign countries although their socio economic status and language level is convenient. respondents from urban areas demonstrated higher purchases than rural consumers. however, they also illustrated that they made more purchases in the us and european countries than the countries besides those two. there is a significant and positive relationship between safety of online shopping, price of products and services, more information, comparison of different choices and accessible of more products with attitudes of consumers toward online shopping in both urban and rural. there is also a significant and positive relationship is found among safety of online shopping and time saving in both madiun dan klaten. moreover, there is a significant and negative relationship between safety of online shopping and risk of not seeing products with attitudes of consumers toward online shopping in urban cities like surabaya and jakarta and rural cities like klaten and madiun. in addition, in madiun side, safety of online shopping and risk of giving information is related significantly negative. rural areas are specified with high uncertainty avoidance by hofstede’s cultural dimensions (geert-hofstede.com), therefore, it is possible to see the trust relating with every dimension. v. conclusion one of the key and significant factors in online shopping is consumer satisfaction. online shopping frequencies of the two samples are different; and urban consumers shop online more frequently relative to rural consumers. the reason for this result could be the security perceptions in the sample as expressed by the disadvantages of online shopping mentioned. for both urban and rural consumers, a concern for security is one of the important disadvantages of online shopping. for rural customers, online shopping has disadvantages such as security concerns, not having sufficient information about products, and not having the chance of physically trying the goods which are all related to trust. trust in online shopping is an important concern for rural consumers as people of a culture with high uncertainty avoidance index. usage levels of payment methods also differ between rural and urban online shoppers. rural consumers prefer cash on delivery and direct money transfer online more, relative to urban consumers for their online purchases. references amazon (2012), ‘overview’, [online] available at: http://phx.corporateir.net/phoenix. zhtml?c=176060&p=irol-mediakit. bloomberg (2012), ‘groupon china venture to merge with tencent-backed ftuan’, [online] available at: http://www.bloomberg.com/news/2012-06-26/ groupon-china-venture-to-merge-with-tencent backed-ftuan.html booz & company (2011), ‘turning like to buy social media emerges as a commerce channel’, [online] available at: http://boletines.prisadigital.com/like_ to_buy.pdf cao, m., zhang, q., seydel, j. 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(2005), ‘customer perceptions of e-service quality in online shopping’, international journal of retail&distribution management, vol.33(2), pp.161-176. 27 sinergi, volume 9 number 1 march 2019 dr. mahjudin.mm1), ir. nurmawati.mm2), indriana kristiawati.se.mm3) buying behaviour pattern on online consumer (a comparison between urban and rural buyer) lee, m., k., o., turban, e. (2001), ‘a trust model for consumer internet shopping’, international journal of electronic commerce, vol. 6(1), pp.75-91. lester, d., h., forman, a., m., loyd, d. (2008), ‘internet shopping and buying behaviour of college students’, services marketing quarterly, vol.27(2), pp.123-138. makelainen, s.,i. (2006), ‘from b2c to c2c e-commerce’, university of helsinki, [online]. http://www.groundswell.fi/sim/academic/(sim)%20 from%20b2c%20to%20c2c%20ecommerce.pdf mellahi, k., johnson, m. (2000), ‘does it pay to be a first mover in e.commerce? the case of amazon. com, management decision, vol.38, pp.445-452. monsuwe, p., t., dellaert, c., g., b., ruyter, k. (2004), ‘what drives consumers to shop online? a literature review’, international journal of service industry management, vol.15(1), pp.102-121 muzumdar, p. (2011), ‘online bookstore-a new trend in textbook sales management for services marketing’ journal of management and marketing research shaw, m., j. (2006), ‘an introduction’, e-commerce and the digital economy, new york: m.e. sharpe. singh, m. (2002), ‘e-services and their role in b2c e-commerce’, managing service quality, vol. 12(6), pp. 434-446. smith, a., d., rupp, w., t. (2003), ‘strategic online customer decision making: leveraging the transformational power of the internet’, online information review, vol.27(6), pp.418-432. solomon, m., bamossy, g., askegaard, s., hogg, m., k. (2006), consumer behaviour, a european perspective, (3rd edition), essex: pearson educated. stephen, a., t., toubia, o. (2009), ‘explaining the power-law degree distribution in a social commerce network’, social networks, vol.31(4), pp.262-270. turan, a., h. (2011), ‘internet shopping behaviour of rural customers: comparison of two competing models’, journal of theoretical and applied electronic commerce research, vol.7(1), pp.77-93. uygun, m., ozciftci, v., divanoglu, s., u. (2011), ‘factors affecting online shoping behaviour of consumers’, organizasyon ve yonetim bilimleri dergisi, vol.3(2), pp.373-385. van raaij, w,, f. (19997), ‘ globalisation of marketing communication?’, journal of economic psychology, vol.18, pp.259–270. sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 38 dwi astutiek innovational model for cooperation membership development through human resources development innovational model for cooperation membership development through human resources development dwi astutiek sunan giri university surabaya, indonesia email: dwiastutik19@gmail.com abstract the model for fostering cooperative members has so far been limited to general and ceremonial matters, which is not sustainable, resulting in the cooperative becoming ill and possibly collapsing. for the development of cooperative members so that they can give meaning and be carried out in a sustainable manner, an innovation model is needed in coaching through the concept of human resource development. the purpose of this study is first, to describe the innovative model of fostering cooperative members. second, to answer the question of survival in relation to family economic independence in an era of uncertainty. this type of research uses a qualitative descriptive approach. data collection techniques were carried out by means of observation, in-depth interviews, and documentation of references and photos/videos. data were obtained from several informants whose number was not determined beforehand, by appointing one key informant. members of cooperatives whose postscript are msme actors. it is necessary to strengthen survival from an uncertain era, namely by involving members to organize their hearts, mapping their own potential, conducting market mapping, having strong faith in doing business and surrendering to the giver of fortune, expanding relationships, building an entrepreneurial spirit by continuing to innovate in life and always be grateful for destiny to be happy (7m).the results showed that there was an increase in the productivity of cooperative members from the 7m coaching innovation model approach. keywords: human resource development, development innovation model, msme i. introduction after the covid-19 pandemic, the family's economic condition experienced uncertain ups and downs. the issue of layoffs complemented the downturn in economic conditions at that time. a wave of layoffs occurred, as a result of the disruption of business activities in most sectors. as many as 15.6% of workers experienced layoffs and 40% of workers experienced a decrease in income. in independent businesses, the business stopped, namely 40% and some experienced a decrease in production of 52%. this affects 35% of independent businesses without income and 28% of income decreases by up to 50%. (lipi, 2020) what about the fate of micro, small and medium enterprises? conditions like this are felt by many families. along with the conditions of the covid19 pandemic, the era of disruption has made many shifts and even changes to existing work patterns. many types of jobs are starting to disappear because they are considered inappropriate and not the era in the all-digital era. furthermore, new job models emerged that demanded certain skill abilities with innovation according to the character of the work. this is a challenge for the community, whether they are ready to accept change or are left behind because they are unable to keep up with the era. in conditions like this, people are required to think hard to find solutions in order to survive. the community must be very clever in looking for possible opportunities to be able to continue to have a job as a basis for life. cooperatives with built character and culture have partiality for the lower class society. cooperatives base their activities on the principle of a people's economic movement based on the principle of kinship. the presence of cooperatives is expected to help improve the family economy, especially its members. although it is known that there are many problems faced by cooperatives both internally and externally. therefore, an innovation model is needed in fostering cooperative members. cooperative members in this case are msme actors who have experienced many declines in income. the coaching innovation model is carried out so that cooperative members have the ability to survive in unexpected and uncertain situations in the era of disruption. in other words as an effort to improve the family economy. it is predicted that the innovation model for fostering sinergi : jur n al il miah il mu man ajemen volume 13 number 1 m a r c h 2023 39 dwi astutiek innovational model for cooperation membership development through human resources development cooperative members can answer family economic problems. this innovative model for fostering cooperative members has never been done in previous research the question, what is the coaching innovation model carried out in the activities of the al mubarokah sidoarjo cooperative? how can this coaching innovation model respond to the challenges of living in an era of uncertainty in relation to independence and survival? the purpose of this study is first, to describe the innovative model of fostering cooperative members. second, to answer the question of survival in relation to family economic independence in an era of uncertainty. ii. literature review previous research linda subekti et al, (2013) in her research conducted at the office of cooperatives / dinas koperasi and ukm (usaha kecil menengah / small and medium enterprises) which focused on implementing the guidance and development of cooperatives and ukm focusing on renstra (rencana strategis / strategic plan) and renja (rencana kerja / work plan). the results of her research show that the implementation of this strategy has not gone well due to the real conditions in the field which are considered dynamic so that it requires flexible strategic management with internal and external supporting and inhibiting factors. ash nasution & p. hidayat, (2014) in his research analyzed cooperative development strategies using the swot method and the analytical hierarchy process (ahp). because cooperatives are institutionally considered to be more prominent as a social vehicle rather than a role in the economy. cooperatives must be able to provide areas of contribution to empowering the people's economy, otherwise the economy will collapse. this needs to be driven by other economic measures or private equity and state-owned companies. nugraha. a. et al (2021), the results of his research show that the development of cooperatives by the tasikmalaya city government is not optimal. the result is that cooperatives in the city of tasikmalaya are not optimal in strengthening msmes. the recommendations given by the research results need to apply a partnership model with advanced national private enterprises and with bumn/d in developing cooperatives collaboratively. mujib. mi & yudhistira pa (2019), in their research studied cooperative development strategies for community welfare through msmes. know the problems and solutions of cooperative development. this study uses swot analysis to obtain cooperative development strategies for community welfare. the results of the study show that cooperatives have a very strategic position in their success and can compete with other businesses. in previous research and the findings can be a complete reference or even a mirror of successes, failures and existing recommendations. there is a difference in this study which focuses more on describing the model of fostering members who are directly involved in mapping self-potential and the market. theoretical study cooperative based on the 2012 cooperative law no. 17 in chapter 1 article 1 paragraph 1 cooperatives are legal entities established by individuals or cooperative legal entities, with the separation of the wealth of its members as capital for running a business, which fulfills shared aspirations and needs in the economic, social and cultural fields in sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 40 dwi astutiek innovational model for cooperation membership development through human resources development accordance with the values and cooperative principles. based on article 6 paragraph 1 of law no. 17/2012 the main principles of cooperatives: 1. cooperative membership is voluntary and open 2. supervision by members is carried out in a democratic manner 3. members participate actively in cooperative economic activities 4. cooperatives are autonomous and independent business entities 5. cooperatives organize education and training for their members in an excellent way and strengthen the cooperative movement, by working together through a network of activities at the local, national, regional and international levels; and 6. cooperatives work for sustainable development for the environment and society through policies agreed upon by members. the purpose of cooperatives is stated in law no. 17 of 2012 article 4, which is to improve the welfare of members in particular and society in general, as well as being an integral part of a democratic and just national economy. the meaning of the verse is that advancing the welfare of members in particular is a top priority that will have an impact on the welfare of the wider community and be a contribution to the development of the national economy to create an advanced, just and prosperous society. so the success of cooperatives in achieving their goals can be measured by increasing the economic income of their members. according to ash nasution & p. hidayat, (2014) cooperatives are synonymous with a populist economic system and are believed to be an alternative to solving socio-economic problems in indonesia. until now the cooperative movement in indonesia is more dominant and can concretely improve the economic welfare of its members. msmes based on law no. 20 of 2008 concerning micro, small and medium enterprises or msmes. in article 1 paragraph 1 micro enterprises are productive businesses owned by individuals and/or individual business entities that meet the criteria for micro enterprises as regulated in this law. in article 1 paragraph 2 small business is a productive economic business that stands alone, which is carried out by individuals or business entities that are not subsidiaries or not branches of the company they own. controlled, or become a part either directly or indirectly of a medium or large business that meets the criteria for a small business as referred to in this law. in article 1 paragraph 3 medium business is a productive economic business that stands alone, which is carried out by individuals or business entities that are not subsidiaries or branches of the company they own. controlled, or become a part either directly or indirectly with small businesses or large businesses with total net assets or annual sales proceeds as regulated in this law. msmes are a type of business that is proven to be able to donate and make a real contribution to the economy, msmes are even believed to be the main road in the indonesian economy. the strong characteristics of msmes in moving forward and efficiently can encourage the nation's economic development. the use of msmes has proven to be able to maximize the potential of existing resources, because msmes are generally engaged in the local industrial sector and are not dependent on imports. msmes use a variety of unique outputs so that they can compete in the export market. indonesia msme actors can show their abilities on the world stage. (m fikram & nani k, 2022)) although it must be admitted that the speed of serving the needs of the world market is still experiencing significant obstacles and cannot be underestimated. sinergi : jur n al il miah il mu man ajemen volume 13 number 1 m a r c h 2023 41 dwi astutiek innovational model for cooperation membership development through human resources development pp ri no 7 of 2021 concerning ease, protection and empowerment of cooperatives and micro, small and medium enterprises or msmes chapter iii part one paragraph 4 concerning criteria for micro, small and medium enterprises article 35: 1. micro, small and medium enterprises are grouped based on business capital criteria or annual sales results 2. the criteria for business capital as referred to in paragraph 1 are used for the establishment or registration of business activities 3. the criteria for business capital as referred to in paragraph 2 consist of: a. micro enterprises have business capital business capital up to a maximum of idr 1,000,000,000.00 (one billion rupiah) excluding land and buildings for business premises b. small businesses have business capital of more than rp. 1,000,000,000.00 (one billion rupiah) up to a maximum of rp. 5,000,000,000.00 (five billion rupiahs) excluding land and buildings for business premises; and c. medium enterprises have a business of more than idr 5,000,000,000.00 (five billion rupiah) up to a maximum of idr 10,000,000,000.00 (ten billion rupiah) excluding land and buildings. conceptual framework figure 1. theoretical framework theoretical framework this is also in accordance with swanson's theory (1987) human resource development, namely the process of improving organizational performance through the abilities of individuals within the organization. consistent human resource development in direct and indirect, instructional and individual programs and activities that have a positive effect on organizational productivity and profits, r smith (1988). so human resource development in this study organizes learning experiences provided for employees (board members and cooperative members) in a specific time regarding the possibility of increasing performance and or organizational development, nadler and nadler (1989) in (adie ey., reference taking february 21 2023). iii research methods this study uses a qualitative approach, analyzes and uncovers an innovative model of fostering cooperative members in helping them survive and improve the family economy. source of data consists of primary and secondary data. primary data from interviews with informants and key informants using in-depth interviews. interviews with informants were carried out on members of cooperative management, of which 90% had micro, small and medium enterprises. the key informant is the chairman of the al mubarohah cooperative sidoarjo because it is considered the first door in interviews to master problems, have data and is willing to provide complete, in-depth and accurate information. for secondary data taken from references and documents related to administrative data, minutes of monthly member meetings, results of decisions, activity reports complete with photos and development of the cooperative and umkm al mubarokah sidoarjo. snowball sampling used to determine informants because they are more representative in human resource development work productivity sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 42 dwi astutiek innovational model for cooperation membership development through human resources development answering research objectives. determination of informants was obtained based on previous informants without determining the exact amount by digging up information related to the research topic. the search for informants will be stopped after the research information is considered sufficient and sufficient. data collection techniques and instrument development were carried out by means of unstructured interviews by preparing an interview guide as the initial instrument for the interview and coding, followed by development and in-depth interviews. data collection also uses observation and document study, namely primary and secondary documents. this data collection is equipped with a camera, recording and coding. after the data is obtained, then organizing and checking the data, re-code the data that has been collected so that it can be analyzed. stages of data analysis procedures usingthe opinion of miles and huberman as illustrated below in john w. creswell (2010:276-284): figure 2. data analysis in qualitative research iv. result and discussion analysis of government policy in the development of cooperatives and smes based on the literature document data, the government has prepared strict, coherent, measurable and detailed rules both in the laws and government regulations of the republic of indonesia up to the sidoarjo regent's regulations. as a fundamental matter in regulating the indonesian economy, the 1945 constitution was prepared, article 33 paragraph 1 which reads "the economy is structured as a joint venture based on the principle of kinship. starting from the 1945 constitution, the government was required to play an active role in development efforts. one of them is supporting the community by fostering members and developing cooperatives as well as micro, small and medium enterprises (msmes). following law no. 17 of 2012 concerning cooperatives, a number of xvii chapters and 125 articles have been explained in detail. to help protect, facilitate and empower msme actors, law no. 20 of 2008 concerning micro, small and medium enterprises or msmes are continued in government regulation of the republic of indonesia no. 7 of 2021 concerning ease, protection and empowerment of cooperatives and micro, small and medium enterprises or msmes. it was continued by sidoarjo regency as a district that has thousands of small and medium micro business actors who have not been registered or who already have legality. this effort is accommodated and embodied in the spirit of the 2005-2025 rpjpd with the vision: an independent, prosperous and civilized sidoarjo regency. furthermore, it is focused on the five-year development rpjmd in the fourth year 2021-2024 the period of achieving the long-term development vision. the rpjpd contains 32 main program objectives. its relation to welfare and self-reliance the main targets in the rpjpd from the first to the seventh show support for strengthening cooperatives and the people's economy. following are the main titles of the main targets in the rpipd referred to, first, increasing the management of regional own-source revenues in a sustainable manner to meet regional development needs. second, the realization of optimizing tourism sinergi : jur n al il miah il mu man ajemen volume 13 number 1 m a r c h 2023 43 dwi astutiek innovational model for cooperation membership development through human resources development potential that is highly competitive. third, the realization of an environmentally friendly investment climate. fourth, realization of a market-oriented and globally competitive regional economic structure. fifth. realization of solid food security. sixth, the realization of inclusive regional economic growth. seventh, realization of people's economy improvement and empowerment, namely with the policy directions: 1. strengthening community based businesses as a basis for supporting the strength of the regional economy 2. strengthen community-based economic institutions as a basis for supporting the strength of the regional economy 3. strengthening capacity in empowering msmes to strengthen the economy. technically, to implement cooperatives and smes, sidoarjo regent regulation no. 31 of 2017 concerning amendments to the regent's regulation number 81 of 2016 concerning position, organizational structure, duties and functions and work procedures of the office of cooperatives and micro enterprises of sidoarjo regency. cooperative program analysis in general, cooperatives in achieving their goals are measured by increasing the welfare of members, so that activities focus on cooperative development programs that fulfill the main needs of members. based on the results of writings in various scientific journals, development programs have been carried out such as increasing production yields, training to increase the finances of cooperative members, strengthening institutional management, increasing human resources for cooperative management, and strategies for building partnerships. all these activities are ceremonial and momentary. the following is evidence of the findings of nasution ash & p hidayat, (2014), in the hierarchical analysis of cooperative development strategies in the city of medan, it shows an increase in production with the highest value weight of 298, then an increase in human resources (hr) with a value of 190, the role of government with a value of 188, improvement of cooperative management with a score of 129, product price efficiency with a value of 109 and cooperation with other business entities with a value of 086. the findings of nugraha, a., et al (2021) the development of cooperatives by the tasikmalaya city government in the institutional, managerial and financial aspects has been carried out but has not been running optimally because development activities are only based on the annual budget. allocation of one budget/a series of activities for each aspect of cooperative development, msme strengthening has not run optimally due to the limited capabilities of cooperatives. cooperatives have not become business entities that are institutionally, managerially and financially responsible as a result of not yet optimal development activities by the government. the development model is still carried out alone (as a single actor) from apbd funds. in an effort to develop cooperatives, they do not apply a partnership model with the private sector and or with bumn/d. the findings of nugraha, a., et al (2021) the development of cooperatives by the tasikmalaya city government in the institutional, managerial and financial aspects has been carried out but has not been running optimally because development activities are only based on the annual budget. allocation of one budget/a series of activities for each aspect of cooperative development, msme strengthening has not run optimally due to the limited capabilities of cooperatives. cooperatives have not become business entities that are institutionally, managerially and financially responsible as a result of not yet optimal development activities by the government. the development model is still carried out alone (as a single actor) from apbd funds. in an effort to develop cooperatives, they do not apply a partnership model with the private sector and or with bumn/d. from the findings of research journal references in several districts, the average development of cooperative programs based on the experiences of many other cooperatives, was adopted for the main needs of their members. regarding cooperatives in sidoarjo, based on the results of interview a on 8 november 2022, information was obtained: sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 44 dwi astutiek innovational model for cooperation membership development through human resources development "we see that in general the needs of an organization are about managerial and human resources. as for information or directions from the district cooperative service, we are asked to improve management first administratively complete it " this was confirmed by d when he called directly on november 10, 2022. d is a member of a cooperative who has experience being involved in or invited to the activities of the cooperative service, submitted: "that's right mom, we were invited to a socialization event for new entrepreneurs, business motivational seminars. training and mentoring is very lacking, on average it is still ceremonial and there is no continuation.” analysis of the innovation model for cooperative development of msme actors through hr development the characteristics of the informants are used to find out the pattern of fostering cooperative members based on geographical potential, cultural potential, religious practice, age, occupation and educational background. this is expected to provide a fairly clear and detailed description of the condition of the respondents in relation to the problems and objectives of this study. from the results of the study, it was found that the majority of cooperative management members were women aged 35-55 years who worked as traders either selling at home or at the market. the average cooperative member earns around idr 150,000 – 200,000 per day and idr 6,000,000 – 7000,000 per month. the following are some of the interview results: the background of the purpose of establishing a cooperative can influence the success of the organization. when asked about the establishment of the cooperative, based on the results of the interview at b on october 11, 2022, the 'seloso-an' routine meeting: “the cooperative was formed in december 2020, during the dissolution of an activity that brought together thoughts and enthusiasm to prepare the leaders of sidoarjo regency. in the agenda, it was originally planned to be disbanded, but in fact they agreed to maintain friendly relations which are meaningful for people, in other words, people. cooperatives are the right choice and a joint choice as a place to continue friendship to help all members in improving the family economy. cooperatives are believed to be able to accommodate the needs of their members. cooperatives will be tough with enthusiastic, unified human resources and coaching programs that are on target. during the event, it was immediately named al mubarokah. continue the interview with b about managing management: "at the beginning of the establishment of honest cooperatives, they are still groping and figuring out how to take care of legality, preparing member recruitment forms, collecting data on the ability of members to prepare agreements to become members of the cooperative. in the beginning, of course, you haven't thought about the coaching program, what else is the right, conceptual and detailed coaching model. fortunately, there were several founding figures who were postscript members of the sidoarjo branch of muslimat nu and pw muslimat nu, so they were used to muslimat jam'iyah activities, so during the early days after their formation there were no difficulties in filling out their regular meeting activities. activities carried out with the intention of hospitality and filled with meaningful activities such as information on knowledge about cooperatives or about business in light discussions. so for cooperative management it is still very simple, the organization runs slowly but is taken care of with certainty. keep moving and you can see progress. among the administrators at least there are those who know about cooperatives. there are also three members who have experience in cooperative affairs and organizational finance. so you don't worry about financial circulation. even though at first we were a little hesitant, because those who were given the task were people who had long been known and could be trusted, we finally entrusted them to those who were appointed.” the findings obtained in the management of cooperative management are carried out based on sober experience and run in a simple but strong sinergi : jur n al il miah il mu man ajemen volume 13 number 1 m a r c h 2023 45 dwi astutiek innovational model for cooperation membership development through human resources development commitment so that cooperatives can be realized. it is proven that the legality management process from the ministry of law and human rights continues to be carried out until it is finished. the enthusiasm is that cooperatives that are formed together can be useful in helping the family economy of the members contained in the vision and mission of the organization. it was seen during the observation on november 8, 2022, that the members who were present wrote absenteeism, they are people who live in the sidoarjo district from various scattered sub-districts. as is known, the natives of sidoarjo are those with a religious background, meaning people who usually take part in recitation activities or associations. the culture and habits of cooperative members are closely related to the routine practice of nahdlatul ulama'. this was conveyed by researchers because it will affect the leadership style and coaching that will be provided by the head of the al mubarokah cooperative from the results of a mutual agreement. the head of the al mubarokah cooperative is led by a person who is usually called mrs. nyai. when interviewed, mrs. nyai a on november 8, 2022 said, “this cooperative is just starting out. many people really need and need help to improve their economy, especially during a pandemic. among them are members of our team or members of our congregation who incidentally are many traders, both selling in the market and at home. so from the idea of setting up a cooperative i think this will really help their business by giving us a savings and loan program. of course, god willing, it will have an impact on improving the family economy. in addition to the initial intention of this meeting was to continue the friendly relations that had been established so far. when asked about the legality of the al mubarokah cooperative, mrs. nyai a said: “indeed, since it was formed, we have continued to strengthen the institution step by step, we have prepared organizational legality by continuing to hold regular meetings every month. this is done together with coaching on the second tuesday of the week. until april 2022 the legality of the notary and the ministry of law and human rights certificates had just been published. coordination was carried out several times with the cooperative service and even invited the cooperative to routine meetings of cooperative management and members. regular selosoan meeting activities are always held at the al qur'an al mahsun islamic boarding school, pucang street sidoarjo as the secretariat of the al mubarokah cooperative which has been determined at the member meeting." when secretary b was interviewed by telephone on december 5, 2022 about the educational background of cooperative members: “the average high school graduate is around 70 percent, there are only junior high school graduates, but a few are around 15-20 percent. as for those with higher education, around 10 percent.” this educational background needs to be asked because to measure the language of coaching, methods and understanding of acceptance when getting additional knowledge and skills when coaching is carried out. back to the meeting the following tuesday, december 13, 2022, an interview was conducted with the head of the cooperative, mrs. nyai a, about what considerations were made when determining the al mubarokah cooperative program: “as a basis for consideration in determining the program, it is necessary to map the existing potential. i invite all administrators to jointly map their own potential: first, map the human resources that we have both knowledge and experience about cooperatives; second, identify the educational background of the members; third, mapping the economic background which postscript is msme entrepreneurs; fourth, observing the customs and culture of the members; fifth, observing the characteristics of religious amaliyah which are carried out every day, and; sixth, a map of environmental or geographical potential and market players”. when mrs. nyai a was asked about the member development program, she explained in detail: sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 46 dwi astutiek innovational model for cooperation membership development through human resources development “the program we offer is not far from the needs of the members' lives. but we have to use the right method to be relevant and on target by using the 7m construction model innovation strategy. that is, by involving members in determining the program with the 7m approach, among them: first, inviting everyone to set the heart: "try as hard as you can, give up and make life" done by reading the routine practice before the meeting with the intention of reading surah fatihah and surat al ikhlas 100 times, continuing to pray together this activity is done with the motivation that everything we do should start with bismillah, then after what we do and strive for then everything is handed over to the one who gives sustenance and life's destiny. so the spirit strives as hard as possible, but remains in full surrender to the creator. this is instilled in all members to be a creature that is always grateful for the blessings of all the efforts that have been made. the purpose of inviting people to organize their hearts is so that members have self-reliance from any condition and remain in surrender. if what happens is not in accordance with what was hoped for and tried, it remains a self-identity that is always enthusiastic and does not easily falter or fall.; second, map your potential. before making a decision and determining the attitude in taking steps, members are invited to map their potential so that they do not make mistakes in taking steps. mapping one's potential is done to find out in the framework of self-awareness of one's abilities and measure one's potential. then only determine the attitude / decision that suits the existing potential. third, simple market mapping based on customer/consumer needs. market mapping is done in order to identify, map consumer needs and business profits based on market segmentation.; fourth. have strong confidence in making business decisions and believe success is in sight. in taking a step, you need the certainty of your heart to act in order to succeed, so that the steps you take are based on a mature calculation.; fifth, strengthening relationships; in all matters, including business, relationships are inseparable as one of the most important factors in success. so it is important to develop and expand relationships.; sixth, develop the spirit of an entrepreneur by continuing to innovate in life. innovation is always needed in every step. innovation is a new thing, a new idea in business, so that the product is still accepted by the market.; seventh, grateful for destiny to be happy. being grateful is a must, the way i invite members of the cooperative to end a journey from life's endeavors is to always be grateful so that we can be blessed”. market mapping carried out with cooperative members as business actors is a very appropriate strategy because they are considered as actors who must be involved based on the potential of each region where the business is established. in order to know directly map to find solutions to the problems encountered. this involvement as part of one of the effective coaching hit the target. mapping the market is a creative step that will help someone produce lots of interesting new ideas (according to melvin l silberman) based on problem conditions in the field. according to piaget, this theory states that knowledge comes from action, and a person's cognitive development largely depends on how far a person manipulates and actively interacts with his environment. with a mind map, someone will then build their own thinking schemes and build concepts through experience (in ahmad 2022). the findings of the development innovation model for cooperative members, based on the theoretical framework, appear as follows: figure 3. cooperative member development innovation model development of cooperative members through human resource development for msme actors hits the target with the right approach. namely sinergi : jur n al il miah il mu man ajemen volume 13 number 1 m a r c h 2023 47 dwi astutiek innovational model for cooperation membership development through human resources development by inviting active members to be involved in the preparation of plans and also during the implementation of coaching. so that it appears that there is an element of participatory members and hr development carried out by the management has increased the work productivity of members. this is proven in quality and quantity. the following are several aspects that have improved: first, product quality has improved, in terms of improved packaging, permits and halal labels which have begun to be processed; second, the number of products marketed increases in volume and type; third, increasing knowledge and abilities or skills; fourth, stability in belief/more confidence to try and pray and surrender to the giver of sustenance; fifth, maturity in doing business based on self-experience and the experiences of other cooperative members from the brainstorming activities carried out; sixth, increased member loyalty in the form of support for the implementation of cooperative programs that are increasingly diligent in attending and seventh, increasing the number of members by inviting relatives, neighbors and friends to become members of the cooperative. this is evident from the fact that the number of members, which initially consisted of 18 members, now two years later has reached 45 members. not only that, members are also responsible for providing information, inviting them to be active in meetings and taking responsibility for smooth loan payments. this is done because members who invite relatives, neighbors and friends are considered as sub-coordinators in membership development; eighth, for the initial financial amount, the cooperative only had 13 million capital, now it has reached 72 million. this figure was conveyed by the treasurer as of february 14 2023 during a seloso'an meeting. the increase in the number of cooperative members from msme actors has an effect on increasing the amount of capital investment owned, because they participate in saving and loan transactions in order to strengthen business existence which of course also has an impact on increasing the family economy. innovation is very useful in all areas of life. understanding a number of things related to innovation is indispensable, including innovation in fostering msme businesses through cooperative programs. the aim of innovation in coaching is so that cooperative members have the ability to always innovate in their lives, have independence and entrepreneurial leadership skills so they can survive in any condition. v. conclusions hr development is very necessary because it has important aspects for increasing hr productivity and has certain goals that must be achieved for the progress of a company or organization. human resource development carried out in the coaching innovation model for cooperative members of msme actors is to involve members to organize their hearts, map their own potential, conduct market mapping, have strong faith in doing business and surrender to the giver of sustenance, expand relationships, build an entrepreneurial spirit by continuing to innovate in life and always be grateful for destiny to be happy (7m). the findings of increased productivity indicate that the innovative model of fostering cooperative members for msme actors is considered more effective, showing very significant results and can be recommended. because it is proven that members have independence and leadership skills with an entrepreneurial spirit so that they are able to survive in any condition, this has implications for improving the family economy. reference adie ey., module 1, hr development concept http://repository.ut.ac.id/4810/1/ekma4366m1.pdf ahmad, 2022; definition of mind mappping: benefits, types, theory and steps to make it; gramedia blog; https://www.gramedia.com/bestseller/pengertian-mind-mapping/ fikram. m & k. nani, (2022); analysis of competition strategy with a swot analysis approach to increase profits for salespeople of umkm knowledge in ketajen village, sidoarjoekspektra : journal of business and management vol 6 http://repository.ut.ac.id/4810/1/ekma4366-m1.pdf http://repository.ut.ac.id/4810/1/ekma4366-m1.pdf https://www.gramedia.com/best-seller/pengertian-mind-mapping/ https://www.gramedia.com/best-seller/pengertian-mind-mapping/ sinergi : jurn al il miah il mu man ajemen, volume 13 number 1 m a r c h 2023 48 dwi astutiek innovational model for cooperation membership development through human resources development no.2 /august 2022 page 72-156 sinta 4https://doi.org/10.25139/ekt.v6i2.5149 indonesia dictionaryhttps://kbbi.web.id/inovasi.,htt ps://kbbi.web.id/model lianda s, et al, (2013);implementation of the cooperative and small and medium enterprise development and development strategy (study at the office of cooperatives and smes in malang city) journal of public administration (jap), vol 1, no.1 universitas brawijaya malang lipi research results 20 may 2020 lipi cooperation, legal and public relations bureau http://lipi.go.id/berita/dampak-daruratvirus-corona-terhadap-tenaga-kerjaindonesia/22034#privacy_policy_ina maghfiroh a, (2021) analysis of human resource development in a sharia perspective, scientific journal of islamic economics, issn: 2477-6157; e-issn 2579-6534 megi tindagen, et al (2020),the role of women in improving the family economy (case study: women field workers in west lemoh village, east tombariri district, minahasa regency). efficiency scientific periodical journal volume 20 no. 03 of 2020 mujib. mi & yudhistira pa, 2019;cooperative development strategy in efforts to build community welfare,derivatives : journal of management vol. 13 no. 2 november 2019 (issn print 1978-6573) issn online 2477-300x nasution ash & p hidayat, (2014) analysis of cooperative development strategies in medan city using swot analysis methods and analytical hierarchy process (ahp)journal of economics and finance vol.2 no.7 medan 2014 https://media.neliti.com/media/publications/1 4803-id-analysis-strategi-developmentkoperation-di-kota-medan-dengan-methodeanalysis-swo.pdf nugraha. a, et al (2021), cooperative development model in strengthening msmes in tasikmalaya city, journal ad' ministrare fis unm volume 8, issue 2, july-december 2021, p issn:2407-1765, eissn:2541-1306 sinta3dois:https://doi.org/10.26858/ja.v8i1.2 3964 etania, riyanti, (2022) hr development, definition, effective programs and strategies, hr note.asia hr development: definition, programs, and effective strategies | | hr notes indonesia swanson, richard a. holton iii, elwood f (2001) foundations of human resource development: today and tomorrow, connecting: information age publishing. law of the republic of indonesia no. 20 of 2008 concerning micro, small and medium enterprises law of the republic of indonesia no. 17 of 2012 concerning cooperatives indonesian wikipedia, the free encyclopedia https://id.wikipedia.org/wiki/keluarga http://lipi.go.id/berita/dampak-darurat-virus-corona-terhadap-tenaga-kerja-indonesia/22034#privacy_policy_ina http://lipi.go.id/berita/dampak-darurat-virus-corona-terhadap-tenaga-kerja-indonesia/22034#privacy_policy_ina http://lipi.go.id/berita/dampak-darurat-virus-corona-terhadap-tenaga-kerja-indonesia/22034#privacy_policy_ina https://media.neliti.com/media/publications/14803-id-analisis-strategi-pengembangan-koperasi-di-kota-medan-dengan-metode-analisis-swo.pdf https://media.neliti.com/media/publications/14803-id-analisis-strategi-pengembangan-koperasi-di-kota-medan-dengan-metode-analisis-swo.pdf https://media.neliti.com/media/publications/14803-id-analisis-strategi-pengembangan-koperasi-di-kota-medan-dengan-metode-analisis-swo.pdf https://media.neliti.com/media/publications/14803-id-analisis-strategi-pengembangan-koperasi-di-kota-medan-dengan-metode-analisis-swo.pdf https://ojs.unm.ac.id/administrare/issue/view/1467 https://ojs.unm.ac.id/administrare/issue/view/1467 https://id.hrnote.asia/orgdevelopment/kunci-pengembangan-sdm-200909/ https://id.hrnote.asia/orgdevelopment/kunci-pengembangan-sdm-200909/ https://id.hrnote.asia/orgdevelopment/kunci-pengembangan-sdm-200909/ sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 82 82 , slamet.riyadi@unitomo.ac.id the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya lelono diyah setiyowati 1*), slamet riyadi 2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: l.diyah.setiyowati@gmail.com 1*) 2) abstract. this study aims to analyze the effect of service quality (x1), price (x2), image (x3), on student loyalty (y), stie pemuda students with student satisfaction as an intervening variable. the population in this study were all stie pemuda students, the sampling technique used was stratified random sampling with 119 respondents taking data through a likert scale model questionnaire. this study uses the path analysis test with the help of the spss for windows 16.0 computer program. the results of this study indicate that service quality has a positive and significant effect on student satisfaction. price has a positive and significant effect on student satisfaction. campus image has a positive and significant influence on student satisfaction. service quality has a positive and significant influence on student loyalty. price has a positive and significant effect on loyalty. campus image has a positive and significant influence on loyalty. student satisfaction has a negative effect on loyalty. service quality has a positive and significant influence on student loyalty through student satisfaction. prices have a positive and significant effect on student loyalty through student satisfaction. campus image has a positive and significant influence on student loyalty through student satisfaction. keywords: service quality; price; campus image; loyalty; and student satisfaction. i. introduction quality customer service is the key to success and the basis for building a successful and profitable company. one indicator to determine the quality of human resources is the level of knowledge possessed, because knowledge is the main resource for social, economic and political development. thus placing education and training services in a decisive position, because knowledgeable humans are the output of an education or training system, both formal, non-formal and informal. in this era of globalization, quality is seen as one of the tools to achieve competitive advantage, because quality is one of the main factors that determine the choice of products and services for consumers. the goal of a business organization is to produce goods and services that satisfy consumers. consumer satisfaction will be achieved if the quality of the products and services provided is in accordance with their needs. education is also a very fundamental factor in efforts to improve the quality of life, and at the same time as a determining factor for social and economic development towards better conditions. the education received will affect the quality of students. the expected education is education that can produce superior graduates who have competence so they can compete in the world of work. customers can be divided into community users, graduates, parents and students who directly receive, enjoy and experience educational services. customers will express their feelings about the quality of service they receive. satisfaction and dissatisfaction with services can be a builder or destroyer of a system. it is the voices of students that need to be heard if you want to improve service quality. services that exclude student voices are a wrong strategy, because quality is not determined by producers but by consumers. producers can only make goods and services, while those who value these goods and services are consumers. satisfaction is very important for good marketing. services such as universities must be able to provide high satisfaction to their students. in its development, stie pemuda surabaya experienced many things that were not always expected by the head of stie pemuda surabaya or were not aware of its existence, but could have a strong influence in facing competition in providing services to the community. various internal aspects that deserve attention are teaching staff, staff regeneration, discipline of teaching staff, speed and frequency of service by administrative staff, curriculum, condition of facilities and so on. meanwhile external factors are the social conditions of society, government policies, demands of the world of work and others. in providing services to the community, the quality of service needs to be examined on an ongoing basis. indirectly, student complaints were heard about the performance of stie pemuda surabaya, mailto:slamet.riyadi@unitomo.ac.id mailto:l.diyah.setiyowati@gmail.com1 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 83 which was translated as services that were not in accordance with what they expected, voices of lack of satisfaction with the services of stie pemuda surabaya students who have entered a tertiary institution certainly have many expectations such as job opportunities, career development, and satisfaction, pleasure, and pride as students at the tertiary institution. the sacrifices made by students, be it the cost of education, the time spent which can be counted as an opportunity cost, and their hard work following lectures, must be balanced by student satisfaction. all value chains in higher education must create added value for students. all personnel, as well as the educational process as the main value chain must be able to provide satisfaction in service to students. formulation of the problem based on the background, the formulation of the problem in this study is: 1. does service quality have a significant effect on satisfaction? 2. does the price have a significant effect on student satisfaction? 3. does image have a significant effect on student satisfaction? 4. does service quality have a significant effect on student loyalty? 5. does the price have a significant effect on student loyalty? 6. does image have a significant effect on student loyalty? 7. does student satisfaction have a significant effect on student loyalty? 8. does service quality have a significant effect on loyalty through student satisfaction? 9. does price have a significant effect on loyalty through student satisfaction? 10. does image have a significant effect on loyalty through student satisfaction? ii. literature review service quality according to parasuraman et.al in lupiyoadi and hamdani, (2006: 181) service quality is defined as how far the difference between reality and customer expectations/expectations for the service they receive/obtain. referring to the notion of service quality, the concept of service quality in higher education institutions is a responsiveness and reality of the services provided by higher education institutions. quality of service must start from the needs of students and end on student perceptions according to philip kotler (2005). according to fandy tjiptono (2006: 121) there are various categories or types of service elements which include the following: 1) information, 2) consultation, 3) order taking, 4) hospitality, 5) caretaking, 6) exception, 7) billing/account submission, 8) payment in the form of self-service payments by consumers, according to fandy tjiptono (2006: 121) there are various determinants of service quality, namely: 1. information: how product information and other information, for example: services fulfill or conform to consumer desires. if consumers receive information from the company or employees clearly, it will further improve the quality of service in the eyes of these consumers. 2. consultation: consultation through advice, collaboration, counseling. if the company provides financial counseling and good collaboration, this means that the quality of service is getting better. 3. order taking: how to order, for example as a member, via telephone and available facilities. if available and members, then there are adequate facilities from a company then it shows that the company has added value in the eyes of its consumers. 4. hospitality: friendliness and courtesy of employees, for example in greeting. if employees are friendly and polite, it means that a company has good service quality in the eyes of its consumers. 5. caretaking: caring for consumer needs such as attention, giving empathy. if employees have attention and give empathy to the company, it means that they have good service quality. 6. exceptions: how to solve problems or provide solutions to consumers. if the company provides a solution or problem solving to its consumers, it means meeting consumer expectations. 7. billing: billing method, company accounting activity system. if the company has a good way of collecting company accounting activity funds, it means that the company has good service quality. 8. payment: payment methods such as self-pay, autodebit, etc. the more complete the method of payment and the more practical it means an added value in the eyes of consumers. in essence, measuring the quality of a service or product is almost the same as measuring customer satisfaction, which is determined by the variables perceived expectations and performance. in order to obtain good and quality service or product management, the company must recognize and pay attention to the five gaps related to the causes of company failure. tjiptono (2011: 80) suggests the five gaps as follows: 1. gap between expectations from consumers and perceptions by management. 2. management does not always get a quick sense of what customers want. the occurrence of this gap is generally caused by a lack of effective communication between subordinates and superiors, lack of marketing sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 84 84 research and marketing research that is not utilized, and too many levels of management. 3. gap between perception by management and quality or product specifications. management is able to sense exactly what consumers want, but management does not set a specific performance standard. gap between service or product quality specifications and delivery method. company employees are poorly trained to work beyond limits and often cannot or do not want to meet standards especially when they are faced with conflicting standards. 4. gaps between the delivery of services or products and external communications. consumer expectations are influenced by statements made by company representatives and advertisements. this gap often occurs due to inadequate horizontal communication and a tendency to overpromise. 5. gap between perceived and expected service or product. discrepancies occur when consumers measure the performance or achievements of the company in a non-uniform way and misperceive the quality of the service or product there are five dimensions of service quality according to parasuraman in lupiyoadi (2006), namely: a. tangibles, or physical evidence, namely the company's ability to demonstrate its existence to external parties. what is meant is that the appearance and capabilities of the company's physical facilities and infrastructure and the condition of the surrounding environment are concrete evidence of the services provided. b. reliability, or reliability, namely the company's ability to provide services as promised accurately and reliably. c. responsiveness, or responsiveness, is a willingness to help and provide fast and appropriate service to customers, by conveying clear information. d. assurance, or guarantees and certainty, namely knowledge, decency and abilityemployees of the company to foster a sense of trust in customers to the company. it consists of several components including communication, credibility, security, competence and courtesy. e. empathy, that isgiveattentionsincere and individual or personal nature given to customers by trying to understand customer desires. for example, a company must know the specific customer wants from the physical form of the product or service to the right distribution. price or services. swastha (2006) defines price as the amount of money needed to get a number of combinations of products and services. meanwhile, according to kottler and armstrong (2008) price is the amount of money given or the amount of money sacrificed by customers to benefit from owning or using services or products. kotler and amstrong (2010) argue that there are 5 pricing strategies, namely: 1. mark up pricing the selling price is determined based on the expected profit presentation, added to the overall production costs as profit or profit. 2. target return pricing the company determines the price level that will generate returns with a predetermined target. 3. perceived value pricing the price is determined based on the consumer's assessment of the product, if the consumer evaluates the product high then the price set or the service product is high. 4. going rate pricing existing prices follow existing market prices based on selling prices set by competitors. 5. sealed bid pricing price is set based on the firm's guess of how much a competitor will charge, not its own costs and demand which are used when the firm wants to win a product. 6. according to basu swatsha (2010), several factors that usually influence pricing decisions include: 1. economic conditions, 2. supply and demand, 3. elasticity of demand, 4. competition, 5. costs, 6. manager's goals, 7. command control. pricing methods according to kotler and amstrong (2010) include: 1. skimming pricing the strategy is implemented by charging a high price for a new product during introduction, then lowering the price when competition becomes tight. 2. penetration pricing. companies try to introduce products at low prices in the hope of large sales volumes in a relatively short time. 3. prestige pricing prices are used by customers as a measure of the quality of goods or services. thus, when the price is reduced to a certain level, the level of demand also decreases. 4. price lining used when a company sells more than one different type of product. odd-even pricing / odd pricing is used to influence consumer thinking. 5. demand-backward pricing companies estimate the price levels consumers are willing to pay for relatively expensive products. kotler & keller, (2013: 405) states that price is the amount of money exchanged to consume goods sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 85 6. bundle pricing. a marketing strategy that uses package prices for two or more products. according to tjiptono (2008), there are 4 objectives of pricing, namely: 1. profit oriented goals 2. volume oriented goals 3. image-oriented goals 4. price stabilization objective according to kotler and amstrong (2008:278), there are four indicators that characterize prices, namely: 1) affordability, 2) suitability of price with product quality, 3) price competitiveness, and 4) suitability of price with benefits. campus image according to bill canton in s.soemirat & adrianto. e (2007) provides an understanding of image as what is thought, the result of actions, the public's self image of good companies that are intentionally created from an object, person or organization. meanwhile, according to kasali (2003) image is a thought that arises because of knowledge and understanding of something that is truly real. this knowledge and understanding itself arises because of information. according to liou (2009), there are 4 parts of corporate image, including: 1. moralities (morality). morality is related to how a company has morals towards the environment and social. morality includes: a) charity activities (social activities), the company carries out various social activities for the surrounding community. b) eco-friendly activities, companies are able to carry out production processes and produce products that are environmentally friendly. 2. managements (management) management is related to how a company is well managed. management includes: a) employee skills (staff expertise), the ability of workers is expected to increase customer satisfaction. b) teamwork (collaboration), collaboration between workers in the company. 3. performance performance is related to the company's performance in carrying out its business activities. performance includes: a) reasonability of price, suitability of the price paid by consumers with product quality b) promotional activities (promotional activities), promotional activities are able to attract the attention of consumers. c) advertisement (advertising), advertising can attract consumers thereby boosting revenue for the company. d) selling channel, the company provides convenience for conducting transactions. 4. service (services) services related to how companies satisfy consumers. a) speed of service, fast service provided to consumers. b) handling complaints (handling complaints), how staff handle complaints from consumers. c) focussing on customer's need (focus on customer needs), the company can meet customer needs. there are several factors that influence brand image schiffman and kanuk (2007) inhestanto. web mentions the factors forming a brand image, namely: (1) quality or quality, related to the quality of goods offered by manufacturers with certain brands. (2) trusted or relied upon with regard to opinions or agreements formed by the community about a product that is consumed. (3) the uses or benefits associated with the function of a product that can be utilized by consumers. (4) price, which in this case is related to the high or low or the amount of money spent by consumers to influence a product, can also affect the long-term image. (5) the image that is owned by the brand itself, namely in the form of views, agreements and information related to a brand of a particular product. (6) according to keller (2000) inhestanto. web, measurement of brand image can be done based on aspects of a brand, namely: (1) brands are easy to remember. (2) brands are easy to recognize. (3). good brand reputation. according to arwanda et al. (2014), there are 3 (three) image indicators, namely: 1. high appreciation from the environment, 2. information about producing graduates who are easy to get a job, 3. information about having teachers who are very competent in their fields. loyalty customer loyalty is a manifestation and continuation of consumer satisfaction in using the facilities and services provided by the company, as well as to remain a customer of the company (fornell in mouren margareta, 2004: 79). according to oliver (in hurriyati, 2005), loyalty is a deeply held customer commitment to re subscribe or re-purchase selected products/services consistently in the future, even though situational influences and marketing efforts have the potential to cause customer behavior. there are two factors that determine loyalty according to griffin (2009:20-22), namely: a. high attachment to a particular product or service compared to a potential competitor's product or service. the attachment that a customer feels sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 86 86 towards a product or service is formed by two dimensions, namely: the level of preference (how much the customer believes in a particular product or service) and the level of perceived product differentiation (how significantly the customer differentiates a particular product or service from other alternatives). b. repeated purchases four different types of loyalty arise when attachment is low and high. premium loyalty is the type of loyalty that can be increased the most, occurs when there is high attachment and the level of repeat purchases is also high. at the highest level of preference, people are proud to find and use certain products and are happy to share their knowledge with friends and family. stages in loyalty according to nova (in ramadiansyah, 2010), namely: 1. cognitive usually customers become loyal first on the cognitive aspect. cognitive loyalty is based more on functional characteristics, especially costs, benefits and quality. if these three factors are not good, it will be easy for customers to switch to other products. 2. affective the emergence of this affective loyalty is driven by the satisfaction factor that causes liking and makes the object a preference. at this stage, customer vulnerability focuses more on three factors, namely dissatisfaction with existing brands, persuasion from marketers or customers of other brands, and attempts to try other products. 3. conative the next stage is conative loyalty, which is a loyalty that includes a deep commitment to do something, for example to make a purchase. 4. action where the intention to do develops into behavior and action. intention followed by motivation is a condition that leads to readiness to act and the desire to overcome obstacles in carrying out that action. customers who have this loyalty give little or no opportunity for customers to switch to other products. zeithaml et al. (1996) stated that the ultimate goal of a company in establishing a relationship with its customers is to form strong loyalty, while indicators of strong loyalty are: 1) say positive things, is to say something positive about the product consumed. 2) recommend to someone, is to recommend a product that has been consumed to a friend. 3) repurchase intention, is a repurchase made of products that have been consumed. student satisfaction according to kotler (2007: 177) customer satisfaction is the level of one's feelings after comparing the perceived performance (results) compared to their expectations. kotler & keller (2012) argues, satisfaction is a person's feelings of pleasure or disappointment resulting from comparing the product's perceived performance (or results) with their expectations. factors that affect student satisfaction can be categorized into three categories, namely: 1) factors related to the product (product quality, the relationship between product value and price, product form and product reliability according to customer desires) 2) factors related to service (include: guarantee and response as well as ways of solving problems) 3) factors related to sales experience (covering employee experience and convenience and comfort). according to kotler (2005:72) tools for tracking and measuring customer satisfaction are: 1. complaint and suggestion system customer centered organizations make it easier for their customers to submit suggestions and complaints, by providing toll-free hot lines. companies also use websites and e-mail for fast two-way communication. 2. customer satisfaction survey responsive companies measure customer satisfaction directly with periodic surveys, while collecting customer data the company also asks questions to measure repurchase intention and measures the tendency or willingness to recommend the company and brand to others. 3. demon shop companies can pay people to act as prospectors to report strong points and weak points experienced when buying company and competitor products or in a somewhat similar way to managers calling their own company to ask questions and complaints in terms of how to handle the phone. 4. lost customer analysis companies should contact customers who have stopped buying or who have switched to other suppliers, to learn the reasons for the incident. it is important not only to conduct interviews with customers immediately after stopping buying, it is also important to monitor the rate of customer loss. according to irawan, 2002 the indicators of customer satisfaction used are: 1. feelings of satisfaction (in the sense of being satisfied with the product and service) that is an expression of feelings of satisfaction or dissatisfaction from customers when receiving good service and quality products from the company. 2. fulfillment of customer expectations after purchasing a product that is whether or not the quality of a product or service after purchasing a product meets the expectations that the customer wants. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 87 3. always buy products that is, customers will continue to use and continue to buy a product if the expectations they want are achieved. conceptual framework hypothesis the hypothesis in this study is as follows: h1 service quality has a significant influence on student satisfaction h2 price has a significant influence on student satisfaction h3 image has a significant influence on student satisfaction h4 service quality has a significant influence on student loyalty h5 price has a significant influence on student loyalty h6 image has a significant influence on student loyalty h7 student satisfaction has a significant influence on student loyalty h8 service quality has a significant influence on student loyalty through student satisfaction h9 price has a significant effect on student loyalty through student satisfaction h10 campus image has a significant influence on student loyalty through student satisfaction iii. research methodology the analysis model of this research uses a path analysis model with the help of a computer program spss for windows 16.0.path analysis is part of the regression model that can be used to analyze causal relationships between one variable and another. the causal relationship system involves two types of variables, namely independent variables or better known as exogenous variables which are usually symbolized by letters 1,2,..., and the dependent variable or the affected variable, which is known as the endogenous variable which is usually symbolized by a letter 1, 2,..., . in general, the multiple linear regression equation according to sugiono (2004:192) can be written as follows: y = a + b1 x1 + b2x2+ b3x3 + e where : y = student loyalty a = constant b1,…b3 = regression coefficients of independent variables 1 to 3 x1 = independent variable of service quality x2 = price independent variable x3 = campus image independent variable e = error (confounding variable outside the independent variable) operational definition and variable measurement operational definition variable operational definition is the meaning of the variable (which is expressed in the definition of the concept) operationally, in practice, in reality within the scope of the research object/object studied. the independent variable (x) is a variable that can affect changes in the dependent variable and has a positive or negative relationship. the independent variables in this study are: a. service quality (x1) service quality is defined as how far the difference is between reality and customer expectations /expectations for the service they receive/obtain. service quality has 5 (five) indicators, namely: 1. tangibles or physical evidence 2. reliability 3. responsiveness 4. assuranceor guarantee 5. empathy or concern. b. price (x2) price is the amount of money exchanged to consume goods or services. prices have 4 (four) indicators, namely: 1. affordability 2. price match with product quality 3. price competitiveness, and 4. price match with benefits. c. image (x3) image is what comes to mind, the result of actions, the public's self-image of a good company that is intentionally created from an object, person or organization. image has 3 (three) indicators, namely: 1. high appreciation from the environment, 2. information about producing graduates who are easy to get a job, 3. information about having teachers who are very competent in their fields. d. student loyalty (y) customer satisfaction is the level of one's feelings after comparing the perceived performance (results) compared to their expectations. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 88 88 student loyalty has 3 (three) indicators, namely: 1. say positive things/say positive things 2. recommend to someone/recommend to someone 3. repurchase intention / intention to buy back e. student satisfaction (z) customer loyalty is a manifestation and continuation of customer satisfaction in using the facilities and services provided by the company, as well as to remain a customer of the company. student satisfaction has 3 (three) indicators, namely: 1. feelings of satisfaction. 2. fulfillment of customer expectations after purchasing the product. 3. always buy products. variable measurement the type of data in this research is quantitative research with data sources obtained by researchers in the form of: primary data, namely data or information collected and obtained directly through distributing questionnaires to respondents or samples. secondary data, namely data obtained from documents or records from companies related to the problem being researched or from electronic mass media. the data collection process was carried out through direct interviews using questionnaires to respondents or samples to obtain the required data. data collection techniques through questionnaires (questionnaire). the questionnaire was prepared closed (alternative answers have been provided) using a likert scale which was distributed to all samples. all variables are measured using a rating scale by giving a score (rating) 1 to 5 for the respondent's answers. score 1 is considered strongly disagree and score 5 is considered strongly agree. the analysis technique used is: 1. the instrument test is carried out in the form of a validity test and a reliability test. n = to test the validity of the data used in this study, data processing was used through spss (statistical product and service solution). reliability testing is carried out by paying attention to the variables for each item score and the total score is calculated using the cronbach alpha formula. to test the reliability of the data used in this study, data processing was used through spss (statistical product and service n solution). cronbach alpha formula, namely: α = kr 1 + ( k – 1 ) r information : α = reliability k = number of independent variables in the equation r = average correlation coefficient between variables 2. path coefficient analysis model path analysis is part of the regression model that can be used to analyze causal relationships between one variable and another. the causal relationship system involves two types of variables, namely independent variables or better known as exogenous variables which are usually symbolized by the letters 1,2,..., and the dependent variable or the affected variable, which is known as the endogenous variable which is usually symbolized by a letter 1, 2,..., . v in path analysis, the influence of exogenous variables on endogenous variables can be in the form of direct and indirect effects, or in other words, path analysis takes into account direct and indirect effects.at this stage, the path coefficient of model 1 and the path coefficient of model 2 will be calculated. population and sample the population in this study were stie pemuda surabaya students. the following is the study population. table 1 the number of stie pemuda surabaya students determination of the sample using stratified random sampling (stratified random sampling). statistical random sampling involves a process of stratification or segregation, followed by random selection of subjects from each stratum. the population is grouped into sub-populations based on certain characteristics. nur sayidah (2018; p97). determination of the sample in this study was carried out using the slovin formula (umar, 2008), namely: n n (d 2 ) + 1 n = sample; n = population; d = 95% precision value or sig. = 0.05. n = sample; n = 170 ; d = 95% precision value or sig. = 0.05 then the number of samples taken based on each of these parts is determined again using the formula: from the population table, the number of samples for each generation can be determined based on proportional stratified random sampling using the 170 170 1+(170 x 0.0025) 1.425 = 119, 29 rounded to 119 class population σ specified sample pulation= σ population sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 89 formula above. the percentage of respondents in each class can be seen in the table below: table 2 number of samples iv results and discussion 1. service quality partially has a significant influence on student satisfaction at stie pemuda surabaya. influence analysis service quality (x1) to student satisfaction (z), from the analysis above, a significant value of service quality (x1) is 0.035 <0.05. these results indicate that there is a direct significant effect of service quality (x1) on student satisfaction (z). 2. price partially has a significant effect on student satisfaction at stie pemuda surabaya influence analysis price (x2) on student satisfaction (z), from the analysis above, a significance value for price (x2) is 0.042 <0.05. these results indicate that there is a direct significant effect of price (x2) on student satisfaction (z). 3. image partially has a significant influence on student satisfaction in stie pemuda surabaya. analysis of the influence of campus image (x3) on student satisfaction (z), from the above analysis a significant value of campus image (x3) is obtained of 0.030 <0.05. these results indicate that there is a direct significant influence of campus image (x3) on student satisfaction (z). 4. service quality partially has a significant influence on student loyalty in stie pemuda surabaya. influence analysis service quality (x1) to loyalty (y), from the above analysis a significant value of service quality (x1) is obtained of 0.082 > 0.05. these results indicate that there is no direct significant effect of service quality (x1) on loyalty (y). 5. price partially has a significant effect on the loyalty of stie pemuda surabaya students. influence analysis price (x2) to loyalty (y), from the analysis above, a significance value for price (x2) is 0.000 <0.05. these results indicate that there is a direct significant effect of price (x2) on loyalty (y). 6. image partially has a significant influence on the loyalty of stie pemuda surabaya students. analysis of the influence of campus image (x3) on loyalty (y), from the analysis above, the significance value of campus image (x3) is 0.006 <0.05. these results indicate that there is a direct significant effect of x3 on loyalty (y). 7. partial student satisfaction has a significant influence on student loyalty in stie pemuda surabaya influence analysis student satisfaction (z) to loyalty (y), from the analysis above it is obtained a significant value of student satisfaction (z) of 0.039 <0.05. these results indicate that there is a direct significant effect of student satisfaction (z) on loyalty (y). 8. service quality partially has a significant effect on student loyalty through student satisfaction at stie pemuda surabaya. based on the calculation results, it is known that the direct effect value is -0.022 and the indirect effect is 0.007, which means that the direct effect value is greater than the indirect effect value. these results show that directly service quality (x1) has a significant influence on loyalty (y) through student satisfaction (z). 9. price partially has a significant effect on student loyalty through student satisfaction at stie pemuda surabaya. based on the calculation results, it is known that the direct effect value is 0.486 and the indirect effect is 0.006, which means that the direct effect value is greater than the indirect effect value. these results show that directlyprice (x2) has a significant effect on loyalty (y) through student satisfaction (z). 10. campus image partially has a significant effect on student loyalty through student satisfaction at stie pemuda surabaya. based on the calculation results, it is known that the direct effect value is 0.232 and the indirect effect is 0.014, which means that the direct effect value is greater than the indirect effect value. these results indicate that directly campus image (x3) has a significant influence on loyalty (y) through student satisfaction (z). v. conclusions and suggestion conclusion based on the results of the analysis and discussion, the conclusions in this study are as follows: 1. service quality has a positive and significant influence on student satisfaction. this means that if the quality of service is improved, student satisfaction will also increase. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 lelono diyah setiyowati, slamet riyadi the influence of service quality, price, and campus image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya 90 90 2. price has a positive and significant influence on student satisfaction. this means that if the price meets consumer expectations is the main element to provide satisfaction to consumers. 3. image has a positive and significant influence on student satisfaction. this means that if the image of the campus is good, student satisfaction will be created. 4. service quality does not have a positive and significant effect on student loyalty. 5. price has a positive and significant influence on student loyalty. this means that if the price is good, it will create student loyalty 6. image has a positive and significant influence on student loyalty. this means that if the image of the campus is good, student loyalty will increase. 7. student satisfaction has a positive and significant influence on student loyalty. this means that if student satisfaction increases, they will example research on stie pemuda should also be carried out on the services of lecturers, baak, bauk, and other structural officials. bibliography [1.] aaker, a. david & biel, l . 2006. loyalitas merek dan periklanan. alih bahasa oleh aris ananda. mitra utama. jakarta. [2.] arwanda, n. o. d., hartoyo & hartoyo s. (2014). kepuasan, citra, dan loyalitas pada lembaga pendidikan tinggi: kasus di akademi xyz. jurnal ilmu kelembagaan dan konsumen. 7(2), 123–132. [3.] assauri, sofyan. 2011. manajemen pemasaran dasar, konsep, dan strategi. alfabeta. jakarta. automatically be loyal. 8. service quality has a positive and significant influence on student loyalty through student satisfaction. 9. price has a positive and significant influence on student loyalty through student satisfaction. 10. campus image has a positive and significant influence on student loyalty through student satisfaction. suggestion based on the conclusion which is the implication of the results of research conducted on the effect of service quality, price and image on loyalty through student satisfaction as an intervening variable at stie pemuda surabaya, the recommendations that can be given are as follows: 1. for future researchers, it is better to include other variables that are seen as influencing student satisfaction and loyalty, such as the factor of the ratio of lecturers and students (said in posman sianturi, 2004), lecturer professionalism,highereducation management, teaching and learning infrastructure, as well as competence and appreciation of graduates in educative process (rizky dermawan, 2007). 2. for the higher education leadership to be able to pay attention to student satisfaction which is influenced by the quality of learning and service quality, so that the important role of policies taken by the tertiary institution greatly influences student satisfaction as consumers who must be given satisfying service. tertiary institutions must pay attention to services, facilities and infrastructure, the competence of lecturers and the needs needed by students and employees of the tertiary institution. while the limitations found in this study can be a source of ideas for future research, for [4] barata, atep adya. 2006. dasar-dasar pelayanan prima, cetakan ketiga. november 2006.gramedia. jakarta. [5.] griffin, jill. 2009. customer loyalty : how to learn it, how to keep it. erlangga. jakarta. [6.] hardiyanti. 2010. analisis pengaruh kualitas pelayanan terhadap kepuasan konsumen menggunakan jasa villa agrowisata kebun the pagilaran semarang. [7.] hurriyati, ratih. 2005. bauran pemasaran dan loyalitas konsumen. alfabeta. bandung. [8.] irawan, h. 2002. 10 prinsip kepuasan pelanggan. pt. elex media komputindo gramedia. jakarta. [9.] kasali, r. (2003). manajemen public relations: konsep dan aplikasinya di indonesia. pt. pusaka utama grafiti. jakarta. [10.] kotler, philip. 2004. manajemen pemasaran. edisi millennium (terjemahan). prenhallindo. jakarta. [11.] 2005. manajemen pemasaran. jilid 1 dan 2. pt indeks kelompok gramedia. jakarta. [12.] 2007. manajemen pemasaran. pt malanan jaya cemerlang. jakarta. 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[19.] mouren, margaretha. 2004. studi mengenai loyalitas pelanggan pada divisi asuransi kumpulan ajp bumi putra. jurnal sains pemasaran indonesia. vol. iii. no. 3. h289 308. [20.] mowen, john c. & minor, michael. 2006. perilaku konsumen. terjemahan: lima salim, jakarta: [21.] pt. gelora aksara pratama. nugroho, anton, yohanes. 2011. it”s easy palh data dengan spss. skripsi media creative. yogyakarta. [22.] nur sayidah. 2018. metodologi penelitian. edisi pertama. zifatama jawara. surabaya. [23.] ramadiansyah. 2010. pengaruh kualitas pelayanan terhadap loyalitas nasabah pada bank mandiri, tbk cabang surabaya. tesis, universitas narotama. surabaya. [24.] soemirat, soleh & ardianto, elvinaro (2007). dasardasar public relations. rosdakarya. bandung [25.] sugiyono, 2004. statistik non parametris untuk penelitian. alfabeta. bandung. [26.] sunarto. 2003. manajemen pemasaran. bpfe-ust. yogyakarta. [27.] swastha, basu dan irawan. 2006. manajemen pemasaran modern. liberty. yogyakarta. [28.] swastha, basu. 2009. manajemen penjualan. bpfe.yogyakarta. [29.] 2010. manajemen pemasaran: analisa dan perilaku konsumen. bpfe. yogyakarta. [30.] tjiptono, fandy. 2006. manajemen jasa , andi offset. yogyakarta. [31.] 2007. pemasaran jasa. bayumedia publishing. malang. [32.] 2008. strategi pemasaran, edisi 3. andi offset. yogyakarta. [33.] 2010. strategi pemasaran, edisi 2. andi offset. yogyakarta. [34.] 2012. pemasaran strategik, andi offset. yogyakarta. [35.] tuan, ngunyen minh. 2012. effects of service quality and price fairness on student satisfaction. [36.] umar, husein . 2008. metode penelitian untuk skripsi dan tesis bisnis. jakarta : pt raja grafindo persada. [37.] yovita,l. 2008. penentuan aktivitas antioksidan, kadar fenolat total dan likopen pada buah tomat (solanum lycopersicum l.) jurnal sains dan teknologi farmasi. 13(1):31-37. [38.] zeithaml, v. a., and bitner, m. j.. 1996. services marketing. 1 st edition. mcgrawhill. new york. https://www.hestanto.web.id/citra-merek brand-image-menurut-para-ahli. https://www.hestanto.web.id/citra-merek-brand-image-menurut-para-ahli https://www.hestanto.web.id/citra-merek-brand-image-menurut-para-ahli 8 the effect of public service delivery on export import business satisfaction through customs declaration online at the regional office of the directorate general of customs and excise jatim i surabaya m. nadjhan1*), sukesi 2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: abugut6@gmail.com 1*), sukesi@unitomo.ac.id 2) abstract. the government as state administrator is responsible for the smoothness, safety and comfort of the export and import activities carried out by these importers and exporters. the government forms agencies to manage export-import activities, one of which is the directorate general of customs and excise (djbc) to be able to provide services in export and import activities properly. the purpose of this study is to analyze the influence of the implementation of public services on the satisfaction of export-import entrepreneurs through customs declaration online at the regional office of the directorate general of customs and excise east java i surabaya. the population in this study were 112 entrepreneurs using a census sampling technique. implementation of public services direct influence on customs declaration online office the area of the directorate general of customs and excise east java i in surabaya. based on testing the assumption model which states that the implementation of public services with an estimated regression weights value of 0.0906735, standard error of 0.1093197, critical ratio (t-table) of 2.9991174 then a significance value of probability (p satisfaction of import-export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. based on testing the assumption model states that the implementation of public services with an estimated regression weights value of 0.3349295, standard error 0.1813753, critical ratio (t-table) 1.8466100 then probability significance value (p 05. customs declaration online has a direct effect on the satisfaction of import export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. based on the testing of the assumption model, it states that the implementation of public services with an estimate regression weights value of 3.2489903, a standard error of 3.6187443, a critical ratio (t-table) of 2.8978226 then a probability significance value (p-value) of services for the satisfaction of import-export entrepreneurs at the regional office of the east java directorate general of customs and excise i surabaya through customs declaration online. keywords: implementation of public services; satisfaction of import export entrepreneurs; customs declaration online i . introduction in general, export and import products can be divided into two, namely oil and gas goods and non-oil and gas goods. oil and gas or oil and gas goods are mining goods in the form of oil and gas. non-oil and gas goods are goods that are not in the form of oil and gas, such as plantation, agriculture, animal husbandry, fishery and mining products that are not in the form of oil and gas. indonesia's non-oil and gas exports are more dominant than its oil and gas exports. indonesia's export destinations vary, but there are 13 main countries that are indonesia's export targets. in addition to these 13 main countries, there are also other countries that are export destinations, but their export capacity is not as large as the 13 countries. in january 2014, china was the largest export destination country with a value of us$1,821.5 million (15.19 percent), followed by the united states with us$1,290.7 million (10.77 percent), and japan with a value of us$1,198.0 million. (9.99 percent). the role of indonesia's non-oil and gas exports in january 2014 to china, the united states and japan amounted to 35.95 percent of indonesia's total exports. exports to asean countries contributed a sizable portion, namely 18.77% of indonesia's total exports. the total value of indonesia's non-oil and gas imports in january 2014 was us$11,361.4 million, an increase of us$127.1 million (1.13 percent) compared to non-oil and gas imports in december 2013. likewise, non-oil and gas imports from thirteen main countries increased 2.59 percent (us $228.7 million). this increase was mainly due to an increase in the value of imports in several main countries such as china by us$392.4 million (16.75 percent), india by us$55.8 million (20.91 percent), france by us$28.4 million (21 .45 percent), and thailand us$18.8 million (2.84 percent). in terms of its role in total non-oil and gas imports in january 2014, it can be seen that asean contributed the largest, namely 20.52 percent (us$ 2,331.5 million), followed by the european union with 10.22 percent (us$ 1,161.0 million). during january 2014, the value of indonesia's non-oil and gas imports reached us$11,361.4 million. of the ten main categories of goods, five categories of goods experienced a decrease in 9 import value compared to december 2013. of the five categories of goods, the value of these five categories fell above us$100.0 million, namely the machinery and mechanical equipment category of us$130.4 million (5.56 percent) and motor vehicles and their parts amounting to us$116.1 million (19.20 percent). the next three categories of goods fell below us$100.0 million, namely goods made of iron and steel by us$52.6 million (14.12 percent), cereals by us$44.3 million (15.26 percent), and the rest of the food industry. us$20.3 million (7.70 percent). the government as the administrator of the state is responsible for the smooth, safe and comfortable export and import activities carried out by these importers and exporters. the government forms agencies to manage export-import activities, one of which is the directorate general of customs and excise (djbc) to be able to provide services in export and import activities properly. public service is an activity or a series of activities in the framework of fulfilling service needs in accordance with statutory regulations for every citizen and resident for services, goods, and/or administrative services provided by public service providers. according to sadu wasistiono (2001: 51-52 ) public service or public service is the provision of services either by the government or the private sector to the community, with or without payment to meet the needs and or interests of the community. bureaucrats don't seem good, that's what people think when they experience incidents of mutual delegation of authority from one official to the next without getting the information we want, if a very long form has to be filled out many times and it's simply returned to us just because we forgot to add some missing information. very trivial. according to everyday language, the term bureaucracy is a public service that should reflect public interests, ignoring the moral content of humanity, rather than applying it to the reality of actual service. public services are developed based on the client, namely positioning themselves that it is citizens who need services, need bureaucratic assistance. so that the services developed are services that are independent and create dependencies for citizens in their affairs as citizens. according to dwiyanto (2006: 59) citizens or communities are considered as followers in every policy, program or public service. society is considered as obedient creatures, always accepting every activity of the bureaucracy, even though sometimes the government carries out activities that "do not always benefit the community. the directorate general of customs and excise (djbc) is a vertical agency under the ministry of finance of the republic of indonesia which is tasked with providing community services in the field of customs and excise. duties and responsibilities as a servant and supervisor are two activities that must go hand in hand. the demand from the business world for the directorate general of customs and excise to provide fast, simple and transparent services has encouraged the dgce to make significant efforts and take strategic steps. this was further optimized by the establishment of modern offices, namely the office of the directorate general of customs and excise for the east java region i surabaya. besides that, the latest public service carried out by the customs declaration. legal basis: regulation of the minister of finance number 188/pmk. 04/2010 of 2010 concerning the import of goods carried by passengers, crew of means of transport, border crossers, and shipments as partially revoked by regulation of the minister of finance of the republic of indonesia number 203/pmk.04/2017. regulation of the minister of finance no. 67/pmk.04/2016, promulgated on 27 april 2016 by regulation of the minister of finance of the republic of indonesia number 203/pmk.04/2017 of 2017 concerning provisions for the export and import of goods carried by passengers and crews of means of transport. the customs declaration was made to make it easier for customs officers to guard and protect the public from goods that are prohibited or restricted from entering indonesia. in general, the submission of the customs declaration still uses sheets of paper that are filled in manually (written down). indirectly, this results in a lot of paper being used and losses for passengers such as long queues to fill out the customs declaration (if filled in at the arrival airport). but now you can use an application on the internet or it's called cd-online. seeing the advantages or positive things from using the cd-online application which was made based on the revision of the regulation of the minister of finance of the republic of indonesia number 203/pmk.04/2017 dated december 27 2017 concerning "provisions for the export and import of goods carried by passengers and crew of transportation means" needs to be supported by all parties so that it can be implemented throughout indonesia based on the results of preliminary research conducted at the director general of customs and excise surabaya in march 2021, it can be seen that the problems that are often complained of by users of export-import services at dgce include: high economic costs in completing import and export processes, time to complete documents exports and imports that are not in accordance with the stipulated provisions, and officers whose abilities are not in accordance with the workload that must be carried out. therefore, to see the level of satisfaction of service users with the services provided by djbc, it is necessary to conduct a survey of service users, and refer to the regulation of the minister of finance regarding internal compliance with monev (monitoring and evaluating). the surabaya customs and excise office was used as a research object for various reasons. one of them is the first survey conducted on service users (exporters and importers). this research is intended to examine the responses from service users of the surabaya directorate general of customs and excise, especially those who have filed complaints about information services or service quality that has been provided by the section that handles services at the directorate general of customs and excise for east java region i surabaya. problem statement based on the description mentioned in the research background, the formulation of the problem to be studied is as follows: does the implementation of public services directly affect the customs declaration online regional office of the directorate general of customs and excise east java i in surabaya? does the implementation of public services have a direct effect on the satisfaction of import export entrepreneurs at 10 the regional office of the east java directorate general of customs and excise i in surabaya? does the customs declaration online have a direct effect on the satisfaction of export import entrepreneurs regional office of the directorate general of customs and excise east java i in surabaya? is the implementation of public services on the satisfaction of import export entrepreneurs at the regional office of the directorate general of customs and excise east java i surabaya through customs declaration online? research purposes based on the formulation of the problems studied, the objectives of this research are as follows: to analyze the implementation of public services has a direct effect on the customs declaration online regional office of the east java directorate general of customs and excise i in surabaya to analyze the implementation of public services has a direct effect on satisfaction of import export entrepreneurs regional office of the directorate general of customs and excise east java i in surabaya to analyze the customs declaration online has a direct effect on the satisfaction of import export entrepreneurs regional office of the east java directorate general of customs and excise i in surabaya to analyze the implementation of public services on the satisfaction of import export entrepreneurs in the regional office of the directorate general of customs and excise east java i surabaya through customs declaration online. conceptual framework based on the identification of the problems previously mentioned, a research framework was developed as a guide in conducting research. figure 1 conceptual framework research hypothesis based on the theoretical studies and empirical studies above, the hypothesis proposed is as follows: h1 :implementation of public servicesinfluence on customs declaration onlineofficeregion east java directorate general of customs and excise i in surabaya. h2 :implementation of public servicesaffect the satisfaction of import export entrepreneursofficethe area of the directorate general of customs and excise east java i in surabaya. h3 : customs declaration onlineaffect the satisfaction of import export entrepreneursofficethe area of the directorate general of customs and excise east java i in surabaya h4 :implementation of public services to the satisfaction of export import entrepreneursin the officedirectorate general of customs and excise for the east java region i surabaya through customs declaration online. ii. research methods research analysis model testing modeling in sem modeling in sem basically includes: measurement model and structural model (sitinjak and sugiarto, 2006). the measurement model is carried out to confirm whether the indicators used can confirm a factor or the observed variable is able to define a latent variable. this measurement model is also known as confirmation factor analysis (cfa). meanwhile, the structural model (structural model) describes the relationships between latent variables (exogenous latent variables and endogenous latent variables). structural models are also called structural equation modeling (sem). population the population is a generalization area consisting of: objects/subjects that have certain qualities and characteristics that are applied by researchers to study and then to draw conclusions (sugiono, 2014: 72). the population is the whole object of research. the population in this study are all entrepreneurs inofficethe area of the directorate general of customs and excise east java i in surabaya. the total population in this study is 112 import-export entrepreneurs in 2019-2021 in office the area of the directorate general of customs and excise east java i in surabayawith the following criteria: all import export entrepreneurs office region east java directorate general of customs and excise i in surabaya sample the sample in this study were 112 import-export entrepreneurs 2019-2021 years office the area of the directorate general of customs and excise east java i in surabaya. this study used a census sampling technique, meaning that all populations were sampled in the study. the sample size used is a multivariate type which refers to the sample measurement guidelines according to hair, et al. in ferdinand (2014: 51) which uses 5-10 times variable indicators. the number of indicators in this study are 14 indicators, so this study uses a minimum sample of 5 x 14 = 112 respondents. . iii. analysis results and discussion description of research variables the descriptive data test is to display an overview of the respondents' answers to the questions contained in the questionnaire. based on the results of responses from respondents about the research variables, the researcher will describe in detail the respondents' answers which are grouped in descriptive statistics. in conveying an empirical description of the data used in descriptive 11 statistical research, the index number is used. through these index numbers, it will be known to what extent the degree of respondent's perception of the variables that become indicators in the study. description of public service implementation variables the results of research on public service implementation variables can be explained in the following table: table 1 variable descriptions of public service implementation based on the table above, it can be seen that the average for each indicator is at a positive number. public service implementation variable in the descriptive results above shows an average value of 3.3 greater than the standard deviation of 0.67, which means that the data is stable, evenly distributed and there are no deviations customs declaration online variable description the results of research on customs declaration online variables can be explained in the following table: table 3 customs declaration online variable description based on the table above, it can be seen that the average for each indicator is at a positive number. the customs declaration online variable in the descriptive results above shows an average value of 3.4 greater than the standard deviation of 0.67, which means that the data is stable, even and there are no deviations. description of entrepreneur satisfaction the results of research on the variable entrepreneur satisfaction can be explained in the following table: table 2 variable description of entrepreneur satisfaction based on the table above, it can be seen that the average for each indicator is at a positive number. the customs declaration online variable in the descriptive results above shows an average value of 3.6 greater than the standard deviation of 0.67, which means that the data is stable, even and there are no deviations. validity and reliability test validity test validity test is used to measure the validity or validity of a questionnaire (ghozali, 2011; 160). the significant test was carried out by comparing the calculated r value (corrected item-total correlation value at the cronbach alpha output) with the r table value for degree of freedom (df) = n-2 (n is the number of samples), with the number of samples (n) being 112 with a significance level of 0.05. so the r table of this research is: r (0.05;112-4=108) = 0.164. if r count is greater than r table and have a positive correlation, then the item or question is valid. table 4 public service implementation variable validity (x) 12 based on the table above, it can be seen that the public service implementation variable (x) has a value of r count > r table. this means that this research variable is valid or feasible to use as a data collector. table 5 customs declaration online (z) variable validity based on the table above, it can be seen that the variable customs declaration online (z) has a value of r count > r table. this means that this research variable is valid or feasible to use as a data collector. table 6 validity of entrepreneur satisfaction variable (y) based on the table above, it can be seen that the employer satisfaction variable (y) has a value of r count > r table. this means that this research variable is valid or feasible to be used as a data collector. based on the table above, it can be seen from each of the variables used in the independent variables, namely the implementation of public services, customs declaration online and employer satisfaction because the r count in the correlation coefficient (validity index) of all items is greater than the r table, so all statement items are declared valid . this means that the indicators used in this research variable are valid and appropriate to be used as data collectors. so that the validity of the data obtained can be used for further data analysis. reliability test the reliability test was carried out on question items that were declared valid. this test is used to measure a questionnaire which is an indicator of a variable or construct (ghozali, 2011; 163). a variable is said to be reliable if it has a cronbach alpha > 0.60 (ghozali, 2011; 163-164). the calculation of the reliability coefficient value for the research instrument used obtained the following results: table 7 reliability test results based on the results obtained from testing the reliability of the research instrument, because the reliability coefficient value is > 0.60, it can be concluded that the instrument is declared reliable. proof of hypothesis path analysis the structural stage of the model functions to ensure that the model is in accordance with the data and ensures whether there is influence between the variables studied. at this stage the first thing to do is to ensure that the model is in accordance with the data or the model is fit. then if the model is fit then hypothesis testing can be done. the results of the structural model estimation analysis are presented in the following figure: figure 2. structural model 1 table 8 structural model estimation before further calculations are carried out, assumptions are tested first to ensure that the structural model built can be used. the results of the calculation of the goodness of fit index value produced by the modified model are as follows: 13 table 9 goodness of fit values and cut off value modification models. from the information data in the table above it can be explained the model suitability index and its interpretation as follows: chi square chi-square is a measure of over all fit which describes the suitability of the theoretical model of the data, what is expected is a small or insignificant chisquare value, which reflects no difference between the theoretical model developed and the observed data. if the chi-square is not significant, it can be concluded that there is a fit between the theoretical model and the empirical data. from the table above, it is known that the probability value of chi-square = 0.000 (p > 0.05) so that from the test results it can be concluded that there is a suitability of the data with the estimated theoretical model. cmin/df cmin/df is the minimum sample survival function (cmin) divided by the degree of freedom which will produce cmin/df da which is generally used as an indicator to measure the level of feasibility of a model. a relative chi-square value of less than 2.00 or less than 5.00 is an indication of the acceptable fit of the model with the data. based on the results of data management, cmin/df was obtained at 3.577, so it can be concluded that the feasibility level of the model being tested is good enough. rmsea the model suitability index can also be seen by comparing the model tested with the root mean square of approximan (rmsea) model. the mean difference with the expected degree of freedom occurs in the good fit. based on the results of data management, an rmsea value of 0.152 is obtained, so it can be concluded that the model that has been tested meets the criteria. gfi gfi is a non-statistical measure that has a range of values from 0 (poor fit) to 1.0 (prefect fit). a high score on this index indicates a "better fit". based on the results of data management, a gfi value of 0.714 was obtained which was greater than 0.90 (marginal), so it could be concluded that the model tested met the criteria agfi agfi is a gfi that is adjusted to the degree of freedom available to test the acceptability of the model. the recommended acceptance rate is when agfi has a value equal to or greater than 0.90. based on the results of data processing, an agfi value of 0.799 was obtained which was greater than 0.90 (marginal) so that it could be concluded that the model that had been tested met the criteria. tli tli is an alternative incremental fit index that compares a model being tested against the baseline model. the recommended value as a reference for the to 1 shows a very good agreement. based on the results of data management, it was obtained that the tli was 0.711 which was greater than 0.90 so that it could be concluded that the model that had been tested met the criteria. cfi the model suitability index can also be seen by comparing the tested model with other models (baseline model). test the suitability index of this comparative model using cfi (comparative fit index). the recommended cut-off value is 0.90. based on the results of data processing, a cfi of 0.765 was obtained, so it can be concluded that the model that has been tested meets the required criteria. based on the results of testing the model suitability criteria above, it is known that the modified model tested is already a good model because the construct reliability test was carried out. 5.4.2 structural analysis of modified estimation models generate calculations that show the model suitability criteria and provide an index that is quite appropriate from the recommended, namely the cmin/df, rmsea, gfi, tli, and cfi values are already in the recommended range, so the modified model is better than the previous model. while the analysis of the estimation of model modification with the amos 23.0 program is presented in the following figure: figure 3 the analysis of the estimation of model modification with the amos 23.0 image modification model the results of the calculation of the goodness of fit index value produced by the modified model are as follows: 14 table 10 model modification estimation table 11 goodness of fit values and cut off value modification models from the information in the table above, the model suitability index and its interpretation can be explained as follows: chi square chi-square is a measure of over all fit which describes the suitability of the theoretical model of the data, what is expected is a small or insignificant chi-square value, which reflects no difference between the theoretical model developed and the observed data. if the chisquare is not significant, it can be concluded that there is a fit between the theoretical model and the empirical data. from the table above it is known that the probability value of chi-square = 0.000 (p <0.05) so that from the test results it can be concluded that there is a correspondence between the data and the estimated theoretical model. cmin/df cmin/df is the minimum sample survival function (cmin) divided by the degree of freedom which will produce cmin/df da which is generally used as an indicator to measure the level of feasibility of a model. a relative chi-square value of less than 2.00 or less than 5.00 is an indication of the acceptable fit of the model with the data. based on the results of data management, cmin/df was obtained at 3.7335402, so it can be concluded that the feasibility level of the model being tested is good enough. rmsea the model suitability index can also be seen by comparing the model tested with the root mean square of approximan (rmsea) model. the mean difference with the expected degree of freedom occurs in the population and no fit. based on the results of data management, an rmsea value of 0.0156 is obtained so that it can be concluded that the model that has been tested meets the criteria. gfi gfi is a non-statistical measure that has a range of values from 0 (poor fit) to 1.0 (prefect fit). a high score on this index indicates a "better fit". based on the results of data management, a gfi value of 0.900 was obtained which was greater than 0.90 (marginal), so it could be concluded that the model tested met the criteria agfi agfi is a gfi that is adjusted to the degree of freedom available to test the acceptability of the model. the recommended acceptance rate is when agfi has a value equal to or greater than 0.90. based on the results of data processing, an agfi value of 0.901 was obtained which was greater than 0.90 (marginal) so that it could be concluded that the model that had been tested met the criteria. tli tli is an alternative incremental fit index that compares a model being tested against the baseline model. the recommended value as a reference for the acceptance of a very good agreement. based on the results of data management, it was obtained that the tli was 0.939 which was greater than 0.90 so it can be concluded that the model that has been tested meets the criteria. cfi the model suitability index can also be seen by comparing the tested model with other models (baseline model). test the suitability index of this comparative model using cfi (comparative fit index). the recommended cut-off value is 0.90. based on the results of data processing, a cfi of 0.964 was obtained, so it can be concluded that the model that has been tested meets the required criteria. discussion implementation of public services direct influence on customs declaration online office the area of the directorate general of customs and excise east java i in surabaya in the first hypothesis, the implementation of public services has a direct effect on customs declaration online office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program 15 version 23. based on the testing of the model assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.0906735, standard error 0.1093197, critical ratio (t-table) 2.9991174 then probability significance value (p-value) the provision of public services by government officials to the community is actually an implication of the function of the state apparatus as a public servant with the aim of realizing people's welfare. therefore, the position of government apparatus in public services (public services) is very strategic because it will determine the extent to which the government is able to provide the best possible service for the community, thereby determining the extent to which the state has carried out its role in accordance with its founding goals to create prosperity for the people. the people. likewise the public services provided by office the area of the directorate general of customs and excise east java i in surabaya. some of the services provided by office the area of the directorate general of customs and excise east java i in surabaya to reduce logistics costs and increase the competitiveness of the domestic industry, the government through the directorate general of customs and excise (djbc) will provide special services in the customs sector. this special service is expected to improve the smooth flow of goods out of the customs area. customs declaration online by office the area of the directorate general of customs and excise east java i in surabaya. online declaration (cd) or customs declaration is a form that lists details of the goods given to airplane passengers from abroad. this customs declaration sheet describes the luggage carried by passengers when they will enter the customs area. we can see about the customs declaration in regulation of the minister of finance number 188/pmk.04/2010 of 2010 concerning the import of goods carried by passengers, crews of means of transport, border crossers, and shipments as partially revoked by regulation of the minister of finance of the republic of indonesia number 203/pmk.04/2017 of 2017 concerning provisions for the export and import of goods carried by passengers and crew of means of transport(permenkeu 203/2017). customs declaration is a customs notification on the import of goods carried by passengers or crew of transportation means. the customs declaration was made to make it easier for customs officers to guard and protect the public from goods that are prohibited or restricted from entering indonesia. basically, every passenger is required to submit every item carried by them because customs officers cannot check each passenger's luggage one by one. in general, the submission of the customs declaration still uses sheets of paper that are filled in manually (written down). indirectly, this results in a lot of paper being used as well as losses for passengers such as long queues in filling out the customs declaration (if filled in at the arrival airport). application-based customs declaration with the term customs declaration online (cd-online) or cd-e (customs declaration – electronic) which can be used on every passenger's smartphone and is available in two languages, namely indonesian and english. by using cdonline, passengers or flight crew no longer need to bother filling out or writing on the customs declaration form, simply by using the gadget they have, passengers can fill it anywhere and anytime on the same day before the flight. the results of this study are relevant to previous research, namely research conducted by mariatul kiptiyah, ratna pudyaningsih, yufenti oktafiah (2018) the effect of public services on community satisfaction in issuing building permits (imb) implementation of public services has a direct effect on the satisfaction of import export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya in the second hypothesis, the implementation of public services has a direct effect on the satisfaction of export-import entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program version 23. based on the model test assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.3349295, standard error 0.1813753, critical ratio (t-table) 1.8466100 then probability significance value (p in carrying out public services, the government forms an organizing organization. organizers are any state administration institutions, corporations, independent institutions established by law for public service activities and other legal entities formed solely for public service activities. the administrator and all parts of the organizing organization are responsible for incompetence, violations and failure to provide services. the organization of public service delivery as referred to in article 8 of law no. 25 of 2009. with regard to public service delivery agencies in the future, it seems that "bureaucratic reform" is urgently needed. as stated by mauk: "we need to change the culture of public administration organizations, ...slowness turn to quicknes, top down approach to a bootom up philosophy, beaucracy turn to neighbors, bigness to smallness" excellent public service (excellent) is a sign of the government's new awareness of the main responsibility in managing government and meeting all the needs of the community so that the services provided by government officials can better satisfy the service user community, it is necessary to change the mindset of all public service implementing apparatus as the first step in providing this excellent service . regional office of the east java directorate general of customs and excise i in surabaya, exemption from import duty is also provided for re-imported goods brought by passengers, crew of means of transportation, and border crossers. in this case, exemption from import duty can be granted without any obligation to file an 16 application, as long as the passengers, crew members of the transportation means, or the border crosser can prove that the goods being re-imported originate from within the customs area. whereas as a form of ease of procedure and acceleration of service, all business processes carried out in the provision of import duty exemption facilities for the re-import of goods that have been exported are carried out automatically, all business processes are carried out through a service computer system (skp), which is a system used by the customs office for supervision and service. with the convenience provided by office it is hoped that the area of the directorate general of customs and excise for east java i in surabaya can provide satisfaction to the customers import export entrepreneur. the results of this study are in line with research conducted by yohanes paulus naru toa agung pujianto endro tjahjono (2021) the effect of import export service quality on customer satisfaction at the office of the directorate general of customs and excise surabaya. customs declaration online has a direct effect on the satisfaction of import export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya in the third hypothesis, customs declaration online has a direct effect on the satisfaction of import-export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out using model path analysis (path analysis) through the help of the amos program version 23. based on the testing of the assumption model presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 3.2489903, standard error 3.6187443, critical ratio (t-table) 2.8978226 then probability significance value (p-value) the customs declaration was made to make it easier for customs officers to guard and protect the public from goods that are prohibited or restricted from entering indonesia. basically, every passenger is required to submit every item carried by them because customs officers cannot check each passenger's luggage one by one. in general, the submission of the customs declaration still uses sheets of paper that are filled in manually (written down). indirectly, this results in a lot of paper being used and losses for passengers such as long queues to fill out the customs declaration (if filled in at the arrival airport). therefore, customs the whole of indonesia is to provide more effective and efficient innovation by creating an application-based customs declaration submission system with the term customs declaration online (cd-online) or cd-e (customs declaration electronic) which can be used on every passenger's smartphone and is available in two languages, namely indonesian and english. by using cd-online, passengers or flight crew no longer need to bother filling out or writing on the customs declaration form, simply by using the gadget they have, passengers can fill it in anywhere and anytime on the same day before the flight arrives at the entire international airport. indonesia, so it is very easy to use and more practical. the results of this study are in line with the research of delly indriani, sugeng rusmiwari, agung suprojo (2017) the effect of public services on community satisfaction: a case study of home industry food production permits at the office of the investment board in batu city. implementation of public services to the satisfaction of export import entrepreneurs in the office region of the directorate general of customs and excise east java i surabaya through customs declaration online in the fourth hypothesis it is answered that the implementation of public services on the satisfaction of export-import entrepreneurs at the regional office of the directorate general of customs and excise east java i surabaya through customs declaration online. we can see this in the hypothesis described earlier, namely the suitability of the results from chi-square is a measure of over all fit which explains the suitability of the theoretical data model, what is expected is a small or insignificant chi-square value, which reflects no difference between the models theory developed with observed data. if the chi-square is not significant, it can be concluded that there is a fit between the theoretical model and the empirical data. from the table above it is known that the probability value of chi-square = 0.000 (p < 0, 05) so that from the test results it can be concluded that there is a suitability of the data with the estimated theoretical model. cmin/df is the minimum sample survival function (cmin) divided by the degree of freedom which will produce cmin/df da which is generally used as an indicator to measure the level of feasibility of a model. a relative chi-square value of less than 2.00 or less than 5.00 is an indication of the acceptable fit of the model with the data. based on the results of data management, cmin/df was obtained at 3.7335402, so it can be concluded that the feasibility level of the model being tested is good enough. the model suitability index can also be seen by comparing the model tested with the root good fit. based on the results of data management, an rmsea value of 0.0156 is obtained so that it can be concluded that the model that has been tested meets the criteria. gfi is a non-statistical measure that has a range of values from 0 (poor fit) to 1.0 (prefect fit). a high score on this index indicates a "better fit". based on the results of data management, a gfi value of 0.900 was obtained which was greater than 0.90 (marginal), so it could be concluded that the tested model met the criteria. agfi is a gfi adjusted to the degree of freedom available to test whether the model is accepted or not. the recommended acceptance rate is when agfi has a value equal to or greater than 0.90. based on the results of data processing, the agfi value is 0. 901 which is greater than 0.90 (marginal) so that it can be concluded that the tested model meets the criteria. the tli is an alternative incremental fit index that compares a tested model to the baseline model. the recommended value as a reference 17 very close to 1 shows a very good agreement. based on the results of data management, a tli of 0.939 was obtained which was greater than 0.90 so that it could be concluded that the tested model met the criteria. the model suitability index can also be seen by comparing the model tested with other models (baseline model). test the suitability index of this comparative model using cfi (comparative fit index). the recommended cut-off value is 0.90. based on the results of data processing, a cfi of 0.964 was obtained, so it can be concluded that the model that has been tested meets the required criteria. in the first hypothesis, the implementation of public services has a direct effect on customs declaration online office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program version 23. based on the testing of the model assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.0906735, standard error 0.1093197, critical ratio (t-table) 2.9991174 then probability significance value (p-value) in the second hypothesis, the implementation of public services has a direct effect on the satisfaction of export-import entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program version 23. based on the model test assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.3349295, standard error 0.1813753, critical ratio (t-table) 1.8466100 then probability significance value (p-value) in the third hypothesis, customs declaration online has a direct effect on the satisfaction of import-export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out using model path analysis (path analysis) through the help of the amos program version 23. based on the testing of the assumption model presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 3.2489903, standard error 3.6187443, critical ratio (t-table) 2.8978226 then probability significance value (p-value) iv. conclusions and suggestions conclusion the results of the research in the form of an analysis of several processed questionnaire distribution and also the discussion presented, the researchers provide some conclusions as follows: implementation of public services direct influence on customs declaration online office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program version 23. based on the testing of the model assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.0906735, standard error 0.1093197, critical ratio (t-table) 2.9991174 then probability significance value (p implementation of public services has a direct effect on the satisfaction of import export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out by using model path analysis (path analysis) through the help of the amos program version 23. based on the model test assumptions presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 0.3349295, standard error 0.1813753, critical ratio (t-table) 1.8466100 then probability significance value (p-va customs declaration online has a direct effect on the satisfaction of import export entrepreneurs office the area of the directorate general of customs and excise east java i in surabaya. testing of assumptions is carried out using model path analysis (path analysis) through the help of the amos program version 23. based on the testing of the assumption model presented in table 5.13 it states that the implementation of public services with an estimated regression weights value of 3.2489903, standard error 3.6187443, critical ratio (t-table) 2.8978226 then probability significance value (p implementation of public services to the satisfaction of export import entrepreneurs in the office region of the directorate general of customs and excise east java i surabaya through customs declaration online. suggestion for office directorate general of customs and excise region i east java in surabaya it is known that the implementation of public services affects the satisfaction of import-export entrepreneurs, therefore it is hoped that the implementation of public services can build better import-export entrepreneurs satisfaction that is better able to ensure the reliability of customs declaration online in adding to the implementation of public services so that it will increase import-export entrepreneurs satisfaction. increasingly increasing the evaluation of the implementation of public services on the satisfaction of export-import entrepreneurs at the office of the directorate general of customs and excise for the east java region i surabaya through customs declaration online. for researchers it is hoped that further research that wants to research the same topic will be able to use other variables that can affect the level of employer satisfaction such as responsive, tangible, and insurance so that they can develop the research results that have been obtained in this study. for the university this research is expected to be able to add reference books and input for the parties concerned and need information about service quality and customer satisfaction, especially for management majors 18 bibliography [1.] aditya, 2011 . manajemen pemasaran. bogor: ghalia. indonesia [2.] altje tumbel. 2016. pengaruh kepercayaan dan kepuasan terhadap loyalitas nasabah pada pt bank btpn mitra usaha rakyat cabang amurang kabupaten minahasa selatan.jurnal lppm bidang 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2.) the effect of training and development system toward job productivity was significant with value of 0,426; 3.) the effect of competency toward job productivity was significant with value of 0,495; 4.) the effect of training and development system toward job productivity through competency was significant with value of 0,248. keywords: competency, training and development, system, job productivity, human resource management 1. introduction competition in the workforce will be increasingly stringent in the asean economic community implementation as from 2015. indonesia and the south-east asian countries will form an integrated region known as the asean economic community (aec). in era that enters the free market there are many challenges and competition must be faced by the world of business and corporate organizations that are increasingly complex. marked by the rapid changes in the environment with the advancement of information technology that is increasingly rapid, demanding the sensitivity of organizations to respond to changes that will occur so that they still exist in the competitive arena [1]. the demand for business organization readiness towards free market competition is getting closer and demands for organizational restructuring to be more flexible and adaptive in responding to various changes that occur [2]. only flexible and adaptive organizations are able to compete in increasingly fierce global competition and as an impact of opening opportunities for business people from various countries [3]. the changes that occur such as economic pressures and marketing, information pressure, environmental pressures, employee expectations to develop, organizational structure and size will encourage organizations to always improve mailto:wanda.gema.prasidio-2018@pasca.unair.ac.id sinergi, volume 1 0 number 1 maret 2020 30 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation organizational performance and work productivity of employees in order to compete globally [4]. employee development related to job productivity is indispensable in a company organization, because the existence of such a program can help improve employee skills and abilities [5]. employee development is also designed to obtain employees who are capable and flexible for an agency in their future moves [6]. the importance of education and training is not solely for the employees concerned, but also the benefits of the organization [7]. because with the increase in the abilities or skills of employees, it can increase the work productivity of employees [8]. mbiya, egessa, and musiega stated that increased work productivity means that the organization concerned will get more outcomes [9]. education and training are also efforts to develop the intellectual abilities and personality of employees [10]. therefore every organization or agency that wants to develop, education and training of its employees must get greater attention so that it can improve the performance of its employees [11]. training is an endeavor aimed at improving skills, knowledge and behaviors to boost present and future success [12]. onyago and wanyoike explained that training programs are processes that are designed to maintain or improve current job performance, while development programs are processes that are designed to develop the capabilities needed for future work activities [13]. training needs analysis can use a variety of information as input, including information from employees performance appraisals, observations, work accident data, counseling results, test results, interviews, surveys, job descriptions, and referring to company strategies [14]. after the training needs analysis is carried out, training targets and training evaluation standards can then be established, the training program will be directed and clearly the measure of success that is very necessary in the evaluation process [15]. in compiling training and development programs, according to butler and lobley (2016) needed to specify various things, including material, methods, instructors, facilities needed, location, time and budget needed. human resources are based on competency will enhance capabilities and build the character of the human resources concerned [16]. this can be known because if the people who work in the company have the right expertise according to their work requirements (the right man on the right place), the human resources concerned will have maximum work capacity, both in terms of knowledge, ability and attitudes that reflect work productivity [17]. as stated by zaim, yasar, and unal that employee competence are a combination of knowledge, skills, attitudes and other personal characteristics needed to achieve job success that can be measured by agreed standards and improved by training and development. [18]. referring to this, human resource management universal corporation is a company established in 2009 and is engaged in consulting services associated with preparation and the development of human capital and has 64 national and international certified trainers and trained in providing training and consulting to other corporate clients who have problems in reducing human resources, among others: issues of performance, competence, work productivity, etc. that are substantive and fundamental. these trainers have professional work that can be proven from the increase in client/consumer service user companies from the last 5 years according to the following table 1: sinergi, volume 1 0 number 1 maret 2020 31 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation tabel 1. fluctuations number of clients in the human resource management universal corporation for 2014-2018 amount of year percentage of company background 2014 2015 2016 2017 2018 averages (%) contractor 3 4 4 6 7 57,14% production of goods 6 8 9 9 12 50,00% service production 3 5 6 7 10 70,00% production of goods and services 7 7 7 10 12 41,66% distribution of goods and services, exports and imports 5 6 6 8 8 37,50% stock and investment 1 2 2 3 4 75,00% regional-owned enterprises and stateowned enterprises 3 4 6 7 7 57,14% provincial and regency/city officials 9 12 13 15 17 35,29% others 3 5 6 8 9 66,66% total of client/user 40 53 59 73 76 47,36% (source: marketing department of human resource management universal corporation, 2019) based on table 1, it shows that there are fluctuations in the number of clients using human resource management universal corporation in 2018 where the client/user of company engaged in contractor sector increased by 57,14%, the client/user of company engaged in the production of goods sector increased by 50%, the clients/user of company engaged in service production sector increased by 70%, the client/user of company engaged in the production of goods and services sector increased by 41,66%, the client/user of company engaged in merchandise distribution and services and exportsimports sector increased by 37,5%, the clients/user of company engaged in stock and investment sector increased by 75%, the clients/user of company engaged in regionalowned enterprises and state-owned enterprises sector increased by 57,14%, the clients/user company engaged in service sector both from the provincial and regency/city official sector levels increased by 35,29%, the client/user of company engaged in other fields increased by 66,66%. the results of the research by jehanzeb and bashir improved that the variable competency has a positive and significant impact on the productivity of the employees [10]. in his research, it was explained that competencies through indicators of achievement, service, leadership, management, thinking, and effective personality had an influence on the level of work productivity of 48,71%, where this influence falls into the medium category. in addition, the results of the study also prove that the variable competences have a positive but not significant effect on the productivity of the workforce. in his research, it was explained that competency through subvariables of personal ability, ability to manage change, and the ability to manage work culture had an influence of 16,3%, where this influence belongs to the small category. the results of the majovski and davitkovska required further study to measure the best variation of the influence of competencies on employee work productivity in order to find out what competencies are needed by government agencies with a view to rising employee productivity [19]. therefore, this study tries to examine more deeply related to employee competencies through the components of attitudes, knowledge and skills [20]. this study aims to analyze effect of the training and development framework on efficiency in jobs through competency on the trainers in the sinergi, volume 1 0 number 1 maret 2020 32 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation human resource management universal corporation. this research has the benefit of providing developmental contributions to knowledge about human resource development related to aspects of training and development system, job productivity, and competency. 2. literatures 2.1. training and development: the definition, aims, and a measurement system the use of the terms training and development had been put forward by experts. according to knoke and kalleberg, the term training for implementing (technical) employees and supervisors [21]. while the development term is intended for management level employees. kum, cowden, and karodia (2014) suggested the training and development words are planned efforts to allow relevant skills, knowledge and attitudes to be acquired by organizations members [2]. according to majovski and davitkovska, the implementation of training can be achieved if it is based on the following principles: 1.) individual differences; 2.) relation to job analysis; 3.) motivation; 4.) active participation; 5.) selection of trainess; 6.) selection of trainers; 7.) trainer for trainees; 8.) training method; 9.) principle of learning [19]. according to tai, development is an effort to improve employees ' technical, theoretical, conceptual and moral skills according to work / position needs through education and training [22]. according to kum, cowden, and karodia, development can be interpreted as an effort to prepare employees (human resources) to be able to move and play a the position of an organisation, in line with the growth, development and change of an entity, agency or department [2]. the objectives of developing sultana, ahmed, and mehmood were as follows: 1.) work productivity; 2.) efficiency; 3.) reducing damage and minimizing the risk of workplace accidents; 4.) improve work services better; 5.) morals become more formed; 6.) career development; 7.) conceptual technical skills, human skills, and managerial skills are better; 8.) leadership and human relations; 9.) contributions in remuneration (salaries, inceptive wages, and benefits); 10.) consumers [7]. according to matsuo, development is divided into two types, namely formal and informal development [15]. employee training and development goals and expectations according to wulnye, aikins, and abdul-fatawu, the objectives of employee training and development are: 1.) increasing appreciation of the soul and ideology; 2.) increase work productivity; 3.) improve the quality of work; 4.) improve the determination of human resource planning; 5.) improve moral attitudes and morale; 6.) increase stimulation so that employees are able to perform optimally; 7.) improve work health and safety; 8.) avoid obsolescence; 9.) improve employee development [8]. a system is a network of procedures that are interconnected, gathered together to carry out an activity or complete a particular goal [23]. the system is a set of elements that form an activity or a procedure or part of processing that seeks a goal together with operating data or goods at a certain time to produce information or energy or goods. a system has certain characteristics or properties, namely: a.) system components; b.) system limits; c) external system environment; d.) system connectors; e.) system input (system input); f.) system output (system output); g) system processing; h.) system objectives or objectives [19]. the indicators used in measuring the training and development system in this study according to khan and baloch included clarity of objectives / planning, system accuracy, and training system material [24]. 2.2. job productivity: description and factors productivity is defined as the results obtained from each production process by using one or more production factors [25]. in this case osibanjo, et. al. stated productivity is usually calculated as an index, the ratio of output to input, and can be expressed in phsycal productivity and financial productivity sinergi, volume 1 0 number 1 maret 2020 33 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation measures [26]. matin, razavi, and emamgholizadeh stated that the productivity of human resources is an attitude of mind that has the spirit to work hard and wants to have a habit to make improvements [27]. the level of employee productivity in work is determined by the competencies possessed, so that the competencies possessed greatly influence the organization of the company [28]. creating competitive advantage is a top priority for leaders in managing corporate organizations, in order to win a very tight business competition through various technology and management tools that have been applied to a company as a component in increasing work productivity [29]. greenway, et. al. mentioned the factors that influence productivity, among others, as follows: 1.) the physical condition of the company; 2.) degree of automation used; 3.) layout; 4.) job design; 5.) employee skills and motivation; 6.) wages [30]. productivity is indeed an important thing for employees in corporate organizations to measure work productivity, an indicator is needed, as follows in solanki explained that productivity indicators are: 1.) ability; 2.) improve the results achieved; 3.) work spirit; 4.) self development; 5.) quality; 6.) efficiency; 7.) input and output [31]. 2.3. competency: the role, characteristics, and aspects according to lu, tjosvold, and shi, competence is a fundamental characteristic of an individual who helps employees to perform superiorly in their work [32]. based on the description above, the significance of competence involves a portion of personalit y deeply attached to someone with repetitive actions in different situations and tasks. competency analysis is composed mostly for career development, however, it is necessary to determine the level of competence in order to determine the efficacy of the level of performance required in accordance with, among other things, the level of competence: 1.) skill; 2.) knowledge; 3.) self-concept; 4.) self-image; 5.) trait; 6.) motive [33]. while the trait and motive are located deeper at the central point of personality. knowledge and expertise competence is relatively easy to develop, for example with training programs to enhance the human resource capacity [7]. while the motivations of talent and characteristic are in the personality of someone, it is quite difficult to evaluate and improve [34]. spencer and spencer in warhust and thompson stated that competence is a characteristic underlying the effectiveness of individual performance in the workplace or the essential characteristics of individuals who have causal or causal relationships with reference parameters, successful or superior performance in the workplace or in certain circumstances [23]. based on this definition, some of the meanings contained in it are as follows: 1.) underlying characteristic; 2.) causally related; 3.) criteria referenced [18]. according to sriekaningsih and setyadi, several aspects contained in the concept of competency are as follows: 1.) knowledge; 2.) understanding; 3.) value; 4.) skill; 5.) attitude; 6.) interest [6]. ruky in mastuo suggested the concept of competency is becoming increasingly popular and has been widely used by large companies with various reasons, namely: 1.) clarification of the job standards and expectations to be met; 2.) employee selection tools; 3.) maximizing work productivity; 4.) basis for developing aremuneration system; 4.) facilitate adaptation to change; 5.) harmonizing work behavior with organizational values [15]. 3. method the type of research is an explanatory survey. the choice of this type is based on the consideration that this type does the study of influence will not only clarify or define empirical facts in this area, but will also explain [35]. the unit of analysis in this study was that all trainers working in human resource management universal corporation are 64 people taken as respondents in total sampling. furthermore, the respondents submitted statements in the questionnaire which are elaborations of indicators of training and development system variables, job productivity variables, and competency variables [36]. data collection techniques used include field sinergi, volume 1 0 number 1 maret 2020 34 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation studies, literature studies, and observation studies [37]. this study uses quantitative analysis through the path analysis method which is intended to determine the magnitude of the effect of training and development system (x) toward job productivity (y) through competence (z) on employees in human resource management universal corporation described in the research hypothesis analysis model the following: figure 1. model of hypothetical analysis (source: primary data, 2019) 4. result and discussion 4.1. testing of validity and reliability validity shows the extent to which a measuring device measures what you want to measure. the validity test in this study was used to analyze the questionnaire items by correlating the scores of each question in the questionnaire with the total score which is the sum of each item score. requirements that must be fulfilled, namely having to have these criteria are if the correlation coefficient is rcount > rtable (0,246) then the item is declared valid. table 2 below shows the results of the validity test: h2 training and development system (x) job productivity (y) competency (z) h3 h1 sinergi, volume 1 0 number 1 maret 2020 35 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation table 2. testing of validity variable item of questionnaire rtable rcount description x-q.1 0,246 0,634 valid x-q.2 0,246 0,422 valid x-q.3 0,246 0,743 valid x-q.4 0,246 0,811 valid training and development x-q.5 0,246 0,923 valid system (x) x-q.6 0,246 0,537 valid x-q.7 0,246 0,619 valid x-q.8 0,246 0,701 valid x-q.9 0,246 0,865 valid x-q.10 0,246 0,772 valid y-q.1 0,246 0,642 valid y-q.2 0,246 0,848 valid job productivity (y) y-q.3 0,246 0,899 valid y-q.4 0,246 0,941 valid y-q.5 0,246 0,744 valid z-q.1 0,246 0,831 valid z-q.2 0,246 0,756 valid competency (z) z-q.3 0,246 0,793 valid z-q.4 0,246 0,612 valid z-q.5 0,246 0,549 valid (source: primary data, 2019) the results of this validity items in the questionnaire test show that all have a calculated instrum to see the ent using the reliability of each cronbach's alpha (α) value of more than 0,246. reliability test is performed on items that are valid questions or statements. this test is used to determine how consistent the measurement results are if measurements are taken twice or more for the same symptoms using the same measuring instrument coefficient where an instrument is if the cronbach alpha value is greater than 0,600, it is said to be accurate. the findings of the reliability test show that all the testing instruments have an alpha cronbach (α) coefficient value of more than 0,600. this can be seen in table 3 below: tabel 3. testing of reliability variable limitation value cronbach’s alpha (α) description training and development system (x) 0,600 0,861 reliable job productivity (y) 0,600 0,938 reliable competency (z) 0,600 0,829 reliable (source: primary data, 2019) sinergi, volume 1 0 number 1 maret 2020 36 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation 4.2. testing of normality data the normality test is used to test whether or not the distribution of the dependent variable is normally distributed for each value of a given independent variable. this statement is demonstrated in the linear regression model by the error value which is usually distributed. a good regression model is a model with a normal or near normal distribution, and statistical analysis is feasible. data normality analysis uses the kolmogorov-smirnov normality test where the basis for decision making can be based on likelihood (asymtotic significance), i.e. whether the probability is is > 0,05, the distribution of the regression model is normal, and vice versa if the probability is < 0,05, the distribution of the model regression is not normal. it can be seen in table 4 below: table 4. testing of normality using kolmogorov-smirnov unstandardized kolmogorovsmirnov significancy residual z value description model a 0,629 0,824 normal distributioned model b 0,684 0,793 normal distributioned (source: primary data, 2019) based on table 4 above shows that the residuals of the two models produce a significance value of 0,824 and 0,793 respectively, both of which are significantly greater than the minimum significance value of 0,05. this concludes that the residuals of the two models are normally distributed and the assumption of the normality test becomes fulfilled. normality of a variable is generally detected by graphs or statistical tests. the assumption of normality can be checked by checking the normal output of the p-p plot or the normal q-q plot. the assumption of normality is fulfilled when the distribution of the output points of the plot follows the diagonal line of the plot. it can be seen in figure 2 below: figure 2. normal probability plot on model a and model b (source: primary data, 2019) 4.3. testing of heteroscedasticity the heteroscedasticity test aims to investigate whether the variance from residuals in the regression model occurs from one observation to another. if the variance between one observation and the next is fixed, it is called homoscedasticity, and is called heteroscedasticity if it is different. a good regression model is a regression model where heteroscedasticity does not occur. the results of the heteroscedasticity test are as follows: sinergi, volume 1 0 number 1 maret 2020 37 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation model b table 5. testing of heteroscedasticity model variable rank spearman coefficient significancy description model a training and development 0,074 0,837 non heteroscedasticity model variable rank spearman coefficient significancy description system (x) toward job productivity (y) competency (z) toward job productivity (y) 0,061 0,489 non heteroscedasticity (source: primary data, 2019) based on table 5 above shows that the two models produce significance values respectively 0,837 and 0,489 and the spearman rank coefficient of 0,074 and 0,061, where the significance value and magnitude of the rank spearman coefficient are greater than 0,05. this means that heteroscedasticity and heteroscedasticity assumptions are fulfilled in both models. this study also uses a method to test heterosities, namely by looking in the graph plot between the predictive values of the variable dependent and the residuals as shown in the following figure: model a model b dependent variable y (job productivity) dependent variable y (job productivity) figure 3. the result of scatter plot heteroscedasticity testing on model a and model b (source: primary data, 2019) if the image of the dots on the plot graph shows a certain pattern that is regular, it indicates that heterosensity has occurred. conversely, if images of dots on the plot graph show certain patterns that are scattered, then there is no heterogeneity. based on figure 3 related to scatter plots on the heterocedasticity test above shows that every regression model in this study has no heteroscedasticity. sinergi, volume 1 0 number 1 maret 2020 38 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation 4.4. testing of autocorrelation the type of test used to the presence of autocorrelation is determined by the durbinwatson test. decision making on this assumption requires two auxiliary values obtained from the durbin-watson (dw) value table, which is between the du and 4-du values as in the following table : sinergi, volume 1 0 number 1 maret 2020 39 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation table 6. testing of autocorrelation model value of du value of dw value of 4-du description model a 1,385 2,199 2,767 non-autocorrelation model b 1,474 2,018 3,003 non-autocorrelation (source: primary data, 2019) based on the above table 6, it shows that each model has a value of durbin-watson (dw) between the values of du and 4-du, this means that both models have no autocorrelation and the autocorrelation test assumptions are met. 4.5. testing of multicollinearity the multicollinearity test aims at checking whether there is a connection between study variables in the regression model. a good model of regression should be without a correlation between the independent variables. a low tolerance value is equivalent to a high vif. if the tolerance value is greater than 0,1 and the vif value is less than 10, there is no multicollinearity. table 7. testing of multicollinearity multicollinearity description regression model tolerance vif model a 0,511 3,472 non multicollineraity model b 0,378 4,668 non multicollineraity (source: primary data, 2019) based on table 7 above shows that the tolerance value in both models is greater than 0,1 and the vif value in the two models is smaller than 10. it means that the two models are free from multicollinearity and the assumption of multicollinearity tests are fulfilled. 4.6. the result: hypothetical testing with path analysis method the path analytics approach was used in this analysis to check the influence of intervening variables. analysis of the path is a method used to examine the pattern of relationships between variables to find out the direct and indirect function of a series of dependent independent variables. table 8 below is the outcome of hypothesis testing using path analysis for trainers in human resource management universal corporation on the effect of the training and development method towards competency: table 8. the effect of training and development system toward comptency on trainer in the human resource management universal corporation variable tcount significancy value on path coefficient form of direction effect training and development system (x) 4,792 0,000 0,503 positive r-square = 0,459 (source: primary data, 2019) based on table 8 shows that testing related to the effect of training and development systems sinergi, volume 1 0 number 1 maret 2020 40 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation toward competency produces a tcount value of 4,792 with a significance value of 0,000 less than 0,05 (α = 5%), it can be concluded that training and development system has effect toward competency significantly. the value on path coefficient of 0,503 shows that training and development system has a positive effect toward competency. it explains that training and development systems that are well implemented and targeted will be able to increase competency for trainers in the human resource management universal corporation. the value of r-square that appears is 0,459 indicating that an increase in competency is affected by training and development system by 45,9%, the remaining 54,1% is affected by various other factors. the path analysis results on the effect of training and development system toward job productivity through competency on trainers in the human resource management universal corporation are listed in the following table 9: table 9. the effect of training and development system toward job productivity through competency on trainer in the human resource manag ement universal corporation variable tcount significancy value on path coefficient form of direction effectraining and development system (x) 4,699 0,000 0,426 positive competency (z) 4,028 0,000 0,495 positive r-square = 0,347 (source: primary data, 2019) table 9 shows the research of the impact of training and development systems on work productivity a tcount value of 4,699 with a significance value of 0,000 less than 0,05 (α = 5%), it can be concluded that training and development system has effect toward job productivity significantly. the value on path coefficient of 0,426 to indicate that the training and development system has a positive effect on productivity in employment. it explains that training and development system which implemented and targeted to increasing greatly will be able to increase job productivity for trainers in the human resource management universal corporation. table 9 also shows that testing related to the effect of competency toward job productivity produces a tcount value 4,028 with a significance value of 0,000 less than (a value of α = 5%), it can be concluded that competency significantly affects job productivity. the value on path coefficient of 0,495 indicating that competency has a positive effect toward job productivity. it explains that competency which is able to be carefully and carefully improved will be able to increase job productivity for trainers in the human resource management universal corporation. the value of r-square that appears is 0,347 indicating that the application of training and development system toward job productivity through competency by 34,7%, the remaining 65,3% is affected by various other factors. reviewing the analysis of calculations related to the influence between variables of research, can be seen the form and value of the influence directly or indirectly according to the following table: sinergi, volume 1 0 number 1 maret 2020 41 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation table 10. form and value of intra-variable direct effect variable direct effect form of direction effect value of effect training and development system (x) toward competency (z) positive 0,503 training and development system (x) toward job productivity (y) positive 0,426 competency (z) toward job productivity (y) positive 0,495 (source : primary data, 2019) based on table 10 shows that there are three kinds of forms of direct effect between research variables that have a positive overall shape, among others: 1.) the effect of training and development system toward competency on trainers in the human resource management universal corporation with value effect of 0,503; 2.) the effect of training and development system toward job productivity on trainers in the human resource management universal corporation with value effect of 0,426; 3.) the effect of competency toward job productivity on trainers in the human resource management universal corporation with value effect of 0,495. table 11. form and value of intra-variable indirect effect variable indirect effect form of direction effect value of effect training and development system (x) toward job productivity (y) through competency (z) positive 0,248 (source : primary data, 2019) based on table 11 shows that one type of indirect effect between research variables that has a positive overall shape, namely the effect of training and development systems toward job productivity through competency on trainers in the human resource management universal corporation with value effect of 0,248. to calculating the error value on each variable effect (pe), reviewing table 8 and table 9 regarding the result of hypothetical with path analysis, the size of the error value per variable effect can be seen is pe1 = (1-0,459)0.5 = 0,735 pe2 = (1-0,347)0.5 = 0,808 obtained through analysis of calculations as follows: based on these results, the inclusion of the model in the path analysis calculation can be calculated through the total value in the rm 2 = 1 − p 2 p 2 coefficient of determination (rm2) with the composition of calculation analysis as follows: e1 e2 sinergi, volume 1 0 number 1 maret 2020 42 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation rm2 = 1 – (0,7352 x 0,8082) rm2 = 0,647 the total value in the coefficient of determination (rm2) of 0,647 indicating that 64,7% of all information contained in the research data can be explained by the model, while the remaining 35,3% is explained by other factors not used in the model in the result of hypothetical with path analysis. the hypothetical model through path analysis in this study is a combination of x variables that effect the z variable directly and indirectly also affecting the variable z through the intervening variable y. in this hypothesis model can be explained in figure 4 as follows : training and development system (x) pe2 = 0,808 0,426 job productivity (y) 0,503 0,469 competency (z) rm2 = 0,647 pe1 = 0,735 figure 4. the result of hypothetical with path analysis (source: primary data, 2019) 5. conclusion several things can be concluded on the basis of the study results, including: 1.) the effect of the training and development system on skills for trainers in the universal corporation for human resource management with value effect of 0,503; 2.) the effect of training and development system toward job productivity on trainers in human resource management universal corporation with value effect of 0,426; 3.) the effect of competency toward job productivity on trainers in human resource management universal corporation with value effect of 0,495; 4.) the effect of training and development system toward job productivity through competency on trainers in human resource management universal corporation with value effect of 0,248. the implications of this study really bring benefits, especially for the implementation of training and development systems, increasing job productivity, and increasing competency for all trainers at universal corporation's human resource management. training and development programs play a very important role, without this, it will affect the sinergi, volume 1 0 number 1 maret 2020 43 1 wanda gema prasidio akbar hidayat, 2 sukesi, 3 cholichul hadi the role of competency on the effect of training and development system toward job productivity in the human resource management universal corporation decline in job productivity through comptency on trainers in achieving the goals set by the company. 6. acknowledgement the researchers were feeling and saying grateful thanks for the will and blessings of 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the impact of it mastery, organizational learning, job satisfaction and organizational commitment impact on job performance. the approach for analyzing data is simulation of structural equations. based on the study, it was found that: firstly, the positiveimpact of information technology on job satisfaction. second, negative effect of organizational learning on job satisfaction. second, job satisfaction doesn't have a significant positive effect on organizational participation. third, positive effect of organizational learning on organisation's engagement. fifth, information technology positive effect on organizational commitment. sixth, information technology negative effect on job performance. seventh, organizational learning positive effect on job performance. eighth, positive effect of organizational engagement on job results. ninth, job satisfaction positive effect on job performance. the results of this study are expected to provide new findings which will enrich the theory of human resource management and behavioral theory of educational institutions, especially with regard to job performance. keywords: information technology, organizational learning, job satisfaction, organizational commitment, job performance i. introduction along with the progress of time, education has become an industry, the industry aims to produce good citizens of a country and is the base for the future of modern society (vrgovic & pavlovic, 2014). the era of globalization brings opportunities and challenges (ahmad et al., 2014), especially in terms of education. educational institutions in the current era of globalization plays an important role, especially for measuring the level of intelligence of a country. speaking of education, will not be separated by so-called educational institutions, for educational institutions is the most important place for students to learn and develop education and social competence (tehseen & hadi, 2015), improve performance, and provide an educational experience that is qualified for all students. the world of education and the teaching staff is something that cannot be separated. the teaching staff plays a very important role in students ' learning process (tehseen & hadi, 2015) and is a very valuable resource (aslam et al., 2015) in an organization, in this case is the educational institution. therefore, the performance of the teaching staff are concerned, and strive to continue to be improved. several factors can affect efficiency, based on behavioral theory. factors influencing the performance of the teaching staff, including the information systems element, organizational learning, job satisfaction and organizational engagement, these are the four factors that made this research study. one of the things that affect the employee's performance is the commitment of the organization. employees with high organizational commitment has a different attitude than that committed low. some research indicates that organizational commitment positively affects performance (ghorbanpour et al., 2014). besides the company's contribution efficiency is also influenced by job satisfaction. robbins and judge (2011) reported on the employment satisfaction impacts on employee performance. employees who are more likely to feel happy with their work to discuss the positive organisation's issues, support others, and do their job performance beyond the normal forecast. similarly, research conducted by prieto and sinergi, volume 1 0 number 1 maret 2020 2 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java revilla (2009) found that there is a positive influence between the learning ability of both to the performance of non-financial and financial performance. livari (2005) conclude that the information quality and unit quality impact on user satisfaction, this indicates user satisfaction by researchers (user satisfaction) as a reasonable to measure how effective an information system is because it is also difficult to argue that system information users are pleased with that performance of the information system.. research in the service industry, especially educational institutions in east java on association of information technology and organizational learning to increased work satisfaction and engagement and their impact on finding the teaching staff is still minimal done or discussed. especially now that the private education institutions compete for customers or even find new customers, so that the optimal educational institutions strive to maintain customer satisfaction (students). this research aims to bridge this gap by assessment the effect of it and organizational learning to improve job satisfaction and organizational engagement and its effects on teaching staff performance. 1. job performance definition of performance is seen as the implementation of an act or a power of a person. the good performance also has to do with consistency, quantity, coordination, efficiency and imagination (saleh et al., 2011). employee performance will ultimately affect the effectiveness of the organization. a good employee performance reflects the ability to contribute through their work towards achieving appropriate behavior with the purpose of the company or organization. it can be concluded the performance of employees (faculty) have an understanding which is a measure of the level of effective coverage of the expected contents of the curriculum by teaching staff. thus the function of how the contents of educational institutions work effectively achieved (babatunde & adebisi, 2012). saleh et al., (2011) suggested indicators relating to employee performance variables include: quality of work, land, initiative, capability. this indicator is then used in this study. 2. organizational commitment according to robbins and judge (2011) organizational loyalty is a condition where the employee supports a particular organisation as well as the objectives and desires of retaining membership in the organization. involving highlevel jobs therefore means promoting a particular job for a person, while the high-level organizational commitment favors organizations that hire these people. meyer et al., (2002) formulated a definition of the engagement of the organization as a psychological characteristic of the relationship between the client and the organization and has repercussions for the decision of the individual to maintain membership of the organisation. it can be argued on the basis of these hypotheses that organizational engagement is an attitude that workers will remain loyal to the company and are willing to continue working as quickly as possible to achieve organizational objectives. an indicator produced in this study is by meyer et al., (2002), consisting of 3 (three) organizational participation dimensions, namely: affective commitment, commitment to performance and commitment to regulations. 3. job satisfaction according sianipar & haryanti (2014) description of job satisfaction can be classified into two, namely: (1) definition that sees job satisfaction as emotional reactions complex. emotional reactions are the result of employees ' instinct, motivation, demands and expectations for work, coupled with employees ' perceived realities, giving rise to a form of emotional reaction that tangible sense of excitement, a sense of satisfaction or dissatisfaction. (2) job satisfaction is an employee's attitude in relation to the employment situation, cooperation between employees, remuneration in the workplace and physical and psychological matters. according colquit et al., (2001) job satisfaction is the level of pleasant feeling obtained from a person's job ratings or work experience. based on the opinions of the above, then job satisfaction can be defined as a state of good emotions or positive emotional state that emerges from the examination a work experience. job satisfaction is also a positive response stated on sinergi, volume 1 0 number 1 maret 2020 3 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java jobs and the environment. measures for job satisfaction which are used in this study are known by kalleberg, (1977), that is intrinsic job, comfort, coworker relationships, career opportunities and capital appropriateness. 4. organizational learning according to hill et al., (2014), says that the organization is learning the process that managers instill a desire for new ways of improving operational performance in all leaders of an organization. meanwhile, according schemerhon et al., (2012) saying that organizational learning is the process of knowledge gathering and information use in order to respond effectively to changing circumstances, the needs of organisation to acquire knowledge, distribute information, interpret information and maintain organization to adapt with success to changing circumstances. based on the definition that has been described can be synthesized organizational learning is the process undertaken led to all members of the organization are looking for new ways to boost the organisation's effectiveness. 5. technology information all technology used is information technology for the collection and transmission of information in electronic form (anderson et al., 2000). information technology is a set of tools which enable you to work with information and perform information processing tasks. it can be derived from this understanding the information technology is data-processing technology, including processing, gathering, recording, storing, manipulating data in a variety of ways of producing quality information, that information is important, precise and timely, used for political, corporate and governmental purposes and strategic knowledge for decision making. to further determine the level of use of the information technologies used as a guide for fabrication of research instruments with system established by (purnama 2016), include: using in hardware, using in software and using in network connect. conceptual framework research's conceptual framework is the product through generalization particular phenomenon, it can reflect many other similar phenomena. based on research questions and explanations of it and organizational learning effects on job satisfaction and organisation's contribution and their influence on job performance. therefore, conceptual structure can be used as follows in figure 1. figure 1 conceptual framework model research organizational learning (x2) acquire new knowledge (x21) learning process (x22) knowledge utilization (x23) continuous motivation (x24) job performance (y3) quality of work (y31) proptness (y32) initiatif (y33) capability (y34) information technology (x1) using in hardware (x11) using in software (x12) using in network (x13) organizational commitment (y2) affective commitment (y21) continuance commitment (y22) normative commitment (y23) job satisfaction (y1) workintrinsic (y11) convenience (y12) relation with co worker (y13) career opportunities (y14) resource adequacy (y15) sinergi, volume 1 0 number 1 maret 2020 4 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java ii. methodology in general, the goal of this study is to explore and assess the impact of it and organizational learning how to gain job satisfaction and business engagement, as well as their impact on job performance. this study was structured as an explanatory research, in accordance with its objectives. findings from this study are expected to explain how different factors influence organizational engagement: job satisfaction, information technology and organizational learning, and their effect on job performance. the entire faculty in sabilillah east java education institute has a total population of 160 respondents in this study. the data was collected using structural equation modeling (sem) analysis and questionnaires using amos software version 21. iii. results and discussion a. hypothetical testing results calculation test, as shown in table 1. table 1 results of evaluating the influence of variable it, organizational learning and dedication to job satisfaction and job performance effects no variabel path coeffici ent se cr p 1 job_satisfaction  information_technol ogy 2.398 2.11 9 2.982 0.003 significant 2 job_satisfaction  organizational_lear ning -0.722 1.37 7 -4.192 0.000 significant 3 organizational_com mitment  job_satisfaction 2.104 1.11 0 1.424 0.154 not significant 4 organizational_com mitment  organizational_lear ning 1.017 0.94 8 4.179 0.000 significant 5 organizational_com mitment  information_technol ogy 1.000 0.000 significant 6 job_performance  information_technol ogy -6.955 5.31 9 -3.452 0.000 significant 7 job_performance  organizational_lear ning 0.736 3.51 5 0.210 0.000 significant 8 job_performance  organizational_com mitment 1.000 0.000 significant 9 job_performance  job_satisfaction 1.000 0.000 significant sources: primary data are processed judging from table 1 above, it was noticed: 1. information technology is a significant positive effect towards job satisfaction with the value of the path coefficient 2,398. 2. organizational learning is a significant negative effect towards job satisfaction with the value of the path coefficient -0.722. 3. job satisfaction is a no significant positive effect towards organizational commitment with the value of the path coefficient 2,104. 4. organizational learning significant is a significant positive effect towards organizational commitment with the value of the path coefficient 1,017 5. information technology is a significant positive effect towards organizational commitment with the value of the path coefficient 1,000 6. information technology is a significant negative effect towards job performance with the value of the path coefficient -6955 7. organizational learning is a significant positive effect towards job performance with the value of the path coefficient 0.736 8. organizational commitment is a significant positive effect towards job performance with the value of the path coefficient 1,000 9. job satisfaction is a significant positive effect towards job performance with the value of the path coefficient 1,000 b. the influence of information technology on job satisfaction from table 1, it can be inferred that test results with sem review conducted using the amos version of the program information technology 21 shows that notable positive impact on job satisfaction. this analysis indicates the findings were consistent with what is expressed bhattacharya and ramachandran (2015) it was highlighted as one of the factors that could affect job satisfaction. likewise raised by chiu et.al (2007) that notes that the quality program affects user’s satisfaction, the quality of information, and the use of the system. satisfaction of users of the system means that by using the system increase information better performance in completing the work. limbu et al., (2014) the results showed that information technology indirectly affects job satisfaction over the performance of the administration. sinergi, volume 1 0 number 1 maret 2020 5 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java research conducted hameed et al., (2014) the results showed satisfaction at work and effectiveness positively associated using information technology and making use of information technology easy. orientation to employee knowledge sharing significantly mediate the job satisfaction ratio with the use of knowledge and the ease of using it, as well as the effectiveness of the relationship with both of these factors. while the study conducted by wang (2008) successfully demonstrated that the consistency of the system, quality of information and service quality impact the intent to use the program, while the perceived value and customer satisfaction influence on planned use of the program. c. the influence of organizational learning on the job satisfaction it can be concluded from table 1 that the test results have been collected using sem analysis using amos 21 shows that organizational learning significant negative effect on job satisfaction. such findings indicate that the results match what is stated in the research hasan et al., (2017) states there is a partnership organizational learning culture and job satisfaction. heled et al., (2016) found that group mediates human tools the relationship between organizational learning and job satisfaction. the result has been to accommodate partial mediation organizational learning culture explaining binding social environment to job satisfaction. so also expressed labanauskaitė et al., (2014). matching and cohesion knowledge workers and workplaces allow the achievement of synergistic effects at different organizational levels. increased motivation, employment satisfaction and stress management, and their own future and the organization will affect organizational performance and the world is complex and dynamic. according to adewale et al., (2017) in his research revealed that the academic staff at the university of nigeria is experiencing academic stress, administrative, work-related, studentcharged, socially and psychologically. to reduce stress and improve the performance of the academic staff at the university of nigeria, administrator of educational institutions, policy makers and the ministry of education need to provide a supportive atmosphere for academic staff, improve teaching staff morale, assist them in achieving the goals set and promote job satisfaction. organizational environment is the collective personality, which establishes the organization's brand image. organizational environment is the collective personality, which establishes the organization's brand image. job satisfaction correlated with the organizational environment and varies according to the interest. d. the influence of job satisfaction on organizational commitment from table 1 we can infer that the test results performed using amos 21 using sem analysis show the job satisfaction has no positive effect on corporate engagement. this finding shows were consistent with what yu and chen expressed (2015) it was found that no significant connection existed among job satisfaction and organizational contribution. where staff are satisfied their employment, colleagues, salary and supervisors and job satisfaction overall, they are more committed to the organization (okpara, 2011). job satisfaction influences the level of employee discipline, meaning good employee discipline if satisfaction derived from a job. conversely, if there was less job satisfaction from his job then he would enter a level with low employees. employee satisfaction or dissatisfaction is answer the employee to determine the degree of interaction between previous expectations and current performance in design perceived by employees. thus, the level of employee satisfaction on the job and career is a function of the difference between the job performance design and evaluation and the career felt with employee expectations. when work performance and job design and assessment are not in line with expectations or surpass performance expectations of the design and, employees will feel really happy. and work satisfaction is the emotional state of a person's job, when he finds common ground between what he expects of the job and what the company has given against him. the level of commitment an organization employee exists undoubtedly affects factors such as employee loyalty to the company as well as the skill of the employee to make adjustments in the organization, as well as support and personal sacrifices given to the employees of the organization. sinergi, volume 1 0 number 1 maret 2020 6 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java e. the influence of organizational learning on organizational commitment it can be inferred from table 1 that the test results were performed with sem analysis using amos 21 show that the positive impact of organizational learning on organizational engagement is significant. this finding were consistent with what is expressed schemerhon et al., (2012) says; organizational learning is process knowledge gathering and awareness being used to adapt effectively for conditions change. for organizasi to understand, in order to adapt effectively to changing circumstances, they have to participate in the acquisition of knowledge, the distribution of information, information processing and organizational retention. in line with that proposed by islam et al., (2015) organizational preparation is strongly related to a dedication to organization. asghari et al., (2013) relation between organizational engagement to organizational learning statistically significant. conclusion: it seems that the learning organization can produce better organizational engagement. the finding provides the basis for developing an integrative framework that illustrates how confidence can affect people the organization's ability to learn and in turn, effects that can improve the ability to learn on the results of other organizations (tirelli and goh, 2015). research kuznia et al., (2010) research results show that when individuals increase participation in continuous learning related careers, their productive managerial career also through. career success as described in this study was a commitment to target (of power) and subjectivity (organizational commitment, professional commitment, career satisfaction). continuous learning provided by the organization raise the level of their affective commitment. islam et al., (2016) organizational learning is found to affect the intention of rotation directly and indirectly, give the approach road for managers to keep employees primarily f. the influence of information technology on organizational commitment from table 1 it can be inferred that the test results are achieved with the sem review using amos 21 show that information technology has a significant positive effect on organizational commitment. this analysis suggests the results were consistent with what is expressed norzaidi et al., (2009) the findings showed a significant link between the use of the program and the dedication of the company to security control. the findings of this study raise awareness among organizations of the importance of their dedication to safety controls to ensure quality information is provided for decision making. solli-sæther (2011) found that transfer information technology affects the work of conduct is measured as affective commitment. swapna (2015) information technology is currently focusing on so-called growth-enhancing intellectual capital. we engage and reward workers by giving them a good quality of work life. while research is under way by maier et al., (2015) showed that the application of information technology leads to fatigue due to a techno-techno stressors contribute to fatigue, which in turn significantly affect fatigue. our results also revealed that fatigue negatively affect organizational commitment. partnered with a competitive advantage mao et al., (2015) in particular, the impact of it infrastructure on the competitive advantages of information and human resources is mediated by knowledge management capacities. the paper also describes a significant moderating impact on resource engagement in relation to information technology knowledge management capabilities. tyworth (2014) this study found that the identity of the organization formed an organization's information technology-related process and reflected in the material configuration of information an organization's technology and that organizations with different identities showed differences in their information technology and the impact on organizational commitment. g. the influence of information technology on the job performance it can be inferred from table 1, that the test results were performed using amos 21 with sem analyzes display that information technology has a significant negative impact on job performance. this finding suggests that the results were not consistent with what jamil had claimed (2013) states that use of information systems to promote performance assessment systems implementation to be limited due to the https://www.scopus.com/authid/detail.uri?origin=resultslist&authorid=55786117900&zone= sinergi, volume 1 0 number 1 maret 2020 7 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java limitations of the information system will deter managers obtain data that is accurate and timely. these results support the findings rusdi et al., (2017) findings show that management support to the understanding of information technology does not affect the performance of employees in the workplace. using information technology causes exhaustion. these findings also showed that tiredness the effect on work satisfaction was negative, organizational engagement and going forward, while the techno-fatigue only indirectly cause psychological and behavioral responses through hard work (maieret al., 2015). isaac et al., (2017) research results show a large impact. firstly, real use has a strong positive influence on user satisfaction, it and performance effects. second, user satisfaction has a large influence on results effects. second, the effect on user satisfaction and effects on it performance. third, user satisfaction and it mediate the relationship between actual usage and performance impact. employees with a high level of it skills more interested in implementing inventions. adaptation of technology to continuously improve the competitive advantage on the long term., it is important to increase innovation performance. with the development of information technology opportunities new and exciting opportunity arose daunting experiment information technology applications that can be operated, easy to use, attractive, and easy to access that communicates the correct information needed to reconfigure innovative mechanisms and organizational performance. it seems necessary to use new information technology elsewhere to improve accuracy and speed of preparation and the quality of communication with the ultimate goal of organizational development and improvement of the quality and service according to customer requirements and even exceed customer expectations. these findings provide insight into the managerial and future related to promoting knowledge sharing to improve employees' social relationships, appreciate contextual performance, and provide regular information technology training for employees. h. the influence of organizational learning on job performance it can be inferred from table 1 that the test results conducted using amos 21 with sem analysis indicate that positive effect of organizational learning on job performance is important. this analysis indicates the findings were consistent with the claims that the ability to learn organizationally (organizational learning capability) can be defined as the capacity of an organization to adopt suitable management practices, processes, systems and procedures to promote and activate a learning organisation (goh et al ., 2012). organizational learning processes aimed at improving organizational performance. if a company has the capability of organizational learning more responsive to changes in the environment and take action appropriately, it will increase the competitive advantage. learning of organization bringing employees and other resources together to build competence, and employees continuously use the knowledge and expertise to address operational issues and strategic so that competence can be improved. it was found that a learning organization, through the activity of human resources. banerjee et al., (2017) find that organizational learning is linked positively to the ability to pass training. the critical aspects of the learning transfer process significantly moderate this relationship, which is an obstacle to transition. research conducted by logahan and yazkianti, (2015) that organizational learning culture significantly influence employee performance. given the importance of organizational learning the findings of yu and chen (2015) some of the main findings of research include: (1) individual learning methods ' self-learning through the use of internet resources are most frequently adopted by library staff in taiwan's universities and colleges; (2) staff members ' overall value in terms of their organizational learning culture is not strong; (3) two-dimensional ' creating sustainable learning opportunities ' and ' creating a system for capturing and sharing learned lessons ' can affect learning method library staff formally and informally, and they can contribute positively to improve the performance of knowledge library. in addition, informal learning methods tend to improve the performance of organizational knowledge. perceived organizational support has positive influence on organizational learning, and sinergi, volume 1 0 number 1 maret 2020 8 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java performance of employees. research mutahar et al., (2015) results show that transformational leadership has a positive effect on performance and organizational learning. this study also confirms the existence of a positive relationship between organizational learning and performance. in line with research conducted by mena and chabowski (2015) results show that the learning organization that focuses on the stakeholders positively associated with responsiveness. in a more unique way, the way in which the company obtains knowledge about stakeholders affected a desire to use creative approaches or imitative stakeholders. finally, the findings show that only respond to stakeholders does not guarantee superior performance. in addition, organizational learning impacts the output positively. ultimately, the results showed how organizational support was viewed will play an important role and make a significant contribution to organizational learning which in turn will improve employee performance (amar & walsh, 2016). i. the influence of organizational commitment to job performance it can be inferred from table 1 that the test results were performed with sem analysis using amos 21 indicate that organizational engagement, significant positive impact on job performance. this finding indicates that the results were in line with what is expressed hooshangi et al., (2017) proves that employee engagement has a direct impact on performance. so were also found by moeins et al., (2017) partial or simultaneous positive and important impact of organizational engagement on employee performance. yuan et al., (2017) there is a positive relationship between organizational commitments to employee performance. bufquin et al., (2017) research results show that the employees' organizational commitment significantly influence employee performance. ismuhadjar et al., (2017) research findings are both organizational commitment and a significant positive effect on the performance of the employees. the impact may point to the fact that the strong relationship between affective commitment and employee performance has an important role to play. therefore, organizations should be aware of this organizational commitment as affective commitment is increasingly affecting the performance of the employees and their team. because of the particular challenges and experiences of the teaching staff, organizational engagement may be even more critical than that of the teachers. in line with research results silitonga et al., (2017) the finding suggest that organizational engagement can have a direct impact on the organization's performance and may also have an indirect effect on job satisfaction (as an intervening variable) and then on organizational performance. the better these organizations ' commitment provides job satisfaction for employees as well as impact on the performance of the organizations. the evidence is seen in a positive relationship between organizational climate factor and employee performance, whereas the effect of employee engagement on employee performance ngawi regional secretariat also has a positive correlation. admissible evidence also seen in the commitment of employees as a positive factor that affects the performance of employees. raja & wardoyo (2016) these results demonstrate organizational commitment, organizational culture, and job satisfaction both partially and simultaneously affect employee performance. because as we all know, employees are human resources owned by the company and should be coordinated to achieve business objectives. j. the influence of job satisfaction on job performance it can be inferred from table 1, that the test results were performed using amos 21 with sem analysis specify that job satisfaction has a significant positive effect on job performance as recorded asrivi et al., (2017) employment satisfaction influences work performance. in terms of job satisfaction, workers who have higher performance levels in work units are higher. which means showing which understanding of success is based on job satisfaction. underrepresented classes, older employees and mid-level employees, however, are less satisfied with higher performance of the unit job. to this end, businesses need to consider employees ' specific characteristics in order to establish policies for performance management and use these policies efficiently, recruiting and retaining skilled workers. the results support the study https://www.scopus.com/authid/detail.uri?origin=resultslist&authorid=57200203720&zone= sinergi, volume 1 0 number 1 maret 2020 9 dinda fatmah mastery of information technology and organizational learning culture impact on job performance in education institute sabilillah east java conducted by ahmad et al., (2017) for this reason, businesses need to understand the specific characteristics of employees in order to develop policies of performance management and use these policies efficiently because research results indicate that job satisfaction significantly affects employee performance. this also conforms to the modern principle of attracting and retaining skilled workers by madiistriyatno et al., (2017) it is evident from the regression analysis that job satisfaction and a positive and important effect directly on the performance of the employees. iv. conclusion it can be inferred on the basis of the analysis that, firstly, the positive effect of information technology on job satisfaction was important. second, organizational learning has a major detrimental impact on job satisfaction. second, job satisfaction has no significant positive effect on the commitment of the organisation. thirdly, organizational learning has a positive impact on employee engagement. fifth, the information technology has significant positive effects on employee engagement. sixthly, the information technology has a significant negative impact on work performance. seventh, significant positive effect of organizational learning on job performance. eighth, commitment to innovation, major positive effect on job performance. ninth, significant positive effect on work performance, job satisfaction. it is anticipated that the results of this study will provide new findings that will enrich the theory of human resource management and the behavioral theory of educational institutions, especially regarding performance. additionally, educational institutions are required to provide additional self-development training, especially for mastering information technology and organizational learning culture to improve job satisfaction and 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(2017). the mediating effect of trust and commitment on transformational leadership and performance: an empirical study in vietnam, international journal of information and management sciences, 28(3), 253-275. https://www.scopus.com/record/display.uri?eid=2-s2.0-85026426604&origin=resultslist&sort=plf-f&src=s&st1=influence++job+satisfaction++employee+performance&nlo=&nlr=&nls=&sid=987537e41de39e9ce07f81fbfebdfa09&sot=b&sdt=b&sl=64&s=title-abs-key%28influence++job+satisfaction++employee+performance%29&relpos=47&citecnt=0&searchterm= https://www.scopus.com/record/display.uri?eid=2-s2.0-85026426604&origin=resultslist&sort=plf-f&src=s&st1=influence++job+satisfaction++employee+performance&nlo=&nlr=&nls=&sid=987537e41de39e9ce07f81fbfebdfa09&sot=b&sdt=b&sl=64&s=title-abs-key%28influence++job+satisfaction++employee+performance%29&relpos=47&citecnt=0&searchterm= https://www.scopus.com/record/display.uri?eid=2-s2.0-85026426604&origin=resultslist&sort=plf-f&src=s&st1=influence++job+satisfaction++employee+performance&nlo=&nlr=&nls=&sid=987537e41de39e9ce07f81fbfebdfa09&sot=b&sdt=b&sl=64&s=title-abs-key%28influence++job+satisfaction++employee+performance%29&relpos=47&citecnt=0&searchterm= https://www.scopus.com/record/display.uri?eid=2-s2.0-85026426604&origin=resultslist&sort=plf-f&src=s&st1=influence++job+satisfaction++employee+performance&nlo=&nlr=&nls=&sid=987537e41de39e9ce07f81fbfebdfa09&sot=b&sdt=b&sl=64&s=title-abs-key%28influence++job+satisfaction++employee+performance%29&relpos=47&citecnt=0&searchterm= https://www.scopus.com/record/display.uri?eid=2-s2.0-85026426604&origin=resultslist&sort=plf-f&src=s&st1=influence++job+satisfaction++employee+performance&nlo=&nlr=&nls=&sid=987537e41de39e9ce07f81fbfebdfa09&sot=b&sdt=b&sl=64&s=title-abs-key%28influence++job+satisfaction++employee+performance%29&relpos=47&citecnt=0&searchterm= i. introduction ii. methodology iv. conclusion references 35 the influence of product quality, service quality and perceived quality on repurchase intention with customer satisfaction as intervening variables at xxyz surabaya store customers pastikan vision boi tebulo laia1*), sri handini 2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: boitebule@gmail.com1*) sri.handini@unitomo.ac.id 2) abstract. product quality is the result of the production of a product that can be a factor in sales volume. meanwhile, service quality is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. in addition to product quality and service quality, there is perceived quality, namely the customer's perception of the overall quality or superiority of a product or service related to what is expected by the customer. the hypothesis of this study states that the three variables, namely, product quality, service quality and perceived quality affect repurchase intentions directly and indirectly through the intervening variable, namely satisfaction. this research was conducted on exhaust fan products owned by the xxyz brand. this study uses a quantitative approach with data collection methods using questionnaires. this study uses the pls method using smartpls3. respondents in this study were xxyz surabaya customers who had purchased exhaust fan products in the period march 2019-march 2021 with age over 30 years. the number of respondents in this study amounted to 100 respondents. the results of this study explain that the independent variables namely product quality, service quality and perceived quality have a significant influence on the intervening variable, namely satisfaction. for the independent variable perceived quality has no direct effect on repurchase intention. and the product quality variable has no indirect effect on repurchase intention. keywords: product quality; service quality; perceived quality; satisfaction; repurchase intention i . introduction marketing is something that interests everyone, which can be marketed, namely goods, services, properties, individuals, places, events, information, ideas, or organizations.(kotler, 2012). daryanto (2011: 1) defines marketing as a social and managerial process by which individuals and groups obtain their needs and desires by creating, offering and exchanging something of value with one another. according to(kotler, 2012)product quality is the ability of a product to perform its functions, this includes the overall durability, reliability, accuracy, ease of operation and product repair. according to(kotler, 2012)product quality is a marketer's positioning tool. quality has a direct impact on product or service performance. if the quality of the product they buy is not unsatisfactory, then the intention to buy again will not occur. conversely, if the product they buy has satisfactory quality, then it is likely that consumers will buy it again. indirectly improving product quality affects consumer satisfaction and consumers can repurchase products so that they can increase the amount of company income. in addition to product quality, service quality greatly influences consumer satisfaction to repurchase. a customer who already has an interest in buying an item or service, can almost certainly have a tendency to make a purchase of that item or service. tjiptono (2012) stated in his research that service quality is the level of excellence expected and control over that level of excellence to fulfill customer desires. perceived quality can be defined as the customer's perception of the overall quality or superiority of a product or service in relation to what is expected by the customer. because perceived quality is the perception of the customer, it cannot be determined objectively. perceived quality is a consumer's subjective assessment of product quality where consumers will evaluate product quality from their previous experiences and feelings (lomboan: 2017). according to kotler and keller in "donny june prianza" (2017) explains that customer satisfaction is the pleasure or disappointment that people produce after comparing the expected performance (results) of the product with the expected performance (or results). if performance is lower than expected, the consumer is dissatisfied. if the performance meets expectations, consumers will be satisfied. if performance exceeds expectations, consumers will be very satisfied. it can be concluded that if the customer is satisfied, it is likely that this customer will last with the product for a long time. vice versa. customer satisfaction is also one measure of success which also has an impact on sales levels. this satisfaction is formed through their first experience in buying an item, comments from friends and acquaintances, as well as promises and information from marketers and competitors. marketers who want to excel in the competition must pay attention to customer expectations and customer satisfaction, including the xxyz brand exhaust fan product. currently the xxyz brand exhaust fan product is experiencing problems in 36 the form of a decline in sales which can be seen in the following table: table 1 sales data for 2019 march 2021 based on the data in table 1.1 above, it can be seen that sales of the xxyz brand exhaust fan products have experienced ups and downs. sales of exhaust fans for the xxyz brand are still experiencing a decline, this can be seen in 2019 in february, june, august and november. meanwhile, in 2020, the xxyz brand exhaust fan products are still experiencing a decline in sales, which can be seen in april, may and november. sales data that rises and falls in extremes shows that sales of the xxyz brand exhaust fan products are not stable or not optimal. this indicates that there are still many things that need to be improved in increasing product sales. based on the background above, the researcher is interested in conducting further research to find out the influence of product quality, service quality and perceived quality on repurchase intentions with customer satisfaction as an intervening variable for customers at xxyz store surabaya. on its ability to satisfy stated or implied needs. meanwhile, according to tjiptono tjiptono & tjiptono (2012)service quality is the expected level of excellence and control over that level of excellence will fulfill customer desires. perceived quality according to zeithmal in tjiptono (2011) perceived quality is not the actual quality of the product but the consumer's perception of the overall quality or superiority of products and services. tjiptono further said that perceived quality is the image and reputation of the product and the company's responsibility for the product. thus the impression of quality is the consumer's assessment of the overall superiority and superiority of a product or service that differs from the actual objective quality. customer satisfaction according to kotler (2010: 138), satisfaction is a person's feeling of pleasure or disappointment that arises from comparing the perceived performance of a product (or result) against their expectations. if performance is lower than expected, the consumer is dissatisfied. if the performance meets expectations, consumers will be satisfied. if performance exceeds expectations, consumers will be very satisfied. repurchase intentions according to tylor in puspitasari (2010) as consumer behavior, where consumers respond positively to the service quality of a company and intend to make return visits or re-consume the company's products. through this definition, it can be interpreted that repurchasing interest has a strong influence on the success of a product or service being sold in the market. conceptual framework theoretical basis product quality according to kotler (2012) product quality is a marketer's positioning tool. quality has a direct impact on product or service performance, so it is closely related to customer satisfaction and loyalty (kotler & armstrong, 2012: 254). service quality according to kotler and keller (2012) in syafarudin (2020) states that service quality is the totality of features and characteristics of a product or service that bear picture 1 conceptual framework 37 ii. research methods research methodology operational definitions and indicators table 2 operational definitions and indicators population and sample the population in this study are customers at the xxyz surabaya store. the sample criteria in this study are: 1. xxyz surabaya store customer respondents who have purchased exhaust fan products 2. xxyz surabaya store customer respondents aged 30 and over (≥30 years). 3. customer respondents who purchased products in the period march 2019– march 2021. referring to the sample measurement guidelines according to imam ghozali 2011 the number of samples in this study is 100 people which refers to the number of indicators multiplied by 5, namely (20 x 5) = 100 people . iii. research results and discussion results of analysis and hypothesis testing 1. outer model there are three criteria in the use of data analysis techniques with smartpls to assess the outer model, namely convergent validity, discriminant validity and composite reliability  convergent validity table 3 convergent validity results • construct validity table 4 construct validity results • discriminant validity table 5 discriminant validity results 38 • composite reliability and cronbanch alpha table 6 composite reliability calculation results and cronbanch alpha 2. inner model hypothesis testing results based on the table it is known that: 1. product quality has a significant positive direct effect on customer satisfaction with a t statistics value of 1.801 and a p-value of 0.072. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing product quality it will increase customer satisfaction. 2. service quality has a significant positive direct effect on customer satisfaction with a t statistics value of 4.323 with a p-value of 0.000. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing service quality it will increase customer satisfaction. 3. perceived quality has a significant positive direct effect on customer satisfaction with a t statistics value of 4.368 with a p-value of 0.000. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that increasing perceived quality will increase customer satisfaction. 4. product quality has a significant positive direct effect on intention to repurchase with a t statistics value of 2.103 with a p-value of 0.036. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing product quality it will increase intention to repurchase. 5. service quality has a significant positive direct effect on intention to repurchase with a t statistics value of 3.432 with a p-value of 0.001. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing service quality it will increase intention to repurchase. 6. perceived quality has no direct influence on intention to repurchase with a t statistics value of 0.302 with a p-value of 0.763. this value is below the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing perceived quality does not affect intention to repurchase. 7. customer satisfaction has a significant positive direct effect on intention to repurchase with a t statistics value of 3.414 with a p-value of 0.001. this value is above the critical limit value of 1.660 at a significance limit of 10%. this shows that with increasing customer satisfaction it will increase intention to repurchase. 8. product quality has no influence on intention to repurchase through customer satisfaction with a t statistics value of 1.559 with a p-value of 0.120. this value is below the critical limit value of 1.660 at a significance limit of 10%. 9. service quality has a significant positive influence on intention to repurchase through customer satisfaction with a t statistics value of 2.768 with a p-value of 0.006. this value is below the critical limit value of 1.660 at a significance limit of 10%. 10. perceived quality has a significant positive influence on intention to repurchase through customer satisfaction with a t statistics value of 2.680 with a p-value of 0.008. this value is below the critical limit value of 1.660 at a significance limit of 10%. iv. conclusions and suggestions conclusion based on the results of the analysis obtained, the following conclusions can be drawn: 1. product quality has a significant positive direct effect on customer satisfaction with a t statistics value of 1.801 with a p-value of 0.072 at the xxyz surabaya store. 2. service quality has a significant positive direct effect on customer satisfaction with a t statistics value of 4.323 with a p-value of 0.000 at the xxyz surabaya store. 3. perceived quality has a significant positive direct effect on customer satisfaction with a t statistics value of 4.368 with a p-value of 0.000 at the xxyz surabaya store. 4. product quality has a significant positive direct effect on intention to repurchase with a t statistics value of 2.103 with a p-value of 0.036 at the xxyz surabaya store. 5. service quality has a significant positive direct effect on intention to repurchase with a t statistics value of 39 3.432 with a p-value of 0.001 at the xxyz surabaya store. 6. perceived quality has no direct influence onintention to repurchase with a t statistics value of 0.302 with a p-value of 0.763 at the xxyz surabaya store. 7. customer satisfaction has a significant positive direct effect onintention to repurchase with a t statistics value of 3.414 with a p-value of 0.001 at the xxyz surabaya store. 8. product quality has no influence on intention to repurchase through customer satisfaction with a t statistics value of 1.559 with a p-value of 0.120 at the xxyz surabaya store. 9. service quality has a significant positive influence onintention to repurchase through customer satisfaction with a t statistics value of 2.768 with a pvalue of 0.006 at the xxyz surabaya store. 10. perceived quality has a significant positive influence on intention to repurchase through customer satisfaction with a t statistics value of 2.680 with a pvalue of 0.008 at the xxyz surabaya store. suggestion from the entire research process that has been carried out as well as the data analysis and discussion presented, it can be suggested as follows: 1. perceived quality does not have a direct influence on repurchasing intentions, so what xxyz can do is to take advantage of other factors that influence consumers to repurchase intentions such as product quality, service satisfaction and customer satisfaction. if xxyz pays attention to how services are provided to customers so that service satisfaction and customer satisfaction are created, sales will increase due to an intention to repurchase. however, perceived quality has an indirect effect on repurchase intentions through satisfaction. so that needs to be considered is how to create satisfaction for consumers. 2. product quality has a direct effect on repurchase intention, but has no effect when product quality is mediated by satisfaction with repurchase intention. this can happen because products from xxyz are of good quality, thus encouraging consumers to make repeat purchases. so that xxyz still has to maintain its quality so that consumers make repeat purchases. bibliography [1.] budiastari, s. 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(2013). kualitas produk, harga, promosi dan kualitas pelayanan pengaruhnya terhadap keputusan pembelian spring bed comforta. jurnal riset ekonomi, manajemen, bisnis dan akuntansi. https://doi.org/10.35794/emba.v1i4.2741 sinergi, volume 7 number 2 september 2017 1 bambang raditya purnomo, se, mm competitive dynamicsin micro: analysis of perception about competition in unitomo street food business sinergi, volume 7 number 2 september 2017 2 bambang raditya purnomo, se, mm competitive dynamicsin micro: analysis of perception about competition in unitomo street food business sinergi, volume 7 number 2 september 2017 3 bambang raditya purnomo, se, mm competitive dynamicsin micro: analysis of perception about competition in unitomo street food business sinergi, volume 7 number 2 september 2017 4 bambang raditya purnomo, se, mm competitive dynamicsin micro: analysis of perception about competition in unitomo street food business sinergi, volume 7 number 2 september 2017 5 bambang raditya purnomo, se, mm competitive dynamicsin micro: analysis of perception about competition in unitomo street food business 40 the influence of leadership style and organizational culture on employee performance through employee satisfaction as an intervening variable in pg gempolkrep-ptpn x imaniar cahyani1*), eddy yunus2) 1,2)faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: imaniar.cahyani@gmail.com 1*), eddyyunus67@yahoo.com 2) abstract.the existence of a new leader with a young age in recent years has given color to the leadership style at ptpn x. in the same period, the board of directors reconstructed and reintroduced the vision, mission and culture of the organization. the unachieved production potential per hectare and milling capacity have become evaluation material for management to achieve added value. therefore this study aims to analyze the influence of leadership style and organizational culture on the performance of pg gempolkrep-ptpn x employees, and analyze it through job satisfaction as an intervening variable. this research was conducted using a quantitative approach with a survey assessment method using a questionnaire as a data collection tool. the research sample used was purposive sampling, namely 34 employees from the leadership of pg gempolkrep-ptpn x. data analysis is based on data obtained from internal company sources and the results of questionnaires that have been distributed to respondents. the procedure carried out is to assess the results of the questionnaire and process them using the sem-pls method to then be analyzed using the partial least squares analysis technique using smartpls. the results of the study show that leadership style and organizational culture have a significant effect on employee performance, leadership style and organizational culture have a significant effect on employee job satisfaction, and job satisfaction has a significant effect on employee performance, which means job satisfaction can mediate the influence of leadership style and organizational culture. on employee performance. keywords: leadership style; organizational culture; employee performance; job satisfaction i . introduction industrial development in the era of rapid globalization has made company competition increasingly stringent and more complex so that every company is required to pay more attention to the management system within the company in order to achieve predetermined goals. in management, the human factor (human resources) is the most decisive factor because its role as the subject of policy implementation and company operational activities. human resource management (hrm) is one part of management that regulates the relationship and role of resources (labor) owned by individuals efficiently and effectively and can optimally used so that the common goals of the company, employees and society are achieved (ansory & meithiana, 2018: 59). this shows that the company's success is strongly influenced by employee performance (job performance) or the work achieved by an employee in carrying out tasks in accordance with the responsibilities given to him. several ways can be taken by companies to improve employee performance, including by realizing employee satisfaction through leadership style and organizational culture. leadership plays an important role in an organization. according to sedarmayanti (2017: 363), leadership is the whole activity in order to influence people to want to work together to achieve a desired goal together. whereas according to ansory & meithiana (2018:340), culture organization is a combination of beliefs, hopes, values displayed by its members, and transmitted from one generation of employees to other employees on an ongoing basis. so that organizational culture is a major component in achieving organizational missions and strategies effectively (sedarmayanti, 2017: 351). ptpn x is a plantation-based agribusiness company in indonesia for the east java region, with management of processing and marketing of plantation products with a sugar core business. ptpn x has 11 sugar factory units (pg) spread across the east java region. one of the sugar factories under the auspices of this company is pg (sugar factory) gempolkrep which is one of the largest sugar business units with a milling capacity of 6500 tons/day. in 2017, the ministry of bumn established a new ptpn x board of directors composition. this initiated a reshuffle of the human resource composition at the middle to top ptpn x level. the change in the board of directors was also followed by changes in the vision, mission, business philosophy and corporate culture of the new ptpn x. one of the most important things to ensure that, the human resources owned must be able to support the company's performance so that companies need to pay attention to the job satisfaction of their employees. furthermore, this research will have implications for improving employee performance. based on the background above, this research is expected to provide an overview of the extent to which "the influence of leadership style and organizational culture on employee performance through employee job satisfaction as an intervening variable at pg gempokrep-ptpn x“. 41 literature review leadership style leadership is interpersonal influence, in certain situations and directly through the communication process to achieve one or several specific goals (tannebaum, weschler, and nassarik in ansory & meithiana, 2018: 85). according to yunus (2016: 101), leadership is defined as inspiration and the movement of other resources to carry out actions together in order to achieve good values. leadership indicators according to sedarmayanti (2017: 34) show that a leader has the ability to telling (direct), selling (convey), participating (include) and delegating (authority), so that leaders can influence the behavior of others to follow what is the will of them. organizational culture according to ansory & meithiana (2018: 340), organizational culture is a combination of beliefs, expectations, values displayed by its members, and is transmitted from one generation of employees to other employees on an ongoing basis. whereas, . according to xenikou & fernham in mariam (2010: 40), organizational culture as a value refers to everything in the organization that is seen as highly valued, while as a cultural norm of behavior. organization refers to how well the elements (members) of the organization behave. meanwhile robins (2003) in sedarmayanti (2017: 350) states that there are primary characteristics (indicators) in organizational culture, namely as follows: 1. innovation and risk taking: the extent to which employees are encouraged to be innovative and take risks 2. attention to detail: the degree to which employees are expected to demonstrate precision, analysis, and attention to detail 3. result orientation: the extent to which management focuses on results, not on the techniques and processes used to achieve those results 4. people and team orientation: the degree to which management decisions produce effects on people in the organization 5. aggressiveness and stability: the degree to which people are aggressive and competitive rather than relaxed job satisfaction job satisfaction is an emotional state, how people feel about work and its aspects (sedarmayanti, 2017: 168). according to robins (2003) in indrasari (2017: 38) employee job satisfaction is as a general attitude of an individual towards his work which shows the difference between the amount of awards received by workers and the amount they believe they should receive. the indicators of job satisfaction according to sedarmayanti (2017: 168), are as follows: (1) supervision, (2) organization and management, (3) opportunities for advancement, (4) salary and financial benefits, and co-workers. according to mariam (2010: 44), the more expectations are met, the higher the level of job satisfaction. employee performance according to as'ad (2005) in indrasari (2017: 51) performance is a success full role achievement obtained by a person or group of people from their actions. meanwhile, according to mangkunegara (2013: 67) performance can be defined as the result of work in quality and quantity that can be achieved by an employee in carrying out tasks in accordance with the responsibilities given to him. according to indrasari (2017: 49) performance management is not limited to a tool for evaluating employee performance but as a strategy for assessing and motivating increased work productivity. performance indicators in ratminto and atik septi (2005) in ansory & meithiana (2018: 213) are described as follows: (1) economy, namely the use of as few resources as possible, (2) efficiency, namely as the condition shows the achievement of the best ratio between input and output, (3) effectiveness, namely the achievement of predetermined goals, both in the form of targets, long-term goals and organizational missions, (4) responsiveness, namely measurement power responsive employee, (5) responsibility, namely a measure that shows the implementation of work without violating the provisions that have been made stipulated, and (6) accountability, which is a measure that shows how much the level of conformity of work with company sizes. this means that the higher the quality and quantity of one's work, the higher the performance. conceptual framework picture 1 conceptual framework hypothesis h1 : hypothesis 1 the effect of leadership style (x1) on employee performance (y) h2 : hypothesis 2 the effect of organizational culture (x2) on employee performance (y) h3 : hypothesis 3 effect of leadership style (x1) on employee job satisfaction (z) as an intervening variable h4 : hypothesis 4 the influence of organizational culture (x2) with employee job satisfaction (z) as an intervening variable h5 : hypothesis 5 influence with employee job satisfaction 42 (z) as an intervening variable with employee performance (y) ii. research methods this research is research quantitative to analyze the effect of leadership style and organizational culture on employee performance through employee job satisfaction as an intervening variable. the data used is primary data with data collection techniques carried out by questionnaires distributed to the sample size research of 34 employee respondents from the leadership of pg gempolkrep-ptpn x. the method used in this research is structural equation modeling-partial least square (sempls). data rocessing is done using smartpls software . iii. discussion the data analysis technique used in this study uses the partial least square method. this method is carried out with the stages of making a path diagram, convert diagram track becomes structural equations and measurement equations, then estimate parameters using smartpls software. then the next step is to evaluate the model by looking at the evaluation of the outer model and inner model. then analyze and interpret the structural model and measure and test the fit of the model as a whole using the criteria of goodness of fit. outer model evaluation outer model evaluation is done to assess model validity and reliability (ghozali & hengky, 2015: 73). there are three outputs produced in the outer model test, namely convergent validity, discriminant validity, and reliability. based on the results of the validity test, of the four. the latent variables in this study show that all indicators of each variable are valid because they meet the requirements of loading factor > 0.5 and ave > 0.5. the loading factor is the correlation between the indicator and the construct. the higher the correlation indicates that the better the level of validity. the ave value of all variables is >0.5 so that all variables have met convergent validity parameters. meanwhile, based on the reliability test results, the four latent variables in this study also showed that all indicators of each variable were reliable because they met the composite reliability requirements >0.7 and cronbach's alpha >0.7. this shows that each indicator is reliable and has accuracy, consistency, and precision in measuring its latent variables. table 1 validity test table 2 reliability test results evaluation of the inner model evaluation of the inner model is to test the effect of one latent variable on other variables, both exogenous and endogenous (wiyono, 2011:212). there is two outputs in the inner model test, namely the coefficients r determination 2 (r-square) and prediction relevance (q2). based on the r-square output, this study has a strong model prediction accuracy on employee performance and job satisfaction variables because the r-square value is > 0.67. meanwhile, based on the results of the q test 2 got the q value 2 is 0.9504 (large because 0.9504>0). this shows that exogenous latent variables have good model predictive ability, in other words exogenous latent variables are good (appropriate) as latent variables that are able to explain endogenous variables in the model because based on the convergent validity test shown in table 1 above, it is known that all indicators in each declared valid as a measure of the construct so that all indicators are feasible or valid to use and can be used for 43 further analysis, because all of them have a convergent validity value above 0.5. table 3 r-square test results • leadership style variable (x1) significantly influence employee performance (y) the path coefficient value with a positive sign is 0.4347 and the t-statistic value is 5.0397. because the t valuestatistics5.0397 > 1.96 so the decision reject. this means, there is a positive and significant influence of the influence of leadership style (x1) on employee performance (y). the resulting positive influence means the higher the influence of leadership style on performance. hypothesis test structural model testing is carried out to predict causal relationships between variables or hypothesis testing (wiyono, 2011:81). the influence between the hypothesized variables in the study is said to be significant (for a significance level of 5%) if the conditions mark the t-statistics more from 1.96 (ghozali & hengky (2015: 81). after the model evaluation stage was carried out and the statistical hypothesis test results were obtained on the structural model (partial test) the final model path diagram can be produced which is illustrated in the following figure. picture 2 final model path diagram after bootstrapping this analysis was conducted to determine the relationship between latent variables and to conclude the research hypothesis is accepted or rejected by looking at the value of the t-statistic. the processing results for estimating the inner model parameters can be seen in the following table table 4 output path coefficient results based on the results of the analysis shown in table 4, the interpretation of the results of the inner model hypothesis test is obtained as follows: • organizational culture variable (x2) significantly influence employee performance (y) the positive path coefficient value is 0.2855 and the t-statistic value is 3.6366. because the t value statistics 3.6366 > 1.96 so the decision reject. this means, there is a positive and significant influence of the influence of organizational culture (x2) on employee performance (y). the resulting positive influence means the higher the role of organizational culture influence on performance. • leadership style variable (x1) has a significant effect on job satisfaction (z) the positive path coefficient value is 0.3999 and the t-statistic value is 4.0126. because the t value statistics 4.0126 > 1.96 so the decision reject. this means, there is a positive and significant influence of the influence of leadership style (x1) on job satisfaction (z). the resulting positive influence means the higher the role of leadership style influence on job satisfaction. • organizational culture variable (x2) has a significant effect on job satisfaction (z) the positive path coefficient value is 0.5697 and the t-statistic value is 7.2827. because the t value statistics 7.2827 > 1.96 so the decision reject. this means, there is a positive and significant influence of the influence of organizational culture (x2) on job satisfaction (z). the resulting positive influence means the higher the role of organizational culture influence on job satisfaction. • job satisfaction variable (z) has a significant effect on employee performance (y) the positive path coefficient value is 0.385 and the tstatistic value is 3.401. because the t valuestatistics3.401 > 1.96 so the decision reject. this means, there is a positive and significant influence of the influence of job satisfaction (z)) on employee performance (y). the resulting positive influence means the higher the role job satisfaction then the performance will be higher iv. conclusions based on the results of the analysis and discussion that has been carried out by researchers, it can be concluded as follows: 1. leadership style (x1) has a significant effect on employee performance (y) acceptance of hypothesis 1 indicates that the leadership style of a leader influences employee performance and is significant, which means that this study shows that the higher the perception of the 44 superior's leadership style assessment by an employee tends to improve his performance. this goes hand in hand with previous research, namely the research of maramis (2013) and lestari & emma (2018) which said that style leadership has a significant effect on employee performance. hypothesis 1 is accepted. 2. organizational culture (x2) has a significant effect on performance employee (y) acceptance of hypothesis 2 indicates that organizational culture exists significantly affect employee performance, which means that in this study it shows that the higher the perception of organizational culture by employees tends to improve their performance. this is in line with previous research, namely research by maramis (2013), trang (2013), widjaja, et al (2018) and lestari & emma (2018) which say that organizational culture has a significant effect on employee performance. hypothesis 2 is accepted. 3. leadership style (x1) has a significant effect on satisfaction work (z) acceptance of hypothesis 3 indicates that the leadership style of a leader influences satisfaction and is significant, which means that this study shows that the higher the perception of the leadership style assessment by an employee will increase job satisfaction and tend to will improve its performance. this goes hand in hand with previous research, namely satyawati & wayan (2018), lestari and emma (2018) and widjaja, et al (2018) which say that leadership style has a positive and significant effect on job satisfaction. hypothesis 3 is accepted. 4. organizational culture (x2) has an effect significantly to job satisfaction (z) acceptance of hypothesis 4 indicates that organizational culture influences satisfaction and is significant, which means that this research indicates that the higher the perception of organizational culture by an employee will increase job satisfaction and tend to improve performance. this goes hand in hand with previous research, namely satyawati & wayan (2018), lestari and emma (2018) and widjaja, et al (2018) which said organizational culture had a positive and significant effect on job satisfaction. hypothesis 4 is accepted. 5. job satisfaction (z) as an intervening variable has a significant effect on employee performance (y) acceptance of hypothesis 5 indicates that satisfaction work employee affect employee performance and significant, which means in this study shows that the higher the perception of the assessment of job satisfaction by an employee will improve his performance. this is in line with previous research, namely lestari and emma (2018) and widjaja, 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[24.] yunus, e. 2016. manajemen strategis. yogyakarta: cv andi offset 27 the influence of organizational culture and organizational commitment on organizational citizenship behavior through job satisfaction in dental and oral hospital nala husada surabaya tandy izzud alauddin 1*), eddy yunus2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: izzu.ed@gmail.com 1*), eddyyunus67@yahoo.com 2) abstract. the purpose of this study was to analyze the effect of organizational culture and organizational commitment on job satisfaction, analyze the influence of organizational culture and organizational commitment on organizational citizenship behavior, and analyze the effect of job satisfaction on organizational citizenship behavior at nala husada dental and oral hospital surabaya. this type of research is explanatory research with a quantitative method approach. the data collection method used a questionnaire distributed to 36 employees of the nala husada dental and oral hospital in surabaya. the data analysis technique used is structural equation modeling analysis using partial least square. the results of the study show that organizational culture has a significant effect on job satisfaction. organizational commitment has no significant effect on job satisfaction. organizational culture and organizational commitment have a significant effect on organizational citizenship behavior. job satisfaction has a significant effect on organizational citizenship behavior at nala husada dental and oral hospital surabaya. keywords: organizational culture; organizational commitment, job satisfaction; and organizational citizenship behavior i . introduction the part of the organization that is the determining factor for achieving the expected goals is human resources, where human resources are expected to be part of the organization that can improve and create organizational competitive value. human resources must be managed carefully, because basically humans have creativity, taste and intention that shape attitudes (rizqina et al, 2017). employee job satisfaction affects the level of work attendance, and the desire to change jobs, but it also affects the willingness to work. according to handoko (2017), employees who get job satisfaction usually have better attendance records, are active in employee union activities and sometimes perform better at work than employees who do not get job satisfaction. high job satisfaction is a sign of a well-managed organization and is basically the result of selective behavioral management. on the other hand, low job satisfaction indicates poor conditions within the organization. job satisfaction is important because with job satisfaction it is hoped that every individual employee will work hard and enthusiastically to achieve high work productivity. job satisfaction is an individual response to his experience at work. job satisfaction is the level of satisfaction felt by employees related to their work (puangyoykeaw and nishide, 2015). the results of the research by mahardika and wibawa (2019) prove that job satisfaction has a significant effect on ocb. in addition to job satisfaction, organizational commitment is a variable that influences ocb in achieving excellence in creating optimal working conditions, employee commitment to the organization is one of the efforts in dealing with negative work symptoms. according to kaswan (2017) organizational commitment is a measure of an employee's willingness to stay with a company in the future. commitment often reflects an employee's belief in the mission and goals of the organization, a willingness to put in the effort to get the job done and a desire to continue working there. the results of mahardika and wibawa's research (2019) prove that organizational commitment has a significant effect on organizational citizenship behavior. another factor that can influence organizational citizenship behavior is organizational culture. organizational culture is a system of sharing meaning by members that differentiates an organization from other organizations (robbins and judge, 2015: 355). the main function of organizational culture is as a differentiating boundary against the environment, the organization and other groups and as a control mechanism in guiding and shaping employee attitudes and behavior. it seems that organizational culture can have a positive impact on ocb in a company. this supports the research results of mahardika and wibawa (2019) who proved in their research that organizational culture has a significant effect on organizational citizenship behavior. nala husada oral and dental hospital is a type b special health facility which was established in 2018 and is located at jalan arif rahman hakim 150 keputih sukolilo surabaya and is in the same area as hang tuah university surabaya. because it is relatively new, the number of employees is still small and within the hang tuah university environment there is the term bko employee (under operations control) which is a term from the indonesian national armed forces which means employees assigned to other units and there is the term organic employees, these employees are employees with original adoption of the unit of origin. due to differences in employee status and origin, the 28 organizational culture and ocb of each employee are different. the purpose of this research is to analyze the effect of organizational culture and organizational commitment on job satisfaction nala husada oral and dental hospital surabaya,to analyze the influence of organizational culture and organizational commitment to organizational citizenship behavior at dental and mouth hospital nala husada surabaya, andto analyze the effect of job satisfaction on organizational citizenship behavior in dental and oral hospital nala husada surabaya. conceptual framework the conceptual framework of this research is as follows: figure 1 conceptual framework hypothesis based on the framework and research paradigm on the previous page, the researchers formulated the following hypothesis: a. the influence of organizational culture on job satisfaction results of previous research byrizqina et al (2017) found that work culture has a significant effect on job satisfaction. likewise putra, et al., (2018) which proves that organizational culture has a significant direct influence on job satisfaction. based on the references to the previous research results referred to, this study proposes the following h1 hypothesis. h1 :organizationalculture has a significant effect on job satisfaction dental and oral hospital nala husada surabaya b. the effect of organizational commitment on job satisfaction results of previous research byrizqina et al (2017) found that commitment has a significant effect on job satisfaction. in contrast to hutagalung & ritonga (2018) which proves that organizational commitment has no significant effect on job satisfaction. based on the references to the previous research results referred to, this study proposes the following h2 hypothesis. h2 :organizational commitment has a significant effect on job satisfaction dental and oral hospital nala husada surabaya c. the influence of organizational culture on organizational citizenship behavior the results of previous research by mahardika and wibawa (2019) and mahayasa, et al., (2018) found that organizational culture has a positive and significant effect on organizational citizenship behavior. putra, et al., (2018) also proves that organizational culture has a significant direct influence on organizational citizenship behavior. meanwhile, huda & farhan's research, (2019) found that organizational culture did not have a significant effect on organizational citizenship behavior (ocb). based on the references to the previous research results referred to, this study proposes the following h3 hypothesis. h3 :organizationalculture has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya d. the effect of organizational commitment on organizational citizenship behavior the results of previous research by mahardika and wibawa (2019) found that organizational commitment has a positive and significant effect on organizational citizenship behavior. the results of research conducted by huda & farhan, (2019) also found that organizational commitment had a significant positive effect on ocb. based on the references to the previous research results referred to, this study proposes the following h4 hypothesis. h4 :organizational commitment has a significant effect on organizational citizenship behavior ondental and oral hospital nala husada surabaya e. effect of job satisfaction on organizational citizenship behavior the results of previous research by mahardika and wibawa (2019), mahayasa, et al., (2018) found a positive and significant effect of job satisfaction on organizational citizenship behavior. putra, et al., (2018) proved that job satisfaction has a significant direct effect on organizational citizenship behavior. based on the references to previous research results, this study proposes the following h5 hypothesis. h5 : job satisfaction has a significant effect onorganizational citizenship behaviorondental and oral hospital nala husada surabaya analysis models the partial least square (pls) analysis model in this study can be modeled on the following structural equation: job satisfaction (z) = β1 organizational culture (x1) + β2 organizational commitment (x2) 29 organizational citizenship behavior(y) = β1 organizational culture (x1) + β2 organizational commitment (x2) + β3 job satisfaction (z) ii. research methods research approach types of researchselected in this study is to use causal research. this study uses a quantitative approach operational definition, variable identification, and variable indicators variables which used in this study can be identified as follows: 1. independent variable a. organizational culture (x1) b. organizational commitment (x2) 2. intervening variables the intervening variable in this study is job satisfaction. 3. dependent variable the dependent variable in this study is organizational citizenship behavior (ocb). the following is the operational definition of each variable: organizational culture (x1) organizational culture is a philosophy that underlies organizational policies, rules of the game to get along with, and feelings or climate brought by the physical preparation of the organization. organizational culture in this study is measured through several indicators referring to robbins (2015), namely: 1. innovation and risk taking 2. attention to details or details 3. result orientation 4. people orientation 5. team orientation 6. aggressiveness 7. stability / stability organizational commitment (x2) organizational commitment is a reflection of where an employee recognizes the organization and is bound to its goals. organizational commitment in this study is measured through several indicators that refer to mahayasa, et al., (2018), namely: 1) affective commitment 2) continuance commitment 3) normative commitment intervening variables job satisfaction is a person's positive and pleasant emotional state resulting from the assessment of a job or one's work experience. the measurement of job satisfaction in this study refers to luthans' theory (2014: 3) which states that there are 5 dimensions of job satisfaction, namely: a. the work itself b. supervision c. coworkers d. pay e. opportunity of promotion dependent variable the dependent variable in this study is organizational citizenship behavior. organizational citizenship behavior as a work behavior of employees within the organization, which is carried out voluntarily outside of a predetermined job description, with the aim of increasing the progress of organizational performance. organizational citizenship behavior in this study is measured through several indicators that refer to mahayasa, et al., (2018), namely: 1. altruism (likes helping colleagues) 2. civic vertue (policy as member citizen) 3. conscientiousness 4. courtesy (trying to do good) 5. sportmanship population and sample the population in this study were 36 employees dental and oral hospital nala husada surabaya.this study uses total sampling, namely the technique of determining the sample when all members of the population are used as samples. so the sample used in this study were 36 employees dental and oral hospital nala husada surabaya. data types and sources the type of data used in this research is quantitative, because in gathering information using questionnaires distributed to employees at dental and oral hospital nala husada surabaya. primary data in this study were obtained through questionnaires (list of questions) which were distributed to respondents who were arranged based on predetermined variables by providing alternative answers. data collection technique the data collection technique used in this study was the method of distributing questionnaires, which is a data collection technique in which participants/respondents fill out questions or statements and then return them completely to the researcher (sugiyono, 2016). in this study, the scale of measurement of research variables uses a likert scale. data analysis technique the data analysis technique used is structural equation modeling analysis using partial least square.the partial least square (pls) evaluation model is based on prediction measurements that have non-parametric properties (ghozali, 2014). iii. research results and discussion outer model test outer model often also called (outer relation or measurement model) specifies the relationship between the variables studied and the indicators. 30 convergent validity table 1. convergent validity test based on the table above variables organizational culture (x1) as measured by 7 items declared valid as a measurement tool for the construct, because the value of convergent validity is above 0.5. variable organizational commitment (x2)measured by 3 measurement items as a whole have a convergent validity value above 0.5, then 3 measurement items measure organizational commitment (x2) declared valid as a measure of the construct. variable job satisfaction (z) measured by 5 items declared valid as a measurement tool for the construct, because the value of convergent validity is above 0.5. variable organizational citizenship behavior (ocb) (y) measured by 5 measurement items as a whole have a convergent validity value above 0.5, then 5 measurement items measure organizational citizenship behavior (ocb) (y) declared valid as a measure of the construct. discriminant validity based on the results of the cross loading values in the table below, it is found that the overall construct has a good discriminant. this is evidenced by the correlation value of the indicator to the construct which is greater than the correlation value between the indicator and the other constructs. table 2. cross loadings average variance extracted (ave) the results of the ave test appear in table 3 as follows: table 3. ave value the results of the ave values for the indicator blocks that measure constructs can be stated to have good discriminant validity values because the ave value is > 0.5. this means that all construct variables are declared reliable. composite reliability table 4. composite reliability based on the results of composite reliability testing, it shows that all constructs meet the criteria for composite reliability because all of them have composite reliability > 0.60. can be used in further analysis. inner model test this test is used to evaluate the relationship between latent constructs as hypothesized in the study, based on the pls output, the following figure is obtained: 31 figure 2. pls research model the results of the inner weight values show that job satisfaction is influenced by organizational culture and organizational commitment, while organizational citizenship behavior is influenced by organizational culture, organizational commitment, and job satisfaction which is shown in the following equation. z = 0.617 x1 + 0.265 x2 y = 0.388 x1 + 0.282 x2 + 0.338 z hypothesis test to answer the research hypothesis, the t-statistics can be seen in table 5 below: table 5. hypothesis testing results the test results show that: a. organizational culture have a significant effect on job satisfaction, this is evidenced by the statistical t value of 2.2668 which means it is greater than 1.96, so the h1 hypothesis reads "organizational culture significant effect on job satisfaction at nala husada dental and oral hospital surabaya”, can be declared acceptable. b. organizational commitment has no significant effect on job satisfaction, this is evidenced by the statistical t value of 1.636 which means it is smaller than 1.96, so the h2 hypothesis reads "organizational culture has a significant effect on job satisfaction at the dental and oral hospital nala husada surabaya”, can be declared rejected. c. organizational commitment has a significant influence on organizational citizenship behavior, this is evidenced by the statistical t value of 2.625 which means greater than 1.96, so the h3 hypothesis reads "organizational culture significant effect on organizational citizenship behavior at nala husada dental and oral hospital surabaya”, can be declared acceptable. d. organizational culture has a significant effect on job satisfaction, this is evidenced by the statistical t value of 4.747 which means greater than 1.96, so the h4 hypothesis reads "organizational culture significant effect on organizational citizenship behavior at nala husada dental and oral hospital surabaya”, can be declared acceptable. e. organizational culture have a significant effect on organizational citizenship behavior, this is evidenced by the statistical t value of 2.562 which means it is greater than 1.96, so the h5 hypothesis reads "organizational culture significant effect on organizational citizenship behavior at nala husada dental and oral hospital surabaya”, can be declared acceptable. structural model testing (inner model) the pls output is as explained below: table 6. r-square value the independent variables organizational culture (x1) and organizational commitment (x2) which affect the job satisfaction (z) variable in the structural model have an r2 value of 0.684 which indicates that the model is "moderate", while organizational culture (x1), organizational commitment (x2) and job satisfaction (z) which affects the organizational citizenship behavior (y) variable in the structural model has an r2 value of 0.846 which indicates that the model is "moderate". the suitability of the structural model can be seen from q2, as follows: q2 = 1 – [(1 – r1)*(1 – r2)] = 1 – [(1 –0.684)*(1 – 0.846)] = 1 – [(0.316)*(0.154)] = 1 [0.049] = 0.951 discussion the influence of organizational culture on job satisfaction at nala husada dental and oral hospital surabaya the results of data analysis show that organizational culture has a significant influence on job satisfaction at dental and oral hospital nala husada surabaya. this is indicated by the t-statistic value produced by the organizational culture variable on job satisfaction which is above 1.96, namely4,747. thus the research hypothesis that reads "organizational culture has a significant effect on job satisfaction in dental and oral hospital nala husada surabaya” declared accepted. the significant and positive influence of organizational culture on job satisfaction indicates that the better the organizational culture created in the work 32 environment, the higher the job satisfaction felt by employees. this means that job satisfaction can be increased by having a positive organizational culture within the company. therefore, when dental and oral hospital nala husada surabaya want to increase the job satisfaction of its employees, it is very important to pay attention to the extent to which the organizational culture is created within the company. the results in this study are in line with the results in the findings of research conducted by rizqina et al (2017) who found that work culture has a significant effect on job satisfaction. these results also support the findings of putra, et al., (2018) which proves that organizational culture has a significant direct influence on job satisfaction. the effect of organizational commitment on job satisfaction at nala husada dental and oral hospital surabaya the results of data analysis show that organizational commitment does not have a significant effect on job satisfaction at dental and oral hospital nala husada surabaya. this is indicated by the t-statistic value produced by the organizational commitment variable on job satisfaction which is below 1.96, namely1,636. thus the second research hypothesis which reads "organizational commitment has a significant effect on job satisfaction in dental and oral hospital nala husada surabaya” declared not accepted. the absence of a significant effect of organizational commitment on employee job satisfaction indicates that there is a tendency for employees who have high commitment not necessarily to increase their job satisfaction. this can be made possible by the existence of factors such as working conditions which are more likely to affect satisfaction such as relationships with leaders and coworkers, as well as satisfaction with their work. the insignificant effect of organizational commitment on job satisfaction indicates that the stronger the organizational commitment, the less likely it will be to increase the employee's job satisfaction. this is different from the theory put forward by noe et al (2011: 308) which explains that organizational commitment is the extent to which an employee identifies with the organization and is willing to make efforts on its behalf. employees with high organizational commitment will stretch themselves to help the organization through difficult times. the results of this study are consistent with the results of hutagalung & ritonga's (2018) study which proves that organizational commitment has no significant effect on job satisfaction. the results in this study are not in line with the results in the findings of research conducted by rizqina et al (2017), where the results found that commitment has a significant effect on job satisfaction. the influence of organizational culture onorganizational citizenship behavior at nala husada dental and oral hospital surabaya the results of data analysis show that organizational culture has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. this is indicated by the tstatistic value produced by the organizational culture variable on organizational citizenship behavior which is above 1.96, namely2,562. thus the research hypothesis reads "organizational culture has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. the significant and positive influence of organizational culture on organizational citizenship behavior indicates that the better the organizational culture created in the work environment, the higher the organizational citizenship behavior possessed by employees. this means that organizational citizenship behavior can be improved by having a positive organizational culture within the company. therefore, when dental and oral hospital nala husada surabaya want to improve organizational citizenship behavior employees, it is very important to pay attention to the extent to which the organizational culture is created within the company. the results in this study are in line with the results in the findings of research conducted by mahardika and wibawa (2019) who found that organizational culture has a positive and significant effect on organizational citizenship behavior. the findings in this study also support the results of research conducted by mahayasa, et al., (2018) who found that organizational culture has a positive and significant effect on ocb. this also supports the findings in a study conducted by putra, et al., (2018) who found that organizational culture has a significant direct influence on organizational citizenship behavior. however, these results contradict the findings in huda & farhan's research, (2019) which found that organizational culture had no significant effect on organizational citizenship behavior (ocb). the effect of organizational commitment on organizational citizenship behavior at nala husada dental and oral hospital surabaya the results of data analysis show that organizational commitment has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. this is indicated by the t-statistic value produced by the organizational culture variable on organizational citizenship behavior which is above 1.96, namely2,625. thus the research hypothesis which reads "organizational commitment has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. the significant and positive influence of organizational commitment on organizational citizenship behavior indicates that the higher the organizational commitment of employees, the higher the organizational citizenship behavior of employees. this means that organizational citizenship behavior can be improved with the high commitment of employees. therefore, when dental and oral hospital nala husada surabaya want to improve organizational citizenship behavior employees, it is very important to pay attention to the extent of organizational commitment possessed by employees. the results in this study are in line with the results in the findings of research conducted by mahardika and wibawa (2019) who found that organizational commitment has a positive and significant effect on organizational citizenship behavior. the findings in this study also support the results of research conducted by huda & farhan, (2019) which found 33 that organizational commitment has a significant positive effect on ocb. effect of job satisfaction onorganizational citizenship behavior at nala husada dental and oral hospital surabaya the results of data analysis show that job satisfaction has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. this is indicated by the t-statistic value produced by the job satisfaction variable on organizational citizenship behavior which is above 1.96, namely2,668. thus the research hypothesis which reads "job satisfaction has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. the significant and positive influence of job satisfaction on organizational citizenship behavior indicates that the higher the job satisfaction possessed by employees, the higher the organizational citizenship behavior possessed by employees. this means that organizational citizenship behavior can be improved by the existence of job satisfaction possessed by employees. therefore, when dental and oral hospital nala husada surabaya want to improve organizational citizenship behavior employees, it is very important to pay attention to the extent to which job satisfaction is owned by employees. the results in this study are in line with the results in the research findings that have been conducted by mahardika and wibawa (2019) which found that job satisfaction has a positive and significant effect on organizational citizenship behavior. the findings in this study also support the results of research conducted by mahayasa, et al., (2018) which found that employee job satisfaction has a positive and significant effect on ocb. these results also support the findings of putra, et al., (2018) which proves that job satisfaction has a significant direct effect on organizational citizenship behavior. iv. conclusions and suggestions conclusion based on the results of the research and discussion in the previous chapter, several conclusions can be drawn to answer the problem formulation. some of these conclusions consist of: 1. organizational culture has a significant influence on job satisfaction at dental and oral hospital nala husada surabaya. thus the first hypothesis "organizational culture has a significant effect on job satisfaction in dental and oral hospital nala husada surabaya” declared accepted. 2. organizational commitment does not have a significant effect on job satisfaction at dental and oral hospital nala husada surabaya. thus the second hypothesis "organizational commitment has a significant effect on job satisfaction in dental and oral hospital nala husada surabaya” declared not accepted. 3. organizational culture has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. thus the third hypothesis "organizational culture has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. 4. organizational commitment has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. thus the fourth hypothesis "organizational commitment has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. 5. job satisfaction has a significant influence on organizational citizenship behavior on dental and oral hospital nala husada surabaya. thus the fifth hypothesis "job satisfaction has a significant effect on organizational citizenship behavior in dental and oral hospital nala husada surabaya” declared accepted. suggestion based on the overall research results and the conclusions obtained, several suggestions can be developed for interested parties in this study. the suggestions put forward are as follows: 1. it is hoped that the leadership dental and oral hospital nala husada surabaya increasing employee job satisfaction by making efforts to establish good relations between employees such as by holding outbound or gatherings to strengthen relations between employees. 2. it is known that organizational culture influences job satisfaction and organizational citizenship behavior dental and oral hospital nala husada surabaya to further improve the conditions of its organizational culture by cultivating joint activities in the form of sports or other religious activities together. with this togetherness, it will improve the organizational culture so that organizational citizenship behavior increases, so employees will feel satisfied with their achievements. 3. known organizational commitment influences organizational citizenship behavior, so to support organizational commitment, employees should always have a sense of belonging to the company, employees should always care about the problems that occur in the company, employees should always have emotional attachment to the company. 4. it is known that organizational commitment has no significant effect on job satisfaction. this indicates that employees with a high level of organizational commitment have no impact on their level of satisfaction with the company. based on this, it is important for the management of the nala husada dental and oral hospital in surabaya to be able to increase employee commitment to the organization, as employees are required to work more actively and be involved in providing input in the form of organizational development innovations. employees are required to be loyal to the company by continuing to work in the company. 5. it is hoped that dental and oral hospital nala husada surabaya can increase ocb by trying to improve the ability of employees to achieve targets such as by giving rewards to employees or can also provide promotions to each employee who has high work performance. as well as being able to place employees according to the knowledge and skills they have. this is done with the 34 aim that employees can apply the knowledge and skills they have in every job. 6. for future researchers, it is hoped that they can continue research with other variables outside the variables that have been studied in order to obtain more varied results related to job satisfaction and ocb. bibliography [1.] ghozali, imam. 2014. structural equation modeling, metode alternatif dengan. partial least square (pls). edisi 4. semarang: badan penerbit universitas. diponegoro. 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[10.] sugiyono. 2016. metode penelitian kuantitatif, kualitatif dan r&d. bandung: alfabeta. 19 the effect of work motivation, competence, and compensation on employee performance results through employee satisfaction in upt (unit pelaksana teknis/technical implementation unit) livestock breeding and health animals in madura johanes satrijo sigit tjahjono 1*) , susanto sukiman 2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: jsstsigit@gmail.com1*) , susanto_ega@yahoo.com 2) abstract. resources owned by government agencies will not provide optimal results if they are not supported by human resources who have optimal performance. the purpose of this research is to analyze the effect of work motivation, competency, and competency on employee performance results through employee satisfaction at upt livestock breeding and animal health in madura. the method used in this study is a quantitative research method. this type of research is causality research. the sample in this study were 56 employees at upt livestock breeding and animal health in madura using a saturated sampling technique. the analysis technique in this study is partial least square (pls). the results of the analysis in this study proved that work motivation, competency, and competence have a significant effect on employee satisfaction. the results of the analysis also prove that work motivation, competency, competence, and employee satisfaction have a significant effect on employee performance. keywords: work motivation; competence; employee satisfaction; employee performance i . introduction government agencies that are public servants are required to be maximal, fast and responsive besides that they are also required to be able to produce a product of goods/services. in accordance with the main duties and functions of upt livestock breeding and animal health in madura which include the following: "upt livestock breeding and animal health in madura, has the task of carrying out some of the technical tasks of the service in the field of breeding, breeding, livestock cultivation, forage, inspection/testing and diagnosis of animal diseases as well as testing of food and non-food ingredients of animal origin, administrative tasks and community service”. (east java governor regulation number 53 of 2018 concerning nomenclature, organizational structure, in the current era of globalization, companies/organizations are required to work more efficiently and effectively. increasingly fierce competition causes demands to improve the quality and ability of the workforce in order to increase competitiveness in the context of maintaining survival. goals will be achieved if employees have high performance. the success of an organization in planning and implementing strategy is supported by the performance of its employees. (hanggarini in wijaya & suana, 2013). the resources that are owned will not provide optimal results if they are not supported by human resources that have optimal performance. understanding the importance of human resources in today's global era, one of the efforts that must be achieved by companies is to improve the quality of human resources. by improving the quality of human resources, it is hoped that employees can improve their performance (wirawan, 2015: 2). the civil service performance management system is a systematic process consisting of performance planning; implementing, monitoring, and fostering performance; performance assessment; follow-up; and performance information systems. (regulation of the government of the republic of indonesia number 30 of 2019 concerning performance evaluation of civil servants chapter i article 1). in improving its performance, employees need motivation to achieve goals. motivation will cause encouragement to someone who causes him to take certain actions to meet his needs. so work motivation is a psychological condition that encourages workers to try to produce goods or services so that a goal can be achieved (hartati, 2020). in addition, the competencies possessed by each individual are also considered important in efforts to improve performance. robbins & coulter (2018: 55) explains that competence is the skills and abilities in carrying out work activities needed to create the main value for an organization that determines its competitive weapon. according to adam & kamase (2019), competency is expected to improve performance and work results, while competency is needed in order to have capabilities that match organizational needs so as to provide the best performance. this is consistent with the 20 results of hartati's research (2020) which proved in his research that competency has a partially significant effect on employee performance. compensation is also an important factor influencing employee performance, namely fair and equitable compensation. according to veithzal (2015: 741), compensation is something employees receive as a substitute for their service contributions to the company. according to mulyah et al. (2020), in order to achieve the goal of compensation and provide satisfaction for all parties, a compensation program should be established based on fair and reasonable principles, labor laws, and pay attention to internal and external consistency. compensation programs must be able to answer the question of what drives a person to work and why some people work hard while others work mediocre. the results of hartati's research (2020) prove that compensation has a significant effect on employee performance partially. igalens & roussel in adam & kamase (2019) explains that giving uncertain or uncertain wages (flexible pay) does not provide motivation and job satisfaction to workers and is not useful if it is provided permanently or permanently and if it is not permanent it provides employees who are not motivated and do not 'do not produce job satisfaction. . this is in accordance with the findings of mulyah et al. (2020) which proves that compensation has a significant effect on job satisfaction. employee job satisfaction must be created as well as possible so that employee morale, dedication, love and discipline increase. robbins & judge (2017: 41) defines job satisfaction as a general attitude of an individual towards his work where in that job a person is required to interact with colleagues and superiors, follow organizational rules and policies, meet performance standards. adam & kamase (2019) explain that job satisfaction causes increased performance so that satisfied workers will be more productive, job satisfaction occurs because of performance so workers who have good performance will get satisfaction. based on the background above, this study aims to analyze the effect of work motivation, competence, compensation on employee satisfaction and employee performance results in upt livestock breeding and animal health in madura; as well as foranalyze the effect of work motivation, competency, and employee compensation on employee performance results through employee satisfaction at upt livestock breeding and animal health in madura. conceptual framework the following figure illustrates the effects of exogenous variables on endogenous mediated by employee satisfaction variables which are seen as follows. figure 3.1 conceptual framework hypothesis based on the formulation of the problem in the previous chapter and the theories described above, the hypothesis formulated in this study is: h1 : work motivation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura h2 : competence has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura h3 : compensation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura h4 : work motivation has a significant effect on the results of employee performance at upt livestock breeding and animal health in madura h5 : competence has a significant effect on the results of employee performance at upt livestock breeding and animal health in madura h6 :compensation has a significant effect on the results of employee performance at upt livestock breeding and animal health in madura h7 : employee satisfaction has a significant effect on the results of employee performance at upt livestock breeding and animal health in madura h8 :work motivation , competence, and employee compensation have a significant effect on employee performance results through employee satisfaction at upt livestock breeding and animal health in madura analysis models model analysis in this study can be modeled on the following equation: employee satisfaction (z) = β1 work motivation (x1) + β2 competence (x2) + β3 compensation (x3) employee performance results (y) = β1 work motivation (x1) + β2 competence (x2) + β3 compensation (x3) + β4 employee satisfaction (z) ii. research methods the type of research used in this research is to use a quantitative approach, namely a causal associative research strategy. 21 in this study there are two variables, namely the independent variable, the intervening variable and the dependent variable. the independent variables in this study are work motivation (x1), competence (x2), and compensation (x3); the intervening variables in this study are employee satisfaction (z); the dependent variable in this study is employee performance results (y). the operational definition of a variable is the meaning of the variable (which is expressed in the concept definition), operationally, in practice, in reality within the scope of the research object/object studied. work motivation (x1).work motivation in this study was measured through several indicators that refer to (robbins & coulter, 2018), namely: (1) fulfillment of physiological needs; (2) fulfillment of the need for security; (3) fulfillment of social needs; (4) fulfillment of appreciation needs; (5) fulfillment of selfactualization needs. competence (x2).competence is an ability to carry out or perform a job or task based on skills and knowledge. competence in this study is measured through several indicators referring to edison et al. (2016:92-100), including: (a) knowledge; (b) expertise (skill); (c) attitude. compensation (x3).compensation is something employees receive as a substitute for their service contribution to the company. compensation in this study is measured through several indicators that refer to mathis & jackson (2016: 142), namely: (1) direct compensation. (a) basic salary; (b) variable salary; (2) indirect compensation. (a) health insurance; (b) facilities. employee satisfaction (z). employee satisfaction is a feeling that supports or does not support employees related to their work or their condition. employee satisfaction in this study is measured through several indicators that refer to the theory of luthans et al. (2021:243) namely: (a) the work itself; (b) income/salary; (c) promotional opportunities; (d) supervision; (e) colleagues. employee performance results (y). performance results are work achievements or work results achieved by hr both in quality and quantity per unit time period in carrying out their work duties. in accordance with presidential regulation number 29 of 2014 concerning the performance accountability system for government agencies and government regulation number 30 of 2019 concerning performance evaluation of civil servants. the results of the performance in this study are performance reports at upt livestock breeding and animal health in madura, which consist of: (1) total production of madura cattle breeds according to quality standards; (2) total production of fodder forage seeds; (3) number of animal health laboratory test results the sample population in this study were 56 employees at upt livestock breeding and animal health in madura. in this study the sampling technique taken was saturated sampling technique. the type of data used in this research is quantitative. the method used in this study is a quantitative research method. this type of research is causality research. the primary data source used in this study is the method of distributing questionnaires. data analysis techniques used the partial least square (pls) method with smart pls software version 3.0. . iii. analysis results and discussion data analysis in this study, researchers used pls data analysis techniques with using smartpls 3.0 partial least square software, after the researchers examined the results of the questionnaires that had been distributed, the results were as follows: outer model test outer model often also called (outer relation or measurement model) specifies the relationship between the variables studied and the indicators. convergent validity testing the measurement model through the loading factor was carried out to determine the validity of the indicators by looking at the convergent validity values of the indicators in the model. each indicator in the model must meet convergent validity, which has a value of > 0.5. if each indicator already has a loading factor value of > 0.5, the evaluation step can be continued. however, if not, reductions must be made for indicators that have a convergent validity value of < 0.5 by carrying out further iterations until the loading factor value for each indicator is > 0.5. table 1 validity test (convergent validity) based on the table above the indicator items for all variables in research is declared valid as a measuring tool for the construct, because the value of convergent validity is above 0.5. 22 discriminant validity discriminant validity test aims to test the validity of the indicator block. discriminant validity test for indicators can be seen in the cross loadings between indicators and their constructs as shown in table 4.13. an indicator block is called valid if the value of each indicator in measuring its construct variable (= indicator block) is dominantly higher than the value of each of these indicators in measuring other construct variables. table 2 cross loadings the cross loading values in table 2 are obtained as a whole from the forming construct which is stated to have a good discriminant. where the correlation value of the indicator to the construct must be greater than the correlation value between the indicator and the other constructs. average variance extracted (ave) ave aims to test the reliability of construct variables. ave aims to establish that the construct variable has a good discriminant validity value. the ave value is declared satisfactory if > 0.5. the results of the ave test appear in table 3 as follows: table 3 value ave the results of the ave values for the indicator blocks that measure constructs can be stated to have good discriminant validity values because the ave value is > 0.5. this means that all construct variables are declared reliable. composite reliability another test is the composite reliability of the indicator blocks that measure constructs (ghozali, 2013:78). the condition is that if the composite reliability value is > 0.60 it is interpreted as very satisfactory (ghozali, 2013: 78). table 4 composite reliability based on table 4 it can be explained that from the provisions of composite reliability it can be stated that all the constructs studied meet the criteria of composite reliability, so that each construct can be positioned as a research variable. this indicates that compositely all variables have sufficient internal consistency in measuring the latent/construct variables measured so that they can be used in further analysis. inner model test this test is used to evaluate the relationship between latent constructs as hypothesized in the study, based on the pls output, the following figure is obtained: figure 2 pls research model source: appendix 4 the results of the inner weight value in figure 2 above show that employee performance is influenced by work motivation, competence, and compensation, and employee satisfaction. while employee satisfaction is influenced by work motivation, competence, compensation which is shown in the following equation. y =0.087 x1 + 0.311 x2 + 0.367 x3 + 0.248 z z =0.248 x1 + 0.227 x2 + 0.348 x3 hypothesis test to answer the research hypothesis, the t-statistics can be seen in table 5 below: 23 table 5 hasil hypothesis testing the test results show that: (a)work motivation is not have a significant effect on employee satisfaction, because the statistical t value is 1,700 which means it is smaller than 1.96, so the h1 hypothesis reads "work motivation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, can be declared not accepted. (b) competence has a significant effect on employee satisfaction, because the statistical t value is 2,486 which means it is greater than 1.96, so the h2 hypothesis reads "competence has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, can be declared acceptable. (c) compensation has a significant effect on employee satisfaction, because the statistical t value is 2,648 which means it is greater than 1.96, so the h3 hypothesis reads "compensation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, can be declared acceptable. (d) work motivation has no significant effect on employee performance, because the statistical t value is 0.535 which means it is smaller than 1.96, so the h4 hypothesis reads "work motivation has a significant effect on employee performance at upt livestock breeding and animal health in madura”, can be declared not accepted. (e) competence has a significant effect on employee performance, because the statistical t value is 3,396 which means it is greater than 1.96, so the h5 hypothesis reads "competence has a significant effect on employee performance at upt livestock breeding and animal health in madura”, can be declared acceptable. (f) compensation has a significant effect on employee performance, because the statistical t value is 2,281 which means it is greater than 1.96, so the h6 hypothesis reads "compensation has a significant effect on employee performance at upt livestock breeding and animal health in madura”, can be declared acceptable. (g) satisfaction employee have a significant effect on employee performance, because the statistical t value is 2,478 which means it is greater than 1.96, so the h7 hypothesis reads "employee satisfaction has a significant effect on employee performance at upt livestock breeding and animal health in madura”, can be declared acceptable. structural model testing (inner model) in assessing the model with pls begins by looking at the r-square for each dependent latent variable. changes in the r-square value can be used to assess the effect of certain independent latent variables on the dependent latent variable whether it has a substantive effect. for endogenous latent variables in a structural model that has an r2 of 0.67 indicating that the model is "good", an r2 of 0.33 indicates that the model is "moderate", an r2 of 0.19 indicates that the model is "weak" (ghozali, 2013: 81). the pls output is as explained below: table 6 value r-square for independent variables work motivation (x1) and competence (x2) and compensation (x3) which affect variables employee satisfaction (z) in the structural model has an r2 value of 0.478 which indicates that the model is "moderate", meanwhile work motivation (x1)and competence (x2), compensation (x3), and employee satisfaction (z) which affects the employee performance variable (y) in the structural model has an r2 value of 0.700 which indicates that the model is "good". the suitability of the structural model can be seen from q2, as follows: q2 = 1 – [(1 – r1)*(1 – r2)] = 1 – [(1 –0.478)*(1 – 0.700)] = 1 – [(0,522)*(0.300)] = 1-[0,157] = 0,843 discussion the effect of work motivation on employee satisfaction at upt livestock breeding and animal health in madura based on the results of the study, it was found that work motivation has no significant effect on employee satisfaction, because the statistical t value is 1,700 which means it is smaller than 1.96. this means the hypothesis that reads "work motivation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, was declared not accepted. the results in this study prove that work motivation does not have a significant effect on employee satisfaction but has a positive direction of influence. the positive influence that occurs can be interpreted as having a direct influence between work motivation and employee 24 satisfaction. this can be interpreted that the higher the motivation possessed by employees in work, it will further increase employee satisfaction. the findings in this study prove that high employee satisfaction can be formed through good work motivation. by looking at these results then when upt livestock breeding and animal health in madura want to increase the feeling of satisfaction by employees at work, it is very important for companies to pay attention to the level of motivation. the findings in this study do not support the results of research conducted by adam and kamase (2019)which proves that motivation positive and significant effect on work satisfaction. the effect of competence on employee satisfaction at upt livestock breeding and animal health in madura based on the results of the study, it was found that competence has a significant effect on employee satisfaction, because the statistical t value is 2,486 which means greater than 1.96. this means the hypothesis that reads "competence has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, declared accepted. the findings in this study prove that competency has a significant effect on employee satisfaction by having a positive influence. this positive influence can be interpreted that there is a unidirectional influence, so it can be interpreted that the higher the competence possessed by employees, the more they can increase employee satisfaction at work. by looking at these results it can be interpreted if upt livestock breeding and animal health in madura if you want to increase employee satisfaction at work, it is very important for agencies to pay attention to the level of competence possessed by employees. however, the results in this study are not in line with the findings proven by adam and kamase (2019) who proved in their research that competence has an insignificant positive effect on work satisfaction. the effect of compensation on employee satisfaction at upt livestock breeding and animal health in madura based on the research results, it was found that compensation has a significant effect on employee satisfaction, because the statistical t value is 2,648, which means greater than 1.96. this means the hypothesis that reads "compensation has a significant effect on employee satisfaction at upt livestock breeding and animal health in madura”, declared accepted. mulyah et al (2020), so that compensation goals are achieved and provide satisfaction for all parties, a compensation program should be established based on fair and reasonable principles, labor laws, and pay attention to internal and external consistency .by looking at these results it can be interpreted if upt livestock breeding and animal health in madura if you want to increase employee satisfaction at work, it is very important for companies to provide supportive compensation for each of their employees. the results in this study are in line with the findings of research conducted by mulyah et al (2020) found that compensation has a significant effect on employee job satisfaction. the effect of work motivation on employee performance at upt livestock breeding and animal health in madura based on the results of the study, it was found that work motivation has no significant effect on employee performance, because the statistical t value is0.535which means smaller than 1.96. this means the hypothesis that reads "work motivation has a significant effect on employee performance at upt livestock breeding and animal health in madura”, was declared not accepted. the findings in this study prove that increasing employee performance can be increased by work motivation but the effect is small because the results obtained are not significant. in improving its performance, employees need motivation to achieve the goals of the company. so work motivation is a psychological condition that encourages workers to try to produce goods or services so that a goal can be achieved (hartati, 2020). thus, if the upt livestock breeding and animal health in madura wants to improve the performance of its employees, then it is very important for the leadership to increase the provision of encouragement as a form of motivation for employees. the findings in this study are not the same as the findings adam and kamase (2019)which proves that motivation positive and significant effect on performance. likewise with the findings treasure (2020) which proves that motivation significant effect on employee performance. the effect of competence on employee performance at upt livestock breeding and animal health in madura based on the results of the study, it was found that competence has an effect on employee performance, because the statistical t value is3,396which means greater than 1.96. this means the hypothesis that reads "competence has a significant effect on employee performance at upt livestock breeding and animal health in madura”, declared accepted. the results obtained through testing this hypothesis found that competency has a significant effect on employee performance by having a positive direction of influence. the direction of this positive influence can be said that the higher the competency ownership of each employee at work, the higher the employee's performance at work will be. by looking at these results it can be interpreted that if upt livestock breeding and animal health in madura if you want to improve the performance of its employees, it is very important for companies to improve the competence of their employees through providing better training. this result is in line with the findings treasure (2020)which proves that competence partially significant effect on employee performance. however, these results 25 are not the same as the findings of adam and kamase (2019) who found in their research that competence has a positive and insignificant effect on performance. the effect of compensation on employee performance at upt livestock breeding and animal health in madura based on the results of the study, it was found that compensation has an effect on employee performance, because the statistical t value is2,281which means greater than 1.96. this means the hypothesis that reads "compensation has a significant effect on employee performance at upt livestock breeding and animal health in madura”, declared accepted. the results obtained through testing this hypothesis found that compensation has a significant effect on employee performance by having a positive direction of influence. the direction of this positive influence can be said that the higher the compensation received by employees at work, it will further improve employee performance at work. hasibuan (2017), defines that compensation is all income in the form of money, goods directly or indirectly received by employees in return for services provided to the organization. this result is in line with the findings of febriani (2016) which proves that work motivation has a positive and significant effect on civic organizational behavior (ocb). the effect of employee satisfaction on employee performance at upt livestock breeding and animal health in madura based on the research results, it was found that employee satisfaction has an effect on employee performance, because the statistical t value is equal to2,478which means greater than 1.96. this means the hypothesis that reads "employee satisfaction has a significant effect on employee performance at upt livestock breeding and animal health in madura”, declared accepted. based on the results of testing the hypothesis, it is found that employee satisfaction has a significant influence on employee performance with a positive influence. this positive influence can be said that there is a direct influence between employee satisfaction and employee performance, which means that the higher the employee engagement in work, the higher the employee performance. so that high employee performance can be formed through high employee satisfaction. the findings in this study found that employee satisfaction has a significant effect on employee performance. by looking at these results, it can be said that if the upt of livestock breeding and animal health in madura wants to improve employee performance, it is very important for companies to pay attention to the level of employee engagement in work. the findings in this study also support the findings treasure (2020) which proves that compensation partially significant effect on employee performance. iv. conclusions and suggestions conclusion based on the results of the analysis obtained, the following conclusions can be drawn: (1) work motivation has no effect on employee satisfaction. (2) competence affects employee satisfaction. (3) compensation affects employee satisfaction. (4) work motivation has no significant effect on employee performance. (5) competence affects employee performance. (6) compensation affects employee performance. (7) employee satisfaction affects employee performance suggestion based on the results of the analysis and discussion carried out, the researcher provides several suggestions that can contribute to improving employee performance and for further research. the suggestions are as follows: (1) it is expected upt livestock breeding and animal health in madura is better at providing adequate compensation for employees so as to increase employee satisfaction and trigger increased employee performance. (2) it is hoped that future research that wants to research the same topic can use other variables that can affect the level of employee performance so that they can develop the research results that have been obtained in this study. bibliography [1.] abdillah, w., & hartono, j. (2015). partial least square (pls) : alternatif structural equation modeling (sem) dalam penelitian bisnis. andi. [2.] adam, f., & kamase, j. (2019). the effect competence and motivation to satisfaction and performance. international journal of scientific and technology research, 8, 132–140. [3.] edison, e., anwar, y., & komariah, i. (2016). manajemen sumber daya manusia (1st ed.). alfabeta. [4.] febriani, c. (2016). faktor-faktor yang berhubungan dengan deteksi dini kanker leher rahim di kecamatan gisting kabupaten tanggamus lampung. jurnal kesehatan, volume vii, nomor 2, agustus 2016. kesehatan. [5.] ghozali, i. 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(2015). manajemen sumber daya manusia untuk perusahaan (7th ed.). pt. raja grafindo persada. sinergi, volume 7 number 2 september 2017 wiwik handayani 1) , rendraabdi prayogo 2) green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing 25 green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing wiwik handayani 1), rendra abdi prayogo 2) 1)2) faculty of economics, universitas pembangunan nasional “veteran” jawa timur 1) email : wi2k_anday@yahoo.com (submit : 02 july 2017; revised : 04 august 2017; aceepted : 24 august 2017) abstract. this research is referred to analyse the influence of consumer attitude of green product towards purchase intention. the consumer attitude of green product is a psychological tendencies that is expressed by evaluating a certain entity with some advantage or disadvantage considerations. the problem of this research is the low of cunsumer awareness to consume green product, because the lack to comprehend the importance of green product usage for health and eco-friendly. the purpose of this research is to test the influence of consumer attitude of green products towards purchase intention. hypothesis testing using partial least square (pls). the result of analysis show that there is influence among consumer attitude of green product towards consumer purchase intention significantly. keywords : consumer attitude, green product, buying interest, green marketing i. introduction green consumerism is the continuation of global consumerism action that started with consumer awareness about their rights to get proper product, safe, and ecofriendly product. consumer awareness of eco-friendly product become a suitable issue to be lifted remembering that stuff is important for future human sustainability. (dono et al., 2010) recently, the global warming issue is getting often to be spoken, it’s global warming condition that damage the nature. the appearance of global warming issue makes citizens and companies be aware again that overseeing environment is really needed. there is a phenomenon that to make eco-friendly environment so we have to be back to the nature, in consuming or marketing. the green term is getting often to be spoken even become an interesting issue in research of knowledge. green has gone mainstream because more people are worried about sustainability related issues than ever before (ottman, 2011). the green term is related with eco-friendly solution or design, or as little as possible gives bad impact result in environment, so it’s expected to be able contribute to curb global warming. this phenomenon gives a picture of how cheap green term in our life, whereas actually it can be very expensive. it’s not about the price, but the value, expensive of the comprehension, the aplication, to build realistic green that can curb this global warming. (kompasiana.com, 2015). these topic could certainly use future development.thus, with investments and foresight from pioneering organizations can develop the necessary green capabilities and resources to build markets (bigliardi et al., 2012). commitments by organizations focusing on environmentally friendly products and services and to conduct marketing activities in an environmental responsible way (kinoti, 2011).marketers also have the responsibility to make the consumers understand the need for and benefits of green products as compared to nongreen ones. in green marketing, consumers are willing to pay more to maintain a cleaner and greener environment. consumers, industrial buyers and suppliers need to pressurize to minimize the negative effects on the environment-friendly. green marketing assumes even more importance and relevance in developing countries like india (sarkar,anirban, 2012). green marketing is product marketing concept using the materials that not damage environment. green marketing will be created if there is an awareness of company to take care environment by applying of green marketing concepts. green marketing is believed to be essential for sustainable development by striking a balance between ecology, industrialization and human life.green marketing is not only possible but also it is sustainable as well as profitable from various quarters (das et al. 2012). nadaf and nadaf (2014) described that “green marketing is the process of developing products and services and promoting them to satisfy the customers who prefer products of good quality, performance and convenience at affordable cost, which at the same time do not have a detrimental impact on the environment. polonsky (2011) proposed that transformative green marketing can be implemented by (a)creating alternative ways of presenting value and costs (considering environmental value), (b) changing the communications approach with a focus on education about humanenvironment interface and importance of action and inaction; and (c) reframing consumption as want satisfaction rather acquisition of goods. kilbourne (2010) emphasised about the integration of environmental issues into marketing approaches and actions for sustainability. companies can reach to these green segments by designing effective integrated marketing communications (imc) matching to identified profiles, by sinergi, volume 7 number 2 september 2017 wiwik handayani 1) , rendraabdi prayogo 2) green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing 26 highlighting their product’s value proposition and competitive differentials for ensuring sustainable development . by developing a deeper understanding of key issues of sustainable consumption, future for industries will be untangled, clear, good for their businesses and good for sustainable development. corporate must realize the fact that sustainability has created immense opportunities for them and has constructed a bridge between business and green, ensuring a better quality of life for everyone, now and for the generations to come. ( saxena, 2010). green marketing is not going to be an easy concept. the firm has to plan and then carry out research to find out how feasible it is going to be. adoption of green marketing may not be easy in the short run, but in the long run it will definitely have a positive impact on the firm. the companies are involved in various activities to show their concern for environment as well as society, but at the same time it is necessary for the companies to understand that green marketing should not overlook the economic aspect of marketing. green marketing helps in the effective outcomes like cost cutting, employee satisfaction, waste minimization, society welfare for the companies as well for society also (devi,r.uma, 2015). unruh, g. and ettenson, r. (2010) believe that developing green products make sense for their organization and need to determine the best path forward. a green product is a product whose design and/or attributes (and/or production and/or strategy) use recycling (renewable/toxic-free/biodegradables) resources and which improves environmental impact or reduces environmental toxic damage throughout its entire life cycle. note that each code containsseveral synonymic terminologies; for example:green: environmental or ecological; attributes: functions, ideas, practices, or qualities;uses: incorporates; recycling: renewable, toxic-free, or biodegradable; resources: energy, materials, or ingredients; benefits: maximizes, encourages, or contributes; reduces: minimizes, saves, or eliminates, and toxic damage: pollution (durif , boivin , julien, 2010). green products can be green for a number of reasons, including being manufactured in a green way or products when used make for a greener way of life (mohanasundaram, 2012). therefore, due to the attention of the society, many organisations have started to accept their environmental responsibility (chen, 2010). chen & chai (2010) defined green product/service as the product/service that will not spoil the environment or deprecate natural resources, and can be recycled or conserved. according to martin & simintiras (1995) consumers are converting their environmental concern into green buying behaviour. chase (1991) as cited in kim & chung (2011) argued that environmentally conscious people were changing their buying behaviours for a better environment. currently, there are already many green products in market, in fashion market, consumer goods and construction materials. construction materials are also needed to be attention because containing chemicals that can danger people’s health. as an example, wall painting has voc which is organic compound that easy to evaporate in the air. mostly of bad effects of this material can be felt after several years or even multiple tens. this voc spread through many varians of product such as wall painting and varnish, so in the usage must be careful because the effect that made by this additive substance is really dangerous and soil the environment (www.homefamilia,2015). based on phenomenon above, so the next will be done a research about the influance consumer attitude of green product towards purchase intention. a. attitude toward green product green consumers are defined as consumers who prefer products that are not likely to endanger human health or damage the environment (tekade & sastikar, 2015; xie et al., 2014). green consumers are the ultimate users of end products that are manufactured, although industrial consumers may be green as well, the focus is on individual or household consumers. arguably, much of the green movement is driven by consumers, who then make their needs known through the supply chain, helping, in turn to green the supply chain and markets (brindley & oxborrow, 2014). organizations are quite aware of green consumer preferences, clearly profit-driven companies will be strongly encouraged to green themselves the green consumer is typically known as one who support eco-friendly attitudes and/or who purchases green products over the standard alternatives (boztepe, 2012). almost all consumers are conceivably green consumers. for instance, when a consumer has option to choose from two similar products, the consumer will choose to buy environmentally friendly product. there have been a total of various circumstances which are influential in encouraging green consumers to buy green products. far-reaching research over the years classify that intensive understanding of green issues; heightened level of knowledge opportunity on environmental subsistence; green advertising by corporations; raised concern for the environment; expanded in recognition of green products by environmental and social charities as some circumstances. this overpowering advance in the general environmental awareness among various consumer biography have been attempt undertaken by companies to go green by introducing the idea of corporate environmentalism (cherian & jacob, 2012). consumers' environmental concerns are connected to the benefit towards the biophysical environment and its issues connected to the consumer and the surroundings. initially, gender plays an essential role in consumerism and environmental consciousness (kaufmann, panni, or phanidou, 2012). it has been recognized by prior research that women were more concerned about the environment than men. besides, it has been told that consumers show environmental concerns depending on product features, precision of green product claims, information provided on the products and its advantages (suki, 2013). there are psychographic and cultural factors that are closely related to personal beliefs. psychographic variables may include attitudes, behaviors and concerns of individuals (zhao et al., 2014). in addition, cultural factors such as individualism and collectivism may also be categorized as psychographic variables (xue, 2015). sinergi, volume 7 number 2 september 2017 wiwik handayani 1) , rendraabdi prayogo 2) green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing 27 green consumer behavior (zhao et al., 2014) single psychographic factors or combinations of them can result in different consumer behaviors with respect to green activities. different groups of individuals who share the same or similar psychological factors may form behavioral segments within the context of sustainable lifestyle. although what was found in this literature review mentioned psychographics, explicit investigation of psychographic-specific characteristics and green consumerism was only evident in two publications (chan, 2000; zhao et al., 2014). green consumer behaviour is a consumer behaviour that applying eco-friendly knowledge in every their consuming action. there are some actions that must be done of consumer as a realization of eco-friendly consumer behaviour which is known by 3r (reduce, reuse dan recycle) mils,(2012). several researchers wanted to uncover the role of attitude on green consumption. kim (2011) tried to understand the green consumption patterns by investigating the role of collectivism, personal values, environmental attitudes and effective consumer perception. hartmann & apaolaza-ibanez (2012) argue that, in general, attitudes towards green products contribute to the purchase of green products. consumer attitude towards environment is a common tendency that is learnt or formed in responding consistently towards environment in a positive or negative form, which is based on cognitive, affective, and conative. this thing can be seen from there is still lack of consumer’s knowledge about eco-friendly claim. consumer will believe information that is given by company without processing the information more continously because consumer has had trust of product quality. the information of environment on product table, has not been fully give a clearly picture to consumers about the impact of consuming product to environment. in the reality, the available of data and information linked with environment and the products that are claimed green products still of lack so actually consumer don’t know about the truth of those claims fully. b. the dimension of consumerattitude toward green product someone who concerned of many people importance especially family, there is a tendency to do positive attitude toward green product. this opinion is supported by the result of cheah and phau’s research (2011). that explain positive relation between value orientation with consumer attitude towards green product. the dimensions of attitude toward green productvariable former are : 1.ecoliteracy, ecological knowledge that is also called as ecoliteracy is a consumer skill to identify or difine some symbols, concepts and behaviour linked to the problem of ecological environment(laroche et al. 2001, in anvar and venter, 2014). 2. interpersonal influence, is the influence of persuade action or influence others to a specific purpose. the main influence of individual behaviour is the influence from another person (bearden et al, 1989, in cheah and phau,2011). 3.value orientation as individual tendency to reach expected purpose,based on the importance level, and guide the principles into people’s lifes (laroche et al., 2001in anvar and venter, 2014). c. the definitions of purchase intention purchase intention is consumer tendency to buy a trademark or take an action that is related with a purchase that measured with consumer probability to do the purchase level. it can be called that purchase intention is mentally question from consumer who reflect purchase planning a number of product with a certain trademark. this is really needed by marketers to know consumer purchase intention towards a product, the marketers or economists use intention variable to predict consumer behaviour in the future. purchase intention is obtained from a learning process and thinking process that form a perception. the purchase intention that appear create a motivation that recorded continously on their mind, and finally when a consumer must fill their necessary will actualization what’s in their mind. thus, purchase intention is an important thing in a business. indicator purchase intention of rizaimyet. al, (2010) and phuah et.al. (2011). d. the influence of consumer attitude of green product toward purchase intention several researchers wanted to uncover the role of attitude on green consumption. kim (2011) tried to understand the green consumption patterns by investigating the role of collectivism, personal values, environmental attitudes and effective consumer perception. kareklas, carlson, and muehling (2014) expect that consumers’ beliefs that organic farming is less harmful to the environment will positively impacttheir organic food– related attitudes and purchase intentions. the attitude toward environment with product purchasing or the willing to use it. the researchers conclude that individual has positive attitude with environment will be more participate in buying and consuming green product (kinnear et al, 1974; amyx et al, 1994; mccarty and shrum, 1994; in cheah dan phau, 2011). this thing indicate, the more higher individual or consumer mixed up with environment, the more higher they will buy green product. this concept is also supported by the result of cheah and phau (2011) research, that consumer who has positive attitude toward green product, will have a want to buy green product attitude is someone expression that express a sense of like or dislike on an object. someone attitude and his behaviour are really related, which is if someone has positive attitude so the behaviour will be positive too. the attitude towards green product purchase behaviour has positive correlation, supported by the research of cheah and phau (2011) where the consumer who has an attitude that gives advantage to their environment will buy green product in market. based on the background and problem that have been explained before, so the hypotheses who can sinergi, volume 7 number 2 september 2017 wiwik handayani 1) , rendraabdi prayogo 2) green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing 28 be formulated is : that consumer attitude toward green product made positive influence toward purchase intention. ii. methods a. participants the population of this research is wall painting consumer. this research uses purposive samplingtechnic with criteria : the consumer who will buy eco-friendly wall paint, the age of at least 21st, the consumer who understand about green product. b. instrument the variableof this research is consumer attitude toward green product,formed by ecoliteracy, interpersonal value and value orientations.quesionaire that usingwere study sum 20 item. five items to measure respondents’ ecoliteracy were adapted from the work of (laroche et al. 2001, in anvar and venter, 2014).five items to measure respondents’ interpersonal influence were adapted from the work of (bearden et al, 1989, in cheah and phau,2011). five items to measure respondents’ value orientations were adapted from the work of (laroche et al., 2001in anvar and venter, 2014). six items of behavioral intention to purchase green products were constructed based on the studies of rizaimyet. al, (2010) and phuah et.al. (2011).all items were measured using 5-point likert scale (1 is low and 5 is high). c. procedurs the descriptive survey using questionaire was employed in this study to examine how consumers’ perceived green products affect their behavior intention to purchase the products.the survey was conducted to customer green product. the quesionaire were shared to 50 people who will buy eco-friendly wall paint. then the data were analyzed use partial leastsquare (pls). iii. results the result of research show that model outer value (measurement model) with showing that all dimension in variables of green products attitude show good validity, (factor loading) the entire above 0,5 and significan, bigger than 1,645. so it can be concluded that all dimension as variable measurer of green product attitude. theinner model testing orstructural model was done to see the relations among variables, significancy of value and r-square is goodness-fit modeltesting. based on table above value of r 2 = 0,572046. based on above table is obtained :attitude of green product influence toward purchase intention with path coefficient as 0,756337, can be received, which is score of t-statistic = 22,592258 is bigger than score of z α = 0,10 (10%) = 1,645, so the significant is positive. iv. discussion based onthe research is obtained that hypotheses who is submitted by consumer attitude toward green product influence positively to purchase intention of ecofriendly is the truth, because from the result of research declare that consumer attitude toward green productinfluence positively toward purchase intention of wall paint can be received. this research is also supported research-researchthat there is positive influence from understanding of environment on positive attitude formation toward green product and influence positively toward consumer attitude on consumer willing to buy green product. the result of this research show that on common consumer knowledge in green product can interpret symbol of eco-friendly written on that product. with the increasing of consumer awareness toward environment, so consumer interest to use it and have th positive impact for environment sustainability in a general way and consumer health for special way. making consumer active to search the information about eco-friendly wall paint product. this information sources are obtained by consumer from many media sources, such as television, newspaper, magazine, tabloid, and scientific. the information about the product also can be obtained from friend, family, or formally from company’s promotion, that means that the care toward environment causes positive attitude to environment. therefore, from attitude will make influence of consumer willing to buy the product, this is called ecological. thus, it shows there is positive influence about environment on consumer positive attitude on consumer willing to buy eco-friendly wall paint product. v. conclussion based on the research can be concluded that consumer attitude toward green product able to increase consumer purchase willing. this is because there is awareness of the important taking care the health and create eco-friendly condition in our environment. the spreading of information and knowledge about green product must be increased continously. thus consumer be able to interpret the symbol of eco-friendly in the future on the product and will getting aware that by buying and using green product, it means that participate in environment sustainability. the company is better to add information and promotion programs that can attract consumer purchase intention toward green product. next research can learn green product promotion variables, communication and technology of information to increase the knowledge and interpretation of consumer and the variables green consumerism variable. vi. references [1] anvar,m., and venter, ms. (2014). attitudes and purchase behaviour of green products amonggeneration y consumers in south africa, mediterranean journal of social sciencesmcser publishing, rome-italy,5(21). [2] boztepe, a. (2012). green marketing and its impact on consumer buying behavior. european journal of economic and political studies, (1), pp. 5-21. [3] brindley, c., & oxborrow, l. (2014). aligning the sustainable supply chain to green marketing needs: a case study. industrial marketing management, 43(1), pp. 45-55. sinergi, volume 7 number 2 september 2017 wiwik handayani 1) , rendraabdi prayogo 2) green consumerism : an eco-friendly behaviour form through the green product consumption and green marketing 29 [4] chan, e. s. w. (2013). managing green marketing: hong kong hotel managers’ perspective. international journal of hospitality management, (34), pp. 442-461. [5] chan, r. y. (2000). an emerging green market in china: myth or reality? business horizons, 43(2), pp. 55-60. [6] cheah, i., andphau, i. 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(2011). green marketing intervention strategies and sustainable development: a conceptual paper. international journal of business and social science, 2(23), pp. 263. 32 [17] mills, rebecca m. ag. (2012). what it means to go green: reduce, reuse, repurpose, and recycle. logan, utah state university. [18]mohanasundaram, v. (2012). green marketing–challenges and opportunities. international journal of multidisciplinary research, 2(4), pp.66-73. [19] nadaf, y. b. r. and m. nadaf, s. m. (2014). green marketing: challenges and strategies for indian companies in 21st century, impact, international journal of research in business management, 2 (5), pp. 91-104. [20] ottman, j., (2011). the new rules of green marketing: strategies, tools, and inspiration for sustainable branding”, sheffield, uk: greenleaf publishing. 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[31] xu, p., zeng, y., fong, q., lone, t., & liu, y. (2012). chinese consumers’ willingness to pay for greenand eco-labeled seafood. food control, (28), pp. 74 82. [32] xue, f. (2014). it looks green: effects of green visuals in advertising on chinese consumers’ brand perception. journal of international consumer marketing, 26(1), pp.75-86. [33] zhao, h.-h., gao, q., wu, y.-p., wang, y., & zhu, x.-d. (2014). what affects green consumer behavior in china? a case study from qingdao. journal of cleaner production, (63), pp.143-151. [34] www.kompasiana.com.2015 [35] www.homefamilia,(2015). 38 frans salesman1, marianus tapung2, leonardus ino setiawan3 strategy and policy increasing human development index of manggarai regency 20162021 sinergi, volume 8 number 1 march 2018 latar belakang indeks pembangunan manusia (ipm) adalah indeks paduan: indikator kesehatan melalui harapan hidup, indikator pendidikan melalui harapan rata-rata dan usia sekolah, dan daya beli yang nyata per kapita. tingkat ipm provinsi ntt pada 2016 adalah 63,13 poin, dan kabupaten manggarai pada tahun yang sama sebesar 61,87 poin. bila dibandingkan dengan hdi nasional, hdi kabupaten manggarai masih rendah. oleh karena itu, perlu dikembangkan strategi dan kebijakan manggarai hdm selama 2016-2021. mengembangkan strategi dan kebijakan untuk memperbaiki indeks pembangunan manusia di manggarai 2016-2021. metode. menganalisis publikasi data bps nusa tenggara timur dan kabupaten manggarai 2014-2016, profil kesehatan kabupaten manggarai. data kualitatif diperoleh dari persiapan fgd rencana pembangunan jangka menengah kabupaten manggarai 2016-2021. 42 peserta fgd 42 orang. hasil. pengembangan strategi dan kebijakan ekonomi, pendidikan dan pengembangan kesehatan yang dapat mempercepat pertumbuhan ipm di kabupaten manggarai selama tahun 2016-2021. kesimpulan .ipm di kabupaten manggarai telah berada dalam kelompok “moderat/sedang” dengan angka 2014 sebesar 60,08 poin, 2015 oleh 60,87 poin, dan pada tahun 2016. pertumbuhan ipm antara 2015-2016 adalah 1,31% jika menggunakan pengurangan kekurangan, pertumbuhan ipm di manggarai termasuk dalam kategori lambat karena tingkat akuisisi <1,70. mempercepat pertumbuhan ipm merupakan harapan bagi semua pihak. oleh karena itu, diperlukan strategi dan kebijakan yang efektif untuk meningkatkan pertumbuhan hdi yang lambat agar bisa berakselerasi dengan memanfaatkan semua sumber daya yang ada. kata kunci: indeks pembangunan manusia, strategi pembangunan strategy and policy increasing human development index of manggarai regency 2016-2021 frans salesman1, marianus tapung2, leonardus ino setiawan3 1stikes citra husada kupang email.franssalesman@gmail.com http://orcid.org/0000-0002-1116-4591 2 stkip santu paulus ruteng email : mtmantovanny26@gmail.com 3 stie karya ruteng email: leonardusino@yahoo.com submit: 04 december 2017, revised: 15 january 2018, accepted: 18 january2018 intriduction human development index (hdi) is one way to measure the performance of a country or region in the field of human development. ipm is a composite index covering three areas of human development: health indicators, educational level, and economics. the physical quality of a human being reflects the life expectancy, while the non-physical quality is reflected in the expectations of the school, the average length of the population in school, and the economic capability of real per capita expenditure. data on the development of hdi has been expressed by experts, where in 2014, indonesia was ranked 108 out of 187 countries in the world, with the hdi rate of 73.81 consisting of; health index (life expectancy) 70,10; education index (school length) 9.10; and 3.455 buying power index. compare it with world average of hdi in the same year equal to 74,70; with health index 68.30 education index; 39frans salesman1, marianus tapung2, leonardus ino setiawan3 strategy and policy increasing human development index of manggarai regency 20162021 sinergi, volume 8 number 1 march 2018 81.00, and purchasing power index; 9,361. while the development of hdi in the province of ntt in 2016 amounted to 63.13 points, and the district manggarai hdi in the same period of 61.67 point. to prepare the regional medium-term development plan (rpjmd) of manggarai regency in 2016-2021, it is necessary to analyze the development of human development index of manggarai regency in 2016 as a basis for determining the priority policy of regional development in the field of human resources in the future. method types of research combined quantitative and qualitative approaches. in a quantitative approach using a meta-analysis approach analysis analyzing the development of the human development index from 2010-2015 that has been processed by the central bureau of statistics of east nusa tenggara province is integrated with health profile data of the public health offices of manggarai regency in 2015. qualitative approach, the fgd results of the preparation of the manggarai regency medium-term development plan of 2016-2021 which has become the development reference in manggarai regency for the next five years. the fgd participants are 42 people, consisting of representatives from the local government budget team, district heads and agencies, lsm, community leaders, and religion leaders. results the human development index (hdi) is expressed in terms of numbers as a resultant established, mean of school expectancy (hls), school average (rls), life expectancy period (uhh), and per capita expenditure average per year. in its development in manggarai districts during 2014 to 2016 experienced positive growth, although with very small numbers. development in manggarai district, always below the average level of the province of east nusa tenggara. look at the following table 1.1 table 1.1 development of hdi-forming elements in manggarai regency 2014-2015 source: bps ntt tahun 2014-2016 the numbers listed in table 1.1 form hdi as the resultant, can be observed in the development of manggarai district during the year 2014-2016 with comparison of the development of hdi nusa tenggara timur in the same year. the growth rate of manggarai regency hdi in 2014 is 60,08 point (ntt 62,26 point), 2015 is 60,87 point (ntt 62,67 point), and year 2016 is 61,67 point (ntt is 63, 13). although the hdi of ntt province is above manggarai district, but if it is compiled with national level and ranked according to the provinces in indonesia, the result of ntt province is always ranked 31 out of 34 provinces in indonesia. notice the chart below. graph 1. development of hdi in manggarai regency compared to the development of hdi nusa tenggara timur 2014-2016. the achievements of human development in a region at a certain time can be grouped into four groups. this grouping aims to organize the territories into four groups in terms of human development, that is; (1) “highest” group: ipm ≥ 80; (2) “high” group: no. unsur pembentuk ipm hls (tahun) rls (tahun) uhh(tahun) pengeluaran per capita/ th(rp.000) 1 2 3 4 11,29 6,79 64,78 6.934 12,65 6,85 65,91 6.934 11,60 6,81 65,48 6.875 12,84 6,93 65,96 7.003 11,52 6,97 65,66 7.008 12,97 7,02 66,04 7.112 tahun 2014 manggarai manggarai manggaraintt ntt ntt 2015 2016 40 frans salesman1, marianus tapung2, leonardus ino setiawan3 strategy and policy increasing human development index of manggarai regency 20162021 sinergi, volume 8 number 1 march 2018 70 ≤ hdi <80; (3) “medium” group: 60 ≤ hdi <70; and (4) “low” group: hdi <60. the figures shown in graph 1 show that hdi in manggarai district and in ntt province have been in “moderate” group but hdi of manggarai regency has been out of “low” group since 2014 with hdi 60,08 point, year 2015 of 60.87 points, and the year 2016 of 61.67 points. referring to the publication of bps nusa tenggara timur 2017 on the growth of hdi number in 2015-2016 in manggarai regency of 1.31% and ntt province by 0.73%, adjusted by using shortfall reduction, ipm growth in manggarai is included in slow category because the number of < 1.70. ipm’s slow growth affects human competitiveness. superior human resources have the opportunity to access educational, economic and health resources will eventually be able to contribute to the economic growth of a region. accelerating the growth of hdi is a hope for all parties. therefore, effective strategies and policies are needed to boost the slow growth of hdi to accelerate by utilizing all available resources. strategies and policies 1. economic region the strategy of economic development as one of the decisive pillars improves the human development index in manggarai by strengthening the regional economy based on agro-agriculture. policy is done through; (1) building microcredit institutions for the poor by encouraging people to help themselves, because the poor actually have hidden capabilities that have not been utilized; (2) to develop community economic empowerment through human cultivation, community development, business development and assistance by independent professional groups; (3) creating rural econetic business packages leading to rural independence, environmental sustainability, rural ecotourism. for example: organic compost business packages, organic farming packages, rural energy packages; (4) encourage informal enterprises based on micro enterprises of rural communities; (5) increased purchasing power is not just an economic problem, but also a social, cultural, and environmental issue. it needs to be upgraded simple living movement, non-consumptive culture, no exception applied to all walks of life that leaders emulate; (6) moving afforestation, reforestation, restoration of protected areas, water catchment at irrigation water sources and drinking water; (7) the development of laborintensive construction is accompanied by independent professional institutions, and is always audited in a transparent manner. 2. field of education there are three main strategies of education to improve the human development index, namely: equity and access expansion, quality improvement and relevance; and governance, accountability and public image. the translation through policy; (1) improved access to quality secondary education; (2) strengthening the private sector’s role in providing quality early and qualified primary and secondary education services; (3) construction of school library facilities and infrastructure at every level of education; (4) extension of access to basic and general secondary and vocational education; (5) improvement of facilities and learning infrastructure; (6) enhancing the private sector’s role in education; (7) provision of scholarship budget in apbd; (8) partnership with reputable state and private universities; (9) provision of facilities and facilities to support the quality of learning; (10) development of quality of learning and quality of educator; (11) development of transparent and accountable education governance; (12) management of an accountable national education curriculum and the provision of supporting facilities and infrastructures; (13) development of public library facilities and infrastructure in every sub-district and village; and (14) sports development on the leading sports branches; (15) scout development and youth organization and scouting; (16) blk development and enhancement of education and training in the formation of labor competencies in various business fields. 3. health sector manggarai district health development policy of 2016-2021 with the following policy; (1) enhancement of health efforts, consisting of individual health enterprises (ukp) and public health enterprises (ukm), through; (i) improving the governance 41frans salesman1, marianus tapung2, leonardus ino setiawan3 strategy and policy increasing human development index of manggarai regency 20162021 sinergi, volume 8 number 1 march 2018 of the ben mboi district hospital as a secondary referral service; (ii) improvement of facilities and infrastructure of puskesmas, posyandu as central of primary health service in order to provide optimal and equitable service for rural community; (iii) improving the nutritional status of the community, especially the poor, babies, toddlers, pregnant women, lactating mothers, and the elderly; (iv) the fulfillment of access to quality maternal, child, adolescent and aged health services; (v) improvement of infectious and non-infectious disease control and environmental sanitation; (2) management sub-system, information and health regulation, through; (i) strengthening of managerial capacity in health offices, puskesmas, pustu, posyandu; (ii) strengthening the regional health information system (sikda), sp2tp and reporting at the regional general hospital as well as at the puskesmas; (iii) the preparation of districtlevel health regulations (village regulations and district regulations), enhanced by the villages; and (iv) improvement of supervision and promotion and training of health personnel as well as improvement of health information system coordination; (3) health human resource sub-system, through; (i) improving the quality of health human resources through distance education (pjj) enabling health workers working in health care facilities without leaving the workplace; (ii) increasing the number, type of health human resources as needed to achieve mss standards; (iii) distribution of health human resources distribution of health service centers throughout manggarai regency; (iv) fair and transparent incentives (medical services); (4) sub-system of pharmaceutical supplies, medical devices and foods, through; (i) providing essential medicines and ensuring access to drugs to the public; (ii) improvement and calibration of health equipment and facilities and laboratories to support health services; (iii) supervision of food and food products containing hazardous substances; (iv) supervision of drug sales and distribution; (5) health financing sub-system, through (i) coordination of various sources of health financing in the framework of efficiency, and effectiveness of health budget; (ii) balancing health financing in apbd between promotive, preventive, curative and rehabilitative; (6) community empowerment sub-system through; (i) revitalization and development of communitybased health efforts (posyandu, standbye village); (ii) the change of customary paradigm in financing the care of sick members; (iii) strengthening the institutional of customary capacity, religion and community in an effective and integrated health and referral system; (d) increasing promotion to create phbs to the community; and (7) sub-system of research and development of health science and technology, through; (i) improvement of research and policy-based policy development activities based on evidence of vidence based policy); (ii) research on health-care tariff based on ability and willingness to pay the community; (iii) strong institutional and human resources strengthening of researcher and professionals. conclusion hdi in manggarai district has been in the “moderate” group with 2014 figures of 60.08 points, 2015 by 60.87 points, and by 2016. the growth of hdi between 2015-2016 amounted to 1.31% if using the reduction of shortfall, the growth of hdi in manggarai included in the category of slow because of the acquisition rate <1.70. accelerating the growth of hdi is a hope for all parties. therefore, effective strategies and policies are needed to boost the slow growth of hdi to accelerate by utilizing all available resources. appreciation awarded the regent of manggarai, bps ntt and manggarai, head of health office of manggarai and all parties to the contribution of the mind in completing this paper. for all the help we thank you. bibliography [1] bps ri. human development index 2016. bps ri. jakarta. 2016 [2] bps manggarai. manggarai in figures 2016. bps manggarai. p. 251-252. [3] dun nw. introduction to public policy analysis. translation. wibawa s, asitadani d, hadna ha, puwanto ae. gajahmada university press. 2000. p. 25 [4] johnston, mp. secondary data analysis: a method that a time has come. quantitative and qualitative methods in library (qqml) .2014. downloaded on july 31, 2017. available 42 frans salesman1, marianus tapung2, leonardus ino setiawan3 strategy and policy increasing human development index of manggarai regency 20162021 sinergi, volume 8 number 1 march 2018 at www.qqml.net / ... 2014 ... / 336qqml_ journal_2014_johnston _... [5] bps ntt. news resmis statistics. central bureau of statistics. development index year 2015. number 16/07 / th.xix. july 01, 2016. downloaded on august 22, 2017. available at; \ ntt.bps.go.id/backend1812/brs_ind/ brsind-20170420071148.pdf [6] manggarai regency health office. health profile of regency of manggarai year 2015. p. 35-56 [7] bappeda manggarai. medium term development plan (rpjmd) of manggarai regency 2016-2021. p. 157-165 [8] bps ntt. news resmis statistics. central bureau of statistics. development index year 2016. number 05/07 / th.xx. april 20, 2017. downloaded on august 22, 2017. available at; \ ntt.bps.go.id/backend1812/brs_ind/ brsind-20170420071148.pdf [9] salesman f, tapung m. human development index in manggarai regency 2015. p. 125. [10] akita, t and a. alisjahbana, 2002, “regional income inequality in indonesia and the initial impact of the economic crisis”, bulletin of indonesian economic studies 38 (2): 201-222 [11] todaro, michael, 2000, “economic development in the third world”, 7th edition, erlangga publisher. sinergi, volume 11 number 1 maret 2021 28 daniel susilo1), teguh dwi putranto2), charles julian santos navarro3) ms glow for men: digital marketing strategy on men's facial care products ms glow for men: digital marketing strategy on men's facial care products daniel susilo1, teguh dwi putranto2, charles julian santos navarro3 1school of communication science, universitas multimedia nusantara, indonesia 2faculty of social and political science, airlangga university, indonesia 3school of communication studies, university of buenos aires, argentina 1daniel.susilo@umn.ac.id, 2teguh.dwi.putranto-2019@fisip.unair.ac.id, 3charles.santos.navarro@gmail.com submit: 01st february 2021, revised: 06 th february 2021 , accepted: 30 th march 2021 abstract.technological developments over the last few years have led to a strategy transformation from conventional to online. this digital marketing strategy is carried out by many local and traditional companies because they do not believe it is more effective than traditional marketing activities, such as using brochures and catalogs. various products have started to take advantage of digital marketing strategies, including ms glow men's facial care products. the method used in this research is content analysis of krippendorff on instagram @ during the period january 1, 2021 to january 31, 2021. the conclusion of this research are more to do with promotions that highlight information about ms glow for men and the benefits of using ms glow for men. keywords: ms glow for men; digital marketing strategy; men’s facial care; instagram; content analysis. i. introduction the internet has brought about a very significant change in the various aspects that exist in human life, especially in doing business [1]. business is an activity carried out by individuals or groups of organizations engaged in the sale, production, distribution, purchase or exchange of goods/services with the aim of obtaining profit or profit [2]. technological developments in the internet age are driving change in many aspects of the day, one of which is a change in the consumer behavior of indonesians who prefer more immediate and practical things [3], which in turn escalates the online shopping model. we are social data showed that the percentage of indonesian people who bought online goods and services reached 41 per cent in 2017, up 15 per cent from the previous year [4]. digital business is a company that uses technology as a marketing activity that is carried out electronically via the internet. digital marketing is said to be side-by-side e-commerce marketing, which consists of the communication work of the company, promote, and sell goods/services on the internet. digital marketing is the process and cause of a mix of daily barriers [5], [6]. it is a broad term that refers to advertising using both offline and online marketing channels. if there are not widely available and comprehensive training courses in digital marketing, almost every field will be highly demanded [7]. digital marketing requires a unique set of knowledge, and a person with a classical degree of marketing is not able to run digital campaigns sufficiently, so organizations mainly outsource digital marketing to agencies or do so independently and often with major mistakes [8]. the digital marketing strategy plays an important role in promoting the product. the entire digital marketing strategy, either in its planning, implementation, or evaluation, has its own uniqueness. it has shown that the digital marketing strategy has been well managed within the company [9]. companies must implement strategies to improve the quality of their products [10]. social media marketing has had a significant impact on brand image and brand trust. in addition, brand trust and brand image have had a significant impact on the purchase intention [11]. factors that influence the behavior of the men consumer purchase of skin care products in suwon, south korea consisting of normative influences and sinergi, volume 11 number 1 maret 2021 daniel susilo1, teguh dwi putranto2, charles julian santos navarro3 29 ms glow for men: digital marketing strategy on men's facial care products attitudes for applying skin care. while factors that influence the consumer behavior of men in bandung, indonesia consists of beliefs in attributes product aspect, self-image aspect and aging effects [12], one of the facial care products is ms glow for men. figure 1. ms glow for men products source: [13] ms glow for men is a skincare brightening package today for men specially formulated for indonesian men, which contains active ingredients that make men look cleaner and fresher every time. ms glow for men has become the mainstay of all indonesian men [14]. ms glow for men has basic skincare product variants for men's skin care needs. its products are energizer facial wash, power serum, energy bright cream, and sunscreen spray [15]. cosmetic products have, for the most part, been related to women for years, since the cosmetics industry offered the product in terms of beauty and feminine. nowadays, however, the situation has changed, and men are more aware and concerned about their self-appearance from younger to older ages about the importance of beauty, boyish charm and fitness that separates the market for men consumers. youthful and charming looks are attached to their thinking, which would allow them to strengthen their trust and reputation in the workplace [16]. this situation gives the manufacturers of this skincare industry a great opportunity, as men consumers in the cosmetics market are on the rise. the percentage is high in western countries and is growing rapidly in developing countries [17]. for both men and women, having flawless and bright skin is seen as a particularly important mark of beauty in indonesia, as in three other asian countries, since fair-haired beauty is often shown on tv shows and magazine covers and enhanced through social media. young country and the internet-savvy population. men consumer is increasingly on the radar of cosmetics companies all over the world, and in indonesia this market segment is just a starting point [11]. based on this background, the formulation of the problem in this study is how the digital marketing strategy carried out by ms glow for men on instagram? ii. research methodology the method used in this research is the content analysis chosen to describe the aspects and characteristics of the post content. content analysis is a systematic method for evaluating the content of messages and the transmission of messages or an analytical tool for monitoring and analysing the communication activities of selected communicators [18]. the researcher has used two coders to ensure objectivity in coding and data collection. the reliability test was used to check the validity of the data collected and to determine the accuracy of the data, and two encoders were used. the test of reliability was used to check the validity of the data collected and to determine the accuracy of the data, and two encoders were used. in addition, researchers also used an analysis of the content of krippendorff to analyse instagram posts. researchers used content analysis to see digital marketing strategy of ms glow for men in instagram @msglowformen during the period 1 january to 15 january 2021, as many as 46 posts were studied. sinergi, volume 11 number 1 maret 2021 30 daniel susilo1), teguh dwi putranto2), charles julian santos navarro3) ms glow for men: digital marketing strategy on men's facial care products figure 2. instagram profile of ms glow for men source: [19] this study used the holsti formula to calculate the data from two coders [20]. the content analysis method was chosen because the researchers tried quantitatively to see the content of instagram posts, then the researchers tried to interpret post content, read symbols, and interpret the symbolic interaction content of instagram posts @msglowformen. the steps taken by the researcher in this content analysis method are as follows: first, the researcher saw @msglowformen instagram posts in the period 1 january to 15 january 2021. second, the researcher chose instagram @msglowformen to see posts that highlight the digital marketing strategy of ms glow for men in instagram. third, after the posts are collected, the encoder will sort the posts. fourth, the data collected is then processed and analyzed. pao = 2a/ (n1+n2) where pao is the percentage of agreement between the two coders, a is the number of decisions taken by the two coders, n1 and n2 are the number of decisions taken by the coder. the digital marketing strategy in this study focuses on promotion. there are several indicators in promotion covers advertising, sales promotion, public relations and publicity, personal selling, and direct marketing [21]. advertising is any form of presentation and non-personal promotion that costs money about ideas, goods, or services provided by the sponsor. sales promotion are short-term incentives to encourage buying or selling a product or service. public relations and publicity are to build good relationships with various public companies with several ways to get profitable, build-up publicity good corporate image, and tackle or correct rumours, stories, as well unfortunate event. personal selling is a personalized presentation by a company's sales force with a purpose generate sales transactions and build relationships with customers. direct marketing is direct relationships with individual customers targeted carefully with good intentions to elicit an immediate response, as well as to build lasting customer relationships. iii. result and discussion result researchers collected 46 posts from instagram ms glow for men @msglowformen and used the holsti formula to check data reliability. the promotion indicator covers advertising, sales promotion, public relations and publicity, personal selling, and direct marketing. table 1. post analysis by two coders during january 2021 date coder 1 coder 2 a sp pr ps dm a sp pr ps dm 1 3 1 2 2 2 3 3 3 1 2 2 1 4 1 1 1 1 5 4 4 6 3 3 7 2 1 2 1 8 2 1 1 1 1 9 2 1 1 1 1 10 2 1 2 1 11 2 2 12 3 1 3 1 13 2 1 2 1 sinergi, volume 11 number 1 maret 2021 daniel susilo1, teguh dwi putranto2, charles julian santos navarro3 31 ms glow for men: digital marketing strategy on men's facial care products date coder 1 coder 2 a sp pr ps dm a sp pr ps dm 14 2 1 2 1 15 3 3 total 33 9 1 3 29 9 3 5 * a: advertising, sp: sales promotion, pr: public relations and publicity, ps: personal selling, and dm: direct marketing table 1 shows the results of the coding process carried out by coder 1 and coder 2 on 46 posts that have been separated by date and their respective indicators. in addition, an overview of these indicators is described in table 2 below. table 2. coder output variable coding output coder 1 coder 2 agreement between two coders advertising 33 29 29 sales promotion 9 9 9 public relations and publicity 1 3 1 personal selling 3 5 3 direct marketing 0 total 46 46 42 pao = 2a/ (n1+n2) = 2(42)/46+46 = 84/92 = 0,91 (91%) the data is said to be reliable if it can have a tolerance value of at least 70% or more than 0.7% [22]. the reliability element is 0.91 or 91% based on the results of the data calculations obtained using the coder holsti reliability formula. the data obtained is therefore declared to be reliable because it exceeds the minimum limit. discussion the results of the coding carried out on five indicators include advertising, sales promotion, public relations and publicity, personal selling, and direct marketing. the promotion indicators dominate the @msglowformen instagram posts. posts relating to advertising in the period from 1 january 2021 to 15 january 2021 were most likely to appear on 5 january 2021. advertising as the main strength of ms glow for men in instagram ms glow for men on instagram provide information related to the product in advertising as seen in the following pictures. figure 3. ms glow for men instagram post on january 5, 2021 source: [23] as posted on january 5, 2021, ms glow for men invites men to use ms glow for men before starting activities so they can start the day with enthusiasm. ⁠ because in the morning men always wash their faces with energizer facial wash, continue with the use of energy bright cream so that the skin becomes fresh and bright all day long.⁠ if you want to do activities in the hot sun, use sinergi, volume 11 number 1 maret 2021 32 daniel susilo1), teguh dwi putranto2), charles julian santos navarro3) ms glow for men: digital marketing strategy on men's facial care products sunscreen spray from ms glow for men. because the bad rays of the sun can cause various skin problems, from sunburn, dullness to skin cancer. for information, men are more likely to experience skin cancer than women. skin cancer is an uncommon disease, and we might experience it ourselves, if we do not use sunscreen. so that sunscreen spray functions to protect the skin from sun exposure. the content of spf45 ++ can protect the skin for up to 450 minutes longer. sales promotion as an attraction for prospective men consumers ms glow for men on instagram uses “give away” to attract male potential consumers as a form of sales promotion as seen in the following pictures. figure 4. ms glow for men instagram post on january 3, 2021 source: [24] as posted on january 3, 2021, ms glow for men gave a giveaway with the basic ms glow for men package by guessing the value of the facial wash based on the clue in figure 3 with the tag on 5 friends. figure 5. ms glow for men instagram post on january 4, 2021 source: [25] on january 4, 2021, it made a challenge to make a story, from quality, quantity to following the challenge consistently. figure 6. ms glow for men instagram post on january 7, 2021 source: [26] on january 7, 2021 ms glow for men made a "giveaway" guess nominal facial wash, on ms glow for men instagram. sinergi, volume 11 number 1 maret 2021 daniel susilo1, teguh dwi putranto2, charles julian santos navarro3 33 ms glow for men: digital marketing strategy on men's facial care products figure 7. ms glow for men instagram post on january 13, 2021 source: [27] on january 13, 2021 ms glow for men made a "giveaway" to complete the word bright cream. the lucky “ms bro” is entitled to an ovo worth 100,000 rupiah. figure 8. ms glow for men instagram post on january 14, 2021 source: [28] on january 14, 2021 ms glow for men made a "giveaway" ovo worth 100,000 rupiah for a creepy story. iv. conclusion based on data collected through instagram @msglowformen and coded by the two coders, the contents containing the promotion indicators of the ms glow for men dominate the instagram posts compared to the advertising and sales promotion for the period 1 january 2021 to 15 january 2021. the digital marketing strategy of ms glow for men in the @msglowformen instagram post has more to do with promotions that highlight information about ms glow for men and the benefits of using ms glow for men. v. acknowledgment this research under project of “penelitian mandiri dosen” universitas multimedia nusantara, indonesia. references [1] m. wijaya, “pengaruh internet untuk bisnis dan masa depan,” 2018. https://www.kompasiana.com/moniccaw/5c0 a782e6ddcae289a6942e5/pengaruhinternetuntuk-bisnis-dan-masadepan?page=all. [2] z. nilakandi, “pengertian bisnis beserta fungsi, tujuan dan jenis-jenis bisnis secara lengkap,” 2019. https://www.nesabamedia.com/pengertianbisnis/. [3] a. w. octavianto, “membangun sikap kritis dan selektif anak-anak terhadap tayangan film/televisi di indonesia,” ultim. j. ilmu komun., vol. 7, no. 1, pp. 1–18, 2015. [4] kama, “inilah tren e-commerce 2018 di indonesia, menurut toko online ini,” 2018. https://nextren.grid.id/read/0124363/inilahtren-e-commerce-2018-di-indonesiamenurut-toko-online-ini?page=2. [5] e. yunus, d. susilo, s. riyadi, m. indrasari, and t. putranto, “the effectiveness marketing strategy for ride sharing transportation: intersecting social media, technology, and innovation,” entrep. sustain. issues, vol. 7, no. 2, pp. 1424–1434, 2019. [6] s. riyadi, d. susilo, s. a. sufa, and t. dwi putranto, “digital marketing strategies to boost tourism economy: a case study of atlantis land surabaya,” humanit. soc. sci. rev., 2019, doi: 10.18510/hssr.2019.7553. [7] a. m. prestianta, “mapping the asean sinergi, volume 11 number 1 maret 2021 34 daniel susilo1), teguh dwi putranto2), charles julian santos navarro3) ms glow for men: digital marketing strategy on men's facial care products youtube uploaders,” j. aspikom, 2021, doi: 10.24329/aspikom.v6i1.761. [8] l. khmiadashvili, “digital marketing strategy based on hotel industry study in tbilisi,” ijasosint. e-journal adv. soc. sci., vol. 5, no. 14, pp. 922–927, 2019, doi: 10.18769/ijasos.592628. [9] i. christina, f. fenni, and d. roselina, “digital marketing strategy in promoting product,” manag. entrep. trends dev., vol. 4, no. 10, pp. 58–66, 2019. [10] a. sukoco, y. anshori, and a. yudha, “strategies to increase market share for histopathological equipment products (brand sakura): case study in a sole agent company,” sinergi j. ilm. ilmu manaj., vol. 10, no. 2, pp. 19–26, 2020, doi: https://dx.doi.org/10.25139/sng.v10i2.2864. [11] l. sanny, a. arina, r. maulidya, and r. pertiwi, “purchase intention on indonesia male’s skin care by social media marketing effect towards brand image and brand trust,” manag. sci. lett., vol. 10, no. 10, pp. 2139– 2146, 2020, doi: 10.5267/j.msl.2020.3.023. [12] a. ridwan, e. maulina, and a. chan, “comparisons of factors that influence male consumer behavior in purchasing skin care products (case study: men from suwon city, south korea and bandung, indonesia),” rev. integr. bus. econ. res., vol. 6, no. 1, 2017. [13] lazada.co.id, “paket pencerah wajah bpom original paket 4in1 ms glow men paket isi 4 ms glow man mencerahkan menutrisi ratu kosmetik online,” 2020. https://www.lazada.co.id/products/ms-glowmen-paket-isi-4-ms-glow-men-mencerahkanmenutrisi-menghilangkan-jerawatmenghilangkan-noda-di-wajah-originalbpom-ratu-kosmetik-onlinei1945192907.html. [14] shopee, “ms glow men msglow for men paket perawatan wajah pria skincare wajah facial wash serum cream cowok,” 2021. https://shopee.co.id/ms-glow-menmsglow-for-men-paket-perawatan-wajahpria-skincare-wajah-facial-wash-serumcream-cowok-i.171716344.4716104130. [15] femaledaily, “ms glow for men, rangkaian skincare praktis buat menjaga kesehatan kulit cowok,” 2020. https://editorial.femaledaily.com/blog/2020/0 5/08/ms-glow-for-men-rangkaian-skincarepraktis-buat-menjaga-kesehatan-kulitcowok/. [16] o. yuen, c. tan, f. ahmad, and y. choong, “conceptual study on malaysian male consumption behaviour towards skin care products,” int. j. innov. bus. strateg., vol. 9, no. 1, pp. 1–12, 2018. [17] i. khan, h. dongping, m. abdullah, z. ahmad, t. ahmad ghauri, and s. ghazanfar, “men’s attitude and motivation toward consumption of grooming products: a comparison of chinese and pakistani male consumers,” cogent bus. manag., vol. 4, no. 1, 2017, doi: 10.1080/23311975.2017.1309783. [18] k. krippendorff, content analysis: an introduction to its methodology. sage publications, 2018. [19] ms.glow.for.men, “instagram profile of ms glow for men,” 2021. https://www.instagram.com/msglowformen/? hl=id. [20] d. samiei and z. mehrabi, “content analysis of the first chapter of the twelfth grade chemistry book based on the william romey’s method and determining its importance with the shannon entropy method,” vol. 1, no. 3, pp. 53–72, 2019. [21] p. kotler and g. armstrong, principles of marketing. pearson education, 2010. [22] o. r. holsti, “content analysis for the social sciences and humanities,” reading. ma addison-wesley (content anal., 1969. [23] ms.glow.for.men, “ms glow for men instagram post on january 5, 2021,” 2021. https://www.instagram.com/p/cjpgc_tl_yd/. [24] ms.glow.for.men, “ms glow for men instagram post on january 3, 2021,” 2021. https://www.instagram.com/p/cjlcy6zglll/ . [25] ms.glow.for.men, “ms glow for men sinergi, volume 11 number 1 maret 2021 daniel susilo1, teguh dwi putranto2, charles julian santos navarro3 35 ms glow for men: digital marketing strategy on men's facial care products instagram post on january 4, 2021,” 2021. https://www.instagram.com/p/cjnrndegbns/. [26] ms.glow.for.men, “ms glow for men instagram post on january 7, 2021,” 2021. https://www.instagram.com/p/cjuzonmoef4 /. [27] ms.glow.for.men, “ms glow for men instagram post on january 13, 2021,” 2021. https://www.instagram.com/p/cjyxo6gmch/. [28] ms.glow.for.men, “ms glow for men instagram post on january 14, 2021,” 2021. https://www.instagram.com/p/ckbyszhlr0 y/. 31 frederich oscar lambertus lontoh1), samuel kusuma2), peter verhezen3) tabitha lily surja permana4) correlation study of church leadership towards church member commitment in christian church of indonesia darmo satelit surabaya-jawa timur sinergi, volume 8 number 2 september 2018 correlation study of church leadership towards church member commitment in christian church of indonesia darmo satelit surabaya-jawa timur frederich oscar lambertus lontoh1), samuel kusuma2), peter verhezen3), tabitha lily4), surja permana5) 1) indonesian evangelical theological seminary surabaya, indonesia e-mail : oscarlontoh@sttii-surabaya.ac.id 2) borneo christian institute balikpapan, indonesia e-mail : dr.samuelkusuma@institutkristenborneo.ac.id 3) university of antwerp, belgium e-mail : p.verhezen@mbs. edu 4) abdi gusti theological seminary nganjuk, indonesia e-mail : tabithalily@sttag-nganjuk.ac.id 5) borneo christian institute balikpapan, indonesia e-mail : dr.surjapermana@institutkristenborneo.ac.id submit : 25th june 2018 , revised : 1st september 2018 , accepted : 2nd september 2018 abstract this research is based on a phenomenon where christians feel they are free to choose where they want to go to worship every sunday, going to church but without commitment and special involvement with the church where they worship. the present church’s meaning moves to deviate from mutual communal worship activities to individualist choices and tastes. this research was conducted at indonesian christian church in indonesian christian church darmo satelit surabaya domiciled in surabaya, east java to 100 congregations as research respondents by describing the influence between church leadership variable toward the commitment of congregation. the findings of this study are the influence of church leadership on the commitment of the congregation is positive with a value of 0.590 in the category of moderate and the regression equation is ŷ = 33.887 + 0.818 x, which means that each increase of leadership style per-unit will increase the commitment of the congregation of 0.818 times. keywords : church leadership, church member commitment, indonesian christian church, surabaya i. introduction the phenomenon of churches in indonesia has become interesting to observe. many church members are moving around the church just as people move out of work. christians feel that they are free to worship every sunday, going to church without commitment and special involvement with the church where they worship. (reformata, 2013). the church is the people (in the plural sense) who have been called from life in sin to belong to god. the church shows that in it all who have repented and accepted the gospel so that the holy spirit is born again, and are baptized then placed into a divine organization organized by human beings. (mimery, 2001). a congregation is a group of people who must be brought to the understanding of self-assessment, honestly acknowledging its existence, including discovering the weaknesses and strengths of the self or potential within itself and improving it through biblical teaching in the church.(permana, 2015) the commitment of the congregation is a state in which a congregation is faithful to a particular church 32 frederich oscar lambertus lontoh1), samuel kusuma2), peter verhezen3), tabitha lily surja permana4) correlation study of church leadership towards church member commitment in christian church of indonesia darmo satelit surabaya-jawa timur sinergi, volume 8 number 2 september 2018 and its purposes and wishes to retain membership within that church which is understandable through affective commitment, continuous commitment, normative commitment. affective commitment is a commitment that involves personal characteristics, job characteristics, experience, and structural characteristics. structural characteristics include the size of the organization, the presence of people, the extent of control, and the centralization of authority. a continuous commitment is a commitment that is influenced by the magnitude and/or amount of individual bets or investments, and the perception of the lack of other work alternatives. a person who feels sacrifice or invests heavily in an organization will feel the loss of leaving the organization because it will lose what has been given so far. normative commitment is individual experience before entering into an organization that is influenced by experience in the family or socialization of culture and experience of socialization while in the organization. a person’s normative commitment can be high if before entering into the organization, any family member already involved in the organization emphasizes the importance of allegiance to the organization.(allen & meyer, 1990) sugianto argues the church is a form of organization. the church is a form of the social group consisting of several members who have a shared perception of unity. if a group has been formed and realized together there is interdependence and give each other rewards and perceive themselves as a whole. sugianto also argues that church leadership is a very important factor in building the commitment of the congregation.(sugianto, 2011). tomatala provides the definition that church leadership is a dynamic, planned process in the context of christian ministry concerning the time factor, place, and special situation in which god intervenes, calling himself a leader with full capacity to lead his people who group themselves in a church institution / organization to achieve god’s purpose which brings benefits to leaders, subordinates, and the environment for and through his people, to the glory of his kingdom.(tomatala, 2002) good leadership style (democratic, transformative) is preferred and will further encourage a person to have a higher commitment and loyalty.(indrasari, 2017) ii. research methods this research is a correlational research, in this case, research aims to test the hypothesis that states the relationship between independent variables with the bound. the independent variables of this study are leadership style and the dependent variable is the commitment of the church. this research was conducted at indonesian christian church of darmo satelit surabaya and domiciled in surabaya, east java. respondents are adults who are at least 20 years old as many as 100 people. the data were collected using a questionnaire consisting of 39 point statements using interval scales 1 through 5 indicating their level of approval of existing statements. iii. results and discussion 1. respondents in this study consisted of 64 male respondents and 36 female respondents. 2. age of respondents is divided into three parts: young age (20-39 years), adult age (40-59 years) and old age (≥60 years). from tabulation based on age, then get that entering category of young age to consist of 30 respondents, adults consist of 60 respondents and old consist of 10 respondents. 3. crosstabulation of sex to organizational commitment showed that male sex group (64/60 x 100%) = 93,75% showed that high level of commitment of congregation was lower than woman (36/35 x 100%) = 97,2 %. table: commitment of the church (kj) * sex crosstabulation 4. crosstabulation among respondents by education category is associated with commitment of the congregation. the result is that in the high school education class there is 94.4%, s1 graduate respondents have 95% organizational commitment and 100% postgraduate, indicating high organizational commitment. 33 frederich oscar lambertus lontoh1), samuel kusuma2), peter verhezen3) tabitha lily surja permana4) correlation study of church leadership towards church member commitment in christian church of indonesia darmo satelit surabaya-jawa timur sinergi, volume 8 number 2 september 2018 komitmen jemaat * education crosstabulation 5. correlation between leadership style (x) to member church commitment (y) using regression analysis simple linear with α = 0,05 found r = 0,590 and r square = 0,349, which states that the influence of leadership style to commitment of the church has positive effect with value 0,590 in category moderate. r square shows the coefficient of determination which shows the contribution of this research is equal to 0.349 or 34.9% and 65.1% influenced by factors outside this study. model summary 6. correlation between leadership style (x) to member church commitment (y) has the equation of the regression line ŷ = 33,887 + 0,818 x, which means each increase of leadership style per-unit will increase the commitment of the congregation by 0.818 times. coefficientsa iv. conclusion 1. leadership style significantly influences the commitment of the congregation by 0.590 significantly at 0.05, so it can be concluded there is a variable relationship of leadership style to organizational commitment. there needs to be an enhancement of the church leadership style that includes transformational and situational leadership styles to increase the commitment of the congregation. 2. r square result of 34.9% indicates that it is necessary to have further research with regard to other variables such as verbal and non verbal communication. references [1]www.reformata.com/new/view/6651/umatkristen-tanpa-komitmen. [2] allen, n. j., & meyer, j. p. (1990). the measurement and antecedents of affective, continuance and normative commitment to the organization. journal of occupational psychology, 63(1), 1–18. https://doi.org/10.1111/j.2044-8325.1990. tb00506.x [3] indrasari, m. (2017). the effect of organizational culture, environmental work, leadership style on the job satisfaction and its impact on the performance of teaching in state community academy bojonegoro. sinergi : jurnal ilmiah ilmu manajemen, 7(1), 58–73. https://doi. org/10.25139/sng.v7i1.30 [4] mimery. (2001). rahasia tentang penggenmbalaan. mimery pressindo multimedia. [5] permana, s. (2015). korelasi konsep diri dan motivasi melayani terhadap kinerja guru kristen di sma sekolah kristen kalam kudus surabaya, malang dan sidoarjo. media mahardhika, 14, 19–27. [6] sugianto. (2011). membangun komitmen hidup jemaat dalam gereja. skripsi.. sttia lawang. [7] tomatala, yakob. (2002), kepemimpinan kristen, yt leadership foundation, jakarta. sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 16 a phenomenological study of the lived experiences of the generation x and y entrepreneurs dr patrick khor group ceo ibosses corporation ltd email: patrick@ibosses.com (submit : 23 july 2017; revised : 05 august 2017; accepted : 29 august 2017) abstract.this qualitative phenomenological approach examined the generation x and y cohorts in terms of their lived experience towards the entrepreneurial journey in singapore, which can consequently fill empirical gap on entrepreneurship among generational cohorts of asian entrepreneurs. the study sample comprised 15 generation x and 15 y singaporean entrepreneurs from 30 companies who identified their involvement in starting a business venture and in the day-to-day running of the business. using nvivo to cull down key components and ideas from the data, the study revealed that generation x and generation y to have similar work attitudes, values and behaviours. the differences between the generations include differences in age, experience as well as obligations in life such as to one’s family. further studies are needed to examine the differences of these cohorts in terms demographic, psychological and social variables to provide additional insights and identify contributing factors to successful entrepreneurial venture. 1. introduction entrepreneurs have a critical role in the growth of an economy, particularly in an emerging market such as the association of southeast asian nations (asean). as a member of asean, singapore has faced increasing competition from its emerging asian rivals. however, it has still managed to retain its position among the top countries for competitiveness and innovation. the encouragement of entrepreneurship is a major policy initiative of the singapore government at all levels. while there is a clear emphasis and a desire for entrepreneurial activity, small businesses and/or entrepreneurial ventures have demonstrated sizeable failure rates because the idea of entrepreneurship was not accepted in most organisations. entrepreneurship has confronted several challenges for generation y entrepreneurs in singapore, which has influenced their businesses in general. although there have been many efforts to understand the characteristics and qualities of entrepreneurs, there is a need to identify factors or themes that are associated with how an individual decides to engage in entrepreneurship activities in the first place (markman, balkin & baron 2002). the study attempts to support the relevance of personal characteristics and situational factors as a determinant in the entrepreneurship decision. it examines the first hand experiences of entrepreneurs in order to link their histories and experiences to the decision to engage in entrepreneurship. although research on entrepreneurs and entrepreneurial activity has considered many approaches and has explored many attributes of what constitutes an entrepreneur, a complete picture of the entrepreneur, especially from the generation y perspective, has not emerged. the investigation of entrepreneurial experiences of generation x and generation y entrepreneurs has provided a more intimate and in-depth investigation on the entrepreneur at the individual level. in this context, the purpose of this study is to examine the x and y generational cohorts in terms of their lived experience towards their decision to engage in entrepreneurial activities in singapore. using a qualitative phenomenological approach, the study aims to examine the experiences of these two cohorts to determine relevant themes leading to the decision to engage in entrepreneurial activities. 2. review of related literature empirical research has suggested the existence of differences between generational cohorts (brown, davidsson, and wiklund, 2001). members of sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 17 generation x (gen x), born between 1965 and 1979, are children of the baby boomers, who were born between 1946 and 1964 (strauss and howe, 1992), are characterised to be highly active members of the working class, who loyally work for their employers. they were once said to be the most entrepreneurial generation in history until the birth of generation y (gen y) or those considered to be the children of generation x members (martin, 2005; zwilling, 2011). although both are considered to be highly inclined to be entrepreneurs, these two generations have differences in their atittude towards entrepreneurship. being fed up with their jobs as employees, most gen x-ers raised money to start their own business or companies. gen x-ers had their business well planned, and as such are characterized as being risk averse since they want to prove to their families that quitting their jobs and sacrificing their monthly salary to enter into entrepreneurship is worth it (reuters 2010). as for generation y, who were born between 1978 аnd 2000 (brіdgеrѕ and jоhnѕоn, 2006; leschinsky and mісhаеl 2004; weston, 2006; zеmkе, rаіnеѕ, and fіlіpсzаk 2000), tend to be more aggressive and risk takers (reuters 2010). both generations had different set of values, expectations, culture and behaviours who possess advantageous characteristics in terms of business (tapscott 2008). with technological advancement, the online digital era impacted the business world and brought challenges as innovations were adopted into the mainstream (tаpѕсоtt 2008). these changes were most apparent among generation y who grew up with the technology (ѕtrаuѕѕ & hоwе 2006). while entrepreneurial activities on prior years were not highly respected and were often considered as options for those who did not perform well within organisations (hormozi 2004), these recent times however, 18 per cent of tertiary students perceived positive value on entrepreneurial activity (kwok 2009; national university of singapore [nus] entrepreneurship centre 2009). however, studies have incomplete and mixed results concerning different levels and hierarchies to potentially explain the development of self-employed entrepreneurs and its consequent predictability of success (caliendo, fossen, and kritikos 2011; nicolau, shane, cherkas, hunkin, & spector, 2008). at the theoretical level, generational theory provides a way of understanding the differences between generation x and generation y based on socio-cultural perspective of the cohorts of people (pendergast 2007). generational theory is based on the belief that the powerful influence of historical events and conditions that each person experiences as he or she matures into adults creates a unique set of shared beliefs, attitudes, and values (giancolo 2006). generation x and generation y have similarities, sometimes resulting in being regarded as a single generation (beck & wade 2004). the similarities between the two generations encompass attitudes, values and behaviours (hansford, 2002; martin and tulgan 2001). the similarities between the two generations include their tendency to be problem-solvers, adaptable, impatient, fun loving, culturally diverse and technologically savvy (allen, 2004; beck & wade 2004; chester, 2003; eisner, 2005; hansford 2002; martin & tulgan 2001; reynolds, 2004; zemke et al., 2000). there are also several differences between the two generations (martin & tulgan 2001; sullivan 2004; yohe 2007; zemke et al., 2000). some of the differences include work preferences in which generation x values independence, whereas generation y prefers guidance, structure and supervision (hansford 2002; zemke et al., 2000). generation x tends to have an inferiority complex especially with their parents, whereas generation yers are more confident about their abilities (hira, 2007; huntley, 2006). several studies explaining the differences between the two generations used the theories of: (a) economist-based entrepreneurship, (b) individualbased entrepreneurship, and (c) process-based entrepreneurship. entrepreneurship from an economic standpoint relates the importance of personality characteristics, work experience or cultural backgrounds of entrepreneurs in boosting the economy (chow, 2006; turner and nguyen, 2005). from this context, entrepreneurs can assume various roles, such as risk-taker/manager and innovator (kirzner, 1979; landstrom, 1998). individual-based entrepreneurship theories focus on a more personal approach to entrepreneurship, wherein the focus is on individual variables such as psychological and social background, personality traits, motivations and behaviours (sarasvathy, 2004). some of the important considerations in individual-based entrepreneurship include personality, creativity and value system (knight 1921). process-based entreprenurship theories, on the other hand, does not view entrepreneurship from a single and narrow perspective, but from a sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 18 comprehensive process-based approach (gartner, 1985). the theory is conceived through the relation between the individual and the value he or she attributes to entrepreneurship (teach et al., 1989). majority of studies on generational differences came from a western, particularly an american, perspective. in a postulation that an individual’s culture plays a role in the considerations and processes when entrepreneurs make a decision (collins and moore, 1970), it is therefore imperative to provide a singaporean point of view on generational theory to compare the literature with the scope of the study. 3. methodology this qualitative phenomenology study examines how generation x and generation y entrepreneurs interpret, perceive and describe their lived experience in their decision to enter an entrepreneurial venture. the main research question is: what are the differences between the experiences of generation x and generation y entrepreneurs in singapore as they decide to engage in entrepreneurship activities? this phenomenological exploration collected the generation x and generation y entrepreneurs’ personal stories and entrepreneurship perception among entrepreneurs who have successfully founded a small business and/or entrepreneurial endeavour. the study sample comprised 30 companies, of which five operate as sole proprietors and 25 are limited liability companies. three companies in the sample are in manufacturing or product-related activities, four are restaurants, 16 provide services, and seven are involved in retail. for generation x, the average age of companies in the sample is eight years and average working experience is 11 years. five research participants are women and ten research participants are men. for generation y, the average age of companies is three years and the average working experience is one year. eight research participants are women and seven research participants are men. the data review and synthesis were conducted through a review of the verbal recordings and through review of the written transcripts. a software program, nvivo, was used to cull down key components and ideas from the data as well as to explore relationships among the participant data including ideas, situations, results, and key observations. 4. results and discussion after analysing the descriptions of the entrepreneurship experience in the 12,000 lines of verbatim transcripts (from the interviews with the 15 generation x and 15 generation y research participants, eight central themes were identified. this was achieved through detailed analysis of the descriptions of the experience contained in 96,000 words of verbatim transcripts filling 600 pages from in-depth interviews with the 15 generation x and 15 generation y research participants. the themes represent associative groups of unique elements expressed by the research participants that may help illustrate the lived experience of the entrepreneur. although many elements were common across the experiences of all research participants, some may have been expressed only by a few. the analysis process provides equal weight to all elements expressed. a. emergent entrepreneurial themes (generation x) 1) grooming a quality team most generation x entrepreneurs acknowledged the importance of grooming a quality team. a company should not be dependent on one person alone. this holds true for an entrepreneurial company as well. though the entrepreneur is the spark of the company, he/she must know that the company cannot totally depend on him/her as this makes the company too vulnerable if anything were to happen to him/her. right from the start, the entrepreneur must build up a strong team and must identify individuals within that team who can take over the running of the business. everyone within an entrepreneurial company must contribute to the success of the company.as can be seen in their answers, this generation values trust and compensation in order to have competent employees. 2) knowing people knowing people for the generation x entrepreneurs was a central element in the entrepreneurial experience. doing business is about forming relationships with other business people. people do business with people they like and trust. as there are many aspects to running a business, one must work with many different types of people. knowing all kinds of people makes it easier for entrepreneurs to get things done. knowing people also introduces new clients to the entrepreneur’s business. after all, not only do people like to do business with people they sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 19 know, they also like to give business to people they know. 3) get things done the data suggest that entrepreneurs in the sample often consider thatthey must have the ability to get things done. one of the characteristics of an entrepreneur is that he/she has a strong sense of urgency. this is the urge to make decisions early and get things done. if there is something wrong with the product or service, he/she wants the team to resolve it as soon as possible. but those who stay on and are able to take the pace and the pressure are in a good position to build companies themselves. they have seen for themselves what it takes for an entrepreneur to succeed. an entrepreneur needs to be a strong leader. x05 said that “i always feel sad when staff leave my company.” this is related to the theme “get things done” because if there are employees leaving a company then the company has to train another individual to get things done which costs money and takes time. x09’s statement of archiving emails is related to this theme because even if the emails date back years ago, generation x seems to think that it is important and that it should be done. 4) managing risks the research participants often acknowledged that entrepreneurs should know how to manage risks. entrepreneurs need to change their mindset towards stability. an irregular income is one of the things that a new entrepreneur has to get used to. entrepreneurs are not gamblers. entrepreneurs understand the risks they take and balance this with the potential rewards. risks need to be managed and minimised, and the best way of doing this is to understand the business inside out. managing risk is not a science that one can put numbers to. it is the cumulative effect of adding all the variables together and coming out with a strategy to address the market. 5)know your business well study research participants identified that it is critical for entrepreneurs to know their business well. they must know their business so well that they can predict with uncanny accuracy what is likely to happen in the industry that they serve. they can then position their company to take advantage of the opportunities that will emerge. nothing excites them more than to have a new idea for improving their business. the only way entrepreneurs know their business so well is for them to be very involved in their business. trends change very quickly and this means entrepreneurs must constantly update their knowledge. they have to keep updating themselves and keep going for courses to make sure that they are up to date with the trends. 6)good communicator the majority of the research participants acknowledged that entrepreneurs must be able to sell their product or services. entrepreneurs have to be good marketers and have the ability to handle rejection. they also recognise that their ideas will not always be met with enthusiasm and they will even fail. success for an entrepreneur would be going from failure to failure without much loss of enthusiasm. it is very important for entrepreneurs to be able to speak well and to get their ideas across. they may have a great idea but they must be able to stand behind it verbally, defend it, show enthusiasm and communicate well. therefore, one key to success is to have a certain level of personality and communication skills. 7)never say die research participants confirmed that the ‘’never say die’’ spirit is very important. in the face of adversity, don’t whine because it is not going to help. when entrepreneurs start a business, the only way to go is up. but in the process, problems will surface. entrepreneurs don’t give up. they think of ways and means, using their innate survival skills. no matter what business an entrepreneur sets up, it won’t be profitable right from the start. someone who is purely money-oriented and does not have the passion is going to feel very challenged. entrepreneurs won’t see the money coming in at first, and if they don’t have the passion to overcome this initial stage of doing business, they will find it very difficult to continue. 8)continue seeking opportunities most research participants acknowledged the importance of keeping on the lookout for opportunities. every business will go through periods of crisis. it is how entrepreneurial companies handle crises that set them apart from others. whenever there is a problem, it is human nature to feel self-pity. entrepreneurs must have a clear vision of where they want to take their company. at the same time, they must be able to adapt to take advantage of changes in the environment and revise their vision accordingly. many research participants strongly believe pursuing market opportunities is very critical for business. the most important criteria to evaluate market sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 20 opportunity are the speed of development, the returns and the way the process develops. figure 1. emergent entrepreneurial themes (gen x) b. emergent entrepreneurial themes (generation y) 1)doing what you love with passion most generation y entrepreneurs highlighted that passion is a very important factor for any the business venture. many of them already had entrepreneurial ideas and dreams to be successful entrepreneurs when they were younger. some took part in an entrepreneurship competition for fund-raising. they always feel a sense of accomplishment whenever their customers like their product or service and this drives their passion for their business. 2)working hard and playing hard the data indicate that generation y entrepreneurs often believe that playing hard is as important as working hard. at the pace at which entrepreneurs run their companies, there is a real danger that they will burn out within a few months if they don’t balance their time. the eagerness to succeed can be mentally exhausting. with a proper break, their mind will be so much fresher and they will see an avalanche of new ideas surfacing as a result. 3)freedom to act research participants in the study often acknowledged that the freedom to act is one of the main reasons for being an entrepreneur. they identified that there is nothing wrong with working for company, but that companies need to protect their interests and ensure that decisions are made by those in the know. as these organisations are huge, the only people who understand and are kept up to date with all the information are those working at headquarters. the research participants prefer to be their own boss. by doing their own business, they can have full control of their lives. the research participants also acknowledged that this freedom comes with significant responsibilities as the whole company and their employees are dependent on their making the right decisions. 4)building sustainable business with social responsibility the research participants identified that a significant focus that entrepreneurs have is the need to build sustainable businesses with social responsibility. they care about integrity – being honest, considerate, transparent and abiding by their commitments. honesty is very important. with the internet environment, it is very easy for a customer to tell whether an entrepreneur is doing one thing and saying another. at a time of uncertainty, people look for companies they can trust. customers have a low tolerance for companies that lie when they are trying to sell something, and they can find out pretty quickly if that is the case. 5)using mass collaboration and building collective intelligence the majority of research participants acknowledged the importance of using mass collaboration and building collective intelligence for the business. sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 21 today business world is a collaborative economy; digital chat tool mass-communication can bring many benefits to their company. generation y entrepreneurs would like to bring a culture of collaboration with them to their company. customers can keep in touch with the staff on their mobile phones wherever they are, on the street, in the store, or at work. it gives them a sense of virtual community all day long. it makes them feel likes the companies are their friends in their pocket. 6)testing business idea with a low-cost start-up venture the data suggest that generation y entrepreneurs in the samples often tested their business idea with a low-cost start-up venture. many of them used a limited amount of capital. some research participants received support from parents, friends and relatives. a good business should be able to sustain itself for at least two years. they run their business on cash, and they have not had the need to borrow from a bank. it took a lot of financial planning prior to the setting up of these ventures to ensure everything would run smoothly. at the start, they didn’t have enough customer support and it was a challenge to break even. but once they had overcome this problem, things improved. 7)having faith in yourself research participants confirmed that during the entrepreneurial journey, faith in oneself was important. many people do not take the step into entrepreneurship because it requires a leap of faith. there are just too many unknowns, too much uncertainty and too much risk. faith is a belief in something that has not been conclusively proven, and that is one of the things that make entrepreneurship so exciting for some and so scary for others. it is never final. there is no finish line. to inspire others, the entrepreneur must first have a belief in himself/herself, a vision, and a strong desire to help others, be it clients or other team members. it is very important to break out of the singaporean mindset, which is to find a good job after graduation. 8)money is not the major reward many research participants in the study highlighted that money is not the major reward. although money is important to entrepreneurs, most acknowledged that it was not the reason they became an entrepreneur, nor was it at the forefront of their activities. one participant mentioned that the biggest reward is getting to work with people they like. the learning the entrepreneurs get and the lessons learnt along the way, the self-confidence they carry improving themselves, and discovering what they are really good at (and what they are not good at) are all key motivators. one participant mentioned that the biggest rewards are employee satisfaction, compliments from clients, creating something from nothing, earning the respect of peers and having a high-quality work/life balance. figure 2. emergent entrepreneurial themes for gen y sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 16 c. comparison of generation x and generation y in engagement in entrepreneurship based on the interview data gathered from the participants, there are evident similarities and differences between the experiences that generation x and generation y had in relation to being an entrepreneur, especially in their decision to engage in their first, if not only, entrepreneurial venture. for similarities, in most cases, family and friends are part of the motivation to do business for members of generation x and generation y. also, both generation x and generation y members acknowledge that being an entrepreneur is the key to having a successful life; hence their decision to venture into it. in addition, having no family background on any entrepreneurial activity did not stop any generation x or generation y entrepreneurs from deciding to start up their respective entrepreneurial ventures, although having the said background early on surely helped both generation x and generation y entrepreneurs in their pilot venture. lastly, for both generation x and generation y entrepreneurs, the line of business or the industry of the business they started has something to do with their background, former knowledge or area of interest. this shows that being interested in the kind of business they get into is important for them to decide to engage in the said entrepreneurial venture. for the prominent differences, it was evident that it was more common for generation x entrepreneurs to be employees and quit their job for the better opportunities they perceived in starting up their own businesses. as for generation y entrepreneurs, it is more common for them to start their first official entrepreneurial venture while they are still in college or right after they graduate. also, more generation x entrepreneurs come from poor families; thus, serving as another driver of their decision to be an entrepreneur. in terms of the emergent themes from both generations, a summary is given in table 1 table 1. comparison of emergent themes generation x generation y i. quality team development doing what you love with passion ii. knowing people work hard, play hard iii . get things done freedom to act i v. managing risks build sustainable business with social responsibility v. know your business well use mass collaboration/build collective intelligence v i. good communicator test idea with low-cost start-up venture v ii. never say die have faith in yourself v iii continue seeking opportunities money is not the major reward from the comparison of the emergent themes, it can be seen that the themes that emerged from generation x entrepreneurs highlights the importance to relationships with other people and other entities, especially with the themes such as: (a) quality team development, (b) knowing people, and (c) good communication. though this means that generation x gives importance to good communication and relationships with others, it does not imply that generation y disregards these, especially given the importance of mass collaboration as a theme that emerged from the research on generation y entrepreneurs. it just indicates that generation y give more importance to other aspects of entrepreneurial venture. in line with this, also from the emerging themes, it can be seen that generation y sees the importance of faith in oneself, which may explain the few themes on building social relationships. the importance of confidence in oneself has not been emphasised in the case of generation x entrepreneurs. the most similar or related themes for both generations is the importance of knowing and loving what you do, as exhibited in the “know your business well” for generation x entrepreneurs and “doing what you love with passion” for generation y. these two themes both highlight the importance of the interest in the kind of business that one does. another similar theme for both generations is exhibited by the “never say die” theme for generation x and the “work hard, play hard” theme for generation y. both of these themes highlight the importance of perseverance in entrepreneurship. lastly, the theme “managing risks” for generation x entrepreneurs encompasses or includes the theme “test idea with low-cost start-up venture” since both aim towards minimising the probability of big-time failure, which is important in any the business venture. 5. conclusion and recommendation the results of the analysis identify elements that are significant to the life experiences of the generation x and y entrepreneurs. generation x and generation y share many similarities and exhibit many differences. the results of the study revealed that generation x sinergi, volume 7 number 2 september 2017 dr patrick khor a phenomenological study of the lived experiences of the generation x and y entrepreneurs 17 and generation y to have similar work attitudes, values and behaviours. however, despite these views, there are also some significant differences within the context of entrepreneurship. generation x participants who had a long working experience prior to starting their own businesses had good exposure to the knowledge within their industries. the experiences with their own business gave them a great opportunity to be creative, take risks and step beyond their comfort zone. many generation x entrepreneurs in the study had a longterm desire to be their own boss. generation x participants believed that by being entrepreneurs they could overcome difficult obstacles and have better control of their situations. although entrepreneurs in the sample may have seen family or friends who worked hard, took risks or embarked on entrepreneurial ventures, few reported having had previous direct entrepreneurial experience themselves. most generation x entrepreneurs noted that becoming an entrepreneur led them to become tenacious and acquire problem-solving capabilities. however, generation y research participants believed that education does not guarantee everything. the most important traits for an entrepreneur are a good, positive character and spirit. instead of working for people, generation y research participants believed that it is a good idea to turn their passions into a business venture. money is often not the main driver, as generation y participants prefer to do something meaningful and are able to contribute to society. this may be due to a personal search for self-worth although most in the sample did not indicate so, instead staying focused on their personal and tactical needs. unlike generation y entrepreneurs, generation x entrepreneurs know how to handle and manage their money. generation x entrepreneurs believed that a successful entrepreneur must recognise the importance of their finances in order to succeed in any business. for generation y, there are many things you cannot buy and failure serves to make you stronger. generation x entrepreneurs have better job satisfaction as entrepreneurs, whereas generation y entrepreneurs see self-satisfaction as more important. they experience many difficulties and need to work extremely hard, especially in the early years of their entrepreneurial journey. after analysing the descriptions of the entrepreneurship experience from the interviews with the 15 generation x and 15 generation y research participants, the study suggest to practicing entrepreneur and would-be entrepreneurs to identify to which generation they belong to and determine whether the findings in this research is factual. this can help them to reflect on how they are as an entrepreneur. there are some implications for policymakers or educators in entrepreneurship so that they could include the generational theories, different perspectives of entrepreneurship theory as well as the findings of this research. this will enable the students of entrepreneurship to understand and appreciate that being in different generations have an implication on how they begin their entrepreneur journey and how they can make their business venture a successful one. each generation is influenced by the historical events and societal conditions they experienced while growing up. these conditions bring about changes in values and behaviours, all of which affect value systems and how individuals respond to certain situations. results of the analysis on generational cohorts have found that while similarities exist between generations x and y in terms of their values, attitudes and character traits, differences exist between these two generational cohorts on individual variables, such as psychological and social background, personality traits, motivations, behaviours, creativity. unlike generation y entrepreneurs, generation x entrepreneurs understand the importance of their finances to succeed in any business. the similarities and differences may be attributed to the social and historical events which occurred during life experiences in the formative years 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(2011). gen x sets high standards for gen y entrepreneurs, viewed 8 june 2010, http://blog.startupprofessionals.com/2011/09/gen-xsets-high-standards-for-gen-y.html> isc paper template in a4 (v1) sinergi, volume 11 number 1 maret 2021 16 suyoto1), fery permana adhy2) bojonegoro's economic growth strategy: turning curses into blessings bojonegoro's economic growth strategy: turning curses into blessings suyoto1, fery permana adhy2 1 postgraduate, university muhammadiyah gresik, gresik, indonesia 2 pt. permana sidat indonesia, gresik, indonesia 1suyoto@gmail.com, 2fery.adhy01@gmail.com submit: 30th january 2021, revised: 05 th february 2021 , accepted: 30 th march 2021 abstract.the purpose of this study is to analyse the economic dan resources growth in bojonegoro using six pillars sustainable development to improve its human capital and capital resources. this study was conducted in bojonegoro, using qualitative approach with the level of explanation descriptive. as for the type of data used in this research included in this type of qualitative data. data collection techniques used self-inquiry secondary data analysis include observation and documentation. the data analysis technique used in this research is a descriptive technique which includes three stages of analysis, namely data reduction, data display and conclusion drawing/verification. the result show that in general, the six pillars of bojonegoro's sustainable development as stated in the previous discussion are basically the choice of the path of transformation, but it is still necessary to confirm how this scenario will be followed. for this, it is necessary to affirm what must be transformed, namely the six elements of bojonegoro's transformation, vision transformation, vision for economic development, environmental vision, social vision, fiscal policy vision, vision of the bureaucracy, vision of leadership. keywords: sustainable development; undp; local political resources. i. introduction one of the famous adagium about extractive resources is "behind every exploitation on extractive resources always has a curse". mineral resources such as gold, silver, coal, copper, oil, and gas are categorized as extractive resources. the word extract illustrates that to become a usable resource requires an extraction process, read squeezed, from the essence of the earth. its formation requires a very long process. anything that is taken from the earth, let alone extracts, holds the threat or curse of the popular term (natural resources curse). then what is the curse that is common in the hemisphere? among them the most prominent are the threat of environmental damage, social conflict, and weak social and governance resilience. especially for the latter, this usually occurs due to rampant party mentality. when mineral resources are exploited, capital flows in, community and government incomes rise sharply. that is when the threat of party syndrome comes in, firstly people who get the opportunity to work and do business without thinking about spending their money, secondly the two diseases that threaten politicians: corruption and state revenue spending without regard to the principles of sustainable development. since the 1900s until the beginning of the reform era, there have been practically no major changes in economic development. but now bojonegoro has two important moments. first, regional autonomy and democracy which give full opportunities to district governments and communities to choose programs that are relevant to the problems faced in increasing the ability to create quality and sustainable welfare. second, the discovery of oil and gas reserves. activities in the oil and gas sector provide job opportunities and regional development. in addition, district government revenues through profit sharing funds and participating interest will increase significantly. how to manage extractive for sustainable development? undp suggested formulas to achieved sustainable development with the implementation of these four keys: 1. focus on people throughout the process of exploration, exploitation, both government and companies. 2. participatory and transparent in all formulation of regulations, policies, and planning. 3. very prudent (careful and careful) in collecting revenue and management. 4. the income from extractive industries is only spent on investment: human resource development and social capital, infrastructure development which is relevant for the continued growth and development of financial resources. all this investment spending must sinergi, volume 11 number 1 maret 2021 suyoto1), fery permana adhy2) 17 bojonegoro's economic growth strategy: turning curses into blessings be truly effective and have an impact on productivity in the long term. empowerment programs have been carried out in indonesia for many groups [1]. regarding the sustainable development of bojonegoro as an entity that has both natural and human potential resources, its empowerment strategy must be well thought out so as not to turn its potential into a "curse" for the region and its people. bojonegoro does get the opportunity to get out of poverty and accelerate the realization of prosperity through opportunities for oil and gas exploitation. however, these opportunities are not automatic, like a historical journey, bojonegoro faces three choices which are; turn left, go right, or climb up straight. economics of sustainability by utilizing economic tools, early theorists offered that policies to protect the environment could also promote innovation and turn a profit. in 1920, arthur pigou noted that the presence of incidental, uncharged services act as a barrier to achieving equilibrium in the market. in his work “the economics of welfare”, pigou noted that the divergence between marginal private costs and benefits and marginal social costs and benefits create what we now call “externalities” [2]. these externalities are conceived as transaction spill overs or costs and benefits unaccounted for in the given price of a good or service. to correct the market failure, pigou proposed a tax on those activities that produce negative externalities at a rate equal to those external costs. by levying this charge, called a pigouvian tax, the market price will more accurately reflect the comprehensive costs and benefits of the activity. from this, michael porter and claas van der linde theorized that pollution is a sign of inefficient resource use. therefore, win-win opportunities for the environment and economy can be captured through improvements which reduce pollution in production processes [2]. these authors argue that competitive advantages rely on the capacity for innovation; thus, “by stimulating innovation, strict environmental regulations can actually enhance competitiveness”. as the porter hypothesis states, properly designed environmental policies that make use of market incentives can encourage the introduction of new technologies and reduce production waste. the tests of this theory have yielded mixed results, but scholars generally agree that policy design and public support are crucial elements to the success of these incentives. nonetheless, market-based environmental tools are generally perceived as more “business friendly” than traditional command and control policies [3]. the appreciation of our natural resource constraints is also in our best interest. truly rational and “effective governance requires a nation to consider and protect the environment and natural resources on which its current and future development depend. any other approach is self defeating. the connections between the environment and development thus provide a powerful rationale for environmental protection: enlightened self-interest” [4]. this inherent interdependence between the long-term stability of the environment and the economy is the foundation of the field of sustainable development. like porter’s win win hypothesis that a trade-off is not necessary, sustainable development policies look to tackle the sources of environmental degradation, not just the symptoms, while still providing opportunities and creating incentives for economic advancement [5]. components of a healthy environment, such as clean air and water, are considered public goods in that they are non-rivalrous and nonexcludable. thus, it is up to the public sector to maintain the provision of these goods and services. more recently, nations have moved towards the implementation of these market-based mechanisms to internalize the complete costs of pollution and ensure long-term stability of the environment; in other words, to ensure sustainable development [6]. sustainable development: definition and principles although many definitions abound, the most often used definition of sustainable development is that proposed by the brundtland commission [4];[7];[8]. this broad definition, which will be used in this dissertation, does not limit the scope of sustainability. the explanation does, however, touch on the importance of intergenerational equity. this concept of conserving resources for future generations is one of the major features that distinguish sustainable development policy from traditional environmental policy, which also seeks to internalize the externalities of environmental degradation. the overall goal of sustainable development is the long-term stability of the economy and environment; this is only achievable through the integration and acknowledgement of economic, environmental, and social concerns sinergi, volume 11 number 1 maret 2021 18 suyoto1), fery permana adhy2) bojonegoro's economic growth strategy: turning curses into blessings throughout the decision-making process. in the application of this definition of sustainable development, one issue concerns the substitutability of capital. there are several types of capital: social, natural, and man-made [9]. the definition of weak sustainable development explains that only the aggregate level of capital matters: manmade, or manufactured, capital is an adequate alternative to natural capital. strong sustainability, on the other hand, recognizes the unique features of natural resources that cannot be replaced by manufactured capital. most ecologists and environmentalists are proponents of the strong sustainability definition [8]. in addition to substitutability, this definition of sustainability is also founded on several other important principles. contained within the common definition of sustainable development, intergenerational equity recognizes the long-term scale of sustainability to address the needs of future generations [4];[8]. also, the polluter pays principle states that “governments should require polluting entities to bear the costs of their pollution rather than impose those costs on others or on the environment” [4]. thus, government policy should ensure that environmental costs are internalized wherever possible; this also serves to minimize externalities. the precautionary principle establishes that “where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measure to prevent environmental degradation” [10]. therefore, the proponent of an activity bears the burden of proving that this action will not cause significant harm. explicitly stated in the rio declaration, the notion of common but differentiated responsibilities recognizes that each nation must play their part on the issue of sustainable development. this principle also acknowledges the different contributions to environmental degradation by developed and developing nations, while appreciating the future development needs of these less developed countries [2]. developed nations, therefore, bear greater responsibility considering the resources they require and the pressures they exert on the environment. the key principle of sustainable development underlying all others is the integration of environmental, social, and economic concerns into all aspects of decision making. all other principles in the sd framework have integrated decision making at their core [9]. it is this deeply fixed concept of integration that distinguishes sustainability from other forms of policy. institutionally, government organizations are typically organized into sectoral ministries and departments. this works well until the system encounters something very comprehensive and highly integrated in nature, such as sustainable development. in practice, sustainable development requires the integration of economic, environmental, and social objectives across sectors, territories, and generations [11]. therefore, sustainable development requires the elimination of fragmentation; that is, environmental, social, and economic concerns must be integrated throughout decision making processes to move towards development that is truly sustainable. ii. research methodology this research type is research qualitative research is used to test the condition of the object where the researcher is the key instrument. based on the type of data and analysis, this study describes the qualitative descriptive, aiming to describe and analyse the effectiveness of program implementation of 3rs in waste processing, which adopts the theory of campbell j.p. in mutiarin (2014) measuring effectiveness in general is first, the rate of success of the program, both the success rate of the target, the third level of satisfaction with the program, the fourth level of inputs and outputs, a fifth level of achievement of the purposes for which acquired. data collection techniques used in this research, include in-depth analysis using documents from extractive dialogue dated 3-5 december 2014 held by undp (united nation development program, the united nations (un) institution for development) in collaboration with the government of brazil which aims to remind, invite focus, and strengthen the synergy of all parties: government, entrepreneurs, social organizations, and local communities, realizing sustainable development. the data analysis technique used in this research is a descriptive technique which includes three stages of analysis, namely local resources analysis, policy analysis, and conclusion drawing/verification. sinergi, volume 11 number 1 maret 2021 suyoto1), fery permana adhy2) 19 bojonegoro's economic growth strategy: turning curses into blessings iii. result and discussion based on observations and identification of problems in the socio-political and cultural conditions that exist in bojonegoro regency, there are lots of inputs and opportunities for discussion regarding the threat of the curse of natural resources from various parties, from academics and nongovernment organizations. bojonegoro does get the opportunity to get out of poverty and accelerate the realization of prosperity through opportunities for oil and gas exploitation. through the results of the study and dialogue in the extractive dialogue held by undp in brazil, the future scenario draft for bojonegoro can be described as follows: 1. a sorrowful future 2. short term scenario 3. long term and sustainable scenario. first scenario – sorrowful future a state of sorrow can occur if we all fight with each other when there are opportunities for work, business, and then manage oil and gas revenues in a reckless manner. financial resources are used without strict control and are used for various physical and social expenditures that are not relevant to basic needs. the spirit of sharing, the opportunity to get a fee and corruption are the main motivations. so that the seven years of bojonegoro's golden age will not leaving a trace for the bojonegoro's foundation sustainable growth. after the oil and gas resources run out, there are no more entrepreneurs interested in investing in bojonegoro, unemployment has risen sharply. the district government's finances again depend on the central government so that politicians and bojonegoro figures must ask the central government for attention. second scenario – short term scenario during the seven years of income and expenditure, both income and expenditure were always optimized to be included in the apbd during the seven golden years. it is extraordinary that the bojonegoro's apbd exceeds 4 trillion, including the high-ranking groups in east java. various lighthouse buildings have sprung up, buildings, roads, bridges, and social shopping are high. as a region with high income, bojonegoro is dashing, it does not need a special allocation fund and even the general allocation fund is decreasing. but that did not last long. as projected, oil and gas production only reach its peak in 3 years, and bojonegoro's high revenue will only be enjoyed for about seven years and after that the income will fall. as an area that once enjoyed quite a large amount of funds and suddenly fell, it is certainly very painful and makes us feel sad. if previously praised by many parties, and bojonegoro became the target of investment, now it is shunned, pitied by many parties and there will come an era of distress will come and is there any another scenario that is better than the previous scenario? it is quite possible, but the direction towards the realization of this third possibility is a sharp ascent. third scenario long term and sustainable all physical expenditure is only directed at matters which have a strong link to the long-term productivity of the bojonegoro people. the focus of bojonegoro's human development is aiming on the creation strong human resources with strong cultural and social capital. revenues from the oil and gas sector are managed carefully and part of the revenue is set up as an endowment fund, and only half of the revenue will be spent. even though, the revenues go to the development of its human quality. along with the quality growth of its human resources, they will be a strength resources by the time bojonegoro's oil and gas sector declined. this scenario needs strong willing of the political leader to bear on the difficult circumstances and make decision as precise as possible. the various positive changes that will be achieved, provide encouragement, and become a strong basis for supporting various policies that will be carried out in the next five years, namely framework for a foundation of resilience and competitiveness. its main targets are to strengthen the ability of bojonegoro's human capital together with the district government to continuously fulfil their basic needs: food, energy, order and security, quality of competent human resources, education and health services, job creation, a social and natural environment that is conducive to life support comfortable and productive. the quality of society through factors related to education and health can have an impact on the economy [12]. this scenario is what we have tried to implement since the exploration and exploitation stage in the bojonegoro development plan, both the long-term development plan and the regional medium-term development plan have been designed in the spirit of fighting the curse of natural resources and realizing sustainable development. sinergi, volume 11 number 1 maret 2021 20 suyoto1), fery permana adhy2) bojonegoro's economic growth strategy: turning curses into blessings this principle has created the six pillars of sustainable development and the six elements of a transformation strategy, as follows: 1. economic development pillars. the focus of this is how to make bojonegoro an area where all people can carry out economic activities, get opportunities for activities that can lead to sustainable income. putting the economy first is not without purpose. if you want to create prosperity and mutual happiness in a sustainable manner, the first key is that all bojonegoro people have an income that increases continuously. in relation to oil and gas, how to make exploration and exploitation opportunities for oil and gas to create job opportunities, business and increase economic opportunities in the non-oil and gas sector, especially agriculture, services, and manufacturing. 2. environmental pillar. economic activities require healthy and resilient environment, to make bojonegoro as a comfortable area for living, playing, working, worshiping, and studying. since hundreds of years ago bojonegoro has faced problems, too much water at certain times (floods), too little and even no water in some areas during dry periods (drought). plus, since the last 15 years, the problem of dirty water and air has been increasing along with economic activity. the focus of environmental development in bojonegoro is devoted to reduces sources of damage, repairing the damage and improving the quality of the environment in a sustainable manner through several programs that lead to physical development and activities which emphasize on attitudes changes to "respect, preserve, care for" the environment. its implementation includes, spatial revision, wastewater disposal installation obligations and environmental impact analysis in every industry, law enforcement, tree planting movements, bojonegoro shining gates, making biopores, embungs, irrigation infrastructure, paving roads, adiwiyata school, bengawan solo festival, grebeg berkah bojonegoro, and others. 3. human capital and social capital pillars. the mutually proactive support of social conditions creates conditions of safety, comfort, health, mutual trust, and openness to new possibilities. the people of bojonegoro must be a productive resource, therefore they must be physically and mentally healthy. changes from agriculture to other sectors by continuously improving the quality of the environment require social support and human resources. physically healthy and devout, innovative, and creative, and with an environmental perspective. it is for this that all programs of education, health, environment, national resilience, and unity are carried out. the focus is on the realization of cultural capital and social capital for all the people of bojonegoro. some of the programs include, improving education and health infrastructure, improving the quality of education and health personnel, opening programs and types of training in skills relevant to the people, domestic and foreign cooperation, increasing the competence of civil organizations and empowering communities that are members of non-governmental organizations (ngo) or there is a term as a non-government organization (ngo) to support the development of bojonegoro, through their respective work and training for 12,000 vocational workforce each year to improve the skills of the bojonegoro's human capital. 4. pillars of sustainable fiscal policy. it cannot be denied that bojonegoro will receive an increase in revenue from the oil and gas revenue sharing fund, and possibly a share of the business results from participating interest. however, it does not mean that it is without problems, apart from the problem of post-oil and gas anticipation, there are still facing two problems, firstly income fluctuation problems. regarding oil and gas revenue uncertainty, it can occur because of the following three reasons (1) international oil and gas prices that can fluctuate drastically, (2) the increase and decrease in lifting tools which is not within the authority of bojonegoro, and (3) the central political situation. often the national situation makes the central leaders postpone the transfer of the sharing of revenue sharing funds. this situation has been experienced by bojonegoro several times and resulted in almost default on several projects being implemented. in terms of income, bojonegoro must be careful in estimating the revenuesharing funds that will be included in the regional budget. moreover, the law in indonesia stipulates that regions with high income do not receive special allocation funds and that the general allocation funds will be reduced to zero. secondly, allocating budget appropriately. how in the uncertainty of such income can allocate its budget appropriately and sinergi, volume 11 number 1 maret 2021 suyoto1), fery permana adhy2) 21 bojonegoro's economic growth strategy: turning curses into blessings has implications for bojonegoro's ability to finance its sustainability programs? 5. pillars of smart, good, and clean governance. to carry out or realize the pillars of the economy, environment, human capital, and social capital, carrying out a proper fiscal policy requires a strong, smart, healthy, clean, and proactive government towards all dynamics of society, entrepreneurs, civil groups, and political forces. although democracy relies on the existence of strong business groups and civil society, it is imperative to have a bureaucracy that serves appropriately, quickly and is oriented towards the greatest benefits to the people. within that framework, bureaucratic reform and empowerment of the apparatus are carried out. 6. pillars of transformative leadership. bojonegoro needs to promote, create, and maintain transformative leadership in political and social leadership. business and bureaucracy. transformative leadership is leadership that drives and manages change continuously. to carry out the six pillars of bojonegoro's sustainable development and its six elements of transformation, it cannot be managed with a leadership that is solely oriented to the status quo, establishment, and harmony. on the other hand, transformation must be managed with a harmonious dynamic approach. particularly, regarding the realization of this transformative leadership, political parties, mass organizations, and civilian organizations must take responsibility. these responsibilities are very important because from it not only the leadership practices are carried out, but also the source of leadership will be born. iv. conclusion in general, the six pillars of bojonegoro's sustainable development as stated in the previous discussion are basically the choice of the path of transformation, but it is still necessary to confirm how this scenario will be followed. for this, it is necessary to affirm what must be transformed, namely the six elements of bojonegoro's transformation as follows: 1. vision transformation. all people's elements in bojonegoro need a future's perspective of their wealthiness life. that picture is the common direction that is aimed at and illustrates the regional superiority that is to be realized together. to realize this quest, the six visions of the six pillars of sustainable development are emphasized. 2. vision for economic development. bojonegoro has competitive advantage on food and energy resources, competitive advantage in educational-health services, trade, tourism and as the most competitive area for labour intensive manufacturing. 3. environmental vision. bojonegoro is an area most resilient to the threat of disaster, a comfortable place to live, play, work, do business and worship. 4. social vision. the new bojonegoro's human capital is a person who is physically and mentally healthy, creative, innovative, productive in creating benefits for others and can create happiness for himself and his environment. 5. fiscal policy vision. in fiscal terms, the government of bojonegoro regency is towards fiscal independence, independent of the province and the centre and has the fiscal capacity that continues to grow healthily in a sustainable manner. 6. vision of the bureaucracy. the bojonegoro regency government is a government that can quickly serve the needs of its citizens, is able to proactively respond and synergize all the dynamics of various interest groups and is able to proactively offer various options that enlighten and empower citizens, while remaining strong as a protector, guardian, and guardian of its citizens in all their human rights 7. vision of leadership. bojonegoro's leadership model is transformative leadership, motivating leadership, those not fixated on routines and the status quo or comfort zone. as now what we can see in bojonegoro todays growth as a result its consistency implementing long term and sustainable (scenario 3) – people harvesting the fruitful both politics climate and economic growth like decreasing the poverty rate, the human resource index rises, and the low nutritive ratio index is low. a fiscal increase also occurred where bojonegoro, which previously only had shares worth 500 million to 75 billion, or the 4th largest shareholder of east java banks, after the provincial government, surabaya, sidoarjo, and bojonegoro. sinergi, volume 11 number 1 maret 2021 22 suyoto1), fery permana adhy2) bojonegoro's economic growth strategy: turning curses into blessings references [1] m. indrasari and s. riyadi, “implementation of empowerment program for person with disability in indonesia.,” j. adv. res. dyn. control syst., vol. 11, no. 7, pp. 298–303, 2019. [2] m. porter and c. van der linde, “toward a new conception of the environmentcompetitiveness relationship,” j. econ. perspect., vol. 9, no. 4, pp. 97–118, 1995. [3] r. emas, “the concept of sustainable development: definition and defining principles,” br. gsdr, vol. 2015, 2015. [4] j. dernbach, “achieving sustainable development: the centrality and multiple facets of integrated decisionmaking,” indiana j. glob. leg. stud., vol. 10, no. 1, pp. 247–284, 2003, doi: 10.1353/gls.2003.0006. [5] j. ruhl, “sustainable development: a fivedimensional algorithm for environmental law,” stan. envtl. lj, vol. 18, p. 31, 1999. [6] a. stark, “bureaucratic values and resilience: an exploration of crisis management adaptation,” public adm., vol. 92, no. 3, pp. 692–706, 2014. [7] s. chen and w. härdle, “dynamic activity analysis model-based win-win development forecasting under environment regulations in china,” comput. stat., vol. 29, no. 6, pp. 1543–1570, 2014. [8] h. stoddart, “guide to sustainable development governance,” stakehold. forum, 2011. [9] c. brodhag and s. talière, “sustainable development strategies: tools for policy coherence,” nat. resour. forum, 2006, doi: 10.1111/j.1477-8947.2006.00166.x. [10] r. declaration, “rio declaration on environment and development.” 1992. [11] h. bungkaes, j. posumah, and b. kiyai, “hubungan efektivitas pengelolaan program raskin dengan peningkatan kesejahteraan masyarakat di desa mamahan kecamatan gemeh kabupaten kepualauan talaud,” j. “ acta diurna ” ed. april 2013, 2013. [12] suyanto, b. purnomo, and r. standsyah, “impact of education and health on the unemployment rate and economy of east java,” sinergi j. ilm. ilmu manaj., vol. 9, no. 2, pp. 26–31, 2019. sinergi, volume 11 number 1 maret 2021 bisma arianto1), fachrudy asj’ari2) 1 work performance through education level, age, and experience at universitas pgri adi buana surabaya work performance through education level, age, and experience at universitas pgri adi buana surabaya bisma arianto1, fachrudy asj’ari2 department of management,universitas pgri adi buana,surabaya,indonesia 1bismaarianto@unipasby.ac.id, 2fachrudy@unipasby.ac.id submit: 27th december 2020, revised: 08 th february 2021 , accepted: 29 th march 2021 abstract. the competence of educational personnel is one of the success factors for the sustainability of the teacher training institute which must be regulated dynamically. one of the fundamental things related to the performance of educational personnel is the competence they have. this competence is influenced by many factors including education level, age, and experiences. the three of them are components that affect the productivity and performance of the educational personnel in the universitas pgri adi buana surabaya. the education level data, age, and experiences were collected through the documentation, while the performance of education personnel was collected through a questionnaire. the hypothesis was tested using a quantitative analysis using statistical test tools. the results of this study indicate that (1) the education level has a significant effect on the performance of educational personnel by 10.1%; (2) age does not have a significant effect on teaching staff performance; (3) experience has a significant effect on the performance of educational personnel by 11.4%; and (4) education level, age, and experience have a significant simultaneous effect on the performance of the educational personnel at the universitas pgri adi buana surabaya by 21.8%. this is indicated by the sig value <.05 for the education level, age, and experience. keywords:performance;education,age;experience. i. introduction permenristekdikti number 38 of 2016 states that education personnel is members of the community who devote themselves and are appointed to support the implementation of education[1]. this also applies to universitas pgri adi buana surabaya as one of the teacher training institute which has educational staff to support its performance. the performance of education personnel can be achieved optimally if there is support from the institution. the success of universitas pgri adi buana surabaya as an institution engaged in education cannot be achieved properly if it is not accompanied by the quality of its human resources. as a teacher training institute, universitas pgri adi buana surabaya certainly expects human resources who are talented, qualified, have work efficiency, and also high work productivity. this is what causes the institution to want education personnel to work well again. this is because human resource needs are based on the needs and criteria of their work. educational personnel who are in by their educational background will certainly have a good performance in the teacher training institute [2]. performance is an interesting topic to discuss including ways to improve it. performance is often defined as the quality and quantity of work achieved by educational personnel in carrying out their duties[3]. for each individual, performance can be seen based on the influencing factors to allow ways to increase the maximum performance. some researchers reveal the performance indicators of education personnel, namely the quality of work, quantity of work, timeliness, and effectiveness [4]. factors influence the performance of the educational staff, namely last education, age, and years of service. performance achievement is influenced by two factors, namely ability and motivation[5]. both are defined as: human performance = ability + motivation motivation = attitude + situation ability = knowledge + skill educational personnel who work following their education level certainly have a positive impact on their performance. so as teacher training institute, of course, will choose educational personnel with the education level that is "qualified" with their current position. besides, this is of course also supported by the age of the education personnel. the productive age of the educational personnel certainly gives new energy to their performance. the age of the sinergi, volume 11 number 1 maret 2021 2 bisma arianto1), fachrudy asj’ari2) work performance through education level, age, and experience at universitas pgri adi buana surabaya education personnel is an important topic of conversation that always develops from period to period [6]. it is hoped that the performance of education personnel will be maximized because at their productive age it will produce useful breakthroughs for the universitas pgri adi buana surabaya. third, supported by the experience of the educational personnel is expected to advance the universitas pgri adi buana surabaya in the future. through these three components, it is expected that they can show good performance for teacher training institute. this does not stop here, but must be supported by other external factors in the form of increased performance in the form of training and workshop activities. the prospect is that increased performance will have a positive impact on the universitas pgri adi buana surabaya. this ensures the sustainability of the institution towards significant developments in the future. to achieve optimal goals, institutions must encourage their education personnel to excel and maintain their performance. many studies discuss the performance of education personnel including abadiyah [7], arianto [8], decramer, smolders, & vanderstraeten[9], and many other researchers. organizational culture, compensation for satisfaction and performance of bank employees in surabaya. the results show that organizational culture affects job satisfaction, organizational culture affects performance, job satisfaction affects performance, compensation affects job satisfaction, and compensation affects the performance of bank employees in surabaya[7];[10]. the effect of work discipline, work environment, and work culture on the performance of teaching staff. the results show that work discipline has no effect on performance, the work environment has no effect on performance, work culture has a positive influence on the performance of teaching staff, and collectively, work discipline, work environment and work culture have a positive effect on teaching staff performance[8]. meanwhile,the alignment of employee performance management systems in communication at each unit. the results show that performance satisfaction is influenced by tenure, various suggestions, and policies that apply at the university[9]. some of the studies above, it shows that there are still other factors that influence employee performance. in addition to the work environment, work culture, discipline, tenure, it turns out that there are still the latest types of education level, age, and also experience of educational personnel. this is an opening for further research by researchers. based on the background description above, the researcher is interested in examining the relationship between education level, age and experience on the performance of educational personnel at the universitas pgri adi buana surabaya. goals of this study were to determine (1) the relationship between education level and the performance of educational personnel at the universitas pgri adi buana surabaya; (2) the relationship between age and the performance of educational personnel at the universitas pgri adi buana surabaya; (3) the relationship between experience and the performance of educational personnel at the universitas pgri adi buana surabaya; and (4) the relationship between education level, age, and experience with the performance of educational personnel at the universitas pgri adi buana surabaya. the conceptual framework in this study is presented as follows. figure 1. conceptual framework based on the conceptual framework above, the researcher formulated four hypotheses h1: there is an influence between the education level on the performance of the educational personnel at the universitas pgri adi buana surabaya. h2: there is an influence between age on the performance of educational personnel at the universitas pgri adi buana surabaya. h3: there is an influence between experience on the performance of educational personnel at the universitas pgri adi buana surabaya. h4: there is a simultaneous influence between education level, age, and experience on the performance of educational personnel at the universitas pgri adi buana surabaya. education age experience performance h 1 h 2 h 3 h 4 sinergi, volume 11 number 1 maret 2021 bisma arianto1), fachrudy asj’ari2) 3 work performance through education level, age, and experience at universitas pgri adi buana surabaya ii.researchmethodology this study is an explanatory study to explain the relationship between the independent variables and the dependent variable. this relationship is explained through hypothesis testing that has been formulated by the researcher [11]. this study was conducted at the universitas pgri adi buana surabaya which involved all 168 active education personnel. data collection methods used by researchers are documentation and questionnaire. the documentation method is used to collect data on the education level, age, and experience of each educational personnel. documentation data were collected by researchers through the human resources development (hrd) of universitas pgri adi buana surabaya. while the questionnaire method is used to collect performance data of each educational staff. the questionnaire was given to the head of the department where each educational staff took shelter. the data obtained by the researcher were then categorized using a likert scale. the results were analyzed using the help of relevant statistical analysis tools. iii. result and discussion from the results of data collection on 168 educational personnel at the university of pgri adi buana surabaya, researchers categorized them based on a predetermined likert scale. in general, the results of data collection can be grouped as presented below. 1. education level the results of data collection on the education level from education personnel are presented in table 1. table 1.educational level level % elementary school /sederajat 5,95 junior high school/sederajat 16,67 senior high school/sederajat 33,93 diploma 1,79 bachelor 39,88 master 1,78 from table 1 above, it shows that the majority of the education personnel at the universitas pgri adi buana surabaya, whose education level was a bachelor's degree, was 39.88%. then the education staff with the education level is senior high school/equivalent was 33.93%. 2. age the results of data collection on the age of education personnel are presented in table 2 below. table 2. age age % 21 28 22,02 29 36 19,05 37 44 19,64 45 52 21,43 53 60 14,88 61 68 2,98 from table 2 above, it shows that the majority of education personnel at the universitas pgri adi buana surabaya are of productive age, in the 21-52 years range of 82.14%. meanwhile, educational personnel who were more than 53 years old were 17.86%. 3. experience the results of data collection on the experience of education personnel are presented in table 3. table 3.experience experience (year) % 0 5 50,6 6 10 26,78 11 15 2,98 16 20 1,19 26 30 9,52 31 35 7,14 36 40 1,79 from table 3 above, it shows that the majority of education personnel at the universitas pgri adi buana surabaya have a work period of 0-5 years of 50.6%. furthermore, education personnel with a working period of between 6-10 years amounted to 26.78%. meanwhile, the other education sinergi, volume 11 number 1 maret 2021 4 bisma arianto1), fachrudy asj’ari2) work performance through education level, age, and experience at universitas pgri adi buana surabaya personnel are spread over various working periods. based on the results of data analysis for the latest education level variables, age, and experience using linear regression, the results are shown in table 4. table 4. analysis results coefficientsa model unstandardize d coefficients standardized coefficients t sig. b std. error beta (constant) 2.798 .193 14.519 .000 age -.024 .051 -.042 -.460 .646 experie nce .185 .044 .365 4.196 .000 educati on .157 .037 .311 4.256 .000 from the results of the above analysis as presented in table 4, it shows that 1. the education level variable (x1) the results of the analysis in table 4 above, show sig <.05 which indicates that ha is accepted. this means that the education level variable has a significant effect on the performance of the education personnel at the universitas pgri adi buana surabaya by 10.1%. as described in table 4, the majority of education personnel have the bachelor's degree education level. the results of this study contradict research from mandang, lumanauw, & walangitan [12]which states that the level of education partially does not have a significant effect on employee performance. this is because there is support for training for employees so that they can improve their performance. however, the results of this study are supported by previous study by ratnasari & sunuharyo (2018) which states that the level of education affects the performance of pt. petrokimia gresik. this study is also supported by providing training to employees to improve their performance because training also has a significant effect on employee performance[13]. this is also supported by previous study by mandang, et al. (2017) [12]which supports the provision of training to improve performance. this shows that with the latest level of education which is qualified and in accordance with the competence of the field of work, it can certainly support teacher training institute performance. the teacher training institute, which are supported by qualified educational personnel, can certainly facilitate the administrative tasks they must carry out. in addition to the last level of education, the teacher training institute, in this case the universitas pgri adi buana surabaya, must also equip education personnel through training and workshops to improve their competence. as stated by mandang, et al. (2017)[12] and ratnasari & sunuharyo (2018)[13] that training organized by companies has a significant effect on employee performance. 2. the age variabel (x2) the results of the analysis in table 4 above, show sig> .05 which indicates that ha is rejected. this means that the age variable does not have a significant effect on the performance of education personnel at the universitas pgri adi buana surabaya. this contrasts with previous study conducted by harahap [14]which states that there is a significant correlation between age variables and employee performance variables. from these studies, it shows that the age of the employees affects their performance in the company. however, the results of this study are supported by other studies conducted by anjani & wirawati (2018) [15]and widyatmoko & pramudi (2011) [16]that age has a negative effect on the effectiveness of using information systems that use management system assistance. this shows that age is an intrinsic factor that affects the use of a new management system [17]. therefore, as a teacher training institute located in a big city, the universitas pgri adi buana surabaya also pays attention by providing training to face these developments. through routine training activities every year held by the universitas pgri adi buana surabaya, the aim is to prepare education personnel for the development of information technology. providing training to improve the performance of education personnel in mastering certain skills and job techniques, in detail and routinely[12];[18]. through training, education personnel are an investment in human resources that can later be tailored to the needs of their positions as well as providing job skills. so, this is the strength that the age factor does not affect the performance of the education sinergi, volume 11 number 1 maret 2021 bisma arianto1), fachrudy asj’ari2) 5 work performance through education level, age, and experience at universitas pgri adi buana surabaya personnel at the universitas pgri adi buana surabaya. 3. the experience variable (x3) the results of the analysis in table 4 above, show sig <.05 which indicates that ha is accepted. this means that the experienceeducational personnel at the universitas pgri adi buana surabaya by 11.4%. this is supported by the study of istanti, et al. (2020) which states that work experience has a positive influence and a real effect on the productivity of employees. throughout the work period, education personnel have mature experience in dealing with work on campus. of course, with mature experience, it can make education staff as supporters of the sustainability of the teachertraining institute, especially the universitas pgri adi buana surabaya. this result is also supported by previous study[15];[19]that experience affects employee performance. the longer the work period of an employee, the more effective the performance, especially in the use of information systems. as is the case at the universitas pgri adi buana surabaya, the experience of education personnel has a role in their performance. 4. the education level, age, and experience the results of the analysis using linear regression are obtained as in tables 5 and 6 below. table 5.analysis results model r r square adjusted r square std. error of the estimate 1 .467a .218 .204 .613 table 6. analysis results anovaa model sum of squares df mean square f sig. regression 17.195 3 5.732 15.246 .000b residual 61.656 164 .376 total 78.851 167 from the results of the analysis in tables 5 and 6 above, it is obtained sig <.05 which indicates that ha is accepted. this means that the education level variables, age, and experience have a significant simultaneous effect on the performance of the education personnel at the universitas pgri adi buana surabaya. the effect of the three simultaneously (see table 5) of r square is 21.8% on the performance of the education personnel. this shows that simultaneously all three have an influence on the performance of the education personnel. although the results of the analysis on the age of education personnel do not have a significant effect on their performance. but the results of the regression carried out by researchers, all three simultaneously have a relationship to support the performance of education personnel in the universitas pgri adi buana surabaya. this shows that the quality of the education personnel at the universitas pgri adi buana surabaya has good work productivity to support the progress in the future. iv. conclusion based on the results of data analysis and discussions that have been carried out above, it can be concluded that: 1. the last education level variable has a significant effect on the performance of the education personnel at the universitas pgri adi buana surabaya by 10.1%. 2. the variable age does not have a significant effect on the performance of the education personnel at the universitas pgri adi buana surabaya. 3. the variable of experience has a significant effect on the performance of the education personnel at the universitas pgri adi buana surabaya by 11.4%. 4. the education level variables, age, and experience have a significant simultaneous effect on the performance of the education personnel at the universitas pgri adi buana surabaya by 21.8%. v. acknowledgment we would like to thank the lppm universitas pgri adi buana surabaya for funding this study. all parties who have participated so that this study. references [1] permenristekdikti, “tata cara pengangkatan sinergi, volume 11 number 1 maret 2021 6 bisma arianto1), fachrudy asj’ari2) work performance through education level, age, and experience at universitas pgri adi buana surabaya dan pemberhentian dosen dan tenaga kependidikan sebagai pegawai pemerintah. menteri riset, teknologi, dan pendidikan tinggi republik indonesia,” 2016. [2] e. istanti, a. amaliyah, and a. gs, “work productivity through compensation, experiences and welfare benefits pt summit oto finance surabaya,” sinergi j. ilm. ilmu manaj., vol. 10, no. 2, 2020, doi: 10.25139/sng.v10i2.2877. [3] a. kurniawan, transformasi pelayanan publik. pembaruan, 2005. [4] anshori and arfah, psikologi industri edisi keempat. yogyakarta: liberty, 2005. [5] a. mangkunegara, evaluasi kinerja sdm. refika aditama bandung, 2005. [6] s. robbins, “perilaku organisasi, edisi bahasa indonesia,” jakarta pt. indeks kelompok gramedia, 2006. [7] r. abadiyah, “pengaruh budaya organisasi, kompensasi terhadap kepuasan kerja dan kinerja pegawai bank di surabaya,” jbmp (jurnal bisnis, manaj. dan perbankan), vol. 2, no. 1, pp. 49–66, 2016. [8] d. arianto, “pengaruh kedisiplinan, lingkungan kerja dan budaya kerja terhadap kinerja tenaga pengajar,” j. econ., vol. 9, no. 2, pp. 191–200, 2013. [9] a. decramer, c. smolders, and a. vanderstraeten, “employee performance management culture and system features in higher education: relationship with employee performance management satisfaction,” int. j. hum. resour. manag., vol. 24, no. 2, pp. 352– 371, 2013. [10] m. indrasari, n. syamsudin, r. purnomo, and e. yunus, “compensation, organizational communication, and career path as determinants of employee performance improvement.” [11] sugiyono, metode penelitian manajemen. bandung: alfabeta, cv, 2013. [12] e. mandang, b. lumanauw, and m. walangitan, “pengaruh tingkat pendidikan dan pelatihan terhadap kinerja karyawan pada pt. bank rakyat indonesia (persero), tbk cabang manado,” j. emba j. ris. ekon. manajemen, bisnis dan akunt., vol. 5, no. 3, 2017. [13] m. ratnasari and b. sunuharyo, “pengaruh pendidikan dan pelatihan terhadap kinerja karyawan melalui variabel mediator kemampuan kerja karyawan (studi pada karyawan pt petrokimia gresik),” j. adm. bisnis, vol. 58, no. 1, pp. 200–209, 2018. [14] s. harahap, “hubungan usia, tingkat pendidikan, kemampuan bekerja dan masa bekerja terhadap kinerja pegawai dengan menggunakan metode pearson correlation,” j. teknovasi j. tek. dan inov., vol. 6, no. 2, pp. 12–26, 2019. [15] p. anjani and n. wirawati, “pengaruh usia, pengalaman kerja, tingkat pendidikan, dan kompleksitas tugas terhadap efektivitas pengguna sistem informasi akuntansi,” ejurnal akunt., vol. 22, no. 3, pp. 2430–2457, 2018. [16] k. widyatmoko and y. pramudi, “pengaruh karakteristik lndividu, sikap, dan pelatihan terhadap penggunaan teknologi lnformasi dan kinerja pegawai kelurahan menuju terwujudnya e-government,” j. dian, vol. 11, no. 1, 2011. [17] e. wirjono, “pengaruh kepercayaan dan umur terhadap kinerja individual dalam penggunaan teknologi informasi,” j. ilm. akunt. dan bisnis, vol. 5, no. 1, 2010. [18] t. handoko, manajemen personalia dan sumberdaya manusia. bpfe, 2016. [19] n. widyantari and i. suardikha, “pengaruh pelatihan dan pendidikan, pengalaman kerja dan partisipasi manajemen pada efektivitas penggunaan sistem informasi akuntansi,” ejurnal akunt., vol. 17, no. 2, pp. 1546–1574, 2016. isc paper template in a4 (v1) sinergi, volume 11 number 1 maret 2021 sambari radianto1), tri cicik wijayanti 2), naurah aurelia3) 23 challenge on regional economic impact during covid-19 outbreaks challenge on regional economic impact during covid-19 outbreaks sambari radianto1, tri cicik wijayanti 2, naurah aurelia3 1,2postgraduate, universitas muhammadiyah gresik, indonesia 3graduate student, university of melbourne, australia 1sh.radianto@umg.ac.id, 2tricicik@umg.ac.id, 3nmahjudin@student.unimelb.edu.au submit: 30th january 2021, revised: 06 th february 2021 , accepted: 30 th march 2021 abstract.indonesia officially declared the first case of the corona virus infection that caused covid-19 in early march 2020. since then, various counter measures have been taken by the government to reduce the impact of the covid-19 outbreaks in various sectors. restrictions on community activities affect business activities which led to economics declination. this study aims to estimate the impact of the covid-19 outbreaks on the regional economic development. this research using composite index to estimate the challenge covid-19 outbreaks on the regional economic and this was carried out by building an index composite showing the severity of health on one hand and economic performance on the other. this research shows, 34 provinces in indonesia can be classified into four quadrants: 1) health improving and the economy is improving, 2) health is improving and the economy is deteriorating, 3) health worsening and the economy is improving, and 4) health is deteriorating and the economy is deteriorating. this study provides suggestions to be more accurate in identifying problems and finding precise solutions, the local government should collect data and research on economic aspects in a fast and precise way, namely 1) the level of the covid-19 outbreak in the province, 2) risk factors for natural disasters, 3), factors characteristic of economic problems, 4) fiscal burden factors. keywords: covid-19 outbreaks; economic development; economics crisis; regional economics. i. introduction on march 15th, 2020, the first indonesian cases of the novel coronavirus were published in the who’s fifth report [1]. when the outbreak hit indonesia, java island which is one of the biggest islands in indonesia has severe damage from covid19 pandemics compare to another island. given that covid-19 has not passed until now, questions arise that must be answered: what and how will the impact of covid-19 on the indonesian economy, both nationally and sub-nationally. various parties have made efforts to answer this question, both to estimate the impact of the covid-19 outbreak on the national economy as well as at the sub-national level. calculation on the economic impacts of covid-19 outbreak at a national level was carried out many researchers, some of them are dito adidharma [2] and yusuf [3]. using computable general equilibrium model, yusuf simulates three scenarios (minimal intervention against covid-19, psbb/strong intervention, and psbb accompanied by fiscal stimulus) and estimates of their respective impacts on economic growth. the simulation results found that in any scenario, the national economy will experience a decline towards the baseline (if the covid-19 did not exist) with several decreases, from minus 0.11 to minus 4.21 percentage points (percentage difference from baseline). furthermore, the simulation shows that in the long term (in the next decade), economic growth will be more depressed if the scenario chosen is minimal intervention. east java as one of the region still provides high hopes for future economic growth [4]. according to data from east java in 2017, east java's economy was 0.343% [5]. accordingly, the calculations indicate that the economic losses from the large-scale social restrictions (pembatasan sosial berskala besar) are much lower than the economic losses from the minimal intervention scenario [6], and of course the psbb accompanied by fiscal stimulus is the best scenario according to these simulations and calculations. another example of analysis at the national level with different methods is the regression analysis of the impact of economic contraction on poverty, as was done by suryahadi, al izzati, & suryadarma [7]. it is estimated that the poverty rate, which was in the range of 9.2 percent (september 2019), will become 9.7 percent by the end of 2020. this is equivalent to the emergence of only 1.3 million poor people. in fact, in the worst-case scenario, poverty increases to 12.4%, which is equivalent to 8.5 million new poor people. suryahadi carried out at the sub-national level, using a fast indicator (relative to standard sinergi, volume 11 number 1 maret 2021 24 sambari radianto1), tri cicik wijayanti2), naurah aurelia3) challenge on regional economic impact during covid-19 outbreaks macroeconomic data, which time lagging can reach a year) as proxies to economic indicators, namely movement data of facebook users recorded in the facebook range map. mobility is assumed to be a good proxy because it is a very important part of economic activity, which shows the movement to the centre of activity, the movement of goods, and shopping activities. it is assumed that the higher the mobility, the higher the economic activity [7]. analysis of the impact of the covid-19 outbreaks on the economy is carried out by building a composite index that shows the severity of health on the one hand and economic performance on the other [8]. as a result, 34 provinces in indonesia can be classified into four quadrants: 1) health is improving and the economy is improving, 2) health is improving and the economy is deteriorating, 3) health is deteriorating and the economy is improving, and 4) health is getting worse and the economy is deteriorating. the three timelines used were august (baseline) and october 29 (end line); the condition for better or worse is done by comparing the conditions in the three timelines. with the results of previous studies, this paper tries to complement with a focus on the sub-national level, namely the province. to solve this problem, three interrelated questions were raised: 1) how widespread and what is the trend of the spread of covid-19 in each province in indonesia? 2) what is the estimated impact on the province economy? and 3) what are the possible economic policies to reduce the impact of the outbreak in each of these provinces? this research will try to present descriptive answers by maximizing the use of data at province level. ii. research methodology this research utilizes descriptive methods to measure the economic impact of covid-19 in indonesia and rely on a simple model with several accompanying assumptions. this simple model assumes that the severity impact of covid-19 on the province economy (oi) is determined by four factors that simultaneously work in the regions, namely the outbreaks level (pl), potential risk for natural disasters (nd), poverties level (pol), and fiscal's pressure (fc). so, we can assume that bigger pl, nd, pol, and fc the bigger oi. the level of the covid-19 outbreaks (oi) is measured by a modification of the variable, namely the ratio of cured cases to the ratio of infected cases, which we call the variable pl. we calculated the modification of pl variable is at the provincial level instead of the island cluster, and in addition, because of the variation in the pl value from time to time, we used pl based on three months (throughout august and october 2020) or the last 92 days of observation. we considered the last three months of observation because at the beginning of the outbreak the province health institutional system was assumed not ready yet to face the covid-19 outbreak. but within last three months it has worked properly so that the initial value in that period relatively reflects the real capacity of the health system. the higher the pl the higher the oi (the economic impact of covid-19 in one province). natural disaster risk factor (nd) is a factor that will affect an area's ability to resist pressure. imagine if an area experiences a natural disaster at the same time as the covid-19 outbreak, the pressure will multiply. thus, in this model, the more an area has a high-risk factor for disaster, the higher the economic impact it will experience. in this research, disaster risk factors are measured with the latest data collected in the 2020 natural disaster survey [9]. the factor of provinces poverties (pol) in this research will use poverties information from bps data on 2019 census for this article purposes [10]. the higher the poverty level before the covid-19 outbreak, the heavier the economic impact of covid19 in the provinces. because simultaneously the number of poor people will increase with the new poor. the fiscal pressure factor (f) is measured by actual provinces income per capita which in this paper is generated from total province's actual income and then divided by the number of provincial residents. provinces actual income per capita demonstrates a region's ability to use its budget resources to tackle covid-19, for example to provide financial assistance and subsidies to the community. actual province's income per capita was chosen as an indicator because it shows the relative financial capacity of each region independent of financial transfers from the centre [2]. sinergi, volume 11 number 1 maret 2021 sambari radianto1), tri cicik wijayanti 2), naurah aurelia3) 25 challenge on regional economic impact during covid-19 outbreaks iii. results and discussion composite index calculation in use for this research is the first iteration on varimax rotation using spss v.23. the calculation without weighting all variables so they are considered to have the same weight. of course, this is another simplification of the model and the calculation results presented in this paper. with a note about the limitations of the model and the process of calculating the composite index, the results are shown in table 1. table 1. mapping of composite index calculation results from table 1, there are three classifications of economic severity due to covid-19 that are estimated to be experienced by each region, which has severity impact of covid-19 (oi) value higher than 0.60 indicating high outbreak level (worst condition), the oi value ranges from 0.50-0.60 indicating middle conditions, and the oi value below 0.50 confirming those regions have low outbreak level. the region likewise jawa tengah, jawa timur, sulawesi utara, sulawesi selatan, kalimantan selatan, sumatera barat, sulawesi tengah, bengkulu are among the provinces being predicted will get worst economic impact from covid-19 outbreaks, so from these like regions an intense solution should be prepared by provinces governments to overcome and anticipate these impacts. suggested policies framework the descriptive analysis carried out in previous section, contains limitations on economic standard data which does not allow the regions to validly produce concrete policy prescriptions that can be carried out. even econometric analysis and computable general equilibrium also have limitations in terms of the novelty of the data used and the level which is still the national aggregate or the most detailed provincial level. macroeconomic data as well as survey data at the household level have a long lag, between data collection and data ready-to-use. from an economic point of view, the covid-19 outbreak that has been occurring since early 2020 in all countries in the world, is called a non-economic event that has a shocking effect on the economy. the economy is under pressure (shock) both from the production side (supply side) and demand (demand side). the supply side is depressed / reduced / stopped due to concerns about health risks if the goods and services production process is carried out (factories, offices, restaurants, hotels, etc. are closed). the direct result is the loss of people's jobs (new unemployment appears) as has been recorded in the rapid assessment, which in turn reduces their purchasing power. declining purchasing power has even resulted in a decrease in consumption for basic food needs or what is called food insecurity in the discussion in the previous section. furthermore, those who live in urban areas or in locations where renting housing and living costs are more expensive are forced to do temporary migration as identified in the rapid assessment [11]. this paper departs from a simple model which assumes that the severity of the impact of covid-19 on the provinces’ economy (oi) is determined by four factors that simultaneously work in each province, namely: the level of the covid-19 outbreak in the provinces (pl), potential risk for natural disasters (nd), the poverties level (pol), and the fiscal distress factor (fc). even though it has limitations, it is hoped that the information generated will be useful, especially for local governments, that the scale of economic problems due to covid-19 will be even greater if the outbreak continues and regions have various other problems such as these variables. this simple model can even be made more complete with other variables, for example the morbidity rate or prevalence of other infectious diseases in the provinces, and other relevant variables. sinergi, volume 11 number 1 maret 2021 26 sambari radianto1), tri cicik wijayanti2), naurah aurelia3) challenge on regional economic impact during covid-19 outbreaks to identify problems and find solutions that can be done, local governments should collect data and research on economic aspects in a fast and precise manner, as exemplified in the references referred to in this paper more accurately. relying on traditional data that has a long time-lagging time can result in delays in policy implementation or even misdirection as was found in some cases during this outbreak. iv. conclusion the covid-19 pandemic situation provides both a challenge and an opportunity for the government to maintain the existence of business actors as the spearhead of the economy. challenges are defined as the need for short-term solutions to help business actors and their workers. opportunity means that short-term solutions need to be followed by longterm solutions, especially when it is related to the industrial era 4.0 which requires the availability of digital technology to support economic activity. there are several solutions that need to be considered, namely: strict health protocols in carrying out economic activities by business actors, delaying debt or credit payments to maintain financial liquidity, financial assistance for business actors, and structural policies. firstly, strict health protocols can be applied when the government gives permission for businesses to carry out their activities. the mandatory use of masks, gloves and a safe distance between workers can be a requirement for continuing to carry out their activities. of course, there needs to be cooperation from business actors and close supervision from the competent authorities so that this health protocol can run well. in this context, the government can involve civil servants at the village office in monitoring the implementation of health protocols for business actors who can carry out their activities. second, the government can issue policies to provide concessional debt or credit repayments for business actors or even postpone the payment process for up to six months by considering financial liquidity. this includes simplifying the administrative process for obtaining a loan during this emergency. this can be done so that business actors including workers can maintain the level of consumption and purchasing power while at the same time supporting the running of the national economy. third, financial assistance to business actors. the indonesian government has disbursed a budget of rp. 70.1 trillion for tax incentives and stimulus for business actors' credit from the total budget of rp. 405.1 trillion overcoming the covid-19 pandemic through the 2020 state budget. the distribution of this budget must be transparent, clear, and on target so that the existence of local business and real economic activities is maintained. fourth, structural policies for long-term interests. this policy is not only used to deal with the covid19 pandemic but also the industrial 4.0 era in the future. this policy includes short-term policies for business actors, namely the introduction of digital technology and training for business actors and their workers as well as long-term policies for businesses to adapt to the use of technology for production processes, use of digital technology media to promote their products. references [1] who, “coronavirus disease 2019 (covid-19) situation report – 72,” 2020. https://www.who.int/docs/defaultsource/coronaviruse/situationreports/20200401-sitrep-72-covid19.pdf?sfvrsn=3dd8971b_2. [2] d. nasution, e. erlina, and i. muda, “dampak pandemi covid-19 terhadap perekonomian indonesia,” j. benefita, vol. 5, no. 2, p. 212, 2020, doi: 10.22216/jbe.v5i2.5313. [3] a. yusuf, “mengukur ongkos ekonomi" sesungguhnya" dari pandemi covid-19,” sdgs cent. unpad, 2020. [4] e. yunus and m. indrasari, “opportunities and challenges of tourism industry,” int. j. econ. res., vol. 14, no. 7, pp. 277–291, 2017. [5] suyanto, b. purnomo, and r. standsyah, “impact of education and health on the unemployment rate and economy of east java,” sinergi j. ilm. ilmu manaj., vol. 9, no. 2, pp. 26–31, 2019. [6] a. pakpahan, “covid-19 dan implikasi bagi usaha mikro, kecil, dan menengah,” j. ilm. hub. int., pp. 59–64, 2020. [7] a. suryahadi, r. al izzati, and d. suryadarma, “the impact of covid-19 outbreak on poverty: an estimation for indonesia,” jakarta smeru res. inst., 2020. [8] r. chetty, j. friedman, n. hendren, and m. stepner, “how did covid-19 and stabilization policies affect spending and employment? a new real-time economic tracker based on private sinergi, volume 11 number 1 maret 2021 sambari radianto1), tri cicik wijayanti 2), naurah aurelia3) 27 challenge on regional economic impact during covid-19 outbreaks sector data,” national bureau of economic research, 2020. [9] badan pusat statistik, “jumlah korban yang diakibatkan bencana alam menurut provinsi, 2019,” sosial dan kesejahteraan rakyat. p. 1, 2020. [10] bps, “penduduk, laju pertumbuhan penduduk, distribusi persentase penduduk, kepadatan penduduk, dan rasio jenis kelamin penduduk menurut provinsi, 2019,” bps (badan pusat statistik). 2019. [11] e. budiyanti, “dampak virus corona terhadap sektor perdagangan dan pariwisata indonesia,” kaji. bid. ekon. dan kebijak. publik, vol. xii, no. 4, pp. 19–24, 2020. 18 anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) maggot bsf cultivation development strategy as economic resilience during pandemic maggot bsf cultivation development strategy as economic resilience during pandemic anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) 1) departmen of management, universutas maarif hasyim latif, sidoarjo, indonesia 2) departmen of management, universutas maarif hasyim latif, sidoarjo, indonesia 3) departmen of management, doctorate program, universutas dr. soetomo, surabaya, indonesia 4) department of islamic broadcast communication, institute agama islam hamzanwadi nw, ntb, indonesia 5) department of islamic broadcast communication, institut agama islam darullughah wadda'wah, pasuruan, indonesia 6) departmen of management, universutas dr. soetomo, surabaya, indonesia 2)universitas maarif hasyim latif, sidoarjo, indonesia e-mail: wulan_purnamasari@dosen.umaha.ac.id abstract. this research is motivated by the large amount of waste that accumulates in many areas in indonesia, especially household organic waste. the accumulated amount of waste is caused by the processing that is still not optimal to reduce the capacity of the amount of waste. mr. bilal's maggot cultivation business is a proven effective way to reduce the capacity of household organic waste in his village. the purpose of this study was to study the profile of maggot cultivation in karangpilang district, to analyze the prospects for the development of maggot cultivation during the covid pandemic, to determine a cultivation development strategy that is in accordance with the conditions and potential in the city of surabaya. the population used in this study were all maggot cultivators in the city of surabaya. the sample in this study was maggot bsf cultivator mr. bilal in kedurus village, karangpilang sub-district, surabaya. the sampling method is the accidental sampling technique. the method used in this research is descriptive qualitative method. data analysis using descriptive-qualitative analysis, without using quantitative techniques. the price of maggot is set according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit. marketing strategy, introduce more to consumers in order to increase income or more profit, provide the best service, implement a selling system by upholding honesty when explaining maggot with honest conditions, with this attitude consumers will be happy and like this place of cultivation. keywords: development strategy, maggot cultivation, organic waste i. introduction garbage is a very serious environmental problem faced by the people of indonesia and the world. garbage is a familiar name in society, where every region throughout indonesia has a waste bank that has not been processed as much as possible to reduce the capacity of the amount of waste. especially household organic waste, markets, and the like. moreover, garbage dumped in rivers can clog waterways, and make rivers unclean. organic waste or waste that easily decomposes often causes unpleasant odors and causes disease. in response to these conditions, it is necessary to make efforts to utilize organic waste which also has high economic value. one of the efforts offered is to use black soldier flies (bsf) or hermetiaillucens. maggot cultivation is used as a source of animal feed, now it is not foreign. the maggot or larvae of the black soldier fly (hermetiaillicens) is an alternative animal feed that meets the requirements as a source of high protein. murtidjo (2001) states that foodstuffs containing crude protein of more than 19% are classified as protein sources. the black soldier fly, black soldier fly (hermetiaillucens) is almost all over the world. like other flies, army flies eat anything that has been consumed by humans, such as leftovers, garbage, fermented food, vegetables, fruits, meat and even bones (soft), even eating animal carcasses. these fly larvae (maggots) are classified as "immune" and can live in quite extreme environments, such as in media/garbage that contains a lot of salt, alcohol, acids and ammonia. they live "in a warm atmosphere", and if the ambient air is very cold or lacks food, then the maggots do not die but they become numb or idle or inactive waiting until the weather warms up again or food is available again. they can also live in water or in the presence of alcohol. bsf insects have several characters including: having the ability to reduce organic waste, having the ability to live within a fairly high ph tolerance, not acting as a disease gene, having a fairly high protein content (4050%), having a long life as larvae ( ± 4 weeks), and easy to cultivate. the development of maggot cultivation in karangpilang district has not been so advanced. for this reason, there needs to be a research study on the technical development of maggot cultivation in karangpilang district, surabaya city, east java province through determining cultivation development strategies that are in accordance with the potential and conditions of the development area. the development of maggot cultivation will be carried out optimally if the potential for maggot cultivation in an area can be well known. furthermore, the potential for cultivation that already exists in an area needs to be developed in accordance with the carrying capacity of the environment. this study aims to analyze the prospects for the development of maggot cultivation in karangpilang sub-district and determine the strategy for developing maggot cultivation in karangpilang district. ii. research methods the method used in this study is a descriptive qualitative method, namely the data collected in the form of words, pictures, not numbers. qualitative research is a research procedure that produces descriptive data in the form of written or spoken words from people and observed behavior. meanwhile, descriptive research is a form of research aimed at describing or describing existing phenomena, both natural phenomena and human engineering. the purpose of descriptive research is to make a systematic, factual, and accurate description of the facts and characteristics of a particular population or area. this study was used to find out how the strategy for developing msmes for maggot bsf cultivation during the covid-19 pandemic. iii. results and discussion 1. development strategy for the quality of mr. bilal's maggot cultivation a. cultivation media care the condition of the cultivation media was checked once every day for 14 days. the conditions of the cultivation media were observed from humidity to water content. if needed, the addition of water and maggot feed sources can be done. in addition, the condition of the mosquito net that surrounds the media also needs to be checked and ensured that there are no holes that can cause black soldier flies to leave the cultivation area. b. harvest the harvesting process for maggot cultivation is carried out at least after two weeks of maggot cultivation. at 2 weeks the black soldier fly eggs had hatched and entered the second instar larval stage which grew about 10 mm before releasing the skin into third instar larvae. third instar larvae grow between 15 mm and 20 mm before entering the prepupa stage. cultivation carried out with 100 kg of culture media raw materials, can produce larvae as much as `60 -70kg. keep in mind the maggot life cycle before becoming a fly is 37 days. the harvesting process is carried out by separating the maggot from the growth medium. after being separated from the growth medium, the maggot is ready to be given to animal feed. some of the cultivated maggots are left to turn into adult flies. adult flies will be used as broodstock in the next cultivation. this is so that the cultivation of this maggot can be sustainable and does not depend on the black soldier fly brood from outside. the maggot harvest period is at the age of 15 21 days when the maggots are quite large and still soft, after 21 days the maggots have started the prepupa phase and the pupae are slightly brown in color and if given to livestock the texture is rather hard. for the protein content, the maggots are still white than those that have entered the prepupa or pupa phase. maggot eggs to become prepupa 26 days, from prepupa phase to pupa phase 7 days. from pupa to fly also takes 7 days. so in one maggot cycle from egg to fly again it takes approximately 1.5 months. when male flies have mate, they will die or become carrion, female flies after laying eggs will also die or become carrion. to get bsf flies, mr. bilal provides bait by mixing pineapple juice without sugar without milk with rice and dedek because bsf flies like sour and fermented smells. that way the bsf flies will come and enter the bsf parent cage that has been baited. c. mr. bilal's maggot cultivation quality development strategy 1. provide adequate and regularly available feed in order to grow and enter the next phase. 2. maggot is placed in a shady environment away from sunlight. 3. provide fresh organic waste feed with high protein intake so as to get good maggot yields that make consumers satisfied with the quality of maggot. 2. pricing strategy for mr. bilal's maggot cultivation in the maggot cultivation process, equipment and raw materials are required. equipment costs are costs incurred for the cultivation process, the cost of raw materials is needed to prepare media for laying black soldier flies (hermetiaillucens) and where maggots develop. the price of maggot is determined according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit. table i maggot price table species price (idr) maggot eggs 15.000/gms maggot 25.000/kilos prepupa & pupa 250.000/ilos 3. marketing strategy for mr. bilal's maggot cultivation during the covid pandemic, as it is currently affecting the marketing of maggot, income has decreased. so he thought of a strategy on how to keep his business running. a. join many farmer groups. in offering his maggot products, he offersmaggot to farmer groups. because he understands that by having regular customers or partners, a business can definitely grow. currently he is joining 4 farmer groups. b. offering maggot to anglers. mr. bilal offered his maggot to anglers by bringing samples of maggot. he marketed maggot by visiting friends who have a hobby of fishing. because according to mr. bilal, the anglers do not know the pandemic. so his target is not only the farmer groups, but also the fishing hobbyists. c. marketing maggot through online media. not only word to word, mr. bilal also has a website and instagram to promote his products, who is responsible for marketing maggot through online media, namely his own wife. so they divided the tasks for the wife's online kitchen and the offline kitchen including the cage section for bilal's mr., bilal's mr.'s section, bilal's mr.'s section, the wife's online kitchen and the offline kitchen including the cage section for bilal's online media, namely his own wife. so they divided the tasks for the online kitchen for the wife's section and the offline kitchen including the cage section for mr. bilal's. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 19anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) maggot bsf cultivation development strategy as economic resilience during pandemic maggot bsf cultivation development strategy as economic resilience during pandemic anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) 1) departmen of management, universutas maarif hasyim latif, sidoarjo, indonesia 2) departmen of management, universutas maarif hasyim latif, sidoarjo, indonesia 3) departmen of management, doctorate program, universutas dr. soetomo, surabaya, indonesia 4) department of islamic broadcast communication, institute agama islam hamzanwadi nw, ntb, indonesia 5) department of islamic broadcast communication, institut agama islam darullughah wadda'wah, pasuruan, indonesia 6) departmen of management, universutas dr. soetomo, surabaya, indonesia 2)universitas maarif hasyim latif, sidoarjo, indonesia e-mail: wulan_purnamasari@dosen.umaha.ac.id abstract. this research is motivated by the large amount of waste that accumulates in many areas in indonesia, especially household organic waste. the accumulated amount of waste is caused by the processing that is still not optimal to reduce the capacity of the amount of waste. mr. bilal's maggot cultivation business is a proven effective way to reduce the capacity of household organic waste in his village. the purpose of this study was to study the profile of maggot cultivation in karangpilang district, to analyze the prospects for the development of maggot cultivation during the covid pandemic, to determine a cultivation development strategy that is in accordance with the conditions and potential in the city of surabaya. the population used in this study were all maggot cultivators in the city of surabaya. the sample in this study was maggot bsf cultivator mr. bilal in kedurus village, karangpilang sub-district, surabaya. the sampling method is the accidental sampling technique. the method used in this research is descriptive qualitative method. data analysis using descriptive-qualitative analysis, without using quantitative techniques. the price of maggot is set according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit. marketing strategy, introduce more to consumers in order to increase income or more profit, provide the best service, implement a selling system by upholding honesty when explaining maggot with honest conditions, with this attitude consumers will be happy and like this place of cultivation. keywords: development strategy, maggot cultivation, organic waste i. introduction garbage is a very serious environmental problem faced by the people of indonesia and the world. garbage is a familiar name in society, where every region throughout indonesia has a waste bank that has not been processed as much as possible to reduce the capacity of the amount of waste. especially household organic waste, markets, and the like. moreover, garbage dumped in rivers can clog waterways, and make rivers unclean. organic waste or waste that easily decomposes often causes unpleasant odors and causes disease. in response to these conditions, it is necessary to make efforts to utilize organic waste which also has high economic value. one of the efforts offered is to use black soldier flies (bsf) or hermetiaillucens. maggot cultivation is used as a source of animal feed, now it is not foreign. the maggot or larvae of the black soldier fly (hermetiaillicens) is an alternative animal feed that meets the requirements as a source of high protein. murtidjo (2001) states that foodstuffs containing crude protein of more than 19% are classified as protein sources. the black soldier fly, black soldier fly (hermetiaillucens) is almost all over the world. like other flies, army flies eat anything that has been consumed by humans, such as leftovers, garbage, fermented food, vegetables, fruits, meat and even bones (soft), even eating animal carcasses. these fly larvae (maggots) are classified as "immune" and can live in quite extreme environments, such as in media/garbage that contains a lot of salt, alcohol, acids and ammonia. they live "in a warm atmosphere", and if the ambient air is very cold or lacks food, then the maggots do not die but they become numb or idle or inactive waiting until the weather warms up again or food is available again. they can also live in water or in the presence of alcohol. bsf insects have several characters including: having the ability to reduce organic waste, having the ability to live within a fairly high ph tolerance, not acting as a disease gene, having a fairly high protein content (4050%), having a long life as larvae ( ± 4 weeks), and easy to cultivate. the development of maggot cultivation in karangpilang district has not been so advanced. for this reason, there needs to be a research study on the technical development of maggot cultivation in karangpilang district, surabaya city, east java province through determining cultivation development strategies that are in accordance with the potential and conditions of the development area. the development of maggot cultivation will be carried out optimally if the potential for maggot cultivation in an area can be well known. furthermore, the potential for cultivation that already exists in an area needs to be developed in accordance with the carrying capacity of the environment. this study aims to analyze the prospects for the development of maggot cultivation in karangpilang sub-district and determine the strategy for developing maggot cultivation in karangpilang district. ii. research methods the method used in this study is a descriptive qualitative method, namely the data collected in the form of words, pictures, not numbers. qualitative research is a research procedure that produces descriptive data in the form of written or spoken words from people and observed behavior. meanwhile, descriptive research is a form of research aimed at describing or describing existing phenomena, both natural phenomena and human engineering. the purpose of descriptive research is to make a systematic, factual, and accurate description of the facts and characteristics of a particular population or area. this study was used to find out how the strategy for developing msmes for maggot bsf cultivation during the covid-19 pandemic. iii. results and discussion 1. development strategy for the quality of mr. bilal's maggot cultivation a. cultivation media care the condition of the cultivation media was checked once every day for 14 days. the conditions of the cultivation media were observed from humidity to water content. if needed, the addition of water and maggot feed sources can be done. in addition, the condition of the mosquito net that surrounds the media also needs to be checked and ensured that there are no holes that can cause black soldier flies to leave the cultivation area. b. harvest the harvesting process for maggot cultivation is carried out at least after two weeks of maggot cultivation. at 2 weeks the black soldier fly eggs had hatched and entered the second instar larval stage which grew about 10 mm before releasing the skin into third instar larvae. third instar larvae grow between 15 mm and 20 mm before entering the prepupa stage. cultivation carried out with 100 kg of culture media raw materials, can produce larvae as much as `60 -70kg. keep in mind the maggot life cycle before becoming a fly is 37 days. the harvesting process is carried out by separating the maggot from the growth medium. after being separated from the growth medium, the maggot is ready to be given to animal feed. some of the cultivated maggots are left to turn into adult flies. adult flies will be used as broodstock in the next cultivation. this is so that the cultivation of this maggot can be sustainable and does not depend on the black soldier fly brood from outside. the maggot harvest period is at the age of 15 21 days when the maggots are quite large and still soft, after 21 days the maggots have started the prepupa phase and the pupae are slightly brown in color and if given to livestock the texture is rather hard. for the protein content, the maggots are still white than those that have entered the prepupa or pupa phase. maggot eggs to become prepupa 26 days, from prepupa phase to pupa phase 7 days. from pupa to fly also takes 7 days. so in one maggot cycle from egg to fly again it takes approximately 1.5 months. when male flies have mate, they will die or become carrion, female flies after laying eggs will also die or become carrion. to get bsf flies, mr. bilal provides bait by mixing pineapple juice without sugar without milk with rice and dedek because bsf flies like sour and fermented smells. that way the bsf flies will come and enter the bsf parent cage that has been baited. c. mr. bilal's maggot cultivation quality development strategy 1. provide adequate and regularly available feed in order to grow and enter the next phase. 2. maggot is placed in a shady environment away from sunlight. 3. provide fresh organic waste feed with high protein intake so as to get good maggot yields that make consumers satisfied with the quality of maggot. 2. pricing strategy for mr. bilal's maggot cultivation in the maggot cultivation process, equipment and raw materials are required. equipment costs are costs incurred for the cultivation process, the cost of raw materials is needed to prepare media for laying black soldier flies (hermetiaillucens) and where maggots develop. the price of maggot is determined according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit. table i maggot price table species price (idr) maggot eggs 15.000/gms maggot 25.000/kilos prepupa & pupa 250.000/ilos 3. marketing strategy for mr. bilal's maggot cultivation during the covid pandemic, as it is currently affecting the marketing of maggot, income has decreased. so he thought of a strategy on how to keep his business running. a. join many farmer groups. in offering his maggot products, he offersmaggot to farmer groups. because he understands that by having regular customers or partners, a business can definitely grow. currently he is joining 4 farmer groups. b. offering maggot to anglers. mr. bilal offered his maggot to anglers by bringing samples of maggot. he marketed maggot by visiting friends who have a hobby of fishing. because according to mr. bilal, the anglers do not know the pandemic. so his target is not only the farmer groups, but also the fishing hobbyists. c. marketing maggot through online media. not only word to word, mr. bilal also has a website and instagram to promote his products, who is responsible for marketing maggot through online media, namely his own wife. so they divided the tasks for the wife's online kitchen and the offline kitchen including the cage section for bilal's mr., bilal's mr.'s section, bilal's mr.'s section, the wife's online kitchen and the offline kitchen including the cage section for bilal's online media, namely his own wife. so they divided the tasks for the online kitchen for the wife's section and the offline kitchen including the cage section for mr. bilal's. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 20 anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) maggot bsf cultivation development strategy as economic resilience during pandemic fig. 1. mr. bilal's maggot cultivation area the space provided must be flexible because this cultivation business can use vacant or unused land as a place of cultivation. this is due to the lack of criteria in selecting a place to cultivate bsf, namely the presence of a place exposed to direct sunlight. this criterion only applies to adult flies, while larvae and pupae are not required at all. fig. 2. bsf fly cage the cage is a need for every farm animal, the function of the cage is as a place for the black soldier fly to produce eggs as bsf maggot seeds. the cage is also a place for feeding maggot in the form of organic waste. the size of the cage is 150 x 150 cm. with the size above, it can accommodate as many as tens of thousands of larvae. fig. 3 egg hatching media the media for hatching bsf eggs is made of plywood or wood. wood measuring 40 x 7 x 1 cm that has been stacked into four, five, or six is given a matchstick in between and tied with rubber at the end so that it leaves a small gap. this small gap will be used by bsf to lay its eggs. separate the hatching and rearing media in the cage. this division is very meaningful because if they unite, the eggs will be easily damaged by the larvae. fig. 4 changes in larvae size the larval phase which is still yellowish white lasts approximately 12 days. next, the larvae begin to turn brown and darker. the prepupa phase occurs from the 19th day and the pupa phase is reached on the 24th day. changes in body size of larvae from instar 1 to pupa can be seen in figure 1 instar larvae that have just hatched generally measuring 2 mm, then measuring 5 mm before the skin shedding process started. the second instar larvae grow to 10 mm before being ready to shed their skin to develop into third instar larvae. prior to the prepupa stage, the third instar larvae grow to 15 mm to 20 mm. in maggot cultivation, the media that is a place to grow must contain sufficient nutrients. nutrient is one of the most influential factors on the biochemical composition of natural feed. the nutrients contained in the cultivation media greatly affect the productivity value of the quality of the maggot produced. in this study, the nutrients provided were found in the cultivation media consisting of tofu pulp and coconut pulp mixed together. fig. 5 feeding process provide fresh organic waste feed with high protein intake so as to get good maggot yields that make consumers satisfied with the quality of maggot iv. conclusions 1. product quality development strategy maggots are placed in a shady environment away from sunlight and fed with fresh organic waste in sufficient quantities and regularly available. so that they get good maggot yields that make consumers satisfied with the quality of maggot. 2. pricing strategy the price of maggot is determined according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit 3. marketing strategy introduce more to consumers to increase income or more profit, provide the best service, implement a selling system by upholding honesty when explaining maggot in an honest manner, with this attitude consumers will be happy and like this place of cultivation. we would like to thank maarifhasyimlatif university and mr. bilal who has helped us in completing our research. references [1] fatmasari, lisa. 2017. tingkat densitaspopulasi, bobot, dan panjang maggot (hermetiaillucens) pada media yang berbeda. lampung. [2] febra, robiyanto. 2004. akuntansipraktisuntuk usaha kecil danmenengahstudi nusa, semarang. [3] lexy, moleong. 2002. metodepenelitiankualitatif (bandung: pt. remajarosdakarya, [4] mulyadi, nitisusastro. 2010. kewirausahaan&manajemen usaha kecil, alfabeta, bandung. [5] putriwahyuni arnold, pinondangnainggolan, & darwin damanik. (2020). analisiskelayakan usaha danstrategipengembanganindustri kecil tempe di kelurahansetia negara kecamatansiantarsitalasari. jurnalekuilnomi, 2(1), 29–39. https://doi.org/10.36985/ekuilnomi.v2i1.349 [6] rogério dos santos alves; alex soares de souza, et all. (2014). hakikatpengembangan. igarss 2014, 1, 1–5. [7] sipayung, pretty yuniarti elisabeth. 2015. “pemanfaatan larva black soldier fly (hermetiaillucens) sebagai salah satuteknologireduksisampah di daerah perkotaan”. surabaya [8] sugiyono, 2006. metodepenelitianpendidikan; pendekatankuantitatifdankualitatifdan r&d, (bandung: alfabeta). [9] tejo, nurseto. 2004. strategimenumbuhkanwirausaha kecil menengah yang tangguh‖, dalamjurnalekonomi&pendidikan vol.1 no.1 februari [10] tedjotripomodanudan. 2005. manajemenstrategi, rekayasasains, bandung. [11] viergina, noveraviolistarin. 2020. pengaruhsampah, buah dan sayurterhadapkandungan protein maggot tentarahitam (hermetiaillucens). indralaya. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 21anita mauliya hanim1), wulan purnamasari2), m adhi prasnowo3), e risky wulandari4), muhajir sulthonul aziz5) and meithiana indrasari6) maggot bsf cultivation development strategy as economic resilience during pandemic fig. 1. mr. bilal's maggot cultivation area the space provided must be flexible because this cultivation business can use vacant or unused land as a place of cultivation. this is due to the lack of criteria in selecting a place to cultivate bsf, namely the presence of a place exposed to direct sunlight. this criterion only applies to adult flies, while larvae and pupae are not required at all. fig. 2. bsf fly cage the cage is a need for every farm animal, the function of the cage is as a place for the black soldier fly to produce eggs as bsf maggot seeds. the cage is also a place for feeding maggot in the form of organic waste. the size of the cage is 150 x 150 cm. with the size above, it can accommodate as many as tens of thousands of larvae. fig. 3 egg hatching media the media for hatching bsf eggs is made of plywood or wood. wood measuring 40 x 7 x 1 cm that has been stacked into four, five, or six is given a matchstick in between and tied with rubber at the end so that it leaves a small gap. this small gap will be used by bsf to lay its eggs. separate the hatching and rearing media in the cage. this division is very meaningful because if they unite, the eggs will be easily damaged by the larvae. fig. 4 changes in larvae size the larval phase which is still yellowish white lasts approximately 12 days. next, the larvae begin to turn brown and darker. the prepupa phase occurs from the 19th day and the pupa phase is reached on the 24th day. changes in body size of larvae from instar 1 to pupa can be seen in figure 1 instar larvae that have just hatched generally measuring 2 mm, then measuring 5 mm before the skin shedding process started. the second instar larvae grow to 10 mm before being ready to shed their skin to develop into third instar larvae. prior to the prepupa stage, the third instar larvae grow to 15 mm to 20 mm. in maggot cultivation, the media that is a place to grow must contain sufficient nutrients. nutrient is one of the most influential factors on the biochemical composition of natural feed. the nutrients contained in the cultivation media greatly affect the productivity value of the quality of the maggot produced. in this study, the nutrients provided were found in the cultivation media consisting of tofu pulp and coconut pulp mixed together. fig. 5 feeding process provide fresh organic waste feed with high protein intake so as to get good maggot yields that make consumers satisfied with the quality of maggot iv. conclusions 1. product quality development strategy maggots are placed in a shady environment away from sunlight and fed with fresh organic waste in sufficient quantities and regularly available. so that they get good maggot yields that make consumers satisfied with the quality of maggot. 2. pricing strategy the price of maggot is determined according to the expenses that have been incurred during the production process and add a percentage to the profit to get a profit 3. marketing strategy introduce more to consumers to increase income or more profit, provide the best service, implement a selling system by upholding honesty when explaining maggot in an honest manner, with this attitude consumers will be happy and like this place of cultivation. we would like to thank maarifhasyimlatif university and mr. bilal who has helped us in completing our research. references [1] fatmasari, lisa. 2017. tingkat densitaspopulasi, bobot, dan panjang maggot (hermetiaillucens) pada media yang berbeda. lampung. [2] febra, robiyanto. 2004. akuntansipraktisuntuk usaha kecil danmenengahstudi nusa, semarang. [3] lexy, moleong. 2002. metodepenelitiankualitatif (bandung: pt. remajarosdakarya, [4] mulyadi, nitisusastro. 2010. kewirausahaan&manajemen usaha kecil, alfabeta, bandung. [5] putriwahyuni arnold, pinondangnainggolan, & darwin damanik. (2020). analisiskelayakan usaha danstrategipengembanganindustri kecil tempe di kelurahansetia negara kecamatansiantarsitalasari. jurnalekuilnomi, 2(1), 29–39. https://doi.org/10.36985/ekuilnomi.v2i1.349 [6] rogério dos santos alves; alex soares de souza, et all. (2014). hakikatpengembangan. igarss 2014, 1, 1–5. [7] sipayung, pretty yuniarti elisabeth. 2015. “pemanfaatan larva black soldier fly (hermetiaillucens) sebagai salah satuteknologireduksisampah di daerah perkotaan”. surabaya [8] sugiyono, 2006. metodepenelitianpendidikan; pendekatankuantitatifdankualitatifdan r&d, (bandung: alfabeta). [9] tejo, nurseto. 2004. strategimenumbuhkanwirausaha kecil menengah yang tangguh‖, dalamjurnalekonomi&pendidikan vol.1 no.1 februari [10] tedjotripomodanudan. 2005. manajemenstrategi, rekayasasains, bandung. [11] viergina, noveraviolistarin. 2020. pengaruhsampah, buah dan sayurterhadapkandungan protein maggot tentarahitam (hermetiaillucens). indralaya. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 75 the differences between management and leadership moh. barid n izarudin wajdi stai m iftahul ula nganjuk e-mail: baridnizar84@gmail.com (diterima : 10-dese mber-2016; direvisi: 12-januari-2017; d ipublikasikan : 01-maret-2017) abstrac t. there a re a diffe rences between management and leadership. the aim of this revie w is to determine the difference s between management and leadership. the result of this review showed that management and leadership are two very distinct functions. although, management and leadership do share many simila r duties which consist of working with people and influencing others to achieve goals. management skills are used to plan, build, and direct organizational systems to accompli sh missions and goals, while leadership skills are used to focus on a potential change by establishing direction, aligning people , and motivating and inspiring. leadership and management must go hand in hand. they are not the same thing. but they are necessarily linked, and comp le mentary. any effort to separate the two is like ly to cause more proble ms than it solves . keywords : the diffe rences, leadership, management introduction management and leadership are important for the delivery of good services. although the two are similar in some respects, they may involve different types of outlook, skills, and behavior. good managers should strive to be good leaders and good leaders, need management skills to be effective. leaders will have a vision of what can be achieved and then communicate this to others and evolve strategies for realizing the vision. they motivate people and are able to negotiate for resources and other support to achieve their goals. managers ensure that the available resources are well organized and applied to produce the best results. in the resource constrained and difficult environments of many low – to middleincome countries, a manager must also be a leader to achieve optimum results. one may assume that all managers are leaders, but that is not correct since some of the managers do not exercise leadership, and some people lead without having any management positions. therefore, there is a continuing controversy about the difference between leaders and managers. some scholars argue that although ma nagement and leadership overlap, the two activities are not synonymous (bass, 2010). furthermore, the degree of overlap is a point of disagreement (yukl, 1989). in fact, some individual see them as extreme opposites, and they believe that good leader cannot be a good manager and the opposite is true (ricketts, 2009). leadership and management entail a unique set of activities or functions. while leaders and managers share some similarities because they both influence others by using specific powers to achieve certain goals, there are also some prominent differences (northouse, 2007). while, managers maintain a smoothly functioning workplace, leaders test the current position and encourage new functions, so they are looking for long-term goals (yukl, 1989). in today‘s vigorous workplace, organizations need both effective sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 76 management, and effective leadership for optimal success (kotterman, 2006). this review article will address and compare fundamental definitions of leadership and management, the specific types of skills for the manager and the leader, and discuss the similarities and differences between management and leadership. methodology of analysis an extensive literature search was conducted using the following electronic databases: ebsco, embase and google scholar. the search aimed to identify and locate all previous articles which discussed the differences between the management and leadership. there was no time limitation; however the research was limited to only articles written in english. the title should have ―management‖ and ―leadership‖ terms within it. the keywords and phrases used in the research include (leadership) and (management), or (differences), or (similarities). original and peer reviewed articles were considered for this review. the search identified 231,000 articles focusing on leadership and management. a total of 25,700 articles remained after eliminating those that were duplicated on google scholar and across the three databases. b. review of literature katz defined the management as exercising direction of a group or organization through executive, administrative, and supervisory positions (katz, 1955). katz thought that management responsibilities are usually tasked-oriented, and it involves developing staff, mentoring persons with high potential, and resolving conflicts while maintaining ethics and discipline (katz, 1955). kappa states that the aim from a good management is to provide services to the community in an efficient and sustainable manner (kappa, 1991). moreover, kotter defined the management as a job which takes care of planning, organizing, budgeting, coordinating and monitoring activities for group or organization (kotter, 2001). northouse defined the management as a process by which definite set objectives are achieved through the efficient use of resources (northouse, 2007). thus, management in general is a process that is used to achieve organizational goals. certain conditions are important for creating good management, including: managers and team members need to be selected on merit; managers need to earn the respect of their staff , patients, and supervisors; managers need to have the knowledge, skills and understanding of the role, tasks and purpose of the services they deliver; basic support systems function well; clear staff administration rules and regulations; well planned and timely delivered supplies, equipment and drugs; clear and transparent fi nancial processes; and well planned and monitored activities. sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 77 managers focus on formal directing and controlling of their assistants, resources, structures, and systems (kotter, 2001). managers aim to reach short term goals, avoid any risks, and establish standardization to improve efficiency (kotterman, 2006). the employees follow a manager‘s direction in exchange for being paid a salary, known as a transactional style (kotter, 2001).research shows that being an effective manager depends upon three special skill sets: technical, human and conceptual. the technical skill refers to the proficiency in a specific type of work. this may include competencies within a specialized field, or the ability to use appropriate tools and techniques. human skill refers tothe ability to work with people, which allow a manager to assist group members to complete a task. conceptual skill refers to the ability to work with ideas (katz, 1955). in addition, an effective manager needs to have specific qualities like: good communication; organizational; negotiation; and delegation skills (kappa, 1991). leadership leadership is a complex, multidimensiona l phenomena (depree, 1989). it has been defined as: a behaviour; a style; a skill; a process; a responsibility; an experience; a function of management; a position o f authority; an influencing relationship; a characteristic; and an ability (northouse, 2007). john maxwell defined leadership by influence (maxwell, 1998). kotter (1990) stated that ―leadership is the capacity for collective action to vitalize‖. robert greenleaf defined effective leadership as people who serve others, while they follow them (bennis and nanus, 1997). moreover, peter drucker defined a leader is someone who has followers (drucker, 1999). however, some theorists believe that leadership is a form of the social influence processes (house and aditya, 1997). although there are a variety of leadership definitions, the majority of definitions focused on two components which are: the process of influencing a group of individuals to obtain a common goal; and to develop a vision. leaders focus on motivation, and inspiratio n (kotter, 1990). leaders aim to create passion to follow their vision, to reach long term goals, take risks to accomplish common goals, and challenge the current status quo (bennis and nanus, 1997). the leader keeps an open eye on his followers‘ benefits, so people follow the leader voluntarily, and the leader directs the follower by using a transformational style (bass, 1990). leaders should have some critical qualities such as integrity; vision; toughness; decisive; trust; commitment; selflessness, creativity; risk taking; toughness; communication ability, and visibility (capowski, 1994). moreover, leaders should have charisma; a sense of mission; ability to influence people in a positive environment; and ability to solve problems (house, 1977). in addition, research shows that being a n effective leader depends upon common behaviours and characteristics like: confidence; service mentality; good coaching skills; reliability; expertise; responsibility; good listening skills; sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 78 being visionary; realistic; good sense of priorities; honesty; willingness to share; strong self esteem; technical or contextual, and recognition (bennis and nanus, 1997). management vs lead ership leadership and management overlap, but they are not the same(kotterman, 2006). both leadership and management involve influence, working with people, and working to achieve common goals(the guardian, 2013).however, the fields of leadership and management considered very different(kotterman, 2006). katz asserts that leadership is a multi-directional influence relation, while management is a unidirectional authority relationship (katz, 1955). in 1977, abraham zaleznik wrote the first scholarly and landmark article about the difference between leaders and managers (zaleznik, 1977). zaleznik mentioned that the organization needs both effective managers and effective leaders in order to reach its goals, but he argues that managers and leaders have different contributions (zaleznik, 1977). whereas leaders promoter change, new approaches, and work to understand people‘s beliefs to gain their commitment, managers promoter stability, exercise authority, and work to get things accomplished. therefore, management and leadership need different types of people(zaleznik, 1977). in 1983, watson stated that managers take care of structure and system, but leaders focus on the communication, motivation, and shared goals. in addition, watson mentioned that 7s strategy which include; strategy, structure, systems, shared values, skills, and style; is more effective for leaders comparing to managers. in 1985, bryman added that leadership is about strategic motivation. bennis and nannus (1985) briefly describe the differences between the leaders and managers in one sentence: "leaders do the right things; managers do things right." (p. 33).moreover, in 1989 bennis stated that ―to survive in the twenty-first century, we are going to need a new generation of leaders both leadership and management involve influence, working with people, and working to achieve common goals(the guardian, 2013).however, the fields of leadership and management considered very different(kotterman, 2006). katz asserts that leadership is a multi-directional influence relation, while management is a unidirectional authority relationship (katz, 1955). in 1977, abraham zaleznik wrote the first scholarly and landmark article about the difference between leaders and managers (zaleznik, 1977). zaleznik mentioned that the organizationneeds both effective managers and effective leaders in order to reach its goals, but he argues that managers and leaders have different contributions (zaleznik, 1977). whereas leaders promoter change, new approaches, and work to understand people‘s beliefs to gain their commitment, managers sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 79 promoter stability, exercise authority, and work to get things accomplished. therefore, management and leadership need different types of people(zaleznik, 1977). in 1983, watson stated that managers take care of structure and system, but leaders focus on the communication, motivation, and shared goals. in addition, watson mentioned that 7s strategy which include; strategy, structure, systems, shared values, skills, and style; is more effective for leaders comparing to managers. in 1985, bryman added that leadership is about strategic motivation. bennis and nannus (1985) briefly describe the differencesbetween the leaders and managersin one sentence: "leaders do the right things; managers do things right." (p. 33).moreover, in 1989 bennis stated that ―to survive in the twenty-first century, we are going to need a new generation of leaders in 1987 john kotter, a professor of the harvard business school states that leadership goes beyond routine tasks to cope with change, whereas management is a regular formal responsibility to cope with routine complexity(kotter, 1987). kotter argues that leadership is a process that aims to develop a vision for the organization; align people with that vision; and motivate people to action through the basic need fulfilment(kotter, 1990). kotter stated that ―leadership is different from management, but not for the reason most people think. leadership isn‟t mystical and mysterious. it has nothing to do with having charisma or other exotic personality traits. it‟s not the province of a chosen few. nor is leadership necessarily better than management or a replacement for it: rather, leadership and management are two distinctive and complementary activitie s. both are necessary for success in an increasingly complex and volatile business environment (kotter, 1990).‖ in contrast, the management is a process that aims to control organization‘s formal functions (kotter, 2001). bernard bass (1990) in his book "bass and stogdill‘s handbook of leadership" states that "leaders manage and managers lead, but the two activities are not synonymous. management functions can potentially provide leadership; leadership activities can contribute to managing. nevertheless, some managers do not lead, and some leaders do not manage". (p. 383). other researchers mention that the leader is inspiring, innovative, flexible, courageous and independent, and has a soul, the passion and the creativity. while the manager is deliberate, authoritative, consulting, analytical, and stabilizing, and has the rational, the mind, and the persistence (capowski, 1994).in 1997, robert house states that management consists of controlling daily problems, and implementing leader's vision (house, 1977).furthermore, warren bennis a business professor at the university of southern california, (1997) sharps the difference by using 12 paired contrasts listed sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 80 in his book "learning to lead: a workbook on becoming a leader", (p. 9). in 2003, covey stated that the leader believes in vision and goals, has strong values, and works to make sure that his attendants are in the right direction. moreover, in 2004, ylitalo said that managers focus on structural, tools, and work related processes. nevertheless, leaders involved in the professional work, social and communicative aspects. in 2004, hull and ozeroff viewed leaders as good communicators because they spend more time with their followers. in addition, leaders are aware their team members professional strengths, weaknesses, emotional standings, their place in the organization which allow them to know how to motivate them. gosling and murphy (2004) think that the leaders work to make the organization ready to face any new change, and ensure the development of a sense of security. in 2007, warren bennis wrote that ―managers do things right, while leaders do the right things‖ (p. 12). in summary, while management and leadership share similar roles, it is important to make a distinction between those two functions. the p rimary mission of both leaders and managers is to control and influence other people. the most important difference between managers and leaders is their approach to achieve the goals. managers exercise their control through formal power, but leaders use their vision, and by inspiration, motivation to align their followers (the guardian, 2013). balancing the role of both management and leadership are critical to the organization‘ ssuccess. moreover, sometimes it is essential for managers to be successful to work as leaders (mullins, 2010) what is the difference between management and leadership? it is a question that has been asked more than once and also answered in different ways. the biggest difference between managers and leaders is the way they motivate the people who work or follow them, and this sets the tone for most other aspects of what they do. many people, by the way, are both. they have management jobs, but they realize that you cannot buy hearts, especially to follow them down a difficult path, and so act as leaders too. managers have subordinates by definition, managers have subordinates unless their title is honorary and given as a mark of seniority, in which case the title is a misnomer and their power over others is other than formal authority. authoritarian, transactional style managers have a position of authority vested in them by the company, and their subordinates work for them and largely do as they are told. management style is transactional, in that the manager tells the subordinate what to do, and the subordinate does this not because they are a blind robot, but because they have been promised a reward (at minimum their salary) for doing so. sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 81 work focus managers are paid to get things done (they are subordinates too), often within tight constraints of time and mo ney. they thus naturally pass on this work focus to their subordinates. seek comfort an interesting research finding about managers is that they tend to come from stable home backgrounds and led relatively normal and comfortable lives. this leads them to be relatively risk-averse and they will seek to avoid conflict where possible. in terms of people, they generally like to run a 'happy ship'. leaders have followe rs leaders do not have subordinates at least not when they are leading. many organizational leaders do have subordinates, but only because they are also managers. but when they want to lead, they have to give up formal authoritarian control, because to lead is to have followers, and following is always a voluntary activity. charis matic, transformational style telling people what to do does not inspire them to follow you. you have to appeal to them, showing how following you will lead them to their hearts' desire. they must want to follow you enough to stop what they are doing and perhaps walk into danger and situations that they would not normally consider risking. leaders with a stronger charisma find it easier to attract people to their cause. as a part of their persuasion they typically promise transformational benefits, such that their followers will not just receive extrinsic rewards but will somehow become better people. people focus although many leaders have a charismatic style to some extent, this does not require a loud personality. they are always good with people, and quiet styles that give credit to others (and takes blame on themselves) are very effective at creating the loyalty that great leaders engender. although leaders are good with people, this does not mean they are friendly with them. in order to keep the mystique of leadership, they often retain a degree of separation and aloofness. this does not mean that leaders do not pay attention to tasks in fact they are often very achievementfocused. what they do realize, however, is the importance of enthusing others to work towards their vision. seek risk in the same study that showed managers as risk-averse, leaders appeared as riskseeking, although they are not blind thrillseekers. when pursuing their vision, they consider it natural to encounter problems and hurdles that must be overcome along the way. they are thus comfortable with risk and will see routes that others avoid as potential opportunities for advantage and will happily break rules in order to get things done. sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 82 a surprising number of these leaders had some form of handicap in their lives which they had to overcome. some had traumatic childhoods, some had problems such as dyslexia, others were shorter than average. this perhaps taught them the independence of mind that is needed to go out on a limb and not worry about what others are thinking about you. this table summarizes the above (and more) and gives a sense of the differences between being a leader and being a manager. this is, of course, an illustrative characterization, and there is a whole spectrum between either ends of these scales along which each role can range. and many people lead and manage at the same time, and so may display a combination of behaviors. from my point view, i think that there are some individuals who have the capacity to fulfil the roles of both a leader and a manager. in my experience, leaders used to create the new changes, and managers used to apply them. however, new changes implantation is not easy, thus managers sometime resist to apply the new changes. in addition, i totally agree with those who ask for the balance between the manager‘s roles and the leader‘s roles, because it is vital to ensure the best outcomes. moreover, i believe that leadership becomes a must in every organization, especially in the business world; to cope with the rapid changes and different need for this century. conclusion every organization needs managers and leaders, and their roles should be viewed as complementary to one another. the optimal effectiveness of an organization can only reach if the organization has strong leadership and strong management. in today‘s dynamic workplace, organizations need leaders to cope with new challenges, and transform organizations in order to achieve a competitive advantage in the marketplace. in addition, organizations need managers to maintain a smoothly functioning workplace, and to utilize resources effectively. finally, a well balanced organization should have a mix of leaders and managers to succeed (kotterman, 2006). bibliogr aphy bass, b. (1985). leadership and performance beyond expectations. new york, free press, 1985. bass, b. (1990). bass and stogdill's handbook of leadership: theory, research & managerial applications, 3rd ed., the free press, new york, ny. bass, b. (2010). the bass handbook of leadership: theory, research, and managerial applications. new york, ny: simon & schuster. sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 83 bennis, w. g. and nanus, b. (1985), leaders: the strategies for taking charge, harper and row, new york. bennis, w. g. (1989). managing the dream: leadership in the 21st century. journal of organizational c hange management, 2(1), 6-10. bennis, w., and goldsmith, j. (1997). learning to lead: a workbook on becoming a leader, updated ed., addison-wesley, reading, ma. bennis, w. g. and nanus, b. (1997), leaders: the strategies for taking c harge, harpercollins, new york. bennis, w. g., and nanus, b. (2007). leaders: the strategies for taking charge. newyork, ny: harpercollins. bryman, a. (1986). leadership and organizations. uk : routledge & kegan paul. capowski, g., (1994), ―anatomy of a leader: where is the leader of tomorrow?‖, management review, vol. 83 issue 3, p. 1018. certo, s. c. (1997). modern management. usa: prentice hall. chapman, e. n. (1989). leadership. usa: prentice hall englewood c liffs. covey, s. r. (2003). principle centered leadership. new york: franklin covey company. depree, m. (1989). leadership is an art. new york: dell publishing. drucker, p f (1999) k nowledge-worker productivity: the biggest challenge. california management review, 41 (2), 79. gosling, j. & murphy, a. (2004). leading continuity. working paper: centre for leadership studies, university of exeter. hughes, h., ginnett, m & curphy, r. (1999). leadership.singapore: mc graw-hill. hull, t., & o zeroff, p. (2004). the transitioning from manager to leader. new york: harper and row. house, r. j. (1977). a 1976 theory of charismatic leadership. in: hunt, j. g., larson, l. l. (eds.): leadership: the cutting edge. carpondale, edwardsville, southern illinois universitypress, pp. 189-205. katz, r. l. (1955). skills of an effective administrator. harvard business review, 33(1), 33-42. kotterman, j., (2006), ―leadership vs management: what‘s the difference?‖, journal for quality & participation, vol. 29 issue 2, p.13-17 kotter, j. p. (1987), the leadership factor, the free press, new york, ny. kotter, j. p. (1990a). what leaders really do. harvard business review, 68, 103-111. kotter, j. p. (1990b). a force for change: how leadership differs from management. new york, ny: free press. kotter, j. p., (2001), ―what leaders really do?―, harvard business review, vol. 79 issue 11, p.85-96 lunenburg, f. c. (2011). leadership versus management: a key distinction—at least in theory. international journal of management, business, and administration, 14 (1), 1-4. sinergi , volume 7, nomor 2 maret 2017 moh. barid nizarudin wajdi the differences between management and leadership 84 maxwell, j c (1998) 21 irrefutable laws of leadership. nashville, tennesse: thomas nelson, inc. mullins, l. j. (2010). management and organizational behavior. uk : pearson education. northouse, p. (2007). leadership theory and practice. thousand oaks, ca: sage publications. phi theta kappa. (1991). creating then communicating your vision. in phi theta kappa, leadership development program. jackson, ms: phi theta kappa, p.2.2. rehnquist, w. h. (1995). time: it‘s yours to use or abuse. in phi theta kappa, leadership development program. jackson, ms: phi theta kappa, p. 5.5-5.8. the guardian. (2013). what's the difference between leadership and management?. available at http://careers.theguardian.com/differencebetweenleadershipmanagement watson, c. m. (1983). leadership, management and the seven keys. business horizons, march–april. ylitalo, j. (2004). leadership and management. department of industrial engineering and management, helsinki university of philosophy usa available at www.hcl.hut.fi yukl, g., 1989. managerial leadership: a revie w of theory and research. journal of management, vol. 15 issue 2, p. 251-290 zaleznik, a. (1977), ‗managers and leaders: are they different? harvard business review, may/june, p. 67-78. http://careers.theguardian.com/difference-between-leadership-management http://careers.theguardian.com/difference-between-leadership-management sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 30 model of customer value approach for improving satisfaction of the hospital patients arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) 1),2),3),4) narotama university of surabaya,indonesia 1) (arasybest@gmail.com) (submit : 03 august 2017; revised : 10 august 2017; accepted : 24 august 2017) abstract health service is highly demanded by public therefore it need to be balanced with the development of health care providers. the development of health care provider plays important role in determining service satisfaction. hospitals which are unable to provide excellent quality service will loss customer value trust which lead to customer dissatisfaction.the present study aims to examineimpact of service quality and confidence in the value of patientinrelated to patient satisfaction. the present study utilizes 100 patients of inpatient hospital clinic in surabaya as respondents in which the daya is analyzed by using sem analysis technique. the result shows that direct effect of service quality on satisfaction is smaller than the indirect effect of service quality on customer satisfaction through value. furthermore, direct effect of trust on satisfaction is smaller than indirect effect of trust on satisfaction through customer value. keywords: service quality, trust, customer value, customer satisfaction. 1. pendahuluan usaha jasa kesehatan menjadi salah satu media dalam mendukung kesehatan penduduk di dunia. dengan berdirinya berbagai macam jenis penyedia jasa kesehatan di mulai dari yang sederhana seperti klinik atau puskesmas hingga rumah sakit yang memiliki berbagai fasilitas penunjang kesehatan, diharapkan dapat membantu dalam memberikan pelayanan kesehatan yang maksimal kepada masyarakat.menurut data departemen kesehatan indonesia sejarah perkembangan rumah sakit di indonesia pertama sekali didirikan oleh voc tahun 1626 dan kemudian juga oleh tentara inggris pada zaman raffles terutama ditujukan untuk melayani anggota militer beserta keluarganya. hingga saat ini total rumah sakit publik dan privat yang telah berdiri di indonesia sebesar 2.460 (depkes.go.id).pelayanan kesehatan di rumah sakit terdiri atas kegiatan pelayanan rawat jalan, pelayanan rawat inap, dan pelayanan gawat darurat yang mencakup pelayanan medis dan penunjang medis. pelayanan kesehatan adalah pelayanan jasa, proses penjualan antara jasa dengan barang sangat berbeda.jika barang merupakan suatu obyek, benda atau alat, maka jasa adalah suatu perbuatan, kinerja (perfomance).seseorang tidak dapat menilai hasil dari jasa sebelum orang tersebut menikmatinya sendiri. mereka akan meyimpulkan kualitas jasa dari tempat (place), orang (people), peralatan (equipment), bahanbahan komunikasi (communication materials), simbol (symbol), dan harga (price) yang mereka amati.pemenuhan harapan pelanggan tentang kualitas pelayanan yang diterima merupakan salah satu kunci sukses dalam industri jasa pelayanan kesehatan.terdapat dua faktor utama yang mempengaruhi kualitas pelayanan yaitu expected service dan perceived service[1]. apabila pelayanan yang diterima atau dirasakan sesuai dengan yang diharapkan, maka kualitas yang dipersepsikan baik dan memuaskan.jika pelayanan yang diterima melampaui harapan pelanggan, maka kualitas pelayanan dipersepsikan sebagai kualitas yang ideal.sebaliknya, jika jasa yang diterima lebih rendah daripada yang diharapkan, maka kualitas dipersepsikan buruk. “hospitals that fail to understand the importance of delivering service quality and customer satisfaction may be inviting a possible loss of patients.” (rumah sakit yang gagal dalam memahami pentingnya memberikan kualitas pelayanan dan kepuasan pelanggan sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 31 mengundang kesempatan untuk kehilangan pelanggan)[2].kepercayaan merupakan alasan yang sangat dominan bagi pelanggan indonesia yang berobat. kepercayaan dapat diartikan sebagai kesediaan pasien mencari pelayanan medis, menyatakan informasi yang sensitif kepada dokter, menyerahkan pengobatan kepada dokter, dan kesediaan mengikuti rekomendasi dokter.[3] kepercayaan pelanggan adalah keoptimisan truster (pasien) dalam kondisi yang rentan dimana truster (pasien) mempercayai trustee (penyedia layanan kesehatan) dalam memberikan perhatian pada kepentingan truster (pasien).pelanggan yang puas memilikikesetiaan lebih lama, kurang sensitif terhadap harga, dan memberi komentar yang baik tentang perusahaan tersebut. namun studi lain menyatakan“patients have their rights and choice, and if they are not satisfied with their hospital, they have the opportunity to switch to another hospital.” (pasien memi liki hak dan piliha n, jika mereka tidak puas dengan pelayanan rumah sakit, mereka memiliki kesempatan untuk berpindah ke rumah sakit lain.”[4] tabel 1.jumlah kunjungan pasien rumah sakit surabaya sejak 2014 hingga agustus 2015 sumber: rumah sakit surabaya 2015 sikap, perilaku, tutur kata, keacuhan, keramahan petugas, serta kemudahan mendapatkan informasi, dan komunikasi menduduki peringkat yang tinggi dalam persepsi kepuasan pasien rumah sakit[5].hal ini sesuai dengan hasil pengamatan di rumah sakit surabaya, ketidakpuasan pelanggan yang paling sering dikemukakan dalam kaitannya dengan sikap dan perilaku petugas rumah sakit, antara lain: keterlambatan pelayanan dokter dan perawat, dokter sulit ditemui, dokter yang kurang komunikatif dan informatif, lamanya proses masuk rawat inap, aspek pelayanan rawat inap di rumah sakit, serta ketertiban dan kebersihan lingkungan rumah sakit.fenomena ini membuat penulis tertarik untuk melakukan penelitian dalam rangka membangun model pendekatan nilai pelanggan untuk meningkatkan kepuasan pasien rumah sakit. 2. kajian pustaka pelayanan (jasa) adalah tindakan atau perbuatan yang dapat ditawarkan oleh suatu pihak kepada pihak lain yang pada dasarnya bersifat intangible (tidak berwujud fisik) dan tidak menghasilkan kepemilikan sesuatu. pelayanan merupakan suatu kinerja penampilan, fisik, tidak berwujud dan cepat hilang, lebih dapat dirasakan daripada dimiliki serta pelanggan lebih dapat berpartisipasi aktif dalam proses konsumsi jasa tersebut[6]. selanjutnya tjiptono (2008) mengemukakan bahwa ada lima dimensi service quality yakni: berwujud (tangible), kehandalan (reliability), ketanggapan (responsiveness), jaminan dan kepastian (assurance), danempati (emphaty)[7]. kepercayaan merupakan suatu keoptimisan dalam situasi rentan dimana truster mempercayai trustee akan memperhatikan kepentingan truster dalam artian bahwa ketika individu berada di situasi sulit yang umumnya juga dialami semua orang, individu tersebut optimis bahwa individu lain akan menaruh perhatian pada kebutuhan dan kepentingannya[3]. dasar teori empiris mengenai kepercayaan dalam setting medis pada umumnya dikonseptualkan dalam 5 dimensi, yaitu kepedulian (fidelity), keampuan (competence), kejujuran (honesty), kerahasiaan (confidentiality), dan kepercayaan global (global trust)[3]. pelanggan didefinisikan sebagai penilaian keseluruhan pelanggan terhadap utilitas sebuah produk berdasarkan persepsinya terhadap yang diterima dan yang diberikan[8]. sedangkan dimensi nilai terdiri dari 4 (empat), yaitu: emotional value, social value, quality or performance value, dan price or value of money[9]. kepuasan merupakan tingkat perasaan dimana seseorang menyatakan hasil perbandingan atas kinerja produk (jasa) yang diterima dan yang diharapkan[10]. selanjutnya untuk menentukan tingkat kepuasan konsumen dipengaruhi oleh 5 faktor yaitu: kualitas produk, kualitas pelayanan, faktor emosional, harga, dan biaya untuk mendapatkan produk atau jasa[11] sebuah studi di malaysia dengan judul “patient satisfaction as an indicator of service quality in malaysian public hospitals.” penelitian ini bertujuan untuk menganalisa level kepuasan pasien (rawat jalan dan rawat inap) terhadap pelayanan (physical dan clinical dimensions) di rumah sakit umum malaysia. populasi dari penelitian ini adalah 23 pasien yang dipilih secara acak menggunakan metode random sampling.skala pengukuran menggunakan likert dan aplikasi spss. menurut hasil penelitian, pasien rawat inap dan rawat jalan lebih merasa puas terhadap pelayanan dokter dengan nilai tertinggi adalah 4.22 dan 4.36[12]. studi tentang “hospital service quality and its effects on patient satisfaction and behavioral intention.”penelitian ini bertujuan untuk menginvestigasi hospital service quality dan pengaruhnya terhadap patient satisfaction dan behavioral intention.populasi dari penelitian ini adalah unit pelayanan tahun 2014 agustus 2015 rawat jalan 96.450 75.420 rawat inap 6.102 5.177 penunjang medis 12.533 9.423 kamar operasi 9.514 7.518 sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana model of customer value approach for improving satisfaction of the hospital patients pasien rawat inap atau one day care di rumah skit umum dan privat di malaysia.kuesioner yang disebar adalah 350 namun yang kembali hanya 216.pengambilan sampel menggunakan teknik convenience sampling technique.instmen yang digunakan adalah kuesioner dengan menggunakan tujuh poin skala likert dalam pengukuranny dianalisis menggunakan structural equation modeling (sem). penemuan ini mengkonfirmasi bahwa lima dimensi admission, medical service, overall servcie, discharge dan social responsibility adalah faktor pembangun hospital service quality. hasil penelit ini menemukan bahwa: (1) hospital service quality memiliki hubungan yang signifikan terhadap kepuasan pelanggan.(2) patient satisfaction memiliki hubungan yang signifikan terhadap behavioral intention sebuahstudi di taiwan mengenai “service fairness and customer satisfaction in internet banking; exploring, the mediating effects of trust and customer value.” populasi dari penelitian ini adalah nasabah dari empat bank terkemuka di taipei. pengukuran kuesioner menggunakan skala likert.pengujian hipotesis menggunakan partial least squares technique hasil penelitian ini menunjukkan bahwa hubungan trust-valuememiliki hasil koefisien positif sebesar 0.722[14]. 3. metode penelitian pendekatan penelitian yang dilakukan menggunakan metode deskriptif kuantitatif.berdasarkan tujuan penelitian ini disebut sebagai explanatory research yang digunakan untuk menca dalam menjelaskan hubungan kausal dan pengujian hipotesis. variabel dalam penelitan dibedakan menjadi: a. variabel eksogen (x1), kualitas pelayanan yang terdiri dari:bukti fisik, kehandalan, daya tanggap, jaminan, dan empati b. variabel eksogen (x2), kepercayaan yang terdiri dari:kepedulian, kemampuan, kejujuran, kerahasiaan, dan kepercayaan global c. variabel endogen (y1), nilai pelanggan yang terdiri dari:nilai emosional, nilai sosial, nilai kualitas, dan nilai harga d. varibel endogen (y2), kepuasan pelanggan yang terdiri dari:kualitas produk, kualitas pelayanan, emosional pelanggan, harga, dan biaya penelitian ini dilakukan di rumah sakit surabaya.populasi penelitian ini adalah seluruh pasien rumah sakit bedah surabaya pada awal januari hingga , volume 7 number 2 september 2017 ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients di rumah skit dan privat di malaysia.kuesioner yang disebar adalah 350 namun yang kembali hanya 216.pengambilan sampel menggunakan teknik .instmen yang digunakan adalah kuesioner dengan menggunakan tujuh poin skala likert dalam pengukurannya dan structural equation modeling (sem). penemuan ini mengkonfirmasi bahwa lima admission, medical service, overall servcie, adalah faktor . hasil penelitian hospital service quality memiliki hubungan yang signifikan terhadap kepuasan memiliki hubungan behavioral intention[13]. service fairness satisfaction in internet banking; exploring, the mediating effects of trust and customer populasi dari penelitian ini adalah nasabah dari empat bank terkemuka di taipei. pengukuran kuesioner menggunakan skala likert.pengujian hipotesis partial least squares technique (pls). hasil penelitian ini menunjukkan bahwa hubungan memiliki hasil koefisien positif sebesar pendekatan penelitian yang dilakukan menggunakan metode deskriptif kuantitatif.berdasarkan tujuan penelitian ini disebut sebagai explanatory research yang digunakan untuk mencari penjelasan dalam menjelaskan hubungan kausal dan pengujian hipotesis. variabel dalam penelitan dibedakan menjadi: ), kualitas pelayanan yang terdiri dari:bukti fisik, kehandalan, daya tanggap, ), kepercayaan yang terdiri kemampuan, kejujuran, variabel endogen (y1), nilai pelanggan yang terdiri dari:nilai emosional, nilai sosial, nilai kualitas, dan langgan yang terdiri dari:kualitas produk, kualitas pelayanan, penelitian ini dilakukan di rumah sakitbedah .populasi penelitian ini adalah seluruh pasien rumah sakit bedah surabaya pada awal januari hingga akhir agustus 2015, yaitu sebanyak 97.538 orang. berdasarkan populasi yang ada ditetapkan jumlah sampel penelitian dengan menggunakan rumus slovin [15]yaitu: keterangan: n = jumlah sampel n = jumlah populasi e = tingkat kesalahan pengambilan sampel (10%) berdasarkan rumus tersebut maka: n = 97.538 / 1+97.538 (10%) = 99.89 sampel. pengambilan data primer dilakukan melalui teknik penyebaran kuesioner.pengukuran untuk setiap variabel dilakukan dalam bentuk skoring menggunakan skala likert ( scale) yang menyediakan 5 alternatif jawaban, yaitu ss (sangat setuju), s (setuju), ks (kurang setuju), ts (tidak setuju), sts (sangat tidak setuju).instrumen diuju dengan cara mengukur validitas dapat menggunakan konsistensi internal ( yaitu dengan metode korelasi product moment pearson jika hasil korelasi antara setiap pertanyaan dengan skor total menunjukkan hasil yang signifikan (signifikansi ≤0.05 dan korelasi ≥0.4), maka item pertanyaan tersebu valid yang memiliki validitas konstruk. reliabilitas adalah ukuran mengenai konsistensi internal dari indikator sebuah konstruk yang menunjukkan derajat sampai dimana masing-masing indikator itu mengindikasikan sebuah konstruk ataufaktor laten yang umum[16]. pengukuran reliabilitas dapat juga menggunakan koefesien cronbach alpha (α) teknik pengambilan sampel dari penelitian ini mengunakan simple random sampling melakukan pengamatan dan pemeriksaan p anggota populasi sehingga kita dapat menarik kesimpulan secara umum. asumsi dasar dari teknik ini adalah setiap kasus memiliki kesempatan untuk terpilih sebagai sampel[15]. instrumen pengumpulan data primer penel adalah menggunakan kuesioner ( diberikan kepada pasien rumah sakit bedahsurabaya guna mendukung akurasi atau ketepatan sumber data dan informasi. teknik analisis data yang digunakan dalam penelitian ini adalah sem merupakan tek multivariat yang merupakan kombinasi antara analisis faktor dan analisis regresi (korelasi). sem bertujuan 32 ir agustus 2015, yaitu sebanyak 97.538 orang. berdasarkan populasi yang ada ditetapkan jumlah sampel penelitian dengan menggunakan rumus slovin e = tingkat kesalahan pengambilan sampel (10%) berdasarkan rumus tersebut maka: n = 97.538 / 1+97.538 (10%) = 99.89 sampel. pengambilan data primer dilakukan melalui teknik penyebaran kuesioner.pengukuran untuk setiap variabel dilakukan ng menggunakan skala likert (likert ) yang menyediakan 5 alternatif jawaban, yaitu ss (sangat setuju), s (setuju), ks (kurang setuju), ts (tidak setuju), sts (sangat tidak setuju).instrumen diuju dengan cara mengukur validitas dapat tensi internal (internal consistency) product moment pearson. jika hasil korelasi antara setiap pertanyaan dengan skor total menunjukkan hasil yang signifikan (signifikansi ≤0.05 dan korelasi ≥0.4), maka item pertanyaan tersebut valid yang memiliki validitas konstruk. reliabilitas adalah ukuran mengenai konsistensi internal dari indikator sebuah konstruk yang menunjukkan derajat masing indikator itu mengindikasikan sebuah konstruk ataufaktor laten yang . pengukuran reliabilitas dapat juga cronbach alpha (α) teknik pengambilan sampel dari penelitian ini simple random sampling.dengan melakukan pengamatan dan pemeriksaan pada sebagian anggota populasi sehingga kita dapat menarik kesimpulan secara umum. asumsi dasar dari teknik ini adalah setiap kasus memiliki kesempatan untuk terpilih instrumen pengumpulan data primer penelitian ini adalah menggunakan kuesioner (questionnaire) yang diberikan kepada pasien rumah sakit bedahsurabaya guna mendukung akurasi atau ketepatan sumber data teknik analisis data yang digunakan dalam sem merupakan teknik statistik multivariat yang merupakan kombinasi antara analisis faktor dan analisis regresi (korelasi). sem bertujuan sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana model of customer value approach for improving satisfaction of the hospital patients untuk menguji hubungan-hubungan antar variabel yang ada pada sebuah model[17]. sem memungkinkan untuk dapat menjawab pertanyaan penelitian yang bersifat regresif maupun dimensional yaitu mengukur dimensi dari sebuah konsep[18]. sem juga merupakan pendekatan terintegrasi antara analisis faktor, model struktural, dan analisis jalur[19].proses sem tidak dapat dilakukan secara manual karena keterbatasan kemampuan manusia dan kompleksitas model dan alat statistik yang digunakan. oleh karena itu, penelitian ini akan menggunakan alat statistik amos 22.0 ( of moment structure) dengan berdasar pada kerangka teoritik yang ada[17]. amos merupakan salah satu program generasi baru dan paling canggih saat ini untuk mengolah model-model penelitian yang multidimensi dan berjenjang[16]. model kausal amos menunjukan pengukuran masalah yang struktural, dan digunakan untuk menganalisis dan menguji hipotesis. 4. hasil dan pembahasan hasil jawaban responden terhadap kepercayaan (x2) berdasarkan skor yang diberikan oleh 100 responden pada 10 butir pertanyaan, distribusi skor untuk pertanyaan mengenai kepercayaan menyebar antara skor terendah 25 sampai dengan skor tertinggi 50. dan skor rata-rata (mean) adalah 40.43.standar deviasi yang kecil (11% dari mean) menunjukkan variasi yang kecil, atau dapat dikatakan dari skor kepercayaan yang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar. hal ini menunjukkan bahwa persepsi responden di rumah sakit bedah di surabaya mengenai kepercayaan tidak terlalu jauh berbeda. hasil jawaban responden terhadap nilai pelanggan (y1) berdasarkan skor yang diberikan oleh 100 responden pada 8 butir pertanyaan, distribusi skor untuk pertanyaan mengenai nilai pelanggan menyebar antara skor terendah 18 sampai dengan skor tertinggi 39. dan skor rata-rata (mean) adalah 30.79.standar deviasi yang kecil (12% dari mean) menunjukkan variasi yang kecil, atau dapat dikatakan dari skor nilai pelang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar.hal ini menunjukkan bahwa persepsi responden di rumah sakit bedah surabaya mengenai nilai pelanggan tidak terlalu jauh berbeda. hasil jawaban responden terhadap kepuasan pelanggan (y2) , volume 7 number 2 september 2017 ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients hubungan antar variabel yang memungkinkan untuk dapat menjawab pertanyaan penelitian yang bersifat regresif maupun dimensional yaitu mengukur dimensi sem juga merupakan pendekatan terintegrasi antara analisis faktor, model roses sem tidak dapat dilakukan secara manual karena keterbatasan kemampuan manusia dan kompleksitas model dan alat statistik yang digunakan. oleh karena itu, penelitian ini alat statistik amos 22.0 (analysis dengan berdasar pada kerangka merupakan salah satu program generasi baru dan paling canggih saat ini untuk model penelitian yang multidimensi . model kausal amos menunjukan pengukuran masalah yang struktural, dan digunakan hasil jawaban responden terhadap kepercayaan berdasarkan skor yang diberikan oleh 100 responden pada 10 butir pertanyaan, distribusi skor untuk pertanyaan mengenai kepercayaan menyebar antara skor terendah 25 sampai dengan skor tertinggi ) adalah 40.43.standar ) menunjukkan variasi yang kecil, atau dapat dikatakan dari skor kepercayaan yang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar. hal ini rsepsi responden di rumah sakit bedah di surabaya mengenai kepercayaan hasil jawaban responden terhadap nilai pelanggan berdasarkan skor yang diberikan oleh 100 responden pada 8 butir pertanyaan, distribusi skor untuk tanyaan mengenai nilai pelanggan menyebar antara skor terendah 18 sampai dengan skor tertinggi 39. dan ) adalah 30.79.standar deviasi yang ) menunjukkan variasi yang kecil, atau dapat dikatakan dari skor nilai pelanggan yang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar.hal ini menunjukkan bahwa persepsi responden di rumah sakit bedah surabaya mengenai hasil jawaban responden terhadap kepuasan berdasarkan skor yang diberikan oleh 100 responden pada 10 butir pertanyaan, distribusi skor untuk pertanyaan mengenai kepuasan pelanggan menyebar antara skor terendah 24 sampai dengan skor tertinggi 48. dan skor rata38.83.standar deviasi yang kecil (12% dari menunjukkan variasi yang kecil, atau dapat dikatakan dari skor kepuasan pelanggan yang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar.hal ini menunjukkan bahwa persepsi responden di rumah sakit bedah surabaya mengenai kepuasan pelanggan tidak terlalu jauh berbeda. proses dan analisis sem pengembangan model berdasarkan teori gambar 1.model berbasis teori model teori diatas dibanguan atas dasar kajian literatur.dimana terdiri dari dua jen variabel eksogen dan endogen. (service quality) dan kepercayaan pelanggan (customer trust) merupakan variabel eksogen, pelanggan (customer value) dan (customer satisfaction) merupakan variabel endogen. 33 berdasarkan skor yang diberikan oleh 100 responden pada 10 butir pertanyaan, distribusi skor untuk pertanyaan mengenai kepuasan pelanggan menyebar antara skor terendah 24 sampai dengan skor -rata (mean) adalah tandar deviasi yang kecil (12% dari mean) menunjukkan variasi yang kecil, atau dapat dikatakan dari skor kepuasan pelanggan yang terkecil dengan skor terbesar tidak terdapat kesenjangan yang cukup besar.hal ini menunjukkan bahwa persepsi responden di sakit bedah surabaya mengenai kepuasan pelanggan tidak terlalu jauh berbeda. pengembangan model berdasarkan teori model teori diatas dibanguan atas dasar kajian literatur.dimana terdiri dari dua jenis variabel, yaitu variabel eksogen dan endogen.kualitas pelayanan dan kepercayaan pelanggan variabel eksogen, nilai ) dan kepuasan pelanggan ) merupakan variabel endogen. sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 34 tabel 2: hasil analisis structural equation model (sem) variabel estimate s.e. c.r. p label nilai pelanggan  kualitas pelayanan 0.465 0.119 3.914 0,001 signifikan nilai pelanggan  kepercayaan 0.650 0.155 4.182 0,001 signifikan kepuasan  kualiatas pelayanan 0.560 0.118 3.479 0.001 signifikan kepuasan  kepercayaan 0.412 0.153 3.077 0.001 signifikan kepuasan  nilai pelanggan 0.745 0.226 3.300 0,001 signifikan kualitas pelayanan bangunan fisik  kualitas pelayanan 1 kebersihan  kualitas pelayanan 0.817 0.14 5.831 0,001 signifikan daya tanggap  kualitas pelayanan 1.034 0.167 6.205 0,001 signifikan jaminan  kualitas pelayanan 0.617 0.108 5.722 0,001 signifikan empati  kualitas pelayanan 0.802 0.16 4.995 0,001 signifikan kepercayaan kepercayaan global  kepercayaan 1 kerahasiaan  kepercayaan 1.356 0.184 7.373 0,001 signifikan kejujuran  kepercayaan 1.369 0.19 7.191 0,001 signifikan kemampuan  kepercayaan 1.049 0.172 6.092 0,001 signifikan kepedulian  kepercayaan 1.419 0.217 6.554 0,001 signifikan nilai pelanggan nilai harga  nilai pelanggan 1 nilai kualitas  nilai pelanggan 1.013 0.176 5.75 0,001 signifikan nilai sosial  nilai pelanggan 0.730 0.171 4.268 0,001 signifikan nilai emosional  nilai pelanggan 0.764 0.158 4.839 0,001 signifikan kepuasan kualitas produk  kepuasan 1 kualitas pelayanan  kepuasan 1.265 0.173 7.318 0,001 signifikan emosional pelanggan  kepuasan 1.254 0.188 6.674 0,001 signifikan harga  kepuasan 1.110 0.186 5.969 0,001 signifikan biaya  kepuasan 1.268 0.205 6.196 0,001 signifikan sumber: data diolah 2016 sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 35 tabel 3. nilai standardize estimate dan squared multiple correlations variabel p standardize estimate squared multiple correlations nilai pelanggan  kualitas pelayanan 0,001 0.524 0.610 nilai pelanggan  kepercayaan 0,001 0.579 0.610 kepuasan  kualitas pelayanan 0.001 0.402 0.795 kepuasan  kepercayaan 0.001 0.512 0.795 kepuasan  nilai pelanggan 0,001 0.845 0.795 kualitas pelayanan bangunan fisik  kualitas pelayanan 0.719 0.517 kebersihan  kualitas pelayanan 0,001 0.671 0.451 daya tanggap  kualitas pelayanan 0,001 0.723 0.523 jaminan  kualitas pelayanan 0,001 0.657 0.432 empati  kualitas pelayanan 0,001 0.567 0.321 kepercayaan kepercayaan global  kepercayaan 0.672 0.451 kerahasiaan  kepercayaan 0,001 0.866 0.750 kejujuran  kepercayaan 0,001 0.836 0.699 kemampuan  kepercayaan 0,001 0.686 0.471 kepedulian  kepercayaan 0,001 0.747 0.557 nilai pelanggan nilai harga  nilai pelanggan 0.614 0.377 nilai kualitas  nilai pelanggan 0,001 0.753 0.567 nilai sosial  nilai pelanggan 0,001 0.507 0.257 nilai emosional  nilai pelanggan 0,001 0.593 0.351 kepuasan kualitas produk  kepuasan 0.682 0.465 kualitas pelayanan  kepuasan 0,001 0.844 0.712 emosional pelanggan  kepuasan 0,001 0.754 0.569 sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana model of customer value approach for improving satisfaction of the hospital patients harga  kepuasan biaya  kepuasan sumber: data diolah 2016 gambar 2. model penelitian sem setelah modifikasi , volume 7 number 2 september 2017 ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 0,001 0.665 0.443 0,001 0.693 0.481 gambar 2. model penelitian sem setelah modifikasi 36 sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 37 tabel 4. hasil pengujian tahap akhir pengaruh kualitas pelayanan, kepercayaan pelanggan terhadap nilai pelanggan dan kepuasan pelanggan (kriteria goodness of fit index) goodness of fit index cut off value hasil analisis evaluasi model chi-square diharapk an kecil 192,151 baik signifikansi ≥ 0,05 0,066 baik rmsea ≤ 0,08 0,026 baik gfi ≥ 0,90 0,934 baik agfi ≥ 0,90 0,898 marginal cmin/df ≤ 2,00 1,172 baik tli ≥ 0,95 0,984 baik cfi ≥ 0,95 0,989 baik sumber: data diolah 2016 berdasarkan tabel 4 dapat dilihat bahwa dari sembilan parameter nilai goodness of fit index, delapan parameter goodness of fit adalah baik, sehingga dapat dikatakan model cfa tersebut sudah fit dengan data yang ada. tabel.5. hasil pengujian terhadap pengaruh langsung, tidak langsung, dan pengaruh total variabel koefisien jalur (standardize estimate) pengaruh langsung kualitas pelayanan (x1) → nilai pelanggan (y1) 0,524 kepercaya an (x2) → nilai pelanggan (y1) 0,579 kualitas pelayanan (x1) → kepuasan (y2) 0,402 kepercaya → kepuasan 0,412 an (x2) (y2) nilai pelanggan (y1) → kepuasan (y2) 0,845 pengaruh tidak langsung x1 → y1 → y2 0,442 x2 → y2 → y2 0,489 pengaruh total x1 → y1 → y2 0,844 x2 → y1 → y2 0,901 pengaruh variabel kualitas pelayanan terhadap variabel nilai pelanggan di rumah sakit bedah surabaya. pada tabel 5menunjukkan besarnya pengaruh langsung kualitas pelayanan terhadap nilai pelanggan sebesar 0,524, artinya pengaruh langsung kualitas pelayanan terhadap nilai pelanggan pasien sangat signifikan dan positif.maka semakin tinggi tingkat kualitas pelayanan yang diberikan rumah sakit, semakin berpengaruh terhadap nilai pelanggan tersebut dan sebaliknya. dari hasil survei yang di dapat, dalam variabel kualitas pelayananindikator dengan poin tertinggi adalah jaminan dalam hal penerimaan kritikan dengan baik (80%), sedangkan dalam variabel nilai pelanggan, indikator dengan poin tertinggi adalah nilai emosional dalam hal perasaan sembuh saat mendapatkan pelayanan (86%), dengan demikian indikator jaminan yang paling mempengaruhi nilai emosional. sebaliknya dalam variabel kualitas pelayanan indikator dengan poin terendah yaitu: daya tanggap dalam hal pelayanan cepat dan tepat (5%), sedangkan di dalam variabel nilai pelanggan, indikator dengan poin terendah adalah nilai sosial dalam hal perasaan terpandang saat menggunakan pelayanan (3%).hasil penelitan ini didukung oleh penelitian yang dilakukan a. m. kusnadi (2010) dengan judul “analisis customer relationship management dan service quality terhadap customer value melalui customer satisfactionpada bank pemerintah di surabaya” yang menyatakan bahwa kualitas pelayanan berpengaruh terhadap nilai pelanggan. sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 38 pengaruh variabel kepercayaan terhadap variabel nilai pelanggan di rumah sakit bedah surabaya. pada tabel 5 dapat dilihat bahwa pengaruh langsung kepercayaan terhadap nilai pelanggan sebesar 0,579, artinya pengaruh langsung kepercayaan terhadap nilai pelanggan sangat signifikan dan positif. maka semakin tinggi tingkat kepercayaan pelanggan pada rumah sakit, semakin berpengaruh terhadap nilai pelanggan dan sebaliknya.dari hasil survei yang di dapat, dalam variabel kepercayaan, ada dua indikator dengan poin tertinggi yaitukepercayaan global dalam hal memberikan rasa nyaman dalam menjalin hubungan (88%), sedangkan dalam variabel nilai pelanggan, indikator dengan poin tertinggi adalah nilai emosional dalam hal perasaan sembuh saat mendapatkan pelayanan (86%), dengan demikian indikator kepercayaan global yang paling mempengaruhi nilai emosional. sebaliknya dalam variabel kepercayaan indikator dengan poin terendah ada dua, yaitu: kepedulian dalam hal mengutamakan kesehatan pasien (3%) dan kepercayaan kualitas pelayanan (3%), sedangkan di dalam variabel nilai pelanggan, indikator dengan poin terendah adalah nilai sosial dalam hal perasaan terpandang saat menggunakan pelayanan (3%). hasil yang diperoleh pada penelitian ini didukung oleh penelitian yang dilakukan yu-qian zhu dan hou-gee chen (2012) di taiwan yang menyatakan bahwa kepercayaan memiliki pengaruh terhadap nilai pelanggan[14]. pengaruh langsung kualitas pelayanan terhadap kepuasan sebesar 0,402, artinya pengaruh langsung mutu terhadap kesetiaan pasien sangat signifikan dan positif. maka semakin tinggi tingkat kualitas pelayanan yang diberikan rumah sakit, berpengaruh terhadap kepuasaan pelanggan dan sebaliknya.dari hasil survei yang di dapat, dalam variabel kualitas pelayananindikator dengan poin tertinggi adalah jaminan dalam hal penerimaan kritikan dengan baik (80%),sedangkan dalam variabel kepuasan, indikator dengan poin tertinggi adalah kualitas produk dalam hal perasaan puas dengan hasil pengobatan (84%), dengan demikian indikator jaminan yang paling mempengaruhi kualitas produk. sebaliknya dalam variabel kualitas pelayanan indikator dengan poin terendah yaitu: daya tanggap dalam hal pelayanan cepat dan tepat (5%), sedangkan di dalam variabel kepuasan, ada dua indikator dengan poin terendah, yaitu: tarif (4%) dan biaya keselutuhan (4%).hasil yang diperoleh pada penelitian ini didukung oleh muslim amin dan siti zahora nasharuddin (2013) yang menyatakan bahwa kualitas pelayanan berpengaruh pada kepuasan pasien[13]. pengaruh variabel kepercayaan terhadap variabelkepuasan pelanggan di rumah sakit bedah surabaya. pada tabel 5 dapat dilihat pengaruh langsung kepercayaan terhadap kepuasan sebesar 0,412, artinya pengaruh langsung kepuasan terhadap kesetiaan pasien sangat signifikan dan positif.maka semakin tinggi tingkat kepercayaan pelanggan, semakin berpengaruh kepuasan pelanggan dan sebaliknya. dari hasil survei yang di dapat, dalam variabel kepercayaan, ada dua indikator dengan poin tertinggi yaitukepercayaan global dalam hal memberikan rasa nyaman dalam menjalin hubungan (88%), sedangkan dalam variabel kepuasan, indikator dengan poin tertinggi adalah kualitas produk dalam hal perasaan puas dengan hasil pengobatan (84%), dengan demikian indikator. kepercayaan global yang paling mempengaruhi kualitas produk. ebaliknya dalam variabel kepercayaan indikator dengan poin terendah ada dua, yaitu: kepedulian dalam hal mengutamakan kesehatan pasien (3%) dan kepercayaan kualitas pelayanan (3%), sedangkan di dalam variabel kepuasan, ada dua indikator dengan poin terendah, yaitu: tarif (4%) dan biaya keselutuhan (4%).hasil yang diperoleh pada penelitian ini didukung oleh kenny febrina salim, catherine catherine dan fransisca andreani (2015) yang menyatakan bahwa kepercayaan berpengaruh terhadap kepuasan pelanggan[20]. pengaruh variabel nilai pelanggan terhadap variabelkepuasan pelanggan di rumah sakit bedah surabaya. pada tabel 5 juga menunjukan pengaruh langsung nilai pelanggan terhadap kepuasan sebesar 0,845, artinya pengaruh langsung nilai pelanggan terhadap kepuasan sangat signifikan dan positif.maka semakin tinggi tingkat nilai pelanggan pelayanan rumah sakit, semakin tinggi pula kepuasan pelanggan dan sebaliknya. dari hasil survei yang di dapat, dalam variabel nilai pelanggan, indikator dengan poin tertinggi adalah nilai emosional dalam hal perasaan sembuh saat mendapatkan pelayanan (86%), sedangkan dalam variabel kepuasan, indikator dengan poin tertinggi adalah kualitas produk dalam hal perasaan puas dengan hasil pengobatan (84%), dengan demikian indikator nilai emosional yang paling mempengaruhi kualitas produk. sebaliknya dalam variabel nilai pelanggan, indikator dengan poin sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 39 terendah adalah nilai sosial dalam hal perasaan terpandang saat menggunakan pelayanan (3%), sedangkan di dalam variabel kepuasan, ada dua indikator dengan poin terendah, yaitu: tarif (4%) dan biaya keselutuhan (4%). hasil yang diperoleh pada penelitian ini didukung oleh ajeng utami ikasari, sri sutyoko dan sendhang nurseto (2013) yang menemukan bahwa variabel nilai pelanggan mempunyai pengaruh terhadap variabel kepuasan pelanggan[21]. pengaruh tidak langsung variabel kualitas pelayanan terhadap kepuasan melalui nilai pelanggan pada tabel 5 dapat dilihat pengaruh tidak langsung variabel kualitas pelayanan terhadap kepuasan melalui nilai pelanggan sebesar 0,442 dan pengaruh tidak langsung kepercayaan terhadap kepuasan melalui nilai pelanggan sebesar 0,489. dilihat dari besarnya total pengaruh yang paling tinggi adalah total pengaruh kualitas pelayanan terhadap kepuasan melalui nilai pelanggan yaitu 0,844. untuk total pengaruh dari kepercayan pada kepuasan yang melalui nilai pelanggan memiliki nilai sebesar 0,901.berdasarkan hasil analisis tersebut maka perlu ditingkatkan kepercayaan pelanggan terhadap rumah sakit bedah surabaya melalui indikator kemampuan berupa kepercayaan terhadap kualitas pelayanan. peningkatan mutu ini dapat dilakukan dengan memberikan pelayanan kesehatan secara profesional dan sesuai dengan sop yang berlaku. maka dari itu, pasien dan keluarga yang menerima pelayanan akan yakin dan percaya terhadap kualitas pelayanan rumah sakit bedah surabaya.sedangkan untuk meningkatkan kepuasan pelanggan terhadap rumah sakit bedah surabaya melalui indikator tarif dan biaya keseluruhan yang di keluarkan oleh pelanggan untuk mendapatkan pelayanan. peningkatan mutu ini dapat dilakukan dengan meningkatkan kualitas pelayanan karyawan (baik medis maupun non-medis) sehingga pelanggan merasa bahwa apa yang mereka keluarkan sebanding dengan yang mereka dapatkan. 5. kesimpulan kesimpulan hasil penelitian menujukan bahwa kualitas pelayanan (x1) berpengaruh secara signifikan terhadap nilai pelanggan (z), dengan demikian kualitas pelayanan yang diterima pelanggan berpengaruh terhadap nilai pelanggan yang diterima di rumah sakit bedah surabaya.kepercayaan (x2) berpengaruh secara signifikan terhadap nilai pelanggan (z). hal ini menunjukan kepercayaan yang diterima pelanggan berpengaruh terhadap nilai pelanggan yang diterima di rumah sakit mata undaan surabaya.kualitas pelayanan (x1) berpengaruh secara signifikan terhadap kepuasan (y). ini menunjukan bahwa kualitas pelayanan yang diterima pelanggan berpengaruh terhadap kepuasan yang didapatkan di rumah sakit bedah surabaya.kepercayaan (x2) berpengaruh secara signifikan terhadap kepuasan (y).maka kepercayaan yang diterima pelanggan berpengaruh terhadap kepuasan yang didapatkan di rumah sakit bedah surabaya.nilai pelanggan (z) berpengaruh secara siginifkan terhadap kepuasan (y). maka ini menunjukan bahwa nilai pelanggan yang didapatkan pelanggan berpengaruh terhadap kepuasan yang didapatkan di rumah sakit bedah surabaya.sehingga untuk meningkatkan kepuasan pasien rumah sakit dengan model pendekatan nilai pelanggan(pasien) dibangun dengan meningkatkan kualitas pelayanan yang tediri dari kualitas kebersihan, daya tanggap, jaminan dan empati, dan kepercayaan pelanggan terdiri dari kerahasiaan, kejujuran, kemampuan dan kepedulian, yang dapat meningkatkan nilai harga, nilai kualitas dan nilai emosional sehingga tercipta kepuasan pasien khusus kepuasan terhadap kualitas pelayanan,emosional pelanggan, harga dan biaya rumah sakit. peningkatan mutu layanan yang berdampak pada nilai pelanggan dapat dilakukan dengan memberikan program pengembangan sdm secara terus menerus kepada dokter dan perawat sehingga dapat meminimalkan kesalahan dalam memberikan pelayanan kepada pelanggan.kemudian meningkatkan awareness petugas rumah sakit dalam memahami keinginan dan kebutuhan pelanggan, sehingga tindakan yang dilakukan dan pelayanan yang diberikan menjadi lebih cepat dan tepat. memberikan pelayanan kesehatan kepada pasien seperti melayani keluarga sendiri. kondisi ini dapat menimbulkan perasaan yakin atau terjamin bila pelanggan berobat ke rumah sakit khususnya di surabaya dan pelanggan merasa bahwa biaya yang mereka keluarkan sebanding dengan manfaat yang mereka dapatkan.model pendekatan nilai pelanggan untuk meningkatkan kepuasan pelanggan dapat dilakukan di rumah sakit lain apabila rumah sakit tersebut memiliki karakteristik pelanggan yang sama dengan rumah sakit bedah surabaya. 6. referensi [1] l. l. parasuraman, a., zeithaml, v. a., &berry, “a conceptual model of service quality and its implications for future research,” j. mark., pp. 41–50, 1985. sinergi, volume 7 number 2 september 2017 arasy alimudin 1) , iswachyu dhaniarti 2) ,maria lisa judana 3) , agus sukoco 4) model of customer value approach for improving satisfaction of the hospital patients 40 [2] s. saad andaleeb, “determinants of customer satisfaction with hospitals: a managerial model,” int. j. health care qual. assur., vol. 11, no. 6, pp. 181–187, 1998. 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[21] s. ikasari, a. u., suryoko, s., & nurseto, “pengaruh nilai pelanggan dan kualitas pelayanan terhadap kepuasan pelanggan (studi kasus pada penumpang ka kaligung mas di stasiun poncol semarang),” ournal soc. polit., pp. 1–8, 2013. 1 the effect of leadership style on employee performance mediated by organizational culture and employee motivation bureau of government and regional autonomy regional secretariat east java province ade wimbo brasrinanto1*), susanto sukiman2) 1,2) faculty of economics and business, university dr. soetomo, surabaya, indonesia e-mail: adewimbobrasrinanto@gmail.com 1*), susanto_ega@yahoo.com 2) abstract. employee performance is very large in determining organizational development so as to improve work performance and achieve organizational goals. employee performance can be influenced by several factors. leadership style, organizational culture and employee motivation are important in shaping employee performance. the purpose of this study was to analyze the effect of leadership style on employee performance mediated by organizational culture and employee motivation in the bureau of government and regional autonomy regional secretariat of east java province. this research is a causal research. the approach used is a quantitative method. the population in this study were all employees of the bureau of government and regional autonomy regional secretariat of east java province, totaling 75. the sampling technique used was saturated sampling technique, so the number of samples in this study were 75 respondents. data collection techniques in this study were carried out by distributing questionnaires. the analysis technique in this study uses partial least square(pls).the results of this study indicate that: (1)leadership style has a significant effect on organizational culture in the bureau of government and regional autonomy regional secretariat of east java province; (2) leadership style has a significant effect on employee motivation at the bureau of government and regional autonomy regional secretariat of east java province; (3) leadership style has a significant effect on employee performance at the bureau of government and regional autonomy of regional secretariat of east java province; (4) organizational culture has a significant effect on employee performance at the bureau of government and regional autonomy of regional secretariat of east java province; (5) employee motivation has a significant effect on employee performance at the bureau of government and regional autonomy regional secretariat of east java province. keywords: leadership style; organizational culture; employee motivation employee performance i . introduction the function of the government is to provide excellent service to its citizens. in this era of regional autonomy, there have been many paradigm shifts, situations and conditions in governance, development and community services. the current condition of society has developed very dynamically, and people's awareness of their rights and obligations as citizens has also increased. people are increasingly daring to put forward their demands and aspirations to the government. the leadership style of a leader or manager in directing and mobilizing his subordinates to achieve the planned goals is important in an organization. employees who between performance and work discipline do not feel that the leader in carrying out his leadership duties can always pay attention to aspirations and can also manage tasks that must be considered properly, will be able to cause a feeling of pleasure in employees towards the leader. therefore, the leadership style of a leader is also important in improving the performance of existing employees. organizational culture can be the basis of adaptation and the key to organizational success, so much research has been conducted to identify values or behavioral norms that can make a major contribution to organizational success. however, relatively few have tried to link organizational culture with important human resource variables, especially employee performance (wulandari, 2016:116). apart from organizational culture factors that influence employee performance, there are leadership style factors. leadership describes the relationship between the leader (leader) and those who are led (follower) and how a leader directs followers will determine the extent to which followers achieve the goals or expectations of the leader (wulandari, 2016:117). employee performance is very large in determining organizational development so as to improve work performance and achieve organizational goals. leadership can be carried out well if a leader has the competence of leadership emotional intelligence. in addition, motivation can be interpreted as an individual's encouragement to take action 2 because he wants to do it. if the individual is motivated, the individual will make a positive choice to do something because it can satisfy his desires (rivai and sagala, insanyang, 2019:72). leadership style is a way that is owned by a leader who shows an attitude that is a certain characteristic to influence his employees in achieving organizational goals (mulyadi, 2015: 150). according to robbins in tika (2014: 6) states that organizational culture is a set of value systems that are recognized and created by all its members that distinguish one company from another. according to mangkunegara (2017: 94) work motivation is a condition that influences arousing, directing, and maintaining behavior related to the work environment. motivation is one of the factors that can affect the high or low performance of an employee. the word performance or achievement comes from the word "performance" which means: achievement, performance, execution of tasks. handoko (2016: 34) explains the notion of employee performance as the ultimate measure of an employee's success in carrying out his work. this study aims to (1) analyze the influence of leadership style on the organizational culture of the employees of the government bureau and regional autonomy of regional secretariat of east java province; (2) to analyze the effect of leadership style on the motivation of the employees of the bureau of government and regional autonomy of regional secretariat of east java province; (3) to analyze the effect of leadership style on the performance of the employees of the bureau of government and regional autonomy of regional secretariat of east java province; (4) to analyze the effect of organizational culture on the performance of the employees of the bureau of government and regional autonomy of regional secretariat of east java province; (5) analyze the effect of employee motivation on the performance of the employees of the bureau of government and regional autonomy regional secretariat of east java province; conceptual framework picture 1 conceptual framework hypothesis based on the formulation of the problem, research objectives, research benefits, research background, and literature review as previously described, the research hypothesis is as follows: h1 :style leadership has a significant influence on the organizational culture of the government bureau and regional autonomy regional secretariat of east java province h2 :style leadership has a significant effect on employee motivation in the bureau of government and regional autonomy regional secretariat of east java province h3 :style leadership has a significant effect on the employee performance of the government bureau and regional autonomy regional secretariat of east java province h4 :culture the organization has a significant effect on the employee performance of the government bureau and the regional autonomy regional secretariat of east java province h5 :motivation employees have a significant effect on the employee performance of the bureau of government and regional autonomy regional secretariat of east java province ii. research methods this research includes causal-comparative research. the approach used is a quantitative method. identification of variables in this study is divided into three, namely independent variables, mediating variables and dependent variables, as follows: (1)free v (x); (2)mediation variables (z1) and work motivation (z2); (3) bound the operational definition of a variable is a definition given to a particular variable because it has different meanings and connotations in different cultures (sekaran and bougie, 2017:25). the following will describe the operational definition of each research variable as follows: leadership style (x).¬leadership style is a way that leaders use in interacting with their subordinates. leadership style in this study is measured through several indicators that refer to (kartono, 2015:93), namely: (a)decision making ability (x.1); (b) motivating ability (x.2); (c) communication skills (x.3); (d) ability to control subordinates (x.4); (e) responsibilities (x.5); (f) ability to control emotional (x.6). organizational culture (z1).organizational culture is a set of value systems that are recognized and created by all its members that differentiate one company from another. organizational culture in this study is measured through several indicators that refer to robbins and coulter (2010:63), namely: a) innovation and risktaking(z1.1); b) attention to details (z1.2); c) outcomes orientation (results oriented) (z1.3); d) people orientation (human oriented) (z1.4); e) team orientation 3 (team oriented) (z1.5); f) aggressiveness (z1.6); g) stability (z1.7). work motivation (z2).work motivation is a factor that encourages a person to carry out a certain activity, therefore motivation is often interpreted as a driving factor for one's behavior. work motivation in this study is measured through several indicators that refer to mcclelland's theory robbins and judge (2015:49) namely: (a) the need for achievement (z2.1); (b) the need for power (z2.2); (c) the need for affiliation (z2.3). employee performance (y).performance is a measure of the results of a work unit activity in a certain period in order to assess its ability, in this case it is more towards work. employee performance in this study is measured through several indicators that refer to bernardin and russell in sulistiyani (2011:11), namely: a. quality (employee work quality) (y.1); b. quantity (employee work quantity) (y.2); c. timeliness (employee work speed) (y.3); d. cost effectiveness (employee work effectiveness) (y.4); e. need for supervision (work independence) (y.5); f. interpersonal impact (work comfortability) (y. 6). the sample population in this study were 75 employees of the bureau of government and regional autonomy regional secretariat of east java province, indonesia which included bureau heads, 2 (two) structural officers, 10 (ten) functional officers, 48 (forty eight) staff and 14 (fourteen) ptt/contract worker. in this study the sampling technique taken was saturated sampling technique. type and source primary data obtained from the results of filling out the questionnaire by employee of the bureau of government and regional autonomy regional secretariat of east java province, which means type of explanatory research with a quantitative method approach. the analytical technique chosen to analyze the data and test the hypotheses in this study is the structural equation model (sem). to answer the hypothesis used partial least square (pls). . iii. research results and discussion research result analysis partial least square (pls) outer model evaluation convergent validity to test the convergent validity, the outer loading value or loading factor is used. an indicator is declared to meet convergent validity in the good category if it has a loading factor value > 0.50. the following is the outer loading value of each indicator on the research variables: table 1 validity test (convergent validity) based on the convergent validity test shown in table 1 above, it is known that all indicators in each declared valid as a measure of the construct so that all indicators are feasible or valid to use and can be used for further analysis, because all of them have a convergent validity value above 0.5. average variance extracted (ave) ave aims to test the reliability of construct variables. ave aims to establish that the construct variable has a good discriminant validity value. the ave value is declared satisfactory if > 0.5. the results of the ave test appear in table 2 as follows: table 2 ave value the results of the ave value for the indicator block that measures the construct can be stated have good value of discriminant validity because the ave value is > 0.5. this means that all construct variables are declared to have good discriminant validity. discriminant validity in this section, the results of the discriminant validity test will be described. discriminant validity test aims to test the validity of the indicator block. the discriminant validity test uses the cross loading value. an indicator is declared to meet discriminant validity if the indicator's cross loading value on the variable is the largest compared to other variables. 4 table 3 cross loadings mark cross loadings in table 3 above it can be seen that each indicator on the research variable has the largest cross loading value on the variable it forms compared to the cross loading value on other variables. based on the results obtained, it can be stated that the indicators used in this study have good discriminant validity in compiling their respective variables. composite reliability composite reliability is the part that is used to test the value of the reliability of indicators on a variable. a variable can be declared to meet composite reliability if it has a composite reliability value of > 0.70. the following is the composite reliability value of each variable used in this study: table 4 composite reliability based on the data presented in table 4 above, it can be seen that the composite reliability value of all research variables is > 0.70. these results indicate that each variable meets composite reliability so that it can be concluded that all variables are adequate in measuring the latent/construct variables that are measured so that they can be used in subsequent analysis. cronbach alpha the reliability test with the composite reliability above can be strengthened by using the cronbach alpha value. a variable can be declared reliable or meets cronbach alpha if it has a cronbach alpha value > 0.6. the following is the cronbach alpha value of each variable: table 5 cronbach alpha based on the test results in the table above, it can be seen that the cronbach alpha value of each research variable is > 0.60. thus these results can indicate that each research variable has met the requirements for the cronbach alpha value, so it can be concluded that all variables have a high level of reliability. inner model test in this study, to test the research hypothesis, partial least square (pls) analysis was used with the smart pls program. the following is a picture of the proposed pls model. figure 2 pls research model the results of the inner weight values in figure 2 above show that the variables organizational culture and work motivation are both influenced by leadership style and employee performance are influenced by the variables leadership style, organizational culture and work motivation which are described in the structural equation below. z1 = 0.684 x z2 = 0.564 x y = 0.305 x + 0.300 z1 + 0.425 z2 hypothesis test to answer the research hypothesis, the t-statistics can be seen in table 6 below: source: appendix 6 based on the results of hypothesis testing, the following results are obtained: 5 1) leadership style has a significant influence on organizational culture, because the t statistic is equal to9,481which means greater than 1.96. thus the hypothesis "leadership style has a significant effect on the organizational culture of the employees of the government bureau and regional autonomy of the regional secretariat of east java province ", declared accepted. 2) leadership style has a significant influence on work motivation, because the statistical t value is equal to 4,793 which means greater than 1.96. thus the hypothesis "leadership style has a significant effect on employee motivation in the government bureau and regional autonomy regional secretariat of east java province ", declared accepted. 3) leadership style has no significant effect on employee performance, because the statistical t value is 1,911, which is less than 1.96. thus the hypothesis "leadership style has a significant effect on employee performance in the government bureau and regional autonomy regional secretariat of east java province ", stated as accepted. 4) organizational culture has a significant influence on employee performance, because the statistical t value is equal to2076which means greater than 1.96. thus the hypothesis "organizational culture has a significant effect on employee performance in the government bureau and regional autonomy regional secretariat of east java province, declared accepted. 5) work motivation has a significant influence on employee performance, because the statistical t value is equal to3,272 which means greater than 1.96. thus the hypothesis "employee motivation has a significant effect on the employee performance of the government bureau and regional autonomy regional secretariat of east java province, declared accepted. structural model testing (inner model) in assessing the model with pls begins by looking at the r-square for each dependent latent variable. changes in the r-square value can be used to assess the effect of certain independent latent variables on the dependent latent variable whether it has a substantive effect. for endogenous latent variables in a structural model that has an r2 of 0.75 indicating that the model is "strong", an r2 of 0.50 indicates that the model is "moderate", an r2 of 0.25 indicates that the model is "weak" (ghozali, 2016) . the pls output is as explained below: table 7 r-square value based on the results of testing the r-square value above, it can be interpreted that the independent variable leadership style that influences organizational culture has an r2 value of 0.468 which indicates that the model is weak. then the leadership style variable in influencing work motivation has an r2 value of 0.318 which also indicates that the model is weak. meanwhile, the independent variables of leadership style, organizational culture, and work motivation, which affect the employee performance variable, have an r2 value of 0.721 which indicates that the model is "strong". the suitability of the structural model can be seen from q2, as follows: q2 = 1 – [(1 – r1)*(1 – r2)*(1 – r3)] = 1 – [(1 –0.468)*(1 – 0.318)*(1 – 0.721)] = 1 – [(0.532)*(0.682)*(0.279)] = 1 [0.101] = 0.899 iv discussion the influence of leadership style on organizational culture based on the results of the study, it was found that leadership style effect on organizational culture of the bureau of government and regional autonomy regional secretariat of east java province, because the statistical t value is equal to9,481which means greater than 1.96, which means that organizational culture can be formed with a good leadership style. this means the hypothesis that reads "leadership style has a significant influence on employee organizational culture bureau of government and regional autonomy regional secretariat of east java province”, declared accepted. referring to the results of hypothesis testing that has been done, leadership style has an important role in influencing how culture is created in an organization. so that if the bureau of government and regional autonomy regional secretariat of east java province if you want to create a good culture in the organization, it is very important for agency leaders to be better at leading. the results in this study are in line with the findings of research conducted by ristian et al (2021) who found in their research that leadership style can improve organizational culture. the effect of leadership style on employee motivation based on the results of the study, it was found that leadership style significant effect on motivation of government bureau employees and regional autonomy regional secretariat of east java province, because the statistical t value is equal to4,793which means greater than 1.96, which means that employee motivation can be formed with a good leadership style. this means the hypothesis that reads "leadership style has a significant influence on employee organizational culture bureau of government and regional autonomy regional secretariat of east java province”, declared accepted. by looking at the results of the hypothesis that has been done, the result is that leadership style has a significant effect on employee motivation in a positive direction. this positive influence can be interpreted that the better the leadership style applied, the more it can increase employee motivation. so if the bureau of government and regional autonomy regional secretariat of east java province wants 6 to increase employee motivation at work, it is very important for agency leaders to improve their abilities so that they are better at applying leadership styles. the results in this study support the findings of a study conducted by dunan et al (2020) which proved in their research that there is a partially positive and significant influence between leadership style and work motivation. the effect of leadership style on employee performance based on the results of the study, it was found that leadership style not significant effect on performance of government bureau employees and regional autonomy regional secretariat of east java province, because the statistical t value is equal to1911which means less than 1.96, which means that employee performance may not necessarily be formed in the presence of a good leadership style. this means the hypothesis that reads "leadership style has a significant effect on the performance of the employees of the government bureau and regional autonomy of the regional secretariat of east java province”, was declared not accepted. leadership describes the relationship between the leader (leader) and those who are led (follower) and how a leader directs followers will determine the extent to which followers achieve the goals or expectations of the leader (muqtashid, 2016). this is in accordance with the findings in this study, where a good leadership style will increasingly be able to improve employee performance. so if the bureau of government and regional autonomy regional secretariat of east java province wants to improve the performance of each employee, then it is very important for agency leaders to be better at leading. the results of this study are not in line with the findings of belulu (2020) which proves that leadership can have positive and negative effects on performance. the same result was also proven by permana (2020) who found in his research that leadership style affects employee performance. the effect of organizational culture on employee performance based on the results of the study, it was found that organizational culture significant effect on performance of government bureau employees and regional autonomy regional secretariat of east java province, because the statistical t value is equal to2076which means greater than 1.96, which means that employee performance can be formed with a good organizational culture. this means the hypothesis that reads "organizational culture has a significant effect on the performance of the employees of the government bureau and regional autonomy of the regional secretariat of east java province”, declared accepted. the results of testing the hypothesis proved that organizational culture can improve employee performance. organizational culture can be the basis of adaptation and the key to organizational success, so much research has been conducted to identify values or behavioral norms that can make a major contribution to organizational success. however, relatively few have tried to link organizational culture with important human resource variables, especially employee performance (muqtashid, 2016). thus, the bureau of government and regional autonomy regional secretariat of east java province as an agency that wants to obtain a high level of employee performance requires a good and supportive organizational culture. the results of this study support the findings conducted by belulu (2020), who proved in his research that organizational culture and leadership style can have positive and negative effects on performance. the findings in this study are in contrast to the findings of research conducted by atikah and qomariah (2020) which proves that organizational culture has no significant effect on lecturer performance. the effect of employee motivation on employee performance based on the results of the study, it was found that employee motivation significant effect on performance of government bureau employees and regional autonomy regional secretariat of east java province, because the statistical t value is equal to3,272which means greater than 1.96, which means that employee performance can be shaped by the existence of employee motivation. this means the hypothesis that reads "employee motivation has a significant effect on employees of the government bureau and regional autonomy regional secretariat of east java province”, declared accepted. the findings in this study indicate that employee performance can be influenced by the level of motivation possessed by each employee. by looking at these results, it can be a reference for bureau of government and regional autonomy regional secretariat of east java province which in order to improve employee performance at work by increasing the provision of higher motivation and encouragement. the findings in this study are in line with the findings of research conducted by atikah and qomariah (2020), which proves that work motivation has a significant influence on employee performance. the same results were also proven by dunan et al (2020) where in their research it was proven that work motivation partially affects lecturer performance. v. conclusions and suggestions conclusion based on the results of the analysis obtained, the following conclusions can be drawn: (1) leadership style has a significant effect on the organizational culture of the employees of the government bureau and regional autonomy of the regional secretariat of east java province, because the statistical t value is equal to9,481which means greater than 1.96; (2) leadership style has a significant effect on the motivation of the employees of the government bureau and regional autonomy of the regional secretariat of east java province, because the statistical t value is equal to4,793which means greater than 1.96; (3) leadership style has no significant effect on the performance of the employees of the government bureau and regional autonomy of the regional secretariat of east java province, because the 7 statistical t value is 1,911 which means it is smaller than 1.96; (4) organizational culture has a significant effect on the performance of the employees of the government bureau and regional autonomy of the regional secretariat of east java province, because the statistical t value is equal to2076which means greater than 1.96; (5) employee motivation has a significant effect on the performance of the employees of the bureau of government and regional autonomy regional secretariat of east java province, because the statistical t value is equal to3,272which means greater than 1.96. suggestion based on the results of the analysis and discussion carried out, the researcher provides several suggestions that can contribute to increasing buyer satisfaction and for further research. the suggestions are as follows: 1) leaders are expected the bureau of government and regional autonomy of the regional secretariat of east java province can pay more attention to its ability to encourage employees to convey ideas and thoughts so that it will generate high motivation and have an impact on increasing employee performance; 2)it is hoped that future research that wants to research the same topic will be able to use other variables that can affect the level of employee performance so that they can develop the research results that have been obtained in this study. bibliography [1.] atikah, k., & qomariah, n. (2020). the effect of leadership style and organizational culture and work motivation on lecturer performance. journal of business management review, 1(3), 145–154. [2.] dunan, h., redaputri, a. p., & jayasinga, h. i. (2020). the effect of leadership style, organizational culture, and job satisfaction on work motivation and its implications in the performance of tenured faculty. international journal of scientific & technology research, 9(3), 6751–6764. [3.] ghozali, i. (2016). aplikasi analisis multivariete dengan program. ibm spss 23 (edisi 8). cetakan ke viii. semarang : badan penerbit. [4.] handoko, t. hani. (2016). manajemen. yogyakarta : bpfe. [5.] kartono, k. (2015). patologi sosial 1 (2nd ed.). jakarta: rajawali pers. [6.] mangkunegara, a. p. (2017). manajemen sumber daya manusia perusahaan (14th ed.). bandung: remaja rosdakarya. [7.] mulyadi, d. (2015). perilaku organisasi dan kepemimpinan pelayanan : konsep dan aplikasi adminitrasi, manajemen & organisasi modern. bandung: alfabeta. [8.] permana, r. (2020). pengaruh gaya kepemimpinan, penempatan pegawai dan lingkungan kerja terhadap kinerja dimediasi motivasi. jurnal agriwidya, 1(3), 140–155. [9.] robbins, s. p., & coulter, m. (2010). manajemen (10th ed.). jakarta: erlangga. [10.] robbins, s. p., & judge, t. a. (2015). organizational behavior. pearson. retrieved from https://books.google.co.id/books?id=cbz6nqeacaaj [11.] sanyang, c. (2019). pengaruh gaya kepemimpinan, budaya organisasi dan motivasi kerja terhadap kinerja pegawai (studi di sekretariat daerah kabupaten minahasa tenggara. jurnal riset bisnis dan manajemen, 7(1), 71–90. [12.] sekaran, u., & bougie, r. (2017). metode penelitian untuk bisnis: pendekatan pengembangan-keahlian (6th ed.). jakarta: salemba empat. [13.] sulistiyani, a. t. (2011). memahami good governance: dalam perspektif. sumber daya manusia (rev). yogyakarta: gava media. [14.] tika, m. p. (2014). budaya organisasi dan peningkatan kinerja perusahaan. jakarta: bumi aksara. [15.] wulandari, r. d. (2016). pengaruh budaya organisasi, disiplin kerja, serta gaya kepemimpinan terhadap kinerja karyawan agroteknopark kabupaten ogan ilir. muqtashid, 1(1), 115–129. 26 mochamad mochklas1), sandra oktaviana pinaraswati2), teguh setiawan3) how motivation works, indonesian employees in foreign companies ? sinergi, volume 8 number 2 september 2018 abstract to achieve company goals, employees need to be motivated so that they can carry out their duties responsibly and without coercion. the purpose of this study is to find out how employee work motivation works in foreign companies, by knowing the motivation of employees of foreign entrepreneurs can formulate the needs desired by local workers so that their loyalty and performance increases. this research method is descriptive analysis, where the population of this research is employees who work in foreign company south korea, with sample size 229 people. the results of this study indicate that extrinsic motivation is more dominant influence employee work motivation, employee intrinsic motivation more dominant to fulfill requirement of daily life, and employee extrinsic motivation more dominant to get award. kata kunci:work motivation, intrinsic motivation, extrinsic motivation how motivation works, indonesian employees in foreign companies ? mochamad mochklas1) ,sandra oktaviana pinaraswati2) , teguh setiawan3) 1)faculty of economics and business, university of muhammadiyah surabaya, indonesia e-mail : mmochklas@fe.um-surabaya.ac.id 2)dr. soetomo university, surabaya, indonesia e-mail : sandra.oktaviana@unitomo.ac.id 3 )high school of economics of mahardhika surabaya, indonesia e-mail : teguh_setiawan10@yahoo.com submit : 30th june 2018 , revised : 4th september 2018 , accepted : 5th september 2018 i. intriduction companies and employees are two things that can not be separated, employees have a very important role in carrying out the life of the company and employees are active actors in every activity of the organization. differences of interests that differentiate employee and employee motivation (devi, 2009), because it creates a work motivation that is very important direction for the common goal of business continuity and peace of mind that become a common goal can be realized. employees who understand and accept company goals will feel in accordance with him will feel responsible in realizing the goals of the company. in order to increase loyalty, creativity and employee participation need motivation (hasibuan, 2014: 137). between permanent and non-permanent employees the motivation for achievement is no difference (sarianti dan sari, 2008). work motivation is influenced by personal circumstances, situational and social factors (hossain and hossain, 2012). leaders who can create a conducive working atmosphere and reward employees can make employees more attached to the company (jing-zhou et al., (2008), motivational leaders can make employees do the job well (omar et al., 2010) , to increase the psychological satisfaction of the employee should consider the needs of employees (ding et al., 2012), according to muchtar (2016), motivation to contribute to environmental performance, while purwaningsih and noermijati (2015) said that financial and nonfinancial compensation significant to employee loyalty. according to (rochman, et al., 2016), expatriate leaders play a role in the fulfillment of social needs, appreciation, and self-actualization. the constraints faced by expatriates in the fulfillment of social needs, appreciation and self-actualization is communication. factors that motivate indonesian employees working in japanese companies are salary, old-age benefits, health, accidents, death 27 mochamad mochklas1), sandra oktaviana pinaraswati2), teguh setiawan3) how motivation works, indonesian employees in foreign companies ? sinergi, volume 8 number 2 september 2018 and long-term job security, they feel welcome, motivated, involved in the decision-making process, feel the prestige, the facilities they receive and the opportunity to study (cape, 2013). according to chang and chang (1994: 136) korean companies are an extension of the family and have the same relationship as a family. the style of expatriate leadership of south korea is more dominant in authoritarian (mochklas, 2017). corporate rewards to employees consider seniority and ability (lee, 2012). the purpose of this researcher to find out how the motivation of employees working in korean companies. by knowing the motivation of the workers, the foreign businessmen can apply whatever needs are desired by local workers, so as to increase their loyalty and performance. ii. literature review motivation is a desire to perform activities as a manifestation of the willingness to expend all the ability to achieve organizational goals that dilation by the desire to meet an individual needs (robbins, 2003: 55). motivation is a driving force in a person appearing on psychological symptoms, feelings, and also emotions (pinaraswati, 2018). according to saydam (2005: 227) work motivation is a whole series of stimulation processes to employees so that employees willing to work voluntarily. hasibuan (2014: 95) states that the motivation of work is the provision of driving force that can make employees willing to work together, work discipline, work effectively and integrated to achieve satisfaction and high loyalty. motivation of work is a process of encouragement to employees to direct behavior in carrying out their duties and responsibilities with no coercion to achieve company goals, which is fulfilled by the fulfillment of the needs of employees. there is no single motivational technique that is effective for all employees in the company, this is due to the different characteristics of each employee. motivation as an employee psychological process is influenced by intrinsic and extrinsic factors (saydam, 2005: 333). intrinsic motivation is the driving force of work that comes from within the employee as an individual, in the form of awareness of the importance of working to meet the needs of life, to earn environmental awareness and is an application of education that has been received. extrinsic motivation is the driving force of work that comes from outside the employee as an individual, in the form of a condition that requires carrying out the work to the fullest and full responsibility. suppose a dedicated employee in a job because of high salary wages, honorable positions, praise has power, penalty sanctions and raises employee status. an employee reinforces a work motivation aimed at performing an employee’s work activities to choose and strive to achieve his ultimate motivational goals and not to achieve his low motivational goals. iii. research methods this research method is descriptive research. the population in this study were employees who worked in foreign companies owned by south korea, with a sample size of 229 people. to obtain data about employee work motivation, distributed questionnaires with rating scale model with a range of values 1-5. data entered and according to the criteria then analyzed by using descriptive analysis technique. operational definition of work motivation in this study is a psychological process that occurs in an employee who can affect himself in carrying out the work, namely intrinsic motivation and extrinsic motivation. the intrinsic motivation indicator is to work to meet the needs of life, work according to education and to gain an environmental award. while extrinsic motivation indicator is working to get salary, position, award, avoid sanction and to increase employee status. iv. research result 1. economic region before further analysis, first tested the instrument (questionnaire) consisting of validity and reliability test. this test is required to ensure that the questionnaire used meets the requirements of the measurement and reliability of the questionnaire. the result of validity test for each statement indicator on research variable by using pre-sampling data as much as 30 respondents. result of validity 28 mochamad mochklas1), sandra oktaviana pinaraswati2), teguh setiawan3) how motivation works, indonesian employees in foreign companies ? sinergi, volume 8 number 2 september 2018 test of all indicator of statement that measure work motivation variable as shown in table 1. table 1. test validity variable motivation work source: data processed researchers result of validity test on work motivation variable shows pearson r value greater than r value of 0.361, so from this result can be concluded that every indicator has good ability in measuring work motivation variable. or in other words each of the above indicators can be said to be valid. furthermore the reliability test results showing the extent to which a reliable gauge is shown in table 2. table 2. test reliability source: data processed researchers in table 2, the cronbach alpha value is greater than 0.6. from this result can be concluded that data from variables of intrinsic motivation and extrinsic motivation in this research can be stated reliable. the results of this reliability test show that consistency of measurement results of intrinsic motivation and extrinsic motivation variables showed the level of determination and accuracy of the results. with descriptive analysis can give description about data of research result. in the description of respondents ‘answers is done by calculating the average value of respondents’ answers to each indicator divided into five levels: 1) very low (average 1.00-1.80), 2) low (average 1.81-2.60), 3) enough (average 2.61-3.40), 4) good (average 3.41-4.20) and 5) very good (average 4.21-5.00). respondents’ answers on each indicator of work motivation variable in this study, as shown in table 1. table 3. description variable motivation work source: data processed researchers from table 3, it can be seen that the highest perception of respondents regarding work motivation lies in the dimension of extrinsic motivation of 4.03. respondents’ perceptions of the highest intrinsic motivation indicator is working to meet the daily needs of 4.09. while the perception of respondents to the highest extrinsic motivation dimension is to work to get an award of 4.22. v. discussion the results of this study support the results of previous research hafiza et al., (2011), sandhya and kumar (2011) and trivellas et al., (2010) that employee motivation is more on extrinsic motivation than intrinsic. while research ulfa et al., (2013) that the intrinsic conditions of existing work within the company can serve as a motivator for employees more to perform the maximum work performance, automatically job performance will also be high and of course employees in carrying out duties and responsibilities in accordance with what which is ordered by the boss and can achieve maximum results as expected by the company. giving encouragement as a form of motivation, it is important to increase employee’s passion to achieve the desired result by management. 29 mochamad mochklas1), sandra oktaviana pinaraswati2), teguh setiawan3) how motivation works, indonesian employees in foreign companies ? sinergi, volume 8 number 2 september 2018 in figure 1, intrinsic motivation is more reflected by the salary indicator, the motivation in the employees in working to get salary to meet the needs of daily life is highest. according to abadi et al., (2011) that intrinsic instruments are the expectations of employees when a good performance target then he will receive greater rewards. the dimension of extrinsic motivation is more reflected by the position indicator. employees are motivated to work in order to be promoted to positions. according to chowdhury (2008), employees will think if they are good, they believe will successfully occupy certain positions. meanwhile, according to tippet (2009), bonuses are extrinsic rewards that encourage award, because they have done a good job and valuable. employee morale will increase and work will be optimal if employees are motivated. high work motivation makes the employees have high spirit in work (mudayana, 2010). employees in motivated work can be seen from the level of attendance, employee discipline, job responsibilities. motivation by the leadership to subordinates is not so difficult, but in practice motivation is much more complicated. some of the causes of hasibuan (2014: 146) motivational complexity are: 1. unequal needs on every employee, and change over time. 2. leaders do not understand the attitude and behavior of employees 3. factors that exist within the personal personality itself such as personality, attitude, experience, culture, interests, expectations, desires, the environment that affects the employee’s personal. to keep employees motivated in working other factors should also be considered such as working conditions, employment relations, work culture. because these factors also affect employee performance. vi. conclusion from the results of research and discussion can be taken some conclusions, namely: 1. extrinsic motivation is more dominant in affecting the work motivation of employees who work in foreign capital companies of south korea 2. intrinsic motivation of employees in work because to meet the needs of everyday life. 3. extrinsic motivation of employees in working to get the award from the leadership and company. vii. suggestion each employee will understand and accept the company’s goals if the motivation given by the company according to him, the employee will also be responsible in realizing the company’s goals. to motivate employees the leaders of the company able to formulate the needs of workers. to improve the skills to carry out effective and efficient work, the leader must increase the expectation of the employee by opening up opportunities for local employees to be able to occupy certain 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employee motivation and its impact on employee loyalty. world applied sciences journal 8 (7): 871-873 [16] pinaraswati, sandra oktaviana. 2018. the effect of culture and psychological to the trust and decision of students choose a management study program. international journal of civil engineering and technology 9(3): 996–1007 [17] purwaningsih, u. dan noermijati. 2015. pengaruh kompensasi finansial dan non finansial terhadap kepuasan kerja dan loyalitas kerja karyawan (studi pada karyawan hotel pelangi malang, jawa timur). http://jimfeb.ub.ac.id/ index.php/jimfeb/article/ view/1747 7 jul 2015 (02:21) [18] robbins, s.p. 2003. perilaku organisasi jilid 2. edisi 9. penerjemah tim indeks. jakarta [19] rochman, a.f., m. al musadieq dan a. prasetya. 2016. peranan manajer asing dalam memotivasi karyawan lokal (studi pada production preparation department pt. |xyz). jurnal administrasi bisnis 32(1): 148-155 [20] sandhya, k. dan d. p. kumar. 2011. employee retention by motivation. indian journal of science and technology 4 [21] sarianti, r., dan d.e. sari. 2008. perbedaan motivasi berprestasi atas dasar status karyawan dan tingkat pendidikan di pt. nim (nusantra indah makmur) padang. jurnal ekonomi dan bisnis 3(2): 147-153 [22] saydam, g. 2005. manajemen sumber daya manusia: suatu pendekatan mikro. djambatan. jakarta [23] tanjung, a.n. 2013. motivasi pekerja indonesia yang bekerja di perusahaan jepang di surabaya ditinjau dari shuushin koyou seido. japanology 1(1): 34 – 44 [24] tippet, j. dan r. kluvers. 2009. employee rewards and motivation in non profit organisations: case study from australia. international journal of business and management 4(3): 7-14 [25] trivellas, p., n. kakkos dan p. reklitis. 2010. investigating the impact of motivation on loyalty and performance intentions in the greek banking sector, 7th international conference on enterprise systems, accounting and logistics (7th icesal 2010) rhodes, greece 28-29 june 2010 [26] ulfa, m., k. rahardjo dan i. ruhana. pengaruh kompensasi terhadap motivasi kerja dan kinerja karyawan (studi pada karyawan auto 2000 malang sutoyo). jurnal administrasi bisnis 3(1): 1-11 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 1 harlina meidiaswati1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange , harlina meidiaswati1*), nur laila zamila2 1*)faculty of economics and business, state university of surabaya, jl. ketintang no.2, surabaya 2department of management, faculty of economics and business, university of hayam wuruk perbanas, jl. wonorejo utara 16 rungkut, surabaya, indonesia email: 1*)harlinameidiaswati@unesa.ac.id abstract firm value is very important for managers and investors. to increase the value of the firm, managers are required to be able to make the right financial decisions, which include investment decisions, funding decisions, and dividend policies. the purpose of this study is to analyze the effect of investment decisions, funding decisions, and dividend policy on firm value in food and beverage companies listed in the indonesia stock exchange period 2017-2020. the sample used in this study were 12 companies. the sampling technique used was purposive sampling method. the analysis technique used is multiple linear regression. the results of this study indicate that simultaneously investment decisions, funding decisions, and dividend policy affect firm value. but partially, investment decisions have negative insignificant effect on firm value, funding decisions have positive significant effect on firm value, and dividend policy has positive significant effect on firm value. keywords: investment decisions, funding decisions, dividend policy, firm value i. introduction the company's goal in the short term is to make a profit, and in the long term it is to prosper the owners or shareholders through increasing the value of the company. according to indrarini (2019:2) firm value is the investor's perception of the level of success of managers in managing company resources that can be linked to stock prices. company value is important for companies because an increase in company value will be followed by an increase in share prices which reflect an increase in shareholder prosperity (indrarini, 2019:2). the decisions of financial managers include investment decisions, funding decisions, and dividend policies to reflect their performance which will appear on the value of the company. meanwhile, for investors the value of the company is a perception of the company. investment decisions are the actions of financial managers to allocate a number of funds in various forms of investment in the hope of obtaining profits in the future. investment decisions are decisions related to the process of selecting one or more investment alternatives that are considered profitable from a number of investment alternatives available to the company (sudana, 2019:5). high corporate profits will affect the interest of investors to invest and increase investor confidence to invest. investment returns that provide better income will make investors more confident if the company's performance is good. the increase in investment made by investors will increase the share price, and increase the value of the company. research by sartini and purbawangsa (2014); rafika and santoso (2017); muharti and anita (2017); patricia et al. (2019); khotimah (2020) states that investment decisions have a positive effect on firm value. while research by arizki et al. (2019) shows that investment decisions have a negative effect on firm value. this condition can occur because investors tend to avoid sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 2 harlina meidiaswati 1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange company shares whose investment value is high and is not matched by adequate returns. the more investors who avoid buying shares of a company or the number of investors who sell their shares, the stock price will decrease and the value of the company will also decrease. this is because the value of the company is formed from the price and number of shares outstanding with the assumption that the number of shares is fixed, if the price drops, the value of the company will also decrease. funding decisions are important for a company, especially in the company's operational activities. companies need funding to run and develop the company's business. the purpose of funding decisions is to determine the optimal source of funds to finance various investment alternatives, so that the value of the company reflected in its share price can increase. according to sudana (2019:5) funding decisions are related to the process of selecting the source of funds used to fund the planned investment from various alternative sources of funds available in order to obtain the most efficient combination of spending. the source of funds in the company is very important in business development and can provide smooth operations of the company. sources of funds from the company can come from the company's internal, namely retained earnings and external that can be obtained from debt. funding a company with debt can reduce the amount of tax that must be paid by the company. funding decisions have a positive effect on firm value. if the company can manage its debt sources well, it will increase profits for the company. investors will be more interested in buying company shares whose profit value increases. this statement is supported by research conducted by sartini and purbawangsa (2014), rafika and santoso (2017), muharti and anita (2017). however, research conducted by arizki et al. (2019), patrisia et al. (2019), and sulaeman (2020) state that higher funding decisions will reduce firm value. companies that are getting bigger are using more sources of debt funds. utilization of debt if it cannot be managed properly, will cause losses even though there are tax savings. this is because the greater the debt, the greater the burden of paying interest on the debt. the profits received by investors fell, causing it to be unattractive to invest in the company. this condition will be followed by a decline in stock prices and company value. dividend policy determines how much profit investors will get. according to sudana (2019:5) dividend policy is a decision related to determining how much of the profit after tax obtained by the company will be distributed as dividends to shareholders. investors in investing their funds have a goal, namely to obtain income (return) in the form of dividends and capital gains. regarding dividend income, investors generally want a relatively stable dividend distribution. according to sandy and asyik (2013) a relatively stable dividend distribution can increase investor confidence in the company, because it will reduce investor uncertainty when investing their capital or funds in the company. dividends distributed by the company will give confidence to investors and become an attraction for investors to invest. the higher the dividend distributed to investors, the higher the value of the company will also increase the share price. the positive relationship between dividend policy and firm value is evident in studies conducted by sartini and purbawangsa (2014), muharti and anita (2017), arizki et al. (2019), patrisia et al. (2019). however, research conducted by rafika and santoso (2017) gives different results, namely the higher the dividend distributed, the value of the company will decrease. this can happen because investors prefer capital gains on the grounds that they can delay paying taxes, so investors will not expect high dividend payments. food and beverage companies are interesting to study because this industry has considerable economic potential in indonesia. the food and beverage industry is one of the mainstay manufacturing sectors in making a major contribution to national economic growth (ministry of industry, 2019). in 2017 the value of food and beverage exports increased amid global competition, reaching usd 11.5 billion compared to 2016 which was valued at usd 10.43 billion. meanwhile, the growth rate of the food and beverage industry in 2017 reached 9.23 percent above the national gdp growth of 5.07 sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 3 harlina meidiaswati1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange percent (ministry of industry, 2018). for foreign investors, the food and beverage industry is still the main attraction, as evidenced by the total foreign direct investment (fdi) in the food and beverage sector reaching us$ 0.97 billion in the first quarter of 2021 or growing 224% (yoy). this figure is close to the realization of fdi for the food and beverage industry in 2020 of us $ 1.60 billion. even during the pandemic, the demand for food and beverage exports did not decline. in 2020, exports of food and beverage products indonesia rose 14.14% (yoy) to us$ 31.09 billion. moreover, the existence of the covid-19 pandemic still has a significant effect on the food and beverage industry (andi, 2021). ii. literature review signaling theory signaling theory is a theory derived from the belief that information on a company's is not available to all parties at the same time. signals are actions taken by companies to send information to investors about how the company's prospects are (brigham and houston, 2014: 186). signals sent to investors can be in the form of information such as the company's financial statements and the company's prospects in the future. for investors, this information is a signal that can be considered in making investment decisions. good information sent by the company is a positive signal that will increase the share price and value of the firm. investment decisions and the effect on firm value according to indrarini (2019:5) the value of the firm is something that is very important for the company because an increase in the value of the firm will be followed by an increase in share prices which reflect an increase in the prosperity of shareholders. value of the firm can be measured by tobin's q. basically, tobin's q shows the relationship between stock market value and debt value compared to total assets. the value of the shares in the stock exchange is influenced by various factors, including investment decisions, funding decisision and dividend policy (sartini and purbawangsa, 2014; rafika and santoso, 2017: muharti and anita, 2017; patrisia et al., 2019; khotimah, 2020; arizki et al., 2019; sulaeman, 2020). investment decisions related to the process of selecting one or more profitable investment alternatives from a number of investment alternatives available to the company (sudana, 2019:5) or allocation of funds to various investments to generate profits in the future. according to afzal & rohman (2012) the purpose of investment decisions is to gain profits with a certain risk in order to optimize the value of the company. expenditure for company investment is very important to be taken into account in order to increase the value of the firm. investment spending can be a positive signal about the company's growth in the future. this positive signal will attract investors to invest in the company by buying shares so as to encourage an increase in stock prices and company value. the results of a good investment decision of the company will have a positive impact on the value of the company. a positive impact occurs if the investment returns provide better income for the company which makes investors more confident if the company's performance is good. high corporate profits will increase investor confidence and investor interest in investing in the company. increasing investment desire from investors will increase stock prices as well as firm value as research conducted by sartini and purbawangsa (2014), rafika and santoso (2017), muharti and anita (2017), patrisia et al. (2019), khotimah (2020). h1: investment decisions have a significant effect on firm value. funding decisions and the effect on firm value funding decisions are the responsibility of a manager to raise funds when the company needs funds to invest. according to van horne and wachowicz (2012: 365) in funding decisions, managers are required to make decisions or consider various economic resources for the company. if the funding decisions made by the company are getting better, it will have a positive impact on increasing the value of the company. if the company can manage its debt sources well, it will increase profits for the company. funding decisions can be measured by the sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 4 harlina meidiaswati 1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange debt to equity ratio (der) which compares the amount of debt with equity. investors will be more interested in buying company shares whose profit value increases. this statement is supported by research conducted by sartini and purbawangsa (2014), rafika and santoso (2017), muharti and anita (2017), khotimah (2020) which state that funding decisions have a positive effect on firm value. however, according to arizki et al. (2019), patrisia et al. (2019), sulaeman (2020) funding decisions have a negative effect on firm value. this means that the larger the company uses debt funds, if it is not able to manage it properly, it will lose even though there are tax savings because the greater the interest payments on debt. the profits received by investors fell, causing it to be unattractive to invest in the company. this condition will be followed by a decline in stock prices and company value. h2: funding decisions have a significant effect on firm value . dividend policy and the effect on firm value dividend policy is a decision related to determining how much of the profit after tax obtained by the company will be distributed as dividends to shareholders (sudana, 2019:5). dividend policy determines how much profit investors will get. the higher the distribution of dividends to shareholders, there will be a tendency for the company's stock price to increase. investors in investing their funds have a goal, namely to obtain income (return) in the form of dividends and capital gains. regarding dividend income, investors generally want a relatively stable dividend distribution. according to sandy and asyik (2013) a relatively stable dividend distribution can increase investor confidence in the company, because it will reduce investor uncertainty when investing their capital or funds in the company. dividend policy has a positive effect on firm value, meaning that the higher the dividend distributed to investors, the higher the firm value. dividends distributed by the company will give confidence to investors and attract investors to invest. if the investment interest is greater, it will affect the share price to increase, so that the value of the company will also increase. this statement is supported by research conducted by sartini and purbawangsa (2014), muharti and anita (2017), arizki, et al. (2019), patrisia et al. (2019), solomon (2020). in contrast, according to rafika and santoso (2017) dividend policy has a negative effect on firm value because investors prefer capital gains because they can delay paying taxes, so investors will not expect high dividend payments. h3: dividend policy has a significant effect on firm value. iii. research methods data and sample samples of twelve companies were taken using purposive sampling technique from of food and beverage companies listed on the indonesia stock exchange (idx) in 2017-2020. this study uses secondary data from the financial statements of companies that are going public on the indonesia stock exchange in 2017-2020. the data was taken using documentation techniques from the official website of the indonesia stock exchange (www.idx.co.id) and other relevant sources. variables and measurements: firm value, is the investor's perception of the manager's success in managing company resources and is associated with stock prices (indrarini, 2019:2), in this study measured by tobin`s q with the formula: 𝑇𝑜𝑏𝑖𝑛′𝑠 𝑄 = 𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑙𝑙 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝑠ℎ𝑎𝑟𝑒𝑠 + 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 investment decisions, related to the process of selecting one or more investment alternatives that are considered profitable from a number of investment alternatives available to the company (sudana, 2019:5), in this study proxies using total asset growth (tag), which is calculated by the formula: 𝑇𝐴𝐺 = 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 (𝑡) − 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 (𝑡 − 1) 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 (𝑡 − 1) sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 5 harlina meidiaswati1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange funding decisions, related to the process of selecting alternative sources of investment funds that are planned from various alternative sources of funds available so that the most efficient combination of spending is obtained (sudana, 2019:5), in this study proxies using the debt to equity ratio (der), calculated by the formula: 𝐷𝐸𝑅 = 𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑎𝑠 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 dividend policy, is a decision related to determining how much of the profit after tax obtained by the company will be distributed as dividends to shareholders (sudana, 2019:5), in this study proxied by the dividend payout ratio (dpr), which is calculated by the formula: 𝐷𝑃𝑅 = 𝐷𝑖𝑣𝑖𝑑𝑒𝑛 𝑡𝑢𝑛𝑎𝑖 𝑃𝑒𝑟 𝐿𝑒𝑚𝑏𝑎𝑟 𝑆𝑎ℎ𝑎𝑚 𝐿𝑎𝑏𝑎 𝑃𝑒𝑟 𝐿𝑒𝑚𝑏𝑎𝑟 𝑆𝑎ℎ𝑎𝑚 analysis model testing the effect of investment policy, funding policy and dividend policy on firm value is carried out using multiple linear regression analysis, with the following equation: 𝑌 = 𝛼 + 𝛽1. 𝐾𝐼 + 𝛽2. 𝐾𝑃 + 𝛽3. 𝐾𝐷 + 𝑒 keterangan: y = value of the firm α = constant β1, β2, β3 = regression coefficient ki = investment decision kp = funding decision kd = dividend policy e = error prior to the regression test, the classical assumption test was carried out to obtain the blue (best, linear, unbiased, estimate) model criteria. classical assumption test consists of: normality, multicollinearity, autocorrelation, and heteroscedasticity. the next step is to test the hypothesis both partially and simultaneously. iv. analysis and discussion statistical description table 1 shows that the minimum value for the firm value variable is pt budi starch & sweetener tbk (budi) in 2020 of 0.704 times. the maximum value of tobin`s q variable is 6.066 belonging to pt campina ice cream industry tbk (camp) in 2017. this means that compared to the other sample companies, the equity market value of pt campina ice cream industry (camp) is higher than its book value. the average value (mean) of the firm value variable (tobin's q) is 2.16660 and the standard deviation is 1.172293, meaning that the data is homogeneous. table 1. dicriptive analysis variabel n min max mean std. devi ation value of the firm 48 0,70 4 6,066 2,16660 1,17 2293 investment decision 48 0,17 1 1,676 0,14162 0,28 1872 funding decision 48 0,13 0 2,416 0,76722 0,62 9050 dividend policy 48 0,12 0 2,516 0,43672 0,40 2997 source: spss output results table 1 shows that the minimum value for the investment decision variable proxied by total asset growth (tag) of -17.1% is owned by pt campina ice cream industry tbk (camp) in 2018. the minus value indicates the negative growth of campina ice cream industry tbk's assets. (camp) in 2018. negative growth of assets can occur because the company sells assets or the value of assets decreases. the maximum value of investment decisions measured by total asset growth (tag) is 167.6% belonging to pt indofood cbp sukses makmur tbk (icbp) in 2020. the value of investment decisions (tag) is high because in 2020 pt indofood cbp makmur tbk (icbp ) added assets. the average value (mean) of investment decisions (tag) is 0.14162 and the standard deviation is 0.218872, meaning that the data is heterogeneous. sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 6 harlina meidiaswati 1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange minimum value of funding decisions proxied by debt to equity ratio (der) 0.130 belonging to pt campina ice cream industry tbk (camp) in 2019. the value of the debt to equity ratio which is less than 1 indicates that pt campina ice cream industry tbk (camp)'s debt is smaller than its equity. while the maximum value of the funding decision is 2,416 belonging to pt tunas baru lampung tbk (tbla) in 2018. the debt to equity ratio value is greater than one, indicating that pt tunas baru lampung (tbla) debt is greater than its equity. the mean value of funding decisions is 0.76722, which is greater than the standard deviation of 0.629050, meaning that the data is homogeneous the minimum value of the dividend policy as proxied by the dividend payout ratio (dpr) of 12% is owned by pt ultrajaya milk industry and trading company tbk (ultj) in 2020. the value of 12% indicates that most of the net profit earned by the company is retained and used for the company's operational activities. the maximum value of the dpr is 251.6% owned by pt delta djakarta tbk (dlta) in 2020, meaning that the company distributes more dividends than its net profit. the mean value of dividend policy (dpr) is 0.43672, which is greater than the standard deviation of 0.402997, meaning that the data is homogeneous. multiple linear regression analysis and classical assumption test the results of the regression showed symptoms of classical assumptions. in order to meet the blue criteria (best, linear, unbiased, estimate) data transformation is carried out. the results of the regression test after passing the classical assumptions are shown in tables 2 and 3. table 2 shows the summary of the multiple linear regression test after passing the classical assumption test as shown in table 3. the summary of the classical assumption test as shown in table 3 shows that the regression model passed the normality,heteroscedasticity, multicollinearity and autocorrelation tests so that the model can be used as forecasting. table 2 regression result source: spss output results note: the significance of t *, **, *** shows statistical significance at the level of 10%, 5%, 1% tabel 2 show that investment decisions which are proxied by total asset growth (tag) have no effect on firm value. this happens because investors tend to avoid company shares with high investment value but are not matched by adequate returns. investors who avoid a company's shares will push down the share price and the value of the company will decrease because the value of the company is formed from the price and number of shares outstanding. the results of the study support arizki, et al. (2019) which states that investment decisions have no effect on firm value. however, the results of this study do not support the research conducted by khotimah (2020), patrisia et al. (2019), rafika and santoso (2017), muharti and anita (2017), and sartini and purbawangsa (2014) which state that investment decisions have a significant positive effect on firm value. funding decisions proxied by the debt to equity ratio (der) have a significant negative effect on firm value. although in theory the use of debt can be a tax saver, if the income derived from the use of debt is not greater than the cost of debt, it will pose a risk to the company. the risk of using debt occurs because high debt will increase the interest expense paid by the company. if the company's ability to generate profits from the use of debt is not greater than the cost of debt, then the company is unable to pay interest and principal, which causes losses. the profits that will be received by investors are getting smaller due to losses so that the company's attractiveness for investors to invest decreases. this condition will be followed by a decline in stock prices and company value. this result is in accordance with the signaling theory proposed by brigham and sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 7 harlina meidiaswati1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange houston, namely the higher the use of debt funds, the higher the interest expense. this causes the company's financial condition is not good because the company does not have the funds to pay interest and debt expenses. this signal is captured negatively by investors which makes the stock price fall as well as the value of the company. the higher the use of debt funds by the company, if it is not able to be managed properly, it will become a permanent burden for the company. the results of this study support the research of sulaeman (2020), arizki et al. (2019), and patrisia et al. (2019) which states that funding decisions have a significant negative effect. however, the results of this study do not support the research of khotimah (2020), rafika and santoso (2017), muharti and anita (2017), and sartini and purbawangsa (2014) which state that funding decisions have a significant positive effect on firm value. dividend policy which is proxied by the dividend payout ratio (dpr) has a significant positive effect on firm value. dividends distributed by the company will increase investor confidence in the management of the company and attract investors to invest. the high interest of investors to invest encourages share prices to increase, so that the value of the company also increases. the results of this study are in accordance with the bird in the hand theory proposed by gordon and litner where if the dividends distributed by the company are getting bigger, then the company's stock price will be higher and vice versa. this happens because the distribution of dividends can reduce the uncertainty faced by investors. this result is also in accordance with signaling theory where the dividends distributed indicate the company's financial condition is quite good and is able to finance its investment. this signal was received positively by investors which made the stock price rise as well as the value of the company. the results of this study support the research of sulaeman (2020), khotimah (2020), arizki et al. (2019), patrisia et al. (2019), rafika and santoso (2017), muharti and anita (2017), and sartini and purbawangsa (2014). table 3 summary of classical assumption test results source: spss output results simultaneous testing shows that investment decisions, funding decisions, and dividend policies have a significant effect on firm value. this result is supported by an r square of 25.4% which indicates that variations or fluctuations in firm value are influenced by investment decisions, funding decisions, and dividend policies. the results of this test support the research of sulaeman (2020), and arizki et al. (2019). the higher the company's funding decision as measured by the debt to equity ratio (der) indicates the greater the use of debt by the company which causes a smaller share of profits that can be distributed as dividends. this condition causes investors, especially those oriented to dividends, to be less interested in investing in company shares, so that the share price decreases and the company value also decreases. v. conclusion the purpose of this study was to determine the effect of investment decisions, funding decisions, and dividend policies on firm value. the results of the research show that funding decisions partially have a negative effect on firm value. conversely, dividend policy has a positive effect on firm value, while investment decisions have no effect on firm value. the ability of investment decisions, funding decisions, and dividend policies in explaining company value is small (25.4%). this study has limited data because not all food and beverage subsector companies distributed cash dividends during the observation period, so they had to be excluded from the sample. further research is suggested to use a different industry and extend the observation period in order to obtain more data. future researchers should consider testing other variables such as profitability to find out the factors that affect firm sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 8 harlina meidiaswati 1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange value. investors and potential investors need to consider the company's funding decisions and dividend decisions because these two variables significantly affect the company's value. reference afzal, a., & rohman, a. 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(2019). manajemen keuangan teori https://industri.kontan.co.id/news/tumbuh-245-di-kuartal-i-2021-industri-mamin-sanggup-bertahan-di-masa-pandemi https://industri.kontan.co.id/news/tumbuh-245-di-kuartal-i-2021-industri-mamin-sanggup-bertahan-di-masa-pandemi https://industri.kontan.co.id/news/tumbuh-245-di-kuartal-i-2021-industri-mamin-sanggup-bertahan-di-masa-pandemi https://kemenperin.go.id/artikel/18971/sektor-mamin-jadi-percontohan-implementasi-industry-4.0 https://kemenperin.go.id/artikel/18971/sektor-mamin-jadi-percontohan-implementasi-industry-4.0 https://kemenperin.go.id/artikel/18971/sektor-mamin-jadi-percontohan-implementasi-industry-4.0 https://kemenperin.go.id/artikel/20298/industri-makanan-dan-minuman-jadi-sektor-kampiun https://kemenperin.go.id/artikel/20298/industri-makanan-dan-minuman-jadi-sektor-kampiun sinergi : jur n al il miah il mu man ajemen , volume 13 number 1 m a r c h 2023 9 harlina meidiaswati1*), nur laila zamila2 investment decisions, funding decisions, dividend policy and their effect on the value of food and beverage companies on the indonesia stock exchange dan praktik. surabaya: airlangga universitiy press. sulaeman, m. (2020). pengaruh keputusan pendanaan, kebijakan dividen, dan profitabilitas terhadap nilai perusahaan. jurnal bisnis manajemen & ekonomi, 18(2), 240–250. van horne, j. c., & wachowicz jr, j. m. (2012). prinsip-prinsip manajemen keuangan. jakarta: salemba empat. 10 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 cultural csr in perceptions of cultural preservation osing ratna wijayanti daniar paramita1), muchamad taufiq2), noviansyah rizal3) stie widya gama lumajang e-mail: pradnyataj@gmail.com submit: 05 september 2017 , revised: 15 january 2018, accepted: 25 march 2018 abstract. aim of this study is to obtain a model of the development of corporate social responsibility culture that will be used by companies as a form of participation of indigenous cultural preservation osing tribe. this study analyzes the public response to the social awareness of the cultural aspects of the company, to explore and understand the cultural values that exist in society kemiren village for the preservation of indigenous culture. so the paradigm in this study is ethnometodology interpretive approach. the results of this research to the development of culture through the implementation of the ceremonies, each group of informants have the same perception, that the ceremony is a ritual and custom that must be implemented. the shape of the execution in accordance with the ritual that had been implemented, with funding coming from the individual and society through muphu (dues). to the development of culture through the development of art galleries, each group of informants have different perceptions; cultural actors:they feel the studio that they have never received funds, whether from the government or from the company. funding for the development of art galleries, either for exercise or to perform (b-fest or staging) is carried out by independent fee. cultural figures:they are self-financed owner of the art galleries, should they get help for example in the form of equipment. the government:government provides assistance in the form of actualization of art. the galleri was given the freedom to create and actualize in art. model csr developed in this study to seek the establishment of effective communication between the company, csr forum, council blambangan arts and cultural actors/ art galleries owner. with the development of the model is expected later csr funds disbursed by the company through art board blambangan (dkb) or directly to the cultural actors/ art galleries owner as sponsorship or development of art galleries can be precisely targeted. keywords: corporate social responsibility culture, custom culture osing, culture actors, art gallery i. introduction art osing tribe is unique and contains elements such mystical art balinese people and tenggertribe. one of the distinctive art of banyuwangi is gandrung is typical dances to welcome the guests. this dance has been used as a mascot of banyuwangi tourism. there is also patrol, dance seblang, damarwulan, angklung, barong dance, kuntulan, kendang kempul, janger, jaranan, jaran kincak, angklung gluttonous and jedor.there is also a tradition that is carried out every year, as the tradition of sea quotation, metik (rice and coffee), rebo wekasan, kebo-keboan, ruwatan, tumplek punjen, gredoan, endog-endogan and other traditions. the traditional customs are shown each year and packaged in the calendar of events. the government of banyuwangi regency is aware of the great cultural potential of the osing tribe by setting kemiren village in glagah district as a customary village that must maintain the osing cultural values. in this village there are native tribal villages and in this village they still maintain the traditions and values of their ancestors. kemiren village is a tourist destination that is quite popular among the people of banyuwangi and surrounding areas. cultural festivals and other annual art events are always held in this village. preservation of traditional cultural event in the form of performances are held regularly or held for welcoming guests and the implementation calendar of events certainly requires a lot of funds. during this time for a particular art show, in the village of 11ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 kemiren for example, people with self-executing. the funds obtained from the public voluntary donations. people felt compelled to carry out the traditional art performances or because it is a tradition passed down from generation to generation, so that the public did not object to mengeluaran funds to finance these activities. the preservation of culture is not only the responsibility of individuals or local communities to undertake, but a shared responsibility, community and local government. society in this case could be an individual or a company. individually community participation in cultural preservation can be a direct participation as an actor in the implementation of the tradition, donated funds or provide other forms of participation (site preparation, clothing or other equipment). while corporate participation in cultural preservation is participation in the form of funds known as corporate social responsibility (csr). the demands of applying the concept of corporate social responsibility (csr) and the demands on companies in the effort to implement social responsibility are important aspects. the company is no longer solely in pursuit of profits, but on the other hand, requires companies to set aside certain portions of corporate profits for csr activities. in the implementation of csr, the company is expected to have a business philosophy that the company becomes an integral part of the surrounding community. vice versa, the surrounding community becomes an integral part with the company. so both need to realize harmony and harmony of mutually beneficial relationships. one indication of the success of a company one of them is determined by the attention to the surrounding social environment. that is, the company’s commercial success is also seen from how the company manages social responsibility to the surrounding environment. however, the management of csr should be handled seriously and professionally, because not a few companies are experiencing prolonged conflict with the surrounding community. society around a company certainly diverse, considering indonesia is a very rich country in all things ranging from natural wealth, ethnicity and cultural wealth. one of the culture that is owned by art and culture of customary ritual. one form of art is the rites. this research is to understand corporate participation in the form of corporate social responsibility (csr) for the preservation of traditional ritual culture of osing tribe in banyuwangi which has a diversity of art that should be preserved. the osing tribe is different from other tribes in east java, this distinction allows the birth of different forms of potential so it needs special attention from the local government. this research problem is related to the research question which will be searched for answer in the research implementation: (1) is there real participation of local company in preservation of indigenous culture of osing tribe in kemiren village? (2) how can the model of csr culture be developed for the preservation of indigenous osing culture in kemiren village? the general objective of this research is to obtain a model of development of corporate social responsibility (csr) culture that will be used by local companies as a form of participation of osing tribe culture. there are two things that become urgency of this research, namely: (1) indigenous culture in banyuwangi is diverse and a cultural tradition that continues to be done by the community requires a lot of money so that the customary culture can continue to be preserved, (2) local companies should be able to providing real participation in the form of cultural csr to preserve the osing tribal custom culture ii. theory a. concept of corporate social responsibility (csr) corporate social responsibility (csr) [1] is the process of communicating the social and environmental impacts of economic activities of the organization to specific groups concerned and on society as a whole , disclosure of corporate social responsibility (csr) through sustainability reporting has become an important and particularly when making investment decisions are long-term, through performance reporting corporate social responsibility (csr) will reflect whether the company has been running a social accountability and environmental optimally or not, who at once will be revealed that the company concerned has been implementing best practices, norms of a healthy 12 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 business, initiative, consensus and commitment that agree or disagree with the legislation in force. besides, the company to be open and honest in the delivery of accurate information or reporting on the implementation of the program of corporate social responsibility (csr) to steakholder. ernst and young suggests that the company has four main responsibilities of employees, consumers, communities and the environment. fourth it can be a basic consideration for the company to establish a core program in implementing specific csr. there are nine programs to do the work the company in carrying out csr activities, namely: 1. employee programs the employee is a valuable asset for the company, so it is not surprising that companies are very concerned competency development and employee welfare. the attention to the welfare of employees need to be expanded not only in terms of health and safety guarantees, but need for expansion of programs such as work life balance programs and decision making empowerment program. 2. community and broader society the majority of companies have activities in this area, one of which is through community empowerment which in essence is how individuals, groups or communities are trying to control their own lives and seek to shape the future in accordance with their wishes [2]. implementation of community empowerment through: a). development projects that allow community members receive support in meeting the needs. b). campaigns and social action that enables these needs can be met by other parties responsible. c). environtment programs program relating to the maintenance of the environment, for example by producing products that are safe, harmless to health and environmentally friendly; making infiltration wells; and sewerage well. 4. reporting and communications programs the company issued or report the results of its csr activities through annual csr report, so there is real evidence of the company’s participation in carrying out its social responsibility. 5. governance or code of conduct programs corporate emphasize social activities carried out under a system regulated by the government. the main thing to note is how stakeholders,governments, communities, and businesses can make regulations or terms and conditions agreed to effective csr programs. this means that the necessary laws to regulate csr at the macro level as csr program objectives, program assessment standards of success, and coordination with relevant parties. 6. stakeholder engagement programs efforts to create ”effectiveengagement program” as a key to success csr strategy and sustainability strategy. 7. supplier programs fostering a good relationship based on trust, commitment, sharing of information between the company and its business partners, for example through the supply chain management or business networking. 8. customer / product stewardship programs the need for the company’s attention to consumer complaints and quality assurance of products produced by the company. 9. programs shareholder enhancement program “share value” for shareholders, as shareholders is a priority for the company. implementation of csr should be within the corridor of the company’s strategy to achieve the company’s business base. csr requires the development of a systematic and complex stages. the first phase, starting with efforts to look at and assess the needs of the community by identifying problems that occur and seek appropriate solutions. the second phase, action plans have been made along with your budget, schedule, evaluation indicators, and the necessary resources for the company. the third phase, monitoring activities through site visits or through surveys. the fourth stage, perform regular evaluation and reporting to be used as a strategy guide and further program development. evaluation also done by comparing the results of the evaluation of the company’s internal and external [3] i. the concept of value cultures understanding 13ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 cultural values indigenous cultural values are values that are agreed upon and embedded within a community, the scope of the organization, society rooted in habit, trust (believe), symbols and particular characteristics which can be distinguished from one and the other as a reference the behavior and the response has been over what’s going to happen or is happening (wikipedia indonesia: 2015) there are three aspects related to cultural values, namely: a. symbols, slogans or other visible by naked eye. b. attitudes, acts of behavior, rasping movements arising from the slogan, the motto of the c. belief embedded and ingrained into the frame of reference in the act and behave (not shown) culture is a way of life that developed and shared by groups of people and passed down from generation to generation, culture is made up of many complex elements, including religious and political system, customs, languages, tools, clothing, buildings and works of art. ii. culture of custom osing cultural value contained in osing tribe is highly value mutual cooperation, voluntary work with residents to promote unity, social gathering, silahturahmi or exchange visits and discordant contribute. kemiren village is one destination that is quite attractive in banyuwangi and surrounding community. various kinds of art can still be found as art barong, kuntulan, jaran kincak (horse dance), mocopatan (read ancient papyrus) as well as the majority gandrung infatuated famous dancer from the village kemiren. the communities in the district kemiren glagah banyuwangi have traditional cultural seblang. this dance is a ritual dance of praise and starting reinforcements made from generation to generation, carried out by a woman who was a girl. the dance was held after eid and eid al-adha. the process begins with the dancers enter the spirit and diakhirir with a procession of dancers followed by local people. the uniqueness of the village kemiren, the majority of the population kemiren have beds “mattress – (kasur-java language)” with the same motifs and colors which are black on top and bottom, red at the edges. this mattress will be owned by the bride and groom from their parents. it has its own philosophy, which means the color red as a repellent of custody and black symbolize the permanence in the household. at one moment the whole society kemiren issued the mattress to the drying kemiren along the village road. this tradition is called mepe kasur, according to local tradition traditional elders is done because the source of all diseases originate from the bed. this is done to repel all sorts of diseases. that tradition is a series tumpeng sewu “clean village ritual” that was conducted in dhulhijjah. crocogan, tikel / baresan, tikel cockscomb and attack is a type of tribal house using, where all four kinds of traditional houses can still be encountered in the village kemiren. the building the building is hundreds of years old. the building was designed to withstand earthquakes, with the main structure of the arrangement of four poles saka (wood) beam with sparring system without spikes(knokdown) but using paju (pasak pipih). each type of roof has a different meaning and privileges. differences custom home roof osing also have a different social status. privileged kemiren traditional village, still keep the traditions that has existed since their ancestors. barong ider bumi, tumpeng sewu, wine parade and art barong. coexist with the spirit of mutual cooperation, tradition sustained deliberation. in 2013 the community kemiren trigger event along with the name “ngopi sepuluhewu” iii. research method a. framework research plan type of research is a qualitative research using a case study approach (casestudy). in this study, used a case study approach to analyze the implementation of corporate social responsibility and the realization of culture performed by local companies towards the development of indigenous cultures in the district glagah around the company. this study also analyzes the public response to the social concerns of local companies from the cultural aspect. therefore, this study is to explore and understand the cultural values that exist in society kemiren village and explain the existence of the cultural values in an effort to the preservation of indigenous culture. so the paradigm in this study is ethnometodology interpretive approach. through this research are expected to be achieved the main goal of this research is a model of csr culture 14 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 as a form of real participation of local companies in preserving indigenous culture kemiren osing tribe in the village. researchers collected data through documentation (photos and videos) [4], perform in-depth interviews and field observations addressed to the local companies and communities located in the area of cultural actors kemiren village glagah subdistrict. local companies that could potentially provide social responsibility towards the preservation of tribal culture osing. the csr can provide benefits to communities around the company so it can happen simbiosisi mutuality in the relationship between the community and the company. b. sources and data collection techniques the research was conducted in community cultural actors in the village kemiren glagah district of banyuwangi. ethnometodology as a research approach that wants to unravel the social phenomenon required key informants will provide data, information, experience and others to address research problems. the informants of this study were divided into two: 1). the informant to uncover the cultural values including cultural actors, studio owner arts and traditional elders, to determine the source of funds used for any cultural performance is done either in the form of routine or held to welcome the guests. 2). informant to uncover the participation of local companies in the preservation of culture is the local company, a member of the arts council blambangan, journalist, department of tourism and member of the board, to determine the real role in the preservation of their cultural and regional policy. the identity of the informant who used only the initials to replace the actual name of the informant. data were collected by direct observation at the time of implementation of indigenous culture and at informal. the research instrument used is the indepth interview to the cultural actors who performed with the snowball method. tops of all it will take a cultural actors who play an active part in cultural activities and events customs districts. furthermore, based on the informant information will be found another informant. interviews were also conducted in-depth to explore the data to a local company, government tourism office, members of art board of blambangan (dkb) and board members and community leaders. in addition, data collection techniques are also done through observation and documentation, observation and documentation is done to get a picture of the general condition of the local company and the implementation of the indigenous culture. depth interviews were conducted to learn more about the application and csr budget, funding for indigenous cultural activities, participation / support of the local company. the secondary data to complement the general picture of local companies and cultural activities comes from a variety of data and existing documentation such as regulations on csr culture and corporate data that has been doing csr culture. 3. techniquesdata used analysisof data obtained in this research is to use inductive data analysis. the process of data analysis begins by examining all the data collected through interviews and field observations as well as official documents from several agencies associated with the research. having studied and learned later is generated into a general conclusions based on empirical facts about the sites. the procedure of data analysis in this study using data analysis model of [1]. the analysis procedure performed is data reduction, data presentation, and conclusion. the reason of choosing this method because researchers will identify, analyze, describe and interpret phenomena found. all the results of interviews and observations (observation) is reconstructed from memory into files record field (fieldnotes).based on field experience of researchers conducted an analysis during data collection (analysis during the data collection),while after the field data collection ended, researchers conducted a post-collection analysis of data (analysis of data aftercollection). analysis of the data in the study also were also conducted with triangulation techniques with the source by comparing and checking the degree of confidence behind the information obtained. triangulation technique is a procedure in which researchers use more than one method that can be obtained independently of the information and data collected. by comparison triangulation techniques do 15ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 the following things: 1. comparing the observed data with data from interviews. 2. comparing the perspective of someone with different opinions and views of various speakers. 3. comparing a result of interviews with the contents of a document related. iv. empirical result and conclusion 1. real participation osing cultural development a. through the cultural development implementation ceremony kemiren village until now customary values osing tribe culture is still very strong. society with the awareness and the spirit of the high cultured participate in traditional ceremonies were conducted in a routine. among others, moco lontar held every wednesday night, routines tumpeng sewu to seblang, ider bumi, kebokeboan. cultures that have attached themselves to be regarded as a set of patterns of human behavior by relying on creativity and confidence for the necessities of life, so that cultural heritage is still being carried out today. it is expressed by a cultural actors from the village kemiren: “an indigenous tradition that should not beomitted, as seblang, ider bumi, kebo-keboan was customary, if the festival sort of festival angklung, a festival of education, was made by the government.” “no government intervention, if any form of canvas shelters and sound system, but every body or every group still emits a cone and which has issued the arts gallery. it’s from yourself .” these quotations can be concluded that the villagers still adhere to customs kemiren rooted tradition in the village and always perform the traditional ceremony with independent funds. this cultural actors also shared some of the traditions in the village kemiren, including mepe kasur, the mattress issued tradition to dry in front of each house. the mattress is a mattress hereditary given by parents when their children to be bride. usually the criteria economic assessment capabilities of each pair is of thick and thin mattresses they have. but the underlying moral messages of tradition mepe kasur the actually is to remove or dispose of the disease. night after the implementation of the mepe kasur continued with ngopi sepuluewu. ngopi sepuluewu also an indigenous tradition where every house put out coffee and laid out on the front porch each. they will feel very satisfied if coffee was placed on the porch drinking a lot. tradition mepe kasur and ngopi sepuluewu is held every month of suro. in a further development ngopi sepuluewu not only provides a coffee but also typical snacks such as, lepet, ketan kirik, tape ketan and kucur. but even this tradition evolved into an event that implementation is not provided in front of the homes, but held at the roadside in the village kemiren and become an event that is no longer free. another tradition that salvation or salvation ider bumi every year is held syawal second day. these traditions making cone pecel pitik then do the procession through the village. the purpose of salvation ider bumi pleading to god almighty that the villagers were given safety and to avoid any disaster. another tradition is customary tumpeng sewu, the cone presenting a large number of which was held along the village road kemiren. this custom carried out every month dzulhijah / hajj. the moral to the tradition of this tradition is the spirit of mutual cooperation and to pray that their village survived and kept away from all kinds of diseases. tumpeng sewu is presented with pecel pitik (range chickens) were burned and coupled with grated coconut. the torch was lit in a row along the way add a thick atmosphere of tradition in this village. rebo wekasan salvation is also one of the tradition that is still preserved. this tradition is held on the 27th of the month of safar. performed at every point springs in the village kemiren with the hope that spring was melangalir profusely and do not carry disease. there are 27 springs in the village kemiren, so that salvation was also held in 27 of the water point. indigenous traditions are carried out on a large scale is customary ritual seblang. this ritual dlaksanakan on day 7 shawwal and held for 7 days. implementation of the indigenous traditions seblang lulian (olehsari) one of the sacred ritual ceremonies related cultural systems marked specific qualities that command respect and obedience to god almighty. activities are strictly regulated by a 16 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 specific time and fast, right in the open area under the umbrella of the great white, circular grounded ground. young female offenders designated unseen from seblang descent,wearing a omprok crown made of flowers and young banana leaves, dancing with his eyes closed, accompanied by music and a certain poetry that is believed to have magical powers. tribal village osing olehsari uphold the teachings of his ancestors. seblang a symbol of communal dance that human life will be peaceful if the social harmony of man with man, man and nature as well as man’s relationship with the supernatural is maintained (b-fest 2017). cultural values osing, particularly in the village of kemiren are different from those in other villages, such as village olehsari, glagah or another as expressed by one of the informants of the department of tourism: “why kemiren village designated as a tourist village for ritual kemiren indigenous community is still very strong, is there olehsari village? there is. whether in glagah village there? there is. but not all residents do, just some. while in kemiren, ranging from eastern to western kemiren all residents perform traditional rituals. even the smell of incense in the village kemiren was something unusual, if in another country is not there. they carried out because it is tradition and custom.” whilethe cultural figures osing states:”the art still art. if the rituals are different. do not be equated. rituals and traditions are different. traditional rituals is something that should not be abandoned, if religion is prayer, there is a church, in a ritual there are spells, all intended to invoke the safety of the creator.” one of the residents we interviewed was said:”we will continue to perform traditional rituals though no funding from the government. normally we do muphu (dues) prior to the ritual, by collecting coins. traditional rituals existed before the b-fest and will continue to exist even without the b-fest. we actually prefer this traditional ritual to something sacred, not a festival. b. actors images culture and cultural preservation efforts development through art gallery kemiren village has been designated as the village osing the same time serve to preserve the cultural osing. cultural tourism area located in the middle of the village it was confirmed that the village is faced osing and projected as a cultural heritage osing. many features owned by the village which this is a typical use of language which is the language osing. kemiren village became the center of a tourist location since 1996, because the village has a very interesting cultural potential, such as the unique customs, arts and languages are always charged wangsalan osing and basanan. discussing about the performing arts, in this village is a lot of cultural actors, both as a dancer, performer instrument music or art gallery owner. their role as a dancer and performer of musical instruments is to always be able to display the performances at the customs, tradition carried on by the village. while the studio where they are for conservation efforts. they train children to adults so that later they can also inherit a culture deeply rooted in society. their art galleries is not a fancy and large has many facilities. in the view of researchers to observe directly at the site, the art gallery was their location or place that can be used to practice the dance. the existence of the tool could be an alternative, meaning that if there is then they use a set of gamelan but if not then they simply use a vcd / cd. seventh art galleries in kemiren village it self is formed on the initiative of the art galleries owner who wants to preserve the cultural customs. even the existence of the art galleries is not commercialized but purely for artistic practice activities, the following quote the proverb:”my art galleries no tariffs, every dance practice to rp.1.000-rp.2.000, or free. that’s the difference artist of heart and artists who are looking for a profit and enrich themselves “ the studio is very supportive existence in the implementation of traditional ceremonies as well as events organized by the government. to follow the staging, event or traditional ceremony of course the cultural actors and art gallery owners need a lot of funds. based on interview quotes with cultural actors, they reveal explicitly “never” or “not yet” to answer the question of whether they have ever received financial assistance related to routine activities in art galleries or for government events. the question asked by this researcher is to answer the research problem is whether there is real participation of local 17ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 company, either directly or through government in effort to preserve cultural custom. cultural customary preservation here is in the sense of development in the form of providing assistance to the owners of art galleries and cultural actors who carry out traditional adat activities. providing assistance to the studio is intended to maintain the existence of the studio because it is through this art studio that children and the younger generation will continue to be sharpened and trained various art that has been entrenched culture. a very elderly cultural figure said: “art galleries should have gamelan for dancing, do not use cassettes. but most of them do not have, only a few art gallery only, because it is a set of gamelan is not cheap “ answering the question of how the tourism service’s role to cultural development especially in kemiren village, an informant said: “we empower it not in cash money, but in the form of art actualization, please create the creation and perform, we will pay later. actualization of this art every week is displayed in blambangan. it is our benchmark whether the galleries deserve to be taken out of the region. so we also have a grate for each dance studio.” based on the results of interviews conducted on different informants of different groups of informants, obtained answers that indicate the following results on the perception of real participation of cultural development through the implementation of traditional ceremonies and through the development of art studio. here are the results of the perception penalty: a). against the development of culture through the implementation of traditional ceremonies, each group of informants have the same perception, that the traditional ceremony is a ritual and tradition that must be implemented. form of execution is in accordance with the ritual that has been implemented with the source of funding comes from individuals and communities through muphu (dues). b). against cultural development through the development of art galleries, each group of informants has different perceptions; the perpetrators of culture: they feel that their studio has never obtained funding, either from the government or from the company. funding for saggar development, whether for training or for performing (b-fest or staging) is done at an independent cost. cultural figures: the owner of the art gallery has its own fund, they should get help such as equipment government tourism office: the government provides assistance in the form of art actualization. the art gallery given freedom to be creative and actualize in art. 2. culture csr model as local corporate participation model on cultural preservation cultural preservation in this research is an effort made by society and government to continue to carry out traditions and cultures that have been rooted in society, both in the form of the implementation of traditional ceremonies, the introduction of art and performances. currently, various ritual ceremonies have been packed in the form of banyuwangi festival event, combined with various festivals formed. until the creation of 72 festival events in 2017. the events are spread over a year and the location of the implementation also adjusts to the event held. for custom rituals of time and place of execution certainly adjust to the ritual. for example the ider bumi ceremony was held in kemiren village on syawal on the second day, seblang lulian in olehsari village for 7 days starting on shawwal the seventh day and so on. in the implementation of ceremonial event of this kind, the role of government in this case is to provide supporting in the form of branding outside, the government does not intervene in the activities of traditional ceremonies. preservation in research is an attempt done so that art galleries can play as much as possible, have a place to practice, have gamelan, have barong, have costumes and others so that they can contribute maximally in the preservation of indigenous culture. based on observations of researchers in the field, based on secondary data obtained through the research agencies and through the website and based on interviews with several groups of informants, researchers obtained some conclusions: a). banyuwangi district has local regulations on csr namely banyuwangi district regulation number: 3/ 2014 about corporate social responsibility b). regulation bupati banyuwangi number: 43/ 2015 on implementation guidelines regulations 18 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 csr model as a model of local participation on the preservation of culture custom osing as illustrated in figure 1: figure 1. csr model based on the csr model on the participation of local companies in the preservation of osing custom culture, furthermore this research also makes a model of csr funds flow. this csr funds flow model is intended to provide a more transparent explanation of csr funds with the aim that csr funds that have been issued by the company can be really utilized by cultural actors. the following is the flow of csr funds formed through the csr model with related parties such as companies, csr forums, blambangan arts council and cultural actors / art galleries owners. the csr funds flow model presented in this study provides three alternatives for the distribution of funds that can be applied. the alternatives that can be chosen and expected properly distributed to the cultural actors as well as the purpose of corporate partitioning in csr culture (figure 2). banyuwangi district number: 3/ 2014 on corporate social responsibility c). banyuwangi values of indigenous culture osing tribe still continues to be preserved such as: seblang, ider bumi, tumpeng sewu, moco lontar, gandrung, rebo wekasan, kebo-keboan, ruwatan, tumplek punjen, ruwatan, endog-endogan, etc. d). various traditional rituals are packaged in the form of banyuwangi festival and festival combined with various local government formation e). local government has set village tourism through local regulation number: 1/ 2017 about tourism village f). the local government has established kemiren village as a tourism village. this determination because kemiren village is the only village whose people still carry out the ritual intact g). own art galleries and cultural actors in desperate need of funds for good development owned art galleries equipment, costumes or for training activities and performances h).local companies in banyuwangi have partially implemented their obligations to issue csr, others still do not. csr that has been issued by the company is managed by the local government for various purposes, including for the culture. however, the usefulness of cultural development has not been felt by cultural actors and studio owners i). csr forum in banyuwangi was formed to convey the plan, implementation and evaluation of corporate csr j). blambangan arts council (dkb) is required to be a mediator between cultural actors / art galleries owners and the company k).he role of cultural csr directly to cultural actors in the form of built art galleries is expected to help the development and preservation of culture l). legislation is required to legally protect such interests. 19ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 figure 2. distibution csr three alternatives to the csr fund flow model are as follows: 1. model the flow of funds through the arts council blambangan (dkb) companies as a participating party to spend funds in the form of csr culture can distribute csr funds in the form of distribution through dkb. the distribution of cultural csr funds through dkb, will be managed transparently. dkb can do mapping art studios that require funds for the development of art gallery or for festival activities. the role of dkb in this case is expected to be a mediator between cultural actors / owners of the studio with the company. so that csr can properly distributed to the affected parties or parties that require funds. 2. model flow of funds to cultural actors distribution of csr funds from companies in this alternative is done directly to the cultural actors in the form of sponsorship, among others can be in the form of company support for studio performances, studio development in the form of funding for the purchase of art or uniform tools, or corporate donations in the event -event specific. distribution of csr funds is not done continuously but at certain moments and at certain studios at random. but the distribution of funds can be distributed directly to cultural actors for the development of art. 3. model flow of funds to art galleries the third alternative csr fund flow model is to provide group art galleries. this model will be more perceived by the art gallery. as well as distribution csr funds for small business development, this model also has the goal of growing and developing existing studios in order to continue to preserve indigenous cultures and cultures through existing art galleries art in banyuwangi which has been introduced to the public through the banyuwangi festival must be continuously preserved. the first step of preservation is through the development of cultural gallery as cultural actors directly acting to preserve the culture of banyuwangi. acknowledgment we would like to thank direktorat riset dan pengabdian masyarakat direktorat jenderal penguatan riset dan pengembangan kementrian riset, teknologi dan pendidikan tinggi who has funded this research in accordance with the decree number: 120/ sp2h/lt/drpm/iv/2017 date 3 april 2017. reference [1] miles, m. and huberman, a.m. (2002). the qualitative researcher companion. sage publications inc. new delhi, india [2] ambadar. 2008. csr in practice in indonesia a form of business concern. pt elek media komputerindo. jakarta. [3] marnelly, t.r. 2012. corporate social responsibility (csr) review of theory and practice in indonesia.jurnal aplikasi bisnis 2. [4] meleong, l. 1993. qualitative research methods. bandung. [5] paramita, ratna. wd. 2012. corporate social responsibility (csr): overview of the concept and the pros and cons of csr. [6] paramita, ratna. wd. 2013. the influence of corporate characteristics on corporate social responsibility (csr). [7] paramita, ratna. wd. 2014. influence of corporate social responsibility (csr) to earnings response coefficient (erc). 20 ratna wijayanti daniar paramita, muchamad taufiq, noviansyah rizal cultural csr in perceptions of cultural preservation osing sinergi, volume 8 number 1 march 2018 [8] paramita, ratna. wd. 2015. implementation of corporate social responsibility (csr) to community around the company: qualitative studies. [9] act regulation number: 40 tahun 2007 perseroan terbatas. jakarta. [10] district regulation of government number: 3 tahun 2014 abaut corprate social responsibility [11] district regulation of government number: 43 tahun 2015 tentang instruction manual district regulation of government number: 3 tahun 2014 abaut corprate social responsibility [12] district regulation of government number : 1 tahun 2017 abaut village tourism [13] hadi, nor. 2014. corporate sosial responsibility. garha ilmu 43aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression kinerja karyawan pada pt bank dbs tangerang selatan. jurnal ekonomi, bisnis dan akuntansi, 20(1), 1–10. https://doi.org/10.22225/we.20.1.2890.1-10 [18] umar, h. (2013). metode penelitian untuk skripsi dan tesis bisnis. (edisi 1.). jakarta: pt. gramedia. [19] wahyudi. (2019). pengaruh disiplin dan motivasi terhadap kinerja karyawan. scientific journal of reflection, 2(3). financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression aneu kuraesin1 , sussy susanti2, yunia mulyani azis3* stie ekuitas, bandung, indonesia 1 aneukuraesin@gmail.com,2 sussy.rebab19@gmail.com, 3 yunia.mulyani@ekuitas,ac,id abstract the purpose of this study is to analyze the effect of financial ratios such as leverage, liquidity, activity, and profitability on the possibility of financial distress (financial distress). the population in this study are all food and beverage companies listed on the indonesia stock exchange in the period 2017 2020 totaling 30 companies. the samples taken were 6 food and beverage companies using a purposive sampling technique, namely the selection of samples based on certain criteria. the number of observations that were processed and analyzed were 18 observations. logistics regression is the method used in this research. the results showed that the activity ratio and leverage ratio had a significant effect on predicting financial distress, while the liquidity ratio and profitability ratio had no significant effect on predicting financial distress.. keywords: financial distress; regresi logistic; finacial ratio introduction financial reports are made with the aim of providing information to interested parties for decision making. according to kasmir (2019) that one of the objectives of financial statements is to provide information about the company's management performance in a period. if a company does not pay attention to its performance, it will experience financial difficulties which will eventually go bankrupt. in various studies and according to the opinion of experts, it is stated that financial statements can be used as a basis for measuring the health of a company. the ratio analysis method is a comprehensive way of assessing the performance of a company. parties such as investors, shareholders, or the government often use this method to evaluate certain aspects of a company's performance. so that in the financial statements by looking at the company's financial ratios, it is possible to detect financial difficulties. financial distress is a condition when a company experiences a financial crisis and fails to meet debtors' obligations because they do not have the funds to continue their business. this condition is accompanied by a decrease in profits and fixed assets and usually occurs before bankruptcy. research conducted by edward i altman (1968) is an early study that examines the use of financial ratio analysis as a tool to predict the bankruptcy of manufacturing companies that go public. altman's model is known as the z-score, which is a score determined from the standard calculation times financial ratios that indicate the level of probability of the company's bankruptcy. the analysis of financial statements is carried out using the 2017-2020 time interval. this is done to be able to update previous research. then the financial ratios used in predicting financial distress are the financial ratios of food and beverage companies listed on the indonesia stock exchange. the purpose of this study was to determine whether roa, cr, tato, dta affect financial distress. literature study sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 44 aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression financial statements the definition of financial statements according to psak no.1 (2015:2) is as follows: in the financial reporting process in which there are the financial statements. balance, income statement, statement of changes in financial position, notes and other statements and explanatory material that are an integral part of the contents of the report is a complete financial statement. it also contains a schedule and additional information related to the report, the financial diantarainformasi industrial and geographical segments and the disclosure of the effect of price changes. according to the indonesian accounting association (iai, 2015), financial statements are a structured presentation of the financial position and performance of an entity. so financial statements are records that reveal the business activities and financial performance of a company. financial distress financial distress is a final process of declining performance before going bankrupt based on platt and platt in (kusumawati & karuniawati, 2019). financial distress occurs due to cash flow difficulties, large amounts of debt, and losses in the company's operational activities for several years. meanwhile, according to brigham and daves in (mafiroh & triyono, 2018) when a company cannot make payments on schedule or when cash flow projections indicate that the company's obligations will not be fulfilled soon, that is a condition where the company experiences financial difficulties. harahap in (hanafi & stevanus, 2018), the company's internal financial distress indicators are: a. decrease in sales volume due to management's inability to implement policies and strategies. b. the company's ability to generate profits or company profits has decreased. c. depending on the creditors, the company has a very large debt, so its obligations are getting higher. on the other hand, (ratna & marwati, 2018) revealed several indicators to identify signs of financial difficulties seen from external parties, namely: a. decrease in the amount of dividends distributed to shareholders for several consecutive periods. b. continuous decline in profits and the company suffers losses. c. the closing or sale of one or more business units. d. massive layoffs of employees. e. prices in the market began to decline constantly. profitability ratios and financial distress according to putra (2009), the profitability ratio is a ratio that measures how effective the company's management and executives are as evidenced by the ability to create profit value. according to widarjo & setiawan (2009) in (antikasari & djuminah d, 2017) reduced costs incurred by the company is a result of the effective use of company assets. henceforth, the company will obtain savings and will have adequate funds in carrying out its business activities. with adequate funds, the company has a smaller opportunity to experience financial distress. the higher the company's ability to generate profits, the less likely the company is to experience financial distress. in this study, the profitability ratio is measured by roa, indicating the ability of the capital invested in overall assets to generate net profits. the profitability ratio has a negative and significant influence in predicting financial distress (lawrence et al., 2015 in (antikasari & djuminah d, 2017). research conducted by (alkhatib, 2012) reveals that profitability has no effect on financial distress. the return of assets (roa) ratio can predict the possibility of financial distress with a positive influence (antikasari & djuminah d, 2017). this ratio is used to measure the effectiveness of the company in managing its assets. the amount of assets that are too much will cause a large cost of capital, so it will suppress profits. conversely, assets that are too small will lead to the loss of profitable sales. h1: roa has a negative effect on financial distress. liquidity ratio and financial distress according to syamsuddin (2004), the liquidity ratio is a ratio that measures the company's ability to pay debts which must immediately be filled with current assets. azwar (2015) dalam (antikasari & djuminah d, 2017) reveals that a company is in a liquid state if the company has payment instruments or current assets that are greater than its current debt and are able to meet its financial obligations on time. the higher the liquidity ratio, the less likely the company is to experience financial distress. in this study, the liquidity ratio is measured by the current ratio which shows the ability to pay debts which must be met immediately with current assets. the results of research by (nurfajrina et al., 2016) that the liquidity ratio as measured by the current ratio and cash ratio has no effect on financial distress. research conducted by (ahmad, 2013) shows that the liquidity ratio has a significant effect on financial distress. h2: cr has a negative effect on financial distress. activity ratio and financial distress according to riyanto (2011) activity ratios are ratios used to measure the effectiveness of the company in working on its funding sources (inventory turnover, total asset turnover, average collection period and so on). the activity ratio in this study is measured using total asset turnover, which aims to measure the effectiveness of the company in managing its assets. research conducted by (hidayat & meiranto, 2014) shows that the activity ratio has a negative effect on financial distress. h3: tato has a negative effect on financial distress. leverage ratio and financial distress according to kasmir (2018), the leverage ratio is a ratio used to measure the extent to which a company's assets are financed by debt. this ratio can be calculated based on information from the balance sheet, namely in the items of assets and items of debt. according to (antikasari & djuminah d, 2017) companies that have a higher level of debt are more likely to experience financial distress or bankruptcy than companies that have less debt. in this study, the leverage ratio is measured by debt to total assets. this ratio shows some of the assets used to guarantee debt. research conducted by (widhiari & aryani merkusiwati, 2015) reveals that the leverage ratio has no effect on financial distress. h4: dta has a positive effect on financial distress. altman (1968) uses financial ratios to predict the bankruptcy of a company. by examining as many as 66 companies in america using the multivariate discriminant analysis (mda) approach, which is often known as the altman z-score method. there are shortcomings that are often found in the mda approach in terms of the assumption of data normality and group dispersion. this causes a bias towards the level of significance and estimated errors (ohlson, 1980). sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 45aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression financial statements the definition of financial statements according to psak no.1 (2015:2) is as follows: in the financial reporting process in which there are the financial statements. balance, income statement, statement of changes in financial position, notes and other statements and explanatory material that are an integral part of the contents of the report is a complete financial statement. it also contains a schedule and additional information related to the report, the financial diantarainformasi industrial and geographical segments and the disclosure of the effect of price changes. according to the indonesian accounting association (iai, 2015), financial statements are a structured presentation of the financial position and performance of an entity. so financial statements are records that reveal the business activities and financial performance of a company. financial distress financial distress is a final process of declining performance before going bankrupt based on platt and platt in (kusumawati & karuniawati, 2019). financial distress occurs due to cash flow difficulties, large amounts of debt, and losses in the company's operational activities for several years. meanwhile, according to brigham and daves in (mafiroh & triyono, 2018) when a company cannot make payments on schedule or when cash flow projections indicate that the company's obligations will not be fulfilled soon, that is a condition where the company experiences financial difficulties. harahap in (hanafi & stevanus, 2018), the company's internal financial distress indicators are: a. decrease in sales volume due to management's inability to implement policies and strategies. b. the company's ability to generate profits or company profits has decreased. c. depending on the creditors, the company has a very large debt, so its obligations are getting higher. on the other hand, (ratna & marwati, 2018) revealed several indicators to identify signs of financial difficulties seen from external parties, namely: a. decrease in the amount of dividends distributed to shareholders for several consecutive periods. b. continuous decline in profits and the company suffers losses. c. the closing or sale of one or more business units. d. massive layoffs of employees. e. prices in the market began to decline constantly. profitability ratios and financial distress according to putra (2009), the profitability ratio is a ratio that measures how effective the company's management and executives are as evidenced by the ability to create profit value. according to widarjo & setiawan (2009) in (antikasari & djuminah d, 2017) reduced costs incurred by the company is a result of the effective use of company assets. henceforth, the company will obtain savings and will have adequate funds in carrying out its business activities. with adequate funds, the company has a smaller opportunity to experience financial distress. the higher the company's ability to generate profits, the less likely the company is to experience financial distress. in this study, the profitability ratio is measured by roa, indicating the ability of the capital invested in overall assets to generate net profits. the profitability ratio has a negative and significant influence in predicting financial distress (lawrence et al., 2015 in (antikasari & djuminah d, 2017). research conducted by (alkhatib, 2012) reveals that profitability has no effect on financial distress. the return of assets (roa) ratio can predict the possibility of financial distress with a positive influence (antikasari & djuminah d, 2017). this ratio is used to measure the effectiveness of the company in managing its assets. the amount of assets that are too much will cause a large cost of capital, so it will suppress profits. conversely, assets that are too small will lead to the loss of profitable sales. h1: roa has a negative effect on financial distress. liquidity ratio and financial distress according to syamsuddin (2004), the liquidity ratio is a ratio that measures the company's ability to pay debts which must immediately be filled with current assets. azwar (2015) dalam (antikasari & djuminah d, 2017) reveals that a company is in a liquid state if the company has payment instruments or current assets that are greater than its current debt and are able to meet its financial obligations on time. the higher the liquidity ratio, the less likely the company is to experience financial distress. in this study, the liquidity ratio is measured by the current ratio which shows the ability to pay debts which must be met immediately with current assets. the results of research by (nurfajrina et al., 2016) that the liquidity ratio as measured by the current ratio and cash ratio has no effect on financial distress. research conducted by (ahmad, 2013) shows that the liquidity ratio has a significant effect on financial distress. h2: cr has a negative effect on financial distress. activity ratio and financial distress according to riyanto (2011) activity ratios are ratios used to measure the effectiveness of the company in working on its funding sources (inventory turnover, total asset turnover, average collection period and so on). the activity ratio in this study is measured using total asset turnover, which aims to measure the effectiveness of the company in managing its assets. research conducted by (hidayat & meiranto, 2014) shows that the activity ratio has a negative effect on financial distress. h3: tato has a negative effect on financial distress. leverage ratio and financial distress according to kasmir (2018), the leverage ratio is a ratio used to measure the extent to which a company's assets are financed by debt. this ratio can be calculated based on information from the balance sheet, namely in the items of assets and items of debt. according to (antikasari & djuminah d, 2017) companies that have a higher level of debt are more likely to experience financial distress or bankruptcy than companies that have less debt. in this study, the leverage ratio is measured by debt to total assets. this ratio shows some of the assets used to guarantee debt. research conducted by (widhiari & aryani merkusiwati, 2015) reveals that the leverage ratio has no effect on financial distress. h4: dta has a positive effect on financial distress. altman (1968) uses financial ratios to predict the bankruptcy of a company. by examining as many as 66 companies in america using the multivariate discriminant analysis (mda) approach, which is often known as the altman z-score method. there are shortcomings that are often found in the mda approach in terms of the assumption of data normality and group dispersion. this causes a bias towards the level of significance and estimated errors (ohlson, 1980). sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 46 aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression the binary logit regression (blr) method to predict company bankruptcy was first performed by ohlson (1980) in (antikasari & djuminah d, 2017). his research shows that company size (size), financial structure (total liabilities to total assets), per-formance and current liquidity are the ratio groups (variables) that are significant determinants in predicting bankruptcy. research method population and sample the population is the entire object to be observed related to the problem under study. the population observed in this study were food and beverage companies listed on the indonesia stock exchange from 2017-2020. the sample selection is done by purposive sampling technique, which is the selection of samples with certain objectives and appropriate criteria. the criteria to be used are: (1) food and beverage sector companies listed on the idx. (2) the company's financial statements are complete and have been audited. (3) the components required in the calculation process are clearly stated in the financial statements. based on the sample selection criteria, the companies that can be sampled in this study are 6 companies which can be seen in table 1. this study uses secondary data about the company's financial statements sourced from www.idx.co.id in 2017 to 2020. table 1. research samples company’s name code pt inti agri resources tbk iikp pt magna investama mandiri tbk mgna pt prima cakrawala abadi pcar pt prasidha aneka niaga psdn pt tri banyan tirta alto pt bumi teknokultura unggul btek research variables and operationalization variables the dependent variable in this study is a company experiencing financial distress. determining companies experiencing financial distress will be done using the altman z-score method for manufacturing companies. the formula is: z-score = 0.012x1 + 0.014x2 + 0.033x3 + 0.006x4 + 0.999x5 x1= working capital to total assets x2= retained earnings to total assets (retained earnings to total assets) x3= earnings before interest and taxes to total assets x4= market value equity to book value of total debt x5= sales to total assets (sales to total assets ) ratio measurement scale for z score if z >= 2.99 including safe zone. if 1.81 < z < 2.99 including the green zone. if z <= 1.81, it is a distress zone. in this study only took 2 categories, namely if z < = 1.88, it was classified as a company experiencing financial distress. if z > = 1.88, it is classified as a company that does not experience financial distress. nominal measurement scale for z score dummy variable: 0 = companies experiencing financial distress. 1 = companies that do not experience financial distress. table 2. independent variable model analysis the analytical method used in this study is binary logistic regression. logit model is a non-linear regression model in which the dependent variable is categorical. based on research conducted by azwar in (antikasari & djuminah d, 2017) the analysis model is as follows = ln comparison of the probability of financial distress and non-distress β0 = konstanta β1 = regression coefficient of cr β2 = regression coefficient of roa β3 = regression coefficient of tato β3 = regression coefficient of dta the level of significance used in this study is 0.1, which means that the probability that the results of drawing conclusions will experience errors is 10%. the criteria for accepting and rejecting the hypothesis are carried out in the following way: (1) if the significance value (sig.) > 0.1 then the research hypothesis is rejected or the regression coefficient is not significant. this means that partially the independent variable has no significant effect on the dependent variable. (2) if the significance value (sig.) < 0.1 then the research hypothesis is accepted or the regression coefficient is significant. this means partially the independent variable has a significant influence on the dependent variable. hypothesis testing hypothesis testing is carried out to determine the extent to which the independent variable (financial ratio) has a significant effect on the dependent variable (financial distress condition). the significant level used is 0.1 or 10 percent with the decision criteria are: (1) if the significance value is > 0.1 then the null hypothesis is accepted or the partial effect of each regression coefficient is not significant. (2) if the significance value is <0.1 then the null hypothesis is rejected, which means that the partial effect of each regression coefficient is significant. result and discussion goodness of fit test/simultaneous test table 4 shows the chi square value of 5.949 with a sig value of 0.653 which is greater than 0.1. this means that the model is feasible to be analyzed by logistic regression analysis. chi-square estimation is intended to determine the effect of roa, cr, tato, and dta in predicting financial distress. table 4. goodness of fit test hosmer and lemeshow test step chi-square df sig. 1 5,949 8 ,653 overall model fit table 5. overall model fit block -2 log likelihood 0 24,564 1 15,556 table 5 illustrates the feasibility of the logistic regression model by including the independent variable based on the decrease in the initial -2 log likelihood sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 47aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression the binary logit regression (blr) method to predict company bankruptcy was first performed by ohlson (1980) in (antikasari & djuminah d, 2017). his research shows that company size (size), financial structure (total liabilities to total assets), per-formance and current liquidity are the ratio groups (variables) that are significant determinants in predicting bankruptcy. research method population and sample the population is the entire object to be observed related to the problem under study. the population observed in this study were food and beverage companies listed on the indonesia stock exchange from 2017-2020. the sample selection is done by purposive sampling technique, which is the selection of samples with certain objectives and appropriate criteria. the criteria to be used are: (1) food and beverage sector companies listed on the idx. (2) the company's financial statements are complete and have been audited. (3) the components required in the calculation process are clearly stated in the financial statements. based on the sample selection criteria, the companies that can be sampled in this study are 6 companies which can be seen in table 1. this study uses secondary data about the company's financial statements sourced from www.idx.co.id in 2017 to 2020. table 1. research samples company’s name code pt inti agri resources tbk iikp pt magna investama mandiri tbk mgna pt prima cakrawala abadi pcar pt prasidha aneka niaga psdn pt tri banyan tirta alto pt bumi teknokultura unggul btek research variables and operationalization variables the dependent variable in this study is a company experiencing financial distress. determining companies experiencing financial distress will be done using the altman z-score method for manufacturing companies. the formula is: z-score = 0.012x1 + 0.014x2 + 0.033x3 + 0.006x4 + 0.999x5 x1= working capital to total assets x2= retained earnings to total assets (retained earnings to total assets) x3= earnings before interest and taxes to total assets x4= market value equity to book value of total debt x5= sales to total assets (sales to total assets ) ratio measurement scale for z score if z >= 2.99 including safe zone. if 1.81 < z < 2.99 including the green zone. if z <= 1.81, it is a distress zone. in this study only took 2 categories, namely if z < = 1.88, it was classified as a company experiencing financial distress. if z > = 1.88, it is classified as a company that does not experience financial distress. nominal measurement scale for z score dummy variable: 0 = companies experiencing financial distress. 1 = companies that do not experience financial distress. table 2. independent variable model analysis the analytical method used in this study is binary logistic regression. logit model is a non-linear regression model in which the dependent variable is categorical. based on research conducted by azwar in (antikasari & djuminah d, 2017) the analysis model is as follows = ln comparison of the probability of financial distress and non-distress β0 = konstanta β1 = regression coefficient of cr β2 = regression coefficient of roa β3 = regression coefficient of tato β3 = regression coefficient of dta the level of significance used in this study is 0.1, which means that the probability that the results of drawing conclusions will experience errors is 10%. the criteria for accepting and rejecting the hypothesis are carried out in the following way: (1) if the significance value (sig.) > 0.1 then the research hypothesis is rejected or the regression coefficient is not significant. this means that partially the independent variable has no significant effect on the dependent variable. (2) if the significance value (sig.) < 0.1 then the research hypothesis is accepted or the regression coefficient is significant. this means partially the independent variable has a significant influence on the dependent variable. hypothesis testing hypothesis testing is carried out to determine the extent to which the independent variable (financial ratio) has a significant effect on the dependent variable (financial distress condition). the significant level used is 0.1 or 10 percent with the decision criteria are: (1) if the significance value is > 0.1 then the null hypothesis is accepted or the partial effect of each regression coefficient is not significant. (2) if the significance value is <0.1 then the null hypothesis is rejected, which means that the partial effect of each regression coefficient is significant. result and discussion goodness of fit test/simultaneous test table 4 shows the chi square value of 5.949 with a sig value of 0.653 which is greater than 0.1. this means that the model is feasible to be analyzed by logistic regression analysis. chi-square estimation is intended to determine the effect of roa, cr, tato, and dta in predicting financial distress. table 4. goodness of fit test hosmer and lemeshow test step chi-square df sig. 1 5,949 8 ,653 overall model fit table 5. overall model fit block -2 log likelihood 0 24,564 1 15,556 table 5 illustrates the feasibility of the logistic regression model by including the independent variable based on the decrease in the initial -2 log likelihood sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 48 aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression value (block number 0) of 24,544 to the -2 log likelihood value of block number 1 of 15,556. with the decrease in the value of -2 log likelihood, this shows that the model used is a good regression model and is feasible to use. table 6 coefficient of determination nagelkerke r square step 1 0,688 table 6 shows the coefficient of determination which means the ability of the independent variable to explain the variable using the nagelkerke r square value. the value of nagelkerke r square is 0.688. in other words, the condition of financial distress can be explained by 68.8 percent by financial ratios while the remaining 37.2 percent can be explained by other variables that are not included in the model. logistics regression analysis test results to test the hypothesis, a logistic regression test was used which was carried out on all variables, which is profitability, liquidity, activity and leverage ratio in predicting financial distress. based on table 8 the test results are as follows: y = 0.415 + 0.004 cr + 0.584 roa + (-2.696) tato + 6.636 dta the figures generated from these tests can be explained by the results of statistical hypothesis testing in table 8. table 8. partial test of independent variable table 8 explains that the regression coefficient for cr has a significance value of 0.905 (> 0.1) which means that the hypothesis is accepted so that it can be concluded that the liquidity ratio has no significant effect in determining financial distress. the same result is shown by roa with a significance value of 0.584. while the significance value for tato and dta (0.052 and 0.069) appears smaller than 0.1 so it can be concluded that the activity ratio and leverage ratio have a significant effect in determining financial distress. discussion based on the partial test results which show that for food and beverage companies in the 2017-2020 period, financial ratios that have a significant effect in predicting financial distress are the activity ratio and the leverage ratio. this means that companies that have high tatos are more effective in managing their assets. so the greater this ratio means that the assets can be rotated faster and make a profit, it also shows the more efficient use of all assets in generating sales. when the company converts its inventory to cash more quickly, the possibility of financial distress is getting smaller. these results are in line with research conducted by (antikasari & djuminah d, 2017). and companies that experience financial distress generally have a high dta ratio and show a debt amount that is almost as large as their total assets and there are even companies that have a total debt. companies that have more debt than their total assets generally have negative equity. so it is possible that companies that have a fairly high amount of debt will violate debt agreements with creditors because the amount of assets owned cannot guarantee the debts of the company and companies that have high debt will also be charged high interest costs while the amount of debt owed higher than the total assets of the company causes the book value of the company's equity to be negative. the results of this study are also in accordance with the research of (antikasari & djuminah d, 2017) which state that the leverage ratio can be used to predict financial distress conditions. conclusions the conclusion from the results of the study with reference to the discussion that has been carried out is that there is a significant effect of the activity ratio and leverage ratio on the potential for financial distress, while the liquidity and profitability ratios show the opposite result where the influence of the two ratios is not significant in determining financial distress. references [1] ahmad, g. n. (2013). analysis of financial distress in indonesian stock exchange. review of integrative business and economics research, 2(2), 521–533. [2] al-khatib, h. b. (2012). predicting financial distress of public companies listed in amman stock exchange. european scientific journal, 8(15), 1–17. [3] antikasari, t., & djuminah d. (2017). memprediksi financial distress dengan binary logit regression perusahaan telekomunikasi. jurnal keuangan dan perbankan, 21(2), 265– 275. [4] hanafi, i., & stevanus, g. s. (2018). prediksi financial distress pada perusahaan manufaktur yang terdaftar di bursa efek indonesia. ekuivalensi, 4(1), 24–51. [5] hidayat, m. a., & meiranto, w. (2014). prediksi financial distress perusahaan manufaktur di indonesia. diponegoro journal of accounting, 3(3), 538–548. [6] kusumawati, r., & karuniawati, r. r. (2019). kepemilikan institusional dalam memprediksi financial distress ( studi pada perusahaan transportrasi di bursa efek indonesia tahun 2013-2018 ). [7] mafiroh, a., & triyono, t. (2018). pengaruh kinerja keuangan dan mekanisme corporate governance terhadap financial distress (studi empiris pada perusahaan manufaktur yang terdaftar di bursa efek indonesia periode 2011-2014). riset akuntansi dan keuangan indonesia, 1(1), 46–53. [8] nurfajrina, a., siregar, h., & saptono, i. t. (2016). financial distress. jurnal keuangan dan perbankan, 20(3), 448–457. https://doi.org/10.1002/9781118785317.weom04 0039 [9] ratna, i., & marwati, m. (2018). analisis faktor faktor yang mempengaruhi kondisi financial distress pada perusahaan yang delisting dari jakarta islamic index tahun 2012-2016. jurnal tabarru’: islamic banking and finance, 1(1), 51–62. [10] widhiari, n., & aryani merkusiwati, n. (2015). pengaruh rasio likuiditas, leverage, operating capacity, dan sales growth terhadap financial distress. e-jurnal akuntansi universitas udayana, 11(2), 456–469. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 49aneu kuraesin1) , sussy susanti2), yunia mulyani azis3) financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression value (block number 0) of 24,544 to the -2 log likelihood value of block number 1 of 15,556. with the decrease in the value of -2 log likelihood, this shows that the model used is a good regression model and is feasible to use. table 6 coefficient of determination nagelkerke r square step 1 0,688 table 6 shows the coefficient of determination which means the ability of the independent variable to explain the variable using the nagelkerke r square value. the value of nagelkerke r square is 0.688. in other words, the condition of financial distress can be explained by 68.8 percent by financial ratios while the remaining 37.2 percent can be explained by other variables that are not included in the model. logistics regression analysis test results to test the hypothesis, a logistic regression test was used which was carried out on all variables, which is profitability, liquidity, activity and leverage ratio in predicting financial distress. based on table 8 the test results are as follows: y = 0.415 + 0.004 cr + 0.584 roa + (-2.696) tato + 6.636 dta the figures generated from these tests can be explained by the results of statistical hypothesis testing in table 8. table 8. partial test of independent variable table 8 explains that the regression coefficient for cr has a significance value of 0.905 (> 0.1) which means that the hypothesis is accepted so that it can be concluded that the liquidity ratio has no significant effect in determining financial distress. the same result is shown by roa with a significance value of 0.584. while the significance value for tato and dta (0.052 and 0.069) appears smaller than 0.1 so it can be concluded that the activity ratio and leverage ratio have a significant effect in determining financial distress. discussion based on the partial test results which show that for food and beverage companies in the 2017-2020 period, financial ratios that have a significant effect in predicting financial distress are the activity ratio and the leverage ratio. this means that companies that have high tatos are more effective in managing their assets. so the greater this ratio means that the assets can be rotated faster and make a profit, it also shows the more efficient use of all assets in generating sales. when the company converts its inventory to cash more quickly, the possibility of financial distress is getting smaller. these results are in line with research conducted by (antikasari & djuminah d, 2017). and companies that experience financial distress generally have a high dta ratio and show a debt amount that is almost as large as their total assets and there are even companies that have a total debt. companies that have more debt than their total assets generally have negative equity. so it is possible that companies that have a fairly high amount of debt will violate debt agreements with creditors because the amount of assets owned cannot guarantee the debts of the company and companies that have high debt will also be charged high interest costs while the amount of debt owed higher than the total assets of the company causes the book value of the company's equity to be negative. the results of this study are also in accordance with the research of (antikasari & djuminah d, 2017) which state that the leverage ratio can be used to predict financial distress conditions. conclusions the conclusion from the results of the study with reference to the discussion that has been carried out is that there is a significant effect of the activity ratio and leverage ratio on the potential for financial distress, while the liquidity and profitability ratios show the opposite result where the influence of the two ratios is not significant in determining financial distress. references [1] ahmad, g. n. (2013). analysis of financial distress in indonesian stock exchange. review of integrative business and economics research, 2(2), 521–533. [2] al-khatib, h. b. (2012). predicting financial distress of public companies listed in amman stock exchange. european scientific journal, 8(15), 1–17. [3] antikasari, t., & djuminah d. (2017). memprediksi financial distress dengan binary logit regression perusahaan telekomunikasi. jurnal keuangan dan perbankan, 21(2), 265– 275. [4] hanafi, i., & stevanus, g. s. (2018). prediksi financial distress pada perusahaan manufaktur yang terdaftar di bursa efek indonesia. ekuivalensi, 4(1), 24–51. [5] hidayat, m. a., & meiranto, w. (2014). prediksi financial distress perusahaan manufaktur di indonesia. diponegoro journal of accounting, 3(3), 538–548. [6] kusumawati, r., & karuniawati, r. r. (2019). kepemilikan institusional dalam memprediksi financial distress ( studi pada perusahaan transportrasi di bursa efek indonesia tahun 2013-2018 ). [7] mafiroh, a., & triyono, t. (2018). pengaruh kinerja keuangan dan mekanisme corporate governance terhadap financial distress (studi empiris pada perusahaan manufaktur yang terdaftar di bursa efek indonesia periode 2011-2014). riset akuntansi dan keuangan indonesia, 1(1), 46–53. [8] nurfajrina, a., siregar, h., & saptono, i. t. (2016). financial distress. jurnal keuangan dan perbankan, 20(3), 448–457. https://doi.org/10.1002/9781118785317.weom04 0039 [9] ratna, i., & marwati, m. (2018). analisis faktor faktor yang mempengaruhi kondisi financial distress pada perusahaan yang delisting dari jakarta islamic index tahun 2012-2016. jurnal tabarru’: islamic banking and finance, 1(1), 51–62. [10] widhiari, n., & aryani merkusiwati, n. (2015). pengaruh rasio likuiditas, leverage, operating capacity, dan sales growth terhadap financial distress. e-jurnal akuntansi universitas udayana, 11(2), 456–469. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 53 the effect of work discipline and work environment on the performance of employees sarwani university of dr. soetomo surabaya email: sarwani_mm@yahoo.com (accepted: 20-july-2016; revised: 20-august-2016; published: 10-september-2016) abstract.of the many factors that influence employee performance, this research focuses on work discipline and working environment. lack of discipline and inadequate working environment in the company, can have an impact on the implementation of the work process becomes inefficient. this study aims to determine the influence of labor discipline and the work environment to employee performance as well as the dominant variable influence on employee performance. the population in this study is an all employees at pt ardian putra mandirisidoarjo totaling 126 people. the analysis model is a linear regression. hypothesis testing using f test and t test at 5% significance level and supported by econometric tests. the results showed that jointly or in partial, work discipline and the work environment has a significant influence on employee performance. from both the independent variables studied, showed that having a dominant influence on employee performance is the work environment.. keywords: employee performance, discipline work and work environment 1. introduction the existence of coaching and development in the organization is expected to create qualified personnel that will lead to increased employee performance. one employee development efforts that can be taken in order to attempt to improve employee performance adala enforcement of discipline. labor discipline is an attitude of respect, respect, obedience or adherence someone who has joined in an organization with applicable regulations in the organization of both written and verbal with full awareness and be happy, that will create a state order that shows the organization's goals will be faster reached. this is in accordance with the opinion of siswanto satrohadiwiryo (2003) that "labor discipline" an attitude of respect, respect, comply with and obey the regulations in force, both written mapun unwritten and able to run and do not swerve to accept sanctions sanctions if he violated his duties and authority given to him. employee discipline will affect the efficiency and effectiveness of its work. employee discipline expected their work will be done efficiently and effectively as possible. where discipline can not be enforced then it is likely predetermined organizational objectives can not be achieved efficiently and effectively. based on the preliminary results of the survey at pt ardian putra mandiri sidoarjo is a company engaged in the furniture city of sidoarjo that supplies to exporting firms. initial observation that researchers do indicate that performance management implemented by the company had not yet managed to raise the enthusiasm of employees to leave work better for the company, this is because there are still sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 54 many problems that are often encountered in pt ardian putra mandiri sidoarjo that employees who come late , in addition, there are employees who abuse their working time to joke with the other employees, there are employees who are absent, work with careless and do not like to cooperate with other colleagues. for the discipline of work in pt ardian putra mandiri sidoarjo must be nurtured and enhanced by eliminating behaviors that are not appropriate in the work, so that high labor discipline employees who will be realized. performance of employees in the company in addition affected by the performance of employees, is also influenced by the work environment. in general, the work environment is an environment in which employees carry out their work duties. working environment includes all conditions that can affect a person's behavior in the development and in the process of work. actually, many other factors that could potentially affect behavior, but in real fact that there are around really relate directly and can influence the behavior of employees. work environment to be around employees need to be considered to bring good impact on the performance of employees. comfort and security will be created for an adequate working environment. this indicates poor performance of employees at pt ardian putra mandiri sidoarjo. the decline in the performance of employees is influenced by low labor discipline and the working environment. their employees were disciplined and a good working environment is expected to employee performance can be improved. improved overall performance of employees in an organization will increase as well the smooth work process and the smooth process of the work will facilitate the attainment of the objectives of the organization concerned. 2. review of literature 2.1 discipline sastrohadiwiryo (2003) states the discipline can be defined as an attitude of respect, respect, obey, and obey the regulations that apply both written and unwritten and able to run and do not swerve to accept sanctions if he violates the duties and the authority given to him. according asmiarsih, (2006) discipline is a growing force in the body of the workers themselves that caused him to adjust to voluntarily submit to the decisions, regulations, and high values of work and behavior. siagian (2008) discipline is defined as an attitude and behavior that reflect the level of compliance or adherence to the various applicable regulations and corrective measures against the violation of regulations and standards set out in the organization. sutrisno (2009) states that "discipline indicates a sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 55 condition or comity that is in the employee of the rules and the accuracy of organization". thus, if the rules or regulations that exist in the organization that are ignored or violated, the employee has poor discipline. conversely, when employees adhere to the statutes of the organization, describes the condition of good discipline. some understanding of the discipline particularly from the perspective of the organization, can be defined as an attitude that reflects adherence and accuracy against a rule that is in-personal nature to maintain that there is the existence of an organization. good discipline shows the person's sense of responsibility towards the tasks given. the principles set forth disciplinary ranupandojo in asmiarsih (2006) are: a. disciplinary done privately. disciplinary done by giving warning to the employee. b. discipline must be constructive. in addition to providing warning and shows the errors made employees, must be accompanied by suggestions on how it should be done not to repeat the same mistakes. c. discipline is lacking must be done directly with immediately. an action is performed immediately after proven that the employee had made a mistake. d. fairness in discipline is indispensable. in the disciplinary action is carried out fairly and without favoritism. e. leaders should not do when disciplining an employee absences. discipline should be done before the employee personally that he knew had made a mistake. f. after disciplining the attitude of the leadership should be a reasonable return. reasonable attitude should be done led to the employee who has committed the error. 2.2 environment, ahyari (2002) provides definitions that the working environment is an environment in which these employees perform their duties and daily work. the work environment can be divided into three groups. the first group is the provision of a wide range of facilities for employees, such as meal service / food, health care, and pengadakan bathroom / washroom. the second group is the issue of working conditions. setting good working conditions will increase the productivity of the company. setting working conditions among other arrangements workspace lighting, air conditioning, noisy sound settings, color selection, the space required, and employee safety. the third group is the problem of employee relations. generally, an employee wants a fun workplace. provides a fun workplace means has caused a feeling of comfort in working on the employees, so that in this way can be reduced or avoided wastage of time and costs, declining health, and the number of work accidents. companies can create a pleasant working environment in the sense that there is a good relationship between sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 56 employees, between employees with employers, and maintain the health, safety in the work space, it will be able to increase employee productivity. physical and mental health of employees should also be considered by the company. employees can become stressed, diseased or injured at work if the work environment less attention. therefore, disturbances of vision, hearing, fatigue, and work environment such as temperature and humidity, it needs to be controlled or minimized as much as possible (husein umar, 2004). a. according to gie (2000) physical working environment is a set of physical factors and a physical atmosphere in a workplace. of the few opinions on the above it can be concluded that the physical working environment is a physical condition that are around that can affect employee performance. sedarmayanti (2001) suggests the physical work environment are all circumstances the physical form contained around the workplace that may affect employees either directly or indirectly. b. non-physical environment. according sedarmayanti (2001) non-physical work environment is all of the circumstances relating to labor relations, good relations with superiors and co-workers relationships, or relationships with subordinates. non-physical work environment is a work environment that can not be detected by human senses, but can be felt. according wursanto (2009) stated that: their feeling of safety of the employees in performing their duties, their loyalty is a two-dimensional, and their sense of satisfaction among employees. 2.3 performance according mangkunagara (2001) performance is the result of the quality and quantity of work accomplished by an employee in performing their duties in accordance with the responsibilities given to him. performance is the result or the overall success rate of a person during a certain period in carrying out the task compared with a range of possibilities, such as the standard of the work, the target or targets or criteria that have been determined in advance and have been agreed (riva and basri, 2005). performance is a function of motivation and ability. to complete the task or job a person should have a degree of willingness and a certain level of ability. the willingness and skills of a person would not be effective. to do something without a clear understanding of what is done and how to do (riva, 2005). bernardin (2001) stated that the performance is a record of the results produced (generated) on a particular job functionspecific or aktivitasaktivitas during a specific time period. from these definitions, bernardin sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 57 stressed the notion of performance as a result, not a character trait (trait) and behavior. the notion of performance as a result are also linked to productivity and effectiveness (ricard, 2003). murphy (in ricard, 2003) states that the performance of a set of behaviors that are relevant to the goals of the organization or organizational unit where people work. the notion of performance as behavior is also expressed by mohrman, campbell, cardy and dobbins, waldman (in ricard, 2003). performance is synonymous with behavior. performance is something that actually people are working and can be observed. in this sense, the performance includes actions and behaviors that are relevant to the organization's objectives. performance indicators(performance)by mangkunagara (2004) is influenced by four factors, namely: a. quality of work, is the quality of the work achieved an employee in carrying out the tasks assigned to them. b. quantity of work, is the amount of work achieved an employee in carrying out the tasks assigned to them. c. responsibility, is the ability of an employee complete the work assigned to him as well as possible and in a timely manner, and dare to bear the risk of its decision or actions. d. attitude, a mental condition that encourages a person to strive to achieve employment potential to the fullest. from some of the above opinion can be concluded that the performance is the result of work achieved so that every employee can contribute to the company. the performance assessment is a process of the company in evaluating the job performance of the company. 3. research methods 3.1 research subjects understandingaccording sugiyono population (2003) is the population is generalization region consisting of: objects / subjects that have certain qualities and characteristics defined by the researchers to learn and then drawn conclusions. the population in this study were all employees of pt putra mandiri sidoarjo ardian totaling 127 people comprising deputy director, operational manager, purchasing, human resources section, parts of the production, administration, supervisors to workers. given that the population can easily be connected to then be used for data retrieval method instead of population sampling method. 3.2 data collection data were taken using a questionnaire, which is a technique of collecting data by asking a number of written questions by using questionnaires as one of the tools used to obtain information from respondents surveyed. sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 58 in this case the 126 sets of questionnaires as a research instrument distributed to all employees (excluding directors) in pt ardian putra mandiri sidoarjo. 3.3 dataanalysis analysis datastudy used regression techniques. in this section analyzes the influence of the discipline of work and job satisfaction together on employee performance by using the f test, and for the partial test (own -sendiri) is the influence on employee performance and job satisfaction influence on employee performance, for the use t test, while to see the magnitude of the effect, use numbers or standardized beta coeffecient. in this study used regression test is multiple linear regression analysis (multiple regression). the results of multiple linear regression analysis using spss can be shown in the following table: table 1 test results linear regression unstan dardize d coeffic ients standardi zed coefficien ts model b std err beta t s i or g 1 ( c o n s t a n t ) x 1 x 2 0,007 0,487 0,512 0,077 0,014 0,015 0,723 0,727 0 0 0 0 based on the analysis of the model, then obtained multiple linear regression equation as follows: y = 0.007 + 0.487 (x1) + 0.512 (x2) from the above equation can be interpreted as follows: a = 0.007, the value of constants (a) this implies that the intersection vertical axis regression line (y) lies in 0,007. this value depends on the independent variable (x). value of 0.007 means that if the employee does not pay attention to improving the performance of labor discipline and the working environment, the performance of employees will be equal to 0.007. sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 59 b1 = 0.487, regression coefficient value of labor discipline implies that if the work discipline (x1) in an effort to improve the performance of employees rose by one unit, it will be followed by increase employee performance by 0.487 assuming that the other variables constant. b2 = 0.512, regression coefficient value of this working environment implies that if the working environment (x2) increased by one unit, it will be followed by increase employee performance by 0.512 assuming that the other variables constant. 4. research in this section the analysis is divided into two: (1) observe the effect together together, and (2) look at the effect partially. at this stage it will be the result of the calculation in the model summary, especially the numbers r square below: table 2 results of correlation coefficient model r r squar e adjust ed r square std error of the estima te 1 09 47 0947 0946 0.0463 3 large numbers adjusted r square (r 2) is 0.946. the figure can be used to see the effect of disilin work and the work environment to employee performance by calculating the coefficient of determination (kd) using the following formula: the figure has the intention that the influence of labor discipline and working environment together the performance of employees amounted to 84 , 66%. as for the remaining amount of 15.34% (100% 84.66%) influenced by other factors outside the model. table 3 hypothesis test results simultaneous mode l s u m of s q u ar es df mean squar e f sig. regre ssion resid ual total 4,723 0,264 4,987 2 123 125 2,361 0,002 sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 60 significant taraf 0.05 and degrees of freedom (dk) with the provisions of the numerator; the number of variables = 2, and denumerator; the number of cases 2 or 126-2 1 = 123. with these provisions, the figure of 3.07 f table. from the calculation results obtained by the research figures 10999.949 f> f table 3,07 so that h0 and h1 accepted. meaning there is influence between work discipline and working environment together on employee performance. the magnitude of the effect of 84.66%, and the influence of other variables outside the regression model amounted to 15.34%. for it used the t test, while to see the magnitude of the effect, use the numbers beta or standardized coeffecient, t test results can be seen in the table below: table 4 results of hypothesis testing partial unstan dardize d coeffic ients stand ardiz ed coeffi cients mo del b std er ror beta t sig 1 ( c o n s t a n t ) x 1 x 2 0,007 0,487 0,512 0,077 0,014 0,015 0,723 0,727 based count results, the figure amounted to 34.660 research t> t table amounted to 1.65734 so that h0 rejected h1 accepted. that is the discipline of work and significant positive effect on employee performance. the amount of influence between labor discipline on employee performance amounted to 0,517, or 51.7%. in connection with these findings, the second hypothesis of this study that states "work discipline positive and significant effect on the performance of employees of pt putra mandiri sidoarjo ardian" proven or acceptable. based on the results of the calculation, the figure amounted to 34.879 research t> t table amounted to 1.65734 so that h0 rejected h1 accepted. it means "work environment positive and significant effect on employee performance". the amount of influence among sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 61 the working lingkungna the performance of employees amounted to 0.524 or 52.4%. in connection with these findings, the third hypothesis of this study that states "the working environment positive and significant effect on the performance of employees of pt putra mandiri sidoarjo ardian", proven or acceptable. 5. discussion basically employee performance is the result of a complex process, both derived from self (internal factors) as well as the strategic efforts of the company (kartikandari, 2002). of the many factors that influence employee performance, this research focuses on work discipline and working environment. this is based on initial research conducted by the author in pt ardian putra mandiri sidoarjo, which indicates that their employees work processes that have not been efficient and effective. this may be because employees lack the discipline of work and working environment is less supportive in the process of employee work done, this will have an impact on the work done by an employee becomes inefficient and ineffective. referring to the above description, this study aimed to examine the effect of labor discipline and the work environment to employee performance pt ardian putra mandiri sidoarjo. this study therefore aimed to examine and analyze the influence of labor discipline and the work environment either together or partially on the performance of employees of pt putra mandiri sidoarjo ardian. the analysis model used in this research is multiple linear regression analysis. the rationale for this model because researchers wanted to know the effect of labor discipline and the work environment to employee performance pt ardian putra mandiri sidoarjo. based on the results of multiple linear regression analysis using spss obtained test results simultaneously through the f test, which gained fhitung 1099.949 at a significance level of 0.05 and ftabel of 3.07 at a significance level of 0.05. thus, fhitung (1099.949)> f table (3.07), meaning multiple linear regression of y on x1 and x2 are real or in other words there is the influence of labor discipline and the work environment to employee performance pt ardian putra mandiri sidoarjo. based on the results of the calculation of multiple linear regression analysis can know the amount of donations given by the variable work discipline and working environment on the performance of employees of pt putra mandiri sidoarjo ardian together (r2) is 0.946 or 94.6%, this means that the performance of employees by 94 , 6% were influenced by the discipline of work and the working environment and the balance of 5.4% influenced by other factors not examined or outside the research model. sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 62 based on the partial test results in this study can be seen that the variables of work discipline (x1) effect on the performance of employees of pt ardian putra mandiri sidoarjo, while the partial effect of variable work discipline (x1) on the performance of employees of pt ardian putra mandiri sidoarjo (y) can described as follows: the results of partial testing found that the variable work discipline (x1) obtained t amounted to 34.660 larger than ttabel 1.65734 with a significance level of 5%, which means if there is an increase in labor discipline against the employee's performance of 34.660, it will improve performance an employee of one unit score, this implies that any changes or additions to the value of labor discipline will improve employee performance. the amount of the contribution is partially indicated by the partial determination coefficient (r2) of (0.719) 2, or 51.7%, so it can be seen the influence of labor discipline on the performance of employees amounted to 0,517, or 51.7%. the results of the study variables work discipline in this study becomes important to investigate in the management of human resources, dikarenkan labor discipline of employees is determined by various factors, according saydam (2006), factors affecting the upright whether or not a work discipline in an organization, among others: a , the size of the compensation b. presence or absence of exemplary leadership within the company c. presence or absence of definite rules that can be used as a handle d. courage leadership in taking action e. presence or absence of supervision led f. presence or absence of attention to the employees g. created habits that support the establishmentdisciplinary of athus the company need to be concerned about the discipline of an employee such as making strict sanctions for employees who return home earlier than a predetermined schedule. so with the sanctions is expected employees can work more optimally so that employee performance can be improved. as for the work environment variables (x2) obtained t amounted to 34.879 larger than ttabel 1.65734 with a significance level of 5%, which means if there is an increase in the work environment to employee performance amounted to 34.879 then it will improve employee performance by one unit score, this implies that any changes or additions to the value of the work environment will improve employee performance. the amount of the contribution is partially shown by the partial determination coefficient (r2) of (0.727) 2, or sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 63 52.4%, so it can be seen the influence of the work environment on employee performance is equal to 0.524 or 52.4%. from these two independent variables studied it, showed that the variables that have a dominant contribution to employee performance pt ardian putra mandiri sidoarjo is a working environment (x2), it is indicated tcount work environment variables of the total of 34.879 and has a value r2 of the total of 0.524 or 52.4% so that the work environment variables (x2) is the dominant variables contributing to employee performance. working conditions greatly affect the performance of employees. this is because the work environment is an environment in which employees work and can affect them in performing the duties imposed. working conditions that support employee awareness will be interpreted as a good working environment for personal comfort and to ease the task well, employees tend to prefer a physical environment that is safe and comfortable. temperature, light and other environmental factors, it should not be too extreme (too much or too little) such as too hot, too dim. in general, working conditions are not usually affect the performance of employees, as long as the working environment is not really good. based on these results, the pt ardian putra mandiri sidoarjo need more memperhatian working environment. with their good work environment employees will feel comfortable and excited about the work that the company's goals can be achieved. 6. conclusion based on the analysis and discussion that has been done in the previous chapter, it can be concluded that after conducting studies that tested four hypotheses contained in this study, obtained assay results of the fourth hypothesis is as follows: a. the results of hypothesis testing first demonstrated that labor discipline and working environment together have a positive impact on the performance of employees of pt putra mandiri sidoarjo ardian. the magnitude of the effect of 94.6% and the influence of other variables outside the regression model at 5.4%. it is because all the independent variables are variables that are affecting the performance of employees. b. the second hypothesis test results showed that the work discipline has a positive influence on employee performance pt ardian putra mandiri sidoarjo. the results of this study provide evidence that the labor discipline through the indicator timeliness, well-dressed, able to take advantage and move the equipment properly, resulting in a satisfactory job, follow the workings of the specified organization (regulatory compliance), and the responsibilities of employees are high sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 64 in companies effect on increasing employee performance. the better work discipline, the higher the performance of the employee. c. the third hypothesis test results showed that the working environment has a positive influence on employee performance pt ardian putra mandiri sidoarjo. the study also proves that the work environment through a demanding workplace conditions to work better, work facilities that support, availability of auxiliary work tools, work environment is quite comfortable and safety when working on the performance of employees. the better the working environment, the better the performance shown by employees. d. the fourth hypothesis test results showed that the working environment has dominant influence on employee performance pt ardian putra mandiri sidoarjo, so as to improve employee performance can be achieved by creating a good working environment. 7. suggestions based on the discussion on the analysis of data and the conclusions that have been raised, then need to develop policies that are expected to provide benefits in ardian pt putra mandiri sidoarjo. the policy implication of this research was obtained from the analysis of influence between the variables, where the results of the analysis is known that the dominant variable in influencing employee performance. on the basis of the suggestions aimed at pt ardian putra mandiri sidoarjo if the management company wants to increase employee performance through the work environment, then the thing to note is to provide a work environment that supports the creation of a harmonious working atmosphere and dynamic which is expected to improve the performance of employees of pt ardian putra mandiri sidoarjo. suggest to employees of pt putra mandiri sidoarjo ardian should participate in making the workplace more conducive environment, such as providing comments and suggestions in the structuring and management of the company's work environment. the results of this study can be used as a source of ideas for the development of this research in the future, the research suggested expansion of this analysis, employee performance evaluation should be taken of the employee performance appraisal data that already exist in the company. if not possible alternative is to limit the respondents in the research samples only at the level of employees who have the same standard of performance assessment. to avoid or minimize the possibility of a questionnaire which is not feasible because of ignorance of the respondents also to get more accurate results we recommend using direct interviews sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 65 with respondents using questionnaires that have been there. references ahyari, agus, 2002, manajemenproduksi (perencanaansistemproduksi), buku ii, cetakanke 3, yogyakarta :penerbit bpfe, anaroga,panji. 2000, psikologikerja,jakarta, rinekacipta. asmiarsih, tety. 2006. pengaruhpengawasanterhadapdisiplinker japegawai kantor badankepegawaian daerah brebes, fakultasilmusosial universitas semarang bernadin, h. john and joyce e.a. russel. 2001. human resources management an experimental approach, mc. graw hill, inc. international edition effendi sofian; singarimbun, masri, 2006. metodepenelitiansurvei. jakarta: lp3es. ghozali, imam. 2005, aplikasianalisismulitivariatedengan program spss, edisi2 , semarang, badanpenerbit universitas diponegoro gie, liang. 2000. administrasiperkantoran modern. yogyakarta: liberty gouzalisaydam. 2000. manajemensumberdayamanusia. gunungagung. jakarta hadisutrisno, 2000. analisisregresi, edisi 2000,yogyakarta, penerbitandi offset. hardjana, 2007.komunikasi intrapersonal & interpersonal, yogyakarta, kanisius. hasibuan, melayu, sp. 2009. manajemensumberdayamanusia, edisirevisi. jakarta: bumiaksara. hasibuan, sayuti. 2000. manajemensumberdayamanusia :pendekatan non sekuler. muhammadiyah university press and magister manager ums. surakarta. herman. 2009. pengaruhlingkungankerjadanbudayaorga nisasiterhadapkinerjapegawailalulintasj alan raya (llajr) pemerintah kota medan, tesis magister manajemen, medan. universitas sumatera utara. mangkunegara, anwar prabu,. 2009. evaluasikinerjasumberdayamanusia, bandung :penerbitrefikaaditama mangkunegara, anwar prabu. 2004. perilakudanbudayaorganisasi. bandung: refikaaditama. mangkuprawira.,s.&hubies av., 2007., manajemenmutusumberdayamanusia, cetakanpertama, ghalia indonesia, bogor. nitisemito, alex s. 2000.manajemenpersonalia. jakarta :ghalia indonesia. norianggono, hamid dan ruhana.2014.”pengaruh lingkungankerjafisikdanlingkungankerj a non fisikterhadapkinerjakaryawan (studipadakaryawan pt telkomsel area iii jawa-bali nusra di surabaya)”, jurnaladministrasibisnis (jab)| vol. 8 no. 2. sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 66 render barry and jay heizer, 2001.prinsip-prinsip manajemenoperasi. pt salembaemban patria, jakarta. ricard l.2003.manajemen sumberdayamanusia.jakarta :penerbiterlangga rivai, veithzal; ahmad fawzimohdbasri. 2005. performance appraisal. jakarta: pt. raja grafindopersada. rivai, veithzal; jauvanisagala. 2009. sumberdayamanusiauntuk perusahaan dariteorikepraktik. jakarta: pt. raja grafindopersada sastrohadiwiryo, b. siswanto. 2003. manajementenagakerja indonesia pendekatanadministratifdanoperasional, bumiaksara, jakarta sedarmayanti, 2001.sumber dayamanusiadanproduktivitaskerja.mand armaju, bandung. sedarmayanti. 2009. tata kerjadanproduktivitaskerja.bandung : cv mandarmaju. siagian, sondang. 2008. manajemensumberdayamanusia, cetakankelimabelas. jakarta :bumiaksara sihombing, umberto, 2004, pengaruhketerlibatandalampengambilank eputusan, penilaianpadalingkungankerjadanmotivas iberprestasiterhadapkepuasankerja, pamongpraja. jakarta. simamora, henry, 2004, manajemensumberdayamanusia, edisike 3. stie. ykpn. yogyakarta sudarmanto.2009. kinerjadanpengembangankompetensi sdm teori, dimensidanimplementasidalamorganisasi. yogyakarta; pustakapelajar sugiyono, 2005.metodepenelitianbisnis. alfabeta, bandung. sugiyono, 2009.metodepenelitianbisnis (pendekatankuantitatif, kualitatif, dan r&d). alfabeta, bandung. sukadar, 2009, “analisispengaruhlingkungankerja, gaji, dan reward terhadapkepuasankerjapegawai kantor imigrasikelas i khusus medan” tesissekolahpascasarjana universitas sumatera utara medan sulaiman, wahid, 2004, analisisregresimenggunakanspss.conto hkasus&pemecahannya, yogyakarta :andi suryadiperwirosentoso. 2001. model manajemensumberdayamanusia indonesia, asia dantimurjauh, bumiaksara. jakarta sutrisno, edy. 2009. manajemensumberdayamanusia. kencanaprenada media group, surabaya. wusanto dan majendra. 2009. sistem informasi sumber daya manusia, salemba empat, jakarta. sinergi, volume 6, number2 september 2016 sarwanithe effect of work discipline and work environment on the performance of employees 67 sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 32 the integration of cultural resources management in disaster management at special region province of yogyakarta deffi ayu puspito sari, ph.d1), rizky afriono, m.si.(han)²) 1universitas bak rie, 2professional certification agency of disaster management e-mail: , deffi.sari@bakrie.ac.id , rizkyafriono@gmail. com (diterima : 16-dese mber-2016; direvisi: 18-januari-2017; d ipublikasikan : 05-maret-2017) abstrac t.the republic of indonesia la w nu mber 24 year 2007 on disaster emphasizes that the protection of natio nal assets is in line with law no. 11 year 2010 on the cultural heritage. yogyakarta province has 12 disaster hazards and has five complet e archaeological cultura l layers in indonesia. in the event of a disaster, potential da mage to the cultural heritage i s e xposed. the archaeological cu ltural layer consists of prehistoric, classical, isla mic and colonial. the lac k of research re lated to cultu ral heritage in the province resulting in increasing vulnerability of cultural heritage and society. using qualitati ve method with indepth interview, the aim of this study is to analyse the management of cultural heritage fro m the perspective of disaster manage ment. archaeological cultural layers that embedded into the realm of cultura l heritage is defined as a nationa l asset that should be protected. the result shows that the management of cultura l resources in the province is not yet integrated with disaster management. however, the results of the archaeological identification of cultura l heritage in each cu ltural lay er in yogyaka rta showed the development of community adaptation to the disaster. utilizat ion of cultural heritage as an element of the panca gatra has been impartia l that affected the regional resilience and security in fac ing the disaster. both of these p roblems can be overcome by integrating the cultural resources management and disaster management, the establishment of a n eme rgency response team on cultural preservation, and disaster risk analysis on cultural heritage that annexed by bpbd and cultura l office o f yogyakarta province. keywords : cultural resources management; disaster management; contingency plan; cultural he ritage; archaeological identificat ion. introduction yogyakarta special region (yogyakarta province) is one of 34 provinces in indonesia. at the time of colonialism in the area that nowadays known as yogyakarta province, colonial governments builtmany public facilities, places of worship and the palace which reveal european architecture. yogyakarta province has comprehensive wealth of historywhich describes the development of human culture from prehistoric to modern times. yogyakarta province consist of four regencies (sleman, bantul, gunung k idul and k ulon progo) and one city (yogyakarta). table 1shows that each regency or city has all the cultural layers, except the city of yogyakarta which does not have prehistoric relics. however, yogyakarta city has most objects of cultural heritage compare to other areas, namely 265 relics that dominated by islamic relics. relics from colonial period also mostly founded in yogyakarta city. in other areas such as sleman, relics from classical period is dominating, while the largest prehistoric relics are dominating in gunung k idul. data from 1815 to 2011 shown that 12 types of disasters(potential disaster) have occurred in yogyakarta province [1]. sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 33 this potential disasters means that the disastrous events in the past is likely to occur again in the future. the potential disaster in yogyakarta province, among others: floods, epidemic disease outbreaks, extreme waves and erosion, earthquakes, tsunamis, failed technology, droughts, volcanic eruptions, strong winds, landslides, fires and social disaster. in the event of disaster, damage to the cultural heritage is exposed. table 1 list of cultural relics in yogyakart a p rovince no. re gency /city period total prehistoric classi c islam coloni al 1 yogyakart a 2 148 115 265 2 sleman 1 88 66 10 165 3 bant ul 13 5 56 29 103 4 gunung kidul 43 2 6 2 53 5 kulon progo 3 5 22 9 39 source: http ://p urbakalay ogy a.com/p otensi-y ogy akarta.html accessed february 22, 2017 [2]. based on historical data, yogyakarta province's government has made a priority scale based on the potential disaster in five regency/city. table 2 shows that bantul regency is an area that has most types of potential disasters , which are : earthquake, tsunami, floods, landslides, e xtre me weather and drought. while yogyakarta city is the area has only one kind of potential disaster, name ly the earthquake. vie wed fro m the side of potential volcanic eruption, sle man regency is the most exposed. table 2 p riority zone of disaster management in special region of yogyakarta priority zone of disaster management district/town 1. earthquake 1 bantul 2 yo gy akarta 3 sleman 2. tsunami 1 bantul 2 kulon progo 3. flood 1 bantul 2 kulon progo 4. landslide 1 bantul 2 sleman 3 gunung kidul 5. volcano erup tion 1 sleman 6. extreme weather 1 bantul 2 sleman 7. drought 1 bantul 2 sleman 3 gunung kidul source : disaster m anagement plan sp ecial r egion of yo gy akarta 2013-2017 p .84 [3]. this study considers the importance of detailed standard operating procedures for disaster management related to preserving cultural resources in th e event of disaster. management of cultural resources, not mere ly about the preservation of cultural heritage, but also must includes research related to cultural resources. the problem addressed in this research, a mong others: 1. ho w does the handling of cultural heritage in disaster manage ment? 2. how cultura l heritage reflects community resilience infacing disasters? ii. resea rch m ethods this is a qualitative research with inductive approach and aim to get deeper conclusions on individual or organizational e xpe rience. the subjects of this study were people who were directly involved as a resource [4]. they are the head of the provincial disaster management agency, archaeology department of indonesia university, http://purbakalayogya.com/potensi-yogyakarta.html sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 34 archaeology department of ga jah mada univ ersity, deputy of rehabilitation and reconciliat ion of national disaster management agency yogyakarta chapter, directorate of cultura l heritage preservation and museum of min istry of culture and education, div ision of heritage preservation and cultural va lue of yogyakarta province cu ltural office, borobudur unit cu ltural heritage preservation body, yogyaka rta touris m serv ice, puro pa kuala man museum, yogyaka rta province legislative body, piyungan islamic boarding school, and the head of yogyakarta province culture office. the object of study is the social situation which consists of three components, namely the place (space), actor (perpetrator) and activities (activity). in qualitative research data analysis is more focused during the process along with the field data collection. the initia l step of data analysis has been conducted since the search for a variety of informat ion fro m secondary sources that are useful as giving early descriptions of research problems. it is intended as an anticipation before performing data reduction so that the collected data is suffic ient for analysis [5]. to test data that is valid, reliable and objective, e xtension of observation, improved persistence, triangulation, discussions with colleagues, negative case analysis and me mber check was done to confirm data credibility. iii. ana lysis a nd discussion 3.1 an overview of re search data yogyaka rtaprovince's cultural heritage spread evenly over 5 city/regency. yogyakarta c ity does not have a layer of prehistoric archaeological heritage. this does not rule out the possibility ofprehistoric cultural layers discovery in the future. the development of archaeological research as the first step of the cultural layers ' collection will continue to grow and discover new things. movable cultural heritage objects have a weakness that is not located at its original site, usually placed on museums or research centres. objects of cultural heritage in yogyaka rta province can be classified by type, in archaeological research methods artefacts can be classified based on several categories, among others [6]: 1. based on type (instrument massive, fla kes bar, picka xe square, pipisan and mortar as well as coins). 2. based on materials (cera mics, glass objects, bone tools, and tools shells and clams). 3. based on specific objects (je wellery and roc k art). based on the data classification, movable cultural heritage objects in yogyakarta province has twelve type name ly: decorative architectural, decorative orna mental, fla kes bar, pic ka xe square, pipisan and mortar, stupik a/tablets, coins, ceramics, pottery, metal, je wellery and iconography. arca can be classified into the iconography because actually the embodiment of the gods codified to a materia l object. 3.2. movable cultural heritage objects in yogyakarta province table 3 shows that 94 p ieces or 35.47% movable cultural heritage objects ' location are unknown, while 64.52,% a re detected. movable cultural heritage is placed on three areas, namely bantul, sle man and yogyakarta city. bantul district has the largest number of movable cultural heritage objects that is 133 pieces, then sle man with 31 pieces and in the city of yogyakarta as many as 7 p ieces. cultura l layers of movable cultural heritage in the province shows the most important lining is the prehistoric which is equal to 42 objects (26%), followed by a layer of the classical period a mounted to 41.50% , the isla mic cultura l layer (14.71%) and colonia l cu ltural layer (1.50% ). table 3 number of movable cult ural heritage object s in yogyakarta p rovince recency/ city culture layer of yogyakarta pro vince prehistoric classic islam colonial tot al bant ul 52 64 17 0 133 (%) 39.10 48.12 12.78 0.00 yogyakart a 6 1 0 0 7 (%) 85.71 14.29 0.00 0.00 sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 35 sleman 23 8 0 0 31 (%) 74.19 25.81 0.00 0.00 not known 31 37 22 4 94 (%) 32.98 39.36 23.40 4.26 tot al 112 110 39 4 265 (%) 42.26 41.51 14.72 1.51 source: bpcb diy (2015), rep rocessed by the author 3.3 non-movable cultural heritage objects in yogyakarta province fro m table 4, data regardingnon-movable cultural heritage in the yogyakarta province shows that94.01% location is known and amounted to 5.98% is in unknown location. mostly storedin bantul (29.91%), fo llo wed by 29.05% in sle man, gunung kidul (14.52% ), 11.11% in kulon progo, yogyakarta (9.40%) and in unknown location of 5.98%. table 4 number of non-movable cultural heritage object s in yogyakarta p rovince recency/ city culture layer yogyakarta pro vince prehistoric classic islam colonial not known tot al bant ul 0 5 16 4 10 35 (%) 0.00 14.29 45.72 11.43 28.58 29.91 sleman 1 22 0 1 10 34 (%) 2.94 64.71 0.00 2.94 29.41 29.05 gunung kidul 8 5 0 1 3 17 (%) 47.05 29.41 0.00 5.88 17.64 14.52 kulon progo 0 1 3 7 2 13 (%) 0.00 7.69 23.07 53.84 15.38 11.11 yogyakart a 0 0 2 0 9 11 (%) 0.00 0.00 18.19 0.00 81.82 9.43 not known 0 0 3 0 4 7 (%) 0.00 0.00 42.86 0.00 57.14 5.98 tot al 9 33 24 13 38 117 (%) 7.69 28.21 20.51 11.11 32.48 100 source: bpcb diy (2015), reprocessed by the author in bantul, non-movable cultural heritage objects is dominated by islamic cultural layer (45.72%), followed by a layer of classical culture(14.29% ), colonia l cultural layer of 11.43% and an unknown cultural layer of 28.5 8% . bantul has no non-movable cultura l heritage representing prehistoric cultural layers. sle man is do minated by the classical period a mounted to 64.71% , followed by a layer of colonial and prehistoric cultures both by 2.94% and 29.4% unknown cultural layer . gunung kidul has the most nonmovable cultura l heritage objectsin prehistoric cultural layer of 47.05%, followed by a layer of classical culture by 29.41%, a layer of colonial culture by 5.88% and an unknown cultural layer of 17.64%. the largest non-movable cultural heritage in kulon progo is represents by colonial cultural layer that is 53.84% , fo llo wed by a layer of isla mic culture (23.07%), c lassical culture (7.69%) and unknown cultural layer of 15.38%. yogyakarta has 18.18% nonmovablecultura l heritage in isla mic period and unknown cultural layer of 81.81%. 3.4handling cultural heritage; the implementation in accordance with the mandate of law no. 4 in 2007 that cultural heritage is inc lude in the category of a national asset which should be protected and secured [7]. handling cultural heritage will be described in sequence based on the concept of cultural resource manage ment and disaster manage ment. early stage in the concept of cultural resource manage ment is the protectionthat consist of zoning, security, ma intenance, preservation and restoration. stag es of zoning, security and maintenance in disaster manage ment is includes in the pre-disaster phase, the preservation is more focused on emergency response and restoration phase is associated with post-disaster phase. rebuilding preparedness is the initia l processes in disaster management integrated with the management of cultural resources. the imple mentation of disaster manage ment has the scope of pre-disaster, disaster and postdisaster response and risk reduction efforts. disaster risk reduction is not in the end nor in early stages of the cycle, but in every stage of the disaster manage ment cycle. cultura l resource management is very strongly linked to the disaster sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 36 manage ment because it has the scope to preserve the cultural heritage through the protection, development and utilizat ion of cultural resources, if both cycles is integrated, cultural heritage can be utilized as much as possible for the benefit of the nation. conclusion regarding the imple mentation of cultural resources manage ment in yogyakarta p rovince, na mely : 1. the absence of disaster management in the cultural heritage set in indonesia, including standard operational procedure in handling cultural heritage in time of disaster. 2. cultural heritage is not included in the contingency plan of yogyakarta province. 3. the absence of risk assessment of the cultural heritage in the province. 4. lac k of integration between the management of cultural resources with disaster manage ment in the province 5. the absence of a strong partnership between bnpb with relevant agencies and other stakeholders in disaster manage ment on cultural heritage. 6. the paradig m of d isaster risk reduction has not been imple mented properly in the management stagesof cultural resources. 7. at the time o f disaster response and post-disaster, cultural heritage is still not a top priority that led to the threat of loss or damage. 8. lack of imp le mentation of risk management or train ing to increase the capacity of the cultural guard to be an e xpert. 9. the absence of an emergency response plan and team on cultural heritage in the province. 3.5. suggestions related to the handling of cultural heritage in disaster management management of cultural resources in disaster manage ment comprises the step of protection, develo pment and utilization. figure 1 shows the three stages of disaster manage ment phases intersect with that of preparedness, eme rgency response and post-disaster. preservation, research, revitalization and development of character are available in both cultural resource manage ment and disaster manage ment. preservation is a concept that should exist in all three phases of disaster manage ment, the need for research and revitalization will result in better disaster manage ment and development of character is the e xpected output of disaster manage ment. disaster management cultural resources management cultural resources managemen in disaster management protection p o s t d is a s te r disaster risk reduction d is a s te r r e s p o n s e zoning security maintenance strenghtening heritage rescue p r e d is a s te r restoration early warning build emergency response plan ensure that an emergency response plan mobilization conservation team mitigation rebuilding reserve heritage development utilization r e s e a r c h r e v it a li z a ti o n i n a ti o n a l c h a r a c te r b u il d in g , s tr e n g h te n in g d ip lo m a c y adaptation preservation of cultural heritage figure 1 integrat ion of cultural resource management in disast er relief source: the law no. 11 y ear 2010 [8], iom [9] rep rocessed by the author figure 2 illustrates the structure of e mergency response in the province. making cultural he ritage emergency response team (tim tanggap darurat cagar budaya ttdc b) is required for the movement of the security and rescue in accordance with the procedures for handling cultural heritage. the involve ment of the military (tni) in accordance with the international military cultura l resources working group (imcurw g) [10]will strengthen its role in terms of security of cultura l heritage. data co llect ion sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 37 figure 2 st ruct ure of the cultural heritage emergency resp onse source: ifrc [11], rep rocessed by the author there are four risks in cultural heritage associated with the environment as shown in figure 3, that are the risk of utilization, in this case, including for research; environmental risks and hazards, na mely the reduction of the value of cultural heritage ; risk of damage due to improper handling and safety; and evacuation risk for not comply ing with operational standards. calculat ion of security includes threat prevention, early warning, the cultural heritage and human evacuation, temporary shelter and priorit ies collection by colour. preventive manage ment include manage ment system, storage security, standard list of vulnerabilities collect ion and evacuation operations and the imple mentation of cultural resource manage ment. figure 3 disast er risk analysis on cultural heritage source: chien lien, sie and son g [12], rep rocessed by the author figure 4 shows the disaster risk analysis in cultural heritage, it is suggested by this research in order to facilitate the cultural heritage e me rgency response decision ma king. figure 4 flow of cultural emergency resp onse source: chien lien, sie and son g [12], rep rocessed by the author 3.6. communityresilience that reflected incultural heritage definition of interest risk an alysis current state record in contrast to the goal y es n o list needs and rescue priority needs will be held result analysi s differe nt to the goal y es n o regular checking expert survey cost benefit analysi s collection of working tool  check list  risk analysis  resilience analysis  priority scale heritage data co llection :  info herit age  impor tan t v alues  history of dis aster  security  rescue  vulnerab ill ity bpbd (regional disaster management agency) bpcb (cultural heritage preserv ation agency ) security: tni and upt (technical implementation unit) e vacuati on: academics relev ance agencies, priv ate and community ttdcb (cultural heritage emergency response team) sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 38 the results of cultural heritage identification can be seen in table 5. it s hows that in prehistoric human settlements is built with the aim of adaptation to the threats of nature in the form o f wild an ima l attacks. at the megalithic e ra when human has started to understand the concept of living, great building has made, the remains left are pedestals, menhirs and stone tombs. using the technology of stone slabs and cobblestone the remains showed their efforts to maintain the condition of the building related to shocks, this indicates that in the past people had tried to adapt to the threat of earthquakes. table 5 ident ification of resilience based on samples of cult ural p rop erties in yogyakarta p rovince cultural heritage resilience analysis resilience m ovable heritage pickaxe iconogr ap hy ceramics sp ecie m onumental jewellery pip isan dan m ortar decorative architectural a. ump ak based on morp hological an aly sis p edestals p rehistory have noticed shocks seen from the stone as a counterweight earthquake b. stone tomb m orp hological for ms infused gr ave stone with stone construction earthquake cultural heritage resilience analysis resilience p lates are arranged well as how to create a solid rock tomb. c. m enhir m orp hology form of menhirs emb edded in the ground with the amp lifier rock on the right and left as strenght m enhir. earthquake c. plinth statue the technology to manufacture the p linth statue in m ataram p eriod showed adap tation to shocks, as seen from the connection stones and the key stone earthquake d. statue arca made with andesite intact with material r eduction technology . heavy statues will strengthen the standing p osition of the shock. earthquake decorative ornamental shale bar stup ika tablet earthenware immovable heritage iconogr ap hy structure a. tomb the orientation of the tomb of the north south and is located on a h igh hill has been the continuity tomb earthquakes, landslides, tsunamis and floods sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 39 cultural heritage resilience analysis resilience b. m onument develop ment of the region durin g the colonial day s notice tsunami threat not visible from the construction of the southern coast tsunami buildin g a. temp le m eru shap ed temp le, continued technolo gy vertical, horizontal dial, false arch and key stone is strengthening temp le from shocks. the p resence of a thin p rotective cement on the temp le. earthquake and disaster erup tion b. m osque continuing technological p rehistory and hindu m ataram seen from the p illar, kori agung, roof overlap p ing, connectin g vertical and hor izontal technology and was created on the flat ground earthquakes and landslides b. gate wearin g the great kori system in crowded p laces this attention to human security the earthquake and the evacuation of the east and west orientation c. church noting shocks in buildin g a lar ge sp ace earthquakes d. palace during the hindu m ataram ratu boko p alace was built with landslide, drought disaster, cultural heritage resilience analysis resilience attention to the structure of the landslide. sp atial keraton yogy akarta is located at the midp oint between m erap i and the south coast erup tion and tsunami disaster (at the time of islam) e.pagod a wearin g techno lo gy as a crutch teak roof of the boat earthquake f. school build with various iron p ole, thick walls with lar ge door windows earthquake and fire g. factory wall h efty earthquake h. house wall h efty earthquake i. gutter m ataram ditch built with attention to northsouth flow of water that are not accommodated drought site a. cave goa braholo is a settlement that takes into account environmental threats the threat of early man, in the form of wild animal attacks. b. various site geograp hically p lacement of the buildin g on the hindubuddha of the environment have their risk analy sis region a. prambanan temp le there has been a chan ge of lo cation have their disaster risk reduction p lan by sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 40 cultural heritage resilience analysis resilience relocatin g the temp le in the p ast b. guest houses already very modern with a trop ical adap tation. the p resence of light roof and p laster on the slop es erup tion and landslides source: author fro m field observations in the later period, na me ly the hindu matara m, quantum leap in terms of technology has occurred. the construction materia ls used are made fro m andesite stone which considered sacred at that time. andesite stone is heavy, it requires modifications and adaptations to be able to utilize as building materia ls. the technology to assemble the stone building then developed in the form o f keystone, vertical join, horizontal join, pseudo curved, sand foundation and cement coating for bu ild ings. the technology mentioned above was adapted to mitigate earthquakes and landslides, while the thin cement is used as a coating to protect building fro m da mage due to mount merapi eruptions. period of matara m isla m is a continuation o f the classical period of mataram hindu, at this time more advanced technology was found . not only the concept of environmental wisdom, butalso structural mit igation technology became more advanced than ever before. the concept of pillar, a vertical join, horizontal join, overlapping roofs, k ori agung arches are a showing their attempt to deal with the earthquake. even very safe position of the palace showed the consideration to protect from volcano eruption and tsunami that comes fro m the south side. in colonial period, the colonia l government al ready consider the great potential of south coast related to tsunami. in addition to the hazard fro m mount merapi eruption and earthquakes , in this period, windows and doors are made in large sizeto mitigate fire hazard, and combine with thick wallwill beca me safe when anearthquake strike . 3.7. utilization of cultural heritage objects in yogyak arta province all of the positive things above shows the richness values that inherited as cultural heritage in indonesia. cultura l resource management is needed to preserve these heritage so those values can be inherited to future generations. being an area that prone to disaster, yogyakarta province need to embed its cultural resource manage ment and disaster management. further research opportunities and challenges is needed in order to uncover the past history of indonesia known as the archipelago. the study can be used as identity reinforce ment that can be deployed through forma l or informal education such as excursions. the main objective of the cultural heritage utilizat ion is to strengthen national identity. utilization of cultural heritage in yogyakarta province should be done not only aimed to increase number of tourists , but to pursue quality. national resilience is derived fro m the resilience of individuals, fa milies, commun ity, region and state. to achieve this, regulations that consider the content and the concept of panca gatrais needed, not only strengthen the economy but to keep the balance of all gatra, namely the ideological, politica l, econo mic , social, cu ltural and defence. iv. conclusions a nd recomm endat ions 4.1 conclusions imple mentation of cultural resources management of yogyaka rta province have not been integrated with disaster manage ment. it resulted in poor imp le mentation of disaster risk reduction in the preservation of cultural heritage. on the other hand yogyakarta provincia l disaster management plans also have not entered the cultural heritage as an important ele ment. in accordance with the mandate of law no. 4 in 2007 that cultural heritage is include in the category of a national asset which should be protected and secured. derivatives of these problems is the lack of cultural heritage sinergi , volume 7, nomor 2 maret 2017 deffi ayu p uspito sari, p h.d1), rizky afriono, m.si.(han)²) the integrat ion of cultural resources management in disaster management at special region p rovince of yogyakarta 41 consideration in the contingency plan, the absence of strong lin kages between relevant agencies, the lack of mitigation, eme rgency response, and assessment of cultural heritage during disaster. in prehistoric times commun ity has adapted to threats that exist at that time , like a wild anima l, but already there is also understanding the structure of earthquake-resistant buildings. at the time of the hindu mataram knowledge of disaster adaptation can be seen from the technology used , for e xa mple the keystone, vertical join, horizontal join, and cement coatings to mit igate various hazard such as earthquakes, landslides, and volcanic eruption. at the time of islamic matara m, knowledge to adapt to tsunami began to appeared, for those palace of yogyakarta in placed in a safe position from the hazard of mount merapi eruption and tsunami fro m the south sea. technology in the islamic period is the continuation of the previo us period, another e xa mple of co mmun ity resilience related to cultural heritage isin colonial period, colonial style building is a very solid structure against earthquakes and other disasters, windows and doors are made in large size to mitigate fire haza rd, it is worth to notice that in this period concept of safety is already considered in build ing construction. there is less attention to the utilization of cultural heritage to strengthen national identity and security. as the development of tourism is more oriented in increasing quantity. cultural heritage is a physical object, but it contains the non-physical values , to maintain those values is a form of prudent utilizat ion that not mere ly fro m the viewpoint of economic standpoint. 4.2 recommendation suggestion of this research is the need for integration of cultural heritage in disaster manage ment. this integration is the main solution to improve the handling of cultural heritage as a whole. in this study, researchers recommend the table the integration between disaster manage ment and the management of cultura l resources, the flow of risk analysis of cultural heritage as that can be performed on all stagesof disaster management, and the structure of the eme rgency response of cultural heritage. references [1] bpbd diy.(2013). rencana penanggulangan bencana daerah istimewa yogyakarta. yo gy akarta: bpbd diy hal. 22-23 [2] http ://p urbakalay ogy a.com/p otensi-y ogy akarta.htmlaccessed at january 2, 2016 [3] bnpb (2013). rencana penanggulangan ben cana daerah istimewa yogyakarta 2013-2017. jakarta: bnpb [4] wahy uni, sri. (2012). qualitative research method: theory and practice. jakarta: penerb it salemba emp at. p age 1. [5] soegiy ono. (2012). metode pen elitian kuantitatif, kualitatif, dan r&d. bandung: cv. alf abeta. p age 225 [6] puslitarkenas. (2008). m etode penelitian arkeolo gi: indonesia: puslitarkenas. p age 39-81 [7] dpr ri.(2007). undang-undang republik indonesia tentang penaggulangan ben cana no.4 tahun 2007. jakarta: dprri.p asal 1ay at 1 [8] dpr ri (2010). undang-undang republik indon esia no.11 tahun 2010 tentang cagar budaya.jakarta: dpr ri bab1 pasal1 [9] iom . (1998). m odule bi-4/c protection of cultural heritage. handbook. iom . [10] im curwg. (2009). international m ilitary cultural resources workin g group [11] ifrc. (2007). disaster response and contingency planning guide.geneva: ifrc.p age 6 [12] chien, lien, sie dan son g (2011). disaster risk assesment methods andresponse plans for cultural heritage in taiwan. touy uan: university of touy uan http://purbakalayogya.com/potensi-yogyakarta.html sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 58 the effect of organizational culture, environmental work, leadership style on the job satisfaction and its impact on the performance of teaching in state community academy bojonegoro meithiana indrasari universitas dr soetomo, surabaya, indonesia e-mail: meith iana.indrasari@unitomo.ac.id (diterima : 18-dese mber-2016; direvisi: 20-januari-2017; d ipublikasikan : 05-maret-2017) abstrac t. t ri dharma college task, name ly imp le ments education and teaching, researc h and community service. so me o f the factors that can affect the performance of the lecturer are organizational culture, work environment, leadership style, and j ob satisfaction. for this study aims to assess the effect of organizational cu lture, wo rk envi ronment, leadership style on job satisfaction lecturers as well as to analyze the influence of organizational culture, work environ ment, leadership style to t he performance of lecturers. this study took 64 samples through census methods, and data collected through questionnaires in the form of likert scale research. results of analysis proving the hypothesis indicated that organizational culture, work environment, leadership style positive impact significant job satisfaction lecturer bojonegoro state co mmu nity college. a s well as organizational cu lture, work environ ment, leadership style, job satisfaction and positive effect significant the performance of lecturers bojonegoro state community co llege. suggested to the management commun ity college that facult y performance can be optimized, provide incentives for lecturers in order to work in the world of education through awards, str ive to the increase salaries, keeping in touch, comfort, creat ion of competition, healthy performance appraisal is fair, providi ng an opportunity to follow the scientific activit ies at a cost from the academy. encourage to continue their education to a higher level. motivate to do research, and community service to the relevant fie lds at the expense of the institution/college or gr ants. keywords : organizational cu lture, work environ ment, leadership styles, job sat isfaction, performance lecturer introduction the law of the republic of indonesia n umber 14 2005 on teachers and lecturers in article 1 (2) defines that the lecturers are professional educators and scientists with the main task of transforming, developing and disseminating science, technology, and the arts through education, research, and community service. based on such understanding, it is understood that the faculty has an important role in realizing the educational process. lecturer in charge of teaching and learning in higher education. whether or not qualified for education at the college relies o n existing lecturers at universities, colleges for major capital in the continuity of life lies in the performance of faculty resources. sedarmayanti (2011), and mangkunagara (2004) expressed the notion of performance that the performance is a means to get better results than organizations, teams, and individuals how to understand and manage the performance within the framework of the objectives and standards, and attribute requirements agreed. the task of the lecturer based decision coordinating minister for development supervision and administrative reform no. 38 / kep / mk.waspan / 8/1999 about functional lecturer and credit figures mentioned article 3 lecturer principal tasks are to carry out educational and teaching at universities, research, and community service. results of research indrarini (2009) that in order to improve the job satisfaction of the sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 59 lecturers in order to achieve optimal performance need to be done, including by way of keeping all the rights of lecturers are given properly and on time, the increase in regular salary is expected by the lecturer as a form of respect for the work ethic and long work at the academy, also always keep a good relationship with a fellow faculty nonformal meeting so that the relationship is always maintained. with regards to comfort, to be created by way of fair competition academy provides an assessment of the fair lecturers. strauss and sayles (in handoko, 2001) found that the lecturer has a good performance issue related premises job satisfaction. according to handoko (2001) job satisfaction typically perform better work than employees who are not getting job satisfaction. lecturers will feel satisfied with the work that has been or is being run, if it deems doing what has to meet expectations, according to the purpose it works. if a lecturer craves for something, then he had a hope, so he will be motivated to take action towards the achievement of these expectations, if expectations are met, then he will be satisfied. in this case, the lecturers get job satisfaction is high, are expected to have peak performance. the relationship between the organizational culture with the success or failure of an organization's performance is believed by scientists, actors organization, and management as well as a number of researchers are close. organizational culture is believed to be one of the determining factors for the success of the organization's performance. in addition, factors working environment is everything that is around those workers who can influence him in performing the duties imposed (n itisemito, 2000). according to mangkunagara (2005), the work environment is all the physical aspects of the work, psychological work and workplace regulations which may affect job satisfaction and productivity gains. while working condition is a situation where a good working environment includes the physical and non-physical environment which can give the impression of a pleasant, safe, calm, and so forth. if good working condition then it can accelerate the emerging sense of satisfaction in the employee which in turn can have a positive influence on employee performance, and vice versa if the poor working conditions of the employees will have job satisfaction. another factor determining the success of an organization's perfo rmance is the leadership style. the organization will work if leaders have the ability in the field, and every director has different skills, such as technical skills, human and conceptual. contributions leader is a must in the organization, in order to improve employee performance. the role of leadership style to bring the good working conditions will lead to the achievement of organizational goals conditions as well as possible. a leader will say successful if it can bring working conditions conducive to work for its employees. based on the above, this study intends to determine the extent to which performance of the lecturers at the academy of community affairs sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 60 bojonegoro influenced by the organizational culture, work environment and leadership style and job satisfaction. b. review of literature 2.1 lecturer performance mathis-jackson (2004) defines performance (performance) basically is what is done or not done by employees. employee performance is common for most jobs include elements that include (1) q uantity of results, (2) the quality of the results, (3) the timeliness of results, (4) presence, and (5) the ability to work together. mangkunagara (2004) expresses the notion of performance (performance) is the result of the quality and quantity of work accomplished by an employee in performing their duties in accordance with the responsibilities given to him. prawirosentono (1999) defines performance is a result of work that can be achieved by a person or group of people in an organization, in accordance with the authority and responsibilities of each, in an effort to achieve the goals of the organization in question legally, does not violate the law and in accordance with moral and ethical , law of the republic of indonesia number 14 2005 on teachers and lecturers in chapter i of article 1 affirmed on duty, profession, organizers of formal education, qualifications, and competence of lecturers as follows: a. lecturers are professional educators and scientists with the main task transform, develop, and disseminating science, technology, and the arts through education, research, and community service. b. professional is the work or activities carried out by someone and become a source of income for life that requires expertise, skills, or skills that meet quality standards or certain norms and require professional training c. education provider is a government, local government, or the people who provide education in formal education, d. academic qualification is a diploma level academic education must be owned by a teacher or professor according to the type, level, and formal education unit in the assignment of e. competence is a set of knowledge, skills, and behaviors that must be owned, lived and ruled by a teacher or lecturer in performing the task professionalism. lecturer said competent according to the law of the republic of indonesia number 14 of 2005 on teachers and lecturers, if the lecturer has mastered the four basic competencies, namely: (1) competence pedagogy is the ability to manage learning students (2) competence personality is the ability personality steady, morals noble, wise and dignified as well as being exemplary of sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 61 learners (3) professional competence is the ability of mastering the subject matter is broad and deep. (4) social competence is the ability of faculty to communicate and interact effectively and efficiently with students, fellow teachers, parents/guardians of students, and surrounding communities (trianto 2006). in accordance law on teachers and lecturers namely law no. 14 of 2005, section 48 paragraph 1, which establishes the status of lecturers made up of full-time lecturers and professors are not fixed, then the performance of lecturers in question in this research is the performance of tenured faculty. the definition of full-time lecturers are lecturers who work full-time status as educators remain at a certain higher education unit, while part-time lecturers are lecturers who work part-time status as educators are not fixed on a certain unit of higher education. based on the decree of the coordinating minister for development supervision and administrative reform no. 38 / k ep / mk. waspan / 8/1999 concerning functional lecturer and credit score. article 3: the main duties of lecturers is to carry out education and teaching in higher education, research and community service. article 4 (2) tri dharma college 1.1 job satisfication dole and schroeder (2001) stated job satisfaction can be defined as the feelings and reactions of individuals to the work environment, while according to testa (1999); job satisfaction is an emotional excitement or positive statements the results of the assessment one job or job experiences. according to locke in testa (1999) also pointed out that job satisfaction reflects the attitude of excitement or positive emotions that come from a person's work experience. the excitement felt by the employees will provide a positive impact for employees attitude. vroom (1964) in kadir and educate ardiyanto (2003) illustrates job satisfaction is "having a positive attitude towards work in a person. evidence of research on job satisfaction can be divided into several categories such as leadership, psychological needs, appreciation of business, management ideology and values, factors of the design work and the workload. nasarudin (2001); igalens (1999), koesmono (2005); job satisfaction is an emotional statement in a positive or pleasant as the result of an assessment of a person's work experience or employment. the statement implies that job satisfaction is a positive emotional state can be unpleasant or resulting from an assessment of the work or the experiences of one's work. job satisfaction an individua l depends on the individual characteristics and the job situation. each individual will have a different sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 62 level of satisfaction in accordance with the prevailing value system in itself. the more aspects of the work in accordance with the interests and expectations of the individual, the higher the perceived level of satisfaction and vice versa. according to lawler (in robbins, 1996), a measure of satisfaction is strongly based on the realities facing and received as compensation for effort and energy given. job satisfaction depends on the suitability or the balance between expected to reality. indikasi job satisfaction usually associated with eg absenteeism, labor turnover rate, work discipline, loyalty and conflict in the workplace, etc. 1.2 organizational culture organizational culture is the value(value)that are outlined in a policy of an organization organization. value is the difference between one organization with others. the organizational culture becomes very important for the organization itself. according to sarplin (in lako, 2004) states that organizational culture is a system of values, beliefs, and habits in organization interacting with the structure of the formal system to generate behavioral norms of the organization. kotter and heskett (in soetjipto, 2002), argues that organizational culture is basically the norms and values prevailing in the organization, for example; promptness in providing services to customers, while the value reflects the confidence or belief they will be certain things that can bring success, for example a greater emphasis on customer satisfaction. if both are compared, the norm is relatively more visible and easier to change. stoner et. al, (1996) culture(culture)is a complex combination of assumptions, behaviors, stories, myths, metaphors and various other ideas that became the one to determine what it means to be members of a particular community. c ulture is often defined as an organization with the values, symbols that are understood and adhered together, possessed an organization so that members feel the family and creating a condition of the organization's members feel different from the organization. this is supported by the opinion of robbins (2007) which states that organizational culture is a system of shared meaning adopted by member of organization that distinguishes the organization different from other organizations. 1.3 working environme nt komarudin(1983), stating that the work environment is the social, psychological, and physical in companies that affect the workers in their duties. the social life is with regard to the belief values, attitudes, views, or lifestyle patterns in the neighborhood as well as the interaction between people who work in a good company that interaction between superiors and subordinates or with colleagues. psychological life is interaction behaviors of employees in a company where they work. sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 63 everyone in a company brings a hope of fulfilling the needs and desires. there is a need and desire to encourage them to behave to satisfy the needs and desires. physical life is the interaction between employees and the environment in which employees work. according to mangkunagara (2005), stating that the working environment is all the physical aspects of the work, psychological work and workplace regulations which may affect job satisfaction and productivity gains. according to supardi (in subroto, 2005), states that the work environment is the circumstances surrounding the workplace, both physical and non-physical that can give the impression of a pleasant, secure, comfortable, and feel at home in the work. according to supardi (in subroto, 2005), states that the work environment is the circumstances surrounding the workplace, both physical and non-physical that can give the impression of a pleasant, secure, comfortable, and feel at home in the work. according to sedarmayanti (2001) stated that the working environment is a whole tool tooling and material facing the surrounding environment in which one is working, working methods, as well as the arrangement works both as individuals and as a group. 2. methods 2.1 subject of research the population is lecturers at the academy of community affairs bojonegoro (pdd polinema) in bojonegoro that have the characteristics of active as a lecturer on three courses, namely program engineering studies informatics, courses computerized accounting and engineering auto motive. the sampling technique used in the study is the census method. researchers used census method that is put on all members of the population as an object of research. total population in the study amounted to 64 people. 2.2 data retrieval techniques required data in this study are primary data, research data obtained from the original source or without using the medium. primary data in this study a questionnaire. a questionnaire study was designed based on the study of theoretical and empirical researc h that is formulated in the form of open and closed questions. data identity of the respondent obtained through open questions, while the perception data obtained through a closed question. the instrument used in this study using a list of standard questio ns that have previously been tested for compliance, so that a list of standard questions last modified on grains as deemed necessary the appropriate level of understanding of respondents were sampled. sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 64 2.3 data analysis techniques regression analysis of this single is done one by one between the variables of organizational culture (x1) to job satisfaction lecturer (z), work environment (x2) on job satisfaction lecturer (z), leadership style variable (x3) on job satisfaction lecturer ( z), and between the variables of organizational culture (x1) on the performance of lecturers (y), work environment (x2) on the performance of lecturers (y), leadership style variable (x3) on the performance of lecturers (y), variable job satisfaction on (z ) to variable lecturer's performance (y). simultaneous testing is used to test the significance of multiple correlation analysis of the relationship between two variables or more independent variables (independent variable) with one dependent variable (dependent variable). in this study, multiple regression analysis between the variables of organizational culture (x1), work environment (x2) as well as the leadership style variable (x3) to job satisfaction lecturer (z), and between the variables of organizational culture (x1), work environment (x2 ), leadership style variable (x3), variable job satisfaction on (z) to variable lecturer's performance (y). 3. results and discussion 3.1 results hypothesis evidence analysis model that shows the relationship with the organization among culture faculty job satisfaction can be seen from the results of the regression analysis as in table 1. table 1 regression analysis of organizational culture influence on jo b satisfactionlecturer model coefficient to calcu late p val ue criteria constants 16.326 organizati onal culture (x1) 0.844 7.968 0.0 00 significant r2 0.506 regression analysis results are obtained a constant coefficient of 16.326 and cultural organization (x1) of 0.844 in order to obtain the regression model: z = 16.326 + 0.844 x1 ............ ........................................ (1) the model shows that each of the increased or decreased perception/understanding of the organizational culture by 1% will be followed by an increase or decrease in job satisfaction lecturer of 0.844%. analysis of the model showing the sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 65 relationship antaralingkungan work on job satisfaction of faculty can be seen from the results of the regression analysis as shown in table 2 table 2 regression analysis effect of work environment on job satisfaction lecturer model coeff icient to calcula te the p value criteria constants 18.05 7 working environment (x2) 0.684 6.522 0.000 significant r2 0,407 regression analysis results are obtained constants and coefficients of 18.057 working environment (x2) is 0.684 so the regression model is obtained: z = 18.057 + 0.684 x2 ................... ................................. (2) the model shows that there is an increase or decreases any perception/understanding of the work environment 1% will be followed by an increase or decrease in job satisfaction lecturer at 0.684%. analysis of the model showing the relationship and style of leadership and job satisfaction faculty can be seen from the results of the regression analysis as shown in table 3 table 3 regression analysis influence of leadership style on job satisfaction lecturer model coeff icient to calculat e the p value criteria constants 14.00 3 leadership style (x3) 0.906 8.974 0.000 signifi cant r2 0.565 regression analysis was obtained constants and coefficients of 14.003 leadership style (x3) amounted to 0,906 in order to obtain the regression model: z = 14.003 + 0.906 x2 ................... ................................. (3) the model shows that there is an increase or decreases any perception/understanding leadership styles 1% will be followed by an increase or decrease in job satisfaction lecturer at 0.906%. analysis model that shows the relationship between organizational culture with faculty performance can be seen from the results of the regression analysis as shown in table 5.4 sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 66 table 4 regression analysis influe nce of organizational culture on performance lecturer model coeffi cient to calcula te the p value criteria constants 23.29 6 cultural organizatio n (x1) 0.385 3.070 0.003 significant r2 0.132 regression analysis was obtained constants and coefficients of 23.296 organizational culture (x1) of 0.385 in order to obtain the regression model: y = 23.296 + 0.385 x1 .................... ................................ (4) the model shows that there is an increase or decreases any perception/understanding of organizational culture 1% will be followed by an increase or decrease in performance lecturer at 0.385%. analysis model that shows the relationship between the environment and working with faculty performance can be seen from the results of the regression analysis as shown in table 5 table 5 regression analysis influence at work towards lecturer performance model coef ficie nt to calcula te the p value criteria constants 27.7 16 working environment (x2) 0.39 4 2.201 0.031 significa nt r2 0.07 2 regression analysis was obtained constants and coefficients of 27.716 working environment (x2) amounted to 0.394 so obtained regression model: y = 27.716 + 0.394 x2 .................... ................................ (5) the model shows that there is an increase or decreases any perception/understanding of the work environment 1% will be followed by an increase or decrease in the performance of lecturers at 0.394%. analysis of the model showing the relationship style of leadership with faculty performance can be seen from the results of the regression analysis as shown in table 6 sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 67 table 6 regression analysis influence of leadership style on lecturer performance model coeffi cient to calcula te the p value criteria constants 21.850 leadership style (x3) 0.606 3.124 0.003 significa nt r2 0.136 regression analysis was obtained constants and coefficients of 21.850 leadership style (x3) of 0.606 in order to obtain the regression model: y = 21.850 + 0.606 x3 ..................... ............................... (6) the model shows that there is an increase or decreases any perception/understanding of leadership styles of 1 % will be followed by an increase or decrease in the performance of lecturers at 0.606%. analysis model that shows the relationship between job satisfaction and performance of lecturers can be seen from the results of the regression analysis as shown in table 7 table 7 regression analysis the effect of job satisfaction against lecturer performance model coeffi cient to calcula te the p value criteria constants 18.470 job satisfaction (z) 0.554 3.495 0.001 signific ant r2 0.165 regression analysis was obtained constants and coefficients of 18.470 job satisfaction (x3) of 0.554 in order to obtain the regression model: y = 18.470 + 0.554 z .................... ................................ (7) the model shows that there is an increase or decreases any perception/understanding of job satisfaction 1% will be followed by an increase or decrease in the performance of lecturers at 0.554%. 3.2 discussion many factors influence job satisfaction lecturers, such as motivation, organizational culture, work environment and more. especially for the organizational culture has an important role in the implementation of the tri dharma university. because the organization's culture is a pattern of beliefs and expectations held by members of the organization. trust and expectations resulted in values that sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 68 strongly affecting the behavior of individuals and groups of members of the organization. organizational culture can influence the attitude of a teacher doing an activity of teaching, research and community service. based on the results of regression analysis showed that the higher the perception of teachers about understanding organizational culture, the higher the satisfaction of faculty, conversely the lower the cultural understanding of the organization, the lower his or her satisfaction. it is also supported by the results of the lok and crawford (2004) which states that, the influence of organizational culture and leadership style on job satisfaction and organizational commitment. the same thing also delivered rogga (2001) that organizational culture can improve employee job satisfaction. the second hypothesis suggests that the higher the level o f comfort lecturers to their work environment, then the faculty job satisfaction will be higher. and conversely, the lower the level of comfort lecturers to their work environment, the job satisfaction of the lecturers will also be lower. a good working environment and conditions conducive to lead to comfort someone in work and will make a person feel job satisfaction. a good working environment is a driving force for the employees so that they feel comfortable in doing their jobs, can be more energized, and ultimately be able to work optimally, so it can not be denied that the working environment in a company getting attention even further than at the times history. this can happen because of rising living standards as a person, then he will likely want an atmosphere that provides support to do the job. this is consistent with the statement mangkunagara and supardi (in mangkunagara, 2005), states that the working environment is all the physical aspects of the work, psychological work and workplace regulations which may affect job satisfaction and productivity gains. supardi (in subroto, 2005), states that the work environment is the circumstances surrounding the workplace, both physical and non-physical that can give the impression of a pleasant, secure, comfortable, and feel at home in the work. the third hypothesis suggests that the higher the positive perceptions of leadership style in leadership, the faculty job satisfaction will be higher. and conversely, the lower the positive perceptions of leadership s tyle in leadership, the faculty job satisfaction will be even lower. good leadership style to maximize productivity, job satisfaction, performance, growth, and easily adapts to any situation that develops and is all around us. it is also supported by the results of research peter and crawford (2004) which states that, the influence of organizational culture and leadership style on job satisfaction and organizational commitment. the fourth hypothesis many factors affect job performance lecturers, such as motivation, organizational culture, work sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 69 environment, organizational commitment, job satisfaction and more. in various studies, organizational culture is one of the factors influencing the performance can influence the attitudes of the faculty in doing his job running the tri dharma college mandate is education and teaching, research and community service. in this study, showed results that did not differ from previous studies, based on the results of regression analysis showed that the contribution of organizational c ulture on the performance of state community college lecturer bojonegoro by 13.2%. with a contribution of only 13.2%, the culture of the organization expressed significant effect on the performance of state community college lecturer in bojonegoro. so 13.2% as a result of the indicators x1 and the rest is likely influenced by other variables that are not included in this study. the results are consistent with research yuwalliatin (2006) which states that organizational c ulture, motivation and commitment directly influence employee performance. the fifth hypothesis indicates that the contribution of the work environment on the performance of state community college lecturer bojonegoro by 7.2%. with a contribution of 7.2%, the organizational culture expressed significant effect on the performance of state community college lecturer in bojonegoro. so 7.2% as a result of the indicators x2. this shows that the higher the level of comfort lecturers to their work environment, then the lecturer's performance will be higher. and conversely, the lower the level of comfort lecturers to their work environment, the job satisfaction of the lecturers will also be lower. a good working environment and conditions conducive to lead to comfort someone in work and will make someone incentive to improve performance. a good working environment is a driving force for teachers so that they feel comfortable in doing their jobs, can be more energized, and ultimately be able to work optimally, so it can not be denied that the working environment in an organization gets the attention it further than the timeprevious time. this can happen because of rising living standards as a person, then he will likely want an atmosphere that provides support to do the job. the results are consistent with research sima'niah (2013), which states that work discipline, work environment and work motivation partial effect on the performance of teachers and employees. the sixth hypothesis suggests that the higher the positive perceptions of leadership style in leadership, the faculty performance will be higher and conversely the lower the positive perceptions of leadership style in leadership, the faculty job satisfaction will be even lower. good leadership style to maximize productivity, job satisfac tion, performance, growth, and easily adapts to any situation that is evolving and is around us. it is also supported by the results of masrukhin and sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 70 waridin (2006), which states that work motivation, job satisfaction, and leadership has a positive influence on employee performance and organizational culture is not a positive influence on employee performance. the seventh hypothesis that the contribution of job satisfaction on the performance of state community college lecturer bojonegoro 16.5%. with a contribution of 16.5%, the job satisfaction expressed significant effect on the performance of state community college lecturer in bojonegoro. so 16.5% as a result of the indicators z. this shows that the higher the level of job satisfaction lecturer, the lecturer's performance will be higher. and conversely, the lower the job satisfaction of faculty, the lecturer's performance will also be lower. the results are consistent with research masrukhin and waridin (2006), which states that work motivation, job satisfaction, and leadership has a positive influence on employee performance. 4. conclusion from the research that has been conducted on organizational culture, work environment, leadership style on job satisfaction and performance lecturer academy of community affairs bojonegoro can be concluded as follows: a. based on the research results obtained that, there are significantly positive and significant correlation between organizational culture, work environment, leadership style on job satisfaction and performance of community state academy lecturer bojonegoro b. partially organizational culture, work environment, leadership style positive and significant impact on job satisfaction lecturer bojonegoro state community college, as well; c. organizational culture, work environme nt, leadership style, job satisfaction and a significant positive effect on the performance of state community college lecturer in bojonegoro. 5. suggestion based research results can be given suggestions as follows: a. to increase the high satisfaction for faculty efforts are needed to build and improve the understanding of the organizational culture to the entire academic community, especially professors, by creating values for the organization, socialized values the value and followed by running in both of these values. because a good understanding of the lecturers will be the organizational culture will bring job satisfaction and performance improvements for faculty itself. sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 71 b. a good working environment and a comfortable and conducive could be one contributing factor to job satisfaction lecturers, hence the need for a serious effort to creating a good working environment climate. in addition to the organizational culture and work environment, leadership style factors also play a role in increasing job satisfaction and performance faculty lecturers. because good leadership style (democratic, transformative) is preferred and will further encourage the lecturers we re satisfied in their work and have a high performance. c. for other researchers, the results of this study can be used as the data to conduct similar research on other factors that influence job satisfaction and performance lecturer at the same institution or similar and in other institutions. bibliography mangkunegara. anwar prabu 2005. evaluasi kinerja sdm. refika aditama. bandung nitisemito, alex s.. (2000). manajemen personalia: manajemen sumber daya manusia. ghalia indonesia, jakarta arikunto, suharsimi. 2006. prosedur penelitian suatu pendekatan praktik. jakarta : pt. rineka c ipta. handoko, t. hani. 2001. manajemen personalia & sumberdaya manusia. yogyakarta: bpfe harbani, pasolong. 2008. kepemimpinan birokrasi, bandung : cv.alfabeta. hasibuan, malayu s.p. (2011). manajemen dasar, pengertian, dan masalah. edisi revisi. cetakan ke-4. bumi aksara, jakarta. hasibuan, malayu. (2007). manajemen sumber daya manusia. pt bumi aksara, jakarta. indrarini. 2009. tesis. “pengaruh motivasi dan kepuasan kerja terhadap kinerja dosen akademi swasta di kota semarang”. kartono, kartini, 1994, psikologi sosial untuk manajemen, perusahaan dan industri, jakarta. pt. raja grafindo persada keputusan menteri negara koordinator bidang pengawasan pembangunan dan pendayagunaan aparatur negara nomor : 38 / kep / mk. waspan / 8 / 1999 kirk l. rogga, 2001. human resources practices, organizational c limate and employee satisfaction, academy o f management review, july, 619 – 644. kotter, john p. and heskett, james l., 1992, corporate c ulture and performance, new york: the free press, a division of mac millan, inc. linz, susan j., 2002, job satisfaction among russian workers, william davidson institute working paper, reseacrh feelow wlliam davidson institute university of michigan pp. 8-15. lodge, b. dan c. derek. 1996, organizational behavior and design (terjemahan sularno tjiptowardoyo. jakarta: pt. gramedia. sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 72 lok, peter, dan crawford, john, 2004, the effect of organizational culture and leadership style on job satisfaction and organizational commitment, the journal of management development, vol. 23 no. 4. lok, peter, dan crawford, john, 2004, the effect of organizational culture and leadership style on job satisfaction and organizational commitment, the journal of management development, vol. 23 no. 4. mangkunegara, anwar prabu. 2004. manajemen sumber daya manusiaperusahaan. bandung: pt remaja rosdakarya. martono. 2013.faktorfaktor yang mempengaruhi kinerja dosen pada akademi manajemen bumi sebalo bengkayang.(journal socioscientia) februari 2013 volume 5 no. 1 masrukhin dan waridin, 2006, pengaruh motivasi kerja, kepuasan kerja, budaya organisasi, dan kepemimpinan terhadap kinerja pegawai, ekobis, vol. 7 no. 2 mundarti. 2007. tesis. faktor-faktor yang mempengaruhi k inerja dosen dalam melaksanakan proses belajar mengajar di prodi kebidanan magelang politeknik kesehatan semarang tahun akademik 2005 / 2006 panggabean, mutiara s. 2004. manajemen sumber daya manusia. bogor: ghaliaindonesia permendikbud no 48 tahun 2012 robbins, stephen p., 1996 perilaku organisasi, konsep-kontroversiaplikasi, edisi bahasa indonesia, jakarta, pt. prenhalindo. robbins, stephen p., coulter, mary. 2007. manajemen. indeks, jakarta. muhidin dan abdurahman. 2007. analisis korelasi, regresi, dan jalur dalam penelitian. band ung: pustaka setia bandung. sedarmayanti. 2011. membangun dan mengembangkan kepemimpinan serta meningkatkan kinerja untuk meraih keberhasilan. bandung: refika aditama. sedarmayanti. 2001. sumber daya manusia dan produktivitas kerja. bandung: mandar maju sri trinaningsih. 2007. faktor-faktor yang mempengaruhi kinerja dosen akuntansi. (jurnal akuntansi dan auditing volume 8/ no. 1/november 2011 : 1-94 srikandi, wiwik. jurnal. pengaruh kepemimpinan, budaya organisasi, motivasi berprestasi terhadap k inerja dosen stiesia surabaya thoha, miftah. 2003. kepemimpinan dalam manajemen. jakarta: rajawali pers. undang-undang republik indonesia nomor 14 tahun 2005 tentang guru dan dosen. 2006. jakarta: diperbanyak oleh asa sinergi , volume 7, nomor 2 maret 2017 meithiana indrasari the effect of organizational cult ure, environment al work, leadership st yle on the job sat isfact ion and it s imp act on the performance of teaching in st ate community academy bojonegoro 73 mandiri. untung widodo. analisis pengaruh gaya kepemimpinan dan kepuasan kerja terhadap kinerja bawahan (studi empiris pada perguruan tinggi swasta di kota semarang) issn : 1907-6304. jurnal fokus ekonomivol. 1 no. 2 desember 2006 : 92 108 veithzal rivai. 2004. manajemen sumber daya manusia untuk perusahaan. cetakan pertama. pt. raja grafindo. jakarta. wiwik srikandi. 2010.pengaruh perilaku kepemimpinan, budaya organisasi, dan motivasi berprestasi terhadap k inerja dosen di stiesia surabaya (jurnal akuntansi, manajemen bisnis dan sektor publik (jambsp)) vol. 6 no. 3 juni 2010 yuwalliatin, sitty, 2006, pengaruh budaya organisasi, motivasi, dan komitmen terhadap k inerja serta pengaruhnya terhadap keunggulan kompetitif, ekobis, vol. 7 no. 2 cheng, bl., c ham, t.h., and shaheen m. 2014. [6] puslitarkenas. (2008). metode pene litian arkeologi: indonesia: puslitarkenas. page 3981 [7] dpr ri.(2007). undang-undang republik indonesia tentang penaggulangan bencana no.4 tahun 2007. jakarta: dpr-ri.pasal 1ayat 1 [8] dpr ri (2010). undang-undang republik indonesia no.11 tahun 2010 tentang cagar budaya.jakarta: dpr ri bab1 pasal1 [9] iom. (1998). module bi-4/c protection of cultural heritage. handbook. iom. [10] imcurwg. (2009). international military cultural resources working group [11] ifrc. (2007). disaster response and contingency planning guide.geneva: ifrc.page 6 [12] chien, lien, sie dan song (2011). disaster risk assesment methods andresponse plans for cultural heritage in taiwan. touyuan: university of touyuan sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 41 the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java chandra kartika economics faculty of the university of wijaya putra email : chandrakartika@uwp.ac.id (submit : 03 august 2017; revised : 12 august 2017; accepted : 25 august 2017) abstract.this research aims to provide a paradigm change business players in order to develop business in the manage with the help of a smart marketing and design technology sophisticated pengolaan governance and business can be developed with good, and can increase community economic welfare levels in the vicinity of micro and small and medium enterprises mount bromo probolinggo east java, empirically the economy in and around micro and small and medium enterprises probolinggo is still not optimal and the support of the government also has not been maximum attempts to help businesses on micro and small and medium enterprises around gunung bromo probolinggo. researchers attempting to help to resolve the problems of the economy in and around mount bromo by trying to examine the variables related to the smartphone technology-based marketing and technology based marketing design also in order to help the micro and small and medium enterprises can solve problems usahannya that there are still many obstacles. researchers took samples around 100 people merchants who have micro and small and medium enterprises business around mount bromo and using the methods of quantitative analysis and using the appliance amous sam analysis and location already determined around mount bromo, from a ) is expected to found a positive result against the business development of micro and small and medium enterprises and can help the sales profit level and can improve the level of technology used by entrepreneurs and increase the level of community welfare micro and small and medium enterprises mount bromo probolinggo in east java. key word : marketing intelligence, marketing achitecture, business development i. introduction emergence of competition in the world of business is something that cannot be avoided. with the competition, the company the company is faced with many opportunities and threats both from outside and from within the land. for that each company is required to always understand and understand what is happening in the market and what are the customer desire, and various changes in the business environment that is able to compete with other companies. the company should try to minimise the weakness of its weakness and maximize the strength he possessed. thus the company is required to be able to select and specify the strategies that can be used to facing competition. small and medium enterprises (msmes) holding a very large role in promoting the indonesian economy.except as one of the alternative new jobs, micro and small and medium enterprises also plays a role in encouraging economic growth rate after the crisis nmoneter 1997 at the big companies have difficulties in developing its business.this time, micro and small and medium enterprises have contributed to large on regional income and the income of the indonesian state. msmes is a form of the small business community that its establishment based on the initiative someone.most people assume that micro and small and medium enterprises menguntungka only certain parties only. micro and small and medium enterprises have a very important role in reducing the level of unemployment in indonesia. micro and small and medium enterprises can absorb many of indonesian workers who are still mengganggur.besides micro and small and medium enterprises have contributed to large on regional income and the income of the indonesian state. micro and small business grow in indonesia, when monetary crisis extends to multi-dimensional crisis that befell indonesia since 1997. this crisis turns to motivate the growth of the small business sector which is growing absorb manpower and further strengthen the innovations in the development of small businesses. this can be seen through the development of micro and small and medium enterprises throughout the year 2011 proved to be able to contribute to the formation of the gdp of 57,60%. details as follows, 32,02% by micro, some 10,99% by small businesses and a number of 14,59% by medium businesses. the average value of the formation of the gdp by msmes rp 24.8 million per business unit. msmes are able to recruit new labor as much as 2,32 million people, or sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 42 equivalent with 97,8 percent of new jobs created by the micro and small and medium enterprises and big business in 2011. the absorption of new labor is done by the micro, amount 1.94 million people, including employ himself. small businesses are able to absorb new labor as much as 292.000 people. (msmes build the economy, 2013) the number of economic growth in east java which is quite fantastic reached to 125 hkd per cent at the end of the 2012 didongkrak by msme sector (micro small and medium enterprises). even from the pdrb east java capable of reaching rp 1.000 triluin, by 54 per cent obtained from 4.2 million micro and small and medium enterprises and growing in east java.(msmes determine the success of the governor and vice governor of east java,2013) where indicated in the picture below : picture 1.1 percentage of economic growth of micro and small and medium enterprises east java. in addition in 2011 there 783.758 business unit, or rose 5,53 percent compared to the year 2010. from that number, 766.783 business unit or 97,83 percent of whom is a small industry. meanwhile the number of medium industry as much as 16.182 business unit (2.07 percent) and large industries 793 unit (0.10%).(ikm role in the economic development in east java,2012). in a reliable entrepreneurs of course there are various support to become an entrepreneurs, one of which is a member of the family, as shinta widjaja kamdani in group synthesis. the time is still to come in the company of the family, he supported by the supervisor expatriates who very professional (is nothing other than his father). where in running the business which he claimed to be able to do all the case itself and to become independent in doing business, besides that shinta also received support from the father through the education of education hard. and the things that make shinta is able to survive in running the family business. and get many challenges shinta finally succeeded in managing the group synthesis in developing its business with does not perform one downloading show. where it is proved that an entrepreneur has the support from her parents. image of msmes are not being tended by the reign of probolinggo district as follows : picture : business players in the mount bromo probolinggo information technology that is developed is currently used not only for the daily transactions of the organization but also to support the competitive advantages especially in making marketing strategy. information technology to support the marketing strategy one is business intelligence. marketing intelligence in marketing strategies used to answer the questions of top management and provide the facts that there is good organization sites internal environment and external environment. marketing intelligence are the link between the information system and top management. some of the supporting components of business intelligence among other financial intelligence, management intelligence, marketing intelligence, accounting intelligence, etc. (aaker, 2007). then from the research henard and szymanski (2001,p.374) namely how sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 43 companies in the design and implementation of process products that have excellence and how the influence of successful product of marketing performance to fill needs by reassignment. different views will be how the orientation of the company on innovation is built through market orientation strategy, to achieve the success of new products can dilihal from the performance of the market as a competitive advantage. marketing strategy intellengence to enter a market is planned to provide goods or services to target new markets and the spread of them there. when importing or exporting services, refers to establish and manage the contract in a foreign country. only a few companies that have successfully operates in the niche market without ever do expansion to new markets but most businesses achieve increased sales, brand awareness and business stability with entering new markets. develop a strategy into the market a win-win involve in-depth analysis about some factors, sequentially planned. in marketing intelligence system is part of the marketing information system and are closely linked to the system of the internal notes of the company and marketing research. kotler 2012, defines the marketing intelligence system as a set of procedures and resources used by the managers to get daily information about the developments related to the marketing environment. this information can be derived from the company itself, consultants marketing research, advertising bureau, suppliers, customers and even competitors. market than mothers is part of the marketing information system and are closely linked to the system of the internal notes of the company and marketing research. the information can be derived from the company itself, consultants marketing research, advertising bureau, suppliers, customers and even competitors. marketing intelligence has many used professionally as a tool for diplomacy by companies that compete. the competition became the basis of the development of marketing intelligence, both national and global. decrease the efficiency and the inability of the company to get the spider is the indicator to collect a marketing intelligence. this intelligence market system company to see the position of the competition in the business of a kind, as well as determining the position of our company compared with other companies that are of a kind. rersearch gap according to chen 2010 chen and das 2010 chung et al 2011 that occurred on the market intelligence is the assumption that business will be able to easily integrate these activities with the existing business process. there is little recognition that is given to the creative businessmen to overcome difficulties faced by business every day to manage the sales volume and can improve the information flow into and out of their business. the literature recognizes the importance of the collection of this information for effective business decisions. sivaramakrishnan et al 2010 , marketing intelligence is considered related to technology-based data collection system used by a business to gather information. the web 2.0 platform that is described as being very useful in the process of collecting information. the literature highlighted the growth in the desire to have the intelligence business is used as a term that only refers to the data collection through technology. the benefits of effective business intelligence practices can be seen: prevent cycles lost better control increase revenues to maintain the client better understand the capacity of the organization and the ability to provide early warning system. muylle, (2012) in the research said that the marketing arhcitecture in competitive competition requires the banks to better understand the external environment its business in competing with the other banks, besides in this research emphasizes the superiority of information in determining the strategy as the competitive advantage on perbankkan party that have the ability to analyze these factors competition in providing decision making strategies to anticipate compete using a marketing approach architecture in the competition and can improve marketing performance. micro and small and medium enterprises in bromo probolinggo very poor by fenomenologi that msmes there many are not noted by the regional government probolinggo though many that have not yet been able to develop micro and small and medium enterprises one with the other so that happened penurunnya welfare levels and the economy and the revelation of the unemployment rate around the regency of bromo probolinggo, proven many residents who do not work and there is no income every day so that this will need to be assisted with by researchers to facilitate the level of economy, so that the population can develop micro and small and medium enterprises in and around bromo probolinggo. so the author want to reveal the problem of the role of marketing and marketing architeture intellence technology based in helping business development on the micro and small and medium enterprises mount bromo probolinggo in jawatimur. a. the benefits of research is useful to provide a paradigm change creative businessmen in order to develop business in the manage with the help of a smart marketing and design technology sophisticated pengolaan governance and business can be developed with good, and can meningkatakan community economic welfare levels in the vicinity of micro and small and medium enterprises mount bromo probolinggo east java, empirically the economy in and around micro and small and medium enterprises probolinggo is still not optimal and the support of the government also has not been maximum attempts to help businesses on micro and small and medium enterprises around gunung bromo probolinggo. researchers attempting to help to resolve the problems of the economy in and around mount bromo by trying to examine the variables related to the smartphone technology-based marketing and technology-based sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 44 marketing design also in order to help the micro and small and medium enterprises can solve problems business that there are still many obstacles ii. literature marketing intelligence is aqcuiring process and analyze the information to understand market potential customers and which still exist), the attitudes and behavior of the market and to access changes in the business environment or in other words marketing intelligence is the ability to understand and analyze and assess the internal and external environment related to the consumers, competition, the market and the industry to support the decision making process (aaker, 2007). some of the reasons why the organization requires the system of marketing intelligence is the organization has little contact with customers, organization needs to know the behavior of consumer needs to know their competitors without spy matainya, management provides sales target to sales, needs to identify new products, to know the market uncertainty in the future so that they can make the previous planning. now the scope of marketing intelligence one of them is the decision of the segmentation of consumers. cravens and piercy (2003:31-32) proposed that marketing architecture is the process of market-driven from development strategies that consider environmental changes and the need to offer superior customer value. the focus of the marketing stratejik namely on the performance of the organization. in this case, marketing stratejik connect the organization with the environment and the respect of marketing as a function that has the responsibility of exceed the other functions in the overall business activity (sucherly, 2004:20). that marketing architecture is a strategy to serve the market or market segment that are set as target by the company. the definition of marketing strategy is as follows:"marketing strategy is the marketing logic used by the company with the hope that the business unit can achieve the goal of the company"(kotler, 2011). a. previous research grunert, 2000 that marketing intelligence can affect the marketing performance due to the company to get the competitive advantage must have individuals who exhibit ompetence in marketing intelligence is high in this case is one of the competencies which can support the marketing performance and allows a high level of sales growth as the former dominant marketing performance. jochen research fries disc, (2006) said that the marketing architecture methods that systematically should include marketing strategy achitecture several steps that systematically, namely preparing the system model that is formed by collecting information or designing pemasan model is continuously, evaluation and analysis and disseminate and respond to society as a whole. this is often required by the company to a marketing intelligence is to find a new development and then reporting it to the division of research and development. the roadmap research picture : roap map research iii. research method kerlinger design (1993 : 532) proposed that research design is the whole process that is needed in the planning and implementation of research in other words research design is the plan and the structure of the research arranged in such a way that the research can get answers to these questions research. (umar, 1999 : 36) said that the design of the research in social research generally is divided into three forms of the exploratory research (explorative reseach), research diskriptif (descriptive research and research (explanatory eksplanatori reseach). this research is research eksplanatori which means to give the explanation of the relationship of causation between the variables through the testing of the hypothesis as well as doing eksplanasi. kausal assosiatif research (links) research that aims to examine the relationship between the variables predictors (variables affect) and dependent variables (variable that influenced) through hypothesis testing. the hypothesis is an answer while against the sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 45 formulation of research problems that need to be examined the truth through statistics test. the statistical tests used in this study is the structural equation modeling (sem). shem is a collection of techniques statistikal that allows testing of a series of relatively complicated relationship simultaneously. (ferdinand, 2012). with the conceptual framework as follows : picture : the conceptual framework on the purpose of, type, and the nature of the research and the best method to illustrate the existence of the characteristics of the wider population groups with a survey. research data collection method using the survey is a way to get the report information about the attitude of confidence, opinion, and characteristics of the population (azis, 1982 ; and riduwan, 2008: 58). this research survey using the list statement. the list of this statement to get the primary data. the list of the statement used to collect data points as material for further analysis. the list of the statement made by the researcher with the meaning of the aim of the research is reached. therefore, researchers must determine the unit analysis of this research in advance. the unit of analysis in this research is the individual in msmes in east java bromo-probolinggo. b. research target population are the primary object of the research is planned. this is in accordance with the opinion of sunyoto (2008 : 6), population are all the value that is produced from the measurement of the quantitatively as well as qualitatively from certain characteristics of a collection of objects that is complete and clearly that want to be learned. ridwan & kuncoro,( 2008 : 37) said that the population is a region generalisations that consists of objects subject to the quantity and certain characteristics specified by the researchers to learn and then drawn the conclusion. in this research the population of the object of this research is all the owner of msmes in bromo probolinggo-jawa east who numbered 150 businesspeople on smbs in mount bromo -probolinggo the reason he chooses the owner as respondents because of smbs in mount bromo in east java is as well as the person responsible for all the company activities msmes. now the population criteria smb company owner of mount bromo probolinggo as follows : 1) the owner of msmes in mount bromo probolinggo become respondents is that already has usahannya more than 1 years and never lead more than 3 years also 2) respondents memilii secondary data is the ratio of principally document or record of labor, sales volume, production volume and the growth of the company for four years starting 2012 until the year 2016 3) the owner of msmes industry know the details or the scope of msmes accurately and clearly and understand the contents of a list of questions given by the researchers c. the technique of data collection before you find the results of research or manage data, important steps in quantitative research is to determine the technique of data collection. sugiyono (2013:194) presents there are three data collection based on the technique that is the interview, questionnaires (kuisoner), and observation. in this research using the research method among others : preliminary survey with done on the smb company that has been determined and by doing wawacara directly with third-party management related on the smb companies in east java probolinggo bromo to get overview with the situation of the companies in each of the cities in east java and all may. then they did field research. field research done by distributing questionnaires at the direction of the company owner of industry micro and small and medium enterprises mount bromo in each village as respondents so that researchers can learn more problems empirically. the researchers further do interview methods and researchers in doing literature study methods to obtain data teoris with how to read and study the book of bukuyang related to issues that are examined. the description as follows : 1) researchers make observations in using the observation that the most effective way is to furnish it with the format or as an instrument of observation atks; consideration then format that is arranged contains items about genesis or the behavior that is described. from experienced researchers obtained an indication that record the data of observation is not just a record, but also held the consideration and then make the assessment to the scale on stilts fundamentalism attention to the reaction of the audience television, not only record the child, but also assess the reaction is very less, or not in accordance with what he wills (arikunto, 2006: 229). then the observation is not limited to people, but also on the object of the other natural objects. from the implementation process of data collection, observation can sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 46 be differentiated into participant observation (observations participate) and non-participant observation. the observation participate (participant observation), in this observation, researchers involved with the daily activities of the people that are being observed or used as a source of research data. structured observation is the observation that has been designed in a systematic, about what will be observed when and where. researchers do questionnaire (questionnaires) on respondents. the questionnaire is the data collection technique is done with how to give a set of questions or written statement to the respondents to too complex. the questionnaire is the data collection technique is done with how to provide a set of questions or written statement to the respondents to too complex. the questionnaire is the data collection technique is efficient when the researcher knows for certain variables that will be measured and know what can be expected from respondents (iskandar, 2008: 77) 2) do research on the owner of micro and small and medium enterprises wawacara interview used as a data collection technique when researchers want to study introduction to find problems that must be examined and also when researchers want to know these things from respondents that more depth and the number of little respondennya/ small. sutrisno hadi (1986) proposed that the assumption that need to be held by the researchers in using interview techniques and also of the questionnaire is as follows: 1. that the subject (respondents) was the most know about himself. 2. that what is revealed by the subject to researchers is true and can be trusted. 3. that the interpretation of the subject of the questions raised by researchers to him is the same with what is meant by the researchers iv. analysis techniques of data analysis techniques that will be used in this research is to wear analysis of shem. the data has been analyzed using sem (structural equation modeling) amos program (arbukle, 1997: 18; and ferdinand, 2002: 48) to give a clear picture of the relationship between the change of research. structural equation model of amos is used to obtain indicators model that fit. the reason for using the method of structural equation modeling (sem) is because this multivariat technique that combines aspects of multiple regression (examines the relationship between dependence and analysis of factors to mengestimasi series dependency relations that are related to each other simultaneously (hair et. al., 1999, p. 621). modeling language research through shem allows a researcher can answer questions research that is regressive and dimensional (namely measure what dimensions of a concept). when a researcher face research question in the form of the identification of the dimensions of the concept or a dimensionconstruct. usually done in the analysis of factors) and at the same time researchers want to measure the influence or the level of the relationship between the factors that have been identified the dimensions of the dimensions of shem will is alternative answers are worthy of being considered. therefore it can be said that basically the shem is a combination between factor analysis and multiple regression analysis (ferdinand, 2002, p. 7). benchmark used in the test of each hypothesis one to five is the value of cr (critical ratio) on the regression weights with minimum score of two absolutely. muller (1996: 23) and ferdinand (2002: 34) a. research results and discussion in research during one year well known that the phenomenal micro and small and medium enterprises in mountain village boromo probolinggo not direpon by local government whereas micro and small and medium enterprises in and around mount bromo still relatively few vendors that sellers in the area. researchers see a concern once in the sunday vowed in the area and many once the unemployment rate that there and in terms of its economy is still not clearly seen, many micro and small and medium enterprises in the village bromo-probolinggo close your merchandise because many in terms of the economy. after that researchers are trying to help to complete the business at kemancetan micro and small and medium enterprises him by trying to apply the marketing variables and markketing intellengence architecture which can be mempemdiksi of micro and small and medium enterprises who originally bangrut and income level is rarely acquired, so the researchers to develop models of marketing intellengence and marketing architecture start using information teknology support that incredible deeply citizens and the community for sumbangsi together. with the existence of marketing than mothers paradigm pattern is generally have already started to change and start to develop with menedukasi every citizen who have micro and small and medium enterprises in areas such as providing training to educate technology system that is in micro and small and medium enterprises and use the means that existing technology-based and the influence of marketing architecture that can help the entrepreneurs micro and small and medium enterprises that because of this second dimension can help the tradesmen were brought or micro and small and medium enterprises in improve with how to strengthen our brand and strengthen penestrasi market and until about marketing strategy in micro and small and medium enterprises with the calculation of the statistics and measurement tools so that they can develop its economy. from the results of shem stastistik that than mothers who can be influential marketing is dominant against the business development of micro and small and medium enterprises in mount bromo probolingo, supported research (ranchod, 2004) said that the measure of business development is measured with various diemnsi one of them is the technology-based marketing can improve the development of any business or small and medium sinergi, volume 7 number 2 september 2017 chandra kartika the role of marketing intelligence and marketing architecture based technology assist in the development of business on the msmes maount bromo probolinggo in east java 47 businesses, without pasarpun technology-based marketing is not in accordance with the existing target. b. the conclusion and suggestions in supporting business development in micro and small and medium enterprises must fourthly we did not remove from the business learning process that we experience every day. in menjujung business development we need to take into account the technology-based marketing and design based in order to monitoring the business development arranged for this. especially in any segementasi we must pay attention to the dimensions of dismensi that supports the development of business, deeply the entrepreneurs especially in micro and small and medium enterprises mount bromo can learn about the existence of a balance between marketing intellengence and marketing architecture in order to increase the level of its sales and improve business performance in size micro and small and medium enterprises. even though the marketing intellenge that very influence on the business development of micro and small and medium 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(2003). performance, creativity and empowerment dynamics for front line employees in service organizations. american marketing association meetings proceedings. sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 42 police and public image satisfaction on quality of service in corner driver's license unit asmara indahingwati stiesia surabaya e-mail: asmarasw65@gmail.com (diterima : 18-dese mber-2016; direvisi: 20-januari-2017; d ipublikasikan : 05-maret-2017) abstrac t. this research discusses, the influence of physical environmental, technical and functional quality toward customer satisfaction and police institution image (study at sim corner in indonesia). this purposed of this research to evaluate and analyze. the population of this research is the customer’s as the applicant extension of sim a and sim c and also sim a and sim c at the service management of sim corner in indonesia, as respondent being analyzed are 150 customer’s at sim corner in surabaya city and sidoarjo district, and using non -probability sampling, besides it also using accidental sampling. date tool using the structural equation modelling (sem ) with path analysis, and the result of this research show that: physical environmental quality proven that it improve the customer satisfaction at sim corner; technical quality proven that it improve the customer satisfaction at sim corner; functional quality proven that it improve the customer satisfaction at sim corner; physical environ mental quality proven that it improve the police institution image; technical quality proven that it improve the police institution image; functional quality proven that it improve the police institution image; consumer satisfaction proven that it improve the police institution image in indonesia. keywords : quality of physical environ mental, technical, functional, customer satisfaction, institution image introduction police institution is an institution or organization whose function is to provide protection and services to the public, as well as the complaints and solving problems that arise in the community. but as is well known, that lately the image of the national police declined slightly because of the many legal cases involving multiple elements at the same lack of ability police to solve the problems such as corruption, drugs, terrorism, and so forth, to the maximum to make the level of trust and satisfaction of the people to the service institutions police slightly reduced which results in decreased image or image inp itself. in order to enhance the image or image, this time the police institute strives to improve its services back to the community. in east java, especially in the city of surabaya and sidoarjo regency, various program services again encouraged and enabled such as the application of safety belt, "c lick" on the helmet, program two wheels in the left lane, and so forth. one of the programs that currently stand out is the implementation of mobile sim and sim corner is to provide convenience for people who want to extend sim a and sim c. however, whether a given service has been able to satisfy customers or service users sim corner, which will then have an impact on enhancing the image of the police is to be investigated further. the public image of the police is measured a number of different ways. sometimes surveys ask about “local” police, police in “your neighborhood” or police in “your area,” while other surveys ask about the police as a general institution. the terminology used to gauge public support also varies widely, with questions asking about whether respondents “approve of” or “trust” the police, have “confidence in” or “respect for” sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 43 the police, or whether they “support” or have “favorable” views of the police. what makes these terms “general” is that the criteria or standards of performance remain unspecified. they do not ask the public to focus on either police processes or outcomes. the person answering this question could in good conscience choose both, neither, or perhaps something else entirely. and without additional information, we are unable to determine how much weight the survey respondent gives to specific aspects of police performance. such questions are like those that ask the public to indicate whether they approve of the job that the president of the united states is doing – without specifying any particular aspect of that job. such questions are useful, however, in that they give the survey respondent an opportunity to offer a summary that takes all of those aspects that are relevant to his or her view into account, weighting each, at least implicitly, as he or she prefers. not surprisingly, the terminology used in public opinion polls seems to make a difference in measuring the general image of the police. another important element to consider in public opinion polls is whether citizens are voicing an opinion about their own previous experiences with the police, those of their neighbors, friends or family members, or simply general impressions based on a number of sources, from television and the media to opinions shared within the subcultures in which they are immersed. with all these questions in mind, it is difficult to come to terms with what constitutes the “general image” of police. why is the “general image” of police worth measuring? there are a number of important reasons. first, an understanding of the general image of the police among citizens provides an important indicator of support for the institution among its constituents. understanding how the public views the police is a crucial first step in improving relationships between the police and communities. this is why community surveys are a prominent component of the community policing movement. similarly, measurements of the public image of the police can be compared. by producing such measures, agencies can learn whether their image is improving or declining over time, or whether they are held in higher or lower esteem by their citizens than police in other communities. second, the general image of the police may affect the sorts of behaviours by the public that greatly interest the police. these include supporting tax initiatives or referenda designed to enhance the resources of local police agencies, to participate in co-production activities like neighbour hood watch, providing the police with information useful to solving crime or improving the quality of life in neighbour hoods. communities with a poor image of the police will be less likely to support and help the police do their jobs, and more likely to file complaints, launch civil suits, rebel against the police, and produce media problems. whether there is indeed a strong relationship between these public behaviours and the overall image of the police is an untested, but certainly plausible, thesis. sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 44 finally, there is a small but growing body of evidence that those who view the authority exercised against them as illegitimate are more likely to rebel against authority, or in the case of the police, violate the law. for instance, research has shown that while arrest deters spouse assault among some offenders, it leads others to become even more angry and defiant, which actually increases their recidivism rates. other research has found that domestic violence arrestees who thought they were treated fairly by police were least likely to reoffend (paternoster, et al., 1997). while much research remains to be done on the link between the perceived legitimacy of the police and crime rates, there is some evidence to suggest that as institutions like the police lose legitimacy, an increase in crime and rebellion against the police and other legal and political institutions might result (lafree, 1998; tyler, 1990). b. review of literature public service conceptually management of public services by norman (nawawi, 2014) states that, the service is a social process, and management is the ability to direct social processes. in the public service, management creates a system of moral values or to serve, not to be served (to serve not to be served). strength in the public policy making process is one way to create a management and service excellence (excellent service management). improving the ability of public sector management in achieving employment levels are high, such as the activity time (delivery on time), superior quality products (high quality of product), reduction of costs for obtaining services (cost reduction) and treatment are increasingly placing the consumer or the people as a party which has dignity, is essential in order to realize the quality of service. according to savas (nawawi, 2010) in the public sector, the terminology of government services (government service) is defined as the delivery of services by government agencies through their employees (the delivery of service by a government agency using its own employees). zeithaml and bitner (2013) suggested that quality of service is a total experience that can only be evaluated by the customer. smith and ennew (ojo, 2013) argues that the quality of service is an important factor for the performance of the company and a source of competitive advantage. this study tried to look at the quality of service (service quality) is based on three variables of service quality, an adaptation of the opinion hutchinsona(2015) and lovelock(shanka, 2015), namely: a. the quality of the physical enviro nment, related to the physical environment corner sim services. indicators for measuring physical qualities include the environment and supporting facilities, such as: spatial, beauty, cleanliness, and comfort corner sim services. b. technical quality, technique or procedure relating to the sim services corner. sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 45 technical indicators for measuring the quality of cover: sim printing machines (machines), a computerized system (computerized system), direct face to face (know-how), and technical problem solving (technical solution). c. functional quality, with regard to sim services corner functionally. indicators to measure the functional qualities include: the ease (assesbility), the appearance of officers (appearance), the behavior of the officer (behavior), internal relations (internal relationship), the attitude of officers (attitudes), contact the customer (consumer contact), and knowledge officer (service mindedness). it is difficult to draw sweeping conclusions about changes in the general image of police over time because there are few data sets that collect comparable information over time. there are several reasons why these “longitudinal” data sets are rare. the primary reason is that designing survey questions is a demanding, technical task – one that requires repeated testing among respondents to ensure that they understand the question, that it is not confusing, that the response options make sense, and that it measures the phenomenon of interest. survey questions, or the response options that go along with them, frequently change format based on feedback from survey respondents, the whims of the researcher, a lack of awareness of prior research, or any one of several other possible explanations. readers need to use caution when the format of a question changes even slightly, since any deviation from the trend may be due to the change in the question format rather than a change in the quantity being measured (such as the public image of the police). to illustrate this point, consider a set of polls conducted in the early 1980s using the same questions on equivalent samples of respondents, but with a slight difference in the response options. in 1981, cbs news and the new york times polled a national random sample of adults about the degree of confidence they had in the police in their community. the response options were: a great deal, quite a lot, some, very little, and no opinion. fifty-five percent of respondents reported that they had a great deal or quite a lot of confidence. when the survey was repeated about 8 months later in 1982 by the gallup corporation, the response options changed: a great deal, quite a lot, not very much, none at all, and no opinion. now 76% of respondents reported having a great deal or quite a lot of confidence. a 1984 survey having the same format as the 1982 survey found similar results, with 75% of respondents reporting a great deal or quite a lot of confidence in police. then in 1991 the original question format was adopted again, and once again in this poll, 55% of respondents had a great sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 46 deal or quite a lot of confidence in the police. it is unlikely that there was a sharp increase in public confidence in the police from 1981 to 1982, which then leveled off until 1984, followed by a gradual reduction through 1991. the more plausible interpretation is that a small adjustment in the response options provided to the survey respondents made an enormous difference in the findings. in this case, “some” was replaced with “not very much” and “very little” was replaced with “none at all.” terminology matters. despite the problems with compiling a longitudinal data series, we do have some limited information on trends in the general image of the police. the data series are imperfect; they are missing data for some years, while in other instances polls were conducted twice in the same year. as we have already shown in exhibit 1, public confidence in the police from 1993 to 2000 has not experienced dramatic changes. an average of about 56% of respondents have a great deal or quite a lot of confidence in the police. in 1993, this figure was 52%, rising to 60% in 1996, and declining back to 54% in 2000. there are a number of plausible explanations for these changes, such as highly publicized crises and crime trends. these influences have not been explored with rigor, but we can offer an illustration to show how one type of explanation might be explored in future research. exhibit 2 shows the relationship between public confidence in the police and crime rates for the 1993-2000 period depicted earlier in exhibit 1. in this chart, crime rates and public confidence rates for 1994-2000 are expressed in percentage increments above or below their 1993 levels. if declining crime rates promote higher levels of public confidence, then as the yellow and green lines (crime rates) decline, the red line (public confidence) should rise. the chart fails to show the predicted relationship across the entire time period. even as crime declined at a fairly steady rate during these years, public confidence either remained the same or declined for five of the seven time periods. public confidence rose only between 1994 and 1996, early in the process. what could account for this pattern? it is possible that the public adjusts its expectations over time, requiring increasingly greater levels of performance to express confidence in police. this is only speculative, however, based on a very limited illustration. we would prefer to have a much longer time period to compare these trends. also, it is more plausible that if citizens hold police accountable for the crime rate, this relationship would be more readily discernable if we were comparing confidence in the public’s assessment of its own police department to the crime rate in that jurisdiction. perhaps too the sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 47 relationship would be clearer if we had data over this time period for the public’s assessment of the police ability to reduce crime (rather than a general image question). it is important to note that although the general image of police is fairly good and fluctuations from year-to-year tend to be quite small, it has been declining steadily since 1996 when measured in terms of public confidence. this is a particularly noteworthy pattern when one considers the enormous investment that the police profession and taxpayers have made in community policing reforms. during this period, billions of federal dollars have been spent to promote community policing, and according to surveys of police leaders, nearly all support it. the press on community policing has been almost entirely positive (mastrofski and ritti, 1999). under this onslaught of good feelings about community policing, it is remarkable that general attitudes about police have changed so little and in fact have declined over the last five years. another indicator of how the general image of the police is changing over time comes from a series of public opinion polls on the public’s respect toward the police. exhibit 3 shows that in the 1960s, a period of turbulence for the american police, two public opinion polls found that an average of 74% of respondents had a great deal of respect for the police. when the polls were repeated four more times in the 1990s, the average number of respondents with a great deal of respect for the police had dropped to just under 59%. the surveys were not conducted in equal time intervals, and they skipped more than two decades, so exhibit 3 may be masking a much more complicated story. nonetheless, the decline in respect for police from the 1960s to the 1990s is still quite striking. it tracks fairly closely with another public opinion trend during that period, which is a decline in the percent of americans who trust their government to do wha t is right (lafree, 1998:102).[2] the most complete longitudinal series on the general image of the police results from the yearly monitoring the future surveys conducted by the university of michigan (pastore and maguire, 1999). since 1987, a nationally representative sample of at least 2,300 high school seniors is asked to report “how good or bad a job is being done for the country as a whole by the police and other law enforcement agencies?” exhibit 4 shows that the perceived performance of the police declined from 1987 to 1992, fluctuated erratically through 1996, and then began to increase again through 1999. on average, only about 31.4% of seniors surveyed during this period view the police as doing a good or very good job. the remainder, nearly 70% on average, view the sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 48 police as doing a fair, poor, or very poor job. the difference between the general image of the police among random samples of high school seniors and adults is pronounced. age is one of many variables thought to influence the public ima ge of the police. it is to these variables that we now turn. we conclude this section with another methodological caveat. all of the survey questions we have considered (and will consider) tend to “force” or “channel” respondents to offer an opinion, when they may have no opinion or one that was so weak as to manifest itself only because the issue was raised by the survey researcher. what this means is that potentially many respondents who had not heretofore given the question (e.g., confidence in the police) much thought are now placed in a psychological state by virtue of being questioned that they feel pressure to offer an opinion. one of the ways survey researchers have developed to relieve that artificial pressure to offer an opinion that is weak or nonexistent is to replace “no opinion” with “...or haven’t you thought much about this recently?” the latter provides those with very weakly held views to select a “face-saving” option, and it more accurately portrays the state of the public’s mind about the issue. another option is to preface all questions about the police with a general question about how much the respondent has recently thought about the performance of the police. this allows researchers to distinguish views based on how important the topic has been to the respondent. if researchers are attempting to predict what citizens will do as a consequence of their opinions about police (e.g., how they will vote, whether they will participate in police programs, whether they will obey the law), knowing how important this topic is to each citizen would be a valuable piece of information. cons umer satisfaction wellington (2015); o liver (payne, 2010); and tjiptono (2011) reported feeling satisfied consumers arises when consumers compare their perceptions of the performance of the product or service to their expectations. consumer satisfaction and dissatisfaction is the consumer response to the evaluation of nonconformity (disconfirmation) perceived between prior expectations or other work norm (cheng, et., al, 2014), with actual performance product that is felt after use. kotler and keller (2014), satisfaction is feeling happy or disappointed someone who emerged after comparing the performance or the result of a product that is considered to performance or outcomes. payne (2010), and tjiptono (2011), explains that the customer perceived service quality will determine the customer's perception of the performance / results of the service, sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 49 which will ultimately have an impact on customer satisfaction or customer satisfaction. image of the police image or image according to kotler (2014) is defined as the set of beliefs, ideas, and impressions regarding a persons hold an object. peoples attitudes and actions toward an object are highly conditioned by that object image. citra according k hasali (kelvin, 2014) is an impression arising from understanding reality. the company's image to show the impression of an object against a company formed by processing information at any time from a variety of sources of reliable information. according to katz (huang, et.,al, 2014), the image is how others see the company, a person, a committee, or an activity. kotler (2014), customer delivered value (the value received by consumers) are the difference between total customer value with a total customer cost. total customer value is a bundle (bundle) benefits (profit) expected from a product. source of total customer value is the product itself, services, personnel, as well as image (image). suwandi (2011); and wellington (2015), states that the purpose of a good corporate image for the company to stay alive and the people in it continue to develop creativity even more significant benefits for others. c. methods sampling types of sampling techniques in this study included in non-probability sampling, and sampling by accidental sampling. during the research conducted, the number of respondents is not known for certain. according to hair et al. (2012), if the sampling is not localized in one area, then the recommended sample size is between 100-200; or the sample size is approximately 5-10 existing parameters in the model to be estimated, then the sample set of 150 samples were deemed meet the required number of samples to be able to use analytical techniques structural equation modeling (sem). personal c haracteristics of the c itizen research on the factors influencing the public image of the police typically draws on the “usual suspects”: age, race, sex, income and socio-economic status, victimization history (which will be explored later), and other individual level factors thought to influe nce attitudes more generally. since in matters of policing, race is a crucial variable, we examine it apart from the others shortly. race. o ne of the most persistent findings in public opinion polls about the police is that whites are more satisfied with police than nonwhites. this finding has been consistent over the past four decades, emerging from dozens of studies and polls, both in the united sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 50 states and abroad (bayley and mendelsohn, 1969; bradley, 1998; cao, frank, and c ullen, 1996; huang and vaughn, 1996). for instance, in a study of citizen satisfaction with police in 12 cities, conducted by the bureau of justice statistics in 1998, 90% of whites were satisfied with police, compared with 76% of blacks and 78% of those of other races (bureau of justice statistics, 1999). these aggregate racial differences held in 10 of the 12 cities. in madison, wisconsin, an equal number of blacks and whites (97%) were satisfied with police, while in tucson, arizona more blacks (91%) were satisfied than whites (88%). age. most of the research shows a positive relationship between age and attitudes toward police. younger people routinely report less satisfaction with the police than older people (brown and coulter, 1983; hindelang, 1974; jesilow, meyer, and namazzi, 1995; huang and vaughn, 1996; smith and hawkins, 1973). the one study not reporting such an effect was based on a sample of juveniles, suggesting that age may matter when comparing juveniles to adults, but among juveniles, age may not matter as much (hurst and frank, 2000). since this conclusion is based on one study in a single city, it should be viewed with caution. another study reported that elderly respondents held less favorable attitudes toward the police than younger adults (huang and vaughn, 1996; zevitz and rettammel, 1990). these last two research findings suggest that the relationship between age and attitudes toward the police may be curvilinear. in practical terms, this means that juveniles are less satisfied with the police than adults, b ut that among juveniles, age does not matter. then, as people age, their satisfaction with police continues to increase, until a certain age level, beyond which attitudes toward the police begin to decrease again. this is mere speculation on our part, since the research on the effects of age on satisfaction with police is not sufficiently developed to warrant firm conclusions. gender. the relationship between gender and satisfaction with police is unclear. at least two studies have found that males hold more positive views than females (brown and coulter, 1983; thomas and hyman, 1977). other studies have found that females hold more positive views than males (see huang and vaughn, 1996, p. 35). still another study has found that gender had no effect (hurst and frank, 2000). we are not sure why the effects of gender are so erratic across different studies. socio-economic status. poorer people, and those from lower socio-economic classes tend to report less satisfaction with police than those sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 51 who are wealthier. for instance, benson (1981) found that respondents from lower social classes were less satisfied with police. similarly, brown and coulter (1983) found that income and education both had a positive effect on satisfaction with treatment by the police (a variable that can be viewed as both an indicator of the general image of the police and as an indicator of the image associated specifically with police process). however, both hindelang (1974) and jesilow, meyer, and namazzi (1995) report that education had no effect on attitudes toward police. decker (1981) notes an important concern about the role of socioeconomic status (ses). as we will discuss shortly with regard to race, it is not clear whether it is the individual’s socio-economic status that influences attitudes toward police, whether it is the status of the neighborhood, or whether these two variables interact. as we will demonstrate shortly, if ses works in the same fashion as race, neighborhood effects may be more important than individual attributes like ses. other influences. race, age, gender, and ses are the individual variables most commonly considered in research on citizen satisfaction with police. nonetheless, there are other scattered research findings that may be important to consider. for instance, several researchers have found that people living in the suburbs have better attitudes toward the police than people living in urban areas (hindelang, 1974; hurst and frank, 2000; thomas and hyman, 1977). another study confirms what might be viewed as common sense, that juveniles with a commitment to delinquent norms are less satisfied with police (leiber, nalla, and farnworth, 1998). social scientists have not confirmed what these kinds of differences mean, but there are two theoretical approaches worth considering. one is that people with different characteristics have different experiences and that their opinions about the police are grounded in the objective reality of those experiences. if youths are more likely to be stopped, searched, cited, arrested, and warned than elderly people, then their negative views of police are perfectly understandable as an outgrowth of the different experiences of these two groups. the other theoretical perspective is that people with different back grounds have different expectations or standards for police – and different ways to interpret events. if a person brings a negative preconception of the police to an experience, then they may be more inclined to focus on police actions that are consistent with that viewpoint and ignore those which are not, or they may simply interpret a given police action in a way that is consistent with that viewpoint. neither of the above theories has been thoroughly tested. however, a growing body of evidence suggests that racial differences in sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 52 attitudes toward the police may not be a simple function of individual race, but that they are also influenced by broader social structural issues like (1) subcultural attitudes toward the police that are independent of individual experiences, and (2) the characteristics of the neighborhoods where respondents live. decker (1981) found that community level predictors of individual attitudes toward the police included neighborhood culture and community beliefs about the police. apple and o’brien (1983:83) found that "an increase in the number of blacks in the neighborhood increases the opportunity for blacks to associate with others who have negative attitudes toward the police, and this results in an overall increase in their negative sentiment toward the police." jesilow, meyer, and namazzi (1995) found that not liking things about one's neighborhood was associated with negative attitudes about the police. leiber, nalla, and farnworth (1998:169) concluded that “the imposition of lega l authority and social control in certain neighborhoods engenders a pervasive resentment and resistance, and that youthful residents of those neighborhoods harbor a general disrespect for the law itself." neighborhood effects. the most striking (and convincing) evidence for neighborhood effects comes from a massive study called the project on human development in chicago neighborhoods. sampson and bartusch (1999) found that: once neighborhood economic disadvantage is taken into account, blacks' views are found to be similar to whites'. blacks appear to be more cynical toward or dissatisfied with the police only because they are more likely to live where disadvantage is concentrated. even in neighborhoods where the rate of violent crime is high, there is no difference between the races in attitudes toward the police. racial differences disappear when neighborhood context is considered. thus, residents' estrangement from the police is better explained by neighborhood context than race. although this is one of the largest and most carefully constructed studies of attitudes toward the police, it is still important to keep in mind that it is based on only one city. one of the enduring lessons of social science is that research evidence – even good research evidence – needs to be replicated over place and time before it can be generalized. data retrieval the primary data is done through personalized technical questionnaires making it possible to give an explanation to the respondents in the questionnaires. measurements for each variable is in the form of scoring according to likert scale. d. data analysis data analysis was performed using path analysis (path analysis) to test the feasibility of the model developed by a structural equation model, it will use some of the eligibility index sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 53 that will be used to see the evaluation criteriamodels with goodness of fit indices. it can be seen from figure 1 which shows that fit the criteria for a model has rmsea value of 0.077 or less than the cut-off value that is 0.080 and the value of df / c hi square of 1.880 or less than the cut-off value which is 2,000. so there are two criteria for goodness of fit index that had been met. figure 1 test the goodness of fit index e. research result hypothesis testing is done by t-test at each track direct effect partially. while the hypothesis indirect effect demonstrated through proof of each lane direct effect, which can be seen as follows. table 1 regression line coefficient variabel independe n variabel dependen regre ssion weigh t pvalue (p<0, 05) physical env technical  functional  physical env technical  functional  satisfactio n satisfactio nsatisfacti onsatisfac tion image of police image of police image of police image of police 0,53 8 0,24 2 0,36 0 0,28 8 0,21 6 0,34 7 0,36 2 0,001 0,025 0,001 0,031 0,043 0,004 0,032 table 1 shows the quality of the physical environment has a coefficient regression lines amounting to 0.538; p = 0.001 (p <0.05), which means the physical environment positively affects customer satisfaction. this means that the higher the quality of the physical environment, the higher the level of customer satisfaction sim corner. table 1 shows the technical quality of the positive and significant impact on customer satisfaction wi th the value of regression coefficient of 0.242; and p = 0.025 (p <0.05), which means the higher technical quality, the higher the level of customer satisfaction sim corner. table 1 shows the functional quality positively affects customer satisfaction sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 54 shown the value of a regression coefficient of 0.360; and p = 0.001 (p <0.05), the higher the functional quality, the higher the level of customer satisfaction. table 1 shows the quality of the physical environment has positive influence on the image of institutions wi th regression coefficient of 0.288; and p = 0.031 (p <0.05), this means that the higher the quality of the physical environment, the higher the image of the police force. table 1 shows the positive effect on the technical quality of the image of the institution with a regression coefficient of 0.216; and p = 0.043 (0.05), which means that the higher the technical quality, the higher the image of the police institution. table 1 shows the functional quality positively affects the image of an institution that demonstrated the value of a regression coefficient of 0.347; and p = 0.004 (p <0.05), this means that the higher the quality, the higher functional image of the police institution. table 1 shows the customer satisfaction has positive influence on the image of the institution wi th a regression coefficient of 0.362; and p = 0.032 (p <0.05), ie the higher the customer satisfaction, the higher the image of the police institution. power of influence between a construct, both direct effect and indirect effect can be analyzed through the coefficients of all the lines with arrows one end. the direct effect is the latent variable factor loading of each indicator that form latent variables are analyzed. the indirect effect (standardized indirect effect) can strengthen or weaken the direct influence derived from indicators in the study (ferdinand, 2012). the influence of direct and indirect effect is shown in the following table. table 2 direct influence and intervening exogenous variables x-y z σ physical technical functional satisfaction 0,288 0,216 0,347 0,362 0,1 95 0,0 88 0,1 30 0,483 0,303 0,477 0,362 indirectly there is a positive and significant effect of the variable quality of the physical environment of the image of the institution through 0195 customer satisfaction. indirectly there is a positive and significant effect on the image quality variable technical institute through customer satisfaction by 0087. indirectly there is a positive and significant sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 55 effect on the image quality variable functional institution through customer satisfaction by 0.130. directly there is positive and significant variable image to the satisfaction of consumers institution of 0.362. this means that if the consumer satisfaction variables changed (increased) to a more positive one level then the image of the institution will also increase by 0362. f. discussion overall results of this study indicate that the quality of the physical environment, technical and functional proven to increase customer satisfaction sim corner. these results indicate that the quality of the physical environment, technical and functional proven to improve the image of the police institution. the results of this study as a whole to support or strengthen theoretical study and empirical studies that have been there. theoretically line with welington (2013), payne (2010), and tjiptono (2011). empirically, supports research landrum (2014), hutchinsona et al. (2015), mosahab, et al. (2013), susanto (2014), shanka(2015), fatmaand ali (2014), suhartutik (2010), and setyawati (2011). the results of this study show that customer satisfaction sim corner institusi. result proven to improve the image of this study support and strengthen the results of research conducted by previous researchers that landrum, (2014), hutchinsona et al. (2015), mosahab, et al. (2013), susanto(2014), shanka(2015), fatma and ali (2014), suhartutik (2010), and setyawati (2011) which concluded that the quality of service significantly influence customer satisfaction. g. conclusion based on the results of research and discussion that was raised, it can be concluded that the environmental q uality of technical quality and functional quality are proven to increase customer satisfaction sim corner in indonesia. similarly, the quality of the physical environment of technical quality and functional quality are proven to improve the image of the police institution in indonesia; and customer satisfaction sim corner proven to improve the image of the police institution in indonesia. prefer ences cheng, bl., c ham, t.h., and shaheen m. 2014. the associations between service quality, corporate image, c ustomer satisfaction, and loyalty: evidence from the malaysian hotel industry. journal of hospitality marketing & management. volume 23, issue 3, p: 314-326 fatma, d.o and ali, k. 2014. supermarket selfcheckout service quality, customer satisfaction, and loyalty: empirical evidence from an emerging market. journal of retailing and consumer services. volume 21, issue 2, march 2014, pages 118–129 gloria, a.k.q. 2011. the effect of service quality on customer satisfaction in the utility industry – a case of vodafone sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 56 (ghana). international journal of business and management. vol. 6, no. 5; p:203-210 huang, c.c; yen, s.w; liu, c.y; and huang, p.c. 2014. the relationship among corporate social responsibility, service quality, corporate image and purchase intention. international journal of organizational innovation (online); hobe sound6.3 p: 6884. hutchinsona, j., laib, f., & wang, y. 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(2014). servc ess: a parsimonious instrument to measure service quality and information system success. the quality management journal, 15(3), 17-25. mosahab, r., osman, m., danramayah, t. 2013. service q uality, c ustomer satisfaction and loyalty: a test of mediation. journal of international business research. vol. 3, no. 4, p:72-80 nawawi, h (2014). manajemensumberdayamanusiauntukbisnis yang. kompetitif. jakarta: gramediapustakautama ojo. 2013. the relationship between service quality and customer satisfaction in the telecommunication industry: evidence from nigeria. broad research in accounting, negotiation, and distribution, 1(1), 88. payne, a.. 2010, the essence of service marketing: pemasaranjasa, cetakankedua, penerbit andi, yogyakarta. setyawati, e, 2011. peranpemicudankondisisebagaimoderasipen garuhkepuasanterhadap wom (studipadarestoran/rumahmakan di surabaya), disertasi, program pascasarjana universitas brawijaya, malang. shanka, m.s. 2015. bank service quality, customer satisfaction and loyalty in ethiopian banking sector.journal of business administration and management sciences research, vol. 1(1), pp. 001-009 suhartutik, 2010, pengaruhlayanan sim corner terhadapkepuasanmasyarakat di kota surabaya, tesis, pascasarjana universitas bhayangkara, surabaya susanto, christian. 2014. c itra merek, kualitasproduk, danpromosipengaruhnyaterhadapkepuasank onsumenpadamakanantradisional. jurnal emba. vol. 1, no. 3, september tjiptono, f. 2011. total quality service and satisfaction, edisipertama, yogyakarta: penerbit andi. wellington, p. 2013. effective customer care. new delhi: printed o nebond, kagan sinergi , volume 7, nomor 2 maret 2017 asmara indahingwat i p olice and public image sat isfact ion on quality of service in corner driver's license unit 57 zeithaml, v and bitner, m.j. 2013. service marketing. 1 st . usa: mcgraw hill, co, inc. sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 71 the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 ayu pita winarti1*), ernie hendrawaty2), r.a fiska huzaimah3) 1) faculty of economics and business, university of lampung, bandarlampung, indonesia e-mail: ayupitaw1310@gmail.com1*), ernie.hendrawaty@feb.unila.ac.id2), kekeirabee@gmail.com 3) abstract. this study intends to research the impact of the board of commissioners structure family firm’s dividend policy in indonesia’s non-financial sector. the research uses panel regression of 116 idx non-financial listed family firm over the period 2017-2020. in order to explore the effects of board independence, family board, board size, board meeting frequency, and audit committee size on family firms’s dividend policy in non-financial sector in indonesia. according to the study's findings, for the years 2017 to 2020, the dividend policy of family firm in indonesia operating in non-financial sectors will be positively and significantly impacted by board independence, board presence from family, the board size, board meeting frequency, and audit committee size. keywords: family ownership; non-financial; dividends; board of commissioners structure. i. introduction the ownership structure outlines the division of authority and influence over day-to-day business operations. there are two categories of share ownership structures: distributed share ownership and concentrated share ownership. if a company's majority shareholders that controlled by a small number of people or organizations, that is referred to as having concentrated share ownership. similar to a family business managed and controlled by one or more family members. companies in underdeveloped nations like indonesia typically have concentrated ownership. according to earlier studies, family firm make up over 60% of southeast asia's publicly traded corporations. southeast asia's highest ownership concentration that found in indonesia. according to records from 2001, 15 families controlled 61.7% of the market capitalization of the indonesia stock exchange, demonstrating the prevalence of family control (duygun et al., 2018). ownership issues between principal and minority shareholders can arise in family firm. when a small number of shareholders dominates the ownership structure, they might use their influence to oversee and control managers (duygun et al., 2018). majority shareholders may expropriate money if legal protection is insufficient. according to research by la porta et al. (1999), developed country laws protect minority shareholders against potential wealth expropriation. as a result of the poor institutional rules and the lack of proper legal protection for minority shareholders in developing nations, dividend payment policies are seen as a replacement for these ineffective legal systems (duygun et al., 2018). when a business distributes dividends, the controlling shareholder (controlling) ensures the cash distribution to all shareholders (kilincarslan, 2021). companies with high family ownership tend to appoint family members to occupy important positions in the company, which is intended to control the internal company. the presence of family members on the company's board will be an opportunity to take advantage of minority shareholders by using company assets. in addition, a family board that does not work professionally will not affect the company's performance or even disrupt the condition of the company's management. therefore the company will not generate profits that can share in the form of dividends (hendrawaty et al., 2021) according to a number of earlier research in another nations, including rajput & jhunjhunwala (2019), family ownership has a bad association with the dividend policy. in order to maintain the strength of their authority, boards of commissioners for businesses with a significant percentage of family ownership will always be made by family members. minority shareholders may be harmed by familycontrolled managers that use asset expropriation or tunneling to increase family wealth. it demonstrates the value of board independence in preventing family control and minimizing the risk of agency issues between families and minority shareholders, especially in businesses with few corporate governance measures (kilincarslan, 2021). according to hendrawaty's research (2020), agency issues between shareholders and corporate management can lead to high-risk mailto:ayupitaw1310@gmail.com1 mailto:kekeirabee@gmail.com sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 72 investments, particularly when companies face financial difficulties resulting in unfavorable public perceptions. an independent board of commissioners can firmly control the acts of family executives that can hurt others, and the promotion of big dividend payouts helps to establish a reputation for treating minority shareholders fairly. the independent board of commissioners oversees the implementation of good corporate governance, also known as gcg (gcg). the gcg idea of transparent and open corporate governance can boost a company's worth. it relates to public credibility and trust, drawing domestic and international investors' attention and increasing the economy's competitiveness and the capital market (kilincarslan, 2021). dividend policy served as the dependent variable in earlier studies by kilincarslan (2021) and sener & akben selcuk (2019), while board independence served as the independent variable. the variables of board independence, the family council's existence, the board's size, the frequency of board meetings, and the size of the audit committee serve as proxies for the board independence variable in this study. dividend policies and independent commissioners are complementary governance tools to lessen agency conflicts between minority shareholders and families. it is consistent with duygun et al. (2018), who support the board's critical role in encouraging better gcg practices with the efficiency of dominant shareholders' control. nevertheless, other research has produced different outcomes. family ownership has a sizable beneficial impact on the dividend payout ratio, much like setianto and sari (2017) found. the percentage of family ownership that a company has affects how much dividends are paid. few studies investigate the impact of board structure on dividend distribution decisions for family companies in indonesia, according to the background explanation and various opinions from prior research regarding dividend payout policies in family companies in indonesia, such as setianto & sari (2017) and atmaja (2016). additionally, different research findings, such as that by duygun et al. (2018), who discovered a negative relationship between independent board effectiveness and dividend payout decisions, demonstrate that the independent board's ability to affect dividend policy in familyowned businesses is limited. the authors are interested in evaluating the impact of the board of commissioners' structure on dividend policy in family firm in light of the background information provided above. ii. literature review good corporate governance good corporate governance (gcg), is a way to build market trust and company integrity, both of which are crucial for organizations that need long-term finance (rajput & jhunjhunwala, 2019). laporta et al. (1999) described gcg as being impacted by legal tools to protect the interests of diverse stakeholders connected to the corporation, particularly minority shareholders. conflicts of interest between majority and minority owners frequently arise in developing nations with a relatively high concentration of ownership due to disparities in interests and power imbalances that lead to exploitation and system inequality. according to rodriguez fernandez (2016), gcg attempts to lower agency costs by safeguarding shareholder interests, coordinating manager and shareholder interests, and eliminating information asymmetry between owners and managers. gcg must oversee and direct managers while allocating and controlling corporate funds. gcg is anticipated to persuade minority shareholders that their investment would be profitable (suhadak et al., 2019). additionally, using gcg lowers capital expenditures and boosts business performance and value (utama et al., 2017). firm value is a state that the company has attained as evidence of the public and shareholder faith in the company after engaging in the activity process for several years, from the company's founding until the present (octaviana et al., 2019). family ownership a business with family ownership is one in which the founder or his ancestors continue to retain executive roles, have seats on the board of directors, or are the most significant shareholders (anderson & reeb, 2003). according to setianto and sari (2017), giving members of their family top management and board roles demonstrates the family's increased control over the business (kilincarslan, 2021). according to sakawa & watanabe (2019), the family does not want to sell the shares it currently holds because doing so will reduce the family's control rights. it illustrates how the board's independence significantly impacts choices about dividend payments. family ownership structure, according to la porta et al. (1999), is when the family holding the majority share owns more than 10% of the voting rights. the idx stipulates that shareholders eligible to vote at the company's annual general meeting must own at least 10% of the company's shares. hence this percentage is the cutoff (duygun et al., 2018). board structure an essential instrument for corporate governance is the board structure. the degree of board sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 73 structure independence impacts how well a company performs. the board's responsibility in a company is to decide on corporate governance and dividend distributions. according to agency theory, a company's difficulties can reduce by using an independent board to supervise the executive directors' behavior (buachoom, 2018; duygun et al., 2018; kilincarslan, 2021; la porta et al., 1999). the opportunistic conduct of family executives can also be monitored and controlled by independent boards with veto power. in order to balance the power of family executives and increase protection for minority shareholders in nations with weak legal protection, rajput & jhunjhunwala (2019) claim that the role of an independent board structure is crucial for the company. the high level of board structure independence makes it possible to supervise firm management more successfully. dividend policy the dividend is the company's net profit, which is partially distributed to shareholders according to the percentage of shares owned. the amount of the dividend and the timing of its distribution will be decided at the general meeting of shareholders or gms (samrotun, 2015). according to fredrikson et al. (1969), several variables influence dividend policy, including (1) legal requirements; (2) the need for funding; (3) liquidity; (4) the ability to borrow; (5) limits in debt contracts; and (6) control. abbas et al. (2017) assert that a company's dividend payout ratio that impacted by its size. large businesses are regarded as well established since they have simple access to the financial market when looking for funding sources. the dividend payout ratio and dividend yield are used as proxies for a company's dividend policy. the dividend payout ratio is measured by dividing dividends paid by net income (duygun et al., 2018). dividend yield, on the other hand, is the ratio of dividend payments to the company's stock price (avianto & hasnawati, 2022). iii. methodology types and sources of research data this type of research is quantitative descriptive. this study uses secondary data from the indonesian stock exchange (idx) website. the financial report information for each non-financial firm listed on the indonesia stock exchange in 2017–2020 was obtained from the website www.idx.co.id or other associated corporate websites and used in this study. the five independent variables included in this study are board independence, family board, board size, board meeting frequency, and audit committee size. there are five controls variable: return on assets, debt level, firm size, investment opportunities, and presence of other priority shareholders. along with the dependent variable, which is the dividend policy in indonesian family firm outside the financial sector. population and sample the research population uses companies listed on the indonesia stock exchange from 20172020. in order to choose the sample for this study, a purposive sampling strategy was used, which involved using several unique characteristics. 1. non-financial companies listed on the indonesia stock exchange between 2017 and 2020 are one of the specific criteria in this study. 2. non-financial companies that consistently release financial reports between 2017 and 2020 3. non-financial companies with family ownership for the 2017–2020 period that meet the requirements for more than 10% share ownership or employ family members in managerial roles. table 1 sample of research criteria total non-financial enterprises listed on the indonesia stock exchange between 2017 and 2020 464 non-financial companies that were delisted during the 2017-2020 period (6) non-financial company with non-family ownership period 2017-2020 (342) total of sample 116 research variable measurement 1. dependent variable a. dividend policy a dividend policy is a decision made by the company's top management regarding the distribution of profits made by the company to shareholders as dividends or retained earnings for investment financing to boost the company's internal funding. the dividend payout ratio in this study projects the dividend policy (duygun et al., 2018). dpr = 𝑻𝒐𝒕𝒂𝒍 𝑪𝒂𝒔𝒉 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅 𝑵𝒆𝒕 𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 2. independent variable a. independence board http://www.idx.co.id/ sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 74 the level of independence a board of commissioners has is called the board level. by comparing the number of independent boards in the firm with the total number of boards in the company, the independence of the board of commissioners is determined (kilincarslan, 2021). bi = 𝑻𝒉𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒊𝒏𝒅𝒆𝒑𝒆𝒏𝒅𝒆𝒏𝒄𝒆 𝒄𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒆𝒓𝒔 𝑻𝒉𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒄𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒆𝒓𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 b. presence of family board the percentage of the total number of boards owned by family members determines the presence of the family council (kilincarslan, 2021). fb = 𝑻𝒉𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒇𝒂𝒎𝒊𝒍𝒚 𝒃𝒐𝒂𝒓𝒅 𝑻𝒉𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒄𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒆𝒓𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 c. board size the number of board members in the corporation determines the size of the board of commissioners (duygun et al, 2018). bs = 𝑇ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑒𝑟𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 d. board meeting frequency(bmf) the number of board meetings held annually is referred to as the frequency of board meetings (buachoom, 2018). bmf = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑏𝑜𝑎𝑟𝑑 𝑚𝑒𝑒𝑡𝑖𝑛𝑔𝑠 𝑑𝑢𝑟𝑖𝑛𝑔 𝑎 𝑦𝑒𝑎𝑟 e. audit committee size (audit) the audit committee, a part of the board of commissioners, comprises one or more commissioners and outsiders with the knowledge, skills, and attributes necessary to carry out the committee's goals. the number of audit committees on the board of commissioners is called the audit committee size (kilincarslan, 2021). audit = 𝑇ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑎𝑢𝑑𝑖𝑡 𝑐𝑜𝑚𝑚𝑖𝑡𝑡𝑒𝑒 𝑖𝑛 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 control variable a. return on assets (roa) return on assets (roa) calculates by dividing net income by total assets (kilincarslan, 2021). roa = 𝒏𝒆𝒕 𝒆𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝒕𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔 c. investment opportunity (grw) company growth/investment opportunity (grw): using market-to-book value ratio formulation. by dividing market capitalization by book value (kilincarslan, 2021). market-to-book value ratio = 𝑚𝑎𝑟𝑘𝑒𝑡 𝑐𝑎𝑝𝑖𝑡𝑎𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑏𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 d. firm size (fs) firm size (fs) is natural logarithm of total assets (rajput & jhunjhunwala, 2019). fs = ln total assets e. presence of other priority shareholders (blockown) presence of other priority shareholders (blockown) is a binary variable where if the other priority shareholders are at the 10% level of ownership, the threshold is assessed with "1" and "0" otherwise (kilincarslan, 2021). analysis techniques the economic model used in this study is as follows: y = f(x1 , x2 , x3 , x4 ) then the model is transformed into a panel data regression equation model: model : dpr = α + β1biit + β2 fbit + β2bsit + β4bmfit + β5auditit + β6roait + β7levit + β8grwit + β9fsit + β10boit + ɛ, b. debt size (lev) debt size (lev) can be calculated by dividing total debt by total assets (kilincarslan, 2021). lev = 𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 description dpr :dividend payout ratio bi :board independence fb :family board bs :board size bmf :board meeting frequency audit :audit committee size roa :return on asset lev :debt level grw :investment opportunities fs :firms size bo :presence of other priority stakeholders i :firms β 1-10 :regressions coefficient α :constanta ɛ : error sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 75 iv. result and discussion descriptive statistical analysis this study uses non-financial companies listed on the indonesia stock exchange for the 2017 2020 period. information was taken from linked company pages and the website of the indonesian stock exchange. sampling using the purposive sampling method, which is free from outliers, is 84 samples, so the total observation data is 336 observations. data with extreme values are considered outliers. each variable, including the dependent variable—the dividend payout ratio—was subjected to descriptive analysis. independent variables included independence board, family board, board size, board meeting frequency, and audit committee size. control variables included return on assets, company size, the presence of other priority shareholders, debt level, and investment opportunities. the research data's descriptive statistics are summarized as follows: table 2 result of descriptive statistics variable mean median maximum minimum st. deviation dpr 0.007039 0.000000 0.242926 0.000000 0.020282 bi 0.408080 0.375000 0.800000 0.200000 0.111994 fb 0.599883 0.666667 0.800000 0.200000 0.106104 bs 4.014881 3.000000 10.00000 2.000000 1.683037 bmf 6.330357 6.000000 9.000000 2.000000 1.262939 audit 3.020833 3.000000 4.000000 2.000000 0.453359 roa 0.310475 0.245557 0.940779 0.005164 0.230302 lev 0.578429 0.508108 3.621355 0.009159 0.453039 grw 1.099242 0.795353 6.036025 0.001709 1.053743 fs 1.27e+13 2.90e+12 1.63e+14 4.21e+10 2.50e+13 bo 0.568452 1.000000 1.000000 0.000000 0.496031 observasi 336 336 336 336 336 dpr : dividend payout ratio, bi : board independence, fb : family board, bs : board size, bmf : board meeting frequency, audit : audit committee, roa : return on assets, lev : debt level, grw : investment opportunities, fs : firm size, and bo : the presence of other priority shareholders source: results of data processing using eviews 10, 2022 table 2 show dividend payout ratio, which measures the proportion of net income given as cash dividends, indicates that 46 issuers have a minimum value of 0.000000, indicating that they do not distribute net income as cash dividends. the highest value from brpt issuers is 0.242926, which indicates that the business may pay out dividends to shareholders and avoid liquidation issues. the dividend payout ratio has an average value of 0.007039. the dividend payout ratio consequently has a wide range of values. the average score of 0.007039 demonstrates that the typical sample company distributes dividends at a rate of only 0.7% of net income and shows that the company's management is not good at managing its operational activities, so it cannot provide unequal results to shareholders. the independence board shows, with a minimum value of 2 individuals and a maximum value of 10 people. in the sample company, the average board independence is 0.408080, or 41% of the entire board of commissioners. due to exceeding the number of independent commissioners required by ojk regulation number 33/pojk.04/2014 concerning directors and board of commissioners of issuers or public companies article 20, which states that the minimum number of independent commissioners shall constitute 30% of all members of the sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 76 board of commissioners, this demonstrates that the level of independence of the sample companies' boards of commissioners is very high. family board presence has a minimum value of 2 and a maximum value of 8. the average attendance of the family board is 0.599883, which indicates that 59% of the sample companies' entire board of commissioners' meetings are attended on average by the family board. the family board has a more significant presence than the independent board of commissioners does. board meeting frequency shows a minimum value of 2 and a maximum value of 9. the bmf's mean value is 6.330357. according to clause 18 of the company's articles of association, which requires meetings held at least twice a month and up to six times a year, the average board of commissioners in the sample companies complies with this requirement. the audit committee size shows a minimum value of 2 and a maximum value of 4 with an average value of 3.020833. it conclude that the average number of audit committees in the sample companies is by the decree of the chairman of bapepam-lk number kep-643/bl/2012 dated december 7, 2012 concerning the establishment and guidelines for the implementation of audit committee work, which requires that the audit committee consists of sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 77 at least 3 people, with 1 independent commissioner as chairman and 2 people as members. return on assets displays the company's rate of return or the percentage of earnings it made about the total quantity of resources it held. the smallest value is 0.005164, which indicates that some businesses can only make a profit of 0.5% by using all of their assets. the maximum value is 0.940779, which indicates that some businesses can profit up to 94% by employing all of their assets. the sample enterprises can, on average, produce a net profit (net income) of 31% of their total assets thanks to the average roa of 0.310475. the average roa number has above the 5% mark, demonstrating the sample companies' excellent rate of return. firm size is seen from the total asset value owned by the company. according to its size, the corporation can be as small as 42 billion idr or as large as 163 trillion idr. the average of firm size is 1.27e+13 or 12 trillion indonesian rupiah. this means that the average sample company is included in the category of large companies. the size of the debt is the level of funding of a company that comes from liabilities. debt size displays a range between 0.009159 and 3.621355 as its minimum and maximum values. the average debt size value is 0.578429, which indicates that 57% of the total assets of the typical sample company fund by debt. because it is at a fair level, this demonstrates that the company's average financial state is strong. company growth or investment opportunities use the market-to-book value ratio, which is very representative because it follows the company's performance. a minimum value of 0.001709 and a maximum value of 6.036025 are available for this variable. the example company has a high growth rate above the 100% mark because its average growth value is 1.099242, which translates to an average growth of 109% for the sample company. the presence of other priority shareholders is a dummy variable ranging from 0.000000 (which indicates none) to 1.000000 (which indicates there are other shareholders with a 10% share ownership level). the average and standard deviation of the presence of additional priority stockholders are 0.568452 and 0.496031, respectively. model selection for panel data regression the panel data has three regression models: common effect, fixed effect, and random effects. selection of the best panel data regression model through three tests: the chow test, lagrange multiplier (lm) test, and hausman test. a chow test use to select between the common effect model (cem) and fixed effect model (fem), followed by a comparison test to select between the cem and random effect model (rem), and finally, a hausman test to select between the fem or rem. table 3 descriptive statistics of research variables source: results of data processing using eviews 10, 2022 based on the results of the tests, a fixed effect model is preferred over random effect and common effect models for analyzing the impact of independence board variables, family board, the board size, board meeting frequency, and audit committee size on dividend policy in family companies in indonesia's non-financial sector for the 2017–2020 period. classical assumption testing there are four classical assumption tests namely: normality test, multicollinearity detection, heteroscedasticity test, and autocorrelation test. 1. normality test the purpose of the normality test is to determine whether the independent and dependent variables in a regression model can both have a normal distribution or a decent absolute regression. the jarque bera test can be used to determine normalcy by examining the distribution of residual data. figure 2 result of normality test 70 60 50 40 30 20 10 0 -0.02 -0.01 0.00 0.01 0.02 source: results of data processing using eviews 10, 2022 based on the test results shown in figure 1, it is known that the probability is 0.010026 or <0.05. it is in line with the testing, and it can be inferred that the regression residuals are not normally distributed based on the normality test results, specifically the probability of 0.010026 0.05. the normalcy test is only appropriate for research with small sample sizes, not for big sample sizes, according to ghozali & ratmono's explanation in their book from 2017. it is consistent with gujarati & porter's (2009) assertion that if the sample is small or contains fewer than 30 observations, the data center limit theorem will be regularly distributed. the number of studies in this series: standardized residuals sample 2017 2020 observations 336 mean 4.13e-20 median 0.000153 maximum 0.024796 minimum -0.019021 std. dev. 0.006185 skewness 0.197008 kurtosis 3.708706 jarque-bera 9.205177 probability 0.010026 test prob decision chow 0.0000 fem lagrange multiplier (lm) 0.0000 rem hausman 0.0000 fem sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 78 observation amounted to 336 observations, which means more than 30 observations. 2. multicollinearity test multicollinearity is one of the classical assumption tests used to determine whether there is a linear relationship table 4 between the independent variables used. assessing how strongly independent variables are correlated. multicollinearity shows if the correlation between the independent variables is more than 0.85. (widarjono, 2018). the outcome of the multicollinearity detection is as follows. results of the multicollinearity test bi fb bs bmf audit roa lev grw fs bo bi 1.000000 0.832732 0.026154 0.016220 0.043987 0.116179 0.079263 0.027933 0.138725 0.046675 fb 0.832732 1.000000 0.003870 0.015087 0.003052 0.044293 0.004350 0.017222 0.093103 0.014569 bs 0.026154 0.003870 1.000000 0.032789 0.062187 0.131605 0.123519 0.027316 0.318161 0.104257 bmf 0.016220 0.015087 0.032789 1.000000 0.081787 0.067284 0.011763 0.029269 0.009380 0.004297 audit 0.043987 0.003052 0.062187 0.081787 1.000000 0.101450 0.122543 0.199166 0.027927 0.000277 roa 0.116179 0.044293 0.131605 0.067284 0.101450 1.000000 0.040547 0.030592 0.075429 0.155854 lev 0.079263 0.004350 0.123519 0.011763 0.122543 0.040547 1.000000 0.106979 0.082122 0.092362 grw 0.027933 0.017222 0.027316 0.029269 0.199166 0.030592 0.106979 1.000000 0.200945 0.009814 fs 0.138725 0.093103 0.318161 0.009380 0.027927 0.075429 0.082122 0.200945 1.000000 0.001441 bo 0.046675 0.014569 0.104257 0.004297 0.000277 0.155854 0.092362 0.009814 0.001441 1.000000 dpr : dividend payout ratio, bi : board independence, fb : family board, bs : board size, bmf : board meeting frequency, audit : audit committee, roa : return on assets, lev : debt level, grw : investment opportunities, fs : firm size, and bo : the presence of other priority shareholders source: results of data processing using eviews 10, 2022 table 4 demonstrates that none of the variables have a correlation value greater than 0.85. therefore, the regression model does not have multicollinearity. 3. heteroscedasticity tes heteroscedasticity is a type of assumption violation frequently occurring in cross-sectional data, leading to biased and irrelevant error term estimations. another way to think of heteroscedasticity is as a situation where the variance of the disturbance factors differs. the model commonly used to detect the presence of heteroscedasticity in a model is the glejser test utilizing the absolute value of the regression residual with the independent variables. moreover, if the probability value of each independent variable is > 0.05, it can be concluded that the model is free from heteroscedasticity. table 5 results of heteroscedasticity test variable coefficient std. error t-statistic prob. c -0.014882 0.022883 -0.650362 0.5161 bi 0.006576 0.004313 1.524749 0.1286 fb -0.001608 0.004771 -0.337072 0.7364 bs 0.000413 0.000211 1.955746 0.0516 bmf 0.000443 0.000298 1.487784 0.1381 audit 0.000823 0.000581 1.415586 0.1582 roa -0.002727 0.001933 -1.411030 0.1595 lev 0.001291 0.000692 1.865300 0.0633 grw -7.58e-05 0.000403 -0.188008 0.8510 fs 0.000351 0.000800 0.439348 0.6608 bo 0.002063 0.001402 1.472176 0.1423 dpr : dividend payout ratio, bi : board independence, fb : family board, bs : board size, bmf : board meeting frequency, audit : audit committee, roa : return on assets, lev : debt level, grw : investment opportunities, fs : firm size, and bo : the presence of other priority shareholders source: results of data processing using eviews 10, 2022 sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 79 the fem model employed in this study is free from heteroscedasticity, as shown by the regression findings above, because the values of each dependent variable, x1, x2, and x3, are all more than α = (5%). 4. autocorrelation test the autocorrelation test in this study used the durbin watson test. the durbin-watson value is 2.120376, according to the table. both 4-du and du(k=10;n=336) have values of 1.87659 and 2.12341, respectively. it demonstrates no autocorrelation issue with the regression model because the durbin-watson value is between the du value and the 4du value. based on the test results above, it gives a durbin watson stat (dw) result of 1.8994. these findings show that the durbin-watson stat (dw) value is within the range of -2 and +2 (-2 dw +2), indicating that the data is free of autocorrelation issues. panel data regression analysis statistical or hypothesis testing is used to see the independent variables' effect on the dependent variable. the panel data regression estimation is obtained as follows based on data processing: table 6 panel data regression estimation using a fixed effect approach variable coefficient std. error t-statistic prob. c -0.318638 0.049939 -6.380597 0.0000 bi 0.103886 0.009412 11.03761 0.0000*** fb 0.101193 0.010412 9.718713 0.0000*** bs 0.003951 0.000461 8.575767 0.0000*** bmf 0.006369 0.000650 9.795239 0.0000*** audit 0.005664 0.001269 4.465197 0.0000*** roa 0.013710 0.004218 3.249977 0.0013*** lev 0.011946 0.001511 7.907029 0.0000*** grw -0.006239 0.000880 -7.087167 0.0000*** fs 0.004650 0.001745 2.664516 0.0082*** bo 0.022877 0.003059 7.479317 0.0000*** effects specification cross-section fixed (dummy variables) r-squared 0.907003 mean dependent var 0.007039 adjusted r-squared 0.871265 s.d. dependent var 0.020282 s.e. of regression 0.007277 akaike info criterion -6.776840 sum squared resid 0.012815 schwarz criterion -5.708958 log likelihood 1232.509 hannan-quinn criter. -6.351152 f-statistic 25.37896 durbin-watson stat 2.120376 prob(f-statistic) 0.000000 dpr : dividend payout ratio, bi : board independence, fb : family board, bs : board size, bmf : board meeting frequency, audit : audit committee, roa : return on assets, lev : debt level, grw : investment opportunities, fs : firm size, and bo : the presence of other priority shareholders. source: results of data processing using eviews 10, 2022 based on the results of the fem model's estimation, the results of the regression for independence board variables, family board, the board size, board meeting frequency, and audit committee size, return on assets, firm size, debt level, investment opportunities, and the others priority shareholder are shown in table 6. 1. t test the effect of independence board on dividend policy in family companies is shown by the estimation results from the fem model with a probability value of 0.0000 and a coefficient of 0.103886, which suggests that board independence has a positive influence with a significance level of 5%. the test's findings are consistent with the idea of good corporate governance, which holds that independent commissioners are essential to the management of a firm, particularly when it comes to guaranteeing corporate governance. the board of commissioners' level of independence will affect sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 80 regulating the dividend policy, protecting shareholder rights, and minimizing type 2 agency issues (kilincarslan, 2021). the effect of the presence of a family board on dividend policy in family firms has a probability value of 0.0000 and a coefficient of 0.101193, which means that the presence of a family board has a positive influence with a significance level of 5%. it demonstrates that the presence of a family board has a favorable impact on dividend distribution practices in family firm in indonesia's non-financial sector. this is consistent with setia-atmaja et al.'s (2009) research, which showed that increased family board attendance would enhance dividend payments. the probability value and coefficient for testing the impact of board size on dividend policy in family firm are 0.0000 and 0.003951, respectively. it indicates that board size has a favorable effect at a significance level of 5%. the board of commissioners' corporate governance control will rise with its size, and the directors will get much more feedback or ideas (rajput & jhunjhunwala, 2019). board meeting frequency has a probability value of 0.0000 and a coefficient of 0.006369, so it conclude that board meeting frequency has a positive influence with a significance level of 5%. according to research by buachoom (2018), a high frequency of board meetings demonstrates strong quality concerning the outcomes of strategic decisions, such as dividend payout policies. board meeting frequency has a favorable influence on dividend policy. the audit committee's test results on the dividend policy in family firm yield a probability value of 0.0000 and a coefficient of 0.005664. with a significance level of 5%, it can be said that the audit committee has a favorable influence. the size of the audit committee will impact how closely the firm is monitored, which will affect how much the company operates, ultimately affecting how much money is delivered to shareholders (buachoom, 2018). the control variable in this study is return on assets (roa), has a probability value of 0.0000 and a coefficient of 0.013710 with a significance level of 5%. in contrast, company size exhibits a probability value of 0.0082 and a coefficient of 0.004650. it suggests that roa and firm size have a favorable impact on dividend distribution policy. according to research by kilincarslan (2021), the number of dividends distributed by a corporation increases in proportion to profitability and firm size. the presence of other controlling shareholders is 0.0000 with a coefficient of 0.022877. the dividend policy of family firm is significantly influenced favorably by the presence of other controlling shareholders. it is consistent with setiaatmaja et al. (2009)'s research, which found that the existence of additional shareholders effectively increases family managers' opportunistic behavior and ensures the company pays dividends. on the other hand, the debt level has a likelihood value of 0.0000 and a coefficient of 0.011946, indicating that it significantly influences dividend policy in family firm. according to atmaja (2010), family companies tend to have higher debt and a higher dividend payout ratio. debt is viewed as a form of discipline between shareholders and the company's management since it will strengthen corporate oversight, which will affect how the rights of each shareholder are distributed fairly. the investment opportunities indicates a likelihood value of 0.0000 and a coefficient of 0.006239. this study's investment opportunities significantly impact the family firm's dividend distribution policy. companies that have high growth opportunities tend to be reluctant to pay dividends (kilincarslan, 2021). 2. f test table 6 reveals that f value is 25.37896 and the probability value is 0.000000, or less than 5%. it can be said that the independent factors significantly impact the dependent variable simultaneously. as shown in table 10, the value of r2 is 0.907003, indicating that the independent variables and control variables in this study can explain 90.7% of the dependent variable, the dividend payout ratio, while the remaining 0.92997 or 9.29% can be accounted for by variables that were not included in this study. 3. coefficient of determination (r2) based on the estimated fixed effect model regression, the coefficient of determination (r2) is 0.907003 or 90.7003%. it is indicates that from 2017 to 2020, the independent variables influence board independence variables, family board, board size, board meeting frequency, and audit committee size can explain 90.7003% of family firm's dividend policy in indonesia's non-financial sector, with the remaining 9.2997% being explained by other variables not included in this research model. iv. conclusion in this study, the impact of the board of commissioners structure on the dividend policy of family firm in the non-financial sector from 2017 to 2020 was examined. first, the study results show that board independence has a positive and significant effect on dividend policy in non-financial family firm. a corporation needs an independent commissioner to verify that minority shareholders' rights are dispersed fairly, particularly in underdeveloped nations where there is less regulation. the independent board of commissioners is anticipated to serve as a go-between sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 81 for minority shareholders to oversee corporate governance and the efficient and effective utilization of available resources. second, family board has a positive and significant effect on dividend policy in non-financial family firm. the study's findings provide credence to the concept of reputation-building behavior. in order to establish a solid reputation and treat minority shareholders fairly, family boards support paying big dividends. additionally, this is because they intend to issue more shares in the future. third, board size has a positive and significant effect on dividend policy in non-financial family firm. the board of commissioners' control of corporate governance will grow with its size, and the directors will get a lot more feedback or ideas. fourth, board meeting frequency has a positive and significant effect on dividend policy in non-financial family firm. the high intensity of board of commissioners meetings indicates how well shareholders' ideas and opinions are communicated. the practical and efficient board of commissioners meetings will impact corporate governance. fifth, audit committee size has a positive and significant effect on dividend policy in non-financial family firm. the audit committee's size will raise the company's supervisory role, increasing operational activities to their highest level and, ultimately, increasing the profit that will be paid out to shareholders in the form of dividends. references [1] abbas, a., hashmi, s. h., & chishti, a. f. (2017). dividend policy and capital structure: testing endogeneity. ssrn electronic journal, march. https://doi.org/10.2139/ssrn.2745726 [2] buachoom, w. (2018). how do board structures of thai firms influence on different quantile levels of firm performance? in advances in pacific basin business, economics and finance, 6, 157–189. https://doi.org/10.1108/s2514-465020180000006004 [3] duygun, m., guney, y., & moin, a. (2018). dividend policy of indonesian listed firms: the role of families and the state. economic modelling, 75(july), 336–354. https://doi.org/10.1016/j.econmod.2018.07.007 [4] ghozali, i., & ratmono, d. (2017). analisis multivariat dan ekonometrika: teori, konsep, dan aplikasi dengan eview 10 (edisi 2). badan penerbit universitas diponegoro. [5] gujarati, d. n., & porter, d. c. (2009). basic econometrics. the economic journal, 82(326), 770. https://doi.org/10.2307/2230043 [6] hendrawaty, e. (2020). examining the excess cash holdings as an indicator of agency problems. international business and accounting research journal, 4(2), 71–80. https://doi.org/10.15294/ibarj.v4i2.125 [7] hendrawaty, e., hasnawati, s., & purnamasari, l. (2021). do independent commissioners control the effect of family-owned business characteristics on dividend policy? a study in indonesian manufacturing companies. international journal of environmental, sustainability, and social science, 2(2), 55–62. https://doi.org/10.38142/ijesss.v2i2.71 [8] hsiao, c. (2013). analysis of panel data, third edition-analysis of panel data. in cambridge university press (third edit). www.cambridge.org [9] kilincarslan, e. (2021). the influence of board independence on dividend policy in controlling agency problems in family firms. international journal of accounting & information management, 29(june), 552–582. [10] la porta, r., lopez-de-silanes, f., & shleifer, a. (1999). corporate ownership around the world. journal of finance, 54(2), 471–517. https://doi.org/10.1111/0022-1082.00115 [11] rajput, m., & jhunjhunwala, s. (2019). corporate governance and payout policy : evidence from india. corporate governance international journal of business in society, 19(5), 1117–1132. https://doi.org/10.1108/cg-07-2018-0258 [12] rodriguez-fernandez, m. (2016). social responsibility and financial performance: the role of good corporate governance. brq business research quarterly, 19(2), 137–151. http://www.cambridge.org/ sinergi : jurn al il miah il mu man ajemen, volume 12 number 2 september 2022 ayu p.w), ernie h, r. a fizka huzaimah the effect of the board of commissioners structure on dividend policy : study of the non-financial family firm in indonesia period 2017-2020 82 https://doi.org/10.1016/j.brq.2015.08.001 [13] setia-atmaja, l., tanewski, g. a., & skully, m. (2009). the role of dividends, debt and board structure in the governance of family controlled firms. journal of business finance and accounting, 36(7–8), 863–898. https://doi.org/10.1111/j.1468 5957.2009.02151.x sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 21 rapid changes in society, technolog y ,economy and public service institutions tirthendu bagc hi univers ity of nottingham e-mail: tirth endubagchi@gmail.com (diterima : 27-dese mber-2016; direvisi: 29-januari-2017; d ipublikasikan : 04-maret-2017) abstrac t. current paper has the purpose to analyze the statement by drucker (1985) that rapid changes in today’s society, technology, and economy in general are simu ltaneously a great threat to public -service institutions and even greater opportunity. the statement by drucke r will be analy zed part icularly with context o f post offices that what are they going through these days or have gone through. finally, some reco mmendations will be made for usps based on the findings of the analysis.. keywords : rapid change; public service institution; society; economy introduction in modern day economy, the capabilities of government institutions are enhanced and constrained due to various characteristics of their advanced information and technological systems. all the tools used by government, as mentioned by hood (1983), depend on a particular technological system. for instance, information and communication network of the government, organizational tools, treasure systems to pay out transfers and requisitioning taxes, and basic organizational tasks such as file keeping to register government instructions and to see them being implemented. according to dolowitz and marsh (2000) government information technologies is important for policy making in liberal democracies. the information diffusion by the government has also increased enormously during past decade as transfer of information is a click away. there is significant potential for enhancing public welfare by using the advanced technologies; however, there are several risks for increased use of the technology. for example, there is risk of information leakage by the hackers; and also the risk of free riders (lazer, 2002). during the recent decades, raising quality to a strategic level has become an essential condition of successful operation in every field of the economy. no production or service organization can avoid applying quality management tools and methods on a system level. these systems have developed parallel with the change of the concept of quality and partly this change may have forced the evolution and application of various quality approaches and systems. (topár, 2001) sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 22 what is called quality? there are numerous different definitions of quality; however, pointing out its essence, we can say that quality means meeting all expressed or latent demands of a client (customer, partner). according to this definition, in essence, the number of various demands arising against services is the same as the number of your partners or clients. (tenner � de toro, 2005) to meet specific unique client demands, of course, a part of public service institutions must consider the fact when creating their quality management systems that the majority of institutions fulfill authority functions. in these cases, legal background and client demands do not always fully comply. of course, more extensive customer demands stipulated by the law have priority in these cases; these are the ones specified by the creator of the law. talking about quality matters of public service, you must not forget that basic quality management methods and techniques have evolved in connection with industry production. creating or developing your quality management systems, good results can be usually reached with proper adaptation of these methods and considering the special features of the applying sector and organization when applying them. the efficient application of modern quality management systems and methods is a critical requirement also in case of public service institutions. (dudás, 2002) higher education institutions have started applying elements of quality management systems systematically during the past decade. similarly to other sectors of public service, complying with the law is also typical for higher education institutions, which is ensured as an external quality system by the hungarian accreditation committee (hac; magyar akkreditációs bizottság, mab). at the same time, requirements drawn up by hac include the demand that a quality assurance system should operate also within the institutions, enabling the continuous improvement of institution processes. the other dilemma of performance in the public service is because it is not managed like a business enterprise. what characterises a business is control by performance and results. since there is no competition in the public service institutions, there is no outward and imposed cost control as there is in the business field. at the outset the public sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 23 service institution does not differ much from a business enterprise in any area other than its specific mission and purpose. nor does the public service institution differ very much from business enterprise with respect to the manager's work, organization design and structure, or even the job and structure of top management. however, managing for performance is the area in which the public service institution differs significantly from a business enterprise. the other inhibition is the fault embedded in the public service system. there is no flexibility and mobility for workers. the public service regulation that stipulates that staff can only compete for vacancies which are on the next higher post level hinders staff with necessary competencies and skills to take up managerial and professional positions. this regulation limits opportunities for staff to move within and across the public service. limited mobility creates challenges in sharing skills and competencies across the system. as a result the system undermines performance within itself. quality management systems developed according to the iso 9001:2000 standards can also be found in higher education institutions, but in a smaller percentage as in other fields of public service. in my personal opinion, such a system should be developed primarily in institutions where the development and harmonization of processes requires operating a formalized subsystem. i have seen positive results of the system operating during the efficient implementation of institutional integration efforts. at the same time, in my professional opinion, the majority of the main and supporting processes typical for higher education institutions as well as the specific features of these institutions give the grounds rather for establishing and operating an own institution’s quality assurance system taking the principles of tqm leadership philosophy into account. only the commitment of the leadership (on all levels of the higher education institution) can ensure the highlevel operation expected from the institutions by “customers” or partners. a self-assessment system based on the tqm principles makes it possible to sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 24 define strengths and fields ready for improvement on all leadership levels and, as a result, to carry out continuous improvement in higher education. any self-assessment model may be suitable for this though, but it will work efficiently only if the values of the self assessment are adapted to the specific features of the institution. upon establishing this self-assessment culture, the system of criteria drawn up in the accreditation guide of hac (mab, 2005) can be of assistance, offering a usable framework for the assessment of the institution’s (faculty’s) potentials and the operating results. as far as the work of these organizations is regarded, the focus has been moving from fulfilling official functions to service functions. anyhow, the features of official authority processes today also include service approach and consulting, professional analyzing, after all, supporting activities, as this means supporting the work of the clientele and reaching client satisfaction, i.e. quality. (topár, 2002) in the following, i summarize the efforts of some public service sectors relating to quality management system development and their experience. the detailed analysis of these fields is far beyo nd the scope of this article so i intend to cover some elements of the quality efforts of healthcare, public administration and higher education in the following. opportunities for public services sector in modern economy, society and technological development the rapid development of computing and communication technologies has offered tremendous opportunities for both public and private sector. decreased cost of data storage and transfer, as well as, information processing has made it easy for policy makers to provide public services more efficiently and with reduced cost. however, it has become practicable for data mining enterprises to collect all information. nobody is aware that who collects information, how is it being shared and used or misused. the concerns have reduced trust of people in online institutions (deb, 2014). technological and economic developments of the countries have led to various changes in the way governments play their role in public administration. current global changes in functions o f the public officials and the state are based on two sources. first is the technological development and globalization and the second is dissatisfaction of people about governance and the services provided by the public administration. increased sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 25 interaction, interdependence, and integration among organizations and people across the world has increased levels of trade and investment, as well as, the flow of technology, people, and capital and information. consequently, governments need to support the public services system that satisfies the citizens in changing economic, social and technological environment (hoffman, 2002). according to quinn (1987) there has been focus of research on structural changes in manufacturing due to technological development; ho wever, modern developments have caused dramatic changes in services sector too that generates 68% of employment in the usa. the trend towards services has been observed in us, as well as, many other industrialized countries; however, there are some issues related to technological development in services. the revolution of information and communication technology has significantly impacted on postal services. although, postal service enterprises that are managed through traditional governance, were late to adopt the latest technologies because they have little competition as compared to profit making organizations. however, most of the postal service entities is using information and communication technology to become more profitable, efficient, and accessib le (al-morshid, & dayan, 2011). governments are enthusiastic to adopt the advanced technologies to bring public services to people more effectively and efficiently, as well as, to lower the costs and time to deliver the public services. there are some governments that provide information via the internet, but the services are delivered in old way. other governments who offer the option of downloading the information or applications via the internet thus saving multiple visits of citizens to government offices. however, transactions are completed over the counter. some technologically developed governments conduct most of transactions via the internet (united nations, 2007). threats for public services sector the need for better government services has been felt in past as there was concern that governments were inflexible, ineffective, insufficiently responsive, and expensive to the needs of people. more ever, the threat of government bankruptcy increased the need for reinnovation of government. timely development of information and communication technology has facilitated the process. the private sector has been using information and communication technology (ic t) to lower costs and to sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 26 increase productivity; however, it is not easy for government. the key reason is that government has lack of resources to incorporate technologies in public service administration. moreover, technology has been introduced slowly as the availability of funds to adopt technological change is minimal (united nations, 2007). another threat for the government while using the advanced technologies is the privacy and security. as technology is still evolving, it is not perfectly secure. for instance, the verification of electronic signature has not developed fully and there are not complete legislations for the use of electronic signature. opportunities and threats for post offices technology drivers in the postal services opportunities for postal services the development of new technologies has provided several opportunities for postal services. some of the benefits or opportunities are as follows: the development and increased use of the internet has empowered customers. their participation in the market of postal services has changed from passive to active customers. customers now a day have increased choice to select among delivery options for their access to services and parcel operations, such as an hour delivery, same day delivery. some newly developed technologies are being tested for future development, such as 3d printing, drone deliveries and peer to peer delivery. these future services could enhance the efficiency and quality of postal services. challenges for postal services the post offices are facing some commercial, demographic, and technological problems tha t must be addressed by the senior management. some threats for post offices from recent technological, societal and economic developments are depicted below: the major threat is the falling number of customers. post offices have observed accelerated fall of their customer visits. for instance, post office had 28 million customer visits in 2000 that reduced to 25 million custo mers by 2006. it is an interesting fact that older customers visit more than the younger customers. revenues of post offices have fallen and they are in loss significantly since 2000. a number of services that were traditionally provided by the post offices are now offered by other channels with less time and cost. for instance, people get their payment, benefits or pension directly transferred to their bank accounts. they can pay bills online, sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 27 renew their taxes online rather visiting the post offices. post offices have reduced the number of their branches over the last decade by 28%. the reason for closure plan was the falling re venues due to decreased number of customers. it was decided to address the issue by removing the capacity or offices from the network. customer are not always have information about the liability issues while using crowd sourced delivery service. the number of complaints and requirement for application of liability rule can increase as the shared delivery services become more popular. another issue faced by customers is privacy and security. in order to access the improved services and take benefit of tailored offers, customers are required to provide personal information to parcel carriers or e-retailers that puts their sensitive information on risk (hillebrand, et al. (2016). technology has changed the usps usps has deep and broad history that was based on the principle that all people in the usa have to right to access efficient, secure, and affordable mail service. during its history of 240 years, usps has delivered according to the promise and transformed itself to provide better services to the customers. centuries of universal mail system has developed its bond of friendship with people. the usps service system is always ready to adopt ne technologies to explore it it can improve the postal services, such as mail distribution, steamboats, automobiles and trains, plans, sorting machines, and recent automation. usps distributes hundreds of million of its mail by using its computerized equipment (united states postal service, 2007). the usps has been struggling to work relevantly in the era of modern technologies. the modern technologies and development has impacted the usps in different ways both positive and negative. for instance, is has to shrink its workforce, and change it operation models and delivery schedules to achieve efficiency. however, the re is opportunity for the organization to use new products and services. c urrently usps is increasing its presence in several online venues such as selling products and stamps on ebay (edgar, 2013). the usps is currently struggling to remain successful in the face of advanced technologies. there are some organizations that work as efficiently as usps, but efficiency of operations is insufficient to survive in competitive marketplace of today. the major shift occurred fifteen years back when free email became available for users. fewer sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 28 people now use physical mil to write letters, and send or pay their bills. even the junk mail is far less viable now. post offices have not done anything wrong but the market shift has declined their value proposition (hartung, 2011). the development of society, technology and the economy requires government to tackle several challenges, such as employment, demographic change, security, environment, mobility, and many others. the advanced technological changes, such as take up of social media and open data lead to information exchange, as well as, more openness, connectivity at all levels. conclusion recommendations for usps there is need to change the branch model of usps in order to face the issue of reduces customer numbers and dependence on subsidy provided by the taxpayers. without modernization of usps, and keeping it the current size will require more subsidy from taxpayers that would carry on increasing over the years. there is need to adopt a different strategy to post office network. the management should make sure that network remains at the current size an communities don’t to face mass closure. the management should be provided support to address the economic and customer service issues that are being faced in current models of post office networks. as the customer needs have changed over the past years, usps management should consider changing the overall structure of offices and working hours. the short hours for post office, and long time in queues is from past era. more over, the style of talking to post master through a security glass is out of function these days when in a bank they can talk to bank staff without a glass. thus, the model for usps should be more convenient for the customers. the model should provide such a convenience that people can post or collect a parcel while they are out to pick up newspaper or coffee, or they can collect currency for family trip while they are on the way to collect foreign currency for travel. it is important for usps to explore what actually customers of technologically advanced era want from post office. c ustomers should be offered some convenient options with longer working hours. moreover, post offices can consider attain quicker services, ready accessible locations, and high retail standards. the functioning of usps in future requires the modernization with new sustainable future for post office agents in which they can fully utilize their skills to use the potential of the post office sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 29 network. this target can be achieved by making current structure must be made flexible and include refreshed branches. the agents should be rewarded for improved custom services. bibliography deb, s. (2014). information, technology, its impact on society and its future. advances in computing, 4(1), pp. 25-29. retrieved from: file:///c :/users/user/downloads/10.5923.j .ac.20140401.07.pdf. [14 apr, 2016]. dolowitz, d., & marsh, d., (2000) learning from abroad: the role of policy transferrin contemporary policy making. governance: an international journal of policy and administration, 13(1), pp. 524. edgar, j. (2013). how technology is changing the usps? the wall street journal. retrieved from: http://blogs.wsj.com/cio/2013/10/10/howtechnologyis-changing-the-usps/. [14 apr, 2016]. hartung, a. (2011). why postal service is going out of business. retrieved from: http://www.forbes.com/sites/adamhartung /2011/12/06/why-the-postal-service-isgoing-out-of-business/#216dab2f4018. [14apr, 2016]. hood, c. (1983). the tools of government. basingstoke: macmillan. lazer, d. (2000). how to maintain innovation.gov in a network world? kennedy school of government. retrieved from: http://www.umass.edu/digitalcenter/event s/2002workshop/papers/lazer_maintain.p df. [12 apr, 2016]. quinn, j. b. (1987). the impacts of technology in the services sector. pp. 119-159 in technology and global economy, bruce guile and harvey brooks, eds. washington, d. c : national academy press. hoffman, s. (2002). c lash of globalization. foreign affairs, 81(4), pp. 104-115. united nations (2007). public administration and democratic governance: governmetn serving sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 30 citizens. 7th global forum on reinventing government building trust in government, 26-29 june, 2007. retrieved from: http://unpan1.un.org/intradoc/groups/publ ic/documents/un/unpan025063.pdf. [18 apr, 2016]. united states postal service (2007). the history of the united states postal service: an american history. retrieved from: https://about.usps.com/publications/pub1 00/pub100_001.htm. [16 apr, 2016]. al-morshi, s. a., & dayan, e. (2011). icts, new services and transformation of the past. retrieved from: https://www.itu.int/itud/tech/rural_telecom/rural_publications/ dcc_livreuiten.pdf. [14 apr, 2016]. hillebrand, a., thiele, s., junk, p., hildebrandt, c., needham, p., &kortum, m. (20016). technology and change in postal services – impacts on consumers. retrieved from: https://www.citizensadvice.org.uk/global /c itizensadvice/essential%20services%2 0publications/post/wikconsult%20c ita_impact%20of%20techn ology_executive_summary.pdf. [12 apr, 2016].. tenner, a. r. – de toro, i. j. (2005): teljes kör� min�ségmenedzsment tqm, 4. kiadás, m�szaki könyvkiadó, budapest dudás, f.: közigazgatás-fejlesztési tendenciák a min�ség és a teljesítmény tükrében, min�ség és megbízhatóság 2002/5 6. pp. 243-249., 346-349. gulácsi, l. (2000): min�ségfejlesztés az egészségügyben, medicina, budapest topár, j.: a min�ségmenedzsment rendszerek szerepe és lehet�ségei a közszektorban min�ségfejlesztés a közigazgatásban a brit és a magyar gyakorlat tükrében, 2002. londonbudapest pp. 51-77. topár, j. – gulácsi, l.: min�ségfejlesztésivezetési rendszerek, modellek, egészségügyi menedzsment iv. évfolyam (2002) 3.szám pp. 28-31. topár, j.: a min�ségmenedzsment – rendszerek fejl�désének néhány jellemz�je a hazai vállalkozásoknál, harvard business manager, 4/2001, pp. 50-57. sinergi , volume 7, nomor 1 2017 tirthendu bagchirap id changes in society, technology ,economy and public service inst itutions 31 min�ségértékelési szempontrendszer, ajánlások az önértékelés készítéséhez, magyar akkreditációs bizottság, budapest 2005. sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 6 implementation of economic value added and market value added analysis as valuation tools of invest feasibility achmaddaengs, gs1),luqi dian ichromi2),mochrizaldyrahmansyah3) 1), 2)universitas 45 surabaya email :bumigora80@gmail.com 3)universitasciputra email : mrizaldy01@magister.ciputra.ac.id (submit : 01 march 2017; revised : 19 april 2017; accepted : 08 august 2017) abstract. for the investors, financial statement is a benchmark of investors in assessing the company's performance. in fact, investors are not always receiving the accurate company's financial statements information and its levels of fairness are in doubt. the financial statement analysis with using financial ratios is not enough. the investors may need to use alternatives financial statement analyses techniques that reflect the actual company's performance. therefore, both of the investors and the prospective can use economic value added (eva) and market value added (mva) analysis. with these technical analyses, the investors may know the company's performance where they are invested or to be used as a place to invest whether it has value added or not. with the results of these analyses, it is the expected for the investors to be more confident in making decision whether to buy, sell or hold the ownership in the company. keywords: economic value added, market value added, investment i. introduction the investors making investment in the company to get the yields purposed that were in accordance with their expectations. therefore, before investing, they evaluate the revenue that is expected to be obtained from the investment. this means that investors should conduct an analysis on the company's financial statements to be selected as a capital investment. after becoming the investors they are monitoring the companies by analyzing financial statements published by companies or by financial news in various newspapers, magazines and even can be accessed via internet at the company's website or at the indonesia stock exchange specialized for companies that have gone public. financial report is a benchmark of investor in evaluating company performance. "the financial statements are the result of the accounting process that can be used as a tool for communication between financial and activity data of a company with the parties concerned with the data or activities of the company".[1] in the statement of accounting principles board no. 4 (new york: aicpa, 1970), par 41 stated that: "the financial statements are the primary tools through financial information communicated to the outside parties of company. this report provides a history of continuous quantified in terms of money regarding economic resources and obligations of a company's business and economic activities that transform resources and this obligation. "[37] in fact, investors do not always receive the accurate information of company financial statements and the level of its fairness is in doubt. in this case the investor must be careful in conducting the analysis. during this time, analysis of financial statements is more directed at the financial ratios that include liquidity ratios, asset management, debt management and profitability ratios. unfortunately, financial ratios also have weaknessesbecause management manipulates financial statements to perform window dressing technique. the financial statements became as if reflecting the company in better condition but the real condition was not like that. the financial analysts seek alternative analysis techniques of financial statements that reflect the actual performance of the company. joel stern and bennett steward, founder of the consulting firm stern stewart & company to develop their own concept (protected copyright law), known as economic value added (eva) and markets value added (mva). the essence of mva concept is the difference between the market value of the company’s shares with the book value of the company. mva indicates the size of the company’s performance from the beginning of the firms’establishment based on the stock values. if mva measure the overall performance, then the concept of eva measure the effectiveness of the company’s performance in any given year only. eva is an estimate of the economic profit of the company in concerning years and it is very much different from the concept of net profit after tax (earnings after tax-eat). by the both of alternative concept, investors are expected not to get traps in the net profit after tax (level of company profitability), the beauty of financial ratios and sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 7 dividend per share. both of these concepts will be more readily applied to go public companies in which the shares are traded on the stock exchange because of the extent of the access of investors to determine the company’s financial statements. ii. theoretical framework a. financial statements regarding the meaning of financial statements there are some opinions expressed by the experts. “the financial statements is to provide an overview of the financial situation of a company, in which the balance sheet reflects the value of assets, liabilities and equity at a certain periode and the income statement reflects the results that have been achieved during the certain period.”[3] according to myer in his financial statement analysis states: “that the meant of financial statements are two sheets compiled by the accountant at the end period for a company. both of the sheets are the balance sheet or financial position and the income sheet or profit and loss sheet. in recent times this has become a habit for the companies to add third sheet that is surplus sheet or retained earnings. “[19] the meaning of financial statements according is: [6] “the financial statement is a summary of a recording process, a summary of the financial transactions that occurred during the concerned financial year. the financial statements prepared by management with the aim to account for the tasks assigned to him by the company owner. besides, the financial statements may also be used to meet other purpose that is as a report to the outside parties of the company. “ based on above definition, it can be concluded that the financial report is a report that provides financial overview or condition of a company that can show the total assets, liabilities and capital expressed in terms of the balance sheet and the yield during the accounting period, which is expressed in the income statements, where the number is obtained through the process of recording financial transactions, in order to account for the tasks assigned to management by the owner of the company. in order to the financial statements readers have clear overview; the financial statements prepared should be based on common accounting principles. in accordance with sfas no. 1 (2004: 1.2) the complete financial statement consists of the following components 1. balance sheet 2. income statement 3. changes in equity statement 4. cash flows statement, and 5. notes of the financial statements it is also mentioned in ias (2004: 2) that: “the complete financial statement usually includesof balance sheet, income statement, and statement of changes in financial position (which may be expressed in various ways, for example, a cash flow statement or fund flows statement), notes and other statements and explanatory material that are an integral part of the financial statement. besides, it also includes schedules and additional information relating to the statement, for example, the financial information of industry segments and geographical as well as the disclosure of the effect of price changes. “ the preparation of financial statements is conducted periodically and periods that used are annual starting on january 1 and ends on december 31. the period like this is called the period of calendar year. in addition to the calendar year, the accounting period can also be started from a date other than january 1. the term of accounting period is often replaced by the term of financial year. b. purpose of financial statements basically purpose of financial statements is to provide financial information of a company that will be used by the concerned parties as a material consideration in making economic decisions, under sfas no. 1 (2004: 1.2) stated: “the purpose of financial statements for the general purpose is to provide information about the financial position, performance and cash flows of companies that give benefit to the majority of reports users in order to make economic decisions and demonstrate accountability (stewardship) of management over the use of resources entrusted to them.” meanwhile, according to jopiejusuf in his book credit analysis for accounts officer stated that the purposes to hold the financial statements are: 1. to provide reliable financial information about the assets and liabilities as well as the capital of a company. 2. to provide reliable information about the changes in net assets (assets minus liabilities) of a company arising from business activities in order to gain profit. 3. to provide information that helps financial statement users in assessing the company’s potential in generating profits. 4. to provide other important information about changes in assets and liabilities of a company, such as information on financing and investment activities. 5. to express as far as possible any other information relating to the financial statements those are relevant to the needs of users, such as information on the accounting policy of the company. so by looking at the description above, that the purposes of financial statements are to provide information on the financial condition of a company in the form of balance sheet, income statement and other reports required by the users in making a decision. c. financial performance of the company company as an organization has certain objectives that show a variety of things to do to meet the interested parties, including investors. before deciding to invest in a particular company, the investor must measure whether the objectives set by the company has been reached or not. however, this measurement is not easy to do because it’s not just about the financial aspects but also non-financial of sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 8 the company management. measure of financial performance is only one way to find out whether a company has run operations in accordance with the plan or not. measurement of financial performance arising as a result of the decision process management company, is the most complex and difficult mattersas it concerns the effectiveness, capital utilization, efficiency, and profitability of the company’s activities and concernvalues and security of various claims arising to the third party of company. states that “financial performance is a tool to measure financial performance through its capital structure”. the company performance according to is the “achievements of the company that are rated on the ratio of the current to the past and to the future”.[23] d. purposesof financial performance measurement states that the purposes of measuring the financial performance are as follows: [31] 1. to determine the liquidity, which is the company’s ability to meet its maturing short term liabilities. 2. to determine the solvency level, which is showingthe company’s ability to meet financial liabilities if the company is liquidated either short term liabilities or long-term liabilities. 3. to determine the rentability level, which is shows the company’s ability to generate profits for a certain period. 4. to determine the business stability, this is the company’s ability to do business stably measured by taking into account the ability to pay dividend regularly to the shareholders without any financial obstacles or crisis. iii. market value added the maintargets of the most companies are to maximize the wealth of their shareholders. thesetargets will certainly give benefits to the shareholders but will also help to ensure that the limited resources allocated efficiently, which will provide economic benefits. shareholder’swealth will be maximized by increasing the shares market value of a nominal amount of equity capital that has been provided by the shareholders. according to g. bennett stewart iii in book of the quest for value mentions that market value added-mva is“the difference between the shares market value of the company and the amount of equity capital that has been provided by the shareholders”. the higher mva, the better works done by the manager for the firm’s shareholders so that the companies are deserve to be the place to invest. the mva basic formula is as follows: mva = theshares market value equity capital provided by shareholders mva = (outstanding shares) (stock price) total common stock equity the higher mva, the better work done by the manager for the firm’s shareholders so that the companies are deserve to be the place to invest. a. economic value added (eva) the company valuation is an important step that should be taken by investors before they invest in a company. through the company valuations, investors can choose what steps should be taken in a company if he would buy, hold or sell their equity. “as long as this has not felt the existence of valuation method that accurately and comprehensively able to provide a reasonable valuation of the company’s condition”[25]. for this reason, g. bennett stewart iii, partner joel stern founder of consulting firm of stern stewart & company pointed out the concept of economic value added which is contained in his book the quest for value. “eva is a residual income measure that subtracts the cost of capital from the operating profits generated in the business”. so eva is the remaining residualincome from net operating profit after subtracts the cost of the whole capital. [25] argues that eva is “a method of measuring the real operating profit of the company, which makes the difference between eva and the traditional measurement that is the cost of capital in eva”. the almost same opinions are expressed by in world economic digest, “eva is a financial method that gives instructions on how the company’s capital cost reduction can be done”argue that: [39] “eva is based on the idea of economic benefit, which states that wealth is only created when a company covers the operating costs and capital costs. in this narrow sense, eva is really just an alternative way to valuate company’s financial business”. meanwhile argue that: [6] “eva is an estimate of the actual economic profit of the business for the concerned year, and very much different from accounting profit. eva reflects the residual profit remained after the cost of the whole capital, including equity capital has been subtracted while accounting profit is determined without charging to equity capital “. so far, the investors often find difficulty whether to buy the ownership of a company or sell it. this is because investors are trapped on financial ratios primarily earnings per share, not to pay attention to the aspect of ability to pay dividends and the value of the company. besides, the company management sometimes do window dressing to cover the company’s performance which is not good so the financial statements look better than the actual condition. in his book [39] argues that the “value creating companies, however, pursue them not for their own sake but because long-term value creation for their shareholders is not possible otherwise.” so it’s clear that the company prioritizes how management capability creates value. value creation as the main purpose of the company is only a beginning. managers also need to create growth / their progress in achieving them. from the opinion above that creating value is to bring changes to the company in the global era like now, and thenit is raised the concept of performance measurement that is eva. the principle of this analysis is “to create sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 9 value for shareholders, the company must get a return on capital that exceeds the cost of capital”[39]. b. advantages and disadvantages of eva the used method can not be split because of the advantages of the method. the advantages of eva [25]: 1. eva are truly complete concept, summarizes the traditional ratios that have been used such as roi and roa. the concept is seeing something operationally,assets that are not yet in operation, not used as a component, while the already in operation is calculated the value added. 1. because it involves operational aspects, eva as cited above as the driver of employee empowerment. they demanded more willing to take decisions that will give added value, with the idea of investment returns must be greater than the cost of investments and various cost of capital. the advantages of eva [34] in [22] are: 1. eva focuses the valuation on value added by calculating the cost of capital. 2. the concept of eva is a tool to measure the performance of companies that pay attention to the expectations of the funders (creditors and investors) fairly. 3. in the eva calculation, it does not require comparative data (e.g., the other companies’ data) as required in other valuation concept that using ratio analysis. 4. the eva concept is a practical measure, easily calculated, and easy to used, so it can accelerate the process of business decision making. another advantages of eva expressed [20], among others, “eva explicitly take into account the cost of capital and perform a number of adjustments to the financial statements to be more relevant”. based on eva, the company management is expected to define a strategy to enhance shareholder value. instead eva is has no disadvantages at all. some of eva disadvantagesare: [20] 1. eva contains an element of luck or high and low of eva can be influenced by capital market volatility. 2. conceptually eva is superior to traditional accounting measure, but in practice it may not necessarily be applied easily. determining the cost of capital stock is sufficiently complex that they need the depth analysis of techniques to estimate the cost of the share capital. the other disadvantages according to roy sembel, an analyst of investment and finance,[25] : “using the eva approach in volatile market situation, in the short term is often questionable validity. the result can not reflect the total return shareholders in the long term”. c. benefits of eva as appraiser of company financial performance some of the benefits that can be obtained from eva [22] : 1. eva as a performance evaluator company where focus of performance valuation is the value creation. 2. performance valuation by using eva method led to the attention of management in accordance with the decision of shareholders. 3. by eva, managers will think and act just like shareholders, namely choosing investments that maximize returns and minimize the level of capital costs that would be the maximum value of the company. 4. eva makes managers focus attention on activities that create value and enable them to evaluate the performance based on the criteria of maximizing the value of the company. 5. eva can be used to identify activities or projects that provide higher return than the cost of capital. 6. eva will cause the company to pay more attention to its capital structure policy. thus the concept of eva as a measurement of company financial performance is directly indicates how much the company has created value for the investors. d. calculation of eva at [25] eva calculation based on: “the data are publicly available (annual reports or independent auditor’s report). in simple terms, eva value derived from operating income subtracted the cost on invested capital, which is also called the cost of capital, both within the company as a whole, the business unit level, factories, offices or assembly lines. eva approach has incorporated all the elements in the profit or loss and balance sheet of the company. because of that eva is also known as the measurement of “performance factor total”. based on the meaning of calculations above, the basic formula of eva is as follows: eva = nopatcost of capital cost of capital = wacc invested capital where: 1. nopat (net operating profit after tax) 2. wacc (weighted average cost of capital) e. nopat if the two companies had a net earnings after tax (eat) with the same amount it is not necessarily both of them have the same company operating performance. this can be influenced by the different amount of debt interest expense. the companies that have a lot of debt is certainly the operating profit must charge the greater debt interest. net earnings after tax are certain to be an important, but the net earnings did not always reflect the true performance of the company’s operations or the effectiveness of the company’s management. a better measurement for comparing the performance of management is the net operating profit after tax (nopat). “nopat or net operating profit after tax before interest expense is the sum of operating income, interest income, expense or income tax of 30%, interest expense, equity in net income or net loss of associated companies, profit or losses of rates, and other profit or losses related to the company’s operations”.[25] meanwhile, [38] “nopat is profits derived from the operation of the company after sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 10 subtracted income taxes, but including financial costs and non-cash bookkeeping entries such as depreciation costs”. f. cost of capital eva concept is a new concept that originated from the existing concept, i.e. cost of capital, which is a concept to determine how the costs will be incurred by the company in connection with the purchase of goods and capital or working capital. if reviewed of the owners of capital, this cost is expected income as remuneration on the funds invested. the cost of capital for any investment, whether in a project, a business division, or an entire enterprise, is the rate of return expected by providers of funds. so it can be concluded that the cost of capital is based on the expected return and not on historical returns and the cost of capital is the opportunity cost that reflects the expected return of investors from other investments with the perfectly risks. costs of capital are “costs incurred by the company on the use of sources of funds to finance investment activity”[19]. meanwhile, the definition of the overall cost of capital is the “ an average cost of capital of each of the securities that used to finance the company”[19]. there is the possibility of a company in terms of financing their operations, just use fully ordinary stock capital. under these conditions, the cost of capital employed is the rate of return on equity demanded by investors. however, the most companies get a substantial part of the capital not only of the common stock, but also of debt, preferred stock and the issuance of new stock. for these companies, the cost of capital should reflect the average cost of a variety of funding sources that is not only the cost of equity alone. costs of capital that used here is “weighted average cost of capital that is calculated proportionally on the use of capital stock, debt or preferred stock”. this concept is known as the weighted average cost of capital (wacc) [19]. there are three reasons why the cost of capital is very important, that are: [18] 1. maximize the value of the company are require that costs (including capital costs) is minimized 2. decision of capital budgeting requires an estimate of the cost of capital 3. other decisions such as working capital management and leasing need information regarding the cost of capital the cost of capital is a concept that can determine in real terms of the costs to be charged by the company, as a result of the use of funds. component of cost of capital consists of: 2. after tax cost of debt, kd (1-t) after-tax cost of debt that is showing interest cost to be charged by the company, as a result of the use of funds from the loan by the company subtracted by the tax subtractionoccurred. cost of debt should be subtracted by tax firstly because the cost of interest debt is a tax subtraction. according to brigham and houston (2006: 470), the after-tax cost of debt is calculated by the formula: the after-tax cost of debt = interest rate tax subtraction = kd kdt = kd (1-t) however, the use of this formula will be difficult when the company did not only have the long-term loan in only once. in fact, most companies do more than one loan at the different rate and from the different banks, the period and the date of loans, changes in the loan agreement, as well as currency differences between the report presentation and the contract agreement. so the interest rate that used is the average interest rate. after taxes cost of debt can be formulated as follows: [31] kd (1-t) = (i (1-t) / p) where: kd : cost of debt capital i : interest expense t : the tax rate 30% p : average of bank debt 3. costs of capital of preferred stock (kp) these preferred stockscharged on the company’s liabilities to make the dividends payment to the holder periodically. this type of capital is only taken into account in determining the overall cost of capital when the company issued the preferred stock. these types of capital should be taken into account in determining the overall cost of capital if the company issued preferred stock. the formula of the cost of capital of preferred stock is: �� = �� �� where: kp : cost of preferred stock dp : preferred dividends pp : current price of preferred stock 4. the cost of common equity capital (ks) the enormous of common stock dividend is not determined at the time when the investor direct funding, but it is uncertain in nature depending on the company’s performance in the future. it is different with debt capital, because it has certainty that the interest rate should be approved. to estimate the cost of common stock capital need an approach based on the rate of return expected by shareholders. that is why it is to determine the cost of common stock capital must be based on the prevailing market value rather than book value. in swa (2001: 31) the method that used in calculating the cost of common equity is the method of capm (capital asset pricing model) by using the risk-free interest rate of the average interest rate of bank indonesia certificates (sbi). the variables were observed in the calculation of capm approach, among others: a. risk-free interest rate (krf) risk-free interest rate is taken from the average interest rate of sbi for one-year. b. return individual (kri) it is the stock return over interval time of one month. calculations by means of the closing market sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 11 price on end of trading days this month (pit) subtracted the closing price on end of trading days last month (pit-1), then add the dividend and the result is divided by the closing price on end of trading days last month’s transactions (pit-1). it is mathematically written as follows: kri = pit-pit+dit pit-i where: kri : the rate of profit stock pit : price of stock 1 in period t pit-1 : price of stock 1 before period t dit : amount of dividends in period t c. return market (km) it is a return of the market portfolio using composite stock price index (cspi). determination of return market was using the average cspi per month for each year. while the market rate of return is calculated using the formula: km= ihsgt-ihsgt-i ihsgt-i where: km : return market ihsgt : composite stock price index at month t ihsgt-1 : composite stock price index before month t d. systematic risk () it is the risk associated with the market. one thing that is very useful from the capm model is that the beta of stock portfolios is a weighted average of the various beta of each other stock. beta is used to compare the magnitude of the systematic risk of the stock with each other. beta is formulated by: β= ∑[(kri-kri����) (km-km����)] ∑(km -km����) 2 where: kri : profitability of stocks / return individual kri���� : average of stock profitability km : profitability of market km���� : average of market profitability after doing the calculations on individual returns, market returns and assessing beta risk, then the results obtained are used in the calculation of capm. valuation of common stocks cost with capm method, according to brigham and houston (2006: 475) are formulated in the following equation: ks = krf + (km krf) β where : ks : the cost of common equity capital krf : the level of risk-free profits km : the level of market profits km krf : the market premium is the market profit rate above the level of risk-free profits  : beta of individual stocks although it looks very accurate, capm approach obviously hasthe disadvantages [6]. the disadvantages of the capm are: 5. not considering the risk stand-alone 6. produce too small cost value of common equity (ks) 7. it’s hard to get a precise estimate of the inputs required for: a. there is controversy between the use of long-term government bond yields with short term for the value krf b. it is hard to estimate the beta value () that expected by investors would be owned by the company in the future c. it is hard to estimate the market risk premium there are other approaches that could be used in addition to the capm approach are as follows: a. approach of bond yields plus risk premium analysts who lack confidence in capm often use subjective ad hoc to estimate the companies cost of common equity, just add the estimated risk premium of 3 to 5 points in the interest rate of long-term debt of those companies, so it can be formulated as follows: ks = bond yield + risk premium although it did not produce an accurate valuation of equity, this method will just help us to walk in the right direction. b. approaches of dividend yield plus growth rate in this approach, the cost of common stock value is calculated based on the rate of return on common stock in the form of dividends plus the rate of growth forecasts. according to brigham and houston (2006:477), the cost of common stock value is formulated as follows: ks= dividend (d1) stock price (p0) + estimated g-value the growth rate can be based on historical growth rates. however, it will be difficult if economic conditions are in abnormal circumstances. g-value can be calculated by other methods that are calculated by the following formula: g = retention rate  roe 8. payments rate)  roe roe = (profit margin)  (asset turnover)  (equity multiplier) = net income sales x sales total assets x total assets common stock it is makes this method different is calculation on the issuance of new common stocks whereas the costs of common stock emission are also taken into account so that the formulas cost of new stock to be as follows: ks= (d1) p0(1-f) + estimated g-value where f is the cost of emissions (in percentage). similarlyin the capm method when calculating, the underlying disadvantages of this method is the sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 12 difficulty of determining the value of the expected growth (g) appropriately. g. capital structure according to weston and copeland, capital structure or capitalization is permanent financing consists of long-term debt, preferred stock and stockholders’ equity. so the capital structure of a company is only part of the financial structure. this is supported by weston and brigham that cited by sirait (1994:150): “the targeted capital structure is a mix or blend of debt, preferred stock and common stock desired by the companies in their capital structure”. “each of these companies has an optimal capital structure, defined as a combination of debt, preferred stock, and common stock, would minimize the weighted average cost of capital (wacc). [6] from some meanings above it can be taken a conclusion of its meanings, capital structure includes long-term debt and equity capital. the importance of capital structure is mainly due to the different characteristics between each type or source of these capitals, which in general these differences have an influence on two important aspects in the life of company to the company’sability to generate benefit of the company, and to the company’s ability to pay for long-term liabilities. from the above definition it can be said that the cost of capital of a company can be influenced by capital structure, therefore the management of capital structure is an important part of the company’s financial management. h. weighted average of capital cost (wacc) the definition of wacc is the “minimum return rate weighted by the proportion of each financing instrument in the capital structure of companies that must generated by the company to meet the expectations of creditors and investors or shareholders”.[30] the data that used in the calculation of wacc is: “tax rate (t) 30%; cost of debt (calculated by using the interest rate of long-term and short term loans charged on each company); cost of equity, which is calculated based on the capm method (capital asset pricing model) by using the risk-free interest rate of the average interest rate of bank indonesia certificates 3 months of 2001. beta, as an indicator of the volatility of the company’s risk relative to the market obtained from bloomberg. the beta data is then normalized using method that used by gerald i. white at all, in his book financial statements. meanwhile, premium market risks as an additional risk factor of the company, because financing by the issuance of shares then it agreed at 6%”. wacc consists of component cost of debt, cost of preferred stock and common stock or the cost of the overall cost of capital or after determining the cost of equity, cost of debt, and the cost of preferred stock, the weighted average of cost can be calculated. [6] calculate wacc with the following formula: wacc = wdkd(l-t) + wpkp + wcks where : kd (1-t) : cost of debt capital after tax kp : cost of preferred stock ks : cost of common equity wd, wp, wc : weight of each after-tax cost of debt, preferred stock and common equity. i. invested capital invested capital "is the reorganization result of the balance sheet to see the amount of capital invested in the company by creditors and shareholders, as well as how much capital invested in operational and non-operational activities" [30]. meanwhile, invested capital is "the sum of all companies loan outofnon-interest short-term loans ".[18] the meaning of invested capital is as follows: [30] "invested capital can be calculated from the amount of short term bank loans, current maturity of long-term debt (part of bank loan or lease or long-term bonds with a maturity of one year), long-term debt, deferred taxes liabilities, other long-term liabilities, minority interest on net assets of subsidiaries and equity ". j. valuation of eva eva size or condition can be positive neither negative. [18], states that: 1. positive eva means that a company earns more than the cost of capital, it can add to profits of eva, if to further increase the capital base and maintain the pace of the profits. 2. negative eva means that companies gain less than the cost of capital, this means the company failed to increase the profits of capital base and in making new investments, which also further acquire the smaller capital. this is made clear by[18], as follows: 1. eva> 0 means add value to the business (company) 2. eva = 0 means economically breakeven 3. eva <0 means no provide value added to the company, because the available profit could not meet the expectations of investors iv. research methods this is presenting the financial statements of pt. aneka tambang tbk for three consecutive years, which are 2010, 2011 and 2012. these financial statements will be the source of the data in the calculation of market value added (mva) and economic value added (eva). with the data from the financial statements, the researchers presented the results of the calculation of market value added (mva) and economic value added (eva) for three consecutive years from 2010 to 2012. by presenting the results of the calculation of markets value added (mva) and economic value added (eva) in accordance with the existing theory, the investor or prospective investor is expected to know the condition of the company's fundamentals and deciding exactly whether to buy, maintain and sell their ownership in the company at the next time. a. the units of analysis. the unit of analysis of this study is the financial statement of pt. aneka tambang tbk for year of 2010, 2011, and 2012. sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 13 b. the logical relationship of data and research propositions. the logical relationship of data and research propositions occurred when relevant data were collected to examine the propositions. table 1 explains the logical relationship of data and propositions. c. criteria to translate research findings. in this study, the end goal is the result of the calculation of market value added (mva) and economic value added (eva) as well as the feasibility of the company into a safe and profitable investment for investors and potential investors. for that the criteria that used are as follows: 1. analyze financial statements of pt aneka tambang tbk with the theory of market value added (mva). 2. analyze financial statements of pt aneka tambang tbk with the theory of economic value added (eva). 3. the results of mva and eva calculation in accordance with the existing theory may be used as a guide for investors and prospective investors to determine the condition of the company's fundamentals and take appropriate decisions whether to buy, maintain and sell their ownership in the company in the future. a. data and discussion knowing that pt. aneka tambang in the presentation of financial statements does not use generally accepted accounting principles, the researchers tried using analytical techniques as follows: 1. first steps collecting data on study subjects are including data relating to the preparation of financial statements of pt. aneka tambang tbk. in 2010, 2011 and 2012. 2. step two calculating market value added (mva) based on data from the financial statements of pt. aneka tambang tbk. 3. third step calculating economic value added (eva) with steps as follows: a. calculating nopat b. calculating cost of capital where wacc consists of the cost of the use of equity capital, and cost of debt. cost of equity capital is calculated based on the capm method. debt costs are calculated after subtracted tax of 30%. c. calculating economic value added (eva). 4. step four analyzing and comparing the value of mva and eva for three consecutive years and to determine whether pt. aneka tambang tbk is feasible to be invested based on the mva and eva in technical analysis, the most important is exposure the evidence supports the findings. because such evidence is the result of a case study that can be accounted for and convince to the reader. after comparing and analyzing to the concept and the reality, it will be concluded and suggestions that will be presented at the end of the study. b. market value added analysis of market value added (mva) is calculated by comparing the market value of common stock with nominal value. based on the results of analysis it showed that the market value added of pt. aneka tambang tbk in 2010 to 2012 is great. in 2010, the number of outstanding stock is 1,907,691,950 shares with the stock market price of rp3,575.00 so the overall stock market value reaches rp6,819,998,721,250.00 after subtracted the total nominal share value of rp953, 845,975,000 then mva in 2010 amounted rp5,866,152,746,250.00 or about 615% of their nominal value. in 2011, the number of outstanding stock is 1,907,691,950 shares with the stock market price of rp8,000.00 so the overall stock market value reaches rp15,261,535,600,000.00 after subtracted the total nominal share value of rp953,845,975,000 then mva in 2011 was rp. 14,307,689,625,000.00 or about 1500% of their nominal value. compared to the year of 2010, mva in 2011 rose by 243.90%. in 2012, the number of outstanding stock changed after the management of pt. aneka tambang tbk doing stock split so that the number of outstanding stock is 9,538,459,750 shares into the stock market price of rp4,475.00 so the overall market value of the common stock is rp42,684,607,381,250.00 after subtracted the total nominal shares value of rp953,845,975,000 then mva in 2012 amounted rp42,684,607,381,250.00 or approximately 4375% of their nominal value. compared to the year of 2011, mva in 2012 increased by 291.67% and when compared to the year of 2010, an increase of 711.38%. c. economic value added to calculate eva of the company, it was starting with calculate nopat (net operating after tax), calculate the variable of wacc (weighted average cost of capital), which includes the cost of equity or the use of equity capital, cost of debt or the cost of debt by taking into account the structure of capital invested, the calculation result of eva components are as follows: 1. nopat from 2010 to 2012, nopat increased significantly. the results of nopat calculation of pt. aneka tambang tbk from 2010 until 2012 respectively are rp795,062,722,300.00; rp1,682,585,529,100.00; rp4,757,264,074,500.00. in 2001 nopat increased by 111.63% from 2010. while nopat in 2012 increased by 182.74% from 2011, an increase of 498.35%. 2. wacc before calculating wacc, it must be known previously after taxes cost of debt, cost of common equity capital and capital structure. the calculationsare as follows: a. after taxes cost of debt, kj (1 -t) in 2010, the company had interest expense rp34,484,298,000.00 that amount multiplied by a correction factor for income tax amounted to 70% sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 14 and then divided by long-term debt (including matured long-term debt within one year) amounting to rp2,106,450,000,000.00, yielding kd (1-t) amounted to 0.011460. in 2011, there was interest expense rp206,386,327,000.00 with the same correction factor and divided by long-term debt (including matured long-term debt for payment only remained 1 year) that is rp2,015,150,000,000.00, yielding kd (l-t) amounted to 0.071692. in 2012, the company had interest expense rp77,825,357,000.00 with the same correction factor and divided by long-term debt of rp1,334,960,000,000, yielding kd (1-t) amounted to 0.040809. b. cost of common equity capital (ks) in 2010 the company has ks 0.2073, or 20.73%, consisting of an average of sbi interest rate for 1 year is 8.74%, beta 1.5302 and total market return (rm) 0.1657, in 2011 the company has ks of 0.7528, or 75.28%, consisting of an average of sbi interest rate for 1 year is 12.04%, beta 1.8386 and total market return (rm) 0.4644. in 2012 the company has ks 0.7043, or 70.43%, consisting of an average of sbi interest rate for 1 year is 8.75%, beta 1.7367 and total market return (rm) 0.4427. c. capital structure the capital structure of pt. aneka tambang consisted of long-term debt and common equity (includes common stock and retained earnings). capital structure during 2010 to 2012 the company has composition of long-term debt amounted to 0.3944; 0.2377 and 0.0950 while common equity during 2010 to 2012, pt. aneka tambang tbk has composition of 0.6056; 0.7623 and 0.9050 respectively. with the three components data above, wacc can be known. wacc calculation results in 2010 to 2012 respectively are 0.1255; 0.5739 and 0.6374. 3. invested capital from 2010 to 2012, the capital invested in the company respectively amounted rp5,002,746,308,000,00;rp5,616,562,475,000,00 and rp9,683,501,272,000,00. eva calculation results of pt. aneka tambang, tbk obtained respectively from 2010 to 2012 are rp144,499,728,695.84; -rp1,636,461,901,369.99 and-rp1,452,611,060,531.21. from the results of market value added analysis, shows that pt. aneka tambang has a very good selling point. the reason is quite simply because the net income after tax and net operating profit after taxes (nopat) produces a positive number and each year also increased. based on this analysis, it is reasonable if investors expectation on pt. aneka tambang tbk so great. however, the results of economic value added (eva) analysis showed different results. eva value in 2011 and 2012 showed a negative number to a very large value more than 1 trillion rupiah. a positive number is only achieved in 2010, the year in which eva value reached rp144,499,728,695.84. based on the calculation of two analyzes above, pt. aneka tambang has no added value. although profitability is increasing, the amount of profit is not in accordance with the costs incurred by the investor to gain ownership of pt. aneka tambang tbk. the calculation results mva pt. aneka tambang is quasi numbers that do not show the achievements and the company's ability to meet the investors expectations, but it only shows the high expectations towards pt. aneka tambang tbk. v. conclusion based on the analysis performed on the data obtained using the existing theory of literatures, it could be concluded regarding financial performance of pt. aneka tambang tbk from 2010 to 2012. valuation reports of financial performance using eva analysis tends to yielding negative values whereas only in 2010 that reaching positive value. but in 2011 and 2012, the eva value was negative with significant amount that reached minus more 1 trillion rupiah. this is due to the high costs of capital but not counterbalanced by the ability to recover the obtained costs of capital. overall it can be said, the company's performance based on the eva analysis, was decreased. however, it can not be avoided because the high cost of capital due to higher cost of common equity. the high beta coefficient has made cost of common equity becomes high. high value of beta reflects the level of profit expected by the investors was so great. investors put too high expectations on the business world, especially on pt. aneka tambang tbk. this is shown by the rising of stock price of pt. aneka tambang tbk from 2010 until 2012. although the management has doing stock-split, stock price is still quite high. mva analysis reinforces the fact that where the value created so much higher than the nominal value. the high value of mva does not simply show the company had good prospects. the increase of mva value is so rapid, it raises investment risk is so high that dangerous for investors because they are trapped on the increase in stock value and recorded operating profit. eva analysis on the financial statements of pt. aneka tambang tbk has shown otherwise. the management of pt. aneka tambang unable to create business value or the income generated does not meet the expectations of investors. based on the analysis above, investors should not invest in pt. aneka tambang tbk because the risk is too high. for investors who already have shares in the company is better to sold them. acknowledgment this research is based on work supported by the university of 45 surabaya, indonesia the author thankfully acknowledges really scientific discussion with our colleagues from univesity of dr. soetomo surabaya indonesia. sinergi, volume 7 number 2 september 2017 achmaddaengs, gs 1) ,luqi dian ichromi 2) ,mochrizaldy rahmansyah 3) implementation of economic value added and market value added analysis as valuation tools of invest feasibility 15 references [1] ahmad marzuki, vol. 1. 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[39] yunus, hadori, dan hamanto. 1999. akuntansi keuangan lanjutan. first edition.twelfth printing. yogyakarta: bpfe publisher. 43mujtaba m. momin1 role and relevance of human resources management in contemporary profit-centric era sinergi, volume 8 number 1 march 2018 role and relevance of human resources management in contemporary profit-centric era mujtaba m. momin1 1) college of business administration, american university of middle east, kuwait) e-mail: submit: 12 february 2018 , revised: 27 february 2018, accepted: 02 march 2018 abstract. with ‘bottom-line’ and profits emerging as top priorities, the function of human resource management is being expected to deliver value like never before. contemporary businesses and corporations are desperately exploring ways to cut costs and maximize value gained from every function. this paper deals with the various challenges that the function of hrm is faced with in an increasingly profit-centric era. the major hrm challenges that distinctly stick out during financially challenging times are listed and briefly explained in this paper. in addition to that, the author has also suggested ways and means in which the function of hrm can add value and make a real business contribution. keywords : hrm value addition, profitability of hrm, relevance of hrm, impact of hrm on business performance etc.. i. introduction credit crunch, recession and slowdown have been the buzzwords to describe the overall economy for the entire last decade. during such challenging times the function of hrm is being expected to deliver value and aid in easing the situation for businesses in general. “but it is possible that ye dislike a thing which is good for you” -a verse from the holy quran (qur’an 2:216) when the ship (organization) is in turbulence the function of hrm can put its categorical best in ensuring that a single sailor guides the ship & the rudder is set accordingly so that it can sail or bail the boat out successfully. over the past few decades, the role and perception of human resources management has undergone a sea change. from what was considered as a support function, hr has today matured and emerged as a strategic business partner. from what was considered as a cost or expense, hr has emerged as a contributor to an organization’s profitability. the advent of the ongoing economic meltdown has presented the function of hrm with new challenges and responsibilities. during this period of economic meltdown, hrm is presented with a challenging opportunity to play a pivotal role to make the industry sustain and the entire economy flourish. hr has prospered in the last ten or more years as the ‘war for talent’ has become more intense and theories of high performance through employee engagement become popular. the hr function has had to emphasise strategies on attraction, retention and motivation for example, employer branding, family-friendly policies, performance pay and flexible benefits, and a revival in succession planning and leadership development under a new talent management heading. people have increasingly been at centre stage, and the hr function has been trying to pull off the difficult trick of attempting to position itself as the specialist expert in, and ‘business partner’ for, encouraging their contribution, while simultaneously engaged on its own internal re-structuring and efficiency drive. the question more fundamentally in these tough times, is will hr be able to use the position it developed for itself in the last decade to argue the case about protecting skills, retaining, nurturing and rewarding talent, and keeping those policies (and 44 mujtaba m. momin1 role and relevance of human resources management in contemporary profit-centric era sinergi, volume 8 number 1 march 2018 their costs) in place that motivated and engaged their people? hr needs to be very powerful in such situations because they not only have to maintain the people motivation level but has to increase it using non-monetary tools. hr and hr professionals in no way can change the direction of the wind but for bailing out the organization can set sails in the same direction. ii. theoretical framework the various new challenges that hrm is presented with in the wake of the existing economic volatility: 1. various cost-reduction strategies the present economic meltdown makes it imperative for organizations to review their spending patterns; the function of hr today is expected to review the organization’s spending habits and come up with various cost-reduction strategies. today the function of hrm needs to play the good corporate citizen and needs to revisit its own budget before anyone else does. the function of hrm needs to identify areas of saving – for instance, suggest using internal facilitators such as senior managers to deliver training courses etc. the function of hrm needs to measure roi on each and every hr intervention using established models such as kirkpatrick’s model (1959). it needs to reject every intervention which does not reach level 4 of the kirkpatrick’s model – “impacting the performance of the organization”. 2. increased need for employee efficiency getting the most out of the least is the need of the hour. the economic meltdown calls for an increase in employee efficiency. when employees become more efficient, there is more room for profitability and productivity. during the recession, the level of efficiency, productivity, and depth of management awareness are raised, and these elements also become more responsive to the various methods to reduce overhead and increase productivity. it is noted that during a recession, a number of institutions increase their profits and many companies benefit from the opportunities available in this period of recession. british airways, for example, were suffering from a budget deficit in the past two years, but as a result of substantial reductions in costs and improving efficiency, it has become able to achieve respectable profits. 3. importance of keeping the employees motivated through challenging times employee motivation is a very crucial responsibility of the hr function. the present economic slowdown has adversely impacted the morale of employees across the organizations and throughout all the ranks. the threat of downsizing, pink slips, forced leaves etc. has gravely demotivated the employees all over. a demoralized workforce is certainly not at its productive best. low morale directly affects the quality of output as well. “recognition helps people to be resilient. businesses right now...they’re trying to survive. and to survive you’ve got to have some psychological resilience. you’ve got to have employees who are positive despite the negative situations around them....i would argue that recognition is even more important in times like this.” – jim harter, gallup, october 2008 the key challenge for the function of hr here is to proceed with cost cutting measures while keeping the employees motivated and positive. 4. use of innovative and creative ways to maintain and improve profitability the ongoing economic situation is indeed the best time for creativity and innovation. its through creativity and innovation that organizations can discover newer ways to maintain and improve profitability through a time of negative financial outlook. “everyone knows that innovation is a core business necessity. companies that do not innovate, die. this is not news.” -henry chesbrough, open business models, harvard business school press, 2006 innovation is about selecting and implementing the right ideas into useful new products, processes, services or management systems for improving profitability and growth of an enterprise. an idea 45mujtaba m. momin1 role and relevance of human resources management in contemporary profit-centric era sinergi, volume 8 number 1 march 2018 or project is not an innovation unless it is applied in practice and put onto the market. innovation is different from creativity and invention. creativity is the ability to produce new and original ideas and products. innovation makes the ideas practicable and useable. innovative activities in an enterprise depend on the creative contribution of its employees. but innovation is done by people, and people work within a structure. innovation as a driver for growth, profitability and success of an organization will include people, leadership, creativity, process and organizational culture. innovation in an organization should not be approached in a piecemeal manner but in a systematic enterprise wide capability and should be initiated even at the lowest levels. the function of hr can play a very vital role in creating and nurturing an environment that values and encourages creativity and innovation. businesses that actively pursue innovation generate more growth and profits than those that do not. plus, they usually enjoy higher brand awareness and appeal. innovation is about introducing something new or doing something in a new way. the goal of innovation is to take an idea from concept to realization and improve business performance. an innovation can be a new product, a new process, or a new way of doing business. innovation can come from anywhere or anyone inside or outside an organization. the main ingredients of successful innovation are a fresh perspective, a diverse source of ideas, and an open environment. many employees are preoccupied with managing day-to-day operations and “putting out fires.” they don’t see opportunities because it’s not their job to innovate. but others have their heads up. they see more and know more. they develop more new products. they sell more to new customers and new markets. innovation makes their products and company stand out from the competition. innovation puts their organization on a path of sustained growth and profitability. employees can be a very rich source of innovation, especially those who have contact with customers. but if employees are not motivated or given incentives to innovate, they will simply maintain the status quo – with all its good and bad consequences. 5. retaining the best talent the present challenges require the function of hrm to play an active role in stopping the top talent from falling out of the company bandwagon. this deserves special attention and effort as the organization tends to become more vulnerable to top talent attrition in the turbulent times. investing more time, effort and resources proves quite helpful in this pursuit. according to the society for human resource management (shrm) 2000 retention practices survey, voluntary resignations are on the rise at most organizations. forty-one percent of the responding hr professionals reported that their number of voluntary resignations had increased during the past three years. here’s a representation of their important findings: the most important time to do something to retain key employees is when companies are busy cost cutting; because that is the most likely time the best talent will start looking around for better and more generous companies to work with. retention doesn’t have to be about money. it can be achieved by providing the best employees with challenging work, showing consequences to those employees who are underperforming and respond to employees’ work-family balance and other needs. 6. balancing redundancies to ensure best performance with optimum resources, etc. according to wikipedia, ‘redundancy’ may refer to ‘the state of being redundant or excessive.’ every organization functions with substantial redundancy so as to remain operational without being affected by any emergency etc. many times excess of redundancy proves to be a cost for the company. thus balancing redundancies to ensure best performance with optimum resources has also become a crucial hr responsibility. during recession, redundancies are an unfortunate reality for many organizations in order to maintain profitability and make it through the economic downturn. although redundancies are often unavoidable, they are still a very difficult area for employers and employees alike. with respect to redundancies the function of hrm is presented with the challenge of building 46 mujtaba m. momin1 role and relevance of human resources management in contemporary profit-centric era sinergi, volume 8 number 1 march 2018 and maintaining a functional, lean and fully capable organizational structure. iii. data presentation ways and means in which the function of hrm can add value and make a real business contribution 1. motivation as today’s business market continues to fluctuate, business owners and managers need the most competent employees to stay competitive. the only way to keep these employees is to motivate them for success. when companies listen to their employees, reward them, become a resource for them, and keep them informed, they take the first steps to true employee motivation. by taking the time to provide these little extras for them, they’ll reciprocate by remaining valuable members. motivation has no alternative in any organization. hr personnel need to take the initiative to motivate employees to face the challenges so that they will prepare to be more efficient and competitive during the crisis. 2. nurturing relationships recessions are the perfect time to forge new connections and strengthen long-standing relationships — both inside and outside of companies. this calls for practising uncommon appreciation, and socializing techniques such as meeting for breakfast instead of over the phone, supplementing emails with handwritten cards and notes etc. the function of hrm can play a pivotal role in creating a more humane work atmosphere. the need of the hour thus is to create an atmosphere where employees get together to brainstorm opportunities for thriving during difficult times and stay optimistic and flexible. one of the hardest things to do is to remain upbeat and positive when it feels like the bottom is falling out. this is exactly what the function of hrm should ease and ensure throughout the ranks and files of the organizations. 3. focus on productivity today the function of hrm is expected to increase the productivity of the workforce by providing advice and programs that can directly increase the effectiveness of employees and managers. to do this hrm needs to develop metrics to capture the productivity of employee workforce. these include the ratio of money spent on peoplerelated costs compared to the monetary value of the output or revenue produced by employees. today the function of hrm is also expected to identify barriers to increased productivity and develop a rapid plan to remove them. its only by focusing on productivity ruthlessly and absolutely objectively that the function of hrm will be able to make a real contribution to the successful survival of the companies. 4. talent and performance management this is the time to have a holistic process is in place where employee objectives are linked to business goals. securing existing talent and investing in them will ensure that a company becomes more competitive so that when the economy picks up they are much better placed to move forward. poor performers can reduce profits dramatically through low productivity and disengagement. talent management can help ensure employee engagement. talent needs to be nurtured and rewarded accordingly to ensure employees don’t jump ship and join a competitor. having clear hr processes in place such as succession planning and career paths are the basic building blocks together with the right training and development. there is the need to look at creative ways to reward staff, when increased financial compensation is not available. 5. on going training and development training is often the first hr process to go when things get tough because some companies see this as an unnecessary cost. indiscriminate cost cutting on training is a risk long-term because when key skills are needed in response to market forces in future, the company will struggle. the need of the hour is to consider low-cost options such as work shadowing and developing coaching and mentoring programs using existing talent to train developing talent. the need of the hour is also to apportion resources wisely and limit activities with limited business purposes. the function of hrm needs to look at the recessionary phase as the time for up-skilling and 47mujtaba m. momin1 role and relevance of human resources management in contemporary profit-centric era sinergi, volume 8 number 1 march 2018 talent development. this will pay rich dividends when the economy returns to its normalcy. 6. increase workforce flexibility flexibility is a major motivator and the introduction of flexible working; flex-time, job sharing, and telecommuting are surprisingly easy ways to improve the bottom line. companies can consider offering more paid time off such as increased holidays or friday afternoons off as an incentive to increase employee motivation in these difficult times. 7. linking hr metrics to the bottom line during economic downturns, senior executives require all managers to focus on cutting costs and increasing revenue. to better comply, the hr function must learn how to use statistical tools and techniques to explain just about everything. the increased use of various cost-cutting models and contemporary hr metrics will certainly give the function of hrm a distinct and objective image makeover. “what cannot be measured, can neither be improved” is a well-known management principle. the function of hrm must aim at measuring time, resources, effectiveness, efficiency etc. in monetary terms. 8. keep communicating the turbulence of the contemporary times demands honesty and transparency. the hr department must be honest with employees in letting them know and understand the true financial picture. often employees are willing to make cuts and changes when they understand the facts. there are no winners if the business goes down. talking clearly and honestly with employees also helps to reduce the rumor mill. iv. conclusion so hr will have to get even closer to, and genuinely partner with, the business to effectively ride the ongoing recession. it will need to think and speak in organizational terms that reflect the exigencies of the situation. hr should continue to ruthlessly improve its own processes to make them more efficient and effective. bibliography [1]. atiyyah, h.s. (1996) ‘expatriate acculturation in arab gulf countries’, journal of management development, 15 (5), 37-47 [2]. chesbrough, h. (2006). open business models: how to thrive in the new innovation landscape. boston: harvard business school press. [3]. momin, m. m., ph.d. (2014). executive human resource management: concepts & perspectives. new delhi: research india publications. [4]. momin, m. m., ph.d. (2016). training & development: concepts & perspectives: a comprehensive textbook for students & hr professionals (i ed., vol. i,i). create space/ amazon. [5]. robinson, d., hooker, h., & mercer, m. (2008). human capital measurement: approaches, issues and case studies. brighton: institute for employment studies. [6]. wise, d. a. (2011). explorations in the economics of aging. chicago: university of chicago press [7]. gallup – the right culture: not about employee happiness ... (n.d.). retrieved january 1, 2018, from https://wwwbespacific.com/cr [8]. wingfield, b. (n.d.). ‘retaining your employees: using respect, recognition, and rewards for positive results [9]. jahangir, n., akbar, m., and haq, m. 2004. organizational citizenship behaviors: i ts nature and antecedents, brac university journal, vol i, no. 2, pp. 7585. sinergi, volume 1 0 number 1 maret 2020 52 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office ari setiyanto1), eko pamuji2) 1)fakultas ekonomi dan bisnis universitas dr. soetomo surabaya 2)fakultas ilmu komunikasi universitas dr. soetomo surabaya 1)abisgile@gmail.com, 2)eko.pamuji@unitomo.ac.id submit : 24th february 2020, revised : 03rd march 2020, accepted : 25th march 2020 abstract this study aims at determining and analyzing the influence of leadership style, teamwork, communication and compensation to motivate employees to work. the sampling technique uses purposive sampling. based on calculations using the slovin formula, samples were 142 respondents. data analysis techniques used multiple linear regression, test for f and test for t. based on the study results it is noted the leadership style, teamwork, communication, and compensation simultaneously affect work motivation as evidenced by the results of the f test which shows the value of significance is less than 0,05 which is equal to 0,000. leadership style, teamwork, communication, and compensation partially affect work motivation as evidenced by the results of a t-test shown the significance value of leadership style, teamwork, communication, and compensation smaller than 0,05, namely leadership style by 0,005, teamwork by 0,000, communication by 0,002, and compensation by 0,007. teamwork has a dominant effect on motivation for the work as evidenced by the results of the t test which shows the significance value of teamwork is smaller than the value of the other independent variables which is equal to 0,000. keywords: leadership style, teamwork, communication, compensation, work motivation i. introduction all institutionalities always expect their employees to have good performance because employees who are performing well will optimize of contributions to the institution. in order for employees to have good performance, companies must strive for employees to have high work motivation. employees must always be motivated in order to increase their enthusiasm at work. work motivation must be carried out by companies because one important factor that can encourage employee performance improvement is providing motivation (indrasari, at al., 2018b:46). a leader, according to arifin, et al. (2017: 126), is a person who has the authority to give a task and has the ability to persuade or influence other people (underlines) through a good relationship pattern to achieve the objectives which have been set. an effective leadership style is needed in an institution to direct its employees and control various existing problems with the right solution. the role of a leader in presenting good working conditions will lead achieving organizational objectives to the maximum. a leader is said to be successful if he can present working conditions that are conducive for his employees (indrasari, 2017: 59). employee motivation for the work can also be influenced by teamwork undertaken by employees. team working, according to robbins and judge (2014: 406), is a joint effort between individuals or groups to achieve common goals. in collaboration there must always be an agreement among the members to carry out the same goal so that the collaboration can proceed according to mutual desires without any disputes. with the team's collaboration, they will be able to produce thanks to concerted efforts, strong synergies. this can be seen that the performance achieved by a team is better than the performance one individual in an organization or an institution. mailto:abisgile@gmail.com sinergi, volume 1 0 number 1 maret 2020 53 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office this shows that if employees work together in carrying out their responsibilities, then the work will be completed quickly. even so, teamwork must also be effective to make a good contribution to the each employee’s performance and work results in an institution. communication can affect work motivation. that is in line with a research carried out by safitri, et al. (2019). employees will work well if there is good communication within the institution. all employees and leaders in an institution must communicate clearly, openly, and honestly. it cannot be denied the importance of communication in the workplace, given that in an institution there are many people from different social and professional backgrounds who work for the same purpose. effective communication in the workplace must be created for the overall success of the institution. good communication makes it easy for institution leaders to convey ideas, institution goals, and vision very clearly. good communication can also increase employees’ morale and also improve employees’ work efficiency so that employees’ performance increases. compensation can also affect work motivation. this is in line with work by jumiyati (2018). compensations by gaol (2014: 310) are things which employees receive in the form of money or not as remuneration for the efforts of employees (contributions of employees) given to the insitutions. when compensation is given correctly and fairly, employees will be motivated to achieving the goals of more organisations. therefore, if the workers earn the salary is inadequate then employee morale will decrease. providing sufficient compensation to employees can be a supportive motivation for employees to cooperate, work effectively, and be integrated to achieve institution goals. providing fair and appropriate compensation needs to be done so that employees are motivated to work diligently and enthusiastically to achieve optimal results. the purpose of this study is to assess and analyze the influence of leadership style, teamwork, communication, and compensation to the work motivation of harbour master main office employees in tanjung perak surabaya. ii. literature review a. leadership style a leader, according to arifin, et al. (2017: 126), is a person who has the authority to give tasks, and has the ability to persuade or influence other people (subordinates) by means of a good relationship pattern to achieve specified goals. rudro (2018: 138) states that the subordinate or members of the organization can fulfill organizational tasks to a large extent depends on the leadership style used by the leader. in addition, the style of a leader also has a significant relationship with the level of satisfaction of subordinates or members of an organization. style of leadership according to suwatno and priansa (2016: 155) is a various behavioral patterns favored by leaders in the process of directing and influencing followers. leaders who carry out their leadership effectively will be good role models. conversely, a leader whose existence is only as a figure and does not have any influence and ability of leadership will result in low success in organization because he does not have the capability and ability to produce the best performance.. a good leadership style depends on specified condition. according to indrasari, et. al. (2018c: 56), good leadership style will improve efficiency, job satisfaction, results, development and adapt easily to all situations that arise and are around us.meanwhile, according to sugiyono (2018: 117) indicators to measure management style in research instruments include: 1. a leader explains the tasks that must be done by employees 2. a leader gives instructions to employees in carrying out their work 3. a leader can create an atmosphere of friendship in working environment 4. a leader gives enthusiasm to employees in completing their work 5. a leader provides the opportunity for employees to discuss problems at work 6. a leader emphasizes cooperation with employees in completing tasks sinergi, volume 1 0 number 1 maret 2020 54 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office b. teamwork indrasari, et al. (2018b: 47) states that employees should interact more intensively with other employees and among employees and superiors, so as to create an atmosphere of togetherness. thus, it is easier to solve existing problems. for this reason, teamwork is needed within an institution. collaboration between teams will affect the performance it produces because by collaborating, the work result will be produced faster. it can then be said that fostering effective collaboration within an institution is a must. robbins and judge (2014: 406) revealed that working teams are groups whose individual efforts yield higher performance than the number of single inputs. that means a team's performance is better than an individual's performance in an organization or institution. there are various characters attached to a successful team. those characters, according to sopiah (2011: 43), are: 1. commit to a common goal an effective team has a meaningful, shared purpose which gives its members direction, momentum and commitment. successful team members put a lot of time and effort into discussing, forming and agreeing on an intention that both collectively and individually belongs to them. 2. establish specific goals successful teams convey their common intentions as realistic, measurable, and specific work goals. specific goals make it easier for them to communicate. 3. leadership and structure the aim is to define the final target of the team. in addition, high-performance teams also require leadership and structure to provide direction and focus. for example, defining and agreeing on a common approach ensures that the team is united in ways to achieve targets. 4. avoiding social sloth and responsibility individuals can conceal themselves in a group. they can engage in "social laziness" and glide alongside group efforts, since their individual contributions can not be recognized. high-performance teams are reducing this trend by making themselves accountable individually as well as at team level. 5. evaluate performance and reward systems that are correct traditional evaluation and reward systems that have individual orientation changed to reflect team performance. 6. building strong mutual trust high performance teams have a high degree of mutual trust among their members. that is, the members believe in each other's honesty, character and skill. c. communication communication is the process of delivering messages to other parties. in organizations, communication has a very important role, especially in forming an effective organization from efficient. according to indrasari, et. al. (2019: 959), communication within organizations is a vital tool in establishing collaboration between employees to help one another, to maintain one another and to influence their interactions, in turn, encourage employees to get their jobs done properly. employees will also be motivated to perform highly. newman and summer in arifin, et al. (2017: 156) define communication as the process of exchanging facts, ideas, opinions, or emotions through words, letters, symbols, or messages. in organizations, communication is a way for members of the organization to understand each other and understand each other. with good communication, an organization can run smoothly and successfully. for all organizations effective communication is very important. therefore, a leader and an organization need to understand and improve their communication abilities. arifin et al. (2017: 168) state that in practice, there are four lines of communication in an organization, namely: 1. downward communication communication that flows from people at higher hierarchical levels down to lower levels. official memos are the commonest forms, instructions, statements about institution policies, procedures, work guidelines, and institution announcements. 2. communication to the top effective upward channels of sinergi, volume 1 0 number 1 maret 2020 55 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office communication are important because they offer employees the opportunity to talk. communication tools that are often used upwards are boxes of ideas, group meetings, reports to the managers and processes for demanding or complaining. 3. horizontal communication horizontal communication takes place between people who are at the same level in the organizational hierarchy but carry out different activities. the existence of various work units of the organization stem from the necessity of the division of tasks. although there are differences in the division of tasks, it must have a mutually beneficial relationship. in order for this relationship to be realized horizontal, communication is needed as a vehicle to convey various things such as information, advice, and suggestions, so that the various work units move as a unified entity and have the same perception about the direction to be taken and a step in tune in dealing with various problems faced arise. 4. diagonal communication this communication takes place between two work units that are at different levels of the organizational hierarchy but carry out similar activities. d. compensation or reward the definition of compensation by gaol (2014: 310) is anything earned by workers, either in the form of money or not as a remuneration for the contributions of employees (construction of employees) that they provide to the organization. compensation management is a very important activity. according to indrasari et al. (2018a: 50), employees who are happy with salaries as shown by the adequacy of the wages, benefits, payroll system and work management are high, this results in the low desire of workers to leave the organization or institution where they work and the likelihood of finding employment in other organizations or institutions. the definition of compensation according to hasibuan (2017: 118) is any income received by employees in the form of money, direct or indirect goods, in return for services rendered to the institution. meanwhile, compensation according to sunyoto (2015: 26) is defined as something which employees receive as remuneration for their work. compensation for workers is very significant, as employers expect that the compensation they earn will meet their needs and improve their wellbeing. consequently, if workers view their salaries as insufficient, their motivation, job satisfaction and efficiency would decrease. the things that need to be considered in granting compensation according to gaol (2014: 317) are as follows: 1. must meet the minimum requirements 2. must bind 3. must provide enthusiasm and passion for work 4. must be fair 5. must not be static e. work motivation indrasari et al. (2018b: 43) state that motivation is one of the factors that can encourage employees to try to achieve institutiom’s goals. hasibuan (2017: 143) states that work motivation is to give a driving force that creates one's desire to work together and work effectively, and is integrated with every effort to achieve satisfaction. sastrohadiwiryo and syuhada (2019: 305) state that work motivation can provide energy that drives all potentials, creates high and noble desires, and increases togetherness. each party works according to the rules or measurements determined by mutual respect, mutual need, mutual understanding, and respect for the rights and obligations of each entire operational work process. citing the abraham maslow, sunyoto (2015: 11) state that someone in his place of work is motivated by a desire to satisfy a number of needs that exist in him. according to maslow, humans need hierarchy: 1. physiological needs needs are needs to be able to live, such as getting food, drinks, housing, sleeping, and so on. 2. the need for security the need for security includes safety to protect against the dangers of accidents at work, guarantees for the continuity of his work and guarantees for his old age when he is no longer working. 3. social needs sinergi, volume 1 0 number 1 maret 2020 56 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office social needs in an organization are related to the need for a compact working group, good supervision, common recreation etc. 4. the need for appreciation the need for appreciation requires an appreciation of one's accomplishments, acknowledgment of one's abilities and skills as well as one's effectiveness. 5. the need for self-actualization the need for self-actualisation is connected with the process of developing a person's true potential. iii. methodology a. definition of operational variables the operational definition of each variable can be explained as follows: 1. leadership style (x1) leadership style is one way that leaders use in influencing the behavior of subordinates to want to work together and work productively to achieve agency goals. indicators of leadership style are: a. explanation of tasks b. giving instructions c. friendship atmosphere d. encouragement e. job discussion f. cooperation 2. teamwork (x2) teamwork is a group of people working together to make things happen the same goal. indicators of teamwork are: a. commitment to achieving common goals b. establish specific goals c. structure d. responsible e. performance evaluation f. develop trust 3. communication (x3) communication is the delivery or exchange of the sender's information to the recipient, either verbally, in writing or using communication tools. indikators of communication are: a. communication down b. communication to the top c. horizontal communication d. diagonal communication 4. compensation (x4) compensation is all that the employee receives, whether in money form or not as compensation for the services the agency provides. measurement of compensation is: a. meet the minimum requirements b. can tie c. can motivate d. fair e. not static 5. motivation of work (y) work motivation is a way to encourage the spirit of one's work, so they want to work by optimally providing their abilities and expertise to achieve organizational goals. the work motivation indicators are: a. need sof physiological b. security needs c. need of social d. need of award e. need of self-actualization b. research population sugiyono (2018: 80) describes population as a field of generalization consisting of artifacts or subjects with certain attributes and characteristics that are named to be researched by researchers and then added conclusions. the population in this study was all harbor master headquarters employees in tanjung perak surabaya; 219 employees for the total. c. research sample asample is part of the population that is expected to represent the study population. positive sampling is a sampling method that has certain criteria (2018: 85). the sampling method used in this analysis is a purposive random sampling technique. according to riduwan (2010: 63), purposive random sampling technique is a sampling technique used by a researcher if the researcher has certain considerations in the consideration of the sample for specific purposes". the sampling criteria in this study are: 1. employees have worked for more than 2 years 2. employees domiciled in surabaya sinergi, volume 1 0 number 1 maret 2020 57 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office meanwhile, the number of samples measured in this analysis is based on slovin's sunyoto formula (2015: 112) viz: n = n n (d)2 + 1 note: n = number of samples used n = number of population d = accuracy level (5%) based on the formula above can be obtained the number of samples (n) as follows: n = n n (d)2 + 1 n = 219 219 (0,05)2 + 1 n = 219 = 141,52 0,5475 + 1 the number of samples in this study was rounded up to 142 respondents based on estimation of the number of samples. d. analysis technique 1. multiple linear regression analysis used to measure the presence or absence of influence between independent variables to variable dependent. multiple linear regression analysis is used in this study to measure the presence or lack of influence on work motivation (y) between leadership style (x1), teamwork (x2), communication (x3), and compensation (x4).the equation of multiple linear regression according to sugiyono (2018: 192) is: y = a + b1 x1 + b2 x2 + b3x3 + b4x4 2. multiple determination coefficient (r2) analysis of the multiple determining coefficient (r2) according to ghozali (2013: 97) it was used to test the degree to which the model's ability to explain the variance of the dependent variable, contact (x3), and compensation (x4) would influence variations in the rise and fall of the motivation to work (y). 3. test f f test is done to check the effect on the dependent variable simultaneously between the independent variables. criteria for decision making by f test according to ghozali (2013: 98) if the probability value is less than 0.05, the bound variable is influenced at the same time by the independent variable. in this study the f test was used to determine the simultaneous influence of leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) with the following criteria on work motivation (y): a. if the significance value of the f test is <0.05. this shows that simultaneously leadership (x1), teamwork (x2), communication (x3), and compensation (x4) influence work motivation (y) b. if the significance value of the test f> 0.05. this shows that simultaneously leadership (x1), teamwork (x2), communication (x3), and compensation (x4) have no effect on work motivation (y). 4. test t t test was done to test the effect of the dependent variable partially between the independent variables. criteria for decision making by f test according to ghozali (2013: 98) so if the likelihood value is less than 0.05, the bound variable is partly determined by the independent variable. leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) on work motivation (y) with the following criteria: a. if the significance value of the t test is <0.05. this shows that partially the leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) influence work motivation (y) b. if the significance value of the t test is> 0.05. this shows that partially the leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) have no effect on work motivation (y). iv. results and discussion a. multiple linier regression analysis sinergi, volume 1 0 number 1 maret 2020 58 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office the multiple linear regression equation obtained from the processing of data using spss 24 is: table 1 multiple linear regression coefficient coefficientsa model unstandardized coefficients standardized coefficients t sig. b std.error beta 1 (constant) ,131 ,256 ,510 ,611 x1 ,160 ,056 ,192 2,880 ,005 x2 ,545 ,061 ,567 8,881 ,000 x3 ,149 ,047 ,174 3,169 ,002 x4 ,131 ,048 ,141 2,734 ,007 dependent variable: y source: data processed, 2020 from the table above we get the multiple linear regression equation as follows: y = 0,131 + 0,160 x1 + 0,545 x2 + 0,149 x3+ 0,131x4 based on the linear regression equation, it can be explained that: 1. a constant value of 0.131 if the leadership style coefficient (x1), teamwork (x2), communication (x3), and compensation (x4) are zero, then the amount of work motivation (y) will be the same as a constant value of 0.131. 2. the leadership style regression coefficient (x1) has a positive value of 0.160 if the leadership style variable (x1) changes by one unit assuming the variable teamwork (x2), communication (x3), and compensation (x4) is constant, it will result in a change in work motivation (y) of 0.160 units. because the coefficient value of the leadership style variable (x1) is positive, an additional one unit of leadership style variable (x1) will result in an increase in work motivation (y) of 0.160 units and vice versa if the leadership style variable (x1) decreases by one unit resulting in a decrease in work motivation ( y) of 0.160 units. 3. the value of the teamwork regression coefficient (x2) has a positive value of 0.545 if teamwork variable (x2) changes by one unit assuming the leadership style variable (x1), communication (x3), and compensation (x4) the amount is fixed, it will result in a change in work motivation (y) of 0.545 unitssince the coefficient value of the teamwork variable (x2) is positive, an additional unit of the teamwork variable (x2) would result in increased work motivation (y) by 0.545 units, and vice versa if the teamwork variable (x2) is decreased by one unit resulting in a decrease of 0.545 units in the work motivation (y). 4. the coefficient of contact regression (x3) is positive, that is to say 0.149 if the contact variable (x3) increases by one unit assuming the leadership style variable (x1), the cooperation variable (x2), and the compensation variable (x4) is unchanged, 0.149 units would change the job motivation (y). because the coefficient value of the communication variable (x3) is positive, an additional one unit of the communication variable (x3) will result in an increase in work motivation (y) of 0.149 units and vice versa if the communication variable (x3) decreases by one unit resulting in a decrease in work motivation (y) of 0.149 units. 5. the coefficient of compensation regression (x4) is positive, that is to say 0.131 if the compensation variable (x4) changes by one unit assuming the variable leadership style (x1), teamwork (x2), and communication (x3) is constant, it will result in a change of 0.131 unit work motivation (y). because the coefficient value of the compensation variable (x4) is positive, an additional one unit of compensation variable (x4) will result in an increase in work motivation (y) of 0.131 units and vice versa if the compensation variable (x4) decreases by one unit resulting in a decrease in work motivation (y) of 0.131 units. b. multiple determination coefficient (r2) the coefficient of multiple determination values (r2) obtained from data processing with the spss24 program is: table 2 multiple determination coefficient model summaryb model r r square adjusted r square std. error of the estimate durbinwatson 1 ,806a ,649 ,639 ,32848 1,686 a. predictors: (constant), x4, x1, x3, x2 b. dependent variable: y source: data processed, 2020 sinergi, volume 1 0 number 1 maret 2020 59 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office from the table showing the results above it can be seen that the value of the coefficient of multiple determination (r square) of 0.649 or 64.9%. it means that the rise and fall in job motivation (y) of 64.9 percent is affected by the ups and downs of leadership style (x1), teamwork (x2), communication (x3), and compensation (x4), while the remaining 35.1 percent (100 percent-64 percent) are influenced by other variables outside the analysis. based on the above table, it is also known that the magnitude of the relationship among leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) is simultaneous to work motivation (y) as seen from the value of the correlation coefficient (r) that is equal to 0.806 (80.6%) this shows a high influence because it is close to 1. c. f test f test was conducted to determine the simultaneous influence of leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) on work motivation (y). the criteria for testing with the f test in this study are as follows: if the value of f count> f table. this shows that simultaneously leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) influence work motivation (y) if the value of f arithmetic <f table. this shows that simultaneous leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) do not affect work motivation (y). the f value calculated from data processing using the spss 24 program is as follows: table 3 f test anovaa model sum of squares df mean square f sig. 1 regression 27,357 4 6,839 63,387 ,000b residual 14,782 137 ,108 total 42,139 141 a. dependent variable: y b. predictors: (constant), x4, x1, x3, x2 source: data processed, 2020 from the above table the calculated f value is known to be 63.387. while the table f value obtained from the table is statistical: f tabel = f(k, n – k-1) note:  = significance rate of 5% (0.05) n = number of samples k = independent variable f table = f0,05(4:142-4-1) = f0,05(4:137) = 2,438 the calculated f value is greater than the f table that is 63.387> 2.438 and the significance value is smaller than 0.05 which is 0.000. this shows that simultaneously, leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) influence work motivation (y). d. t test t test was conducted to test the partial influence between leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) on work motivation (y). the criteria for testing with the t test in this study are: if t arithmetic > t table. this shows that partially the leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) influence work motivation (y) if t arithmetic < t table. this shows that partially the leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) have no effect on work motivation (y). t table value obtained from the statistical table is: t table = t( n – k-1) note:  = significance rate of 5% (0.05) n = number of samples k = independent variable t table = t0,05(142-4-1) t table = t0,05(137) = 1,978 sinergi, volume 1 0 number 1 maret 2020 60 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office while the results of t arithmetic obtained from data processing using the spss 24 program are as follows: table 4 t test coefficientsa model unstandardize d coefficients standardize d coefficients t sig. b std. error beta 1 (constant ) ,131 ,256 ,510 ,61 1 x1 ,160 ,056 ,192 2,88 0 ,00 5 x2 ,545 ,061 ,567 8,88 1 ,00 0 x3 ,149 ,047 ,174 3,16 9 ,00 2 x4 ,131 ,048 ,141 2,73 4 ,00 7 a. dependent variable: y source: data processed, 2020 the table above illustrates that: 1. the leadership style (x1) influences work motivation because the significance value is smaller than 0,05, which is 0,005. 2. teamwork (x2) influences work motivation because the significance value is smaller than 0,05, which is 0,000. 3. communication (x3) influences work motivation because the significance value is smaller than 0,05, which is 0,002. 4. compesation (x4) affects work motivation because the significance value is smaller that 0,05, which is 0,007. e. simultaneous influence leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) simultaneously affect work motivation (y) as evidenced by the results of the f test which shows the calculated f value is greater than the f table that is 63.387> 2,438 and the significance value is smaller than 0.05 which is 0,000. this result supports the first hypothesis that "leadership style, teamwork, communication, and compensation simultaneously influence the work motivation of the employees of the master harbour main office in tanjung perak surabaya. each institution always expects its employees to have good performance because employees who are performing well will perform optimal contributions to the institution. in order for employees to have good performance, institutions must strive for employees to have high work motivation. employees’ work motivation can encourage employees’ morale so that they work hard and provide all their abilities and skills for the achievement of institution’s goals. in this study, employees’ work motivation can be influenced by the leadership style applied in the institution, teamwork carried out by the employee, good communication, and compensation given by the institution. f. partial influence leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) partially affect work motivation (y) as evidenced by the results of the t test which shows the value of t calculated leadership style variable (x1), collaboration team (x2), communication (x3), and compensation (x4) are greater than t table. this result proves the second hypothesis that "the style of leadership, teamwork, communication, and compensation partially influences the work motivation of the employees of the harbour master main office in tanjung perak surabaya. g. the partial influence of leadership style on work motivation leadership style (x1) partially influences work motivation (y) as evidenced by the results of the t test which shows the value of t count is greater than t table that is 2.880> 1.978 and the significance value is smaller than 0.05 which is 0.005. these results indicate that the leadership style adopted by the leader will be able to increase employee motivation at work, especially if the factors that make up the leadership style can be fulfilled, namely the explanation of the tasks that must be done by employees, giving instructions about the tasks that must be done by employees, a full working atmosphere friendship, encouragement to employees to complete their work, discuss work with employees, and cooperation between employees. an effective leadership style is needed in a company to direct its employees and control sinergi, volume 1 0 number 1 maret 2020 61 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office various existing problems with the right solution. the role of the leader style to present good working conditions will lead to the best achievement of organizational goals. the results of this study also support research conducted by indrasari, et al. (2018c) as well as research conducted by martin (2017) with the results of leadership style research influencing work motivation. h. the partial effect of teamwork on work motivation teamwork (x2) partially influences work motivation (y) as evidenced by the results of the t test which shows the value of t count is greater than t table that is 8.881> 1.978 and the significance value is smaller than 0.05 which is 0.000. these results indicate that the cooperation carried out by employees will be able to increase employee motivation in working, especially if the factors that form teamwork can be fulfilled namely employees have the same commitment to work, have the same goals at work, there is a clear work structure so that work be focused, every employee has responsibility for the work done, the leader conducts a performance evaluation for each division, and every employee has a sense of mutual trust. team working, according to robbins and judge (2014: 406), is a joint effort between individuals or groups to achieve common goals. in teamwork there must always be an agreement among the members to carry out the same goal so that the collaboration can proceed according to mutual desires without any disputes. with the team's collaboration, they will be able to produce positive synergies through coordinated efforts. this has the understanding that the performance achieved by a team is better than the performance per individual in an organization or a company. if employees work together in carrying out their responsibilities, then the work will be completed quickly. i. the partial effect of communication on work motivation communication (x3) partially influences work motivation (y) as evidenced by the results of the t test which shows the value of t count is greater than t table is 3.169> 1.978 and the significance value is smaller than 0.05 which is 0.002. these results indicate that employees are motivated to work well if there is good communication within the institution. communication at work is very important because in an institution there are many people from different social and professional backgrounds who work for the same purpose. effective communication at work must be created for the overall success of the institution. good communication makes it easy for leaders to convey ideas, company goals and visions very clearly. good communication can also increase employees’ morale and also improve employees’ work efficiency so that employees’ performance also increases. the results of this study also support the research conducted by safitri et al. (2019) as well as research conducted by samade, et al. (2018) with the results that communication affects work motivation. j. the effect of partial compensation on work motivation compensation (x4) partially influences work motivation (y) as evidenced by the results of the t test which shows the t value is greater than t table that is 2.734> 1.978 and the significance value is smaller than 0.05, 0.007. these results indicate that employees are motivated to work well if the compensation received is as expected. if compensation is given correctly and fairly, employees will be motivated to achieve company goals. therefore, if employees perceive that compensation is inadequate then employee’s morale will decrease. providing adequate compensation to employees can motivate employees to cooperate, work effectively and be integrated to achieve company goals. providing fair and appropriate compensation needs to be done so that employees are motivated to work diligently and enthusiastically to achieve optimal results. the results of this study also support research conducted by jumiyati (2018) as well as research conducted by samade et al. (2018) with the results that compensation affects work motivation. k. dominant influence sinergi, volume 1 0 number 1 maret 2020 62 ari setiyanto, meithiana indrasari, jovi iristian, eddy yunus, susanto soekiman the influence of leadership style, team cooperation, communication, and compensation towards working motivation of the harbourmaster employees in tanjung perak head office teamwork (x2) has a dominant effect on work motivation (y) as evidenced by the results of the t test which shows the t value of the teamwork variable (x2) is greater than the t value of the other independent variables that is equal to 8.881. this result proves the third hypothesis that "teamwork has a dominant effect on the work motivation of the employees of the harbour master main office in tanjung perak surabaya”. this study shows that the work motivation of the employees of the harbour master main office in tanjung perak surabaya is strongly influenced by the collaboration. therefore, the leadership of the harbour master main office in tanjung perak surabaya should always implement cooperation in each division they lead so that employees are motivated to be even more enthusiastic in working. team collaboration will affect the performance it produces, because by collaborating, the work produced will be performed faster so fostering effective collaboration within the company is a must. v. conclusion leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) simultaneously affect work motivation (y) as evidenced by the results of the f test which shows the calculated f value is greater than the f table that is 63,387> 2,438 and the significance value is smaller than 0,05, which is 0,000. leadership style (x1), teamwork (x2), communication (x3), and compensation (x4) partially affect work motivation (y) as evidenced by the results of the t-test showing the measured t value are higher than the t-table and the sense value is lower than the t-table 0.05, which are: a. leadership style (x1) has t value greater than t table that is 2.880 > 1.978, and the significance value is smaller than 0,05 which is 0,005. b. teamwork (x2) has a calculated t value greater that t table, which is 8,881 > 1,978 dan the significance value is less than 0,05, which is 0,000. c. communication (x3) has a value of t arithmetic greater than t table that is 3,169 > 1,978 and the significance value is smaller than 0,05, which is 0,002. d. compensation (x4) has a calculated t value that is greater than t table that is 2,734 > 1,978 and the significance value is smaller than 0,05, which is 0,007. e. teamwork (x2) has a dominant effect on work motivation (y) as proved by the results of the t test which shows that the t test value is greater than the t value of the other independent variables, which is 8.881. suggestion the harbour master main office in tanjung perak surabaya needs to pay attention to the work motivation given to its employees so that employees are enthusiastic to work so that the institution's goals can be achieved by paying attention to the leadership styles that are applied, employees’ cooperation, communication within the institution, and compensation. the harbour master main office in tanjung perak surabaya should pay more attention to the teamwork of its staff, as the findings of the research team have a decisive impact on the morale of the employees. increasing the teamwork value can be done by paying attention to six indicators namely commitment to achieving common goals, establishing specific goals, structure, responsibilities, evaluating performance, and developing trust. further researchers should attach variables not examined in this report, such as variables of the field of job, the work environment, training and others in order to obtain better conclusions than this study. references arifin, r., amurullah, dan khalikussabir.2017. budaya dan perilaku organisasi. penerbit empat dua. malang. gaol, jummy l. 2014. human capitalmanajemen 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based on data sovereignty: strategy to overcome threats in digital era januar arief martharaharja1),romie oktovianus bura2) 1,2. faculty of defense technology, indonesia defense university, ipsc area, bogor and 16810, indonesia email: januar.martharaharja@idu.ac.id submit: 14th march 2021, revised: 08 th march 2021 , accepted: 29 th march 2021 abstract.threats to national defense and security always develop along with technological advancements. the threat does not only come from the real world which involves physical attacks, but can also come from cyberspace in the form of attacks on the security of state data. the purpose of this research is to develop a national defense model based on the concept of data sovereignty to overcome various threats that come from the digital world. the type of this research is descriptive qualitative with research data in the form of secondary data collected using literature studies and analyzed using qualitative techniques. the model of national defense based on data sovereignty illustrates the components needed to shape national defense. these components consist of policy, institutional, law enforcement, and various other components that contribute to building data sovereignty. keywords: data sovereignty, national defense and security, digital era, cyber threats i. introduction indonesia is a sovereign country and always strives to remain sovereign through the development of its defense and security. according to presidential regulation no. 5/2010 concerning the national medium-term development plan (rpjmn) 2010-2014, the defense and security sector covers all tasks and functions carried out by eight state institutions consisting of the tni, polri, national intelligence agency (bin), the state code institute (lemsaneg), the national narcotics agency (bnn), the national defense agency (lemhanas), the national defense council (dkn), and the maritime security coordination agency (bakorkamla). those eight institutions work together in building defense and security with the aim of upholding the country's sovereignty, maintaining the integrity of the unitary republic of indonesia, safeguarding the safety of all nations from military and non-military threats, increasing the sense of security and security of activities, staying orderly and upholding the law in the community, and ensuring security and comfort conditions as a guarantee of the conducive investment climate (jazuli, 2016). along with the development of technology, the need for the development of efforts to maintain defense and security also continues to increase due to the emergence of new model threats that utilize advanced technology, or what is known as cyber threats. therefore, the government through the republic of indonesia presidential regulation no. 53/2017 concerning the state siber and code agency forms a non-ministerial institution called the state siber and code agency (bssn). this institution is a development of the state code institute (lemsaneg) with a special task to implement cyber security effectively and efficiently by utilizing, developing, and consolidating all elements related to cyber security. the formation of bssn with its specific task represents the government's seriousness in facing threats from the digital realm towards state sovereignty. this government decision is based on various consideration by referring to evidence regarding the impact and massive damage from cyber attacks, such as findings from mcafee, a well known computer antivirus company, which states that the global loss from cyber attacks in 2017 has reached around idr 8.160 trillion or us $ 600 billion (franedya, 2018). this number is expected to continue to increase rapidly given the increasing number of internet users. every internet user can be a prospective party who launches a cyber attack or vice versa, becomes a victim of the attack. the potential increase in the number of cyber attacks and the resulting damage can be seen in mcafee's findings which show that up to the first quarter of 2019 there were almost one billion new malicious software (malware) used in cyber attacks worldwide (mcafee.com, 2019). malware is a computer program that was developed with the aim of entering a computer sinergi, volume 11 number 1 maret 2021 8 januar arief martharaharja 1),romie oktovianus bura2) national defense model based on data sovereignty: strategy to overcome threats in digital era system clandestinely and damaging it. through the existence of the internet, malware has unlimited target range, as long as there is interaction between computer systems that are connected to the internet and exposed to malware. this destructive program can enter the computer system via email, inflitrates through a program or application downloaded from the internet, or through files that have been exposed to malware. the impact and damage caused by the presence of malware in a computer system is diverse, ranging from the loss of the authority of the computer owner to use his computer, the damage to programs installed in the computer, the damage to the whole computer system, to the theft of important data contained in the computer infected with malware(tedyyana & supria, 2018). besides in the form of malware, there are several other types of cyber attacks, namely hacking, cracking, cyber sabotage, and spyware. hacking is a cyber attack that is launched by entering the victim's computer system to take the authority of its operations and then use it in accordance with the wishes of those who carry out the hacking (hacker). cracking is done by peeking confidential data from credit card holders, then using these data to meet the interests of the perpetrators of cracking. cyber sabotage is done by making interference, destruction of data and computer network systems that are connected to the internet. spyware is a cyber attack carried out by secretly recording various activities of online users, and then selling the recorded data to interested parties for advertising purposes or to spread viruses (rahmawati, 2017). according to mcafee's research results, cyber attacks were carried out with specific targets consisting of nine target categories, namely health organizations, the public sector, educational institutions, individuals, financial institutions, entertainment businesses, media, retail, and the technology industry. the public sector is the main target of cyber attacks among other targets, followed by individual targets as the second target, then health organizations, financial institutions, educational institutions, media, entertainment businesses, retail, and finally the technology industry (mcafee.com, 2019). figure 1. target of cyber attack in 2018-2019 source: mcafee.com (2019) the source of the cyber attacks mostly came from the united states by 75%, then china and germany each by 4%, then brazil and italy each by 3%, and the rest from other countries by 11%(mcafee.com, 2019). figure 2. source of cyber attack source: mcafee.com (2019) as for the scope of indonesia, bssn managed to find that during 2018, the number of cyber attacks that attacked indonesia was 12.895.554 attacks, with a total number of malware attacks of 513.863 attacks. the countries that were the biggest sources of cyber attacks on indonesia were russia with a total of 2.597.256 attacks; then china 1.871.363 attacks; united states 1.428.440 attacks; singapore as many as 1.030.769 attacks; netherlands 964.482 attacks; france as many as 775.257 attacks; from within the country (indonesia) as many as 713.878 attacks; india 674.689 attacks; canada 493.897; and from germany as many as 211.310 attacks (bssn, 2018). figure 3. country of origin of the cyber attack on indonesia in 2018 source: annual report of bssn (2018) the data above shows that cyber attacks will continue to be one of the biggest threats that will be faced by indonesia in the future. even the potential loss of the country in 2018 due to cyber attacks is 0 200 400 health care individual media 75% 4% 4% 3% 3% 11% united states china rusia united states netherland indonesia canada 2.597.256 1.871.363 1.428.440 1.030.769 964.482 775.257 713.878 674.689 493.897 211.310 sinergi, volume 11 number 1 maret 2021 januar arief martharaharja1),romie oktovianus bura2) 9 national defense model based on data sovereignty: strategy to overcome threats in digital era estimated to reach us $ 34.2 billion or around idr478.8 trillion (gewati, 2019). therefore, extra hard and sustainable efforts are needed to increase national defense, especially in the digital sphere to defend indonesia's sovereignty from threats and cyber attacks. according to minister of defense regulation no. 82/2014 concerning cyber defense guidelines, there are three types of cyber threats, namely hardware threats, software threats, and data/information threats. hardware threats are threats that are caused by the installation of certain equipment to carry out certain activities in a system, so that the equipment is a disruption to other network and hardware systems, for example jamming and network intrusion. software threats are threats caused by the entry of certain software to carry out activities such as information theft, information damage, information manipulation and so on, into a system. data or information threats are threats that result from the dissemination of certain data or information aimed at specific interests. the biggest cyber threat among those three types of threats is the data threat because data is the most valuable asset in the world today. the party who is able to master the data will be the main determinant of further world developments. conversely, those who are unable to maintain and manage their data will be eliminated from competition in all fields and will even have difficulty to survive (hummel, braun, augsberg, & dabrock, 2018). considering that indonesia as a developing country is still lagging behind in the development of information technology, cyber threats in the category of data or information threats are becoming increasingly urgent to anticipate (rizal & yani, 2016). in this regard, the instruction given by indonesian president joko widodo is to realize data sovereignty, namely by protecting confidential data from all threats of cyber attacks (prasetia, 2019). data sovereignty is one of the main foundations of national defense, especially in dealing with various cyber threats and to create cyberspace sovereignty. this is important to be realized in order to get two important benefits of cyberspace sovereignty, namely the benefits in the form of state welfare and the benefits of national security (cahyadi, 2016). based on the overall explanation above, this research was carried out with the aim to develop a national defense model based on data sovereignty that can be used to overcome cyber threats in the digital age. these objectives are further specified into a number of specific objectives, including determining the components of national defense in the digital age, which consist of policy, institutional, law enforcement, and various other components that contribute to building data sovereignty. ii. literature review this research is conducted with reference to previous research that has relevance to the topic of data sovereignty in relation to national defense. the first prior research was conducted by rahmawati (2017) entitled “risk management analysis of cyber crime threats in increasing cyber defense”. the research aims to identify risk management to be able to find out how big the probabilities and consequences arising from cyber crime. the identified risks are used as the basis for formulating a national defense strategy in facing the threat of cyber crime. the type of the research is descriptive qualitative using secondary data obtained from literature studies. data analysis was performed using qualitative techniques. the results of the study stated that the government through the ministry of defense institution needs to prepare themselves in facing cyber threats. the ministry of defense needs to prepare reliable human resources in mastering technology, reliable infrastructure systems, and supported by legislation or policies in carrying out cyber warfare operations. in addition to a strong national defense, legal support is also needed that affect each other and are interconnected in dealing with the threat of cyber crime. the need for proper regulation and cooperation with all parties, both government and private sector, can become the main key in facing the increasingly complex challenges of the cyber world. the second previous research by arianto & anggraini (2019) entitled “building indonesian national cyber defense and security in order to deal with global cyber threats through the indonesia security incident response team on internet infrastructure(id-sirtii)”. the aim of the research is to explore the importance of id-sirtii in preventing global cyber threats. the results of the study found that the threat of cyberspace in indonesia is very complex, with variations of actors, motives, and targets. this complexity can be explained through the following four aspects, namely: 1) departing from the study of geometripolitika, cyber functionalism is in two sinergi, volume 11 number 1 maret 2021 10 januar arief martharaharja 1),romie oktovianus bura2) national defense model based on data sovereignty: strategy to overcome threats in digital era domains, namely "cyber functionalism for high political purposes (military geometric)" in the formulation and activation of cyber power to face the global cyber war (psg), international geometry war (pga), and the complexity of the formation of the cyber state or the cyber government; and "cyber functionalism for normal level political purposes (civil geometric)" in the form of protection of civil activity in cyberspace; 2) in order to prevent cyber crime, the implementation of the id-sirtii policy is integrated with the strategic role of national cyber institutions; 3) in order to face the global cyber threat, the implementation of the id-sirtii policy needs to be integrated with regional and global cyber institutions; and 4) departing from "cyber functionalism" and to create a structuralism of indonesia's national cyber defense and security, it is time for indonesia to form a cyber force as a complement to the army, navy agencies and air force. other previous studies conducted by cahyadi (2016) entitled “cyber governance and the threat to national sovereignty”. the research objective is to understand the international debate on cyberspace governance and identify challenges in upholding sovereignty in cyberspace. issues discussed in the research are mainly related to sovereignty in cyberspace, including the concept of sovereignty in cyberspace, challenges in the formation of cyberspace governance based on sovereign equality, as well as indonesia's strategies in upholding sovereignty in cyberspace. the conclusion of the study states that china and the united states have applied the principles of sovereignty to guide global cyberspace governance, and therefore, indonesia must immediately follow and act in an integrated manner in order to protect and safeguard its sovereignty in cyberspace efficiently. the fifth previous research used as a reference for this research was conducted by saputera (2015) entitled "the influence of the united states cyber security strategy in deaing with the threat of cyber warfare”. the research objective is to study and describe the united states cyber security strategy in dealing with the threat of cyber warfare from 2009 to 2014. the type of the research is qualitative using secondary data collected from books, journals, articles, and from other valid sources on the internet. the results of the study stated that cyber warfare is a real threat, which can trigger physical warfare. the parties who carry out cyber attacks can enter the computer or network system without being able to be identified, to then dig up confidential data and use it for personal gain. efforts made by the united states to deal with the threat of cyber war is by establishing a multi-functional intelligence agency, which can be an instrument of defense and security of cyberspace, as well as an instrument to launch cyber attacks. iii. research methodology this research is a descriptive type with a qualitative approach. descriptive research is a research that aims to describe a certain phenomenon systematically and accurately, to obtain detailed research findings (silalahi, 2009). the qualitative approach is a research approach used to understand the focus of research based on data or information in the form of words or texts. analysis of the data is carried out to gain a deep understanding on the focus of the study, so that an accurate interpretation can be made (creswell, 2014). therefore, the subjectivity of researchers in qualitative research has a significant role in determining the direction of data interpretation in order to answer the problem under study (raco, 2013). this study uses secondary data as the main material being analyzed. secondary data obtained through the study of literature, namely by searching and gathering information relevant to the research topic (silalahi, 2009). the data is then analyzed using qualitative analysis techniques consisting of three steps of analysis, namely data reduction, data presentation, and data interpretation. the first step, namely data reduction, is the step that determines the acquisition of the relevant data. this step is carried out by summarizing and grouping data based on their level of relevance to the research topic. the data used are only the high relevance one, whereas less relevant data will be ruled out. the second step after data reduction is the presentation of data, which is carried out to facilitate the researcher in observing and analyzing data, and to obtain a proper understanding of the data. the third and final step in qualitative analysis is the interpretation of data, which is carried out to obtain conclusions that answer the research objectives (bungin, 2017). sinergi, volume 11 number 1 maret 2021 januar arief martharaharja1),romie oktovianus bura2) 11 national defense model based on data sovereignty: strategy to overcome threats in digital era iv. discussion development of national defense is essentially organized to be able to create a safe, peaceful and prosperous environment (husain, 2019). according to article 1 of the law of the republic of indonesia number 3/2002 concerning national defense, efforts to realize those objectives include all efforts to maintain the country's sovereignty, the territorial integrity of the unitary state of the republic of indonesia, and the safety of all nations from threats and disturbances to national integrity and country. these efforts are universal and are based on an awareness of the rights and obligations of citizens and a belief in one's own strength. the meaning of the universal efforts is to involve all citizens, territories and other national resources, and be prepared early by the government and carried out in a total, integrated, directed, and continuing manner to uphold the sovereignty of the country, territorial integrity, and safety of all nations from all threat. the development of national defense becomes an increasingly urgent matter to be accelerated when there are indications of threats that actually have a widespread negative impact, which in the context of this study comes from cyber attacks. this is consistent with the risk matrix stated by rahmawati (2017) which links the high risk of cyber crime and the need for defense development. according to the risk matrix, the higher the risk caused by cyber threats, the more the need for accelerated development or increased national defense. the risk of cyber threats can be assessed based on two components, namely the probability component and the consequence component. the probability component refers to the possibility of future cyber attacks on the security of state confidential data. as stated earlier, the increasing number of internet users in the world in general, and in indonesia in particular, is a core factor that makes the probability of cyber attacks on national defense even greater. this is also supported by data collected by bssn, that during 2018 there were around 12 million cyber attacks on indonesia. thus, it can be stated that future cyber attacks have a high probability of occurring in far greater numbers than now. figure 4. risk matrix source: rahmawati (2017) the consequences component refers to the negative impacts and damage caused by cyber attacks. as explained earlier, the global losses from cyber attacks in 2017 are estimated to have reached around eight thousand trillion rupiah (franedya, 2018), whereas specifically for indonesia, the cyber attack in 2018 had caused a loss of around four hundred trillion rupiah (gewati, 2019). in addition, it is known that cyber attacks have three threat categories, namely hardware threats, software threats, and data/information threats, with the main target in the nine vital areas of human life which include health organizations, the public sector, educational institutions, individuals, finance, entertainment business, media, retail, and technology industries (mcafee.com, 2019). this shows that the impact and damage from cyber attacks has a very broad scope, so the consequences of cyber attacks will be felt by all levels of society. based on this, both the probability and consequences of cyber threats can be said to be very large, which requires an acceleration in the development of national defense, especially those focused on dealing with various threats that come from the digital world. efforts to develop national defense forces in the context of overcoming cyber threats are carried out by the government by establishing its legal foundation, namely the regulation of the minister of defense (permenhan) of the republic of indonesia no. 82/2014 concerning cyber defense guidelines and presidential regulation no. 53/2017 of the states siber and code agency. furthermore, there are also government regulation of the republic of indonesia no. 82/2012 concerning the implementation of electronic transactions and systems (pste) and law of the republic of indonesia no. 19/2016 concerning amendments to law no. 11/2008 concerning information and electronic transactions (ite). there are also regulations that are in the formulation stage, namely high low low high cyber attack national defense development sinergi, volume 11 number 1 maret 2021 12 januar arief martharaharja 1),romie oktovianus bura2) national defense model based on data sovereignty: strategy to overcome threats in digital era the law on the protection of personal data (pdp) and the law on cyber security and endurance (kks) the entire law, both those that have been established and those that are still in the process of formulation, are a reference in implementing efforts to overcome cyber threats that can originate from various sources. according to permenhan no. 82/2014 concerning cyber defense guidelines, there are at least nine sources of cyber threats, namely internal and external sources; intelligence activities; disappointment; investigation; extremist organization; hacktivist; organized crime groups; competition, hostility & conflict; and technology. all of these sources have the potential to create cyber threats ranging from advanced persistent threats (apt), denial of service (dos) and distributed denial of service (ddos) attacks, defacement, phishing, malware, cyber intrusion, spam, and abuse of communication protocols. various forms of cyber threats can increase in intensity and scale, until finally realized into cyber attacks in the form of actions or activities aimed at entering, controlling, modifying, stealing, and destroying a system or information asset. broadly speaking, cyber attacks can be categorized into two, namely large-scale attacks in the form of cyber warfare and small-scale so-called cyber disruption. the impact resulting from cyber attacks can be in the form of functional disruption, remote control of the system, misuse of information or data, riots, fear, violence, chaos, conflict, and other adverse conditions that can lead to the destruction of the living order. in order to overcome those threats and cyber attacks, the government formulated a framework for implementing cyber defense as outlined in chapter iv permenhan no. 82/2014 with components consisting of policies or regulations, institutions or organizations, technology and infrastructure, and human resources (hr). the policy or regulatory component consists of the legal basis of cyber defense, namely the information and electronic transactions law (ite law) no. 11/2008, law no. 3 of 2002 concerning national defense, government regulation of the operator of electronic transactions and systems (pp pste) no. 82/2012, and minister of defense regulation no. 16 of 2010 concerning the organization and work procedure of the ministry of defense. in addition there are also other policies, such as strategic policies, operational policies, information security management and their application, and standards that are used as a reference for cyber defense policies. the institutional component refers to the institutions established by the government with the specific task of carrying out cyber defense. in accordance with presidential regulation of the republic of indonesia no. 53/2017 concerning the state cyber and code agency, the institution established by the government as the organizer of cyber defense is the bssn. the technology and infrastructure component refers to various technologies and infrastructure needed in the implementation of cyber defense. the components consist of infrastructure for building/location of data centers, nocs, laboratories and other supporting facilities; data center and recovery center (disaster recovery center/drc); data network; cyber defense administration application; special applications for cyber defense; and special technology (hardware and software supporting specific cyber defense activities). the hr component refers to hr who have the competencies needed to carry out cyber defense, as well as hr recruitment methods and hr competency improvement programs. the stages of the implementation of cyber defense consist of the stages of attack prevention, the stage of monitoring information security, the stage of attack analysis, the stage of defense, the stage of counterattack, and the stage of enhancing information security. as stated earlier, the main target of various cyber threats and attacks is the national important and confidential data. this is based on the position of data as the main asset in the digital age, where mastery of data is critical to the success of development in all fields, giving the greatest contribution in efforts to master various types of resources, as well as the main determinants of competitiveness that outperform other parties (hummel et al., 2018). however, the matter of data and its sovereignty has not been made a top priority in the framework of the implementation of cyber defense as outlined in permenhan no. 82/2014. the sovereignty of the data stated implicitly in the academic paper on the draft law on cyber security and resilience (kks) in the review of cyber implementation in indonesia. in that part, the term cyber sovereignty is mentioned, which describes the desire of the government to exercise control over the internet within its own territory, including political, economic, cultural and sinergi, volume 11 number 1 maret 2021 januar arief martharaharja1),romie oktovianus bura2) 13 national defense model based on data sovereignty: strategy to overcome threats in digital era technological activities. the ultimate goal of internet governance is to keep state confidential data safe from various cyber threats and attacks. thus, the concept of data sovereignty basically also has similarities with cyber sovereignty, where the government will be positioned as a party that has full control over all data flows in the territory of the country of indonesia. however, this concept is actually still being debated because of indications of violations of citizens' privacy due to government control over all data, including personal data of citizens. according to hummel et al. (2018), data sovereignty is the final goal to be achieved from the management of communication and information technology. in this case, the data in an area is in the hands of the government of that region, so there are certain restrictions for the people in it. however, given the importance of data sovereignty in digital defense strategies to realize digital security and sovereignty, it is necessary to make efforts to make government authority and the limits given by the government for the use of data in its territory be accepted by the public, namely by regulating the principles and procedures for sharing data furthermore, data sovereignty can be applied by exploring data ownership, increasing data literacythrough education, encouraging transparency about data processing activities, and forming representative data agents that manage data flow according to individual preferences. based on the overall explanation above, the national defense model based on data sovereignty can be illustrated as follows: v. conclusions and recommendations the government already has a cyber defense framework as outlined in permenhan no. 82/2014 concerning guidelines for cyber defense, which sets out the components along with the stages of the implementation of cyber defense. the first component is the regulatory or policy component consisting of the legal basis of cyber defense, namely the information and electronic transactions law (uu ite) no. 11/2008, law no. 3 of 2002 concerning national defense, government regulation of the operator of electronic transactions and systems (pp pste) no. 82/2012, and minister of defense regulation no. 16 of 2010 concerning the organization and work procedure of the ministry of defense. the second component is the institutional component that has been established through the establishment of the bssn. the third component is the technology and infrastructure component which includes infrastructure for buildings/locations of data centers, nocs, laboratories and other supporting facilities; data center and recovery center (disaster recovery center / drc); data network; cyber defense administration application; special applications for cyber defense; and special technology. the fourth component is hr along with hr recruitment methods and hr competency improvement programs. cyber defense is carried out in six stages, namely the attack prevention stage, the information security monitoring stage, the attack analysis stage, the defense stage, the counter attack stage, and the information security enhancement stage. although data sovereignty has not been included in the framework of the implementation of defense, data sovereignty is essentially a basic foundation of national defense development to overcome threats and cyber attacks that have a high probability of occurring with massive consequences of damage. data sovereignty in the framework of cyber defense can be applied with reference to the principles of data sharing and centralization of data governance, with the application process including exploration of data ownership, increasing data literacy, encouraging transparency about data processing activities, and forming representative data agents that manage data flow accordingly with individual preferences. sinergi, volume 11 number 1 maret 2021 14 januar arief martharaharja 1),romie oktovianus bura2) national defense model based on data sovereignty: strategy to overcome threats in digital era the findings of this study can be considered by the government in the formulation of the concept of cyber defense by integrating data sovereignty as one of its basic components. this research can also be used as a reference for further researchers who want to re-examine the concept of data sovereignty in relation to national defense development in the digital age. vi. references arianto, a. r., & anggraini, g. 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berlin, germany, 2018. 34 adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance the effect of work motivation and work discipline on employee performance adi lukman hakim1), erna nur faizah2), firdausi nujulah3) 1,2) department of management, universitas muhammadiyah lamongan, lamongan, indonesia. 3) department of early childhood education, stai pancawahana, bangil, indonesia e-mail: 1adilukmanhakim123@gmail.com, 2faizahnurerna@gmail.com, 3firdausinujulah@gmail.com abstract. human resources management is one that is needed in the era of globalization. every organizational goal always expects resources that are able to work effectively and so that the company can be achieved. human resources is a central factor in an organization. the research objective is to determine the effect of work discipline and work motivation on employee performance at kopitiam cafe and restaurant partially and simultaneously. research method with associative method then using a quantitative descriptive approach. multiple linear regression is a data analysis technique. the results of this study are as follows: the more disciplined an employee is in working, the more employee performance increases. the effect of these variables is significant positive . the more an employee is motivated to be enthusiastic about work, the more employee performance increases. the effect of these variables is significant positive. the more disciplined an employee is in working and the more motivated an employee is to be enthusiastic at work when combined simultaneously, the more employee performance increases. the effect of these variables is significant positive. keywords: work motivation; work discipline; performance i. introduction motivation becomes important in improving employee performance. motivation can be defined as providing a driving force that creates one's work enthusiasm so that they want to work together, work effectively and be integrated with all their efforts to achieve satisfaction (hasibuan, 2016, p. 143). motivation is a driving force for someone to carry out an activity in order to get the best results. employees who have high work motivation will have high performance as well. motivation is a potential force that exists within a human being, which can be developed independently or developed by a number of external forces whose essence revolves around material and non-material. giving motivation is very important in every company. employees who have motivation high work will be able to encourage these employees to work more enthusiastically and can make a positive contribution to the work that has become their responsibility. without motivation, an employee cannot fulfill his work according to standards or exceed standards because what motivates him to work is not fulfilled. the creation of employee performance so that it runs effectively, it is not only driven by motivation but also by having high work discipline. work discipline can be defined as a tool used by managers to communicate with employees so that they are willing to change a behavior as well as an effort to increase one's awareness and willingness to obey all company regulations and applicable social norms (rivai, 2015). without discipline, all activities that will be carried out will bring unsatisfactory results and are not in line with expectations. the discipline factor plays a very important role in carrying out the daily tasks of employees. an employee who has a high level of discipline will continue to work well even without being supervised by superiors, will not steal work time to do other things that are not related to work, will obey the existing regulations in the work environment with high awareness without there is a sense of coercion, and in the end employees who have high work discipline will have good performance when compared to employees who are lazy because working time makes the best use of it to carry out work according to the targets that have been set. kopitiam cafe and resto is one of the hangout places in malang that serves a complete menu. kopitiam cafe and resto is quite crowded with people, especially young people who live in malang. with a total of 30 employees, management is expected to be able to provide maximum service to consumers so that consumers feel comfortable and are treated like kings. based on the preliminary survey, the researcher obtained information from several consumers who visited more than once and enjoyed food or drinks at the kopitiam cafe and resto by asking about the complaints that consumers felt about the services at the kopitiam cafe and resto. the majority of consumers complain that kopitiam cafe and resto employees do not serve customers in a friendly manner. employees sometimes do not take the initiative to come to the customer's table to offer menus but wait for the customer to call. employees are also often careless and not careful in serving visitor orders such as spilled drinks on coasters and also the length of serving food or drinks ordered by visitors. the above data related to complaints from consumers can be concluded that the poor performance of employees in kopitiam cafe and resto. according to surya as the operational manager of kopitiam cafe and resto stated that kopitiam cafe and resto always emphasizes on its employees to provide the best service to consumers so that consumers feel comfortable by always being friendly and careful in serving consumers. this also proves that employees lack discipline in obeying orders or rules set by the management of kopitiam cafe and resto. table 1. nominal amount of misstatement month error total (rp) food drink november 2019 1 3 rp. 45.000 december2019 2 6 rp. 63.000 january 2020 5 7 rp. 122.00 febuary 2020 2 rp. 35.000 march 2020 3 rp. 38.000 source: processed data (2020) nominal errors in presentation that occurred at kopitiam cafe and resto from november 2019 – march 2020. the data shows an increase in presentation errors in november 2019 – january 2020. this error in presentation can indicate poor employee performance but is getting better due to experiencing a decrease in february 2020 – march 2020. poor employee performance could be due to a lack of employee motivation to work at kopitiam café and resto. employees will be motivated if their needs are met. there are 3 main needs in motivating people, namely the need for existence, the need for affiliation and the need for progress (hasibuan, 2017, p. 220). the need for progress has not been met by kopitiam cafe and resto employees because the opportunity for employees to develop themselves is very small, therefore employees are less motivated to work at kopitiam cafe and resto. surya as the operational manager of kopitiam cafe and resto said that there is no career development at kopitiam cafe and resto and the salary given is below the standard salary of the city of malang even though the management provides rewards in the form of incentives to employees if the income of the café and resto exceeds the target. several studies that examined motivation and discipline on performance such as those conducted by tarigan and priyanto (2021), octaviani and pricillia (2020) resulted that motivation and work discipline had a significant effect on performance. in line with ekhsan (2019) statement which explains that an increase in employee performance is due to the encouragement of work motivation and company work discipline. so that the existence of these two factors can trigger an increase in employee performance to work more optimally so as to meet the desired company targets. sinergi: jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 35adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance the effect of work motivation and work discipline on employee performance adi lukman hakim1), erna nur faizah2), firdausi nujulah3) 1,2) department of management, universitas muhammadiyah lamongan, lamongan, indonesia. 3) department of early childhood education, stai pancawahana, bangil, indonesia e-mail: 1adilukmanhakim123@gmail.com, 2faizahnurerna@gmail.com, 3firdausinujulah@gmail.com abstract. human resources management is one that is needed in the era of globalization. every organizational goal always expects resources that are able to work effectively and so that the company can be achieved. human resources is a central factor in an organization. the research objective is to determine the effect of work discipline and work motivation on employee performance at kopitiam cafe and restaurant partially and simultaneously. research method with associative method then using a quantitative descriptive approach. multiple linear regression is a data analysis technique. the results of this study are as follows: the more disciplined an employee is in working, the more employee performance increases. the effect of these variables is significant positive . the more an employee is motivated to be enthusiastic about work, the more employee performance increases. the effect of these variables is significant positive. the more disciplined an employee is in working and the more motivated an employee is to be enthusiastic at work when combined simultaneously, the more employee performance increases. the effect of these variables is significant positive. keywords: work motivation; work discipline; performance i. introduction motivation becomes important in improving employee performance. motivation can be defined as providing a driving force that creates one's work enthusiasm so that they want to work together, work effectively and be integrated with all their efforts to achieve satisfaction (hasibuan, 2016, p. 143). motivation is a driving force for someone to carry out an activity in order to get the best results. employees who have high work motivation will have high performance as well. motivation is a potential force that exists within a human being, which can be developed independently or developed by a number of external forces whose essence revolves around material and non-material. giving motivation is very important in every company. employees who have motivation high work will be able to encourage these employees to work more enthusiastically and can make a positive contribution to the work that has become their responsibility. without motivation, an employee cannot fulfill his work according to standards or exceed standards because what motivates him to work is not fulfilled. the creation of employee performance so that it runs effectively, it is not only driven by motivation but also by having high work discipline. work discipline can be defined as a tool used by managers to communicate with employees so that they are willing to change a behavior as well as an effort to increase one's awareness and willingness to obey all company regulations and applicable social norms (rivai, 2015). without discipline, all activities that will be carried out will bring unsatisfactory results and are not in line with expectations. the discipline factor plays a very important role in carrying out the daily tasks of employees. an employee who has a high level of discipline will continue to work well even without being supervised by superiors, will not steal work time to do other things that are not related to work, will obey the existing regulations in the work environment with high awareness without there is a sense of coercion, and in the end employees who have high work discipline will have good performance when compared to employees who are lazy because working time makes the best use of it to carry out work according to the targets that have been set. kopitiam cafe and resto is one of the hangout places in malang that serves a complete menu. kopitiam cafe and resto is quite crowded with people, especially young people who live in malang. with a total of 30 employees, management is expected to be able to provide maximum service to consumers so that consumers feel comfortable and are treated like kings. based on the preliminary survey, the researcher obtained information from several consumers who visited more than once and enjoyed food or drinks at the kopitiam cafe and resto by asking about the complaints that consumers felt about the services at the kopitiam cafe and resto. the majority of consumers complain that kopitiam cafe and resto employees do not serve customers in a friendly manner. employees sometimes do not take the initiative to come to the customer's table to offer menus but wait for the customer to call. employees are also often careless and not careful in serving visitor orders such as spilled drinks on coasters and also the length of serving food or drinks ordered by visitors. the above data related to complaints from consumers can be concluded that the poor performance of employees in kopitiam cafe and resto. according to surya as the operational manager of kopitiam cafe and resto stated that kopitiam cafe and resto always emphasizes on its employees to provide the best service to consumers so that consumers feel comfortable by always being friendly and careful in serving consumers. this also proves that employees lack discipline in obeying orders or rules set by the management of kopitiam cafe and resto. table 1. nominal amount of misstatement month error total (rp) food drink november 2019 1 3 rp. 45.000 december2019 2 6 rp. 63.000 january 2020 5 7 rp. 122.00 febuary 2020 2 rp. 35.000 march 2020 3 rp. 38.000 source: processed data (2020) nominal errors in presentation that occurred at kopitiam cafe and resto from november 2019 – march 2020. the data shows an increase in presentation errors in november 2019 – january 2020. this error in presentation can indicate poor employee performance but is getting better due to experiencing a decrease in february 2020 – march 2020. poor employee performance could be due to a lack of employee motivation to work at kopitiam café and resto. employees will be motivated if their needs are met. there are 3 main needs in motivating people, namely the need for existence, the need for affiliation and the need for progress (hasibuan, 2017, p. 220). the need for progress has not been met by kopitiam cafe and resto employees because the opportunity for employees to develop themselves is very small, therefore employees are less motivated to work at kopitiam cafe and resto. surya as the operational manager of kopitiam cafe and resto said that there is no career development at kopitiam cafe and resto and the salary given is below the standard salary of the city of malang even though the management provides rewards in the form of incentives to employees if the income of the café and resto exceeds the target. several studies that examined motivation and discipline on performance such as those conducted by tarigan and priyanto (2021), octaviani and pricillia (2020) resulted that motivation and work discipline had a significant effect on performance. in line with ekhsan (2019) statement which explains that an increase in employee performance is due to the encouragement of work motivation and company work discipline. so that the existence of these two factors can trigger an increase in employee performance to work more optimally so as to meet the desired company targets. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 36 adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance ii. research methodology the type of research carried out in this study is a type of descriptive research, namely research with the aim of explaining market characteristics marked by specific hypotheses and having a structured research design. this research is classified as a quantitative research with a questionnaire used as a data collection strategy (ferdinand, 2014, p. 171). the questionnaire assesses work motivation and work discipline in the model that employee performance plays as a role to improve company performance. a cross-sectional survey was conducted using total sampling with a total of thirty employees. instruments in the study with an emphasis on the results of the validity and reliability of the data to be used for further analysis. all items were measured using a 4 (four) point likert scale (ranging from 1 = “strongly disagree” to 4 = “strongly agree”). data analysis used descriptive analysis, which was used to describe work motivation and work discipline. the data analysis technique used in this study is multiple linear regression analysis (umar, 2013, p. 78). iii. result and discussion from the results of data collection on 30 respondents to kopitiam café and resto malang employees, researchers categorize them based on a predetermined likert scale. in general, the results of data collection can be grouped as presented below. table 2. result analysis variable work motivation item respondent's answer score score information ss s n ts sts x1.1 4 12 14 0 0 110 hight x1.2 5 12 10 2 1 108 hight x1.3 4 9 10 5 2 98 enough x1.4 2 10 9 8 1 94 enough x.1.5 2 15 11 2 0 103 tinggi x1.6 4 9 15 1 1 104 tinggi mean 103 hight source: processed data (2020) based on the results of the analysis of the average motivation variable (x1), it is classified in the high category. this is because the average score is 103. the high average results indicate that employees feel that the company is able to motivate employees. these results are based on the existence needs indicators (x1.1 and x1.2) classified in the high category. furthermore, relatedness needs (x1.3 and x1.4) are categorized as quite high. while the indicators of growth needs (x1.4 and x1.5) are classified as high categories. the lowest scale range score occurs in the indicator of communication between employees and superiors that is well established (x1.4) which reaches a value of 94. while the highest scale range score reaches 110 which occurs in the indicator that employees can meet their needs (x1.1). table 3. result analysis variable work discipline item respondent's answer score score information ss s n ts sts x2.1 2 15 11 2 0 107 hight x2.2 2 8 15 4 1 96 enough x2.3 2 11 14 2 1 101 enough x2.4 4 10 15 0 1 106 tinggi x2.5 3 11 9 6 1 99 enough x2.6 2 15 11 2 0 107 tinggi x2.7 1 7 10 11 1 86 enough x2.8 2 8 10 7 3 89 enough x2.9 4 10 14 1 1 105 hight x2.10 10 17 2 0 1 125 hight mean 102 hight source: processed data (2020) the results of the analysis indicate that the work discipline variable (x2) is included in the high category, which is obtained with an average score of 102. the average result explains that the employees of café and resto malang have high work discipline, which is indicated by high attendance, obedience. on work regulations, adherence to work standards, level of vigilance, and work ethically. the presence indicators, namely items x2.1 are classified as high category and x2.2 are classified as moderately high categories. furthermore, the indicator of compliance with regulations, item x2.3 is classified as high category and x2.4 is classified as high category. in the indicator of obedience to work standards x2.5 is classified as high enough category and x2.6 item is classified as high category. in addition, indicators of a high level of alertness (x2.7 and x2.8) are categorized as quite high. the last indicator, namely working ethically (x2.9 and x2.10), is in the high category. the score of the lowest scale range reached 86 on item x2.7 which indicates that employees are less careful in using equipment. while the score of the highest scale range reaches 125, namely x2.10 which shows employees have good ethics when communicating with customers table 4. result analysis performance item respondent's answer score score information ss s n ts sts y.1 10 17 2 0 1 125 hight y.2 8 5 10 5 2 102 hight y.3 5 8 16 1 0 107 hight y.4 11 8 6 3 2 113 hight y.5 4 12 14 0 0 110 tinggi y.6 5 12 10 2 1 108 tinggi mean 111 hight source: processed data (2020) based on the results of the analysis, it can be seen that the employee performance variable (y) belongs to the high category, that is, an average score of is obtained 111. these results indicate that the performance of employees at kopitiam café and resto is high. the statement is based on the high quantity of employee work results, which is indicated by the employee's ability to complete the main task (y1) and additional tasks given by the company (y2). based on the results of data analysis for the work motivation and work discipline on performance using linear regression, the results are shown in table 5. figure 5. resul analysis regression source: processed data (2020) from the above equation it can be interpreted as follows: = 3.810 is a constant value, which is an estimate of employee performance at kopitiam café and resto, if the independent variables which include motivation and work discipline have a value equal to 0. 1 = 0.610 is the slope or coefficient direction of work motivation variable (x1) the results of the analysis show that if work motivation increases by one unit, work motivation will increase by 0.610. that is, if the need for existence, the need for affiliation and the need for achievement in employees is higher, the employee's performance will be higher. 2= 0.034 is the slope or regression coefficient of work discipline (x2) which is positive. the results of the analysis show that if the work discipline increases by one unit, the work discipline will increase by 0.034. that is, the higher the work discipline which includes attendance, compliance with regulations, adherence to work standards, the level of vigilance, and working ethically, the higher the employee's performance will be. the results of the t-test (t-test) can be explained through the results of multiple linear regression equations by looking at figure 5. the results show that the t-test (t-test) between x1 (work motivation) and y (employee performance) shows a sig value. t of 0.005 which is smaller than the value of (0.05) then the effect of x1 (work motivation) on y (employee performance) is significant. this means that h0 is rejected so that it can be concluded that employee performance can be significantly influenced by work motivation or the higher the employee's work motivation, the higher the employee's performance. furthermore, the t test (t test) between x2 (work discipline) and y (employee performance) shows the value of sig. t of 0.860 which is smaller than the value of (0.05) then the effect of x2 (work discipline) on y (employee performance) is not significant at 5% alpha. this means that h0 is accepted so that it can be concluded that employee performance cannot be significantly affected by the work discipline variable. from the results of the above analysis as it shows that. the results of the analysis of the scale range reveal that the work motivation of sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 37adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance ii. research methodology the type of research carried out in this study is a type of descriptive research, namely research with the aim of explaining market characteristics marked by specific hypotheses and having a structured research design. this research is classified as a quantitative research with a questionnaire used as a data collection strategy (ferdinand, 2014, p. 171). the questionnaire assesses work motivation and work discipline in the model that employee performance plays as a role to improve company performance. a cross-sectional survey was conducted using total sampling with a total of thirty employees. instruments in the study with an emphasis on the results of the validity and reliability of the data to be used for further analysis. all items were measured using a 4 (four) point likert scale (ranging from 1 = “strongly disagree” to 4 = “strongly agree”). data analysis used descriptive analysis, which was used to describe work motivation and work discipline. the data analysis technique used in this study is multiple linear regression analysis (umar, 2013, p. 78). iii. result and discussion from the results of data collection on 30 respondents to kopitiam café and resto malang employees, researchers categorize them based on a predetermined likert scale. in general, the results of data collection can be grouped as presented below. table 2. result analysis variable work motivation item respondent's answer score score information ss s n ts sts x1.1 4 12 14 0 0 110 hight x1.2 5 12 10 2 1 108 hight x1.3 4 9 10 5 2 98 enough x1.4 2 10 9 8 1 94 enough x.1.5 2 15 11 2 0 103 tinggi x1.6 4 9 15 1 1 104 tinggi mean 103 hight source: processed data (2020) based on the results of the analysis of the average motivation variable (x1), it is classified in the high category. this is because the average score is 103. the high average results indicate that employees feel that the company is able to motivate employees. these results are based on the existence needs indicators (x1.1 and x1.2) classified in the high category. furthermore, relatedness needs (x1.3 and x1.4) are categorized as quite high. while the indicators of growth needs (x1.4 and x1.5) are classified as high categories. the lowest scale range score occurs in the indicator of communication between employees and superiors that is well established (x1.4) which reaches a value of 94. while the highest scale range score reaches 110 which occurs in the indicator that employees can meet their needs (x1.1). table 3. result analysis variable work discipline item respondent's answer score score information ss s n ts sts x2.1 2 15 11 2 0 107 hight x2.2 2 8 15 4 1 96 enough x2.3 2 11 14 2 1 101 enough x2.4 4 10 15 0 1 106 tinggi x2.5 3 11 9 6 1 99 enough x2.6 2 15 11 2 0 107 tinggi x2.7 1 7 10 11 1 86 enough x2.8 2 8 10 7 3 89 enough x2.9 4 10 14 1 1 105 hight x2.10 10 17 2 0 1 125 hight mean 102 hight source: processed data (2020) the results of the analysis indicate that the work discipline variable (x2) is included in the high category, which is obtained with an average score of 102. the average result explains that the employees of café and resto malang have high work discipline, which is indicated by high attendance, obedience. on work regulations, adherence to work standards, level of vigilance, and work ethically. the presence indicators, namely items x2.1 are classified as high category and x2.2 are classified as moderately high categories. furthermore, the indicator of compliance with regulations, item x2.3 is classified as high category and x2.4 is classified as high category. in the indicator of obedience to work standards x2.5 is classified as high enough category and x2.6 item is classified as high category. in addition, indicators of a high level of alertness (x2.7 and x2.8) are categorized as quite high. the last indicator, namely working ethically (x2.9 and x2.10), is in the high category. the score of the lowest scale range reached 86 on item x2.7 which indicates that employees are less careful in using equipment. while the score of the highest scale range reaches 125, namely x2.10 which shows employees have good ethics when communicating with customers table 4. result analysis performance item respondent's answer score score information ss s n ts sts y.1 10 17 2 0 1 125 hight y.2 8 5 10 5 2 102 hight y.3 5 8 16 1 0 107 hight y.4 11 8 6 3 2 113 hight y.5 4 12 14 0 0 110 tinggi y.6 5 12 10 2 1 108 tinggi mean 111 hight source: processed data (2020) based on the results of the analysis, it can be seen that the employee performance variable (y) belongs to the high category, that is, an average score of is obtained 111. these results indicate that the performance of employees at kopitiam café and resto is high. the statement is based on the high quantity of employee work results, which is indicated by the employee's ability to complete the main task (y1) and additional tasks given by the company (y2). based on the results of data analysis for the work motivation and work discipline on performance using linear regression, the results are shown in table 5. figure 5. resul analysis regression source: processed data (2020) from the above equation it can be interpreted as follows: = 3.810 is a constant value, which is an estimate of employee performance at kopitiam café and resto, if the independent variables which include motivation and work discipline have a value equal to 0. 1 = 0.610 is the slope or coefficient direction of work motivation variable (x1) the results of the analysis show that if work motivation increases by one unit, work motivation will increase by 0.610. that is, if the need for existence, the need for affiliation and the need for achievement in employees is higher, the employee's performance will be higher. 2= 0.034 is the slope or regression coefficient of work discipline (x2) which is positive. the results of the analysis show that if the work discipline increases by one unit, the work discipline will increase by 0.034. that is, the higher the work discipline which includes attendance, compliance with regulations, adherence to work standards, the level of vigilance, and working ethically, the higher the employee's performance will be. the results of the t-test (t-test) can be explained through the results of multiple linear regression equations by looking at figure 5. the results show that the t-test (t-test) between x1 (work motivation) and y (employee performance) shows a sig value. t of 0.005 which is smaller than the value of (0.05) then the effect of x1 (work motivation) on y (employee performance) is significant. this means that h0 is rejected so that it can be concluded that employee performance can be significantly influenced by work motivation or the higher the employee's work motivation, the higher the employee's performance. furthermore, the t test (t test) between x2 (work discipline) and y (employee performance) shows the value of sig. t of 0.860 which is smaller than the value of (0.05) then the effect of x2 (work discipline) on y (employee performance) is not significant at 5% alpha. this means that h0 is accepted so that it can be concluded that employee performance cannot be significantly affected by the work discipline variable. from the results of the above analysis as it shows that. the results of the analysis of the scale range reveal that the work motivation of sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 38 adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance employees at kopitiam café and resto is high motivation. the motivation of employees to work in the company is because there are several factors that are considered to have been fulfilled. among them are the need for existence (physiological and sense of security) that can be met properly by the company, the need for affiliation (relationships between employees and co-workers and superiors) is quite capable of being met, and the need for achievement (appreciation of work performance and conveying ideas) that is able to well catered for by the company. the results of the analysis in this study are different from the results of observations. based on observations, the need for achievement has not been met, but based on the results of the analysis, the needs are already high. this condition shows that the company has facilitated employees to excel by providing an evaluation of their work once a month and employees who excel are rewarded in the form of rewards or incentives. however, basically employees are less enthusiastic to compete to achieve this achievement because the nominal bonus given is considered less, namely rp. 40.000,00 to rp. 110,000.00 per month given in accordance with the position. the results of the study reveal that the need for existence is classified as high category. these results are not in accordance with the results of observations which state that the salary given is not in accordance with the malang regency minimum wage standard, which is rp. 2,970,502.73. this situation shows that the salary given is actually able to meet the needs of employees, but the salary is still below the malang regency umk. high employee motivation is very beneficial for the company because it will have an impact on increasing employee performance. hasibuan (2016, p. 146) says that providing motivation benefits the company because it can improve employee performance. motivation directs how to encourage the morale of subordinates so that they want to be more active and work hard by using all their skills and abilities to be able to advance and achieve industry goals. "on the contrary, this motivation is the driving force that causes a member of the organization to want and be willing to take the time to carry out various activities as their responsibilities and fulfill their obligations in terms of achieving the goals and various organizational targets that have been set previously," (siagian, 2016). the results of this study are supported by previous research conducted by astria (2018), there is a positive and significant influence between motivation on employee performance. this is in line with research conducted by wahyudi (2019), which states that work motivation has a positive and significant effect on employee performance. also confirmed by research conducted by sari and masruroh (2018), motivation has a positive effect on employee performance at the central magelang district office. employee work discipline at kopitiam café and resto malang shows a high category. this high work discipline means that kopitiam café and resto employees have good work discipline. good work discipline by employees is shown in several indications. first, on the attendance dimension, if the employee is absent from work, the employee attaches a permit. second, the attitude of obeying the rules is shown by the discipline of employees while working by using company attributes, such as identification or identity. furthermore, on the dimension of obedience to work standards, employees are able to serve customers in accordance with the standards set by the company. fourth, employees prioritize work ethics. this is shown by employees having good ethics during work and good communication when serving customers. the results of this study are in line with research conducted by kumarawati, suparta, & yasa (2017) which states that high employee performance is based on high work discipline in planning, implementing and evaluating the employee's performance. an increase in work discipline will certainly have an impact on increasing the performance of the employee. this is in line with research conducted by wahyudi (2019), which states that work discipline has a positive and significant effect on employee performance. also confirmed by research conducted by darmanto (2015), work discipline has a positive and significant effect on the performance of environmental employees at the north sumatra ksda center. the results of this study are different from the results of the initial observations of the study. the operational manager of kopitiam café and resto revealed that the employees did not work according to the work standards set by the company. while the results of the study revealed that the indicators of compliance with company standards were going quite well, because it was known that these indicators were classified in the fairly high category. this condition indicates that there is a need for stricter supervision of employee discipline related to compliance in accordance with established work standards. the company expects employees to be more agile and friendly when serving customers. therefore, the company can remind or direct employees who do work that is not in accordance with work standards so that employee work discipline will increase. in addition to being related to compliance with work standards, the difference also lies in the indicators of the level of employee alertness. the results of the analysis show that these indicators are categorized as high enough. in contrast to the results of interviews with company managers, researchers stated that employees tend to be careless in their work. this situation shows that the company feels the need to concentrate a high level of employee vigilance at work. these efforts are made to improve employee work discipline, especially in terms of the level of vigilance during work. work discipline owned by kopitiam café and resto malang employees is one of the determinants of the effectiveness of employee performance. having disciplined employees will support the achievement of organizational goals because it is a form of compliance with work rules and also as a self-responsibility of the company. employee performance at kopitiam café and resto malang based on the results of the analysis of the scale range is high. the high employee performance means that kopitiam café and resto employees have good performance at work. good performance in this work can be seen from employees who are able to complete all the work that is their main task. the majority of employees are able to complete additional tasks assigned by the company. these two things indicate the performance of kopitiam café and resto employees. good performance is indicated by the timeliness applied by employees. employees do not delay work that has been assigned. in addition, employees are also able to meet the targets set by the company. however, different employee performance results are shown in job quality indicators. based on the results of the research, the quality of work is classified as high, which is based on work results that are in accordance with standards and in accordance with company goals. meanwhile, on observation, it is known that there are fluctuations in misstatements made by employees every month, which has an impact on the company's total losses. these results indicate that the company needs to help employees to minimize ordering errors or find alternative steps for the wrong menus to order. this is done so that misstatements tend to be stable or even decrease. the lack of mistakes made by employees can have an impact on the stability of the company's goals. based on the results of data analysis, it is known that the work motivation variable has a significant influence on employee performance at sinergi: jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 39adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance employees at kopitiam café and resto is high motivation. the motivation of employees to work in the company is because there are several factors that are considered to have been fulfilled. among them are the need for existence (physiological and sense of security) that can be met properly by the company, the need for affiliation (relationships between employees and co-workers and superiors) is quite capable of being met, and the need for achievement (appreciation of work performance and conveying ideas) that is able to well catered for by the company. the results of the analysis in this study are different from the results of observations. based on observations, the need for achievement has not been met, but based on the results of the analysis, the needs are already high. this condition shows that the company has facilitated employees to excel by providing an evaluation of their work once a month and employees who excel are rewarded in the form of rewards or incentives. however, basically employees are less enthusiastic to compete to achieve this achievement because the nominal bonus given is considered less, namely rp. 40.000,00 to rp. 110,000.00 per month given in accordance with the position. the results of the study reveal that the need for existence is classified as high category. these results are not in accordance with the results of observations which state that the salary given is not in accordance with the malang regency minimum wage standard, which is rp. 2,970,502.73. this situation shows that the salary given is actually able to meet the needs of employees, but the salary is still below the malang regency umk. high employee motivation is very beneficial for the company because it will have an impact on increasing employee performance. hasibuan (2016, p. 146) says that providing motivation benefits the company because it can improve employee performance. motivation directs how to encourage the morale of subordinates so that they want to be more active and work hard by using all their skills and abilities to be able to advance and achieve industry goals. "on the contrary, this motivation is the driving force that causes a member of the organization to want and be willing to take the time to carry out various activities as their responsibilities and fulfill their obligations in terms of achieving the goals and various organizational targets that have been set previously," (siagian, 2016). the results of this study are supported by previous research conducted by astria (2018), there is a positive and significant influence between motivation on employee performance. this is in line with research conducted by wahyudi (2019), which states that work motivation has a positive and significant effect on employee performance. also confirmed by research conducted by sari and masruroh (2018), motivation has a positive effect on employee performance at the central magelang district office. employee work discipline at kopitiam café and resto malang shows a high category. this high work discipline means that kopitiam café and resto employees have good work discipline. good work discipline by employees is shown in several indications. first, on the attendance dimension, if the employee is absent from work, the employee attaches a permit. second, the attitude of obeying the rules is shown by the discipline of employees while working by using company attributes, such as identification or identity. furthermore, on the dimension of obedience to work standards, employees are able to serve customers in accordance with the standards set by the company. fourth, employees prioritize work ethics. this is shown by employees having good ethics during work and good communication when serving customers. the results of this study are in line with research conducted by kumarawati, suparta, & yasa (2017) which states that high employee performance is based on high work discipline in planning, implementing and evaluating the employee's performance. an increase in work discipline will certainly have an impact on increasing the performance of the employee. this is in line with research conducted by wahyudi (2019), which states that work discipline has a positive and significant effect on employee performance. also confirmed by research conducted by darmanto (2015), work discipline has a positive and significant effect on the performance of environmental employees at the north sumatra ksda center. the results of this study are different from the results of the initial observations of the study. the operational manager of kopitiam café and resto revealed that the employees did not work according to the work standards set by the company. while the results of the study revealed that the indicators of compliance with company standards were going quite well, because it was known that these indicators were classified in the fairly high category. this condition indicates that there is a need for stricter supervision of employee discipline related to compliance in accordance with established work standards. the company expects employees to be more agile and friendly when serving customers. therefore, the company can remind or direct employees who do work that is not in accordance with work standards so that employee work discipline will increase. in addition to being related to compliance with work standards, the difference also lies in the indicators of the level of employee alertness. the results of the analysis show that these indicators are categorized as high enough. in contrast to the results of interviews with company managers, researchers stated that employees tend to be careless in their work. this situation shows that the company feels the need to concentrate a high level of employee vigilance at work. these efforts are made to improve employee work discipline, especially in terms of the level of vigilance during work. work discipline owned by kopitiam café and resto malang employees is one of the determinants of the effectiveness of employee performance. having disciplined employees will support the achievement of organizational goals because it is a form of compliance with work rules and also as a self-responsibility of the company. employee performance at kopitiam café and resto malang based on the results of the analysis of the scale range is high. the high employee performance means that kopitiam café and resto employees have good performance at work. good performance in this work can be seen from employees who are able to complete all the work that is their main task. the majority of employees are able to complete additional tasks assigned by the company. these two things indicate the performance of kopitiam café and resto employees. good performance is indicated by the timeliness applied by employees. employees do not delay work that has been assigned. in addition, employees are also able to meet the targets set by the company. however, different employee performance results are shown in job quality indicators. based on the results of the research, the quality of work is classified as high, which is based on work results that are in accordance with standards and in accordance with company goals. meanwhile, on observation, it is known that there are fluctuations in misstatements made by employees every month, which has an impact on the company's total losses. these results indicate that the company needs to help employees to minimize ordering errors or find alternative steps for the wrong menus to order. this is done so that misstatements tend to be stable or even decrease. the lack of mistakes made by employees can have an impact on the stability of the company's goals. based on the results of data analysis, it is known that the work motivation variable has a significant influence on employee performance at sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 40 adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance kopitiam café and resto malang. high motivation to work will support good performance from employees. robbins (2013) defines motivation as a process that describes the intensity, direction, and persistence of an individual to achieve his goals. with all these needs, a person is required to work harder and more actively at work, because with someone who has high motivation in doing his job, the performance of a person within the company will increase and the company's targets can be achieved. the results of this study are supported by research from budianto (2020) which shows that there is a significant influence between employee motivation and performance. in addition, kuswati (2020) found that motivation had a significant effect on employee performance at the semarang city industry and trade office. based on the results of data analysis, employee work discipline is known that the work discipline variable does not have a significant effect on employee performance at kopitiam café and resto. these results can be interpreted that work discipline cannot always improve employee performance. work discipline is very important in a company. majid, hakim & assadam (2021) stated that increasing discipline is an important part of human resource management as an important factor in improving performance. work discipline has no effect on performance at kopitiam café and resto because employees feel pressured because of the regulations or policies that apply in the company. the company demands that employees work well, which can have an impact on achieving company goals. improved performance that is not based on internal encouragement from a person can lead to stress and ultimately lead to decreased performance. the punishments imposed at kopitiam café and resto for undisciplined employees are deductions from salaries or not getting bonuses. the manager of kopitiam café and resto explained that employees' salaries would be deducted if employees violated the sop. kopitiam café and resto regulations that aim to make employees work according to the standards desired by the company in order to create good performance are not ready to be accepted by employees. it can be said that the regulations applied are not in accordance with the conditions of employees who are mostly teenagers. however, the results of the disciplinary variable scale range produce a high scale range, which means that employees are very disciplined in working at kopitiam café and resto. based on the results of the regression analysis that has been done, to find out the most dominant independent variable on the dependent variable using (beta) standardized, but because the independent variable of work discipline is not significant, the motivation variable remains, which means only motivation is the most dominant because there is no other variable. comparison because the comparison variable is not significant. therefore, it can be seen that the most dominant variable influencing is motivation. the results of this study are supported by research conducted by nadhiroh (2019), which states the motivation variable as the most dominant variable affecting employee performance variables compared to leadership and work discipline variables. from these results, h2 is accepted which states that motivation has the most dominant effect on employee performance. with the most dominant work motivation variable affecting employee performance compared to work discipline at kopitiam café and resto malang, it proves that the most important factor in employee performance is motivation. furthermore, the management of kopitiam café and resto needs to pay more attention to and motivate employees. the way to motivate employees is to focus attention on their needs, such as the need for existence which includes physical needs, safety needs, and security needs. not only the need for existence but also the need for affiliation which is the need for relationships between individuals and society. next is the need for progress where the management of kopitiam café and resto can develop the potential of employees. iv. conclusion based on the results of data analysis and discussions that have been carried out above, it can be concluded that: 1. work motivation (x1) on kopitiam café and resto employees is high. the work discipline (x2) of kopitiam café and resto malang employees is high. employee performance (y) at kopitiam café and resto is high. 2. the work motivation variable (x1) has a partial effect on employee performance (y). the work discipline variable (x2) has no partial effect on employee performance (y). meanwhile, motivation (x1) and work discipline (x2) variables have a simultaneous influence on employee performance (y) 3. work motivation variable (x1) is the dominant variable affecting performance references [1] astria, k. (2018). pengaruh disiplin kerja dan motivasi terhadap kinerja karyawan pada pt. bank rakyat indonesia cabang pamulang. jurnal mandiri, 2(1). [2] budianto. e. (2020). the effect of work motivation and work discipline on employee performance at pt. pegadaian (persero) syariah branch of cinere. jurnal humanities, management and science proceedings, 1(1), 197–201. [3] darmanto. (2015). pengaruh motivasi dan disiplin kerja terhadap kinerja pegawai di lingkungan balai besar konservasi sumber daya alam sumatera utara. jurnal administrasi publik. [4] ekhsan, m. (2019). pengaruh motivasi dan disiplin kerja terhadap kinerja karyawan. jurnal ekonomi dan kewirausahaan, 13(1), 1–13. [5] ferdinand, a. (2014). metode penelitian manajemen. semarang: bp. undip. [6] hasibuan, m. s. p. (2016). manajemen sumber daya manusia (edisi revi). jakarta: pt. bumi aksara. [7] hasibuan, m. s. p. (2017). manajemen sumber daya manusia. jakarta: pt bumi aksara. [8] kumarawati, r., suparta, g & yasa, p. n. (2017). pengaruh motivasi terhadap disiplin dan kinerja pegawai pada sekretariat daerah kota denpasar. jurnal ekonomi & bisnis, 4(2), 63–75. [9] kuswati, y. (2020). the effect of motivation on employee performance. budapest international research and critics institute-journal (birci-journal), 3(2), 995–1002. https://doi.org/https://doi.org/10.33258/birci. v3i2.928 [10] majid, a., hakim, a. l & assadam, e. (2021). pengaruh motivasi kerja terhadap kinerja karyawan dengan kepuasan kerja sebagai variabel moderasi. jurnal analisis sistem pendidikan tinggi indonesia, 5(1), 11–20. https://doi.org/10.36339/jaspt.v5i1.396 [11] nadhiroh, u. (2019). pengaruh motivasi dan kepuasan kerja terhadap kinerja karyawan dengan budaya organisasi sebagai variabel moderating pada koperta langgeng mulyo ngancar kediri. develop, 3(1), 61–77. https://doi.org/10.25139/dev.v3i1.1531 [12] octaviani, i. s & pricillia, l. (2020). pengaruh disiplin kerja dan motivasi kerja terhadap kinerja karyawan pada pt. pertama logistics service. jurnal ilmiah manajemen forkamma, 4(1), 47–59. https://doi.org/10.32493/frkm.v4i1.7664 [13] rivai, v. (2015). manajemen sumber daya manusia untuk perusahaan. jakarta: rajawali pers. [14] robbins, s. p. (2013). perilaku organisasi. jakarta: bumi aksara. [15] sari, m., & masruroh, f. (2018). pengaruh motivasi dan disiplin kerja terhadap kinerja pegawai di kecamatan magelang tengah kota magelang. jurnal mahasiswa administrasi negara, 2(2). [16] siagian, s. p. (2016). sistem informasi manajemen. jakarta: bumi aksara. [17] tarigan, b & priyanto, a. a. (2021). pengaruh motivasi dan disiplin terhadap sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 41adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance kopitiam café and resto malang. high motivation to work will support good performance from employees. robbins (2013) defines motivation as a process that describes the intensity, direction, and persistence of an individual to achieve his goals. with all these needs, a person is required to work harder and more actively at work, because with someone who has high motivation in doing his job, the performance of a person within the company will increase and the company's targets can be achieved. the results of this study are supported by research from budianto (2020) which shows that there is a significant influence between employee motivation and performance. in addition, kuswati (2020) found that motivation had a significant effect on employee performance at the semarang city industry and trade office. based on the results of data analysis, employee work discipline is known that the work discipline variable does not have a significant effect on employee performance at kopitiam café and resto. these results can be interpreted that work discipline cannot always improve employee performance. work discipline is very important in a company. majid, hakim & assadam (2021) stated that increasing discipline is an important part of human resource management as an important factor in improving performance. work discipline has no effect on performance at kopitiam café and resto because employees feel pressured because of the regulations or policies that apply in the company. the company demands that employees work well, which can have an impact on achieving company goals. improved performance that is not based on internal encouragement from a person can lead to stress and ultimately lead to decreased performance. the punishments imposed at kopitiam café and resto for undisciplined employees are deductions from salaries or not getting bonuses. the manager of kopitiam café and resto explained that employees' salaries would be deducted if employees violated the sop. kopitiam café and resto regulations that aim to make employees work according to the standards desired by the company in order to create good performance are not ready to be accepted by employees. it can be said that the regulations applied are not in accordance with the conditions of employees who are mostly teenagers. however, the results of the disciplinary variable scale range produce a high scale range, which means that employees are very disciplined in working at kopitiam café and resto. based on the results of the regression analysis that has been done, to find out the most dominant independent variable on the dependent variable using (beta) standardized, but because the independent variable of work discipline is not significant, the motivation variable remains, which means only motivation is the most dominant because there is no other variable. comparison because the comparison variable is not significant. therefore, it can be seen that the most dominant variable influencing is motivation. the results of this study are supported by research conducted by nadhiroh (2019), which states the motivation variable as the most dominant variable affecting employee performance variables compared to leadership and work discipline variables. from these results, h2 is accepted which states that motivation has the most dominant effect on employee performance. with the most dominant work motivation variable affecting employee performance compared to work discipline at kopitiam café and resto malang, it proves that the most important factor in employee performance is motivation. furthermore, the management of kopitiam café and resto needs to pay more attention to and motivate employees. the way to motivate employees is to focus attention on their needs, such as the need for existence which includes physical needs, safety needs, and security needs. not only the need for existence but also the need for affiliation which is the need for relationships between individuals and society. next is the need for progress where the management of kopitiam café and resto can develop the potential of employees. iv. conclusion based on the results of data analysis and discussions that have been carried out above, it can be concluded that: 1. work motivation (x1) on kopitiam café and resto employees is high. the work discipline (x2) of kopitiam café and resto malang employees is high. employee performance (y) at kopitiam café and resto is high. 2. the work motivation variable (x1) has a partial effect on employee performance (y). the work discipline variable (x2) has no partial effect on employee performance (y). meanwhile, motivation (x1) and work discipline (x2) variables have a simultaneous influence on employee performance (y) 3. work motivation variable (x1) is the dominant variable affecting performance references [1] astria, k. (2018). pengaruh disiplin kerja dan motivasi terhadap kinerja karyawan pada pt. bank rakyat indonesia cabang pamulang. jurnal mandiri, 2(1). [2] budianto. e. (2020). the effect of work motivation and work discipline on employee performance at pt. pegadaian (persero) syariah branch of cinere. jurnal humanities, management and science proceedings, 1(1), 197–201. [3] darmanto. (2015). pengaruh motivasi dan disiplin kerja terhadap kinerja pegawai di lingkungan balai besar konservasi sumber daya alam sumatera utara. jurnal administrasi publik. [4] ekhsan, m. (2019). pengaruh motivasi dan disiplin kerja terhadap kinerja karyawan. jurnal ekonomi dan kewirausahaan, 13(1), 1–13. [5] ferdinand, a. (2014). metode penelitian manajemen. semarang: bp. undip. [6] hasibuan, m. s. p. (2016). manajemen sumber daya manusia (edisi revi). jakarta: pt. bumi aksara. [7] hasibuan, m. s. p. (2017). manajemen sumber daya manusia. jakarta: pt bumi aksara. [8] kumarawati, r., suparta, g & yasa, p. n. (2017). pengaruh motivasi terhadap disiplin dan kinerja pegawai pada sekretariat daerah kota denpasar. jurnal ekonomi & bisnis, 4(2), 63–75. [9] kuswati, y. (2020). the effect of motivation on employee performance. budapest international research and critics institute-journal (birci-journal), 3(2), 995–1002. https://doi.org/https://doi.org/10.33258/birci. v3i2.928 [10] majid, a., hakim, a. l & assadam, e. (2021). pengaruh motivasi kerja terhadap kinerja karyawan dengan kepuasan kerja sebagai variabel moderasi. jurnal analisis sistem pendidikan tinggi indonesia, 5(1), 11–20. https://doi.org/10.36339/jaspt.v5i1.396 [11] nadhiroh, u. (2019). pengaruh motivasi dan kepuasan kerja terhadap kinerja karyawan dengan budaya organisasi sebagai variabel moderating pada koperta langgeng mulyo ngancar kediri. develop, 3(1), 61–77. https://doi.org/10.25139/dev.v3i1.1531 [12] octaviani, i. s & pricillia, l. (2020). pengaruh disiplin kerja dan motivasi kerja terhadap kinerja karyawan pada pt. pertama logistics service. jurnal ilmiah manajemen forkamma, 4(1), 47–59. https://doi.org/10.32493/frkm.v4i1.7664 [13] rivai, v. (2015). manajemen sumber daya manusia untuk perusahaan. jakarta: rajawali pers. [14] robbins, s. p. (2013). perilaku organisasi. jakarta: bumi aksara. [15] sari, m., & masruroh, f. (2018). pengaruh motivasi dan disiplin kerja terhadap kinerja pegawai di kecamatan magelang tengah kota magelang. jurnal mahasiswa administrasi negara, 2(2). [16] siagian, s. p. (2016). sistem informasi manajemen. jakarta: bumi aksara. [17] tarigan, b & priyanto, a. a. (2021). pengaruh motivasi dan disiplin terhadap sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 42 adi lukman hakim1), erna nur faizah2), firdausi nujulah3) the effect of work motivation and work discipline on employee performance kinerja karyawan pada pt bank dbs tangerang selatan. jurnal ekonomi, bisnis dan akuntansi, 20(1), 1–10. https://doi.org/10.22225/we.20.1.2890.1-10 [18] umar, h. (2013). metode penelitian untuk skripsi dan tesis bisnis. (edisi 1.). jakarta: pt. gramedia. [19] wahyudi. (2019). pengaruh disiplin dan motivasi terhadap kinerja karyawan. scientific journal of reflection, 2(3). financial ratio analysis in predicting financial distress of food and beverage companies with logistic regression aneu kuraesin1 , sussy susanti2, yunia mulyani azis3* stie ekuitas, bandung, indonesia 1 aneukuraesin@gmail.com,2 sussy.rebab19@gmail.com, 3 yunia.mulyani@ekuitas,ac,id abstract the purpose of this study is to analyze the effect of financial ratios such as leverage, liquidity, activity, and profitability on the possibility of financial distress (financial distress). the population in this study are all food and beverage companies listed on the indonesia stock exchange in the period 2017 2020 totaling 30 companies. the samples taken were 6 food and beverage companies using a purposive sampling technique, namely the selection of samples based on certain criteria. the number of observations that were processed and analyzed were 18 observations. logistics regression is the method used in this research. the results showed that the activity ratio and leverage ratio had a significant effect on predicting financial distress, while the liquidity ratio and profitability ratio had no significant effect on predicting financial distress.. keywords: financial distress; regresi logistic; finacial ratio introduction financial reports are made with the aim of providing information to interested parties for decision making. according to kasmir (2019) that one of the objectives of financial statements is to provide information about the company's management performance in a period. if a company does not pay attention to its performance, it will experience financial difficulties which will eventually go bankrupt. in various studies and according to the opinion of experts, it is stated that financial statements can be used as a basis for measuring the health of a company. the ratio analysis method is a comprehensive way of assessing the performance of a company. parties such as investors, shareholders, or the government often use this method to evaluate certain aspects of a company's performance. so that in the financial statements by looking at the company's financial ratios, it is possible to detect financial difficulties. financial distress is a condition when a company experiences a financial crisis and fails to meet debtors' obligations because they do not have the funds to continue their business. this condition is accompanied by a decrease in profits and fixed assets and usually occurs before bankruptcy. research conducted by edward i altman (1968) is an early study that examines the use of financial ratio analysis as a tool to predict the bankruptcy of manufacturing companies that go public. altman's model is known as the z-score, which is a score determined from the standard calculation times financial ratios that indicate the level of probability of the company's bankruptcy. the analysis of financial statements is carried out using the 2017-2020 time interval. this is done to be able to update previous research. then the financial ratios used in predicting financial distress are the financial ratios of food and beverage companies listed on the indonesia stock exchange. the purpose of this study was to determine whether roa, cr, tato, dta affect financial distress. literature study sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 14 the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour nur syamsudin walisongo state islamic university e-mail: syam129@yahoo.com (accepted: 20-july-2016; revised: 23-august-2016; published: 06-september-2016) abstract.quantitative correlation study took 18teachersampling junior high schoolthoriqotunnajahsingosarimalang.the data collection technique using a questionnaire that has been tested the validity and reliability test. data analysis technique used isanalisia, multiple linear regression correlation the results obtained fcount = 86.818 is greater than the ftable: 0,05; 2; 18 by dk v1 = 2 and v2 = 18, the score of 3.554557 or with a significance level of 0.000 (p <0.05), the regression model, namely variable transformational leadership and organizational commitment together can be used to predict the organizational citizenship behavior master junior thoriqotunnajahsingosarimalang.. keywords: organizational citizenship behavior, transformational leadership, organizational commitment introduction teachers are professional educators with the primary task of educating, teaching, guiding, directing, train, and evaluate students on educational institutions, both formal and non-formal. to carry out their duties professionally, a teacher must possess the competencies required. in harmony with development policies that put a human resource development as a national development priority, then the position and role of teachers more meaningful strategic in preparing qualified human resources in the face of the global era. being a teacher is not easy, but must have a great affection to the child and a good personality, attractive, and energetic, he also had to master the science of education, psychology of child development, basic concepts of the field of study, and a children's science learning. (slametsuyanto, 2005). teachers have more responsibility because they serve is children's education is the foundation for the next level of education. teacher expertise in planning, implementing, and assessing programs in accordance with the development, the characteristics of the child, and cultural values that grow around children is a major challenge that must be addressed by educators in indonesia. limitations of educational background, limited access to self-improvement program, as well as limited financial support is the reason that the teachers felt today. education as an organization should be managed in such a way that the activity sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 15 of implementation of educational programs can be run effectively, efficiently and productively to achieve the desired objectives. this educational management must consider a variety of existing resources. educational administration is the study of the arrangement, namely human resources, curriculum or learning resources and facilities to achieve optimal educational objectives and the creation of a good atmosphere for the man agreed. educational administration basically media to achieve educational goals productively is effective and efficient (engkoswara and komariah, 2010). to achieve the educational goals effectively and efficiently requires a process of educational administration. the limit the scope or educational administration cultivated fields one of which is human resources (engkoswara, 2007). human resources in order to contribute to the organization should be managed strategically and coherently. it is as stated by armstrong (2006) that human resource management can be defined as a strategic approach and coherent to manage the most valuable assets belonging to the organization, people who work in the organization, both individually and collectively, and contribute to achieving the objective organization. najahschool teachersthoriqotunsingosari malang is also experiencing the same reality, that their job demands and high duty while still limitations the reward of such demands. this situation demands master junior thoriqotunnajahsingosari malang to perform activities undertaken voluntarily in behaviors that exceed the requirements of formal employment. some things that indicate not optimal organizational citizenship behaviour of the teacher is the teacher has not been much involved in extra-curricular activities of the school, the teachers do not understand the ethics of learning, the teacher does not have the initiative and ideas to develop their potential (still waiting for orders principals), teachers are less devoted to protégé, there are teachers who often permits, the teacher did not use the time effectively, and teachers do not prepare plans for teaching well. other factors that can increase the organizational citizenship behaviour teacher is organizational commitment. smith, et. al (1983); and allen and meyer (1991) in his research report that: the commitment can be interpreted dedication and in a broad sense be interpreted as a strong trust of employees to accept the goals and values of the sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 16 organization, the desire to advance for the sake of the organization, and have a strong desire to stay in the organization. based on the elaboration of the above problems and is based on research that has been done before and have still limited research on organizational citizenship behaviour teacher in indonesia, the researcher is interested and need to know more about the influence of transformational leadership and organizational commitment teachers on organizational citizenship behavior master junior thoriqotunnajahsingosari malang. 1. literature 1.1 transformational leadership luthans(2006) defines leadership as a group process, personality, fulfillment, certain behaviors, persuasion, authority, achieving goals, interactions, different roles, initiation of structure, and the combination of two or more of these things. robbins and judge (2008), transformational leaders are leaders who inspire followers to put aside their personal interests for the good of the organization and they can have a tremendous influence on the self-followers. they pay attention to the needs of self-development of his followers, changing the consciousness of the followers of the issues that exist in ways that help others to look at an old problem in a new way, as well as capable of pleasing and inspiring his followers to work hard in order to achieve common goals , antonakis et al. (2003) defines transformational leadership as a proactive behavior, raise awareness of common interest to the followers, and helping followers achieve goals at the highest level. khuntia and beacon (2004) states that all theories of leadership focuses on three main ideas that are built either jointly or separately, namely: (1) rationality, behavior, and personality of the leader; (2) rationality, behavior, and personality followers; and (3) factors related to the implementation of tasks, organizational climate, and culture. according rival and mulyadi (2012), leadership is basically: involving others, involve unequal distribution of power between the leader and the group members, moving the ability to use different forms of power to influence the behavior of subordinates, and concerns the value. four common properties that have an influence on the success of the organization's leadership, namely: (1) intelligence, (2) maturity, (3) self-motivation and encouragement of achievement, and (4) the attitude of human relationships. according to robbins and judge (2008: 91) and cavazotte (2012), there are four components of transformational leadership, namely: a. idealized influence (influence ideal) is the behavior of leaders who provide vision and sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 17 mission, bring a sense of pride, as well as the respect and trust of subordinates. idealized influence is also known as a charismatic leader, where followers have profound faith in its leaders, felt proud to be working with a leader, and to trust the capacity of its leaders to overcome any problems. b. inspirational motivation (motivation inspiration) is a leader who can communicate the behavior of high expectations, delivering a shared vision is interesting by using symbols to focus efforts subordinates, and inspire subordinates to achieve goals that resulted in important progress for the organization. c. intellectual stimulation (intellectual stimulation) is a leader behaviors that can improve intelligence subordinate to enhance their creativity and innovation, improve the rationality and careful problem solving. d. individualized consideration (individual consideration) is a leader behaviors that give personal attention, treats each subordinate individually as an individual with needs, abilities, and different aspirations, and to train and advise. individualized consideration of transformational leadership treats each individual subordinate as well as accompanying them, to monitor and foster opportunities. 1.2 organizational commitment organizational commitment is an understanding of typical to a psychological bond the individual with the organization that gave birth to a unification between the values and goals of the organization with the aim of individuals who form a sense of loyalty, have, a sense of security, loyalty, trust, a sense of fulfillment of the purpose and meaning of life and positive self-image. a strong commitment to the organization provides many advantages, such as the growth of extra-role behavior, namely innovative and spontaneous behavior that is positive for the organization, outside of normal behavior is only based on an impulse to obtain rewards (scholl, 2002). mowday, et al (1982) defines organizational commitment as the relative strength of an individual's identification with and involved in anorganization.so, in other words, organizational commitment is a strong relationship and a person identification and involvement in the organization. this involvement may be reflected in a person's desire to perform tasks on top of the standard of work required. organizational commitment evident when employees are strongly identified himself with the organization, agrees with objectivity and value systems that apply, and give the extra effort that is based on his own desires. mowdy et al, (in prabowo, 2001) argues that organizational commitment is a condition sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 18 when the individual is very interested in the goals, values and objectives of the organization. organizational commitment is the degree of psychological identification with or attachment to the organization for the which we work, in other words, organizational commitment is the level of psychological identification with or interest in the organization where the person works. organizational commitment according to gibson, et al (1988) is a sense of identification, engagement and loyalty that is displayed on the workers' organization or organizational unit. organizational commitment shown by the attitude of acceptance, a strong conviction to the values and goals of the organization, and their strong urge to maintain membership in the organization for the achievement of organizational goals. minner (1988) defines organizational commitment is directed to the concept of attitudinal commitment, ie the commitment is viewed from the standpoint of attitude. commitment to the organization is the relative strength of the identification and involvement of individuals against organizations which conceptually is characterized by three things: a strong urge to become a member of the organization (aspect engagement) and the trust and acceptance of the values and goals of the organization (identification aspects). more minner (1988) states that individuals who have the commitment to the organization can be seen from: a. a strong desire to remain a member of the b. organization'swillingness to strive in the best interest of the organization's c. belief in the strong acceptance of the values and goals of the organization. therefore, compared with attachments, commitments include active relationships between members with leaders in which the members are willing to give something of their own accord in order to support the achievement of organizational goals. steers (1985) which states the organization's commitment has three main aspects, namely: identification, engagement and employee loyalty towards the organization or organizations. 1.3 organizational citizenship behavior huang (2012) suggests three categories of worker behavior, namely: (1) participate, tied and being in an organization; (2) have a job and act in accordance with the principles set forth by the organization; and (3) conduct innovative and spontaneous activity exceeded his role in the perception of the organization. the latter category are often referred to as organizational citizenship behavior (ocb) or the extra-role behavior (huang, 2012). robbins and judge (2008) defines organizational citizenship behaviour as behavioral options that do not become part of sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 19 the formal work duties of an employee, but to support the functioning of the organization effectively. shweta and srirang (2009) states that the organizational citizenship behaviour marked by efforts in the form of anything done by the wisdom of employees who provide benefits to organizations without expecting any reward. kumar et al. (2009) defines organizational citizenship behaviour as the behavior of individuals who contribute to the creation of organizational effectiveness and are not directly related to the reward system of the organization. kumar et al. (2009) stated that the organizational citizenship behaviour is: 1) conduct labor free is neither expected nor necessary, therefore organizations can not give awards for the emergence of such conduct or provide penalties for the absence of such behavior, 2) the behavior of individuals that benefit organizations but do not directly or explicitly recognized in the reward system of formal organization, 3) the behavior that depends on each individual to raise or eliminate these behaviors in the work environment, 4) conduct that impact on the creation of the effectiveness and efficiency of teamwork and organization, thus contributing the productivity of the entire organization. organ et al. (2006) described organizational citizenship behaviour as individual behavior that is discretionary(discretionary),which do not directly and explicitly received an award from the formal reward system, and the overall (aggregate) improve the efficiency and effectiveness of organizational functions. is free and voluntary, as such behavior is not required by the terms of role or position description that clearly required under the contract with the organization, but as a personal choice. williams and anderson (1991) grouping organizational citizenship behaviour in two different categories, namely: ocbi behavior that leads to an individual in the organization, consisting of altruism and courtesy; and ocbo behaviors that lead to increased organizational effectiveness, comprised of conscientiousness, sportsmanship and civic virtue. in this study, organizational citizenship behaviour component used is the component that proposed by konovsky and organ (1996); jahangir et al. (2004); organ et al. (2006: 22); dipaola and neves (2009); ahmed et al. (2012), chiang and hsieh (2012), namely: a) altruism,b) courtesy,c) sportsmanship,d) conscientiousness,and e) civicvirtue. 2. methods 2.1 subjects research one important step in the research is to determine the subject of research by determining in advance the population that will be used in research. population is the subject of research (arikunto, 2006). subjects sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 20 studied could be a group of residents in a village, school, or who occupies a particular area (latipun, 2006). the population in this study is the master junior thoriqotun najah singosari malang. based on data obtained from the field, then dala population of this study was 18 teachers. in taking a sample if the subject to be examined is less than 100, better taken all. if the subject of more than 100, it can be 10% 15% or 20% -25% therefore this study was population research by taking the entire subject of study in a population of as many as 18 teachers in junior thoriqotun najah singosari malang. 2.2 data collection research activity will not be separated from the existence of the data is the raw material information to provide specific features of the object of study. data are empirical facts gathered by investigators for the sake of solving the problem or answer the research question. the data in this study includes data interval, the measurement data can be sorted on the basis of certain criteria and show all the properties owned by ordinal data. 2.3 data analysis in this research to process and analyze the data using spss for windows version 17 by using test techniques multiple linear regression analysis. this test is used for estimating the coefficients resulting from the linear equation, involving two independent variables(independentvariable),is used as a tool to predict the value of the dependent variable(dependentvariable). the results of analysis of regression testing can be seen as follows. table 1 results of hypothesis testing simultaneously r ² f p 0 959 0.920 86 818 0.000 correlation coefficient for 0959 shows that the range of influence between transformational leadership and organizational commitment to organizational citizenship behaviour classified as very strong (r xy> 0.50) or it can be said that the correlation values are included in the very high category. it can be known from the value of determination coefficient of 0.920, which means that the transformational leadership and organizational commitment capable of contributing influence on organizational citizenship behavior by 92%. value f = 86.818, p = 0.000 (p <0.05), indicating that jointly transformational leadership and organizational commitment capable of contributing influence on organizational citizenship behavior in junior high school teacher najah thoriqotun singosari malang. furthermore, the partial results of sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 21 hypothesis testing can be seen as follows. table 2 results of hypothesis testingpartial model unstandardi zedcoefficie nts stan dard ized coef ficie nts t sig. b std. erro r beta 1 (co nsta nt) 5021 699 2 .7 1 8 .484 tra nsfo rma tion al lea der ship .244 .084 .269 2 9 1 6 .011 org aniz atio nal co mmi tme nt .088 .770 8,343 .000 .730 from the table it can be obtained by value t = 0.2,916, with a probability of 0.000 ( p <0.05), then ho is rejected, which means ha accepted. this means that there is significant relationship between transformational leadership on organizational citizenship behaviour. based on the price of the correlation coefficient can be concluded that the higher the transformational leadership followed by high organizational citizenship behaviour. from the table it can be obtained nlai t = 8.343 with probability 0.000 (p <0.05), then ho is rejected, which means ha accepted. this means that there is significant influence between organizational commitment on organizational citizenship behaviour. based on the price of the correlation coefficient can be concluded that the higher the organizational commitment followed by high organizational citizenship behaviour. 3. results after analyzing the data by using multiple linear regression analysis with spss 17 for windows, it is known that the influence of the relationship transformational leadership and organizational commitment with organizational citizenship behaviour has a value of r tables for 0959, with significance 0.000> 0.05. this shows that there is significant influence between transformational leadership and organizational commitment on organizational citizenship behaviour. analysis of data for variable sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 22 transformational leadership with organizational citizenship behaviour by using the technique of obtaining the correlation coefficient r value of 0743 with the significance 0.000> 0.05. this shows that there is significant influence between transformational leadership on organizational citizenship behaviour. then for variables with organizational commitment organizational citizenship behaviour by using the technique of obtaining correlation coefficient value r = 0.936 with a significance of 0.000> 0.05. this shows that there is significant influence between the organizational commitment organizational citizenship behaviour. based fhitung 86.818 magnitude higher than the ftabel: 0,05; 2; 18 by dk v1 = 2 and v2 = 18, the score of 3.554557 or with a significance level of 0.000, which is much lower than alpha of 0.05, then ho is rejected and ha accepted in error to reject ho close to 0%, therefore it can be concluded that this regression model, namely variable transformational leadership and organizational commitment together can be used to influence organizational citizenship behaviour (ocb). 4. discussion from the analysis of the above data it can be concluded that ho is rejected and ha accepted, in other words, a significant difference between transformational leadership and organizational commitment on organizational citizenship behaviour first secondary school teachers thoriqotun najah singosari malang. means it is in accordance with the theory of organ et al. (2006), which presents a comprehensive overview of a framework to present the factors that influence ocb among the dominant factor transformational leadership and organizational commitment able to influence the emergence of organizational citizenship behavior (ocb). it can be said that a teacher has an important role and a great responsibility for the education of the nation, where teachers are required not only as educators to be able to transform the values of science, but also as moral guardians for students. but in fact there are many limitations, both limitations by teachers themselves and the limitations of what is expected to be obtained from the profession. therefore it is necessary organizational citizenship behavior of teachers to overcome these problems. organizational citizenship behaviour by organ et al. (2006: 8) is an individual behavior that is discretionary (discretionary), which do not directly and explicitly received an award from the formal reward system, and the overall (aggregate) improve the efficiency and effectiveness of organizational functions. this behavior is characterized assist or help colleagues within the organization voluntarily, avoiding conflicts of the working relationship sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 23 between members of the organization, the individual's willingness to accept anything that is set by the organization even in circumstances that are not reasonable, devotion or dedication to the work and desire to exceeding the standards of achievement in every aspect, and has a responsibility to get involved, participate, participate, and care in various activities organized by the organization. in theory organ et al. (2006) transformational leadership factors described employees are most likely to engage in ocb is in a condition to show the manager transformational leadership behaviors such as having vision, being an example, invigorating intellectual subordinates, and communicate performance expectations were high. it was clear that the attention to the emergence of ocb employee depends on the effectiveness of leadership that runs within the organization. transformational leadership principals requires the ability to communicate, especially persuasive communication. principal is able to communicate persuasively with the community will be a contributing factor in the process of transformation leadership. a principal who has the respect of transformational leadership have new ideas, new ways and methods, as well as new practices are carried out by teachers in the process of teaching and learning activities in schools. seeing the assignment of roles and demands of teachers in junior will require a leader who can provide motivation to the teachers. transformational leadership principals could motivate teachers and staff to carry out their tasks better than what they described previously. this leadership priority to provide opportunities, and or push all the elements that exist in the school to work on the basis of a value system that is sublime, so all the elements that exist in the schools will, without coercion, and participate. then to the organization's commitment contained in employee attitudes described that ocb employee depends on a positive attitude towards their work and to the organization, which includes: a) organizational commitment, in some cases the level of organizational commitment affect the incidence of ocb. the high level of organizational commitment is reflected in employee involvement in organizational problems outside assignments in general, b) job satisfaction, various studies have shown a positive relationship between job satisfaction and ocb. in multiple regression analysis test showed a significant correlation between transformational leadership and organizational commitment on organizational citizenship behaviour, transformational leadership on organizational citizenship behaviour, so did the organizational sinergi, volume 6, number2 september 2016 nur syamsudin the effect of commitments and organization transformational leadership on teacher organizational citizenship behaviour 24 commitment on organizational citizenship behaviour showed significant correlations. these results are also consistent with studies conducted by sandra devi (2010) which demonstrated an association between transformational leadership and organizational commitment on organizational citizenship behaviour. later research conducted by veronika agustini srimulyani (2012) which shows the transformational leadership has a positive and significant influence on organizational citizenship behaviour. it is estimated that there are many more variables that can affect the variable organizational citizenship behaviour. among the research conducted by ngadiman, eliyana anis dwi ratmawati (2013) could affect the organizational climate organizational citizenship behaviour. then on research conducted agustini srimulyani (2012) satisfaction with the quality of life can also affect organizational citizenship behaviour. 5. conclusion based on the analysis of data obtained using multiple linear regression analysis, it can be concluded bahwasannya a significant difference between transformational leadership and organizational commitment on organizational citizenship behavior secondary school teachers first thoriqotun najah singosari malang. from these results it can be seen that ho is rejected and ha accepted, in other words, a significant difference between transformational leadership and organizational commitment on organizational citizenship behavior secondary school teachers first thoriqotun najah singosari malang can be concluded that the regression model, namely variable transformational leadership able to bring organizational citizenship masterbehavior,then the variable organizational commitment able to bring organizational citizenship masterbehavior,as well as jointly transformational leadership and commitment to the organization can be used to display organizational citizenship behavior secondary school teachers first thoriqotun najah singosari malang. 6. recommendations relating to the research and discussion that was raised, it is suggested as follows. a. for teachers. organizational commitment shown to have a significant influence on organizational citizenship behaviour master. therefore, teachers should always try to maintain and increase its commitment to the organization that will continue to grow extra behavior effectively and efficiently for the betterment of the organization. b. for principal. principal should maintain and improve its leadership in motivating, appreciation and attention to the condition of its members 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(1983). organization citizenship behavior. its nature and antecendent. journal of applied psychology, 68,4,653-663 sugiyono, 2003, ”statistikauntukpenelitian”.cetakankeli ma, alfabeta, bandung. syaifulsagala, manajemenberbasissekolahdanmasyarakat( jakarta : nimasmultima, 2004), 53 21hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 the influence of inflation rate, interest rate, and money supply on share price lq45 hari gursida1) 1) post graduate program, pakuan university, bogor, indonesia e-mail: hari.gursida@bahana.co.id submit: 08 january 2018 , revised: 27 february 2018, accepted: 25 march 2018 abstract. the purpose of this study is to determine the influence of inflation rate, interest rate, and money supply on lq45 stock price either partially or simultaneously. this research is a quantitative research that aims to test the hypothesis. objects in this study are: inflation rate, interest rate, money supply, and stock price lq45. the research period is 2010 to 2016. the data used is quantitative data from secondary sources. the method of analysis used is multiple linear regression with hypothesis testing using t test and f test. based on the results of the study it can be concluded that: 1) the inflation rate does not affect the cspi lq45; 2) the interest rate does not affect the cspi lq45; 3) the money supply has a significant influence on cspi lq45; 4) simultaneously, the inflation rate, interest rate and money supply have a significant influence on cspi lq45. keywords: inflation rate, interest rate, money supply, and cspi lq45 i. introduction investments made by investors can be placed on real assets and financial assets. one of the most attractive financial assets for investors is in the stock market because stocks provide the higher possibility of huge returns in a short time. investing in stocks will be exposed to returns and risks. therefore, in investing in stocks must conduct an analysis of both. the profit gained by investors from investment in stock can be dividend and capital gain. dividend is the distribution of profits provided by the issuing company of the profits obtained by the company. while capital gains are the difference between the purchase price and the selling price of the stock. the stock is known for its high risk-high return characteristics, meaning that stocks are securities that offer high profit opportunities but also high risk potential. stocks allow investors to earn a large amount of returns or profits in a short period of time. however, as stock prices fluctuate, stocks can also make investors suffer huge losses in a short time. the risks faced by investors from stock ownership are: not getting a dividend because the company suffered losses and capital loss because investors sell their shares at lower prices than the purchase price. in addition to these two risks, there are still other risks, among others: bankrupt companies or liquidated, delisting, and shares in suspend. the first step when trying to conduct an economic analysis before investing is to observe macroeconomic indicators, will assist investors in predicting what changes will occur in the capital market. for example, forecasting interest rates. if interest rates increase, then investors need to make a sell decision, because stock and bond prices tend to decrease. so the ability to predict changes in macroeconomic variables also greatly assist investors in making the right investment decisions. the condition of the capital market, can not be separated from the overall assessment of the macro economic situation. in theory, capital market conditions are strongly influenced by aggregate economic performance. the relationship between capital markets and macroeconomics shows a positive 22 hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 correlation. that is, the macroeconomic situation is so great influence on the capital market. the capital market plays an important role in the indonesian economy and the jakarta composite index (cspi) can be a leading economic indicator in indonesia. the presence of capital markets in indonesia is one of the important factors in the development of the national economy, proven to have many industries and companies that use this institution as a medium to absorb investment and media to strengthen its financial position. in fact, the capital market has become a financial nerve center in today’s modern economy, and even modern economies will not be able to exist without a robust and globally-organized and well-organized capital market. [1] macro factors are factors that are outside the company, but have an effect on the increase or decrease in company performance either directly or indirectly. macroeconomic factors that can directly affect the performance of stock and company performance include: 1. domestic general interest rate, 2. inflation rate, 3. tax laws, 4. special government policies related to certain companies, 5. foreign exchange rates, 6. foreign interest rate, 7. international economic condition, 8. economic cycle, 9. economic understanding, and 10. money circulation. [2] changes in macroeconomic factors above will not immediately affect the company’s performance, but slowly in the long run. instead, stock prices will be affected instantaneously by changes in macroeconomic factors as investors react more quickly. when the macroeconomic factor changes occur, the investor will calculate both positive and negative impacts on the company’s performance over the next few years, then take the decision to buy or sell the shares in question. therefore, stock prices more quickly adjust than firm performance against changes in macroeconomic variables. a wide range of macroeconomic indicators; ie, inflation, interest rates, money supply, industrial production index, gross domestic product, crude oil price, gold price, silver price, exchange rate, foreign exchange reserve, balance of payment, foreign direct investment, foreign institutional investment (fii) budget deficit, employment rate, foreign trade, international stock markets, small saving, rbi open market operation, and so on which can affect stock price. [3] there are several indicators that affect the macro economy such as inflation, interest rate, money supply, industrial production index, gross domestic product, crude oil price, gold price, silver price, exchange rate, foreign exchange reserve, and others. the relative rise in inflation is a negative signal for investors. viewed from the consumer side, high inflation will result in consumer purchasing power (community) decreased. when viewed from the side of the company, inflation can increase revenue and corporate costs. if the increase in factor costs is higher than the increase in prices that can be enjoyed by the company, the profitability of the company will decrease. inflation has an impact on raising interest rates. increased interest rates will directly increase the interest expense. companies that have high leverage will have a very heavy impact on interest rate increases. [4] the interest rate is inversely related to the stock price. an increased interest rate will lead to an increase in interest rates imposed on an investment in a stock. in addition, increased interest rates may also cause investors to withdraw their investments in stocks, then transfer them to investments in the form of savings or deposits. money is at the heart of many macroeconomic analyzes. models of money supply and money demand can help study the determinants of long-term price levels and the causes of short-run economic fluctuations. the money supply is determined and determined by the central bank. the equation of quantity theory states that in every country, the supply of money (money supply) is equal to the demand for money that directly affects the demand for goods and services produced in a country. an increase in the money supply is associated with a business cycle expansion. an increase in the money supply will encourage increased sources of financing for the company so that the company can expand its business expansion more broadly that ultimately improve the performance of the company. increased corporate performance will stimulate investors to glance at shares of the company so that a positive impact on stock prices. [5] 23hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 in accordance with the purpose of research, the hypothesis in this study as follows. h1. inflation rate negatively affects the lq45 composite stock price index h2. the interest rate negatively affects the composite stock price index lq45 h3. the money supply has a positive effect on the composite stock price index lq45 h4. the inflation rate, the interest rate and the money supply simultaneously affect the cspi lq45 ii. theoretical review inflation inflation is a general rise in commodity prices caused by the synchronization between procurement commodity procurement programs (production, pricing, money printing, etc.) with income levels owned by the public.” [6], “inflation is a condition of an increase in price-haga prevailing in an economy on an ongoing basis. [7), inflation is an increase in the general price level of goods and services; it represents a reduction in a dollar’s purchasing power. [8], [9] the most commonly used indicator to measure inflation is the consumer price index (cpi) [10]. the cpi is a price indicator used so far to see the success of monetary policy in controlling inflation, as it can be available more quickly than other indicators, such as the free trade price index and gdp deflator. specifically, the cpi is an index used to measure the average price changes in general from a certain number of items in a certain period of time or also called inflation. the type of inflation by nature is divided into three main categories, namely as follows: 1) inflation creep i low (creeping inflation), ie inflation of less than 10% per year; 2) medium inflation (galloping inflation) is between 10-30% per year. this inflation is usually characterized by rapid and relatively large increases in prices. the inflation rate under these conditions is usually called 2 digits, for example 15%, 20%, 30%, and so on; 3) high inflation (high inflation), namely inflation of magnitude between 30-100% per year. under these conditions prices generally rise; and 4) very high inflation (hyper inflation), ie inflation marked by drastic price increases up to 4 digits (above 100%). in this condition people do not want to save money anymore, because its value drops very sharply, so it is better to be exchanged with goods. [11] it can be concluded that inflation is an economic situation that has increased the price of goods and services in general and continuous and can not be prevented in an economy. the nature of inflation is divided into three namely low inflation, less than 10% per year, medium inflation, ranging from 10% -20% per year, high inflation, ranging from 30% -100%, and inflation is very high above 100%. interest rate high interest rate is a negative signal to stock prices. in addition, an increased interest rate can also cause investors to withdraw their investments in stocks and transfer them to investments in the form of savings or deposits. the strengthening of the rupiah against the foreign currency is a positive signal for the economy experiencing inflation. the strengthening of the rupiah against foreign currencies will lower the cost of importing raw materials for production, and will lower the prevailing interest rates. [12] bi rate is the policy rate reflecting the stance or stance of monetary policy stipulated by bank indonesia and announced to the public.[13] interest rate is one of the important macroeconomic variables that is related to economic growth. generally, the interest rate is considered as the cost of capital, which means the price paid for the use of money for a period of time. the direction of interest rate movement is of primary importance to the stock market. [3] if interest rates rise, investors can transfer their money from stock to deposit. but if the interest rate increase coincided with the weakening of the rupiah exchange rate significantly, then some investors are better placed the money in the form of foreign exchange. if interest rates fall, investors are better off shifting their funds from deposits to stock investments.[14] the changes in interest rates will affect the stock price in reverse, ceteris paribus. if interest rates rise, then stock prices will fall, and vice versa if interest rates fall, stock prices will rise. [12] bi rate implies the value of deposit and banking rates. bi rate is influenced by inflation rate. the bigger the inflation rate, the bi rate will adjust that eventually the interest rate of banking credit will also be raised. the greater the value of inflation, the likelihood of credit default is greater. so the bank must increase the loan interest rate. together with that, 24 hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 with growing inflation, people’s purchasing power declines and companies are finding it increasingly difficult to increase sales and generate profits. so the source of the company’s capital will depend on loans from banks. the function of interest rates is as follows: 1) as an attraction for savers who have more funds to invest; 2) interest rates can be used as a means of control for the government against direct funds or investments in the economic sectors; 3) interest rates can be used as a monetary tool in order to control the supply and demand of money circulating in an economy. for example, the government supports the growth of a particular industry sector. if the companies of the industry will borrow funds, then the government provides a lower interest rate than other sectors; and 4) the government can manipulate the interest rate to increase production, as a result the interest rate can be used to control the rate of inflation.[15] based on the description, it can be concluded that the interest rate is the result of changes in the rate of inflation that causes bank indonesia to change the bi rate. however, the bi rate and the interest rate are not always the same. banks have their respective policies to set interest rates but must adjust to the bi rate. in essence, the reference of this study is the bi rate used to stabilize economic conditions and balance between savings offer and investment demand. if interest rates increase, interest in deposits will increase. but if interest rates decrease investment demand will increase. this resulted in stock prices declining as interest rates increased, and increased as interest rates declined. money supply money supply divided into 3, namely: (a)m1 (money supply in the narrow sense) consists of currency (paper and metal) plus money deposits that are very easily disbursed into money, ie savings by check; (b) m2 (supply of money in a broad sense) consists of m1 plus savings and time deposits in small quantities. and (c) m3 (money supply in the broader sense) consists of m2 plus large time deposits [17] the influence of the amount of money circulating in the community against the movement of stocks can be shown by various theories one of them is keynesian theory which is applied as the transmission of monetary policy namely the cost of capital channel. in keynes’s economic theory, the interest rate is the primary link between the monetary sector and the real sector. changes in the amount of money for example, will affect the interest rate. changes in interest rates will affect investment or even consumption. investment is part of aggregate expenditure. changes in total expenditure in turn will have a double effect on the balance of national income. as the money supply in the community grows so that the expectation of prices of goods and services will rise (inflation) resulting in the deposit interest rate in the economy declining. the decline in deposit interest rates has prompted people to invest in the stock market in the hope of gaining greater profits, which will have an impact on the increasing demand for stocks in the capital market. stock price index one indicator of stock price movement is the stock price index. currently, idx has several stock indexes, among others: 1) cspithat uses all companies listed as component of index calculation; 2) sectoral index using all listed companies included in each sector. currently, there are 10 sectors in bei namely agriculture, mining, basic industries, various industries, consumer goods, property, infrastructure, finance, trade and services, and manufacturing; 3) lq45 index is index consisting of 45 shares of listed company selected based on liquidity and market capitalization considerations, with predetermined criteria. review and stock replacement is done every 6 months; 4) jakarta islamic index (jii) is an index which uses 30 shares selected from shares that fall within the criteria of sharia (list of sharia securities issued by bapepam-lk) taking into account market capitalization and liquidity; 5) compass index 100 is an index consisting of 100 shares of listed companies selected based on consideration of liquidity and market capitalization, with predetermined criteria. review and stock replacement is done every 6 months; 6) business index-27. the joint venture between the indonesia stock exchange and bisnis indonesia daily launched a stock price index called bisnis-27 index, an index comprising of 27 shares of listed companies selected based on fundamental criteria, technical or liquidity of transactions and accountability and corporate governance; 7) pefindo25 index. the cooperation between the indonesia stock exchange 25hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 and rating agency pefindo launched a stock price index called pefindo25 index. this index is intended to provide additional information for investors, especially for small and medium issuers (small medium enterprises i sme). this index consists of 25 shares of listed companies selected by considering the criteria such as: total assets, return on equity (roe) and opinion of public accountants. in addition to the above criteria, the liquidity factor and the number of shares owned by the public are also considered; 8) sri-kehati index. this index is formed on the cooperation between indonesia stock exchange and indonesian biodiversity foundation (kehati). sri stands for sustainable responsible investment. this index is expected to provide additional information to investors who want to invest in emitters that perform very well in promoting sustainable enterprises, and have awareness of the environment and good corporate governance. this index consists of 25 shares of listed companies selected by considering criteria such as: total assets, price earning ratio (per) and free float; 9) main board index. using shares of listed companies included in the main board; 10) development board index. using shares of listed companies included in the development board; and 11) individual index. the stock price index of each company is listed on www.idx.co.id. composite stock price index the composite stock price index (cspi) is an index that summarizes the development of stock prices at idx (indonesia stock exchange) .cspi was first introduced on april 1, 1983 as an indicator of stock price movements listed on the stock exchange. the basic day of the index calculation is august 10, 1982 with the value of 100 with the number of issuers listed 13 issuers.the number of issuers listed on the indonesia stock exchange until december 2009 reached 398 issuers.cspi in english is also called jakarta composite index, jci, or jsx composite. [18] based on the description can be concluded that the composite stock price index is a composite index that summarizes the movement of stock prices listed on the indonesia stock exchange (idx). index lq45 the lq45 index is a calculation of 45 stocks, selected through several selection criteria. in addition to the assessment of liquidity, the selection of these shares considers market capitalization. the lq 45 index contains 45 stocks adjusted every six months (every early february and august). thus the stock contained in the index will always change. the purpose of the establishment of the lq45 index is as a complement to cspi and in particular to provide an objective and reliable means for financial analysis, investment managers, investors and other capital market observers in monitoring the movement of prices from actively traded stocks. since its launch in february 1997 the primary measure of transaction liquidity is the value of transactions in the regular market. in accordance with market developments, and to further sharpen the liquidity criterion, then since the january 2005 review, the number of trading days and the frequency of transactions entered as a measure of liquidity. to get 45 shares will be selected 15 more shares by using the criteria of transaction day in regular market, frequency of transaction in regular market and market capitalization. the method of selecting the 15 shares is: • of the remaining 30, 25 stocks are selected based on day of transaction in the regular market. • of the 25 shares will be selected 20 shares based on frequency of transaction in the regular market • of the 20 shares will be selected 15 shares based on market capitalization, so that will be obtained 45 shares for the calculation of lq45 index in addition to looking at the above mentioned liquidity and market capitalization criteria, the financial condition and growth prospects of the company will also be seen. the indonesia stock exchange regularly monitors the performance of stock components included in the lq45 index calculation. every three months are evaluated on the movement of the order of those shares. replacement of shares will be done every six months, ie in early february and august. the lq45 index was launched in february 1997. however, to obtain historical data long enough, the base day used is july 13, 1994, with an index value of 100. [19] iii. methodology research conducted is a quantitative research 26 hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 or hypothesis testing. objects in this study are the inflation rate, interest rates, money supply and cspi lq45. the research period is from 2010 to 2016. the data used are secondary data collected electronically. inflation rate and interest rate data are obtained from bank indonesia website, while money supply data is obtained from bps website. lq45 index data obtained from the investment world site. for cspi lq45 and the money supply is measured by using ln. the method of analysis used is multiple linear regression with ordinary least square (ols) model. the model in this research, namely: while : cspi = c + b1inf + b2sbi + b3ms cspi : composite stock price index lq45 c : constants b1 : coefficients and inflation b2 : the coefficient of interest rate (sbi) b3 : the coefficient of the money supply (ms) inf : inflation rate sbi : interest rate of bank indonesia ms : money supply iv. result and discussion based on the results of statistical descriptive data processing obtained the following results. table 1. descriptive statistics of research variables period 2010 2016 source: output of eviews 9 based on the output in table 1. it can be seen: 1. the mean or average value of each variable are: cspi (ln) of 8.912955, the inflation rate of 0.054402 or 5.44%, the interest rate (sbi) of cspi inf ms sbi mean median maximum minimum std. dev. skewness kurtosis jarque-bera probability sum sum sq. dev. 8.912955 8.920983 9.155470 8.509222 0.153275 -0.549721 2.794179 4.378972 0.111974 748.6883 1.949931 0.054402 0.049700 0.087900 0.027900 0.016202 0.357738 2.005318 5.254543 0.072275 4.569800 0.021787 15.24392 15.27757 15.64691 14.75418 0.252805 -0.287109 1.903976 5.358479 0.068615 1280.489 5.304545 0.066399 0.067500 0.077500 0.047500 0.007985 -0.465359 2.342247 4.546069 0.102999 5.577500 0.005292 0.066399 or 6.64% and the money supply (ms ) of 15.24392. 2. the maximum value for cspiof 9.155470 occurred in march of 2015 while the minimum value of 8.509222 occurred in february 2010. the maximum value of the inflation rate of 0.0879 or 8.79% occurred in august 2013 while the minimum value of 0.0279 or 2.79% occurred in august 2016. the maximum interest rate while the minimum value of 0.0475 occurred in october 2016. the money supply has a maximum value of 15.64691 which occurred in december 2016 while the minimum value of 14.75418 occurred in january 2010. 3. standard deviation which shows deviation of the data value from the average, the variable that has the biggest standard deviation is the money supply (ms) that is equal to 0.252805 while the variable with the least standard deviation is the interest rate (sbi) that is 0.007985. 4. skewness is a measure of asymmetry of the spread of statistical data around the mean (mean). the skewness of a symmetrical dispersion (normal distribution) is zero. positive skewness shows that the spread of the data has a long tail on the right side and negative skewness has a long tail on the left side. the variable has a positive skewness value is the inflation rate, while the other three variables have a negative skewness value. 5. kurtosis a normal distributed data is 3. if kurtosis exceeds 3, then the data distribution is said leptokurtis to normal. when kurtosis is less than 3, the data distribution is flat (platykurtic) compared to normal distributed data. the output above shows all variables have less than three kurtosis values, meaning that all data variables have a flat data distribution. the jarque bera test is one of the normality tests of the type of goodness of fit test which measures whether the skewness and the sample kurtosis correspond to the normal distribution. this test is based on the fact that the skewness and kurtosis values of the normal distribution are zero. therefore, the absolute value of this parameter can be a measure of the distribution deviation from normal. in the application value of jarque bera compared with chi-square value table on degrees of freedom 2. statistical test results with 27hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 α = 5% indicates that, the four variables in this study have probability> 0.05. thus, for these four variables receive h0, it means that the four variables have normal distributed data. based on results of data processing that obtained from the eviews output (table 2), the tests of each regression coefficient of inflation rate (inf), interest rate (sbi) and money supply (ms) on lq45 index for 2010 2016 period using t test. t test was conducted to find out whether each cspi lq45 as dependent variable significantly with 95% confidence level or error (a) of 5%. table 2. inflation rate estimation (inf), interest rate (sbi) and money supply (ms) to cspi lq45 dependent variable: ihsg method: least squares date: 12/30/17 time: 18:47 sample: 2010m01 2016m12 included observations: 84 source: output of eviews 9 estimation equation: cspi = c(1) + c(2)*inf + c(3)*sbi + c(4)*ms substituted coefficients: cspi = 0.590548802166 + 0.899248784532*inf 1.45070782651*sbi + 0.549059092343*ms 1. the influence of inflation rate on cspi lq45 based on t test, inflation rate variable (inf) has prob.0.1573> 0.05, it was concluded that the inflation rate variables did not significantly affect the cspi lq45 in the period 2010-2015. in addition, the variable rate of inflation has a positive coefficient of 0.899249. thus, this result is not in line with the hypothesis that the inflation rate negatively affect the cspi lq45. the variable coefficient of the variable c inf ms r-squared adjusted r-squared s.e. of regression sum squared resid log likelihood f-statistic prob(f-statistic) 0.800668 0.793193 0.069703 0.388684 106.5930 107.1135 0.000000 8.912955 0.153275 -2.442691 -2.326938 -2.396159 0.398126 mean dependent var s.d. dependent var akaike info criterion schwarz criterion hannan-quinn criter. durbin-watson stat coefficient 0.590549 0.899249 0.549059 std. error 0.465417 0.629963 0.031335 t-statistic 1.268860 1.427463 17.52248 prob. 0.2082 0.1573 0.0000 inflation rate of 0.899249 or 89.9% indicates that if the inflation rate rises as much as 1% then the cspi lq45 will increase by 89.9%. 2. the influence of interest rate on cspi lq45 based on the t test, the interest rate variable (sbi) has prob. 0.2705> 0.05, it is concluded that the interest rate variable has no significant effect on cspi lq45 in period 2010-2015. in addition, interest rate variable has negative coefficient which is equal to -1.450708. thus, this result is in line with the hypothesis that the interest rate has a negative effect on cspi lq45. the interest rate variable coefficient of -1.450708 or -145% indicates that if the interest rate rises as high as 1% then the cspi lq45 will decrease by 145%. 3. the influence of money supply on cspi lq45 based on t test, the money supply (ms) variable has prob. 0.0000 <0.05, it is concluded that the money supply variables significantly influence the cspi lq45 in the period 2010-2015. in addition, the variable money supply has a positive coefficient of 0.549059. thus, this result is in line with the hypothesis that the money supply has a positive effect on cspi lq45. the coefficient of the money supply in the amount of 0.549059 or 55% indicates that if the money supply rises as high as 1% then cspi lq45 will rise by 55%. 4. simultaneous regression model estimation based on the partial regression coefficient test by using t test, from three independent variables, namely interest rate (inf), interest rate (sbi) and money supply (ms) which is considered to have an effect on cspi lq45 during 2010 2016 which has significant effect only variable of money supply. as for the equation test for all independent variables included in the regression model using the f test. f test results as shown in table 2. show prob. fstatistics of 0.000000 <0.05 which means h0 is rejected. this indicates that all independent variables consisting of inflation rate (inf), interest rate (sbi) and money supply (ms) simultaneously affect the cspi lq45 during the period of study 2010 2016. for the goodness-of-fit test measured by the termination coefficient (r2) denotes the number of 0.800668, which means that the variation in the upward and downward movement of cspi lq45 28 hari gursida1 the influence of inflation rate, interest rate, and money supply on share price lq45 sinergi, volume 8 number 1 march 2018 can be explained by the inflation rate (inf), the interest rate (sbi) and the money supply (ms ) of 80.07%, while the rest, of 19.93% can be explained by other variables outside of this research model. for the adjusted termination coefficient (r2 adjusted) yielded a number of 0.793193 which means that after considering the degree of freedom of the model used, all independent variables used in this study can explain the changes occurring in the lq45 index listed on the indonesia stock exchange during 2010 -2016 for 79.32%. v. conclusion based on the research result, it can be concluded that: 1) the inflation rate during the period of 20102016 did not affect the cspi lq45; 2) the interest rate during the 20102016 study period did not affect the cspi lq45, but had the opposite direction to the cspi lq45, this was in accordance with the theory; 3) the money supply has a significant influence and direction in the direction of cspi lq45, this is in accordance with the theory. 4) simultaneously, the inflation rate, interest rate and money supply have a significant influence on cspi lq45. the results also show that for the money supply when viewed from the lowest value that occurred in january 2010 as the initial period of research while the highest value occurred in december 2016 as the final period of the study. this shows that the money supply every time is always increasing, which means the economy is increasing. acknowledgment i would like to express my special thanks of gratitude to pakuan university that gave me the opportunity to do this research. secondly i would also like to thank the indonesia stock exchange (bei) on data provided and used in this research (www.idx.co.id) references [1] widoatmodjo, s. 2015. pengetahuan pasar modal: untuk konteks indonesia. jakarta: pt elex media komputindo. [2] samsul.m. 2006. pasar modal dan manajemen portofolio. surabaya: erlangga. [3] sahu, tarak nath. 2015. macroeconomic variables and security prices in india during the liberalized period. new york: palgrave macmillan. [4] sunariyah. 2006. pengantar pengetahuan pasar modal. edisi kelima. yogyakarta: upp stim ykpn [5] manurung, a. 1996. pengaruh variabel makro ekonomi, investor, dan bursa yang telah maju terhadap indeks bursa efek jakarta. tesis magister ekonomi, ui. [6] putong, i. 2015. pengantar ekonomi makro. jakarta: mitra wacana media. [7] karya, d. dan syamsuddin, s.. 2016. makro ekonomi: pengantar untuk manajemen. jakarta: pt rajagrafindo persada. [8] fuguitt, diana and shanton j. wilcox. 1999. cost-benefit analysis for public sector decision makers, westport cn, quorum books [9] bodie z., kane a., and marcus a.z. 2014. investment, 10th edition. new york: mcgrawhill. [10] ali arifin. 2004. membaca saham, yogyakarta: andi. [11] idris, a. 2016. ekonomi publik. yogyakarta: deepublish. [12] eduardus tandelilin. 2010. portofolio dan investasi teori dan aplikasi. edisi pertama. kanisius: yogyakarta tandelilin (2010, 343) [13] liembono, rh. 2014. analisis fundamental. jakarta: bei. [14] tanuwidjaja, w.. 2006. siasat investasi cerdik: bagi investor pemula. yogyakarta: pt buku kita. [15] sunariyah. 2010. pengantar pengetahuan pasar modal. edisi ke-6. yogyakarta: uppamp ykpn [16] krugman, paul & obstfeld, maurice. 1996. ekonomi internasional: teori dan kebijakan; moneter. jakarta: pt. raja grafindo persada [17] rosyidi, s. 1996. pengantar teori ekonomi; pendekatan kepada teori ekonomi mikro dan makro. jakarta: pt. raja grafindo persada. [18] widoatmodjo, s. 2015. pengetahuan pasar modal: untuk konteks indonesia. jakarta: pt elex media komputindo. [19] desmond wira http://www.juruscuan.com 1 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang model of internal quality assurance system (spmi) in stkip singkawang andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 1), 2), 3) sekolah tinggi keguruan dan ilmu pendidikan (stkip) singkawang singkawang, indonesia 4) national university of kaohsiung, taiwan 5) universitas universal, batam, indonesia 6) universitas kutai kertanegara, kalimantan timur, indonesia e-mail:andimursidi@hotmail.com submit: 16 january 2018 , revised: 22 january 2018, accepted: 23 march 2018 abstract. this study aims to determine the model of the internal quality assurance system applied in stkip singkawang. this study is a qualitative research using case study as a research method. the study was conducted in stkip singkawang with research subjects stkip singkawang quality assurance agency. the technique is done to collect data consist of interviews and observations. the results showed (1) an internal quality assurance system stkip singkawang applying standard 41; and 2) quality assurance management model applied in stkip singkawang is pdca model consisting of four main components, namely plan, do, check and action. keywords: study analysis; model, internal quality assurance system. i. introduction the demand for college graduates in the age of globalization increases with human resource competition is getting tighter [1]. colleges as educational workers responsible for the resulting quality of its graduates. act no. 12 of 2012 on higher education also stressed the importance of quality assurance in a university. therefore we need a system that can control the execution of the process of improving the quality of a university in a planned and sustainable [2]. internal quality assurance system is a system that serves to plan, implement and evaluate quality assurance at a university. quality assurance in higher education intended that the competencies of graduates produced in accordance with the growing needs of society [3]. in addition, an increase in the quality of a higher education can also increase public confidence in the performance and capabilities of the college graduates. implementation of internal quality assurance system of the university does not rely on the government. the government only provides guidelines for the implementation of quality assurance system for colleges and universities further independently implement a quality assurance system based on the vision, mission and conditions in universities. internal quality assurance system stkip singkawang implemented by the quality assurance agency stkip singkawang in charge of planning, implementing and evaluating a comprehensive system. the implementation of quality assurance system in stkip singkawang refer to the guidelines for quality assurance (quality assurance) higher education [4]. implementation of the quality assurance system in stkip singkawang is the role of leadership and commitment stkip singkawang all individuals who will implement this system [5]. quality assurance system of the university implementing the standards and quality assurance management models that differ between each college. this is due to the situation in each of the different colleges so that the effect on the standards established quality assurance. this study aims to determine the standards and quality assurance management model applied by stkip singkawang in the framework of continuous quality improvement in 2 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang stkip singkawang. the results of this study can be a reference for universities that have not implemented a quality assurance system that is expected to produce graduates according to the needs of the community. ii. research method this study is a qualitative study using the case study method. in this study, the cases examined are standards and models applied by stkip singkawang to improve the quality of higher education. the research was conducted at the institute of quality assurance stkip singkawang. this study was conducted in january 2017 through april 2017. the subject of this research is all part of the quality assurance agency together with the whole of the individuals involved in the internal quality assurance activities stkip singkawang. the object of this research standards and models of quality assurance implemented by the quality assurance agency stkip singkawang. the data collected in this study a qualitative data derived from the data collecting use data collection techniques such as interviews and observation. data collection instrument in this study consisted of interviews and observation guidelines. implementation of the interview to get information related to the quality assurance standards and models used by stkip singkawang. interviews were conducted with the chairman, secretary and coordinator of quality assurance agencies stkip part singkawang. moreover, it also made observations on the quality assurance agency stkip singkawang to know the process of implementing the standards and quality assurance models. this study uses a degree of trust with triangulation techniques to improve and determine the validity of the data, both on the method of data collection and data sources. triangulation in this research is conducted through checking the data against data collection methods, namely the interview data in the form of interview transcripts and observation results data in the form of field notes. triangulation is also done through the examination of data to resources in the interview and to compare the results of interviews of a chairman, secretary and coordinator of the field of quality assurance agencies stkip singkawang. in addition, to ensure the validity of the interview data do confirm the results of interviews with informants to ensure the correctness of the interview. inductive analysis used in this study to draw any conclusions on the points derived from data collected through interviews and observations that can then be withdrawn as general conclusions. iii. result and discussion several universities in west kalimantan has implemented a quality assurance system. stkip singkawang as one of the colleges in west kalimantan also implement standards for internal quality assurance as many as 41 standard consisting of national standard of higher education consists of: standards of 1) graduate competency standards; 2) learning content standards;3) standards of learning process;4) learning assessment standards; 5) lecturer standards and educator 6) infrastructure standards of learning; 7) learning management standards; and 8) financing standards of learning. national standards research consist of: 9) standards result of the research; 10) content standards research; 11) standard process research; 12) research assessment standards; 13) researchers standards; 14) infrastructure standards research; 15) research management standards; and 16) the funding standard and research funding. national standard community services consist of: 17) standards results of community services; 18) content standards community services; 19) standard process community services; 20) community services assessment standards; 21) implementing standard community services; 22) infrastructure standards community services; 23) standard management of community services; and 24) standards funding and financing community services. internal standards stkip singkawang consist of 25) standard supervision of students, 26) standardized resource students and alumni, 27) the standard of cooperation, 28) standardized admissions new, 29) standardized administration of mailing, 30) standard academic atmosphere, 31) standards organizations of student affairs, 32) standards safety and order, 33) the standard of care for persons with disabilities, 34) standards of attainment base of entrepreneurship, 35) standardized system of governance, 36) management standards of education, 37) standard of the work program of structural officials, 38) the standard staffing and 39) standard internal quality assurance system, 40) standard of ceremonial, 41) 3 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang standar of journal management. implementation of internal quality assurance system in singkawang stkip covering the entire course. the stages in the implementation of internal quality assurance system in stkip singkawang, is as follows. a. internal quality assurance system socialization socialization is an early stage in implementing the system of higher education quality assurance in stkip singkawang. emphasis on the importance of the implementation of the internal quality assurance system in stkip singkawang done at this stage. activities of internal quality assurance system is a mandate of pp no. 9 of 2005 on national education standards in addition, morally higher education institutions must always maintain and improve the quality of graduates produced. it is intended that graduates produced is able to meet the demands of stakeholders and be able to compete globally. b. providing guidance for the management department of the implementation of the system for internal quality assurance in stkip singkawang on each study program need to be given guidance by the institution of quality assurance stkip singkawang in terms of understanding the meaning of the quality assurance systems of internal and grains that exist in the standard system of internal quality assurance that will facilitate the making academic documents and document quality. the role of quality assurance agencies is very important in terms of building good documentation, because the board does not have a department of knowledge, understanding, and the same seriousness in the documentation of all activities of planning, implementation, monitoring and evaluation in the study program. c. socialization internal quality audit and selfevaluation instrument courses to prodi and auditors. in the third stage of the implementation of internal quality assurance system in stkip singkawang is socialization internal quality audit and self-evaluation instrument to prodi and auditors. it aims to build the same perception and commitment between prodi and auditors in establishing a quality assurance system in prodi. stkip quality assurance institution singkawang just preparing the system, instruments and facilitate the implementation of internal quality assurance system in stkip singkawang. d. charging study program self-evaluation by the head of department of quality assurance agencies assisted. prior to the audit, prodi required to fill out a self-evaluation study programs that have been designed and prepared by quality assurance agencies stkip singkawang. institutions of quality assurance will help in filling out a self-evaluation study programs of courses and descriptions of self-evaluation. materials and documents that have been loaded into the study program self-evaluation and selfevaluation description that will be used by the auditor as a reference for the audit prodi. e. iimplementation of the internal quality the of study programs audited by three auditors appointed by the quality assurance agency stkip singkawang. each auditor has a duty respectively in each department of the audit based on the standard. the findings of the three auditors will be discussed and discussed in advance to reach a mutual agreement before it is submitted to the chairman of the study program. f. remedial measures to improve the quality of study programs. based on the findings of the audit results can be categorized into heavy, medium and light to be further improvements by the chairman of the study program. the study program greatly benefited and helped with the audit because based on the audit work program can be structured in order to conduct quality improvement departement. g. management review meeting to talk about improving the quality of study programs. forums are used to discuss the follow up on the findings in the study program is a management review meeting at the department level. in this management 4 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang review meeting will be discussed one by one the findings obtained. priorities to improve the follow-up study program is based on the severity of the findings. if there are findings were classified as severe this finding will be a top priority in improving the quality of study programs. the findings of a relatively light can be seen the urgency, which is urgent and potentially interfere with the quality of study programs. the findings are observational be immediately addressed to avoid protracted and may interfere with the quality improvements in other sectors. h. university-level management review meeting. if the findings obtained in the study program cannot be resolved at the department level, will be brought to the university level to be discussed during management review meetings university. the findings are followed up by the university normally general nature covering all existing study programs at universities, for example: policies on the availability of lecturers or professors, standards passing grade for new admissions, etc. internal audit needs to be conducted to determine the internal quality assurance system implementation has gone well or not needs to be done. this audit is very important because it is an important part of the quality assurance cycle, ranging up to university level study program [6]. there are several quality guaranteed by stkip singkawang namely: 1. quality research and publications a) quality standards publications 1. success of the publication can be determined from the following indicators: • number of publications in book form, proceedings or in national and international journals. • accreditation level journal that is managed by the department / institution. • setting standards adopted in the following manner: • the researcher who gained national or international research grants are required to publish the results of their research at a seminar or accredited journals both nationally and internationally, depending on the amount of research funds are managed. proof of publication is presondition for researchers to submit research grant proposals next. • researchers may also conduct information dissemination on the network system and the mass media. • universities can apply a variety of conveniences for each manuscript accepted for publication. universities should also be committed to provide expertise related to the method of writing, language and help repair publication costs if the publishers charge for publication. • publications must follow the rules of scientific writing in accordance with the provisions of the issuer. universities need to encourage researchers to actively write. for beginners necessary scientific writing training held at the university level on a regular basis. b) research quality standards there are several research quality standards applied by stkip singkawang include: 1). standard monitoring and evaluation monitoring and internal evaluation conducted to determine whether the standards set have been met and need to be improved. 2). documentation standard process research researches an ongoing process therefore necessary standardization documents of each unit of activity. these documents include: • the research proposal. • document the progress of research activities. • standard operation procedures (sop) research. • salvage procedure when disaster strikes, earthquakes, fires and accidents. 3). standard assessment results determination of the quality of research can use the following indicators: • the published results through seminars / journal reputed national / international. • results of the study are used to solve problems in the community, develop teaching materials lectures and community service. • researchers obtain patents / copyrights on the 5 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang findings and his work. • researchers obtain awards for his research work, either at national or international level [7] 2. academic quality management academic quality in singkawang stkip aims to meet the demand and the satisfaction of the stakeholders in the academic service organized by stkip singkawang. implementation of quality standards of academic quality, consisting of: a. the quality standards of planning in academic quality b. implementation of quality standards in academic quality c. the quality standards of academic quality control quality management stkip singkawang using pdca model that consists of four basic components, namely plan (planning), do (execution), check (evaluation), action (correction). this process will be achieved through a continuous quality improvement condition (continuous quality improvement) [8]. a wellknown model for continuous process improvement is the deming cycle. this pdca (plandocheckact) cycle consist of four activites that are repeated to achieve everhigher level of quality. in the pdca cycle, a change is first planned and then implemented [9]. the widely used ‘plan, do, check, act’ model, represented by four phases: leadership and vision; planning; delivery; monitor, review and report. this enables alignment to established management processes, systems and standards [10]. pdca cycle consist of design plan, implement plan (do), monitor progress (check), act (evaluate findings). plan: plan what you want to accomplish over a period of time and what you might do or need to get there. do: implement a potential solution. check: check whether changes are achieving the desired results or not. act to get the greatest benefits from the changes [11]. leaders of stkip singkawang have to do supervision in order to promote the smooth implementation of the activities that have been implemented. leaders also need to know or monitor the progress of the activities that have been implemented [12]. pdca has been practiced as a main competitive advantage and continuous problem solving approach by many successful companies all over the world [13]. regardless of methodology, approach, each organization will certainly need to use a proper selection for implementing a quality management. quality assurance management model applied in stkip singkawang is pdca. using the pdca cycle meanas continously looking for better methods of improvement [14]. the pdca cycle has been introduced and all identified functions are categorized into the four distinct phases of the cycle (plandocheckaction (figure 1) [13] fig 1 pdca cycle the pdca cycle is more than just a tool; it is a concept of continuous improvement processes. the most important aspect of pdca lies in the “act” stage after the completion of a project when the cycle starts again for the further improvement [14]. pdca cycle has been extensively used in the development and deployment of quality policies. fig 2 pdca cycle in continuous improvement process this paper is there fore an attempt to extend the concept of continuous process improvement competencies of graduates produced. more over, the pdca cycle would come across for improvement quality assurance in education. the purpose of quality assurance is to improve the quality of higher 6 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang education continuously, to realize the vision and mission of the higher education, and to meet the needs of stakeholders through the implementation of tridharma . efforts were made stkip singkawang to carry out internal quality assurance system that is: a. make the preparation of technical and / or administrative standards in accordance with the contents. b. socialize standard content to the entire faculty, non-faculty employees and students, periodically and consistently. c. prepare and write a written document such as: work procedures or sops, work instructions, or the like in accordance with standard content. d. implement the provision of education activities using standards as a benchmark of achievement. e. conducting internal quality audits on a regular basis in every study program. f. the findings of the audit process prodi submitted to the chairman of the department of management review meetings to be remedied and work program related to quality improvement can be made. g. the findings cannot be resolved in the management review meeting majors delivered on university management review meeting to be followed in order to improve and enhance the quality of higher education [15] as for the functions of internal quality assurance system stkip singkawang are: 1. to establish and develop standards and implement the guidelines as a reference for quality assurance in education, research and community service. based permendikbud no. 49 year 2014 on national standards for higher education of the directorate general of higher education, ministry of education [16], and stkip singkawang prepare and establish 41 (fourty-one) internal quality assurance system standards. national standards for higher education (snpt) is an integral part in the implementation of tridharma university. snpt consist of: a. standard of national education; b. standard of national standards research; c. standard of national standards community service. national standard of higher education consists of: 1. standard of graduate competency; 2. standard of learning content; 3. standard of learning process; 4. standard of learning assessment; 5. standard of lecturer and staff; 6. standard of infrastructure of learning; 7. standard of learning management; 8. standard of financing of learning. national standards research consist of: 9. standard result of the research; 10. standard of content research; 11. standard of process research; 12. standard of research assessment; 13. standard of researchers; 14. standard of infrastructure research; 15. standard of research management; 16. standard of funding and research funding national standard community services consist of: 17. standard of results of community services; 18. standard of content community services; 19. standard of process community services; 20. standard of community services assessment; 21. standard of implementing standard community; 22. standard of infrastructure community services; 23. standard of management of community services; and 24. standard of funding and financing community services. internal standards stkip singkawang: 25. standard of supervision of students; 26. standard of resource students and alumni 27. standard of cooperation 28. standard of admissions new 29. standard of administration of mailing 30. standard of academic atmosphere 31. standard of organizations of student affairs 32. standard of safety and order 33. standard of care for persons with disabilities 34. standard of attainment base of entrepreneurship 35. standard of system of governance 36. standard of management of education 37. standard of the work program of structural officials 38. standard of staffing 39. standard of internal quality assurance system 7 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang 40. standard of ceremonial 41. standard of journal management system implementation of these standards requires the support of all the components in a good college chairman, vice chairman, faculty, staff and students. awareness of all parties of the importance of the implementation of the standards that have been set will improve the quality produced by the college. 2. organize the implementation of quality assurance in education, research and community services, as well as the academic administration of the college level to the program of study. implementation through quality assurance agencies that make up the stkip singkawang internal quality audit team and in charge of auditing every prodi. the audit results presented in the study program-level management review meeting to determine improvements that should be made by prodi. furthermore, the findings cannot be resolved by the study program management review meeting brought to the university level. 3. assess and report the results of the implementation of quality assurance in a cycle in all units and ranks in stkip singkawang. singkawang stkip quality assurance institution hosted a workshop on the evaluation of the internal quality assurance system. it aims to disseminate the results of the evaluation conducted by a team of internal quality audits. 4. delivering suggestions for improvements to the leadership of other universities as input for quality improvement on an ongoing basis. through university-level management review meeting quality assurance agencies stkip singkawang present the results of internal audits are conducted to the rector and other leaders that aims to improve the quality of higher education [17]. internal quality assurance system to be early to see the quality of academic administration that can be managed by a quality assurance unit in each study program. a culture of quality in each study program will result in improved quality as academic quality improvement measures carried out continuously by each study program. strategies for self-evaluation as a true picture on any study program will be used as a reflection of improvements through follow-up plan can be formulated together in a management review meeting by the entire chairman prodi, head of the college, the quality assurance unit by engaging the academic senate [18] the commitment of students in the running system of internal quality assurance one of which can be seen through the provision of feedback of academic activities by giving input through both online and offline against professors that administer the courses related to the implementation of academic activities and competencies that should be generated by the students so as to achieve a passing grade which has been set by the college. the feedback mechanisms, facilitated by the quality assurance agency stkip singkawang so as to facilitate the audit process because the data has been collected. in addition, the work done in the students reached the standard of competence for graduates also show commitment to perform an internal quality assurance system that will affect the satisfaction of the stakeholders of the quality of graduates produced by stkip singkawang. quality document systems stkip singkawang internal quality assurance available and have been used over the last two years. quality document consists of the quality manual, quality procedures and work instructions. quality procedures and work instructions are prepared and implemented in each unit / work unit. quality documents stipulated by stkip singkawang serves as a guide for management control and improve the quality of higher education. internal quality assurance system in stkip singkawang coordinated by the quality assurance agencies that are at the university level. institutions of quality assurance stkip singkawang charge of planning, implementing and evaluating the quality assurance system comprehensively in stkip singkawang, making the devices required for the implementation of quality assurance, control the implementation of quality assurance system, carry out auditing and evaluation of quality assurance, and reporting on the implementation of quality assurance periodically. in the development, the task of institution quality assurance stkip singkawang developed into a plan, implement, and evaluate the implementation of the system of higher education quality assurance, implement internal quality audit department received a report of internal quality audit courses from the majors, evaluate the implementation of internal quality audits prodi in the 8 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang majors and submit chairman of the audit report to stkip singkawang forum working meeting of the university for further action. implementation of internal quality assurance system based on two documents, namely documents as well as the quality of their academic papers. academic documents compiled at the university level, department or program of study. academic documents that are at the university and department consists of academic policy documents, academic standards and academic regulations. academic document-level study program consists of specifications course, curriculum, curriculum maps, and plan learning programs and activities of the semester. quality document consists of the quality manual at the college level, quality procedures, and work instructions. quality procedures and work instructions developed and implemented in each unit / work unit. implementation of internal quality assurance system in accordance with one singkawang stkip cycle internal quality assurance system in stkip singkawang starting with the establishment of standards, implementation, monitoring, evaluation, internal audit, correction formula, and the establishment of new standards. by default, this time stkip ban pt singkawang applying standards as a minimum standard courses and university management. singkawang stkip in the future will apply a higher minimum standard is based on iso quality standards [19 iv. conclusions stkip singkawang implement internal quality assurance standards consisting of 41 standards. internal quality assurance in stkip singkawang covering the entire course. the functions of internal quality assurance system stkip singkawang is to prepare and develop standards and guidelines as a reference for implementing quality assurance in education, research and community service. model of quality assurance applied by stkip singkawang is composed of pdca plan (planning), do (execution), check (evaluation), action (correction). implementation of these standards requires the support of all the components that exist in universities both management and all individuals who will carry out the internal quality assurance system. awareness of all parties of the importance of the implementation of the standards that have been set will improve the quality produced by the college. references [1] c. campbell and m. van der wende. international initiatives and trends in quality assurance for european higher education. enqa occasional paper, 2000. the [2] republic of indonesia. law no. 12 of 2012, higher education, 2012. [3] qureshi mi, mn bhatti, am rasli, m.yasir and k. zaman. “the delphi method for internationalization of higher education in pakistan: integrating theory of constraints and quality function deployment.” mediterranean journal of socialsciences,vol.5, pp. 2702-2710, 2014. [4] directorate general of higher educatns, ion. guidelines for quality assurance (quality assurance) higher education. jakarta: directorate general of higher education, 2003. [5] r.hedwig and g. polla. model quality assurance system and process implementation in highereducation.yogyakarta: graha science, 2006. [6] quality assurance office of the university of gadjahmada. “ugm internal quality assurance system (history, implementation and development)”. internet: http://bpmi.unp.ac.id/ sites/default/files/download/spmi%20ugm. pdf may. 21, 2012 [apr. 20, 2017]. [7] quality assurance center.”qualitymanual ub’s research and publications.” internet: http://www.oldsite.ub.ac.id/en/1_about/pjm/ download/01%20sistem%20penjaminan%20 mutu%20akademik%20(spma)/05 % 20mm_ penelitian-publikasi.pdf2007 [apr. 2, 2017]. [8] academic quality assurance agency for the university of indonesia. “academic quality assurance guidelines university of indonesia.” internet: http://repository.ui.ac.id/contents/kole ksi/1/7e8b6564436551734b0ac004f6f449081a1 694bb.pdf,[apr. 20, 2017]. [9] riikha ahlgren. software patterns, organizational learning and sofware process improvement. sini tuikka: publishong unit university library of jyvaskyla. [10] jonker, jan & marco de witte. management 9 sinergi, volume 8 number 1 march 2018 andi mursidi1, soeharto2, rini setyorini3, i-hsien ting4, didi sundiman5, sabran6 model of internal quality assurance system (spmi) in stkip singkawang models for corporate social responsibiliy. internet: springeronline.com [11] hawai department of education: office of curriculum, instruction and student support. internet: http:// wetsandserver.com/hcpsv3_staging/files/ p d c a s t a t e c o m p l e x f i n a l 0 2 2 8 2 0 1 2 w l _ pdmaterials_79.pdf [12] mursidi, andi. best practice strategic management of educational development in college of teacher training and education singkawang. international journal of learning and teaching vol. 3, no. 1, march 2017. internet:https://www.researchgate.net/profile/ a n d i _ m u r s i d i / p u b l i c a t i o n / 3 2 0 3 0 3 4 6 8 _ best_practice_strategic_management_of_ e d u c a t i o n a l _ d e v e l o p m e n t _ i n _ c o l l e g e _ o f _ te a c h e r _ t r a i n i n g _ a n d _ e d u c a t i o n _ singkawang/links/5a1e2faf458515a4c3d1d5d6/ b e s t p r a c t i c e s t r a t e g i c m a n a g e m e n t o f educational-development-in-college-ofteacher-training-and-education-singkawang. pdf [13] gidey e*, jilcha k, beshah b and kitaw d. the plan-do-check-act cycle of value addition. gidey et al., ind eng manage 2014, 3:1. https://www.omicsonline.org/openaccess/the-plandocheckact-cycle-of-valueaddition-2169-0316.1000124.pdf [14] m. sokovic a,*, d. pavletic b, k. kern pipan. quality improvement methodologies – pdca cycle, radar matrix, dmaic and dfss. journal of achievement in materials and manufacturing engineering volume 43 issue november 2010. http://jamme.acmsse.h2.pl/ papers_vol43_1/43155.pdf [15] stkip singkawang. “internal quality assurance system manual stkip singkawang”, 2013. 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[19] hartono gf, et. al. implementation guidelines for qualityassurance, yogyakarta: gadjahmadauniverssitas 2007. 29susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 universitas dr soetomo surabaya, indonesia e-mail: susanto_ega@yahoo.com submit: 17 january 2018 , revised: 17 january 2018, accepted: 25 march 2018 i. introduction tourism is one of the important industrial sectors and has a great potential and opportunities for development. the development of tourism in developing countries including indonesia are expected to help equalize economic opportunities as well as hamper the population to migrate to the tourist sites of the city. the development of tourism is also expected to improve the economy so as to improve the welfare of the tourism which developed (evita, sirtha, & sunarta, 2012). the development of tourism in indonesia in recent years has entered into a new order. indonesia’s tourism development trend is the development of location-based tourism model of rural tourism (triambodo & damanik, 2015). development of rural tourism locations in indonesia began to appear in 2007 when the indonesian government launched a program of visit indonesia as an effort to promote tourism in indonesia for local and foreign tourists. based on data from the ministry of culture and tourism, up to 2012, there were 978 locations developed tourist village in indonesia. the amount increased significantly compared to 2009 when there were 144 tourist sites for tourism purposes. development of tourist sites is strongly influenced by the institutional aspects, objects and attractions, and tourist infrastructure abstract. this study aims to determine the effect of leadership transformational to organizational citizenship behavior and organizational commitment to mediation and job satisfaction of group tourism awareness (pokdarwis) underwater bangsring banyuwangi. the respondents numbered 100 members travel awareness group (pokdarwis) underwater bangsring banyuwangi with the status of permanent members and non-permanent members which have a minimum term of three years. the sampling technique using proportional random sampling, and analysis techniques using structural equation modeling (sem) with the help of amos version 21. the program will measure and model analysis proving the hypothesis by testing standardized regression weight on the output table amos program. if there the value estimate of the indicator an indicator that has a significance level of ≤ 0.05, the indicator can not describe constructs. the results showed that transformational leadership has a positive and significant effect on organizational citizenship behavior, transformational leadership has a positive effect but no significant effect on job satisfaction, transformational leadership has positive and significant impact on organizational commitment, job satisfaction positive and significant effect on organizational citizenship behavior, job satisfaction affects positive but not significant to organizational commitment. managerial implications of this research are the group leader should evaluate and improve the implementation of transformational leadership to improve the behavior of organizational citizenship behavior and organizational commitment of the members of the travel awareness group (pokdarwis) underwater bangsring banyuwangi. keywords : transformational leadership, job satisfaction, organizational citizenship behavior,organizational commitment. 30 susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 (sastrayuda, 2010). banyuwangi currently has dozens of tourist destinations spread across 25 districts, one of the sights that today many tourist visits within the country or from abroad are bangsring underwater floating house in the village bangsring, wongsorejo subdistrict, banyuwangi. points-based tourism and marine conservation society pure self is managed by travel awareness group (pokdarwis) floating house underwater bangsring that institutionally already incorporated through the minister of law and human rights of the republic of indonesia number 0074621. ah.01.07.tahun ahu-2016. in the development of tourist attractions, bangsring underwater certainly affected by the organizational aspects, objects and attractions, and tourist infrastructure. institutional or organizational aspects are one important component in the success of tourism (inskeep, 1991). in the institutional aspect, the necessary capacity of the community in the form of organizations and individuals as the main actors in the development of the tourist sites for the implementation of the strategy and program development of tourist travel locations. lack of human resource capacity in the implementation of strategies and development programs tourism awareness group (pokdarwis) underwater bangsring floating house continues to be a problem as not finished. this research examines and analyzes the direct influence of transformational leadership on ocb, the direct influence of transformational leadership on organizational commitment, as well as the indirect effect mediated by job satisfaction in the context of the organization, the research subjects were members awareness group travel (pokdarwis ) floating house bangsring underwater banyuwangi. based on the problems described above, then formulated the following research problem: 1. is transformational leadership significantly influence ocb travel awareness group members bangsring underwater floating house banyuwangi? 2. is transformational leadership have a significant effect on job satisfaction travel awareness group members bangsring underwater floating house banyuwangi? 3. is transformational leadership significantly influence the work commitment of travel awareness group members bangsring underwater floating house banyuwangi? 4. is job satisfaction significantly influence ocb travel awareness group members bangsring underwater floating house banyuwangi? 5. is job satisfaction significantly influence organizational commitment awareness group member floating house bangsring underwater tourism banyuwangi? ii. theoretical framework transformational leadership the use diverse approaches or perspectives on leadership, in addition, to give birth definitions diverse leadership also spawned a variety of leadership theory anyway. each one gave birth to a wide range of leadership theory. suryadana (2015: 94) defines leadership as a process involving the effect occurs within a group and it involves achieving goals. khuntia and beacon (2004) states that all theories on leadership emphasizes on three ideas are built either together or separately: (1) rationality, behavior, and personality of the leader; (2) rationality, behavior, and personality followers; and (3) factors related to the implementation of the tasks, organizational climate, and culture. according to rival and mulyadi (2012: 133), leadership basically: involving others, involve the uneven distribution of power between the leaders and members of the group, moving the ability to use various forms of power to influence the behavior of subordinates, and concerns the value. four common properties that have an influence on the success of the organization’s leadership, namely: (1) intelligence, (2) maturity, (3) self-motivation and encouragement of achievement, and (4) the attitude of human relationships. asgari et al. (2008) stated that transformational leaders motivate followers by inviting followers to internalize and prioritize the larger common interest above personal interests. yukl (2010: 320) suggests that transformational leaders make followers to become more aware of the importance and value of the work and persuade followers to not put the interests of themselves for the sake of the organization. the leaders develop the skills and confidence to prepare their followers to get more responsibility within an organization 31susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 giving authority. the leaders provide support and encouragement as needed to maintain the enthusiasm and effort to face the obstacles, difficulties, and fatigue. with transformational leadership, the followers feel the trust, admiration, loyalty, and respect for the leader, and they are motivated to do more than what was originally expected of them. transformational leaders true that when they give you an awareness of what is true, good, beautiful, when they helped elevate the needs of subordinates in achieving what they want and in actualizing leaders assist in reaching a maturity level higher moral, and when the leaders were able to mobilize the troops to release their own interests for the good of the group, organization, or community (sopiah, 2008: 295). rival and mulyadi (2012: 132) argues that transformational leaders motivate subordinates to do better with what is expected to subordinate it to increase the value assignment, by encouraging subordinates to sacrifice self-interest for the sake of the organization coupled with raising the level of needs of subordinates to rate better. job satisfaction job satisfaction is an emotional state that is happy or positive emotions are derived from the assessment of work or work experience person. job satisfaction is the result of members’ perceptions about how good a job they give the items considered important (luthans, 2006: 243). rival and mulyadi (2012: 246) states that job satisfaction is an assessment of how far the workers on the job as a whole satisfy their needs. according to porter (1961) in ardana et al. (2008: 23), job satisfaction is a difference of something that should be with something that actually exists (factual). the smaller the difference in conditions that should exist with the actually existing conditions (factual), a person tends to feel more satisfied. garboua and montmarquette (2004) stated that the workers’ job satisfaction describe the feelings that are based on his experience. gibson et al.(2009: 152) states that job satisfaction is an attitude of workers on the job resulting from their perception of the job based on the factors contained in the work environment such as the style of supervisors, policies and procedures, an affiliate of the working group, working conditions and other benefits for workers. robbins and judge (2008: 107) define job satisfaction as a positive feeling about the work of someone who is the result of an evaluation of its characteristics. in this concept, one’s work is more than just regulate the activity of paper, write the code, waiting for customers, or driving a truck. each job requires interaction with colleagues and superiors, follow the rules and organizational policies, meet the performance standards, accept working conditions are less than ideal, and others. this means that the assessment of a member about how he felt satisfied or dissatisfied with the work of an elaborate presentation of a number of different elements of the work. organizational citizenship behavior (ocb) huang (2012) suggests three categories of worker behavior, namely: (1) participate, bound and being in an organization; (2) have a job and act in accordance with the principles set forth by the organization; and (3) conduct of innovative and spontaneous activity exceeds the perception of its role in the organization. the latter category is often referred to as organizational citizenship behavior (ocb) or the extra-role behavior (huang, 2012). robbins and judge (2008: 40) define ocb as behavioral options that do not become part of the formal work duties of a member but to support the functioning of the organization effectively. shweta and srirang (2009) state that the ocb marked by an effort of any kind conducted by the wisdom of employees that benefit the organization without expecting any reward. kumar et al. (2009) define ocb as the behavior of individuals who contribute to the creation of organizational effectiveness and are not directly related to the system. reward organizational kumar et al. (2009) states that ocb is: 1. smoking behavior of workers is neither expected nor necessary, therefore organizations cannot give awards for the emergence of such behavior or provide punishment for the lack of such behavior. 2. individual behavior that benefits the organization but not directly or explicitly recognized in the formal reward system of the organization. 3. behavior that depends on each individual to raise or eliminate these behaviors in the workplace. 4. behaviors that impact on the creation of effectiveness and efficiency of the team and the organization, thus contributing to the overall 32 susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 productivity of the organization. organizational commitment organizational commitment is defined by durkin and bennett (1999) as a strong feeling of someone close to the objectives and values of the organization in relation to their role towards achieving the objectives and values. luthans (2006: 249) states that organizational commitment is an attitude that shows loyalty members and an ongoing process of how an organization’s members expressed their concern to the organization’s success and goodness. more attitude of loyalty is indicated by three things: (1) a strong desire for someone to remain a member of the organization; (2) a willingness to exert efforts for the organization; (3) a strong belief and acceptance of the values and goals of the organization. the organizational commitment will make the workers give their best to the organization where he works. workers with a high commitment to be more work-oriented. workers who have a high organizational commitment is likely to be happy to help and can work together. curtis and wright (2001) argue that the commitment is defined as the force identification of individuals who are in an organization. if someone has a commitment to the organization, he will have a strong identification with the organization, has a membership value, agreed with the objectives and value systems, is likely to remain in it, and finally, ready to work hard for the sake of the organization. iii. research metodology conceptual framework this study aimed to analyze and assess the effect of transformational leadership on ocb, the impact of transformational leadership on job satisfaction, the influence of transformational leadership on organizational commitment, influence job satisfaction on ocb, and the effect of job satisfaction on organizational commitment in awareness group travel (pokdarwis) home buoyancy underwater bangsring banyuwangi. research hypothesis 1. h1: transformational leadership is a positive and significant effect on ocb member tourism awareness group (pokdarwis) floating house bangsring underwater. 2. h2: transformational leadership is positive and significant impact on job satisfaction member awareness group travel (pokdarwis) floating house bangsring underwater 3. h3: transformational leadership is positive and significant impact on organizational commitment member awareness group travel (pokdarwis) floating house bangsring underwater 4. h4: job satisfaction has a positive effect and significant to ocb travel awareness group members (pokdarwis) floating house bangsring underwater. 5. h5: job satisfaction and significant positive effect on organizational commitment of members of travel awareness group (pokdarwis) floating house bangsring underwater identification variables 1). the independent variable or independent variable, the variable is the cause of the onset of or changes in the dependent variable / dependent variable. independent variables are variables that effect. in this study, the independent variable is the transformational leadership (x1) 2). he dependent variable or dependent variable, the variable which become due to their independent variables. in this study, the dependent variable is job satisfaction (y1), organizational citizenship behavior (y2) and organizational commitment (y3). definitions variable operational research 1. transformational leadership (x1), a leader behavior that is able to bring a sense of pride and kepemimpinan transformasional kepuasan kerja komitmen organisasi ocb 33susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 confidence of subordinates, inspire and motivate subordinates, stimulate creativity and innovation subordinates, treat each subordinate individually and always train and provide guidance to subordinates. transformational leadership variable is measured using the following indicators: a. idealized influence (x1.1), the behavior of a leader who is able to convey the vision and mission of the organization is clear to subordinates and fostering a sense of pride and confidence in subordinates. b. inspirational motivation (x1.2), the behavior of leaders capable of communicating high expectations in a clear and attractive, raise morale, and inspire subordinates to always be enthusiastic and optimistic in achieving the organization’s objectives. c. intellectual stimulation (x1.3), the behavior of leaders capable of stimulating creativity and innovation subordinates, respecting the ideas of subordinates, and directing subordinates to solve the problem carefully. d. individual consideration (x1.4), the behavior of leaders who give attention to the needs of subordinates, appreciate individual differences and to train and provide guidance to subordinates. 2. job satisfaction (y1), is the attitude of subordinates to the situation and working conditions that arise because of the interaction that occurs between the assessment of their work with the thoughts, feelings, and emotions based on factors contained in the working environment such as salary, job itself, working conditions, supervision, relationships with colleagues and other benefits perceived by subordinates. job satisfaction variables measured by the following indicators: a. pay (y1.1), namely the number of wages and the rate at which it can be seen as being considered in accordance with the workload and personal responsibility within the organization. b. job (y1.2), the job can be exciting and provide an opportunity for learning for subordinates as well as the opportunity to accept responsibility for the work. c. promotion opportunities (y1.3), namely the opportunity for subordinates to progress and develop within the organization, such as the opportunity to get a promotion, promotions, awards, as well as the development of the individual. d. supervisor (y1.4), the ability of employers to demonstrate attention to subordinates, provide technical assistance, as well as a superior role in treating subordinates that influence the behavior of subordinates in their daily work. e. co-workers (y1.5), which is the level at which the technically proficient work colleagues, friends, and support each other in the work environment. 3. organizational citizenship behavior (y2), is the behavior of those individuals in the organization, to be free and voluntary exceeding the role required by the organization as well as the emergence of such behavior to benefit the organization but the behavior was not related either directly or indirectly to the organization’s reward system, ocb variable is measured using the following indicators: a. altruism (y2.1), the behavior of an initiative to help or assist colleagues within the organization voluntarily. b. courtesy (y2.2), the behavior of individuals who maintain good relationships with coworkers in order to avoid disputes between members of the organization. c. sportsmanship (y2.3), namely the willingness of individuals to accept anything that is set by the organization even in circumstances that are not reasonable. d. conscientiousness (y2.4), that devotion or dedication to the work and the desire to exceed the standards of achievement in every aspect. e. civic virtue (y2.5), the behavior of individuals who demonstrate responsibility to get involved, participate, and care for a variety of activities organized organization. 4. organizational commitment (y3), an attitude that shows loyalty members of the organization and is a continuous process of how an organization’s members expressed their concern to the organization’s success and goodness. organizational commitment variable is measured using the following indicators: 34 susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 a. affective commitment (y3.1), the emotional attachment and a sense of pride in a member of the organization. the staff has a strong affective commitment is always still want to work for his organization. b. continuance commitment (y3.2), is the commitment of the staff is based on consideration of something that must be sacrificed when it leaves the organization or losses will be borne by the staff if it does not continue its work in the organization. the staff has a high sustained commitment will be in the organization because they do need to work on the organization. c. normative commitment (y3.3), is the commitment of the staff to stay in the organization because of the obligations and responsibilities in the organization who hired him for reasons of moral or ethical. the action is the right thing to do. determination of the sample the criteria for the sample used is a member of the group, both permanent and temporary status and has a minimum term of three years. consideration of these criteria because the researchers included members with tenure for at least three years is sufficient time for members to gain experience in the organizational environment. according to ferdinand (2014: 54), to obtain good results, the number of respondents who were taken to fill in the questionnaire is five to ten times the number of indicators. the number of indicators used in this study was 17 indicators so that a good sample ranged from 85 to 170 samples. based on the opinion of ferdinand, this study used a sample size of 100 respondents, with 35 respondents details the status of permanent members and 65 non-permanent members responder status, this number represents a variety of education and the status of members and the amount deemed to have been representative of the population. procedures data collection 1. questionnaire, which is a technique of data collection is done by providing a number of written questions to the respondent structured research related to the response to the various variables examined in this study. 2. interviews, namely the collection of data by conducting in-depth question and answer to the respondents to obtain data that is more accurate and complete because it involves a further explanation of the questionnaire that was distributed to respondents. test validity and reliability the correlation formula product moment as follows: description: r = correlation values product moment x = factor scores y = total score when the correlation value product moment of each factor is positive and the magnitude of 0.3 to above, these factors can be said to be valid. data analysis techniques 1. descriptive analysis. it is used to describe or give a picture of the object under study through the data sample or population as is, without analyzing and making conclusions apply to the public. descriptive analysis was intended to determine the characteristics and respondents of the items on the questionnaire questions. in this analytical technique throughout the studied variables described by the score of responses. 2. analysis of inferential. according to ferdinand (2014: 6), sem is a statistical method that is currently very popular in management research for a variety of advantages. the data analysis technique which consists of two basic stages: stage measurement model(measurement model) through confirmatory factor analysis and stage of structural equation models. the main objective is to test the suitability of the model (fit) with valid data. 1). measurement model is the process of modeling research aimed to investigate unidimensionality of indicators that describe a factor or a latent variable (ferdinand, 2002: 70). basically the test of measurement model to test whether the model as a whole can be said to be fit or not. in this study, researchers r = σxy √ (σx²) (σy²) 35susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 will confirm whether the indicator variable is used to confirm a factor called the confirmatory factor analysis of all the indicators used in the model. 2). phase structural equation model after being tested measurement model, the next test is continued withtest structuralmodel,which includes two main parts, namely (ferdinand, 2002:20): 1. test the whole models(overallmodelfit)of structuralmodels. 2. test structuralparameter estimates, and the relationship between the constructdependent or independent variables that exist in the structuralmodels. stages of the analysis of structural equation modeling this study using sem (structural equation model) with the assistance of amos software version 21, which is based on an evaluation of their interdependence. stages of structural equation modeling analysis by ferdinand (2002: 34) is as follows: 1. development of model based on the theory the first step in modeling is the development of a model that has a strong theoretical justification. the emergence of ocb have a positive impact not only for employees but also contributes to the organization more than what was required formally by the organization. successful organizations have members that go beyond the formal job responsibilities and freely give their time and energy to succeed in the work assigned (jahangir etal.,2004). according podsakoff etal.(2000), ocb affect the effectiveness of the organization. their organizational commitment will also make the workers give their best to the organization where he works. workers with a high commitment to be more work-oriented. workers who have a high organizational commitment is likely to be happy to help and can work together (luthans, 2006: 249). so that the behavior of members indicated ocb well, much needed transformational leadership role of group leader and job satisfaction of the members. 2. compilation line diagram the theoretical model that has been built in the first step will be portrayed in the path diagram. the path diagram will make it easier to see the relationships of causality between the independent variables and the dependent variable. to see the causality made several models were tested using sem to obtain the most appropriate model, with criteria goodness offit. based on the theory of structural models created, then determined the independent variables and the dependent variable, and then made the arrow direction in accordance with the direction of causality. the path diagram model of this study are as follows: 36 susanto sukiman1, hasyim wahid2, sukesi3, indrarini dg4 transformational leadership’s effect on organizational citizenship behavior and organizational commitment by mediation job satisfaction in group of awareness tour of home floating bangsring underwater banyuwangi sinergi, volume 8 number 1 march 2018 iv. conclusion and recommendations conclusion transformational leadership significant positive effect on ocb. so it can be stated that the higher the intensity of the implementation of transformational leadership pokdarwis chairman bangsring underwater floating house banyuwangi, the higher the level of member ocb pokdarwis bangsring underwater floating house banyuwangi. vice versa, the lower the intensity of the implementation of transformational leadership pokdarwis chairman bangsring underwater floating house banyuwangi, the lower the level of member ocb pokdarwis bangsring underwater floating house banyuwangi. transformational leadership is not significant positive effect on job satisfaction. this means that no significant transformational leadership on job satisfaction. in this case, whether or not the implementation of transformational leadership, the members remain satisfied with his works. transformational leadership significant positive effect on organizational commitment. so it can be stated that the higher the intensity of the implementation of transformational leadership pokdarwis chairman bangsring underwater floating house banyuwangi, the higher the level of organizational commitment pokdarwis member bangsring floating house underwater banyuwangi. vice versa, the lower the intensity of the implementation of transformational leadership pokdarwis chairman bangsring underwater floating house banyuwangi then lower the organizational commitment pokdarwis members bangsring underwater floating house banyuwangi. job satisfaction significant positive effect on ocb. so it can be stated that the higher job satisfaction pokdarwis members bangsring underwater floating house banyuwangi, the higher the level of their ocb. vice versa, the lower the job satisfaction pokdarwis member bangsring floating house underwater banyuwangi. then the lower the level of their ocb. job satisfaction is not significant positive effect on organizational commitment. this means that job satisfaction is not significant to the organizational commitment. in this case, high or low levels of job satisfaction felt by the members, they still have a high commitment to the organization. suggestions referring to the conclusion that transformational leadership has a positive and significant impact on organizational citizenship behavior and organizationalcommitment, should the leadership pokdarwis floating house bangsring underwater banyuwangi wherever possible more attention to behavior transformational leadership. this is because the transformational leadership is a determinant variable in improving ocb and organizational commitment pokdarwis members bangsring underwater floating house banyuwangi. referring to the respondent’s perception of transformational leadership, the group leader should always pay attention to the needs of subordinates, appreciate individual differences, as well as providing training and direction to subordinates, because in this case the behavior of the most dominant in shaping the construct of transformational leadership. for future studies suggested that consideration of other factors that also affect the job satisfaction and organizational commitment ocb behaviors such as age, tenure, and gender of respondents. subsequent research can also expand the scope of the research orientation of a larger organization or the wider population, or doing research on members in other areas, so the findings of this study may be different than in other areas of research taking into account the cultural differences of each region. bibliography [1] rahmi, b maptuhah. 2013. influence of transformational leadership on organizational citizenship behavior and organizational commitment, thesis, master of management program udayana university, denpasar. 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[29]weiss, dj, dawis, rv, england, gw, & lofquist, lh 1967. manual for the minnesota satisfaction questionnaire minneapolis: university of minnesota. sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 1 the influence of motivation and learning, teaching methods and means of education student achievement ifit novita sari kanjuruhan university of malang e-mail: vita@unikama.ac.id (accepted: 25-july-2016; revised: 27-august-2016; published: 05-september-2016) abstract.setting the whole student stienu trate gresik as the study population. distributing questionnaires planned and carried out in august 2015. as a sample, so much as the entire population sampled, collected as many as 66 questionnaires were then conducted proving the hypothesis through multiple linear regression techniques. the results showed that f count> f table (147.930> 2,753) with the support of significance (p) <0.05; or in other words proved that together independent variables in this study consists of motivation sailed (x1), the learning method (x2) and education (x3) significantly affects the dependent variable is the student achievement (y). taken together learning motivation (x1), the learning method (x2) and education (x3) were able to explain the learning achievement (y) of 87.1% and only 22.9% were able influenced by other variables outside of this research such as parenting parents, living environment, heredity and so forth. research also get the fact that it is kno wn from the data analysis where the motivation to learn is the independent variable that gives the greatest influence (49%) to the learning achievement compared with the influence of other variables. keywords: learning motivation, learning methods, means of education, academic achievement introduction the development of science and technology has brought a change in almost every aspect of human life where the problems can only be solved unless the effort to control and improvement of science and technology. in addition to the benefits for human life on the one hand, these changes have also brought humans into the era of global competition is increasingly fierce. to be able to participate in global competition, it is necessary to develop and improve the quality of human resources is a reality that must be done in a planned, purposeful, intensive, effective and efficient in the development process, if you do not want to compete in the globalization era undergo. talking about the quality of human resources, education holds a very important role in the process of improving the quality of human resources. improving the quality of education is a process that is integrated with the process of improving the quality of human resources itself. education is essential in fact is one of the most important elements of a person's life. it should be recognized that the level of "education" can be a measure of a person's ability to think. talking about education is not easy and simple, because in addition to its complex, dynamic and contextual, education is a vehicle for the sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 2 formation of a person as a whole. education in the process also includes the goal of developing personal and social aspects that allow people to work and live in groups in a creative, initiative, empathy and interpersonal skills are adequate as the provision of community. while the job of education to provide supplies to students that develops their potential, reasonable, optimal and adaptive in dealing with various problems in the future after finishing his studies. so that human nature skeptical, explorative and creative too, can develop and find articulation in the learning process when undertaking an education program. graduates are skeptical, innovative, dedicated, explorative, creative and capable of competitiveness that should be pursued as well as a matter of anticipation and planning of the education system, especially in the era of regional autonomy, expected economic conditions to grow rapidly (salladien, 2001). there are two factors that may explain why efforts to improve the quality of education has been less successful or not. the first strategy for education development have been more of an input oriented. the strategy thus more rely on the assumption that where all educational inputs have been met, such as the provision of books (teaching materials) and learning tool other, the provision of educational facilities it will automatically educational institutions (schools) will be able to produce output (output) quality as which is expected. turns input-output strategy introduced by the theory of education production function is not fully functional in educational institutions (schools), but occurs only in the economic and industrial institutions. in addition, given the college as a unit implementing formal education leading to a variety of diversity of potential students who require the services of a diverse education, environmental conditions are different from each other, then the school should be dynamic and creative in performing its role to work on improving the quality / quality of education. this will be carried out if the school with a variety of diversity that, given the trust to organize and take care of himself in accordance with the environmental conditions and the needs of their students. in other words, should be given autonomy to schools to be able to take care of himself, of course, through the decentralization of education. while the article 11 paragraph 2 of law number 22 of 1999, in which education is a government authority that must be implemented by district / city, it is expected that the quality of education can sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 3 be improved. but in homage is not easy, the region will experience problems and obstacles that are not small, some fundamental problems that could potentially hinder the achievement of quality education, especially primary education. the issues above, behind the desire of researchers to observe and examine in more depth about the views and attitudes of students in improving the results of student achievement, involvement and participation in the campus to provide educational facilities as one of the factors to improve learning achievement results. 1. literature review 1.1 motivation according to gagne learning is a set of cognitive processes that change the nature of environmental stimulation, pass through processing of information into new capabilities (dimyati and mudjiono, 2006). learning is a complex activity and the results of the study could include new capabilities. that is, once a person learns that he will have the skills, knowledge, attitudes and values as a result of the learning process. timbulmya these capabilities is the stimulation that comes from the environment and cognitive processes performed by people who are learning. motivation is something what makes a person act (sargent, in howard, 1999); and uno (2007), states that motivation is the impact of the interaction of man with his situation (siagian, 2004). while slameto (2003) stated learning is a process attempts by individuals to acquire a new behavior changes as a whole, as a result of the experience of the individual in interaction with the environment. itself motivation to learn is internal drive and external students who are learning to make changes in behavior, according to schunk and zimmerman (2009) that the motivation to learn can be seen from the interest, independence, willingness, test scores, confidence in learning, orientation on results and mas view towards the front. uno (2006) clarifies the indicators of motivation to learn, namely: their desires and wishes succeed, the urge and need in learning, their hopes and ideals of the future, their rewards in learning, their interesting activities in learning, their learning environment conducive. the form of motivation is often done at the school is to give figures, gifts, compliments, body movement, gave the task, giving replay, find out the results, and penalties (djmarah and zain, 2002). besides, there is also another function of motivation is motivation is as business drivers and achievement "(sardiman, 2001). it is clear that the function of the motivation it provides a value or itensitas separate from a student in improving learning motivation and academic achievement. besides, there is also another function of motivation is motivation is as sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 4 business drivers and achievement (sardiman, 2001). it is clear that the function of the motivation it provides a value or itensitas separate from a student in improving learning motivation and academic achievement. 1.2 learning method according sudjana(2005), the learning method is one way to put teachers into contact with students during the course of teaching. according sutikno (2009) states, methods of learning are ways of presenting the subject matter is performed by educators for a process of learning on students in an effort to achieve the goal. gerlach and elly, said learning method can be defined as a systematic plan to convey information. according hatimah (2000), the learning method not only serves as a way to deliver the course material, but also serves to encouragement, the revealer of the growing interest in learning, the delivery of learning materials, the creator of a conducive learning climate, the energy to give birth to creativity, driving force for self-assessment in learning process and results, and a driving force in completing weakness learning outcomes. according to the word (2007), the effectiveness of the learning program is characterized by the following characteristics: a) successfully deliver students reach instructional objectives that have been set; b) provide a learning experience that is attractive, engaging students actively thus support the achievement of instructional objectives; c) have the means to support the teaching and learning process. according to winarno arikunto surakhmad in his book (2006). indicators of learning methods as follows: a. students are humans that have the potential to really require education, so the method used must be in accordance with the students' ability to be easily understood by students. b. the learning objectives are the intended target of any teaching and learning c. situation is teaching and learning activities created by the lecturers are not always the same from day to day at a time lecturer should create learning situations dialam open d. facilities are the completeness of that support student learning, so learning methods must adjust existing facilities. e. lecturers have different personalities and different abilities, so the learning methods used by different lecturers 1.3 facility education facilities and infrastructure are very important in the world of education as a tool for driving an education. educational facilities can be useful to support the implementation of the learning process, either directly or indirectly in an institution in order to achieve educational goals. infrastructure and education is one of the resources that became the sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 5 benchmark quality of schools and the need to increase continuously along with the development of science and technology is quite advanced. according bafadal (2003), educational facilities are all perangkatan equipment, materials and furnishings that are directly used in the educational process in college. while wahyuningrum (2004), argues that educational facilities are all the facilities required in the learning process, which may include movables and immovable goods for the purpose of education achieved. educational facilities is a whole set of tools, materials, and furnishings that are directly used in the educational process. tables and chairs student, board, props, wardrobes, books, educational media (if required is an example of a means of education. while understanding the educational facilities according to (team drafting guidelines for media education ministry of education and culture) are all the facilities required in the process learning, either moving or not moving, so that the achievement of educational goals can proceed smoothly, orderly, effective and efficient education facilities are all facilities can be equipment, materials and furnishings are directly incorporated into the learning process at school. of course all the infrastructure and educational facilities should be managed well, it's called educational facilities management. 1.4 learning achievement understandingachievement is the result one achieves when doing certain tasks or activities (tu'u 2004). academic achievement is the result obtained from the learning activities in schools that are cognitive and are usually determined through measurement and assessment. learning achievement is the mastery of the subjects were determined by the value or the number given by the lecturer. the learning achievement is a series of sentences composed of two words, namely achievement and learning, which both relate to each other and between them have a different sense. therefore, before a deeper review of student achievement, we must first search for the word one by one to find out what it terms of learning achievement. according djamarah (2008) achievement is the result of an activity that has been done, created, either individually or in groups .. achievement is not possible diacapai or produced by a person as long as he did not conduct seriously or with a persistent struggle. in fact, to get the achievement is not as easy as turning the palm of the hand, but it must be full of struggle and the various obstacles and barriers that must be overcome to achieve it. only with tenacity, persistence and optimism that feat can be achieved. experts give different interpretations of student achievement, appropriate from the standpoint of where they are highlighting. but in general sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 6 they agreed that learning achievement is the "result" of an activity wjs. poerwadarminta found achievement is the result that has been achieved (dilakuakan, crafted and sebagainnya), while according to masud hasan abdul qohar found achievement is what has been created, the work is pleasing that acquired it with the tenacity, while nasrun harahap argued that achievement is the assessment of education on the development and progress of pupils with respect to mastery of lesson material presented to them and the values contained in the curriculum. from the definition above, it can be concluded that the achievement is the result of an activity that has been done, is created, which is pleasing, which is obtained by the tenacity of work, either individually or in groups in certain areas. based on this, the learning achievement can be formulated: a. achievement of learning is learning outcomes are achieved when following, tasks and learning activities on campus. b. the learning achievement mainly assessed cognitive aspect because it is concerned with the ability of students in knowledge or memory, comprehension, application, analysis, synthesis and evaluation. c. the learning achievement of proven and demonstrated through the value or number of the results of the evaluation conducted by a lecturer. so focusing on the learning achievement and mental attitude achieved in the learning process in college. the value obtained in terms of the cognitive because professors often use it to see the mastery of knowledge as student achievement. 2. research methods 2.1 research subjects according arikunto (2002), and sugiono (2002)overall population is a subject of research. where the subject is very important in doing research. while the definition of the population, according to hadi (2001) are all individuals for whom the facts obtained from the sample was to be generalizable. sampling is required if the population is taken very large, and researchers have limitations to reach the entire population, the researchers need to define the target population and the population of the new affordable then determine the number of samples and sampling techniques were used. in terms of the approach used, this research is quantitative research, the population in this study is the high school students of the second semester of economics nu trate gresik. table 1 sample research no. department of semester 1. management ii 46 sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 7 2. accounting ii 20 total 66 from the definition above, it can be concluded that the achievement is the result of an activity that has been done, is created, which is pleasing, which is obtained by the tenacity of work, both individually or a group in a particular field. 2.2 data collection instrument retrieval of data in this study using a questionnaire. questionnaires are a number of written questions that are used to obtain information from respondents in terms of his personal report, or the things that he knew (suharsimi arikunto, 2002). sugiyono (2010) states that, the answer to each instrument that uses a likert scale has a gradation from very positive to very negative, which can form words with a given score. 2.3 data analysis data were analyzed by a number of statistical methods that use multiple linear regression analysis is used to test the analysis pegaruh learning motivation, learning methods, and education on learning achievement. y = 0.377 + 1,025x1 + 0,096x2 0,013x3 + 0.299 + 0.377 = value learning achievements of students consisting of indicator variables motivation (x1), as exogenous or dependent variable formed from the indicators, namely: increasing knowledge, skills and abilities , improved attitudes, morals and behavior, more creative in solving a problem. learning achievement constant value of 0.377 indicates that the increasing quality of learning motivation, learning methods and means of education for the students will have an effect on student achievement. value 1,025x1 = coefficient learning motivation variable means any increase learning motivation variable equal to 1%, the achievement of students increased by 1,025, assuming other variables (teaching methods and means of education) is constant, the direction of positive regression coefficient means that the motivation to learn has a positive influence on the value of 0096 x2 = variable coefficient learning method means any increase in the variable method of learning by 1%, the achievement of students increased 0096 assuming other variables (learning motivation and education) constant, the direction of positive regression coefficient means that the method of learning has a positive effect 0.013x3 value = the coefficient variable education facilities means any increase in the variable of educational facilities by 1%, the achievement of students increased 0013 sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 8 assuming other variables (motivation to learn and learning methods) is constant, the direction of positive regression coefficient means that the method of learning has a positive effect. the standard error of 0.299 means that all variables were calculated in spss has a confounding variable rate amounted to 0.299 multiple linear regression results indicate that the exogenous variables, namely: learning motivation, learning methods and means of education positively affects variable indogen ie learning achievement. wherein each of the rise in the exogenous variables followed by an increase in variable indogen. other than that of the result can be seen that the dominant exogenous variables are variables of learning motivation of 1,025 3. results test coefficient of determination is used as a measure of how much capacity model in explaining variations in the dependent variable, as follows. table 2 results of determination coefficient test model r r s q u adjus ted r squar std. error of the estimate ar e e 1 .9 3 7 a .8 7 1 .2 1 2 7 0 .877 regression calculation result can be seen that the value of the adjust r square is 0.871. it shows that 87.1% of the achievement of students in the college of economics nu trate gresik affected by the variation of the three exogenous variables, namely: learning motivation, learning methods and means of education. while the remaining 22.9% is influenced by other variables that are not included in this study. the standard error of the estimate (see) of the above table of .21270. the smaller the value of see, then it would make more appropriate regression equation to predict the dependent variable. results of regression calculations simultaneously obtained in the following table: table 3 hypothesis test results simultaneous anova b sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 9 model sum of square s df mean squa re f sig. 1 regr essio n 20 077 3 6692 147 930 .000 a resi dual 2,805 62 .045 tota l 22 882 65 a. predictors: (constant), means education, motivation, teaching methods b. dependent variable: learning achievement based on statistical testing with the test method f, where a significant level obtained less that 0.000 of stadar significantly, 5% and the ratio of f and f table, fhitung 147.930 larger than ftabel the 2,753 it can be concluded that ha is accepted or motivation to learn, pembalajaran methods and means of education has a significant influence on learning achievement. parsialdilakukan hypothesis test to see the significance of the regression coefficient of each independent variable of this research yangterdiri of learning motivation (x1), the learning method (x2) and education (x3) on student achievement (y). table 4 results hypotheses partial model t sig. correlations zer oorde r part ial part (constant) 1,260 .212 motivation 7,713 .000 .936 .70 0 .343 learning method .491 .872 .088 .031 .693 education facility .892 .821 .017 .006 .137 a. dependent variable: learning achievement a. interpretation of the significance test of regression coefficient learning motivation (x1). as shown in the table above, the regression coefficient learning motivation has a number tcount of 7.713 with 0.000 significance. by the numbers ttabel at α = 5% and amounted to 1.670 df then thitung> ttabel (7.713> 1.670) supported by figures significance of 0.000 (p <0.05) with significance values below 0.05 indicate h1, h0 is rejected or accepted. this shows evidence that learning motivation variable (x1) significantly affects student achievement variable (y) sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 10 b. interpretation of the significance test of regression coefficient learning method (x1). as shown in the table above, the regression coefficient learning method has a number tcount of 0.693 with 0.491 significance. by the numbers ttabel at α = 5% and amounted to 1.670 df then thitung <ttabel (0.693 <1.670) supported by figures a significance of 0.491 (p> 0.05) with significant value above 0.05 then h0 is not rejected or not accepted h1. this shows evidence that the variable method of learning (x2) no significant impact on student achievement variable (y) c. interpretation of the significance test of regression coefficient means of education (x3). as shown in the table above, the regression coefficients education facilities have a number tcount of 0.137 with 0.892 significance. by the numbers ttabel at α = 5% and amounted to 1.670 df then thitung <ttabel (0.137 <1.670) supported by figures a significance of 0.892 (p> 0.05) with significant value above 0.05 then h0 is not rejected or not accepted h1. this shows evidence that the variable of educational facilities (x3) did not significantly influence student achievement variable (y) 4. discussion based on testing multiple linear regression equation between the variables of learning motivation, learning methods and means of education has a positive relationship with students' achievement. this shows the direction of the relationship between several variables. this may imply that the higher the quality of learning motivation, learning methods and means of education, increasing the quality of student achievement as shown in the table above, the regression coefficient learning method has a number thitung (0.693 <1.670) supported by figures a significance of 0.491 ( p> 0.05). this shows evidence that the variable method of learning (x2) had no significant effect on the variable student achievement (y) as shown in the table above, the regression coefficients education facilities have a number thitung (0.137 <1.670) supported by figures a significance of 0.892 (p> 0.05). this shows evidence that the variable of educational facilities (x3) had no significant effect on the variable student achievement (y) based on the above results of the partial test of each independent variable on the dependent variable indicate that the independent variables are the dominant influence on learning achievement (y) is the motivation to learn (x1), because it is based on the results of the test variable t study motivation have value thitung (7.713)> ttabel (1,670) with significantly required sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 11 5. conclusion based on observation, interviews and analysis of the above data, the conclusions obtained from this study is that together, learning motivation, learning methods and means of education towards endogenous variable that student learning achievement. it is known from hasiluji f where f count> f table ie (147.930> 2,753) with the support of significance (p) 0.000 <0.05. the results of data analysis showed multiple determination coefficient of 0.871. it shows that 87.1% of the achievement of students in the college of economics nu trate gresik affected by the variation of the three exogenous variables, namely: learning motivation, learning methods and means of education. while the remaining 22.9% is influenced by other variables that are not included in this study, for example learning style, personality of the teacher, the environment and other factors. among the independent variables studied, the variables have the motivation to learn the most dominant influence on student achievement variable due to standardized coefisients of learning motivation variable of 0.850 which means in partial motivation to learn has an influence on the learning achievement of 49%. 6. suggestions based on the conclusions outlined, then as for suggestions that could be given in connection with respect to the results of this conclusion are as follows:to a. motivationlearn has the greatest impact on student achievement, indicators of motivation to learn is the most dominant must be diligent and continue to learn because that requirement in studying, for it should the faculty and parents must continue to pursue all means to continue to improve the students' learning motivation. b. the learning method is a variable that has the second greatest effect on student achievement. indicator learning method is the most dominant glad to follow the course because of the methods used are always tailored to be easily accepted by all the students, so it's important that each lecturer, must adjust the ability of students according to the level semester in order to make students more receptive to materials from lecturers, thus increasing pull students to perform better. c. educational facilities is a variable that has most influence low on student achievement, indicators of student achievement is the most dominant i like the class because the school environment is cool and a lot of plants that shade, so should the college try to get around the campus given plants soothing, while also able to produce enough oxygen to maintain the health of students. sinergi, volume 6, number2september 2016 ifit novita sari the influence of motivation and learning, teaching methods and means of education student achievement 12 bibliography abinsyamsudinmakmun, 2003, psikologipendidikan. bandung: rosdakarya arikunto, suharsimi. 2006. prosedurpenelitiansuatupendekatanprakt ik. jakarta: rinekacipta bafadal, ibrahim. 2003. seri manajemenpeningkatanmutupendidikan berbasissekolah, manajemenperlengkapansekolahteori dan aplikasi. jakarta: pt. bumiaksara dalyono. 2005. psikologipendidikan. jakarta: rinekacipta dimyatidanmudjiono. 2006. belajardanpembelajaran. jakarta: pt. rajagrafindopersada djamarahdanzain. 2006. strategibelajarmengajar. jakarta: rinekacipta djamarah. 2008. psikologibelajar. jakarta: rinekacipta firman, harry. 2007. ilmudanaplikasipendidikan .bandung:pt. impereal bhakti utama ghozali imam,, 2005. aplikasianalisis multivariate dengan program spss. semarang: badanpenerbit universitas diponegoro hamzah b. uno. 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(1979). metodologipengajarannasional. bandung: jemmars. sutikno, m. sobri, 2009. belajar dan pembelajaran, bandung: prospect sutrisnohadi. 2001. metodologi research, yogyakarta :andi offset syah,muhibbin. 2006. psikologibelajar. jakarta: raja grafindo trianto. 2010. model pembelajaranterpadu: konsep, strategi dan implementasidalamkurikulum tingkat satuanpendidikan (ktsp). jakarta: bumiaksara tulus, tu’u. 2004. perandisiplinpadaperilakudanprestasisis wa, jakarta: grasindo. yunus, m 2008, a world without poverty: social business and the future of capitalism, public affairs, jackson tn. sinergi, volume 11 number 1 maret 2021 36 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand sarwani1, heru suprihhadi2, andry herawati3 1faculty of administrative sciences, dr. soetomo university surabaya 2sekolah tinggi ilmu ekonomi indonesia (stiesia) surabaya 3faculty of administrative sciences, dr. soetomo university surabaya 1sarwani_mm@yahoo.com, 2herusuprihhadi@stiesia.ac.id, 3andryherawati@yahoo.co.id submit: 30th january 2021, revised: 06 th february 2021 , accepted: 30 th march 2021 abstract.one of the essential topics in marketing management is subject to brand equity. initially, brand equity was recognized to can be given to bring added value to a product in the means corporate brand name. it is imperative to acknowledge that brand equity is an inseparable part of marketing and essential to the organization to create and build intense brand name organization experiences that will influence the decision-making process to brand name organization choice for membership. thus, this study aims to prove and analyse the indirect influence amongst the brand equity dimensions on brand equity. for this study's purpose, brand equity dimensions include brand awareness, brand association, brand loyalty, brand image and perceived quality. in this study, a sum of 120 usable questionnaires from cooperation enterprises active membership was gathered. the result indicates that only a mediating influence brand loyalty of brand association on brand equity, and a mediating influence the perceived quality of the brand image on brand equity. keywords: brand awareness; brand association; brand loyalty; brand image; perceived quality and brand equity for organizational brand name. i. introduction one of the essential topics in marketing management is brand equity. the term brand can be expressed in the form of symbols, names, signs, letters, images that indicate the product or service or the name of a business entity. brand equity was initially introduced by farquhar [1], which states that brand equity provides added value to products. according to the study conducted by kapferer [2] and keller [3], brand equity is created for products or services that directly or indirectly provide added value. in many studies, brand equity shows two different perspectives for academics, namely, financial perspective and customer perspective. in a financial perspective, brand equity is a consideration of valuation based on the market value of the company's assets as suggested by the study results of farquhar et al., [4]; simon and sullivan [5]. meanwhile, the customer perspective that the consideration of brand equity is based on customer reactions to the brand name as stated in the results of a study by keller [6]; shocker and weitz [7]. this research is concentrated on the customer point of view or perception to assess brand equity. customer-based brand equity is usually divided into two categories, namely consumer behaviour according to the study by farquhar [1] and consumer perception according to the study of mahajan et al., [8]. the results of the study by mahajan et al., [8] found that the level of consumer perception can be used to assess customer-based brand equity, while the argument from farquhar's [4] study is that brand equity can change consumer attitudes towards products. keller [6] states that brand knowledge combines brand image and brand awareness. the image of the brand is so strong that it can increase the value of the product [9]. meanwhile, blackston [10], the results of his study, claims that the definition of a brand is defined as a brand subjectively and objectively to a product or company name so that it has personality characteristics and is an attitude of respect for the brand. as for prasad and dev [11], their study results indicate that there is a process to assess brand equity, brand performance and brand awareness that must be taken into consideration. therefore, according to aaker, the results of his study indicate that the quality received from the company, brand awareness, brand association, and brand loyalty becomes a process to evaluate the degree of brand equity. as a result, it could be shown to disagree in the research linking the dimensions of brand equity to identify the dimensions of brand equity and show the mediation of the relationship with brand equity [12];[13]. sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 37 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand as an object of research, as seen in the phenomenon of the existence of "waspada women cooperative", is the name of a women's cooperative which is well known in the city of surabaya and was founded in 1959. although at that time, they did not understand in depth the meaning and benefits and uses of cooperatives but armed with a strong determination to establish cooperative. even mothers who are members of this arisan group think that the cooperative is an association of people who save money that can be borrowed back by those who join it. exactly on february 4, 1964, a cooperative was formed under the name "koperasi wanita waspada" or kopwan waspada and was certified as a legal entity number: 710 / i / 3322 / ii having its address at jalan kedung anyar gg. v number 14 surabaya. since 1998 until now, the stewardship posture along with the assigned positions and job descriptions which are its duties and obligations can be said to be eligible to become a cooperative following applicable laws and regulations, namely law no.25 of 1992 concerning cooperatives, including types of consumer cooperatives. which specifically serves women as its members, with its business units consisting of savings and loans, shops, and kppk (small merchants and entrepreneurs group). the waspada women's cooperative, whose name is familiar to women for the area of operation in the city of surabaya, is the only female cooperative that is quite old from its establishment and still exists to hold the identity of the cooperative, even the mayor of surabaya is pleased to be an honorary member of this cooperative. the development and growth and progress that has been achieved so far can be proven by the achievements and reputation that has been carried as a healthy cooperative which is considered by the secondary cooperative "puskowanjati" that the waspada women's cooperative is one of the top ten (10) members of the secondary cooperative "puskowanjati." in 2007, the building can be built with an area of +/720 m2 with ii floors. also, it has also been realized that it has a modern retail or retailer to accommodate and market the products produced by members. of course, all of this cannot be separated from the cold hands of the professionalism of the management's role in generating and providing various training and skill activities for its members. in 2008 the management developed the capacity of the "waspada women's cooperative" through the creation of networks with the integrated protection services (ppt) and child protection services (ppa) in east java. the aim is to protect women from the phenomenon of the emergence of domestic violence (kdrt) so that the "alert" women's cooperative continues to provide counselling to its members in particular, as well as social and premarital adolescents in general. apart from that, the awareness and togetherness of the members are manifested, among others: if there are members, namely husbands and children who are still dependents, if one day they die, the heirs will receive compensation; for members who pass away, if there is still a loan balance, it will be resolved with member care savings (spa) which aims not to burden the heirs. this study aims to analyze, test, and discuss the effect of brand awareness on brand equity empirically through the mediation of brand association, brand association on brand equity through the mediation of brand loyalty, brand loyalty to brand equity through the mediation of brand image, and brand image on brand equity through mediation. mediation of quality received at the waspada women cooperative surabaya. literature review brand and brand equity expertise refers to knowledge, experience or skills related to the brands that are supported [14]. professional marketers are perhaps a more special skill to create, maintain, enhance, and protect brands. branding will be a priority in carrying out marketing activities. as illustrated by toyota, samsung, sony, and other brands, the success of branding will create premium prices and bring more consumers to become loyal users of the product. the american marketing association defines a brand as a name, term, sign, symbol, or design, or a combination thereof to identify goods or services from a single seller or group of sellers and to differentiate among its competitors' brands [15]. a brand is a product or service, and it can also be an organization name that shows an additional dimension that differentiates it from other products or services, or corporate names designed to satisfy customers with the same needs. some differences occur due to the functional form, sinergi, volume 11 number 1 maret 2021 38 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand rationalization, or existence related to the brand's product performance. it can also be reasoned on a more symbolic, emotional, or intangible basis concerning what the brand represents. in practice, the definition of a brand does not have to be in the form of goods or services, but also the name of an organization or company, such as a salt warehouse cigarette brand which is a salt warehouse itself, besides being a product brand and the name of the company. according to pride and ferrell [16] defines brand equity as a financial and marketing value that is closely related to brand strength in the market, including actual proprietary brand assets, brand name awareness, brand loyalty, perceived brand quality, and brand associations. meanwhile, lassar et al., [17] expanded the literature to assess brand equity with two different points of view: the financial and customer perspectives. the financial perspective is usually reflected by the company's brand value, such as a study conducted by kim et al., [18]. some of the main concepts about brand equity based on a review of the expansion of the literature can be put forward as follows: (1) farquhar [4] states that brand equity can change by changing the mindset of consumers who have made entire product purchases; (2) aaker [12] stated that brand equity could be evaluated through loyalty, association, brand awareness and quality received by consumers; (3) keller [6] states that there are two methods for assessing customer-based equity (either directly or indirectly) by emphasizing two essential elements, namely brand image and brand awareness; and mahajan et al., [8] stated that customer-based equity could be evaluated based on the level of customer understanding. this study adopts a customer perspective on brand equity put forward by aaker [12], while aaker [13] considers brand equity as an aggregation of assets and liabilities. five different dimensions can be created as a brand equity value: brand awareness, quality received, brand loyalty, brand association and proprietary brand assets. according to keller [3], brand strength can be traced from customer perceptions and understanding of what is beneficial, observed, felt, and is related to the heart of the brand itself because of customer involvement with the reality of the brand that has been felt. keller [6]; cobbwalgren et al., [19]; del rio et al., [20] showed that the value of brand equity could be significant when the brand gives meaning to the individuals who feel it vice versa. many researchers build a conceptualization of brand equity based on five factors as suggested by the results of a study by lassar et al., [17], namely value, performance, social image, attachment, and trustworthiness. aaker and joachimsthaler [21] from their study define brand equity with several concepts by naming them brand awareness, brand association, brand loyalty and perceived quality. other researchers such as aaker [12];[13]; blackston [10]; cobb-walgren et al., [19] argued from the results of their study that brand equity is a variety of structured factors consisting of brand loyalty, brand awareness, brand knowledge, customer satisfaction, perceived equity, brand association and other proprietary assets. this study's results are more to consider brand equity and other brand assets such as brand knowledge, brand awareness, brand image, brand loyalty, a quality that is accepted as an inseparable part of brand equity so that it is not independent as demonstrated by the keller study [6]; kirmani and zeithaml [22]. therefore, this research which will be discussed related to brand equity, is brand awareness, brand association, brand loyalty, brand image and perceived quality by customers. brand awareness brand awareness is the essence and critical element of brand equity, as suggested by the results of aaker [13] study, which defines brand awareness as the resilience of a brand that is embedded in the memory of customers. meanwhile, the cobb-walgren et al., [19] study states that brand awareness is an essential factor in selecting customers for products. therefore, brand awareness needs to be created that shows feasibility, increases familiarity, and provides a strong association about the purchase experience and product offered as presented in the study's results by keller [3]. the argument put forward is that brand awareness can influence customer decision-making to purchase goods through a strongly associated brand. on the other hand, pitta and katsanis [23] argue that there is a relationship between brand awareness and brand association, while atilgan et al., [24] and pappu [25] state that there is a correlation between the brand association and brand awareness from the results of their study. sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 39 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand brand association brand association and brand equity are believed to have a strong correlation from the results of aaker [26] study, and both parties have an association that can improve customer memory of the product brands they buy. the study results by keller [3] state that brand association can be created through associations shown by the attitudes, attributes, and benefits it generates. brand association is also an act of gathering information (van osselaer and janiszewski [27] to execute brand differences and expansion, according to aaker [13]. meanwhile, the results of the study by james [28] also discussed a high influential association that would help to encourage product quality and branding. likewise, the study results of yoo et al., [29] and atilgan et al., [24] state that a strong brand association will also indicate high brand loyalty. brand loyalty according to aaker [12], brand loyalty from the results of his study states that it is a symbol of the results of a set of constructive thoughts that lead to the brand and shows the constant purchase of product brands at all times. brand loyalty is also an essential element when customers evaluate product brands in value because loyalty can generate profits. assael [30], samuelsen and sandvik [31] state that two approaches can be used to understand brand loyalty. in the marketing book for a behavioral approach to brand loyalty, the first approach provides confidence that the constant purchase of one product brand for each time is an indicator of brand loyalty. in textbook marketing, the second approach to a cognitive approach to brand loyalty suggests that buying behavior is not solely reflected by not just brand loyalty. yoo et al., [29] in their study showed that brand loyalty has a strong influence on customer decisions to purchase similar products or brands to shift the products or brands of its competitors. the conclusion is that brand loyalty is the core value of the product brand. various studies have found that there is a strong positive relationship between customer loyalty and brand image. brand image the brand image of the study by keller [6] defines that the brand has been carried in the minds of consumers who are always associated with it. a brand image can also be interpreted as a consumer's thoughts and feelings regarding a product's brand, such as a study by roy and banerjee [32]. aaker [12], in his study, showed that brand image could be interpreted as an association that is collected significantly in the minds of consumers. in their study, kotler, and armstrong [15] stated that brand image is a set of unshakable beliefs about the reality of the brand it consumes. according to the study by bearden and etzel [33] and park and arinivasan [34], they argue that brand loyalty is strongly related to the uniqueness of a particular type of product. consequently, customer behavior will be influenced and determine the choice of the intended brand image, as suggested by the study results from burmann et al., [35]. therefore, consumers always try to find products that have provided a brand image obtained from the overall perception derived from individual product specifications, so that products with high brand images will be the choice because they are believed to provide superior quality and value, as suggested by the study results, from richardson et al., [36]. thus, according to the study results by jacoby et al., [37], in conducting their experimental research, they found that consumer perceptions of value and quality significantly affect brand image. quality received one of the essential elements of brand equity is the quality received, and this becomes an essential part of studies to assess brand equity. aaker [12] states that the quality received is the overall customer perception of a product or service's quality and greatness compared to similar products or services offered by its competitors. the results of studies by zeithaml [38], erenkol and duygun [39] state that product quality is the difference from the quality received, this is because the quality received is a buyer's subjective assessment of the product. the quality received cannot be sufficient as a determinant of justice because the quality of perception itself becomes a construct summary, as argued by aaker, (1991: 8586). however, the results of the study by zeithaml [38] stated that the quality received can be used as a real action as a critical factor influencing product choices for consumers. motameni and shahrokhi [40] and yoo et al., [29] from the results of their study, show that the quality received is positively related to brand equity. sinergi, volume 11 number 1 maret 2021 40 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand development of research hypotheses influence between brand awareness, brand equity and brand association the argumentation from keller [6] states that brand awareness that is created influences the buyer's decision-making process through brand associations inherent in the buyer's memory. there is a correlation between brand awareness and brand association such as the results of studies from atilgan et al., [24], pappu [25]. brand awareness itself is a fundamental attribute, and the first time it reflects brand equity for customers according to the results of studies by aaker, (1991, 1996), tong and hawley [41]. as a result, brand awareness is constructed into brand equity in a set of consumer minds, such as a study by huang and sarigollu [42], and affects the attitudes and perceptions of its customers. aaker [12] in his study, believes that brand association and brand equity have a strong relationship with each other because brand association becomes an element that helps a memorable brand. the resulting high brand awareness will provide a strong brand association, and a strong brand association is created that will positively affect brand equity because of the brand association itself, this is the direction of the review of the commitment and quality of the brand itself so that the customer shows that habit of buying the brand. all of them help in considering making a purchase, as suggested by the results of the studies of aaker [12], tong and hawley [41], marinova et al., [43], and yoo et al., [29]. the study results by severi and kwek [44] show a positive and significant relationship between brand awareness and brand equity mediated by brand associations. based on the description that has been put forward the relationship between brand awareness, brand association and brand equity that can be demonstrated, there are still weaknesses in the study to evaluate the relationship by creating mediation between the three constructs. thus, to evaluate the relationship between brand awareness and brand equity mediated by brand association, a hypothesis can be shown. h1: there is an effect of brand awareness on brand equity mediated by the association brand. influence between brand awareness, brand equity and brand association brand association is an element that helps a brand never to be forgotten by its customers. aaker [12] in a study defines brand loyalty as a symbol of the results of a set of constructive thoughts that lead to a brand and show a constant purchase of a product brand every time. the results of studies conducted by atilgan et al., [24] and yoo et al., [29] found that if customers have more positive associations towards a brand, they are more loyal to the brand and so on. aaker [12] in his study believes that brand association and brand equity are strongly and positively related to one another, as long as the direction of his review is on commitment and quality, customers show purchases that are so familiar with the brands they buy, as a study by aaker [12], tong and hawley [41], marinova et al., [43], and yoo et al., [29]. whereas oliver [45] defines brand equity as a strong commitment to the desired or consistent pattern of product or service choices in the future, affected by stored situations and marketing efforts that have potential causes for behavior to shift or shift to others. travis [46] in his study stated the meaning and purpose of brand equity by building brand loyalty, theoretically there is a relationship between brand association, brand loyalty and brand equity that has been approved, but there are still weaknesses or shortcomings that are mediated between the three constructs. the results of the study by severi and kwek [44] show that there is a positive and significant relationship between brand association and brand equity mediated by brand loyalty. therefore, to evaluate the relationship between brand association and brand equity, mediation by brand loyalty is required. thus, the hypothesis formulated is: h2: there is an effect of brand association on brand equity mediated by loyalty brand. the influence between brand loyalty, brand equity and brand image brand loyalty according to the results of the study by yoo et al., [29] has the power to influence customer decisions in making purchases of similar products or brands and switch lower to competing brands. brand image can be defined as the feelings and thoughts of consumers towards a particular product brand, such as a study by roy and banerjee [32]. meanwhile, yoo et al., [29] argued that there is a positive relationship between brand loyalty and brand image. so, brand loyalty is embedded in the heart which becomes brand equity. gladden and milne [47] from the results of their study show that there is a belief that one of the sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 41 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand components of brand equity is brand image. based on the description that has been stated the relationship between brand loyalty, brand image and brand equity that can be shown, but there are still weaknesses or shortcomings in the study to evaluate the relationship by creating mediation between the three constructs. severi and kwek [44] show a positive and significant relationship between brand loyalty and brand equity mediated by brand image. thus, to evaluate the relationship between brand loyalty and brand equity, which is indicated by the brand image, a hypothesis can be formulated: h3: there is a mediated effect of brand loyalty on brand equity by the brand image. influence between brand image, brand equity and quality received richardson et al., [36] from the results of their study stated that consumers always try to find products that have provided a brand image obtained from the overall perception derived from certain product specifications, so that products with high brand images will be the choice because they are believed to provide quality and quality. superior value. meanwhile, according to the results of the study by jacoby et al., [37], in conducting their experimental research, they found that consumer perceptions of value and quality significantly affect brand image. similar conclusions are shown from the results of the studies of shimp and bearden [48], rao and monroe [49] that brand image is the main goal on several occasions and is the fastest reference for determining product value and quality. kotler and armstrong [15] state that brand image is used by consumers to evaluate the perceived quality of the product. richardson et al., [36] concluded that there was a positive relationship between brand image and received quality. gladden and milne [47] show that brand image is part of brand equity, therefore consumer perceptions of brand image will create an influence towards brand equity of the products or services it offers. aaker [13] states that one of the key elements of brand equity is the quality received and becomes the core construct in research to assess brand equity. likewise, yoo et al., [29] showed that brand equity will increase with the help of the perceived positive quality promotion results; the quality received is part of the brand value shown by consumers in selecting product brands from other product brands offered by its competitors. the results of the study by severi and kwek [44] show that there is a positive and significant relationship between brand image and brand equity mediated by the quality received. based on the description that has been put forward the relationship between the quality received, brand image and brand equity that can be shown, but there are still weaknesses or deficiencies in the study to evaluate the relationship by creating mediation between the three constructs. thus, to evaluate the relationship between brand image and brand equity, which is validated by the quality received by customers, a hypothesis can be formulated: h4: there is a mediated effect of brand image on brand equity by the quality received. ii. methodology population and sample research population is the whole unit of analysis whose characteristics will be predicted [50]. the population in the study were all registered and active members until 2018 in the alert women cooperative, totaling 1,778 people in the city of surabaya. while the characteristics of the population for research purposes include members of cooperatives, namely: being a registered member and being active for at least 5 years without breaking up, having an education of at least sma / smk or equivalent, and having conducted transactions with cooperative business units for at least 20 (six) times during 2018. the representative sample size according to hair [51] for the purposes of structural equations is between 100 to 200 respondents, so that the sample of this study was taken as many as 120 members who became respondents. the sampling technique used was purposive sampling, meaning that the sample was taken randomly based on the consideration of population characteristics that had been determined based on population characteristics. research variable based on the background, problem formulation, hypothesis development, and research frameworks, it has been suggested that the position of the variables covered and analyzed in this study are as follows: the endogenous variable is brand equity; the exogenous variable is brand awareness; while exogenous and endogenous variables include brand association, brand loyalty, brand image, and quality received. sinergi, volume 11 number 1 maret 2021 42 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand data collection procedures data collection was carried out in this study using questionnaires as a primary data collection instrument. the questionnaire is a measurement instrument designed in the form of a formal set of questions to obtain information from respondents. therefore, this type of research data includes primary data obtained directly through distributing questionnaires aimed at cooperative members as respondents and as members of the targeted research sample. the questionnaire is designed as a research instrument that shows statement items resulting from the results of the operation of each variable with indicators measured through a likert scale to be responded to by each respondent. data analysis techniques the analysis in this study uses descriptive analysis to describe the results of data processing according to the research needs, then the data is tested for validity and reliability and then processed with a computer program package to obtain the results of path analysis processing. validity and reliability validity testing is carried out to determine the validity of the measurements on the statement items contained in the questionnaire as a primary data collection instrument. this is necessary so that the questionnaire is designed to be able to measure what should be measured from the results of the operationalization of the variables and indicators. the results of this test can be seen in the correlation of pearson's product moment for each statement item with the total test score. reliability testing is carried out to determine the reliability of the measuring instrument used that can be trusted. if the measuring instrument is used repeatedly and the results are obtained relatively consistent, then the measuring instrument is considered reliable. this test is carried out for all statement items used in the research and the construct reliability value is calculated. data analysis data analysis uses path analysis to test the path coefficient on each path diagram of the causal relationship between brand awareness (km), brand association (am), brand loyalty (lm), brand image (cm), and received quality (kd) on brand equity (em). the effects between variables that will occur are as follows: iii. results and discussion result of questionnaire validity and reliability testing this research begins with testing the validity of the questionnaire, namely testing the statement items that compose each research variable in the questionnaire. the validity test is carried out to determine the extent to which the statement items can measure each variable under study. to measure the validity of the questionnaire used pearson product moment correlation. if the value of the pearson product moment correlation between each statement item with the total variable score produces a significance value less than 5%, then the statement item is declared valid and vice versa if the significance value is greater than 5%, then the statement item is declared invalid. the results of validity testing using the pearson product moment correlation coefficient for each statement item on the variables of brand equity, brand awareness, brand association, brand loyalty and quality received show that the pearson correlation coefficient is above 5% which means it can be said to be valid. while the results of reliability testing for all research variables have shown a cronbach's alpha value ≥ 0.60, which means that it has shown reliability in its measurement or the measuring instrument used meets its consistency. description of research variables descriptively, the average value of the research variables, namely brand equity, brand awareness, brand association, brand loyalty, brand image, and quality received by members of the vigilant women cooperative produces a score above a score of 3 which means that they tend to give approval in responding to the research variables. it can be said that the brand equity that women cooperative members responded to was good. in addition, brand equity, which is formed from the variables of brand awareness, brand association, brand loyalty, brand image, and quality received by the members of the alert women cooperative has also received good responses. the description of brand equity that the cooperative name is a brand is supported by the opinion of lassar et al., [17]; keller [6]; cobb-walgren et al., [19]; del rio et al., [20] which states that brand equity is assessed sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 43 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand from the customer perspective that in this case the cooperative members and the assessment give meaning to the individuals who have felt it. the results of this study also support the opinion of aaker [12];[13]; blackston [10]; and cobbwalgren et al., [19] which states that brand equity includes structured factors including brand awareness, brand association, brand loyalty, brand image and quality received by customers who in this case are members of the vigilant women cooperative. the results of the description of brand awareness that show a score above 3 means that the members of the alert women cooperative are aware of the existence of the alert women cooperative as a brand, in this case it supports the results of the study by aaker [13]; cobb-walgren et al., [19]; and keller [3] which states that brand awareness is a brand longevity that is inherent in customer memories and becomes an important factor for customers to select products to be purchased and brand awareness itself is a factor that influences customer purchasing decision making, in this case a member. vigilant women's cooperative. the description of the brand association produced in this study is scored above a score of 3, which means that this alert female cooperative member always associates the brand from the name of the cooperative when the cooperative member makes purchases of products or services to meet their needs. this supports the opinion of the study results of keller [3]; van osselaer and janiszewski [27] which state that brand association can improve customer memory of the product brand that they will buy and can create attitudes, attributes, and benefits for the product they will buy and act in purchasing which always tends to compare with the results. products and services of wary women's cooperatives. the results of the description of brand loyalty that show a score above 3 means that the members of the wary women cooperative really like the name of the alert women cooperative as a brand, in this case it supports the results of aaker's study [12] and yoo et al., [29] which state that brand loyalty is a symbol of the results of a set of constructive thoughts that lead to a brand and show a constant purchase of products or services at any time, besides that brand loyalty has a strong influence on purchasing decisions. customers to make purchases which in this case are members of the wary women cooperative. while the results of the description of the brand image obtained in this study have a score above a score of 3, which means that female cooperative members are vigilant in their minds, always associate the name of the cooperative and their feelings in every purchase of products or services are always impressed by the vigilant female cooperative. this supports the opinion of the study results of roy and banerjee [32]; aaker [12]; bearden and etzel [33]; and park and arinivasan [34] which state that brand image can be interpreted as an association that is collected significantly in the minds of consumers and brand image has a belief in the uniqueness of products or services produced by companies, which in this case are vigilant women cooperatives. the results of the description of the quality received by the members of the alert women cooperative in this study were obtained with a score above 3, which means that the members of the alert women cooperative feel that what is perceived about the products or services offered by the alert women cooperative is at least the same as the reality they expect. the results of this study support the opinion of aaker's study, (1991: 85-86); zeithaml [38]; erenkol and duygun [39] which state that the quality of money received is the customer's overall perception of the quality and greatness of a product or service compared to similar products or services offered by its competitors, besides that the quality received is the result of the buyer's subjective assessment of the product or services in purchasing activities, in this case the subjectivity meant is alert women cooperative members. path analysis or path in the analysis, it is necessary to show an analysis of variance table to detect the feasibility and suitability of multiple linear regression models that describe the joint influence of the variables of brand awareness, brand association, brand loyalty, brand image, quality received on brand equity as in the following table. table 1. analysis of variance the test result f = 8,057 with a significance level value = 0,000, which means that the multiple linear regression model is feasible and suitable or acceptable. mathematically, the multiple linear sinergi, volume 11 number 1 maret 2021 44 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand regression model based on the calculation results of table 2 regarding the regression coefficient can be written about the multiple linear regression equation as follows. this multiple linear regression equation is obtained from table 2 which includes multiple linear regression coefficients and the results of the t-value test with a significance level as follows. table 2. multiple linear regression coefficients note: dependent variable is brand equity (be) by considering table 1, the multiple linear regression equation, and table 2 it can be explained that this multiple linear regression model is said to be suitable and feasible, but when considering each regression coefficient, it turns out that the test results that show significant or acceptable are the regression coefficient for the loyalty variable. brand and quality received that is equal to t count = 2.762 with sig. = 0.007 and t count = 2.142 with sig. = 0.034. thus, the multiple linear regression equation is still not able to predict the brand equity of each of the variables that explain it. however, when observed using partial least square starting from the effect of brand awareness on brand association, the effect of brand association on brand loyalty, the effect of brand loyalty on brand image, and the effect of brand image on the quality received can be shown in table 3 partial least square page 46. such as the following. table 3. partial least square information: ba = brand awareness; bs = brand association; bl = brand loyalty bi = brand image; qr =quality received. table 3 shows that the linear regression coefficients for the four linear regression models indicate that both the constant and the regression coefficient are significant. when observed, it can be shown that the influence model of km on am for the test results f = 37.966 and sig. = 0,000; the influence model of am on lm for the test results f = 32.547 and sig. = 0,000; lm influence model on cm for test results f = 30.943 and sig. = 0,000; and the influence model of cm on kd for the test results f = 55.017 and sig. = 0,000. therefore, these four linear regression equation models are feasible and suitable and can be used to predict each independent variable on the dependent variable. in addition, seen from the sign of the regression coefficient shown, it shows that the direction of the relationship that can influence it is positive and significant for the four linear regression models. the next step in the path diagram analysis will display an image showing the existence of a causal relationship between variables that leads to one variable, namely brand equity. this figure shows the sequence of relationships between variables that point to one variable as follows. sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 45 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand figure 1. path diagram caption 1: k.j.= path coefficient sig.= significant s = significant; nt = not significant hypothesis test figure 1 path diagram shows the interrelated relationship between variables that goes in one direction. the intended variables can be started from the brand awareness variable that leads directly to brand equity, but it can also be that brand awareness indirectly leads to brand equity but through brand association. the test results in the path analysis show that brand awareness has a direct positive effect on brand equity which is insignificant, which is shown by the path coefficient of 0.078 with a significance level of 0.407. brand awareness can also have an indirect positive effect on brand equity through brand association. the test results show that brand awareness has a positive and significant direct effect on brand association as indicated by a path coefficient of 0.493 with a significance level of 0.000, then brand association has a positive and insignificant effect on brand equity as indicated by a path coefficient of 0.017 and a significance level of 0.872. this result can be said that brand awareness influences brand equity which is mediated by brand association which is not significant. this indicates that the first research hypothesis which states that there is an effect of brand awareness on brand equity mediated by brand association is rejected or not proven. the results of this study do not support the opinion of severi and kwek's [44] study which states that there is a positive and significant relationship between brand awareness and brand equity mediated by brand association. in addition, the results of this study also do not support the results of the aaker study [12];[13]; tong and hawley [41] state that brand awareness is a basic attribute and reflects brand equity, as well as the results of a study by huang and sarigollu [42] which state that brand awareness is constructed into brand equity. however, the results of this study support the opinion of atilgan et al., [24]; pappu [25] which states that there is a positive correlation between brand awareness and brand association. the test results in the subsequent path analysis in terms of brand association have a direct positive effect on brand equity and it is not significant, which is indicated by the magnitude of the path coefficient of 0.017 with a significance level of 0.872. furthermore, it can be observed that the results of the brand association test have a positive and significant effect on brand loyalty with a path coefficient value of 0.465 and a significance level of 0.000. meanwhile, brand loyalty has a positive and significant effect directly on brand equity with a path coefficient of 0.279 and a significance level of 0.007. thus, it can be said that brand association has a positive and significant indirect effect on brand equity by having to go through brand loyalty. this shows that the second research hypothesis which states that there is an effect of brand association on brand equity mediated by brand loyalty is accepted or proven. the results of this study support the opinion of severi and kwek's [44] study which states that there is a positive and significant relationship between brand association and brand equity mediated by brand loyalty. the results of this study support the opinion of the study by oliver [45] defining brand equity as a strong commitment to the desired or consistent pattern of product or service choices in the future, affected by stored situations and marketing efforts that have potential causes for behavior. shift or switch to another. travis [46] in his study stated the meaning and purpose of brand equity by building brand loyalty, theoretically there is a relationship between brand association, brand loyalty and brand equity that has been approved, but there are still weaknesses or shortcomings that are mediated between the three constructs. however, the results of this study do not support the results of the studies atilgan et al., [24] and yoo et al., [29] found that if customers have more positive associations towards a brand, they are more loyal to the brand and so on. aaker [12] sinergi, volume 11 number 1 maret 2021 46 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand in his study believes that brand association and brand equity are strongly and positively related to one another, if the direction of his review is on commitment and quality, customers show purchases that are so familiar with the brands they buy, as a study by aaker [12], tong and hawley [41], marinova et al., [43], and yoo et al., [29]. the test results in the next path analysis in terms of brand loyalty have a positive and significant effect directly on brand equity as indicated by the amount of path coefficient of 0.279 with a significance level of 0.007. furthermore, the results of the brand loyalty test have a positive and significant effect directly on brand image with a path coefficient value of 0.456 and a significance level of 0.000. meanwhile, brand image has a direct positive effect on brand equity which is not significant with a path coefficient of 0.085 and a significance level of 0.420. the results of this study can be said that brand loyalty has no significant effect on brand equity mediated by image. this indicates that the third research hypothesis which states there is an effect of brand loyalty on brand equity mediated by brand image is rejected or not proven. the results of this study do not support the opinion of severi and kwek's [44] study which states that there is a positive and significant relationship between brand loyalty and brand equity mediated by brand image. the results of this study also do not support the opinion of gladden and milne [47] who state the belief that one of the components of brand equity is brand image, but the results of this study support the results of the study by yoo et al., [29]; roy and banerjee [32] state that there is a positive and significant relationship between brand loyalty and brand image and state that brand image is a form of consumer feelings and thoughts towards a particular product or service brand that is produced as a consequence of brand loyalty owned by these consumers. the test results in the next path analysis in terms of brand image have a direct positive effect on brand equity and it turns out to be insignificant as indicated by the path coefficient of 0.085 with a significance level of 0.420. furthermore, the results of the brand image test have a positive and significant effect on the quality received by the alert women cooperative members with a path coefficient value of 0.564 and a significance level of 0.000. while the quality received by the members of alert women cooperatives has a positive and significant effect directly on brand equity with a path coefficient value of 0.222 and a significance level of 0.034. thus, it can be said that brand image has a positive and significant indirect effect on brand equity by having the quality received by women cooperative members be alert. this shows that the fourth research hypothesis which states that there is an effect of brand image on brand equity is mediated by the quality received by members of the alert female cooperative which is accepted or proven. the results of this study support the opinion of severi and kwek's [44] study which states that there is a positive and significant relationship between brand association and brand equity mediated by brand loyalty. in addition, it also supports the study results of richardson et al., [36] from the results of their study that consumers always try to find products that have provided a brand image obtained from the overall perception derived from certain product specifications, so that products with high brand images will become choice because it is believed to provide superior quality and value. meanwhile, according to the results of the study by jacoby et al., [37], in conducting their experimental research, they found that consumer perceptions of value and quality significantly affect brand image. similar conclusions are shown from the results of the studies of shimp and bearden [48], rao and monroe [49] that brand image is the main goal on several occasions and is the fastest reference for determining product value and quality. discussion the results of descriptive analysis and hypothesis testing from path analysis turned out to be the first research hypothesis which states that there is an effect of brand awareness on brand equity mediated by brand association which is rejected or not proven. the results of this study do not support the results of the study by severi and kwek [44] which state that there is a positive and significant relationship between brand awareness and brand equity mediated by brand association. nor does it support the results of the study by aaker [12];[13]; tong and hawley [41] state that brand awareness is a basic attribute and reflects brand equity, as well as the results of a study by huang and sarigollu which state that brand awareness is constructed into brand equity. however, this study supports the opinion of atilgan et al., [24]; pappu [25], which states that sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 47 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand there is a positive correlation between brand awareness and brand association. because the test results based on partial least square that the direct positive effect of brand awareness on brand equity is not significant which means it is not proven and the direct positive effect of brand association on brand equity is also not significant or not proven, although the test results have a direct positive effect on awareness brand on brand equity is significant, which means it is proven. this could also be because in terms of the results of the response to brand awareness of women cooperative members, alertness is still not strong enough to influence brand equity, considering that the results of the response to brand awareness are still lower than the results of the response to brand equity. however, the results of the response to brand awareness significantly and positively influence brand association, but brand association as a mediator of brand awareness is still not consistent in influencing brand equity, even though the results of the response to brand association are stronger than the results of the response to brand equity. therefore, statement items indicating brand awareness need to be reviewed in the future, because the results of this study are still not consistent in influencing brand equity. the results of descriptive analysis and hypothesis testing from path analysis show that the second research hypothesis which states that there is an effect of brand association on brand equity is mediated by brand loyalty is accepted or proven. these results support the results of the study by severi and kwek [44] which states that there is a positive and significant relationship between brand association and brand equity mediated by brand loyalty. in addition, it also supports the results of the study by oliver [45] that brand equity is a strong commitment to the desired or consistent pattern of product or service choices in the future, influenced by stored situations and marketing efforts that have potential causes for shifting behavior. or switch to another. likewise, it supports the results of the study by travis [46] which states the meaning and purpose of brand equity by building brand loyalty, and theoretically there is a relationship between brand association, brand loyalty and brand equity that has been approved, although the results of the study state that there are still weaknesses or shortcomings that are mediated between the three constructs. however, the results of this study do not support the results of the studies of atilgan et al., [24] and yoo et al., [29] which found that if customers have more positive associations towards a brand, they are more loyal to the brand and so on. aaker [12] in his study believes that brand association and brand equity are strongly and positively related to one another, if the direction of his review is on commitment and quality, customers show purchases that are so familiar with the brands they buy, as a study by aaker [12], tong and hawley [41], marinova et al., [43], and yoo et al., [29]. it should also be understood based on partial least square that brand association has a direct positive effect on brand equity which is not significant, while brand association has a positive and significant effect on brand loyalty and brand loyalty has a positive and significant effect on brand equity. therefore, the position of brand loyalty fully mediates the positive and significant effect of brand association on brand equity. thus, it can also be said that the result of brand association response which is quite strong compared to the response of brand equity for alert women cooperative members has not been able to directly influence brand equity. meanwhile, based on partial least square, brand loyalty has a positive and significant effect directly on brand equity. judging from the results, the response to brand loyalty is quite strong compared to the response to brand equity for alert female cooperative members that it can directly influence brand equity. thus, it can be said that brand loyalty responded to by alert female cooperative members to be an important factor or can be a bridge for cooperative members who associate brands in influencing the brand equity of wary women cooperatives. the results of descriptive analysis and hypothesis testing from path analysis turned out to be the third research hypothesis which states that there is an effect of brand loyalty on brand equity mediated by the brand image is rejected or not proven. this study does not support the results of the study by severi and kwek [44] which states that there is a positive and significant relationship between brand loyalty and brand equity mediated by brand image. the results of this study also do not support the opinion of gladden and milne [47] who state the belief that one of the components of brand equity is brand image, but the results of this study support the results of the study by yoo et al., [29]; roy and banerjee [32] state that there is a sinergi, volume 11 number 1 maret 2021 48 sarwani1), heru suprihhadi2), andry herawati3) the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand positive and significant relationship between brand loyalty and brand image and state that brand image is a form of consumer feelings and thoughts towards a particular product or service brand that is produced as a consequence of brand loyalty owned by these consumers. the absence of proof of the third hypothesis from the research results can be understood because the test results are based on the partial least square that the positive and significant effect is brand loyalty directly on brand equity which means it is proven, as well as the test results of the positive and significant effect directly brand loyalty to brand image which is also proven. however, partially the least square that brand image has a positive effect on brand equity is not significant. an important cause of this condition is that brand image does not consistently affect brand equity. this could also be due to the result of the response of the brand members of the vigilant female cooperative that is still not strong enough to influence brand equity, although the tendency of the response of the female cooperative members is that the tendency is quite strong compared to the result of the response to the brand equity. therefore, the statement items indicating brand image still need to be reviewed in the future in relation to brand equity, so the results of this study are still inconsistent that brand image affects brand equity. thus, the position of brand image as a mediation of the influence of brand loyalty on brand equity can be said to be inconsistent or does not have an important role. the results of descriptive analysis and hypothesis testing from path analysis show that the fourth research hypothesis which states that there is an effect of brand image on brand equity mediated by the quality received is acceptable or proven. the results of this study support the results of a study conducted by severi and kwek [44] which states that there is a positive and significant relationship between brand image and brand equity mediated by the quality received for alert female cooperative members. in addition, it also supports the results of the study by richardson et al., [36] which states that consumers always try to find products or services that have provided a brand image that is obtained from the overall perception derived from the specifications of a particular product or service, so that the product or service with an image high brands will be the choice because they are believed to provide superior quality and value. meanwhile, according to the results of the study by jacoby et al., [37], in conducting their experimental research, they found that consumer perceptions of value and quality significantly affect brand image. similar conclusions are shown from the results of the studies of shimp and bearden [48], rao and monroe [49] that brand image is the main goal on several occasions and becomes the fastest reference for determining the value and quality of a product or service. therefore, the quality position received by women cooperative members is aware of products or services that fully mediate the positive and significant influence of brand image on brand equity. thus, it can also be said that the results of the response to brand image which is quite strong compared to the response to brand equity for alert women cooperative members have not been able to directly influence brand equity. meanwhile, based on the partial least square, the quality received by alert women cooperative members has a positive and significant effect directly on brand equity. likewise, partially the least square brand image has a positive and significant effect on the quality received by alert women cooperative members. thus, it can be said that the quality received by the alert women cooperative members who are responded to is an important factor or can be a bridge for cooperative members who in their minds provide a brand image to influence the brand equity of the alert women cooperative. iv. conclusion conclusion based on the results of the research and discussion that has been stated and referring to the research objectives, it can be concluded as follows: (1) the research hypothesis which states that there is an effect of brand awareness on brand equity mediated by the alert women cooperative brand association in the city of surabaya is insignificant or not proven, (2) the research hypothesis which states that there is an effect of brand association on brand equity mediated by brand loyalty of alert women cooperatives in the city of surabaya is significant or proven, (3) the research hypothesis states that there is an effect of brand loyalty on brand equity mediated by the brand image of the alert women cooperative in the city of surabaya is not significant or not proven, (4) the research hypothesis which states that there is an effect of brand image on brand equity mediated by the sinergi, volume 11 number 1 maret 2021 sarwani1), heru suprihhadi2), andry herawati3) 49 the effect of associated mediation, loyalty, brand image, and the quality accepted to the equity of the brand quality received by members of the alert women cooperative in the city of surabaya is significant or proven, (5) research findings show that brand loyalty of vigilant women cooperatives in the city of surabaya is fully a mediation and as an important factor to bridge brand associations in influencing cooperative brand equity, and (6) the research findings show that the quality received by female cooperative members is aware of products and services fully become a mediator and as an important factor to bridge the brand image in influencing cooperative brand equity. recommendation 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[50] u. sekaran, “research methods for business (metodologi penelitian),” salemba empat, jakarta, 2011. [51] j. hair, w. black, b. babin, and r. anderson, multivariate data analysis seventh edition. 2014. sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 41 the marketing mix effect of interests in high school students choose nations children christianity surabaya agus sukoco narotama university e-mail: agus.sukoco@narotama.ac.id (accepted: 20-july-2016; revised: 20-august-2016; published: 10-september-2016) abstract.this study aims to determine how much influence the marketing mix to the acquisition decision a student at the college of christian religion anakbangsa. the research model used in this research that using a questionnaire (questionnaire), the sample in this study 81 students who were students nations children stak. the analytical method used is multiple regression analysis. from the results of the study indicated that there is the influence of simultaneous perception of the marketing mix to the acquisition stak nations children student in surabaya. where the value of the highest simultaneously shown on variable x5 is people, with a value of 0.658 or 65.8%, to the presentation of student acquisition. partially percept ion there are four variables, namely the product variable (x1)with a value of 0.647 or 0.647%, the variable price (x2)with a value of 0.601 or 60.1%, variable promotions (x3)with a value of 0.611 or 61.1% and variable locations ( x4)with a value of 0.658 (65.8%) were the most influential in the interest of students. besides the variable (x5)is a dominant influence on the variable interest of students choose stak anakbangsa surabaya. keywords: marketing mix, interests student 1. introduction yayasan pendidikan anak bangsa, presents the college of christian religion anak bangsa (stak anak bangsa), as a manifestation participated fair in achieving the goals of national education in indonesia, with the motto "nations children intelligent, nation qualified" stak nations children was established on july 10, 2009, sk establishment ps: mount zion foundation chairman. number sk establishment ps (*): 15 / sk / ybz / vii / 09, with the number sk operating permit (*): dj.iii / kep / hk.00.5 / 553/2012. location lectures stak nations children surabaya has two campuses, the campus of a is in menanggal jalan 1 / 10c, gayungan, surabaya and campus b is located at jalan kartika manyar east no. 6, surabaya. through stak nations children expected to be a forum for students to become a christian religious educators, experts in the field of teaching and educating in the school as a teacher of religion, both in elementary, junior high, high school, and a church service. stak nations children implementing the national curriculum that is issued by the director general of the ministry of religious affairs guidance christians and curricula tailored to the needs of the institution with the students' needs and the environment. so there should be a marketing strategy, through the marketing mix, the study chose the product, price, promotion, location, and facilities / infrastructure instructional media, as the cornerstone of the marketing mix to the acquisition of students. based on the above, sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 42 the authors are interested in doing research in stak anak bangsa, with the title of the influence of the marketing mix to the interest of students choose the college of christian religion anak bangsa surabaya. the influence of independent variables on the dependent variable is the effect of the product, price, promotion, location, and the people, against the interests of students choosing stak nations children surabaya as an option for continuing undergraduate students chose 1. a decision stak nations children's school in surabaya due to the existence of products liking, competitive pricing, smooth distribution system as well as the promotion of good. stak product excellence nations children surabaya in this case can be realized in the subjects that are in accordance with the national curriculum guidance issued by the director general of the ministry of religious affairs christians and curriculum tailored to the needs of the institution with the needs of students, and the environment. while the price is proxied by the suitability of price and quality, comparison with other christian high school in the city of surabaya, as well as comparison with the high school of christianity in other cities. their marketing mix in synergy, it is expected that applicants will make purchasing decisions / students choose stak nations children surabaya, and also perform mouth to mouth promotion to invite relatives, friends and others to join in stak anak bangsa surabaya. 2. literature review 2.1 marketing event marketing is often mistaken for sales and promotional activities, marketing actually bukam merely conducting sales activities and sales promotion alone. sales and promotions are one of the few actual marketing function is to identify consumer needs, develop the right products, set pricing, distribution and promotion implement effective so that it can be said that it is a series of marketing activities of the social process. according to kotler (2000), marketing is a social process in which individuals and groups obtain what they need and want by creating, offering, and exchanging products yanng valuable to other parties. larreche (2000), marketing is a social process that involves important activities that allow individuals and companies to get what they need and want through the exchange dengtan other parties to build its exchange relations. while farrell (1995), describe marketing is the process of planning and execution of the design, to pricing, promotion, and distribution of ideas ,, goods and services or create pertukara that meet individual and organizational goals -sasaran. degan is based on some understanding of marketing above, semnuanya have goals and principles sam that marketing is not only related to penjuaklan and promotion, but also an activity that has a social sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 43 dimension and oriented to the satisfaction kebutuha and desires of consumers through the exchange. the marketing mix is an activity to make sales and purchases, resulting in mutually beneficial agreement with the transactions and provide the benefits of the products bought and sold. discuss marketing strategy, the concept of the marketing mix (marketing mix) is always important to note. kotler (2003) defines the marketing mix as a set of marketing tools used by a company to achieve the object of marketing specified in the appropriate target market the product. according lupiyoadi creep (2001) defines the marketing mix is a tool for marketers consisting of various elements of a marketing program that should be considered that the implementation of marketing and positioning stratergi established by the company running successfully. according to mc carthy (in kolter, 1997) classifies the four elements of the marketing mix tools (4p), the product (products), price (price), place (place) and promotion (promotion). 4p marketing mix is often successful for business in goods. but for the four service businesses marketing mix is felt to be insufficient. various additional elements require attention in the service business. menrut booms and bitner (in kotler, 1997) marketing mix strategy needs to be expanded by adding three-dimensional components in the marketing of services, namely the person (people), physical evidence (physical evidence), and the process (the process). the third element is related to the nature of the services which the product or operation to consumption is a series that can not be separated and involve consumers and service providers directly (there is interaction directly). according to kotler (1999: 8) argues that the marketing strategy is a social and managerial process in which individuals and groups obtain what is needed and desired by creating, offering, and exchanging products of value with others. understanding shows that contain aspects of social marketing strategies both individually and collectively to meet the needs and desires, as a result of the desire and need, so it creates an interaction called the exchange transaction of goods and services. the goal is to meet the desires and needs of consumers both to individuals and groups. american marketing association (in assauri, 2001) says that the marketing strategy is the result of work performance of business activities relating to the flow of goods and services from producer to consumer. in this case many marketing strategy decisions that must be made well before the product is produced, such as decisions concerning the product made, market, price and promotion. related to product marketing educational services, according to alma (2011) marketing functions in education is to form a good image of the institution in order to attract a number of sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 44 prospective students, the educational institutions, using or developing efforts strategies known to the efforts of marketing mix strategy kotler (in hurriyati 2010) proposed definition of the marketing mix (marketing mix), is a set of marketing tools (marketing mix) that can be used by educational institutions to achieve its marketing objectives in the target market. in general, an education unit has a goal and to achieve it requires strategy. according to alma (2008: 64) the strategy is a unified comprehensive and integrated plan that connects between an organization's internal strengths with opportunities and threats external environment. the strategy is designed to ensure that organizational goals can be achieved with the right. the substance of the strategy is basically a plan. because the strategy related to the evaluation and selection of alternatives available to a management company in achieving its intended purpose. according to kotler (2000) marketing is a social and managerial process in which individuals and groups obtain what they need and want by creating, offering and exchanging products of value with others. furthermore, according to kotler and armstrong (2005) that the marketing mix is a set of tactical marketing tools and controlled that combined to produce the target market response. in this case in the form of educational service marketing mix elements of educational organization that can be controlled by the organization in communicating degan learners and will be used to satisfy learners. in line with this assauri (2009) stated the marketing mix is a combination of variables or activities that constitute the core of the marketing system, a variable that can be controlled and used by persahaan to influence student responses in target markets. hurriyati (2010) proposed the concept of the marketing mix tadisional(traditionalmarketingmix)consists of 4ps product (product), price (theprice), place (places / locations) and promotion (promotion). meanwhile for marketing services. zeithaml said its marketing mix should be extended(expandedmarketing mixforservices)with the addition of nontraditional elements mix, namely people (people), physical evidence (physical facilities), and process (process), so that a seven-element (7p). education services according to hurriyati (2010) generally have characteristics utamayaitu: a. intangible(intangibility),intangible services such as produkfisik, which led to the service user education can not see, smell hear, and feel the results before they consume (into subsystems educational institutions). b. no separate(inseparability),education services can not be separated from its source, namely the educational institutions that offer these services. that is, education sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 45 services produced and consumed simultaneously (simultaneously) at the same time. c. varies(variability),the service is highly variable because it is nonstandarized output, it means a huge variation, the quality and type, depending on who, when, and where the services are produced. d. not durable(perishability),the service is a commodity not durable and can not be saved. alma (2008: 51) megemukakan educational services marketing is the activity of educational institutions provide services or deliver educational services to students in a satisfactory manner. based on these definitions can be concluded that the educational services marketing is an activity undertaken by educational institutions to analyze, plan, implement and control programs that have been formulated so as to satisfy learners. 2.2 student satisfaction stauss and neuhaus (1997) quoted fandhy & gergorius (2005: 203) distinguishes five types of satisfaction and two types of dissatisfaction by a combination of emotions specific to the service providers, expectations regarding the capabilities of future performance service suppliers, and interest in behaving to choose again service providers concerned, these types are: a. demanding customersatisfaction,an active type of satisfaction, relationships with service providers stained positive emotions, especially optimism and confidence. based on the positive experience in the past, customers with the type of satisfaction is hoped that the service provider will be able to satisfy their expectations are increasing in the future, other than that they are willing to continue the relationships that satisfy the service providers so that loyalty will depend on the ability of service providers to improve their performance in line with the demands of customers. b. stable customer satisfaction that customers have the aspiration level of passive and demanding behavior. positive emotions to the service providers is characterized by steadiness and trust in a relationship that is built up today, dima they want things to stay the same. based on the positive experiences that have formed, they are willing to continue the relationship with the service provider c. resigned customersatisfaction,customers in this type satisfied namur not the result of fulfillment of expectations, namur is based more on impression unrealistic, behavior tended to be passive tend not willing to make efforts in demanding improvements , d. stable customerdissatisfaction,the customer is not satisfied with the performance of the service provider but they tend not to do anything. relationships with service providers and colored by negative emotions asumís their sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 46 expectations in the future will not be met, and did not see an opportunity for change and improvement. e. demanding customer dissatisfaction aspiration level characterized by active and demanding behavior, at the level of emotional dissatisfaction caused protests and opposition, they actively demand improvements. in measuring customer satisfaction, kotler (2000: 38) suggests a number of ways including: a. complaint and suggestion system (system of complaints and suggestions), the information of the suggestions and complaints will be used as the data in anticipating and development company; b. customer satisfaction surveys (customer satisfaction survey), the level of student complaints of data used in measuring satisfaction, it is biased through surveys, post, telephone, or the questionnaire; c. ghost shopping (shoppers shadows), sending people to make purchases in the company of others or the company itself to see clearly the advantages and disadvantages of its services; d. lost customer analysis (analysis of customers who switch), the contacts made to customers who have switched to another company to be used as a performance improvement in increasing satisfaction. in general it can be said that the emergence of dissatisfaction of students due to: (1) does not match expectations with reality dialaminga, (2) dissatisfaction in service during the process of enjoying the services, (3) the behavior of personnel is not satisfactory, (4) the atmosphere and physical environmental conditions no support, (5) the cost is too high, because of distance, time and the price is too high, (6) the promotion does not correspond to reality. 3. methods 3.1 subjectsstudy in this the overall student population is active stak nations children attend school in surabaya during the study. samples are partly or representative of the population studied, arikunto (2002: 109). the sample used in this study are students who attend school in surabaya stak nations children during the study. many samples selected in this study amounted to 81 students, the student class of 2009 to 2014. stak nations children surabaya, graduating student of 1st 2015. 3.2 data collection data collection is a process approach to the subject and the process of collecting the necessary characteristics of a subject in a study. the data collection tools are selected and used by researchers in its activities in order to collect these activities into a systematic and easy by it. in this study, the overall student population is active stak nations children attend school in surabaya during the study. sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 47 3.3 analysis of datadata processing in this study using multiple linear regression analysis with spss 13.00 for windows then obtained multiple linear regression equation, as follows. table 1 multiple regression analysis m o d el unstandardized coefficients t sig. b std err or constant 46 168 882 9 5229 0000 products (x0,249 0,482 0,517 0,607 1) promotion (x0,039 0,313 0,124 0,901 2) area (x3) 0251 025 3 0993 0324 price (x4) 0720 042 1 1709 0092 persons (x5) 0213 018 6 1148 0255 r = 0290 r square = 0084 f count = 1,382 sig. = 0.000 ftable = (df: 5/75; α = 5%) = 2,337 ttable = (df: 5/75; α / 2 = 0.025) = 1992 based on the calculation above, obtained by multiple linear regression equation as follows: y = 0249 (x1) + 0.039 (x2) + 0251 (x3) + 0720 (x4 ) + 0.213 (x5) the interpretation of linear regression models above are as follows: a. constant (a) is generated by 46 168 indicates that interest students in stak anak bangsa (y) amounted to 46 168 single-unit if the variable product (x1), price (x2), promotion (x3), location (x4), and people (x5) is constant. b. products coefficient value (β1) of 0249 indicates that if the variable product (x1), increased the unit, it will result in the student's interest stak anak bangsa (y) will increase by 0249, assuming other variables constant. c. promotion coefficient value (β2) of 0039 indicates that if the price variable (x2) improved the unit, it will lead to increased student interest in stak anak bangsa (y) by 0039, assuming other variables constant. d. the location coefficient values (β3) of 0251 indicates that if a variable location (x3) increased the unit, it will lead to increased student interest in stak anak bangsa (y) by 0251, assuming other variables constant. e. the coefficient of price (β4) of 0720 sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 48 indicates that if the price variable (x4) increased the unit, it will lead to increased student interest in stak anak bangsa (y) by 0720, assuming other variables constant. f. the coefficient value (β5) of 0.213 indicates that if the variable person (x5) improved the unit, it will lead to increased student interest in stak anak bangsa (y) by 0213, assuming other variables constant. 4. results with respect to the formulation of the problem and research hypothesis proposed as described in the previous section, it can be explained that variables that affect student interest (y) is the product (x1), price (x2), promotion (x3), location (x4 ), and people (x5). to test the hypothesis that the first test was used simultaneously (f test) which indicates that if all the independent variables are the product (x1), price (x2), promotion (x3), location (x4), and people (x5) affect the interest of students in stak anak bangsa surabaya (y). because the f count> f table, namely 2,337> 1,382, then h0 is accepted at the 5% significance level so that it can be concluded that the product variable (x1), price (x2), promotion (x3), location (x4), and (x5 ) and does not affect the interest of students in stak anak bangsa surabaya (y). table 1 also shows the value of correlation coefficient (r) indicates how closely the relationship between product variables (x1), price (x2), promotion (x3), location (x4), and people (x5) and the interest of students in stak anak bangsa surabaya (y). the value of the correlation coefficient is equal to 0.290. these values indicate that the strong relationship product variable (x1), price (x2), promotion (x3), location (x4), and people (x5) and with variable interest of students in stak anak bangsa surabaya (y), because the value of the correlation between 0.2 s / d 1. the coefficient of determination or r 2 is used to measure the effect of all independent variables is the variable product (x1), price (x2), promotion (x3), location (x4), and people (x5) and the variable namely bound student interest (y). from the results of multiple regression analysis obtained by the coefficient of determination (r2) = 0.2902, at 0.0841 which indicates that the contribution of variables influence the product (x1), price (x2), promotion (x3), location (x4), and people (x5) on the interest student (y) at 8:41%, while the remaining 91.59% influenced by other variables outside the model studied. to test used hipostesis second partial test (t test) that shows the partial effect of each independent variable on the dependent variable (non-free). in this stage testing of the independent variables included in the models created to determine whether the independent variable (x) partially have a significant influence on the dependent variable (y). table 2 sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 49 test results partial effect variable t count sig products (x1) 0517 0607 price (x2) 0124 0901 promotion (x3) 0993 0324 area (x4) 1709 0092 person (x5) 1148 0255 based on the analysis of the t test, then appropriate determination procedure hypothesis α = 0.05 / 2 = 0.025 with df (n k 1) = (81-5-1 = 75) in which the table = 1992, so the results of t test analysis, as table 2 above can be seen as follows. a. aspects of the product obtained t for 1992 is greater than ttabel 0517, h0 is rejected at the 5% level so that the conclusions in partial product (x1) affect the interests of students. b. aspects of prices obtained t for 1992 is greater than ttabel 0124, h0 is rejected at the 5% level so that the conclusions in partial price (x2) affect the interests of students. c. the promotional aspect obtained t for 1992 is smaller than ttabel 0993 h0 accepted at the 5% level so that the conclusions in partial sale (x3) did not affect the interests of students. d. aspects of the location obtained t for 1992 is smaller than ttabel 1709 h0 accepted at a rate of 5%, so the conclusion partial variable location (x4) does not affect the interests of students. e. aspects of the obtained t for 1992 is smaller than ttabel 1.1448 then h0 accepted at a rate of 5% so the conclusion partial variable (x5) do not affect the interests of students. 5. discussion in this study can be in the know that the highest average of the variable product (x1) contained in the statement "stak nations children already accredited ban pt" with an average of 3.91, which means the majority of respondents said "strongly agree", while the overall value an average of 3.88. the highest average of the price variable (x2) contained in the statement "according to i the price i paid for the study costs in stak children of the nation commensurate with the value / value of the program of study" with an average of 3.94, which means the majority of respondents said "strongly agree", whereas overall had an average value of 3.90. the highest average of promotion variable (x3) contained in the statement "information stak nations children easy i earn through social media" with an average of 3.89, which means the majority of respondents said "strongly agree", while as a whole has an average value 3.86. the highest average of the variable location (x4) contained in the statement "campus environment safe, comfortable and supportive educational process" with an average of 3.91, which means the majority of respondents said "strongly sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 50 agree", while overall had an average value of 3.91. the highest average of the variable (x5) contained in the statement of "power administration, friendly in providing information to students" with an average of 3.91, which means the majority of respondents said "strongly agree", while overall had an average value of 3.82. and the highest average of the variable interest of students (y) contained in the statement "the cost of study as a primary consideration for me to join in stak nations children" with an average of 3.80, which means the majority of respondents expressed "very setujuh", while overall had a mean value -rata 3:52. the value of the correlation coefficient is equal to 0.290. these values indicate that the strong relationship product variable (x1), price (x2), promotion (x3), location (x4), and people (x5) and with variable interest of students in stak anak bangsa surabaya (y), because the value of the correlation between 0.2 s / d 1. from the results of multiple regression analysis obtained by the coefficient of determination (r2) = 0.2902, at 0.0841 which indicates that the contribution of variables influence the product (x1), price (x2), promotion (x3), location (x4), and (x5) against the interests of students (y) at 8:41%, while the remaining 91.59% influenced by other variables outside the model studied. based on the partial test through spss version 13.00 for the output variable product (x1) obtained t for 1992 is greater than ttabel 0517, h0 is rejected at the 5% level so that the conclusions in partial product (x1) affect the interests of students. test pasial at variable rates (x2) obtained t for 1992 is greater than ttabel 0124, h0 is rejected at the 5% level so that the conclusions in partial price (x2) affect the interests of students. test pasial the promotion variable (x3) obtained t for 1992 is smaller than ttabel 0993 h0 accepted at the 5% level so that the conclusions in partial sale (x3) did not affect the interests of students. test pasial at variable locations (x4) obtained t for 1992 is smaller than ttabel 1709 h0 accepted at a rate of 5%, so the conclusion partial variable location (x4) does not affect the interests of students. the partial test variable (x5) obtained t for 1992 is smaller than ttabel 1.1448 then h0 accepted at a rate of 5% so the conclusion partial variable (x5) do not affect the interests of students. the coefficient of determination (r 2) is the biggest to the variable (x5) of 0.130 means the partial variable (x5) provide a dominant influence on student interest (y) with the percentage relationship of 13:00%. while that gives the smallest effect on the interests of students (y) is a variable price (x2) that is equal to 0.60%. 6. conclusion based on the research and analysis of the data and discussions that have been put forward, it can be summed up as follows: a. there is a simultaneous effect on the sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 51 perception of the marketing mix of student interests (y) in the college of christian religion anak bangsa surabaya. where the value shown in the highest simultaneous x2 is the (x5), with a value of 0.658 or 65.80%, against presentation of student interests christian high school prefer anak bangsa surabaya. b. partially perception there are four variables, the variable product (x1) with a value of 0.647 or 0.647%, the variable price (x2) with a value of 0.601 or 60.1%, variable promotions (x3) with a value of 0.611 or 61.1% and variable location (x4) with value of 0.658 (65.8%) were the most influential in the interest of students. besides the variable (x5) is a dominant influence on the variable interest of students choose stak anak bangsa surabaya. 7. recommendations based on the above conclusions, the authors can give some suggestions as follows: a. stak nations children surabaya expected to improve the quality of the marketing mix which includes: product, price, promotion, location, facilities / infrastructure instructional media. in order to obtain a student. b. stak nations children surabaya is expected to maintain and develop the quality of product, price, promotion, location, facilities / infrastructure media interest in learning new students to enroll in this school. references agusyana, yos. 2011. olah data skripsidanpenelitiandengan spss 19.elex media komputindo, jakarta buchari alma, 2007, manajemenpemasarandanpemasaranjas a; bandung: alfabeta. djaslim saladin, 2004, manajemenpemasaran; bandung: linda karya. kotler, philip., 2005, manajemenpemasaranedisikesebelasjili d 1; jakarta: pt. indeks. kotler, philip.,dan keller, kevin lane., 2007, manajemenpemasaran, edisikeduabelasjilid 2; jakarta: pt. indeks. lilik, paulus kristanto. 2006. prinsipdanpraktikpendidikan agama kristen. yogyakarta: andi nurindriantorodanbambangsupomo, 2002, metodologipenelitianbisnis; yogyakarta :bpfe yogyakarta. nursalam. 2003. konsep dan penerapanmetodologipenelitianilmukep erawatan.:salembamedika, jakarta priyatno, duwi. 2012. belajarcepatolah data stastitikdengan spss. andi, yogyakarta. sinergi, volume 6, number2 september 2016 agus sukocothe marketing mix effect of interests in high school students choose nations children christianity surabaya 52 ratihhurriyati, 2005, bauranpemasarandanloyalitaskonsume n; bandung: alfabeta. sarwono, jonathan. 2012. metoderisetskripsipendekataankuantit atifmenggunakanprosedur spss. elex media komputindo, jakarta subagyo, andreas b. 2004. pengantarrisetkuantitatifdankualitatif. kalamhidup, bandung sugiyono, 2002, statistikuntukpenelitian; bandung: alfabeta. sugiyono. 2009. metodepenelitianpendidikan, pendekatankuantitatif, kualitatif, dan r&d. bandung. alfabeta suparmoko, 1999.teknikpengumpulan data, yogyakarta: balaipustaka suparno, paul. 2006. filsafatkonstruktivismedalampendidika n, yogyakarta: usman, husaini. pengantarstatistika. jakarta: pt bumiaksara umar husein, 2002, manajemenrisetpemasarandanperilaku konsumen; jakarta: pt. gramediapusaka. wahab, abd. dan umiarso. 2011. kepemimpinan pendidikan dan kecerdasan spirirtual. arus media, yogyakarta sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 1 gender empowerment indicators: better management of resources to op timize results cristina lanteri la sapienza university, rome e-mail: cristina lanteri@ho tmail.com (diterima : 25-dese mber-2016; direvisi: 27-januari-2017; d ipublikasikan : 03-maret-2017) abstrac t.as a cultural anthropologist i strongly believe in the value of applied anthropology especially when it comes to international cooperation and development. thanks to a methodology principally based on participant observation i found that anthropologists benefit fro m a deep understanding of the social dynamics within a group. in this working paper i discuss my work for aida, a spanish ngo, in dha ka. several years ago, i was called to collaborate with this organization in order to set ‘gender empowerment in dicators’ for their projects. the activities, approved and financed by aida, we re imp le mented by tarango, a local ngo. the main goal of aida was to improve the conditions of wo men in specific urban and rural areas of bangladesh. women are seen by the inte rnational community as one of the major d riv ing forces in the development of a country. gender equality and the e mpowerment of wo men have been defined by the m illenniu m develop ment goals report as ‘preconditions for overcoming poverty, hunger and disease’ (un 2010, p.4). what i have found extre me ly interesting while wo rking at tarango was the strict relationship between economic and gender empowe rment, social capital and creativity. i found that being aware of the positive externalities of this relationship can lead to a more efficiently organized production, economic independence and most importantly a stronger sense of identity. keywords : ngos; gender empowerment; socia l capital; creativity introduction this working paper reports the results of my work in dhaka from the middle of august 2010 to the middle of october of the same year. my task during my stay in bangladesh was to create an efficient framework to develop tailormade qualitative gender indicators for a spanish ngo, aida (ayuda, intercambio y desarrollo), and its local ngo partner, tarango (training, assistance and rural advancement nongovernmental organization). all the activities implemented by tarango, have women as exclusive direct beneficiaries. the organization states that once women are considered a source for better living conditions for the entire household their status in the family and in the wider community grows allowing an increasingly gender-balanced society to develop (j kohinoor, 2010, interview, 20 september). the model of gender empowerment proposed by tarango, comes from a concept of empowerment as the ability of women to access the constituents of development through a dynamic process between economic independence and individual confidence. the actions promoted to achieve entrepreneurship development cover a diversified range of training programs (handicraft program new business sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 2 creation training courses) realized on the basis of beneficiaries’ needs, context and market analysis, resources available and respect for the environment. o nce the skills have been acquired, marketing facilitation and business advisory services are provided through the women entrepreneurship development program (wedp) together with means of acquisition of initial financial resources to invest (village saving and loans association program savings & microcredit -iga). methodology the methodology applied to collect the indicators to measure tarango’s results in terms of gender empowerment has been mainly based on direct observation and participatory methods. as an anthropologist i chose to follow the principles of participatory observation and i conducted open interviews with the main stakeholders. since i believe that women themselves should be agents o f their own development, they should definitely feel the ownership over the implemented activities but they should also be engaged in the monitoring and evaluation processes. the women involved in the ngo’s development programs, the final beneficiaries of the project, together with tarango’s staff have actively participated in the research and contributed to the decisions about what should be measured and what indicators should be used. personal interviews, open-ended discussion meetings and brainstorming sessions have been the consultation methods used to promote awareness among the members and to collect responses and the information necessary to consolidate the indicators. i chose to divide the indicators according to rowlands’ definition of empowerment (rowlands 1997). i found this definition particularly suitable in representing the different levels of gender empowerment outcomes described by the beneficiaries. the author argues that empowerment has three dimensions (rowlands 1997, p. 15): ‘personal dimension’, can also be defined as ‘power within’, referring to the development of ‘a sense of self and individual confidence and capacity (…) undoing the effects of internalized oppression’ ‘relational dimension’. the ‘power to’, allows the individual to develop ‘the ability to negotiate and influence the nature of a relationship and decisions made within it’ sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 3 ‘collective dimension’, ‘power with’, where ‘individuals work together to achieve a more exte nsive impact than each could have had done. collective action is based on co-operation rather than competition.’ the three dimensions perfectly interact in tarango’s projects and well represent the complexity of a non linear gender empowerment process. dividing the indicators according to these categories, i suggest is a way to measure the achievement of the different steps towards development as settled on by tarango’s vision. the detected indicators allow all elements to point out the economic, human and social (collective and individual) capital acquisition. indicators constructed as scale variables looking for the best way to transform the dense results of a qualitative research into a measurable source i went to do some research at brac red (bangladesh rural advancement committee – research evaluation division). brac is one of the largest development ngo in the world (strom 2001, p.3). it has been working in the rural areas of the country since 1972 to provide relief after the liberation war, at that time was a small organization known as bangladesh rehabilitation assistance committee. the organization started to work on poverty reduction providing access to credit through the rural development program (rdp) in 1979, two years after the grameen bank foundation, and changed its name in bangladesh rural advancement committee. nowadays brac defines itself has a ‘learning organization’ whose mission is to ‘empower people and community in situation of poverty, illiteracy, disease and social injustice’ (brac 2011). to realize its objective brac combines three different areas of action: poverty reduction, education and health care. brac red represents the heart of the ngo, continuously supporting the programs provides the staff with initial baseline survey, mid-point survey, achievement and impact studies. because of the long experience in the field, the results achieved and its complex structure, brac is highly regarded by the international community and considered a reliable partner in the development industry. looking for advice, i had the chance to talk with professor s. m.hashemi, director of brac development institute (bdi). sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 4 we discussed about the gender indicators that he developed for brac’s rural credit programs. ethnographic research was undertaken by grameen bank and brac to compare the results of their microfinance programs in terms of women empowerment in six villages from 1991 to 1994. the results have been published in 1996 (hashemi, schuler, riley 1996). according to professor hashemi it still a valid example of how to measure women empowerment. the researchers developed indicators constructed as scale variables. each indicator was divided in different components to measure a specific empowerment dimension, two of the scale variables received different weights while equal weights were assigned to all components. moreover, in creating the indicators specific actions have been included to take into account context’s variables that may influence people’s behavior. output of the process have been eight indicators: mobility, economic security, ability to make small purchases, ability to make larger purchases, involvement in major household decisions, relative freedom from domination within the family, political and legal awareness and involvement in political campaigning and protests. (hashemi, schuler & riley 1996, pp. 637-338) as explained in the paper by hashemi, schuler & riley (hashemi, schuler & riley 1996), for each indicator a specific set of questions has been developed. for example, to test if the beneficiary had achieved more mobility thanks to the program, a researcher would have filled up a list of places and asked if she had ever gone there. the destination were presented in scale from the closer, more familiar to more unusual ones: the market, a medical facility, the movies, outside the village. one point was given for each place visited and an additional point if the woman had ever gone there alone. a respondent with a score of three or better was classified as ‘empowered’ and coded as one. (in all of the empowerment variables ‘not empowered’ was coded as zero). to measure the indicator related to the ability to make larger purchases, different weights were given according to the importance of the different purchases in terms of women empowerment: one point for purchasing pots and pans, two points for children’s clothing, three points for saris for herself and four for buying the family’s daily food. in this case an additional point was given for each category if the money spent was ear ned by the woman. to be considered sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 5 empowered the beneficiary had to score at least five. i found the kind of measurement adopted particularly efficient and easily adaptable to the framework that i developed for aida and tarango. empowe rment dimensions and detected indicators indicators of personal empowerment: expansion of women’s mobility  taking her child to the doctor  going out with a friend obtained time management skills in relation to domestic and work environments  delivering products on time  schedule activities  punctuality in attending training classes and meetings access management and control over resources is improved  new information, skills and socia l network are acquired  able to make expenditure decisions (from spending money for her family to spending money for herself)  decide together with the husband about small and large purchases achieved women’s economic security  ability to make small and large purchases  contributed to family support  control over their loans (partial significant full) increase in respect from others  improvement in terms of status and bargaining power in the household  increased control over their personal circumstances (income, fertility, use of time, ability to attend meetings etc) increase in women self esteem, self confidence  decision making. perceive themselves as able and entitled to make decisions  express opinions  active, regular contribution, to discussion  acquired an ability to interact wit h people not belonging to a ‘familiar environment’. sense of self within a wider context.  women share their problems wit h the group and receive support and encouragement women change their selfimage  change in attitudes sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 6  women influencing other groups  emerging creativity  sense that more things are possible increased awareness  develop critical consciousness  acquire new information and skills acquired sense of agency in empowerment processes  emerging consciousness. individuals become ‘subjects’ in their own lives, developing a ‘critical consciousness’ indicators of relational e mpowe rment: expansion of women’s mobility  attendance at meetings outside o f the village  attendance at training outside o f the village  visits to friends  visits to her own relatives  going to the market direct relationships with the local and foreigner ngo representative  active participation at meetings with the founding bodies  submitting proposals  expressing opinions and feelings about the project, even if negative changes in the relationship with the husband  decrease in physical violence  decrease in symbolical violence  open discussion and opinions exchange  increased bargaining power in the household  change in the sexual relationship (‘…before like a rape case now kisses at night…’)  start talking together about birt h control methods improved relationship with the children, parents, in laws  increased respect from parents, in laws  improvement on how the mother treats the children (son vs daughter)  children more respectful and obedient. increased esteem of their mother  increased bargaining power in the household freedom achieved sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 7  relative freedom from dominatio n by the family wider social network  increased number of friends  new social capital acquired  wider referential group  understanding of self and others  sense of not being alone  support from others  share feelings with people not belonging to the familiar environment indicators of collective empowe rment: acquired organizational strength  organize assemblies, working groups and acquire their own management  successful in managing collective resources emerging solidarity  episodes of evidence of the group taking care of its members as group of reference  emerging of spontaneous mutua l assistance activities emerging collective identity, sense of belonging to a group, sense of agency as a collective.  development of a sense o f collective agency and purpose  identity and understanding o f themselves as group of people which can act in the wider community  emerging trust within the group  the group setting its own agenda  adherence to norms set within the group  increased level of cooperation developed conflict management resolution techniques  conflicts managed within the group  group’s members tackle problems together  decrease in conflict of interests leadership within the group  taking charge of decisions on their own terms without asking others for solutions or abandon the group in case of conflict  episodes of resistance to rules set by people not belonging to the group improved group confidence  women advocating change within the community as a group sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 8  pointing out weaknesses of the project to the n go representatives and staff  constructive proposals to the ngo representatives and staff  show evidence of conflict within the group to the ngo representatives and staff  internalized oppression becomes evident the indicators have been detected according to the categories of personal, relational and collective empowerment. each main indicators is completed by a series of sub-indicators that are meant to be used as sources for measurement and as points of reference to develop an appropriate questionnaire. once determined these indicators, the beneficiaries highlighted the ones that they considered the most significant dimensions. the dimensions c hosen were equally distributed among the three categories of personal, relational and collective empowerment. ‘achieved women economic security’ has been the first result to be mentioned as first step towards women empowerment, showing the importance of economic stability achieved through access to credit and appropriate training. all the other points chosen are related to changes in the relationship within the family group or towards the community at large: ‘increase in respect from others’, ‘changes in the relationship with the husband’, ‘wider social network’, ‘emerging collective identity, sense of belonging to a group, sense of agency as a collective’, ‘improved group confidence’. the development of a sense of belonging to a new network has a positive influence on household’s relations as well as on the previous reference group. gende r empowe rment and creativity as santagata states ‘creativity can be considered has an economic good produced by human mind’ (santagata 2004, p.5) and ‘creative industries are those originated by individual creativity, ability and talent’ (santagata 2009, p.3). development programs ofte n lead to handicraft production. many ngos like tarango, have their own brand and are part of the fair trade network. the general need is to find a balance between being a non-profit organization and having to deal with all the requests characteristic of a commercial dimension. profit and non-profit organizations are legitimisedby different referenc e systems that apparently could diverge in values sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 9 and purposes. during my stay in bangladesh i visited different kinds of organizations which deal with handicrafts and textiles and the reality has revealed to be more complex. corona industry is a profit organization and represents the biggest italian investment in bangladesh. it is considered a textile model industry and the commitment of its owners in helping people it’s outstanding. corona’s group counts other factories in c hina, marocco and myanmar, the bangladeshi one is specialised on the production of textile and is quite peculiar to that region. it started with the vow of mr corona to thank god for the recovery of his wife 25 years ago, since than this lovely couple has lived and worked in bangladesh. relying on dismissed machines coming from their other factories and on the support of the wider corona’s network, corona industry has been able to focus on the training of unskilled workers renouncing to an immediate profit. after many years of shared experiences and monitoring of the living conditions of the workers mrs corona reckons that employing almost only men is the most effective way to indirectly reach the weakest members of the society, women and children (g corona, 2010, interview, 25 september). aarong is the commercial branch of the bangladeshi rehabilitation assistance committee (brac), one of the biggest ngos in the world. aarong was created in 1978, six years after brac, to provide support and access to market to the local artisans living in the rural areas. as declared in its official website, the company employs mostly women and all of them are involved in brac’s development programs. this combination guarantees a multidimensional approach to development and transforms aarong in brac’s support entity. in fact,part of aarong earnings are invested in the ngo’s activities. in the same website aarong defines itself as the ‘protector and promoter of traditional bangladeshi products and designs’ (aarong, 2006), its brand is synonym of high quality and accurate design and it sells overseas as fair trade. aarong is aware of the importance and beauty of local motifs and patterns and knows how to make them appealing to international costumers, aarong houses a design library and in 2003 launchedtaaga, a collection that blends bangladeshi motifs and western style. organizations like corona and aarong have been successful in finding a balance between values and commercial issues. sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 10 both of them are good examples of creative industry. tarango is experiencing an increasing demand for its handicraft products and is still looking for the best solution to combine its vision with the requests of the profit sector. at the moment we can define tarango as a ‘potentially creative industry’. being aware of these connections, it’s important to be able to organizethe production more efficiently, to achieve the ngo economic independence and in strengthening the recipients’ identity. starting from the handicraft training activities all beneficiaries are involved in tarango’s production. the demand for their handiworks is often higher than the offer so all women are encouraged to pay attention to the quality of their work and sell through tarango to a network of international and local clients. as summarized by santagata (santagata 2009, pp.7-8) creativity represents one of economic development’s assets for different reasons: it is an input in aesthetic, decorative and design processes and so it has an impact on the intangible component and on the intellectual property of products it is an input in innovative technological processes and so it has an impact on innovation, productivity and the technical quality of products it is able to add a symbolical component to products and so it has an impact on market demand and competition it constitutes the link between the organization’s artistic, intellectual, aesthetic side and the economy being aware of creativity’s potentials becomes fundamental when dealing with a gender empowerment project like tarango’s. many ngos around the world train women, teaching them the basics of production but they often don’t seem aware of the implicit implications of a production in terms of identity. being mostly ‘design-based programs’, they could enjoy of the benefits of a creative process and play an important role in the transmission of traditional material culture. at tarango, the designer working on the international production covers the main position in the studio with a full time contract, while the one who draws models for the emergent local market has joined tarango just recently and is present just few days per week. the main items produced are bags and baskets. unfortunately the presence of local motifs in the handicrafts sold overseas is sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 11 almost nil and also the products for the local market tend to follow the patterns of the main collection. on the other hand, all materials used are local, manly jute, traditionally weaved cotton or a mix of cotton and jute. tarango has introduced natural dyes and it is promoting the use of recycled materials like cement bags and bill boards. human and physical capital: from training to access to credit the model of gender empowerment proposed by tarango, comes from a concept of empowerment as the ability of women to access the constituents of development through a dynamic process between economic independence and individual confidence. to achieve its objective, the organization has chosen to invest in human capital. according to the concept of ‘human capital’, introduced in the ‘60s by nobel prize winner theodore schultz with his ‘human capital theory’, human resources are a form of capital. investing in human capital means to invest in formal education, on-the-job training and adult education with the final objective of giving people the possibility of acquiring additional income by improving their production capacity. the training courses implemented by tarango are the result of the promotion of this theory by international organizations in developing countries. the organization itself talks indirectly about human capital referring to the provision of ‘a set of skills acquired through education and experience’. in addition, access to another fundamental ingredient of production, physical capital, is provided through the village savings and loans associations (vsla) in the rural areas. these associations deliver microfinance services and have been introduced by the ngo to give immediate access to capital for investments at a very low interest rate (5% interest rate, no interest for emergencies). vsla are a good example of member owned institutions (mois), mois represent an innovative and sustainable way of providing financial services in remote rural areas of the country avoiding the costs that formal, centralized microfinance institutions (mfis) have to face. vsla has been introduced for the first time by care in 1991 in niger and have soon proven to be very effective in reaching poor rural population in different african countries (allen 2002). through these village based associations, financial services have been adapted to sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 12 the recipient needs dictated by the lack of infrastructures common to most rural areas. having very limited costs related to staff, transportation and general expenses vsla is able to provide microfinance at a reasonable cost. according to tarango, and from what i could observe during my visits to the projects, the process related to savings and loans is entirely owned by the community. most of the people save money on regular basis and the money is always reinvested locally, mostly in assets for agricultural purposes. the groups are composed of about 20/25 members and they meet once pe r week to collect the savings and decide how to distribute the loans. the savings are accumulated in the form of shares with a minimum of 5 taka for one share, the interest rate on the loans is 5%. the borrowers have to declare to the other members how they will use the money and the amount of the loan has to be returned within a month. a security box for the money together with three different locks, is provided by tarango and four of the women are in charge of its custody. a step forward made by tarango has been connecting human and physical capital to gender empowerment. the ngo maintains that the possibility of a woman earning an income through her work coincides with the ability to access the main constituents of development: health, education, earning opportunities, rights and political participation. for this reason, women are trained by the ngo and women only can have access to vsla. observing several vsla meetings and talking with vsla’s members and tarango’s local staff in lalmonirhat, i could analyze the results of these associations in social terms. from the results of the interviews, it seems that being involved in a vsla improves women’s relationships with husbands and family members. on the other hand, from my research it emerged how misunderstandings and conflicts can rise from the vsla. the members have rules but the process of loans allocation is democratic and very flexible. the system relies on social pressure among the lenders/borrowers to guarantee financial discipline. it is difficult to determine to what extent husband and family members interfere with the decisions taken by the women involved in the association. i have been present at a particularly meaningful episode of conflict during one of their meetings. everything basically started from a minor misunderstanding sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 13 and a lack of capacity to deal with it within the group. the members decided not to give a loan to a woman because she didn’t ask for it when they were collecting the requests, suddenly her husband and relatives joined the discussion quite loudly and the solution that the members came up with was to expel the woman from the association. taking into account my and taran go representative’s presence at that meeting in terms of bias, this episode is still valid in highlighting some of the weaknesses of the vsla. we can question the autonomy of the association, detect lack of conflict management skills within the group and of protection towards its members together with the control over the woman’s decisions by husband and relatives. the relationship between the women and their families is very complex and continuously subjected to reassessments. often the man is still the one who decides how to allocate the money provided through the vsla by the woman. moreover the position that she acquires by joining the vsla, seems to reflect only a temporary change in her bargaining position within the household. for this reason we can consider the vsla as an important part of the overall program run by tarango because of the suitable access to credit provided, but not as strongly directly related,as expected, to gender empowerment. more than that, it is true that these women built deeper relationship between themselves becoming members of the same group. but, because of the limited amount of time they spend together at vsla and the kind of activities involved, the results in terms of social cohesion and networking is not as good as the ones achieved by the handicraft program as declared by the women involved in both programs that i interviewed. the acquisition of new skills and education seems to consistently change the way in which the women are perceived within the family and by the community at large. as an example, some of the beneficiaries described to me how ‘more respectful and gentle’ the husband had become. the changes in the way they interact as a couple are depicted as the most meaningful. when the wife feels that her husband looks at her in a different way she conforms to her new image of becoming more and more confident. compared to the results of the vsla, the outcomes of training and education are not perceived as temporary. in fact they can potentially lead to non-temporary improvements of the household’s living conditions. consequently, training and sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 14 education have lead to changes in gender relations. the emergence of social capital the other important factor that came out of tarango’s projects was probably, initially, unexpected. observing and listening to the women involved in the projects in dhaka and lalmonirhat, i could detect results in terms of social cohesion and networking of beneficiaries and between beneficiaries and tarango’s staff. the exposure to new social relations has revealed its potential as a source of comparison in determining people’s perceptions o f themselves, shared information and social security net. all fundamental in nourishing women’s empowerment.the immediate result is a relational and collective empowerment that leads to and supports their individual empowerment. apparently, the initial investment in human capital has led to the spontaneous emergence of social capital as a positive externality of the implemented projects. as demonstrated by the results of the world bank social capital initiative (sci), it is very difficult for external agents to contribute to the process of building social capital. many projects implemented with this intention have failed (gugerty& kremer, 2000). the term ‘social capital’ appeared for the first time in the sixties but it gained popularity among the internatio nal organizations since 1996 thanks to the world bank’s effort in defining and measuring social capital and financing several projects through the sci. this was followed four years later by the mainstream book ‘bowling alone’ by robert putman. from the wide literature available we can find many slightly different definitions of social capital which reveal the semantic complexity of the concept nowadays. since the first definitions (hanifan, lj 1916, bourdieu, p 1972), the concept has been explained in terms of social network and as a kind of capital necessary, together with the cultural, economic and symbolic capital, to define the individual (bourdieu, 1972). besides, bourdieu considered social networks as a potential source of benefit and introduced the idea of ‘investment strategies’ to build them. the more comprehensive description suitable for my research, is the one provided by the world bank that come out from the sci experience. as stated on its website ‘(s)ocial capital refers to the institutions, relationships, and norms that shape the quality and quantity of a society's social interactions. increasing evidence shows that social cohesion is critical for societies to prosper sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 15 economically and for development to be sustainable. social capital is not just the sum of the institutions which underpin a society – it is the glue that holds them together’ (the world bank group 2011). the definition includes the two dimensions, in terms of vertical and horizontal associations, that characterize social capital, highlights its positive contribution to people’s living conditions and to sustainable development. from putnam’s work (putnam 2000) we can extrapolate the distinction between bridging and bonding social capital. the author refers to ‘bridging social capita l’ as social networks between socially heterogeneous groups while in ‘bonding social capital’, bonding refers to the value assigned to social networks between homogeneous groups of people. through the idea of ‘bonding social capital’ putnam recognizes the negative externalities that can result from interpersonal relations. the other important characterization is the one of cognitive and structural social capital. the interaction between these two dimensions leads to people’s development in practice. uphoff and wijayaratna (2000, pp. 4-5), who elaborated the distinction, explain that both forms are ultimately cognitive but ‘structural forms are indirectly rather than directly based on mental processes’. the authors consider the structural construct ‘relatively external and objectified’ being the ensemble of ‘roles, rules, procedures, and precedents as well as social networks that establish ongoing patterns of social interaction’. while the cognitive forms of social capital are ‘more internal and subjective’ referring to ‘(n)orms, values, attitudes and beliefs that predispose people to cooperate’. this distinction is useful when it comes to finding a way to measure the acquisition of social capital. the two forms are complementary and their interaction is continuous but need different indicators to be analysed. as i said previously, i consider that the most suitable definition for my purpose of describing tarango’s results, is the world bank’s. it’s more oriented towards collective social capital but refers implicitly to the connection between ‘relationships’ and ‘social interactions’. it gives the idea of how deeply interrelated collective and individual social capital are. individual social capital is strictly connected to the resources that an individual is able to obtain from his/her social network. while, collective social capital refers to a macro dimension as a characteristic of the wider system originated by individual networks. sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 16 in the field, sometimes it is difficult to draw a line between the two concepts, and even more complicated to define to which extent one influences the other and/or vice-versa. the structural social characteristics influence individual social behavior but it’s also true that the interactions between individuals contribute to defining the structure itself and consequently social capital’s results in a macro dimension. defining social capital in terms of social cohesion, the world bank highlights what keeps the individual and the structure together. uphoff and wijayaratna (2000, pp. 3.30) analyzing the concept in terms of results state that ‘(s)ocial capital…although it benefits individuals, is expected to produce goods that aremore collective than just individual’. the authors conclude that ‘mutually beneficial collective action (mbc a)’ is the common denominator of social capital’s outcomes. in tarango’s handicraft projects and production, vertical and horizontal associations are well balanced and the members of the handicrafts program are quite heterogeneous often coming from different villages. while, in the vsla the groups are more homogeneous, being village based. because of the limits imposed to the observation in terms of time constraints and constant presence of the ngo’s staff during my field trips, unfortunately i couldn’t determine if the other villagers perceived the vsla as open to all the women or as more exclusive associations. the social capital emerging from the handicraft projects is connected with a collective dimension but seems particularly focused on the micro dimension. detecting how individuals were consciously using the new social network at their disposal to generate resources has been easier than observing the results of the interactions of their relations with the wider structure. the limited time of implementation of the activities can be interpreted as one of the direct causes. i could register the effort made by the beneficiaries to get organized at a higher level and their desire to join associations or organizations. the changes at a village level are visible but are still in progress. since the purpose of my research was to detect women empowerment, i included both dimensions, individual and collective, in the indicators because of the importance of considering gender empowerment as a collective issue rather than limited to the individual network. sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 17 all these connections and externalities transform tarango’s gender empowerment vision into a very fluid and holistic model able to interrelate different dimensions efficiently in practice. the model’s characteristics have led to a synergetic virtuous circle between social capital, human capital and microfinance in terms of activities and results. this explains the achievement of fundamental steps towards gender empowerment in less than one year’s of the project’s implementation. conclusions from an overview of the most comprehensive indicators to assess human development (hdi, ihdi), gender development (gdi), human development inequality (ihdi), gender inequality (gii) and gender empowerment (gem) we obtain a meaningful overview of bangladesh nowadays. the indicators’ results did not improve in the last few years, vis a vis episodes of discrimination and violence towards women have risen. within this framework, the decision of aida to target human development and gender empowerment through tarango’s successfully proven programs to be up to date with the trends of the development industry at large and effective in achieving its results. tarango’s approach has been successful in rural as well as in urban areas and the combination of its multilevel programmes has resulted in a comprehensive approach able to embrace different dimensions of development and empowerment. starting with a focus on women empowerment through income generation, the bangladeshi ngo has combined human with physical capital. as an unexpected result, a winning ingredient in terms of gender empowerment has emerged as a positive externality: social capital. accordingly the indicators highlighted by the beneficiaries, most suitable in representing their evolution, refer to: the broader network of social relations at their disposal, the increased social cohesion among themselves, and to the changes in the way they are perceived by family group and community. the success of the project, obtained in less than one year of implementation, is clearly due to a combination of factors in which the handicraft training programmes have played an important role. initially necessary to the achievement of a better economic condition, the training classes have been the starting point of a virtuous circle that sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 18 has led to a powerful social network and to the acquisition of new skills and education. the bargaining power acquired in the household through the access to credit provided by the vsla, has proven to be perceived as temporary, not substantial, and not as directly strongly related to women empowerment as expected. on the other hand, the knowledge acquired through the training programme is perceived by families and communities as a source of a more definitive change. the development programmes, the ngos and their beneficiaries constitute a complex creature that needs to be well balanced in its different components and adjustable to external factors to survive. the production carried on by tarango’s beneficiaries can become the life blood in nourishing the economic independence and self-confidence of the local n go, the sustainability of its activities, the transmission of bangladeshi culture, and the evolving gender empowerment process. design and creativity are often neglected parts in development projects, basic skills are the object of numerous trainings but how to rationally organize a production and how to develop a distinctive character are usually not part of the knowhow transmitted. tarango had different international organizations and foreigner ngos as partners but training on the creative aspects of the production has never been part of the programs. it ismeaningful to note how this very same component of the production would be vice versa considered as a priority by a profit organization. developing their own design without relying on international designers or foreign patterns it is of paramount importance not only to strengthen tarango’s and its beneficiaries’ identity but also to respond to the new trends of the market. nowadays low cost production doesn’t seem the essential criteria to meet the international demand, we are witnessing a shift to a new form of competition based ‘on the quality of products, their symbolic value and the quality of the experience that they allow’ (santagata 2009, p.6). according to this change in the demand, tarango should learn how to communicate and represent through its collection the background and culture of its recipients. promoting in the international market a distinctive ‘proudly made in bangladesh’ would not only lead to consistent economic results but also improve the n go’s self confidence. sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 19 becoming an organization able to value and promote creativity, taran go would add a precious symbolic value to its production, more than that this model of production would be able to promote and preserve bangladeshi traditional knowledge through material culture. from a gender prospective, women would feel the ownership over the production process being actively involved in the more creative aspects. it becomes immediately evident the potential of creativity is empowering women increasing their self confidence. besides an open creative process encourages social inclusion and cohesion giving to everyone the chance to express his/her potentialities without discrimination. bibliography aarong 2006, about aarong, viewed 1 st november 2016 < http://www.aarong.com >. aida n.d., aida website, viewed 1 st november 2016 <http://www.ong-aida.org/>. alkire, s 2008, ‘c hoosing dimensions: the capability approach and multidimensional poverty’, mpra, paper no. 8862, munich. amin, s 1997, ‘the poverty-purdah trap in rural bangladesh: implications for women roles in the family’, development and change, vol. 28, pp. 213-233. anand, s &sen, a 1995, ‘gender inequality in human development: theories and measurement’, human development report 1995, occasional paper 19. bourdieu, p 1972, outline of a theory of practice, cambridge university press, cambridge. bridge 2006, gender and trade cutting edge pack, bridge/ids, brighton. ericksen, th 2006, engaging anthropology the case for a public presence, berg, oxford – new york ferrant, g 2010, ‘the gender inequalities index as a new way of measure gender inequalities in developing countries’, ces working papers 2010.17. gaye, f, k lugman, j, kovacevic, m, twigg, s &zambrano, e 2010, ‘measuring key disparities in human development: the gender inequality index’, human development research paper 2010/46, un dp. sinergi , volume 7, nomor 2 maret 2017 crist ina lant eri gender emp owerment indicators: better management of resources t o optimize result s 20 lucy, dm, ghosh, j, k ujawa, e, 2008, ‘empowering women’s leadership: a case study of bangladeshi microcredit business’, sam advanced management journal, autumn 2008, pp. 38 -50. mancy, j 2010, ‘the challenges and evolving approaches for providing financial services to the rural poor’, liverpool school of tropical medicine, liverpool, uk. oloniyan, da &okemakinde, t 2008, ‘human capital theory: implications for educational development’, european journal of scientific research, vol. 24, no. 2, pp. 157-162 santagata, w 2004, ‘i benidellacreativitàtra arte contemporanea e moda’, università di torino, working paper no. 2/2004 santagata, w 2009, librobiancosullacreatività, universitàbocconieditore, milano. scheyvens, r & storey, d 2003, development fieldwork a practical guide, sage publications, london schuler, sr &rottach e 2009, ‘women’s empowerment across generations in bangladesh’, journal of development studies, vol. 46, no. 3, pp. 379-396. sen, a 1999, development as freedom, oxford university press, oxford. simon, ha 1986, ‘how managers express their creativity’, across the board, no. 23. strom, sl 2001, 25 years of brac research: achievements, challenges, and opportunities, research monograph series no. 21, research and evaluation division, brac, dhaka. tarango, tarango official website, viewed 1 st november 2016 <http://www.tarango-bd.org/>. undp 2010, human development report 2010 the real wealth of nations, palgrave macmillan, new york. van den heuvel, rp 2010, strategy and action plan of the institute for sustainable development, isd, dhaka. yunus, m 2008, a world without poverty: social business and the future of capitalism, public affairs, jackson tn. sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 27 the influence of motivation and work environment on the performance of employees muchtar university darulululm e-mail: muchtaralam@yahoo.co.id (accepted: 25-july-2016; revised: 23-august-2016; published: 07-september-2016) abstract.this aims to determine the factors that affect the performance of employees of the university pgri ronggolawetuban. these factors are motivation and work environment. employees who have a high motivation to work will have a positive impact for the organization, so as to achieve organizational goals. hypothesis testing is done by spreading the questionnaire as many as 52 employees of the university pgri ronggolawetuban. analysis using multiple linear regression analysis. results of testing the hypothesis that the value f = 4,312; and p = 0.019 (p <0.05) that there is influence motivation and work environment on employee performance pgri university ronggolawetuban. the results of the partial test (t test) on the motivation variable, obtained t = 0.136, p = 0.892 (p> 0.05), meaning that work motivation has no significant effect on employee performance. on the environment variable obtained value t = 2,376; and p = 0.021 (p <0.05), which means that the working environment have a significant effect on employee performance. r2 = 0.115 shows that simultaneously motivated and able to contribute to the environmental performance of 11.5% on the employees of the university of pgri ronggolawetuban.. keywords: keja motivation, work environment, employee performance 1. introduction unirow tuban is one of the universities pgri organized by society patrons institutions of higher education (pplp-pt) in tuban engaged in the field of education. however, in order to create employee performance pgri university ronggolawe tuban seems there are still many obstacles faced so difficult to achieve organizational goals. conditions were not ideal there at the university of pgri ronggolawe tuban. where there are employees come to work late, breaks early and late for work, there are traders coming into the room that offers products, lack of facilities and infrastructure, to leave work early. thus resulting in decreased employee performance resulting low employee motivation in doing the work and supported the work environment less comfortable so that the employee's job can not be completed as planned. basically there motivation and a good working environment at the university of pgri ronggolawe tuban, but still found their presentations fluctuations. low motivation may affect the performance of employees is not the maximum, siagian (2003). there are fluctuations in the percentage increases and decreases in absenteeism, a certain month the percentage of absenteeism above 10 percent indicates that the rate of absenteeism is high enough and yet the employees are often late for work. it is when on leave continuously will provide serious problems for the organization as a whole. in indicator of employee performance by desler presence is one of the points which reflect the performance of employees. though employees have been sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 28 motivated by a variety of things such as: salaries that are customized to employment (allowance for employees remains the foundation), tourism activities to further familiarize hubunangan interpersonal and teamwork, and their training to increase and improve the skills of hr employees and others. while working environment pgri university ronggolawe parking available vehicle so that employees can be calm in the works. ventilation for air circulation in the room is always fresh. based on these problems, the writer tried to lift into the study titled "the effect of motivation and work environment on employee performance pgri university ronggolawe tuban 2. literature 2.1 work motivation according malthis (2006), motivation is a desire in a person that causes the person acts. usually the person acting for a reason to achieve the goal. understanding motivation is important for performance, reaction to the compensation and human resources issues are influenced and influence motivation. meanwhile, according to mangkunagara (2010: 18), motivation is a condition (energy) that moves within the individual that is directed to achieve organizational goals. motivation is defined by stanford (in mangkunagara, 2011), that motivation as an energizing condition of the organism that serves to direct that the organism toward the goal of a certainclass.motivation as a condition that drives people towards a, according malthis (2006), motivasia dalah desire in a person that causes the person acts. usually the person acting for a reason to achieve the goal. according supardi and saiful anwar (2004) motivation is an individual's personal circumstances that encourage the desire of individuals to undertake certain activities in order to achieve a goal. arep and tanjung (2004) says that the principal motivation as something, which became the impetus for someone to work. meanwhile, according to moekiyat (2002) motivation has the same meaning with the motif, which is an impetus or incentive to do something. then robbins (2006) says motivation as a process that will determine the intensity, direction, and persistence of individuals in order to achieve the target. motivation can be seen as an integral part of personnel administration within the framework of the process of formation, development and direction of labor in an organization. motivation as a positive effort to mobilize, deploy and direct the power and potential of the workforce in order to productively managed to achieve and realize the goals set in advance and as a necessity as well as an incentive to be able to mobilize, deploy and direct the potential and power of human labor is toward the desired. zainun sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 29 buchori, (2004). understanding motivation is important for performance, reaction to the compensation and human resources issues are influenced and influence motivation. in this study, researchers used indicator of maslow's theory of motivation. theory of abraham maslow's hierarchy of needs (in sofyandi and garniwa, 2007), consisting of: a. physiological needs(physiologicalneed).physiological needs physiological needs are the hierarchy of human needs of the most basic is the need to be able to live like eating, drinking, housing, oxygen, sleep and so on. b. need for security(safety-need).if the physiological needs relatively satisfied, there appears a need for the second is the need for security. the need for security includes security protection from the dangers of workplace accidents, will guarantee continuity of work and would guarantee his old days when they no longer work. c. social needs(social-need).if the physiological and safety needs have been satisfied to a minimum, it would appear the social needs, namely the need for companionship, an affiliate of funds closer interaction with others. in organizations will relate to the need for a working group that is compact, good supervision, recreation together, and so on. d. esteem needs(esteem-need).these needs include the desire needs to be respected, valued over individual achievement, recognition of one's capabilities and expertise as well as the effectiveness of one's work. e. self-actualization needs(selfactualizationneed).self actualization is maslow's hierarchy of needs of the most high. self-actualization related to the process of developing the true potential of a person. the need to demonstrate knowledge, skills and potential of a person. in fact, the need for self-actualization tendency increasing its potential for people to actualize their behavior. someone who is dominated by the need for selfactualization happy to be tasks that challenge the ability and expertise. 2.2 environment the work environment in a company need to be considered, this was due to the work environment has a direct impact on employees. work environment can improve employee performance and conversely, inadequate working environment will be able to decrease employee performance. a good working environment where employees are said to be conducting an optimal, healthy, safe, and comfortable. therefore, the determination and the creation of a good working environment will determine success in achieving organizational goals. conversely, if the sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 30 working environment is not good to be able to decrease the motivation and morale, and ultimately can degrade the performance of employees. according to robbins (2003) environments are institutions or forces beyond that could potentially affect the performance of the organization, the surroundings are formulated into two general environment and specific environment. according to basuki and susilowati (2005) work environment is everything that is in the environment that can affect either directly or indirectly, any person or group of people in carrying out its activities. according to barry rendering & jayheizer (2001: 239), the work environment is the physical environment where employees work affecting the performance, security and quality of their working lives. according gouzali saydam (2000) also mentions that the working environment is the whole infrastructure of the existing work around employees who are doing the work, which may affect the implementation of the work itself. according sedarmayanti (2001) work environment is a whole tool tooling and materials encountered, the neighborhood where a person is working, working methods, as well as the arrangement works both as individuals and as a group ". from the opinions above it can be knotted out that the work environment is everything that is around the employee at work, either in the form of physical or nonphysical, directly or indirectly, to influence him and his work at work. sedarmayanti (2001: 21) states that, generally speaking, the type of work environment is divided into two namely: a. physical work environment are all circumstances the physical form contained around the workplace that may affect the employees either directly or indirectly. in order to minimize the influence of the physical environment for employees, the first step will have to study humans, both on the physical and behavior as well as the physical, and then used as a basis to think of appropriate physical environment. the entirety of the internal and external factors that are around the workplace each employee, in this case is in the form of a physical place such as chairs, tables and equipment other work that may affect employees in performing their duties and daily work is called the physical work environment, rumada and mudiartha (2013). b. non-physical work environment is all of the circumstances relating to labor relations, good relations with superiors and co-workers relationships, or relationships with subordinates. non-physical environment is also a group working environment can not be ignored. according nitisemito (2000), the company should be able to reflect the enabling conditions for cooperation between the sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 31 levels superiors, subordinates and who has the same official status in the company. conditions should be created is a family atmosphere, good communication, and self-control. 2.3 of the performanceemployees is the result of a planned process specific job at the time and place of the employee and the organization concerned according mangkuprawira and hubeis (2007). according stolovitch and keeps (in mangkuprawira, 2007) is a set of performance results and refer to the achievement of the action and the implementation of any work requested. performance or performance is the result or output of a process (nurlaila, 2010). according sedarmayanti (2011) performance is a translation of the performance, which means the work of a worker, a management process or an organization as a whole, where the results of the work have to be shown the evidence is concrete and measurable (compared to the standard that has been specified). in the context of the results, bernardin (2001) stated that the performance is a record of the results produced (generated) on specific job functions or activities for a certain period of time. from these definitions, bernardin stressed the notion of performance as a result, not a character trait (trait) and behavior. the notion of performance as a result are also linked to productivity and effectiveness, ricard (2003). related to the performance as behavior, murphy, (in ricard, 2002) states that the performance of a set of behaviors that are relevant to the goals of the organization or organizational unit where people work. the notion of performance as behavior is also expressed by sudarmanto (2009) performance is a set of behaviors that are relevant to the goals of the organization where people work. performance is something that is actual working person and can be observed. performance is not the consequence or result of the action, but the action itself, campbell, (in richard 2003). performance is a function of motivation and ability. to complete the task or job a person should have a degree of willingness and a certain level of ability. the willingness and skills of a person is not effective enough to do something without a clear understanding of what will be done and how to do it. performance is the actual behavior shown by everyone as the resulting performance by employees in accordance with its role within the company. employee performance is a very important point in the company's efforts to seek the goal (riva, 2006). indicators of employee performance by mathis and jackson (2006) are as follows: a. quantity. quantity is the amount produced is expressed in terms such as the number of units, number of cycles completed activity. the measured quantity of employee sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 32 perceptions of the assigned amount of activity and results. b. quality. quality is the observance of the procedure, discipline, dedication. the degree to which the results of the activity of the desired near-perfect in the sense adjust some ideal way of appearance of activity, as well as meet the objectives expected from an activity. quality work is measured employee perceptions of the quality of work produced and the perfection of the task against the skills and abilities of employees. c. reliability. reliability is the ability to do the required job with minimum supervision. according to zeithaml & berry (in sudarmanto, 2009) the reliability mencakp consistency of performance and reliability in service; accurate, true and correct. d. presence. presence is the belief will come to work every day and according to the working hours. e. the ability to work together. interoperability is the ability of an employee to work together with others in completing tasks and jobs that have been set so as to achieve efficiency and effectiveness as much as possible. 3. research methods 3.1 research subjects according sugiyono (2008) are some of the sample number and arakteristik owned by the population. in order obtained representative samples, the researchers used the formula slovin. based on the above calculation, obtained a sample of 52 out of 110 the number of employees of the university pgri ronggolawe. for the determination of the sample in this study using the technique of random sampling area is proportional sampling technique taken from each subpopulation drawn at random based on the proportion of the number of existing employees in each subpopulation. here is the procedure of determining the number of samples in each subpopulation at the university of pgri ronggolawe employees of a number of samples 52. 3.2 data collection in this study the procedures used to collect data using the questionnaire technique is a way of collecting data by distributing questions to the respondent and the respondent will provide a response to the the question, husein. (2005). data collection for this research was conducted through a questionnaire to the respondent to determine the responses of respondents regarding motivation, work environment and employee performance. questionnaires will be distributed to all employees of the university pgri ronggolawe tuban according to the number of samples. sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 33 3.3 data analysis data analysis techniques used in this study using multiple regression analysis. the results of the regression equation can be determined as follows. table 1 testingregression equation model unstandardizedc oefficients standardiz ed coefficient s b std. error beta 1 (constant) 26 658 5159 motivation .015 .108 .022 lingkungan_k erja .084 .375 .199 modek regression equation could be identified as y = 26 658 + 0.015 x1 + 0.199 x2 the model shows the sense that: a. constant = 26 658. if the variable motivation and the working environment is assumed to remain the performance of employees will increase by 26 658. b. work motivation coefficient x1. work motivation coefficient value of 0.015. stating that there was an increase every one score for motivation to work will be followed by an increase in employee performance sebesar0.015. c. work environment coefficient x2. the coefficient of the working environment show the number of 0199. states that in the event of an increase of 1 scores for the working environment will be followed by an increase in the employee's performance for 0199. 4. results to determine the influence of the independent variable of work motivation, work environment against the dependent variable is the performance of employees it is necessary to test t. partial testing can be seen from the t test, if the probability value <0.05, ho rejected, which means there is significant influence. partial assay results can be seen in the following table table 2. testing the hypothesis of partial coefficients a model unstandardized coefficients standardiz ed coefficient s t sig. b std. error beta 1 26,658 5,159 5,167 .000 (cons tant) motivation .108 .022 .136 .892 .015 lingkungan_ker ja .084 .375 2,376 .021 .199 a. dependent variable: performance sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 34 based on the partial test results for motivation variable obtained t count = 0.136 with a significance value of 0.892. > 0.05 then ho is accepted and ha rejected. this shows that the partial h1 stating that there is influence of motivation on employee performance declined. based on the partial test results for the working environment variable obtained t count = 2,376 with a significance value of 0.021. because a significant probability of much less than 0.05 then ho is rejected and ha accepted. this shows that the partial h1 stating that no work environment influence on employee performance acceptable. so based on the testing of each independent variable on the dependent variable partially seen that motivation variable is smaller than the variable work environment that is 0.136 <2,376. this shows that the h3 which stated that the motivation variable dominant influence on employee performance variable pgri university ronggolawe tuban rejected. simultaneous test is used to determine the effect of free variable work motivation and work environment on employee performance variables bound together. table 3 simultaneous hypothesis testing anova a model sum of squares df mean square f sig. 1 regressi on 2 48,025 4,312 .019 96,050 b residual 545 700 49 11 137 total 641 750 51 a. dependent variable: performance b. predictors: (constant), lingkungan_kerja, motivation from anova or f test obtained value of f count equal to 4,312 with significance level of 0.019. because a significant probability of much less than 0.05 then ho is rejected and ha accepted. this shows that simultaneous h2 stating that there is the influence of motivation, simultaneously to the work environment employee performance received. the amount of partially free variable influence can be seen from the squared partial correlation below: table 4 tests of partial determination coefficient coefficients a model correlations statistics collinea rityorderze ro partial part toleran ce vif 1 (constant) sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 35 motivation .227 .019 .018 .698 1.43 3 lingkungan_ker ja .321 .313 .698 1,433 .386 a. dependent variable: performance based on calculations using spss 20 is known that the contribution of variable coefficient of motivation on the performance of employees is 0,019 so it can be seen that the contribution of the influence of work motivation on employee performance amounted to (0.019) 2 is equal to 0.0004 or 0.04%. the coefficient between the work environment on the performance of employees is 0.321 so it can be seen that the contribution of the work environment influence on the performance of employees amounted to (0.321) 2 is equal to 0.1030 or 10.30%. to determine the contribution of work motivation and work environment on employee performance can simultaneously be known based on the value of adjusted r square on simultaneous determination table table 5 testing the simultaneous determination coefficient model summary b mod el r r square adjusted r square std. error of the estimate durbinwatson 1 .387 a .150 .115 3337 1976 a. predictors: (constant), lingkungan_kerja, motivation b. dependent variable: performance based model summary table in the know that the value of adjusted r square of 0.115. it can be concluded that the contribution of the work environment kerjadan motivation on employee performance simultaneously is 11.5%. while the remaining 88.5% is influenced by other factors were not examined. 5. discussion based on the analysis of data in this study showed that motivation did not have significant influence on employee performance. it is the show of the partial test results obtained from the results of partial correlation coefficient of 0.019 so as r² is (0.019) ² = 0.0004 or 0.04%, which means the effective contribution to the motivation of the employee's performance of 0.04%. partially motivation does not affect the performance of employees of the university pgri ronggolawe tuban, because the gain is significantly smaller than 0.05. while working environment based on the analysis of data in this study can be seen that the working environment has a significant influence on employee performance. it can be seen from the partial test results obtained from the results of partial correlation coefficient of 0.321 so as r 2 is (0.321) 2 = 0.1030, or 10.30%, which means an effective contribution to the work environment on the performance of employees is 10.30%. so that ha which reads "no sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 36 influence motivation, work environment on employee performance pgri university ronggolawe tuban partially" for the rejected and the motivation for the work environment acceptable. this shows that, with the lack of motivation that will produce low employee performance sedangkang their good motivation to work will get the maximum performance of the employee. this is consistent with the theory handoko (2001) which states that motivation is one of the factors that may affect kinerj employees. besides motivation, work environment also affects the performance of employees. this shows that with a good working environment in the work will get better the performance of the employee while the lower kerjayang environment will result in low employee performance anyway. this is consistent with the theory nitisemito, (2000) that a work environment can be said to be both appropriate when an employee can carry out activities in an optimal, healthy, safe, and comfortable, while the working environment less well requires manpower and a lot more time and not supports obtaining an efficient work system design. work environment can directly influence employees in improving employee performance. instead inadequate working environment will be able to decrease employee performance. a good working environment is said what if humans can carry out activities in an optimal, healthy, safe, comfortable. the results of the analysis of test data simultaneously show that motivation and working environment together have significant influence on employee performance pgri university ronggolawe tuban 11.5%. thus it can be explained that in addition to motivation and work environment, employee performance were also determined by other factors not examined in this study amounted to 88.5%. despite the good working environment but is not supported by other adequate facilities, then the employee's performance can also be less than optimal. so that we can achieve the maximum performance of the employee, then we must understand the factors that affect the performance of the employee. employee performance will increase when the factors that affect the harmony and positive effect. based on testing of each independent variable on the dependent variable partially seen that motivation variable is smaller than the variable work environment that is 0.136 <2,376. this shows that the h3 which stated that the motivation variable dominant influence on employee performance variable pgri university ronggolawe tuban rejected. it is expected that the university pgri ronggolawe immediately increase the motivation in order to achieve maximum performance. 6. conclusion from the results of testing hypotheses from the previous chapter, in this study it can sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 37 be concluded that: a. partially work motivation does not significantly affect the performance of employees at the university of pgri ronggolawe tuban. this is evidenced by the results of multiple regression analysis of the t-test, with a value of t = 0.136 with a significance value of 0.892. > 0.05, so then ho is accepted, it means working motivation has no significant effect on employee performance. b. partially working environment significantly influence the performance of employees at the university of pgri ronggolawe tuban. this is evidenced by the results of multiple regression analysis of the t-test, with a value of t = 2,376 with a significance value of 0.021. because a significant probability of much less than 0.05 is 0.021 <0.05, so then ho is rejected, meaning that the working environment have a significant effect on employee performance. c. simultaneously (simultaneously) the motivation and the working environment significantly influence employee performance. this is evidenced by the multiple regression analysis to test-f (anova), it is proved from the fhitung 4312 with a significance level of 0.019. because a significant probability of much less than 0.05 is 0.019 <0.05 then ho is rejected and ha accepted. this shows that simultaneous h2 stating that there is an effect motivation, work environment simultaneous to performance received. d. based on the testing of each independent variable on the dependent variable partially seen that tcount motivation variable is smaller than the tcount work environment that is 0.136 <2,376. this shows that the dominant motivation variable influence to variable employee performance pgri university ronggolawe tuban rejected. e. employee performance (y1) of 11.5% was influenced by the work motivation (x1), work environment (x2), while the remaining 88.5% influenced by causes or other factors. it can thus be seen that the partial work motivation does not significantly affect the performance of employees of the university pgri ronggolawe tubna, but partially environmental variables significantly influence employee performance. then simultaneously or simultaneously work motivation, work environment significantly influence employee performance power pgri university ronggolawe tuban. 7. suggestions as for suggestions to the writer suggested based on the conclusions above are as follows: a. based on the multiple linear regression analysis that the independent variables are more dominant in influencing the dependent variable is the work sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 38 environment (x2), while the work motivation (x1) has a lower value is compared to the work environment, so that leaders should pay more attention to employee motivation is in the employees to be more able to improve the performance of employees at the university of pgri ronggolawe tuban. b. given the motivation and the work environment has an influence on the performance of employees, the company should be able to make work motivation and work environment as a strategy to improve the performance of employees at the university of pgri ronggolawe tuban .. c. motivation has no significant effect, this suggests that the motivation is less will produce low employee performance, while their good motivation to work will get the performance of employees. this is consistent with the theory handoko (2001: 193) which states that motivation is one of the factors that can affect the performance of employees. therefore the motivation of the employees must be improved so that every employee can be motivated to work harder in order to achieve good performance / high, so that the company's goals can be achieved. d. the work environment has a significant influence on employee performance, if the work environment in good standing within the company, the employees will carry out the task with high awareness and a sense of comfort, and this has a positive influence on the performance of the existing staff in the institution / company's , therefore, the working environment around the employee must be kept and observed that every employee can feel comfortable in working to achieve good performance / high, so that the goals set agency / company can be reached. e. the executive board is also expected tuban pgri ronggolawe should pay attention to employee motivation is on the employees and the work environment for employees must be in good condition, in addition to the leaders also were expected to consider other factors that can increase the performance of employees, such as leadership style. dengan adanya gaya kepemimpinan yang diinginkan para pegawai diharapkan para pegawai akan lebih loyal terhadap perusahaan sehingga menghasilkan kinerja yang baik/tinggi pula. bibliography arikunto, suharsimi. 2006 prosedurpenelitian:suatupendekatanpraktik. cetakanketigabelas. jakarta: pt. rinekacipta. bakotic, danicadantomislavbabic. 2013. relationship between working conditions sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 39 and job satisfaction: the case of croatian shipbuilding company. international journal of buisiness and social science. 4 (2): pp:206-213. bernardi g. 2001. dispersal of the coral reef three-spot dascyllus, dascyllustrimaculatus, at three spatial scales. jakarta: salembaempat. edwin b. flippo. 1998. manajemenpersonalia. jilid 2. jakarta :erlangga ghozali, imam. 2009. aplikasianalisis multivariate denganprogramspss. semarang: b-pundip. gomes, f. cardosa. 2003. manajemensumberdayamanusia. yogyakarta. andi offset. hamzah, b. uno.2008. teorimotivasidanpengukurannyaanalisis di bidangpendidikan jakarta: bumiaksara. handayani, nurlaila. (2010). pengembangan model intqualuntukmeningkatkankualitaslayana n internal di pendidikantinggi.institutteknologisepuluh november, surabaya. handoko, t. hani. 2001.manajemen personaliadansumberdayamanusia. yogyakarta : bpfe press. hasibuan, m. 2002.manajemensumberdayamanusia. jakarta: cv. haji masagung. hasibuan, m., 2003.organisasidanmotivasi.dasarpeningk atanproduktivitas. jakarta: bumiaksara. mangkunegara, anwar p., 2001, manajemensumberdayamanusia perusahaan. bandung :remajarosdakarya. mangkunegara, anwar p.,2003. perencanaandanpengembangansumberday amanusia. bandung: pt. refikaaditama. mangkunegara, anwar p.,2009. evaluasikinerjasumberdayamanusia. bandung: penerbitrefikaaditama. mangkunegara, anwar p.,2010. perilakudanbudayaorganisasi.bandung:ref ikaaditama. mangkunegara, anwar p.,2011. manajemensumberdayamanusiaperusahaa n. bandung: refikaaditama. mathis, robert l. dan jackson. john h. 2006. human resource management (manajemensumberdayamanusia).edisi 10. jakarta: salembaempat. prawirosentono, suyadi. 1999. kebijakankinerjakaryawan. yogyakarta: bpfe. richard l. 2003. manajemensumberdayamanusia. jakarta: penerbiterlangga. robbins, stephen, p. 2003. prinsipprinsipperilakuorganisasi. jakarta: erlangga. rumada, gede. i wayanmudiarthautama. 2013. pengaruhkompensasi, kepemimpinan, danlingkungankerjafisikterhadapkepuasa nkerjakaryawan hotel taman harumubudgianyar. 2 (1): pp: 106-120. sinergi, volume 6, number2 september 2016 muchtar the influence of motivation and work environment on the performance of employees university pgri ronggolawe tuban 40 sari, emilia novianiasta. 2009. pengaruhlingkungankerjaterhadapkinerja karyawanbagianproduksi pt. glory industrial semarang ii. semarang. universitas negeri semarang. sedarmayanti, 2007. (manajemensumberdayamanusia) reformasibirokrasidanmanajemenpegawai negerisipil. bandung: pt. refikaaditama sedarmayanti, 2011. tata kerjadanproduktivitaskerja :suatutinjauandariaspekergonomiatauka itanantaramanusiadenganlingkungankerj anya. cetakanketiga. bandung: mandarmaju. sedarmayanti. 2001. tata kerjadanproduktivitaskerja.cetakanketuju h bandung: mandarmaju. siagian, sondang p,2004. teorimotivasidanaplikasinya.cetakanketig a. jakarta: rinekacipta. siagian, sondang p. 2003. manajemensumberdayamanusia. jakarta: bumiaksara. simamora, henry. 1997. manajemensumberdayamanusia. yogyakarta: stie ykpn. sinambela, lijanpoltak. (2012). kinerjapegawai: teori, pengukuran, danimplikasi, yogyakarta: grahailmu. sofyandidangarniwa. 2007. perilakuorganisasional. edisipertama. grahailmu. yogyakarta. sudarmanto. 2009. kinerja danpengembangankompetensi sdm. cetakanpertama. pustakapelajar. yogyakarta. sugiyono. 2008. metodepenelitiankuantitatifkualitatifdan r&d. bandung: alfabeta. umar, husein. 2005. metodepenelitianuntukskripsidantesisbisn is. edisibaru. pt. raja grafindopersada. jakarta. wursanto, ig. 2005.dasar-dasar ilmuorganisasi. yogyakarta. andi offset. yahyo. 2013. pengaruh motivasi, lingkungan kerja, dan kompensasi terhadap kinerja karyawan melalui semangat kerja karyawan cv. putra jaya sahita guna, semarang. diponegoro journal of social and politic. universitas diponegoro. 50 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java knowledge-based variables in the sustainability of private universities in east java siti istikhoroh, moeljadi, made sudarma, siti aisjah brawijaya university, malang, indonesia abstract organisational sustainability is closely linked to the organisation's brand image in the eyes of stakeholders and the wider community. each organisation can build a positive image through effective communication or innovative marketing models, one of which is social media. social media is the most appropriate means of communication and marketing for universities to recruit prospective students. this study analysed the role of knowledge-based variables in building higher education sustainability, as universities are knowledge institutions and always maintain or develop knowledge through research activities. knowledge-based variables include intellectual capital, university management intelligence, and social media. based on this, this research aimed to find out the significance of knowledge-based variables in the sustainability of private universities in east java. this research focused on human behaviour by using a survey with a quantitative approach and data collected through a questionnaire. this study concludes that social media marketing does not reduce the impact of intellectual capital on private universities' sustainability in east java. social media marketing does not reduce the impact of the university managerial intelligence on the sustainability of private universities in east java. keywords: knowledge-based variables; sustainability; private universities; east java. i. introduction managing the organisation's internal activities is one of the tasks of modern executives. the aim of this management is to accelerate the achievement of organisational objectives and to create an organisational life cycle for a more extended period. an analytical approach called recourse based theory (rbt) emphasises strategic resources' role in achieving a level of competitive advantage (acar & polin, 2015). company resources are heterogeneous, not homogenous. productive services that come from company resources will give each company a unique character (kor & mahoney, 2004). organizational culture has a positive effect on performance (indrasari, 2017);(indrasari et al., 2018);(indrasari et al., 2019). the academic climate also affects the competence of lecturers (indrasari et al., 2015). resourcebased theory (rbt) explains that companies can gain a competitive advantage by owning, controlling and using strategic assets, including tangible assets and intangible assets (wernerfelt, 1984). acedo, barroso, & galan (2006) recognises that rbt and its derivatives have become the dominant paradigm or, at least, have become corporate theory from a strategic point of view. based on the rbt concept, if the company can manage resources effectively, it will create a better competitive advantage than its competitors. it, therefore, calls for a series of strategic decisions and actions aimed at developing sustainable competitiveness. david & david (2016) explained that all management activities aimed at achieving and maintaining competitiveness are categorised as strategic decisions. there are two strategies for maintaining these strategic decisions: 1) continuously adapting to external changes and increasing internal competencies; 2) effectively formulating, implementing, and evaluating predetermined strategies. organisations that are capable of formulating and evaluating strategic decisions have a chance to outperform the industry over their competitors. katrinli, gunay, celikdemir, & alpbaz (2017) explained that companies are more willing to develop sustainability strategies in profit-driven companies than in non-profit companies such as universities. lozano (2011) dan ceulemans, lozano, & alonso-almeida (2015) reports that information on sustainability strategies in higher education is still very low in the world and can even be said to be in the early stages of learning. although they understand the importance of sustainability, most universities do not have a specific strategy for building sustainability for their organisations. several factors are hindering the development of a sustainability concept for higher education, including the lack of a process for involving external stakeholders, the lack of materials or criteria that can be included in the formulation, and the lack of an institution that has the authority to formulate or evaluate the concept of sustainability. most universities are concerned only with the importance of sustainability through a statement of the organisation's vision in different versions, such as an educational institution capable of producing a professional graduate in creating a healthy society and understanding the concept of sustainability (katrinli et al., 2017). the weaknesses of higher education in formulating the concept of sustainability are not only related to the institution that is empowered to define sustainability criteria, evaluate and report on sustainability but also to the depth of the concept and the content of what is formulated or reported (fonseca et al., 2011; lopatta & jaeschke, 2014). this is partly due to the lack of research that discusses sustainability in higher education (ceulemans et al., 2015), and the lack of a generally accepted theory for developing the concept of sustainability in higher education. some researchers like sanusi & khelghat-doost (2008) argue that higher education sustainability can be achieved by reducing poverty (dmochowski, garofalo, fisher, greene, & gambogi (2016) states that higher education sustainability can be done through curriculum development. that the sustainability of higher education can be done through curriculum development. in addition, learning motivation is one that affects learning achievement (indrasari & syamsudin, 2017). meanwhile, jose & chacko (2017) believes that higher education's sustainability can be measured by applying the triple bottom line (tbl) concept, namely by aligning the achievement of organisational objectives with economic, social and environmental interests. it is very reasonable to measure the sustainability of higher education by applying the tbl concept. the tbl concept proposed by elkington in 1997 as a means of sustainable development has been recognised and well-known. not only in business circles, but this concept is also applied in other fields, such as consulting agencies, professional accounting institutions and ngos (rambaud & richard, 2015). the tbl philosophy concludes logically the role of three types of capital in determining organisational performance, namely economic capital, natural capital, and social capital. efforts to build sustainability will help organisations equalise the importance of the three types of capital and integrate them into every aspect of organisational life. to formulate its sustainability concept, higher education can learn from business organisations that have implemented the tbl concept in their sustainability reporting (lozano, 2011). the use of the tbl concept to measure higher education sustainability cannot be separated from the existence of higher education as a non-profit organisation in competition for higher education services. every university needs to have a level of competitive advantage because theoretical and practical studies show that organisations will win an intense competition with a sustainable level of competitive advantage, not a temporary competitive advantage (o'shannassy, 2008). sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 51siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java knowledge-based variables in the sustainability of private universities in east java siti istikhoroh, moeljadi, made sudarma, siti aisjah brawijaya university, malang, indonesia abstract organisational sustainability is closely linked to the organisation's brand image in the eyes of stakeholders and the wider community. each organisation can build a positive image through effective communication or innovative marketing models, one of which is social media. social media is the most appropriate means of communication and marketing for universities to recruit prospective students. this study analysed the role of knowledge-based variables in building higher education sustainability, as universities are knowledge institutions and always maintain or develop knowledge through research activities. knowledge-based variables include intellectual capital, university management intelligence, and social media. based on this, this research aimed to find out the significance of knowledge-based variables in the sustainability of private universities in east java. this research focused on human behaviour by using a survey with a quantitative approach and data collected through a questionnaire. this study concludes that social media marketing does not reduce the impact of intellectual capital on private universities' sustainability in east java. social media marketing does not reduce the impact of the university managerial intelligence on the sustainability of private universities in east java. keywords: knowledge-based variables; sustainability; private universities; east java. i. introduction managing the organisation's internal activities is one of the tasks of modern executives. the aim of this management is to accelerate the achievement of organisational objectives and to create an organisational life cycle for a more extended period. an analytical approach called recourse based theory (rbt) emphasises strategic resources' role in achieving a level of competitive advantage (acar & polin, 2015). company resources are heterogeneous, not homogenous. productive services that come from company resources will give each company a unique character (kor & mahoney, 2004). organizational culture has a positive effect on performance (indrasari, 2017);(indrasari et al., 2018);(indrasari et al., 2019). the academic climate also affects the competence of lecturers (indrasari et al., 2015). resourcebased theory (rbt) explains that companies can gain a competitive advantage by owning, controlling and using strategic assets, including tangible assets and intangible assets (wernerfelt, 1984). acedo, barroso, & galan (2006) recognises that rbt and its derivatives have become the dominant paradigm or, at least, have become corporate theory from a strategic point of view. based on the rbt concept, if the company can manage resources effectively, it will create a better competitive advantage than its competitors. it, therefore, calls for a series of strategic decisions and actions aimed at developing sustainable competitiveness. david & david (2016) explained that all management activities aimed at achieving and maintaining competitiveness are categorised as strategic decisions. there are two strategies for maintaining these strategic decisions: 1) continuously adapting to external changes and increasing internal competencies; 2) effectively formulating, implementing, and evaluating predetermined strategies. organisations that are capable of formulating and evaluating strategic decisions have a chance to outperform the industry over their competitors. katrinli, gunay, celikdemir, & alpbaz (2017) explained that companies are more willing to develop sustainability strategies in profit-driven companies than in non-profit companies such as universities. lozano (2011) dan ceulemans, lozano, & alonso-almeida (2015) reports that information on sustainability strategies in higher education is still very low in the world and can even be said to be in the early stages of learning. although they understand the importance of sustainability, most universities do not have a specific strategy for building sustainability for their organisations. several factors are hindering the development of a sustainability concept for higher education, including the lack of a process for involving external stakeholders, the lack of materials or criteria that can be included in the formulation, and the lack of an institution that has the authority to formulate or evaluate the concept of sustainability. most universities are concerned only with the importance of sustainability through a statement of the organisation's vision in different versions, such as an educational institution capable of producing a professional graduate in creating a healthy society and understanding the concept of sustainability (katrinli et al., 2017). the weaknesses of higher education in formulating the concept of sustainability are not only related to the institution that is empowered to define sustainability criteria, evaluate and report on sustainability but also to the depth of the concept and the content of what is formulated or reported (fonseca et al., 2011; lopatta & jaeschke, 2014). this is partly due to the lack of research that discusses sustainability in higher education (ceulemans et al., 2015), and the lack of a generally accepted theory for developing the concept of sustainability in higher education. some researchers like sanusi & khelghat-doost (2008) argue that higher education sustainability can be achieved by reducing poverty (dmochowski, garofalo, fisher, greene, & gambogi (2016) states that higher education sustainability can be done through curriculum development. that the sustainability of higher education can be done through curriculum development. in addition, learning motivation is one that affects learning achievement (indrasari & syamsudin, 2017). meanwhile, jose & chacko (2017) believes that higher education's sustainability can be measured by applying the triple bottom line (tbl) concept, namely by aligning the achievement of organisational objectives with economic, social and environmental interests. it is very reasonable to measure the sustainability of higher education by applying the tbl concept. the tbl concept proposed by elkington in 1997 as a means of sustainable development has been recognised and well-known. not only in business circles, but this concept is also applied in other fields, such as consulting agencies, professional accounting institutions and ngos (rambaud & richard, 2015). the tbl philosophy concludes logically the role of three types of capital in determining organisational performance, namely economic capital, natural capital, and social capital. efforts to build sustainability will help organisations equalise the importance of the three types of capital and integrate them into every aspect of organisational life. to formulate its sustainability concept, higher education can learn from business organisations that have implemented the tbl concept in their sustainability reporting (lozano, 2011). the use of the tbl concept to measure higher education sustainability cannot be separated from the existence of higher education as a non-profit organisation in competition for higher education services. every university needs to have a level of competitive advantage because theoretical and practical studies show that organisations will win an intense competition with a sustainable level of competitive advantage, not a temporary competitive advantage (o'shannassy, 2008). sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 52 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java sigalas (2015) argues that the most effective achievement of competitive advantage is the use of superior skills or organisational capabilities. in addition, superior competence also provides an opportunity for an organisation to generate and act based on a knowledge of competitors' actions and reactions that will help build a competitive strategy. the following is a table of developments in the number of private universities in east java published in the annual report of the ministry of research, technology and higher education (kemenristek dikti) for 2011 to 2017. table 1. development of the number of universities in east java for the academic years 2011/2012 to 2018/2019 academic year college status state private 2011/2012 11 330 2012/2013 13 326 2013/2014 15 363 2014/2015 17 326 2015/2016 17 329 2016/2017 17 328 2017/2018 17 328 2018/2019 17 324 source: kemenristek dikti annual report table 1 shows that the number of private universities in east java has been declining every year. in the 2011/2012 academic year, kemenristek dikti reported the number of private universities run by higher education service institutions (lldikti) region 7 east java was as many as 330 units, but there was a continuous reduction to 324 units in the 2018/2019 academic year. this is not the case with state universities, whose numbers are always constant or increasing. the fluctuation in the number of private universities from year to year shows that the level of sustainability of private universities in the performance of their functions as higher education institutions is still questionable. intellectual fraud practices are often the cause of private universities failing to achieve organisational sustainability, for example: 1. having a total lecturer: student ratio that exceeds the provisions of the permenristek dikti, as 31 private universities in east java have done for the period 2014 to 2018 (https://www.malangtimes.com). excessive numbers of students result in the inability of lecturers to provide knowledge to students in such a way that the quality of students or graduates is not good enough and public trust is declining. problematic private universities include nusantara university pgri kediri, ronggolawe university tuban, ikip pgri jember and ikip budi utomo malang. 2. problem of mismanagement at the private universities organising body, as implemented by tri tunggal university in 2000 (https://penarakyatnews.id). the tri tunggal university problem began with the emergence of two tri tunggal university trustees foundation administrators who were both looking for students and lecturers at two different tri tunggal university campuses, namely the jl campus. simpang dukuh 11, jl. kalijudan 34 of surabaya. each campus has its management, different rectors, and diplomas. as a result, the two diplomas were declared fake by the state, and the higher education campus closed in early may 2016 (http://www.beritajatim.com). all the challenges faced by private universities impact the inability of private universities to manage strategic resources for the achievement of organisational objectives. some of the sanctions imposed by ministries that must be borne by problematic universities include sanctions for guidance, not receiving operational funding assistance, not receiving ministries in any field until the problem has been resolved, not being able to accept new students, and the highest sanction is revoking higher education operating permits. when linked to the rbt theory, the sanctions that problematic private universities have to affect the organisation's sustainability because rbt emphasises the importance of management's ability to identify and use strategic assets consisting of tangible assets and intangible assets to build sustainable business growth. to identify strategic assets of higher education, this study assumes that all knowledge-based assets are intangible strategic assets (intangible assets) that will provide added value to the organisation to improve performance. the role of higher education as a knowledge-based organisation in which different kinds of knowledge are developed (sizer, 2001) as well as a producer of reliable human resources in the field of science (adams, 2013) this is the reason for the provision of "knowledge-based assets" as a strategic asset for higher education. bontis, dragonetti, jacobsen, & ross (1999) reviews four models for measuring knowledge as intangible assets, namely 1) human resource accounting; 2) economic value added; 3) a balanced scorecard, and 4) intellectual capital. this study chooses a single measurement model, namely intellectual capital (ic), because ic includes a value creation factor that cannot be shown on traditional balance sheets, but is very important for long-term performance (andreou & bontis, 2007). the model for measuring knowledge through intellectual capital is very appropriate to be used in this study because universities, as a research site, do not publish balance sheets or financial reports as a measure of organisational performance. the application of intellectual capital to sustainable practices is a management effort aimed at gathering empirical evidence to deepen the potential role of intellectual capital in the process of value creation (dumay & guthrie, 2012). the close relationship between intellectual capital and sustainability can be analysed continuously through its role in achieving organisational performance (coleman, 2007), fatoki (2011), todericiu & şerban (2015), nawaz & haniffa (2017). researchers have argued that intellectual capital impacts organisational performance in both the present and the future. the importance of intellectual capital in building sustainability has been shown by pedrini (2007). the practice of organisational responsibility, which is geared towards increasing intangible resources, has proven to be capable of producing better organisational performance in the long term. similar findings have also been reported by dutot, galvez, & versailles (2016) the relationship between intellectual capital and sustainability actions is demonstrated by enhancing reputation and corporate image and fostering technological innovation. flexibility, speed, innovation, and integration call for human resources full of creativity, while creativity itself can emerge from human resources that have advantages in science (marr et al., 2003). many experts argue that intellectual capital's contribution to achieving the organisation's strategic objectives can only be achieved if organisational managers can prioritise the scarce resources they have (bornemann & wiedenhofer, 2014). in practice, managers do not practice intellectual capital as much as academics preach (dumay, 2009). ultimately, this condition raises the need to understand what an organisation can do to maximise the relationship between intellectual capital and sustainability (massaro et al., 2018). leaders with managerial intelligence are needed to solve organisational problems that are innovatively science-based and apply knowledge to build and maintain competitive advantage through management activities called knowledge management (sternberg, 1997; tung, 2018; wiig, 1997). leaders who have managerial intelligence are needed to solve organisational problems that are innovatively science-based and apply knowledge to build and maintain competitive advantage through management activities called knowledge management sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 53siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java sigalas (2015) argues that the most effective achievement of competitive advantage is the use of superior skills or organisational capabilities. in addition, superior competence also provides an opportunity for an organisation to generate and act based on a knowledge of competitors' actions and reactions that will help build a competitive strategy. the following is a table of developments in the number of private universities in east java published in the annual report of the ministry of research, technology and higher education (kemenristek dikti) for 2011 to 2017. table 1. development of the number of universities in east java for the academic years 2011/2012 to 2018/2019 academic year college status state private 2011/2012 11 330 2012/2013 13 326 2013/2014 15 363 2014/2015 17 326 2015/2016 17 329 2016/2017 17 328 2017/2018 17 328 2018/2019 17 324 source: kemenristek dikti annual report table 1 shows that the number of private universities in east java has been declining every year. in the 2011/2012 academic year, kemenristek dikti reported the number of private universities run by higher education service institutions (lldikti) region 7 east java was as many as 330 units, but there was a continuous reduction to 324 units in the 2018/2019 academic year. this is not the case with state universities, whose numbers are always constant or increasing. the fluctuation in the number of private universities from year to year shows that the level of sustainability of private universities in the performance of their functions as higher education institutions is still questionable. intellectual fraud practices are often the cause of private universities failing to achieve organisational sustainability, for example: 1. having a total lecturer: student ratio that exceeds the provisions of the permenristek dikti, as 31 private universities in east java have done for the period 2014 to 2018 (https://www.malangtimes.com). excessive numbers of students result in the inability of lecturers to provide knowledge to students in such a way that the quality of students or graduates is not good enough and public trust is declining. problematic private universities include nusantara university pgri kediri, ronggolawe university tuban, ikip pgri jember and ikip budi utomo malang. 2. problem of mismanagement at the private universities organising body, as implemented by tri tunggal university in 2000 (https://penarakyatnews.id). the tri tunggal university problem began with the emergence of two tri tunggal university trustees foundation administrators who were both looking for students and lecturers at two different tri tunggal university campuses, namely the jl campus. simpang dukuh 11, jl. kalijudan 34 of surabaya. each campus has its management, different rectors, and diplomas. as a result, the two diplomas were declared fake by the state, and the higher education campus closed in early may 2016 (http://www.beritajatim.com). all the challenges faced by private universities impact the inability of private universities to manage strategic resources for the achievement of organisational objectives. some of the sanctions imposed by ministries that must be borne by problematic universities include sanctions for guidance, not receiving operational funding assistance, not receiving ministries in any field until the problem has been resolved, not being able to accept new students, and the highest sanction is revoking higher education operating permits. when linked to the rbt theory, the sanctions that problematic private universities have to affect the organisation's sustainability because rbt emphasises the importance of management's ability to identify and use strategic assets consisting of tangible assets and intangible assets to build sustainable business growth. to identify strategic assets of higher education, this study assumes that all knowledge-based assets are intangible strategic assets (intangible assets) that will provide added value to the organisation to improve performance. the role of higher education as a knowledge-based organisation in which different kinds of knowledge are developed (sizer, 2001) as well as a producer of reliable human resources in the field of science (adams, 2013) this is the reason for the provision of "knowledge-based assets" as a strategic asset for higher education. bontis, dragonetti, jacobsen, & ross (1999) reviews four models for measuring knowledge as intangible assets, namely 1) human resource accounting; 2) economic value added; 3) a balanced scorecard, and 4) intellectual capital. this study chooses a single measurement model, namely intellectual capital (ic), because ic includes a value creation factor that cannot be shown on traditional balance sheets, but is very important for long-term performance (andreou & bontis, 2007). the model for measuring knowledge through intellectual capital is very appropriate to be used in this study because universities, as a research site, do not publish balance sheets or financial reports as a measure of organisational performance. the application of intellectual capital to sustainable practices is a management effort aimed at gathering empirical evidence to deepen the potential role of intellectual capital in the process of value creation (dumay & guthrie, 2012). the close relationship between intellectual capital and sustainability can be analysed continuously through its role in achieving organisational performance (coleman, 2007), fatoki (2011), todericiu & şerban (2015), nawaz & haniffa (2017). researchers have argued that intellectual capital impacts organisational performance in both the present and the future. the importance of intellectual capital in building sustainability has been shown by pedrini (2007). the practice of organisational responsibility, which is geared towards increasing intangible resources, has proven to be capable of producing better organisational performance in the long term. similar findings have also been reported by dutot, galvez, & versailles (2016) the relationship between intellectual capital and sustainability actions is demonstrated by enhancing reputation and corporate image and fostering technological innovation. flexibility, speed, innovation, and integration call for human resources full of creativity, while creativity itself can emerge from human resources that have advantages in science (marr et al., 2003). many experts argue that intellectual capital's contribution to achieving the organisation's strategic objectives can only be achieved if organisational managers can prioritise the scarce resources they have (bornemann & wiedenhofer, 2014). in practice, managers do not practice intellectual capital as much as academics preach (dumay, 2009). ultimately, this condition raises the need to understand what an organisation can do to maximise the relationship between intellectual capital and sustainability (massaro et al., 2018). leaders with managerial intelligence are needed to solve organisational problems that are innovatively science-based and apply knowledge to build and maintain competitive advantage through management activities called knowledge management (sternberg, 1997; tung, 2018; wiig, 1997). leaders who have managerial intelligence are needed to solve organisational problems that are innovatively science-based and apply knowledge to build and maintain competitive advantage through management activities called knowledge management sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 54 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java (zhou & fink, 2003). knowledge management leads to harmonising the relationship between units and creates an organisational climate that is conducive to the achievement of organisational objectives to have an impact on organisational sustainability (tung, 2018). empirical studies show that the organisation in which knowledge is created, recognised, stored, used and transferred to support strategic development will continue to grow and develop (earl, 2001; teodorescu, 2006). the success of leadership in identifying, distributing and applying knowledge in all aspects of organisational life is a measure of knowledge management's success (wiig, 1997). according to cheong & tsui (2011), knowledge management is an effort to combine the different experiences, intuitions, ideas, skills, motivations and interpretations of individuals involved in organisations, so the key to success lies in the management of personal knowledge. there are two main aspects to personal knowledge management, namely: making knowledge a solution to organisational problems; and, secondly, establishing a direct relationship between intellectual assets and organisational performance (barclay & murray, 2000). some personal knowledge management performance according to (zhou & fink, 2003) among others: (1) monitor and facilitate knowledge-related activities; (2) build and update knowledge assets; and (3) use knowledge assets effectively. at present, the higher education sector has seen a paradigm shift in the higher education system from the classic model to the modern technology-based model (lyapina et al., 2019). higher education leaders should understand these needs and apply information technology to all aspects of their leadership. in this context, information technology is used to perform two management functions: the performance function and the supervisory function (indrajit, 2011). the performance function relates to the leadership strategy for achieving effective and efficient performance targets, while the supervisory function concerns procedures for the rapid and accurate assessment of organisational performance. therefore, it is necessary to develop a technology application to make it easier for lecturers and students to use and distribute global knowledge. organisational sustainability is closely linked to the organisation's brand image in the eyes of stakeholders and the wider community (app & büttgen, 2016). the organisational image represents all stakeholders' perceptions of organisational quality and often triggers word of mouth (wom) communication (stojanovic et al., 2018). each organisation can build a positive image through effective communication or innovative marketing models according to the wishes of the stakeholders (akonkwa, 2009). given that students are the main stakeholders in higher education, while students are part of the millennial generation, the most appropriate communication model is communication that can meet students' needs as part of the millennial generation (assimakopoulos et al., 2017). the millennial generation is a generation that is always connected to the internet, has a deep involvement in digital technology, and uses this interactive technology to gather information or entertain and decide things online (moore, 2012). millennials prefer information transmitted via social media such as youtube, instagram or facebook to information transmitted conventionally in the form of printed media (bondarouk et al., 2013). southeast asia's social media users have been fast shifting on social media platforms (daniel susilo & putranto, 2018);(d susilo et al., 2019). social media is the most suitable communication and marketing tool for universities to recruit prospective students (khan, 2013). younger generations are extremely reliant on social media and split into fictitious communities (yunus et al., 2019). this theory explains that consumer sympathy for the organisation will continue to grow if they can inform the public about the organisation's services. higher education leaders need to understand how social media can be used effectively in organisations (merrill, 2011) and use social media presence to communicate university policies to students (hamid et al., 2017). social media is a valuable tool for recruiting prospective students and analysing student potential through communication (vrontis et al., 2018). branding created through social media is very honest so that it can accelerate the achievement of organisational objectives. that is why this study makes social media marketing a variable that can moderate intellectual capital and university managerial intelligence's impact on organisational sustainability. as an institution that produces quality labour, higher education is expected to be at the forefront of meeting the needs of quality human resources. higher education requires strategic planning for organisational sustainability because higher education's sustainability is closely linked to the concept of sustainable development (adams, 2013). under the concept of sustainability, tertiary institutions can attract many national and international students to generate large incomes for themselves and play a key role in sustainable development (jose & chacko, 2017). this study analyses the role of knowledge-based variables in building higher education sustainability because higher education institutions are knowledge institutions and always maintain or develop knowledge through research activities. knowledge-based variables include intellectual capital, university managerial intelligence, and social media. based on this, this study's problem is how knowledgebased variables in the sustainability of private universities in east java? ii. methodology this research focused on human behaviour through the research method of the survey. the approach used was a quantitative approach (positivism) where the data obtained is a number (score or value) which is then analysed using the statistical techniques. the type of data is the primary data collected through a questionnaire to explain the research object based on the respondent's perception, namely the chancellor or university leadership at the chancellor level in all private universities in east java. the distribution of questionnaires to the respondents was carried out in person, by post, by google form or by e-mail in accordance with the agreement between the researcher and the respondent. in completing the questionnaire, the chancellor can present the task to other officials who are considered capable of understanding the concept of sustainability of the higher education that he leads. responses to the questionnaire were tabulated using the likert scale, which interacted in the range 1 to 5 and explained: 1. if the respondent's perception is strongly disagree / very rare / strongly not considered. 2. if the respondent's perception is disagree / rare / not considered. 3. if the respondent's perception is doubtful. 4. if the respondent's perception is agree / often / considered. 5. if the respondent's perception is strongly agree / very often / very considered. population and sample the population is the whole object of research that consists of a group of people or events with specific characteristics (sekaran, 2003). the research population was a private university in east java that can use knowledge as a strategic asset. the private universities were the ones which have been well managed and have received recognition from the government through the national accreditation board for higher education (ban-pt) by giving the higher education accreditation (apt) rating of at sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 55siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java (zhou & fink, 2003). knowledge management leads to harmonising the relationship between units and creates an organisational climate that is conducive to the achievement of organisational objectives to have an impact on organisational sustainability (tung, 2018). empirical studies show that the organisation in which knowledge is created, recognised, stored, used and transferred to support strategic development will continue to grow and develop (earl, 2001; teodorescu, 2006). the success of leadership in identifying, distributing and applying knowledge in all aspects of organisational life is a measure of knowledge management's success (wiig, 1997). according to cheong & tsui (2011), knowledge management is an effort to combine the different experiences, intuitions, ideas, skills, motivations and interpretations of individuals involved in organisations, so the key to success lies in the management of personal knowledge. there are two main aspects to personal knowledge management, namely: making knowledge a solution to organisational problems; and, secondly, establishing a direct relationship between intellectual assets and organisational performance (barclay & murray, 2000). some personal knowledge management performance according to (zhou & fink, 2003) among others: (1) monitor and facilitate knowledge-related activities; (2) build and update knowledge assets; and (3) use knowledge assets effectively. at present, the higher education sector has seen a paradigm shift in the higher education system from the classic model to the modern technology-based model (lyapina et al., 2019). higher education leaders should understand these needs and apply information technology to all aspects of their leadership. in this context, information technology is used to perform two management functions: the performance function and the supervisory function (indrajit, 2011). the performance function relates to the leadership strategy for achieving effective and efficient performance targets, while the supervisory function concerns procedures for the rapid and accurate assessment of organisational performance. therefore, it is necessary to develop a technology application to make it easier for lecturers and students to use and distribute global knowledge. organisational sustainability is closely linked to the organisation's brand image in the eyes of stakeholders and the wider community (app & büttgen, 2016). the organisational image represents all stakeholders' perceptions of organisational quality and often triggers word of mouth (wom) communication (stojanovic et al., 2018). each organisation can build a positive image through effective communication or innovative marketing models according to the wishes of the stakeholders (akonkwa, 2009). given that students are the main stakeholders in higher education, while students are part of the millennial generation, the most appropriate communication model is communication that can meet students' needs as part of the millennial generation (assimakopoulos et al., 2017). the millennial generation is a generation that is always connected to the internet, has a deep involvement in digital technology, and uses this interactive technology to gather information or entertain and decide things online (moore, 2012). millennials prefer information transmitted via social media such as youtube, instagram or facebook to information transmitted conventionally in the form of printed media (bondarouk et al., 2013). southeast asia's social media users have been fast shifting on social media platforms (daniel susilo & putranto, 2018);(d susilo et al., 2019). social media is the most suitable communication and marketing tool for universities to recruit prospective students (khan, 2013). younger generations are extremely reliant on social media and split into fictitious communities (yunus et al., 2019). this theory explains that consumer sympathy for the organisation will continue to grow if they can inform the public about the organisation's services. higher education leaders need to understand how social media can be used effectively in organisations (merrill, 2011) and use social media presence to communicate university policies to students (hamid et al., 2017). social media is a valuable tool for recruiting prospective students and analysing student potential through communication (vrontis et al., 2018). branding created through social media is very honest so that it can accelerate the achievement of organisational objectives. that is why this study makes social media marketing a variable that can moderate intellectual capital and university managerial intelligence's impact on organisational sustainability. as an institution that produces quality labour, higher education is expected to be at the forefront of meeting the needs of quality human resources. higher education requires strategic planning for organisational sustainability because higher education's sustainability is closely linked to the concept of sustainable development (adams, 2013). under the concept of sustainability, tertiary institutions can attract many national and international students to generate large incomes for themselves and play a key role in sustainable development (jose & chacko, 2017). this study analyses the role of knowledge-based variables in building higher education sustainability because higher education institutions are knowledge institutions and always maintain or develop knowledge through research activities. knowledge-based variables include intellectual capital, university managerial intelligence, and social media. based on this, this study's problem is how knowledgebased variables in the sustainability of private universities in east java? ii. methodology this research focused on human behaviour through the research method of the survey. the approach used was a quantitative approach (positivism) where the data obtained is a number (score or value) which is then analysed using the statistical techniques. the type of data is the primary data collected through a questionnaire to explain the research object based on the respondent's perception, namely the chancellor or university leadership at the chancellor level in all private universities in east java. the distribution of questionnaires to the respondents was carried out in person, by post, by google form or by e-mail in accordance with the agreement between the researcher and the respondent. in completing the questionnaire, the chancellor can present the task to other officials who are considered capable of understanding the concept of sustainability of the higher education that he leads. responses to the questionnaire were tabulated using the likert scale, which interacted in the range 1 to 5 and explained: 1. if the respondent's perception is strongly disagree / very rare / strongly not considered. 2. if the respondent's perception is disagree / rare / not considered. 3. if the respondent's perception is doubtful. 4. if the respondent's perception is agree / often / considered. 5. if the respondent's perception is strongly agree / very often / very considered. population and sample the population is the whole object of research that consists of a group of people or events with specific characteristics (sekaran, 2003). the research population was a private university in east java that can use knowledge as a strategic asset. the private universities were the ones which have been well managed and have received recognition from the government through the national accreditation board for higher education (ban-pt) by giving the higher education accreditation (apt) rating of at sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 56 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java least 'c.' on the http://www.ban-ptuniversitas.co.id page, we found that the number of private universities in east java with an apt rating of 80 private universities up to 2019, so the population in this study were 80 private universities. the parties acting as respondents (data sources) are the private universities' leaders in east java, namely the 'chancellor' for universities and academies, and the 'chairman' for higher education. primary data in this study were collected through the distribution of questionnaires with two characteristics: closed and open. a closed questionnaire was used to measure the perceptions of the respondents. in the meantime, an open questionnaire was used to dig more profound information on the questions in a closed questionnaire. the data obtained by means of a closed questionnaire is the sum of the scores of each respondent for all variables studied based on the likert scale of 1 to 5: 1. score one (1) of the first choice 2. score two (2) of the second choice 3. score three (3) of the third choice 4. score 4 (4) for the fourth choice 5. score 5 (5) for the fifth choice iii. results and discussion validity test this validation test is obtained by correlating each indicator score with the total variable indicator score, and the correlation results are then compared to the critical value at a significant level of 0.05. if the analysis results show a value of significance > 0.05, the items in the questionnaire do not show a value of validity so that they cannot be continued as a research tool. the validation test is carried out using the calculation of the productmoment of correlation, using the following formula:            2222xy y)(ynx)(xn y)x)((xyn r rxy = the correlation coefficient for the independent variable and the dependent variable n = the number of samples x = score each item y = variable total score the recapitulation of the validity test results of all tested variables is presented in the following tables. table 2. the validity of the items of the intellectual capital statement item no r-indic sign r-var sign information human capital 1 0.776 0.000 0.599 0.000 valid human capital 2 0.855 0.000 0.741 0.000 valid human capital 3 0.756 0.000 0.780 0.000 valid human capital 4 0.469 0.009 0.478 0.008 valid human capital 5 0.725 0.000 0.771 0.000 valid human capital 6 0.728 0.000 0.739 0.000 valid human capital 7 0.629 0.000 0.627 0.000 valid human capital 8 0.812 0.000 0.816 0.000 valid human capital 9 0.743 0.000 0.688 0.000 valid organizational cap 10 0.752 0.000 0.727 0.000 valid organizational cap 11 0.740 0.000 0.604 0.000 valid organizational cap 12 0.736 0.000 0.631 0.000 valid organizational cap 13 0.788 0.000 0.654 0.000 valid organizational cap 14 0.827 0.000 0.722 0.000 valid organizational cap 15 0.527 0.003 0.452 0.012 valid relational capital 16 0.801 0.000 0.747 0.000 valid relational capital 17 0.852 0.000 0.802 0.000 valid relational capital 18 0.529 0.003 0.395 0.031 valid relational capital 19 0.769 0.000 0.765 0.000 valid relational capital 20 0.785 0.000 0.734 0.000 valid source: validity test results it is explained in table 2 that the correlation coefficient between the score of each item/statement with the score indicator on the intellectual capital variable has a significant level of ≤ 0.05. thus, it can be concluded that all items are declared valid in measuring variables. table 3. the validity of university managerial intelligence statement items item no r-indic sign r-var sign information personal km 1 0.720 0.000 0.697 0.000 valid personal km 2 0.755 0.000 0.775 0.000 valid personal km 3 0.806 0.000 0.814 0.000 valid personal km 4 0.853 0.000 0.831 0.000 valid personal km 5 0.819 0.000 0.764 0.000 valid personal km 6 0.782 0.000 0.751 0.000 valid personal km 7 0.772 0.000 0.680 0.000 valid personal km 8 0.622 0.000 0.539 0.002 valid personal km 9 0.705 0.000 0.692 0.000 valid personal km 10 0.675 0.000 0.681 0.000 valid univ. governance 11 0.727 0.000 0.578 0.001 valid univ. governance 12 0.790 0.000 0.686 0.000 valid univ. governance 13 0.751 0.000 0.655 0.000 valid univ. governance 14 0.854 0.000 0.692 0.000 valid univ. governance 15 0.660 0.000 0.752 0.000 valid it capabilities 16 0.892 0.000 0.802 0.000 valid it capabilities 17 0.868 0.000 0.746 0.000 valid it capabilities 18 0.880 0.000 0.787 0.000 valid it capabilities 19 0.640 0.000 0.574 0.001 valid it capabilities 20 0.811 0.000 0.799 0.000 valid source: validity test results table 3 shows that the correlation coefficient between each item/statement's score and the score indicator on the university managerial intelligence variable has a significant level of ≤ 0.05. thus, it can be concluded that all items are declared valid for the measurement variables. the validity of the statement items measuring the social media marketing variable is explained in table 4. the coefficient of correlation between the score of each item/statement and the social media marketing variable score has a value of ≤ 0.05. thus, it can be concluded that all items are declared valid for the measurement variables. table 4. the validity of items of social media marketing item no r-indic sign r-var sign information content creation 1 0.936 0.000 0.907 0.000 valid sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 57siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java least 'c.' on the http://www.ban-ptuniversitas.co.id page, we found that the number of private universities in east java with an apt rating of 80 private universities up to 2019, so the population in this study were 80 private universities. the parties acting as respondents (data sources) are the private universities' leaders in east java, namely the 'chancellor' for universities and academies, and the 'chairman' for higher education. primary data in this study were collected through the distribution of questionnaires with two characteristics: closed and open. a closed questionnaire was used to measure the perceptions of the respondents. in the meantime, an open questionnaire was used to dig more profound information on the questions in a closed questionnaire. the data obtained by means of a closed questionnaire is the sum of the scores of each respondent for all variables studied based on the likert scale of 1 to 5: 1. score one (1) of the first choice 2. score two (2) of the second choice 3. score three (3) of the third choice 4. score 4 (4) for the fourth choice 5. score 5 (5) for the fifth choice iii. results and discussion validity test this validation test is obtained by correlating each indicator score with the total variable indicator score, and the correlation results are then compared to the critical value at a significant level of 0.05. if the analysis results show a value of significance > 0.05, the items in the questionnaire do not show a value of validity so that they cannot be continued as a research tool. the validation test is carried out using the calculation of the productmoment of correlation, using the following formula:            2222xy y)(ynx)(xn y)x)((xyn r rxy = the correlation coefficient for the independent variable and the dependent variable n = the number of samples x = score each item y = variable total score the recapitulation of the validity test results of all tested variables is presented in the following tables. table 2. the validity of the items of the intellectual capital statement item no r-indic sign r-var sign information human capital 1 0.776 0.000 0.599 0.000 valid human capital 2 0.855 0.000 0.741 0.000 valid human capital 3 0.756 0.000 0.780 0.000 valid human capital 4 0.469 0.009 0.478 0.008 valid human capital 5 0.725 0.000 0.771 0.000 valid human capital 6 0.728 0.000 0.739 0.000 valid human capital 7 0.629 0.000 0.627 0.000 valid human capital 8 0.812 0.000 0.816 0.000 valid human capital 9 0.743 0.000 0.688 0.000 valid organizational cap 10 0.752 0.000 0.727 0.000 valid organizational cap 11 0.740 0.000 0.604 0.000 valid organizational cap 12 0.736 0.000 0.631 0.000 valid organizational cap 13 0.788 0.000 0.654 0.000 valid organizational cap 14 0.827 0.000 0.722 0.000 valid organizational cap 15 0.527 0.003 0.452 0.012 valid relational capital 16 0.801 0.000 0.747 0.000 valid relational capital 17 0.852 0.000 0.802 0.000 valid relational capital 18 0.529 0.003 0.395 0.031 valid relational capital 19 0.769 0.000 0.765 0.000 valid relational capital 20 0.785 0.000 0.734 0.000 valid source: validity test results it is explained in table 2 that the correlation coefficient between the score of each item/statement with the score indicator on the intellectual capital variable has a significant level of ≤ 0.05. thus, it can be concluded that all items are declared valid in measuring variables. table 3. the validity of university managerial intelligence statement items item no r-indic sign r-var sign information personal km 1 0.720 0.000 0.697 0.000 valid personal km 2 0.755 0.000 0.775 0.000 valid personal km 3 0.806 0.000 0.814 0.000 valid personal km 4 0.853 0.000 0.831 0.000 valid personal km 5 0.819 0.000 0.764 0.000 valid personal km 6 0.782 0.000 0.751 0.000 valid personal km 7 0.772 0.000 0.680 0.000 valid personal km 8 0.622 0.000 0.539 0.002 valid personal km 9 0.705 0.000 0.692 0.000 valid personal km 10 0.675 0.000 0.681 0.000 valid univ. governance 11 0.727 0.000 0.578 0.001 valid univ. governance 12 0.790 0.000 0.686 0.000 valid univ. governance 13 0.751 0.000 0.655 0.000 valid univ. governance 14 0.854 0.000 0.692 0.000 valid univ. governance 15 0.660 0.000 0.752 0.000 valid it capabilities 16 0.892 0.000 0.802 0.000 valid it capabilities 17 0.868 0.000 0.746 0.000 valid it capabilities 18 0.880 0.000 0.787 0.000 valid it capabilities 19 0.640 0.000 0.574 0.001 valid it capabilities 20 0.811 0.000 0.799 0.000 valid source: validity test results table 3 shows that the correlation coefficient between each item/statement's score and the score indicator on the university managerial intelligence variable has a significant level of ≤ 0.05. thus, it can be concluded that all items are declared valid for the measurement variables. the validity of the statement items measuring the social media marketing variable is explained in table 4. the coefficient of correlation between the score of each item/statement and the social media marketing variable score has a value of ≤ 0.05. thus, it can be concluded that all items are declared valid for the measurement variables. table 4. the validity of items of social media marketing item no r-indic sign r-var sign information content creation 1 0.936 0.000 0.907 0.000 valid sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 58 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java item no r-indic sign r-var sign information content creation 2 0.796 0.000 0.782 0.000 valid content creation 3 0.932 0.000 0.862 0.000 valid content creation 4 0.744 0.000 0.747 0.000 valid content creation 5 0.831 0.000 0.726 0.000 valid content sharing 6 0.717 0.000 0.725 0.000 valid content sharing 7 0.878 0.000 0.798 0.000 valid content sharing 8 0.802 0.000 0.772 0.000 valid content sharing 9 0.730 0.000 0.568 0.001 valid content sharing 10 0.652 0.000 0.527 0.003 valid connecting 11 0.599 0.000 0.545 0.002 valid connecting 12 0.578 0.001 0.595 0.001 valid connecting 13 0.856 0.000 0.735 0.000 valid connecting 14 0.815 0.000 0.745 0.000 valid connecting 15 0.878 0.000 0.725 0.000 valid community building 16 0.855 0.000 0.731 0.000 valid community building 17 0.727 0.000 0.633 0.000 valid community building 18 0.809 0.000 0.816 0.000 valid community building 19 0.862 0.000 0.723 0.000 valid community building 20 0.834 0.000 0.799 0.000 valid source: validity test results reliability test the purpose of the reliability test is to determine the consistency of the measuring instruments in use, or, in other words, the measuring instrument will have consistent results if used often at different times. the reliability test is performed using the cronbach alpha technique, where the device can be said to be reliable (reliable) if it has a reliability coefficient or an alpha of 0.700 or more. formulas:                  2 2 11 στ σb 1 1k kr where: n n x x   2 2  r11 = instrument reliability k = the number of questions 2b = the number of grain variances 2t = the total variance n = the number of samples the recapitulation of the reliability test results for all variables is presented in the following tables. table 5. reliability of intellectual capital items indicator number of items cronbach's alpha information human capital 4 0.885 reliable organizational capital 4 0.824 reliable relational capital 4 0.790 reliable source: reliability test results the cronbach alpha test results in table 5 show that the value of the reliability coefficient on the human capital, organizational capital and relational capital indicators is more than 0,700. thus, it can be concluded that all statements in these indicators can be trusted or can be reliably used as a measure of the variable intellectual capital. table 6. reliability of university managerial intelligence items indicator number of items cronbach's alpha information personal knowledge management 4 0.910 reliable university governance management 4 0.803 reliable information technology capabilities 4 0.900 reliable source: reliability test results it is known from the cronbach alpha test results presented in table 6 that the value of the reliability coefficient on the university's personal knowledge management governance index as well as on the information technology capabilities is more than 0,700. thus, it can be concluded that all statements in these indicators can be trusted or can be reliably used as a measure of the university managerial intelligence variable. table 7. reliability items of social media marketing items indicator number of items cronbach's alpha information content creation 5 0.902 reliable content sharing 5 0.802 reliable connecting 5 0.810 reliable community building 5 0.872 reliable source: reliability test results the cronbach alpha test results presented in table 7 indicate that the value of the reliability coefficient for the content creation, content sharing, connecting, and community building indicators is more than 0,700. thus, it can be concluded that all statements contained in these indicators can be trusted or reliably used to measure the variables of social media marketing. discussion this study shows that social media marketing (smm) is unable to reduce the impact of intellectual capital (ic) on organizational sustainability (os). similar conclusions are also drawn on the role of smm as moderating the effect of the university managerial intelligence (umi) on os. the moderating test results on ic's effect on the os even showed a negative and insignificant coefficient of direction. as a result, the accuracy of the smm information appears to be questioned by the stakeholders. the public tends not merely to trust the universities' information (private universities in east java). similarly, the role of smm in moderating the influence of umi on os. although the directional coefficient shows a positive value, this value is not sufficiently significant to conclude that smm can moderate the effect of umi on os. the determination of smm as a moderating variable is based on the researchers' awareness of research time in the industrial era 4.0 and the hectic pace of sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 59siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java item no r-indic sign r-var sign information content creation 2 0.796 0.000 0.782 0.000 valid content creation 3 0.932 0.000 0.862 0.000 valid content creation 4 0.744 0.000 0.747 0.000 valid content creation 5 0.831 0.000 0.726 0.000 valid content sharing 6 0.717 0.000 0.725 0.000 valid content sharing 7 0.878 0.000 0.798 0.000 valid content sharing 8 0.802 0.000 0.772 0.000 valid content sharing 9 0.730 0.000 0.568 0.001 valid content sharing 10 0.652 0.000 0.527 0.003 valid connecting 11 0.599 0.000 0.545 0.002 valid connecting 12 0.578 0.001 0.595 0.001 valid connecting 13 0.856 0.000 0.735 0.000 valid connecting 14 0.815 0.000 0.745 0.000 valid connecting 15 0.878 0.000 0.725 0.000 valid community building 16 0.855 0.000 0.731 0.000 valid community building 17 0.727 0.000 0.633 0.000 valid community building 18 0.809 0.000 0.816 0.000 valid community building 19 0.862 0.000 0.723 0.000 valid community building 20 0.834 0.000 0.799 0.000 valid source: validity test results reliability test the purpose of the reliability test is to determine the consistency of the measuring instruments in use, or, in other words, the measuring instrument will have consistent results if used often at different times. the reliability test is performed using the cronbach alpha technique, where the device can be said to be reliable (reliable) if it has a reliability coefficient or an alpha of 0.700 or more. formulas:                  2 2 11 στ σb 1 1k kr where: n n x x   2 2  r11 = instrument reliability k = the number of questions 2b = the number of grain variances 2t = the total variance n = the number of samples the recapitulation of the reliability test results for all variables is presented in the following tables. table 5. reliability of intellectual capital items indicator number of items cronbach's alpha information human capital 4 0.885 reliable organizational capital 4 0.824 reliable relational capital 4 0.790 reliable source: reliability test results the cronbach alpha test results in table 5 show that the value of the reliability coefficient on the human capital, organizational capital and relational capital indicators is more than 0,700. thus, it can be concluded that all statements in these indicators can be trusted or can be reliably used as a measure of the variable intellectual capital. table 6. reliability of university managerial intelligence items indicator number of items cronbach's alpha information personal knowledge management 4 0.910 reliable university governance management 4 0.803 reliable information technology capabilities 4 0.900 reliable source: reliability test results it is known from the cronbach alpha test results presented in table 6 that the value of the reliability coefficient on the university's personal knowledge management governance index as well as on the information technology capabilities is more than 0,700. thus, it can be concluded that all statements in these indicators can be trusted or can be reliably used as a measure of the university managerial intelligence variable. table 7. reliability items of social media marketing items indicator number of items cronbach's alpha information content creation 5 0.902 reliable content sharing 5 0.802 reliable connecting 5 0.810 reliable community building 5 0.872 reliable source: reliability test results the cronbach alpha test results presented in table 7 indicate that the value of the reliability coefficient for the content creation, content sharing, connecting, and community building indicators is more than 0,700. thus, it can be concluded that all statements contained in these indicators can be trusted or reliably used to measure the variables of social media marketing. discussion this study shows that social media marketing (smm) is unable to reduce the impact of intellectual capital (ic) on organizational sustainability (os). similar conclusions are also drawn on the role of smm as moderating the effect of the university managerial intelligence (umi) on os. the moderating test results on ic's effect on the os even showed a negative and insignificant coefficient of direction. as a result, the accuracy of the smm information appears to be questioned by the stakeholders. the public tends not merely to trust the universities' information (private universities in east java). similarly, the role of smm in moderating the influence of umi on os. although the directional coefficient shows a positive value, this value is not sufficiently significant to conclude that smm can moderate the effect of umi on os. the determination of smm as a moderating variable is based on the researchers' awareness of research time in the industrial era 4.0 and the hectic pace of sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 60 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java smm as a promotion medium for private universities to attract new students. higher education (in this case, private universities) needs to inform all its strategic resources that become competitive through appropriate marketing methods that prospective students like or understand. as part of the millennial generation that is always connected to the internet, it is appropriate for higher education leaders to understand this. therefore, higher education management and the public/prospective students need to understand the role of social media as a communication platform that can significantly impact the acquisition of new students and the motivation of students to learn. to measure the use of smm in higher education management, this study provides several questionnaire statements, such as content creation, content sharing, connectivity, and communication building indicators. for instance: a. adjusting the appearance of content to students and prospective students' preferences as part of the millennial generation. b. choose the type of social media that has a more extensive network. c. provide open space for content comments, etc. this study shows that everything presented cannot strengthen the influence of ic or umi on os. several possibilities cause smm not to moderate ic and umi's impact on the organisation's sustainability as ng has stated. there is still literature on differences in attitudes towards accepting or rejecting information between generations, and some experts argue that these differences are not meaningful. generation x, y, or even z have almost the same way to digest information. thus, the information presented through the smm should not have differences in perception between generations, especially if it relates to the millennial generation's decision to choose campus as a place to gain knowledge. prospective students are still very dependent on their parents' attitude to digesting information. the study results show that the information provided by private universities in social media is likely to be viewed differently by students and their parents as the primary decision-makers in the selection of campuses. on the other hand, the strategic steps that organisations must take to get the most out of their internet marketing activities. if an organisation does not feel that it has a positive impact on its posts, likely, the organisation does not have a specific internet marketing strategy. this opinion is consistent with states that organisations that can develop social media marketing strategies well will impact income growth, while those that do not have a good marketing strategy will not experience an increase in income. if the opinions of these experts are related to the results of this study, it can be explained why smm does not reduce the impact of ic and umi on sustainability, namely: a. it is possible that the information presented „only‟ represents students' needs or prospective students as a millennial generation without paying attention to the perceptions of parents who (maybe) do not understand the marketing of social media. b. private universities do not have a specific strategy for formulating marketing concepts for social media. what is being done by private universities can only follow the current (current) but does not have a clear idea of building sustainability. iv. conclusion based on the research problem in this study regarding how knowledge-based variables in the sustainability of private universities in east java, the results show that social media marketing does not moderate the influence of intellectual capital on the sustainability of private universities in east java. social media marketing does not moderate the influence of university managerial intelligence on the sustainability of private universities in east java. references acar, w., & polin, b. (2015). the ascent of resource-based theory as constructive rational-behavioral integration for looking inward and outwardle information : international journal of commerce and management, 25(4), 603–626. acedo, f. j., barroso, c., & galan, j. l. (2006). the resource-based theory: dissemination and main trends. strategic management journal, 27(7), 621–636. https://doi.org/10.1002/smj.532 adams, c. (2013). sustainability reporting and performance management in universities challenges and benefit. sustainability accounting, management and policy journal, 4(3), 384–392. akonkwa, d. b. m. (2009). is market orientation a relevant strategy for higher education institutions?: context analysis and research agenda. international journal of quality and service sciences, 1(3), 311–333. https://doi.org/10.1108/175666909110 04230 andreou, a., & bontis, n. (2007). a model for resource allocation using operational knowledge assets. the learning organization, 14(4), 345– 374. https://doi.org/10.1108/096964707107 49272 app, s., & büttgen, m. (2016). lasting footprints of the employer brand: can sustainable hrm lead to brand commitment? employee relations, 38(5), 703–723. https://doi.org/10.1108/er-06-20150122 assimakopoulos, c., antoniadis, i., kayas, o. g., & dvizac, d. (2017). effective social media marketing strategy: facebook as an opportunity for universities. international journal of retail & distribution management, 45(5), 532–549. https://doi.org/10.1108/ijrdm-112016-0211 barclay, r. o., & murray, p. c. (2000). what is knowledge management? knowledge praxis, 1–10. https://doi.org/10.1108/014351299102 91175 bondarouk, t., ruël, h., axinia, e., & arama, r. (2013). what is the future of employer branding through social media? results of the delphi study into the perceptions of hr professionals and academics. social media in human resources management, 23–57. https://doi.org/10.1108/s18776361(2013)0000012019 bontis, n., dragonetti, n., jacobsen, k., & ross, g. (1999). the knowledge toolbox: manage intangible available to measure and a review of the tools resources. european management journal, 17 (4)(4), 391–402. bornemann, m., & wiedenhofer, r. (2014). intellectual capital in education: a value chain perspective. journal of intellectual capital, 15(3), 451–470. https://doi.org/10.1108/jic-05-20140060 ceulemans, k., lozano, r., & alonsoalmeida, m. del m. (2015). sustainability reporting in higher education: interconnecting the reporting process and organisational change management for sustainability. sustainability (switzerland), 7(7), 8881–8903. https://doi.org/10.3390/su7078881 cheong, r. k. f., & tsui, e. (2011). from skills and competencies to outcomebased collaborative work: tracking a decade‟s development of personal knowledge management (pkm) models. knowledge and process management, 18(3), 175–193. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 61siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java smm as a promotion medium for private universities to attract new students. higher education (in this case, private universities) needs to inform all its strategic resources that become competitive through appropriate marketing methods that prospective students like or understand. as part of the millennial generation that is always connected to the internet, it is appropriate for higher education leaders to understand this. therefore, higher education management and the public/prospective students need to understand the role of social media as a communication platform that can significantly impact the acquisition of new students and the motivation of students to learn. to measure the use of smm in higher education management, this study provides several questionnaire statements, such as content creation, content sharing, connectivity, and communication building indicators. for instance: a. adjusting the appearance of content to students and prospective students' preferences as part of the millennial generation. b. choose the type of social media that has a more extensive network. c. provide open space for content comments, etc. this study shows that everything presented cannot strengthen the influence of ic or umi on os. several possibilities cause smm not to moderate ic and umi's impact on the organisation's sustainability as ng has stated. there is still literature on differences in attitudes towards accepting or rejecting information between generations, and some experts argue that these differences are not meaningful. generation x, y, or even z have almost the same way to digest information. thus, the information presented through the smm should not have differences in perception between generations, especially if it relates to the millennial generation's decision to choose campus as a place to gain knowledge. prospective students are still very dependent on their parents' attitude to digesting information. the study results show that the information provided by private universities in social media is likely to be viewed differently by students and their parents as the primary decision-makers in the selection of campuses. on the other hand, the strategic steps that organisations must take to get the most out of their internet marketing activities. if an organisation does not feel that it has a positive impact on its posts, likely, the organisation does not have a specific internet marketing strategy. this opinion is consistent with states that organisations that can develop social media marketing strategies well will impact income growth, while those that do not have a good marketing strategy will not experience an increase in income. if the opinions of these experts are related to the results of this study, it can be explained why smm does not reduce the impact of ic and umi on sustainability, namely: a. it is possible that the information presented „only‟ represents students' needs or prospective students as a millennial generation without paying attention to the perceptions of parents who (maybe) do not understand the marketing of social media. b. private universities do not have a specific strategy for formulating marketing concepts for social media. what is being done by private universities can only follow the current (current) but does not have a clear idea of building sustainability. iv. conclusion based on the research problem in this study regarding how knowledge-based variables in the sustainability of private universities in east java, the results show that social media marketing does not moderate the influence of intellectual capital on the sustainability of private universities in east java. social media marketing does not moderate the influence of university managerial intelligence on the sustainability of private universities in east java. references acar, w., & polin, b. (2015). the ascent of resource-based theory as constructive rational-behavioral integration for looking inward and outwardle information : international journal of commerce and management, 25(4), 603–626. acedo, f. j., barroso, c., & galan, j. l. (2006). the resource-based theory: dissemination and main trends. strategic management journal, 27(7), 621–636. https://doi.org/10.1002/smj.532 adams, c. (2013). sustainability reporting and performance management in universities challenges and benefit. sustainability accounting, management and policy journal, 4(3), 384–392. akonkwa, d. b. m. (2009). is market orientation a relevant strategy for higher education institutions?: context analysis and research agenda. international journal of quality and service sciences, 1(3), 311–333. https://doi.org/10.1108/175666909110 04230 andreou, a., & bontis, n. (2007). a model for resource allocation using operational knowledge assets. the learning organization, 14(4), 345– 374. https://doi.org/10.1108/096964707107 49272 app, s., & büttgen, m. (2016). lasting footprints of the employer brand: can sustainable hrm lead to brand commitment? employee relations, 38(5), 703–723. https://doi.org/10.1108/er-06-20150122 assimakopoulos, c., antoniadis, i., kayas, o. g., & dvizac, d. (2017). effective social media marketing strategy: facebook as an opportunity for universities. international journal of retail & distribution management, 45(5), 532–549. https://doi.org/10.1108/ijrdm-112016-0211 barclay, r. o., & murray, p. c. (2000). what is knowledge management? knowledge praxis, 1–10. https://doi.org/10.1108/014351299102 91175 bondarouk, t., ruël, h., axinia, e., & arama, r. (2013). what is the future of employer branding through social media? results of the delphi study into the perceptions of hr professionals and academics. social media in human resources management, 23–57. https://doi.org/10.1108/s18776361(2013)0000012019 bontis, n., dragonetti, n., jacobsen, k., & ross, g. (1999). the knowledge toolbox: manage intangible available to measure and a review of the tools resources. european management journal, 17 (4)(4), 391–402. bornemann, m., & wiedenhofer, r. (2014). intellectual capital in education: a value chain perspective. journal of intellectual capital, 15(3), 451–470. https://doi.org/10.1108/jic-05-20140060 ceulemans, k., lozano, r., & alonsoalmeida, m. del m. (2015). sustainability reporting in higher education: interconnecting the reporting process and organisational change management for sustainability. sustainability (switzerland), 7(7), 8881–8903. https://doi.org/10.3390/su7078881 cheong, r. k. f., & tsui, e. (2011). from skills and competencies to outcomebased collaborative work: tracking a decade‟s development of personal knowledge management (pkm) models. knowledge and process management, 18(3), 175–193. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 62 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java https://doi.org/10.1002/kpm.380 coleman, s. (2007). the role of human and financial capital in the profitability and growth of womenowned small firms. journal of small business management, 45(3), 303– 319. https://doi.org/doi: 10.1111/j.1540-627x.2007.00214.x david, f. r., & david, f. r. (2016). manajemen strategik suatu pendekatan keunggulan bersaing. salemba empat. dmochowski, j. e., garofalo, d., fisher, s., greene, a., & gambogi, d. (2016). integrating sustainability across the university curriculum. international journal of sustainability in higher education, 17(5). dumay, j. (2009). reflective discourse about intellectual capital: research and practice. journal of intellectual capital, 10(4), 489–503. https://doi.org/10.1108/146919309109 96607 dumay, j., & guthrie, j. (2012). ic and strategy as practice. international journal of knowledge and systems science, 3(4), 28–37. https://doi.org/10.4018/jkss.20121001 03 dutot, v., galvez, e. l., & versailles, d. w. (2016). csr communications strategies through social media and influence on e-reputation: an exploratory study. management decision, 54(2), 363–389. https://doi.org/10.1108/md-01-20150015 earl, m. (2001). km strategy taxonomy.pdf. journal of management information systems, 18(1), 215–233. fatoki, o. (2011). the impact of human, social and financial capital on the performance of small and mediumsized enterprises (smes) in south africa. journal of social sciences, 29(3), 193–204. https://doi.org/10.1080/09718923.201 1.11892970 fonseca, a., macdonald, a., dandy, e., & valenti, p. (2011). the state of sustainability reporting at canadian universities. international journal of sustainability in higher education, 12(1), 22–40. https://doi.org/10.1108/146763711110 98285 hamid, s., taha, m., sulaiman, i. h., anwar, r. m., & norman, a. a. (2017). social media for environmental sustainability awareness in higher education. international journal of sustainability in higher education, 18(4). https://doi.org/10.1108/146763713113 12905 indrajit, r. e. (2011). peranan teknologi informasi pada perguruan tinggi. aptikom. https://doi.org/10.1017/cbo97811074 15324.004 indrasari, m, & syamsudin, n. (2017). the influence of learning motivation, teaching methods, education facilities of students achievement. proceeding 14th adri 2017, 541. indrasari, m, syamsudin, n., purnomo, b., & yunus, e. (2018). pengaruh budaya organisasi, lingkungan kerja, gaya kepemimpinan terhadap kepuasan kerja serta dampaknya terhadap kinerja dosen. akademika jurnal manajemen, akuntansi dan bisnis, 16(1), 51–59. indrasari, meithiana. (2017). the effect of organizational culture, environmental work, leadership style on the job satisfaction and its impact on the performance of teaching in state community academy bojonegoro. sinergi: jurnal ilmiah ilmu manajemen, 7(1). indrasari, meithiana, newcombe, p., eliyana, a., & yunus, e. (2015). the influence of academic climate and individual creativity on lecturer competence in private university at surabaya indonesia. international journal of business and management, 10(8), 127. indrasari, meithiana, syamsudin, n., purnomo, r., & yunus, e. (2019). compensation, organizational communication, and career path as determinants of employee performance improvement. humanities & social sciences reviews, 7(4), 956–961. jose, s., & chacko, j. (2017). building a sustainable higher education sector in the uae. international journal of educational management, 31(6), 752– 765. katrinli, a., gunay, g., celikdemir, d. z., & alpbaz, s. p. (2017). international journal of sustainability in higher education article information : international journal of sustainability in higher education, 18(3). https://doi.org/10.1108/146763713113 12905 khan, r. h. (2013). marketing education online: a case study of new zealand higher education institutions. procedia social and behavioral sciences, 103, 637–646. https://doi.org/10.1016/j.sbspro.2013.1 0.382 kor, y. y., & mahoney, j. t. (2004). edith penrose‟s (1959) contributions to the resource-based view of strategic management. journal of management studies, 41(1), 183–191. https://doi.org/10.1111/j.14676486.2004.00427.x lopatta, k., & jaeschke, r. (2014). sustainability reporting at german and austrian universities. int. j. education economics and development, 5(1), 66–90. lozano, r. (2011). the state of sustainability reporting in universities. international journal of sustainability in higher education, 12(1), 67–78. https://doi.org/10.1108/146763711110 98311 lyapina, i., sotnikova, e., lebedeva, o., makarova, t., & skvortsova, n. (2019). smart technologies: perspectives of usage in higher education. international journal of educational management, 33(3), 454– 461. https://doi.org/10.1108/ijem-082018-0257 marr, b., gupta, o., pike, s., & roos, g. (2003). intellectual capital and knowledge management effectiveness. management decision, 41(8), 771– 781. https://doi.org/10.1108/002517403104 96288 massaro, m., dumay, j., garlatti, a., & dal mas, f. (2018). practitioners‟ views on intellectual capital and sustainability: from a performancebased to a worth-based perspective. journal of intellectual capital, 19(2), 367–386. https://doi.org/10.1108/jic02-2017-0033 merrill, n. (2011). social media for social research: applications for higher education communications. higher education administration with social media, 25–48. https://doi.org/10.1108/s20449968(2011)0000002005 moore, m. (2012). interactive media usage among millennial consumers. journal of consumer marketing, 29(6), 436– 444. https://doi.org/10.1108/073637612112 59241 nawaz, t., & haniffa, r. (2017). determinants of financial performance of islamic banks: an intellectual capital perspective. journal of islamic accounting and business research, 8(2), 130–142. https://doi.org/10.1108/jiabr-062016-0071 o‟shannassy, t. (2008). sustainable competitive advantage or temporary competitive advantage: improving understanding of an important strategy construct. journal of strategy and management, 1(2), 168–180. https://doi.org/10.1108/175542508109 26357 pedrini, m. p. (2007). human capital sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 63siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java https://doi.org/10.1002/kpm.380 coleman, s. (2007). the role of human and financial capital in the profitability and growth of womenowned small firms. journal of small business management, 45(3), 303– 319. https://doi.org/doi: 10.1111/j.1540-627x.2007.00214.x david, f. r., & david, f. r. (2016). manajemen strategik suatu pendekatan keunggulan bersaing. salemba empat. dmochowski, j. e., garofalo, d., fisher, s., greene, a., & gambogi, d. (2016). integrating sustainability across the university curriculum. international journal of sustainability in higher education, 17(5). dumay, j. (2009). reflective discourse about intellectual capital: research and practice. journal of intellectual capital, 10(4), 489–503. https://doi.org/10.1108/146919309109 96607 dumay, j., & guthrie, j. (2012). ic and strategy as practice. international journal of knowledge and systems science, 3(4), 28–37. https://doi.org/10.4018/jkss.20121001 03 dutot, v., galvez, e. l., & versailles, d. w. (2016). csr communications strategies through social media and influence on e-reputation: an exploratory study. management decision, 54(2), 363–389. https://doi.org/10.1108/md-01-20150015 earl, m. (2001). km strategy taxonomy.pdf. journal of management information systems, 18(1), 215–233. fatoki, o. (2011). the impact of human, social and financial capital on the performance of small and mediumsized enterprises (smes) in south africa. journal of social sciences, 29(3), 193–204. https://doi.org/10.1080/09718923.201 1.11892970 fonseca, a., macdonald, a., dandy, e., & valenti, p. (2011). the state of sustainability reporting at canadian universities. international journal of sustainability in higher education, 12(1), 22–40. https://doi.org/10.1108/146763711110 98285 hamid, s., taha, m., sulaiman, i. h., anwar, r. m., & norman, a. a. (2017). social media for environmental sustainability awareness in higher education. international journal of sustainability in higher education, 18(4). https://doi.org/10.1108/146763713113 12905 indrajit, r. e. (2011). peranan teknologi informasi pada perguruan tinggi. aptikom. https://doi.org/10.1017/cbo97811074 15324.004 indrasari, m, & syamsudin, n. (2017). the influence of learning motivation, teaching methods, education facilities of students achievement. proceeding 14th adri 2017, 541. indrasari, m, syamsudin, n., purnomo, b., & yunus, e. (2018). pengaruh budaya organisasi, lingkungan kerja, gaya kepemimpinan terhadap kepuasan kerja serta dampaknya terhadap kinerja dosen. akademika jurnal manajemen, akuntansi dan bisnis, 16(1), 51–59. indrasari, meithiana. 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(2007). human capital sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 64 siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java convergences in intellectual capital and sustainability reports. journal of intellectual capital, 8(2), 346–366. https://doi.org/10.1108/146919307107 42880 rambaud, a., & richard, j. (2015). the “triple depreciation line” instead of the “triple bottom line”: towards a genuine integrated reporting. critical perspectives on accounting, 33, 92– 116. https://doi.org/10.1016/j.cpa.2015.01.0 12 sanusi, z. a., & khelghat-doost, h. (2008). regional centre of expertise as transformational platform for sustainability: a case study of universiti sains malaysia, penang. international journal of sustainability in higher education, 9(4), 487–497. https://doi.org/10.1108/146763708109 05580 sekaran, u. (2003). research methods for business: a skill-building approach (4th ed.). john wiley & sons. sigalas, c. (2015). competitive advantage: the known unknown concept. management decision, 53(9), 2004– 2016. https://doi.org/10.1108/md-052015-0185 sizer, j. (2001). research and the knowledge age. tertiary education and management, 7(3), 227–242. https://doi.org/10.1080/13583883.200 1.9967055 sternberg, r. (1997). managerial intelligence: why iq isn‟t enough. journal of management, 23(3), 475– 493. stojanovic, i., andreu, l., & curras-perez, r. (2018). effects of the intensity of use of social media on brand equity: an empirical study in a tourist destination. european journal of management and business economics, 27(1), 83–100. https://doi.org/10.1108/ejmbe-112017-0049 susilo, d, prabowo, t., & putranto, t. (2019). communicating secure based feeling: content analysis on indonesian police official account. international journal of engineering and advanced technology. https://doi.org/10.35940/ijeat.f8377.08 8619 susilo, daniel, & putranto, t. d. (2018). indonesian youth on social media: study on content analysis. https://doi.org/10.2991/sshr17.2018.15 teodorescu, d. (2006). institutional researchers as knowledge managers in universities: envisioning new roles for the ir profession. tertiary education and management, 12(1), 75–88. https://doi.org/10.1007/s11233-0054069-0 todericiu, r., & şerban, a. (2015). intellectual capital and its relationship with universities. procedia economics and finance, 27(15), 713–717. https://doi.org/10.1016/s22125671(15)01052-7 tung, k. (2018). memahami knowledge management. penerbit indeks. vrontis, d., el nemar, s., ouwaida, a., & shams, s. m. r. (2018). the impact of social media on international student recruitment: the case of lebanon. journal of international education in business, 11(1), 79–103. https://doi.org/10.1108/jieb-05-20170020 wernerfelt, b. (1984). a resource-based view of the firm. strategic management journal, 5, 171–180. https://doi.org/10.1002/smj.425005020 7 wiig, k. m. (1997). integrating intellectual capital and knowledge management. long range planning, 30(3). yunus, e., susilo, d., riyadi, s., indrasari, m., & putranto, t. (2019). the effectiveness marketing strategy for ride sharing transportation: intersecting social media, technology, and innovation. entrepreneurship and sustainability issues, 7(2), 1424–1434. zhou, a. z., & fink, d. (2003). the intellectual capital web:a systematic linking of intellectual capital and knowledge management. journal of intellectual capital, 4(1), 34–48. https://doi.org/10.1108/146919303104 55379 sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 65siti istikhoroh1), moeljadi2), made sudarma3), siti aisjah4) knowledge-based variables in the sustainability of private universities in east java convergences in intellectual capital and sustainability reports. journal of intellectual capital, 8(2), 346–366. https://doi.org/10.1108/146919307107 42880 rambaud, a., & richard, j. (2015). the “triple depreciation line” instead of the “triple bottom line”: towards a genuine integrated reporting. critical perspectives on accounting, 33, 92– 116. https://doi.org/10.1016/j.cpa.2015.01.0 12 sanusi, z. a., & khelghat-doost, h. (2008). regional centre of expertise as transformational platform for sustainability: a case study of universiti sains malaysia, penang. international journal of sustainability in higher education, 9(4), 487–497. https://doi.org/10.1108/146763708109 05580 sekaran, u. (2003). research methods for business: a skill-building approach (4th ed.). john wiley & sons. sigalas, c. (2015). competitive advantage: the known unknown concept. management decision, 53(9), 2004– 2016. https://doi.org/10.1108/md-052015-0185 sizer, j. (2001). research and the knowledge age. tertiary education and management, 7(3), 227–242. https://doi.org/10.1080/13583883.200 1.9967055 sternberg, r. (1997). managerial intelligence: why iq isn‟t enough. journal of management, 23(3), 475– 493. stojanovic, i., andreu, l., & curras-perez, r. (2018). effects of the intensity of use of social media on brand equity: an empirical study in a tourist destination. european journal of management and business economics, 27(1), 83–100. https://doi.org/10.1108/ejmbe-112017-0049 susilo, d, prabowo, t., & putranto, t. (2019). communicating secure based feeling: content analysis on indonesian police official account. international journal of engineering and advanced technology. https://doi.org/10.35940/ijeat.f8377.08 8619 susilo, daniel, & putranto, t. d. (2018). indonesian youth on social media: study on content analysis. https://doi.org/10.2991/sshr17.2018.15 teodorescu, d. (2006). institutional researchers as knowledge managers in universities: envisioning new roles for the ir profession. tertiary education and management, 12(1), 75–88. https://doi.org/10.1007/s11233-0054069-0 todericiu, r., & şerban, a. (2015). intellectual capital and its relationship with universities. procedia economics and finance, 27(15), 713–717. https://doi.org/10.1016/s22125671(15)01052-7 tung, k. (2018). memahami knowledge management. penerbit indeks. vrontis, d., el nemar, s., ouwaida, a., & shams, s. m. r. (2018). the impact of social media on international student recruitment: the case of lebanon. journal of international education in business, 11(1), 79–103. https://doi.org/10.1108/jieb-05-20170020 wernerfelt, b. (1984). a resource-based view of the firm. strategic management journal, 5, 171–180. https://doi.org/10.1002/smj.425005020 7 wiig, k. m. (1997). integrating intellectual capital and knowledge management. long range planning, 30(3). yunus, e., susilo, d., riyadi, s., indrasari, m., & putranto, t. (2019). the effectiveness marketing strategy for ride sharing transportation: intersecting social media, technology, and innovation. entrepreneurship and sustainability issues, 7(2), 1424–1434. zhou, a. z., & fink, d. (2003). the intellectual capital web:a systematic linking of intellectual capital and knowledge management. journal of intellectual capital, 4(1), 34–48. https://doi.org/10.1108/146919303104 55379 sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 1vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty the influence of the dare to be bare campaign on brand image on instagram @raikubeauty vanisha octaviana1, daniel susilo2, mateo jose a. vidal3 1,2faculty of communication, multimedia nusantara university jl. boulevard, gading serpong, indonesia 3loyola university andalusia, spain daniel.susilo@umn.ac.id abstract a woman's beauty comes from within, not from the outside. raiku beauty is able to establish itself amid its long-established beauty product competitors, despite its youth. through @raikubeauty, raiku beauty uses instagram to transmit messages and communicate a product in order to establish a brand image. the goal of this research was to determine whether there is an effect of @raikubeauty instagram social media content on the dare to be bare campaign on the image raiku brand. quantitative explanatory research is used, including data collection techniques in the form of surveys. the population consisted of @raikubeauty followers, with a sample size of 395 responses calculated using the taro yamane formula, and the hypothesis was tested using simple linear regression. the findings of hypothesis testing suggest that social media content on instagram regarding the campaign dare to be bare has a substantial effect on brand image by 60.2 percent. this suggests that the dimensions of campaign-related social media material have an impact on brand image. keywords: brand image; instagram; social media; raiku beauty. i. introduction the types of beauty products that are most uploaded on instagram are lipsticks of 29.67 million and serums of 4.96 million. instagram social media is a place for entrepreneurs to sell their products (digimind.id, 2020). social media is currently considered to be the most effective way to convey messages about products or promotions to the public. currently there are many competitors in the beauty sector, but the thing that distinguishes a brand from other brands is based on the image of a brand from each product (effendy, 2007). social media has evolved into a key platform for a business or company to communicate with possible responses and respondents; it is no longer only for personal interests (daniel susilo, 2021). brand image is perceived as a brand that is reflected by a brand itself in the memory of a consumer seeing the brand (kotler & keller, 2016). one of the things in forming a brand image in the eyes of the public is a marketing strategy that makes people's hearts touch. one way is to create a campaign with all planned communication actions aimed at creating a certain influence on the majority of the audience or the public which is carried out continuously over a certain period of time (mukarom & laksana, 2015). marketing has been more effective as a result of social media, technology, and innovation (yunus et al., 2019). @raikubeauty is a newcomer local skin care that was founded in 2018. raiku tries to show its existence among competitors. raiku is a brand that has a brand image for indonesian women, namely that every woman in indonesia is beautiful regardless of existing beauty standards because every woman has unique characteristics. this was conveyed through the raiku campaign "dare to be bare" by not using makeup and beauty filters but only using products from raiku. figure 1 below is an example of raiku beauty's instagram feeds. without cosmetics, most indonesian women are anxious about their appearance (octaviana & susilo, 2021). raiku beauty is a local beauty brand that sells various kinds of skincare products such as serum, moisturizer, essence, sunblock, lip cream, and powder. the price set is also very sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 2 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty affordable, with a price range of rp. 35,000 to rp. 100,000. raiku's owner, lidia k santosa, is an indonesian woman who has a strong character but doesn't have the opportunity to appear as she should, therefore raiku beauty is here to give voice to all indonesian women. raiku is here to inspire consumers who use raiku products with the existing philosophy. the owner really wants raiku's presence in the community to encourage indonesian women to dare to appear as they are, after experiencing the benefits of their products. this is supported by the contribution of social media technology, instagram considering raiku beauty has similar competitors. raiku beauty is able to see opportunities and apply its business strategies digitally as well as in collaboration with other e-commerce. online commerce is becoming more popular and easy to utilize (indrasari et al., 2019);(asmoro et al., 2020). to reach a wider range of consumers with social media and official websites (websites). raiku beauty has other social media such as facebook and websites, but this time the discussion is focused on the instagram social media @raikubeauty for the 'dare to be bare' campaign which was held from september 2-14. figure 1. raiku beauty instagram feeds raiku is a local indonesian brand that creates a campaign with the theme that beauty in indonesian women is not based on skin colour, but based on the unique characteristics of each individual. raiku's social media content is in accordance with its slogan, 'raiku simple beauty'. starting from a simple content idea by showing a model with different skin colors and a clean appearance or using a white tone, the models in raiku's instagram content always look bare-faced, this creates recognition for raiku's followers. the strength of a brand can be generated through better revenue and profit performance for the company (kotler & keller, 2016). therefore, a product must be consistent with maintaining a brand image. as a result of technical developments, a strategic change from traditional to online has occurred (susilo et al., 2021). various instagram features can be used for business people, such as features that can turn personal accounts into business accounts on social media into a means of communication, delivery, collaboration, and online development among interconnected personal, community, and organizational networks that are enhanced through technological capabilities. and mobility (tuten, 2020). raiku's dare to be bare campaign has challenged the public that a woman must be free from insecurity. the campaign, which is carried out through instagram tv, stories, and feeds, invites audiences to upload photos to instagram social media without using makeup, including stories of instagram users' experiences about insecurity. the followers of the #raikudaretobebare campaign who have the most interesting story experiences will later be written on the raiku website article. instagram is a social media platform for marketing purposes, campaigns, and product launches carried out by raiku. social media is a set of platforms and technologies that allow multiple people to interact easily (blanchard & monnin, 2015). many considerations will be made by instagram users to access various kinds of information. in instagram content has features such as feeds, stories, and igtv. one of the variables that influences the establishment of trust in customers in making decisions is perceived quality, which is the consumer's perception of the quality of products or services obtained (alhaddad, 2015). when it comes to acquiring a product, consumers who are alert and discriminating will be offered with a choice of possibilities (raditya et al., 2019). in maintaining consistency and maintaining a positive image, raiku always creates campaigns that are able to touch the hearts of the audience, underlying communication activities aimed at influencing others so that the recipients of the message have insight, attitudes, and behaviours that are in accordance with information disseminators (cangara, 2016), so that campaign 'dare to be bare' means that all women are beautiful as they are without having to use makeup. the results of maintaining the consistency of raiku's positive image can be seen from the good response of instagram users to the presence of the instagram account @raikubeauty, which is shown by the number of 30k followers on september 4, 2020. each uploaded post gets around 300-700 likes and 30k views for videos. the followers of this account are very active in providing comments. the social media accounts used by raiku are used to create a positive image, raiku itself is a local indonesian skin care brand that is able to compete with other competitors by creating a brand image that can be accepted by all groups in indonesia. reporting from blibli. raiku wants to inspire indonesian women with a philosophy that is made so that raiku wants more indonesian women to try raiku beauty products. this becomes interesting to study, for a local skin care product that is not yet known by the public, it also uses instagram as a communication tool and is useful in building a brand image in the eyes of the public. can social media users form a raiku brand image based on the #raikudaretobebare campaign carried out? therefore, the topic of this research is interesting to review, due to a local indonesian skin care product that is able to compete with its competitors by conducting campaign activities to form a brand image, this is still rarely found in beauty care products. therefore, this research wants to know the impact of raiku's instagram social media content on raiku's brand image. is there an influence between instagram's social media content on raiku's brand image from observers of followers. overall, the background exposure shows that raiku beauty as a new local brand in the field of beauty care is able to take advantage of opportunities to market and instill a positive brand image through instagram social media content. therefore, this research focuses on the campaign content used in his instagram account with the aim of forming a positive brand image for the audience or followers of @raikubeauty. based on the above background, this study aims to determine whether there is an effect of @raikubeauty instagram social media content on the dare to be bare campaign on the image raiku brand? ii. methodology the research uses a quantitative approach. quantitative research is research that explains or describes this problem that is not very relevant to the depth of the data or analysis, but rather to the breadth of the data, so that the results of the research or data are considered representative for the entire population (kriyantono, 2014). the nature of this research is explanatory which aims to connect two or more research variables or concepts and look for causal relationships (kriyantono, 2007). the paradigm in this study is the paradigm of positivism. the positivism paradigm is sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 3vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty affordable, with a price range of rp. 35,000 to rp. 100,000. raiku's owner, lidia k santosa, is an indonesian woman who has a strong character but doesn't have the opportunity to appear as she should, therefore raiku beauty is here to give voice to all indonesian women. raiku is here to inspire consumers who use raiku products with the existing philosophy. the owner really wants raiku's presence in the community to encourage indonesian women to dare to appear as they are, after experiencing the benefits of their products. this is supported by the contribution of social media technology, instagram considering raiku beauty has similar competitors. raiku beauty is able to see opportunities and apply its business strategies digitally as well as in collaboration with other e-commerce. online commerce is becoming more popular and easy to utilize (indrasari et al., 2019);(asmoro et al., 2020). to reach a wider range of consumers with social media and official websites (websites). raiku beauty has other social media such as facebook and websites, but this time the discussion is focused on the instagram social media @raikubeauty for the 'dare to be bare' campaign which was held from september 2-14. figure 1. raiku beauty instagram feeds raiku is a local indonesian brand that creates a campaign with the theme that beauty in indonesian women is not based on skin colour, but based on the unique characteristics of each individual. raiku's social media content is in accordance with its slogan, 'raiku simple beauty'. starting from a simple content idea by showing a model with different skin colors and a clean appearance or using a white tone, the models in raiku's instagram content always look bare-faced, this creates recognition for raiku's followers. the strength of a brand can be generated through better revenue and profit performance for the company (kotler & keller, 2016). therefore, a product must be consistent with maintaining a brand image. as a result of technical developments, a strategic change from traditional to online has occurred (susilo et al., 2021). various instagram features can be used for business people, such as features that can turn personal accounts into business accounts on social media into a means of communication, delivery, collaboration, and online development among interconnected personal, community, and organizational networks that are enhanced through technological capabilities. and mobility (tuten, 2020). raiku's dare to be bare campaign has challenged the public that a woman must be free from insecurity. the campaign, which is carried out through instagram tv, stories, and feeds, invites audiences to upload photos to instagram social media without using makeup, including stories of instagram users' experiences about insecurity. the followers of the #raikudaretobebare campaign who have the most interesting story experiences will later be written on the raiku website article. instagram is a social media platform for marketing purposes, campaigns, and product launches carried out by raiku. social media is a set of platforms and technologies that allow multiple people to interact easily (blanchard & monnin, 2015). many considerations will be made by instagram users to access various kinds of information. in instagram content has features such as feeds, stories, and igtv. one of the variables that influences the establishment of trust in customers in making decisions is perceived quality, which is the consumer's perception of the quality of products or services obtained (alhaddad, 2015). when it comes to acquiring a product, consumers who are alert and discriminating will be offered with a choice of possibilities (raditya et al., 2019). in maintaining consistency and maintaining a positive image, raiku always creates campaigns that are able to touch the hearts of the audience, underlying communication activities aimed at influencing others so that the recipients of the message have insight, attitudes, and behaviours that are in accordance with information disseminators (cangara, 2016), so that campaign 'dare to be bare' means that all women are beautiful as they are without having to use makeup. the results of maintaining the consistency of raiku's positive image can be seen from the good response of instagram users to the presence of the instagram account @raikubeauty, which is shown by the number of 30k followers on september 4, 2020. each uploaded post gets around 300-700 likes and 30k views for videos. the followers of this account are very active in providing comments. the social media accounts used by raiku are used to create a positive image, raiku itself is a local indonesian skin care brand that is able to compete with other competitors by creating a brand image that can be accepted by all groups in indonesia. reporting from blibli. raiku wants to inspire indonesian women with a philosophy that is made so that raiku wants more indonesian women to try raiku beauty products. this becomes interesting to study, for a local skin care product that is not yet known by the public, it also uses instagram as a communication tool and is useful in building a brand image in the eyes of the public. can social media users form a raiku brand image based on the #raikudaretobebare campaign carried out? therefore, the topic of this research is interesting to review, due to a local indonesian skin care product that is able to compete with its competitors by conducting campaign activities to form a brand image, this is still rarely found in beauty care products. therefore, this research wants to know the impact of raiku's instagram social media content on raiku's brand image. is there an influence between instagram's social media content on raiku's brand image from observers of followers. overall, the background exposure shows that raiku beauty as a new local brand in the field of beauty care is able to take advantage of opportunities to market and instill a positive brand image through instagram social media content. therefore, this research focuses on the campaign content used in his instagram account with the aim of forming a positive brand image for the audience or followers of @raikubeauty. based on the above background, this study aims to determine whether there is an effect of @raikubeauty instagram social media content on the dare to be bare campaign on the image raiku brand? ii. methodology the research uses a quantitative approach. quantitative research is research that explains or describes this problem that is not very relevant to the depth of the data or analysis, but rather to the breadth of the data, so that the results of the research or data are considered representative for the entire population (kriyantono, 2014). the nature of this research is explanatory which aims to connect two or more research variables or concepts and look for causal relationships (kriyantono, 2007). the paradigm in this study is the paradigm of positivism. the positivism paradigm is sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 4 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty a paradigm that combines deductive logic of causal confirmation of activities carried out by humans in general, which is used to predict patterns in these general behaviours (sugiyono, 2018). the method used in this research is survey method. definition of survey method is a research method that uses questionnaires and planned interviews to collect data. quantitative research seeks to explain the views, tendencies, and attitudes of the research population represented by a predetermined research sample (saebani, 2017). the purpose of this research using the survey method is to obtain some information about respondents who are considered representative (kriyantono, 2014). the researcher chose to use a survey method to find out whether there was an influence between the instagram social media content @raikubeauty (independent variable) about the dare to be bare campaign on raiku's brand image (dependent variable). surveys in quantitative research begin by collecting questionnaire data. questionnaires can be made based on research variables that are processed into dimensions and indicators so that they become a list of questions on the questionnaire. the data was obtained after distributing a questionnaire containing a set of questions to instagram followers @raikubeauty. population population is a generalization area consisting of objects / topics with certain qualities and characteristics, which are determined by researchers to be studied and then concluded. therefore, the population is not only humans, but also other natural objects. the population is not only the number of objects or research topics, but includes all the characteristics or properties possessed by the subject or object (sugiyono, 2018). meanwhile, the population is not only the number of research topics/objects of research, but also all characteristics of topics/objects of research (hikmat, 2011). figure 2. instagram account @raikubeauty sample the sample is a part of the size and a characteristic of the population, conclusions from all the sizes and characteristics of the sample will be applied to the population. therefore, the sample obtained from the population must be a truly representative sample. there are various sampling techniques used to determine the sample to be used in the study. this technique is one of the techniques that includes based on selected audiences on the basis of certain criteria made in this study in accordance with the research objectives (kriyantono, 2014). here the researchers determine the criteria, as follows: 1. following the instagram account @raikubeauty 2. female gender 3. interested in beauty in the research proposal that will be studied will use simple random sampling to determine a sample from the population that has the same opportunity and is selected randomly. the total population is 30.1k followers @raikubeuty to determine the number of samples in this study using the taro yamane formula (hamidi, 2004), namely: information: n : number of samples n : total population d : error rate (5%) 1 : constant number based on the taro yamane formula (hamidi, 2004), the number of samples in this study were 395 respondents. data primary data is data obtained directly from the research location or the first data source from the research object (bungin, 2007). primary data is data obtained from data sources directly or directly from the field. sources of data can be in the form of questionnaires, interviews, or survey respondents or research objects. in content analysis, the main data is the exchange of learned content. this raw data includes raw data that must be reprocessed into meaningful information (kriyantono, 2014). the primary data collection techniques used in this study is questionnaire. the technique of collecting primary data using the method of distributing questionnaires, questionnaires or closed questionnaires is a way of collecting data derived from responses. all respondents went through a series of questions or written statements (sugiyono, 2018). the general form of the questionnaire consists of several parts, namely the introduction which contains instructions for filling out the questionnaire, the identity of the respondent such as: name, address, age, occupation, gender, personal identity, and others, then only enters the part of filling out the questionnaire (bungin, 2007). the type of questionnaire used is a closed questionnaire. closed questionnaire is a questionnaire with a different method in which the researcher provides alternative answers to respondents. secondary data and data sources are data obtained through a second (secondary) source of the required data. secondary data serves to help uncover data (bungin, 2007). secondary data collection techniques used in this study is literature review. through a literature study, a literature review is carried out in the form of research reference books and the results of similar research previously carried out by other parties. the goal is to get a theoretical basis for the problem to be studied. this theory is the basis of this research to understand well the problem that will be/is being researched in accordance with the scientific framework of thinking (sarwono, 2010). data measurement technique in this study, the data collection was carried out after the informants filled out a closed questionnaire based on indicators of the independent and dependent variables in the study. in this study, the likert scale measurement technique can be used to measure attitudes, opinions of individuals or groups towards a social phenomenon (neolaka, 2016). likert scale can also be used to display a person's opinion on a statement (neuman, 2013);(susilo & putranto, 2018);(susilo et al., 2019). neolaka explained that the likert scale answer format usually uses a score of 1-4, starting from strongly disagree to strongly agree. validity test valid is the result of something that shows the degree of accuracy between the actual data that occurs in the object and the data that has been obtained from this sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 the population that is the target of this research is a number of instagram followers @raikubeauty with the number of instagram followers on september 18, 2020 amounting to 30.1k. figure 2 below is an instagram account @raikubeauty. 5vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty a paradigm that combines deductive logic of causal confirmation of activities carried out by humans in general, which is used to predict patterns in these general behaviours (sugiyono, 2018). the method used in this research is survey method. definition of survey method is a research method that uses questionnaires and planned interviews to collect data. quantitative research seeks to explain the views, tendencies, and attitudes of the research population represented by a predetermined research sample (saebani, 2017). the purpose of this research using the survey method is to obtain some information about respondents who are considered representative (kriyantono, 2014). the researcher chose to use a survey method to find out whether there was an influence between the instagram social media content @raikubeauty (independent variable) about the dare to be bare campaign on raiku's brand image (dependent variable). surveys in quantitative research begin by collecting questionnaire data. questionnaires can be made based on research variables that are processed into dimensions and indicators so that they become a list of questions on the questionnaire. the data was obtained after distributing a questionnaire containing a set of questions to instagram followers @raikubeauty. population population is a generalization area consisting of objects / topics with certain qualities and characteristics, which are determined by researchers to be studied and then concluded. therefore, the population is not only humans, but also other natural objects. the population is not only the number of objects or research topics, but includes all the characteristics or properties possessed by the subject or object (sugiyono, 2018). meanwhile, the population is not only the number of research topics/objects of research, but also all characteristics of topics/objects of research (hikmat, 2011). the population that is the target of this research is a number of instagram followers @raikubeauty with the number of instagram followers on september 18, 2020 amounting to 30.1k. figure 2 below is an instagram account @raikubeauty. figure 2. instagram account @raikubeauty sample the sample is a part of the size and a characteristic of the population, conclusions from all the sizes and characteristics of the sample will be applied to the population. therefore, the sample obtained from the population must be a truly representative sample. there are various sampling techniques used to determine the sample to be used in the study. this technique is one of the techniques that includes based on selected audiences on the basis of certain criteria made in this study in accordance with the research objectives (kriyantono, 2014). here the researchers determine the criteria, as follows: 1. following the instagram account @raikubeauty 2. female gender 3. interested in beauty in the research proposal that will be studied will use simple random sampling to determine a sample from the population that has the same opportunity and is selected randomly. the total population is 30.1k followers @raikubeuty to determine the number of samples in this study using the taro yamane formula (hamidi, 2004), namely: information: n : number of samples n : total population d : error rate (5%) 1 : constant number based on the taro yamane formula (hamidi, 2004), the number of samples in this study were 395 respondents. data primary data is data obtained directly from the research location or the first data source from the research object (bungin, 2007). primary data is data obtained from data sources directly or directly from the field. sources of data can be in the form of questionnaires, interviews, or survey respondents or research objects. in content analysis, the main data is the exchange of learned content. this raw data includes raw data that must be reprocessed into meaningful information (kriyantono, 2014). the primary data collection techniques used in this study is questionnaire. the technique of collecting primary data using the method of distributing questionnaires, questionnaires or closed questionnaires is a way of collecting data derived from responses. all respondents went through a series of questions or written statements (sugiyono, 2018). the general form of the questionnaire consists of several parts, namely the introduction which contains instructions for filling out the questionnaire, the identity of the respondent such as: name, address, age, occupation, gender, personal identity, and others, then only enters the part of filling out the questionnaire (bungin, 2007). the type of questionnaire used is a closed questionnaire. closed questionnaire is a questionnaire with a different method in which the researcher provides alternative answers to respondents. secondary data and data sources are data obtained through a second (secondary) source of the required data. secondary data serves to help uncover data (bungin, 2007). secondary data collection techniques used in this study is literature review. through a literature study, a literature review is carried out in the form of research reference books and the results of similar research previously carried out by other parties. the goal is to get a theoretical basis for the problem to be studied. this theory is the basis of this research to understand well the problem that will be/is being researched in accordance with the scientific framework of thinking (sarwono, 2010). data measurement technique in this study, the data collection was carried out after the informants filled out a closed questionnaire based on indicators of the independent and dependent variables in the study. in this study, the likert scale measurement technique can be used to measure attitudes, opinions of individuals or groups towards a social phenomenon (neolaka, 2016). likert scale can also be used to display a person's opinion on a statement (neuman, 2013);(susilo & putranto, 2018);(susilo et al., 2019). neolaka explained that the likert scale answer format usually uses a score of 1-4, starting from strongly disagree to strongly agree. validity test valid is the result of something that shows the degree of accuracy between the actual data that occurs in the object and the data that has been obtained from this sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 6 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty research (sugiyono, 2018). a measuring instrument will be valid if it is done correctly in the sense of measuring what should be measured according to the needs in the study. the validity test shows that the measuring instrument can measure the data that it wants to measure. if there is a similarity between the data collected and the actual data that occurs in the object of research, then the results of the study are considered valid. the validity test was carried out to measure the statements in the questionnaire. if each item of the attached question can reveal the content to be measured by the questionnaire, then the questionnaire can be considered effective. this validity test can be done by calculating the correlation between each statement and the total score using the pearson's product moment correlation technique formula. this study uses validity testing carried out with the help of a computer device with spss 25 software through the correlated item-total pearson's product moment technique. in spss based on the formula: information: r = correlation coefficient n = number of samples y = depending variable x = free variable reliability test according to sugiyono (2018) reliability is the level of consistency or consistency of data within a certain time interval. reliability is also defined as characteristics related to accuracy, thoroughness, and consistency. as long as the results of the measurement of the subject are relatively the same in several measurements, as long as there is no change in the aspect of the subject being measured, it can be considered reliable. the relative meanings are the same or do not change, so there will be no small differences between measurements. in this study, cronbach's alpha reliability test was used, which is the most common test technique used to test the reliability of the questionnaire. reliability can be measured using the following formula: data analysis technique normality the first step is to analyse the data; it is necessary to test the normality of the data so that it can be seen that the resulting data is normally distributed. if the data produced is normal, then use parametric statistics, if not normally distributed then use nonparametric statistical data and test for normality using spss 25. correlation correlation analysis as a statistical method designed to measure the strength of the relationship between 2 variables (ghozali, 2016). this study uses the pearson correlation coefficient. pearson correlation coefficient statistical test is always used to measure the level of strength between the relationship between two metric variables. table 1 below is the result of the correlation coefficient value. table 1. correlation coefficient value coefficient value range description of relationship quality 0 – 199 extremely low coefficient value range description of relationship quality 200 – 399 low 400 – 599 medium 600 – 799 high 800 – 1.000 extremely high source: (sugiyono, 2018) linear regression the simple linear regression analysis technique in this study was used because it was based on a causal or functional relationship between one independent variable and the dependent variable (sugiyono, 2018). the simple linear regression test in this study aims to see whether or not there is an influence of "raiku's instagram social media content about the dare to be bare campaign" on the "brand image". the formula contained in the simple linear regression test: y= α+bx information: y = dependent variable x = independent variable a = constant value b = regression coefficient this study will be analysed by distributing questionnaires to 395 respondents using spss version 25. the results of the processed data will determine the influence of how much influence the raiku instagram social media content variable on the dare to be bare campaign has on brand image. iii. results and discussion data measurement validity test after the calculated r value is known, the value is then consulted with the r table (df = number of respondents (n)-2) with a 95% confidence level. if r count > r table then the item is considered valid, and vice versa if r count < r table then the item is considered invalid. the pearson correlation formula will be the basis for calculations in this validity test through the correlation of the score of each question item with the total score of the related variables. with a significance level (α=5%), the question item will be declared valid if the p-value (sig.) < significance level (α=5%). on the other hand, if the condition is p-value (sig.) significance level (α=5%). then the question item is declared invalid. in carrying out this validity and reliability test, the help of ibm spss statistics 25 software will be used. previously, 30 respondents have been collected in this test which will then be tested with an error tolerance level of 5% or 0.05. then, the pearson table r value for n = 30 is .0.361. so that only statements that have r count more than r table (r count > 0.361) are considered valid. the following is a tabulation of the results of the calculated r on the variables x and y. table 2 below is the result of the validity test of the social media content variables. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 7vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty research (sugiyono, 2018). a measuring instrument will be valid if it is done correctly in the sense of measuring what should be measured according to the needs in the study. the validity test shows that the measuring instrument can measure the data that it wants to measure. if there is a similarity between the data collected and the actual data that occurs in the object of research, then the results of the study are considered valid. the validity test was carried out to measure the statements in the questionnaire. if each item of the attached question can reveal the content to be measured by the questionnaire, then the questionnaire can be considered effective. this validity test can be done by calculating the correlation between each statement and the total score using the pearson's product moment correlation technique formula. this study uses validity testing carried out with the help of a computer device with spss 25 software through the correlated item-total pearson's product moment technique. in spss based on the formula: information: r = correlation coefficient n = number of samples y = depending variable x = free variable reliability test according to sugiyono (2018) reliability is the level of consistency or consistency of data within a certain time interval. reliability is also defined as characteristics related to accuracy, thoroughness, and consistency. as long as the results of the measurement of the subject are relatively the same in several measurements, as long as there is no change in the aspect of the subject being measured, it can be considered reliable. the relative meanings are the same or do not change, so there will be no small differences between measurements. in this study, cronbach's alpha reliability test was used, which is the most common test technique used to test the reliability of the questionnaire. reliability can be measured using the following formula: data analysis technique normality the first step is to analyse the data; it is necessary to test the normality of the data so that it can be seen that the resulting data is normally distributed. if the data produced is normal, then use parametric statistics, if not normally distributed then use nonparametric statistical data and test for normality using spss 25. correlation correlation analysis as a statistical method designed to measure the strength of the relationship between 2 variables (ghozali, 2016). this study uses the pearson correlation coefficient. pearson correlation coefficient statistical test is always used to measure the level of strength between the relationship between two metric variables. table 1 below is the result of the correlation coefficient value. table 1. correlation coefficient value coefficient value range description of relationship quality 0 – 199 extremely low coefficient value range description of relationship quality 200 – 399 low 400 – 599 medium 600 – 799 high 800 – 1.000 extremely high source: (sugiyono, 2018) linear regression the simple linear regression analysis technique in this study was used because it was based on a causal or functional relationship between one independent variable and the dependent variable (sugiyono, 2018). the simple linear regression test in this study aims to see whether or not there is an influence of "raiku's instagram social media content about the dare to be bare campaign" on the "brand image". the formula contained in the simple linear regression test: y= α+bx information: y = dependent variable x = independent variable a = constant value b = regression coefficient this study will be analysed by distributing questionnaires to 395 respondents using spss version 25. the results of the processed data will determine the influence of how much influence the raiku instagram social media content variable on the dare to be bare campaign has on brand image. iii. results and discussion data measurement validity test after the calculated r value is known, the value is then consulted with the r table (df = number of respondents (n)-2) with a 95% confidence level. if r count > r table then the item is considered valid, and vice versa if r count < r table then the item is considered invalid. the pearson correlation formula will be the basis for calculations in this validity test through the correlation of the score of each question item with the total score of the related variables. with a significance level (α=5%), the question item will be declared valid if the p-value (sig.) < significance level (α=5%). on the other hand, if the condition is p-value (sig.) significance level (α=5%). then the question item is declared invalid. in carrying out this validity and reliability test, the help of ibm spss statistics 25 software will be used. previously, 30 respondents have been collected in this test which will then be tested with an error tolerance level of 5% or 0.05. then, the pearson table r value for n = 30 is .0.361. so that only statements that have r count more than r table (r count > 0.361) are considered valid. the following is a tabulation of the results of the calculated r on the variables x and y. table 2 below is the result of the validity test of the social media content variables. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 8 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty table 2. validity test results of social media content variables (x) r table 0,361 question items pearson correlation value (r count) sig (0,05) information x1 0,630 0,000 valid x2 0,633 0,000 valid x3 0,561 0,001 valid x4 0,720 0,000 valid x5 0,650 0,000 valid x6 0,777 0,000 valid x7 0,817 0,000 valid x8 0,758 0,000 valid x9 0,747 0,000 valid x10 0,454 0,000 valid x11 0,731 0,000 valid x12 0,582 0,001 valid source: researcher process, 2021 based on the spss output and summary table 2 above, there are 12 questions on the social media content (x) variable, all of which have an r value of more than the r table that has been determined (r count > 0.361) with a significance level of 5% (0.05), it can be concluded that all questions that represent the social media content variable (x) are valid. table 3 below is the result of testing the validity of the brand image variable. table 3. results of brand image (y) variable validity test r table 0,361 question items pearson correlation value (r count) sig (0,05) information y1 0,656 0,000 valid y2 0,606 0,000 valid y3 0,636 0,000 valid y4 0,582 0,001 valid y5 0,711 0,000 valid y6 0,807 0,000 valid source: researcher process, 2021 based on the spss output and table 3, there are 6 questions on the brand image variable (y) which all have a calculated r value of more than the predetermined r table (r count > 0.361) with a significance level of 5% (0.05). in the summary above, it can be concluded that all questions that represent the brand image (y) variable are valid. reliability test table 4. reliability test results of social media content variables (x) source: researcher process, 2021 table 5. brand image variable reliability test results (y) source: researcher process, 2021 a variable can be declared reliable when it has a cronbach's alpha value > 0.7 which is the limit of a variable that can be said to be reliable. conversely, if the value of cronbach's alpha 0.7, it can be stated that the variable is still not reliable. tables 4 and 5 are the results of the reliability test of the variables x and y. the value of cronbach's alpha for social media content (x) and brand image (y) variables is 0.890 and 0.746, respectively, where the value is > 0.7 so it can be stated that the questionnaire used in this study is reliable. data analysis normality figure 3. histogram normality test results source: research processed data, 2021 figure 4. p-plot normality test results source: research processed data, 2021 this study also attaches the results of the normality test in the form of a histogram and also a p-plot which is located in figures 3 and 4. based on figure 3, it can be seen that the curve line that forms a bell in the middle so that it can be said that the tested data is normally distributed. then, in figure 4 shows the distribution of points on the p-plot graph in the same direction and still around the reference diagonal line. in addition, another way to see the normality of the data is with a histogram graph, where the curve lines form a bell (ghozali, 2016). thus, based on the results of the histogram and p-plot values, it can be concluded that the data collected has been normally distributed. correlation this study uses data analysis techniques in chapter three, namely the main requirement before testing the hypothesis is the correlation test. in this study, the researcher used the pearson correlation formula test technique with the asymptotic 2 tailed approach. in addition, another way to see if data is normal or not is with a histogram graph, where the curve lines form a bell (ghozali, 2016). the following table 6 correlation test results in this study: sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 9vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty table 2. validity test results of social media content variables (x) r table 0,361 question items pearson correlation value (r count) sig (0,05) information x1 0,630 0,000 valid x2 0,633 0,000 valid x3 0,561 0,001 valid x4 0,720 0,000 valid x5 0,650 0,000 valid x6 0,777 0,000 valid x7 0,817 0,000 valid x8 0,758 0,000 valid x9 0,747 0,000 valid x10 0,454 0,000 valid x11 0,731 0,000 valid x12 0,582 0,001 valid source: researcher process, 2021 based on the spss output and summary table 2 above, there are 12 questions on the social media content (x) variable, all of which have an r value of more than the r table that has been determined (r count > 0.361) with a significance level of 5% (0.05), it can be concluded that all questions that represent the social media content variable (x) are valid. table 3 below is the result of testing the validity of the brand image variable. table 3. results of brand image (y) variable validity test r table 0,361 question items pearson correlation value (r count) sig (0,05) information y1 0,656 0,000 valid y2 0,606 0,000 valid y3 0,636 0,000 valid y4 0,582 0,001 valid y5 0,711 0,000 valid y6 0,807 0,000 valid source: researcher process, 2021 based on the spss output and table 3, there are 6 questions on the brand image variable (y) which all have a calculated r value of more than the predetermined r table (r count > 0.361) with a significance level of 5% (0.05). in the summary above, it can be concluded that all questions that represent the brand image (y) variable are valid. reliability test table 4. reliability test results of social media content variables (x) source: researcher process, 2021 table 5. brand image variable reliability test results (y) source: researcher process, 2021 a variable can be declared reliable when it has a cronbach's alpha value > 0.7 which is the limit of a variable that can be said to be reliable. conversely, if the value of cronbach's alpha 0.7, it can be stated that the variable is still not reliable. tables 4 and 5 are the results of the reliability test of the variables x and y. the value of cronbach's alpha for social media content (x) and brand image (y) variables is 0.890 and 0.746, respectively, where the value is > 0.7 so it can be stated that the questionnaire used in this study is reliable. data analysis normality figure 3. histogram normality test results source: research processed data, 2021 figure 4. p-plot normality test results source: research processed data, 2021 this study also attaches the results of the normality test in the form of a histogram and also a p-plot which is located in figures 3 and 4. based on figure 3, it can be seen that the curve line that forms a bell in the middle so that it can be said that the tested data is normally distributed. then, in figure 4 shows the distribution of points on the p-plot graph in the same direction and still around the reference diagonal line. in addition, another way to see the normality of the data is with a histogram graph, where the curve lines form a bell (ghozali, 2016). thus, based on the results of the histogram and p-plot values, it can be concluded that the data collected has been normally distributed. correlation this study uses data analysis techniques in chapter three, namely the main requirement before testing the hypothesis is the correlation test. in this study, the researcher used the pearson correlation formula test technique with the asymptotic 2 tailed approach. in addition, another way to see if data is normal or not is with a histogram graph, where the curve lines form a bell (ghozali, 2016). the following table 6 correlation test results in this study: sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 10 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty table 6. correlation test results source: research processed data, 2021 based on table 6 above, it can be stated that the data is normally distributed, because the significant value of 395 respondents is 0.776. this shows that there is a high or strong positive relationship between variable x (social media content) and variable y (brand image). linear regression table 7. simple linear regression test source: research processed data, 2021 based on the data coefficients above, the statistical t test is used to test the significance of the regression coefficients which will also explain the predictive value of a study. based on the data above, the following regression equation can be formed: y= a+ bx y= 4.604 + 0.396x brand image= 4.641+0.395 social media content based on the regression equation above, conclusions can be drawn including: the constant value is 4,641 with the regression coefficient value for the instagram social media content variable, which is 0.396 with a significance value of 0.000. based on the results of point a, every one percent increase in the value of the instagram @raikubeauty social media content variable in the dare to be bare campaign (variable x) on brand image (variable y) will give an increase of 0.396 and if there is no addition to the variable x, then the variable y is constant. a positive (+) or unidirectional regression coefficient value indicates that there is a unidirectional influence between @raikubeauty's social media content variables about the dare to be bare campaign on brand image. table 8. r-square model test results summary source: research processed data, 2021 table 8 above explains the magnitude of the coefficient of determination. based on the results of the data above, the correlation relationship (r value) of 0.776 shows that the instagram @raikubeauty social media content as the independent variable has a strong correlation to the dependent variable brand image. then, the coefficient of determination (r square) is 0.602 or 60.2%. based on these data, it means that in this study, the instagram @raikubeauty social media content in the dare to be bare campaign has a large enough influence of 60.2% on brand image and variations of other variables that can influence and explain 39.8%. table 9. anova test source: research processed data, 2021 table 9 above shows the results of the anova table test with a calculated f value of 593,703 with a significance value of 0.000 which means that social media content (x) can predict brand image (y), because the significance value is less than 0.005 (sig. <0, 05). this study uses the ttest with the aim of knowing the results of the analysis of the independent variables have a significant effect on the dependent variable. test this hypothesis using simple linear regression. the following hypotheses are used in the t-test, including: table 10. hypothesis test no hypothesis testing t count sig. r square hypothesis 1 there is an influence of social media content on brand image 24.366 0,000 60,2% ha accepted source: research processed data, 2021 based on the data in table 10 above, it shows that the t count is 24,366 which when compared with the t table value (with a level of = 0.05; 395) and a sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 11vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty table 6. correlation test results source: research processed data, 2021 based on table 6 above, it can be stated that the data is normally distributed, because the significant value of 395 respondents is 0.776. this shows that there is a high or strong positive relationship between variable x (social media content) and variable y (brand image). linear regression table 7. simple linear regression test source: research processed data, 2021 based on the data coefficients above, the statistical t test is used to test the significance of the regression coefficients which will also explain the predictive value of a study. based on the data above, the following regression equation can be formed: y= a+ bx y= 4.604 + 0.396x brand image= 4.641+0.395 social media content based on the regression equation above, conclusions can be drawn including: the constant value is 4,641 with the regression coefficient value for the instagram social media content variable, which is 0.396 with a significance value of 0.000. based on the results of point a, every one percent increase in the value of the instagram @raikubeauty social media content variable in the dare to be bare campaign (variable x) on brand image (variable y) will give an increase of 0.396 and if there is no addition to the variable x, then the variable y is constant. a positive (+) or unidirectional regression coefficient value indicates that there is a unidirectional influence between @raikubeauty's social media content variables about the dare to be bare campaign on brand image. table 8. r-square model test results summary source: research processed data, 2021 table 8 above explains the magnitude of the coefficient of determination. based on the results of the data above, the correlation relationship (r value) of 0.776 shows that the instagram @raikubeauty social media content as the independent variable has a strong correlation to the dependent variable brand image. then, the coefficient of determination (r square) is 0.602 or 60.2%. based on these data, it means that in this study, the instagram @raikubeauty social media content in the dare to be bare campaign has a large enough influence of 60.2% on brand image and variations of other variables that can influence and explain 39.8%. table 9. anova test source: research processed data, 2021 table 9 above shows the results of the anova table test with a calculated f value of 593,703 with a significance value of 0.000 which means that social media content (x) can predict brand image (y), because the significance value is less than 0.005 (sig. <0, 05). this study uses the ttest with the aim of knowing the results of the analysis of the independent variables have a significant effect on the dependent variable. test this hypothesis using simple linear regression. the following hypotheses are used in the t-test, including: table 10. hypothesis test no hypothesis testing t count sig. r square hypothesis 1 there is an influence of social media content on brand image 24.366 0,000 60,2% ha accepted source: research processed data, 2021 based on the data in table 10 above, it shows that the t count is 24,366 which when compared with the t table value (with a level of = 0.05; 395) and a sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 12 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty significance value of 0.000 < 0.005 (smaller than 0.05). so, it can be concluded that there is a significant influence between the social media content of instagram @raikubeauty on the dare to be bare campaign on brand image. in the form of hypothesis testing, it is stated that ho (there is no significant effect between @raikubeauty instagram social media content on brand image) is rejected & ha (there is a significant effect between @raikubeauty instagram social media content on brand image) is accepted. discussion this study uses a quantitative and explanatory approach. this research uses a questionnaire survey method with nonprobability sampling technique in collecting instrument data. in this study, questionnaires were distributed online using google form to a predetermined sample of 395 respondents with several criteria, namely respondents knew the @raikubeauty brand, were female, and followed the @raikubeauty instagram account. before distributing the questionnaires to 395 respondents, first the validity and reliability tests were carried out to the initial 30 respondents with the aim of knowing and at the same time obtaining data related to valid and reliable statements. in this study, there are two variables, namely variable x in the form of social media content and variable y in the form of brand image. these two variables will be reduced to several instruments and dimensions whose purpose is to serve as the basis for making statement instruments in the questionnaire. there are 92.7% female respondents aged 16-25 years in answering the questionnaire questions in this study. this is a potential for the domestic market, including the increasing number of young people or the millennial generation. indonesia is one of the largest cosmetic markets, so this business will be prospective and promising for local brands. this is supported by raiku beauty who created a dare to be bare campaign as a mediation for delivering messages that are felt by all the hearts of indonesian women. raiku's campaign has a message that is packaged in such a way in the form of persuasive communication by @raikubeauty to take advantage of marketing activities through social media both cognitively and emotionally. raiku uses instagram tools igtv, ig feeds, and stories to convey messages in the dare to be bare campaign. igtv is useful for attracting consumers' emotions in displaying visualizations and testimonials from indonesian women who often experience feelings of insecurity. interestingly, the social media content above departs from the theory of social media content according to cornelissen (2020), which is divided into: rational message style the message conveyed by @raikubeauty in the dare to be bare campaign seems unique that every woman is beautiful without using makeup, because beauty is not only from the outside but from within and raiku wants indonesian women to continue to be brave and confident show their inner beauty regardless of their skin colour, because all indonesian women are beautiful. based on the results of the statement above, it can be seen in the upload of the raiku beauty instagram social media account which uses models with various skin colour differences and still looks beautiful with their respective styles. like picture 5 below is an igtv instagram post @raikubeauty. figure 5. uploaded by igtv @raikubeauty source: (@raikubeauty, 2021) symbolic association message style raiku is able to touch his followers with various testimonials from the dare to be bare campaign by making his followers share their experiences of insecurity and struggle against this insecurity and dare to share the story on social media. this is supported by many posts and stories from instagram followers @raikubeauty. emotional message style (model of emotional messages). raiku was able to gain the trust of his followers for uploading on social media about the dare to be bare campaign. figure 6. raiku dare to be bare followers source: (@raikubeauty, 2021) sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 13vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty significance value of 0.000 < 0.005 (smaller than 0.05). so, it can be concluded that there is a significant influence between the social media content of instagram @raikubeauty on the dare to be bare campaign on brand image. in the form of hypothesis testing, it is stated that ho (there is no significant effect between @raikubeauty instagram social media content on brand image) is rejected & ha (there is a significant effect between @raikubeauty instagram social media content on brand image) is accepted. discussion this study uses a quantitative and explanatory approach. this research uses a questionnaire survey method with nonprobability sampling technique in collecting instrument data. in this study, questionnaires were distributed online using google form to a predetermined sample of 395 respondents with several criteria, namely respondents knew the @raikubeauty brand, were female, and followed the @raikubeauty instagram account. before distributing the questionnaires to 395 respondents, first the validity and reliability tests were carried out to the initial 30 respondents with the aim of knowing and at the same time obtaining data related to valid and reliable statements. in this study, there are two variables, namely variable x in the form of social media content and variable y in the form of brand image. these two variables will be reduced to several instruments and dimensions whose purpose is to serve as the basis for making statement instruments in the questionnaire. there are 92.7% female respondents aged 16-25 years in answering the questionnaire questions in this study. this is a potential for the domestic market, including the increasing number of young people or the millennial generation. indonesia is one of the largest cosmetic markets, so this business will be prospective and promising for local brands. this is supported by raiku beauty who created a dare to be bare campaign as a mediation for delivering messages that are felt by all the hearts of indonesian women. raiku's campaign has a message that is packaged in such a way in the form of persuasive communication by @raikubeauty to take advantage of marketing activities through social media both cognitively and emotionally. raiku uses instagram tools igtv, ig feeds, and stories to convey messages in the dare to be bare campaign. igtv is useful for attracting consumers' emotions in displaying visualizations and testimonials from indonesian women who often experience feelings of insecurity. interestingly, the social media content above departs from the theory of social media content according to cornelissen (2020), which is divided into: rational message style the message conveyed by @raikubeauty in the dare to be bare campaign seems unique that every woman is beautiful without using makeup, because beauty is not only from the outside but from within and raiku wants indonesian women to continue to be brave and confident show their inner beauty regardless of their skin colour, because all indonesian women are beautiful. based on the results of the statement above, it can be seen in the upload of the raiku beauty instagram social media account which uses models with various skin colour differences and still looks beautiful with their respective styles. like picture 5 below is an igtv instagram post @raikubeauty. figure 5. uploaded by igtv @raikubeauty source: (@raikubeauty, 2021) symbolic association message style raiku is able to touch his followers with various testimonials from the dare to be bare campaign by making his followers share their experiences of insecurity and struggle against this insecurity and dare to share the story on social media. this is supported by many posts and stories from instagram followers @raikubeauty. emotional message style (model of emotional messages). raiku was able to gain the trust of his followers for uploading on social media about the dare to be bare campaign. figure 6. raiku dare to be bare followers source: (@raikubeauty, 2021) sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 14 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty the story from picture 6 above is the story of a brother who feels insecure because of his difference with his biological brother, it is always covered by using make-up to always look beautiful according to his version. over time she realized that beauty is relative and she was very brave to join the dare to be bare campaign by uploading photos without makeup and telling her experiences to the public. this makes social media friends or the public support the actions of the raiku campaign. starting from giving love emoticons to even other positive words such as 'proud to be your friend'. generic message style raiku beauty is able to compete by having content ideas about the dare to be bare campaign that are different from its competitors. premptive message style (preventive message model) raiku beauty has succeeded in making indonesian women free from self-doubt with content uploaded on social media. figure 7. followers of the dare to be bare campaign source: (@raikubeauty, 2021) the message in the explanation above is conveyed in effective communication in social media content. social media content contains messages that can influence the perception of @raikubeauty followers as respondents in this study. the theory explains a message content that is packaged in an attractive and structured way so that brands that use social media can communicate their products and brand images in an attractive and appropriate way to the audience. brand image according to kotler & keller (2016), identified through three dimensions in this study as follows: strength of brand association, the content uploaded by @raikubeauty makes it easy for followers to identify the raiku beauty brand with a dare to be bare campaign as a pioneer of beauty and quality beauty products. figure 8. raiku products reviewed by beauty blogger source: (@raikubeauty, 2021) favourability of brand association, dare to be bare campaign content uploaded by @raikubeauty has won the trust of his followers. uniqueness of brand association, the content uploaded by @raikubeauty makes raiku have its own unique value, namely being a pioneer of local beauty brands for skincare and contemporary makeup with campaigns that voice the hearts of indonesian women. based on the results of the majority of respondents in this study, it can be seen that uploads on the @raikubeauty instagram account regarding the dare to be bare campaign successfully convey messages based on the feelings of indonesian women, become beauty pioneers by getting 92.9% agree and strongly agree, and pioneers from beauty brands to raiku beauty's brand image received 90.8% agree and strongly agree responses. the majority of respondents in this study gave positive and quite strong answers to the raiku beauty brand, the consistency of the message conveyed, quality products, and the uniqueness that represents the brand image of @raikubeauty content. the theoretical hypothesis is used in this study so that it has a relationship and mutual influence on the research results obtained, that the @raikubeauty instagram social media content about the dare to be bare campaign has an effect on brand image. based on the results of the study, the questionnaire data showed the positive influence of social media content on raiku beauty's brand image. based on the results of research conducted on followers of the @raikubeauty instagram account on brand image from the processed data from the spss 25.0 program, the results showed that there was an influence between social media content on raiku's brand image. this is obtained from the calculations in table 10, with a calculated t value of 24,366 and a sig value. 0.000 which is less than 0.05. the magnitude of the influence of instagram @raikubeauty's social media content on brand image can be concluded in table 8, with an r-square value of 0.602, which means that the influence between the variables tested is 60.2% and every one increase in the value of @raikubeauty's instagram social media content then raiku's brand image will increase by 0.396. in addition, the results of the study show that of the 5 instruments in the social media content variable (x), namely rational message style, symbolic association message style, emotional message style, generic message style, and premptive message style, the dimension sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 15vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty the story from picture 6 above is the story of a brother who feels insecure because of his difference with his biological brother, it is always covered by using make-up to always look beautiful according to his version. over time she realized that beauty is relative and she was very brave to join the dare to be bare campaign by uploading photos without makeup and telling her experiences to the public. this makes social media friends or the public support the actions of the raiku campaign. starting from giving love emoticons to even other positive words such as 'proud to be your friend'. generic message style raiku beauty is able to compete by having content ideas about the dare to be bare campaign that are different from its competitors. premptive message style (preventive message model) raiku beauty has succeeded in making indonesian women free from self-doubt with content uploaded on social media. figure 7. followers of the dare to be bare campaign source: (@raikubeauty, 2021) the message in the explanation above is conveyed in effective communication in social media content. social media content contains messages that can influence the perception of @raikubeauty followers as respondents in this study. the theory explains a message content that is packaged in an attractive and structured way so that brands that use social media can communicate their products and brand images in an attractive and appropriate way to the audience. brand image according to kotler & keller (2016), identified through three dimensions in this study as follows: strength of brand association, the content uploaded by @raikubeauty makes it easy for followers to identify the raiku beauty brand with a dare to be bare campaign as a pioneer of beauty and quality beauty products. figure 8. raiku products reviewed by beauty blogger source: (@raikubeauty, 2021) favourability of brand association, dare to be bare campaign content uploaded by @raikubeauty has won the trust of his followers. uniqueness of brand association, the content uploaded by @raikubeauty makes raiku have its own unique value, namely being a pioneer of local beauty brands for skincare and contemporary makeup with campaigns that voice the hearts of indonesian women. based on the results of the majority of respondents in this study, it can be seen that uploads on the @raikubeauty instagram account regarding the dare to be bare campaign successfully convey messages based on the feelings of indonesian women, become beauty pioneers by getting 92.9% agree and strongly agree, and pioneers from beauty brands to raiku beauty's brand image received 90.8% agree and strongly agree responses. the majority of respondents in this study gave positive and quite strong answers to the raiku beauty brand, the consistency of the message conveyed, quality products, and the uniqueness that represents the brand image of @raikubeauty content. the theoretical hypothesis is used in this study so that it has a relationship and mutual influence on the research results obtained, that the @raikubeauty instagram social media content about the dare to be bare campaign has an effect on brand image. based on the results of the study, the questionnaire data showed the positive influence of social media content on raiku beauty's brand image. based on the results of research conducted on followers of the @raikubeauty instagram account on brand image from the processed data from the spss 25.0 program, the results showed that there was an influence between social media content on raiku's brand image. this is obtained from the calculations in table 10, with a calculated t value of 24,366 and a sig value. 0.000 which is less than 0.05. the magnitude of the influence of instagram @raikubeauty's social media content on brand image can be concluded in table 8, with an r-square value of 0.602, which means that the influence between the variables tested is 60.2% and every one increase in the value of @raikubeauty's instagram social media content then raiku's brand image will increase by 0.396. in addition, the results of the study show that of the 5 instruments in the social media content variable (x), namely rational message style, symbolic association message style, emotional message style, generic message style, and premptive message style, the dimension sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 16 vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty that has the most influence on brand image is rational. message styles. this can be seen from the mean value of 3.52 which is the largest value compared to other instrument values. iv. conclusion this study was conducted to determine whether raiku's brand image has an influence from @raikubeauty and how much influence it has on raiku's brand image. researchers conducted data analysis on 395 respondents as samples from @raikubeauty. based on the results of this study, the following conclusions can be drawn: there is a significant effect of the instagram @raikubeauty social media content on the dare to be bare campaign on brand image. has the meaning of the hypothesis in this study, namely ha can be accepted. based on data from the analysis of this study, it shows that the level of instagram @raikubeauty's social media content in the dare to be bare campaign has an effect of 60.2% on brand image. thus, the effect of variable x (instagram social media content) on variable y (brand image) is significant and 39.8% is influenced by other factors. the predicted value of raiku beauty's brand image, which is influenced by the social media content of instagram @raikubeauty on the dare to be bare campaign, will increase by 4,604 units plus 0.396 for each increase of one unit. acknowledgment the author would to express their gratitude to multimedia university nusantara for the research support. references alhaddad, a. (2015). a structural model of the relationships between brand image, brand trust and brand loyalty. international journal of management research and reviews, 5(3), 137. asmoro, w., indrasari, m., nazarudin, w., & al sukri, s. (2020). marketing communication in the digital era: does it need ethics? european journal of molecular & clinical medicine, 7(8), 1258–1265. blanchard, l., & monnin, c. (2015). do you really" like": it?: evaluating social media use to provide a current awareness service. bungin, b. (2007). penelitian kualitatif: komunikasi, ekonomi, kebijakan publik, dan ilmu sosial lainnya (vol. 2). kencana. cangara, h. (2016). pengantar ilmu komunikasi (edisi kedua). jakarta: pt rajagrafindo persada. cornelissen, j. (2020). corporate communication: a guide to theory and practice. sage. digimind.id. (2020). data produk kecantikan terlaris di e-commerce | digimind. effendy, o. (2007). ilmu komunikasi teori dan praktek. ghozali, i. (2016). aplikasi analisis multivariete dengan program ibm spss 23 (edisi 8). in universitas diponegoro. https://doi.org/https://doi.org/10.3929 /ethz-b-000238666 hamidi, j. (2004). metode penelitian kualitatif. malang: umm pres. hikmat, m. (2011). metode penelitian: dalam perspektif ilmu komunikasi dan sastra. graha ilmu. indrasari, m., hapsari, i., & sukesi. (2019). customer loyalty: effects of sales information system, marcomm, and brandambassadors. jurnal studi komunikasi, 3(2), 182–198. kotler, p., & keller, k. (2016). marketing management. harlow: pearson education. https://doi.org/https://doi. org/10.1080/08911760903022556 kriyantono, r. (2007). teknik praktis riset komunikasi. kencana. kriyantono, r. (2014). teknik praktis riset komunikasi. prenada media. mukarom, z., & laksana, m. (2015). membangun kinerja pelayanan publik. pustaka setia. neolaka, a. (2016). metode penelitian dan statistik. pt. neuman, w. (2013). metodologi penelitian sosial: pendekatan kualitatif dan kuantitatif. pt. indeks. octaviana, v., & susilo, d. (2021). impact of@ raikubeauty instagram campaign content on brand image. jurnal komunikasi profesional, 5(3), 270–284. raditya, b., indrasari, m., handini, s., & soekiman, s. (2019). the effect of quality of products and services on trust and decision of customers to choose banks. achits 2019: proceedings of the 1st asian conference on humanities, industry, and technology for society, achits 2019, 30-31 july 2019, surabaya, indonesia, 414. saebani, b. (2017). pedoman aplikatif metode penelitian dalam penyusunan karya ilmiah, skripsi, tesis, dan disertasi,. bandung: cv pustaka setia. sarwono, j. (2010). pintar menulis karangan ilmiah-kunci sukses dalam menulis ilmiah. penerbit andi. sugiyono. (2018). metode penelitian kuantitatif, kualitatif, dan r&d. penerbit cv. alfabeta. susilo, d, prabowo, t., & putranto, t. (2019). communicating secure based feeling: content analysis on indonesian police official account. international journal of engineering and advanced technology. https://doi.org/10.35940/ijeat.f8377.0 88619 susilo, daniel. (2021). aksi-aksi warganet pada berita daring: cabaran pada studi posfeminisme dan politik. airlangga university press. susilo, daniel, & putranto, t. d. (2018). indonesian youth on social media: study on content analysis. https://doi.org/10.2991/sshr17.2018.15 susilo, daniel, putranto, t. d., & navarro, c. j. s. (2021). ms glow for men: digital marketing strategy on men’s facial care products. sinergi: jurnal ilmiah ilmu manajemen, 11(1), 2021. tuten, t. (2020). social media marketing. sage. yunus, e., susilo, d., riyadi, s., indrasari, m., & putranto, t. (2019). the effectiveness marketing strategy for ride sharing transportation: intersecting social media, technology, and innovation. entrepreneurship and sustainability issues, 7(2), 1424–1434. sinergi: jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 17vanisha octaviana1), daniel susilo2), mateo jose a. vidal3) the influence of the dare to be bare campaign on brand image on instagram @ raikubeauty that has the most influence on brand image is rational. message styles. this can be seen from the mean value of 3.52 which is the largest value compared to other instrument values. iv. conclusion this study was conducted to determine whether raiku's brand image has an influence from @raikubeauty and how much influence it has on raiku's brand image. researchers conducted data analysis on 395 respondents as samples from @raikubeauty. based on the results of this study, the following conclusions can be drawn: there is a significant effect of the instagram @raikubeauty social media content on the dare to be bare campaign on brand image. has the meaning of the hypothesis in this study, namely ha can be accepted. based on data from the analysis of this study, it shows that the level of instagram @raikubeauty's social media content in the dare to be bare campaign has an effect of 60.2% on brand image. thus, the effect of variable x (instagram social media content) on variable y (brand image) is significant and 39.8% is influenced by other factors. the predicted value of raiku beauty's brand image, which is influenced by the social media content of instagram @raikubeauty on the dare to be bare campaign, will increase by 4,604 units plus 0.396 for each increase of one unit. acknowledgment the author would to express their gratitude to multimedia university nusantara for the research support. references alhaddad, a. (2015). a structural model of the relationships between brand image, brand trust and brand loyalty. international journal of management research and reviews, 5(3), 137. asmoro, w., indrasari, m., nazarudin, w., & al sukri, s. (2020). marketing communication in the digital era: does it need ethics? european journal of molecular & clinical medicine, 7(8), 1258–1265. blanchard, l., & monnin, c. (2015). do you really" like": it?: evaluating social media use to provide a current awareness service. bungin, b. (2007). penelitian kualitatif: komunikasi, ekonomi, kebijakan publik, dan ilmu sosial lainnya (vol. 2). kencana. cangara, h. (2016). pengantar ilmu komunikasi (edisi kedua). jakarta: pt rajagrafindo persada. cornelissen, j. (2020). corporate communication: a guide to theory and practice. sage. digimind.id. (2020). data produk kecantikan terlaris di e-commerce | digimind. effendy, o. (2007). ilmu komunikasi teori dan praktek. ghozali, i. (2016). aplikasi analisis multivariete dengan program ibm spss 23 (edisi 8). in universitas diponegoro. https://doi.org/https://doi.org/10.3929 /ethz-b-000238666 hamidi, j. (2004). metode penelitian kualitatif. malang: umm pres. hikmat, m. (2011). metode penelitian: dalam perspektif ilmu komunikasi dan sastra. graha ilmu. indrasari, m., hapsari, i., & sukesi. (2019). customer loyalty: effects of sales information system, marcomm, and brandambassadors. jurnal studi komunikasi, 3(2), 182–198. kotler, p., & keller, k. (2016). marketing management. harlow: pearson education. https://doi.org/https://doi. org/10.1080/08911760903022556 kriyantono, r. (2007). teknik praktis riset komunikasi. kencana. kriyantono, r. (2014). teknik praktis riset komunikasi. prenada media. mukarom, z., & laksana, m. (2015). membangun kinerja pelayanan publik. pustaka setia. neolaka, a. (2016). metode penelitian dan statistik. pt. neuman, w. (2013). metodologi penelitian sosial: pendekatan kualitatif dan kuantitatif. pt. indeks. octaviana, v., & susilo, d. (2021). impact of@ raikubeauty instagram campaign content on brand image. jurnal komunikasi profesional, 5(3), 270–284. raditya, b., indrasari, m., handini, s., & soekiman, s. (2019). the effect of quality of products and services on trust and decision of customers to choose banks. achits 2019: proceedings of the 1st asian conference on humanities, industry, and technology for society, achits 2019, 30-31 july 2019, surabaya, indonesia, 414. saebani, b. (2017). pedoman aplikatif metode penelitian dalam penyusunan karya ilmiah, skripsi, tesis, dan disertasi,. bandung: cv pustaka setia. sarwono, j. (2010). pintar menulis karangan ilmiah-kunci sukses dalam menulis ilmiah. penerbit andi. sugiyono. (2018). metode penelitian kuantitatif, kualitatif, dan r&d. penerbit cv. alfabeta. susilo, d, prabowo, t., & putranto, t. (2019). communicating secure based feeling: content analysis on indonesian police official account. international journal of engineering and advanced technology. https://doi.org/10.35940/ijeat.f8377.0 88619 susilo, daniel. (2021). aksi-aksi warganet pada berita daring: cabaran pada studi posfeminisme dan politik. airlangga university press. susilo, daniel, & putranto, t. d. (2018). indonesian youth on social media: study on content analysis. https://doi.org/10.2991/sshr17.2018.15 susilo, daniel, putranto, t. d., & navarro, c. j. s. (2021). ms glow for men: digital marketing strategy on men’s facial care products. sinergi: jurnal ilmiah ilmu manajemen, 11(1), 2021. tuten, t. (2020). social media marketing. sage. yunus, e., susilo, d., riyadi, s., indrasari, m., & putranto, t. (2019). the effectiveness marketing strategy for ride sharing transportation: intersecting social media, technology, and innovation. entrepreneurship and sustainability issues, 7(2), 1424–1434. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 22 basrowi social impact of financial technology and islamic economics education social impact of financial technology and islamic economics education basrowi 1university of bina bangsa, banten, indonesia basrowi@binabangsa.ac.id submit: 1st september 2021, revised: september 2021, accepted: september 2021 abstract. the purpose of this study is to test hypotheses about how the impact of financial technology (fintech) and islamic economic education in improving social welfare. correlational quantitative research was chosen to reveal the social impact of the two variables. the research population is all people in lampung province, indonesia who are educated in islamic economics, who at the time of the study were at least sitting in the fifth semester undergraduate program. the sample is 308 people or 10% of the population of 3080 people. data were collected using a questioner that was shared using google form. data analysis was performed using a structural equation model (sem) approach with the lisrel 8.80 program. the results showed that, the social impact of utilizing financial technology and islamic economic education includes two aspects, namely positive and negative impacts which are all related to people's economic behavior, economic learning, and psychological and spiritual health. positive impacts dominate more than negative impacts. keywords: social impact, financial technology, economics education, sharia i. introduction the development of the digital economy has entered an era where many opportunities in the business world use technology start-ups, which can trigger competitiveness and solve socioeconomic challenges. indonesia is ranked as the first fastest growing internet connection in the world. statistics from the intermedia report state that 40% of the very poor category population also has a mobile telephone and what's interesting is 0.1% of the 40% of the very poor category population already have a mobile money account. even though the intensity is still small, this figure clearly shows that the potential of fintech has driven national economic growth is very clear in front of the eyes (ojk, 2017). it is predicted, the development of the digital economy in indonesia reaches us $ 130 billion or rp 1,831 trillion. the main focus of the start-up of several years is aimed at breaking down the old-fashioned (offline) financial circulation. digital start up has produced multiplier effects, especially for micro and medium enterprises (msmes). at present, the government has launched the indonesia golden 2045 program and is expected to become the fourth largest economy in the world in 2045. the government has provided solutions to meet the needs of the indonesian people and create new job opportunities through creative economy or economic innovation amid the current economic turmoil. the problem is, although the number of msme actors is 60 million people, or equal to 20% of the population, msmes are in a porous state with a low level of public understanding of the digital start-up industry or fintech lending and the large number of traders not makers. (winosa, 2019) on the same side, the digital economy of sharia also creates a new view of a digital-based financial revolution that is able to improve welfare and convenience for the community, especially with the presence of islamic financial technology (fintech), as well as providing islamic economic education to all muslim communities. this is one of the main assets in strengthening sustainable national economic growth (sustanaible development goals / sdgs) (barata, 2019; hisnam, m., & alam, mk., 2019). even so, the presence of the fintech sharia industry is still in its infancy so it needs to be reviewed to what extent it has an impact on the socio-economic community (rahim, bakri, & yahaya, 2019). technology can change consumer behavior both from mindset and lifestyle. society began to adapt to be able to survive in the path of civilization based on digital technology. it cannot be denied, the social impact of utilizing financial technology and economics education has become serious enough to be explored more deeply. fintech is the reason for the emergence of a variety of new innovations and encourage businesses to start new businesses and bring up various benefits in terms of socio-economic aspects of society. in the end, it cannot be denied that financial technology is naturally spread and accepted by the public directly. this is what causes the social impact of fintech to be very fast. the problem of socio-economic inequality in the private sector has caused the urgency of msmes from the business competition arena perfectly. capital problems are a particular obstacle for the sustainability of msmes (mangeswuri, 2018). on the other hand, the issue of consumer protection for banking and nonbanking financial institutions is a special problem that must be addressed immediately. anticipation of cases of cysbercrime and misuse of personal data is a special note for the indonesian government. the government must be able to be a safeguard for fintech users (ojk, 2017). the presence of fintech syariah with a peer to peer lending system contains maslahah benefits that are expected to overcome and respond to social inequalities as mentioned above. the social impact of fintech and islamic economic education has attracted many stakeholders in recent years. this is because the potential sources of islamic principles on the quality of financial technology and islamic economic education are part of socioeconomic responsibilities. the main pioneers of financial technology are to bring technology this finance to be closer to the people. digital connectivity has broad social impact. fintech allows people to conduct financial transactions without having to face to face even though remotely. this means that there is no social interaction between parties conducting transactions. all done practically without having to do face-to-face which means as conventional methods. the low access to financial services makes the presence of fintech sharia one of the solutions to access financial capital and financing for the middle to lower classes. because so far the realization of sdgs has been hampered one of them because of the low welfare distribution. this is due to some sophisticated technologies such as artificial intelligence (ai), blockhain, and robotic which can only be felt by large-investing bank customers or macro industry players, and it is very unlikely that the poor will be able to obtain the same financial services. therefore, sharia fintech is here to help unbanked or underbanked people. some non-profit organizations have also adopted the advancement of innovative financial technologies such as fintech for sustainable socioeconomic development (mohsin, 2019). one nonprofit organization that applies fintech is a waqf institution that consistently provides social welfare services in the context of social entrepreneurship (alam et al, 2018; aliyu, 2019). there are also zakat institutions as a place for distributing muslim alms to improve the welfare of the poor (mustahik) (rahman & salam, 2018; al azizah & chorin, 2018; utami & julianas, 2019). the results of the research above direct the idea that, the islamic economic model has the ability to reduce the growth gap and the development of unemployment in developing countries. through islamic economic education, the special dimensions involving three main elements such as the prohibition of interest (riba), optimization of zakat, and spiritual, moral, and intellectual characteristics will be realized acceleratively in the future. this is the main goal of islamic economic education to create a fair and equitable welfare for the community (santoso, canon, & pakaya, 2019). where human resources who have the ability in islamic economics are needed to be able to drive the economic development of sharia towards the country's development. preparing productive human resources through social entrepreneurship as an alternative financial support for islamic economic education institutions (siahaan, iswati, & zarkasyi, 2019; sulaiman, suswanto, & masrukin, 2018) and having a good entitlement are certainly one of the keys to success in facing the challenge of uncertainty. in the midst of morality and socioeconomic crisis (wahyudin, rusdin, & abdul, 2017). this novel research is trying to get a model about the social impact of the use of financial technology and islamic economic education in improving social welfare in muslim communities in indonesia. to examine more deeply the social impact of utilizing financial technology and islamic economic education, the following is described in two parts. first, the study of financial technology. financial technology especially privacy data sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 23basrowi social impact of financial technology and islamic economics education social impact of financial technology and islamic economics education basrowi 1university of bina bangsa, banten, indonesia basrowi@binabangsa.ac.id submit: 1st september 2021, revised: september 2021, accepted: september 2021 abstract. the purpose of this study is to test hypotheses about how the impact of financial technology (fintech) and islamic economic education in improving social welfare. correlational quantitative research was chosen to reveal the social impact of the two variables. the research population is all people in lampung province, indonesia who are educated in islamic economics, who at the time of the study were at least sitting in the fifth semester undergraduate program. the sample is 308 people or 10% of the population of 3080 people. data were collected using a questioner that was shared using google form. data analysis was performed using a structural equation model (sem) approach with the lisrel 8.80 program. the results showed that, the social impact of utilizing financial technology and islamic economic education includes two aspects, namely positive and negative impacts which are all related to people's economic behavior, economic learning, and psychological and spiritual health. positive impacts dominate more than negative impacts. keywords: social impact, financial technology, economics education, sharia i. introduction the development of the digital economy has entered an era where many opportunities in the business world use technology start-ups, which can trigger competitiveness and solve socioeconomic challenges. indonesia is ranked as the first fastest growing internet connection in the world. statistics from the intermedia report state that 40% of the very poor category population also has a mobile telephone and what's interesting is 0.1% of the 40% of the very poor category population already have a mobile money account. even though the intensity is still small, this figure clearly shows that the potential of fintech has driven national economic growth is very clear in front of the eyes (ojk, 2017). it is predicted, the development of the digital economy in indonesia reaches us $ 130 billion or rp 1,831 trillion. the main focus of the start-up of several years is aimed at breaking down the old-fashioned (offline) financial circulation. digital start up has produced multiplier effects, especially for micro and medium enterprises (msmes). at present, the government has launched the indonesia golden 2045 program and is expected to become the fourth largest economy in the world in 2045. the government has provided solutions to meet the needs of the indonesian people and create new job opportunities through creative economy or economic innovation amid the current economic turmoil. the problem is, although the number of msme actors is 60 million people, or equal to 20% of the population, msmes are in a porous state with a low level of public understanding of the digital start-up industry or fintech lending and the large number of traders not makers. (winosa, 2019) on the same side, the digital economy of sharia also creates a new view of a digital-based financial revolution that is able to improve welfare and convenience for the community, especially with the presence of islamic financial technology (fintech), as well as providing islamic economic education to all muslim communities. this is one of the main assets in strengthening sustainable national economic growth (sustanaible development goals / sdgs) (barata, 2019; hisnam, m., & alam, mk., 2019). even so, the presence of the fintech sharia industry is still in its infancy so it needs to be reviewed to what extent it has an impact on the socio-economic community (rahim, bakri, & yahaya, 2019). technology can change consumer behavior both from mindset and lifestyle. society began to adapt to be able to survive in the path of civilization based on digital technology. it cannot be denied, the social impact of utilizing financial technology and economics education has become serious enough to be explored more deeply. fintech is the reason for the emergence of a variety of new innovations and encourage businesses to start new businesses and bring up various benefits in terms of socio-economic aspects of society. in the end, it cannot be denied that financial technology is naturally spread and accepted by the public directly. this is what causes the social impact of fintech to be very fast. the problem of socio-economic inequality in the private sector has caused the urgency of msmes from the business competition arena perfectly. capital problems are a particular obstacle for the sustainability of msmes (mangeswuri, 2018). on the other hand, the issue of consumer protection for banking and nonbanking financial institutions is a special problem that must be addressed immediately. anticipation of cases of cysbercrime and misuse of personal data is a special note for the indonesian government. the government must be able to be a safeguard for fintech users (ojk, 2017). the presence of fintech syariah with a peer to peer lending system contains maslahah benefits that are expected to overcome and respond to social inequalities as mentioned above. the social impact of fintech and islamic economic education has attracted many stakeholders in recent years. this is because the potential sources of islamic principles on the quality of financial technology and islamic economic education are part of socioeconomic responsibilities. the main pioneers of financial technology are to bring technology this finance to be closer to the people. digital connectivity has broad social impact. fintech allows people to conduct financial transactions without having to face to face even though remotely. this means that there is no social interaction between parties conducting transactions. all done practically without having to do face-to-face which means as conventional methods. the low access to financial services makes the presence of fintech sharia one of the solutions to access financial capital and financing for the middle to lower classes. because so far the realization of sdgs has been hampered one of them because of the low welfare distribution. this is due to some sophisticated technologies such as artificial intelligence (ai), blockhain, and robotic which can only be felt by large-investing bank customers or macro industry players, and it is very unlikely that the poor will be able to obtain the same financial services. therefore, sharia fintech is here to help unbanked or underbanked people. some non-profit organizations have also adopted the advancement of innovative financial technologies such as fintech for sustainable socioeconomic development (mohsin, 2019). one nonprofit organization that applies fintech is a waqf institution that consistently provides social welfare services in the context of social entrepreneurship (alam et al, 2018; aliyu, 2019). there are also zakat institutions as a place for distributing muslim alms to improve the welfare of the poor (mustahik) (rahman & salam, 2018; al azizah & chorin, 2018; utami & julianas, 2019). the results of the research above direct the idea that, the islamic economic model has the ability to reduce the growth gap and the development of unemployment in developing countries. through islamic economic education, the special dimensions involving three main elements such as the prohibition of interest (riba), optimization of zakat, and spiritual, moral, and intellectual characteristics will be realized acceleratively in the future. this is the main goal of islamic economic education to create a fair and equitable welfare for the community (santoso, canon, & pakaya, 2019). where human resources who have the ability in islamic economics are needed to be able to drive the economic development of sharia towards the country's development. preparing productive human resources through social entrepreneurship as an alternative financial support for islamic economic education institutions (siahaan, iswati, & zarkasyi, 2019; sulaiman, suswanto, & masrukin, 2018) and having a good entitlement are certainly one of the keys to success in facing the challenge of uncertainty. in the midst of morality and socioeconomic crisis (wahyudin, rusdin, & abdul, 2017). this novel research is trying to get a model about the social impact of the use of financial technology and islamic economic education in improving social welfare in muslim communities in indonesia. to examine more deeply the social impact of utilizing financial technology and islamic economic education, the following is described in two parts. first, the study of financial technology. financial technology especially privacy data sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 24 basrowi social impact of financial technology and islamic economics education security and adequate infrastructure create interest in financial services and change people's financial behavior using conventional and traditional methods of switching to digital (zimmermen, jamie & baur, 2016; gai, 2017). good financial funding turns out to be successful in creating dynamic financial strategies for policies in several countries in the region so that it indirectly influences the business behavior environment of the communities in which the policies are applied (leonard, 2011; buchak, 2018) likewise with regard to sharia fintech, it turned out to be able to open many business opportunities and new jobs for the community so as to reduce unemployment. fintech sharia is able to change individual behavior to be more productive. the emergence of various new innovations in the field of financial technology can encourage people to be more creative. through fintech sharia, social for increasing motivation to pay zakat. financial technology is able to provide access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. the advantages provided by fintech are able to provide alternative financial services that are better. so that in practice fintech has not really had a social impact for the community especially for micro and medium businesses. keep in mind that, fintech sharia does not always have a positive social impact. this depends on the behavior of the community itself. changes in mindset and lifestyle make some consumers more consumptive. on one hand, both substitute production, product variants, service quality and competitive prices and even cheap make fintech increasingly popular. but on the other hand, people are far more consumptive because they are interested in fintech services that are faster, easier and even cheaper. concern about moving away from this welfare goal is a challenge for islamic fintech. several articles examining the social impact of financial technology tend to conclude the finding of a positive psychological effect (yuen et al., 2013; hanafizadeh, ghandchi, & asgarimehr, 2017) and a theoretical study of divinity giving spiritual control over individual behavior in the direction justified by religious teachings such as not wasteful (consumptive), paying zakat and giving alms. previous research revealed that the use of financial technology can close the gap between society and bring long-term social change financially towards a just society (salampasis, 2018; ozili, 2018; jagtiani, 2018; adb, 2016; demirguc-kunt et al, 2018;) . therefore, fintech activities require innovation (malaguti, 2015; milan, 2019), especially for youth and middle class people. financial technology can lead to the desire to own something that is not a primary need. entangled online loans, directly cause high levels of anxiety, depression, and self-control so that it can lead to crime and family conflict to social problems. sharia principles that are implemented in financial technology are able to minimize the possibility of an individual's psychological and spiritual harm. so that individuals are able to make the right decisions in the use of financial technology. second, the study of islamic economic education. financial education will be able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society (bongomin, et al, 2016). colledge of islamic economic learning shows an increase in learning capacity for a lifetime. previous research shows that islamic economic education enables people to learn in a digital environment and recognize the risks and financial benefits for the future (grohman, 2018). the learning process obtained from financial education will greatly affect social life because it is able to increase financial inclusion (cohen, moneque, & nelson, 2011). but unfortunately the learning process will take a long time to have a positive impact on social life (cordero & marouze, 2016). good financial education contributes to financial decision making which is part of the learning process of socioeconomic values in society. (grohman, 2018) the learning process to improve financial understanding consists of assessing the level of awareness, knowledge and business behavior skills that must be prepared as early as possible so that understanding of islamic finance in the community continues to increase (antara, 2016). colledge of islamic education will provide benefits for product understanding, investment intelligence, intolerance to disposition effects and affect the level of community participation in the derivatives market (hsiao, 2017; bellefatho, 2018; organ & trinh, 2019). conversely, low levels of financial literacy will affect people's perceptions in financial decision making and can have an impact on low trust in products, lack of willingness to accept financial advice (anderson, 2017). therefore, it is important to strengthen economic learning through various trainings on how to make the best use of financial technology in order to close the financial gap (shen hu & hueng, 2018; koonson, villano, & hadley, 2019). but on the other hand, the low economic education and mastery of financial technology and fintech supervision and regulation cause depression (wyman, 2017), anxiety, and psychological well-being especially in an unpredictable environment (dranev, 2019). ii. researcd methodology this study uses a mixed methodology which was carried out in two stages, namely a survey using closed questioners and structured interviews (iliadis et al. 2019). the first phase is a survey using a closed questioner. the questionnaire was developed based on operational definitions and left-lattice of research instruments developed based on the theory used. the second stage is structured interviews with survey participants, lecturers who teach in the sharia economics study program, financial service authority officials, administrators of the financial technology association, to elaborate on the responses to the questioners they have. the two stages are discussed in more detail as follows. phase 1: the research survey was a survey of a sample of 308 people. the population of this research is the people in lampung province who took the sharia economics undergraduate program, and at the time of the study they had sat in the fifth semester of 3080 people. the sampling technique used to determine the number of samples is the purposive sampling technique with a sample size of 10%. responses from survey participants can be obtained in a timely manner because they use an online survey tool, google form, which is used to spread survey questionnaires while collecting responses from respondents. survey participants were recruited through an approach with lecturers teaching at the islamic economics study program or uin radin intan, muhammadiyah lampung university, stebi lampung, stebi tanggamus, iain metro, stai yasba kalianda, and stebis nur ilmi al isma'iliyun south lampung, lampung, indonesia. the approach process is done through whatsapp, then the google form address is distributed through whatsapp groups, so that the target number of samples can be met in accordance with the specified number and sampling techniques. to accelerate the fulfillment of the sample size, researchers visited all of the tertiary institutions as mentioned above. after the researchers get permission from the head of the study program or the dean of the faculty of economics and business, the researcher enters class after class accompanied by a lecturer and spreads questions through the whatsapp group class, and students fill out the questionnaire through google forms guided by the researcher, so that when they encounter problems they can asked directly to researchers. in the questionnaire in the google form there is an email address and telephone address of the respondent so that when there is data that is blank, the researcher can ask the student who filled it in again. although this approach has limitations (westbrook and saperstein 2015), this approach facilitates a fairly representative sample in terms of semester (academic level), gender, and marital status. the survey was conducted between january-december 2019. during this period, 308 complete responses were received from male respondents (n.137), female respondents (n.167). respondents with bachelor level (n.225) and graduate program (n. 20), married (n.73) and not married (n.235). to determine the normality of the sample compared with the population, researchers conducted the kolmogorov smirnov z test. the results from the sample normality test showed that the sample did not differ significantly from the population. data analysis methods used in this study are partial regression analysis, multiple regression and structural equation models/sem (ghozali (2016). hypothesis testing is done with the determination test (r²), t test, and f test (ghozali, 2016). phase 2: structured interviews were conducted with respondents who were part of the research sample. those interviewed were those who expressed an interest in participating in the follow-up interview. the researcher deliberately took interview samples from respondents for maximum variation in: (a) their academic level of study; (b) gender; and (c) marital status. through this interview insight can be added about the main trends and frequencies that appear in the survey data on the positive and negative impacts of the use of financial technology and islamic economic education. methodology limitations. there are several potential limitations of this research methodology. this research methodology is a mixed method which is carried out in two stages, namely a survey using closed questioners and sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 25basrowi social impact of financial technology and islamic economics education security and adequate infrastructure create interest in financial services and change people's financial behavior using conventional and traditional methods of switching to digital (zimmermen, jamie & baur, 2016; gai, 2017). good financial funding turns out to be successful in creating dynamic financial strategies for policies in several countries in the region so that it indirectly influences the business behavior environment of the communities in which the policies are applied (leonard, 2011; buchak, 2018) likewise with regard to sharia fintech, it turned out to be able to open many business opportunities and new jobs for the community so as to reduce unemployment. fintech sharia is able to change individual behavior to be more productive. the emergence of various new innovations in the field of financial technology can encourage people to be more creative. through fintech sharia, social for increasing motivation to pay zakat. financial technology is able to provide access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. the advantages provided by fintech are able to provide alternative financial services that are better. so that in practice fintech has not really had a social impact for the community especially for micro and medium businesses. keep in mind that, fintech sharia does not always have a positive social impact. this depends on the behavior of the community itself. changes in mindset and lifestyle make some consumers more consumptive. on one hand, both substitute production, product variants, service quality and competitive prices and even cheap make fintech increasingly popular. but on the other hand, people are far more consumptive because they are interested in fintech services that are faster, easier and even cheaper. concern about moving away from this welfare goal is a challenge for islamic fintech. several articles examining the social impact of financial technology tend to conclude the finding of a positive psychological effect (yuen et al., 2013; hanafizadeh, ghandchi, & asgarimehr, 2017) and a theoretical study of divinity giving spiritual control over individual behavior in the direction justified by religious teachings such as not wasteful (consumptive), paying zakat and giving alms. previous research revealed that the use of financial technology can close the gap between society and bring long-term social change financially towards a just society (salampasis, 2018; ozili, 2018; jagtiani, 2018; adb, 2016; demirguc-kunt et al, 2018;) . therefore, fintech activities require innovation (malaguti, 2015; milan, 2019), especially for youth and middle class people. financial technology can lead to the desire to own something that is not a primary need. entangled online loans, directly cause high levels of anxiety, depression, and self-control so that it can lead to crime and family conflict to social problems. sharia principles that are implemented in financial technology are able to minimize the possibility of an individual's psychological and spiritual harm. so that individuals are able to make the right decisions in the use of financial technology. second, the study of islamic economic education. financial education will be able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society (bongomin, et al, 2016). colledge of islamic economic learning shows an increase in learning capacity for a lifetime. previous research shows that islamic economic education enables people to learn in a digital environment and recognize the risks and financial benefits for the future (grohman, 2018). the learning process obtained from financial education will greatly affect social life because it is able to increase financial inclusion (cohen, moneque, & nelson, 2011). but unfortunately the learning process will take a long time to have a positive impact on social life (cordero & marouze, 2016). good financial education contributes to financial decision making which is part of the learning process of socioeconomic values in society. (grohman, 2018) the learning process to improve financial understanding consists of assessing the level of awareness, knowledge and business behavior skills that must be prepared as early as possible so that understanding of islamic finance in the community continues to increase (antara, 2016). colledge of islamic education will provide benefits for product understanding, investment intelligence, intolerance to disposition effects and affect the level of community participation in the derivatives market (hsiao, 2017; bellefatho, 2018; organ & trinh, 2019). conversely, low levels of financial literacy will affect people's perceptions in financial decision making and can have an impact on low trust in products, lack of willingness to accept financial advice (anderson, 2017). therefore, it is important to strengthen economic learning through various trainings on how to make the best use of financial technology in order to close the financial gap (shen hu & hueng, 2018; koonson, villano, & hadley, 2019). but on the other hand, the low economic education and mastery of financial technology and fintech supervision and regulation cause depression (wyman, 2017), anxiety, and psychological well-being especially in an unpredictable environment (dranev, 2019). ii. researcd methodology this study uses a mixed methodology which was carried out in two stages, namely a survey using closed questioners and structured interviews (iliadis et al. 2019). the first phase is a survey using a closed questioner. the questionnaire was developed based on operational definitions and left-lattice of research instruments developed based on the theory used. the second stage is structured interviews with survey participants, lecturers who teach in the sharia economics study program, financial service authority officials, administrators of the financial technology association, to elaborate on the responses to the questioners they have. the two stages are discussed in more detail as follows. phase 1: the research survey was a survey of a sample of 308 people. the population of this research is the people in lampung province who took the sharia economics undergraduate program, and at the time of the study they had sat in the fifth semester of 3080 people. the sampling technique used to determine the number of samples is the purposive sampling technique with a sample size of 10%. responses from survey participants can be obtained in a timely manner because they use an online survey tool, google form, which is used to spread survey questionnaires while collecting responses from respondents. survey participants were recruited through an approach with lecturers teaching at the islamic economics study program or uin radin intan, muhammadiyah lampung university, stebi lampung, stebi tanggamus, iain metro, stai yasba kalianda, and stebis nur ilmi al isma'iliyun south lampung, lampung, indonesia. the approach process is done through whatsapp, then the google form address is distributed through whatsapp groups, so that the target number of samples can be met in accordance with the specified number and sampling techniques. to accelerate the fulfillment of the sample size, researchers visited all of the tertiary institutions as mentioned above. after the researchers get permission from the head of the study program or the dean of the faculty of economics and business, the researcher enters class after class accompanied by a lecturer and spreads questions through the whatsapp group class, and students fill out the questionnaire through google forms guided by the researcher, so that when they encounter problems they can asked directly to researchers. in the questionnaire in the google form there is an email address and telephone address of the respondent so that when there is data that is blank, the researcher can ask the student who filled it in again. although this approach has limitations (westbrook and saperstein 2015), this approach facilitates a fairly representative sample in terms of semester (academic level), gender, and marital status. the survey was conducted between january-december 2019. during this period, 308 complete responses were received from male respondents (n.137), female respondents (n.167). respondents with bachelor level (n.225) and graduate program (n. 20), married (n.73) and not married (n.235). to determine the normality of the sample compared with the population, researchers conducted the kolmogorov smirnov z test. the results from the sample normality test showed that the sample did not differ significantly from the population. data analysis methods used in this study are partial regression analysis, multiple regression and structural equation models/sem (ghozali (2016). hypothesis testing is done with the determination test (r²), t test, and f test (ghozali, 2016). phase 2: structured interviews were conducted with respondents who were part of the research sample. those interviewed were those who expressed an interest in participating in the follow-up interview. the researcher deliberately took interview samples from respondents for maximum variation in: (a) their academic level of study; (b) gender; and (c) marital status. through this interview insight can be added about the main trends and frequencies that appear in the survey data on the positive and negative impacts of the use of financial technology and islamic economic education. methodology limitations. there are several potential limitations of this research methodology. this research methodology is a mixed method which is carried out in two stages, namely a survey using closed questioners and sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 26 basrowi social impact of financial technology and islamic economics education structured interviews but no triangulation of data is done through participatory observation methods, so that it is a valuable potential for future research. in fact, if participatory observation is carried out for a long time, it will be able to produce naturalistic data that can function not only to complement and strengthen the findings of this study, but also to broaden understanding of the social impacts that occur when all respondents use financial technology and follow islamic economic education. iii. result and discussion 1. descriptive statistics descriptive statistical tests describe the general characteristics of the sample used in this study in more detail so that we can know the minimum value, maximum value, average value, and standard deviation of each variable. table 1. descriptive statistics aspect n minim um maxim um mean sd financial technology 308 17.00 46,00 28.50 5,67 economic education of sharia 308 8.00 59.00 37.66 6,75 social impact 308 13,00 70,00 51,43 9,34 source: primary data 2. classic assumption test the normality test is done by the kolmogorov-smornov z statistical test. from the results of the tests conducted in this study, it shows that the data used are normally distributed can be seen in table 2 is marked by the large value of kolmogorov-smirnov which shows greater than the significance level ≥ 0 .5. table2. one-sample kolmogrov-smirnov test unstandardized residual kolmogorov-smirnov z financial technology (x1) .578 asymp. sig. (2-tailed) .734 kolmogorov-smirnov z economic education of sharia (x2) .478 asymp. sig. (2-tailed) .654 kolmogorov-smirnov z social impact (y) asymp. sig. (2-tailed) .645 .568 source: primary data multicollinearity test table3. coefficientsª (uji multikolinieritas) collinearity statistics model tolerance vif 1 (constant) total_x1 .621 1.610 total_x2 .621 1.860 total_y .621 1.650 source: primary data all variables have a vif value greater than 0.621 so it can be said that there is no mltikolinier. this means that each variable is free (independent). heteroscedasticity test figure 1. heteroscedasticity test source: primary data from the picture above that the data used in this study does not contain heteroscedasticity or data spread randomly and spread above or below the number 0 (zero) on the y axis. 3. full model confirmatory factor analysis the overall model fit results on the whole wls estimation method showed good conditions, only p value χ2 which was below the standard that was only 0.025 (<0.05) so that it did not yet have a good match, but the other aspects including rmsea 0.040 had fulfilled the requirements of a good match. rmsea (<0.080). goodness of fit evaluation results are shown as follows. table 4. goodness of fit index (gofi) model 1st cfa gofi value before repair standard values for good match conclusio n after improve ment p value χ2 0.025 p value > 0.05 not good rmsea 0.042 rmsea ≤ 0,08 good fit nfi 0.898 nfi ≥ 0,90 marginal it nnfi 0.963 nnfi ≥ 0,90 good fit cfi 0.998 cfi ≥ 0,90 good fit ifi 0.974 ifi ≥ 0,90 good fit gfi 0.987 gfi ≥ 0,90 good fit agfi 0.984 agfi ≥ 0,90 good fit source: primary data, processed with lisrel version 8.80. based on the eight model fit parameters above, the majority of the model fit indices have shown good compatibility (except the chi-square p value and nfi which are in marginal fit). thus, it can be concluded that the measurement model used is already fit with the data so there is no need for further improvement. table 5. constructive reliability constract indicator slf reliability cr ve financial technology (ft) ft1 0.63 0.843 0.632 ft 2 0.84 ft 3 0.66 islamic economic education ees 1 0.54 0.792 0.534 ees 2 0.75 ees 3 0.64 social impact (si) si 1 0.63 0.854 0.543 si 2 0.64 si 3 0.55 source: primary data, processed with lisrel version 8.80. information:cr: coeficien regresi; ve: variance extracted the table above shows that cr ranges from 0.792 to 0.854 and ve ranges from 0.534 to 0.632. this shows that the measurement model has met the reliability requirements or already has a good level of reliability. 4. structural analysis analysis of the results of data processing at the full sem model stage is carried out by conducting the suitability test and statistical test. analysis of structural models using the wls method. the estimation results of the structural model with all estimation methods are further explained below. figure 2. structure diagram of wls method (standardized solution) structural research picture3. results of ttest y1 = 454*x1 + 0.253*x2, errorvar.= 0. 208, r² = 0. 792 (0.0786) (0.0818) (0.108) 5.251 3.044 6.425 based on these structural results, an explanation of the proposed hypothesis is described as follows. 5. the social impact of financial technology and islamic economic education first, the effect of financial technology on the size of the social impact can be seen through the standard coefficient of 0.413 and t arithmetic of 5.25. this value meets the requirements for accepting ha1 for the first hypothesis, namely the value of t arithmetic greater than t tebel 1.66. thus it can be concluded, the dimensions of the use of financial technology have a positive and significant impact on the socio-economic impact of society. the results of this study are consistent with the findings of bongomin, et al, (2016) who concluded that the social impact of utilizing financial technology is being able to grow many business opportunities and new jobs for the sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 27basrowi social impact of financial technology and islamic economics education structured interviews but no triangulation of data is done through participatory observation methods, so that it is a valuable potential for future research. in fact, if participatory observation is carried out for a long time, it will be able to produce naturalistic data that can function not only to complement and strengthen the findings of this study, but also to broaden understanding of the social impacts that occur when all respondents use financial technology and follow islamic economic education. iii. result and discussion 1. descriptive statistics descriptive statistical tests describe the general characteristics of the sample used in this study in more detail so that we can know the minimum value, maximum value, average value, and standard deviation of each variable. table 1. descriptive statistics aspect n minim um maxim um mean sd financial technology 308 17.00 46,00 28.50 5,67 economic education of sharia 308 8.00 59.00 37.66 6,75 social impact 308 13,00 70,00 51,43 9,34 source: primary data 2. classic assumption test the normality test is done by the kolmogorov-smornov z statistical test. from the results of the tests conducted in this study, it shows that the data used are normally distributed can be seen in table 2 is marked by the large value of kolmogorov-smirnov which shows greater than the significance level ≥ 0 .5. table2. one-sample kolmogrov-smirnov test unstandardized residual kolmogorov-smirnov z financial technology (x1) .578 asymp. sig. (2-tailed) .734 kolmogorov-smirnov z economic education of sharia (x2) .478 asymp. sig. (2-tailed) .654 kolmogorov-smirnov z social impact (y) asymp. sig. (2-tailed) .645 .568 source: primary data multicollinearity test table3. coefficientsª (uji multikolinieritas) collinearity statistics model tolerance vif 1 (constant) total_x1 .621 1.610 total_x2 .621 1.860 total_y .621 1.650 source: primary data all variables have a vif value greater than 0.621 so it can be said that there is no mltikolinier. this means that each variable is free (independent). heteroscedasticity test figure 1. heteroscedasticity test source: primary data from the picture above that the data used in this study does not contain heteroscedasticity or data spread randomly and spread above or below the number 0 (zero) on the y axis. 3. full model confirmatory factor analysis the overall model fit results on the whole wls estimation method showed good conditions, only p value χ2 which was below the standard that was only 0.025 (<0.05) so that it did not yet have a good match, but the other aspects including rmsea 0.040 had fulfilled the requirements of a good match. rmsea (<0.080). goodness of fit evaluation results are shown as follows. table 4. goodness of fit index (gofi) model 1st cfa gofi value before repair standard values for good match conclusio n after improve ment p value χ2 0.025 p value > 0.05 not good rmsea 0.042 rmsea ≤ 0,08 good fit nfi 0.898 nfi ≥ 0,90 marginal it nnfi 0.963 nnfi ≥ 0,90 good fit cfi 0.998 cfi ≥ 0,90 good fit ifi 0.974 ifi ≥ 0,90 good fit gfi 0.987 gfi ≥ 0,90 good fit agfi 0.984 agfi ≥ 0,90 good fit source: primary data, processed with lisrel version 8.80. based on the eight model fit parameters above, the majority of the model fit indices have shown good compatibility (except the chi-square p value and nfi which are in marginal fit). thus, it can be concluded that the measurement model used is already fit with the data so there is no need for further improvement. table 5. constructive reliability constract indicator slf reliability cr ve financial technology (ft) ft1 0.63 0.843 0.632 ft 2 0.84 ft 3 0.66 islamic economic education ees 1 0.54 0.792 0.534 ees 2 0.75 ees 3 0.64 social impact (si) si 1 0.63 0.854 0.543 si 2 0.64 si 3 0.55 source: primary data, processed with lisrel version 8.80. information:cr: coeficien regresi; ve: variance extracted the table above shows that cr ranges from 0.792 to 0.854 and ve ranges from 0.534 to 0.632. this shows that the measurement model has met the reliability requirements or already has a good level of reliability. 4. structural analysis analysis of the results of data processing at the full sem model stage is carried out by conducting the suitability test and statistical test. analysis of structural models using the wls method. the estimation results of the structural model with all estimation methods are further explained below. figure 2. structure diagram of wls method (standardized solution) structural research picture3. results of ttest y1 = 454*x1 + 0.253*x2, errorvar.= 0. 208, r² = 0. 792 (0.0786) (0.0818) (0.108) 5.251 3.044 6.425 based on these structural results, an explanation of the proposed hypothesis is described as follows. 5. the social impact of financial technology and islamic economic education first, the effect of financial technology on the size of the social impact can be seen through the standard coefficient of 0.413 and t arithmetic of 5.25. this value meets the requirements for accepting ha1 for the first hypothesis, namely the value of t arithmetic greater than t tebel 1.66. thus it can be concluded, the dimensions of the use of financial technology have a positive and significant impact on the socio-economic impact of society. the results of this study are consistent with the findings of bongomin, et al, (2016) who concluded that the social impact of utilizing financial technology is being able to grow many business opportunities and new jobs for the sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 28 basrowi social impact of financial technology and islamic economics education community, thereby reducing the unemployment rate. utilization of financial technology can also increase community innovation so that people are more creative in doing business, opening start-ups, and consuming. likewise, micro and medium enterprises (msmes) make it easier to transact. they can also check their income, without having to look at their bank book or giro printouts, but only through financial technology applications that are already installed on their cellphones. people make it easier to make payments when shopping. they don‟t have to go to an atm machine, but just operate the judged telephone, and the payment process and other transactions are done right away. this study supports the findings of mohsin (2019) who concluded that, the higher the intensity of the use of financial technology, the greater the social impact that occurs, and the lower the intensity of the use of technology, the smaller the social impact that results. therefore, when it wants to increase the socio-economic impacts that occur in society, it is necessary to increase the use of financial technology, so that the social impact both in the field of economic behavior, understanding, and social psychology is even greater. with the use of financial technology, there has been a change in the mindset and lifestyle of the people. the negative impact, with the existence of financial technology services that are fast, easy, and cheaper, people become easier to shop when they are more consumptive, because they can look for goods that provide a lot of price discounts, and provide services of prime quality, fast, and can be monitored through the judged application. another negative impact, the use of financial technology can lead to the desire to have something that is not a primary need, entangled in online loans, directly causing high levels of anxiety, depression, and low self-control so that it falls on crime and family conflicts to other social problems second, the influence of islamic economic education on the socio-economic impact of society can be seen through the standard coefficient of 0.25 and t arithmetic of 3.04. this value is eligible for the acceptance of ha2 for the second hypothesis, namely the value of t arithmetic greater than t table of 1.66. thus it can be concluded, the dimensions of islamic economic education have a positive and significant impact on the socio-economic impact of society. the positive coefficient on the relationship of islamic economic education to social impacts indicates that the higher the islamic economic education, the greater the socio-economic impact that occurs in society. conversely, the lower the islamic economic education, the smaller the social impact it causes. grohman, (2018) also concluded that, economic education has brought someone to learn digital financial technology and to know the various risks and benefits of digital finance for the future. those who have studied economics will be able to make decisions about the use of financial technology that they want to choose by considering various risks and advantages. this ability is a social impact of the internalization of the values of economic education they have learned. in other words, economic education has been able to change social life because it is able to increase involvement in financial institutions (cohen, moneque, & nelson, 2011). however, the social impact of economic education is not as fast as other factors. the social impact of economic education is long-term, and does not appear immediately. the social impact of economic education that can be directly seen, namely, the ability to make economic decisions (grohman, 2018), the skill of business behavior (antara, 2016), the intelligence of investment irreversibility towards the effects of disposition and affect the level of community participation in the derivatives market (hsiao, 2017; bellefatho, 2018; organ & trinh, 2019). economic education also has an impact on high trust in product quality, and willingness to accept economic advice from others. they are able to judge which advice is good and not good (anderson, 2017). economic education is also able to close the financial gap because it is able to learn and utilize financial technology well (shen hu & hueng, 2018; koonson, villano, & hadley, 2019). the results of this study support the findings (santoso, canon, & pakaya, 2019) which conclude that the better the islamic economic education, the higher the socioeconomic impact of the community, not only at the level of behavior and understanding of the economy, but also on the welfare of birth and inner society, including the welfare of the religious community. when the community has had a good islamic economic education, the religious prosperity in the sense of not bearing sin to god is getting better. third, the equation obtained from the social impact model of the use of financial technology and islamic economic education can be seen simultaneously through the following estimated standard values: (y) = 0.454 * x1 + 0.253 * x2, error-variance 0.208; r 2 = 0.792. r square figure implies that variations in social impact can be explained by the simultaneous use of financial technology and islamic economic education by 79.2%, and the remaining 20.8% is influenced by other factors not examined in the model. through calculations the calculated f value is 246.34. while the f value of the table with the number of independent variables 2, and df = n – k – 1, which is n is the number of samples, k is the number of independent variables so that df = 308 – 1 – 1 = 306, so the f value of 2.79 is obtained. because the calculated f value> f table (246.34> 2.79), then the ha3 simultaneous model for this 3rd hypothesis is accepted. the results of this study are in accordance with the findings of siahaan, iswati, & zarkasyi, (2019); sulaiman, suswanto, & masrukin, (2018) who concluded that there was a positive and significant effect jointly between the use of financial technology and economic education on the size of social impact. utilization of good financial technology and islamic economic education will be able to provide good social implications, especially on the welfare of the community. people who have the ability to use financial technology and islamic economic education are able to improve their welfare both in the economic field and the welfare of their religiosity. both aspects provide control over individual behavior so that they do not have a consumptive, wasteful lifestyle (yuen et al, 2013; hanafizadeh, ghandchi, & asgarimehr, 2017), and lifestyle that is not in accordance with religious teachings. with the mastery of financial technology and islamic economic education, the social impact on motivation in paying zakat and giving alms using existing financial technology (salampasis, 2018; ozili, 2018; jagtiani, 2018; adb, 2016; demirguc-kunt et al, 2018) thus the social impact of utilizing financial technology and understanding of sharia economics is able to drive the development of sharia economies towards a country that is peaceful and prosperous. the next impact, the community becomes more productive, both through entrepreneurship that uses financial technology and the use of values contained in islamic economic education. these two aspects are the keys to the success of someone who does business, until they are successful and prosperous (wahyudin, rusdin, & abdul, 2017). the positive and negative social impacts of the use of fintech and sharia economic education can be tabulated as follows. table 6. social impacts, both positive and negative aspect positive impact negative impact financial technology open many business opportunities and new jobs for the community so as to reduce unemployment. lifestyle changes become more extravagant able to change individual behavior to be more productive. can get tangled online loans encourage people to be more creative, able to provide better financial service alternatives, and be able to increase the motivation to pay zakat can cause a desire to have something that is not a primary need providing access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. can directly cause high levels of anxiety, able to close the gap between the community and bring long-term social change financially towards a just society can lead to crime able to provide alternative financial services that are better can cause family conflict to social problems can close the gap between communities and bring long-term social change financially towards a just society can cause depression in an unpredictable environment islamic economic education able to increase the sense of divinity spiritually and provide control over individual behavior in the direction that is justified by religious teachings such as not being wasteful (consumptive), paying zakat and giving alms it takes a long time to see the results improve financial understanding increase understanding of the product, investing intelligence, irresponsibility to the effects of disposition and affect the level of public participation in derivatives markets being able to minimize sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 29basrowi social impact of financial technology and islamic economics education community, thereby reducing the unemployment rate. utilization of financial technology can also increase community innovation so that people are more creative in doing business, opening start-ups, and consuming. likewise, micro and medium enterprises (msmes) make it easier to transact. they can also check their income, without having to look at their bank book or giro printouts, but only through financial technology applications that are already installed on their cellphones. people make it easier to make payments when shopping. they don‟t have to go to an atm machine, but just operate the judged telephone, and the payment process and other transactions are done right away. this study supports the findings of mohsin (2019) who concluded that, the higher the intensity of the use of financial technology, the greater the social impact that occurs, and the lower the intensity of the use of technology, the smaller the social impact that results. therefore, when it wants to increase the socio-economic impacts that occur in society, it is necessary to increase the use of financial technology, so that the social impact both in the field of economic behavior, understanding, and social psychology is even greater. with the use of financial technology, there has been a change in the mindset and lifestyle of the people. the negative impact, with the existence of financial technology services that are fast, easy, and cheaper, people become easier to shop when they are more consumptive, because they can look for goods that provide a lot of price discounts, and provide services of prime quality, fast, and can be monitored through the judged application. another negative impact, the use of financial technology can lead to the desire to have something that is not a primary need, entangled in online loans, directly causing high levels of anxiety, depression, and low self-control so that it falls on crime and family conflicts to other social problems second, the influence of islamic economic education on the socio-economic impact of society can be seen through the standard coefficient of 0.25 and t arithmetic of 3.04. this value is eligible for the acceptance of ha2 for the second hypothesis, namely the value of t arithmetic greater than t table of 1.66. thus it can be concluded, the dimensions of islamic economic education have a positive and significant impact on the socio-economic impact of society. the positive coefficient on the relationship of islamic economic education to social impacts indicates that the higher the islamic economic education, the greater the socio-economic impact that occurs in society. conversely, the lower the islamic economic education, the smaller the social impact it causes. grohman, (2018) also concluded that, economic education has brought someone to learn digital financial technology and to know the various risks and benefits of digital finance for the future. those who have studied economics will be able to make decisions about the use of financial technology that they want to choose by considering various risks and advantages. this ability is a social impact of the internalization of the values of economic education they have learned. in other words, economic education has been able to change social life because it is able to increase involvement in financial institutions (cohen, moneque, & nelson, 2011). however, the social impact of economic education is not as fast as other factors. the social impact of economic education is long-term, and does not appear immediately. the social impact of economic education that can be directly seen, namely, the ability to make economic decisions (grohman, 2018), the skill of business behavior (antara, 2016), the intelligence of investment irreversibility towards the effects of disposition and affect the level of community participation in the derivatives market (hsiao, 2017; bellefatho, 2018; organ & trinh, 2019). economic education also has an impact on high trust in product quality, and willingness to accept economic advice from others. they are able to judge which advice is good and not good (anderson, 2017). economic education is also able to close the financial gap because it is able to learn and utilize financial technology well (shen hu & hueng, 2018; koonson, villano, & hadley, 2019). the results of this study support the findings (santoso, canon, & pakaya, 2019) which conclude that the better the islamic economic education, the higher the socioeconomic impact of the community, not only at the level of behavior and understanding of the economy, but also on the welfare of birth and inner society, including the welfare of the religious community. when the community has had a good islamic economic education, the religious prosperity in the sense of not bearing sin to god is getting better. third, the equation obtained from the social impact model of the use of financial technology and islamic economic education can be seen simultaneously through the following estimated standard values: (y) = 0.454 * x1 + 0.253 * x2, error-variance 0.208; r 2 = 0.792. r square figure implies that variations in social impact can be explained by the simultaneous use of financial technology and islamic economic education by 79.2%, and the remaining 20.8% is influenced by other factors not examined in the model. through calculations the calculated f value is 246.34. while the f value of the table with the number of independent variables 2, and df = n – k – 1, which is n is the number of samples, k is the number of independent variables so that df = 308 – 1 – 1 = 306, so the f value of 2.79 is obtained. because the calculated f value> f table (246.34> 2.79), then the ha3 simultaneous model for this 3rd hypothesis is accepted. the results of this study are in accordance with the findings of siahaan, iswati, & zarkasyi, (2019); sulaiman, suswanto, & masrukin, (2018) who concluded that there was a positive and significant effect jointly between the use of financial technology and economic education on the size of social impact. utilization of good financial technology and islamic economic education will be able to provide good social implications, especially on the welfare of the community. people who have the ability to use financial technology and islamic economic education are able to improve their welfare both in the economic field and the welfare of their religiosity. both aspects provide control over individual behavior so that they do not have a consumptive, wasteful lifestyle (yuen et al, 2013; hanafizadeh, ghandchi, & asgarimehr, 2017), and lifestyle that is not in accordance with religious teachings. with the mastery of financial technology and islamic economic education, the social impact on motivation in paying zakat and giving alms using existing financial technology (salampasis, 2018; ozili, 2018; jagtiani, 2018; adb, 2016; demirguc-kunt et al, 2018) thus the social impact of utilizing financial technology and understanding of sharia economics is able to drive the development of sharia economies towards a country that is peaceful and prosperous. the next impact, the community becomes more productive, both through entrepreneurship that uses financial technology and the use of values contained in islamic economic education. these two aspects are the keys to the success of someone who does business, until they are successful and prosperous (wahyudin, rusdin, & abdul, 2017). the positive and negative social impacts of the use of fintech and sharia economic education can be tabulated as follows. table 6. social impacts, both positive and negative aspect positive impact negative impact financial technology open many business opportunities and new jobs for the community so as to reduce unemployment. lifestyle changes become more extravagant able to change individual behavior to be more productive. can get tangled online loans encourage people to be more creative, able to provide better financial service alternatives, and be able to increase the motivation to pay zakat can cause a desire to have something that is not a primary need providing access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. can directly cause high levels of anxiety, able to close the gap between the community and bring long-term social change financially towards a just society can lead to crime able to provide alternative financial services that are better can cause family conflict to social problems can close the gap between communities and bring long-term social change financially towards a just society can cause depression in an unpredictable environment islamic economic education able to increase the sense of divinity spiritually and provide control over individual behavior in the direction that is justified by religious teachings such as not being wasteful (consumptive), paying zakat and giving alms it takes a long time to see the results improve financial understanding increase understanding of the product, investing intelligence, irresponsibility to the effects of disposition and affect the level of public participation in derivatives markets being able to minimize sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 30 basrowi social impact of financial technology and islamic economics education the possibility of bad for the psychological and spiritual individual able to influence public perception in financial decision making high confidence in the product and willingness to accept financial advice from others. able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society source: results of data analysis iv. conclusion the social impact of utilizing financial technology is being able to grow many business opportunities and new jobs for the community thereby reducing the number of unemployment. fintech is able to change individual behavior to be more productive. encourage people to be more creative, able to provide better financial service alternatives, and be able to increase the motivation to pay zakat. fintech is able to provide access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. financial technology can close the gap between societies and bring long-term social change financially towards a just society. fintech is able to provide alternative financial services that are better; and opening up many business opportunities and new jobs for the community to reduce unemployment. the social impact of sharia economic education is being able to increase spiritual sense of god and provide control over individual behavior in a direction that is justified by religious teachings such as not being wasteful (consumptive), paying zakat and giving alms, increasing financial understanding, increasing understanding of products, intelligence investing, intolerance on the effects of disposition and affect the level of public participation in the derivatives market. the principles of islamic economic education implemented are able to minimize the possibility of psychological and spiritual harm to the individual, able to influence people's perceptions in financial decision making, able to increase trust in the product and willingness to receive financial advice from others. financial education will be able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society. the application of financial technology and the values that exist in islamic economic education should always be carried out jointly when desiring a large socioeconomic impact on society. when the two aspects are jointly carried out, they have a greater socioeconomic impact than partially. the limitations in this study include the number of variables consisting of only two independent variables and one dependent variable. the data used are only data from one province of lampung, not yet compared to other provinces. v. acknowledgment we would like to thank the lppm university of bina bangsa for funding this study. all parties who have participated to this study. references adb. 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(2016). financial inclusion through financial education in mexico: is financial education the way to achieve social and financial inclusion. thesis. international master in microfinance for entrepreneurship from the universidad autónoma de madrid. https://www.mastermicrofinance.com/invest igacion/wp4_2016-hernandez_marouzefinancial_inclusion_through_financial_edu cation_in_mexico_p.pdf demirguc-kunt, a., klapper, l., penyanyi, d., ansar, s., & hess, j. (2018). database findex global 2017. bank dunia. dranev, y., frolova, k., & ochirova, e. (2019). the impact of fintech m&a on stock returns. research in international business and finance, 48, 353-364. elasrag, h. (2019). blockchains for islamic finance: obstacles & challenges, pp. 1-39. https://mpra.ub.unimuenchen.de/en/eprint/92676 gai, k., qiu, m., & sun, x. (2018). a survey on fintech. journal of network and computer applications, 103, 262-273. ghozali, i., 2016. aplikasi analisis multivariete dengan program ibm spss 23 edisi kedelapan [multivariate analysis application with the ibm spss 23 program eighth edition]. semarang: press unitof universitas diponegoro. grohmann, a., klühs, t., & menkhoff, l. (2018). does financial literacy improve financial inclusion? cross country evidence. world development, 111, 84-96. hanafizadeh, p., ghandchi, s., & asgarimehr, m. (2017). impact of information technology on lifestyle: a literature review and classification. international journal of virtual communities and social networking (ijvcsn), 9(2), 1-23. hisnam, m., & alam,, mk. (2019). digitalization, innovation and sustanaible development and evidence of islamic finance perspective. international journal of asian social science, 9(12), 651-656 sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 31basrowi social impact of financial technology and islamic economics education the possibility of bad for the psychological and spiritual individual able to influence public perception in financial decision making high confidence in the product and willingness to accept financial advice from others. able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society source: results of data analysis iv. conclusion the social impact of utilizing financial technology is being able to grow many business opportunities and new jobs for the community thereby reducing the number of unemployment. fintech is able to change individual behavior to be more productive. encourage people to be more creative, able to provide better financial service alternatives, and be able to increase the motivation to pay zakat. fintech is able to provide access to financial services, not only in urban areas but also in rural areas that are affordable by internet access. financial technology can close the gap between societies and bring long-term social change financially towards a just society. fintech is able to provide alternative financial services that are better; and opening up many business opportunities and new jobs for the community to reduce unemployment. the social impact of sharia economic education is being able to increase spiritual sense of god and provide control over individual behavior in a direction that is justified by religious teachings such as not being wasteful (consumptive), paying zakat and giving alms, increasing financial understanding, increasing understanding of products, intelligence investing, intolerance on the effects of disposition and affect the level of public participation in the derivatives market. the principles of islamic economic education implemented are able to minimize the possibility of psychological and spiritual harm to the individual, able to influence people's perceptions in financial decision making, able to increase trust in the product and willingness to receive financial advice from others. financial education will be able to increase social capital in the field of economic competence which will ultimately be able to improve social welfare in society. the application of financial technology and the values that exist in islamic economic education should always be carried out jointly when desiring a large socioeconomic impact on society. when the two aspects are jointly carried out, they have a greater socioeconomic impact than partially. the limitations in this study include the number of variables consisting of only two independent variables and one dependent variable. the data used are only data from one province of lampung, not yet compared to other provinces. v. acknowledgment we would like to thank the lppm university of bina bangsa for funding this study. all parties who have participated to this study. references adb. 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(2019). management of zakat payment based on fintech for the good corporate governance improvement. eastern journal of economics and finance, 4 (2), 41-50. westbrook l and saperstein a (2015) new categories are not enough: rethinking the measurement of sex and gender in social surveys. gender & society 29(4): 534–560. https://doi.org/10.1177%2f08912432155847 58 wyman, o. (2017). accelerating financial inclusion in south-east asia with digital finance. asian development bank. https://www.adb.org/sites/default/files/publi cation/222061/financial-inclusion-seasia.pdf winosa, yosi. fintech pecahkan tantangan sosial ekonomi indonesia di masa depan [fintech solves indonesia's future socio-economic challenges]. ed. khomairoh. (september 13, 2019). wartaekonomi.co.id.https://www.wartaekon omi.co.id/read246506/fintech-pecahkantantangan-sosial-ekonomi-indonesia-dimasa-depan yuen, e. k., hernbert, j. d., forman, e. m., goetter, e. m., comer, r., & bradley, j. c. (2013). treatment social anxiety disorders using online virtual environments in second life. behavior therapy, 44 (1), 5161. doi: 10.1016 / j.beth.2012.06.001 pmid: 23312426 zimmerman, j. m., & baur, s. (2016). understanding how consumer risks in digital social payments can erode their financial inclusion potential. world bank other operational studies 24568, the world bank. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021 33basrowi social impact of financial technology and islamic economics education hsiao, y. j., & tsai, w. c. (2018). financial literacy and participation in the derivatives markets. journal of banking & finance, 88, 15-29. iliadis m, richards i and wood ma. (2019). news making criminology in australia and new zealand: results from a mixed methods study of criminologists‟ media engagement. australian & new zealand journal of criminology, 0(0), pp. 1-18. doi: 10.1177/0004865819854794 jagtiani, j., & lemieux, c. (2018). do fintech lenders penetrate areas that are underserved by traditional banks?. journal of economics and business, 100, pp. 43-54. doi: 10.21799/frbp.wp.2018.13 koomson, i., villano, r. a., & hadley, d. (2019). intensifying financial inclusion through the provision of financial literacy training: a gendered perspective. applied economics, vol 52 issue. 4, pp. 375-387. https://doi.org/10.1080/00036846.2019.1645 943 malaguti, maria chiara. 2015. “payment system regulation for improving financial inclusion.” washington, d.c.: center for global development.https://www.cgdev.org/sites/d efault/files/cgd-policy-paper-70-malagutipayment-systems-financial-inclusion-1.pdf mangeswuri, et al. (2018).industri kreatif, fintech dan umkm dalam era digital [creative industries, fintech and smes in the digital age]. ed. carunia mulya firdausy. jakarta pusat: pusat penelitian badan keahlian dpr ri. maulana, h., razak, d. and adeyemi, a. (2018), "factors influencing behaviour to participate in islamic microfinance", international journal of islamic and middle eastern finance and management, vol. 11 no. 1, pp. 109-130. https://doi.org/10.1108/imefm-05-20170134 meiria, e., hamid, a., & aishah, r. (2019). sme's growth pattern as a success business indicator through sharia economic in reducing poverty in indonesia. archives of business research, 7 (1). milian, eduardo z., spinola, mauro de m., & carvalho, marly m.de. (2019). „fintechs: a literature review and research agenda‟, electronic commerce research and applications, 34, 100833. https://doi.org/10.1016/j.elerap.2019.100833 . mohsin, m. i. a. (2019). waqfintech and sustainable socio-economic development. international journal of management and applied research, 6 (3), 130-141. mohamed, h., & ali, h. (2018). blockchain, fintech, and islamic finance: building the future in the new islamic digital economy. walter de gruyter gmb: h & co. kg. morgan, p.j & l.q. trinh. 2019. fintech and finacial litercy in the lao pdr. abdi working paper 933. tokyo; asian development bank institute. pp.1-23. availble: https://www.adb.org/sites/default/files/publi cation/491631/adbi-wp933.pdf nayebpur, a., & moosavi, s. m. r. (2016). the role of islamic-based education in the prevention of personal – psychological damages in cyberspace. prevention, 11 (2). ozili, p. k. (2018). impact of digital finance on financial inclusion and stability. borsa istanbul review, 18(4), 329-340. ojk (otoritas jasa keuangan). edukasi konsumen. (december, 2017). sikapiuangmu.ojk.go.id. https://sikapiuangmu.ojk.go.id/frontend/c ms/download/467 rahim, n. f., bakri, m. h., & yahaya, s. n. (2019). fintech and shariah principles in smart contracts. in fintech as a disruptive technology for financial institutions igi global.(pp. 207-220). salampasis, d., & mention, a. l. (2018). fintech: harnessing innovation for financial inclusion. in handbook of blockchain, digital finance, and inclusion, volume 2 academic press. (pp. 451-461). saged, a. a. g.,et.al. (2018). impact of the quran in the treatment of psychological disorders and spiritual illness. journal of religion and health, feb 26. pp. 1-14. doi: 10.1007/s10943-018-0572-8. santoso, i. r., canon, s., & pakaya, a. r. (2019). the role of islamic financial institutions in supporting economic growth in the digital era: case study in indonesia. icids 2019, proceedings of the first international conference on islamic development studies. bandar lampung, indonesia. doi 10.4108/eai.10-9-2019.2289380 siahaan, d., iswati, s., & zarkasyi, a. f. (2019). social enterprise: the alternatives financial support for educational institutions. international journal of economics and financial issues, 9 (3), 1. setiawati, r., nidar, s. r., anwar, m., & masyita, d. (2018). islamic financial literacy: construct process and validity. academy of strategic management journal vol 17 issue 4, pp. 1-12. https://www.abacademies.org/articles/islami c-financial-literacy-construct-process-19396104-17-4-242.pdf sulaiman, a. i., suswanto, b., & masrukin, m. (2018). economic empowerment of islamic student throught optional course learning in boarding schools for harmonization and preventing negative stigma. international educational research, 1 (2), p26-p26. shen, yan., hu, wenxiu & hueng, c. james, 2018, the effects of financial litercy, digital poduct usage and internet usage on finacial incluson in china. matec web of conferences 228: pp.1-6. doi: 10.1051/matecconf/201822805012 uddin, m. n., bhar, s., al mahmud, a., & islam, f. m. a. (2017). psychological distress and quality of life: rationale and protocol of a prospective cohort study in a rural district in bangaladesh. bmj open access, 7 (9), e016745. utami, p., & julianas, d. (2019). management of zakat payment based on fintech for the good corporate governance improvement. eastern journal of economics and finance, 4 (2), 41-50. westbrook l and saperstein a (2015) new categories are not enough: rethinking the measurement of sex and gender in social surveys. gender & society 29(4): 534–560. https://doi.org/10.1177%2f08912432155847 58 wyman, o. (2017). accelerating financial inclusion in south-east asia with digital finance. asian development bank. https://www.adb.org/sites/default/files/publi cation/222061/financial-inclusion-seasia.pdf winosa, yosi. fintech pecahkan tantangan sosial ekonomi indonesia di masa depan [fintech solves indonesia's future socio-economic challenges]. ed. khomairoh. (september 13, 2019). wartaekonomi.co.id.https://www.wartaekon omi.co.id/read246506/fintech-pecahkantantangan-sosial-ekonomi-indonesia-dimasa-depan yuen, e. k., hernbert, j. d., forman, e. m., goetter, e. m., comer, r., & bradley, j. c. (2013). treatment social anxiety disorders using online virtual environments in second life. behavior therapy, 44 (1), 5161. doi: 10.1016 / j.beth.2012.06.001 pmid: 23312426 zimmerman, j. m., & baur, s. (2016). understanding how consumer risks in digital social payments can erode their financial inclusion potential. world bank other operational studies 24568, the world bank. sinergi : jurnal ilmiah ilmu manajemen, volume 11 number 2 september 2021